The Role of Trust in Saudi Telecom Company - Case Study Example

1. Introduction In the last three decades, Saudi Arabia has emerged as one of fastest developing country. It has undergone tremendous transformation in almost all areas of public concern vis-à-vis health, education, transport, environment and infrastructure development (Saudi Arabia, 2006). Telecommunication has been the most fertile and innovative industry in Saudi Arabia that has significantly impacted the development process and facilitated linkages within the various inter-related elements of business compulsions and people at large. The broadband connection and internet has transformed the traditional model of business and heralded a new era of marketing based on relationship building. The ‘trust’ becomes a critical factor because of the intangibility of the products on the internet. The quality of products bought on internet is difficult to judge until it is delivered and can be experienced. Indeed, the company selling its goods and services on the internet must evolve marketing strategies that promote factors like credibility of the company, price, promotion, segmentation etc. Case study of Saudi telecom Company would be studied for the role of trust in e-marketing. 2. Overview of the organization Saudi Telecom Company with headquarter at Riyadh was established in 1998 and is a leading telecommunication company of Saudi Arabia. It provides state of the art integrated solution in the field of telecommunications. As a major service provider of Kingdom of Saudi Arabia for fixed line telephones, mobile phones (second and third generation), data services like broadband internet services, leased lines, e-commerce etc., it meets the challenges of the time through customising its products to the changing needs and requirements of the customers. It has expanded its business across ten nations and has maintained its leadership position in the telecommunication through development of state of the art land and marine transmission network, satellites and international exchanges in Middle East. Its customer base had reached 21 million by the end of 2009 (STC). Trust is a vital paradigm for STC mainly for two reasons: firstly customers must continue to prefer it as main service provider; and secondly because of the sensitive nature of telecommunication services that facilitate e-commerce activities where e-security is essential for maintaining confidentiality of information and security in financial transactions. The e-commerce hubs started by the company at strategic business points also necessitate that customers’ financial transactions are safe and their privacy is maintained. Thus, the role of trust through enhanced e-security, measures that would help protect the risks of breach of information, after sales services and commitment to quality become critical factors for the company. 3. Research question 1. To what extent the role of trust in marketing its products would help the company to retain its customers? 2. How the company leadership can effectively exploit the changing customers’ demands for improved business outcome? 3. What are the factors that significantly contribute towards developing ‘trust’ in e-marketing? 4. Literature review Various scholars assert that e-trust is important paradigm of e-commerce (Bryant & Colledge 2002, Morrison & Firmstone 2000). Trust is also an intrinsic part of relationship marketing and can be broadly defined as ‘confidence in the exchange partners reliability and integrity’ (Morgan & Hunt, 1994). The e-market is based on information system with its wide variety of database, comprising of canonical and non canonical types of information which is highly sensitive for its confidentiality. Thus, security of user identification and login are vital ingredients of an effective e-market strategy that promotes trust. In the contemporary times when internet has emerged as the most powerful platform for e-market consumers, it becomes imperative that role of e-trust be examined from wider perspectives of developing an effective and sustainable e-market. Walczak et al. (2006) assert that e-market has greatly impacted the online transactions because internet has provided the customers with huge options. Use of digital technologies like mobile phone, internet and computers etc. have greatly facilitated communication among various inter-related factors thus creating a wider database of new opportunities. Thus, only those products that can garner trust are able to retain customers. Indeed, the intangibility of e-marketing compulsions has significantly redefined e-trust as willingness to rely on e-marketers for fulfilling one’s commitments (Hwang & Kim 2007). The companies need to evolve innovative strategies and inputs to promote their credibility and inculcate trust amongst the vast database of customers. 5. Methodology The research study would primarily be qualitative in nature but encompass elements of quantitative research also so that better and more accurate conclusions could be achieved. Qualitative research is a very important tool for evaluating trends and behavioural pattern of the people who are in a position to influence a set of defined parameters or vice versa. It helps to analyse the changing paradigms of the evolving social values and the factors that affect the decisions for adopting the changes. It also demonstrates and facilitates deeper understanding of the problem and helps to investigate the context in its entirety. The research methodology is significant for my research topic as it is based on ‘grounded theory’ where the qualitative analysis of the data is used for generating theories that reflect the realities of life. Researchers believe that a detailed description of the emotional state of people is necessary for understanding the quality of social life. This detailed description is often referred as ‘thick description’ and may contain radical ideas and concepts which could facilitate better understanding of the issues under study. Denzin (1989) asserts that in thick description ‘voices, feelings, actions and meanings of interacting individuals are heard’ (p 83). 5.1. Data collection and sample Primary data collection would be collected through detailed qualitative and quantitative questionnaires prepared, keeping in mind the business viability of STC. The survey would entail questionnaire filled directly by random selection as well as through email. Sampling area would comprise of internet users. Special interview Schedules would also be used to gauge the responses of the people towards e-trust in e-marketing of products and services of STC, in particular. 5.2. Data Analysis and validity Software like SPSS would also be used to analyse the data using different techniques. Tabulation and analysis of the data would be thoroughly carried out using scientific methods so the results are conclusive and give proper evidence in terms of the quality of service rendered and factors that significantly impact e-trust. It is not the main concern of the qualitative research as the main purpose of the researcher is the deeper understanding of the views and thoughts of the persons rather than validation. According to Harry Wolcott (1994) ‘What I seek is something else, a quality that points more to identifying critical elements and wringing plausible interpretations from them, something one can pursue without becoming obsessed with finding the right or ultimate answer, the correct version, the Truth’. (pp. 366-7). (words: 1118) Reference Bryant, A. and B. Colledge. (2002). Trust in Electronic Commerce Business Relationships. Journal of Electronic Commerce Research, 3 (2): p 32-39. Denzin, N. (1989). Interpretive Interactionism. London. Sage. Hwang, Y. and D.J. Kim. (2007). Customer Self-Service Systems: The Effects of Perceived Web Quality with Service Contents on Enjoyment, Anxiety, and E-Trust. Decision Support Systems, 43 (3): 746-760. Morgan, R.M. and S.D. Hunt. (1994). The Commitment-Trust Theory of Relationship Marketing. Journal of Marketing, 58: 20-38. Morrison, D.E. and J. Firmstone. (2000). The Social Function of Trust and Implications for E-Commerce. International Journal of Advertising, 19: l599-1623. Saudi Arabia. The Country Profile. Retrieved from: Saudi Telecom Company. Retrieved from: Wolcott, H.F. (1994). Transforming Qualitative Data: description, analysis, and interpretation. London. Sage. Walczak, S., D.G. Gregg, and J.L. Berrenberg. (2006). Market Decision Making for Online Auction Sellers: Profit Maximization or Socialization. Journal of Electronic Commerce Research, 17 (4): 199-220. Read More