Factors which determine individual consumer choice of mobile telephone service providers in the city of Nairobi

Abstract

The mobile platform has been heralded as the next frontier for modern business creating entirely new paradigms for interactive marketing initiatives. In a growth industry characterized by competition and alternative service providers, consumers have the freedom to choose from among the available alternatives. The research had two objectives. First, it sought to identify factors that influence individual consumer's choice of a mobile phone service provider in the mobile telephone industry. Secondly, it sought to assess the relative importance of the pertinent factors. In undertaking the study, individual users of mobile telephone services within Nairobi were targeted. Primary data was collected using a semi - structured questionnaire. The survey instrument was administered directly to the respondents by the researcher within the selected areas. Out of the targeted 140 respondents, the researcher managed to obtain a response rate of 77.8%. The results of the study showed that 59% of the respondents found costs of the services offered to be the most important factor while 30% stated that countrywide network coverage was the most important factor. Other factors were rated as most important in the following order; other people's (family members, workmates and friends) choice of service providers (3.7%), clarity in communication (2.8%) and courtesy of the customer care personnel (1 %). The study also revealed that the ability o( a service provider to cover a wider 'geographical area is considered to a high extent by consumers when making a choice between the service providers. It was also found that the appeal of the company Chief executive officer was considered to a moderate extent by the consumers in their choice of mobile phone service providers.

Arising from the research findings, it was suggested that further study be conducted to establish the effect of subscriber demand on the price charged by service providers and to extend the study to other urban as well as rural areas.