Question

3. The cellular industry is notorious for high customer dissatisfaction. Despite the existence of service contracts, the big carriers roughly churn 24% of their customers each year (2% per month). Clearly,

there is little loyalty in this market. What is the source of this dissatisfaction? What role do pricing variables play in affecting the consumer experience? Why haven't the big carriers responded more aggressively to customer dissatisfaction?

Fig: 1