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THE EFFECT OF BROADCAST MEDIA ADVERTISING
ON CONSUMER BEHAVIOR IN CELLULAR INDUSTRY
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TITLE:
THE EFFECT OF BROADCAST MEDIA ADVERTISING
ON CONSUMER BEHAVIOR IN CELLULAR INDUSTRY
SUBMITTED TO:
MR: MUHAMMAD AMJAD
SUBMITTED BY:
GOVINDA KUMAR 09-2624)
SUBMISSION DATE:
05 MAY, 2011
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1.LETTER OF TRANSMITTAL
TO: MR: MUHAMMAD AMJAD
FROM: GOVINDA KUMAR MANWANI
DATE: MAY 02, 2011
SUBJECT: Report on Research On Mobile SIMs
All praises and thanks are for Almighty ALLAH Who is the source of all knowledge and wisdom
endowed to mankind and to the humanity as a whole.
Behind every project is a vision and in order to complete a successful project we must have a
determination to complete that vision. We would like to say the words of appreciation to our
course instructor Mr. MUHAMMAD AMJAD for motivating us for going towards that vision
and his abilities to turn that vision into reality.
The encouragement and assistance of our parents and friends are gratefully acknowledged. We
are extremely indebted to the individuals who supplied us with ample help, guidance and
information without which this report would never have been completed. We regret if we haveforgotten to mention anyone concerned.
Regards,
GOVINDA KUMAR (09-2624)
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Table of Contents
1.LETTER OF TRANSMITTAL ........................... ............................... ...................... ................................ ...... 4
2. Executive summary .............................................................................................................................. 7
3.BUSINESS PROBLEM.............................................................................................................................. 8
4.PRELIMINARY DATA GATHERING ........................ ................................ ....................... ............................ 8
4.1 BACKGROUND ................................ ......................... .............................. .............................. ........... 8
5. Industry overview ................................................................................................................................ 9
5.1Mobilink ......................................................................................................................................... 9
5.2 Ufone ........................................................................................................................................... 10
5.3Telenor ......................................................................................................................................... 10
5.4Warid ............................................................................................................................................ 10
5.5Zong.............................................................................................................................................. 10
6. Problem Definition ............................. ............................ ....................... ................................ ............. 11
6.1 Consumer behavior ...................................................................................................................... 11
6.2 Why do consumers switch? .......................................................................................................... 11
6.2.1Core Service Failures .............................................................................................................. 11
6.2.2Involuntary switching ............................................................................................................. 11
6.2.3Service encounter failures ........................... ................................ ...................... ..................... 11
6.2.4Pricing .................................................................................................................................... 12
6.2.5Competitive Offers ................................................................................................................. 12
6.2.6Ethical problems..................................................................................................................... 12
6.2.7Complete service providers ........................ ................................ ...................... ...................... 12
6.2.8Changes in technology ........................................................................................................... 12
6.2.9Soft shoppers ......................................................................................................................... 13
7. OBJECTIVES ........................................................................................................................................ 13
8. Limitations ......................................................................................................................................... 13
9. Research Design ............................... ......................... ........................... ............................ .................. 14
9.1 FRAMEWORK ............................................................................................................................... 14
10. MODEL ............................................................................................................................................ 14
11. VARIABLES ....................................................................................................................................... 15
12. Generation of Hypothesis ................................................................................................................ 16
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12.1 HYPOTHESIS ............................................................................................................................... 16
13. RESEARCH DESIGN ............................ .......................... ........................... ................................ ......... 17
13.1 POPULATION .............................................................................................................................. 17
13.2 SAMPLE ...................................................................................................................................... 17
13.3 SAMPLING METHOD................................................................................................................... 17
13.4 PLAN OF ANALYSIS ..................................................................................................................... 17
13.4.1 Frequency ........................................................................................................................... 17
13.4.2Cross Tabulation ............................ ............................ ....................... ................................ .... 17
13.4.5One sample T-Test................................................................................................................ 17
13.5 SOFTWARE EMPLOYED ............................ ............................. ...................... ................................ 17
14. Data Collection and Interpretation ........................ ................................ ....................... .................... 18
15. Conclusion ....................................................................................................................................... 41
16. RECOMMENDATION ........................................................................................................................ 42
17. APPENDIX ........................................................................................................................................ 43
17.1CODE BOOK ................................................................................................................................ 43
17.2QUESTIONNAIRE ......................................................................................................................... 44
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2. Executive summary
The topic of our research report is Research on Mobile Sims of Pakistan. It is a very vast topic
but in this report we have particularly focused behavior of the consumers regarding selection and
usage of their particular cellular service providers. The population in our report is taken from
FAST National University and Muhammad Ali Jinnah University. Our sample size in this report
is 30. Our independent variables are our current cellular service providers who affect the
dependent variable i.e. consumer behavior. Moderating variables are price and core consumer
services for example packages, network coverage, call centers etc. Method of research used in
this research is questionnaires. 15 questionnaires were taken from each institute.
The result shows that 50 %consumers use Ufone, 29% Telenor, 13.3% Warid 23.3%& Mobilink
10% and 3.3% Zong. Features which consumers take into account in order to select a particular
cellular service provider are the package offering, competitive pricing, services, reception etc. we
also noticed that consumers have a consistent behavior they are not likely to switch from their
current cellular service provider. Advertisement does not have any strong effect on consumer
behavior only 13.3% of consumers are tending to change their perception due to advertisement.
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3.BUSINESS PROBLEM
There are total five mobile SIM companies operating in Pakistan. Research on mobile SIM is avery vast topic and we are particularly focusing on the behavior of mobile SIM users to seewhich mobile SIM is popular and why it is being used amongst the majority.
4.PRELIMINARY DATA GATHERING
4.1 BACKGROUND
Worldwide, countries have seen a boom in the wireless market over the last few years. Wireless
phones once a luxury of the high-powered business-elite, have invaded every space of our lives.
The checker at the grocery store uses one (Ellis, 1999, p. 93). This increase in demand has led
to increased competition in the cellular industry. For example, Pakistan currently has five or
more service providers competing for market share. The increased competition has resulted in
more choices and better value for the consumers as companies try to lure clients throughcompetitive plans and equipment pricing. Motivated by a need for mobility and lowered costs of
owning a cell phone, a growing trend amongst consumers is to use their cell phones as their
primary phone. In spite of its gaining popularity, the cellular industry appears to have its market
share of problems such as dropped calls, billing errors, and a multitude of calling plans which
make this service very challenging for consumers, resulting in dissatisfaction and possible
switching behavior.
When mobile cellular services were launched in the country the people responded chaotically.
These services commenced in the 1990s when Government of Pakistan awarded two cellular
Mobile Telephone Licenses to M/s Paktel and M/s Pak Com (Instaphone) for provision ofcellular mobile telephone in Pakistan. Both of these companies established their CMT networks
using Advanced Mobile Phone System (AMPS). Third cellular license was issued in 1992 by the
Ministry of Communication to M/s Pakistan Mobile Communications Limited (PMCL)
Mobilink. Mobilink established Global System for Mobile Communication (GSM) network. In
order to meet the increased demand for cellular phone, PTA issued license to M/s Pakistan
Telecommunication Mobile Limited (Ufone) for provision of GSM service in 2001. The year
2001 proved remarkable as far the growth in cellular subscriber base was concerned.
In 2004 mobile licenses to two new companies i.e. Warid and Telenor were awarded through
open bidding against auction bidding price of US$291 million each. As per new mobile policythese licenses were kept technology neutral so that operators could decide best possible option.
The introduction of these two mobile operators gave a tremendous boost to the mobile phone
subscriber base in Pakistan which increased by phenomenal 182%. Pakistan mobile industry at
the moment is experiencing growth explosion. At present there are six cellular operators
providing 29.6 Million mobile connections. Though the existing players are trying to meet the
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growing demand still there is a huge amount of unmet demand in the under and un-served parts
of the country.
The biggest challenge faced by this industry is churn, process of leaving one cellular provider for
another. These costs arise from account set-up, credit checks, advertising & promotional
campaigns, and operational costs incurred while the provider creates a database of a newconsumers profile. Thus, its critical for a service provider to maintain a continuing relationship
within an existing customer because the marginal income from such a customer varies directly
with the length of the business relationship (Gerpott, Rams, and Schindler, 2001, p. 250). As a
result, with time the incremental cost incurred in maintaining an existing customer reduces,
leading to a more profitable business for the service provider in the long run.
5. Industry overview
Consumers trend towards adopting cell phones for business or personal reasons has resulted in a
penetration rate of over a 100% in some countries.
The telecommunication plays a vital role in development of a country. It provides the prime
services that an economy needs for rapid growth, development and modernization. As the
economy grows, demand for telecom services increases to conduct the increased number of
economic transactions in the expanded economy. Improved efficiency of this sector generates
economy-wide benefits as telecommunications are a vital intermediate input and is also crucial to
the dissemination and diffusion of knowledgethe spread of the internet and the dynamism that
it has lent to economies around the world is testimony to the importance of telecommunications
services. The telecommunication sector in Pakistan has done remarkably well in the past few
years primarily due to trade and investment liberalization, privatization and openness to moderntechnology. The different service providers operating in Pakistan are discussed below:
5.1Mobilink
Pakistan Mobile Communications Limited, better known as Mobilink GSM, is a
telecommunication service provider in Pakistan. According to PTA statistics, Mobilink has 29.55
million customers by July 2009. Mobilink is the largest cellular service provider in Pakistan.
Mobilink's corporate postpaid package is sold under the brand name "Indigo" and prepaid by the
name of "Jazz".
In addition to cellular service, the Orascomm group is diversifying its service portfolio by settingup new businesses and also expanding through acquisitions. Recently, they started offering DSL
broadband through a wholly owned subsidiary, Link.Net. Company is in place for launch of
wireless broadband service through WiMax based technology.
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5.2 Ufone
Ufone GSM is a Pakistani GSM cellular service provider. It is one of six GSM Mobile
companies in Pakistan and is a subsidiary of Pakistan Telecommunication Company. It has a
subscriber base of 20.05 million as of July 2009.
Since its inception, Ufone has focused on the people of Pakistan, empowering them with themost relevant communication modes and services that enable them to do a lot more than just
talk, at a price that suits them the most. Along with the claim of lowest call rates, clear sound and
best network, Ufone offers its customers simplified tariffs with no hidden charges. With a strong
and uniquely humorous communication direction that has now become Ufones signature across
all advertising media, Ufone gives its customers many reasons to smile.
5.3Telenor
Telenor Pakistan is a wholly owned subsidiary that started operations on the 15th of March 2005
and holds one of six mobile licenses in Pakistan. It's also the fastest growing cellular network of
Pakistan - this may be attributed to their aggressive marketing and advertising campaign.
Currently, Telenor holds the second largest GSM and the largest GPRS and EDGE coverage in
Pakistan which competes with Ufone. With the recent launch of its nationwide EDGE-enabled
network. It has achieved the third largest retailer network in Pakistan within the 2 years span of
its operations and has started operations in northern areas of Pakistan and in Pakistani
administered Kashmir. Telenor had reached its breakeven in the first quarter of 2007. Telenor
proactively participated in the earthquake disaster relief, and carried out a campaign for the
welfare of flood victims in Baluchistan.
5.4Warid
In 2004, Warid Telecom International LLC, purchased a license for operating a nationwide
mobile telephony network, (WLL) and long distance international (LDI) for $291 million US
dollars and was the first venture of Warid Telecom International LLC. Warid Pakistan launched
its services in May 2005. Within 80 days of launch Warid Pakistan claims to have attracted more
than 1 million users. According to Pakistan Telecommunication Authority, currently Warid
Telecom has 18.14 million subscribers as of July 2009. It is ranked as the fourth largest operator
in Pakistan. Warid Pakistan claims it has the largest "post-paid" subscriber base in Pakistan.
5.5Zong
ZONG is The first International brand of China Mobile being launched in Pakistan. It is meant to
empower and liberate the people of Pakistan in every nook and corner of the country. It will
become a part of their hearts, their minds and bring about a change in their lives that every one
desired but few thought would be possible.
The core essence of ZONG is to allow people to communicate at will, without worrying about
tariffs, network coverage, capacity issues or congestion. ZONG will be supported by ground
breaking communications, trend setting customer service and an unmatched product offering
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consumer in an impolite, uncaring and unresponsive way can cause dissatisfaction in consumers.
An employee who is unknowledgeable can also be contributing factor to consumer switching
away.
6.2.4Pricing
It indicates that pricing is third largest reason in switching behavior. While pricing be the solefactor motivating the switch behavior, very often its combined with switch behavior. Pricing
includes rates, surcharging, penalties and promotional deals. Customer tends to switch not only
because the price is high, but also when the price increase is deemed unfair.
6.2.5Competitive Offers
Competition in cellular company is mainly among largest carriers. Each carrier is trying to attract
new clients to its network by offering them massive discounts, promotional time bound free
calling etc. this has to lead numerous choices for the cost conscious consumer. The price war has
now become constant factor in this industry with companies trying to undercut each share for the
market share. The main tool used for promotions is advertisements.
6.2.6Ethical problems
Behavior can be unethical such as dishonesty, unsafe practice and conflicts of interest falls into
the ethical problem category. A common complaint among customer has been that while cell
phone service provider announces a low price for their package. Such hidden pricing can prove
harmful in long run as it results in massive churn with customer switching as soon as better offer
is made.
Another ethical issue arises when service provider employer an independent dealer that is so
profit motivated that complete information is not provided to customer upon motivation. By time
customer realizes the extra charges they have to pay.
6.2.7Complete service providers
Many of the cellular service providers are complete service providers offering wire line, Internet
ant wireless services. Although each of the branches may be set up as independent companies, in
the minds of the customers they are one. As a result, dissatisfaction in one area can quickly
snowball and lead to switching behavior where the client withdraws the complete service from
the organization.
6.2.8Changes in technology
With technology advancing at a rapid pace, cellular service providers are scrambling to keep upwith customer needs and in the process trying to distinguish themselves from the
competitor.Carriers completely and fiercely. More and faster ways to send data. Offering
new services not only help companies gain and retain customers but it also provides a mean of
generating greater revenue from one client. Companies that do not offer services in keeping with
the technological trend ultimately end up losing the client to a competitor that does offer the
service.
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6.2.9Soft shoppers
As mentioned earlier, in an attempt to woo customers, companies are targeting them heavily
through advertisements, mall intercepts, and telemarketing. The outcome of this has been the
change in consumers. Consumers today are a lot more aware of the different services available to
them and do not hesitate in doing constant price comparisons to get the best deal. These
consumers are called soft shoppers.
7. OBJECTIVES
Identifying and understanding customer switching behavior is important for a company, as
executives will be forewarned allowing them the time to find a way of forestalling the negative
impacts of switching. This research outlines the overall trends in the Pakistani Cellular Industry
and identifies the motivators for consumer switching behaviors. This research paper is conducted
in order to get a clear picture of consumer switching behavior due to broadcast media
advertising. The research also aims to find out how advertising affects the choice of students in
selection of different packages offered by cellular providers. Due to this the research focuses
whether it results in consumer switching to other cellular providers from their current service
provider. We have focused the students studying in different universities of Karachi and were
able to collect information from FAST-NU and MAJU University. The competitive landscape in
the wireless telecommunications industry has rapidly changing. We aimed to know about the
level of competition between the cellular providers.
8. Limitations
This study has several limitations. First, due to financial and time restraints, a convenience
sample of 2 different universities operating in Karachi is used. The students views may not be
representative of the general population even if they are cellular users.
Second, due to convenience sample, there is a selection bias as the distribution of respondents is
not sufficient across the service provider. Because of this, certain statistics cannot be run.
Third, use of a small sample possibly led to the insignificance of certain tests; however a
different result might be attained if a larger sample size is used.
Fourth, as the surveys conducted are paper and pencil surveys, there might be bias in the answers
as respondents have the ability to return to previously answered questions and change theiranswers.
Finally, this research has certain geographical limitations. Due to time and financial constraints,
the study is conducted only in Karachi and has focused on four universities only. As we have all
national service providers, these results would have to be extrapolated to other regions and
universities.
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9. Research Design
9.1 FRAMEWORK
A theoretical framework is a collection of interrelated concepts, like a theory but not necessarily
so well worked-out. A theoretical framework guides your research, determining what things youwill measure, and what statistical relationships you will look for. The variable which we have
identified in our research is current cellular provider as independent variable. This is because
students can choose any of the current cellular providers according to their own choice. The
current cellular providers operating in Pakistan are Mobilink, Ufone, Telenor, Warid and Zong.
This factor is totally out of our reach.
The dependant variable in our framework is the consumer switching behavior which is result of
the factors which are discussed above in the part why consumers switch. Consumer switching
behavior is taken as dependant because after using the service the outcome is informed of
switching behavior.
There are several moderating factors identified in our framework that are core service failures,
pricing, competitive offers, ethical problems, involuntary switching and technology. All of these
factors are briefly discussed above in topic details of chapter Introduction, which gives a clear
picture about the effectiveness of these factors in switching behavior.
10. MODEL
Current
Cellular
Consumer
Switching
Pricing
Competitiv
e Offers
Core
Service
Ethical
Proble
TechnologInvoluntar
y
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11. VARIABLES
The following variables are identified:
Independent variables:
o Current Cellular providers
Mobilink
Ufone
Telnor
Warid
Zong
Dependant variables:
o Consumer Switching Behavior
Moderating variables:
o Pricing
Hidden charges
Monthly Package services
o Competitive offers
o Core service failures
Billing errors
Servicemistakes
Disruptions
o Ethical problems
Completeness of information provided by dealers
Hidden charges
o Involuntary switching
Mergers or takeovers
o Technology
Trendy phones
Latest features
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12. Generation of Hypothesis
12.1 HYPOTHESIS Null hypothesis
Current cellular providers result in consumer switching behavior.
Alternate hypothesis
Current cellular providers do not result in consumer switching behavior.
Type of investigation
The type of investigation being conducted is co relationalbecause we are interested in
finding association between the variables.
Study setting
Non contrivedstudy was performed as work is normally proceeding. We used a natural
environment.
Unit of analysis
Different institutions were used as our unit of analysis because we had taken three different
institutes.
Time horizon
The research was gathered and organized in a period of three weeks.
Data collection methods
A questionnaire was developed in order to gather data on our research topic.
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13. RESEARCH DESIGN
13.1 POPULATION
Our population included all the students studying in different universities of Karachi.
13.2 SAMPLEThe research sample was gathered from 30respondents which were taken from 3 samples. These
four samples are basically taken from four different universities that is FAST-NU and MAJU
13.3 SAMPLING METHOD
The sampling method chosen for the research topic is simple random sampling. This is because
each individual is chosen randomly and entirely by chance, such that each individual has the
same probability of being chosen at any stage during the sampling process, and each subset of
individuals has the same probability of being chosen for the sample as any other subset of
individuals.
13.4 PLAN OF ANALYSIS
The plan of analysis is based on the following criteria:
13.4.1 Frequency: This method is used to get the exact percentage about questions which
were relating to our hypothesis. Through this we get the exact figure about number of
respondents who were relating to our criteria.
13.4.2Cross Tabulation: We used this technique in order to know about the distribution
of two or more variables. Different variables are compared to get the clear picture about
the relationship between them.
13.4.5One sample T-Test: This technique is used in order to know about the validity ofvariables within the confidence interval.
13.5 SOFTWARE EMPLOYED
The software used for the analyzing of data is SPSS (Statistical Package for the Social Sciences).
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14. Data Collection and Interpretation
FREQUENCY AND PERCENTAGE
GENDER
gender
Frequency Percent Valid Percent
Cumulative
Percent
Valid male 15 50.0 50.0 50.0
female 15 50.0 50.0 100.0
Total 30 100.0 100.0
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UNIVERSTY
universty
Frequency Percent Valid Percent
Cumulative
Percent
Valid Fast 15 50.0 50.0 50.0
maju 15 50.0 50.0 100.0
Total 30 100.0 100.0
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Question 1:Do you own a cellular phone?
Yes No
Do you own a cellularphone?
Frequency Percent Valid Percent
Cumulative
Percent
Valid yes 29 96.7 96.7 96.7
no 1 3.3 3.3 100.0
Total 30 100.0 100.0
From this we can conclude that mostly everybody has a cell phone, which shows how
necessary it is.
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Question 2:Your current cellular provider is:
Yourcurrent cellularprovideris
Frequency Percent Valid Percent
Cumulative
Percent
Valid Mobilink 3 10.0 10.0 10.0
Warid 7 23.3 23.3 33.3
Ufone 15 50.0 50.0 83.3
Telenor 4 13.3 13.3 96.7
Zong 1 3.3 3.3 100.0
Total 30 100.0 100.0
This graph clearly show that the Ufone is themost popular cellular provider for
students, the reason for this our its attractive packages and services.
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Question 3: On average how many minutes do you use per day on
your cellular phone?
On average how many minutesdo you use perday onyourcellularphone?
Frequency Percent Valid Percent
Cumulative
Percent
Valid less than 14 minutes 4 13.3 13.3 13.3
15-24 minutes 6 20.0 20.0 33.3
25-34 minutes 7 23.3 23.3 56.7
35-44 minutes 2 6.7 6.7 63.3
45 minutes or over 11 36.7 36.7 100.0
Total 30 100.0 100.0
Mostly students talk more than 45 minutes ormore daily, this can be due to theavailability of cheap packages offered by cellular providers.
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Question 4: How likely are you to switch away from your existing
cellular provider?
How likely areyou to switch away from yourexisting cellularprovider?
Frequency Percent Valid Percent
Cumulative
Percent
Valid Very Unlikely 12 40.0 40.0 40.0
Unlikely 9 30.0 30.0 70.0
Neutral 6 20.0 20.0 90.0
Likely 2 6.7 6.7 96.7
Very Likely 1 3.3 3.3 100.0
Total 30 100.0 100.0
The result clearly shows that people are unlikely to switch away from their cellularprovider, andmostly the answers are rated above the neutral.
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Question#5: How likely are you to switch to your service provider
due to:
Q#5 a) High monthly package service
High monthly packageservice
Frequency Percent Valid Percent
Cumulative
Percent
Valid very unlikely 1 3.3 3.3 3.3
unlikely 3 10.0 10.0 13.3
neutral 5 16.7 16.7 30.0
likely 11 36.7 36.7 66.7
very likely 10 33.3 33.3 100.0
Total 30 100.0 100.0
This result clearly shows that the likely students are switch their cellular provider due to the
high monthly package service.
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Q#5 b) Attracted features offered by Competitors
Attracted features offered by Competitors
Frequency Percent Valid Percent
Cumulative
Percent
Valid very unlikely 1 3.3 3.3 3.3
unlikely 1 3.3 3.3 6.7
neutral 3 10.0 10.0 16.7
likely 8 26.7 26.7 43.3
very unlikely 17 56.7 56.7 100.0
Total 30 100.0 100.0
This graph shows that the students are very unlikely switch their cellular provider due to
attracted features offerd by competitors.
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Q#5 c) Hidden charges like high charges for overage or roaming
Hidden chargeslike high charges foroverage orroaming
Frequency Percent Valid Percent
Cumulative
Percent
Valid very unlikely 1 3.3 3.3 3.3
unlikely 4 13.3 13.3 16.7
neutral 4 13.3 13.3 30.0
likely 13 43.3 43.3 73.3
very likely 8 26.7 26.7 100.0
Total 30 100.0 100.0
In this graph the result shows that the likely change their cellular providers due to hiddencharges like overage or roaming.
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Q#5 d) Influence from family & friends
Influence from family & friends
Frequency Percent Valid Percent
Cumulative
Percent
Valid very unlikely 6 20.0 20.0 20.0
unlikely 11 36.7 36.7 56.7
neutral 9 30.0 30.0 86.7
likely 3 10.0 10.0 96.7
very likely 1 3.3 3.3 100.0
Total 30 100.0 100.0
This graph shows that the students are unlikely to change their cellular provider due to influence
from family and friends.
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Q#5 e ) Service disruptions like network upgrades & cell site breakdown
Unreliable reception.
Servicedisruptionslikenetwork upgrades & cellsite breakdown
Frequency Percent Valid Percent
Cumulative
Percent
Valid very unlikely 3 10.0 10.0 10.0
unlikely 3 10.0 10.0 20.0
neutral 13 43.3 43.3 63.3
likely 8 26.7 26.7 90.0
very likely 3 10.0 10.0 100.0
Total 30 100.0 100.0
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Question#6:How would you rate your current cellular provider on
the following?
How wouldyou rateyourcurrent cellularprovideronthe following?
Frequency Percent Valid Percent
Cumulative
Percent
Valid very poor 2 6.7 6.7 6.7
poor 2 6.7 6.7 13.3
moderate 6 20.0 20.0 33.3
good 12 40.0 40.0 73.3
very good 8 26.7 26.7 100.0
Total 30 100.0 100.0
Most of the student rate their cellular provider good.
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Question#7:How would you rate your current cellular provider on
the following:
a)Package offering compared to that of competitors
Package offering comparedto that of competitors
Frequency Percent Valid Percent
Cumulative
Percent
Valid much worse 4 13.3 13.3 13.3
worse 4 13.3 13.3 26.7
moderate 6 20.0 20.0 46.7
better 7 23.3 23.3 70.0
much better 9 30.0 30.0 100.0
Total 30 100.0 100.0
This graph shows that the student rate their cellular provider much better due to package offerdcompared that of yheir compitators.
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Q#7 b) Hidden charges like roaming or overage charge
Hidden chargeslikeroaming oroverage charge
Frequency Percent Valid Percent
Cumulative
Percent
Valid very low 5 16.7 16.7 16.7
low 5 16.7 16.7 33.3
moderate 11 36.7 36.7 70.0
high 6 20.0 20.0 90.0
very high 3 10.0 10.0 100.0
Total 30 100.0 100.0
This result shows that the students rating their current cellular provider moderate due to hidden
charges like roaming or overage.
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Q#7 c) Selection of phone models
Selection of phone models
Frequency Percent Valid Percent
Cumulative
Percent
Valid not at all trendy 4 13.3 13.3 13.3
less trendy 6 20.0 20.0 33.3
moderate trendy 5 16.7 16.7 50.0
trendy 7 23.3 23.3 73.3
very trendy 8 26.7 26.7 100.0
Total 30 100.0 100.0
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Q#7 d) Resolution of customer complaints
Resolution of customercomplaints
Frequency Percent Valid Percent
Cumulative
Percent
Valid very well resolved 1 3.3 3.3 3.3
well resolved 12 40.0 40.0 43.3
resolved 8 26.7 26.7 70.0
sometime resolved 5 16.7 16.7 86.7
not at all resolved 4 13.3 13.3 100.0
Total 30 100.0 100.0
This graph shows that that most of student rate ther current cellular provider good because theircellular provider well resolved their problem .
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Q#7 e) Overall service provided internet, cellular & landline phones
Overallservice provided internet, cellularandlandline phones
Frequency Percent Valid Percent
Cumulative
Percent
Valid very unsatisfied 2 6.7 6.7 6.7
unsatisfied 2 6.7 6.7 13.3
moderate satisfied 10 33.3 33.3 46.7
satisfied 8 26.7 26.7 73.3
very satisfied 8 26.7 26.7 100.0
Total 30 100.0 100.0
Students are moderate satisfied with their cellular provider due to service provided, internet.
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Q#7 f) Service disruptions like network upgrades and cell site breakdowns
Servicedisruptionslike upgrades and cellsites breakdowns
Frequency Percent Valid Percent
Cumulative
Percent
Valid very often disrupted 3 10.0 10.0 10.0
often disrupted 7 23.3 23.3 33.3
disrupted 9 30.0 30.0 63.3
not disrupted 7 23.3 23.3 86.7
not at all disrupted 4 13.3 13.3 100.0
Total 30 100.0 100.0
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Question#8:To what extent the advertisements of the Current
cellular companies affect your perception of their services?
whatextentthe advertisements ofthe current cellularcompanies affectyour
perception oftheirservices?
Frequency Percent Valid Percent
Cumulative
Percent
Valid no effect 1 3.3 3.3 3.3
least effect 1 3.3 3.3 6.7
moderate effect 14 46.7 46.7 53.3
affect 10 33.3 33.3 86.7
change preception 4 13.3 13.3 100.0
Total 30 100.0 100.0
This graph shows that the affect of advertisements of their current cellular companies affect theirperception of their service on the moderate affect.
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Question 9: Would you ever prefer or change the service of a
cellular company on the basis of advertisements?
Students do not prefer to change their cellular service due to advertisements,advertisements doesnt influence them to change from one cellular provider to another.
Wouldyou everpreferorchangetheservice of a cellular
company onthe basis of advertisements?
Frequenc
y Percent
Valid
Percent
Cumulative
Percent
Valid yes 8 26.7 26.7 26.7
no 22 73.3 73.3 100.0
Total 30 100.0 100.0
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CROSS TABULATION
CELLULAR PROVIDERS RELATION WITH ADVERTISEMENT
CELLULAR PROVIDERS RELATION WITH ADVERTISEMENTS
Advertisements play an important role for cellular providers because it can be clearly seen from
the table below that mostly respondents perception changes about services due to the ads being
shown on television and heard on radio.
Yourcurrent cellularprovideris * To whatextentthe advertisements ofthe current cellularcompanies affectyour
perception oftheirservices? Crosstabulation
Count
To what extent the advertisements of the current cellular companies affect your perception of
their services?
Totalno effect least effect moderate effect affect
change
preception
Your
current
cellular
provid
er is
mobilink 0 0 2 1 0 3
warid 0 0 2 2 3 7
ufone 1 1 6 6 1 15
telenor 0 0 3 1 0 4
zong 0 0 1 0 0 1
Total 1 1 14 10 4 30
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CELLULAR PROVIDER RELATIONSHIP WITH SWITCHING FROM ITS EXISTING
PROVIDER
The students using cellular service aremostly unlikely to switch away from theirexisting cellular provider; this shows the loyalty with the cellular provider
Yourcurrent cellularprovideris *
How likely areyou to switch away from yourexisting cellularprovider?
Crosstabulation
Count
How likely are you to switch away from your existing cellular provider?
TotalVery Unlikely Unlikely Neutral Likely Very Likely
Your current
cellular
provider is
mobilink 1 0 2 0 0 3
warid 2 2 1 1 1 7
ufone 8 4 2 1 0 15
telenor 1 3 0 0 0 4
zong 0 0 1 0 0 1
Total 12 9 6 2 1 30
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15. Conclusion
Students do not change their cellular providers due to advertisements.
Consumer switching behavior consists of many factors which have a major impact on
consumers.
Mostly people do not switch from their current cellular providers as they are highly
influenced by their family and friends.
Ufone is most preferable among the students of the universities.
Being a new company Zong is not preferable among the students.
Trendy phones factor showed significant impact in switching of behavior.
Advertisements play a part in changing perception about services provided by cellular
providers.
Respondents have showed good ratings for their cellular provider which shows the loyalty
associated with the cellular provider.
SPSS software helped in analyzing of results which made easy for us to interpret the results.
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16. RECOMMENDATION
The different cellular providers can conduct this study using its existing clients to
understand their switching behavior, the factors important to them, and how they would
rate the company on these factors.
Cellular providers can use this study to analyze their strengths and weaknesses as they
have a clear picture about the factors which lead to switching behavior.
Keeping in mind the geographical restraints, the research should be conducted with a
much larger sample size to confirm the findings. As a step further, the cellular providers
can also compare certain geographic regions to see if that some are more prone to
switching and then realign their offerings in that region. This step could be more valuable
for a national company, as it will help save resources from regions where clients are loyal
and pool them into regions where clients are more likely to switch. Hence, the company
will have a more efficient use of its financial resources.
Advertisements play an important part in attraction of services provided by cellular
providers, so they should be given much consideration.
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17. APPENDIX
17.1CODE BOOK
Q#
1
Q#
2
Q#
3
Q#
4 Q#5 a)
C
)
D
)
e
)
Q#
6
Q#
7
b
)
c
)
d
)
e
)
f
)
Q#
8
Q#
9
Q#1
0
gen
d
uni
v
1 2 2 2 4 5 2 2 1 5 4 3 5 2 3 3 3 2 2 1 1
1 3 3 1 5 5 4 1 4 3 4 4 4 1 4 2 4 1 1 2 1
1 3 1 2 3 5 2 2 3 4 5 3 5 2 3 3 3 2 1 2 2
1 2 2 3 4 4 4 2 2 5 3 3 3 3 4 4 4 2 3 1 2
1 3 5 1 5 5 4 3 4 4 5 1 5 2 3 3 1 1 1 2 1
1 4 4 2 5 5 3 3 3 1 1 1 1 4 3 1 3 2 1 1 2
1 2 5 4 4 4 5 1 3 4 5 3 3 2 5 4 5 2 3 2 12 3 3 1 2 5 5 1 5 2 5 2 5 4 5 2 4 1 1 1 2
1 5 2 3 4 3 4 4 3 4 2 1 2 3 3 5 3 2 2 1 1
1 4 5 2 5 5 5 2 2 2 4 3 5 5 5 3 3 2 2 2 1
1 3 1 1 4 4 4 5 4 4 2 2 2 2 3 1 5 1 1 1 2
1 1 3 3 1 5 1 3 3 3 3 3 4 3 4 2 3 2 1 2 2
1 3 5 2 3 5 4 2 1 4 5 3 2 3 1 4 4 2 1 2 1
1 1 4 1 5 2 4 4 4 3 3 1 5 2 5 3 3 2 2 1 2
1 2 5 5 5 5 2 4 3 4 3 4 1 5 4 2 4 1 1 1 1
1 3 2 1 2 1 3 2 5 4 4 1 4 4 2 4 3 2 3 2 2
1 1 3 3 4 5 5 3 4 5 1 3 5 2 3 4 4 2 2 1 11 3 1 1 3 4 2 1 3 5 4 4 1 5 2 3 4 2 4 2 2
1 3 5 2 5 4 4 2 3 3 2 2 3 3 5 3 3 1 1 2 2
1 2 1 1 2 5 3 1 5 4 5 2 5 2 4 5 5 2 5 1 1
1 3 3 4 4 3 5 3 1 1 2 4 2 5 5 2 2 2 2 2 2
1 3 5 2 3 4 3 3 3 5 3 2 4 3 4 4 4 2 1 2 2
1 2 2 1 5 5 5 2 2 3 1 4 2 3 1 4 5 2 4 1 1
1 3 2 3 5 5 4 2 4 3 1 3 4 2 5 1 3 2 1 1 1
1 4 5 1 4 5 5 3 3 5 5 5 2 4 3 2 4 2 2 2 1
1 4 3 2 3 4 4 2 4 4 4 4 1 2 4 5 3 1 1 1 2
1 3 5 3 4 3 5 1 3 4 5 5 4 3 3 3 4 2 2 2 11 3 5 1 5 5 4 3 4 5 4 3 3 2 4 2 3 2 1 1 2
1 2 3 2 4 4 4 3 3 4 3 5 4 2 3 5 3 1 2 2 2
1 3 5 1 4 5 4 2 3 5 5 3 3 4 5 3 3 2 1 1 1
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! " #
# ! " #
$ %
&
' # ! " #
! " #
17.2QUESTIONNAIRE
Gender Male Female
University
For questions 1-3, please check only one response that best applies to you.
1) Do you own a cellular phone? Yes No
2) Your current cellular provider is:
Mobilink
Warid
Ufone
Telenor
ZongOther, Please Specify
3) On average how many minutes do you use per day on your cellular phone?
Less than 14 minutes
15-24 minutes
25-34 minutes
35-44 minutes
45 minutes or over
In the question below, please check one box on the scale, where left most indicates very unlikely and box on the
extreme right indicates very likely.
4) How likely are you to switch away
from your existing cellular provider?
Question5--In the questions below, please check one box on the scale, where left most indicates very unlikely and
box on the extreme right indicates very likely.
5) How likely are you to switch to your
service provider due to:
a) High monthly package service
b) Attracted features offered byCompetitors
c) Hidden charges like high charges
for overage or roaming
d) Influence from family & friends
e) Service disruptions like network
upgrades & cell site breakdown
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1 2 3 4 5
( ) 0 1
2 3 3 0
( ) 0 1
4 3 3 5
1 2 3 4 5
Much
Worse
Much
Better
Very
Low
Very
High
Not at allTrendy
Very
Trendy
Very Well
Resolved
Not at all
Resolved
Very
Unsatisfied
Very
Satisfied
Very Often
Disrupted
Not at all
Disrupted
No
Affect
Changes
Perception
6) How would you rate your current cellular provider on the following?
Question7--Please check one box on the anchored scale that best fits your opinion.
7) How would you rate your current cellular
provider on the following:
a)Package offering compared
to that of competitors
b) Hidden charges like roaming
or overage charge
c) Selection of phone models
d) Resolution of customer complaints
e) Overall service provided
internet, cellular & landline phones
f) Service disruptions like network
upgrades and cell site breakdowns
8) To what extent the advertisements of the
Current cellular companies affect your
perception of their services?
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For questions 9-11, please check only one response that best applies to you.
9) Would you ever prefer or change the service of a cellular company on the basis of advertisements?
Yes No
10) How much amount do you spend monthly on your cellular phone?
Less than 500
500 to 999
1000 to 1499
1500 to 1999
2000 or more
*Thank you for your participation*