Customers` perception towards mobile services and their influencing factors in the choice of service providers

Abstract

Given the importance of customers’ perception in telecommunication business and the recent development of cellular phone business in Malaysia, a critical research agenda have arisen that requires attention of understanding the perception of consumers towards operators and the factors those are influencing in the choice of the providers. The research has set as its objective in the discovery of the influencing factors of customers’ perception in their decision-making towards purchasing mobile phone line, to determine services information for formulating customers’ perception of the mobile phone operators. To accomplish the objectives this research has explained the related concepts and theories; revealed and synchronized literature on consumer behaviour and developed a research framework grounded on a strong theoretical and literature review background. The empirical study was conducted in major cities in Malaysia where the emergency is required for this type of research to understand the customers’ perception of mobile phone operators. The target population of this study were general customers’ (N=400) of three main operators in Malaysia form significant cities where hand phone users are proportionately significant compared with other cities in Malaysia. The survey instruments included with demographic survey, and service quality, advertising and promotion, brand image, corporate image, customer satisfaction and service provider’s price with seven point rating scale. The proposed research model described the direct relationships of service quality, advertising and promotion, brand image, corporate image, customer satisfaction and service providers’ price towards customers’ perception. These paths were related to causal processes. Thus structural equation modeling approach is necessary to examine these variables in this research. The data analysis of this study was organized into four stages (Stage I – Descriptive Analysis; Stage II – Exploratory Factor Analysis; Stage III – Confirmatory Factor Analysis; Stage IV – Structural Equation Modeling). Data were coded and analyzed by using the Statistical Packages for Social Sciences (Statistical Package for the social Science Version 15 SPSS Inc., Chicago, IL) and AMOS7(Analysis of Moment Structure Version). The research findings are based on perceptions of customers’ about mobile phone operators. The study produced mixed result from the statistical outcomes; some of these results were expected and some, although obvious were interesting. Finally, it is proposed that, brand image is considered to be significant factor that influences customers’ perception towards an operator, effect of advertising and promotion on customers’ perception towards an operator is significant, there is a positive relationship existed between customer satisfactions toward customers’ perception towards mobile phone operators, price or call rate of an operator is considered a substantial factor that influences customers’ perception towards an operator, effect of service quality on customers’ perception towards an operator is significant. Interestingly the effect of corporate image is not significant with customers’ perception towards an operator. The findings of this research are valuable asset for mobile phone operators in Malaysia those who are struggling to implement a successful strategy for retaining consumers. Academicians, practitioners, researchers, policy-makers can also benefit from this research and its findings.