EFFECT OF ADVERTISING ON THE SELECTION OF GSM SERVICE PROVIDER IN ABIA STATE, NIGERIA

 ABSTRACT

This study analyzed the effects of socio-economic characteristics of advertising on the selection of GSM service provider in Abia State, Nigeria. The population of the study will adopt a purpose sampling techniques in the course of study. The study will focus on the major sub-urban areas of the Local Government Area (L.G.A) namely: Umukabia, Afugiri, Ndume and Isieke. However, 30 households will be selected from each of the four (4) areas. This will give us 120 respondents selected for the study. The instrument used to collect relevant data was a structured questionnaire. Descriptive statistics was used to analyze data on the first three research questions while correlation coefficient model was used for the third. It was found that age, education, income and gender play critical role in the effect of socio-economic of advertising on the selection of GSM service provider. It was recommended that an attractive means of advertisement should be stepped up to influence consumers in other to enable them make a better choice of GSM service.

TABLE OF CONTENTS

Title Page i

Declaration ii

Certification iii

Dedication iv

Acknowledgement v

Abstract vi

Table Contents        vii-ix

CHAPTER ONE

1.0 Introduction          1

1.1 Background Information 1

1.2 Problem Statement          4

1.3 Research Question 5

1.4 Objective of the Study          6

1.5 Research Hypothesis 6

1.6 Significance of the Study 6

CHAPTER TWO

2.0 Review of Related Literature  8

2.1 Creating GSM Service Coverage in Nigeria           8

2.2 GSM Operators Face Regulatory Crack Down on Advertising

in Abia State, Nigeria         10

2.3 Quality of Service Profile of the Nigeria GSM Network              11

2.3.1 The Impact on Advertising GSM Service in Nigeria         13

2.3.2 The Impact on Advertising GSM Service Social Network in

Abia State, Nigeria         14

2.4.1 The Benefits of Advertising/Promoting GSM Service Provider

in Abia State Nigeria 14

2.5 Quality of Service Analysis of GSM Telephone System in Nigeria 15

2.6 Stakeholder’s Perceptions of the Impact of a Global System

for Mobile Communication on Nigeria’s Rural Economy 19

2.7 Determinant of Customer Loyalty in Nigerians GSM Market 21

CHAPTER THREE

3.0 Research Methodology 24

3.1 Area of Study 24

3.2 Selection of Respondents 25

3.3 Method of Data Collection 25

3.4 Data Analysis 25

3.5 Model Specification 26

4.0 Results and Discussions 27

4.1 Socio-Economic Characteristics of the Respondents 27

4.2 The Relationship Between Advertising Media and Monthly

Expenditure on Recharge Cards 28

4.3 The Effect of Advertising Media on the Selection of GSM

Service Provider in the Study Area 28

4.4 Most Media Attraction in the Study 31

CHAPTER FIVE

5.0 Summary, Conclusion and Recommendation 33

5.1 Summary 33

5.2 Conclusion and Recommendation 34

References 35

CHAPTER ONE

1.0 INTRODUCTION

1.1 Background Information

From time past, business all over the world has faced a great difficulty in getting their products acceptable or sold in the market. Until recently, producers has always found it difficult to penetrate freely into the market in such a way that prospective buyers are convinced to buy their products and stay loyal to the company’s products. However, emergence of marketing has paced the way of success for producers and marketing strategies have been used over the years (Robert, 2012).

Nigeria joined the world’s digital network In January 2001 with the licensing of private telecommunications operators by the regulatory body, Nigeria communication Commission (NCC) established in 1992. There are four major global system for Mobile Communication (GSM) service provider licensed in Nigeria. The Providers are MTN Nigeria, Econet Wireless Limited or V Mobile (now Airtel), Nitel (now Mtel) and Globacom. Since 2002 when the last license was issued to Globacom by the NCC in Nigeria, several other services providers (Starcom, O-net, Multilink, Etisalat, Vodafone, Zoom etc) have emerged but have limited coverage.

ICT has collapsed barriers and promoted fast communication and interaction across boundaries. The need to meet life’s basic challenges and responsibilities has informed the invention and the use of information technology (Ademodi and Adepoju, 2009). Libraries are deeply interested in channel for the transmission of information, such telephones and telephone lines, cellular networks, cable television, and the internet. Academic libraries are challenged in satisfying their customer’s needs since their target market (researchers, lecturers, undergraduates and post graduate students) is demanding and dynamic. The internet and World Wide Web (www) have made it possible for university teachers, students etc to locate what they need without going to the library. From a marketing communication perspective, the challenge to most libraries is to attract users to the library and to retain them. Ekpenyong (2003) assert that if librarians wish to remain relevant, they must focus on the information/user relationship.

In Nigeria, telecommunication sector is highly competitive and telecom operators attempt to appeal and win customers through various sales promotion strategies in other to influence their users. Nigeria telecommunication industry is one of the largest in Africa with over seventy million GSM users and still growing with one of the highest fixed line revenue and cumulative revenue of US $14 billion as at December, 2009 (NCC, 2010). Dominant players like MTN, Glo, Etisalat, Airtel among others have been visible in the past committing substantial amount of money to employment of various laudable marketing strategies. Others have been even redefined their various promotions in order to reach the less privileged and rural members of the society who are much more in population (National Census, 2006).

GSM service providers uses advert to influence customers and potential customers to pick up one as it’s network. A good example is the MTN sunshine TV advert by Dayojong on May 01, 2005, MTN song start commercial advert Ft Saka and Don Jazzy, the advert when it first came to Nigeria. “Mama na boy” (i.e. mummy it is a baby boy) in this advert, it discourse to aimed at telling the audience that wherever they are, MTN would grant them the capacity to exchange vital information with one another. These advertisements can influence a potential customer to pick up MTN as its own choice of network.

Currently, GSM services realized that retaining existing customers is as important as acquiring new customers (Coyles and Gokey, 2005). For instance, Globacom for sometimes have served the market with mass advertising media and mass distribution of product in other to retain their existing customers. Globacom Television Advert. “Amebo” (i.e a gossiper) is one of many television and radio advertisement sponsored by Globacom which influence the users of Globacom network to stay on the network. The intended goal of the advert is to persuade people who have not subscribed already to the network to do so. The advert aims at informing them of Globacom’s new generosity, thus, encouraging them to stay with the network.

Airtel uses the billboard to influence potential customers and to convince customers that life is simple and the company wants to make it’s lively still. This is evidence in the picture on the billboard. People from the various ethnic groups in Nigeria look quite happy, meaning that life is so much better when the society is united. It create an emotional impact on the potential customers that those who selected Red are aggressive, impulsive and they always strive fore success. With these Airtel billboard Advert, it influence a potential customers to pick up Airtel as its network. Etisalat on the other hand are ambassadors but made only a comedy pout of Saka to influence existing users and potential customers to choose and stay on to the network. With the help of these advertisements from different GSM service providers will influence customers/users to pick up one service provider as its network.

1.2 Problem Statement

The Advertisement of service packages for potential customers in the GSM industry goes to a large extent to influence the perception of networks in the GSM industry. This study is therefore to be carried out to examine the effect of advertising on the selection of GSM service providers in Abia State, Nigeria. Empirical has documented that there are some constraints on the use of advertising to influence subscriber’s perception of service providers packages. On the other hand, the patronage of potential customers due to the perception of the network of the service provider affects the evaluation of the long term impact of the effect of advertising on the subscribers. Anyanwu (2003) assert that the cost of advertising, the media choice and the unpredictability of the customers perception and patronage are some of the problems facing the effective designing of advertising messages to influence customers perception of service of a company, using GSM service providers as example. This is because of limited resources which the marketing operations of the company are competing for.

Daramola (1997) in his own observation assert that the dynamic nature of the customers patronage pattern is not usually easy to be Deomira. Nevertheless, customers and potential customers are faced with the problem of not finding GSM service reliable after it has been convinced and influence by the users of the service as a suitable network when it is advertised and for seven years after introduction of GSM. Mass communication theory and practice, Akure. In Nigeria generally and in Abia State in particular, problems associated with usage and effects of GSM is still present. Users  are still faced with challenged of how to maximize the advantages brought by the new technology, manage high tariffs, cope with poor service, face challenges of theft, mobile lies, scammers and host of others.

1.3 Research Question

i. What are the socio-economic characteristics of the respondent in the study area?

ii. Does advertising service as effective tool for marketing of Global System for Mobile (GSM)?

iii. What are the effects of advertising on the selection of GSM service provider in the study area?

iv. What is the most preferred media by consumers of GSM service?

1.4 Objective of the Study

The broad objective of the study is to examine the effect of advertising on the selection of GSM service provider by customers in Abia State, Nigeria. The specific objectives are to:

(i) describe the socio-economic characteristics of the respondent in the study area.

(ii) estimate the relationship between the medium and monthly expenditure on recharge cards.

 (iii) estimate the effect of advertisement on the selection of GSM service [provider in the study are and

(iv) examine the media that attracts the respondent most.

1.5 Research Hypothesis

H0₁: Socio-economic characteristics has no significant effect on the responded of television advert in the study area.

H0₂: Advertisement has no significant effect on the selection of GSM service provider in the study area.

1.6 Significance of the Study

The finding of this study will be of importance to advertisers on the need to improve sales through the use of advertisement techniques. It is anticipated that results from this study will help to evaluate and identify better ways of making GSM service advertising more effective. At the end of this research, the public should be able to identify good advertisement from one that is aim at deceiving them. Based on the findings of this study, the customers will be recommended of best network to go for and also consider television and billboard advert as the media that will be most use to attract respondent.

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