Encouraging Brand Switching in Telecom Industry of Pakistan

Encouraging Brand Switching
in Telecom Industry of Pakistan

2014
By: Kanwal Ghufran
Student ID : 2452-412006
5/5/2014
Report Su!"tted #o: $%& Saeen
Acknowledgements
I would like to thank my supervisor Mr. Wasif Jamil who has given me opportunity to work
under his guidance on this difficult project. I would also like to thanks my senior Mr. Basit
Afzal M !ustomer !are "#!$ for his guidance. Both of them have provided me their support
and vital guidance during the whole work% which ena&led me to complete this challenging
project.
I would also like to dedicate this project to my "arents who have guided me in every field of
life. #heir support was indeed very important for my studies.
2 | ' a ( e
Abstract
#he research has &een conducted in order to e'amine the factors influencing &rand switching in
telecommunication industry of "akistan. And also find out the factors that influence the
consumers in switching the service provider and finding out the likeliness of switching
the service provider. "akistan has more than ()* million users of telecom network
services. +sers switched over their networks increased an average *., million each
month during last year as per convenient of service -uality and afforda&ility of tariff%
therefore customers loyalty leads to long.run profita&ility of an organization% which is a
&ase for retaining the loyal customers. /or this 0
o
and 0
(
is made to check whether there
is association &etween the varia&les. #he type of research used for this study is
descriptive research design% a sample size of 1* is taken from different region of 2arachi
and found that call rates is most influence to change their network and various other
characteristics has found of telecom network users that ultimately will helps mo&ile
users !ompanies.
3esults of research are limited to the telecommunication sector of "akistan only. /uture
researchers can e'pand the scope of the research
) | ' a ( e
Contents
*+,nowled(e!ent%&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 2
-ontent%&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 4
1&0 Introdu+t"on&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 6
1&1 Ba+,(round&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 6
1&2 Rat"onale of Study&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& .
1&) *"!% and /0e+t"1e% of Re%ear+h&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& .
1&4 Re%ear+h 2ue%t"on%&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 10
1&5 S+ope and S"(n"f"+an+e of Re%ear+h&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&10
1&6 Re%ear+h Stru+ture &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 10
2&0 Introdu+t"on&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 12
2&1 Def"n"n( Brand Sw"t+h"n(&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 12
2&2 3a+tor% Related to Brand Sw"t+h"n(&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&1)
2&2&4 #ru%t &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 14
2&2&5 /ther 3a+tor%&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 15
)&0 Introdu+t"on&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 2)
)&1 Def"n"n( Re%ear+h&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 24
)&2 Re%ear+h 'h"lo%ophy&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 24
)&) Re%ear+h *pproa+h&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 25
)&4 Re%ear+h $ethod%&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 25
)&5 Data -olle+t"on #e+hn"6ue%&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 26
)&6 'opulat"on and Sa!ple&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 2.
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)&5 7al"d"ty and Rel"a"l"ty of Re%ear+h&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&)0
)&. Re%ear+h 8th"+%&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& )0
)&10 $ethod of Data *naly%"%&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& )1
)&11 Su!!ary of -hapter&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& )1
4&1 Introdu+t"on&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& )2
4&2 General Infor!at"on&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& )2
4&2&) #ype of #elephon"+ Ser1"+e&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&)4
4&2&4 $o"le Ser1"+e 'ro1"der &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& )4
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4&) 3"nd"n(% of 6ue%t"onna"re&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& )6
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5&1 Introdu+t"on&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 56
5&2 *naly%"% of 3"nd"n(% &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 56
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6&1 Introdu+t"on&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 61
6&2 -on+lu%"on&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 61
6&) Re+o!!endat"on%&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 6)
6&4 3uture Re%ear+h&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 64
Referen+e%&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 64
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*ppend"A&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 40
'art *:&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 41
'art B:&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 44
5 | ' a ( e
!hapter 4ne
Introduction
(.* Introduction
!ustomers have very important place for the companies. Market conditions have &ecome very
competitive and companies are trying to capture share of each other. 5ue to intense competition
in telecommunication industry customers of this industry fre-uently switch over from one &rand
to another. #his research is going to investigate &rand switching phenomenon in perspective of
telecommunication industry. In this particular chapter &ackground of study has &een e'plained.
(.( Background
1.1.1 Defining Brand Switching
!ustomers are very important players of the market. 6uccess of organizations depends on the
satisfaction level of customers. 4riginations look forward for achieving long term success in the
market. $ong.term success can &e achieved if companies go side &y side with all of their
stakeholders. In all stakeholders% customers have most important place 7Ahmed et al.% 8*(*9.
!ustomers have different perceptions% attitudes% and &ehaviors towards different &rands.
!ustomers often switch over from one &rand to the other depending upon various factors.
Brand switching occurs when customers switch their loyalties from one product to the other
one. !ustomers: shift from one product to another product of similar nature is called &rand
switching &ehavior of customers 7arland% 8**89.
1.1.2 Types of Brand switching
6 | ' a ( e
Brand switching can &e of two types i.e. temporary and permanent. If cigarette ;A< is not
availa&le at a shop customer can shift to cigarette ;B<% this is temporary &rand switching. It can
&e long lasting if customers shift to particular &rand permanently. "ermanent &rand switching is
harder to change. Brand switching is &asically a process &y which customers choose to switch
from a product or &rand of routine use to another product or &rand of similar nature.
Brand switching can &e aggressive or defensive. Aggressive &rand switching is that type of
switching in which customers are induced &y advertisement of promotions to &uy a &rand
different from the &rand purchased previously. 4n the other hand defensive &rand switching is a
type of switching in which advertisement of promotions of company induce customers to &uy
again previously purchased &rand. 5efensive &rand switching is a strategy of companies in
order to induce loyalty in customers 7$udi% 8**=9.
1.1.3 Brief View of Factors Inducing Brand Switching
Advertisement plays very important role in &rand switching. It &asically persuades customers to
switch &rands. !ompanies use different tactics in advertisement in order to attract customers of
competitors. Advertisement induces customers to switch their &rands and improve sales of
companies. 4ther firms in the market also advertise and attract customers. In this way total
effect of advertisement can &e offset. /olland 78**>9 argues that advertisement is motivational
factor for &rand switching. It suggests that companies must advertise in order to persuade
competitor:s customers to switch towards their &rands.
A num&er of factors induce switching of &rands in customers. If companies do not meet needs
and wants of customers% customers can switch to competitors: &rands. Market has &ecome very
competitive and all the companies strive for taking market share. In order to &uild market share
companies attract customers &y providing different incentives like low price% high -uality%
discounts or promotions. In today:s competitive market success of companies depends on the
repeat purchase intentions of customers 7Ahmed et al.% 8*(*9. If companies fail to manage
switching &ehavior of customers% their success can &e at jeopardy. !ompetitive prices also play
their part in inducing &rand switching. A num&er of costs are also associated with the switching
&ehavior of customers. !ompanies that have lower switching cost e'hi&it higher rate of &rand
4 | ' a ( e
switching. 6witching cost is &asically the cost associated with switching from one product to
another one.
1.1.4 Brand Switching in Telecounication Industry
Brand switching &ehavior of customers differs in different industries. 6ome industries are
characterized &y high &rand switching rates while others show low rates of &rand switching.
#elecommunication industry is one of the industries which possess high rates of &rand
switching 7?dvardsson% ustafsson and 3oos% 8**=9. #his is mainly due to intense competition
in telecommunication industry. A num&er of companies are operating in telecommunication
industry across the world. !ustomers of mo&ile service provider companies often switch
towards &rands which provide e'tra &enefits to them.
#elecommunication industry is characterized &y high growth. It has &een forecasted that the
num&er of mo&ile su&scri&ers will reach at ) &illons in the ne't five years which was = &illion
&y the end of 8*((. #elecommunication industry has @ A contri&ution in the total 5" of world
7Businesswire% 8*((9. It has &een e'pected that telecommunication industry of "akistan will
grow in the ne't five years. "akistan #elecommunication Authority confirms that the total
num&er of cell phone users in "akistan have crossed the mark of BB million in fiscal year 8*(8
6witching &ehaviour is a consumer &ehaviour where the &ehaviour of the consumers differs
&ased on the satisfactory level of the consumers with the providers or companies. 6witching
&ehaviour can &e enunciated as the process of &eing loyal to one service and switching to
another service% due to dissatisfaction or any other pro&lems. ?ven if a consumer is loyal to a
particular &rand% if the &rand does not satisfy hisCher needs% the consumers switch to a
competitor &rand.
In 8*() the market value of telecommunication sectors will reach at =*.1 &illion. It has &een
forecasted that innovations and technological advancements will penetrate telecommunication
sector in the same period 7MB5% 8*((9.
5ue to intense competition in telecommunication industry customers fre-uently switch from
one service provider to another. It has &ecome very important for service providers to
investigate the switching &ehavior of customers. #he study is focused on telecommunication
industry of "akistan. /ive major players of telecommunication industry of "akistan are
Mo&ilink% +fone% #elenor% Warid D Eong. Major market share of "akistan telecommunication
5 | ' a ( e
industry has &een captured &y these five players. +fone and Mo&ilink are popular &rands of
?verything ?verywhere. #elenor has &een operating worldwide with a huge customer &ase.
(.8 3ationale of 6tudy
!ompetition in telecommunication industry has &een &uilding to a great e'tent. In "akistan a
num&er of telecommunication companies are operating currently and more companies are
invading the industry. In competitive market these companies always seek to take the share of
others in terms of customers. 0eavy advertisements and price war among these companies have
created trou&le to the customer loyalty. !ustomers keep on switching &rands in
telecommunication sector. 4ther than price and advertisement num&ers of factors are
responsi&le for &rand switching &ehavior of customers. 6uccess of companies is identified &y
the repeat purchase intention of customers so companies must understand the factors that make
their customers to switch &rands. !ompanies need to understand the ways that can prevent
&rand switching and enhance &rand loyalty. By analyzing the factors influencing &rand
switching companies can take steps for reducing &rand switching. #he current study is going to
investigate the factors that influence &rand switching in telecommunication industry.
/urthermore% research will also investigate the factors that can prevent &rand switching.
(.@ Aims and 4&jectives of 3esearch
3esearch has &een conducted &y considering a num&er of o&jectives. #he aim of current study is
as followsF
;#o e'amine the factors influencing &rand switching in telecommunication industry<
#he aim of the research has &een e'panded through following o&jectivesF
#o investigate &rand switching &ehavior from literature review
#o e'amine the factors that influence &rand switching in telecommunication industry
#o e'amine the factors that prevent &rand switching in telecommunication industry
#o study the customer preferences of mo&ile service providers in telecommunication
industry of "akistan.
. | ' a ( e
#o propose recommendations to the mo&ile service providers for increasing customer
loyalty
(.= 3esearch Guestions
5eveloping research -uestions is the most critical phase of any research. #he whole research
project is actually &ased on research -uestions 7Horman% 8**B9. 3esearcher needs to develop
precise and clear research -uestions for achieving successful outcome. Guestions developed for
this particular research are as followsF
Which mo&ile connection do you haveI
What kind of service you have
4verall% how would you rate your service providerI
0ow long have you used the service of that companyI
(.) 6cope and 6ignificance of 3esearch
3esearch has &een conducted &y the student of MBA in order to complete her academic course
in effective way. By the completion of this research% she will understand research methodology
and the topic area. #elecommunication industry has &ecoming very competitive day &y day and
customers are &eing e'posed to a num&er of choices. #his research evaluates the factors that
influence customers to switch over other mo&ile service providers. /actors specific to &rand
switching in telecommunication market are evaluated. #his research is significant for the
researcher as well as for the mo&ile service providers. !ompanies can apply recommendations
of this research in order to enhance customer loyalty and to stop customers to switch over other
&rands.
(., Research Structure
#his particular research is composed of si' chapters. ?ach chapter represents its specific
purpose. All the chapters are interconnected with each other so that a flow in research can &e
maintained.
10 | ' a ( e
!hapter "ne
#he first chapter of research is ;Introduction<. #his chapter represents &ackground of
telecommunication industry of "akistan and also overviews the importance of studying &rand
switching. Aims and o&jectives of research are ela&orated in introduction.
!hapter Two
#he second chapter of research is ;$iterature 3eview<. #his chapter represents the core areas of
research topic in detail. #he work of previous researchers related to &rand switching in
telecommunication industry has &een presented in this chapter.
!hapter Three
#hird chapter of research is ;3esearch Methodology<. #his chapter represents the procedure
that how researcher is going to achieve aims and o&jectives of this research. 3esearch design%
approach% and methods of research are illustrated here.
!hapter Four
#he fourth chapter of research represents the data collected through data collection tools. 5ata
has &een represented in the form of percentages% charts and graphs. /indings of the whole
-uestionnaire are represented in systematic way.
!hapter Fi#e
/ifth chapter of research analyses all the findings of the research presented in the previous
chapter. 5etailed discussion on the findings of research has &een conducted in this chapter.
3esearcher has made his own judgment on the findings of the research and also related them to
the theory discussed in the literature review.
!hapter Si$
#his chapter represents conclusion of the study. All the findings and results are given shape of
conclusion. 3esearcher has reviewed all o&jectives and aims of the research in this chapter.
#his chapter represents that to what e'tent researcher has succeeded in achieving aims and
o&jectives of this particular research.
11 | ' a ( e
!hapter #wo
$iterature 3eview
8.* Introduction
!ustomer is the most important player of market. All the efforts of companies are directed
towards customers. !ustomer can either remain loyal with a particular &rand or switch to
another one. #his particular study is going to evaluate the factors influencing customers to
switch &rands. #his chapter presents work of previous researchers regarding &rand switching.
/actors influencing &rand switching have &een critically analyzed in the light of previous
researches on &rand switching.
8.( 5efining Brand 6witching
Brand switching has &een defined &y many researchers in different conte'ts. #ermination of
customer relationship with particular service provider and continuation of relationship with a
new service provider is called &rand switching 7Mouri% 8**)9. !ustomers can decide a&out
ceasing relationship with service providers &ecause of many reasons. 6tewart 7(BB=9 has
defined customer switching &ehavior as defection or e'it of customers from company.
!ustomers can switch &rands either on permanent &asis or on temporary &asis. Boote 7(BB>9
has defined customer switching &ehavior as decision of customers to discontinue purchase
12 | ' a ( e
dealings permanently or temporary. 3ajkumar 78*((9 defines &rand switching when customers
switch their loyalties from one particular &rand to another. #hese definitions suggest that &rand
switching occurs when customers stop purchasing a particular product and start purchasing
another either on temporary &asis or on permanent &asis.
8.8 Factors Related to Brand Switching
2.2.1 Switching !ost
6witching cost is the cost which is to &e &orne &y customers when they switch from one &rand
to another 7rzy&owski% 8**=9. Many researchers have researched effect of switching costs on
&rand switching. $iterature on switching cost is very limited still there are many researchers
who have e'plored influence of switching cost on &rand switching. Burnham% /rels and
Mahajan 78**@9 have defined switching cost as the cost which incurs when customers switch
from one product or service to the other. 6witching cost does not incur immediately at the time
of switching rather it is a procedural cost. #hey also notified that switching cost is not restricted
as economic costs rather there are num&er of other costs related to it. !ustomers may consider
search cost% ac-uiring cost% learning cost% and perceived risk while deciding a&out switching
cost.
6witching cost has &een categorized into three groups &y Burnham% /rels and Mahajan 78**@9.
#hese areF transactional cost% contractual cost and learning cost. #ransactional cost is the cost
which is re-uired &y customers in order to start new relationship with a new service provider
and it also includes the cost re-uired to terminate relationship with e'isting service provider.
$earning cost refers to the cost which is re-uired &y the customers in order to gain e-uivalent
familiarity and ease of using the new product or service. $earning cost is non transfera&le cost
and each time customer switches over a particular product or service% learning cost incurs.
!ontractual cost is the cost which is induced &y the firms directly for panelizing the customers
for switching &rands. #hese costs may include rewards% discounts% repeat purchase and other
circular programs. #hese costs incur when customers promise for &eing loyal or when they
show signs of switching over other &rands.
1) | ' a ( e
/ornell 7(BB89 suggests that switching cost is a source of preventing &rand switching &ehavior
of customer. 6witching cost can make it costly for customers to switch &rands. It has &een
researched &y many researchers that higher switching cost stops &rand switching &ehavior.
!ustomers leverage &enefits and cost &efore taking decision a&out &rand switching. If perceived
&enefits of new product or service are lower than switching cost% customer will likely to remain
with the e'isting &rand 7$ees et al.% 8**19. If service providers aim at convincing competitors:
customers to switch% they have to provide low prices or higher &enefits to them in order to
compensate high switching cost.
$iterature discussed a&out switching cost suggests that switching cist can induce &rand
switching as well as it can also stop &rand switching. !ompanies need to consider this factor
while designing strategies a&out dealing with customer switching. !ustomers can easily switch
from one service provider to the other if switching cost is low and vice versa.
2.2.2 %rice
In all markets including telecommunication market price is the main factor that encourages
&rand switching. 5ong and Won% 78**19 has presented three varia&les related to price which can
affect switching &ehavior of customers. #hese three varia&les areF (9 "ricing structure% 89
"ricing scheme% @9 Additional fee. In telecommunication industry call charges determine the
pricing structure of companies. "rice scheme is &asically the availa&ility of a variety of price
lists. Additional fee is &asically the fee of additional services such as activation charges%
termination charges and charges of value added services. !hange in demand in response to
change in prices is called sensitivity of demand 7/uha% 8**)9. "rice sensitivity has divided
telecommunication segment into three segments. #hese are fi'ed line segment% mo&ile segment
and com&ined segment. /uha 78**)9 has determined relationship &etween changes in price and
demand in telecommunication industry. 0is findings suggested that reduction in price of mo&ile
services attract customers. In other words price changes influence &rand switching in
telecommunication industry.
$ee and Murphy 78**)9 have investigated a num&er of factors that influence customers to
switch mo&ile service providers. #heir findings suggested that price is the most important
factor that persuades customers to change their commitments to other mo&ile service providers.
14 | ' a ( e
6athish 78*((9 also suggest that call rates are the most influencing factor for &rand switching in
telecommunication industry.
3ajkumar 78*((9 suggest that price is not always &rand switching influencer. 'e e$plained that
custoers who are (uality conscious prefer to pay high prices for high (uality. It influences
those custoers who ha#e liited incoe. !opanies use this feature of price and pro#ide
price coparisons to custoers in order to persuade the to try new products.
$iterature review discussed a&out influence of price on &rand switching suggests that price is
major influencer for &rand switching. It is not necessary that price always affects &rand
switching. !ustomers with low income are more influenced &y changes in price to switch
service providers whereas -uality conscious customers are less influenced &y changes in price to
switch &rands.
2.2.3 Ser#ice )uality
6ervice is intangi&le in nature and it is practiced &y the customers simultaneously at the time of
production and consumption. !ontact of customers and service providers delivers service to the
ultimate customers 7ronroos% (BB*9. /ive characteristics have &een identified &y 7ronroos9
(BB* which distinguish services from goods. #hese characteristics are as followsF
6ervices are intangi&le
6ervices cannot &e separated during production% delivery and consumption
6ervices are heterogeneous
6ervices are perisha&le and cannot &e stored
#here is no transfer of ownership while delivering services
#he interaction &etween customers and service providers provide opportunity to the customers
to assess the service -uality. Bitner D 0u&&ert 7(BB=9 define service -uality as the impression
of customers a&out the inferiority or superiority of the service providers and their provided
15 | ' a ( e
services. 6ervice -uality measurement model has &een presented &y "arasuraman et al. 7(B>>9
in which they have identified five dimensions of service -uality. #hese five dimensions areF
#angi&les% relia&ility% assurance% empathy and responsiveness. #hese five dimensions can &e
categorized in two groups. #angi&les refer to the physical facility% materials of personal
communication and e-uipment. #he other four dimensions refer to the human interaction or
involvement during service delivery. #hese five dimensions are ela&orated as followsF
Tangi&ility* physical outlook% facilities% e-uipments and physical appearance of personnel
providing services
+elia&ilityF It refers to the a&ility of service providers to provide promised services accurately
and consistently
+esponsi#enessF It refers to the willingness of service providers to assist customers and promote
services
,ssuranceF It refers to the awareness and politeness of personnel providing services in order to
esta&lish trust
-pathyF It refers to the individual attention of employees on customers
All these dimensions determine the -uality of services provided &y the companies. If companies
provide high -uality services% image of companies can &e enhanced and customer interaction
can also &e increased. It can also lead to e'pansion in customer &ase &ecause positive word of
mouth of satisfied customers attracts new customers. 4n the whole financial performance of
companies is improved if they provide high -uality services 7James% (BB>9.
#wo important factors that determine the direction of customer &ehavior are price and -uality. It
has &een found that there is swapping effect &etween these two factors. !ustomers can sacrifice
low prices for high -uality. Jun and Bin 78**)9 determined that high -uality services are source
of creating customer loyalty. #heir findings also suggest that in telecommunication industry
service -uality is identified &y communication guarantee% value added services and innovations
in telecommunication technology. #hey also found that line clarity% customer services and
coverage area also effect service -uality. All these factors influence customer switching
decision.
16 | ' a ( e
#he a&ove literature discussed a&out service -uality has shown the dimensions that measure the
level of service -uality. "revious researchers have shown that customer decision is influenced
&y service -uality. It can &e deduced that if customers are provided with high service -uality
they can &e retained with the company or in other words switching rate of customers can &e
reduced.
2.2.4 Trust
#rust has &een very important topic studied in various disciplines. It has &een defined &y many
researchers in different perspectives. It is characteristic of human personality and is defined as
the assessment of others a&out the motives and &ehaviors 7!hu% 8**B9. #o develop trust among
individuals e'pectation of trustor and perceptions of trustee are involved. #rust among different
individuals is different depending upon the personality traits and decision making a&ility of
individuals 7!hu% 8**B9.
3elationship is &uild whenever there is trust or distrust among individuals. 6ervice providers
must convey a message to the customers that they can &e trusted. #hey must depict that they can
sacrifice for the satisfaction of needs of customers 7$iang and Wang% 8**>9.
In order to &uild long term relationship among individuals trust has &een the most important
factor. 3esearchers have also suggested that trust is important factor in determining customer
loyalty 7!hu% 8**B9. In order to &uild trust one party must assures the other one that it will come
true at the e'pectations of the other party. 6erkan and 4zer 78**)9 suggest that &uilding trust is
a process in which one party must &e capa&le of fulfilling the e'pectations of other party
regarding cost and &enefits. It is an important factor in affecting commitment of customers to
the company.
Jun and Bin 78**)9 suggest that in order to &uild customer loyalty% trust among parties has &een
the key element. #rust assists customers in making decision a&out purchase and it also gives
customers a sense of confidence on the service providers. Jun and Bin 78**)9 have studied
effect of trust on customer loyalty in perspective of telecommunication industry. #hey found
four elements of trust i.e. e'perience% communication% &rand loyalty and relation contact of
partners. #rust among service providers and customers act like a relationship preserving force.
If customers have trust on service providers% short term alternatives cannot affect the customer
14 | ' a ( e
loyalty. It can &e said that trust has positive relationship with customer loyalty. anesen 7(BB=9
suggest that trust reduces perceived risk and it also reflects credi&ility of companies. 0e
suggests that trust on service providers reduces uncertainty in today:s competitive and uncertain
environment. In other words customers switching &ehavior is affected &y the level of trust on
service providers.
$iterature review discussed a&out trust suggests that customers are less likely to switch &rands
on which they have trust. If service providers assure their customers a&out the fulfillment of
their e'pectations% &rand switching can &e minimized. 4n the other hand if service providers fail
to esta&lish trust &etween customers and themselves% customers are more likely to switch over
competitors: &rands.
2.2.. "ther Factors
A&ove mentioned factors are critical to the customer switching &ehavior. Besides these factors
there are many other factors identified &y other researchers that influence customer switching
&ehavior. !ustomer switching decision is not a static and fi'ed decision rather it is a process
which is descri&ed in terms of three stages i.e. trigger% process and outcome 7Inger and /rimen%
8**>9. "rocess refers to the reasons for switching whereas trigger refers to the factors that
influence customers for &rand switching. It suggests that these are the triggers 7/actors9 which
influence customers to switch over &rands. Brand switching &ehavior of customers is also
affected &y su&scri&er lock in. 6u&scri&er lick in is a kind of &ehavior in which su&scri&ers lock
their customers only to their network. If customers want to change their service providers they
have to change their mo&ile sets. #his function can also &e related to switching cost. 6u&scri&er
lock. in raises switching cost and makes customers to stay with the &rand with which they are
attached 75ong and Won% 8**19. 6erkan et al.% 78**)9 suggests that corporate image effects
decisions of customers regarding loyalty. !orporate image is &asically the physical and
&ehavioral traits of a company such as &usiness category% &usiness name% and assortment of
products and services and idea of communicating -uality of products and services 7Hguyen and
$e&lanc% 8**(9. All these factors are somewhere represented a&ove &ut under corporate image
these are aggregated. It has &een found &y many researchers that corporate image is positively
associated with customer loyalty 7Johnson et al.% 8**(9
15 | ' a ( e
?mployees of companies create a &ridge &etween companies and customers. If employees are
loyal with the company% they aim at delivering &est services to the customers. In this way loyal
employees can &ecome source of creating &rand loyalty and preventing &rand switching 7Jun
and Bin% 8**)9.
If a&ove factors are managed effectively &rand switching can &e avoided and long term relations
can &e esta&lished with customers. ?mployees are the most important component of companies
and they have long lasting effects on performance of companies. !orporate image has also
found to &e influential factor regarding &rand switching. It has &een researched that companies
that have strong corporate image have low customer switching rates. !orporate image is a &road
concept and all the &rands of company fall under corporate &rand. 6o if corporate image is
positive and appealing% customers tend to retain with the company even in case of alternatives
availa&le in the market.
According to "akistan #elecommunication Authority 7"#A9% an increase of 1.8 million
su&scri&ers who switched over their network from other with the facility of Mo&ile Hum&er
"orta&ility 7MH"9.
#hese are the annual cellular su&scri&ers in "akistan according "#A% Insta phone has remains no
longer after 8**> and was ac-uired later &y the Arfeen roup and "akistan #elecommunication
Authority 7"#A9 terminated the license of Insta phone due to the company:s failure to pay
outstanding dues.
Annual !ellular 6u&scri&ers
Mo&ilink +fone Eong Instaphone #elenor Warid #otal
8**@.*= @%8()%B>B >*(%(,* =1*%*8( )@)%1@> )%*88%B*>
8**=.*) 1%=,B%*>) 8%)1B%(*@ B8=%=>, =)=%(=1 >@)%181 )*>%,)) (8%11(%8*@
8**).*, (1%8*)%))) 1%=>1%**) (%*=*%)*@ @@,%,B, @%)1@%,,* =%>,@%(@> @=%)*,%))1
8**,.*1 8,%=,,%=)( (=%*(=%*== (%*8=%),@ @@@%*>( (*%1*(%@@8 (*%,8*%@>, ,@%()B%>)1
8**1.*> @8%*@8%@,@ (>%(**%==* @%B)*%1)> @)(%(@) (>%(8)%(>B ()%=>B%>)> >>%*(B%>(8
1. | ' a ( e
8**>.*B 8B%(@,%>@B 8*%**=%1*1 ,%@>,%)1( @=%*=> 8*%>B@%(8B (1%>>,%1@, B=%@=8%*@*
8**B.(* @8%8*8%)=> (B%)=B%(** ,%1*=%8>> * 8@%1B>%88( (,%B@(%,>1 BB%(>)%>==
8*(*.(( @(%111%==) 8*%(>8%==B 1%8=B%>(@ * 8@%1=@%,>* (1%*>)%@1B (**%*@>%1,,
8*((.(8 @(%1B=%8B8 8*%81)%**8 >%=B1%1BB * 8=%,B8%>(> (1%)(1%=1, (*8%111%@>1
6ource "#A.com.pk
2.2./ Mobile Number Portability
MH" is a system that facilitates mo&ile phone users to switch over their mo&ile phone network
without changing personal num&er and code. #he mo&ile phone users carried out change of
network &ecause of service -uality% afforda&ility of tariffs% choice of &undle packages and value.
added services offered &y different service provider. #he average num&er of su&scri&ers% who
shifted to new network% have &een recorded at ,**%*** in the last (8 months. #he su&scri&ers
can migrate from their e'isting network to another more than one time with a gap of three
months. #he migration is completed within a couple of days &y the operator against minimal
charges
!!" 1st !ountry to Ipleent 01% in South ,sia
"akistan is the first country in 6outh Asia to implement the Mo&ile Hum&er "orta&ility 7MH"9
in March 8**1 within a record time of two years. MH" is regulated under provisions of
;Hum&er "orta&ility 3egulations< and ;"orting "rocess uidelines<. Hormal porting time for
&oth "re."aid and "ost."aid su&scri&ers is =.days after the su&scri&er settles his contractual
o&ligations with concerned donor operator. "akistan Mo&ile Hum&er "orta&ility 5ata&ase
7uarantee9 $imited 7"M59 was esta&lished &y the si' cellular mo&ile operators to act as a
centralized clearinghouse for MH".
!!# 01% !reates !opetition aong %layers
20 | ' a ( e
MH" created competition among the cellular mo&ile operators and forced them to introduce
new packages for the su&scri&ers. Mo&ile phone operators: full.fledge advertisements and
marketing campaigns have &ecome fruitful for them for &roadening of su&scri&ers: &ase. Also%
the operators are now more cautious for improving their services and offering new packages in
order to retain their su&scri&ers. #he su&scri&ers can migrate from their e'isting network to
another with the same code and num&er more than one time with a gap of three months. #he
migration is completed within a couple of days &y the operator against minimal charges.
2.3 Brand Switching and Loyalty
Brand switching is the &ehavior of customers to change their usual products and switch over the
others. $oyalty is &asically the &ehavior of customers to continue purchasing a particular
product or service.
!ustomer loyalty is defined as positive attitude of customers towards repurchasing and
continued commitment to a particular &rand in future 7!hu% 8**B9. $oyal customers are
continued source of revenues for the companies even in the time of financial crisis. $oyal
customers are less e'pected to change their loyalties to competitors: &rands even if there is
decrease in price of competitor:s &rands 7Bowen and 6hoemaker% 8**@9. $oyal customers are
very important assets for the companies so it is very important for them to retain loyal
customers and to stop them to switch over competitor:s &rands. "rofita&ility is driven &y the
customer loyalty 70ayes% 8**>9. $oyal customers are also essential to &e retained &y the
companies &ecause they are source of long term profits for the companies 7#seng% 8**19. If
companies manage to stop their customers to switch over other &rands% purchases of companies
increase and financial growth also improves 70ayes% 8**>9. 6o it can &e said that financial
growth of companies depends on retention of e'isting customers. $oyal customers are source of
increasing &usiness of companies &y purchasing more% paying high prices and presenting
referrals to others 7anesh et al% 8***9. As the telecommunication industry is growing day &y
day so new entrants always try to attract customers in order to enhance their customer &ase. In
such a situation only those customers will retain with the company who are loyal. 3everse of
customer loyalty is customer switching. Mo&ile service providers are focusing on increasing
customer loyalty &y stopping customers to switch over other &rands. 6erkan and 4zer 78**)9
21 | ' a ( e
point out that in telecommunication industry one the customers are ac-uired% it has &een very
important for the companies to maintain long term relations with customers in order to get
competitive advantage. !ompanies need to create ways for attracting new customer as well as
for retaining e'isting customers. It is also important for companies to motivate customers to
recommend their products to others 72einingham et al.% 8**>9.
A&ove discussion suggests that companies need to create ways for stopping their customers not
to switch over the competitor:s &rands. If companies fail to stop their customers for switching
over the competitors: &rands% long tern success of companies will &e at jeopardy. Intense
competition in telecommunication industry has increased the importance of stopping customers
to switch over competitors: &rands.
2.4 Influence of Advertisement on Brand Switching
Advertisement is focused at attracting new customers as well as retaining e'isting customers.
Advertisement plays very important role in persuading non loyal customers to &e loyal with the
company. It also prevents loyal customers to switch over other &rands. It has also &een found
that advertisement persuades loyal customers to spend more on e'isting &rands of company.
Advertisement plays important role to make customers of competitor:s &rands to switch over
the advertised &rands. 4n the other hand its defensive role is to maintain e'isting customers of
company. It can &e said that advertisement plays dou&le role for loyal and non loyal customers
of company. It influences attitudes% preferences% and decision making process and purchase
intensions of customers. Advertisement does not always focus on persuading competitors:
customers to switch over. ?hren&erg 78***9 suggests that main role of advertisement is to
enhance satisfactory feelings in customers regarding the &rand purchased &y the customers. It
means advertisement plays its primary part in retaining customers rather than attracting new
one.
6imon and Arndt (B>*9 also suggest that same thing that advertisement focuses on retaining
e'isting customers. #hey also suggest that customers who are familiar with the &rands are more
affected &y the advertisement. !ustomers who are not familiar with the &rand are less affected
&y advertisement. !ompanies also design advertisements in order to call &ack their previous
customers &y offering them attractive services.
22 | ' a ( e
$iterature regarding role of advertisement on &rand switching suggests that advertisement does
not play active role in &rand switching. Its primary role is to retain e'isting customers of
company. 6econdary role of advertisement is to persuade customers for &rand switching.
2. Summary of Literature Review
Brand switching is a process in which customers tend to end relationship with a particular
company and start relationship with a new one. All industries have e'perience &rand switching
&ut telecommunication industry is more e'posed to it. #here are many factors that influence
&rand switching. 4n one end they persuade customers to switch over other company and on the
other hand they prevent &rand switching. "rice has &een found most influential factor in &rand
switching in telecom sector. Besides price there have &een many factors that enhance &rand
switching like -uality service% coverage area% trust% advertisement% and &rand image. All these
factors have &een critically analyzed in the literature review in the light of work of previous
researchers.
!hapter #hree
3esearch Methodology
@.* Introduction
Methodology of research has &een considered very important for the whole result &ecause it can
actually impact the results of research. #his chapter presents detailed methodology of research
including philosophy% approach% methods% and data collection tools. 3esearcher has justified the
choices in accordance with the aims and o&jectives of research.
2) | ' a ( e
@.( 5efining 3esearch
An organized process of en-uiring a phenomenon or curiosity is called research 7oddard and
Melville% 8**=9. 3esearch is conducted to achieve a num&er of o&jectives. #he primary
o&jective of each research is to enhance the &oundary of knowledge which is done through
answering -uestions% enhancing an e'isting theory or designing a new theory. #here are two
types of research on the &asis of nature i.e. scientific research and social research. 6ocial
research deals with the understanding of attitudes and &ehaviours of people in a society 7"an%
8*((9.
@.2 Research !hiloso"hy
#he &ackground of research is created &y research philosophies. It deals with suppositions%
&eliefs and insights of researchers which are adopted for a particular research. #hese are
&asically choices made &y the researchers in order to achieve aims and o&jectives of research. A
num&er of choices are availa&le to the researcher regarding research philosophies so it is very
important for researcher to justify the adopted research philosophy in accordance with the aims
and o&jectives of research 7Blaikie 78***9.
/or this particular research% researcher has four options of research philosophies. #he first
option for the researcher is realism which &elieves that reality is product of humanizing
different social factors. 3ealists suggest that what is happening in la&oratory is not necessarily a
reality. It researches a phenomenon on the &asis of researcher:s point of view 70atch and
!unliffe% 8**,9.
6econd option availa&le for the researcher is positivism which deals with the development of
research hypothesis on the &asis of e'isting theories of previous researchers. "ositivists rely on
the validity of the previous researchers. 6tatistical tools of analysis are used in order to test the
hypothesis under positivism 76aunders% $ewis and #hornhill% 8**19.
#hird option availa&le to the researcher is interpretivism or socialism which deals with the
evaluation of different social factors from researcher:s viewpoint. 6ocialists are &asically
against positivists in their viewpoint.
24 | ' a ( e
$ast option availa&le to the researcher is phenomenology which deals with the e'periences of
individuals. #hese e'periences result from &eliefs% perceptions and previous knowledge a&out a
particular thing 70usserl% 8**(9.
3esearch under consideration is conducted &y a com&ination of interpretivism and positivism.
#he reason &ehind choosing this philosophy is that interpretivism deals with the attitudes and
e'periences which are critical for &rand switching and positivism deals with the e'isting
theories which are studied to e'plore research topic. 4ther two research philosophies do not
align with the aims and o&jectives of research so they are avoided in this particular research.
/actors influencing &rand switching are e'plored with the help of previous researches and also
on the &asis of e'periences and perceptions of customers.
@.@ Research A""roach
#o evaluate the factors influencing &rand switching% researcher has two options of research
approach. #hese are deductive approach and inductive approach of research. 5eductive research
approach investigates research pro&lems through e'isting theories and literature whereas
inductive approach of research &uilds up new theories through e'periments and o&servations
76aunders et al.% 8**B9. 5eductive approach works from specific to general view whereas
inductive approach works from general to specific viewpoint.
#o investigate the factors influencing &rand switching &oth approaches are used. 5eductive
approach e'plores e'isting theories and models of &rand switching whereas inductive approach
e'amines the factors which influence customers of "akistan to switch over other mo&ile service
providers. +se of &oth approaches in research makes easy for the researcher to produce logical
and correct reasoning 76aunders et al% 8**19. 5eductive approach is related to interpretivism
whereas inductive approach is related to positivism. 3esearcher has related &oth approaches in
research in order to produce correct results.
@.= Research #ethods
#here are two types of research methods i.e. -ualitative and -uantitative research methods.
Attitudes% perceptions and &ehaviors of peoples of society are researched through -ualitative
research methods 7Marshall D 3ossman% (BBB9. Gualitative researches make use of words
25 | ' a ( e
while e'plaining a particular phenomenon. 4n the other hand -uantitative research methods
develop hypothesis on the &asis of e'isting theories and test them statistically through different
tests. A large amount of numeric data has &een used in -uantitative researches.
#his particular research has employed triangulation methodology i.e. com&ination of -ualitative
and -uantitative research methods 7Adela% 8**=9. Gualitative methods are employed in order to
&uild literature review of research whereas -uantitative methods are used to analyze the factors
influencing &rand switching in telecommunication industry of "akistan. In -ualitative part of
research secondary data in the form of words has &een used whereas in -uantitative part
numeric data in the form of percentages has &een used. 5ata collected through &oth approaches
is linked together in order to make a flow in the research. In the analysis section of research
findings of primary research i.e. -uantitative data has &een related to the literature review which
is -ualitative data. In this way coherence has &een achieved in the findings of research.
@. $ata %ollection &echni'ues
3...1 Types of Data
In order to e'amine the factors influencing &rand switching two types of data has &een used i.e.
primary and secondary. "rimary data is first hand data which does not e'ist in earlier records.
"rimary data is original data which has not &een altered or manipulated any other researcher so
its validity and relia&ility is high 76aunders et al% 8**B9. As it is collected &y the researchers for
the first time% chances of &iasness in this data are less. It re-uires high dedication% effort and cost
for collection. #he other type of data i.e. secondary data has already &een pu&lished. It is
&asically comprises of contri&utions of previous researchers and authors. 6ome of statistical
operations have &een performed on this data so chances of &iasness are more in secondary data
76aunders et al% 8**B9. $iterature review of the researches is &ased on secondary data. In this
particular research secondary and primary &oth data are used for e'amining factors influencing
&rand switching in telecommunication industry of "akistan.
3...2 %riary data collection techni(ues
"rimary data can &e collected through o&servations% interviews% surveys and focus groups. 0ere
is a detailed description and pros and cons of primary data collection toolsF
26 | ' a ( e
3...2.1 "&ser#ations
In &ehavioral sciences o&servation tool is commonly used for primary data collection.
3esearches o&serve individuals or group of individuals and record them. 5irect -uestions are
not asked from respondents for primary data collection through o&servations &ut researchers can
directly o&serve in this process 73ajendar% 8**>9. Hatural &ehavior of individuals is recorded
through this data collection techni-ue &ecause researcher do not pressurizes respondents in this
process. 4&servations are narrow tool of data collection. 3esearcher can &ecome a part of group
from whom data is to &e collected. In this way he can lose the o&jectivity of collecting data
73ajendar% 8**>9.
3...2.2 Sur#eys
6urveys are used to ascertain characteristics of a large population in short time duration. A
single survey can collect data from a large population with limited sources and time. 3esearcher
interacts with the respondents to a small e'tent. Guestionnaires are used for conducting surveys.
3espondents are asked to fill the -uestionnaire according to their knowledge and perceptions.
5ue to limited interaction of researcher with respondents% pro&lems in understanding -uestions
can arise. #his can lead to am&iguous responses which create pro&lems in analysis of data.
6urveys are fle'i&le tool of primary data collection and re-uire less time and money 73uss and
"reskill% 8**(9.
3...2.3 Inter#iews
/or collection data through interviews direct discussion and -uestion answer session is held
&etween researcher and respondents. Interviews can &e structured% semi structured or
unstructured. 6tructured interviews are those interviews in which an interview guide is prepared
for asking -uestions from respondents. In semi structured interviews researcher asks -uestions
via interview guide. 0e can add more -uestions during interview depending upon the situation.
In unstructured interviews% researcher does not prepare nay interview guide and asks
spontaneous -uestions from respondents. #hese interviews provide opportunity to the
researchers to have detailed discussion with the respondents. 3esponses produced through
interviews are of high -uality. Interviews are costly and re-uire greater time commitment. 5ue
24 | ' a ( e
to high interaction of respondents and interviewer results can &ecome &iased 73uss and "reskill%
8**(9.
3...3 !ontrast of the data collection tools
All the tools of primary data collection differ from each other in terms of response rate% -uality
of response% cost and time. 3esearchers select one or more than one tool for data collection &y
comparing pros and cons of these tools. 4&servations are narrow tool of data collection and
cannot &e used everywhere. 6urvey is less costly and time saving tool of data collection. #hey
produce low -uality responses as compared to that of interviews and focus group discussions.
3esponse rate in interviews and focus group discussions is high as compared to that of surveys.
6urveys are used to collect data where population is high and time for data collection is limited.
4n the other hand focus group discussions and interviews are used in situations where -uality
data is re-uired. Biasness in results is high in interviews and focus group discussions as
compared to those of surveys.
3...4 %riary and Secondary data collection tools eployed in research
#o evaluate the factors influencing &rand switching primary and secondary data has &een used
in this particular research. 6econdary data has &een collected through &ooks% research articles
and journals. Internet sources are also used to collect secondary data &ut with great care.
3esearcher has selected primary data collection tool after comparing pros and cons of all tools.
"rimary data of research has &een collected through -uestionnaire survey. Interviews and focus
group discussions are not used &ecause of limited time and &udget of researcher. 4&servation
tool has not &een used &ecause it does not align with the aims and o&jectives of research.
3.... )uestionnaire Design
Guestionnaire can &e open ended or close ended. /or this particular research close ended
-uestionnaire has &een developed which aims at finding answers of research -uestions.
3esearcher has developed -uestionnaire after considering aims% o&jectives and literature review
of research. It has two parts i.e. "art ;A< and part ;B<. "art ;A< is related to respondents who
25 | ' a ( e
have e'perienced &rand switching whereas part ;B< is for those respondents who have never
switched their mo&ile service providers.
@., !o"ulation and Sam"le
"opulation of a research is composed of all the entities or individuals who are directly attached
with the o&jectives and aims of research. roup of people from whom data is to &e collected is
called population. In this particular research population comprises of all mo&ile phone
su&scri&ers of "akistan telecom market. Major players of telecom industry of "akistan are
#hree% Mo&ilink% +fone% and #elenor ?verything ?verywhere. All these service providers have
huge customer &ase in "akistan so it is not feasi&le to collect primary data form whole
population. #o resolve this issue and avail convenience in data collection procedure%
representative part of population has &een selected which is called sample 72en% 8**B9.
A num&er of techni-ues are availa&le to the researcher for selecting sample. "ro&a&ility
sampling techni-ues grant e-ual chance to all mem&ers of population to &e selected in the
sample. 4n the other hand non pro&a&ility sampling does not allow all mem&ers e-ual chance to
&e selected in the sample of research 76truwig and 6tead% 8**19.
In this particular research sample of 1* mo&ile phone su&scri&ers has &een selected through
convenience sampling techni-ues. !onvenience sampling is a form of non pro&a&ility sampling
techni-ue in which researcher selects sample as per his or her convenience 7$unsford% (BB)9.
"ro&a&ility sampling has not &een selected &ecause it is very complicated techni-ue.
@.1 &ime Scale of research
#here are two time scales availa&le for the researches. 4ne is cross sectional and the other one
is longitudinal time scale. In longitudinal research data is collected only at more than one time
schedule whereas in cross sectional research data is collected only at one time. $ongitudinal
time scale is common in scientific researches. In this particular research data is collected only at
one time form respondents so it is a cross sectional research. $ongitudinal time scale is
irrelevant to aims and o&jectives of research so it is avoided in this research.
2. | ' a ( e
@.( )alidity and Relia*ility of Research
Jalidity of research is determined &y the correctness of research instrument 7Jaco&sen% 8**89.
3esearch has &een constructed with an aligned methodology. ?ach step of research is directed
towards achievement of aims and o&jectives of research. Guestionnaire is also developed after
considering research -uestions. 3esearcher has employed valid data of pervious researchers so it
can &e said that research looks into the validity of work of previous researchers. 3elia&ility of
research refers to the consistent and true results 7!harles% !. M. (BB)9. #his particular research
is a relia&le work &ecause researcher has used relia&le data. 5ata has not &een manipulated at
any stage of research. #riangulation methodology has &een adopted which employs primary and
secondary data. #he findings of research have &een validated through secondary data. #he
research work is also credi&le &ecause researcher has provided references throughout the
research paper wherever other writers: work is used.
@.B Research +thics
3esearch ethics have &een considered very carefully during the conduction of this particular
research. It has &een carefully considered that no&ody is harmed emotionally% physically or
personally during the whole process 72immel% 8**19. 3esearcher has informed all participants
of research a&out aims and o&jectives of research &efore collecting data. In this way deception
has &een avoided during data collection. "articipants were encouraged to answer the
-uestionnaire on their own will. #hey were not pressurized to take part in the research. It was
free will of all participants to fill the -uestionnaire. In order to gain honest data from
respondents% they were ensured a&out the confidentiality of their provided data.
In research very important issue is a&out plagiarism. It is strictly prohi&ited &y the university
not to copy any other:s work. 3esearcher has not cheated or copied the work of others
throughout this research process. In the literature review secondary data has &een used which is
&asically other researchers: work. 3esearcher has provided references throughout the research
wherever work of other researchers is -uoted. 3eferences in te't and &i&liography have &een
provided &ecause of two reasons. 4ne reason is to support secondary data and the other reason
is to acknowledge the work of previous researchers.
)0 | ' a ( e
@.(* #ethod of $ata Analysis
5ata collected through -uestionnaire has &een analyzed descriptively. 5etailed discussions on
the results of research have &een performed. Guestionnaire results are analyzed systematically.
In the first phase% data has &een entered in M6 ?'cel for conversion into percentages. /indings
of each -uestionnaire are transformed into ta&les and graphs. In the ne't phase of data analysis%
each ta&le and graph has &een discussed in detail. /indings are related with each other in order
to esta&lish relationship in them. Moreover% findings of research have &een compared with the
secondary data presented in the literature review. 3elationship &etween primary and secondary
data has &een esta&lished while analyzing data.
@.(, Summary of %ha"ter
#o e'amine these factors triangulation methodology has &een adopted which encompasses
primary and secondary data. "ositivism and interpretivism philosophies are employed to
e'amine &rand switching factors. 5eductive approach has &een adopted which relates to
interpretivism whereas inductive approach has &een adopted which is related to positivism
research philosophy. "rimary data has &een collected though a -uestionnaire survey. 3esearcher
has designed a close ended -uestionnaire in order to conduct survey. Guestionnaire has &een
developed &y considering aims and o&jectives of research. 5ata has &een collected from a
sample of 1* mo&ile phone su&scri&ers from "akistan. 3esearcher has selected sample through
convenience sampling techni-ue. ?thical issues like confidentiality of data% no harm to
any&ody% honest practices of data collection and plagiarism issues have &een considered very
carefully. 5ata analysis techni-ues have also &een descri&ed in this chapter.
!hapter /our
)1 | ' a ( e
5ata "resentation
=.( Introduction
5ata has &een collected from the sample through -uestionnaire survey. In this chapter data has
&een presented systematically. 3esults of each -uestion have &een presented in the form of
percentages. 3esults are presented in ta&les and graphs for proper analysis.
=.8 eneral Information
3espondents were asked to mention their age and gender in -uestionnaire. 5ifferent age
categories possess different preferences regarding mo&ile services. 6ame is true for gender of
mo&ile service su&scri&ers. Mo&ile service providers can analyze the needs and wants of
different genders and that of age categories in order to design &etter services for different
customer groups.
4.2.1 Fre(uency Distri&ution of ,ge of Saple
/ive age ranges were given in the -uestionnaire. /re-uency distri&ution of age of respondents is
shown in the following ta&le.
Age of $es%ondents
Age & of $es%ondents
$ess than 8* Kears (@
8( . @* Kears @)
@( . =* Kears @(
=( . )* Kears (@
A&ove )* Kears >
#otal (**
/re-uency distri&ution of sample shows that (@A respondents were less than 8* years old% @) A
respondents were &etween 8( L @* years of age. @( A respondents were in the age category of
@( L =* years of age% (@ A respondents were in the age category of =( L )* years. 4nly >A
respondents were a&ove )* years of age. #he data shows that most of the respondents were in
the middle age category. raphical representation of fre-uency distri&ution of age of
respondents is shown in the following ta&leF
)2 | ' a ( e
4.2.2 Fre(uency Distri&ution of 2ender of Saple
3espondents were asked to mention their gender in the -uestionnaire. By analyzing needs and
wants of males and females mo&ile service providers can design specific packages for males
and females. In the following ta&le fre-uency distri&ution of gender of respondents is shownF
#he results show that there were )8 A males and => A females in the sample. #wo deductions
can &e made from results. #he first is that more males use telephonic services and the second is
that more males have shown their intentions to fill the -uestionnaire. raphical representation
of fre-uency distri&ution of age of respondents is shown in the following ta&leF
)) | ' a ( e
'ender of $es%ondents
'ender & of $es%ondents
Male )8
/emale =>
#otal (**
4.2.3 Type of Telephonic Ser#ice
3espondents were asked a&out type of telephonic services used &y them. In telephonic services
fi'ed line and mo&ile services are common. 3espondents were given these options in the
-uestionnaire. 3esults a&out type of telephonic services are given in &elow ta&leF
(hich Phone ty%e you are using currently)
Phone Ty%e & of $es%ondents
$and line only (@
Mo&ile 4nly ,8
$and $ine and Mo&ile 8)
#otal (**
(@ A respondents said that they use land line telephonic services. ,8 A respondents use mo&ile
services only. #here were 8) A respondents who use com&ination of fi'ed line and mo&ile
services. #his suggests that mo&ile telephony is popular as compared to fi'ed line telephony.
4.2.4 0o&ile Ser#ice %ro#ider
3espondents were asked to mention mo&ile service provider whose services are used &y them
currently. #his -uestion was asked to analyze the major share of different mo&ile service
)4 | ' a ( e
providers. #he results are helpful in determining the most favora&le preference of respondents
for mo&ile service providers. In the following ta&le responses of respondents are summarized.
(hich Mobile %hone o%erator is currently in your use)
Ser*ice Pro*ider & of $es%ondents
+fone (B
#elenor 8,
Warid (1
Mo&ilink 8B
Eong B
#otal (**
#he results show that (B A respondents were availing mo&ile services of ;+fone<. 8, A
respondents were using services of ;#elenor<. #here are (1 A respondents who were using
mo&ile services of ;Warid<. #here were 8B A respondents who use services of Mo&ilink. 4nly
B A respondents were availing mo&ile services of Eong. #he results show that Mo&ilink is
mostly used &y the respondents. #elenor is found to &e at second place used &y the respondents.
raphical representation of results is as followsF
4.2.. Switching of o&ile ser#ice pro#ider
3espondents were asked a&out switching mo&ile service providers. #his -uestion was asked for
the further direction of -uestionnaire and also to analyze the trend of switching mo&ile service
providers in respondents. #he responses a&out switching mo&ile service providers are given in
the following ta&le.
To what e+tent you ha*e changed mobile %hone o%erator since you
)5 | ' a ( e
are a*ailing mobile tele%hony)
Suggestions & of $es%ondents
Hot at all (@
4nce @)
#wice 8,
#hrice (1
More than thrice B
#otal (**
A&ove ta&le presents clear picture a&out results of switching &ehavior of respondents. #here
were (@A respondents who have never switched mo&ile service provider. @) A respondents
have switched mo&ile service providers once in the life. #here were 8, A respondents who have
changed mo&ile service provider twice in their life. (1 A respondents have switched mo&ile
service provider thrice in their life. #here were only B A respondents who have switched mo&ile
service providers for more than thrice. #he results suggest that >1A respondents have
e'perienced switching mo&ile service providers. Majority has done this only for one time.
=.@ /indings of -uestionnaire
3espondents were given directions that if they have e'perienced mo&ile service providers then
fill part ;A< of -uestionnaire otherwise move to part ;B<. "art ;A< of -uestionnaire relates to
factors that influence mo&ile su&scri&ers to switch mo&ile service providers whereas part ;B<
relates to the factors that prevent customers to switch mo&ile service provider. /indings of &oth
parts are given &elowF
)6 | ' a ( e
4.3.1 Findings of %art 1
#here were >1 A respondents who have e'perienced switching mo&ile service providers. #he
results of part ;A< of -uestionnaire have &een derived from >1A of total respondents who have
e'perienced &rand switching.
)uestion 1*
#he first -uestion was asked that for how many times mo&ile service providers have switched
their service providers in response to changes in price. $iterature review has discussed that price
is the most important factor that influence &rand switching &ehavior. #he results of this -uestion
are summarized in the following ta&leF
,or how many times you ha*e changed mobile ser*ice %ro*ider in
res%onse to changes in call charges)
Hot at all B
4nce @(
#wice @,
#hrice ()
More than #hrice B
#otal (**
#here were B A respondents who have never changed mo&ile service provider &ecause of
changes in price. @( A respondents have changed mo&ile providers once in their life in response
to change in prices. #here were @, A respondents who have switched mo&ile service providers
twice in their life in response to changes in price. ()A respondents have switched mo&ile
service providers thrice in their life in response to changes in price. BA respondents have
switched mo&ile service providers for more than three times in their life in response to changes
in prices of mo&ile services. raphical representation of results is as followsF
)4 | ' a ( e
)uestion 2*
3espondents were asked that whether the customer service of previous mo&ile service operator
was poor or not. !ustomer service has taken an important place in the decision making process
of customers. It has considered e-ually important as a product. #he results of this -uestion are
summarized in the following ta&leF
-o you think customer care ser*ice of %re*ious o%erator was
%oor)
6trongly Agree 8(
Agree @)
Heutral B
5isagree 8*
6trongly 5isagree ()
#otal (**
#here were 8( A respondents who strongly agreed that customer service of previous operator
was poor. @) A respondents agreed to the fact that customer service of previous operator was
poor. B A respondents remained neutral in their opinion. 8* A respondents disagreed to the fact
that customer service of previous operator was poor. () A respondents strongly disagreed with
this opinion. raphical representation of results is as followsF
)5 | ' a ( e
)uestion 3*
3espondents were asked whether &etter service -uality of new service provider has encouraged
them for switching. 6ervice -uality is determined &y a num&er of factors which include tangi&le
as well as intangi&le aspects. #he results of this -uestion are summarized in the following ta&leF
Better ser*ice .uality has %ersuaded you to switch o*er
current ser*ice %ro*ider)
6trongly Agree 8=
Agree @1
Heutral >
5isagree (B
6trongly 5isagree (8
#otal (**
#he results suggest that 8= A respondents strongly agreed to the fact that &etter service -uality
has encouraged them to switch over new service provider. @1 A respondents agreed to the fact
that &etter service -uality of new operator has encouraged them for &rand switching. > A
respondents remained neutral in their opinion. (B A respondents disagreed to the fact that &etter
service -uality of new service provider has encouraged &rand switching. (8 A respondents
strongly disagreed with this opinion. raphical representation of results is as followsF
). | ' a ( e
)uestion 4*
3espondents were asked that whether value added services have encouraged them for &rand
switching or not. #he results of this -uestion are summarized in the following ta&leF
/alue added ser*ices ha*e %ersuaded you to switch o*er
current ser*ice %ro*ider)
6trongly Agree (>
Agree @(
Heutral (@
5isagree 8@
#otal (**
#he a&ove ta&le suggests that (> A respondents strongly agreed to the fact that value added
services have encouraged them to switch over new service provider. @( A respondents agreed to
the fact that value added services of new operator have encouraged them for &rand switching.
(@A respondents remained neutral in their opinion. 8@ A respondents disagreed to the fact that
value added services of new service provider have encouraged &rand switching. () A
respondents strongly disagreed with this opinion. raphical representation of results is as
followsF
40 | ' a ( e
)uestion .*
3espondents were asked a&out the trust on previous service providers. #rust is very important
for maintaining or discarding relationship with the service providers. #he results of this
-uestion are summarized in the following ta&leF
0ou cannot trust %re*ious mobile ser*ice %ro*ider
6trongly Agree (1
Agree 8B
Heutral ()
5isagree 8)
6trongly 5isagree (=
#otal (**
#he a&ove ta&le suggests that (1 A respondents strongly agreed to the fact that they cannot trust
previous mo&ile service providers. 8B A respondents agreed to the fact that they cannot trust
previous service providers. ()A respondents remained neutral in their opinion. 8) A
respondents disagreed that they cannot trust previous mo&ile service providers. (= A
followsF
41 | ' a ( e
)uestion /*
Innovations in mo&ile services are very attractive tool for encouraging customers to switch
&rands. Innovative services can provide customers more convenience. #he results of this
Current mobile ser*ice %ro*ider is inno*ati*e
6trongly Agree 8(
Agree @(
Heutral (1
5isagree (B
#otal (**
#he results suggest that there were 8( A respondents who strongly agreed that current mo&ile
service provider is innovative. @(A respondents just agreed that new mo&ile service provider is
innovative. (1A respondents remained neutral in their opinion. (B A respondents disagreed that
current mo&ile service provider is innovative. (8 A respondents strongly disagreed with this
opinion. raphical representation of results is as followsF
42 | ' a ( e
)uestion 3*
It has &een discussed in the literature review that advertisement attracts new as well as e'isting
customers. !ompanies advertise their services in order to attract new customers and also in
order to retain e'isting ones. #he results of this -uestion are summarized in the following ta&leF
Ad*ertisement of current mobile ser*ice %ro*ider has attracted you
6trongly Agree 8(
Agree @1
Heutral >
5isagree 8@
6trongly 5isagree ((
#otal (**
#he results suggest that there were 8( A respondents who strongly agreed that advertisement
has attracted them towards new operator. @1A respondents just agreed that advertisement has
attracted them towards new operator. >A respondents remained neutral in their opinion. 8@ A
respondents disagreed that advertisement has attracted them towards new operator. (( A
followsF
4) | ' a ( e
)uestion 4*
Availa&ility of service is very important factor that can create satisfaction or dissatisfaction in
customers. 3espondents were asked that whether &etter service availa&ility of current mo&ile
service provider has made them to switching or not. #he results of this -uestion are summarized
in the following ta&leF
Better ser*ice a*ailability of current mobile ser*ice %ro*ider has made you to
switch o*er it
6trongly Agree 8=
Agree @)
Heutral (=
5isagree (1
6trongly 5isagree (*
#otal (**
#he results suggest that 8= A respondents have strongly agreed that &etter service -uality has
made them switching towards current mo&ile service provider. @) A respondents agreed% (=A
remained neutral% (1 A disagreed and (*A respondents strongly disagreed to this fact.
44 | ' a ( e
)uestion 5*
$iterature review has discussed in detail that &rand image has influence on &rand switching.
3espondents were asked that whether &rand image or current service provider has persuaded
them to switch over this &rand. #he results of this -uestion are summarized in the following
ta&leF
Brand Image has %ersuaded you to switch o*er the current mobile
ser*ice %ro*ider
6trongly Agree 8*
Agree @@
Heutral B
5isagree 8(
#otal (**
#he results show that 8* A respondents strongly agreed to that fact that &rand image has
influenced them to switching towards current service provider. @@ A respondents agreed% BA
remained neutral% 8(A disagreed and (1A respondents strongly disagreed with the opinion.
45 | ' a ( e
4.3.2 Findings of %art 2
46 | ' a ( e
#his part is related to non switchers. /actors that have influenced customers not to switch over
other:s &rands are identified in this section.
)uestion 1*
Hon switchers were asked that whether respondents were restricted &y some personal or
professional reason for not switching service providers. #he results of this -uestion are
summarized in the following ta&leF
0ou cannot change current number because of some %ersonal reason or
%rofessional reason
6trongly Agree (B
Agree 81
Heutral ()
5isagree 88
#otal (**
3esults show that (B A respondents strongly agreed that they have &een restricted &y personal
or professional reason to remain stayed with the current service providers. 81A respondents
agreed% () A remained neutral% 88A disagreed and (1A respondents strongly disagreed to the
fact. raphical representation of results is as followsF
)uestion 2*
44 | ' a ( e
6witching cost plays important role in restricting customers with their current service providers.
3espondents were asked that whether switching cost is high for them or not. #he results of this
Switching to other mobile ser*ice %ro*ider is costly
6trongly Agree 8(
Agree @)
Heutral (=
5isagree ((
6trongly 5isagree (B
#otal (**
3esults show that there were 8( A respondents who strongly agreed that switching cost is high
and restricts them to stay with current service providers. @) A respondents agreed% (= A
remained neutral% (( A disagreed and (BA strongly disagreed with the opinion. raphical
representation of results is as followsF
)uestion 3*
45 | ' a ( e
3espondents were asked a&out trusting other mo&ile service providers. #rust on mo&ile service
providers influences customers to either stay with or to switch over other service providers. #he
results of this -uestion are summarized in the following ta&le
0ou cannot trust other mobile ser*ice %ro*iders
6trongly Agree 88
Agree @*
Heutral (8
5isagree (B
#otal (**
88A strongly agreed that they cannot trust other service providers. @* A respondents agreed%
(8A remained neutral% (BA disagreed and (1A respondents strongly disagreed to the fact that
they cannot trust other service providers. raphical representation of results is as followsF
)uestion 4*
3espondents were asked that whether &etter service -uality of current service provider resist in
switching. 3esults are displayed in the following ta&le.
4. | ' a ( e
Ser*ice .uality of current mobile ser*ice %ro*ider is better
which resists in switching
6trongly Agree 8(
Agree 8B
Heutral (,
5isagree (B
#otal (**
3esults show that there were 8(A respondents who strongly agreed that &etter service -uality
resists them to switch towards a particular service provider. 8BA respondents agreed% (,A
remained neutral% (BA disagreed and () A strongly disagreed to the fact that &etter service
-uality resists them for switching. raphical representation of results is as followsF
)uestion .*
$ow charges of services can &e a techni-ue for service providers to restrict customers with
them. 3espondents were asked their perception a&out low charges and staying with current
service provider. 3esults are displayed in the following ta&le.
50 | ' a ( e
Charges of current mobile ser*ice %ro*ider are low
6trongly Agree 8>
Agree @1
Heutral B
5isagree (,
6trongly 5isagree (*
#otal (**
8>A respondents strongly agreed that low charges of current service providers persuade them to
stay with them @1) respondents agreed% B A remained neutral% (, A disagreed and (*A
strongly disagreed to the opinion. raphical representation of results is as followsF
)uestion /*
3espondents were asked that whether coverage service of current mo&ile service provider is
&etter than other service providers. 3esults are displayed in the following ta&le.
Co*erage ser*ice of current mobile ser*ice %ro*ider is better
than other ser*ice %ro*iders
6trongly Agree ((
Agree 8B
Heutral (1
5isagree 8>
51 | ' a ( e
#otal (**
3esults suggest that ((A respondents strongly agreed that &etter coverage service of current
operator restricts them not to switch. 8BA respondents agreed% (1A remained neutral% 8>A
disagreed and ()A respondents strongly disagreed to the fact that they are restricted &y &etter
coverage service of current operator. raphical representation of results is as followsF
)uestion3*
3espondents were asked a&out trusting advertisement of other service providers. 6ometimes
advertisements are not mentioned a&out hidden charges of service. #his can create distrust in
customers. 3esults are displayed in the following ta&le.
Trusting ad*ertisement of other ser*ice %ro*iders is costly
as they include hidden charges
6trongly Agree 8*
Agree @@
Heutral ((
5isagree (B
52 | ' a ( e
#otal (**
8*A respondents said that trusting advertisement on other service providers is costly &ecause it
includes hidden charges. #here were @@A respondents who agreed% ((A remained neutral% (BA
disagreed% and (1A strongly disagreed to the opinion. raphical representation of results is as
followsF
)uestion 4*
!ustomer services play important role is satisfying or dissatisfying customers. 3espondents
were asked that whether &etter customer services of current service provider resist in switching
or not. 3esults are displayed in following ta&leF
Customer care ser*ices of current mobile ser*ice %ro*ider are of
high .uality which resist in switching
6trongly Agree (8
Agree @8
Heutral B
5isagree 8>
6trongly 5isagree (B
#otal (**
5) | ' a ( e
(8A respondents strongly agreed that they are resisted &y &etter customer services of current
service providers for not switching &rand. @8 A agreed% BA remained neutral% 8>A disagreed
and (BA respondents strongly disagreed to the opinion. raphical representation of results is as
followsF
)uestion 5*
Brand image has influence on &rand switching as discussed &y literature review. 3espondents
were asked that whether &rand image of current service providers has resisted them to switching
or not. 3esults are displayed in following ta&leF
Brand Image has %ersuaded you to stay with the current
mobile ser*ice %ro*ider
6trongly Agree 8(
Agree @)
Heutral 1
5isagree 88
#otal (**
54 | ' a ( e
#he results show that 8( A respondents strongly agreed that &rand image of current service
providers has resisted them to switching. @)A respondents agreed% 1A remained neutral% 88A
disagreed and ()A respondents strongly disagreed to the opinion. raphical representation of
results is as followsF
=.= !onclusion
5ata findings have &een presented systematically that can help in further analysis of results. All
important aspects regarding presentation of data findings have &een considered &y the
researcher. #he ne't chapter deals with the analysis of these findings.
55 | ' a ( e
!hapter /ive
5ata Interpretation and Analysis
).( Introduction
5ata has &een presented in detail in the last chapter. In this section all graphs and ta&les have
&een interpreted and detailed analysis of results has &een performed. /indings of primary data
have &een related to the theory presented in the literature review in order o esta&lish relations
&etween primary and secondary data.
).8 Analysis of /indings
In the sample most of the respondents &elonged to middle age category. #here was less
percentage of respondents of more than )* years of age. Heeds of communication of individuals
of different age categories vary. Individuals who are younger in age and have not started their
career yet use mo&ile telecommunication for contacting their friends and relatives. #hey do not
have any restrictions related to profession. #hese individuals also have limited &udget so they
used to switch their mo&ile service providers fre-uently in response to different offers of service
providers. It has &een found that respondents who were older used fi'ed line only whereas
respondents who were young used mo&ile telecommunication only. 6ome of the respondents
have also said that they use &oth types of telecommunication. It is very important to mention
that mo&ile telecommunication is comparatively new technology and is characterized &y a
num&er of innovations. Koung individuals are more attracted to innovations rather than older
ones who want to remain in their traditional frame of mind. #his is the reason young and middle
age respondents have &een found using mo&ile telecommunication more.
It has &een found that majority of the respondents use Mo&ilink following &y #elenor. +fone
has &een recognized as an innovative telecommunication company in "akistan. Most of the
young and professional have &een using ;+fone< &ecause it provides them innovations that can
provide them entertainment as well as solution of their pro&lems. Warid has also &een found as
56 | ' a ( e
one of the major market share holder. #here was very less percentage of respondents who have
&een using Eong.
3espondents who were young have &een found very fre-uent in switching mo&ile service
providers. It has &een found that respondents who are older in age have never switching mo&ile
service providers. It can &e deduced that these respondents might have some personal or
professional reason for changing mo&ile service providers. It has &een found that respondents
who are young have switched for more than @ times since they are using mo&ile
telecommunication.
Guestionnaire has &een divided into two parts. 4ne part relates to switchers and the other one is
related to non switchers. #here were >1A respondents who have e'perienced switching mo&ile
service provider in their life whereas (@A respondents have never e'perienced &rand switching
of mo&ile service providers. It has &een found that most of customers of Mo&ilink have &een
found non switchers.
..2.1 ,nalysis of Factors Influencing Brand Switching
Majority of respondents have &een found switching mo&ile service providers in response to
changes in call charges. !all charges relate to price varia&le which has &een found very
influential factors for &rand switching according to literature review. Most of the young
respondents who might have limited &udget have &een found more fre-uent switchers in
response to changes in price. It can &e said that price changes affect those customers who have
limited &udgets. 4n the other hand respondents who &elonged to middle age do not switch in
response to changes in price. It can &e deduced that these respondents are not sensitive to
changes in price and some other factors have influenced them to switch mo&ile service
providers. 3ajkumar 78*((9 has also suggested that customers who are -uality conscious are not
attracted to changes in price. 4verall price has influenced customers to switch mo&ile service
providers
!ustomer care service has also &een an influential factor for &rand switching. It has &een found
that most of the respondents have agreed that &etter customer service of current operator has
made them to switch towards them. Jun and Bin 78**)9 say that &etter customer service
provided &y the employees can &e proved an influential factor for &rand switching. Guality of
54 | ' a ( e
service refers to tangi&le as well as intangi&le components of service. #angi&le service refers to
&etter voice -uality% voice clarity% service availa&ility etc. 4n the other hand intangi&le
component refers to customer care. Both are very important for satisfying and attracting
customers. James 7(BB>9 has said that companies can improve their financial performance &y
satisfying customers through -uality services .Important thing to &e mentioned is that
respondents who are not sensitive to changes in price switch mo&ile service providers &ecause
of -uality of customer care services.
Guality conscious customers tend to have value added services provided &y the mo&ile service
providers. It has &een found that most of respondents have switched mo&ile service providers
&ecause current service provider grants them more value added services. Guality of a service is
also recognized &y the provision of value added services. Availa&ility of service affects -uality
of service. 3espondents have also said that availa&ility of service has encouraged them to switch
over current service provider. It has also &een found that piece conscious respondents are less
attracted &y value added services. #his is &ecause some companies charge e'tra amount for
value added services 75ong and Won% 8**19.
#rust is very important factor in esta&lishing long term relationship &etween any two units. It
has &een found that customers who have e'perienced &rand switching say they cannot trust their
previous service providers. #rust conveys a message to the customers that service provider can
do anything in order to satisfy their needs. If this does not happen% customers can switch over
other service providers 7$iang and Wang% 8**>9.
Innovations in mo&ile services are penetrating day &y day. Koung and career oriented
respondents have &een more sensitive to innovations of current service providers. It has &een
found that respondents who were using ;+fone< were more satisfied with the innovations of
company. In fact they have switched in response to innovative offers of company. Innovations
are also related to service -uality 7Jun and Bin% 8**)9. It has &een found that respondents who
were -uality service conscious also recognized innovative services of current service provider.
A considera&le percentage of switchers have recognized the power of advertisement in
attracting them towards current service providers. It has &een found that most of the respondents
have said that they have &een attracted &y the advertisements of current service providers. #here
55 | ' a ( e
were some respondents who have not &een attracted &y advertisements. #hese might &e the
customers who value concrete &asis rather than mere advertisement. Advertisement not only
attracts new customers &ut also encourages e'isting customers for repeat purchase 7?hren&erg%
A.6.!.% 8***9. It depends on the effectiveness of advertisement that customers retain with
e'isting company or switch over the other one which has &een more effective in its
advertisement.
3esults show that respondents who were -uality conscious value &rand image. #hese
respondents have switched old mo&ile service provider &ecause image of current service
provider is more attractive. 6erkan et al.% 78**)9 have suggested that &rand image affects
decision making process of customers.
..2.2 ,nalysis of Factors +esisting Brand Switching
It has &een found that most of respondents have some personal or professional commitments
due to which they do not switch mo&ile service providers. #he results have revealed that
respondents who were in middle age category have given this reason for not switching mo&ile
service providers. #his reason can &e related to psychological switching cost. If these
respondents change mo&ile service providers% they can e'perience high switching cost resulted
from their personal or professional commitments. #his type of switching cost effects
respondents to remain attached with a particular mo&ile service provider 7Burnham% /rels and
Mahajan% 8**@9.
6witching cost plays very important role in determining switching attitude of customers. It has
&een found that most of the respondents who have personal or professional commitments also
said that switching to new service providers can &ecome costly so they prefer to remain attach
with e'isting service provider. It can &e deduced that perceived &enefits of switching might &e
low for these respondents so they decide not to switch mo&ile service providers 7$ees et al.%
8**19.
Another factors preventing &rand switching is ;#rust<. In the a&ove section this factor has &een
recognized as an important factor influencing &rand switching. Majority of respondents have
said that they cannot trust other service providers so they remain attached with e'isting service
providers. +ntil there is no trust &etween customer and service provider% long term relationship
5. | ' a ( e
cannot &e esta&lished 7!hu% 8**B9. It can also &e deduced that distrust on other service
providers increases switching cost which ultimately resists in switching.
It has &een found from results that &etter service -uality of current mo&ile service providers has
resisted respondents to switch over other &rands. Bitner D 0u&&ert 7(BB=9 say that &etter
service -uality puts an impression of superior services in the minds of customers. 5ue to this
impression they do not switch over other &rands. 6ervice -uality also refers to coverage of
service provided & the service providers 7Jun and Bin% 8**)9. "rice has &een the most important
factor in the decisions of customers for staying with e'isting &rand or switching to the other
one. In the a&ove section it has &een found that price conscious respondents have switched
mo&ile service providers in response to changes in price. 6imilarly in this section respondents
have recognized low charges restricting them to stay with the current service providers. $ee and
Murphy 78**)9 have found price as most important and influential factor &ehind &rand
switching in telecommunication industry.
It has &een proved that advertisement has played important role in attracting customers to new
service providers in the previous section. #he results of this section suggest that non switchers
do not trust advertisement of other service providers &ecause they include hidden charges which
are not displayed in advertisements. Brand image has also &een found an important factor that
has influenced respondents to remain attached with current service provider. In a&ove section
respondents have switched service providers &ecause of appealing &rand image of new service
providers. It can &e deduced that &rands with appealing image attract customers.
).@ !onclusion
#he findings suggest that customers switch over mo&ile service providers &ecause of a num&er
of factors which include price% &rand image% service -uality and customer care services. 4n the
other hand there are various factors that prevent customers to switch over other mo&ile service
providers.
60 | ' a ( e
!hapter 6i'
!onclusion
,.( Introduction
#his chapter presents conclusion of the whole research. All the findings have &een concluded
here. 4n the &asis of results of primary data and that of secondary data some recommendations
have &een proposed to the telecommunication companies of "akistan in order to stop their
customers for &rand switching. /uture prospects of research have also &een presented in this
chapter.
,.8 !onclusion
#his particular research aimed at e'amining the factors influencing &rand switching in
telecommunication industry of "akistan. In order to e'amine the factors triangulation
methodology has &een adopted. Guestionnaire strategy has &een used &y the researcher for
collecting primary data. #here were >1A respondents who have e'perienced &rand switching of
service providers at any stage in their life. (@A respondents have never switched mo&ile
service providers. #he findings of research suggest that there price has &een most influential
factor in decisions of customers regarding &rand switching. #he results have shown that most of
respondents switch mo&ile service providers in response to changes in prices. 4n the other hand
service providers charging low call rates have &een succeeded in stopping their customers to
switch over other service providers. All customers do not value reduction in prices of calls &ut
they value -uality of services 3ajkumar 78*((9. 6o companies need to maintain a &alance in
high -uality and reasona&le price in order to retain customers.
61 | ' a ( e
0igh -uality services have also &een found an important factor for encouraging customers for
&rand switching as well as for retaining customers. Mo&ile service providers with attractive and
high -uality services 7customer care% coverage area9 have made customers of other companies to
switch over them. 4n the other hand customers have &een stopped &y companies for &rand
switching &y providing them -uality services. Guality services satisfy customers and ultimately
enhance performance of companies 7Jun and Bin 78**)9.
6witching cost has &een found very important factor in stopping customers for &rand switching.
Burnham% /rels and Mahajan 78**@9 suggest that companies need to raise switching cost in
order to retain their customers. 0igh switching cost prevents customers to switch over others. It
can ultimately increase customer loyalty. 6ervice providers that have low switching cost face
fre-uent switching of their customers towards other service providers.
4n every important factor has &een identified from the results that encourage &rand switching as
well as prevents it. #he factor is ;#rust< which is &ase of esta&lishing long term relationship
with the companies. If companies fail to maintain trust with customers they cannot start
relationship with customers on long term &asis. #he results have revealed that customers who
do not trust service providers switch over other service providers. 4n the other hand customers
who do not trust other service providers tend to remain with their current service providers.
Brand image has also &een found an influential factor in determining the final decision of
customers regarding &rand switching. Brands that have appealing image attract customers of
other service providers and retain their own customers for long time period 76erkan et al.%
8**)9.
/inally the o&jectives of research are reviewed as followsF
6witching &ehavior is a process which persuades customers to end relationship with a
particular company and to start a new relationship with another company.
"rice has &een the most important factor that influences &rand switching. 4ther factors
that have &een found encouraging for &rand switching in telecommunication industry of
"akistan areF 6ervice -uality% !ustomer care% value added services and &rand image.
62 | ' a ( e
Most important factor that prevents &rand switching is switching cost. 0igh switching
cost prohi&its customers to switch over other service providers. 4ther factors that stop
customers for &rands switching areF personal or professional commitments regarding
changing num&er% low service charges% high -uality and appealing &rand image of
e'isting service providers.
Most of the respondents prefer Mo&ilink in "akistan which has low switching rate. After
Mo&ilink% #elenor has &een found popular in the respondents.
,.@ 3ecommendations
4n the &asis of findings of primary and secondary research some recommendations have &een
proposed to the mo&ile service providers in order to stop their customers for &rand switching.
#hese recommendations are as followsF
3aise switching cost associated with the services so that &ecause of high cost customers
avoid &rand switching and remain loyal with e'isting service provider.
"rovide high -uality services to customers that must &e accompanied &y -uality
customer care services and large coverage area so that customers do not get any reason
for switching towards other service providers.
Maintain strong and appealing &rand image so that customers remain loyal with the
&rand.
Assure customers that company will take stand in order to satisfy their needs so that
trustworthy relationship can &e maintained on long term &asis which ultimately
encourages customers to remain loyal with the company.
4ffer low charges accompanied &y high -uality services for stopping customers to go
for low charges of other service providers.
6) | ' a ( e
,.= /uture 3esearch
3esearch has &een conducted to evaluate the factors influencing &rand switching in
telecommunication sector of "akistan. #his particular research is very helpful for the future
researchers. #hey can e'tend &ase of this research and enhance its scope. $iterature review of
the research can assist future researchers in understanding &rand switching phenomenon. #his
particular research is &asically focused on telecommunication market of "akistan. /uture
researchers can e'pand this research in markets other than "akistan. #his particular research has
&een conducted on a small sample selected through convenience sampling techni-ue. /uture
researchers can select a large sample from pro&a&ility sampling techni-ue. #his will assist
future researchers in generalizing the results of research.
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6. | ' a ( e
Appendi'
3uestionnaire
'eneral Information
Age.
a9 $ess than 8* Kears
&9 8( L @* Kears
c9 @( L =* Kears
d9 =( L )* Kears
e9 A&ove )* Kears
/ender4
a9 Male
40 | ' a ( e
&9 /emale
5! (hich Phone ty%e you are using currently)
a9 $and line only
&9 Mo&ile 4nly
c9 $and $ine and Mo&ile
! (hich Mobile %hone o%erator is currently in your use)
66666666666666666666666666666666
2! To what e+tent you ha*e changed mobile %hone o%erator since you are a*ailing
mobile tele%hony)
a9 Hot at all
&9 4nce
c9 #wice
d9 #hrice
e9 More than thrice
If you have ever switched mo*ile service "rovider0 then answer "art 1A2. If you have never
switched mo*ile service "rovider0 then answer "art 1B2 of 'uestionnaire.
Part A4
5! ,or how many times you ha*e changed mobile ser*ice %ro*ider in res%onse to
changes in call charges)
a9 Hot at all
&9 4nce
41 | ' a ( e
c9 #wice
d9 #hrice
e9 More than thrice
! -o you think customer care ser*ice of %re*ious o%erator was %oor)
a9 6trongly agree
&9 Agree
c9 Heutral
d9 5isagree
e9 6trongly disagree
2! Better ser*ice .uality has %ersuaded you to switch o*er current ser*ice %ro*ider)
a9 6trongly agree
&9 Agree
c9 Heutral
d9 5isagree
7! /alue added ser*ices ha*e %ersuaded you to switch o*er current ser*ice %ro*ider)
a9 6trongly agree
&9 Agree
c9 Heutral
d9 5isagree
42 | ' a ( e
8! 0ou cannot trust %re*ious mobile ser*ice %ro*ider
a9 6trongly agree
&9 Agree
c9 Heutral
d9 5isagree
9! Current mobile ser*ice %ro*ider is inno*ati*e
a9 6trongly agree
&9 Agree
c9 Heutral
d9 5isagree
"! Ad*ertisement of current mobile ser*ice %ro*ider has attracted you
a9 6trongly agree
&9 Agree
c9 Heutral
d9 5isagree
4) | ' a ( e
#! Better ser*ice a*ailability of current mobile ser*ice %ro*ider has made you to
switch o*er it
a9 6trongly agree
&9 Agree
c9 Heutral
d9 5isagree
:! Brand Image has %ersuaded you to switch o*er the current mobile ser*ice %ro*ider
a9 6trongly agree
&9 Agree
c9 Heutral
d9 5isagree
Part B4
5! 0ou cannot change current number because of some %ersonal reason
a9 6trongly agree
&9 Agree
c9 Heutral
d9 5isagree
! Switching to other mobile ser*ice %ro*ider is costly
44 | ' a ( e
a9 6trongly agree
&9 Agree
c9 Heutral
d9 5isagree
2! 0ou cannot trust other mobile ser*ice %ro*iders
a9 6trongly agree
&9 Agree
c9 Heutral
d9 5isagree
7! Ser*ice .uality of current mobile ser*ice %ro*ider is better which resists in
switching
a9 6trongly agree
&9 Agree
c9 Heutral
d9 5isagree
8! Charges of current mobile ser*ice %ro*ider are low
a9 6trongly agree
&9 Agree
45 | ' a ( e
c9 Heutral
d9 5isagree
9! Co*erage ser*ice of current mobile ser*ice %ro*ider is better than other ser*ice
%ro*iders
a9 6trongly agree
&9 Agree
c9 Heutral
d9 5isagree
"! Trusting ad*ertisement of other ser*ice %ro*iders is costly as they include hidden
charges
a9 6trongly agree
&9 Agree
c9 Heutral
d9 5isagree
#! Customer care ser*ices of current mobile ser*ice %ro*ider are of high .uality
which resist in switching
a9 6trongly agree
&9 Agree
c9 Heutral
46 | ' a ( e
d9 5isagree
:! Brand Image has %ersuaded you to stay with the current mobile ser*ice %ro*ider
f9 6trongly agree
g9 Agree
h9 Heutral
i9 5isagree
j9 6trongly disagree
44 | ' a ( e

Encouraging Brand Switching in Telecom Industry of Pakistan

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Encouraging Brand Switching in Telecom Industry of Pakistan

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Encouraging Brand Switching

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