In recent years the telecom market has reached its maturity in Taiwan and almost everyone has more than one mobile phone number. In addition, as the Number Portability Policy has been implemented since 2005, the competition among service providers has become all the harsher, and customers thus benefited from the variety of brand choices. However, since customers are now free to transfer from one service provider to another, brand loyalty has declined.
Therefore, the goal of this research aims to investigate the changes in mobile telecom customer’s brand loyalty before and after the implementation of the Number Portability Policy. Three factors were found to be of great significance in influencing brand loyalty, and they are: 1) corporate image, 2) service quality, and 3) price cognition. On the contrary, the transfer cost effect did not show much influence as we expected. Moreover, the research also had an analysis on the relationship between brand loyalty and capability of alternative options.
The unit of analysis in this research was based on customers in Metropolitan Taipei Area, and the researcher applied market survey to gather data from these customers. In brief, the final result shows that:
1.The better the corporate image, the higher levels of brand loyalty.
2.The better the service quality, the higher levels of brand loyalty.
3.The more positive cognition of the price, the higher levels of brand loyalty.
4.The higher transfer cost does not necessarily follow that there will be higher levels of brand loyalty.
5.The higher levels of brand loyalty does not necessarily follow there will be less capability of alternative options.
In conclusion, in order for service providers to excel in the competitive telecom service market, the three factors –corporate image, service quality, and price strategy– are the essential and necessary elements that remain brand loyalty. Among them, providing innovated and blended service is the most important key to win consumers'' hearts.