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1. INTRODUCTION
1.1 Introduction
The dramatic growth in the recent years has changed cellular phone industry and the
cellular phones have moved beyond their fundamental role of communication. In
today’s scenario, consumers continuously want more out of their phone i.e. they use
their phones to listen music, play games, read news headlines, access the internet,
check their bank balance and more (Kavita and Chopra, 2011). Due to this dramatic
growth, the cellular industry all over the world has been witnessing fall in the costs of
cellular services, very high growth rates in subscriber base, and increasing competition
and deregulation. For developing countries in particular, cellular services are becoming
a very significant proportion of the overall telecom infrastructure (Dutta and Sridhar,
2003). The increasing competition in cellular service industry may be for the purpose of
attracting consumers towards the firms because consumers are the main source of
profitability of the firm (Parhizgar, 2002).
According to Rahman, et al. (2010), the service providers are offering most
sophisticated mobile services with an expanding number of value added services such
as Short Message Service (SMS), Wireless Application Protocol (WAP), subscription
services (SS), General Packet Radio Services, and Third Generation services, which
will help to attract consumers and the influence their buying behaviour. This value
added services are increasing the level of consumers’ expectations from service
provider and if the service provider is unable to meet these expectations then, the
consumers considers switching to competitors services. The switching behaviour of the
consumers will significantly affect the revenues, service continuity, and market share of
the firm (Oyeniyi and Abiodun, 2010). Therefore, in order to prevent consumers from
switching to competitors, the service providers are forced to add new schemes, offers,
technological advancements, and benefits with the services (Satish, et. al., 2011).
Cellular services have become the main source of growth in telecommunication sector
in India. The flexibility offered in communications and falling tariffs are playing a
significant role in popularising mobile communications (Rao, 2007). According to
Paulrajan and Rajkumar (2011), in the last decade, the mobile revolution has played a
significant role in the growth and development of Indian economy. As the number of
cellular service providers are continuously increasing, it is expected that the Indian
telecom industry will grow at a compound annual growth rate (CAGR) of 15.8 percent
between 2010 and 2014 and will touch revenues of $82 billion (377,683 crore INR)
(telecomleads.com). The Indian cellular consumer market is expected to double its
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subscription base by 2015 when compared to present subscriptions (press trust of
Indian, 2011).
According to Kumar, et. al. (2011), the earnings and profitability of the company will be
highly affected, if it loses even a single consumer, as it can cost five times more to
acquire new customer than to retain an old customer. Therefore, in order to retain the
old consumers and reduce the rate of consumers from switching to competing service
providers, it is very important to study the factors that influence consumer behaviour in
terms of switching between the cellular service providers.
1.2 Problem statement
As the telecom sector is rapidly growing in India, due to the industry attractiveness,
new players are entering into the industry and making it more competitive, adding more
options for the consumers to switch between the cellular service providers. As the
study of Oyeniyi and Abiodun (2010) indicates that, the consumer switching behaviour
will affect the cellular service providers in terms of lowering market share, revenues
and consumer base of the firm. Therefore, the research is carried out on the topic of
consumer switching behaviour which could help the cellular service providers to
understand the reasons or rationale behind switching behaviour of consumer in cellular
services.
This research is targeting young adults aged between 18 to 35 years because India
has one of the largest youth population in the world and cellular services are one of the
services which would be interesting to them (Levi, 2007). Young adults are in general
more frequent mobile phone users than elderly people (Weslund, 2006). According to
Ericson (2004), young people are showing again and again that they are willing to
experiment with new services and that they define new uses for mobile services. It has
been indicated that young people are the heaviest users of mobile technology and are
highly desirable demographics because of their discretionary buying power (Miller,
2004). Therefore, it becomes very important for the cellular service providers to
understand the factors which influence this group of consumers to switch their service
provider because understanding this factors can help the company to maintain existing
consumers and win the new consumers which increase the consumer base of the firm
which in turn provides the opportunity to increase profitability and market share of the
firm.
In this research, sample is selected from Bangalore city located in Karnataka, South
India because it has a strong base in telecommunications and other industries. It is
also known as the science and technology capital of India, (Yue, et al., 2001). Due to
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the rapid increase in telecom industry in India, the major cities including Bangalore
have registered new records in the sale of telecom services. Bangalore is one of the
cities with leading telecom directory in India and also one among the cities which are
the main telecom business centre of India (indiahousing.com). The major cellular
service providers in India such as BSNL (Bharat Sanchar Nigam Limited, MTNL
(Mahanagar Telecom Nigam Limited), Reliance communications limited, Tata Docomo
limited, Bharti Airtel, Vodafone Essar, Aircel and others have initially targeted big cities
including Bangalore for the launch of new telecom services such as third generation
(3G) mobile services (articles.economictimes.indiatimes.com). Therefore, this research
carried out in Bangalore city could help the cellular service providers to understand the
factors responsible for consumers switching behaviour. It will help the service providers
to offer the services according to consumer requirements, which in turn will help the
companies to prevent consumers from switching the cellular service provider and gain
loyalty and competitive advantage in order to compete in the rapidly increasing
competition scenario in Bangalore city.
1.3 Justification of the study
This study will make several contributions to the marketing literature from both a
theoretical and a managerial. Firstly, this study will contribute to the marketing literature
by providing an empirical examination of several service marketing constructs. The
results of this research can help the cellular service providers to have the deep
understanding about the factors that influence the consumers to switch between the
different service providers in cellular service industry.
Secondly, this study will benefit marketers and practitioners in the cellular service
industry. This research will identify the most important factors that cause customers to
switch or stay with a cellular service provider. This knowledge can make a contribution
to enhancing long-term customer relationships with customers. In addition, the
managers of the cellular service company can utilise this knowledge to prevent
potential customers from switching service providers. From the perspective of the
cellular service providers, that are attempting to attract new customers, this information
will enable cellular service providers to develop strategies to overcome switching
barriers and gain market share (Colgate & Lang, 2001). As Hennig-Tharau and
Hansen, (2000) states that, learning from the consumer switching stories, companies
can improve the services to avoid future switching behaviours.
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1.4 Research Aim and Objectives
The research is designed to address the following aims and objectives. The broad aim
of the research is to explore and examine the factors that determine the consumers
switching behaviour of young adults (aged 18-35 years) in cellular service providers.
The objectives of the research are as follows.
1. To investigate the factors that influence consumers to switch the cellular service
providers.
2. To critically evaluate the most and the least significant factors that influence
consumers switching behaviour in cellular services?
3. To investigate the likeliness of consumers to switch from current cellular service
provider to another.
1.5 Research questions
The desired objectives of the research will be accomplished by addressing the
following research questions.
 What are the situations which influence consumers to switch their cellular
service provider?
 What is the effect of consumers switching behaviour on the cellular service
providers?
 What is the percentage of customers who are willing and unwilling to switch
their current service provider?
 What measures have to be taken to reduce the rate consumers switching
behaviour?
 What are the steps to be taken to retain and gain customers?
1.6 Research Overview
This research has been split into five main chapter; Introduction, literature review,
methodology, findings and analysis, and conclusion and suggestions. The overview of
each chapter is given below.
1.6.1 Chapter 1: Introduction
In this chapter, firstly the telecommunications industry has been introduced indicating
the impact of development and change on cellular service providing companies in
relation to the consumers. Then the justification has been given about how this
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research contributes to business or management. Lastly, the aim, objectives and
questions has been explained in this chapter.
1.6.2 Chapter 2: Literature review
In this chapter, the existing literature on relevant theories and researches has been
explored. The key theories and researches relating to the topic of ‘consumer switching
behaviour in cellular service provider’ have been discussed in order to gain both
theoretical and practical knowledge of this research. The main purpose of discussing
relevant theories and researches is to explore the factors that help to achieve the
objectives of this research. The literature review includes studies of many researchers
such as Richard Lee and Jamie Murphy (2005), Inger Roos, Bo Edvardsson, and
Anders Gustafsson (2004), and others. The discussion is based on marketing concepts
relating to the topic of consumer behaviour in terms of switching cellular services. The
major factors including service quality, price, switching costs, technological
advancements, advertising, social influence (reference groups), and involuntary
switching, that are mainly responsible for consumers switching behaviour in cellular
services have been discussed. Then, on the basis of these factors, the hypotheses
have been developed in this chapter.
1.6.3 Chapter 3: Research Methodology
This chapter explains and justifies the research methodology undertaken to carry out
this research. The different research methods have been discussed in this chapter and
the one which are assumed to be appropriate to achieve the objectives are chosen and
its impact on this research has been explained. The research methodology includes the
studies of many researchers such as Denscombe (2003), Saunders (2009),
Denscombe (2003), Kumar (2005), and more. The research methodology starts with
explaining the meaning of business research, then the research
paradigms/philosophies (interpretivism and positivism), research methods (quantitative,
qualitative, and triangulation), sampling (probabilistic and non-probabilistic), and data
collection (primary data and secondary data) have been discussed simultaneously with
chosen methods and its impact on this research. And then the undertaken data
analysis method and limitations of this research has been discussed in this chapter.
1.6.4 Chapter 4: Findings and Analysis
This chapter explains the findings drawn from the collected data through
questionnaires and presented in the form of tables and charts. Then those findings
have been analysed using different statistical tests such as descriptive statistics,
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regression analysis, and correlation analysis in order to show the relationship between
the variables and draw the results. Then, on the basis of the tests and results, the
hypotheses have been tested followed by discussion and implication of the results of
each hypothesis in order to answer research question. Finally, the results of the
hypotheses are summarised and different switching factors have been ranked in terms
of their significance level in order to achieve research objectives.
1.6.5 Chapter 5: Conclusion and Suggestions
This chapter provides the brief summary of the whole research and also provides the
suggestions for further research, which can help the other fellow researchers who wish
to take this research to further end. The suggestions may also be helpful for the cellular
service providing companies operating in the area where the research has been carried
out.
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2. LITERATURE REVIEW
2.1 Introduction
This chapter explores the literature on relevant theories and researches which help to
gain both practical and theoretical knowledge and understanding of the topic of
consumer switching behaviour in cellular services. The theoretical concepts and
researches explored in this chapter also includes the debates made by previous
researchers on similar topics, which significantly contributes to have better
understanding about the objectives of this research i.e. the factors that influence
switching behaviour and decisions of consumers in terms of cellular service providers.
The literature review firstly explains impact of marketing in relation to cellular service
industry, and then the main concept of this study has been discussed i.e. consumer
switching behaviour including the major factors that determine consumers’ switching
behaviour (switching determinants) in cellular services such as service quality, price,
switching costs, change in technology, advertising, social influences and involuntary
switching. Lastly, the hypothesis has been developed on the basis of the literature.
2.2 Marketing
According to Kotler, et al. (2009:6), ‘’marketing is a customer focus that permeates
organisational functions and processes, and is geared towards marketing promises
through value proposition, enabling the fulfilment of individual expectations created by
such promises and fulfilling such expectations through support to customers’ value-
generating processes, thereby supporting value creation in the firm’s as well as its
customers’ and other stakeholders’ processes’’.
Today, Marketing must not be understood in the old sense of making a sale – ‘’ telling
and selling’’, but in the new sense of satisfying customer needs (Kotler and Armstrong,
2008:7). This implies that, if the companies want to gain long-term benefits from its
customers, they have to understand marketing in the new sense of satisfying customer
needs. If the companies are able to satisfy the needs and expectations of its
customers, then customers will repurchase the products or services of a particular
company i.e. they exhibit loyalty towards the company, regardless of competitors’
efforts to distract customer attention towards them.
With respect to service marketing, Lovelock and Wirtz (2007), defines services as the
economic activities which one party offers to another, most commonly employing time-
based performances in order to bring about desired results in recipients themselves or
in objects or other assets for which purchasers have responsibility. Customers of
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service expect to obtain value from access to goods, facilities, professional skills,
network, and systems; but there is no transfer of ownership of any physical elements is
involved.
Muddie and Pirrie (2006), identified four basic characteristics of services i.e.
intangibility, inseparability (simultaneous production and consumption), variability
(heterogeneity) and perishability. He also argued that marketing activity is normally
structured around the ‘4Ps’ i.e. product, price, promotion and place; but the distinctive
characteristics of services requires 3 more Ps in addition i.e. people, physical evidence
and process.
Considering the cellular services Kapoor, et al. (2011:337) states that, the services
provided by several companies are generally similar in their nature, therefore the only
way a service provider can make a mark on the consumers is by way of distinguishing
the physical evidence, people, and process attached to services of the company. For
example, the customer needs has to be served differently in terms of non-disruptive
connectivity, value additions in physical evidences, and the courteous services by the
people involved in rendering these services.
In regards to the current scenario of telecom services marketing in India, Kapoor, et al.
(2011:344) asserted that, the telecom services are facing a very dynamic marketing
situation with the international and global companies making their presence felt in the
Indian telecom markets. For example, with the entry of Virgin mobiles, Vodafone, and
many other international players, the customer has suddenly been placed as the main
beneficiary in the telecom scenario.
Schiffman, et al. (2008) stated that, consumer behaviour is a root of marketing concept.
Therefore, the concept of consumer behaviour in terms of switching in cellular service
industry has been discussed below because it may be significantly important for the
cellular service providers to understand the grounds in which consumers’ exhibit
switching behaviour in order to gain understanding on consumers’ needs and
expectations, and the ways for satisfying them. It can enable cellular service providers
to reduce the risk of customers switching from one cellular service provider to another,
as the success or failure of the company may depend on its consumers.
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2.3 Consumer switching behaviour
2.3.1 Consumer behaviour
According to Loudon and Betta (1993), consumers are those individuals who purchase
goods or services for the individual or household consumption purpose. They defines
consumer behaviour as ‘’the decision process and physical activity individuals engage
in when evaluating, acquiring, using, or disposing of goods and services’’. Similarly,
Hoyer and Macinnis (2010:3), defines consumer behaviour as ‘‘the totality of
consumers’ decisions with respect to the acquisition, consumption and disposition of
goods, services, activities, experiences, people and ideas by decision-making over
time’’. A simplified framework proposed by Khan (2007), in the figure 2.1 helps to
understand the concept of consumer behaviour more clearly.
Figure 2.1: Simplified framework of consumer behaviour
Adapted from Khan (2002), Consumer Behaviour.
The study of consumer behaviour helps the companies to improve their marketing
strategies by understanding the issues described as follows
(consumerpsychologist.com).
 How the psychology of consumers thinks, feel, reason, and select between
different alternatives.
 How the psychology of consumers is influenced by the environment (for
example; family, friends, etc).
 How the behaviour of consumers while making buying decisions.
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 How marketers can adapt and improve their marketing campaigns and
marketing strategies in order to reach consumers more effectively etc.
Therefore, the above discussion on consumer behaviour implies that, in order to fulfil
the objectives of this research, it is very important to understand consumer behaviour
because in cellular services, different consumers behave differently under the same
situation, which can directly or indirectly make positive or negative impact on profits,
market share, etc. Consumer behaviour in terms of switching is an important aspect for
the service companies. Due to the fast changing nature cellular telecommunications
industry, the cellular services consumers are often switching from one service provider
to another. Hence, it can be said that it is very important for the companies to
understand the reason behind consumers’ switching behaviour in order to compete,
gain market share, increase profitability and consumer base.
2.3.2 Switching behaviour
Switching in the context of consumer behaviour is referred to the times when consumer
chooses a competing choice rather than the previously purchased choice on the next
purchase occasion (Babin and Haris, 2011). Switching behaviour reflects the decision
that a consumer makes to stop purchasing a particular service or patronising the
service firm completely (Boote, 1998).
Satish, et al. (2011) argued that, consumers exhibits switching behaviour based on
their satisfaction level with the service provider. Conversely, the study of Roos (1998)
indicates that, even though customers may express their dissatisfaction, they
nevertheless frequently seem to switch service provider. Consumer satisfaction is
developed on the information from all previous experiences with service provider.
Customer wants and expectations are changing or increasing all the time (Paulrajan
and Rajkumar, 2011). In telecommunications industry customer bring high expectations
from its service providers Roos (1998) and if the service providers are unable to meet
these expectations then customers will take their business to somewhere else.
Therefore, it can be argued that the cellular service providing companies need to
consistently monitor and fulfil the changing wants and expectations in order to satisfy
them and prevent them from switching.
Customer satisfaction does not necessarily lead to loyalty. However, customers’ loyalty
is strengthened towards the service provider, when they are satisfied (Satish, et al.,
2011). Similarly, Fill (2005) argues that, if there is decrease in the consumers’
satisfaction level then loyalty may be lost and the complex switching behaviour occurs.
According to Brown and Chen (2001), some studies suggest that customer satisfaction
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is an important antecedent of loyalty. Customer loyalty is influenced by customer
satisfaction and a loyal customer base is the real asset for a company.
Customer loyalty has a powerful impact on organisation’s performance and most of the
companies consider it as a source of competitive advantage. It increases revenue,
reduces customer acquisition costs, and lowers the costs of serving repeat purchasers,
which leads to greater profitability. Customers may avoid switch and remain loyal to
service provider, if they feel that they are receiving greater value than they would
receive from competitors (Lam, et. al., 2004). Oliver, (1999) stated that consumer
loyalty is a deeply held commitment to re-buy or repurchase a preferred service
consistently, regardless of situational influences and marketing efforts that have the
potential to cause switching behaviour. Customer loyalty is an important factor that
contributes to the firm’s profits, earnings and reduces defection rates (Duncan and
Elliot, 2002).
Considering the points raised by researchers relating to customers satisfaction and
loyalty which is discussed above, it can be noted that customer satisfaction is very
important factor and high responsible for gaining customers loyalty towards the firms.
Hence, cellular service providers have to to satisfy its consumers in every aspect
relating to their services and because if they fail to satisfy its consumers, then
consumer loyalty may be lost and they may consider switching their service provider
which in turn may bear loses for the firm. The impact of consumer switching or
defection on the firm is discussed below.
The study of Oyeniyi and Abiodun (2010) indicates that, the revenues and service
continuity could be significantly affected by customers’ defection or switching.
Reichheld and Sasser (1990) states that reducing customer defections by five per cent
increased profit by seventy five per cent. Defections have stronger impact on
profitability than unit costs, market share and more.
According to Bansal and Taylor (1999), the service providers are becoming more
concerned about customer retention because of the negative effects of customer
switching such as reduced market share, impaired profitability, and increased costs.
The service providers should carefully manage consumer retention because on the one
hand it is costly to retain a customer and on the other hand, all customers do not
generate same value to the firm and therefore it is not efficient to retain all customers
(Lopez, et. al., 2006). Thus, it can be understood that, for the cellular service providers
it is very important to carefully retain consumers because they are the main source to
generate potential profits and add value to the firm. If the firm fails to manage
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consumer retention then, it may result in losing consumers loyalty towards the firm and
the rate consumers switching between the cellular service providers will be increased.
According to Colgate and Danaher (2000), relationship marketing has gained
increasing importance due to its benefits for both firms and the customers. The
strength of relationship between the service provider and consumer may encourage
consumers to switch or to stay with current service provider. For example Gwinner, et.
al. (1998), argued that consumer will commit themselves to service provider by
establishing, developing and maintaining relationships that provides superior valued
benefits. Similarly, the study of Colgate and Lang, (2001), shows that if consumers
switch from one service provider to another, then they may lose the benefits that are
available from the current service provider. Conversely, the study of Lopez, et. al.
(2006) indicates that building long-term relationships with consumers increases
profitability and their future viability for the firms. Hence it can be said that, the service
provider should give careful consideration to maintain long-term relationship with
consumers in order to reduce the risk of consumer switching from one service provider
to another.
Bansal and Taylor (1999) states that switching leads to negative outcome for the firm
which also involves replacing or changing the current service provider with another
service provider. Similarly, the study of Lee and Murphy (2005) indicate that,
consumers with negative service experience switch or consider switching to another
service provider. Therefore, it is significantly important to understand the major factors
that influence or determine consumers’ behaviour to switch cellular service providers
and decisions to buy cellular services for the purpose of retaining consumers and
reducing the rate of consumers switching from one service provider to another. It
enables the cellular service provider to gain competitive advantage which in turn helps
to generate revenues, increase market share and consumer base of the firm.
2.3.2.1 Switching determinants
According to Lee and Murphy (2005), there are several factors that determine
consumers to stay with their current service providers or to switch. Some of the
important factors which determine switching are:
 Price is rated as the most important reason for switching.
 Brand trust leads to commitment towards brand, which then reduces the
consumers’ behaviour to switch the service provider.
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 Switching costs are also important switching determinant because switching
costs such as monetary loss and uncertainties with new service provider deter
switching regardless of dissatisfaction.
 Reference Groups which plays a significant role in influencing consumer to
switch the service provider in order to conform to others, norms, broad values
and behaviour.
Roos and Gustafsson (2007) states that, customers switch the service providers for
many reasons such as existing service provider no longer meets its customers’ needs
because of their changing circumstances or customers are getting better offers from
the competitors or customers wanting some variables. According to Mallikarjuna, et al
(2011) these reasons/determinants for consumer switching behaviour can be classified
into eight general categories – inconvenience, pricing, core service failure, service
encounter failure, response to service failure, competition, ethical problems and
involuntary switching. According to a classification given by Bruhn and Georgi (2006),
reasons for switching can be divided into three groups:
1. Customer-related switching reasons are concerned with customer characteristics
with a more or less direct connection with the service provider. Characteristics
concerns customers age, sex, preferences, lifestyles, etc and are directly connected
to customers’ needs (Bhrun and Georgi, 2006)
2. Provider-related switching reasons are closely connected to cause customer
retention and it is concerned with perceived service quality and customer
satisfaction. Service prodders can easily manage this category of reasons. It is the
most important source for avoiding customer defection (Bhrun and Georgi, 2006).
3. Competition-related switching reasons lead to customer defection because
consumer behaviour not often depends on the current service provider and its
service but also on its competitors. For example, when a mobile phone customer’s
basic criterion of buying is price, and then they compare the price system of their
current service provider and other provider (Bhrun and Georgi, 2006).
Roos, et al. (2004) stated that, customers own expressions of reasons for switching are
known as switching determinants. The reason for switching may be due the service
provider’s poor knowledge about how customers changing situations influence their
needs. The study of Lee and Murphy (2005) indicates that, in subscription market such
as telecommunications, consumers exhibit complete loyalty to one service provider and
often over long period. They also state that consumer subscribe to mobile services with
no initial intention to switch and remain completely loyal until triggers change them from
being loyal to switching or intending to switch the service provider. As there are number
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of determinants which relates to loyalty and switching, this transitions may be due to
changes in underlying determinants, new determinants coming into play, or both (Lee
and Murphy, 2005). Some of the important factors that determine consumer switching
behaviour in cellular service industry have been discussed below to gain the
knowledge about underlying facts of those factors for the purpose of achieving the
objectives of this research.
2.3.2.1.1 Service quality and its dimensions
2.3.2.1.1.1 Service quality
Service quality as perceived by customers is defined by Zeithaml, et. al., (1990), as
‘’the extent of discrepancy between customers expectations or desires and their
perceptions’’. Bansal and Taylor (1999), favourably available that service quality is the
consumer’s judgement about a firm’s overall excellence or superiority. Perceived
service quality is obtained from the viewpoint of a consumers’ attitude towards to judge
the overall service prevision (Spathis, et. al., 2004). Lewis (1989) argued that,
perceived service quality is the judgement of consumers which is derived after
comparing between their expectations of service and the perceptions of actual service
performance.
Many researches revealed that there is a close relationship between service quality
and customer satisfaction which leads in influencing consumer behaviour. For instance,
according to Lee and Murphy (2005), existing literature suggests that improving service
quality satisfies customers and retains their loyalty. And the customers with negative
service experience may switch their service providers.
With regards to Cellular services, the study of Paulrajan and Rajkumar (2011)
indicates, that service providers are expected to compete on service quality and price,
as it is very important for service providers to meet consumers’ expectations in terms of
service quality. Services mainly depend on some factors and consumers buy services
which has many attributes in order to fulfil their desires. In cellular mobile markets,
customers carry high level of expectations from its cellular service providers in terms of
communication and if the service providers are unable to meet customers’
expectations, then it could result in customers switching their cellular service providers.
For example, the study of Paulrajan and Rajkumar (2011) indicates that, in today’s
scenario, cellular mobile has became a very important part for our daily communication
and customers buy the cellular mobile for instant communication and various services.
However, many researches indicate that the dimensions of service quality play a
significant role in determining service quality of the firm.
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2.3.2.1.1.2 Dimensions of service quality
According to Cronin and Taylor (1992), service quality is a multi-dimensional or multi-
attribute construct. However, Gronoos (1990) noted that, there are three dimensions of
service quality i.e. functional dimension (process), technical dimension (outcome), and
image (corporate image). According to the study of Kang and James (2004), the
customers perceives service quality as what they receives as the outcome of the
process in which the resources are used i.e. technical dimension. But more often and
importantly customers perceives service quality as how the process itself functions i.e.
functional dimension. Customers bring their past experiences and overall perceptions
of a service firm to each encounter because they often have continuous contact with
the same service firm i.e. image dimension (Gronoos, 2001). Brady and Cronin (2001)
argued that, there is no general agreement as to the nature of the dimensions of
service quality.
Service quality dimensions with regards to cellular services providers include call
quality, call drop rate, geographical coverage, call forwarding and waiting, short
message service, mobile entertainment, complaint redressal system and others
(Paurajan and Rajkumar, 2011).
Considering the above discussion on service quality and its dimensions, it can be
therefore understood that, in the scenario of increasing competition in cellular service
industry, it is very important for the cellular service providers to continuously monitor
and improve service quality in order to meet the changing expectations, desires or
wants of consumers in terms of service quality for the purpose of satisfying consumers.
It is also very important for the cellular service providers to understand the impact of
service quality which is playing a significant role in consumers’ switching behaviour in
cellular service industry. This helps to gain consumers loyalty towards the company. It
can also help cellular service providers to reduce the rate of consumers’ switching from
one service provider to another, and retain and attract consumers towards the firm.
Ignorance of understanding the impact of the factors relating to service quality may
lead to lose the potential consumers, which in turn will have negative impact on the
firm.
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2.3.2.1.2 Price
From the marketing point of view, researchers have recognised the importance of price
in affecting the behaviour of existing customers (Lemon, 1999). In most of the studies it
was found that price is the most important factor which affects customer to switch
loyalties to competing service provider (Satish, et al., 2011). Roos, et al. (2004)
favourably argued that price play a key role in consumers decision making to switch
service provider. Similarly, the study of Krishna, et al., (2002) indicate that, comparing
the price charged by current service provider with that of competitors, consumers
influences perceived savings. For example (Polo and Sese, 2009), when the price of
current service provider is high, consumers perceived savings from switching will be
high, as they would benefit from better pricing offered by competitors. The consumers
monetary saving will be high from switching the service providers when the
competitors’ prices are low (Polo and Sese, 2009). Polo and Sese (2009) also argued
that, competitors will use price to stimulate consumer switching behaviour. Hence, it
implies that the cellular service providers are more interested in attracting customers of
their competitors in order to increase market share, profitability, and consumer base of
the firm. Due to the competitor’s prices, the consumers are encouraged to switch the
cellular service provider by which the consumers can save money. However, this type
of competition may affect the revenues of not only one but both the competiting firms.
According to Bolton (1998), and Drew (1991), price is one of the most important
determinant which influence switching intentions in telecommunications industry.
Pricing factor include all critical switching behaviour that involved rates, fees, service
charges, price promotions, and others (Keaveney, 1995). For example, in
telecommunications sector, price may include call rates, subscription fees, roaming
charges, etc. The study of Keaveney (1995) revealed that, more than half of the
customers switched because of the poor price perceptions and suggested that
unfavourable price perceptions directly influence customers’ intentions to switch.
Therefore, in the context of cellular service industry, it can be assumed that, high price
or unfavourable price if the services (the price, which the consumers do not agree or
perceives it as unworthy to pay for the particular services or firm) can have negative
effect on consumers and may influence them to switch between the cellular service
providers.
The study of Lehtinen and Lehtinen (1991) indicates that, price plays a vital role in
telecommunications market, especially in cellular service providers. They also stated
that a price dominated mass market leads to customers having more choices and
opportunities to compare the pricing structures of different service providers. Hence, it
17
indicates that the companies which offers low price for the services may be able to
attract more customers, gain loyalty, and retain lost consumers. This can also help to
reduce or prevent consumers from switching their cellular service providers.
In the study carried out by Paulrajan and Rajkumar (2011), it was found that price has
significant positive impact on consumer perception in terms of selecting the
telecommunication service providers. However, Dutta and Sridhar (2003) argued that
price has both positive and the negative effects such as, in price-cap regulated market
the service providers use appropriate pricing strategy to win customers and market
share on one side. And on the other side, for example, in India which is highly price-
elastic market the cellular service providers reduce prices which may lead to increase
in subscribers base and so is the network traffic. This increased network traffic
decreases the performance and lowers service quality, inviting customers to switch the
service provider (Dutta and Sridhar, 2003). Hence, it can be understood that price
plays a significant role in influencing consumers buying decisions of cellular services
and it can also influence consumers switching intentions. It implies that cellular service
providers have to pay careful attentions on pricing their services because on the basis
of the above discussion, it can be said that consumers are very sensitive to price.
According to Pan (2009), Bharti Airtel, the biggest mobile operator in India, has
requested that TRAI (Telecom Regulatory Authority of India) to explore the business
models of companies that provide low-cost service to attract the new users. This was
the first time when the company has expressed the concerns over the ongoing low-
tariff initiated by Tata DoCoMo, one of the major competitor, when it had launched per
second billing plan in India. Bharti Airtel has urged the regulator to investigate the
predatory pricing plans adopted by telecom operators, which are increasing
competition in the country. For example, Indian cellular service providers, are offering a
variety of service plans as a means to attract new customers such as pre-paid calling
schemes, discounted call rates at evening and night time, discounted roaming charges,
free or minimum activation fee, discounted mobile-to-mobile call rates for long distance
calling, and free SMS messaging service (Dutta and Sridhar, 2003). Therefore, it can
be said that this might be one of the reason for increased competition among cellular
service providers to win customers by offering services on reduced prices which
therefore influence customers to switch the service providers because if the consumers
perceive that the competitor’s price is better than the current cellular service provider,
they considers switching. So, the cellular service providers have to way out the non-
pricing competition strategies to win customers.
18
2.3.2.1.3 Switching costs
Burnham, et al., (2003), defines switching costs as ‘the onetime costs that customers
associate with the process of switching from one service provider to another’. Switching
costs can be categorised in different ways such as Fornell, (1992) summarises
switching costs into search costs, transaction costs, learning costs, loyal customer
discounts, customer habit, emotional cost and cognitive effort, coupled with financial,
social and psychological risk. Similarly, Burnham, et al. (2003), classified switching
costs into procedural switching costs, financial switching costs and relational switching
costs. And Klemperer, (1995), describes switching costs as artificial costs, learning
costs and transactional costs. Switching costs protect firms from short-term fluctuations
in service quality and provide flexibility to charge prices above marginal costs, to a
certain point without fear of losing customers (Shy, 2002).
There are many researches that investigated the relationship between switching cost
and consumer switching behaviour. For example, Fornell (1992) states that switching
cost can help to prevent switching behaviour by making it costly for consumers to
change the service providers. High switching costs discourage consumers to leave the
current service provider because the consumers may perceive switching costs to be
higher than the expected benefits of switching the service provider (Lee, et. al., 2007).
Cross-industry findings of Burnham, et. al. (2003), indicate that switching costs, such
as monetary loss and uncertainties with the new service provider, deter switching
despite dissatisfaction. Similarly Gronhaug and Gilly, (1991), states that high switching
costs may tend even the dissatisfied customers to remain loyal.
An alternative to increasing customer retention and improving profits is to create
switching costs that make it difficult for customers to switch to competing service
providers (Klemperer, 1995). It was noted that if the switching costs are too high then
consumers prefers to stay with current service provider even if they are dissatisfied
(Gronhaug and Gilly, 1991). Hauser, et al. (1994) stated that when switching costs are
high, consumers become less sensitive to satisfaction level. Therefore, it can be
understood that switching costs in terms of time, money and efforts acts as a significant
barrier to switching when the consumers are dissatisfied with current service provider.
With regards to cellular telecommunication services, switching costs are defined as
loss cost, adaptation cost and move-in cost. Loss cost refers to the perception of loss
in social status or performance, when cancelling a contract with current service
provider; adaptation cost refers to perceived cost of adaptation, such as search cost
and learning cost; and move-in cost refers to the economic cost which is involved in
19
switching to a new service provider, such as purchase of SIM card and subscribers fee
(Kim, et al., 2004).
According to Paul de Bijl and Peitz (2002), switching costs with regards to
telecommunications market, the subscription of a consumer is valuable beyond the
profits stemming from that consumer in the current period, because there are lock-in
effects. Namely, a consumer suffers monetary or non-monetary disutility from switching
service providers. Switching costs may be advantageous to early arrivals and
disadvantageous to late arrivals, because initial market share is valuable. The
presence of consumer switching costs might lead to higher profits. If consumers are
aware of the lock-in effects then the companies possibly have to attract consumers by
low prices and if the consumers are ignorant about lock-in effects then the companies
have an advantage to build up market share as soon as possible because this allows
them to extract profits from these consumers (Paul de Bijl and Peitz, 2002).
In India the costs of switching from one cellular service provider to another is going
down rapidly. In the beginning, changing the service provider also meant losing the
number. But now, Mobile Number Portability (MNP) service was recently launched in
India in January 2011. It allows consumers to switch from their current service provider
to new service provider by retaining their current mobile number by paying just 19
Indian Rupees (telecomtalk.info). Therefore, it can be implied that switching cost is very
low and consumers can easily afford to switch, if they feel so. It leads to increase in
numbers alternatives and also added flexibility to the consumer to switch between the
service providers with low switching costs. These low switching costs are also forcing
cellular service providers to become more competitive in order to win the customers,
market share, and profitability.
2.3.2.1.4 Changes in Technology
As technology is advancing at a rapid pace, cellular service providers are scrambling to
keep up with customer needs and in the process trying to distinguish themselves from
the competitors. According to Sindhu (2005), offering new services not only helps to
retain and gain customers but it also provides a means of generating greater revenue
from one customer. He also states that companies which do not offer services in
keeping with the technological trend ultimately end up with losing the customer to the
competitor that does offer the service. For example, MTNL (Mahanagar Telecom
Nigam Limited) was the first provider to launch 3G mobile service in India
(telecomtalk.info). It might have helped MTNL company to retain and gain customers
from its competitors through its new service, as the customers may be keen to use new
20
services that are in trend in the market. It is also able to generate more revenues by its
value added service i.e. 3G mobile service was not available from any other service
provider in India except MTNL.
Sindhu (2005) states that, not only service providers but cellular manufactures are also
trying to keep up with the trend by offering latest devices to the customers. For
example, the new technologies in smart phones in which there are number of
applications are made available by the manufacturers but the cellular service providers
should make the services available to its customers by which they can be access the
applications available in their phones or devices which were offered by the
manufacturers. Sindhu (2005) states that, the cellular service providers that tie up with
these manufacturers to offer the latest equipment along with enhanced services appear
to emerge as winners in today’s market.
In today’s scenario of rapid advancements in technology, as the cellular phone
manufacturers are adding advanced options or applications in the phones, the cellular
service providers are also forced to upgrade their services because of the increasing
needs and wants of customers. If the cellular service providing firm ignore this fact,
then the consumers may prefer switching to another service provider due to the
unavailability of value added services or advanced services despite the availability of
the core service which leads the company to lose its potential customers and may bear
potential losses for the firm in terms of revenues, market share, etc.
2.3.2.1.5 Advertising
According to Lee and Johnson (2005), advertising is a paid, non-personal form of
communication about the organisation and its products or services that is transmitted to
the target audience through mass media such as television, radio, newspaper,
magazines, direct mails, outdoor displays, etc. Cengiz, et al. (2007) states advertising
as the activities undertaken to increase sales or enhance the image of a service, firm or
business, and the primary aim of advertising is to inform the potential consumers about
the characteristics of products or services. In the scenario of intense competition,
effective advertising may help organisation to communicate to the target customers
more easily, effectively, and successfully.
According to Davies (1996), Advertising can strengthen the communication between
organisations and the consumers’, and help to reduce consumers’ perceived risks
effectively. Advertising can also affect consumers’ behaviour because it can provide
information to guide consumers’ purchasing decision. Similarly, Zou and Fu (2011),
states that advertising aims to influence the way consumers view themselves and how
21
buying certain products or service can prove to be beneficial for them. The message is
conveyed through advertising and tries to influence consumers’ purchasing decision.
Steuernagel (2000), states that advertising for cellular services can be found on radio
and television, and increasingly in national as well as local commercials, because of
the consolidation of the carriers and participation of national companies. Most of the
companies invest in ‘brand ambassadors’ for spreading positive message of the brand
(Yeshin, 2006). For example, in India, most of the cellular service providers are
investing on brand ambassadors and most of the brand ambassadors are famous
television actors for promoting their brands. These brand ambassadors are influencing
the audience to buy a particular brand by which most of the consumers are highly
influenced and switch from one service provider to other irrespective of its price,
quality, costs and other benefits. This may lead to increase in the rate consumer
switching the current service provider to the competitor by the influence of favourite
actors i.e. brand ambassadors.
However, the literature indicates the several effects of advertising on switching
behaviour, such as the study of Balmer and Stotvig (1997), indicates that effective
advertising competition may stimulate consumer switching behaviour because of
cellular service consumers’ have been informed about more opportunities for their
purchasing choices. Hence, efficient advertising could enhance consumers’ loyalty and
help retain consumers’ (Cengiz, et. al., 2007).
On the basis of above discussion relating to advertising, it can be understood that
advertising plays a significant role from influencing consumers decisions in terms of
buy cellular services, and it also influence consumers intentions in terms of switching
cellular service providers, as advertising makes consumers aware about the products,
offerings, benefits, and others factors which act as the source of influencing or
attracting consumers’ behaviour in favour of the firm.
2.3.2.1.6 Social influences (reference groups)
According to Rodriguez (2009), social influence is the widely accepted factor which
determines consumer behaviour. The members of social network heavily influence
most of the consumers in choosing the mobile service provider. Rodriguez (2009), in
her studies found that most of the consumers chose the same service provider as their
friends, family members or colleagues were using. Similarly, the study of Kasande,
(2008), indicates that social/reference groups which force consumer to match to others
expectations or standards, affects broad values, and other factors and influence
switching behaviour.
22
The study of Dasgupta, et al. (2008) indicates that, there is a relationship between
social networks or groups and switching behaviour in mobile telecommunications. They
used call graphs which was developed from a large amount of Call Data Records, and
showed that the tendency of subscriber to switch the service provider was influenced
by the number of members of social group who had already switched. It is likely that
the other members of social group of the switcher will also get defected.
Kasande, (2008), stated that the dissatisfied customers may express their feelings by
complaining, looking for alternatives or negative word of mouth. The study of
Wangenheim (2005), has explored customer behaviour after having switched a service
provider. It says that the customers express their disappointment about a dropped
service provider to others (social groups) in the form of negative word of mouth. The
word of mouth (WOM) has been recognised as an important force in marketplace,
influencing attitudes, preferences, purchase intention and decision making. He also
indicates that, it is important for the service provider to understand why or in what
situations the customers spread negative WOM after switching. Hence, it can help
cellular service providers to predict which customers are most likely to spread negative
WOM and represents ‘dangerous’ customer group if lost, because negative WOM
prevent potential new customers of the social group of dissatisfied customer from
choosing the service provider and it can also increases defection rate of current
customers.
Therefore, social influence or reference groups should be considered as one of the
important factor which influence switching behaviour and buying decisions of
consumers in cellular services. These are the groups which can influence the
consumers to buy cellular services of a company by expressing positive feeling or
experience with the service provider. They can also influence consumer switching
behaviour by expressing negative experience with the service provider. Hence, it can
be said that, the cellular service providers should be able effectively maintain the
relationships with its existing consumers, which could help the company to decrease
the rate of switching behaviour and also attract the social groups of existing
consumers. This increases the firm’s consumer base, revenues, and also its market
share.
23
2.3.2.1.7 Involuntary switching
According to Rajeev (2008) states that, there are three types of switching
determinants; influential triggers, situational triggers, and reactional triggers. He also
states that involuntary switching falls under the category of situational triggers. He
defined situational triggers as the changes in customers own lives which are not
essentially related to service provider and therefore consumers decide to switch when
they perceive that the service provider no longer reflects their reality. Therefore, it can
be said that the different changes may act as situational triggers such as changes in
work hours, financial status, location, and others which tend the consumers to switch
their service provider unintentionally.
Switching behaviour is occurred not only with the intentions to switch but also due to
the involuntary factors (Roos, 1999). The involuntary switching factors are not under
the control of both parties i.e. consumers and the service providers (Keaveney, 1995).
Hence, it can be implied that for example, relocation of house in area where the
services of current service provider are not available then the consumer is forced to
switch the service provider unintentionally because it is beyond the control of consumer
and service provider and it can put an end to service relationship despite satisfaction.
The latest wave of acquisition and mergers within this industry is another factor leading
to involuntary switching (Sidhu, 2005). For instance, the cellular service provider in
India, Idea cellular has acquired Spice telecommunications in 2008
(articles.timesofindia.indiatimes.com) by which the entire consumer base of Spice
telecommunications was forced to switch to Idea cellular. Therefore, it indicates that the
consumers are forced for switch their cellular service providers due to the
circumstances which are neither in the control of service provider, nor in the control of
consumers. Under this situation, both the cellular service provider and the consumer
will be unable help each other from exhibiting consumer switching behaviour.
2.4 Hypothesis Development
On the basis of the above discussed literature relating to the topic of this research,
following hypotheses have been developed to satisfy the objectives of the study.
H1: Service quality has a direct and significant effect on consumers’ switching
behaviour in terms of switching cellular service provider.
H2: Price has a direct and significant effect on consumers’ switching behaviour in terms
of switching cellular service provider.
24
H3: Switching costs has a direct and significant effect on consumers’ switching
behaviour in terms of switching cellular service provider.
H4: Changes in technology has a direct and significant effect on consumers’ switching
behaviour in terms of switching cellular service provider.
H5: Advertising has a direct and significant effect on consumers’ switching behaviour in
terms of switching cellular service provider.
H6: Social Influence (reference groups) has a direct and significant effect on
consumers’ switching behaviour in terms of switching cellular service provider.
H7: Involuntary switching has a direct and significant effect on consumers’ switching
behaviour in terms of switching cellular service provider.
2.5 Chapter summary
The above discussion has been aimed to provide the thorough understanding about
the factors that influence consumer behaviour in terms of switching cellular service
providers. For the purpose achieving the objectives of this study, seven most important
factors that can influence consumers switching behaviour in cellular service has been
explored on the basis of the literature. These factors are; service quality, price,
switching costs, change in technology, advertising, social influence, and involuntary
switching. In addition, the key arguments made by several researchers such as Lee
and Murphy (2005), Roos, Edvardsson and Gustafsson (2004), Keanvey (1995), etc
relating to these factors have been explored for the purpose of satisfying the objectives
of this research and making this research more reliable. Furthermore, the methodology
undertaken to carry out this research is discussed in the next chapter.
25
3. RESEARCH METHODOLOGY
3.1 Introduction
This chapter will elaborate the methodology employed to carry out this research. It
firstly defines the business research and then highlight research philosophies which
include interpretivism philosophy and positivism philosophy and then discusses the
chosen research philosophy i.e. positivisim philosophy. Then the types of research
methods including qualitative method, quantitative method, and triangulation method
have been explained and method taken for this research i.e. quantitative method has
been justified. Furthermore, the types of sampling methods which include probabilistic
and non-probabilistic sampling are explained and then the chosen sampling method i.e.
simple random sampling has been justified. Then, the types of data collection used in
this research (primary data and secondary data) have been discussed. Lastly, the data
analysis method undertaken for this research and the limitations of this research has
been discussed.
3.2 Business Research
Research can be defined as something undertaken in a systematic way to increase
and enhance knowledge (Saunders, et al., 2009). Cooper and schindler (2006), defines
business research as ‘’a process of planning acquiring, analysing, and disseminating
the relevant data, information and insight to decision makers in ways that mobilize the
organisation to take appropriate actions which in turn maximise business
performance’’. In relation to this, there are several things to be considered when
someone is undertaking a research, including research philosophies/paradigms.
3.3 Research Philosophy/Paradigm
According to Saunders, et al. (2009), research paradigm is defined as ‘basic belief
system or world view that guides the investigation, not only in choices of method but in
ontologically and epistemologically fundamental ways’. Research method is defined as
methods or techniques used by a researcher when performing the action of research.
However, research methodology is a way to systemically solve the research question
(Kumar, 2005). Methods refer only to the various means by which data can be
collected and/or analysed (Collis and Hussey, 2003).
26
According to Denscombe (2003), there are two types of research
philosophies/paradigms; interpretivism (phenomenology y) and positivism.
 Interpretivism philosophy can be defined as 'an approach that focuses how life
is experienced'. This research approach examines human experiences, and is
also 'characterised by a particular interest in the basics of social science'.
(Denscombe, 2003). Intrepretivism also refers to the construction of social
reality, seeing things from others' eyes, in which it has several significances in
social research. In this type of research, the researchers assumes access to
social reality and people experiences through social constructions i.e. language,
consciousness, shared meanings and instruments (Michel and Myers, 2008).
This type of research includes ethnography, interviews, participant
observations, conversational analysis, focus groups, and case studies (Lincoln
and Denzin, 2000).
 Positivism philosophy argues that knowledge of social world can be obtained
objectively and only the measureable data should be taken into account. Davies
and Parker, (2007) argues that, positivist research is a scientific method in
which after identification of problem data is collected. Furthermore, during the
positivist research, human behaviour is predicted on the basis of universal laws
and phenomenon. Positivist research includes questionnaires, secondary data,
and quantitative statistics.
Easterby-Smith et al. (1997), identify three reasons why the exploration of philosophy
may be significant with particular reference to research methodology: First, it would
help the researcher to refine and specify the research methods utilised in a study. This
is intended to clarify the overall research strategy used. This would include the type of
evidence gathered and its origin, the way in which such evidence is interpreted, and
now it helps to answer the research questions posed.
Understanding of research philosophy will enable and help the researcher to evaluate
different methodologies and methods and avoid inappropriate use and unnecessary
work by identifying the limitations of particular approaches at an early stage. Finally, it
may help the researcher to be creative and innovative in either selection or adaptation
of methods that were previously outside his or her.
The table 3.1 shows the differences between positivism and interpretivism
(phenomenological) research philosophy.
27
Positivist philosophy
Interpretivism
(Phenomenological)
philosophy
Basic Beliefs
The world is external and
objective
The world is socially
constructed and subjective
Observer is independent Observer is part of what is
observed
Science is value-free Science is driven by human
interests
Researchers’ Focus
Focus on facts Focus on meanings
Look for causality and
fundamental laws
Try to understand what is
happening
Reduce phenomena to
simplest events
Look at the totality of each
situation
Formulate hypotheses and
then test them
Develop ideas through
induction from data
Preferred Methods Include
Operationalising concepts
so that they can be
measured
Using multiple methods to
establish different views of
phenomena
Taking large samples Small samples investigated
in depth or over time
Table 3.1: Difference between positivism and interpretivism research philosophies
Adapted from: Mangan, (2004)
Positivism research philosophy is chosen for this study, due to the nature of data which
has been collected after identifying the problem in this research. This is particularly
relevant because the factors to determine consumers switching behaviour used in this
study are based on theoretical concepts and previous researches. Another reason for
28
choosing positivism philosophy is to obtain the data that can be easily measured in
order to convey the reliable results. Positivism philosophy is also chosen because of
the nature of this research, which is based on achieving the main aim of this research
by satisfying the objectives. Hence, it means that the research is objective rather than
subjective which is the theme of positivism philosophy. Therefore, on the basis of
theories and previous researches, seven hypotheses have been developed relating to
seven factors that were identified as the major factors that can make significant effects
on consumers switching behaviour. Then the hypotheses have been tested in order to
achieve the objectives of this research focussing on facts to gain the more specific
information relating to the situations in which consumers are influenced to exhibit
switching behaviour. Whereas, the interpretivism philosophy may be risky to adopt for
this research and may sometimes deliver inaccurate and unreliable results, if the
researcher makes even a negligible mistake in understanding the situations.
3.4 Research Methods
Research methods can be divided into three categories; quantitative methods,
qualitative methods, and triangulation methods.
 Quantitative research is based on the measurement of quantity or amount
(Kumar, 2005). This type of research is applicable to phenomena that can be
expressed by terms of quantity. On the other hand, qualitative research is
concerned with qualitative phenomena, phenomena relating to quality or kind.
 Quantitative research falls under empirical studies; which include more
traditional ways in conducting psychological and behavioural studies and it has
been a dominant method in researching social sciences (Kumar, 2005).
Quantitative designs include experimental studies, quasi-experimental studies,
etc in which control of variables, randomisation, as well as valid and reliable
measures are necessary if the research aim is to reach generalisability among
the research samples (Campbell and Stanley, 1963).
 Quantitative data can range from a short list of responses to open-ended
questions in an online questionnaire to more complex data such as transcripts
of in-depth interviews or entire policy documents. Qualitative data analysis
procedures including deductive and inductive approaches are used to assist
understanding the meanings. Qualitative approach allows researcher to have
“deeper understanding of organisational experiences and situations of
individuals” (Ticehurst and Veal, 2000). Observation, informal and in-depth
interviews altogether with observation can provide qualitative data. Qualitative
29
methods make use of limits the number of observations allowing deeper
understanding of the study.
 Whereas, in triangulation method, a mixture of both qualitative and quantitative
methods is used (Cooper and Schindler, 2006). First a qualitative data is used
interviewing a sample of respondents to achieve the key questions and then
these are used to design and evaluate survey questionnaires for the second
stage. As Binsardi, (2008) states that, qualitative methods informs quantitative
analysis.
The comparison between qualitative and quantitative research can be found in the
table 3.2.
Qualitative Quantitative
Focus on Research Understand and interpret. Describe, explain and predict.
Researcher
Involvement
High-researcher is
participant or catalyst.
Limited; controlled to prevent
bias.
Research Purpose In-depth understanding,
theory-building.
Describe and predict; build
the real theory.
Sample Design Non-probability, purposive. Probability.
Sample size Small. Large.
Research Design
May evolve or adjust
during the course of the
project.
Often uses multiple
methods simultaneously
or sequentially.
Consistency is not
expected
Involves longitudinal
approach.
 Determined before
commencing the project.
 Uses single method or
mixed methods.
 Consistency is critical
 Involves either a cross-
sectional or longitudinal
approach.
Participant Preparation Pre-tasking is common. No preparation desired to
30
avoid biasing the participant.
Data type and
Preparation
Verbal or pictorial
descriptions.
 Reduced to verbal codes
(sometimes with
computer assistance).
 Verbal descriptions.
 Reduced to numerical
codes for computerised
analysis.
Data analysis
 Human analysis
following computer or
human coding, primarily
non-quantitative.
Forces researcher to
see the contextual
framework of the
phenomenon being
measured-distinction
between facts and
judgments less clear.
 Always on-going during
the project.
 Computerised analysis—
statistical and
mathematical methods
dominate.
 Analysis may be ongoing
during the project.
 Maintains clear distinction
between facts and
judgements.
Insights and Meaning
Deeper level of
understanding in the
norm, determined by
type and quantity of free-
response questions.
 Researcher participation
in data collection allows
insights to form and be
tested during the
process.
 Limited by the opportunity
to probe the respondents
and the quality of the
original data collection
instrument.
 Insights follow data
collection and data entry,
with limited ability to re-
interview participants.
Research Sponsor
Involvement
May participate by
observing research in real
time or via taped interview.
Rarely has either direct or
indirect contact with
participant.
31
Feedback Turnaround
 Smaller sample sizes
make data collection
faster for shorter
possible turnaround.
 Insights are developed
as the research
progresses, shortening
data analysis.
 Large sample sizes
lengthen data collection;
internet methodologies are
shortening turnaround but
inappropriate for many
studies.
 Insight development
follows data collection and
entry, lengthening research
process; interviewing
software permits some
tallying of responses, so
data collection progresses.
Data Security
More absolute given use
of restricted access
facilities and smaller
sample sizes.
Act of research in progress is
often known by competitors,
insights may be gleaned by
competitors for some visible,
field-based studies.
Table 3.2: Comparison between Qualitative and Quantitative Research
Source: (Anggraeni, 2010).
Quantitative research method has been used for this research because it permits to
obtain the views of large audience in less time as compared to qualitative method,
which in turn can help to generalise the results of this research and make sure that the
outcome is reliable. Quantitative method is also chosen to avoid favouritism of the
participants in order to reduce the risk of unreliability in results. As the objectives of this
research is based on seven determinants of consumers switching behaviour,
quantitative method helps to know the significance level of each determinant by
analysing the influence of factors on switching behaviour of the proportion of
participants. As quantitative method measures consumers’ behaviour, opinions, and
attitudes, it is be appropriate to choose this method because it is more relevant to this
research and deliver more reliable outcome. This type of data can range from simple
counts such as the frequency of occurrences to more complex data such as scores,
prices or rental costs. Data obtained in this method is through questionnaire, surveys,
or from secondary sources (Ticehurst and Veal, 2000). Therefore, the survey
questionnaire has been designed to evaluate the factors influencing consumers’
switching behaviour in cellular services. On the other hand, the qualitative method for
32
this research may incur biasing of participants and may not provide the appropriate
information on significance level of each determinant or factor that influence consumer
switching behaviour because the number of participants will be less as compared to
quantitative method.
3.5 Sampling
According to Denscombe (2003), there are two kinds of sampling techniques that can
be used by researchers. The first is known as ‘probability’ sampling and the second is
known as ‘non-probability’ sampling.
 Probability sampling is based on the idea that people or events that are chosen
as the sample are chosen because the researcher has some notion of the
probability that these will be the representative cross-section of people or
events in the whole population being studied (Denscombe, 2003). Probability
sampling is the most utilised sampling method for social research purpose
(Babbie, 2008). Probability sampling can be divided into different types which
include simple random sampling, interval or systematic sampling, stratified
sampling, cluster or multi-stage sampling (Bless, et al., 2006).
 Non-probability sampling is often conducted in social research where the
situations do not permit probability samples used in large scale basis (Babbie,
2008). Non-probability sampling includes accidental or availability sampling,
purposive or judgemental sampling, and quota sampling (Bless, et al., 2006).
This type of sampling can also be used where no probability sampling method
is appropriate. Non-probability sampling can be further divided into purposive
sampling, snowball sampling, and quota sampling.
The objectives of this research are to explore the factors that influence consumers
switching behaviour of young adults in regards to cellular service providers. Therefore,
in order to achieve these objectives specifically, the mobile phone users in Bangalore
who are aged between 18 to 35 years are to be chosen, so the appropriate method for
sampling is ‘simple random sampling’. It helps to obtain the opinions of respondents
with different characteristics and can also help to add some extent of generalisability in
the results. This method is also used for this research, for the purpose of providing the
greater flexibility in collecting the primary data. Sample has been collected by sending
questionnaires electronically to respondents via e-mail and the purpose of this research
has also been explained to the respondents, so that they can feel free and secure to
participate and respond genuinely to the questions that has been asked to them for the
purpose of evaluating the influence of factors on switching behaviour. This will add
33
more reliability to results of this research. The questionnaires were emailed to 100
respondents in Bangalore but out of 80, only 60 of them responded. Hence, 60
questionnaires are used for the analysis.
3.6 Data Collection
There are mainly two types of data: primary data and secondary data. The primary data
can be collected through various methods like personal interviews, questionnaires and
direct observations etc. Thus, researchers may obtain the original data from the
respondents. Furthermore, the primary data can provide the current and realistic views
about the research questions. The secondary data is mainly gathered from internal
company information, government agents, books, journals and trade associations. This
type of data is easily available and accessible. In addition to that, secondary data can
aid primary data collection and make the results more specific and reliable.
Both primary data and secondary data are used for this study. Primary data will be
collected using questionnaire which is distributed electronically to respondents via
internet in Bangalore, India. The respondents are mobile phone users, with age ranging
from 18-35 years old. As Garbarino and Johnson (1999) asserted, customers’
evaluation of a supplier’s or service provider’s offerings would shape their behaviours.
Hence, this questionnaire aims to assess the most prominent perception with regards
to relationship; commitment towards the service providers (Moorman et al, 1992).
Satisfaction and payment equity are important factors in affecting customer’s
evaluation towards the service provider’s offering and hence should be included
(Bolton and Lemon, 1999).
Questionnaires method is chosen for this research because it has advantages over
other methods of data collection. Although the advantages can vary according to the
methods with which they are being compared, the primary advantages of using
questionnaire as data collection method are efficiency, large sample size, cheap costs,
assured confidentiality, sampling of many topics, and having a permanent original copy
of the responses (Downs and Adrian, 2004).
Questionnaire is one of the most popular used research techniques in social research.
The main part in questionnaire is question. First type is open questions, which ‘leave
the respondent to decide the wording of the answer, the length of the answer and the
kind of matters to be raised in the answer’ (Denscombe, 2004:155). Another type is
close question, which needs respondent to select answers from a range of options
designed on the questionnaire. This question may generate a number of quantitative
34
data. Thus, researchers should know well about what kind of quantitative data will be
collected and what statistic procedures will be adopted in order to avoid generating
pool analysis. Figure 3.1 shows the different types of questionnaire based on how they
are administered
Figure 3.1: Types of Questionnaire
Source: (Saunders, et al., 2009)
Types of questionnaire are also classified basing on the structure of the questions
asked. Normally, they are divided into several classifications; such as free-response
questions, dichotomous questions, multiple-choice questions (Cooper and Schindler,
2006). Dichotomous questions are questions which divide the respondents into two or
more groups according to the attributes, such as male and female, different age
groups, education group, and others. Multiple choice questions would allow the
respondents to have more choices and select the one that fits within a possible frame
of answers. These answers are usually designed by the researcher by using scoring
method such as 1 to 5 or giving options, etc. Open-ended questions are meant to
gather unstructured responses from the respondents.
The type of questionnaire used in this research was self administered questionnaire.
This was that type of questionnaire where there was no guidance to the respondents
by the researcher (Saunders et al., 2007). The questionnaire has closed ended
questions and for the main research questions, 5-point likert scale has been used. It is
frequently used variation of the summated rating scale which consists of statements
that express either a favourable or unfavourable attitude towards the object of interest
(Cooper and Schindler, 2006). The scale presents a set of statements where
respondents are asked to express their level of agreement or disagreement on five-
35
point scale. Each degree of agreement or disagreement was provided 5 options
ranging from strongly disagree to strongly agree.
The questions has been designed on the basis of the literature to assess the major
factors influencing switching behaviour and are divided into 23 questions in total and
the questionnaire has been divided into two sections.
Section 1 has 4 questions which deal with the behavioural and demographic
characteristics of the respondents. The questions are on the gender, age group,
educational level, and occupation of the respondents.
Section 2 has 19 questions which include one general question on switching behaviour
and eighteen questions on that were classified on the basis of seven factors that were
identified as the major factors in influencing consumer switching behaviour in cellular
services. The seven factors on which questions are divided include service quality,
price, switching costs, change in technology, advertising, social influence, and
involuntary switching.
Secondary data was also used to achieve the objectives of this research and it has
been collected from various textbooks and journals related to marketing, customer
relationship management, and customer behaviours, as well as previous relevant
researches.
3.7 Data Analysis
This study have utilised Microsoft word to design the questionnaire and SPSS 19 to
analysis the primary data. Microsoft word is first used to design the questionnaire, and
then SPSS 19 to generate tables and diagrams from the findings. The data from the
respondents has been coded under several categories such as ‘price’, ‘service quality’,
‘switching costs’ etc. Furthermore, the findings will be statistically analysed to draw a
conclusion using SPSS 19. Firstly, the descriptive statistics has been used to describe
the basic features of the data in a study and to provide simple summaries about the
sample and the measures and also to provide quantitative analysis of collected data.
Then, regression analysis and correlation analysis has been used to investigate the
statistical significance and relationships between the variables (independent and
dependent variables) that were designed to test the hypotheses and to achieve the
objectives of the research which is to evaluate the factors influencing consumers
switching behaviour in cellular services..
36
3.8 Limitations
It is accepted that the focus on mobile phone services users in Bangalore, India would
impose limitations on this research’s ability to arrive at conclusive findings in relation to
the switching behaviours of mobile phone users in general. Given the time available to
finish this study and the geographical as well as funding limitations, biases may occur
in the favour of generalising the research findings.
In order to counter the limitations with regards to the focus of this study, the
respondents were asked in details when they fill up the questionnaire. The variables
used in this research are service good variables (service by mobile phone service
providers). This can bring limitations to the study as it is possible that different type of
services has many different ways in retaining customers and customers of different
type of services will possess different customer behaviours.
Due to the time constraint and access availability, the sample size of this study is also
limited. Having more respondents for the primary data would increase the validity and
reliability of the findings. In terms of data, it is acknowledged that both qualitative and
quantitative data have their own strengths and weaknesses.
3.9 Chapter summary
The research methods that have greater relevance to the topic of this study has been
highlighted and discussed in order to achieve the objectives more evidently. In this
chapter, the theoretical concepts and studies of known researchers such as Saunders
(2007), Descombe (2003, 2004), Bolton and Lemon (1999), etc has been considered
which has relevance with this research. It can help to select appropriate research
method for this research and gain more reliability. The main focus of this chapter was
aimed to provide the clear idea about the methods adopted in this research by
illuminating the reasons for adopting the respective methods. The discussion on
appropriate research methods has been made for the purpose of gaining the valuable
insight for the chosen methods in order to achieve the objectives of this research. It
includes the discussion on research philosophy, research methods, sampling, data
collection, data analysis and limitations of this research. Furthermore, the next chapter
will discuss key findings identified from the data collected and then analysed using
statistical tests. Primary data in this study will be collected by the means of
questionnaires, which are expected to be 60.
37
4. FINDINGS AND ANALYSIS
4.1 Introduction
After collecting information from the data i.e. primary and the secondary data, the
next step is to analyse the data. In this chapter, firstly the findings from the collected
will be drawn and explained in terms of tables and graphs representing frequency
and percentage of respondents by using SPSS for the purpose of bringing the ease
in representation. Then the analysis of the collected data will be done by using
descriptive statistics, regression analysis and correlation analysis. Then the
Hypotheses testing and discussion has been given. The results will highlight, if there
is any effects of service quality, price, switching costs, change in technology,
advertising, social influence, and involuntary switching, with consumers switching
behaviour. The subsequent results gained from this research will be used to underpin
the research questions in order to achieve the objectives of this research.
The total number of questionnaires sent out to mobile phone users in Bangalore city
was 100 and only 60 has been received completely which can be interpreted. This
indicates that the response rate is only 60 percent. If response rate is taken into
consideration, high response rate points to the importance of what a researcher is
doing (Gillham, 2000).
4.2 Findings of the data
The findings of the data collected have been divided into two sections. The first section
is related to the demographics of the respondents. The second section is related to the
respondents’ opinion about the factors which have/can influence their decision to
switch the cellular service provider.
38
4.2.1 Section 1
4.2.1.1 Demographics
As according to Block & Roering (1976), demographic characteristics have been
regarded as a basis for understanding customer characteristics and behaviour in the
marketing area. Therefore, the following questions on demographics of respondents
have been designed in order to understand the role of particular demographics in
switching behaviour and to satisfy the aim of this research.
4.2.1.1.1 Gender
This question was about the gender of the respondents. The table 4.1 and the graph
below show the finding of this question.
What is your gender?
Frequency Percent
Valid
Percent Cumulative Percent
Male 46 76.7 76.7 76.7
Female 14 23.3 23.3 100.0
Total 60 100.0 100.0
Table 4.1: Gender
Chart 4.1: Gender
Noel (2009) indicates that, consumers with different gender exhibit different behaviour
in the same situation and they also have different spending powers. For example, 25%
of women in United States are earning more than others and can spend more. Hence,
76.70%
23.30%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
Male Female
Gender
39
it becomes important to understand the forces that influence switching behaviour of
both genders i.e. male and female. The findings of this question on gender shows that,
46 respondents were male which makes 76.7% and 14 respondents were female
making 23.3% of the total respondents.
4.2.1.1.2 Age group
The second question in the questionnaire was to know the age group of respondents.
The table 4.2 and chart 4.2 below shows the findings of this question.
Table 4.2: Age group
Chart 4.2: Age group
Age group is plays a very important role in determining the consumers switching
behaviour. The consumers with different age groups have different needs and interests
and also different buying powers (Noel, 2009). The young consumers are more
frequent mobile phone users than elderly people and they also frequently switch their
cellular service providers because they are always willing to experiment new services
38.30%
33.30%
28.30%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
18-24 Years 25-29 Years 30-35 Years
Age group
What is your age group?
Frequency Percent
Valid
Percent
Cumulative
Percent
18-24 Years 23 38.3 38.3 38.3
25-29 Years 20 33.3 33.3 71.7
30-35 Years 17 28.3 28.3 100.0
Total 60 100.0 100.0
40
(Ericson, 2004). Hence, the forces that influence young consumers are needed to be
understood as the objective of this research is evaluate the factors influencing young
adults to switch cellular service providers. The findings of this question on age group
shows that, it was found that majority of respondents belong to the age group of 18-24
years i.e. 23 respondents which make 38.30% of the total respondents. Whereas the
respondents with the age group of 25-29 were 20 making 33.30% of the total
respondents. And the respondents with the age group of 30-35 were 17 making
28.30% of the whole sample size.
4.2.1.1.3 Occupation
The third question in the questionnaire was to enquire about the occupation of the
respondents. The table 4.3 and chart 4.3 shows the findings of this question.
What is your occupation?
Frequency Percent Valid Percent
Cumulative
Percent
Student 22 36.7 36.7 36.7
Professional 18 30.0 30.0 66.7
Self-employed 6 10.0 10.0 76.7
Labourer 10 16.7 16.7 93.3
Unemployed 4 6.7 6.7 100.0
Total 60 100.0 100.0
Table 4.3: Occupation
Chart 4.3: Occupation
36.70%
30.00%
10.00%
16.70%
6.70%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Occupation
41
The consumers with different occupation have different level of income and so as the
spending powers and they make their buying decisions on the basis of their status
(Noel, 2009). Hence, this question has been designed to understand the behaviour
consumers with different occupations in order to enquire which factors influence them
to switch cellular service providers. The findings of this question shows that, the
respondents participated in this research were from different occupational
backgrounds. It has been found that majority of respondents were students 22
respondents which makes 36.70% of the total respondents. Whereas, 18 respondents
were professionals and 10 were labourers making 30% and 16.70% respectively.
Remaining 6 were self-employed and 4 were unemployed, making 10% and 6.70% of
the total respondents.
4.2.1.1.4 Educational level
The fourth question in the questionnaire was to enquire the educational level of the
respondents. The table 4.4 and 4.4 shows findings of this question.
What is the highest level of education level of education you have
achieved?
Frequency Percent
Valid
Percent
Cumulative
Percent
Primary education 6 10.0 10.0 10.0
High school education 11 18.3 18.3 28.3
Diploma/certification 10 16.7 16.7 45.0
Bachelor degree 13 21.7 21.7 66.7
Post-graduate degree 20 33.3 33.3 100.0
Total 60 100.0 100.0
Table 4.4: Educational level
42
Chart 4.4: Educational level
Consumers with different educational levels perceive services differently and also have
different level of information and knowledge about the products and services due to the
trend in schools, colleges, universities, etc ( Noel, 2009). Different factors influence the
decision of consumers with different educational level to switch cellular service provider
and therefore, this question is designed to understand those factors. The findings of
this question shows that, the respondents have achieved different educational levels
i.e. 20 respondents were post-graduates making 33.30% of the total respondents and
13 were bachelor degree holders making 21.70% of the total. Whereas, 11
respondents has achieved high school education which makes 18.30% and 10 and 6
has achieved diploma/certification and primary education making 16.70% and 10% of
the total sample respectively.
10%
18.30% 16.70%
21.70%
33.30%
0%
5%
10%
15%
20%
25%
30%
35%
Educational Level
43
4.2.2 Section 2
4.2.2.1 Likeliness of switching service provider
The fifth question in the questionnaire was to find out the likeliness of consumers to
switch from current cellular service provider to another. This question helps to enquire
what percentage of respondents are likely to switch their cellular service provider and
the reasons for switching which has been asked in the following question in order to
satisfy the aim and objectives of this research. The finding of this question is shown in
the table 4.5 and chart 4.5.
Are you likely to switch from current cellular service provider to
another?
Frequency Percent
Valid
Percent Cumulative Percent
Very Unlikely
Unlikely
Neutral
Likely
Very Likely
11
12
5
19
13
18.3
20
8.3
31.7
21.7
18.3
20
8.3
31.7
21.7
18.3
38.3
46.7
78.3
100.0
Total 60 100.0 100.0
Table 4.5: Likeliness of switching service provider
Chart 4.5: Likeliness of switching service provider.
18.30%
20%
8.30%
31.70%
21.70%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Very
Unlikely
Unlikely Neutral Likely Very Likely
Likeliness of switching service provider
44
The findings of this question shows that, 19 respondents are likely to switch which
makes 31.70% and 13 are very likely which makes 21.70% of the total respondents.
Whereas, 12 respondents are unlikely and 11 are very unlikely making 20% and
18.30% respectively and remaining 5 respondents are neutral, which makes 8.30% of
the total respondents. This question was aimed at understanding the rate of
respondents likely to switch their cellular services providers and the situations which is
influencing them to switch. Understanding the situations and factors can helps to
cellular service providers to reduce the likely of consumers who are willing to switch
and to attract consumer of competitors who are about to switch. This question was also
aimed at satisfying the third objective of this research which is to investigate the
likeliness of respondents to switch from current cellular service provider to another.
However, the measures as to how the cellular service providers can prevent or reduce
the rate of likeliness of the switching has been tested and discussed in the analysis
part of this chapter.
45
4.2.2.2 Service quality
It was indicated that, improving service quality satisfies customers and retains their
loyalty and the customers with negative service experience may consider switching
their service providers (Lee and Murphy, 2005). Therefore, in order to determine the
effect of service quality on consumers’ switching behaviour, following questions relating
to service quality has been designed to address the research objectives.
4.2.2.2.1 (SQ1): Customer service
The sixth question was to find out the level of customer service provided by the current
cellular service provider to respondents. The finding of this question is shown in the
table 4.6 and chart 4.6.
The level of customer service provided by the current cellular service
provider is good.
Frequency Percent
Valid
Percent
Cumulative
Percent
Strongly disagree 13 21.7 21.7 21.7
Disagree 30 50.0 50.0 71.7
Neutral 4 6.7 6.7 78.3
Agree 10 16.7 16.7 95.0
Strongly agree 3 5.0 5.0 100.0
Total 60 100.0 100.0
Table 4.6: Level of customer service
Chart 4.6: Level of customer service
21.70%
50%
6.70%
16.70%
5%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Strngly
disagree
Disagree Neutral Agree Strongly agree
Level of customer service
46
The importance of customer service cannot be underestimated. It requires constant
effort to maintain good relations with the customers of the company. It is a critical
element in all growth and retention strategies (Gershon, 2009). Therefore, this question
helps to understand the impact of customer service on switching behaviour. The
findings of this question shows that, from the whole sample size, 30 respondents i.e.
50% disagree with the statement and 13 respondents strongly disagree which makes
21.70% of the total respondents. Whereas, 10 respondents agree with the statement
and 3 respondents strongly agree making 16.70% and 5% respectively. Remaining 4
respondents are neutral with the statement which makes 6.70% of the total
respondents. It implies that majority of consumers are towards the negative side when
it comes the customer service provided by their cellular service providers which means
that consumers service is also influencing the likeliness of consumers switching
behaviour.
4.2.2.2.2 (SQ2): Network coverage
The seventh question in the questionnaire was to enquire about the network coverage
of the current cellular service provider of the respondents. The finding of this question
is shown in the table 4.7 and chart 4.7.
The network coverage of the current cellular service provider is
good.
Frequency Percent
Valid
Percent
Cumulative
Percent
Strongly disagree 18 30.0 30.0 30.0
Disagree 13 21.7 21.7 51.7
Neutral 8 13.3 13.3 65.0
Agree 12 20.0 20.0 85.0
Strongly agree 9 15.0 15.0 100.0
Total 60 100.0 100.0
Table 4.7: network coverage
47
Chart 4.7: Network coverage
The major feature of mobile telecommunications is its coverage. Consumers evaluate
network coverage of the cellular service providers differently according to the utility
they drive from completed calls (Madden, 2003). The impact of network coverage on
consumers switching behaviour can be evaluated through this question. The findings of
this question shows that, 18 respondents strongly disagree to the above statement
about network coverage which makes 30% of the total respondents and 13
respondents disagree making 21.70% of the total sample. And 12 respondents agree
and 9 respondents strongly agree with the statement which makes 21% and 15% of the
total respondents respectively. The remaining 8 respondents are neutral with the
statement making 13.30% of the total respondents. The finding of the above question
relating to network coverage of the cellular service provider is based on achieving the
objectives of this research. This implies that most of the respondents expressed
negative opinion when it comes to network coverage and therefore may be likely to
switch their cellular service provider.
30.00%
21.70%
13.30%
20%
15.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Strongly
disagree
Disagree Neutral Agree Strongly agree
Network coverage
48
4.2.2.2.3 (SQ3): Network problems
The eighth question in the questionnaire was to enquire about the network problems
with the current cellular service provider. The finding of this question is given in the
table 4.8 and chart 4.8.
There are frequent network problems with the services of the current
cellular service provider.
Frequency Percent
Valid
Percent
Cumulative
Percent
Strongly disagree 8 13.3 13.3 13.3
Disagree 15 25.0 25.0 38.3
Neutral 5 8.3 8.3 46.7
Agree 20 33.3 33.3 80.0
Strongly agree 12 20.0 20.0 100.0
Total 60 100.0 100.0
Table 4.8: Network problems
Chart 4.8: Network problems
Frequent network problems refer to weak connectivity and frequent disconnections in
the services provided by cellular service providers (Avresky and Diaz, 2009). This
question helps to evaluate the effect of network problems on switching behaviour of
consumers. The findings of this question shows that, 20 respondents agree and 12
respondents strongly agree to the above statement about network problems which
makes 33.3% and 20% of the total respondents, whereas, 15 respondents disagree
and 8 respondents strongly disagree to the statement making 25% and 13.30% of the
13.30%
25%
8.30%
33.30%
20%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Strongly
disagree
Disagree Neutral Agree Strongly agree
Network problems
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Consumers switching behaviour

  • 1. 1 1. INTRODUCTION 1.1 Introduction The dramatic growth in the recent years has changed cellular phone industry and the cellular phones have moved beyond their fundamental role of communication. In today’s scenario, consumers continuously want more out of their phone i.e. they use their phones to listen music, play games, read news headlines, access the internet, check their bank balance and more (Kavita and Chopra, 2011). Due to this dramatic growth, the cellular industry all over the world has been witnessing fall in the costs of cellular services, very high growth rates in subscriber base, and increasing competition and deregulation. For developing countries in particular, cellular services are becoming a very significant proportion of the overall telecom infrastructure (Dutta and Sridhar, 2003). The increasing competition in cellular service industry may be for the purpose of attracting consumers towards the firms because consumers are the main source of profitability of the firm (Parhizgar, 2002). According to Rahman, et al. (2010), the service providers are offering most sophisticated mobile services with an expanding number of value added services such as Short Message Service (SMS), Wireless Application Protocol (WAP), subscription services (SS), General Packet Radio Services, and Third Generation services, which will help to attract consumers and the influence their buying behaviour. This value added services are increasing the level of consumers’ expectations from service provider and if the service provider is unable to meet these expectations then, the consumers considers switching to competitors services. The switching behaviour of the consumers will significantly affect the revenues, service continuity, and market share of the firm (Oyeniyi and Abiodun, 2010). Therefore, in order to prevent consumers from switching to competitors, the service providers are forced to add new schemes, offers, technological advancements, and benefits with the services (Satish, et. al., 2011). Cellular services have become the main source of growth in telecommunication sector in India. The flexibility offered in communications and falling tariffs are playing a significant role in popularising mobile communications (Rao, 2007). According to Paulrajan and Rajkumar (2011), in the last decade, the mobile revolution has played a significant role in the growth and development of Indian economy. As the number of cellular service providers are continuously increasing, it is expected that the Indian telecom industry will grow at a compound annual growth rate (CAGR) of 15.8 percent between 2010 and 2014 and will touch revenues of $82 billion (377,683 crore INR) (telecomleads.com). The Indian cellular consumer market is expected to double its
  • 2. 2 subscription base by 2015 when compared to present subscriptions (press trust of Indian, 2011). According to Kumar, et. al. (2011), the earnings and profitability of the company will be highly affected, if it loses even a single consumer, as it can cost five times more to acquire new customer than to retain an old customer. Therefore, in order to retain the old consumers and reduce the rate of consumers from switching to competing service providers, it is very important to study the factors that influence consumer behaviour in terms of switching between the cellular service providers. 1.2 Problem statement As the telecom sector is rapidly growing in India, due to the industry attractiveness, new players are entering into the industry and making it more competitive, adding more options for the consumers to switch between the cellular service providers. As the study of Oyeniyi and Abiodun (2010) indicates that, the consumer switching behaviour will affect the cellular service providers in terms of lowering market share, revenues and consumer base of the firm. Therefore, the research is carried out on the topic of consumer switching behaviour which could help the cellular service providers to understand the reasons or rationale behind switching behaviour of consumer in cellular services. This research is targeting young adults aged between 18 to 35 years because India has one of the largest youth population in the world and cellular services are one of the services which would be interesting to them (Levi, 2007). Young adults are in general more frequent mobile phone users than elderly people (Weslund, 2006). According to Ericson (2004), young people are showing again and again that they are willing to experiment with new services and that they define new uses for mobile services. It has been indicated that young people are the heaviest users of mobile technology and are highly desirable demographics because of their discretionary buying power (Miller, 2004). Therefore, it becomes very important for the cellular service providers to understand the factors which influence this group of consumers to switch their service provider because understanding this factors can help the company to maintain existing consumers and win the new consumers which increase the consumer base of the firm which in turn provides the opportunity to increase profitability and market share of the firm. In this research, sample is selected from Bangalore city located in Karnataka, South India because it has a strong base in telecommunications and other industries. It is also known as the science and technology capital of India, (Yue, et al., 2001). Due to
  • 3. 3 the rapid increase in telecom industry in India, the major cities including Bangalore have registered new records in the sale of telecom services. Bangalore is one of the cities with leading telecom directory in India and also one among the cities which are the main telecom business centre of India (indiahousing.com). The major cellular service providers in India such as BSNL (Bharat Sanchar Nigam Limited, MTNL (Mahanagar Telecom Nigam Limited), Reliance communications limited, Tata Docomo limited, Bharti Airtel, Vodafone Essar, Aircel and others have initially targeted big cities including Bangalore for the launch of new telecom services such as third generation (3G) mobile services (articles.economictimes.indiatimes.com). Therefore, this research carried out in Bangalore city could help the cellular service providers to understand the factors responsible for consumers switching behaviour. It will help the service providers to offer the services according to consumer requirements, which in turn will help the companies to prevent consumers from switching the cellular service provider and gain loyalty and competitive advantage in order to compete in the rapidly increasing competition scenario in Bangalore city. 1.3 Justification of the study This study will make several contributions to the marketing literature from both a theoretical and a managerial. Firstly, this study will contribute to the marketing literature by providing an empirical examination of several service marketing constructs. The results of this research can help the cellular service providers to have the deep understanding about the factors that influence the consumers to switch between the different service providers in cellular service industry. Secondly, this study will benefit marketers and practitioners in the cellular service industry. This research will identify the most important factors that cause customers to switch or stay with a cellular service provider. This knowledge can make a contribution to enhancing long-term customer relationships with customers. In addition, the managers of the cellular service company can utilise this knowledge to prevent potential customers from switching service providers. From the perspective of the cellular service providers, that are attempting to attract new customers, this information will enable cellular service providers to develop strategies to overcome switching barriers and gain market share (Colgate & Lang, 2001). As Hennig-Tharau and Hansen, (2000) states that, learning from the consumer switching stories, companies can improve the services to avoid future switching behaviours.
  • 4. 4 1.4 Research Aim and Objectives The research is designed to address the following aims and objectives. The broad aim of the research is to explore and examine the factors that determine the consumers switching behaviour of young adults (aged 18-35 years) in cellular service providers. The objectives of the research are as follows. 1. To investigate the factors that influence consumers to switch the cellular service providers. 2. To critically evaluate the most and the least significant factors that influence consumers switching behaviour in cellular services? 3. To investigate the likeliness of consumers to switch from current cellular service provider to another. 1.5 Research questions The desired objectives of the research will be accomplished by addressing the following research questions.  What are the situations which influence consumers to switch their cellular service provider?  What is the effect of consumers switching behaviour on the cellular service providers?  What is the percentage of customers who are willing and unwilling to switch their current service provider?  What measures have to be taken to reduce the rate consumers switching behaviour?  What are the steps to be taken to retain and gain customers? 1.6 Research Overview This research has been split into five main chapter; Introduction, literature review, methodology, findings and analysis, and conclusion and suggestions. The overview of each chapter is given below. 1.6.1 Chapter 1: Introduction In this chapter, firstly the telecommunications industry has been introduced indicating the impact of development and change on cellular service providing companies in relation to the consumers. Then the justification has been given about how this
  • 5. 5 research contributes to business or management. Lastly, the aim, objectives and questions has been explained in this chapter. 1.6.2 Chapter 2: Literature review In this chapter, the existing literature on relevant theories and researches has been explored. The key theories and researches relating to the topic of ‘consumer switching behaviour in cellular service provider’ have been discussed in order to gain both theoretical and practical knowledge of this research. The main purpose of discussing relevant theories and researches is to explore the factors that help to achieve the objectives of this research. The literature review includes studies of many researchers such as Richard Lee and Jamie Murphy (2005), Inger Roos, Bo Edvardsson, and Anders Gustafsson (2004), and others. The discussion is based on marketing concepts relating to the topic of consumer behaviour in terms of switching cellular services. The major factors including service quality, price, switching costs, technological advancements, advertising, social influence (reference groups), and involuntary switching, that are mainly responsible for consumers switching behaviour in cellular services have been discussed. Then, on the basis of these factors, the hypotheses have been developed in this chapter. 1.6.3 Chapter 3: Research Methodology This chapter explains and justifies the research methodology undertaken to carry out this research. The different research methods have been discussed in this chapter and the one which are assumed to be appropriate to achieve the objectives are chosen and its impact on this research has been explained. The research methodology includes the studies of many researchers such as Denscombe (2003), Saunders (2009), Denscombe (2003), Kumar (2005), and more. The research methodology starts with explaining the meaning of business research, then the research paradigms/philosophies (interpretivism and positivism), research methods (quantitative, qualitative, and triangulation), sampling (probabilistic and non-probabilistic), and data collection (primary data and secondary data) have been discussed simultaneously with chosen methods and its impact on this research. And then the undertaken data analysis method and limitations of this research has been discussed in this chapter. 1.6.4 Chapter 4: Findings and Analysis This chapter explains the findings drawn from the collected data through questionnaires and presented in the form of tables and charts. Then those findings have been analysed using different statistical tests such as descriptive statistics,
  • 6. 6 regression analysis, and correlation analysis in order to show the relationship between the variables and draw the results. Then, on the basis of the tests and results, the hypotheses have been tested followed by discussion and implication of the results of each hypothesis in order to answer research question. Finally, the results of the hypotheses are summarised and different switching factors have been ranked in terms of their significance level in order to achieve research objectives. 1.6.5 Chapter 5: Conclusion and Suggestions This chapter provides the brief summary of the whole research and also provides the suggestions for further research, which can help the other fellow researchers who wish to take this research to further end. The suggestions may also be helpful for the cellular service providing companies operating in the area where the research has been carried out.
  • 7. 7 2. LITERATURE REVIEW 2.1 Introduction This chapter explores the literature on relevant theories and researches which help to gain both practical and theoretical knowledge and understanding of the topic of consumer switching behaviour in cellular services. The theoretical concepts and researches explored in this chapter also includes the debates made by previous researchers on similar topics, which significantly contributes to have better understanding about the objectives of this research i.e. the factors that influence switching behaviour and decisions of consumers in terms of cellular service providers. The literature review firstly explains impact of marketing in relation to cellular service industry, and then the main concept of this study has been discussed i.e. consumer switching behaviour including the major factors that determine consumers’ switching behaviour (switching determinants) in cellular services such as service quality, price, switching costs, change in technology, advertising, social influences and involuntary switching. Lastly, the hypothesis has been developed on the basis of the literature. 2.2 Marketing According to Kotler, et al. (2009:6), ‘’marketing is a customer focus that permeates organisational functions and processes, and is geared towards marketing promises through value proposition, enabling the fulfilment of individual expectations created by such promises and fulfilling such expectations through support to customers’ value- generating processes, thereby supporting value creation in the firm’s as well as its customers’ and other stakeholders’ processes’’. Today, Marketing must not be understood in the old sense of making a sale – ‘’ telling and selling’’, but in the new sense of satisfying customer needs (Kotler and Armstrong, 2008:7). This implies that, if the companies want to gain long-term benefits from its customers, they have to understand marketing in the new sense of satisfying customer needs. If the companies are able to satisfy the needs and expectations of its customers, then customers will repurchase the products or services of a particular company i.e. they exhibit loyalty towards the company, regardless of competitors’ efforts to distract customer attention towards them. With respect to service marketing, Lovelock and Wirtz (2007), defines services as the economic activities which one party offers to another, most commonly employing time- based performances in order to bring about desired results in recipients themselves or in objects or other assets for which purchasers have responsibility. Customers of
  • 8. 8 service expect to obtain value from access to goods, facilities, professional skills, network, and systems; but there is no transfer of ownership of any physical elements is involved. Muddie and Pirrie (2006), identified four basic characteristics of services i.e. intangibility, inseparability (simultaneous production and consumption), variability (heterogeneity) and perishability. He also argued that marketing activity is normally structured around the ‘4Ps’ i.e. product, price, promotion and place; but the distinctive characteristics of services requires 3 more Ps in addition i.e. people, physical evidence and process. Considering the cellular services Kapoor, et al. (2011:337) states that, the services provided by several companies are generally similar in their nature, therefore the only way a service provider can make a mark on the consumers is by way of distinguishing the physical evidence, people, and process attached to services of the company. For example, the customer needs has to be served differently in terms of non-disruptive connectivity, value additions in physical evidences, and the courteous services by the people involved in rendering these services. In regards to the current scenario of telecom services marketing in India, Kapoor, et al. (2011:344) asserted that, the telecom services are facing a very dynamic marketing situation with the international and global companies making their presence felt in the Indian telecom markets. For example, with the entry of Virgin mobiles, Vodafone, and many other international players, the customer has suddenly been placed as the main beneficiary in the telecom scenario. Schiffman, et al. (2008) stated that, consumer behaviour is a root of marketing concept. Therefore, the concept of consumer behaviour in terms of switching in cellular service industry has been discussed below because it may be significantly important for the cellular service providers to understand the grounds in which consumers’ exhibit switching behaviour in order to gain understanding on consumers’ needs and expectations, and the ways for satisfying them. It can enable cellular service providers to reduce the risk of customers switching from one cellular service provider to another, as the success or failure of the company may depend on its consumers.
  • 9. 9 2.3 Consumer switching behaviour 2.3.1 Consumer behaviour According to Loudon and Betta (1993), consumers are those individuals who purchase goods or services for the individual or household consumption purpose. They defines consumer behaviour as ‘’the decision process and physical activity individuals engage in when evaluating, acquiring, using, or disposing of goods and services’’. Similarly, Hoyer and Macinnis (2010:3), defines consumer behaviour as ‘‘the totality of consumers’ decisions with respect to the acquisition, consumption and disposition of goods, services, activities, experiences, people and ideas by decision-making over time’’. A simplified framework proposed by Khan (2007), in the figure 2.1 helps to understand the concept of consumer behaviour more clearly. Figure 2.1: Simplified framework of consumer behaviour Adapted from Khan (2002), Consumer Behaviour. The study of consumer behaviour helps the companies to improve their marketing strategies by understanding the issues described as follows (consumerpsychologist.com).  How the psychology of consumers thinks, feel, reason, and select between different alternatives.  How the psychology of consumers is influenced by the environment (for example; family, friends, etc).  How the behaviour of consumers while making buying decisions.
  • 10. 10  How marketers can adapt and improve their marketing campaigns and marketing strategies in order to reach consumers more effectively etc. Therefore, the above discussion on consumer behaviour implies that, in order to fulfil the objectives of this research, it is very important to understand consumer behaviour because in cellular services, different consumers behave differently under the same situation, which can directly or indirectly make positive or negative impact on profits, market share, etc. Consumer behaviour in terms of switching is an important aspect for the service companies. Due to the fast changing nature cellular telecommunications industry, the cellular services consumers are often switching from one service provider to another. Hence, it can be said that it is very important for the companies to understand the reason behind consumers’ switching behaviour in order to compete, gain market share, increase profitability and consumer base. 2.3.2 Switching behaviour Switching in the context of consumer behaviour is referred to the times when consumer chooses a competing choice rather than the previously purchased choice on the next purchase occasion (Babin and Haris, 2011). Switching behaviour reflects the decision that a consumer makes to stop purchasing a particular service or patronising the service firm completely (Boote, 1998). Satish, et al. (2011) argued that, consumers exhibits switching behaviour based on their satisfaction level with the service provider. Conversely, the study of Roos (1998) indicates that, even though customers may express their dissatisfaction, they nevertheless frequently seem to switch service provider. Consumer satisfaction is developed on the information from all previous experiences with service provider. Customer wants and expectations are changing or increasing all the time (Paulrajan and Rajkumar, 2011). In telecommunications industry customer bring high expectations from its service providers Roos (1998) and if the service providers are unable to meet these expectations then customers will take their business to somewhere else. Therefore, it can be argued that the cellular service providing companies need to consistently monitor and fulfil the changing wants and expectations in order to satisfy them and prevent them from switching. Customer satisfaction does not necessarily lead to loyalty. However, customers’ loyalty is strengthened towards the service provider, when they are satisfied (Satish, et al., 2011). Similarly, Fill (2005) argues that, if there is decrease in the consumers’ satisfaction level then loyalty may be lost and the complex switching behaviour occurs. According to Brown and Chen (2001), some studies suggest that customer satisfaction
  • 11. 11 is an important antecedent of loyalty. Customer loyalty is influenced by customer satisfaction and a loyal customer base is the real asset for a company. Customer loyalty has a powerful impact on organisation’s performance and most of the companies consider it as a source of competitive advantage. It increases revenue, reduces customer acquisition costs, and lowers the costs of serving repeat purchasers, which leads to greater profitability. Customers may avoid switch and remain loyal to service provider, if they feel that they are receiving greater value than they would receive from competitors (Lam, et. al., 2004). Oliver, (1999) stated that consumer loyalty is a deeply held commitment to re-buy or repurchase a preferred service consistently, regardless of situational influences and marketing efforts that have the potential to cause switching behaviour. Customer loyalty is an important factor that contributes to the firm’s profits, earnings and reduces defection rates (Duncan and Elliot, 2002). Considering the points raised by researchers relating to customers satisfaction and loyalty which is discussed above, it can be noted that customer satisfaction is very important factor and high responsible for gaining customers loyalty towards the firms. Hence, cellular service providers have to to satisfy its consumers in every aspect relating to their services and because if they fail to satisfy its consumers, then consumer loyalty may be lost and they may consider switching their service provider which in turn may bear loses for the firm. The impact of consumer switching or defection on the firm is discussed below. The study of Oyeniyi and Abiodun (2010) indicates that, the revenues and service continuity could be significantly affected by customers’ defection or switching. Reichheld and Sasser (1990) states that reducing customer defections by five per cent increased profit by seventy five per cent. Defections have stronger impact on profitability than unit costs, market share and more. According to Bansal and Taylor (1999), the service providers are becoming more concerned about customer retention because of the negative effects of customer switching such as reduced market share, impaired profitability, and increased costs. The service providers should carefully manage consumer retention because on the one hand it is costly to retain a customer and on the other hand, all customers do not generate same value to the firm and therefore it is not efficient to retain all customers (Lopez, et. al., 2006). Thus, it can be understood that, for the cellular service providers it is very important to carefully retain consumers because they are the main source to generate potential profits and add value to the firm. If the firm fails to manage
  • 12. 12 consumer retention then, it may result in losing consumers loyalty towards the firm and the rate consumers switching between the cellular service providers will be increased. According to Colgate and Danaher (2000), relationship marketing has gained increasing importance due to its benefits for both firms and the customers. The strength of relationship between the service provider and consumer may encourage consumers to switch or to stay with current service provider. For example Gwinner, et. al. (1998), argued that consumer will commit themselves to service provider by establishing, developing and maintaining relationships that provides superior valued benefits. Similarly, the study of Colgate and Lang, (2001), shows that if consumers switch from one service provider to another, then they may lose the benefits that are available from the current service provider. Conversely, the study of Lopez, et. al. (2006) indicates that building long-term relationships with consumers increases profitability and their future viability for the firms. Hence it can be said that, the service provider should give careful consideration to maintain long-term relationship with consumers in order to reduce the risk of consumer switching from one service provider to another. Bansal and Taylor (1999) states that switching leads to negative outcome for the firm which also involves replacing or changing the current service provider with another service provider. Similarly, the study of Lee and Murphy (2005) indicate that, consumers with negative service experience switch or consider switching to another service provider. Therefore, it is significantly important to understand the major factors that influence or determine consumers’ behaviour to switch cellular service providers and decisions to buy cellular services for the purpose of retaining consumers and reducing the rate of consumers switching from one service provider to another. It enables the cellular service provider to gain competitive advantage which in turn helps to generate revenues, increase market share and consumer base of the firm. 2.3.2.1 Switching determinants According to Lee and Murphy (2005), there are several factors that determine consumers to stay with their current service providers or to switch. Some of the important factors which determine switching are:  Price is rated as the most important reason for switching.  Brand trust leads to commitment towards brand, which then reduces the consumers’ behaviour to switch the service provider.
  • 13. 13  Switching costs are also important switching determinant because switching costs such as monetary loss and uncertainties with new service provider deter switching regardless of dissatisfaction.  Reference Groups which plays a significant role in influencing consumer to switch the service provider in order to conform to others, norms, broad values and behaviour. Roos and Gustafsson (2007) states that, customers switch the service providers for many reasons such as existing service provider no longer meets its customers’ needs because of their changing circumstances or customers are getting better offers from the competitors or customers wanting some variables. According to Mallikarjuna, et al (2011) these reasons/determinants for consumer switching behaviour can be classified into eight general categories – inconvenience, pricing, core service failure, service encounter failure, response to service failure, competition, ethical problems and involuntary switching. According to a classification given by Bruhn and Georgi (2006), reasons for switching can be divided into three groups: 1. Customer-related switching reasons are concerned with customer characteristics with a more or less direct connection with the service provider. Characteristics concerns customers age, sex, preferences, lifestyles, etc and are directly connected to customers’ needs (Bhrun and Georgi, 2006) 2. Provider-related switching reasons are closely connected to cause customer retention and it is concerned with perceived service quality and customer satisfaction. Service prodders can easily manage this category of reasons. It is the most important source for avoiding customer defection (Bhrun and Georgi, 2006). 3. Competition-related switching reasons lead to customer defection because consumer behaviour not often depends on the current service provider and its service but also on its competitors. For example, when a mobile phone customer’s basic criterion of buying is price, and then they compare the price system of their current service provider and other provider (Bhrun and Georgi, 2006). Roos, et al. (2004) stated that, customers own expressions of reasons for switching are known as switching determinants. The reason for switching may be due the service provider’s poor knowledge about how customers changing situations influence their needs. The study of Lee and Murphy (2005) indicates that, in subscription market such as telecommunications, consumers exhibit complete loyalty to one service provider and often over long period. They also state that consumer subscribe to mobile services with no initial intention to switch and remain completely loyal until triggers change them from being loyal to switching or intending to switch the service provider. As there are number
  • 14. 14 of determinants which relates to loyalty and switching, this transitions may be due to changes in underlying determinants, new determinants coming into play, or both (Lee and Murphy, 2005). Some of the important factors that determine consumer switching behaviour in cellular service industry have been discussed below to gain the knowledge about underlying facts of those factors for the purpose of achieving the objectives of this research. 2.3.2.1.1 Service quality and its dimensions 2.3.2.1.1.1 Service quality Service quality as perceived by customers is defined by Zeithaml, et. al., (1990), as ‘’the extent of discrepancy between customers expectations or desires and their perceptions’’. Bansal and Taylor (1999), favourably available that service quality is the consumer’s judgement about a firm’s overall excellence or superiority. Perceived service quality is obtained from the viewpoint of a consumers’ attitude towards to judge the overall service prevision (Spathis, et. al., 2004). Lewis (1989) argued that, perceived service quality is the judgement of consumers which is derived after comparing between their expectations of service and the perceptions of actual service performance. Many researches revealed that there is a close relationship between service quality and customer satisfaction which leads in influencing consumer behaviour. For instance, according to Lee and Murphy (2005), existing literature suggests that improving service quality satisfies customers and retains their loyalty. And the customers with negative service experience may switch their service providers. With regards to Cellular services, the study of Paulrajan and Rajkumar (2011) indicates, that service providers are expected to compete on service quality and price, as it is very important for service providers to meet consumers’ expectations in terms of service quality. Services mainly depend on some factors and consumers buy services which has many attributes in order to fulfil their desires. In cellular mobile markets, customers carry high level of expectations from its cellular service providers in terms of communication and if the service providers are unable to meet customers’ expectations, then it could result in customers switching their cellular service providers. For example, the study of Paulrajan and Rajkumar (2011) indicates that, in today’s scenario, cellular mobile has became a very important part for our daily communication and customers buy the cellular mobile for instant communication and various services. However, many researches indicate that the dimensions of service quality play a significant role in determining service quality of the firm.
  • 15. 15 2.3.2.1.1.2 Dimensions of service quality According to Cronin and Taylor (1992), service quality is a multi-dimensional or multi- attribute construct. However, Gronoos (1990) noted that, there are three dimensions of service quality i.e. functional dimension (process), technical dimension (outcome), and image (corporate image). According to the study of Kang and James (2004), the customers perceives service quality as what they receives as the outcome of the process in which the resources are used i.e. technical dimension. But more often and importantly customers perceives service quality as how the process itself functions i.e. functional dimension. Customers bring their past experiences and overall perceptions of a service firm to each encounter because they often have continuous contact with the same service firm i.e. image dimension (Gronoos, 2001). Brady and Cronin (2001) argued that, there is no general agreement as to the nature of the dimensions of service quality. Service quality dimensions with regards to cellular services providers include call quality, call drop rate, geographical coverage, call forwarding and waiting, short message service, mobile entertainment, complaint redressal system and others (Paurajan and Rajkumar, 2011). Considering the above discussion on service quality and its dimensions, it can be therefore understood that, in the scenario of increasing competition in cellular service industry, it is very important for the cellular service providers to continuously monitor and improve service quality in order to meet the changing expectations, desires or wants of consumers in terms of service quality for the purpose of satisfying consumers. It is also very important for the cellular service providers to understand the impact of service quality which is playing a significant role in consumers’ switching behaviour in cellular service industry. This helps to gain consumers loyalty towards the company. It can also help cellular service providers to reduce the rate of consumers’ switching from one service provider to another, and retain and attract consumers towards the firm. Ignorance of understanding the impact of the factors relating to service quality may lead to lose the potential consumers, which in turn will have negative impact on the firm.
  • 16. 16 2.3.2.1.2 Price From the marketing point of view, researchers have recognised the importance of price in affecting the behaviour of existing customers (Lemon, 1999). In most of the studies it was found that price is the most important factor which affects customer to switch loyalties to competing service provider (Satish, et al., 2011). Roos, et al. (2004) favourably argued that price play a key role in consumers decision making to switch service provider. Similarly, the study of Krishna, et al., (2002) indicate that, comparing the price charged by current service provider with that of competitors, consumers influences perceived savings. For example (Polo and Sese, 2009), when the price of current service provider is high, consumers perceived savings from switching will be high, as they would benefit from better pricing offered by competitors. The consumers monetary saving will be high from switching the service providers when the competitors’ prices are low (Polo and Sese, 2009). Polo and Sese (2009) also argued that, competitors will use price to stimulate consumer switching behaviour. Hence, it implies that the cellular service providers are more interested in attracting customers of their competitors in order to increase market share, profitability, and consumer base of the firm. Due to the competitor’s prices, the consumers are encouraged to switch the cellular service provider by which the consumers can save money. However, this type of competition may affect the revenues of not only one but both the competiting firms. According to Bolton (1998), and Drew (1991), price is one of the most important determinant which influence switching intentions in telecommunications industry. Pricing factor include all critical switching behaviour that involved rates, fees, service charges, price promotions, and others (Keaveney, 1995). For example, in telecommunications sector, price may include call rates, subscription fees, roaming charges, etc. The study of Keaveney (1995) revealed that, more than half of the customers switched because of the poor price perceptions and suggested that unfavourable price perceptions directly influence customers’ intentions to switch. Therefore, in the context of cellular service industry, it can be assumed that, high price or unfavourable price if the services (the price, which the consumers do not agree or perceives it as unworthy to pay for the particular services or firm) can have negative effect on consumers and may influence them to switch between the cellular service providers. The study of Lehtinen and Lehtinen (1991) indicates that, price plays a vital role in telecommunications market, especially in cellular service providers. They also stated that a price dominated mass market leads to customers having more choices and opportunities to compare the pricing structures of different service providers. Hence, it
  • 17. 17 indicates that the companies which offers low price for the services may be able to attract more customers, gain loyalty, and retain lost consumers. This can also help to reduce or prevent consumers from switching their cellular service providers. In the study carried out by Paulrajan and Rajkumar (2011), it was found that price has significant positive impact on consumer perception in terms of selecting the telecommunication service providers. However, Dutta and Sridhar (2003) argued that price has both positive and the negative effects such as, in price-cap regulated market the service providers use appropriate pricing strategy to win customers and market share on one side. And on the other side, for example, in India which is highly price- elastic market the cellular service providers reduce prices which may lead to increase in subscribers base and so is the network traffic. This increased network traffic decreases the performance and lowers service quality, inviting customers to switch the service provider (Dutta and Sridhar, 2003). Hence, it can be understood that price plays a significant role in influencing consumers buying decisions of cellular services and it can also influence consumers switching intentions. It implies that cellular service providers have to pay careful attentions on pricing their services because on the basis of the above discussion, it can be said that consumers are very sensitive to price. According to Pan (2009), Bharti Airtel, the biggest mobile operator in India, has requested that TRAI (Telecom Regulatory Authority of India) to explore the business models of companies that provide low-cost service to attract the new users. This was the first time when the company has expressed the concerns over the ongoing low- tariff initiated by Tata DoCoMo, one of the major competitor, when it had launched per second billing plan in India. Bharti Airtel has urged the regulator to investigate the predatory pricing plans adopted by telecom operators, which are increasing competition in the country. For example, Indian cellular service providers, are offering a variety of service plans as a means to attract new customers such as pre-paid calling schemes, discounted call rates at evening and night time, discounted roaming charges, free or minimum activation fee, discounted mobile-to-mobile call rates for long distance calling, and free SMS messaging service (Dutta and Sridhar, 2003). Therefore, it can be said that this might be one of the reason for increased competition among cellular service providers to win customers by offering services on reduced prices which therefore influence customers to switch the service providers because if the consumers perceive that the competitor’s price is better than the current cellular service provider, they considers switching. So, the cellular service providers have to way out the non- pricing competition strategies to win customers.
  • 18. 18 2.3.2.1.3 Switching costs Burnham, et al., (2003), defines switching costs as ‘the onetime costs that customers associate with the process of switching from one service provider to another’. Switching costs can be categorised in different ways such as Fornell, (1992) summarises switching costs into search costs, transaction costs, learning costs, loyal customer discounts, customer habit, emotional cost and cognitive effort, coupled with financial, social and psychological risk. Similarly, Burnham, et al. (2003), classified switching costs into procedural switching costs, financial switching costs and relational switching costs. And Klemperer, (1995), describes switching costs as artificial costs, learning costs and transactional costs. Switching costs protect firms from short-term fluctuations in service quality and provide flexibility to charge prices above marginal costs, to a certain point without fear of losing customers (Shy, 2002). There are many researches that investigated the relationship between switching cost and consumer switching behaviour. For example, Fornell (1992) states that switching cost can help to prevent switching behaviour by making it costly for consumers to change the service providers. High switching costs discourage consumers to leave the current service provider because the consumers may perceive switching costs to be higher than the expected benefits of switching the service provider (Lee, et. al., 2007). Cross-industry findings of Burnham, et. al. (2003), indicate that switching costs, such as monetary loss and uncertainties with the new service provider, deter switching despite dissatisfaction. Similarly Gronhaug and Gilly, (1991), states that high switching costs may tend even the dissatisfied customers to remain loyal. An alternative to increasing customer retention and improving profits is to create switching costs that make it difficult for customers to switch to competing service providers (Klemperer, 1995). It was noted that if the switching costs are too high then consumers prefers to stay with current service provider even if they are dissatisfied (Gronhaug and Gilly, 1991). Hauser, et al. (1994) stated that when switching costs are high, consumers become less sensitive to satisfaction level. Therefore, it can be understood that switching costs in terms of time, money and efforts acts as a significant barrier to switching when the consumers are dissatisfied with current service provider. With regards to cellular telecommunication services, switching costs are defined as loss cost, adaptation cost and move-in cost. Loss cost refers to the perception of loss in social status or performance, when cancelling a contract with current service provider; adaptation cost refers to perceived cost of adaptation, such as search cost and learning cost; and move-in cost refers to the economic cost which is involved in
  • 19. 19 switching to a new service provider, such as purchase of SIM card and subscribers fee (Kim, et al., 2004). According to Paul de Bijl and Peitz (2002), switching costs with regards to telecommunications market, the subscription of a consumer is valuable beyond the profits stemming from that consumer in the current period, because there are lock-in effects. Namely, a consumer suffers monetary or non-monetary disutility from switching service providers. Switching costs may be advantageous to early arrivals and disadvantageous to late arrivals, because initial market share is valuable. The presence of consumer switching costs might lead to higher profits. If consumers are aware of the lock-in effects then the companies possibly have to attract consumers by low prices and if the consumers are ignorant about lock-in effects then the companies have an advantage to build up market share as soon as possible because this allows them to extract profits from these consumers (Paul de Bijl and Peitz, 2002). In India the costs of switching from one cellular service provider to another is going down rapidly. In the beginning, changing the service provider also meant losing the number. But now, Mobile Number Portability (MNP) service was recently launched in India in January 2011. It allows consumers to switch from their current service provider to new service provider by retaining their current mobile number by paying just 19 Indian Rupees (telecomtalk.info). Therefore, it can be implied that switching cost is very low and consumers can easily afford to switch, if they feel so. It leads to increase in numbers alternatives and also added flexibility to the consumer to switch between the service providers with low switching costs. These low switching costs are also forcing cellular service providers to become more competitive in order to win the customers, market share, and profitability. 2.3.2.1.4 Changes in Technology As technology is advancing at a rapid pace, cellular service providers are scrambling to keep up with customer needs and in the process trying to distinguish themselves from the competitors. According to Sindhu (2005), offering new services not only helps to retain and gain customers but it also provides a means of generating greater revenue from one customer. He also states that companies which do not offer services in keeping with the technological trend ultimately end up with losing the customer to the competitor that does offer the service. For example, MTNL (Mahanagar Telecom Nigam Limited) was the first provider to launch 3G mobile service in India (telecomtalk.info). It might have helped MTNL company to retain and gain customers from its competitors through its new service, as the customers may be keen to use new
  • 20. 20 services that are in trend in the market. It is also able to generate more revenues by its value added service i.e. 3G mobile service was not available from any other service provider in India except MTNL. Sindhu (2005) states that, not only service providers but cellular manufactures are also trying to keep up with the trend by offering latest devices to the customers. For example, the new technologies in smart phones in which there are number of applications are made available by the manufacturers but the cellular service providers should make the services available to its customers by which they can be access the applications available in their phones or devices which were offered by the manufacturers. Sindhu (2005) states that, the cellular service providers that tie up with these manufacturers to offer the latest equipment along with enhanced services appear to emerge as winners in today’s market. In today’s scenario of rapid advancements in technology, as the cellular phone manufacturers are adding advanced options or applications in the phones, the cellular service providers are also forced to upgrade their services because of the increasing needs and wants of customers. If the cellular service providing firm ignore this fact, then the consumers may prefer switching to another service provider due to the unavailability of value added services or advanced services despite the availability of the core service which leads the company to lose its potential customers and may bear potential losses for the firm in terms of revenues, market share, etc. 2.3.2.1.5 Advertising According to Lee and Johnson (2005), advertising is a paid, non-personal form of communication about the organisation and its products or services that is transmitted to the target audience through mass media such as television, radio, newspaper, magazines, direct mails, outdoor displays, etc. Cengiz, et al. (2007) states advertising as the activities undertaken to increase sales or enhance the image of a service, firm or business, and the primary aim of advertising is to inform the potential consumers about the characteristics of products or services. In the scenario of intense competition, effective advertising may help organisation to communicate to the target customers more easily, effectively, and successfully. According to Davies (1996), Advertising can strengthen the communication between organisations and the consumers’, and help to reduce consumers’ perceived risks effectively. Advertising can also affect consumers’ behaviour because it can provide information to guide consumers’ purchasing decision. Similarly, Zou and Fu (2011), states that advertising aims to influence the way consumers view themselves and how
  • 21. 21 buying certain products or service can prove to be beneficial for them. The message is conveyed through advertising and tries to influence consumers’ purchasing decision. Steuernagel (2000), states that advertising for cellular services can be found on radio and television, and increasingly in national as well as local commercials, because of the consolidation of the carriers and participation of national companies. Most of the companies invest in ‘brand ambassadors’ for spreading positive message of the brand (Yeshin, 2006). For example, in India, most of the cellular service providers are investing on brand ambassadors and most of the brand ambassadors are famous television actors for promoting their brands. These brand ambassadors are influencing the audience to buy a particular brand by which most of the consumers are highly influenced and switch from one service provider to other irrespective of its price, quality, costs and other benefits. This may lead to increase in the rate consumer switching the current service provider to the competitor by the influence of favourite actors i.e. brand ambassadors. However, the literature indicates the several effects of advertising on switching behaviour, such as the study of Balmer and Stotvig (1997), indicates that effective advertising competition may stimulate consumer switching behaviour because of cellular service consumers’ have been informed about more opportunities for their purchasing choices. Hence, efficient advertising could enhance consumers’ loyalty and help retain consumers’ (Cengiz, et. al., 2007). On the basis of above discussion relating to advertising, it can be understood that advertising plays a significant role from influencing consumers decisions in terms of buy cellular services, and it also influence consumers intentions in terms of switching cellular service providers, as advertising makes consumers aware about the products, offerings, benefits, and others factors which act as the source of influencing or attracting consumers’ behaviour in favour of the firm. 2.3.2.1.6 Social influences (reference groups) According to Rodriguez (2009), social influence is the widely accepted factor which determines consumer behaviour. The members of social network heavily influence most of the consumers in choosing the mobile service provider. Rodriguez (2009), in her studies found that most of the consumers chose the same service provider as their friends, family members or colleagues were using. Similarly, the study of Kasande, (2008), indicates that social/reference groups which force consumer to match to others expectations or standards, affects broad values, and other factors and influence switching behaviour.
  • 22. 22 The study of Dasgupta, et al. (2008) indicates that, there is a relationship between social networks or groups and switching behaviour in mobile telecommunications. They used call graphs which was developed from a large amount of Call Data Records, and showed that the tendency of subscriber to switch the service provider was influenced by the number of members of social group who had already switched. It is likely that the other members of social group of the switcher will also get defected. Kasande, (2008), stated that the dissatisfied customers may express their feelings by complaining, looking for alternatives or negative word of mouth. The study of Wangenheim (2005), has explored customer behaviour after having switched a service provider. It says that the customers express their disappointment about a dropped service provider to others (social groups) in the form of negative word of mouth. The word of mouth (WOM) has been recognised as an important force in marketplace, influencing attitudes, preferences, purchase intention and decision making. He also indicates that, it is important for the service provider to understand why or in what situations the customers spread negative WOM after switching. Hence, it can help cellular service providers to predict which customers are most likely to spread negative WOM and represents ‘dangerous’ customer group if lost, because negative WOM prevent potential new customers of the social group of dissatisfied customer from choosing the service provider and it can also increases defection rate of current customers. Therefore, social influence or reference groups should be considered as one of the important factor which influence switching behaviour and buying decisions of consumers in cellular services. These are the groups which can influence the consumers to buy cellular services of a company by expressing positive feeling or experience with the service provider. They can also influence consumer switching behaviour by expressing negative experience with the service provider. Hence, it can be said that, the cellular service providers should be able effectively maintain the relationships with its existing consumers, which could help the company to decrease the rate of switching behaviour and also attract the social groups of existing consumers. This increases the firm’s consumer base, revenues, and also its market share.
  • 23. 23 2.3.2.1.7 Involuntary switching According to Rajeev (2008) states that, there are three types of switching determinants; influential triggers, situational triggers, and reactional triggers. He also states that involuntary switching falls under the category of situational triggers. He defined situational triggers as the changes in customers own lives which are not essentially related to service provider and therefore consumers decide to switch when they perceive that the service provider no longer reflects their reality. Therefore, it can be said that the different changes may act as situational triggers such as changes in work hours, financial status, location, and others which tend the consumers to switch their service provider unintentionally. Switching behaviour is occurred not only with the intentions to switch but also due to the involuntary factors (Roos, 1999). The involuntary switching factors are not under the control of both parties i.e. consumers and the service providers (Keaveney, 1995). Hence, it can be implied that for example, relocation of house in area where the services of current service provider are not available then the consumer is forced to switch the service provider unintentionally because it is beyond the control of consumer and service provider and it can put an end to service relationship despite satisfaction. The latest wave of acquisition and mergers within this industry is another factor leading to involuntary switching (Sidhu, 2005). For instance, the cellular service provider in India, Idea cellular has acquired Spice telecommunications in 2008 (articles.timesofindia.indiatimes.com) by which the entire consumer base of Spice telecommunications was forced to switch to Idea cellular. Therefore, it indicates that the consumers are forced for switch their cellular service providers due to the circumstances which are neither in the control of service provider, nor in the control of consumers. Under this situation, both the cellular service provider and the consumer will be unable help each other from exhibiting consumer switching behaviour. 2.4 Hypothesis Development On the basis of the above discussed literature relating to the topic of this research, following hypotheses have been developed to satisfy the objectives of the study. H1: Service quality has a direct and significant effect on consumers’ switching behaviour in terms of switching cellular service provider. H2: Price has a direct and significant effect on consumers’ switching behaviour in terms of switching cellular service provider.
  • 24. 24 H3: Switching costs has a direct and significant effect on consumers’ switching behaviour in terms of switching cellular service provider. H4: Changes in technology has a direct and significant effect on consumers’ switching behaviour in terms of switching cellular service provider. H5: Advertising has a direct and significant effect on consumers’ switching behaviour in terms of switching cellular service provider. H6: Social Influence (reference groups) has a direct and significant effect on consumers’ switching behaviour in terms of switching cellular service provider. H7: Involuntary switching has a direct and significant effect on consumers’ switching behaviour in terms of switching cellular service provider. 2.5 Chapter summary The above discussion has been aimed to provide the thorough understanding about the factors that influence consumer behaviour in terms of switching cellular service providers. For the purpose achieving the objectives of this study, seven most important factors that can influence consumers switching behaviour in cellular service has been explored on the basis of the literature. These factors are; service quality, price, switching costs, change in technology, advertising, social influence, and involuntary switching. In addition, the key arguments made by several researchers such as Lee and Murphy (2005), Roos, Edvardsson and Gustafsson (2004), Keanvey (1995), etc relating to these factors have been explored for the purpose of satisfying the objectives of this research and making this research more reliable. Furthermore, the methodology undertaken to carry out this research is discussed in the next chapter.
  • 25. 25 3. RESEARCH METHODOLOGY 3.1 Introduction This chapter will elaborate the methodology employed to carry out this research. It firstly defines the business research and then highlight research philosophies which include interpretivism philosophy and positivism philosophy and then discusses the chosen research philosophy i.e. positivisim philosophy. Then the types of research methods including qualitative method, quantitative method, and triangulation method have been explained and method taken for this research i.e. quantitative method has been justified. Furthermore, the types of sampling methods which include probabilistic and non-probabilistic sampling are explained and then the chosen sampling method i.e. simple random sampling has been justified. Then, the types of data collection used in this research (primary data and secondary data) have been discussed. Lastly, the data analysis method undertaken for this research and the limitations of this research has been discussed. 3.2 Business Research Research can be defined as something undertaken in a systematic way to increase and enhance knowledge (Saunders, et al., 2009). Cooper and schindler (2006), defines business research as ‘’a process of planning acquiring, analysing, and disseminating the relevant data, information and insight to decision makers in ways that mobilize the organisation to take appropriate actions which in turn maximise business performance’’. In relation to this, there are several things to be considered when someone is undertaking a research, including research philosophies/paradigms. 3.3 Research Philosophy/Paradigm According to Saunders, et al. (2009), research paradigm is defined as ‘basic belief system or world view that guides the investigation, not only in choices of method but in ontologically and epistemologically fundamental ways’. Research method is defined as methods or techniques used by a researcher when performing the action of research. However, research methodology is a way to systemically solve the research question (Kumar, 2005). Methods refer only to the various means by which data can be collected and/or analysed (Collis and Hussey, 2003).
  • 26. 26 According to Denscombe (2003), there are two types of research philosophies/paradigms; interpretivism (phenomenology y) and positivism.  Interpretivism philosophy can be defined as 'an approach that focuses how life is experienced'. This research approach examines human experiences, and is also 'characterised by a particular interest in the basics of social science'. (Denscombe, 2003). Intrepretivism also refers to the construction of social reality, seeing things from others' eyes, in which it has several significances in social research. In this type of research, the researchers assumes access to social reality and people experiences through social constructions i.e. language, consciousness, shared meanings and instruments (Michel and Myers, 2008). This type of research includes ethnography, interviews, participant observations, conversational analysis, focus groups, and case studies (Lincoln and Denzin, 2000).  Positivism philosophy argues that knowledge of social world can be obtained objectively and only the measureable data should be taken into account. Davies and Parker, (2007) argues that, positivist research is a scientific method in which after identification of problem data is collected. Furthermore, during the positivist research, human behaviour is predicted on the basis of universal laws and phenomenon. Positivist research includes questionnaires, secondary data, and quantitative statistics. Easterby-Smith et al. (1997), identify three reasons why the exploration of philosophy may be significant with particular reference to research methodology: First, it would help the researcher to refine and specify the research methods utilised in a study. This is intended to clarify the overall research strategy used. This would include the type of evidence gathered and its origin, the way in which such evidence is interpreted, and now it helps to answer the research questions posed. Understanding of research philosophy will enable and help the researcher to evaluate different methodologies and methods and avoid inappropriate use and unnecessary work by identifying the limitations of particular approaches at an early stage. Finally, it may help the researcher to be creative and innovative in either selection or adaptation of methods that were previously outside his or her. The table 3.1 shows the differences between positivism and interpretivism (phenomenological) research philosophy.
  • 27. 27 Positivist philosophy Interpretivism (Phenomenological) philosophy Basic Beliefs The world is external and objective The world is socially constructed and subjective Observer is independent Observer is part of what is observed Science is value-free Science is driven by human interests Researchers’ Focus Focus on facts Focus on meanings Look for causality and fundamental laws Try to understand what is happening Reduce phenomena to simplest events Look at the totality of each situation Formulate hypotheses and then test them Develop ideas through induction from data Preferred Methods Include Operationalising concepts so that they can be measured Using multiple methods to establish different views of phenomena Taking large samples Small samples investigated in depth or over time Table 3.1: Difference between positivism and interpretivism research philosophies Adapted from: Mangan, (2004) Positivism research philosophy is chosen for this study, due to the nature of data which has been collected after identifying the problem in this research. This is particularly relevant because the factors to determine consumers switching behaviour used in this study are based on theoretical concepts and previous researches. Another reason for
  • 28. 28 choosing positivism philosophy is to obtain the data that can be easily measured in order to convey the reliable results. Positivism philosophy is also chosen because of the nature of this research, which is based on achieving the main aim of this research by satisfying the objectives. Hence, it means that the research is objective rather than subjective which is the theme of positivism philosophy. Therefore, on the basis of theories and previous researches, seven hypotheses have been developed relating to seven factors that were identified as the major factors that can make significant effects on consumers switching behaviour. Then the hypotheses have been tested in order to achieve the objectives of this research focussing on facts to gain the more specific information relating to the situations in which consumers are influenced to exhibit switching behaviour. Whereas, the interpretivism philosophy may be risky to adopt for this research and may sometimes deliver inaccurate and unreliable results, if the researcher makes even a negligible mistake in understanding the situations. 3.4 Research Methods Research methods can be divided into three categories; quantitative methods, qualitative methods, and triangulation methods.  Quantitative research is based on the measurement of quantity or amount (Kumar, 2005). This type of research is applicable to phenomena that can be expressed by terms of quantity. On the other hand, qualitative research is concerned with qualitative phenomena, phenomena relating to quality or kind.  Quantitative research falls under empirical studies; which include more traditional ways in conducting psychological and behavioural studies and it has been a dominant method in researching social sciences (Kumar, 2005). Quantitative designs include experimental studies, quasi-experimental studies, etc in which control of variables, randomisation, as well as valid and reliable measures are necessary if the research aim is to reach generalisability among the research samples (Campbell and Stanley, 1963).  Quantitative data can range from a short list of responses to open-ended questions in an online questionnaire to more complex data such as transcripts of in-depth interviews or entire policy documents. Qualitative data analysis procedures including deductive and inductive approaches are used to assist understanding the meanings. Qualitative approach allows researcher to have “deeper understanding of organisational experiences and situations of individuals” (Ticehurst and Veal, 2000). Observation, informal and in-depth interviews altogether with observation can provide qualitative data. Qualitative
  • 29. 29 methods make use of limits the number of observations allowing deeper understanding of the study.  Whereas, in triangulation method, a mixture of both qualitative and quantitative methods is used (Cooper and Schindler, 2006). First a qualitative data is used interviewing a sample of respondents to achieve the key questions and then these are used to design and evaluate survey questionnaires for the second stage. As Binsardi, (2008) states that, qualitative methods informs quantitative analysis. The comparison between qualitative and quantitative research can be found in the table 3.2. Qualitative Quantitative Focus on Research Understand and interpret. Describe, explain and predict. Researcher Involvement High-researcher is participant or catalyst. Limited; controlled to prevent bias. Research Purpose In-depth understanding, theory-building. Describe and predict; build the real theory. Sample Design Non-probability, purposive. Probability. Sample size Small. Large. Research Design May evolve or adjust during the course of the project. Often uses multiple methods simultaneously or sequentially. Consistency is not expected Involves longitudinal approach.  Determined before commencing the project.  Uses single method or mixed methods.  Consistency is critical  Involves either a cross- sectional or longitudinal approach. Participant Preparation Pre-tasking is common. No preparation desired to
  • 30. 30 avoid biasing the participant. Data type and Preparation Verbal or pictorial descriptions.  Reduced to verbal codes (sometimes with computer assistance).  Verbal descriptions.  Reduced to numerical codes for computerised analysis. Data analysis  Human analysis following computer or human coding, primarily non-quantitative. Forces researcher to see the contextual framework of the phenomenon being measured-distinction between facts and judgments less clear.  Always on-going during the project.  Computerised analysis— statistical and mathematical methods dominate.  Analysis may be ongoing during the project.  Maintains clear distinction between facts and judgements. Insights and Meaning Deeper level of understanding in the norm, determined by type and quantity of free- response questions.  Researcher participation in data collection allows insights to form and be tested during the process.  Limited by the opportunity to probe the respondents and the quality of the original data collection instrument.  Insights follow data collection and data entry, with limited ability to re- interview participants. Research Sponsor Involvement May participate by observing research in real time or via taped interview. Rarely has either direct or indirect contact with participant.
  • 31. 31 Feedback Turnaround  Smaller sample sizes make data collection faster for shorter possible turnaround.  Insights are developed as the research progresses, shortening data analysis.  Large sample sizes lengthen data collection; internet methodologies are shortening turnaround but inappropriate for many studies.  Insight development follows data collection and entry, lengthening research process; interviewing software permits some tallying of responses, so data collection progresses. Data Security More absolute given use of restricted access facilities and smaller sample sizes. Act of research in progress is often known by competitors, insights may be gleaned by competitors for some visible, field-based studies. Table 3.2: Comparison between Qualitative and Quantitative Research Source: (Anggraeni, 2010). Quantitative research method has been used for this research because it permits to obtain the views of large audience in less time as compared to qualitative method, which in turn can help to generalise the results of this research and make sure that the outcome is reliable. Quantitative method is also chosen to avoid favouritism of the participants in order to reduce the risk of unreliability in results. As the objectives of this research is based on seven determinants of consumers switching behaviour, quantitative method helps to know the significance level of each determinant by analysing the influence of factors on switching behaviour of the proportion of participants. As quantitative method measures consumers’ behaviour, opinions, and attitudes, it is be appropriate to choose this method because it is more relevant to this research and deliver more reliable outcome. This type of data can range from simple counts such as the frequency of occurrences to more complex data such as scores, prices or rental costs. Data obtained in this method is through questionnaire, surveys, or from secondary sources (Ticehurst and Veal, 2000). Therefore, the survey questionnaire has been designed to evaluate the factors influencing consumers’ switching behaviour in cellular services. On the other hand, the qualitative method for
  • 32. 32 this research may incur biasing of participants and may not provide the appropriate information on significance level of each determinant or factor that influence consumer switching behaviour because the number of participants will be less as compared to quantitative method. 3.5 Sampling According to Denscombe (2003), there are two kinds of sampling techniques that can be used by researchers. The first is known as ‘probability’ sampling and the second is known as ‘non-probability’ sampling.  Probability sampling is based on the idea that people or events that are chosen as the sample are chosen because the researcher has some notion of the probability that these will be the representative cross-section of people or events in the whole population being studied (Denscombe, 2003). Probability sampling is the most utilised sampling method for social research purpose (Babbie, 2008). Probability sampling can be divided into different types which include simple random sampling, interval or systematic sampling, stratified sampling, cluster or multi-stage sampling (Bless, et al., 2006).  Non-probability sampling is often conducted in social research where the situations do not permit probability samples used in large scale basis (Babbie, 2008). Non-probability sampling includes accidental or availability sampling, purposive or judgemental sampling, and quota sampling (Bless, et al., 2006). This type of sampling can also be used where no probability sampling method is appropriate. Non-probability sampling can be further divided into purposive sampling, snowball sampling, and quota sampling. The objectives of this research are to explore the factors that influence consumers switching behaviour of young adults in regards to cellular service providers. Therefore, in order to achieve these objectives specifically, the mobile phone users in Bangalore who are aged between 18 to 35 years are to be chosen, so the appropriate method for sampling is ‘simple random sampling’. It helps to obtain the opinions of respondents with different characteristics and can also help to add some extent of generalisability in the results. This method is also used for this research, for the purpose of providing the greater flexibility in collecting the primary data. Sample has been collected by sending questionnaires electronically to respondents via e-mail and the purpose of this research has also been explained to the respondents, so that they can feel free and secure to participate and respond genuinely to the questions that has been asked to them for the purpose of evaluating the influence of factors on switching behaviour. This will add
  • 33. 33 more reliability to results of this research. The questionnaires were emailed to 100 respondents in Bangalore but out of 80, only 60 of them responded. Hence, 60 questionnaires are used for the analysis. 3.6 Data Collection There are mainly two types of data: primary data and secondary data. The primary data can be collected through various methods like personal interviews, questionnaires and direct observations etc. Thus, researchers may obtain the original data from the respondents. Furthermore, the primary data can provide the current and realistic views about the research questions. The secondary data is mainly gathered from internal company information, government agents, books, journals and trade associations. This type of data is easily available and accessible. In addition to that, secondary data can aid primary data collection and make the results more specific and reliable. Both primary data and secondary data are used for this study. Primary data will be collected using questionnaire which is distributed electronically to respondents via internet in Bangalore, India. The respondents are mobile phone users, with age ranging from 18-35 years old. As Garbarino and Johnson (1999) asserted, customers’ evaluation of a supplier’s or service provider’s offerings would shape their behaviours. Hence, this questionnaire aims to assess the most prominent perception with regards to relationship; commitment towards the service providers (Moorman et al, 1992). Satisfaction and payment equity are important factors in affecting customer’s evaluation towards the service provider’s offering and hence should be included (Bolton and Lemon, 1999). Questionnaires method is chosen for this research because it has advantages over other methods of data collection. Although the advantages can vary according to the methods with which they are being compared, the primary advantages of using questionnaire as data collection method are efficiency, large sample size, cheap costs, assured confidentiality, sampling of many topics, and having a permanent original copy of the responses (Downs and Adrian, 2004). Questionnaire is one of the most popular used research techniques in social research. The main part in questionnaire is question. First type is open questions, which ‘leave the respondent to decide the wording of the answer, the length of the answer and the kind of matters to be raised in the answer’ (Denscombe, 2004:155). Another type is close question, which needs respondent to select answers from a range of options designed on the questionnaire. This question may generate a number of quantitative
  • 34. 34 data. Thus, researchers should know well about what kind of quantitative data will be collected and what statistic procedures will be adopted in order to avoid generating pool analysis. Figure 3.1 shows the different types of questionnaire based on how they are administered Figure 3.1: Types of Questionnaire Source: (Saunders, et al., 2009) Types of questionnaire are also classified basing on the structure of the questions asked. Normally, they are divided into several classifications; such as free-response questions, dichotomous questions, multiple-choice questions (Cooper and Schindler, 2006). Dichotomous questions are questions which divide the respondents into two or more groups according to the attributes, such as male and female, different age groups, education group, and others. Multiple choice questions would allow the respondents to have more choices and select the one that fits within a possible frame of answers. These answers are usually designed by the researcher by using scoring method such as 1 to 5 or giving options, etc. Open-ended questions are meant to gather unstructured responses from the respondents. The type of questionnaire used in this research was self administered questionnaire. This was that type of questionnaire where there was no guidance to the respondents by the researcher (Saunders et al., 2007). The questionnaire has closed ended questions and for the main research questions, 5-point likert scale has been used. It is frequently used variation of the summated rating scale which consists of statements that express either a favourable or unfavourable attitude towards the object of interest (Cooper and Schindler, 2006). The scale presents a set of statements where respondents are asked to express their level of agreement or disagreement on five-
  • 35. 35 point scale. Each degree of agreement or disagreement was provided 5 options ranging from strongly disagree to strongly agree. The questions has been designed on the basis of the literature to assess the major factors influencing switching behaviour and are divided into 23 questions in total and the questionnaire has been divided into two sections. Section 1 has 4 questions which deal with the behavioural and demographic characteristics of the respondents. The questions are on the gender, age group, educational level, and occupation of the respondents. Section 2 has 19 questions which include one general question on switching behaviour and eighteen questions on that were classified on the basis of seven factors that were identified as the major factors in influencing consumer switching behaviour in cellular services. The seven factors on which questions are divided include service quality, price, switching costs, change in technology, advertising, social influence, and involuntary switching. Secondary data was also used to achieve the objectives of this research and it has been collected from various textbooks and journals related to marketing, customer relationship management, and customer behaviours, as well as previous relevant researches. 3.7 Data Analysis This study have utilised Microsoft word to design the questionnaire and SPSS 19 to analysis the primary data. Microsoft word is first used to design the questionnaire, and then SPSS 19 to generate tables and diagrams from the findings. The data from the respondents has been coded under several categories such as ‘price’, ‘service quality’, ‘switching costs’ etc. Furthermore, the findings will be statistically analysed to draw a conclusion using SPSS 19. Firstly, the descriptive statistics has been used to describe the basic features of the data in a study and to provide simple summaries about the sample and the measures and also to provide quantitative analysis of collected data. Then, regression analysis and correlation analysis has been used to investigate the statistical significance and relationships between the variables (independent and dependent variables) that were designed to test the hypotheses and to achieve the objectives of the research which is to evaluate the factors influencing consumers switching behaviour in cellular services..
  • 36. 36 3.8 Limitations It is accepted that the focus on mobile phone services users in Bangalore, India would impose limitations on this research’s ability to arrive at conclusive findings in relation to the switching behaviours of mobile phone users in general. Given the time available to finish this study and the geographical as well as funding limitations, biases may occur in the favour of generalising the research findings. In order to counter the limitations with regards to the focus of this study, the respondents were asked in details when they fill up the questionnaire. The variables used in this research are service good variables (service by mobile phone service providers). This can bring limitations to the study as it is possible that different type of services has many different ways in retaining customers and customers of different type of services will possess different customer behaviours. Due to the time constraint and access availability, the sample size of this study is also limited. Having more respondents for the primary data would increase the validity and reliability of the findings. In terms of data, it is acknowledged that both qualitative and quantitative data have their own strengths and weaknesses. 3.9 Chapter summary The research methods that have greater relevance to the topic of this study has been highlighted and discussed in order to achieve the objectives more evidently. In this chapter, the theoretical concepts and studies of known researchers such as Saunders (2007), Descombe (2003, 2004), Bolton and Lemon (1999), etc has been considered which has relevance with this research. It can help to select appropriate research method for this research and gain more reliability. The main focus of this chapter was aimed to provide the clear idea about the methods adopted in this research by illuminating the reasons for adopting the respective methods. The discussion on appropriate research methods has been made for the purpose of gaining the valuable insight for the chosen methods in order to achieve the objectives of this research. It includes the discussion on research philosophy, research methods, sampling, data collection, data analysis and limitations of this research. Furthermore, the next chapter will discuss key findings identified from the data collected and then analysed using statistical tests. Primary data in this study will be collected by the means of questionnaires, which are expected to be 60.
  • 37. 37 4. FINDINGS AND ANALYSIS 4.1 Introduction After collecting information from the data i.e. primary and the secondary data, the next step is to analyse the data. In this chapter, firstly the findings from the collected will be drawn and explained in terms of tables and graphs representing frequency and percentage of respondents by using SPSS for the purpose of bringing the ease in representation. Then the analysis of the collected data will be done by using descriptive statistics, regression analysis and correlation analysis. Then the Hypotheses testing and discussion has been given. The results will highlight, if there is any effects of service quality, price, switching costs, change in technology, advertising, social influence, and involuntary switching, with consumers switching behaviour. The subsequent results gained from this research will be used to underpin the research questions in order to achieve the objectives of this research. The total number of questionnaires sent out to mobile phone users in Bangalore city was 100 and only 60 has been received completely which can be interpreted. This indicates that the response rate is only 60 percent. If response rate is taken into consideration, high response rate points to the importance of what a researcher is doing (Gillham, 2000). 4.2 Findings of the data The findings of the data collected have been divided into two sections. The first section is related to the demographics of the respondents. The second section is related to the respondents’ opinion about the factors which have/can influence their decision to switch the cellular service provider.
  • 38. 38 4.2.1 Section 1 4.2.1.1 Demographics As according to Block & Roering (1976), demographic characteristics have been regarded as a basis for understanding customer characteristics and behaviour in the marketing area. Therefore, the following questions on demographics of respondents have been designed in order to understand the role of particular demographics in switching behaviour and to satisfy the aim of this research. 4.2.1.1.1 Gender This question was about the gender of the respondents. The table 4.1 and the graph below show the finding of this question. What is your gender? Frequency Percent Valid Percent Cumulative Percent Male 46 76.7 76.7 76.7 Female 14 23.3 23.3 100.0 Total 60 100.0 100.0 Table 4.1: Gender Chart 4.1: Gender Noel (2009) indicates that, consumers with different gender exhibit different behaviour in the same situation and they also have different spending powers. For example, 25% of women in United States are earning more than others and can spend more. Hence, 76.70% 23.30% 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% Male Female Gender
  • 39. 39 it becomes important to understand the forces that influence switching behaviour of both genders i.e. male and female. The findings of this question on gender shows that, 46 respondents were male which makes 76.7% and 14 respondents were female making 23.3% of the total respondents. 4.2.1.1.2 Age group The second question in the questionnaire was to know the age group of respondents. The table 4.2 and chart 4.2 below shows the findings of this question. Table 4.2: Age group Chart 4.2: Age group Age group is plays a very important role in determining the consumers switching behaviour. The consumers with different age groups have different needs and interests and also different buying powers (Noel, 2009). The young consumers are more frequent mobile phone users than elderly people and they also frequently switch their cellular service providers because they are always willing to experiment new services 38.30% 33.30% 28.30% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 18-24 Years 25-29 Years 30-35 Years Age group What is your age group? Frequency Percent Valid Percent Cumulative Percent 18-24 Years 23 38.3 38.3 38.3 25-29 Years 20 33.3 33.3 71.7 30-35 Years 17 28.3 28.3 100.0 Total 60 100.0 100.0
  • 40. 40 (Ericson, 2004). Hence, the forces that influence young consumers are needed to be understood as the objective of this research is evaluate the factors influencing young adults to switch cellular service providers. The findings of this question on age group shows that, it was found that majority of respondents belong to the age group of 18-24 years i.e. 23 respondents which make 38.30% of the total respondents. Whereas the respondents with the age group of 25-29 were 20 making 33.30% of the total respondents. And the respondents with the age group of 30-35 were 17 making 28.30% of the whole sample size. 4.2.1.1.3 Occupation The third question in the questionnaire was to enquire about the occupation of the respondents. The table 4.3 and chart 4.3 shows the findings of this question. What is your occupation? Frequency Percent Valid Percent Cumulative Percent Student 22 36.7 36.7 36.7 Professional 18 30.0 30.0 66.7 Self-employed 6 10.0 10.0 76.7 Labourer 10 16.7 16.7 93.3 Unemployed 4 6.7 6.7 100.0 Total 60 100.0 100.0 Table 4.3: Occupation Chart 4.3: Occupation 36.70% 30.00% 10.00% 16.70% 6.70% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% Occupation
  • 41. 41 The consumers with different occupation have different level of income and so as the spending powers and they make their buying decisions on the basis of their status (Noel, 2009). Hence, this question has been designed to understand the behaviour consumers with different occupations in order to enquire which factors influence them to switch cellular service providers. The findings of this question shows that, the respondents participated in this research were from different occupational backgrounds. It has been found that majority of respondents were students 22 respondents which makes 36.70% of the total respondents. Whereas, 18 respondents were professionals and 10 were labourers making 30% and 16.70% respectively. Remaining 6 were self-employed and 4 were unemployed, making 10% and 6.70% of the total respondents. 4.2.1.1.4 Educational level The fourth question in the questionnaire was to enquire the educational level of the respondents. The table 4.4 and 4.4 shows findings of this question. What is the highest level of education level of education you have achieved? Frequency Percent Valid Percent Cumulative Percent Primary education 6 10.0 10.0 10.0 High school education 11 18.3 18.3 28.3 Diploma/certification 10 16.7 16.7 45.0 Bachelor degree 13 21.7 21.7 66.7 Post-graduate degree 20 33.3 33.3 100.0 Total 60 100.0 100.0 Table 4.4: Educational level
  • 42. 42 Chart 4.4: Educational level Consumers with different educational levels perceive services differently and also have different level of information and knowledge about the products and services due to the trend in schools, colleges, universities, etc ( Noel, 2009). Different factors influence the decision of consumers with different educational level to switch cellular service provider and therefore, this question is designed to understand those factors. The findings of this question shows that, the respondents have achieved different educational levels i.e. 20 respondents were post-graduates making 33.30% of the total respondents and 13 were bachelor degree holders making 21.70% of the total. Whereas, 11 respondents has achieved high school education which makes 18.30% and 10 and 6 has achieved diploma/certification and primary education making 16.70% and 10% of the total sample respectively. 10% 18.30% 16.70% 21.70% 33.30% 0% 5% 10% 15% 20% 25% 30% 35% Educational Level
  • 43. 43 4.2.2 Section 2 4.2.2.1 Likeliness of switching service provider The fifth question in the questionnaire was to find out the likeliness of consumers to switch from current cellular service provider to another. This question helps to enquire what percentage of respondents are likely to switch their cellular service provider and the reasons for switching which has been asked in the following question in order to satisfy the aim and objectives of this research. The finding of this question is shown in the table 4.5 and chart 4.5. Are you likely to switch from current cellular service provider to another? Frequency Percent Valid Percent Cumulative Percent Very Unlikely Unlikely Neutral Likely Very Likely 11 12 5 19 13 18.3 20 8.3 31.7 21.7 18.3 20 8.3 31.7 21.7 18.3 38.3 46.7 78.3 100.0 Total 60 100.0 100.0 Table 4.5: Likeliness of switching service provider Chart 4.5: Likeliness of switching service provider. 18.30% 20% 8.30% 31.70% 21.70% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% Very Unlikely Unlikely Neutral Likely Very Likely Likeliness of switching service provider
  • 44. 44 The findings of this question shows that, 19 respondents are likely to switch which makes 31.70% and 13 are very likely which makes 21.70% of the total respondents. Whereas, 12 respondents are unlikely and 11 are very unlikely making 20% and 18.30% respectively and remaining 5 respondents are neutral, which makes 8.30% of the total respondents. This question was aimed at understanding the rate of respondents likely to switch their cellular services providers and the situations which is influencing them to switch. Understanding the situations and factors can helps to cellular service providers to reduce the likely of consumers who are willing to switch and to attract consumer of competitors who are about to switch. This question was also aimed at satisfying the third objective of this research which is to investigate the likeliness of respondents to switch from current cellular service provider to another. However, the measures as to how the cellular service providers can prevent or reduce the rate of likeliness of the switching has been tested and discussed in the analysis part of this chapter.
  • 45. 45 4.2.2.2 Service quality It was indicated that, improving service quality satisfies customers and retains their loyalty and the customers with negative service experience may consider switching their service providers (Lee and Murphy, 2005). Therefore, in order to determine the effect of service quality on consumers’ switching behaviour, following questions relating to service quality has been designed to address the research objectives. 4.2.2.2.1 (SQ1): Customer service The sixth question was to find out the level of customer service provided by the current cellular service provider to respondents. The finding of this question is shown in the table 4.6 and chart 4.6. The level of customer service provided by the current cellular service provider is good. Frequency Percent Valid Percent Cumulative Percent Strongly disagree 13 21.7 21.7 21.7 Disagree 30 50.0 50.0 71.7 Neutral 4 6.7 6.7 78.3 Agree 10 16.7 16.7 95.0 Strongly agree 3 5.0 5.0 100.0 Total 60 100.0 100.0 Table 4.6: Level of customer service Chart 4.6: Level of customer service 21.70% 50% 6.70% 16.70% 5% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% Strngly disagree Disagree Neutral Agree Strongly agree Level of customer service
  • 46. 46 The importance of customer service cannot be underestimated. It requires constant effort to maintain good relations with the customers of the company. It is a critical element in all growth and retention strategies (Gershon, 2009). Therefore, this question helps to understand the impact of customer service on switching behaviour. The findings of this question shows that, from the whole sample size, 30 respondents i.e. 50% disagree with the statement and 13 respondents strongly disagree which makes 21.70% of the total respondents. Whereas, 10 respondents agree with the statement and 3 respondents strongly agree making 16.70% and 5% respectively. Remaining 4 respondents are neutral with the statement which makes 6.70% of the total respondents. It implies that majority of consumers are towards the negative side when it comes the customer service provided by their cellular service providers which means that consumers service is also influencing the likeliness of consumers switching behaviour. 4.2.2.2.2 (SQ2): Network coverage The seventh question in the questionnaire was to enquire about the network coverage of the current cellular service provider of the respondents. The finding of this question is shown in the table 4.7 and chart 4.7. The network coverage of the current cellular service provider is good. Frequency Percent Valid Percent Cumulative Percent Strongly disagree 18 30.0 30.0 30.0 Disagree 13 21.7 21.7 51.7 Neutral 8 13.3 13.3 65.0 Agree 12 20.0 20.0 85.0 Strongly agree 9 15.0 15.0 100.0 Total 60 100.0 100.0 Table 4.7: network coverage
  • 47. 47 Chart 4.7: Network coverage The major feature of mobile telecommunications is its coverage. Consumers evaluate network coverage of the cellular service providers differently according to the utility they drive from completed calls (Madden, 2003). The impact of network coverage on consumers switching behaviour can be evaluated through this question. The findings of this question shows that, 18 respondents strongly disagree to the above statement about network coverage which makes 30% of the total respondents and 13 respondents disagree making 21.70% of the total sample. And 12 respondents agree and 9 respondents strongly agree with the statement which makes 21% and 15% of the total respondents respectively. The remaining 8 respondents are neutral with the statement making 13.30% of the total respondents. The finding of the above question relating to network coverage of the cellular service provider is based on achieving the objectives of this research. This implies that most of the respondents expressed negative opinion when it comes to network coverage and therefore may be likely to switch their cellular service provider. 30.00% 21.70% 13.30% 20% 15.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% Strongly disagree Disagree Neutral Agree Strongly agree Network coverage
  • 48. 48 4.2.2.2.3 (SQ3): Network problems The eighth question in the questionnaire was to enquire about the network problems with the current cellular service provider. The finding of this question is given in the table 4.8 and chart 4.8. There are frequent network problems with the services of the current cellular service provider. Frequency Percent Valid Percent Cumulative Percent Strongly disagree 8 13.3 13.3 13.3 Disagree 15 25.0 25.0 38.3 Neutral 5 8.3 8.3 46.7 Agree 20 33.3 33.3 80.0 Strongly agree 12 20.0 20.0 100.0 Total 60 100.0 100.0 Table 4.8: Network problems Chart 4.8: Network problems Frequent network problems refer to weak connectivity and frequent disconnections in the services provided by cellular service providers (Avresky and Diaz, 2009). This question helps to evaluate the effect of network problems on switching behaviour of consumers. The findings of this question shows that, 20 respondents agree and 12 respondents strongly agree to the above statement about network problems which makes 33.3% and 20% of the total respondents, whereas, 15 respondents disagree and 8 respondents strongly disagree to the statement making 25% and 13.30% of the 13.30% 25% 8.30% 33.30% 20% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% Strongly disagree Disagree Neutral Agree Strongly agree Network problems