How Users Choose a Mobile Provider and Mobile Services - Research Paper Example

Research Report May Executive Summary This research paper aimed at gaining a deeper understanding of how attach different aspects of themobile telephone providers in their day-to-day operations. The researcher used a questionnaire with different study aspects was developed and had a sample 100 participants. The research tool sought information about the participant’s important factors which they attach while choosing the telephone company of one’s choice, the number of times one has changed mobiles phones, satisfaction levels on the services the chosen mobile providers offer, how the different information offered affects their opinions towards the providers, their age, gender and annual income. Of the 100 participants, majority of the were over 60 years of age (42%). Those between 30 and 60 years were 34% of the total sample while 24% had less than 30 years. Males were 60% while women were 40% in the sample. A binomial test conducted to ascertain whether the difference in representation between males and females was found not to be significant at 5% level of significance. Further, 48% of the participants earned less that %50,000 annually as compared to 52% who earned more than $50,000. This data compared well with the local census data since the sample was an unbiased representative of the whole population and the research findings can categorically be generalized and still achieve the required scientific benchmarks. Having lower call rates, offering clients good advice on how to get good value for their money and offering then different payment options are the best marketing practices which mobile company providers use. Most customers are satisfied by the rate at which the different mobile phone providers respond to the fix any problems that occur in terms of connectivity and other technical problems with the handsets. Further, they are satisfied with value for their money and the provider being reliable and having polite staff members in addition to having more plans at their disposal also encourage them. In general, the hypothesis that having a prepaid option, being owned by an Australian and being regarded highly by peers and friends influences over the choice of mobile phone service provider is true. Table of Contents Research Objectives 4 Hypothesis 4 Hypothesis 1 4 Hypothesis 2 4 Hypothesis 3 4 Hypothesis 4 4 Part 1 5 Part 2 6 Part 3 6 Part 4 7 Part 5 8 Part 6 8 Part 7 9 Part 8 11 Part 9 12 Introduction and Background Research Objectives This research paper was meant to gain a deeper understanding of how clients attach different aspects of the mobile telephone providers in their day-to-day operations. To be able to asses this, a questionnaire with different study aspects was developed and administered to 100 participants. The research tool sought information about the participant’s important factors which they attach while choosing the telephone company of ones choice, the number of times one has changed mobiles phones, satisfaction levels on the services the chosen mobile providers offer, how the different information offered affects their opinions towards the providers, their age, gender and annual income. Hypothesis The research study aimed at proofing the following hypothesis; Hypothesis 1 H0: There is no relationship between age and switching behaviour H1: There is a relationship between age and switching behaviour Hypothesis 2 H0: There is no relationship between gender and switching behaviour H1: There is a relationship between gender and switching behaviour Hypothesis 3 H0: There is no relationship between income and switching behaviour H1: There is a relationship between income and switching behaviour Hypothesis 4 H0: There is no relationship between the number of times phone companies have approached someone and switching behaviour H1: There is a relationship between the number of times phone companies have approached someone and switching behaviour Data Analysis Part 1 Table 1: Age Frequency Percent Under 30 years 24 24.0 30-60 34 34.0 Over 60 42 42.0 Total 100 100.0 From table 1, majority of the participants were over 60 years of age (42%). Those between 30 and 60 years were 34% of the total sample while 24% had lass than 30 years. Table 2: Gender Frequency Percent Valid Male 60 60.0 Female 40 40.0 Total 100 100.0 Males were 60% while women were 40% in the sample. A binomial test was conducted to ascertain whether the difference in representation between males and females was significant at 5% level of significance. Table 3: Binomial Test Category N Observed Prop. Test Prop. Asymp. Sig. (2-tailed) Gender Group 1 Female 40 .40 .50 .057(a) Group 2 Male 60 .60 Total 100 1.00 a Based on Z Approximation. The binomial test results show that the male and female representation in the sample was the same at 5% level of significance [Test Proportion = 0.50, p = 0.057]. Table 4: Gross Annual Income Frequency Percent Under $50,000 48 48.0 $51,000-$100,000 26 26.0 $101,000 + 26 26.0 Total 100 100.0 48% of the participants earned less that %50,000 annually as compared to 52% who earned more than $50,000. This data compared well with the local census data since the sample was an unbiased representative of the whole population and the research findings can categorically be generalized and still achieve the required scientific benchmarks. Part 2 Table 5: How Many mobile phone companies? Frequency Percent 0 6 6.0 1 30 30.0 2 38 38.0 3 16 16.0 4 6 6.0 5 4 4.0 Total 100 100.0 Table 6: Have you changed? Frequency Percent Yes 43 43.0 No 57 57.0 Total 100 100.0 38% of the participants have been approached by different mobile companies 2 times to switch their allegiance. 4% have been approached by 5 different companies, 6% by 4 companies, 16% by 3 companies, 30% by 1 company while 6% have never been approached. Further, 43% have changed allegiance as compared to 58% who have never. Part 3 Table 7: Descriptive Statistics Factor Mean Std. Deviation Provider has lower call rates 6.52 .745 Provider offers advice on how to get value for money 5.58 1.335 Provider offers different payment options 5.24 1.357 Provider financial incentives 5.24 1.944 Provider has call centre staff located in Australia 5.24 1.538 Provider offers loyalty rebates 5.18 1.794 Provider offers replacement handsets 5.18 1.794 Provider has variety of options to choose from 5.16 1.662 Provider is highly regarded by friends and peers 5.10 2.082 Provider offers internet access 4.90 2.472 Provider offers 24 hour toll free help line 4.86 1.820 Provider offers prepaid option 4.68 2.034 Provider is an established mobile service provider 4.64 1.967 Provider does not tie customer to fixed term contracts 4.54 1.823 Provider has outlets within the region 4.42 2.184 Provider is Australian 4.20 1.318 Provider offers competitive corporate packages 4.02 1.880 Provider responds quickly and fixes any problems 3.82 1.218 Provider allows you to monitor phone usage 3.68 1.922 Provider offers flexible plans 3.62 1.852 Provider offers free handsets 3.50 1.673 Provider spread annual bills across 12 equal payments 3.36 1.630 Provider offers latest technology handsets 3.34 1.416 Provider does not charge exit fee 3.24 1.712 Interruptions are rare 3.08 .825 Provider has polite staff 2.82 1.839 Provider offers competitive packages 2.18 1.417 Having lower call rates, offering clients good advice on how to get good value for their money and offering then different payment options are the best marketing practices which mobile company providers use. Customers attach more importance to a company that offers lower rates [M = 6.52, SD = 0.745]. The small standard deviation value shows that there is no much variations on the importance attached to call rates. Further, customers are nowadays more concerned about value for their money. This is not different in this case [M = 5.58, SD = 1.1335] shows that customers attach more importance to this aspect. Giving customers different options to choose from is a plus in marketing in that they feel not restricted. According to Wrenn, B. et al. (2001), competitive advantage in marketing is having an upper hand over competitors mainly through the offering of greater customer value which is attained by the use of lower prices or through the provision of monetary benefits/service which enable them to gain financially. Part 4 Table 8: Descriptive Statistics Mean Std. Deviation Satisfied by the response to different problems 5.04 1.959 Satisfied by value for money 4.46 2.042 Satisfied by reliability of the provider 4.42 2.284 Satisfied by plans available 4.18 2.162 Satisfied by polite staff 4.06 2.073 Satisfied by the payment options offered 2.82 2.226 Satisfied by plans available 2.44 1.623 Most customers are satisfied by the rate at which the different mobile phone providers respond to the fix any problems that occur in terms of connectivity and other technical problems with the handsets [M = 5.04, SD = 1.959]. Further, they are satisfied with value for their money [M = 4.46, SD = 2.042]. Being reliable, having polite staff members and having more plans at their disposal also encourage them. Part 5 Table 9: Descriptive Statistics Mean Std. Deviation The information it provides via newspaper advertising 5.08 1.489 Any information it might send via the email 4.84 1.441 The information it provides via television advertising 3.22 2.195 The information it provides via radio advertising 3.14 2.030 The mobile phone service providers own website 2.94 2.122 Its salespeople that visit you, seeking your business 2.56 1.659 Its sales people that call you via the telephone 2.46 1.696 In terms of promotional tools, customers are say that provider’s information provided via newspaper advertising is more important [M = 5.08, SD = 1.489]. Also, any information it might send via the email is also important [M = 4.84, SD = 1.441] in addition to the information it provides via television advertising [M = 3.22, SD =2.195]. Part 6 Table 10: One-Sample Test Test Value = 3.5 t Df Sig. (2-tailed) Mean Difference 95% Confidence Interval of the Difference Lower Upper Provider offers prepaid option 5.800 99 .000 1.180 .78 1.58 Using 4 as the test value, the results indicate that having a prepaid option is a influence over the choice of mobile phone service provider since the mean difference is positive and significant at 5% level of significance [T (99) = 5.800, p< 0.001]. Table 11: One-Sample Test Test Value = 3.5 t Df Sig. (2-tailed) Mean Difference 95% Confidence Interval of the Difference Lower Upper Provider is Australian 5.311 99 .000 .700 .44 .96 Using 3.5 as the test value, the results indicate that being owned by an Australian is a influence over the choice of mobile phone service provider since the mean difference is positive and significant at 5% level of significance [T (99) = 5.311, p< 0.001]. Table 12: One-Sample Test Test Value = 3.5 t Df Sig. (2-tailed) Mean Difference 95% Confidence Interval of the Difference Lower Upper Provider is highly regarded by friends and peers 7.686 99 .000 1.600 1.19 2.01 Using 3.5 as the test value, the results indicate that being highly regarded by friends and peer is a influence over the choice of mobile phone service provider since the mean difference is positive and significant at 5% level of significance [T (99) = 7.686, p< 0.001]. In general, the hypothesis that having a prepaid option, being owned by an Australian and being regarded highly by peers and friends influences over the choice of mobile phone service provider is true. Part 7 Table 13: Tests of Normality Gender Kolmogorov-Smirnov(a) Shapiro-Wilk Statistic Df Sig. Statistic Df Sig. Provider has lower call rates Male .374 60 .000 .630 60 .000 Female .303 40 .000 .479 40 .000 a Lilliefors Significance Correction Normality was first carried out to determine whether parametric or non-parametric test was to be performed. From the normality test results, normality does not hold thus non-parametric test is used. Table 14: Test Statistics (a) Provider has lower call rates Mann-Whitney U 1197.000 Wilcoxon W 2017.000 Z -.025 Asymp. Sig. (2-tailed) .980 a Grouping Variable: Gender The non-parametric test results indicate that there is no difference in rating importance of low call rates between males and females [U = 1197, p = 0.980]. Table 15: Tests of Normality Gender Kolmogorov-Smirnov(a) Shapiro-Wilk Statistic Df Sig. Statistic Df Sig. Provider offers advice on how to get value for money Male .268 60 .000 .824 60 .000 Female .201 40 .000 .828 40 .000 a Lilliefors Significance Correction Normality was first carried out to determine whether parametric or non-parametric test was to be performed. From the normality test results, normality does not hold thus non-parametric test is used. Table 16: Test Statistics (a) Provider offers advice on how to get value for money Mann-Whitney U 944.000 Wilcoxon W 2774.000 Z -1.902 Asymp. Sig. (2-tailed) .057 a Grouping Variable: Gender The non-parametric test results indicate that there is no difference in rating importance of provider offering advice on how to get value for money between males and females [U = 944, p = 0.057]. Table 17: Tests of Normality Gender Kolmogorov-Smirnov(a) Shapiro-Wilk Statistic Df Sig. Statistic Df Sig. Provider offers different payment options Male .200 60 .000 .868 60 .000 Female .235 40 .000 .884 40 .001 a Lilliefors Significance Correction Normality was first carried out to determine whether parametric or non-parametric test was to be performed. From the normality test results, normality does not hold thus non-parametric test is used Table 18: Test Statistics (a) Provider offers different payment options Mann-Whitney U 1188.000 Wilcoxon W 2008.000 Z -.087 Asymp. Sig. (2-tailed) .931 a Grouping Variable: Gender The non-parametric test results indicate that there is no difference in rating importance of provider offering different payment options between males and females [U = 1188, p = 0.931]. Part 8 Table 19: ANOVA-Provider financial incentives Sum of Squares Df Mean Square F Sig. Between Groups 2.169 2 1.085 .283 .754 Within Groups 372.071 97 3.836 Total 374.240 99 The test was performed using an ANOVA. From the ANOVA results, there is no significance difference in switching mobile providers based on the incentives and no incentives [F (2, 97) = 0.283, p = 0.754]. This can also be confirmed by the multiple comparisons table below. Table 20: Multiple Comparisons-Dependent Variable: Provider financial incentives (I) Gross Annual Income (J) Gross Annual Income Mean Difference (I-J) Std. Error Sig. 95% Confidence Interval Lower Bound Upper Bound Under $50,000 $51,000-$100,000 -.09 .477 .846 -1.04 .85 $101,000 + .29 .477 .542 -.65 1.24 $51,000-$100,000 Under $50,000 .09 .477 .846 -.85 1.04 $101,000 + .38 .543 .481 -.69 1.46 $101,000 + Under $50,000 -.29 .477 .542 -1.24 .65 $51,000-$100,000 -.38 .543 .481 -1.46 .69 Part 9 Table 21: Gender and Have you changed? Cross-tabulation Have you changed? Total Yes No Gender Male 28 32 60 Female 15 25 40 Total 43 57 100 Table 22: Chi-Square Tests Value Df Asymp. Sig. (2-sided) Exact Sig. (2-sided) Exact Sig. (1-sided) Pearson Chi-Square .823(b) 1 .364 Continuity Correction(a) .491 1 .483 Likelihood Ratio .827 1 .363 Fishers Exact Test .414 .242 Linear-by-Linear Association .815 1 .367 N of Valid Cases 100 a Computed only for a 2x2 table. b 0 cells (.0%) have expected count less than 5. The minimum expected count is 17.20. To investigate the possibility of a relationship between gender and switching mobile phones providers, Chi-Square test was used. From the results, there is no relationship between gender and switching mobile phones providers [Chi-square = 0.823, p = 0.364]. Pearson coefficient was used since the cross-tabulation had no cells with less than 5 participants. Conclusions and Recommendations The above research findings have brought out the key aspects involved in mobile phone service provision. Further the research has brought out the importance of using data and not making decisions based on personal opinions. This has been encouraged by many researchers in that tangible decisions are based on tangible data and not feelings. Further, it is also important to be where the customers are in that when customers need your services they should be able to get them instantly. In this research study, this is possible if alternative plans exist where a customer can try any as he/she wishes. Again, it is important to build on the client base. In many cases, organizations gain competitive advantage over their competitors only to lose the advantage due to the element of wait. In marketing it is important to always aspire to grow the market niche each and every day due to the different emanating technological advancements. A marketer should also take advantage of crowds and this is evident in this research study in that a company that is highly rated by friends and peers is viewed as being important than those not. In this case, it is pretty important for the company to take advantage of the network to create a formidable crowd of friends and peers so as to have the required clientele which can take it a notch higher in terms of profits and client base. Further, having outlets close to the people and operating 24 hours a day is a plus in marketing in that technical hitches are faster solved making the company reliable thus more profits and clients. Further, having reliable and polite staff members should be an undertaking for each mobile phone provider company since clients rate companies using many aspects of which polite staff is one among many. In addition, offering customers different choices and plans can be advantageous as the aspect of freedom of choice is important in marketing. Researchers have argued that restricting customers to certain brands/services without broadening them to allow for choices is like imprisoning them. They argue that a marketer should be able to read the mind of the customers and potential ones in order to come up with a strategic planning procedure to accommodate every possible customer. According to Maxwell, J.A (1996), a marketer should further be well connected with the client’s needs and should be savvy of the new technological procedures in order to plan sustainably for the growth of the company. Again, a company through its marketing department should take care of the company mix Your by taking care of the 4 marketing tools which are frequently used to meet customer demands and expectations. These include product, price, place and promotion, and all should be well balanced if the company is to have a niche in the market. For example for a company to gain financially, then its products should be fitting the market requirements and the information contained in the packaging and the product itself should be the same; no contradictions. Further, the product should be meant for the existing market and not imaginary. In this research survey, this is manifested in the way customers feel for the different services in offer and also the possibility of getting services in case the product is not function as expected. According to Marczyk, G.R (2005), a product that is not emendable and that is not reparable is not worth in the market. In this regard, Marczyk argues that a company should always strive to produce that which can be repaired. Further, there is need for a product that that can be used for other purposes e.g. advertising such that customers don’t just use the product for one purpose alone. Another important aspect is pricing. A company prices should be a reflection of the market where the product is situated. Further, the prices should be in such a way that they are within the budget of the majority. If possible, the company should consider revising downwards the prices it requests for the different services. This can be manifested in the lower rates which are the darling of many participants as well as the provision of some services without asking for money e.g. replacements and technical advice to customers. Further, offering free handset is another pricing strategy that can be employed successfully by the company since through the handsets, other services e.g. payments can be requested for without affecting the company’s profits and operational costs. In terms of prices again, it is important to have different pricing plans for different market segments if the company is to prosper. This so because, auguring products on one specific group is not viable and is costly to the company. Products with different prices can be developed for the different markets. This is an effective growth strategy which when employed effectively can lead to more profits, more market share and less operational costs. Distributing your products in such a way that they can be seen by customers is another important marketing strategy. Having centres within the locality is important. In this research study, customers argue that having support in the vicinity and the company being owned by citizens is important as it builds their confidence to make purchases and request for other services. Lastly, it is important for the company to have promotional practices to position their products strategically in the market. Such promotions could include the use of television, emails, radio, newspapers, websites and salespersons advertising methods. Further, the company should have a website which meets the requirements of a good website. It should be visible, it should offer necessary and up-to-date information, should reflect real world scenarios and should have feedback mechanisms (Szmigin, I et al. 2005). In order to gain a deeper understanding of how clients attach different aspects of the mobile telephone providers in their day-to-day operations, the company should consider using a large sample in order to reduce the precision error and also so as to be able to generalize the research findings to the whole population. Further, the company should employ the use of stratified sampling in the determination of the survey sample since the population is not homogenous by heterogeneous. In this case, the population would be sub-divided into non-overlapping sub-groups and then draw a random sample from each stratum and then combine them for the research study. This will ensure un-biased representative of the whole population. Further, the company should consider not putting intervals for the age and income rather should require the customers to give the exact figure to enable the use of other statistical tools e.g. Regressions analysis to answer the question “by how much” the possibility changes based on the study aspects. From the results, there is no relationship between age, gender, annual income level and the number of times phone companies have approached someone and switching behaviour. In his case, the null hypotheses in the four (4) formulated hypotheses are not rejected. Reference List Arnold, D.W. and Myers, J.L (2005). Research Design & Statistical Analysis. Lawrence Erlbaum Wrenn, B. et al. (2001). Marketing Research: Text and Cases. Routledge Szmigin, I et al. (2005). Ethics and International Marketing: Research Background and Challenges. International Marketing Review, Vol. 22 No. 5 Maxwell, J.A (1996).Qualitative Research Design: An Interactive Approach (Applied Social Research Methods). Sage Publications Marczyk, G.R (2005). Essentials of Research Design and Methodology (Essentials of Behavioural Science). Sage Read More