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Low Socio-economic Status and Customer Churn Respect to Home Internet Service in the Intra-city Context

Abstract:

Home Internet is important and even more so since the beginning of the COVID-19 pandemic. Internet enables communication with co-workers, family, basic services providers, etc. Customer churn means that a costumer has left their service provider for some reason. Scientific literature addresses customer churn in various business areas from different perspectives, however, it focuses very little on the socio-economic factor as a possible cause for the customer churn from residential Internet service. The objective is to determine if the socio-economic factor influences the customer churn from the residential Internet service in the intra-city context. The percentage of customer churn associated with the economic factor is important (38%). This case study is focused to the phenomenon of customer churn due to economic reasons affects low-income areas of the city. This study reaffirms that it is necessary to study the barriers for Internet adoption in different contexts and socio-economic groups.