Download Factors that Influence the Patronage of Mobile Phone Service Providers [MBA Thesis] Online Book
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Synopsis
The purpose of the study was to establish the factors that influence the patronage of mobile phone service providers, with three specific objectives that guided the study as follows: To determine whether tariffs charged influences the patronage of mobile service providers by customers, to determine the extent to which the network coverage of the service provider influences the patronage of mobile service provider by customers and to determine the extent to which personal friends influence the patronage of mobile service provider by customers. The research adopted descriptive research design. The population of interest consisted of individuals within Nairobi who have subscribed to different mobile service providers which included Safaricom, Airtel, Orange Telkom and yuMobile. The population of interest was 30.54 million mobile subscribers as of June 2013. The sample of study obtained by stratified sampling technique which entailed dividing the population of study on the basis of mobile service providers, namely: Safaricom, Airtel, yuMobile and Orange. With a population of 30.54 million at 95% confidence level and a 5% (+5/ -5) margin of error, the sample size was 400 subscribers. This sample size was sufficient and representative of the entire population. Survey method was used to collect the data with personal interviews being used to administer the questionnaires to the respondents. Descriptive statistics was used to analyze the data. General information was analyzed using mean, frequencies and percentages. Inferential statistics were also used such as correlation, regression and chi square analysis were used to determine the relationship between independent and dependent variables. The findings established that majority of the respondents were subscribed to Safaricom (36%) and this is consistent with the CCK?s Quarterly Statistics report which shows Safaricom as the leading mobile service provider, in terms of subscribers. Most respondents did not receive a SIM card with their first phone purchase, which indicates that the selection of a mobile service provider was not influenced by a mobile service provider?s device bundle offer but on other factors such as network (49%), recommendations from friends and family (34%) and affordable calling rates (24%). This indicates that tariffs charged were a least influence on the patronage of mobile service providers. Network coverage at home or in the office was also very important (61%) in selecting a service provider, as well as the ability to connect to the network at any time. This is particularly for those respondents who were interested with internet access as well as accessing emails. The ability to easily access the customer care centre was the most important service feature of a mobile service provider (mean=2.73). Ease of use of mobile money service was also revealed as a very important service factor (49%) and as it is linked to network coverage (38% of Safaricom and 33% of Airtel subscribers), it further reinforces the significance of network coverage. The findings demonstrate that family members and/or friends played a critical role in one selecting a service provider (32%). The findings show that if friends and/or families move to another network (35%), respondents would also follow suit, thus demonstrating the strong influence of the family and friend connection. The findings established that respondents would get a second line with another mobile service provider as a result of being referred by friends and family members (38% of Safaricom subscribers and 33% of Airtel subscribers would select a mobile phone service provider if all their friends and family were on the same network), followed by mobile money services (49% considered mobile money transfer with 25% and 21% from Airtel and Safaricom, respectively). This demonstrates the importance of being able to easily connect with family and friends and the significance of mobile money services in our lives today. The study concludes that price and value are the cornerstones of every consumer purchase transaction of the mobile phone service. Reliability is a relevant factor of service patronage in regards to network clarity. The social influences has been regarded a critical component in the selection of mobile phone service provider. The study recommends that price of the mobile service provider should represent the value of the service transactions. Mobile network should be reliable in terms of providing network clarity (clearness of calls) to increase customer patronage. Mobile service providers should regard social influence as an important component on increasing service patronage.
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