ABSTRACT
The main thrust of this study was to examine the effect of service brand communications on consumer responses in the telecommunications industry in the South-South Geopolitical Zone of Nigeria. The survey research method was adopted for the study. A sample size of 400 was determined for the study but the usable sample was 355 respondents drawn from the three senatorial districts of Akwa Ibom, Rivers and Delta states. These respondents were selected using the cap and draw method. Data were analysed using descriptive and inferential statistics. Test of hypotheses using multiple regressions and ANOVA revealed that controlled communications (advertising, sales promotion and personal selling), have significant effect on customer preference for GSM brands; consumer brand attitude; and brand re-use intention of consumers of telecommunications services in the South-South Geopolitical Zone of Nigeria; Uncontrolled communications (word of mouth and publicity), significantly affect customer preference for GSM brands; brand attitude; and consumer brand re-use intention. Also, brand names (MTN, Globacom, Airtel and 9Mobile), significantly affect customer preference for GSM brands; consumer brand attitude and brand re-use intention. No significant effect was found with word of mouth used singly on brand re-use intention of consumers. Airtel and 9Mobile tested separately on consumer preference showed no significant effect. Globacom and Airtel as brand names tested on consumer brand attitude showed positive but insignificant influence while 9Mobile showed negative and insignificant influence. It was concluded that service brand communications significantly affect consumer responses in the telecommunications industry in the South-South Geographical Zone of Nigeria. The recommendations were that, telecommunications firms should continuously pay careful attention to their advertising, sales promotion and personal selling activities to strengthen their communications to their subscribers to enhance positive responses. They should also endeavour to reinforce positive word of mouth and publicity to enhance positive consumer responses. Telecommunications companies need to strengthen their brands through concrete and effective communications as strong brands sell themselves.
TABLE OF CONTENTS
Title page i
Declaration ii
Certification iii
Dedication iv
Acknowledgement v
Table of Contents vi
List of Tables ix
List of Figures xi
Abstract xii
CHAPTER 1: INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of the Problem 3
1.3. Objectives of the Study 4
1.4 Research Questions 5
1.5 Research Hypotheses 6
1.6 Significance of the Study 7
1.7 Scope of the Study 9
1.8 Limitations of the Study 9
1.9 Definition of Terms 10
CHAPTER 2: REVIEW OF RELATED LITERATURE
2.1 Review of Conceptual Literature 12
2.1.1 Service brand communication 13
2.1.1.1 Controlled communication 17
2.1.1.2 Uncontrolled communication 29
2.1.1.3 Brand name 34
2.1.2 Consumer responses 42
2.1.2.1 Customer preference 44
2.1.2.2 Brand attitude 46
2.1.2.3 Brand re-use intentions 46
2.2 Theoretical Framework 48
2.2.1 Consumer-processing model (CPM) 48
2.2.2 The hedonic experiential perspective (HEM) 49
2.2.3 The service branding model 50
2.3 Review of Empirical Studies 51
2.4 Summary of and Gap in Literature 58
CHAPTER 3: METHODOLOGY
3.1 Research Design 59
3.2 Area of the Study 59
3.3 Population of the Study 61
3.4 Determination of Sample Size 61
3.5 Sampling Technique 62
3.6 Method of Data Collection/Instrumentation 63
3.7 Validity of the Instrument 64
3.8 Reliability of the Instrument 65
3.9 Method of Data Analysis 65
3.10 Model Specification 69
CHAPTER 4: RESULTS AND DISCUSSIONS
4.1 Collation of Data 74
4.2 Descriptive Analysis of Questionnaire Data 75
4.2.1 Demographic profile of respondents 75
4.2.2 Descriptive analysis of responses from respondents 83
4.3 Analysis and Test of Hypotheses 92
4.3.1 Test of hypothesis 1 91
4.3.2 Test of hypothesis 2 95
4.3.3 Test of hypothesis 3 98
4.3.4 Test of hypothesis 4 101
4.3.5 Test of hypothesis 5 103
4.3.6 Test of hypothesis 6 105
4.3.7 Test of hypothesis 7 108
4.3.8 Test of hypothesis 8 110
4.3.9 Test of hypothesis 9 114
4.4 Discussion of Results 117
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings 124
5.2 Conclusion 125
5.3 Recommendations 126
5.4 Suggestions for Further Research 127
5.5 Contribution to Knowledge 128
References 129
Appendices 139
LIST OF TABLES
3.1 Capital cities, number of Local Government Areas and population
distribution of the South-South States 60
3.2 Reliability Statistics 64
4.1 Questionnaire administration and response rate per the sampled
states in the South-South Zone 74
4.2 Distribution of respondents according to sex 75
4.3 Distribution of respondents according to age 76
4.4 Distribution of respondents according to highest level of education 77
4.5 Distribution of respondents according to their most preferred used brand 78
4.6 Distribution of respondents according to years of brand experience 79
4.7 Distribution of respondents according to frequency of viewing / reading
advertisement of GSM companies 80
4.8 Distribution of respondents according to frequency of contacts with sales
representatives of GSM companies 81
4.9 Distribution of respondents according to frequency of obtaining free
SIM cards from GSM companies 82
4.10 Controlled Communications (advertising, sales promotion and personal
selling) in the telecommunications industry in the South-South Zone,
Nigeria 83
4.11 Uncontrolled Communication (word-of-mouth and publicity) in the
telecommunications industry in the South-South Zone, Nigeria 85
4.12 Brand Names (MTN, Glo, Airtel and 9Mobile) in the
telecommunications industry in the South-South Zone, Nigeria 87
4.13 Consumer preference for the telecommunications firms in the
South-South Geopolitical Zone of Nigeria 88
4.14 Brand Attitude among customers of the studied telecommunications firms 89
4.15 Brand re-use intention among customers of the studied
telecommunications firms 91
4.16 Model summary of multiple regression analysis of controlled
communications (advertising, sales promotion and personal
selling) on consumer preference 93
4.17 Model summary of multiple regression analysis of controlled
communications (Advertising, sales promotion and personal
selling) on brand attitude 96
4.18 Model summary of multiple regression analysis of controlled
communications (advertising, sales promotion and personal
selling) on brand re-use intention 99
4.19 Model summary of multiple regression analysis of uncontrolled
communications (word of mouth and publicity) on consumer preference 102
4.20 Model summary of multiple regression analysis of uncontrolled
communications (word of mouth and publicity) on brand attitude 104
4.21 Model summary of multiple regression analysis of uncontrolled
communications (word of mouth and publicity) on brand re-use
intention 106
4.22 Model summary of multiple regression analysis of brand names
(MTN, Globacom, Airtel and 9Mobile) on consumer preference in the
telecommunications industry in the South-South Geopolitical Zone of
Nigeria 109
4.23 Model summary of multiple regression analysis of brand names
(MTN, Globacom, Airtel and 9Mobile) on brand attitude 112
4.24 Model summary of multiple regression analysis of brand names (MTN,
Globacom, Airtel and 9Mobile) on brand re-use intention 115
LIST OF FIGURES
2.1 Connection amongst service brand communications and consumer responses 12
3.1 Map of the South-South Geopolitical Zone of Nigeria 61
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
For the past ten years, service marketing has become much popular in marketing literature because most world economies have shifted from being manufacturing-based towards being service-oriented economies. Thus, service marketing has attracted both the public, private, profit and non-profit sectors. An important and impactful area of services captured is the telecommunication industry. Telecommunication firms in Nigeria have witnessed a tremendous level of acceptance and patronage since the inception of mobile and internet service provision in Nigeria in the early 20th century. This is because communication is part of life and a daily need for sustained existence, co-existence, survival and progressive progress.
The emergence of mobile and internet service provision has made communication so easy and convenient no matter one’s location on the surface of the earth. Before this development, it took several days and weeks, based on one’s location, for messages to be sent through the post-office which was a more general form of communication. Land lines, fax, telegram, etc., were not common and thus, a select few in Nigeria could afford to own these technologies. But the onset of GSM changed the landscape of communication.
Global System Mobile is a service. Services are “deeds, acts or performances”. They are “essentially deeds or benefits that are offered by one party to another that are intangible and do not result in the ownership of anything” (Zeithaml and Bitner, 2000). The characteristics of services which include heterogeneity, intangibility, inseparability and perishability pose a difficulty for service providers to readily display, distribute, communicate, stock or inventory services (Zeithaml and Bitner, 2003, Palmer, 2005, Bhandari and Sharma, 2011). To combat these challenges, service marketers must resort to diverse approaches to build strong service brands.
Basically, researchers have contemplated that these attributes distinguish marketing of physical items from marketing of services because, while some similarities may exist for both, the implementation of branding for both products and services differ. For example, how does a marketer relate the advantages of an item that the consumer does not see with his eyes, cannot contact, feel, smell or even genuinely acknowledge the existence of such an item? How can he show an item that has no visible structure that can be assessed? These are issues in service marketing that point out overwhelming dependence on service brand communications so as to create an appreciable mental image of the service in the psyches of customers and woo them into making appropriate responses.
An assortment of strategies can be utilized to accomplish this. For example, the service organization can attempt to create an understanding of what the service is through word of mouth (WOM) communication. The organization can likewise have a go at giving unmistakable signals that can best catch the pith of the service. Another alternative is for the service organization to demonstrate the service in manners and circumstances that the client can best relate to. Others include, making deliverable guarantees, focusing advertising at the workers, guaranteeing standard and practically publicizing and advancing a brand that clients can distinguish (Grace and O’ Cass, 2005). These are strategies that consumers must respond to.
First time consumers can be wooed either out of real liking or as a trial process to acquire a service offer. When expectations of these customers rhyme with service performance, the result is satisfaction, which could make the consumer buy again or form preference for the particular service in form of loyalty. This presents part of the means customers respond to services offer.
Equally, customers can demonstrate different kinds of approaches to the brand. These approaches range from buying products and forming confident brand attitudes to being loyal to a particular brand. The response of the buyers could also be reflected in their intention to re-use the service product when they have become loyal to a particular brand. Thus, these responses which have a reflection on company’s sales vis a vis their revenue and profit levels, provide service providers concrete evidence for measuring the effectiveness of brand communications so as to attain the goals of communication and ultimately the corporate goals of the organization.
1.2 STATEMENT OF THE PROBLEM
The increasing tilt towards service marketing as the driving engine of economies has brought about more researches on service communications and consumer patronage. Previous researches done on consumer responses have stressed the association between communication tools in form of promotions and advertising, on consumer responses. For instance, researchers have established a relationship between consumer response and gift promotions when there is high brand equity and a great fit between the stimulated product and the gift (Montaner, Chenatony and Buil, 2011). Also, relationships have been established between consumer response and corporate environmental advertising especially where there existed favourable feelings about the advertiser’s environmental concerns (Davis, 1994). Where consumers felt positive about corporate environmental concerns, they were more significantly likely to react confidently to advertising, the advertised message, the promoter and the advertiser’s products.
Other researchers have related consumer responses to service-brand communications in the banking sector in many countries and cities of the universe (Vazifehdust and Norouzi, 2011). But to date, researches in this aspect with specific orientation to telecommunications businesses in Nigeria, nonetheless the South-South region, are scanty. Based on this premise, this study was undertaken in order to fill the knowledge and literature gap by investigating the effect of service brand communications on consumer responses in telecommunications industry in the South-South Geopolitical Region of Nigeria.
1.3 OBJECTIVES OF THE STUDY
The study examined the effect of service brand communications on consumer responses in the telecommunications industry in the South-South Zone, Nigeria. Specifically, the study was aimed at:
1. determining the effect of controlled communications (advertising, sales promotion and personal selling) on customer preference for GSM brands in the telecommunication industry in the South-South Zone, Nigeria.
2. ascertaining the effect of controlled communications (advertising, sales promotion and personal selling) on brand attitude in the telecommunication industry in the South-South Zone, Nigeria.
3. establishing the effect of controlled communications (advertising, sales promotion and personal selling) on GSM brand re-use intention in the telecommunications industry in the South-South Zone, Nigeria.
4. determining the effect of uncontrolled communications (word-of-mouth and publicity) on customer preference for GSM brands in the telecommunications industry in the South-South Zone, Nigeria.,
5. ascertaining the effect of uncontrolled communications (word-of-mouth and publicity) on brand attitude in the telecommunications industry in the South-South Zone, Nigeria
6. establishing the effect of uncontrolled communications (word-of-mouth and publicity) on GSM brand re-use intention in the telecommunications industry in the South-South Zone, Nigeria.
7. determining the effect of brand names (MTN, Globacom, Airtel and 9Mobile) on customer preference for GSM brands in the telecommunications industry in the South-South Zone, Nigeria.
8. ascertaining the effect of brand names (MTN, Globacom, Airtel and 9Mobile) on brand attitude in the telecommunications industry in the South-South Zone, Nigeria
9. establishing the effect of brand names (MTN, Globacom, Airtel and 9Mobile) on GSM brand re-use intention in the telecommunications industry in the South-South Zone, Nigeria.
1.4 RESEARCH QUESTIONS
The study specifically sought answers to the following questions;
1. To what extent do controlled communications (advertising, sales promotion and personal selling) affect customer preference for GSM brands in the telecommunications industry in the South-South Zone of Nigeria?
2. How do controlled communications (advertising, sales promotion and personal selling) affect GSM consumer brand attitude in the telecommunications industry in the South-South Zone of Nigeria?
3. In what way(s) do controlled communications (advertising, sales promotion and personal selling) affect brand re-use intention in the telecommunications industry in the South-South Zone of Nigeria?
4. To what extent do uncontrolled communications (word-of-mouth and publicity) affect customer preference for GSM brands in the telecommunications industry in the South-South Zone of Nigeria?
5. How do uncontrolled communications (word-of-mouth and publicity) affect GSM consumer brand attitude in the telecommunications industry in the South-South Zone of Nigeria?
6. In what way(s) do uncontrolled communications (word-of-mouth and publicity) affect GSM brand re-use intention in the telecommunications industry in the South-South Zone of Nigeria?
7. To what extent do brand names (MTN, Globacom, Airtel and 9Mobile) affect customer preference for GSM brands in the telecommunications industry in the South-South Zone of Nigeria?
8. How do brand names (MTN, Globacom, Airtel and 9Mobile) affect GSM consumer brand attitude in the telecommunications industry in the South-South Zone of Nigeria?
9. How do brand names (MTN, Globacom, Airtel and 9Mobile) affect brand re-use intention in the telecommunication industry in the South-South Zone of Nigeria?
1.5 RESEARCH HYPOTHESES
Nine hypotheses were developed to direct the study:
Ho1 There is no significant influence of controlled communications (advertising, sales promotion and personal selling) on customer preference for GSM brands.
Ho2 Controlled communications (advertising, sales promotion and personal selling) do not significantly affect consumer attitude towards GSM brands.
Ho3 Controlled communications (advertising, sales promotion and personal selling) do not significantly determine consumer brand re-use intention.
Ho4 There is no significant effect of uncontrolled communications (word of mouth and publicity) on customer preference for GSM brands.
Ho5 Uncontrolled communications (word of mouth and publicity) do not significantly affect consumer attitude towards GSM brands.
Ho6 Uncontrolled communications (word of mouth and publicity) do not significantly determine brand re-use intention.
Ho7 There is no significant influence of GSM brand names (MTN, Globacom, Airtel and 9Mobile) on customer preference for GSM brands.
Ho8 GSM brand names (MTN, Globacom, Airtel and 9Mobile) do not significantly affect consumer attitude towards these brands.
Ho9 GSM brand names (MTN, Globacom, Airtel and 9Mobile) do not significantly determine brand re-use intention by consumers.
1.6 SIGNIFICANCE OF THE STUDY
Life thrives on communication. One may think of any progressive society and realize the secret of such progress is effective communication. A comprehension of the different sources that consumers draw information from about their organizations and services will help the managerial staff of MTN Nigeria, Globacom Nigeria, Airtel Nigeria, and 9Mobile in the South-South Zone of Nigeria, to better understand how their brand communications endeavours affect customer preferences, customer attitude towards their brands and customer brand re-use intention. The implication is that management of these companies would be better equipped with practical information to formulate best strategies for improving communication vis-à-vis business practices and thereafter watch the proceeds rolling in. They will also use the findings of this research to resolve communication complications.
It is worth noting that, people talk about organizations and their practices. These ‘talks’ affect organizations positively and negatively. Since these uncontrolled messages have great impacts on organizations, the studied firms and others in the system can devise means of ensuring that they deliver their promises to stimulate good word of mouth and harness such messages to add to the organizations rather than allow them destroy their companies.
Other service providers would draw on the findings of this research to better understand their target markets’ responses to their communication efforts so as to measure the effectiveness or otherwise of their communication strategies. Better communication from companies to target markets results in enhanced patronage and loyalty which ultimately affects the profit margin of companies which will lead to shareholders equity, more employment, structural and economic development and higher standard of living. These benefits will accrue to the society.
Consumer responses come in various ways. Unfortunately, some subscribers may not apprehend the power they wield in their purchase decisions. They may by their actions speak loudly against business practices that are detrimental to their wholesomeness and that of the society. They can learn that their responses actually influence what business people do. This paper will offer such insights, empowering consumers to demand their rights in the marketplace/space and thus ensure better services and better society.
Future researchers will rely on this study as reference points for further studies in other service organizations within & outside the geographical scope of this study.
1.7 SCOPE OF THE STUDY
The scope of this research was restricted to service brand communications such as controlled communications, whereby sales promotion, advertising and personal selling were discussed; uncontrolled communications such as word-of-mouth and publicity; and brand names such as MTN, Globacom, Airtel and 9Mobile. Consumer responses in terms of customer preference, brand attitude and brand re-use intention were concepts discussed.
Geographically, the study was restricted to the South-South Geopolitical Zone of Nigeria with a random selection of three states, Akwa Ibom, Rivers and Delta. South-South was considered appropriate for the study because it was accessible and convenient to the researcher. It also offered a varied geographical latitude than a single state would have done. Therefore, the findings of the study were able to give some insights to how customers in Nigeria in general and South-South in particular respond to communications that exude whether directly or indirectly from GSM companies.
The units of analysis were active voice subscribers of MTN Nigeria, Globacom Nigeria, Airtel Nigeria and 9Mobile hereby addressed interchangeably as subscribers, customers and consumers.
1.8 LIMITATIONS OF THE STUDY
The geographical latitude of the study was too restrained. This limitation was overcome by ensuring that the selected states were thoroughly covered to ensure adequacy. The sample size used for this study may equally have been small. This limitation was overcome by using a statistically significant and standardized formula to determine an appropriate and acceptable sample size. The study was limited by the particular inferential statistic used for hypotheses testing. This limitation was overcome by testing for autocorrelation using the Durbin Watson approach which showed no autocorrelation between/among the tested variables.
This study holds all other elements that may influence subscribers’ responses outside controlled communications, uncontrolled communications and brand names constant.
1.9 DEFINITION OF TERMS
Advertising is subscribers’ perception of information appeals that contain some aesthetic messages about GSM companies in the mass media directed at subscribers’ of GSM companies in the study area.
Brand attitude refers to the overall evaluation of the respective brands by subscribers of MTN, Glo, Airtel and 9Mobile.
Brand names refer to the brands in use among the target customers namely, MTN, Globacom, Airtel and 9Mobile companies as known by subscribers.
Brand re-use intention refers to subscribers’ willingness to use the service of the respective companies again and again.
Consumer responses refers to customer preference, brand attitude and brand re-use intention as regards MTN, Globacom, Airtel and 9Mobile services.
Controlled communications refer to the advertising, sales promotion and personal selling efforts of GSM companies used to stimulate the responses of subscribers.
Customer preference: Subscribers’ attachment to selected GSM brands based on service suppliers’ targeted communication source, unsolicited information and brand name.
Publicity refers to publicity announcement, news information and public service announcement about MTN, Globacom, Airtel and 9Mobile as perceived by subscribers.
Personal selling refers to face to face contacts made by MTN, Globacom, Airtel and 9Mobile companies’ representatives to subscribers to induce positive consumer response.
Sales promotion refers to special offers made by GSM companies to subscribers within specified periods to stimulate positive consumer response.
Service brand communications are the controlled, uncontrolled and brand communications that influence consumers’ responses to GSM brands
Subscribers are registered active voice customers of GSM companies. This term is used simultaneously with customers and consumers.
Uncontrolled communications refer to word of mouth and publicity communication sources that influence GSM companies’ subscribers to respond to these GSM companies.
Word of mouth refers to referrals and good talk about GSM companies from sources other than the organization that influence subscribers’ response to GSM companies.
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(234) 0814 780 1594
Login To Comment