Consumer perception of tariff plans offered by livable telephone service providers in Nairobi

Abstract

The problem of research in this study was how consumers perceive the tariffs plans offered by the mobile telephone service providers. The objectives of this study were to determine the level of consumer awareness and knowledge of the tariff plans, the consumer perception of tariff plans and establish whether there is a difference in consumer's perception of the tariff plans offered by Mobile Service Providers. The study was a descriptive survey whose population of interest comprised of subscribers of mobile services offered by both Celtel and Safaricom in Nairobi Central Business District. A sample size of 200 subscribers was selected, with 120 for Safaricom and 80 for Celtel. Out of 200 respondents sampled for the study, 187 returned the questionnaires reflecting a response rate of 94%. Primary data was collected using a structured questionnaire. The study found that there was a high level of awareness of the mobile service providers. Safaricom mobile service provider subscribers had a higher level of awareness than for Celtel. Radio and TV were the main source of awareness for both mobile service providers. The study concluded that providing effective information in service environments could reduce consumer search costs and lead. to consumers making optimal .. purchasing decision . Consumer's perception of tariff plans, were varied but were all based on underlying constructs such as accessibility, simplicity of understanding the tariff plan, good customer service, mode of operation, cost, additional support services and service security. The studies recommended that Mobile Service Providers should create awareness in all the age categories and target the market more with electronic and broadcast media. The MSPs should stabilize and increasing their market impact by gaining an in depth knowledge and understanding of the Kenyan mobile telephone service market as well as the market dynamics. Time for the study was a limitation given the large number of mobile phone subscribers against the sample that was taken.