ASSESSING CONSUMER PREFERENCE PATTERN IN THE PATRONAGE OF MOBILE TELECOMMUNICATION SERVICE PROVIDER IN UMUAHIA, ABIA STATE.

 ABSTRACT

A field Study was conducted to assess consumer preference pattern in the patronage of mobile telecommunication service provider in Umuahia,Abia state. The study sought to examine the following:  primacy of network effect in consumer selection process of which service provider to patronize, the effect of customer’s demographic factors in the selection process of service provider to patronize, the quality of service delivery in consumer selection process of service provider to patronize. Questionnaire was used to collect data and finally 60 respondents were found useful from 75 questionnaire distributed. This gave as a return rate of 80%.Descriptive statistics such as frequency distribution, percentage and means were used to analyze the data. Relationship between primacy of Network, demographics, quality of service and consumer decision of service provider to patronize were determined by Pearson product moment correlation (PPMC). Results showed that there are a positive and statistically significant relationship between. Network primacy and decision of the consumers for which service provider to patronize. Result also showed that, there is significant relationship between the consumer age and price of the service provided. Furtherstill, service quality has a significant relationship with the age of the respondents signifcant relationships are also found in the following demographic variable; occupation monthly income with network attributes. Finally, telecommunication service provider should focus more attention on providing packages that would benefit consumers that have stayed on their network for a considerable length of time rather than focus   attention on attracting new consumers and not managing them effectively.

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

Topical issues in recent studies (Asen, Eke,  and Kalejaye 2011; Batra et al 2001) have shown that  consumers of the new millennium with, a greater  awareness of improved technology and high social responsibility are willing to spend their resource  in ways that are remarkably different  from what was obtainable  in the past. The works of (Batra et al 2000) in particular, identified consumers as personalities whose behaviour is governed by different and varied influences such as society beliefs, attitude, perception and expectation which form their taste, choice and product preference.

Kotler et al, (2001) in their view opined that the steady inflow of new product into the European market between 1999 and 2001 has made European consumers to become more exposed to many products.  Much more than they could comprehend. Prices and advertising campaign from many supplies have also contributed in making markets to increase in their turbulence and competitiveness. Leading and product convergence, clutter, poor product differentiation and fierce competition (Belch & Belch, 2004). This phenomenon has resulted into the emergence of a society of highly sophisticated customers with adequate knowledge of product price and quality, thereby increasing their chances of switching between brands.

Invariably, producers and service provider earnestly sought preference for their market offerings. Preference is formed when a customer is bonded to a company through the establishment of a mutual benefit. Preference can also be seen as an individual altitude towards a set of objects. Tropically reflected in decision making process. (Heliman, Bowman, Wright, 2000). Consumer preference explains how a consumer ranks collection of goods and services by the amount of satisfaction derived.

However, psychological research have it that, the attributes that determines  consumers preference do not only reside in the product itself, but   also in the social setting in which the  product is used. The preferences of a given product may partly depend on personality using the product.  (Janssen and Jager 2001). Bite/Swann, 2006; Karacuka, Calif and Haucap, 2012: Maicas and Sese 2011) suggested that consumers preference are mostly affected by the telecommunication service provider in which their families and friends patronize. Patronage is a reward that the customer bestows on the firm in terms of buying his products and services.

The information technology market is highly competitive. It comprises of various sub-markets such as computers, mobile telecommunication and digital cameras: The mobile telecommunication market being a sub-market of the information technology (IT) industry is likely the most competitive. Nigeria telecommunication market is made up of an independent regulatory body known as National communication commission (NCC) and mobile telecommunication players both in the General system mobile (GSM) category which comprise of operators such as : MTN, GLO, Etisalat and Airtel as well as code Division multiple Access (COMA) category which comprises of Starcomms, Visafone and zoom amongst others. The introduction of GSM phone in 1999 ushered in a brand new wave of technology and customer sophistication in terms of price and improved standard of living. The Nigeria telecommunication industry is highly competitive with both large and small telecommunication service providers varying for the patronage of the consuming public. However, the market is unevenly shared among these players. A quarterly report by (NCC, 2014) shows that MTN have 46% of the market, GLO occupied 23%. Airtel and Elisalat have 21% and 13% market share of the industry respectively. Etisalat Nigeria was awarded the fastest growing network with more than ten million subscribers in 2010 (Pyramid Research, 2010).

1.2 Statement of the Problem.         

 Mobile telecommunication sector continue to offer unpredicted opportunities for economic growth with the increased level of mobile phone subscription, it have led to improvement to education, gender, and equally and political participation.  Mobile communication significantly helps to maintain physical and psychological health. It also influence the economy, society and people private life’s, increase in consumer sophistication service quality, cost and choices and availability of alternatives.  

Consumer preference pattern in mobile telecommunication have received considerable attention in marketing literature with few result. Reasons being that the rapid proliferation of mobile telephone along with technological revolution has increased a whole new reformation for the industries in Nigeria. This has thrown the industries into a competitive square, attracting rivalry amongst GSM service provider and placing a burden of preference among subscribers.

The frequency with which consumer freely enter and leave one GSM service provider to another is quite worrisome, for the industry players. These have made attracting and retaining loyal customers very difficult. Even at that , it have be observed that  so far, there are few studies investigating Nigeria attitude towards the telecommunication industries and the factor determining their preference and satisfaction in general.   

Thus, identify the factors that influence or likely to predict consumer preference with in the telecommunication industries which is the subject  matter in this study.

The study will therefore seek to find out the following

i.  What are the characteristics of GSM subscribers in the study

ii. What are the major considerations in choosing a GSM service provider in the study area.

At present, empirical findings abound to justify the point that specific factors such as primacy of network effect(Okpara and Ibok, 2010) socialization effect (Janssen and Jager 2001: Anderson, Kalloggs and   Sallee 2013; Bandura, 1986: Wilt 1999) quality of service delivery  (Fachman, Haque and Ahmed, 2011; Maicas and Sese, 2011) customer satisfaction (Nimako, Donkor and Adu-Bobbey, 2010 Martensen, 1985) and decision making process (Takemaral , 1999). The empirical findings are of the opinion that preference learning can be attributed to these factors, perhaps, amongst the telecommunication consuming public in Umuahia, which is the study area.

1.3  Objective of the study

The  general  objective of the study is to examine how consumer decides on which mobile telecommunication service provider to patronize . However, the specific objective will  included to;

i. examine primary of network effect, if it is one of the determinant  to consumer’s patronage

ii. examine  the social effect in the customers is selection process of which service provider to patronize

iii. examine the quality of service delivery, if  it is one of the determinants  to customers  patronize.

1.4 Research Question

i. How does primacy of network affect consumer  decision of which service  provider to patronize

ii. How does social factors affect consumers decision of which service provider to patronize?

iii. How does quality of service delivery affect consumers decision of which service provider to patronize?

1.5 Research Hypothesis

Ho₁:  There is  no significant relationship between primacy

of network  effect and consumer’s  decision for which service to patronize .

Ho₂: There is no significant relationship between social

effect and consumer decision for which service provider to patronize.

Ho₃: The quality of service delivery is not a major determinant of  consumer’s decision for which service provider to patronize

1.6  Significance of the study

This study  will be of great importance to the stakeholders, which includes business organisations of telecommunication service in Umuahia. It is also anticipated that this study would identify flows and impediments that are currently present in the marketing of telecommunication service in Umuahia, and as such would also assist business organisation that are involved in services marketing  as the study of preference pattern would provide them a  yardstick for  forecasting the preference pattern of their market offerings.

This study would also be of immersed benefit to the academic community, most marketing scholars agree that service marketing is quite different and challenging than goods marketing. Therefore, the provision of literature in this regard would go a long a long way to benefit the academic and the practices of marketing. Since only test conducted outside the shove of Nigeria are currently available. The government is also anticipated would benefit from this work, it would serve as a working paper for further improvement of the performance of the regulatory system that control the telecommunication industries in Nigeria.

However, subscribes enjoys the desired satisfaction needed, the public will also benefit from this study, in making the right choice of service.

1.7 Scope of the study

This study scope is the consumer preference pattern in the patronage of telecommunication service in Umuahia metropolis. Otherwise known as GSM operators, these operators include MTN, GLO, Elisalat and Airtel, the location of the study is Umuahia metropolis, Umuahia is the State of Abia State and it have must of the operators, branch offices as well as a large population of people.

1.8 Limitation of the study

 In the course of this study, the following constraints were encountered  .

i. Financial constraint

ii. Time constraint

iii. Respondents behaviour constraint

iv. Material constraint

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