ABSTRACT
This research study has gone through a
detailed analysis of a questionnaire survey by involving all types of people
particularly the youth. 30 responses were collected randomly to know the
switching intentions of different mobile users with the help of four predictors
i.e. anger incident, call rates, packages and outcome quality. Findings of the
study showed that beside all other factors have influence on the customers’
switching intentions but the overriding factor remained the cost effectiveness.
The critical role of this factor is because of the different socio / economic
conditions of a developing country like Pakistan where buying power of a common
man is low as compared to rich and developed countries. But generally it holds
true as concluded by other research studies.
INTRODUCTION
The growing competition in the global
market is showing that it is becoming increasingly important for companies to
retain their existing customers. Gaining knowledge about customers' switching
behavior is substantively important which can only be examined by analyzing the
role of various factors affecting switching processes.
This study is based on the responses
from youngsters who are also termed as innovators in marketing literature being
dynamic and risk taker. Youngsters
always need change in their life and normally observed adaptive about new and
advance offerings. They like creativity and innovation and move from one
product to another. Therefore, preferring new and innovative product is the
core attribute associated with youngsters (Stanton et al., (1994). For example,
considering cell phone industry when a company offers better packages, it
entices youngsters to switch to new cellular service provider irrespective of
what advantages existing company is offering. Switching process results in
relationship dissolution. Duck (1982) described relationship dissolution as the
permanent dismember ship. It is the process of the breaking up of relationships
by the voluntary activity of at least one side (Duck and Rollie, 2010).
Research in relationship marketing has for some reasons argued that creating
and developing relationships contributes to the success of firms. Some authors
are of the view that firms can even use relationship marketing as a competitive
advantage. Analyzing the dissolution process is very important in industrial
markets for the long-term survival. Moreover, firms must also frequently
consider terminating inefficient relationships because of their implicit costs
(Anto´n et al.,2007).
There are five mobile service providers
in our country. Due to the growing competition in mobile telecommunication
sector, it is necessary for the companies to know the customer perception about
the satisfaction on the service provided by them. In the study, attempt has
been made to know the perception of the user’s about the service and some other
related issues.
BACKGROUND OF THE STUDY
Some attempts have already been made to
develop service categorizations that depict the special nature of electronic services
in general (e.g.Angehrn, 1997; Dabholkar 1996; Meuter et al., 2000). Some
categorizations of mobile services exist already. However, most mobile service
categorizations tend to focus on the providers’ perspective rather than the
customer or user’s perspective on the service (e.g.Hyvönen and Repo 2005;
Giaglis, Kourouthanassis and Tsamakos 2003; Sullivan Mort and Drennan 2005;
Mitchell and Whitmore, 2003). Looking more generally at research on mobile
services, some previous research emphasizes the customer perspective of mobile
services. The human development index published by UNDP shows that Pakistan is
yet to develop human resource sector to meet the growing need of
telecommunication sector.
LITERATURE REVIEW
Contemporary marketing literature
reveals keen focus of experts and researchers on customer retention. Because
retaining customers is a core factor for the economic success of a firm in
long-run (Wan-Ling and Hwang, 2006). To retain customers, organizations have to
satisfy them particularly in service
industry (Oyeniyi and Abiodun, 2010). If customers are satisfied with the service, this not only
enhances repurchase intentions (Hellier
et al., 2003) but also addresses the switching intentions . (Fernandes and
Santos, 2007). Switching and switching intentions are considered as the most
important
variable in service sector.
Organizations are now deeply concerned with the factors which impetus witching
intentions. Understanding switching intentions may help in retaining customers
and to avoid the adverse effects that may result due to switching (Wan-Ling and
Hwang, 2006). Service switching is defined as the act of replacing and
exchanging the current service provider
with another that is available to the consumer in the market (Bansal, 1997).
Normally customer satisfaction is found to be the most common factor impinging
upon switching intentions (Fernandes and Santos, 2007). As concluded by Wen-Hua
et al., (2010) if customers are satisfied with call quality, mobile device and
customer complement then it negatively
affect switching intentions.
But contemporary researches show
different attempts of the researchers in explaining the causes of switching and
switching intentions. For example, the study of West (2000) showed that network
externalities, switching costs and psychological involvement are the key
factors to predict switching while according to Gupta et al., (2004)
price-search intentions, channel-risk perceptions, waiting time and evaluation
effort have a significant impact on consumer switching. Wen-Hua et al., (2010)
claimed switching costs and attractiveness of alternatives as dominant factor
affecting switching intention. Jones et al., (2003) made a different attempt by
evaluating the impact of instructional manual understanding on switching
intentions. Customers who understand instructions given at handbook usually
face less difficulty in using the service, have higher levels of satisfaction
and recommend it to others therefore have less switching intentions.
A different approach was applied by
Bansal (1997) by incorporating some measures of theory of planned behavior
(TPB) in predicting switching intentions. TPB posits a link between attitudes
and behavior. In combination, perceived behavioral control, subjective norm and
attitude toward the behavior lead towards “behavioral intention” (Ajzen, 1991).
Bansal (1997) measured the impact of one's attitude towards switching behavior,
perceived behavior control (termed as perceived switching costs) and
satisfaction with the service provider,
with intentions to switch. Results confirmed the significant influence
of all three variables on switching intentions.
Keeping in view the different culture,
social norms and perceptions of people in Pakistan. This research focused on
price, perceived commitment, outcome quality and anger incident as predicting
variable to explain switching intentions. Previously, Anto´n et al., (2007)
analyzed the predicting qualities of these variables in Spanish environment and
found that poor quality, a perception of low organization commitment or
interest, perceived unfair price and an anger incident can help in explaining
the consumers’ intention to switch.
OBJECTIVE
The objective of the study is to
identify a number of factors shaping the customers satisfaction in mobile
telecommunication in Pakistan taking GSM as a case. The acceptability and the
perspective of the users were measured through statistical analysis of the
consumer perception and to identify whether demographic variables like age, occupation,
length, type, reason, expense, location, problems are interrelated. From the
satisfaction and dissatisfaction factors it aims to identify the crucial
factors that are responsible in choosing the service providers. Moreover it
aims to find out the reasons of the consumer dissatisfaction regarding the GSM
service providers. In order to reach to some important recommendations, it
attempts to find out the association among or influence on different variables
through some statistical tools. The ultimate objective of this study is to
provide inputs for preparing a guideline for the telecommunication service
providers from the perception of the customers.
RESEARCH METHODOLOGY AND
DATA SOURCE
Considerable effort was devoted to
developing the appropriate sample plan. The target population of the study
involves present GSM users. Therefore, the present users both male and female
were considered to be the users and each user for the considered use limits was
defined as the sampling unit. The extent of the study was the area of Karachi
City considering their mobility to urban and rural areas. The respondents were
selected from Karachi City. The survey was conducted in 14th May,
2011 with 30 respondents living in Karachi.
In this study, random sampling procedure
was used to collect the data on the perception of the customers. Following
guidelines were followed to select the sampling units: and (i) there should be
diversification among age, sex, profession and cellular service of the
respondents. To focus on mobile telecommunication sector in Pakistan a set of
structured questionnaire was developed to collect the data from GSM mobile phone
users. The measurement scales are based upon the level (High- Low) were
included in a structured format to examine the relationship between the
considered variables. A total number of 8 variables related to the personal and
self-perception of the respondents are included. Secondary data were used in
the study. They were collected from the website and some of the research
articles. The data then was analyzed by SPSS 16.0. To test some hypotheses,
correlation, regression and t-test were used as statistical tool.
DATA
ANALYSIS
Data was
analyzed to determine how the units covered in the research project respond to
the items under investigation. Descriptive statistics, Pearson product moment
correlation and multiple regression methods were used in view of hypothesis and
research objectives. Figures obtained from SPSS-16.0 statistical part were
interpreted to come at conclusion and implications.
Hypothesis
H1:
Anger incident is positively determined with switching intentions.
H2:
Call Rates is negatively determined with switching intentions.
H3:
Packages is negatively determined with switching intentions.
H4:
Outcome quality is positively determined with switching intentions.
Correlation
Matrix
Correlations
|
|||||
Anger incident
|
Call rates
|
Packages
|
Outcome quality
|
||
Anger
incident
|
Pearson
Correlation
|
1
|
-.113
|
-.159
|
.030
|
Sig.
(2-tailed)
|
.551
|
.403
|
.874
|
||
N
|
30
|
30
|
30
|
30
|
|
Call
rates
|
Pearson
Correlation
|
-.113
|
1
|
.281
|
.244
|
Sig.
(2-tailed)
|
.551
|
.132
|
.194
|
||
N
|
30
|
30
|
30
|
30
|
|
Packages
|
Pearson
Correlation
|
-.159
|
.281
|
1
|
.079
|
Sig.
(2-tailed)
|
.403
|
.132
|
.679
|
||
N
|
30
|
30
|
30
|
30
|
|
Outcome
quality
|
Pearson
Correlation
|
.030
|
.244
|
.079
|
1
|
Sig.
(2-tailed)
|
.874
|
.194
|
.679
|
||
N
|
30
|
30
|
30
|
30
|
|
INTERPRETATION:
1.
The relationship between Anger
incident and Call rates is -0.113, it means there is weak relation.
2.
The relationship between Anger
incident and Packages is -0.159, it means there is weak relation.
3.
The relationship between Anger
incident and Outcome quality is 0.030, it means there is a weak relation.
Correlation
analysis determines that if we increase Call Rates by one unit then increase by
Anger Incident. Results of correlation analysis show that packages and call
rates are negatively correlated with Anger Incidents, where outcome quality is
positively correlated. Correlation value of call rates is calculated as -0.113
is negatively correlated. Correlation value of package is calculated as -0.159
is also negatively correlated. Where correlation value of outcome quality is
calculated as 0.030 is positively correlated.
Multiple Regression Matrix
Model
Summary
|
||||
Model
|
R
|
R Square
|
Adjusted R Square
|
Std. Error of the
Estimate
|
1
|
.184a
|
.034
|
-.077
|
.81476
|
a.
Predictors: (Constant), Outcome quality, Packages, Call rates
|
||||
ANOVAB
|
||||||
Model
|
Sum of Squares
|
df
|
Mean Square
|
F
|
Sig.
|
|
1
|
Regression
|
.607
|
3
|
.202
|
.305
|
.822a
|
Residual
|
17.260
|
26
|
.664
|
|||
Total
|
17.867
|
29
|
||||
a.
Predictors: (Constant), Outcome quality, Packages, Call rates
|
||||||
b.
Dependent Variable: Anger incident
|
||||||
Co-efficientsa
|
||||||
Model
|
Un-standardized
Coefficients
|
Standardized
Coefficients
|
t
|
Sig.
|
||
B
|
Std. Error
|
Beta
|
||||
(Constant)
|
3.226
|
.527
|
6.117
|
.000
|
||
Call
rates
|
-.085
|
.196
|
-.090
|
-.434
|
.668
|
|
Packages
|
-.125
|
.182
|
-.138
|
-.688
|
.497
|
|
Outcome
quality
|
.064
|
.202
|
.063
|
.317
|
.754
|
|
INTERPRETATION:
General Equation: Y= Bo+B1(Call Rates)+B2(Packages)+B3 (Outcome
quality)+e
=3.226 –
0.085(call rates) – 0.125(packages) + 0.064(outcome quality)+e
Regression analysis was applied to know the
interdependence of three variables. Results show that total 27 % of the
variation in switching intentions is explained by the three predicting
variables of this study. The values of coefficient are calculated as -0.113, -0.159
and 0.030 for call rates, packages and outcome quality respectively.
Significance P value is 0.000<0.05 which reject
the Ho.
T-Test
If Calculated Value
is greater than Tabled Value the when we reject Ho.
H2: Call Rates is negatively determined
with switching intentions.
Ho= B1=0
H1=B1≠0
Call Rates value is -0.434 >
2.048 so we will reject Ho.
H3: Packages is negatively determined
with switching intentions.
Ho=B2=0
H1=B2≠0
Package value is -0.688 > 2.048 so we will reject Ho.
H4: Outcome quality is positively
determined with switching intentions.
Ho=B3=0
H1=B3=0
Outcome quality is 0.317
>2.048 so we will reject Ho.
First
section of the questionnaire was helped to explain the demography of respondents
with the help of four (4) items. The response of the Networks of Mobilink
(13%), Ufone (30%), Telenor (24%), Warid (20%) and Zong (13%). Majority of
youngsters were male which is about 54% while 46% were females. Pakistan is male dominated society therefore
this was an encouraging aspect. Most of the respondents had completed education
up to bachelor’s level (53%). We also come to know that 28% youngsters were
using Ufone and Telenor respectively whereas subscribers of the other networks
were lower than this figure. The outcome of survey further showed that 74% of
youngsters were students and only 16% were employed.
RESULTS AND
DISCUSSION
Demographic Characteristics
of Mobile Users:
Description
|
Response
|
Percentage
|
Age
|
15-25
26-35
36-45
46-above
|
21%
56%
17%
6%
|
Gender
|
Male
Female
|
68%
32%
|
Profession
|
Student
Own
Business
Employed
Unemployed
|
33%
7%
46%
14%
|
Network
|
Mobilink
Ufone
Telenor
Warid
Zong
|
13%
30%
24%
20%
13%
|
DISCUSSIONS
The factors which affect the switching intentions
include anger incident, call rates, packages and outcome quality. The main
focus of this research study was package/call rates which showed relatively
strong influence in determining switching intentions. This explanation is
consistent with analogous findings that if the call rates are fair then less
number of customer switch-over to the other networks.
Correlation analysis highlighted the fact that
increasing call rates may increase the customer’s
switching intention. If customers feel that prices
they pay for the telecom services are not good value for money then ultimately
it establishes the feeling to renew their mobile network. Secondly, the
correlation results between packages and switching intention validate the
notion that if company is not committed to them as a customer then customers
start searching for other mobile service providers.
Outcome quality also affects the customer switching
intentions to some extent. It is basically the actual quality of the service
provided by the networks. If the outcome quality is below the mark then the
switching intention will be high. This shows that outcome quality has inverse
relationship with the switching intentions. Results further show that anger
incident has smaller impact on switching behavior. If the customer has a bad
experience with the representative of network then it may result in future
switching intentions of customers.
Regression analysis expressed that call rates,
prompt customer services, and packages for customers and anger free services
control the switching intentions and customers stay with their existing service
providers for long time.
Results elucidate that customers are more concerned
about the money they pay for the service.
They want the good quality of service in return.
Minor fluctuations in the price of packages may lead to switching towards other
cost effective network. So the companies should try to make the call rates fair.
CONCLUSION
AND IMPLICATIONS
This study
found that subscriber Anger incident, call rates, packages and outcome quality
have significant influence on user switching intentions. The two variables are negatively
influence switching intentions and one variable is positively influence switching
intentions.
This study
validate and confirm the significant role of call rates, prompt customer
services, packages for customers and anger free services in order to control
switching intentions. Although we can’t ignore the role of outcome quality and
anger incident but the core factors identified by the customers remained as
fair price and perceptual commitment of mobile service provider with customer. Continuous
technological advancements add new features in mobile sets which also tend
youngsters to go for new mobile sets. However, this research study was mainly
focused on investigating the factors that cause individuals to change their
cellular connections particularly among youngsters which constitute the major
portion of the population. In Pakistan, various companies have invested in
telecom sector in anticipation of long-term growth. They are duly concerned
about retaining old customers in addition to look for new. In view of the
findings of this study, the organizations can take following factors into
account.
1.
It is the prime duty of support
staff to address the problems of their subscribers effectively and efficiently.
Especially, their attitude play important role in retaining customers.
2.
Call rates should be fair enough
to retain existing customers and attract new.
3.
Mobile service providers should
be fully committed to their customers by maintaining a frequent and constant.
4.
Critical incidences may provide a
set back to the relationship between customer and a company. An utmost effort
should be made to avoid such incidences in short-term as well as in long-term.
References:
http://en.wikipedia.org/wiki/Mobile_phone
Questionnaire
A study on factors that cause mobile users to
switch their mobile service
Respected Madam/Sir,
As a part of my project I would like
to gather some information from you which will help me in an in depth study of
my project. I would be obliged if you co-operate with me to fill the
questionnaire. Since the questionnaire is being used for academic purpose, the
information gathered will be strictly confidential.
(Please
put a tick mark in the appropriate choice)
1.
|
What is your age?
|
|||||||
1.
|
15-25
|
2.
|
26-35
|
2.
|
36-45
|
4.
|
46-above
|
|
2.
|
Gender?
|
|||||||
1.
|
Male
|
2.
|
Female
|
|||||
3.
|
Profession
|
|||||||
1.
|
Student
|
2.
|
Employed
|
3.
|
Unemployed
|
4.
|
Own Business
|
|
Which cellular service do you use?
|
||||||||
1.
|
Mobilink
|
2.
|
Ufone
|
3.
|
Warid
|
4.
|
Telenor
|
|
5.
|
Zong
|
|||||||
5.
|
In your opinion anger incident is one of the cause of mobile
user switching?
(Rate your choice)
|
|||||||
1.
|
High
|
2.
|
Medium
|
3.
|
Average
|
4.
|
Low
|
|
6.
|
Rate your satisfaction level related
to call rates of your mobile service?
|
|||||||
1.
|
High
|
2.
|
Medium
|
3.
|
Average
|
4.
|
Low
|
|
7.
|
Rate your satisfaction level related
to packages of your mobile service?
|
|||||||
1.
|
High
|
2.
|
Medium
|
3.
|
Average
|
4.
|
Low
|
|
8.
|
Rate your satisfaction level related
to quality of your mobile service?
|
|||||||
1.
|
High
|
2.
|
Medium
|
3.
|
Average
|
4.
|
Low
|
|
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