Reference no: EM13259962
Background of study Mobile communication providers are fast changing the way interaction or communication are being done among people. Today, mobile phones have become a requirement for majority of people. Malaysians subscribing to mobile service provider is an important means of carrying out communication. Ramli (2006) there are Indication that the world is witnessing a revolution in mobile phone, a high-tech trend that is moving at a fast pace. Due to the advancement in technology, the technologies used by mobile phone service provider and mobile phones have revolutionized the concept of communication in many ways (2001).
The word "provider" as a personal information services using wireless technologies, such as alphanumeric pager or PCS mobile phone. Services include stock alerts, news alerts, email alerts, and short-text messaging mobile service (SMS). SMS is personal information services delivered using wireless technologies that offer the benefits of one on one communication almost anywhere and at any time (Nilsson,1996; Scourias, 2001). Selecting mobile telephone service provider has become as important as choosing the cellphone itself as it has become essential parts of one's life (both the business and personal life).
With the demographic characteristic (age and gender) which is a clear fact in the recent increase of the usage of cell phones Nilsson (2008).Through these findings, many Malaysian mobile phone service providers are able to continuously providing advance technology for student and the people at large, The use of mobile phone in Malaysia has been encouraging for mobile phone service provider as student has been subscribing to their service each year. . It potentially play a significant role in determine social relationship, providing sense of satisfaction and accessibility for students and young adults.
Statement Problem Communication technology has been growing steadily in Malaysia. Furthermore, with the setup of 4 mobile phone providers, (DIGI ,Maxis ,Celcom and Umobile) consumers are not really sure on which providers they should choose so this could be an advantage to the mobile phone service providers.
In addition selecting a mobile phone service provider can be a difficult task, this is because with all of the options in today's mobile phone market, ranging from choosing a mobile phone service Provider, a service plan, and package. Because each company offers a wide variety of base price points, options, technology, services, gimmicks, and add-ons to catch the customer's attention and business. The purpose of this study is to research the factors that are affecting the choice of mobile phone service providers in SEGi University.
From recent study showed that SEGi students being the focus group they are some factors affecting the choices students make in mobile phone service providers this research will attempt to supply these factors affecting consumer choice so that the students will make the best possible choice of mobile phone service provider
Objective of study This study will examine the factors that influence the choice of student towards mobile phone service providers in SEGi University. These factors of mobile phone service provider such as the effect of advertisement on the SEGI University student, the calling rate charges, how that affects their choice, the type of service package offered by mobile phone service provider and coverage.
Specific Research Objectives. The specific research objectives are as follows;
1. To investigate the relationship between the advertisement and student choice of mobile phone service provider in SEGi University.
2. To investigate the relationship between the rate and student choice of mobile phone service provider in SEGi University
3. To investigate the relationship between the customer service and student choice of mobile phone service provider in SEGi University
4. To investigate the relationship between the service package and student choice of mobile phone service provider in SEGi University
5. To investigate the relationship between the coverage and student choice of mobile phone service provider in SEGi University
1. Does the advertisement affect the student choice of mobile phone service providers in Malaysia?
2. Does customer service affect the student choice of mobile phone service providers in Malaysia?
3. Does the rate of calls affect the student choice of mobile phone service providers in Malaysia?
4. Does the network coverage affect student choice of mobile phone service providers in Malaysia?
5. Does the service package affect student choice of mobile phone service providers in Malaysia?
1.6 Significant of study The telecom industry in Malaysia especially the mobile service sector is at a fast growing paste for business in this country in which these companies such as Digi, Maxis, Celcom and Umobile are in control of the sector providing variety of values packages and additional values to the society Paulrajan ; Rajkumar (2010) The study is made to find why students of SEGi choose any of the services offered by the Malaysian phone networks the study will prove that SEGI student will choose a certain mobile service provider because of the Advertisement, service package, rate or customer service.
1.7 Scope of study This research is going to be done mainly to focus on the factors affecting the choice of mobile service providers in amongst student of SEGi University. For this research, the researcher will try to investigate and identify the factors which were identified earlier, advertisement, rate, customer service, service package, and coverage. It is assumed that these factors will positively be in relationship with student choice of mobile service provider. The study will be led in SEGi University; this will involve collection of primary data via questionnaire from the students in the University.
1.8 Chapter summary The chapter above has clearly identified the reason why the research will be done depending on the stated objectives of the research, Mobile service providers are those companies who are in charge offering the mobile service and data service. In today's complex business environment, it has become very crucial for the mobile phones service provider companies to attract consumers Chapter 2
2.0 Literature review
2.1 Introduction The chapter is to explore the role of the 5 factors that are influencing the customer in choosing the right mobile service provider. It starts with a brief issues and description of their contribution; however the insights of their impact towards the choice are also discussed. Through the years it's been researched that mobile phones have become a fundamental part of personal communications across the globe during the past decade consumer research has dedicated a little detailed attention to reason and choice of buying decision process there are many difficult factors that need to be taken into consideration when getting in the decision buying process, however it is significant to distinguish buying behavior between different mobile service and packages and change aspect, aspects referring to the reason that affect change, as the mobile phone service market is a typical technology push driven market where products are created ahead of its time, (Gerstheimer; Lupp, 2004). Mobile phone development is based on consumers' possible need of mobile service because the industry has changed to development based on consumer service and technologies (Brown; Prahalad; Nagel, 2003).
For mobile telecommunication the sector has been suffering for the past few years because of the payment of licenses and also due to economic meltdown that happened few years ago. Even with the growth of mobile phone market which is growing five to ten percent a year and the consumer subscriber bases are growing, but average revenue per user (ARPU) is failing and service price competition is heating up (Hansen, 2005). The mobile service sector is in the form of transformation from third generation (3G) to the fourth Generation (4G) mobile phones they are also known as smart phones which are expected to change the way people use their mobile phones. The rise of the (4G) network and its consumer acceptance is said to be one of the toughest marketing challenges in recent history. In Malaysia the first 4G network is the YES and P1 yet they are not targeting the mobile phone market instead they are in the mobile service of internet and data service sector (Benady, 2002).
The hype around the 4G network is surrounded by a revolution in the mobile phone markets intend of an evolution where consumers are able to do the same things with 2G and 2.5G (e.g., GPRS and EDGE technology), but only better and faster in terms of download times (Drucker; Sehovic, 2004) The mobile phone industry is currently using many standards examples, (Japanese PDC, European GSM, American CDMA), Consumers shifting from 3G to 4G, means that in other to use the service offered by the mobile service companies, one has to have a smart phone, although recent news indicates a strong demand for smart phones and tablets there is still skepticism in the media as well as in the market itself towards further technological development Sehovic, (2006).
The development of mobile phones is leading the market into a situation where the basic need for communication, is actually broadened to new means of interaction and personal digital assistance (PDA or Tablets). In fact, mobile phone evolution will eventually lead to the convergence of mobile phones and digital personal assistants (PDAs). Thus, communication is not the only need mobile phones fulfill. Beyond voice, three main trends shaping the so-called mobile culture have been identified: (1) communication services such as voice, text and pictures, (2) wireless Internet services such as browsing, corporate access and e-mail, and (3) different media services such as motion pictures, games and music Hansen, (2005). For example, telecommunications companies promote new services such as mobile internet (social networking) as a new way of enhancing one-to-one and one-to-many communication. According to a fresh study conducted in the UK, close to 40 percent of the youth market will be using social network in the future Enpocket (2006).
There has been rapid development of mobile phones and the introduction of new models into the market on a weekly basis. The 3G, 4G network and smart phones are likely to continue affecting the advancement of the mobile phone market in future though tablet has also come to dominate the market. (Leibovitch, & Giusto 2010). Presently most new mobile phones are of high price with the latest technology features. More advance screen quality display are being use by this phones, resulting to over fifty percent sales in 2010, however more and more of smart phones are been purchased and are easy to use the applications and features. The sales of this smart phones has contributed to the increase of mobile data and also enhance device sale. (O'Keefe, 2012).
The mobile multimedia market has grown in term of technology compare to what it used to be in 2004, with companies and analyst expecting that with more demand on smart phones mobile imaging, games, music, and other media services will improve as users are becoming familiar with these service and their different purpose (Dataquest, Nokia, & Analytice, mobile service providers, 2012). With the use of internet on mobile phones which has change the basic need of mobile phone from only communication to also gaining internet access. Which has bring mobile phone one step closer to personal computers.
The main purpose of this paper is to examine the main factors affecting consumers' reasons or drive to choose a mobile service provider and the main reason why they choose each service provider, although one could say choosing a mobile service provider is called general knowledge but it does involve a buying process.
The next section of the study will be on the basis of the chosen mobile service providers which are most liable to be purchased by the consumers 2.2 Background of the Research 2.2.1 Advertisement Advertisement is known to be an important tool used by many mobile phone providers to attract consumers. It is arguably that advertisement is the most standout component of a marketing mix to the consuming consumers. Battman, (2010) agreed that advertisement plays a key role in providing better information to many consumers. Peng (2010) said that advertisement method is an important concept in the sale of a product.
Through advertising, consumers can easily gather all the given information from advertisement especially from newspaper, Internet sites or even from brochures, distributed by mobile phone providers. Consumers then can decide whether or not to purchase the product being offered by most mobile phone provider. Peng (2009) stated that some advertisements have the strength of providing useful information for consumers who want to know more about the new product Unfortunately, Peng (2009) claimed that some advertisement might contribute to the worsening of poverty, due to the fact that many poor people are influenced by advertising to spend a large part of their income on products they do not need. The mobile phone providers need to learn to highlight the strengths and avoid weakness of using advertisements to promote their products. Using the right knowledge, they will be able to improve the good virtue of advertisement.
Peng (2010) stated that advertising is an important tool for organization and its influence on consumers is great. He also stated that every day, consumers are exposed to advertisement. Rajeev; Batra (20011) stated that the influence of advertisement is great because of its very persuasive nature. If mobile phone providers want to have better selling power, they need to use advertisements effectively to persuade and attract customers. The mobile phone providers are trying in many ways in perfecting their advertising strategy. Nattermann (2012) stated that in order to gain better strategy, many mobile phone providers have sent out their marketing agents to examine the mobile communication market.
He agreed that it is important for each mobile phone providers to have access information to the demand market and the opinion of future consumers. When this method is done, mobile phone providers can have full information on the market situation for its product thus to compete with one another.
The effectiveness of advertisement is amazing. G.Myers, (2010) added that advertisement method might attempt to remind consumers of the important distinct features of their brand and products. Each time a mobile phone provider advertises in any given channels like newspaper or on television, more potential consumers might be attracted to the beautiful and unique features of the products and expressed words of the advertisement. Chan (2011) added that the advertisement is so effective because of a number of reasons. She stated that many companies rely on advertisement which they can use psychological strategies to "hook" potential consumers to their particular brand. She later stated that advertisement has been called an "image makers".
Advertisement can project the distinctive features of the products in such an attractive way that consumers who view or see the advertisement will want to find out for themselves-the reality of the product. 2.2.2 Customer Service Devrye (2010) stated that customer service involves activities, other than proactive selling, that involve interactions with customers in person, by telecommunications, or by mail.
She added that customer service should be designed, performed and communicated with two goals in mind, Consumer satisfaction and operational efficiency. Customer service is another main factors in influencing consumers' behavior towards demanding better services from mobile phone providers. Domingo, (2011) stated that perhaps the most critical service attribute is consistency, the overall service aspect that will determine how often we show and offer the desirable service qualities to our customers. This has proven that customer service needs consistency. Therefore most mobile phone providers need to plan and find the best strategy to produce consistency in customer service. Devrye (2013) stated that customer services may include providing information to customers who need enquires, special hotline services, better treatment from mobile phone provider's staff and provide faster delivery of packages if there are any. Domingo (2011) also stated that in services, consistency is important and it implies achieving sameness, uniformity and fairness in delivering or execution of all the services attributes, regardless of time and place occasion.
Many mobile phone providers believe that by achieving consistency in customer service, their customers will be satisfied and that their loyalty to the same provider will be assured. Ramli (2009) too claimed that mobile network providers, which provide better quality customer services, are essential in ensuring complete customer satisfaction in the near future Blumberg, (2013) has concluded that many customers service is strongly affected by customer perceptions, needs and wants. If customers need a better customer treatment, or better quality of delivery, mobile phone providers should embark in providing these services to satisfy their customers.
The most creative program of customer service by any mobile phone providers will ensure a long-term relationship with their customers. Blumberg, (2013) supported statement that good customer services provided by mobile phone providers would create better relationship with their customers. Blumberg, (2010) has his own opinion, He stated that how the company appears and what they say and do at the point of sale would create the initial bond between the customers and mobile phone providers to establish the continuing relationship upon which both the actual service delivery and the perception of service performance will be built.
The well-established service performance will lead to better demand for mobile phone providers 2.2.3 Mobile Phone Rates As the market growth slows or the markets becomes more competitive, most mobile phone providers are more likely attempt to maintain their market share by focusing on retaining the best call rates for their potential and existing customers. We know that a mobile phone rate is rarely cheaper than fixed-line telephony. When consumers make a particular call, it is generally more expensive than using a fixed-line telephone. Mings, (2010) stated that the expensive rate of mobile phone has not dampened the popularity in the use of mobile telecommunication. He later explained that many users even make calls using their mobile phone when they are at home or at the office. Lee (2011) added that the rates determined by mobile phone providers are the essential factors that will influence the customers' demand for better mobile phone service Domingo, (2012) believed that to be cost competitive is to be price competitive.
Oftel (2010) stated that the rates of mobile phone are strongly influenced by geographical factors and that the uses of distinct area types will determine a clear picture of mobile network rates. The geographical factors will enable mobile phone provider to determine the best rates for their customers. They calculate the rates according to the calls made within the same district area or calls made to other states. Domingo, (2011) has proven that customers judge the reasonable rate of mobile network based on their perception of the overall quality and value of mobile network. She later explained that the company's reputation is established by consumers' perception of the important rates attributes relative to their expectation.
When customers have good perception, that the quality network and the value rates of mobile network are strategically established, customers demand for more mobile phone provider will increase. Low and affordable mobile phone rates is a hidden weapon, that gives mobile phone provider sales force the flexibility to beat and match other competitors in the price war. When mobile phone providers are trying to attract more potential customers, they have to make the best decision to clinch the sales. Domingo, (2010) Claimed, that any organizations that produce low-rates for mobile phone network are always in a win-win situation. 2.2.4 Service Package A recent boom in the mobile phone market in the late 2005 has been astounding. By the end of 2008 alone, there were about 500 million subscribers around the world compared to just 11 million subscribers in late 1990's (M.MINGS, 2010). The service packages are one of the most important factors that may determine the customers' demand for better mobile network provider. G. Myers (2009) stated that service package is a key factor in many industries Liu, (2010) added that the ability of mobile phone provider in designing a "services package" that consistently meets the customers' requirements is an important element of a successful quality improvement strategy.
Therefore mobile phone providers need to introduce the best service package to attract more customers. G.Myers, (2009) added again that the service packages could be pitched into 3 categories. They are the basic needs package to meet everyday households need, standard service package that may cover a wider rage and premium package that is aimed at a more indulgent market. Farquhar (2011) stated that it is important for mobile phone provider to identify and understand the importance of service package in order to leverage it successfully.
Consumers need to understand the service package before they would anticipate in joining any of the service packages being offered. Kim (2010) added that if customers understand and believe the service package has something in common with them, the introduction of service package would be more effective. Today, some mobile phone providers assume that customers know what they want and need. However, Riquelme (2011) disagreed with the statement. He stated that customers might not know as much as the customers think they do. Customers do not actually know much about the service packages being offered by most mobile phone provider.
Mobile phone providers need to establish effective channels to provide more information about their service packages to their customers. By providing more efficient information, customers will understand and know more about the service packages being offered by mobile phone providers many network providers have offered many types of service packages for their customer it depends to the customer's needs. Service packages plans come with many types of benefits such as lower rates and access fees, free SMS or even better savings for their customers to enjoy. (Riquelme 2011) stated that it is impossible for decision makers such as mobile phone providers to evaluate all pieces of information about customers' needs in the mobile phone environment.
The only way to know what customers want is to understand what they actually need before any services packages were to be introduced. Myers, (2009) indicated that service packages have many attractive features that can contribute to their effectiveness as a selling tool. Some of the features may include the recognition of their brand name, the color and the words in the service package. G.Myers, (2009) later explained that consumers see and respond to the uniqueness of the package, recognition of the package and instinctively conjures up an image of the package. Furthermore, the service package of mobile phone providers need to be unique and attractive to lured more potential customers. 2.2.5 Network Coverage The coverage of mobile network is another contribution factors that may influence the choice of consumer in choosing a network service provider, it is required as a strategic approach to deliver better quality coverage and services to go beyond customer's expectation (T.Domingo, 2010). Loyal customers will choose those mobile phone service providers that provide best quality coverage and better equipped network coverage support for customers (Hodgetts, 2011). By introducing better coverage network means that mobile phone provider could successfully provide better communication channels for their loyal customers. To achieve the wide spread of the coverage, mobile phone providers need to examine the geographical extent of their network.
By adding wider coverage, customers can have the opportunity to enjoy better quality coverage (Mings, 2012). In the past few years alone, the availability of quality coverage has transformed the prospect for mobile phone provider, especially in these Asia pacific regions. The magic of better coverage is that it is turning the mobile phone service into a big potential growth market especially in the telecommunication market. The day will come when more areas will be covered by mobile phone network and that more customers will enjoy the coverage services offered by mobile phone providers. (M.MINGS, 2010) Network service providers need to provide better quality if they are to increase sales or customer satisfaction because the service providers need to better high quality and a cost effective platform for their coverage (Chin, 2011).
Mobile service phone providers are concentrating in coverage network because it the most important factor that might enable all mobile phone providers to be one of the top providers in the market. (Chin, 2011) Consumers would only choose to develop a long-term relationship with their mobile phone provider. If mobile phone providers could adopt both proactive and corrective approaches in keeping track with the performance of their network coverage, this would help them to secure the service quality level and gain better customers' satisfaction (Liu, 2012).
This chapter started with a brief issues and description of the contribution of the mobile service providers however the insights of their impact towards the choice of consumers are also discussed the chapter broke down the Independent Variables and dependent variable The dependent variable included the Advertisement, Customer Service, Mobile Phone Rates, and Service Package. Advertisement are made or is known to be an important tool used by many mobile phone providers to attract consumers so Consumers then can decide whether or not to purchase the product being offered by most mobile phone provider The term customer service involves activities, other than proactive selling, that involve interactions with customers in person, by telecommunications, or by mail. Rate is what keeps the mobile industry moving which means phone providers are more likely attempt to maintain their market share by focusing on retaining the best call rates for their potential and existing customers. We know that a mobile phone rate is rarely cheaper than fixed-line telephony. When a consumer make a particular call, it is generally more expensive than using a fixed-line telephone The service packages are one of the most important factors that may determine the customers' demand for better mobile network provider. Myers, (2009) stated that service package is a key factor in many businesses
The discussion on this chapter will focus on the methodology research method, the hypotheses generation, method organizing data and analyzing data would be used in the data analysis. Other method would include information collection techniques. This research will only examine the factors affecting Students in SEGI University.
3.2. Research frame work
3.2.1 Theoretical Framework The theoretical framework of this study is the structure that holds or support the theory of research. It presents the theory which explains why the problem of this study exists. It also serves as a basis for conducting research. Fig3.0 theoretical framework diagram
3.3.0 Hypothesis of Research: A hypothesis is a tentative statement about the relationship between two or more variables. A hypothesis is a specific, testable prediction about what you expect to happen in your study. For example, a study designed to look at the relationship between sleep deprivation and test performance might have a hypothesis that states, "This study is designed to assess the hypothesis that sleep deprived people will perform worse on a test than individuals who are not sleep deprived." Unless if creating a study that is exploratory in nature, the hypothesis should always explain what it is expected to happen during the course of the experiment or research. A hypothesis does not have to be correct. While the hypothesis predicts what the researchers expect to see, the goal of research is to determine whether this guess is right or wrong. When conducting an experiment, researchers might explore a number of different factors to determine which ones might contribute to the ultimate outcome.
3.3.1 Advertisement Ho: Advertisement will not have influences on the choice of customer in choosing the right mobile phone service provider. H1: Advertisement will have influence on the choice of customer in choosing the right mobile phone service provider.
3.3.2 Network coverage Ho: Network coverage will not have influence on the choice of customer in choosing the right mobile phone service provider. H1: Network coverage will have influence the choice of customer in choosing the right mobile phone service provider.
3.3.3 Rates Ho: Rates will not have influence on the choice of customer in choosing the right mobile phone service provider. H1: Rates competitiveness will have influence the choice of customer in choosing the right mobile phone service provider.
3.3.4 Service package Ho: Service package will not have influence on the choice of customer in choosing the right mobile phone service provider. H1: Service Package product will have influence the choice of customer in choosing the right mobile phone service provider.
3.3.5 Coverage Ho: Network coverage will not have influence on the choice of customer in choosing the right mobile phone service provider. H1: Network coverage will have influence the choice of customer in choosing the right mobile phone service provider.
3.4 Sampling and Data
3.4.1 Sample Selection The survey questionnaire will consists of three distinct sections, each of which will contains relevant questions pertaining different parts of the study, sample selection is the BAC student home grown of SEGi University Damansara, the pilot test includes 25 respondent and the whole respondents will include 175 respondent that the research will use, random sample procedure in which everyone has an equal chance.
3.4.2 Description of Data The research will be based on primary data to be collected from mobile phone users in the university, the research will be based on survey questionnaire method of collecting data this process is best suited for descriptive research, in collecting the data both online questionnaire and hard copy questionnaire will be used in the research. The data for the research will be collected with respect to five demographics of the students i.e. Age, gender, Race, Academic level and Allowance. The research will also use questionnaire consisting of 24 close ended questions to capture the experiences of the target respondent about mobile phone service providers, the questionnaire will be divided into various parts such as; ? Demographic profile of the respondents ? Consumer's behavior towards existing mobile phone service providers ? Factors that may affect the consumer for the selection of mobile phone service provider such as Advertisement, Rates, Customer service, service package and coverage
3.4.3 Data source and collection Data is divided into primary data and the secondary data. The primary data of this research will be gathered from questionnaire, while the secondary data can be gathered from Internet, magazines, journals and even electronic resource. 3.5 Variables and measurements The research is based on two variables the independent and the dependent variables which includes Five dependent and one independent variable the dependent variables include Rate, Service package, Customer service ,Advertisement and coverage and independent variable is choice of Mobile service provider
3.6 Equations and Statistical procedures In this section, the calculations and statistical procedures will show the Cronbach's Alpha, the frequencies; descriptive statistics. The calculation will determine the value of mean, mode, median, standard deviation and variance. The distribution of questionnaire is essential in determining the factors that will affect consumer choice of mobile service provider The analysis method can be aided using the Statistical and economical software SPSS version 20. All data collected that are gathered from the questionnaire would be keyed into the software to get the analysis result.
3.7 Chapter Summary This chapter was basically about how the data would be collected, when where the data is to be collected the sections also talks about the sampling test the dependent and independent variable and the section also further discussed about the methods of collecting the data. This section also discussed about data source i.e. primary and secondary and the use for each of these data collection methods the section also describe the equations and procedures for the data analysis. just to rephrase it that all i want.