Research Proposal

CONSUMER SWITCHING BEHAVIOR IN CELLULAR

Submitted by:
Zaenab Afzal Mirajkar 1735259

Supervisor: Dr. Rizwan Raheem

Submitted to:

Shaheed Zulfiqar Ali Bhutto Insttitute of Science and Technology

Karachi, Pakistan
Fall 2017

1
 Contents
Section 1: Introduction................................................................................................................................3
1.1 Research Background......................................................................................................................3
1.1.1 Consumer Switching Behavior.........................................................................................................3
1.1.2 Factors affecting Switching Behavior..................................................................................................3
1.1. Problem Statement..........................................................................................................................5
1.2. Purpose............................................................................................................................................5
1.3. Scope...............................................................................................................................................5
1.4. Research Questions..............................................................................................................................5
1.5. Research Objectives.........................................................................................................................6
1.6. Hypothesis.......................................................................................................................................6
1.7. Limitations.......................................................................................................................................6
1.8. Definition of Key Terms...................................................................................................................6
Section 2: Research Methodology...............................................................................................................7
2.1. Theoretical Framework.........................................................................................................................7
2.2. Research Design...................................................................................................................................7
2.3. Procedure.............................................................................................................................................7
2.4. Target Population.................................................................................................................................8
2.5. Sample and Sampling Method.........................................................................................................8
2.6. Instrumentation...............................................................................................................................8
2.7. Statistical Modeling Tool.................................................................................................................8
References...................................................................................................................................................9
 Section 1: Introduction

Research Background

1.1.Consumer Switching Behavior

Consumer switching behavior refers to the behavior whereby which consumers stop

using a product or service in favor of a competitor's. For example, a customer might shift from

one cellular network to another if he/she is not happy with the current cellular service provider.

Consumer switching behavior is an ever present danger for any business. If consumers are not

kept happy, chances are, one might end up losing them to potential competitors. (Mack)

1.0.1 Factors affecting Switching Behavior

Tariff Package: Tariff refers to the cost of usage i.e. price. It is the total cost of obtaining

the services of a commodity, inclusive of the commodity’s purchase price. Price is one of the

most crucial factors which plays a key role in consumer switching behavior (Kotler &

Armstrong, 2010) It is the amount which a consumer forgoes in exchange of a product or service

utility. Tariff packages of cell phones include the cost of acquiring the SIM card, call rates per

minute, the price of sending out text messages, charges of web usage, etc. Competitive brands try

their best to attract potential customers towards their brand. They use numerous marketing

tactics, and apply different forms of advertising strategies in order to position their product as the

number one brand in the minds of potential consumers. Consumers compare tariff packages with

other cellular networks before they make a purchase decision. If they are not satisfied with their

current network provider, they move on to switch to another cellular service provider which has

better offers (Fraccastoro & Karani, 2010).

strength of a network. If consumers do not get sufficient network signals and face glitches in

their network from time to time, they may want to switch to another network provider which

offers better signals and network coverage. Network subscribes who experience low signals in

their locality are most likely to switch to another network. A cell phone is almost useless without

a network, and if there is poor network coverage, that means, the basic need of acquiring a cell

phone is not being fulfilled, thus leading to brand switching behavior on the consumers’ part. If

cellular services do not coincide with consumer expectations, conflicts in satisfaction levels may

start to arise leading to switching behavior. (Md. Abdullah Al Jamil & Hasan, 2015)

Promotional Activities: Advertising and promotional activities are essential for the

growth of a firm. Products and services need advertising strategies and promotional schemes to

create awareness about the brand. Subsequently, in order to have a legit and genuine research

based on the associated field of study area, promotional activities have been decided upon to be

used in the study as a determinant of switching behavior. (Md. Abdullah Al Jamil & Hasan,

2015)

Social Circle: According to various researches associated with the telecommunication

industry and consumers’ switching patterns, major social impacts, such as the influence of family

and friends, influence consumer switching behavior in one way or the other. Research suggests

family and friends are major influencers while selecting or switching to a certain cellular

network. Hence, social factor has been used as one of the independent variables in this study.

(Ahmad & Ahmad, Consumer Purchase Behavior in Cellular Service Sector, 2014)
1.2. Problem Statement

 To find out the underlying reasons of consumer switching behavior in cellular service

sector.

1.3. Purpose

This research study depends on the switching patterns and preferences of consumers with

regard to SIM cards. Ever increasing competition and easy availability of mobile telecom

operators, has made the analyzing and figuring out of factors that affect consumer switching

behavior imperative. This study highlights factors such as network coverage, tariff package,

social factors, and promotional activities with the existing cellular service provider.

1.4. Scope

 This study will only be restricted to students of Szabist in Karachi due to

convenience and limited time frame to conduct the research.

 The scope is thematic in nature since only four variables are chosen in order to narrow

down the scope of the research.

 The results can come in handy to the existing and potential marketers of the respective

industry. Moreover, this study can be extended to other geographical regions, focusing on

a particular cellular network as well.

1.5. Research Questions

1. What is the most preferred cellular service provider?

2. What are the key variables that provoke consumers to switch their cellular service

provider?
1.6. Research Objectives

 To find out the most preferred cellular service provider.

 To point out which determinant(s) influences switching patterns the most in Karachi.

1.7.Hypothesis

 H1: Tariff Package has a significant influence on switching behavior

 H2: Network Coverage has a significant influence on switching behavior

 H3: Social circle has a significant influence on switching behavior

 H4: Promotion has a significant influence on switching behavior.

1.8.Limitations

 The time allocated for this research is only 4 months, hence, time constraints

 The study will be conducted in Karachi, hence, geographical constraints

 The variables of switching behavior are limited to network coverage, price, social

factors, and promotion, since scope is thematic

1.9. Definition of Key Terms

1. Consumer Switching Behavior: Consumer-switching behavior refers to the act of

ceasing the usage of a certain product in search of another favorable product. (Mack)

2. Cellular Service Provider: Provider of networks in cell phones

3. Network Instability: Poor network coverage

4. SMS: Short Message Service

Research Methodology

2.1. Theoretical Framework

The research model of this study is similar to that of (Ahmad & Ahmad, 2014) The

independent variables of our research include, Network Coverage, Tariff Package, Social

Factors, and Promotion. We are measuring the impact of these variables on the dependent

variable which is consumer switching behavior.

Network Coverage

Tariff Package Switching Behavior

Social Circle

Promotion
Figure 1: Theoretical Framework

2.2. Research Design

The research design used in this study is descriptive. Deductive approach has been

followed, and this is a cross sectional study. The research model of this study is similar to that of

(Ahmad & Ahmad, 2014). It has been slightly altered in order to make it suitable for our study.

Quantitative methodology has been used. This is a primary research and data was collected by

administering structured questionnaires.

2.3. Procedure

 Structured questionnaires will be floated amongst students of Szabist.

 The target population of this research will consist of graduate and undergraduate students

of Szabist.

 Age: 18-35.

2.5. Sample and Sampling Method

 The questionnaires will be administered to 200 participants.

 The data is segmented according to various individual characteristics such as

demographics, educational level, and current cellular service provider.

 Non probabilistic convenience sampling method will be used.

2.6. Instrumentation

A questionnaire will be adopted from a previous research carried out by (Ahmad

& Ahmad, 2014) and will be used as a research instrument for this study. Five points Likert

rating scale ranging from Strongly Agree (5) to Strongly Disagree (1) will be used to assess

the variables.

2.7. Statistical Modeling Tool

The statistical technique used for data analysis will be multiple regression analysis.

IBM Software SPSS will be used for data analysis.

Ahmad, Z., & Ahmad, J. (2014). Consumer purchase behavior in cellular service sector of
pakistan. IOSR Journal of Business and Management (IOSR-JBM) , 16 (5), 62-75.

Jamil, M. A., Sunny, M. S., & Hasan, M. R. (2015). Factors Influencing the Behavior of the
Mobile Phone Users to Switch Their Mobile Telecommunication Operators in
Bangladesh. International Journal of Trade & Commerce-IIARTC , Volume 4, No. 1 .

Kotler, P., & Armstrong, G. (2010). Principles of marketing.Pearson Education.

Karani, K. G., &Fraccastoro, K. A. (2010). Resistance to brand switching: The elderly

Mack, S. (n.d.). Consumer-switching behavior refers to customers abandoning a product or

Md. Abdullah Al Jamil, M. S., & Hasan, M. R. (2015). Factors Influencing the Behavior of the
Mobile Phone Users to Switch Their Mobile Telecommunication Operators in
Bangladesh. International Journal of Trade & Commerce-IIARTC , Volume 4, No. 1 .
Pakistan Telecommunication Authority. (2015).