ABSTRACT
This study delves into the
analysis of consumer preferences regarding mobile telecommunication attributes
in Abia state, Nigeria, focusing on subscribers of MTN, GLO, AIRTEL, and
ETISALAT within Michael Okpara University of Agriculture, Umudike (MOUAU). The
primary objectives include identifying the correlation between network
attributes and network patronage, determining the factors influencing consumer
preferences for network patronage, and examining the impact of call tariffs on
network patronage.
Employing a descriptive research
design utilizing survey methodology, data was collected from a sample size of
333 subscribers, derived from the population using Taro Yamane’s formula. Data
analysis involved the use of tables, pie charts, percentages, and Spearman’s
rank correlation coefficient.
The findings underscore
the significance of call quality, low tariffs, network efficiency, and network
coverage as critical factors influencing consumer preferences, with mean scores
reflecting their importance. Notably, call tariff emerged as the most crucial
factor, followed closely by call quality, network coverage, and network
efficiency. Conversely, the efficiency of customer service was perceived as
less significant in influencing consumer preferences.
The majority of
respondents acknowledged the impact of network attributes on their patronage
preferences, emphasizing the importance of such attributes in their
decision-making process. Additionally, the study revealed a strong and positive
relationship between network attributes and patronage, indicating their pivotal
role in shaping consumer choices.
Furthermore, the study
highlighted the paramount importance of call tariffs in driving consumer
preferences for network patronage, suggesting its influential role in
decision-making processes.
In conclusion, the study
identifies call quality, low tariffs, and network efficiency as the primary
attributes influencing consumer preferences and patronage among MOUAU staff,
while emphasizing the relatively lower importance of customer service efficiency.
Based on these findings,
it is recommended that telecommunication service providers prioritize
investments in enhancing call quality, network efficiency, and coverage to meet
consumer expectations. While maintaining a focus on customer service
efficiency, resources should be allocated judiciously to prevent loss of
customers to competitors.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
1.2 Statement of Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5
Statement of Hypothesis
1.6 Significance of the Study
1.7 Scope of the Study
1.8 Definition of Terms
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Historical
background
2.2 Theoretical review
2.3 Empirical review
2.3.1 Network effects
2.3.2 Attributes of the service
organization
2.3.3 Customers perception and
product/ customer attributes
2.3.4 Consumers Experience and
Socialization
2.3.5 Repeated Exposure and
Advertising
2.4 The Nigeria Mobile
Telecommunication Industry: An Overview
2.4.1 History of Mobile Telecommunications in Nigeria
2.4.1 The 21th Century
2.4.2 The Players in the Industry
2.4.3 The Growth Progression
2.5 The Current Situation of
Nigerian Mobile Telecommunication Industry
2.6 Relevance of the mobile telecommunications industry to the Nigerian
Economy
2. 7 Challenges facing mobile telecommunication service provision in
Nigeria
2.8 Consumer Perception
2.8.1 Factors Affecting Product/service preference
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design
3.2 Areas of the Study
3.3 Population of the study
3.4 Determination of sample size
3.6
Sample and Sampling Technique
3.7 Data analysis techniques
3.8
Model Specification
3.9
Reliability and validity of research instrument
CHAPTER
FOUR
DATA
PRESENTATION AND ANALYSIS
4.1 Data
Presentation
4.2 Test
Hypothesis
4.2.1 Restatement
of Hypotheses
CHAPTER FIVE
SUMMARY, CONCLUSION AND
RECOMMENDATION
5.1 Summary
5.2 Conclusion
5.3 Recommendation
REFERENCES
LIST OF TABLES
Table 1: Annual cost of
generating power for MTN, GLO, AIRTEL, ETISALAT.
Table 4.1 what factors/attribute influences preference of a network
Table 4.2: What is the level of patronage of your preferred network
Table 4.3: To what extent does
network attribute affect the patronage of your
preferred network?
Table 4.6: What is the nature
of your preferred network and network attribute
factor.
Table 4.7: What the
relationship between the call tariff and consumed
preference of network patronage
LIST OF FIGURES
Figure 4.1 Questionnaire Distributed and Returned
Figure 4.2 Academic Union
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The history of mobile
telecommunication dates back to 1886, when Adegboyega (2008), noted that a
cable connection was established between Lagos and London, by the colonial
administration. Bakare and Gold (2013), also said that from the onset it was
clear that the introduction of telephone services in Nigeria was not induced by
commercial or economic motives, but rather to serve the interest of the
colonial administrators. Telephone connections to other parts of the country
continued gradually, and at independence in 1960, and with a population of
about 45million people, the country only had 18,724 phone lines in use (Bakare
et al, 2013).
However, between 1960 and
1985, telecommunication services became commercialized. The old Department of Post
and Telecommunications (P & T) under the Ministry of Communications was
removed from the Ministry and Nigeria External Communication (NET) was created
to take care of external telecommunications services, while the old Post and Telecommunications
(P&T) handled internal networks (Salawu 2012). By January 1985, the Post and
Telecommunication (P&T) divisions, merged with Nigeria External Telecommunication
(NET) to form Nigeria Telecommunication Limited (NITEL). The objective of
establishing NITEL was to harmonize the planning and coordination of the Post
and Telecommunication (P&T) and Nigeria External Telecommunication (NET) services
rationalize investments in Telecoms development and provide accessible, efficient
and affordable service. NITEL thereafter, the only national monopoly operator
in the sector, was synonymous with epileptic services and bad management, which
made telephone then to be unreliable, congested, expensive and customer
unfriendly. Ajayi et al (2012). This was actually the state of affairs in NITEL
before the deregulation of the Telecom sector in 2001.
Deregulation started with
the granting of license to three companies to provide wireless Telecommunication
services using the Global system for mobile (GSM). Though four GSM licenses
were initially auctioned, three were actually issued- Mobile Telecommunication
Network (MTN), Mobile Telecommunications services (MTEL) and Econet Wireless Nigeria,
now Airtel. In subsequent years, more licenses were approved for GLOBACOM,
ETISALAT and some other mobile telecommunication service providers to render
similar services.
Nowadays, due to
competition, the telecommunication service providers offer innovative services
as well as competitive prices also. The nature of the competition today in the Global
telecommunications industry seems to centre on market activities that aim at
gaining competitive advantages through strategic combinations of resources and
presence in multiple services and geographical areas (Chanolmsted and Jamison,
2013). In a competitive market, service
providers are expected to compete on both price and quality of services and
also it is necessary for the service providers to meet the customer’s
requirements and expectations in price and service quality (Melody 2011).
As competition is
increasing among the companies, it is necessary
for them to know about the consumers perception about the price,
promotion, product, service quality and other important attribute that are
playing a vital role to choose the telecommunication service provider. Service
is a form of attitude which is related to satisfaction and also leads to consumer
loyalty (Johnson and Sirikit, 2002) and future purchase. In particular,
consumers prefer service quality when the price and other cost elements are
held constant (Boyer and Hult, 2012). Service quality is essential and
important for a telecommunication service provider company to ensure the
quality service for establishing and maintaining loyal and profitable customer
(Zeithaml, 2013, Leisen and Vance, 2012). Conversely, Johnson and Sirikit
(2002) stated that service delivery systems have the ability to allow managers
of company to identify the real customer feedback and satisfaction on their
telecommunication service since; quality reflects the customer’s expectations
about a product or service. (Love lock 2000)
Generally, service and
product quality is in the mind of the consumers. So it is necessary for the
mobile telecommunication service providers to talk with the consumers for
measuring quality. Since, quality reflects the extent to which a service meets
or exceeds consumer expectations (Wal et al, 2012). Service quality has significant
influence on consumer’s preference for mobile telecommunication.
1.2 Statement Of Problem
There is no doubt
therefore that the deregulation or the separation of the telephone regulator
from the networks/service providers by the establishment of the NCC (Nigeria
communication commission), has revolutionized the telecommunication sector in
Nigeria. The operators have not made the use of mobile telecommunication
pleasurable experience for subscribers, not minding the huge revenue they make
from their rather high tariff.
Olatokun and Nwonne (2012), quoting Henning Thurau et al, (2000) affirmed that
satisfaction of consumers with products and services of a company is considered
the most important factor leading towards competitiveness and success and it is
what makes consumers loyal to one telecommunication service provider or the
other. Proper understanding of the consumer is therefore strategic for the
telecommunication industry. Evaluating the perception of a mobile user in a
highly competitive telecommunication market is very crucial (Olatokun and
Nwonne, 2012).
Thus far, most of the
studies conducted on consumer preference for mobile telecommunication
attributes are outside the shores of Nigeria. Other countries like London,
Canada, Turkey, and other developed economies have various external and
internal factors that might affect their preference for mobile
telecommunication attributes which might not be obtainable in Nigeria.
Therefore, the preference pattern of this country cannot be the same with Abia.
This is a gap, which if bridged, should assist the firms in their marketing
strategy implementation.
1.3 Objectives Of
the Study
The broad objective of
this study is to carryout an analysis of consumer’s preference for mobile
telecommunication attributes in Abia state. The specific objectives are:
1. To identify the relationship
between network attributes and network patronage.
2. To identify the factor
that influence consumer’s preference for network patronage.
3. To examine the effect of
tariff (call rate) for network patronage
1.4 Research Questions
1. what is the
relationship between network attribute ad network patronage
2. What factors influences
the preference of a network patronage?
3. What are the effects of
tariff (call rate) on consumer’s preference for network patronage?
1.6
Statement Of Hypothesis
Ho1: network attributes/
factor does not influence consumer preference for a network
Ho2: There is no significant relationship
between network attribute/ and network patronage
Ho3: There is no
significant relationship between call tariff and consumers preference for
network patronage
1.6 Significance Of
The Study
This analysis seeks to
provide solution to the numerous challenges facing Nigeria mobile
telecommunication industry. Mobile telecommunication subscribers are assets and
their value increases and decline in relation to the service rendered by
marketing institution or service providers. This view expresses the unique
motivation and importance for this study.
Customer patronage is key to
the survival of any organization. The increasing competition being witness in
the mobile telecommunication industry and cost of switching from one service
provider to another makes this study a significant one.
Furthermore, owing to the
objective of this study, it will be beneficial to academia, consumers, service
providers, government and market regulators.
1.7 Scope Of The Study
The subject scope is in the area of consumer
behavior, the geographical scope is MOUAU, the coverage scope is subscribers of
telecommunication services (MTN, GLO, AIRTEL, and ETISALAT)
1.8 Definition Of Terms
Consumer: This can be defined as an individual who buys products or
services for personal use and not for manufacture or resale.
Consumer’s preference: This is defined as the subjective
(individual) tastes, as measured by utility, of various bundle of goods.
Perceived Quality: These can be defined as the
consumers judgment of the products overall excellence or superiority.
Product/Service Attributes: In this content, it will be
described as the actual cores. Product service offer after which subsequently
determines product acceptance i.e. defining the benefit that the product will
offer.
Customer’s Satisfaction: is defined as the level of fulfillment
which denotes positive effective and evaluates preference of an identical brand
or product.
Patronage: It’s the support, encouragement, privilege, or financial aid
that an organization or individual bestows to another.
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