Churning behavior in the liberalizing Dutch health care market
Mendel Koornstra S3536300
Research problem
Churning customers in liberalizing markets
Managerial problem
➢Costs of replacing customers ➢Negative effect on reputation
Gap in literature
➢Lack of understanding
churning behavior in liberalizing markets
Drivers of churning behavior
➢ Push, pull and mooring factors ➢ Sociodemographic factors
Heterogene effect
➢ Perceived switching costs ➢ Inertia
➢ Influence of commitment and trust ➢ Influence of price
Research question
➢ Research Question: Is there a heterogeneous effect of push, pull and mooring factors on the churning behavior of customers in a liberalizing service market?
Dataset
➢ Health insurance company ➢ Not all data available
Research methode
Logistic regression
Segments
Freedom takers
21% of all customers Strong relations with:
Not churned before Education
Commitment sensitive
23% of all customers Strong relations with:
Relationship length Age
Education
PPM factors sensitive
56% of all customers Strong relations with:
Relationship length Number of complaints
Not churned before Additional insurance
Age Gender Education
Conclusion
➢There is a heterogeneous effect of push, pull and mooring factors on the churning behavior of customers in a liberalizing service market
➢Being former monopolistic market indeed is influences churning behavior ➢Total effect for gender and education differ
Limitations and future research
➢ Only data of health insurer ➢Data of one company
➢Limited data available for push, pull and mooring factors ➢Unexpected effect for gender and education
