Mobile Phone Service Providers Shift to No-Contract Plans: Implications on Customer Retention

Findings indicate that, regardless of the flexibility and cost saving advantages of no-contract mobile phone service plans for customers, a majority of younger customers in the United States continue to patronize contract-based plans. Conversely, the data show that older customers tend to appreciate the flexibility and financial savings that come with buying no-contract plans. Also, the study finds that the customer's decision to finance the cost of a mobile device with the provider is independent of the customer's age. The article discusses theoretical and practical implications.