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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*