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Faculty of Commerce and Business Administration
Marketing Graduation Project for year: 2012/2013
The impact of advertising on customer perception in the
telecommunication sector
Applied case on: (Etisalat, Vodafone and Mobinil)
Team members:
Name ID
Ahmed Samir 20090890
Menna Ayman 20090495
Merna Nader 20090532
Samar Mohammed 20091395
Under supervision: Dr. Sherine EL-Sakka
1
Table of Contents:
SUBJECT PAGE
Chapter One: Research methodology and literature review:
1.1 Research methodology:
1.1.1 Preamble……………………………….……………………………….…….….…...5
1.1.2 Research problem…………………….………………………….…….…….………6
1.1.3 Research question ………………….….………………………….….……….……..6
1.1.4 Research objective………………………..……………………...............................7
1.1.5 Research hypothesis………………………...……………………….………….……7
1.1.6 Data collection method……………………...……………………………….………7
1.1.7 Sample ………………………………………...…………………………………….8
1.2 Literature review: ………………………………………...…………………..……………....9
Chapter Two: Advertising:
2.1 Advertising
2.1.1 Advertising definition………………………………….………………………………..11
2.1.2 Types of Advertising:……………………………………..……………………………. 11
2.1.2.1 Print Advertising - Newspapers, Magazines, Brochures, Flyers…………….…… 12
2.1.2.2 Outdoor advertising – Billboards and Kiosks……………………………………..14
2.1.2.3 Broadcastadvertising – Television, Radio and the Internet………………..................15
2.1.2.4CovertAdvertising – Advertising in Movies………………………….………….….…17
2.1.2.5CelebrityAdvertising………………………………………………………………………...18
2.1.3 Techniques of advertising………………………………………………………….........18
2.1.4 Importance of advertising………………………………………………………..……...19
2.1.5 Direct marketing .…………………………………….……………………………........19
Chapter Three: Customer perception:
3.1 Customer perception
3.1.1 Customer perception meaning……………………………..………………………..22
3.1.2 Consumer perception process: ……………………………..……………………….23
3.1.2.1 Exposure…………………………………………………………………….…23
3.1.2.2 Attention…………………………………………..…………………………...23
3.1.2.3 Organization……………………………………...…………………………....24
3.1.2.4 Interpretation……………………………………...…………………………...25
3.1.2.5 Retention ………………………………………...…………………………....25
2
Chapter Four: Telecommunication industry and effects on customer perception:
SECTION ONE: 4.1 Telecommunication industry: ……………………….……………………….....27
4.1.1 Service quality ………………………………………………………..27
4.1.2 Price………………………………………...………………………....28
4.1.3 Promotions: ……………………………………….……………………....28
4.1.3.1 Promotional mix:………………………...……………………..28
4.1.3.1.1 Personal selling…………………………………………..29
4.1.3.1.2 Sales promotions:………………………………………..29
4.1.3.1.2.1 Theoretical considerations………………………..30
4.1.3.1.2.2 Types of sales promotions ….…………………...30
4.1.3.1.2.3 Role and objectives of sales promotions…….....35
4.1.3.1.3 Public relations……………………………………...…..37
4.1.3.1.4 Promotional strategies:………………………………….37
4.1.3.1.4.1 Push strategy……………………………………...37
4.1.3.1.4.2 Pull strategy………………………………...….....37
SECTION TWO: 4.2 Effects of advertising on customer perception in telecommunication sector:
4.2.1 Effects of TV advertising on customer perception:……………..…38
4.2.2 Effect of mobile telecommunication service on customer
perception………………………………………………………………………………………….…..39
Chapter Five: Research findings…………………………………………………………………….41
Chapter Six: Recommendation and Conclusion:
6.1 Recommendation……………………………………………………………………………...63
6.2 Conclusion…………………………………………………………………………………….64
Appendix (Questionnaire version)…………………………………………………………………...65
List of References..................................................................................................................................69
3
Acknowledgment:
We would like to express our thank to
Dr. Sherine EL.Sakka, for her time, valuable advice and support she given us in the writing of
our project. She was very willing to teach and help us. We couldn’t have asked for a better
mentor.
We would like also to thank and give honor to our teacher, Ms. Jailan Sarhan, for her guidance
and being patient with all our questions and having to explain everything to us over and over.
We want to thank our university, Future University in Egypt for giving us facilities to understand
how to make our graduation project.
4
Chapter One
Research methodology
and literature review
5
1.1 Research methodology:
1.1.1 Preamble:
What would happen if one telecommunication available in the market? What do they
compete in?
Let's go back when Mobinil was the first telecom in the market. Where the cost of the
call was high and there wasn't much advertisement. There weren't so many advantages for the
customers. It wasn't available for everybody because of the high cost. However, a few years
later, the situation has improved greatly because a new telecommunication company as
Vodafone found its way in the telecom market. Each company was trying hard to attract more
customers so they used more advertisement and the prices of calls went down because of this
competition. Then another company (Etisalat) joined in the race, which turns lead competition to
dramatically increases. In these days, the three competitors are trying to attract customer by
presenting aggressive price promotion. As competition is rising between the companies, it is
requisite for them to understand the perception of the customers about the important factors that
are directing a vital role to select the best telecommunication service providers such as the price,
promotion, service quality and so on. As the customers get affected by the previous factors, the
use of advertisements also plays an important role in attracting the perception of customers.
Some marketers deliver their target to customers by TV ads as Vodafone, Etisalat and Mobinil
always do, they try to get the customer's attention by providing some funny and entertainment
ads that make them shifting from company to another, and this is the main tactic that each
corporation is trying to achieve or to get into the customer mind.
6
1.1.2 Research problem:
As a descriptive research that refers to a set of methods and procedures describing
marketing variables. The effect of advertising on customer perception has been studied by a lot
of researchers. However, most of the companies and organizations focus on using advertising as
a way of attracting customers and influence the perception of them. as some authors" Katherine
Sullivan" in her article "perception of images in advertising and impact on consumer's live"
attempted to mention that there is a huge competition among advertisers of corporations to attract
the audience. She also mentioned that marketers have to present their work and the way they
advertise their products or services in a perfect way in order to deliver their image and target to
the customer without misleading them. She justified that creativity is the most important aspect
in advertising to catch the perception of customers. However, "J.J Gibson" has explained that
creativity in advertisements such as colors, images, sounds and so on and the ways advertisers
produce and display their products and services has an effect on customer's image and
perception. He named it as "visual world or field".
1.1.3 Research question:
A few questions which will be covered throughout the paper are:
 What is the impact of TV advertisements on the perception of customers?
 How does mobile telecommunication service provider affect the
customer's perception?
7
1.1.4 Research objectives:
The core of studying this research is to understand the perception of Egyptian customers
of Etisalat, Vodafone and Mobinil and their impact toward advertising. Focusing on television
ads as the most effective image that attracts many customers in our country. To accomplish this,
the study has covered the specific objectives:
 To explore the impact of TV ads on customer perception.
 To know the consumers perception to choice the mobile
telecommunication service provider.
1.1.5 Research hypothesis:
H0 = there is no significant relationship between TV ads and customer perception.
Ha = there is a significant relationship between TV ads and customer perception.
1.1.6 Data collection method:
Researchers should keep in mind two types of data, primary and secondary data. The
primary data information that has been gathered specifically for the research objectives at hand.
The secondary data information that has been collected for some other purpose other than the
research at hand. Both primary data and secondary data were used to accomplish the objectives
of this research.
 Primary data collection: the data source used in the study was collected by
using questionnaire to check the customer perception toward TV ads.
 Secondary data collection: the data was collected from internet, e-libraries,
company websites and reference books.
8
1.1.7 Sample:
A questionnaire research design was conducted to achieve research goal. The researchers
have considered 120 customers of mobile telecommunication services users of the three
operations located in Cairo, Egypt. Dividing them onto three groups according to their ages and
use. Each group was comprised of 40 people as follows:-
No. of
groups
Name of each group
No. of
respondents
1. Teenagers 40
2. Youth 40
3. Elders 40
Total 120
Moreover, after the data from the questionnaires is gathered, it will be entered on the
Microsoft Excel, and it will be used to analyze the data.
9
1.2 Literature review:
The three mobile companies have the same products and services which make the
competition among them very huge. But how do they attract customers and advertise their
products and services to make the customer mind think of their product not of others. In order to
design and deliver this image, advertisers have to study the customer's perception and understand
communication process as media to target their customers. Communication process is not easily
following to get customers attracted, so it has to be convenient. The mentality of human being is
always complicated because it's always going here and there and very changeable so it's very
competitive. Marketers have to go to new things because it's hard to keep your customer with
you forever, so they have to change strategy and the way they advertise in order to keep their
customers using their products or services and not to move to other manufacturer.
This paper consists of chapters which includes a discussion of the variables the
researchers have. The first chapter talks about the research methodology and a literature review
of the study. The second chapter is concerned with advertising, as it talks about different types of
advertising such as print advertising, outdoor advertising, broadcast advertising, covert
advertising and celebrity advertising. It also talks about techniques of advertising, its importance
and direct marketing. The third chapter addresses customer's perception; it discusses what the
perception of customers is. It looks at the customer perception process and gives some
theoretical considerations to it. The fourth chapter is divided onto two sections. The first section
is considered with an over view of the telecommunication industry in Egypt, it talks about the
service quality, prices and promotions as it talks about promotional mix and its tools, such as the
personal selling, the sales promotions, and the promotional strategies whether they are push or
pull. These points are the main factors that grab the perception of customers. The second section
explores the effect of advertising on customer perception. It investigates the effect of TV ads on
customer's perception and the effect of mobile telecommunication service providers on customer
perception. The fifth chapter shows the research findings and finally the last chapter is the
recommendation and conclusion of the study.
10
Chapter Two
Advertising
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2.1 Advertising
2.1.1 Advertising definition:
Advertising is “any paid form of non-personal presentation and promotions of ideas,
goods or services by an identified sponsor” (Quoted: Kotler & Keller, 2006: 586, Belch & Belch,
2007:17 & Rowley, 1998:384). Advertising is also the paid publication that a company does in
order to magnetize and pull consumers towards their products. (Richards, and Curran. 2002: 63
& Wells, Moriarty & Burnett (2006:5), suggested a modern definition for advertising arguing
that advertising is “paid persuasive communication that uses non-personal mass media as well as
other forms of interactive communication to reach broad audiences to connect an identified
sponsor with a target audience” (Quoted).
When the company is a small one the advertising usually is done by an employee from
inside the company whether from the marketing or sales departments and he coordinates with an
external advertising agency. However, in large corporations advertising usually have a separate
department. (Kotler & Keller, 2006:586). Advertising is sometimes used to trigger the demand
among consumers or to build the image of a brand and to make consumers aware of a certain
products and to inform them that this product has some special attributes. (Belch & Belch,
2007:18)
2.1.2 Types of Advertising:
The media plays an important role in our lives every day, as we are subjected constantly
to it whether through television, newspapers and magazines, online, outdoors advertising, and so
on.
Advertising is a very important technique by which organizations can commerce on their
existing or brand new products or services. Also advertising is used to deliver information to the
customers of specific products or services in favor of increasing the sales (Dong-Hun).
12
Advertising has many types that had been classified by different authors. Some agreed
that types of advertising are as follows: first, print advertising such as, newspapers, magazines,
brochures and flyers. Second, outdoor advertising such as, billboards, kiosks, tradeshows and
events. Third, broadcast advertising includes television, radio and the internet. Fourth, covert
advertising as advertising in movies. Fifth, surrogate advertising likeadvertising indirectly. Sixth,
public service advertising as for social causes. Finally celebrity advertising. However, other
authors added to the mentioned types more categories by saying that types of advertising have
different names such as, audio-visual media advertising like TV commercials that come in
between TV shows and advertisements aired on radio, classified advertising that makes a use of
newspapers to advertise products, emails advertising by sending advertisement to customers
which improves customer relations, emotional words defined as the words using by advertisers to
generate positive feeling about a product in the minds of customers like “luxury”, “comfort” and
“satisfaction”, and slogans are phrases that can always be remembered by customers and are
used to make the products more interesting.
The researchers are going to identify the most common types of advertising as they are
united by all authors of advertising such as the follows:
2.1.2.1 Print Advertising - Newspapers, Magazines, Brochures, Flyers:
Print media has always been a popular advertising option. Advertising products via
newspapers or magazines is a common practice. In addition to this, the print media also offers
options like promotional brochures and fliers for advertising purposes.
These types are becoming highly spread and can be reached by almost all the market
(Lewis, 2009). Also newspaper and magazines discovers innovated methods to have contacts
with the targeted group and new approaches to fulfill their obligations (Chiagouris, 2006).
As a matter of fact, many organizations use the newspaper as a habitual advertising
medium. Newspapers can be either local or national (Borrington and Stimpsons, 2002). Many
businesses prefer to place their advertisements in newspapers as it is selective and much more
targeted to local environment (Clow and Baack). In addition, newspapers advertisers ensure that
13
the customer will be reading his advertising as to know more about the product not because he is
obliged to read is as newspaper advertising needs autonomous thoughtfulness (Brady and
Cromer, 2005). Griffing (1999) illustrated that the number of youth who read the newspaper
every day has increased tremendously and that 60 percent of them read the whole newspaper.
And as a result the newspaper proved to increase sales products and services (Wilson, 2005).
Organizations can advertise in the newspaper though three basic types, classified
advertisements, pre-printed inserts and display advertisements. First; the classified
advertisement, it provides affinity of agora for products and services. And it supplies the
consumers with the organization's accounting practice information. Second; pre-printed inserts,
these are previously printed ads that the organization send to the newspaper to be place in it. Pre-
printed inserts is a powerful method as it allows the organization to distribute a bilk amount of
information to the target market. Finally, the display ads, this technique avoid clutter as it
delivers the message directly to the customer with short time. Display ads are effective because
they have colorful, eye catchy headlines and graphics that attract the customers' attention
(Griffin, 1999).
Not to mention that newspapers have numerous advantages and disadvantages. The
main advantage of the newspaper is the ability of organization to spread the information and
message it wants to deliver to a huge number of people. Also advertising in newspapers allows
the companies to places their advertisements in the sector heavily read by the customers (Griffin,
1999). Another pro for newspaper advertising is that it is mobile and at hand always and allows
the customers to obtain both information and advertisements (Brady and Cromer, 2006).
Regarding the magazine advertising, magazines are considered more powerful and
effective than newspapers as they contain more colorful advertisements that attracts the reader's
attention (Borrington and Stimpson, 2002). And so magazines advertising became alternative
number two for many companies. Also it was illustrated that 2 to 37 percent of magazines'
readers respond to the advertisements placed in the magazines and start to consume and try the
products (Clow and baack).
14
Advertising into magazines have some pros such as. Magazines' advertising have the
ability to aim several market groups at once. In addition, magazines attract the consumers'
attention more because they include a lot of colorful images and motion. Also unlike the
newspapers, magazines have long shelf life as it is viewed over and over by the readers and the
subscribers. This will benefit the organization because they know it for a real that their
advertisement will be more than once and they may act positively towards it. Also customers
tend to be attracted towards the advertisements that offer their needs and wants (Clow and
Baack).
Finally; magazines' advertisement can be scratch and reserved as a reference for the
consumers because these advertisements contains a lot of information that can be useful for the
customers (Borrington and Stimpson, 2002).
2.1.2.2 Outdoor advertising – Billboards and Kiosks
When people think of Outdoor Advertising, they usually think of the colorful
billboards along our streets and highways. Included in the "outdoor" classification, however, are
benches, posters, signs and transit advertising (the advertising on buses, subways, taxicabs and
trains). They are all share similar advertising rules and methods.
Outdoor advertising reaches its audience as an element of the environment. Unlike
newspapers, radio or TV, it doesn't have to be invited into the home. And it doesn't provide
entertainment to sustain its audience.
Some Outdoor Advantages:
 Since it is in the public domain, Outdoor Advertising assuredly reaches its
audience. People can't "switch it off" or "throw it out." People are exposed to it whether
they like it or not. In this sense, outdoor advertising truly has a "captured audience."
 Its messages work on the advertising principle of "frequency." Since most
messages stay in the same place for a period of a month or more, people who drive by or
walk past see the same messages a number of times.
15
 Particular locations can be acquired for certain purposes. A billboard
located a block in front of your business can direct people to your showroom. Or you can
reach rural areas efficiently by placing billboard in each small town.
 Outdoor advertising is an excellent adjunct other types of advertising you
are doing. In fact, it is most effective when coupled with other media.
Some Outdoor disadvantages:
 Outdoor advertising is a glance medium. At best, it only draws 2-3
seconds of a reader's time.
 Messages must be brief to fit in the 2-3 second time frame. Ninety-five
percent of the time, either the message or the audience is in motion.
 The nature of the way you have to buy outdoor advertising (usually a three
month commitment) is not conducive to a very short, week-long campaign.
When you buy outdoor advertising, remember that location is everything. High
traffic areas are ideal. A billboard in an undesirable area will do you little good. Keep your
message concise (use only five to seven words) and make it creatively appealing to attract
readership. Few words, large illustrations (or photos), bold colors and simple backgrounds will
create effective outdoor advertising messages.
2.1.2.3 Broadcastadvertising – Television, Radio and the Internet
There are various ways that can be used by companies to advertise; among them is the
television advertising. We are going to be focused on this type of advertising because it's the
more effective way to influence the perception of customers.
Television advertising is the most common and influence way used by organizations to
advertise about any new or existing products and services due to its fame. Television as a mean
of communication is very effective as it has the ability to be in contact with the whole market
regardless of their age. (Hsu and Yang and Su, 2007). Clow and Baack also agreed that
television has the widest coverage area among all the advertising mediums as it can be reached
16
by almost all the market including the target group. Also Hoag (2008) and Lewis (2009)
illustrated that television is widely spread all over the world, where almost every house own one
or more with regular seven hours of viewing television, so television allows brand detection and
it builds brand trustworthiness. In addition it was proved by the euro monitor that the overall of
the whole world's sales of television enlarged from 146 million units in 2001 to 247.5 million
units in 2006 (Kwak and Andras and Zinkhan, 2009).
Television advertising is classified into two categories, strategic advertising and direct
respond advertising. The strategic advertising is made to influence the consumer buying behavior
on the long term. While the direct respond advertising focuses on the short term aspects as
increasing the sales. Yet the direct respond advertising has a greater force on the consumer
perception of the brand (Payne,2005). And so the television advertising is used to alter the
consumers' behavior via building up their consciousness and partiality to a certain product or
service (Dong-Hun, 2009).
As the television is the most authoritative medium of advertising (Cincotta, 2005: 42), an
effectual advertising campaign must be done. The advertising campaign starts with making the
target market aware of the product or service that is offered. The second step is to print the brand
name in the market. The third step will be the positioning which is building the brand image in
the consumer's mind. The fourth step is branding, where the consumers are able to differentiate
the product. The last step will be the messaging, which is delivering the message to the
customers (Nyren, 2005). But Mwanza (2007) believed that in order to create a television
campaign all what is needed is to establish an actual advertisement and reserving a time slot.
Dong-hun (2009) revealed that a successful television commercial must have attracted appeals in
order to seize consumer's attention. Some of these appeals are; entertainment which is the
enjoyment factor of the advertisement. Also advertisements must be conducted for long term
period as this is a way to catch consumer's eye towards the advertising campaign. Another appeal
to attract customer's attention is the humor appeal, which became widely spread and applied by
most of the organizations. Also the use of human beings in the advertisement adds credibility to
it. Finally; the organization must stress on the consumers' benefits rather than the product
features.
17
Speaking about television advertising we have to mention its pros and cons. First; we
will start by identifying what are the main advantages of advertising on television. As we
previously mentioned, that almost every household owns at least one television this makes the
television viewed by about every single person. And by this, organizations can depend
completely on it for advertising their products and services knowing that these advertisements
will be viewed on a large scale (lewis, 2009). Another advantage of the television is the merging
of the sound and image, this will definitely seize the audiences' attention and persuade them to
try the product or service being advertised. Additionally, advertising in television allows the
organization to show the features and other thing about the product such as, how to use it which
is not available at print ads (Clow and Baack). Brown agreed that television is a very good
medium for delivering videos containing both sounds and images. In addition, television has the
ability to nab viewers' interest.
On the other hand, advertising on television has several disadvantages. The main
disadvantage is that television advertising acquires a lot of money and time consuming as an
organization takes a lot of commerce a new product on television (Donohue, 2005). Besides,
cluttering which is showering consumers with a lot of advertising became one major con as it
makes the organization unable to deliver its products information to the customers. Finally;
television advertising does not have long life duration, the advertising lasts only for few seconds
(Clow and Baack).
2.1.2.4 CovertAdvertising – Advertising in Movies
Covert advertising is a unique kind of advertising in which a product or a particular
brandies incorporated in some entertainment and media channels like movies, television shows
or even sports. There is no commercial in the entertainment but the brand or the products subtly (
or sometimes evidently) showcased in the entertainment show. Some of the famous
examples for this sort of advertising have to be the appearance of brand Nokia which
is displayed on Tom Cruise’s phone in the movie Minority Report, or the use of Cadillac cars in
the movie Matrix Reloaded.
18
2.1.2.5 CelebrityAdvertising
Although the audience is getting smarter and smarter and the
modern day consumer getting immune to the exaggerated claims made in a
majority of advertisements, there exist a section of advertisers that still bank
upon celebrities and their popularity for a d v e r t i s i n g t h e i r p r o d u c t s .
U s i n g c e l e b r i t i e s f o r a d v e r t i s i n g i n v o l v e s s i g n i n g u p celebrities for
advertising campaigns, which consist of all sorts of advertising including, television ads or even
print advertisements.
2.1.3 Techniques of advertising
(M. H. "Mac" McIntosh, CBC) talked about the advertising techniques by mentioning
that advertisers must first concentrate their message on deliver the benefits of their products and
services without using images in the ad as the main idea. Second, in order to catch the attention
of the reader and by giving him/her the chance to get to know the product or service that the
company provides, advertisers have to put the benefits in the ads with some headlines. Third,
people now don’t have enough time to read the whole ads so in order to get the message;
advertisers must put in mind to make it easy for the reader to skim their ads. Fourth, choosing
some specific words in the ads attracts the attention and generates more inquiries such as “free”
and “new”. Fifth, make the reader feels like he’s the most important by focusing on his needs
and using “you” or “your” instead of “we” or “our” products and services. Sixth, advertisers
have to ask for the order before getting it so they have to create offers such as “call, write, fax or
e-mail” to help customers to determine which products meets their needs. At some points,
Charles Godbout agreed that advertisers must state the benefits to inform the customers that they
can gain benefits from the products and services. He also agreed that using the word “free” by
offering free items can build a trust between the company and the customer so the customer can
experience the benefit of the product and make repurchases. However, Charles Godbout added
that advertisers have to believe that customers are intelligence. They think wisely before making
a decision and advertisers must use facts in order to gain an advantage. One of the effective
19
techniques is using celebrities because they are very good at convincing the customer and they
have good appeal to the public to catch the interest of them. Another technique is targeting the
audience who are likely to develop an interest. He also mentioned that marketers must reach out
to the customer’s emotional appeal.
2.1.4 Importance of advertising:
(R.R.Khan, 2011), (S.R.Kamble,2011) & (Rita.Khatri,2011) Believed that advertising is
the most effective activity in marketing. With a mentioning of some importance that advertising
promotes the sales of products and services by providing good advertising campaign that has an
impact on the attention of consumers and helps to gather new customers. They said that
advertising helps the product and service to be known and more popular. It also creates a good
image and reputation of the company that helps advertisers to communicate what they have
achieved in satisfying the customer’s wants and needs. This could increase a fight of competition
in the market. Trying to differentiate your new products and their use from others available in the
market by advertising is also very important. In addition, doing a good research for discovering a
new product in the market and new uses to match with the customer’s needs and wants can also
keep your position in the market because without the research, the company will be kick out of
the market. Advertising is very important in educating the people. It gives them more knowledge
and information about a new product entering the market and the use of it. Without advertising,
those products won’t be known by the customers. Finally, advertising is a very important source
in increasing the revenues of magazines. By doing an advertisement for the magazines, it will
increase the sales of it. It’s also a source of revenue for TV network. For example, CBC channel
broadcasts the same ads before, in between and after the programs which increases the income of
both the channel and the companies who provide such ads.
2.1.5 Direct marketing:
Direct marketing occurs when companies use non-personal such as telephone or mail to
be able to directly interact and know the response of the customers. (Rowley, 1998: 384). Since
direct marketing is used by a lot of companies to gain a direct response from their target
20
audience it can eliminate the use of intermediaries. Some companies believe that communicating
directly with their customers may urge them to do an immediate action. (Belch & Belch, 2007:
18,20,446).
Direct marketing is very advantageous to customers as it saves a lot of time and effort,
for it gives them the chance to home-shop. In addition to the fact that direct marketing is used by
companies to build a strong long-term relationship with customers. (Kotler & Keller, 2006: 604-
606). On the other hand, direct marketing has some flaws, as some consumers are not convinces
to buy a product they have never seen before, also direct marketing may be irritating to some
people, as buyer send a flow of mails to convince customers to buy the product. (Wells, Moriarty
& Burnett ,2006:424).
21
Chapter Three
Customer perception
22
3.1 Customer perception
3.1.1 Customer perception meaning:
PJ Germain in his article: Top Advertising Resources mentioned that the perception of
the customer is one of the most important components of the relationship with the customer.
However, advertisers must study the psychological of customers and their perception to target
customers exactly the same way to get the message across as the manufacturer want.
There are plentiful definitions explained by many researchers. In biology, perception
refers to the senses of human to gather information about the environment. Wade and Tavris
(1987) divided human senses as vision (eyes), hearing (ears), taste (tongues), touch (skin) and
smell (nose). Walters and Bergiel (1989) continued to state that human's senses of smell and
taste are human's olfactory senses and are so closely entwined.
However, in consumer behavior, perception is way much more than just biological
senses.
According to Walters et al (1989), he mentioned that each perception involves a person
who interprets over the realization or senses event or relation that may be specified as the
percept. Van der Walt (1991) added that perception occurs through the brain when designing and
identifying certain meanings according to the person feeling, what they like, dislike and what
they experienced in their life, also depending on their beliefs.
Studying the customer's mind and the perception of them is very complicated, for
example, two individuals might be in the same situation, but the situation here differentiates
them from each other depending on how they receive, organize what happened or what they have
seen based on their own needs, wants, and what they appreciate the most. So marketers must
understand the perception very well to know how to attract their customers. (Schiffman et al,
1991).
23
3.1.2 Consumer perception process:
Processing is an activity by which stimuli are perceived. (Hawkins & Mothersbaugh,
2010, p. 278). They stated that perception processes are categorized into three major steps:
exposure, attention and interpretation. However, Wells & Hawkins et al (1989, 1992) had
another opinion saying that customer perception process comes with five main activities as the
first activity is exposure, the second one is attention, the third one is organization, the fourth one
is interpretation and the last one is retention. If those steps or activities of customer perception
process success, they will lead easily to a purchasing decision.
3.1.2.1 Exposure:
It’s the first activity of the customer perception process. It occurs when a stimulus comes
within the range of our sensory receptor nerves. It provides consumers with the opportunity to
pay attention to available information but in no way guarantees it. (Wells et all, 1989). For
example, have you ever been watching television and realized that you were not paying attention
to the commercials being aired? In this case, exposure occurred, but commercials will probably
have little influences due to your lack of attention. Aaker et al (1987) conclude by emphasising
the importance of exposure by stating that there can be no communication without exposure.
3.1.2.2 Attention:
According to Mothersbaugh & Hawkins, 2010, attention is defined as how customer
selects the information given and how he interpreted and given meaning. There are three factors
in determining attention. The first one is the stimulus, the second one is individual and the last
one is situation. (Hawkins et al, 1992). Stimulus factors that are used by advertisers to capture
customer's attention to an ad such as size and intensity, color and movement, position, isolation,
format and information quantity. Hawkins et al (1992), Mowen (1993), Assael (1992), Schiffman
et al (1991), Wilkie (1990), Aaker et al (1987) and Berkman & Gilson (1986) have all agreed in
24
explaining that customers are attracted to large and huge sizes than small one. They are the most
noticed by customers. (Wilkie, 1990). Intensity can be used to draw attention such as brighter
lights and loud noises that are used for this purpose. On the other hand, Wilkie (1990), said that
both color and movement can get the customer's attention easily. For example, Tropicana uses
color to focus attention on orange juice. In addition to the bright colors and moving objects that
can have a strong effect on the customer’s attention. Another factor is the position of an
advertisement. Position is the most interesting of perception. For example, items that are placed
to the centre are more to be noticed. Likewise, advertisements that are on the upper half of the
page and left-hand side are noticed than those on the lower of the page and right-hand side.
Isolation is about separating an object from other objects. For example, if a small object is placed
in a virtually blank page, it will draw attention immediately. In addition, format refers to in
which the message is presented. For example, presentations that are straight receive more
attention than those who are complex. The final factor is information quality that occurs when
customers are faced with a number of information that cannot attend to all of it. According to
Wilkie (1990) personal interests and needs are the most factors of individual factors. Personal
interests and needs are different from person to person. (Berkman et al, 1986). The situational
factor is the final factor of attention. As mentioned before, the situation can differentiate each
person according to their interests, wants, needs, beliefs and what did they experienced in life.
3.1.2.3 Organization:
Organization affects consumer interpretation and categorization. People try to organize
an incomplete ad. The closure of an ad means that when there is incomplete messages with the
goal of making customers complete it. This is a very smart way in order to make customers
interested to the ad and allow them to interpret the meaning of ads and likely enhance the recall.
Context is also very interesting part. Assael (1992) & Mowen (1993) suggested that figure and
ground is the most important principle of context. For example, an image of black and white
colors that each color is about a different form, the individual here will try to organize what
he/she sees by switching back and forth because their brain cannot figure out which colors is the
portion of the image.
25
3.1.2.4 Interpretation:
According to Mowen (1993), Consumers have emotional responses to or interpretations
of ads. When customers see an advertisement or a printed ad somewhere that include a certain
message, slogan, logo or even a music, they immediately try to translate these factors to remind
them whether advertisers respond to their need or not. Schiffman et al & van der Walt (1991)
added that interpretations occur according to the expectation of the customer, experience and
memory.
3.1.2.5 Retention:
Van der Walt (1991) explained that there is no purpose if the customer won’t be able to recall the
information that he must act on it when required even if the total perception process was
successful.
26
Chapter Four
Telecommunication
industry and effects on
customer perception
27
4.1 Telecommunication industry:
The mobile operators market is a violent competition market in Egypt. In the
telecommunication industry, Egypt provides three different mobile phone services. These
services are: Etisalat (United Arab Emirates), Vodafone (United Kingdom), and Mobinil (Egypt).
These markets create major challenges because of their complex nature and the dimension of
them that makes them attractive to customers. It opens the competition and the opportunities in
front of the customers to enjoy a lot of choices and offers among the service provider. Service
providers are expected to compete on both price and quality and should meet the customer
expectations in both quality and price.
4.1.1 Service quality:
Service quality is fundamental for a telecommunication service provider company for
establishing and keeping loyal and productive customers (Zeithaml, 2000; Leisen and vance,
2001). On the contrary, Johnson and Sirikit (2002) declared that service quality reflects
expectations about product or service so it allows the manufacturer's managers to explore and
investigate the customer feedback and relief about their telecom service.
Mostly, customers focus on the quality of the products and services they need. So, the
telecommunication providers must communicate with the customer from time to time to evaluate
and improve their quality. Since, it meets the expectation of the customer about the product or
service. (Wal et al,2002). Network quality is also very important to customers so the providers
are trying to develop their network and provide more services to their customers and non-
customers to make a really high profit.
28
4.1.2 Price:
Prices play a main role to the customers for the telecommunication service providers,
(Kollman,2000). However, prices offer competition between the providers of telecommunication
services and each of them plays a game of providing low purchasing prices and low costs of call
minutes so it's very interesting to the customers to make a choice whether to commit with their
providers or to shift to the others.
4.1.3 Promotions:
Promotions also play a main role in the telecommunication sector by attracting the c
ustomers, especially when entering a new market and attracting new customers and to
communicate with them. (Kotler et al, 1999). (Rowley, 1998) agreed that promotion is a game
that targets customers by communicating products and services to them. According to Rowley
(1998) the core of promotions are increasing in the sales, improving market share, improving or
creating the brand recognition, creating a favorable climate for future sales, informing and
educating the market about the new network, and creating a competitive advantage. However,
Alvarez and Casielles (2005) argued by saying that promotions have several objects that affects
the perception of customers and makes more and better sales impact such as, coupons, samples,
premiums, contests, point-of-purchase displays and frequent-buyer programs.
4.1.3.1 Promotional mix:
Promotional mix is defined as the combination of all the tools that a company uses to
achieve a certain objective. These tools include, advertising, direct marketing, internet
marketing, sales promotions, public relations and personal selling. (Belch & Belch, 2007:15,17)
Rowley (1998:384,386) suggested that the promotional mix is the use of different promotional
method such as sales promotions, advertising, direct marketing, public relations, personal selling
and sponsorship to be able to deliver a certain message.
29
4.1.3.1.1 Personal selling:
Personal selling is considered to be one of the tools of the promotional mix. (Belch &
Belch, 2007:15, 17 & Rowley,1998:384,386) .Personal selling is a method of convincing
consumers to take a certain action or to buy a certain product . Personal selling is very beneficial
in persuading the consumers to take immediate action as the buyer can hear what the customers
want and he can modify his words about the attributes of the product to match the customers’
needs. (Blech & Blech, 2007:23).
Companies today are spending a lot of money to educate and prepare their sales
representatives to be able know what the consumer want and convince him that this product is
what he wants. (Kotler & Keller, 2006:625). Nowadays companies treat their sales
representatives as an investment, as they can convince customers to buy an expensive product
claiming that this high prices is certainly offset by high quality. (Fam and Merrilees, 1998: 248).
4.1.3.1.2 Sales promotions:
A lot of researchers such as Mandic,( 2009239-240), Kotler & Keller (2006: 586-587) &
Wells, Moriarty & Burnett (2006:469) agreed that advertising and sales promotions are distinct
from each other, and based on that, they should always be used to support and complete the roles
of each other. In other words, the effects of sales promotions are always created for the short-run
since they trigger the response of consumers; however, advertising is used to build a brand as it
reduces the sensitivity of consumers to process. When sales promotions are used, they sometimes
imply that the product is of a low value. Though the effect of sales promotions may be achieved
quicker than the effect of advertising, sales promotions fail to create long-term consumers.
(Kotler & Keller, 2006: 586-587). Advertising is used to create an intangible value for the
product, on the other hand sales promotions adds to the tangible value of the product and
increases its profitability (Wells, Moriarty & Burnett ,2006:469). When a firm uses promotions it
is seeking a changes in its consumers’ “behavior”, on the other hand when it uses advertising, it
is seeking a change in its consumers “perception”. (Papatla & Krishnamurthi, 1996:20).
30
4.1.3.1.2.1 Theoretical considerations:
Rowley (1998:384,386) & Belch & Belch ( 2007:15,17) agreed that sales promotions are
considered among the tools of the promotional mix. According to the American Marketing
Association (AMA), sales promotions is “media and non-media marketing pressure applied for a
predetermined, limited period of time in order to stimulate trial and impulse purchases, increase
consumer demand, or improve product quality” (Wells, Moriarty & Burnett, 2006:453). Sales
promotions are believed to increase the sales as they motivate the consumers and offer them
more reasons to buy the product. (Wells, Moriarty & Burnett, 2006:453). Sales promotions also
give support and encouragement to the consumers, distributors and the sales force to affect their
buying behavior and force them to buy your product. (Belch & Belch, 2007: 495). Sales
promotions are considered to be a set of occasional actions, they occur at different time intervals
and their mainly targeted to trigger consumers to buy a certain product. (Alvarez & Casielles,
2004:56). The effect that sales promotions have on demand is predicted to be seen after a short
period of time. (Banerjee, 2009: 121). Consumers who are not normally potential consumers of a
certain product, however, they buy it due to sales promotions are believed to return to their
former products in the future. (Alvarez & Casielles, 2004:58).
In 1991, the budget of sales promotions was $56 billion; however, in 2005 it reached $
343 billion. ( Belch & Belch,2007: 496). According to Wells, Moriarty & Burnett (2006:453-
454) companies spend $ 28.5% of the total amount spent on advertising and sales promotions on
their consumer promotion, 17.5% on advertising through the media and the trade promotions
acquired 54% of the total budget. The sales will increase if the sales promotions were sufficiently
managed. (Alvarez & Casielles, 2004:56). The hazards that the consumers may face while trying
a new product may be lowered by using sales promotions as it adds value to the products they
buy. (Wells, Moriarty & Burnett 2006:454).
4.1.3.1.2.2 Types of sales promotions:
Since sales promotions have many types, its effectiveness should not be measured as a
whole, however, every type should be measures individually. So a good knowledge about every
type should be acquired to be able to assess how successful the sales promotions were.
31
(Srinivasan & Anderson, 1998:412). Alvarez & Casielles, (2004:56) added that the types of sales
promotions may differ in their application and implementation from one country to another.
Moreover, the benefits of sales promotions can be increased if more than one type were
combined together. (Srinivasan & Anderson, 1998: 414). Banerjee (2009:129-130) argued that if
the types of sales promotions were mixed perfectly the can lead to an increase in the sales of a
certain product. The combination of types of sales promotions varies with the category to which
the product belongs and with the age of the target market.
Boolertvanich (2010: 54) believed that sales promotions have two types, the first type is
the monetary sales promotions, which deals with the monetary-side of the promotions, meaning
that the consumers either get the chance to get the product and pay less for it, or they receive a
“voucher”. They can also get the chance to take a gift instead of the cash, which will account for
the same amount of money. The second type of sales promotions is, the non-monetary sales
promotions, it has nothing to do with cash, however, this type means that the costumer will be
treated in a special, respectful and polite way when buying the product. However, Banerjee
(2009: 121-122) disagreed with these classifications, adding that the sales promotions can be
classified into, discounts and freebies. As for the discounts, it is further classified into cash
discounts and volume discounts. Cash discounts, this kind of discount consequently influences
the final price of the product. On the other hand, Volume discounts are those discounts are given
to people who buy the product in large quantities. The second type of sales promotions are the
freebies, they include a gift packed with the product and given to the consumers for free.
Wells, Moriarty & Burnett (2006:455), Kotler & Keller (2006:587), Srinivasan &
Anderson (1998: 410) & Belch & Belch (2007: 495) suggested that sales promotions can be
subcategorized into many types, first is the consumer oriented promotions, the second is the trade
oriented promotions. Wells, Moriarty & Burnett (2006:455) agreed with Kotler & Keller
(2006:587) and they added a third part which is the sales force promotions. However, Srinivasan
& Anderson (1998: 414) opposed their opinion adding that the third type of sales promotions is
the retailer oriented promotions.
Wells, Moriarty & Burnett (2006:455-458), Kotler & Keller (2006:588), Srinivasan &
Anderson (1998: 411) & Belch & Belch (2007: 496) agreed that the consumer sales promotions
32
have different types underneath it, and they all had five types in common which are, coupons,
samples, refunds & rebates, contests & sweepstakes and the price deals. The first type is the
coupons, which is a certificate that guarantees the purchaser that he would be able to buy the
product at a special price and save a little. (Kotler & Keller, 2006:588 & Wells, Moriarty &
Burnett 2006:456). The number of coupons given to consumers, witnessed a huge change, as in
1968 it was only 16 billion coupons; however, in 2003 it increased to 258 billion coupons.
(Belch & Belch 2007: 510). The second type that they all agreed upon was the samples, Kotler &
Keller (2006:588) agreed with Belch & Belch (2007: 507) & Wells, Moriarty & Burnett
(2006:456) that sampling includes some free products and services given to the consumer, to
give the consumers the chance to try and their product or service for free. Though it may be
considered that it is the priciest and most affluent type, it could be very helpful in encouraging
consumers to give the product or service a shot. (Belch & Belch, 2007: 507). The third type is
the refunds & Rebates, in this case the consumers are allowed a certain amount of money which
they paid for during their purchase, and however, they must submit a proof that they had already
done the purchase. The fourth type is contests and sweepstakes, where contest means that the
consumers go through a certain competition and they are evaluated accordingly, and they must
provide a proof of purchase to participate. Sweepstakes mean that consumers are allowed to
participate by submitting their names and the name of the winner is just selected randomly. The
fifth type is the price deals price off price packs, which cuts or decreases the normal price of the
package; it can be shown on the pack itself. (Kotler & Keller, 2006:588 , Belch & Belch , 2007:
518, 521-522 & Wells, Moriarty & Burnett ,2006: 454-456).
Besides these five types, Srinivasan & Anderson (1998: 411) & Wells, Moriarty &
Burnett (2006: 456-458) added that special events or the special advertising are also considered
to be from the types of sales promotions. They include the items that are given to the consumers
that have the name of the brand or the company on it. (Wells, Moriarty & Burnett, 2006:458).
Premiums are also a type of sales promotion, premiums provides the consumer with a free item,
or a low priced item which may be seen as an additional encourage to the consumer to make the
purchase. (Kotler & Keller, 2006:588, Belch & Belch, 2007: 516 & Wells, Moriarty & Burnett
(2006: 456).
33
Belch & Belch (2007: 522 -523) & Kotler & Keller (2006: 458) agreed together that
loyalty programs or frequency programs are part of the sales promotions, which means that the
consumers are encouraged to buy more of that specific product by rewarding the consumers who
made purchases at either high quantities or high rates. Bonus packs and event marketing are
another two types of sales promotions. Bonus packs provides the consumers at the same price,
more units than usual and event marketing where a company relates its name to a certain event.
(Belch & Belch, 2007: 522-523). However, Kotler & Keller (2006: 588) disagreed adding that
sales promotions can be further classified into, patronage awards, product warranties, tie-in
promotion, cross promotion and point of purchase display. Patronage awards provide the
consumers with support and backup in any form such as cash. However, free trials, allows
consumers to try the product or service for free in order to become future customers. And
product warranties, guarantees to the consumers that if they bought a product and it failed to
perform as promised then the seller would either repair it or give the consumer his money back.
As for tie-in promotion, it is used to attract the consumers to buy the brand; it is done through
combing more than one brand in the same coupon. Cross promotions are achieved through
promoting a product through another non-competing one. And finally point of purchase display
(POD) which is done at the place of purchase. (Kotler & Keller, 2006:588).
The second type of sales promotion suggested by Wells, Moriarty & Burnett (2006:461-
462), Kotler & Keller (2006:589), Srinivasan & Anderson (1998: 411) & Belch & Belch (2007:
527-533) is the trade oriented sales promotions. Point of purchase displays is the first type under
trade-oriented sales promotions; they are the promotions that take place where the purchase is
done. They are created by the manufacturers of the product and they are distributed among the
retailers to be used to attract the consumers’ attention. Trade shows are developed to allow
competing companies to show their products to attract future consumers and encourage current
consumers to buy more. In addition to the trade allowances or the trade incentives and deals,
which are the benefits or the discounts given to a certain retailer to encourage him to buy more of
their product, or to encourage him to give a certain product more priority than others, or to make
the product more observable and attractive than others in the store. (Wells, Moriarty & Burnett
2006:461-462, Kotler & Keller 2006:589 & Belch & Belch 2007: 527-533). Manufacturers set a
certain level of purchase and the premium retailer who overtakes this contest with the highest
amount will be offered a prize by the manufacturers, this is known as contests and they are
34
considered to be part of the trade oriented sales promotions. (Wells, Moriarty & Burnett
2006:462, Belch & Belch 2007: 527 & Srinivasan & Anderson 1998: 411). Wells, Moriarty &
Burnett (2006:461-462) argued that retailer kits, these are the objects that are used to help the
retailer in the selling process.
On the other hand, Belch & Belch (2007: 531-532) added that sales training programs
and cooperative advertising are believed to be among the types of trade promotions. Where sales
training programs are those training courses given to the retailers’ staff or sales personnel to
qualify them and make them able to discuss and explain their products with different consumers.
As for the cooperative advertising, which means that the manufacturer won’t have to pay for the
whole advertising budget, however, it will be shared by a lot of contributors. Case allowances,
advertising allowances, display allowances, trade allowances and financing incentives are also
considered to be types of trade promotions. However, Kotler & Keller (2006:589) suggested that
the trade oriented sales promotions are classified into two more types, the first type is the price
off, which means that a discount will be given to consumers when they purchase during a
specific period of time. The second type is the free goods, which gives consumers who buy the
product in a certain amount or who buy a product with certain trait. Trade promotions have two
types, discount-based trade promotions and performance-based trade promotions, the discount-
based means that the retailer buys the product from the manufacturer at a lower price than its
normal price. As for performance-based which is given after the retailer has accomplished a
certain level of accomplishments. (Gomez & Rao, 2009:868).
The third type of the sales promotions is sales force. ( Kotler & Keller 2006:589 & Wells,
Moriarty & Burnett 2006:455). Sales force includes two different components, first is the
training given to the sales personnel and make them ready to talk about the product. The second
component is the incentives that help encourage the sales personnel to make their jobs better.
(Wells, Moriarty & Burnett 2006:455). Trade shows and conventions, sales contests and
specialty advertising are suggested to be from the types of sales force. (Kotler & Keller,
2006:589). Trade shows and conventions are where the manufacturer arranges for the trade show
to attract new customers, sales contests are organized to remind the customers with their product
and special advertising these include the items of value which have the name and address of the
company which is given to the customers. However, Srinivasan & Anderson (1998: 411) argued
35
that the third type of the sale promotions is the retailer promotions, which include the price cuts,
displays, feature advertising, free goods, retailer coupons and contestspremiums.
4.1.3.1.2.3 Role and objectives of sales promotions:
The objectives of sales promotions must be logically stated to be able to decide which
type of promotions will be used. Different types may be combined together to be able to reach
the final objective. (Alvarez & Casielles, 2004:57). In addition to this, sales promotions can be
used to encourage people to try the product as well as encourage those who had purchased it
before to repurchase it, thus they can boost the sales of the company in a short period of time.
(Boonlertvanich, 2010:53). Banerjee (2009:129-130), agreed with (Alvarez & Casielles,
2004:57) that if the types of sales promotions were adequately combined they can cause the sales
to increase, adding that the appropriate type of sales promotions to be used varies with the
category to which the product belongs to as well as the age group that its targeting. By the
introduction of new products, companies try to compete with already existing companies by
enforcing sales promotions, leading the existing companies to fire their guns and fight back using
their own combinations of sales promotions to encourage consumers not to shift. (Srinivasan &
Anderson, 1998: 417).
Sales promotions may lead the consumers to be more loyal to a certain brand; it may
increase the new trails of a product and encourage consumers to buy more. It can either lead to
short-term objectives which mainly are to support consumers to buy more or long-term
objectives, which deal with broader objectives such as enlarging a company’s share in the
market. (Alvarez & Casielles, 2004:57). The objectives of sales promotions can be grouped
either as short-term objectives or as long-term objectives, as for the short-term objectives of sales
promotions may be to defend your product against the promotions of other companies, to
increase the revenues of the firm in a certain period of time or to increase the company’s sales to
reach the previously set sales objectives. However, the long-term sales promotions objectives are
directed towards building or defining a certain image for your brand or towards affecting the
sales of that product. The final objectives that the company wishes to accomplish through sales
promotions must be determined, and companies must know how to combine sales promotions
with other elements. The effect on the company as a whole must be deliberated to make the sales
promotions worthy. (Quelch & Jocz, 2010:191)
36
Moreover, according to Belch & Belch (2007:503-507) the objectives of sales promotions
can be grouped according to their type whether consumer-oriented or trade-oriented sales
promotions. Where the objectives of the consumer-oriented sales promotions are to “obtain trial
and repurchase” where the primary goal of sales promotions is to reassure the people to give
their product a shot, “increase consumptions of an established brand”, sales promotions can
attract people to buy the product, “defend current customers” some new companies use
advertising elements to attract other companies’ customers, so these companies can counter this
by the use of sales promotions to maintain their consumers, “target a specific target segment”
market segmentation is an essential element for any company, sales promotions help companies
to segment their target market. And to “enhance integrated marketing communication and
building brand equity” one of the objectives of sales promotions is to reinforce the exertion that
the company exert towards their IMC and to enhance the brand equity of the company. Kotler &
Keller (2006: 587) agreed with Belch & Belch (2007) suggesting that sales promotions’
objectives vary with whom they are presented to, so if they are for consumers, they are mainly
done to attract new consumers to try the product, and for current consumers, to buy the bigger
sizes of the product in addition to encouraging consumers of other competing products to switch
to your product. This consequently will lead to an increase in the sales in the short run, however,
in the long run; consumers will perceive the brand differently due to “brand equity”
As for the trade-oriented sales promotions it has many objectives, such as to “obtain
distribution of new products” which is done to act as an encouragement for retailers to sell the
product in their outlets.” Maintain trade support for established brands” when brands are in their
maturity stage in the product life cycle, they are in jeopardy to lose their distributors, so trade
promotions are done to prevent this. Trade promotions also “encourage retailers to display
established brands” and here the role of trade promotions is to encourage retailers to promote the
brand in their outlets, since many consumers decide to purchase a product while they are in the
store. The last objective of trade promotions is to “build retail inventories” when retailers have
extra stock they tend to promote the product more to get rid of the extra inventory. ( Belch &
Belch, 2007:525-527). Moreover, Kotler & Keller (2006: 587) suggested that if the promotions
are presented to retailers, their objective will be to encourage retailers to hold large inventories as
well as opening new markets for the distribution of the product, compensating the promotions of
competing brands they also help to construct loyalty among consumers. Trade promotions are
37
sometimes done in trade shows, to be the starting point of launching a new product, or to
encourage people to buy an off season product.
4.1.3.1.3 Public relations:
Belch & Belch (2007:15, 17) & (Rowley (1998:384,386), considered public relations to
be one of the types of the promotional mix. Public relations is defined as” the management
function which evaluates public attitudes, indentifies the policies and procedures of an individual
or organization with the public interest, and executes a program of action to earn public
understanding and acceptance”. (Belch and Belch, 2007: 23). It also refers to actions taken by a
company to be able to communicate its image. Public relations helps a company execute some
missions such as press relations, product publicity, corporate communication, lobbying and
finally counseling. (Kotler & Keller, 2006: 593-594)
4.1.3.1.4 Promotional strategies:
The push strategy and the pull strategy are considered the two main promotional
strategies.
4.1.3.1.4.1 Push strategy:
The push strategy is used when the manufacturers are shoving their goods to the
consumers, so they convince the retailers to stock the product, by doing so they guarantee that
they will consequently press on the consumers to buy the product to be able to get rid of the
stock they have. (Wells, Moriarty & Burnett ,2006:462 & Belch & Belch, 2007: 63).
4.1.3.1.4.2 Pull strategy:
However, the pull strategy is mainly done to magnetize the consumers towards the
product. Here the manufacturer wants the consumers to request his product and which will
38
consequently increase the demand for his product, this is done by advertising for the product.
(Wells, Moriarty & Burnett ,2006:462 & Belch & Belch, 2007: 63). A pull strategy may be used
if the product has some special attributes that the consumers want, so they will ask for it, on the
contrary it cannot be used if the budget of the company is tight, as it may need advertising and
sales promotions to make the consumers aware of the product and thus demand the product.
(Belch & Belch, 2007: 63). Manufacturers may use bonuses, dealer loaders, buying allowances,
advertising allowances, cooperative allowances or display allowances to convince the retailers to
stock their product. (Wells, Moriarty & Burnett ,2006:462-463).
4.2 Effects of advertising on customer perception in telecommunication
sector:
4.2.1 Effects of TV advertising on customer perception:
Marketers use their knowledge of perception to enhance number of area including media
and advertising.
Each type of media advertising that has been mentioned before plays a vital role in
delivering the message to the customers and gathering their attention to win new customers. The
researches focused more on TV ads because they found it very important to own a television in
our country.
TV ads have been the most effective type of advertising that can easily communicate with
audience but hard to deliver and get the attention of them. However, television is used all over
the world. You can find more than two televisions in each house according to the use of the
family. Marketers avails the use of each family by deliver and advertise their products and
services through televisions during the year especially the month of Ramadan as it's one of the
months that people sit and watch television more than any month of the year. Furthermore,
advertisements must consist of two tasks. They must capture customer's attention and convey
meaning. To do so, marketers must use two strategies. One is to utilize stimuli such as bright
39
colors, images, meaningful symbols and good taste of music to attract attention. The second is to
tie the message to a topic to make it more interesting to watch.
However, advertisers must put in mind that it's not too easy to deliver their target market
to get customer's attention. In order to do this, they must use factor that can be related to the
topic of the advertisement. That’s why many companies often try to use humor, sex appeal, and
celebrities to affect positively the customer's interpretation and attention so they can understand
and enjoy the commercial whenever they watch it on TV and not to get bored of it. In addition to
that, marketers must study and understand the psychology and personality of each person in life
and how the perceptions of the individuals work to know how they will influence their customers
to their products and services and which colors, images and music does the customer enjoy the
most.
Also, the effectiveness of TV ads can be measured by the time spending in watching TV
programs. The effect of young people has received much attention because many of them are
addicted to movies and shows provided on TV.
Creativity also plays an important role as it's the most effective way that customers get
effected by. Some successful companies believe that creative advertising is an important part of
their marketing success, no matter how they make good products or services and how they are
lovable and profitable among customers.
4.2.2 Effect of mobile telecommunication service on customer perception:
Mobile telecommunication service can be one of the most companies that people seek the
most to communicate with others so marketers must know the perception of their customers
about price, promotion and service quality in order to select the best company that suits their
needs, wants and use of the mobile service.
Promotions are the most efficient strategy in attracting more customers. The more
promotion companies offer, the more customer and profit they get and make. On the other hand,
40
prices play a vital role in customer's perception. When a customer makes a decision to buy or use
a certain product or service, first, he seeks and compares the prices of the other companies to
choose the best one. Adding to these strategies, service quality of telecommunication companies
must be excellent or at least they must develop their quality of services and that opens a good
competition among them that makes people enjoy the choices and seek for the best one.
Companies must also focus on the benefits of their products and services more and not focus on
the profit more than targeting a customer. The more low prices and high promotions they provide
the more customers they attract because most of people focus more on lower prices and high
benefits of the quality of their products or services they purchase.
A lot of researchers such as Mandic,( 2009239-240), Kotler & Keller (2006: 586-587) &
Wells, Moriarty & Burnett (2006:469) agreed that advertising and sales promotions are distinct
from each other, and based on that, they should always be used to support and complete the roles
of each other. In other words, the effects of sales promotions are always created for the short-run
since they trigger the response of consumers; however, advertising is used to build a brand as it
reduces the sensitivity of consumers to process. When sales promotions are used, they sometimes
imply that the product is of a low value. Though the effect of sales promotions may be achieved
quicker than the effect of advertising, sales promotions fail to create long-term consumers.
(Kotler & Keller, 2006: 586-587). Advertising is used to create an intangible value for the
product, on the other hand sales promotions adds to the tangible value of the product and
increases its profitability (Wells, Moriarty & Burnett ,2006:469). When a firm uses promotions it
is seeking a changes in its consumers’ “behavior”, on the other hand when it uses advertising, it
is seeking a change in its consumers “attitudes”. (Papatla & Krishnamurthi, 1996:20).
41
Chapter Five
Research findings
42
5.1
5.2 Which Telecommunication Company do you use?
(Figure 1)
0
10
20
30
40
50
Teenagers Youth Elders
No. of people
Teenagers
Youth
Elders
Etisalat
Vodafo
ne
Mobinil
Etisalat
and
Vodafo
ne
Etisalat
and
Mobinil
Vodafo
ne and
Mobinil
All of
them
No. of people 30% 27% 17% 10% 10% 5% 0%
30%
27%
17%
10% 10%
5%
0%
0%
5%
10%
15%
20%
25%
30%
35%
Teenagers
No. of people
Age bracket No. of people
Teenagers 40
Youth 40
Elders 40
Total 120
Comment: We have considered 120 customers of mobile
telecommunication services users of the three operations
located in Cairo, Egypt. Dividing them onto three groups
according to their ages and use. Each group was comprised
of 40 people
43
(Figure 2)
(Figure 3)
Etisalat
Vodafon
e
Mobinil
Etisalat
and
Vodafon
e
Etisalat
and
Mobinil
Vodafon
e and
Mobinil
All of
them
No. of people 15% 30% 12% 12% 7% 12% 10%
15%
30%
12% 12%
7%
12% 10%
0%
5%
10%
15%
20%
25%
30%
35%
Elders
No. of people
Etisalat
Vodafon
e
Mobinil
Etisalat
and
Vodafon
e
Etisalat
and
Mobinil
Vodafon
e and
Mobinil
All of
them
No. of people 25% 23% 20% 10% 7% 5% 0%
25% 23%
20%
10%
7% 5%
0%
0%
5%
10%
15%
20%
25%
30%
Youth
No. of people
Comment: As it’s obvious here, Etisalat is the most company used by teenagers and youth,
while Vodafone is more favorable between elders.
44
5.3 What is your favorable source of information about the new product/service?
(Figure 4)
(Figure 5)
(Figure 6)
televisio
n
customer
service
newspap
ers
outdoors
magazin
es
internet
word of
mouth
No. of people 50% 5% 2% 10% 2% 20% 10%
50%
5% 2%
10%
2%
20%
10%
0%
10%
20%
30%
40%
50%
60%
Teenagers
No. of people
televisio
n
customer
service
newspap
ers
outdoors
magazine
s
internet
word of
mouth
No. of people 55% 5% 0% 2% 0% 27% 10%
55%
5%
0% 2% 0%
27%
10%
0%
10%
20%
30%
40%
50%
60%
Youth
No. of people
televisio
n
customer
service
newspap
ers
outdoors
magazine
s
internet
word of
mouth
No. of people 60% 7% 0% 5% 7% 5% 15%
60%
7%
0%
5% 7% 5%
15%
0%
10%
20%
30%
40%
50%
60%
70%
Elders
No. of people
Comments: here television advertising is the most favorable source of information that attracts people. As
it took 50% of teenagers like TV ads, 55% of youth and 60% of elders. This approved the point that TV
ads have been the most effective type of advertising that can easily communicate with audience but hard to
deliver and get the attention of them.
45
5.4 What appeals attract you the most in advertising?
(Figure 7)
(Figure 8)
(Figure 9)
colors images music all of them
No. of people 10% 10% 15% 65%
10% 10% 15%
65%
0%
50%
100%
Teenagers
No. of people
colors images music all of them
No. of people 2% 2% 20% 75%
2% 2%
20%
75%
0%
20%
40%
60%
80%
Youth
No. of people
colors images music all of them
No. of people 2% 2% 15% 80%
2% 2%
15%
80%
0%
50%
100%
Elders
No. of people
Comment: all of teenagers, youth and elders are attracted to colors, images and music. This
highlights the fact that bright colors,images and music can attract the customer and have a
strong effect on the customer’s attention. Especially music, as it owned the highest
percentage among teenagers, youth and elders. This means that they are attracted to
advertising that contain songs and grab their attention.
46
5.5 Which advertisement of the following companies attract you more?
(Figure 10)
(Figure 11)
(Figure 12)
etisala
t
vodaf
one
mobin
il
etisala
t and
vodaf
one
etisala
t and
mobin
il
vodaf
one
and
mob…
none
of
them
all of
them
No. of people 35% 15% 27% 7% 0% 2% 2% 10%
35%
15%
27%
7%
0% 2% 2%
10%
0%
10%
20%
30%
40%
Teenagers
No. of people
etisal
at
vodaf
one
mobi
nil
etisal
at and
vodaf
one
etisal
at and
mobi
nil
vodaf
one
and
mob…
none
of
them
all of
them
No. of people 45% 17% 10% 17% 2% 0% 0% 7%
45%
17%
10%
17%
2% 0% 0%
7%
0%
10%
20%
30%
40%
50%
Youth
No. of people
etisala
t
vodaf
one
mobin
il
etisala
t and
vodaf
one
etisala
t and
mobin
il
vodaf
one
and
mob…
none
of
them
all of
them
No. of people 7% 17% 30% 5% 12% 2% 0% 25%
7%
17%
30%
5%
12%
2% 0%
25%
0%
10%
20%
30%
40%
Elders
No. of people
Comment: Etisalat advertisements are the most attracting to teenagers and youth as they provide
new, creative and funny ideas, while Mobinil advertisements are the most attracting to elders
because of the famous song they provided last Ramadan that made so many people shift to
Mobinil.
47
5.6 Which factor attracts you more?
(Figure 13)
(Figure 14)
(Figure 15)
service
quality
prices
promotion
s/offers
prices and
promotion
s/offers
service
quality and
promotion
s/offers
all of them
No. of people 20% 7% 12% 15% 27% 17%
20%
7%
12%
15%
27%
17%
0%
5%
10%
15%
20%
25%
30%
Teenagers
No. of people
service
quality
prices
promotion
s/offers
prices and
promotion
s/offers
service
quality
and
promotion
s/offers
all of them
No. of people 0% 32% 2% 5% 60% 0%
0%
32%
2% 5%
60%
0%
0%
10%
20%
30%
40%
50%
60%
70%
Youth
No. of people
service
quality
prices
promotion
s/offers
prices and
promotion
s/offers
service
quality
and
promotion
s/offers
all of them
No. of people 12% 25% 5% 5% 37% 15%
12%
25%
5% 5%
37%
15%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Elders
No. of people
48
5.7 In your opinion, which service quality of the following companies attracts you more?
(Figure 16)
(Figure 17)
(Figure 18)
etisalat
vodafon
e
mobinil
etisalat
and
vodafon
e
etisalat
and
mobinil
vodafon
e and
mobinil
none of
them
all of
them
No. of people 27% 25% 32% 7% 0% 0% 5% 2%
27% 25%
32%
7%
0% 0%
5% 2%
0%
10%
20%
30%
40%
Teenagers
No. of people
etisalat
vodafon
e
mobinil
etisalat
and
vodafon
e
etisalat
and
mobinil
vodafon
e and
mobinil
none of
them
all of
them
No. of people 30% 40% 22% 0% 0% 0% 2% 5%
30%
40%
22%
0% 0% 0% 2% 5%
0%
10%
20%
30%
40%
50%
Youth
No. of people
etisalat
vodafon
e
mobinil
etisalat
and
vodaf…
etisalat
and
mobinil
vodafon
e and
mobinil
none of
them
all of
them
No. of people 5% 40% 25% 15% 0% 5% 2% 7%
5%
40%
25%
15%
0% 5% 2% 7%
0%
10%
20%
30%
40%
50%
Elders
No. of people
Comment: service quality and promotions/offers took the highest number of teenagers, youth and elders.
As they are the most factors to be focused on by everyone. This approved the fact that customers focus
on the quality of the products and services they need. So, the telecommunication providers must
communicate with the customer from time to time to evaluate and improve their quality. Network quality
is also very important to customers so the providers are trying to develop their network and provide more
services to their customers and non-customers to make a really high profit. In addition, The core of
promotions are increasing in the sales, improving market share, improving or creating the brand
recognition, creating a favorable climate for future sales, informing and educating the market about the
new network, and creating a competitive advantage.
Comment: the charts above explores the fact that 32% of the teenagers are attracted to the service quality
of Mobinil as it has been the best network coverage, while the quality of Vodafone is attracting youth and
elders.
49
5.8 In your opinion, which prices of the following companies attract you more?
(Figure 19)
(Figure 20)
(Figure 21)
etisalat
vodafon
e
mobinil
etisalat
and
vodafon
e
etisalat
and
mobinil
vodafon
e and
mobinil
none of
them
all of
them
No. of people 40% 12% 25% 2% 12% 0% 7% 0%
40%
12%
25%
2%
12%
0%
7%
0%
0%
10%
20%
30%
40%
50%
Teenagers
No. of people
etisalat
vodafon
e
mobinil
etisalat
and
vodafon
e
etisalat
and
mobinil
vodafon
e and
mobinil
none of
them
all of
them
No. of people 72% 12% 7% 0% 0% 0% 7% 0%
72%
12% 7% 0% 0% 0% 7% 0%
0%
20%
40%
60%
80%
Youth
No. of people
etisalat
vodafon
e
mobinil
etisalat
and
vodafon
e
etisalat
and
mobinil
vodafon
e and
mobinil
none of
them
all of
them
No. of people 37% 12% 10% 7% 5% 0% 15% 12%
37%
12% 10% 7% 5% 0%
15% 12%
0%
10%
20%
30%
40%
Elders
No. of people
Comment: Etisalat has the lowest prices among the competitors. This means that it took the
highest percentage in attracting all segments in the market for having lowest costs and best
prices.
50
5.9 In your opinion, which promotions and offers of the following companies attract you
more?
(Figure 22)
(Figure 23)
(Figure 24)
etisalat
vodafon
e
mobinil
etisalat
and
vodafon
e
etisalat
and
mobinil
vodafon
e and
mobinil
none of
them
all of
them
No. of people 35% 37% 20% 0% 7% 0% 0% 0%
35% 37%
20%
0%
7%
0% 0% 0%
0%
10%
20%
30%
40%
Teenagers
No. of people
etisalat
vodafon
e
mobinil
etisalat
and
vodafon
e
etisalat
and
mobinil
vodafon
e and
mobinil
none of
them
all of
them
No. of people 57% 12% 10% 15% 0% 0% 0% 5%
57%
12% 10% 15%
0% 0% 0% 5%
0%
10%
20%
30%
40%
50%
60%
Youth
No. of people
etisalat
vodafon
e
mobinil
etisalat
and
vodafon
e
etisalat
and
mobinil
vodafon
e and
mobinil
none of
them
all of
them
No. of people 40% 17% 15% 7% 7% 0% 7% 5%
40%
17% 15%
7% 7%
0%
7% 5%
0%
10%
20%
30%
40%
50%
Elders
No. of people
Comment: 37% of teenagers are attracted to the promotions/offers that Vodafone provides,
while Etisalat has the most attracting promotions/offers between both youth and elders as they
said that Etisalat has been recently providing so many offers about phone calls, BB service and
providing gifts for their customers.
51
5.10 In your opinion, which customer service of the following companies attracts you
more?
(Figure 25)
(Figure 26)
(Figure 27)
etisalat
vodafo
ne
mobinil
etisalat
and
vodaf…
etisalat
and
mobinil
vodafo
ne and
mobinil
none of
them
all of
them
No. of people 25% 27% 15% 12% 0% 0% 15% 5%
25% 27%
15% 12%
0% 0%
15%
5%
0%
10%
20%
30%
Teenagers
No. of people
etisalat
vodafo
ne
mobinil
etisalat
and
vodaf…
etisalat
and
mobinil
vodafo
ne and
mobinil
none of
them
all of
them
No. of people 27% 35% 5% 7% 0% 0% 20% 5%
27%
35%
5% 7%
0% 0%
20%
5%
0%
10%
20%
30%
40%
Youth
No. of people
etisalat
vodafo
ne
mobinil
etisalat
and
vodaf…
etisalat
and
mobinil
vodafo
ne and
mobinil
none of
them
all of
them
No. of people 5% 45% 15% 12% 0% 0% 17% 5%
5%
45%
15% 12%
0% 0%
17%
5%
0%
10%
20%
30%
40%
50%
Elders
No. of people
Comment: here, as we can see that all of the teenagers, youth and elders prefer the customer
service of Vodafone as they have the best employees and know exactly what the customer
wants and how to speak and communicate with their customers.
52
5.11 Does media advertising play an important role in your life?
(Figure 28)
(Figure 29)
(Figure 30)
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 37% 47% 12% 2% 0%
37%
47%
12%
2% 0%
0%
20%
40%
60%
Teenagers
No. of people
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 47% 35% 15% 2% 0%
47%
35%
15%
2% 0%
0%
20%
40%
60%
Youth
No. of people
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 47% 42% 7% 0% 2%
47% 42%
7%
0% 2%
0%
20%
40%
60%
Elders
No. of people
Comment: From the above tables, we can infer that, 47 percent of teenagers “agreed” and
other respondents of youth and elders “strongly agreed”. This means that advertising is
sometimes used to trigger the demand among consumers or to build the image of a brand
and to make consumers aware of a certain products and to inform them that this product or
service has some special attributes.
53
5.12 Do entertaining advertisements influence your opinion about product?
(Figure 31)
(Figure 32)
(Figure 33)
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 25% 37% 32% 2% 2%
25%
37%
32%
2% 2%
0%
10%
20%
30%
40%
Teenagers
No. of people
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 30% 40% 22% 5% 2%
30%
40%
22%
5% 2%
0%
20%
40%
60%
Youth
No. of people
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 22% 42% 30% 0% 5%
22%
42%
30%
0% 5%
0%
20%
40%
60%
Elders
No. of people
Comment: In this table, it is very obvious that, all of the three segments “agreed” that
entertaining ads influence them. This means that whenever a company provides a funny ad
that contains of funny phrases, music and bright colors, it grab customers’ attention.
54
5.13 Does information provided in advertisement affect your opinion about the product?
(Figure 34)
(Figure 35)
(Figure 36)
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 17% 40% 35% 5% 2%
17%
40% 35%
5% 2%
0%
20%
40%
60%
Teenagers
No. of people
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 35% 40% 22% 2% 0%
35% 40%
22%
2% 0%
0%
20%
40%
60%
Youth
No. of people
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 25% 47% 22% 2% 2%
25%
47%
22%
2% 2%
0%
20%
40%
60%
Elders
No. of people
Comment: Here, all of the three respondents “agreed” about the statement. As the
marketers are trying to provide reasonable information about their product/service when
there is an ad to build awareness and to get new customers.
55
5.14 Does the presence of any celebrity in the ad affect your opinion about the product?
(Figure 37)
(Figure 38)
(Figure 39)
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 35% 15% 30% 20% 0%
35%
15%
30%
20%
0%
0%
10%
20%
30%
40%
Teenagers
No. of people
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 25% 20% 30% 20% 5%
25%
20%
30%
20%
5%
0%
10%
20%
30%
40%
Youth
No. of people
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 20% 30% 37% 5% 7%
20%
30%
37%
5% 7%
0%
10%
20%
30%
40%
Elders
No. of people
Comment: Here, 35 percent of teenagers “strongly agreed” while youth and elders
respondents felt “neutral”. It’s obvious that teenagers are attracted to the ads that contains of
their favorite celebrities. However, most of youth and elders are attracted more to other
factors as we mentioned before.
56
5.15 Do promotions and offers in ads affect your opinion about the product?
(Figure 40)
(Figure 41)
(Figure 42)
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 87% 7% 5% 0% 0%
87%
7% 5% 0% 0%
0%
50%
100%
Teenagers
No. of people
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 100% 0% 0% 0% 0%
100%
0% 0% 0% 0%
0%
50%
100%
150%
Youth
No. of people
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 100% 0% 0% 0% 0%
100%
0% 0% 0% 0%
0%
50%
100%
150%
Elders
No. of people
Comment: As shown in the above tables, the highest percentages in the table represents by
all of the three segments. This investigates the fact that promotions/offers have a great
impact on each customer.
57
5.16 Do you think ads help in increasing sales of any product or service?
(Figure 43)
(Figure 44)
(Figure 45)
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 47% 25% 20% 5% 2%
47%
25% 20%
5% 2%
0%
20%
40%
60%
Teenagers
No. of people
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 65% 27% 5% 2% 0%
65%
27%
5% 2% 0%
0%
20%
40%
60%
80%
Youth
No. of people
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 57% 27% 12% 0% 2%
57%
27%
12%
0% 2%
0%
20%
40%
60%
Elders
No. of people
Comment: As shown at the above tables, a very huge number of teenagers, youth and elders
“strongly agreed” to the point that ads help in increasing sales, and this means that
advertising is used to deliver information to the customers of specific products or services in
favor of increasing the sales
58
5.17 Do ads have an influence on the 2 human’s senses? (hearing and vision)
(Figure 46)
(Figure 47)
(Figure 48)
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 37% 22% 15% 17% 7%
37%
22%
15% 17%
7%
0%
10%
20%
30%
40%
Teenagers
No. of people
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 35% 25% 30% 5% 5%
35%
25%
30%
5% 5%
0%
10%
20%
30%
40%
Youth
No. of people
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 52% 35% 12% 0% 0%
52%
35%
12%
0% 0%
0%
20%
40%
60%
Elders
No. of people
Comment: It is very obvious from the above tables that the percentage of the three
respondents “strongly agreed” with the fact that there is a relationship between ads and
human’s senses and it can also have an impact on their perception.
59
5.18 Is it important for advertisers to study customers’ needs and wants and what
attracts them before providing a new product or service?
(Figure 49)
(Figure 50)
(Figure 51)
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 65% 30% 2% 2% 0%
65%
30%
2% 2% 0%
0%
20%
40%
60%
80%
Teenagers
No. of people
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 77% 15% 2% 5% 0%
77%
15%
2% 5% 0%
0%
50%
100%
Youth
No. of people
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 82% 12% 5% 0% 0%
82%
12% 5% 0% 0%
0%
50%
100%
Elders
No. of people
Comment: From the above tables, it is noticeable that “strongly agree” represented by
teenagers, youth and elders took the highest percentage. This approved the fact that
studying the market and all segments is very important before entering a new market with a
product or service because it might lose if the customer figured out that he/she won’t need
it.
60
5.19 Are there any differences among customers about how they receive the message?
(Figure 52)
(Figure 53)
(Figure 54)
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 42% 20% 30% 7% 0%
42%
20%
30%
7%
0%
0%
20%
40%
60%
Teenagers
No. of people
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 50% 32% 17% 0% 0%
50%
32%
17%
0% 0%
0%
20%
40%
60%
Youth
No. of people
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 62% 32% 5% 0% 0%
62%
32%
5% 0% 0%
0%
20%
40%
60%
80%
Elders
No. of people
Comment: It is very noticeable from the above table, that the highest number of teenagers,
youth and elders also “strongly agreed”. And this highlights the fact that advertisers must
study the psychological of customers and their perception to target customers exactly the
same way to get the message across as the manufacturer want. Also, the situation can differ
each customer from another according to their needs, wants, feeling, and experience and
how they think.
61
5.20 Do slogans and logos have an impact on customers’ opinion?
(Figure 55)
(Figure 56)
(Figure 57)
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 35% 37% 20% 5% 2%
35% 37%
20%
5% 2%
0%
10%
20%
30%
40%
Teenagers
No. of people
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 30% 37% 25% 5% 2%
30%
37%
25%
5% 2%
0%
10%
20%
30%
40%
Youth
No. of people
strongly
agree
agee neutral disagree
strongly
disagree
No. of people 57% 22% 12% 2% 5%
57%
22%
12%
2% 5%
0%
20%
40%
60%
Elders
No. of people
Comment: The results above show that, a highest percentage of teenagers and youth
“agreed”. However, a highest percentage of people who “strongly agreed” were by
elders. This means that using slogans and logos with a funny phrases and noticeable
colors can have a strong impact on each customer and can also influence their
perception toward the product and service.
62
Chapter Six
Recommendation and
Conclusion
63
6.1 Recommendation:
Today’s successful telecommunication companies distinguish themselves from their
competition by focusing on customer perception, incremental spending and extraordinary
service. Recommendation of the study can be applied for the marketers of the three
telecommunication companies to use different strategies to enhance their
The analyses of the study indicate the following:-
First, Mobinil had the least users among the three segments, so this company should
develop itself more and compete with the other companies to rise up like others. Second,
newspapers and magazines were the lowest, so the companies have two choices, first, do not
advertise and write information about their companies in both newspapers and magazines as they
are very old and lots of people moved to new ways such as internet and other types of
advertising, but TV still have the same level of its importance, or make their advertisements in
the magazines and newspapers more noticeable for the customer and more interesting to
encourage the customers to use them as a source of information like other sources. Third, the
advertisements provided by the three telecommunication companies are not that attractive to
anyone, as they are all competing with each other and are trying to have more customers, but
they also have to enhance their ads and the way they deliver their message. Fourth, prices had the
least votes; companies should compete in their prices for better competitive advantages. Fifth,
Service quality, prices and promotions are fundamental for telecommunication service providers
for establishing and keeping loyal and productive customers, so they have to enhance them and
solve the problems they face with customers to serve their customers and non-customers to make
higher profits especially for Mobinil because it’s still using their old theories. Eighth, for people
who disagreed that media advertising and information provided in ads are important and won’t
influence them; marketers have to notice them about the importance of ads because having no
ads means having less information about products and services needed. Also for those who think
that ads aren’t helping in increasing sales, the duty of marketers that they have to show
customers that without having ads, people will not be aware that new products and services have
entered the market and in that case, there won’t be any purchasing activities. Ninth, customers
must know that there is a huge differences between each one of them according to how they
64
think, feel and see things around them because there is no way to have the same person with the
same acts and personality twice and this is very important to be studied in marketing. Finally,
slogans and logos are other new ways in attracting customers by creating some new shapes of the
logo of the company and creative phrases to stick in each customer’s mind. Marketers must also
enhance TV ads and make more ads through TV because as shown in the analyses that TV is the
most favorable source of information so they have to take it in consideration and to increase the
usage of the product and service.
6.2 Conclusion:
This study reflects that the Advertising have a great effect on the customer’s perception
especially the ads of telecommunication companies. We have noted that types of advertising are
useful, but TV is the most attractive type of advertising and have a great impact on customers in
our society. In addition, it’s very important to study the psychology of each person to understand
their needs and wants before entering the market with a new product and service that might not
be needed at all and this will cause lose for the companies.
Furthermore, the Egyptian telecommunication industry market has three companies,
Etisalat, Vodafone and Mobinil. As a companies that have the same products and services which
build a strong competitive advantage between them, the three companies use many factors that
have a strong impact on each customer as well as on their perception to let the customer enjoy
the competition. These factors are prices, service qualities, promotions and offers with having
very creative ads to get into customers mind and to build awareness.
Moreover, according to our information that we got from the questionnaire, we
proved that there is a significant relationship between TV ads and customer perception. Also, all
the objectives set for the study were achieved.
Finally, we have recommended some solution for the three companies and for the
marketers as well to enhance their performance, to win more customers, to make higher profits
and to increase the usage of product and service.
65
Appendix
(Questionnaire version)
66
Questionnaire
As competition is rising between the companies, it is requisite for them to understand the perception
of the customers about the important factors that are directing a vital role to select the best
telecommunication service providers such as the price, promotion, service quality and so on. As the
customers get affected by the previous factors, the use of advertisements also plays an important role
in attracting the perception of customers. Some marketers deliver their target to customers by TV ads
as Vodafone, Etisalat and Mobinil always do, they try to get the customer's attention by providing
some funny and entertainment ads that make them shifting from company to another, and this is the
main tactic that each corporation is trying to achieve or to get into the customer mind.
Q1. Which telecommunication company do you use?
o Etisalat o Etisalat and Vodafone
o Vodafone o Etisalat and Mobinil
o Mobinil o Vodafone and Mobinil
o All of them
Please explain why……………………………………………………………………………
Q2. What is your favorable source of information about the new product/service?
o Television o Customer service
o Newspapers o Outdoors
o Magazines o Internet
o Word of mouth
Please explain why……………………………………………………………………………
Q3. What appeals attract you the most in advertising?
o Colors in an advertisement o Images
o Music o All of them
Please explain why……………………………………………………………………………
Q4. Which advertisement of the following companies attract you more?
o Etisalat o Etisalat and Vodafone
o Vodafone o Etisalat and Mobinil
o Mobinil o Vodafone and Mobinil
o All of them o None of them
Please explain why……………………………………………………………………….
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Seminar Paper

  • 1. Faculty of Commerce and Business Administration Marketing Graduation Project for year: 2012/2013 The impact of advertising on customer perception in the telecommunication sector Applied case on: (Etisalat, Vodafone and Mobinil) Team members: Name ID Ahmed Samir 20090890 Menna Ayman 20090495 Merna Nader 20090532 Samar Mohammed 20091395 Under supervision: Dr. Sherine EL-Sakka
  • 2. 1 Table of Contents: SUBJECT PAGE Chapter One: Research methodology and literature review: 1.1 Research methodology: 1.1.1 Preamble……………………………….……………………………….…….….…...5 1.1.2 Research problem…………………….………………………….…….…….………6 1.1.3 Research question ………………….….………………………….….……….……..6 1.1.4 Research objective………………………..……………………...............................7 1.1.5 Research hypothesis………………………...……………………….………….……7 1.1.6 Data collection method……………………...……………………………….………7 1.1.7 Sample ………………………………………...…………………………………….8 1.2 Literature review: ………………………………………...…………………..……………....9 Chapter Two: Advertising: 2.1 Advertising 2.1.1 Advertising definition………………………………….………………………………..11 2.1.2 Types of Advertising:……………………………………..……………………………. 11 2.1.2.1 Print Advertising - Newspapers, Magazines, Brochures, Flyers…………….…… 12 2.1.2.2 Outdoor advertising – Billboards and Kiosks……………………………………..14 2.1.2.3 Broadcastadvertising – Television, Radio and the Internet………………..................15 2.1.2.4CovertAdvertising – Advertising in Movies………………………….………….….…17 2.1.2.5CelebrityAdvertising………………………………………………………………………...18 2.1.3 Techniques of advertising………………………………………………………….........18 2.1.4 Importance of advertising………………………………………………………..……...19 2.1.5 Direct marketing .…………………………………….……………………………........19 Chapter Three: Customer perception: 3.1 Customer perception 3.1.1 Customer perception meaning……………………………..………………………..22 3.1.2 Consumer perception process: ……………………………..……………………….23 3.1.2.1 Exposure…………………………………………………………………….…23 3.1.2.2 Attention…………………………………………..…………………………...23 3.1.2.3 Organization……………………………………...…………………………....24 3.1.2.4 Interpretation……………………………………...…………………………...25 3.1.2.5 Retention ………………………………………...…………………………....25
  • 3. 2 Chapter Four: Telecommunication industry and effects on customer perception: SECTION ONE: 4.1 Telecommunication industry: ……………………….……………………….....27 4.1.1 Service quality ………………………………………………………..27 4.1.2 Price………………………………………...………………………....28 4.1.3 Promotions: ……………………………………….……………………....28 4.1.3.1 Promotional mix:………………………...……………………..28 4.1.3.1.1 Personal selling…………………………………………..29 4.1.3.1.2 Sales promotions:………………………………………..29 4.1.3.1.2.1 Theoretical considerations………………………..30 4.1.3.1.2.2 Types of sales promotions ….…………………...30 4.1.3.1.2.3 Role and objectives of sales promotions…….....35 4.1.3.1.3 Public relations……………………………………...…..37 4.1.3.1.4 Promotional strategies:………………………………….37 4.1.3.1.4.1 Push strategy……………………………………...37 4.1.3.1.4.2 Pull strategy………………………………...….....37 SECTION TWO: 4.2 Effects of advertising on customer perception in telecommunication sector: 4.2.1 Effects of TV advertising on customer perception:……………..…38 4.2.2 Effect of mobile telecommunication service on customer perception………………………………………………………………………………………….…..39 Chapter Five: Research findings…………………………………………………………………….41 Chapter Six: Recommendation and Conclusion: 6.1 Recommendation……………………………………………………………………………...63 6.2 Conclusion…………………………………………………………………………………….64 Appendix (Questionnaire version)…………………………………………………………………...65 List of References..................................................................................................................................69
  • 4. 3 Acknowledgment: We would like to express our thank to Dr. Sherine EL.Sakka, for her time, valuable advice and support she given us in the writing of our project. She was very willing to teach and help us. We couldn’t have asked for a better mentor. We would like also to thank and give honor to our teacher, Ms. Jailan Sarhan, for her guidance and being patient with all our questions and having to explain everything to us over and over. We want to thank our university, Future University in Egypt for giving us facilities to understand how to make our graduation project.
  • 6. 5 1.1 Research methodology: 1.1.1 Preamble: What would happen if one telecommunication available in the market? What do they compete in? Let's go back when Mobinil was the first telecom in the market. Where the cost of the call was high and there wasn't much advertisement. There weren't so many advantages for the customers. It wasn't available for everybody because of the high cost. However, a few years later, the situation has improved greatly because a new telecommunication company as Vodafone found its way in the telecom market. Each company was trying hard to attract more customers so they used more advertisement and the prices of calls went down because of this competition. Then another company (Etisalat) joined in the race, which turns lead competition to dramatically increases. In these days, the three competitors are trying to attract customer by presenting aggressive price promotion. As competition is rising between the companies, it is requisite for them to understand the perception of the customers about the important factors that are directing a vital role to select the best telecommunication service providers such as the price, promotion, service quality and so on. As the customers get affected by the previous factors, the use of advertisements also plays an important role in attracting the perception of customers. Some marketers deliver their target to customers by TV ads as Vodafone, Etisalat and Mobinil always do, they try to get the customer's attention by providing some funny and entertainment ads that make them shifting from company to another, and this is the main tactic that each corporation is trying to achieve or to get into the customer mind.
  • 7. 6 1.1.2 Research problem: As a descriptive research that refers to a set of methods and procedures describing marketing variables. The effect of advertising on customer perception has been studied by a lot of researchers. However, most of the companies and organizations focus on using advertising as a way of attracting customers and influence the perception of them. as some authors" Katherine Sullivan" in her article "perception of images in advertising and impact on consumer's live" attempted to mention that there is a huge competition among advertisers of corporations to attract the audience. She also mentioned that marketers have to present their work and the way they advertise their products or services in a perfect way in order to deliver their image and target to the customer without misleading them. She justified that creativity is the most important aspect in advertising to catch the perception of customers. However, "J.J Gibson" has explained that creativity in advertisements such as colors, images, sounds and so on and the ways advertisers produce and display their products and services has an effect on customer's image and perception. He named it as "visual world or field". 1.1.3 Research question: A few questions which will be covered throughout the paper are:  What is the impact of TV advertisements on the perception of customers?  How does mobile telecommunication service provider affect the customer's perception?
  • 8. 7 1.1.4 Research objectives: The core of studying this research is to understand the perception of Egyptian customers of Etisalat, Vodafone and Mobinil and their impact toward advertising. Focusing on television ads as the most effective image that attracts many customers in our country. To accomplish this, the study has covered the specific objectives:  To explore the impact of TV ads on customer perception.  To know the consumers perception to choice the mobile telecommunication service provider. 1.1.5 Research hypothesis: H0 = there is no significant relationship between TV ads and customer perception. Ha = there is a significant relationship between TV ads and customer perception. 1.1.6 Data collection method: Researchers should keep in mind two types of data, primary and secondary data. The primary data information that has been gathered specifically for the research objectives at hand. The secondary data information that has been collected for some other purpose other than the research at hand. Both primary data and secondary data were used to accomplish the objectives of this research.  Primary data collection: the data source used in the study was collected by using questionnaire to check the customer perception toward TV ads.  Secondary data collection: the data was collected from internet, e-libraries, company websites and reference books.
  • 9. 8 1.1.7 Sample: A questionnaire research design was conducted to achieve research goal. The researchers have considered 120 customers of mobile telecommunication services users of the three operations located in Cairo, Egypt. Dividing them onto three groups according to their ages and use. Each group was comprised of 40 people as follows:- No. of groups Name of each group No. of respondents 1. Teenagers 40 2. Youth 40 3. Elders 40 Total 120 Moreover, after the data from the questionnaires is gathered, it will be entered on the Microsoft Excel, and it will be used to analyze the data.
  • 10. 9 1.2 Literature review: The three mobile companies have the same products and services which make the competition among them very huge. But how do they attract customers and advertise their products and services to make the customer mind think of their product not of others. In order to design and deliver this image, advertisers have to study the customer's perception and understand communication process as media to target their customers. Communication process is not easily following to get customers attracted, so it has to be convenient. The mentality of human being is always complicated because it's always going here and there and very changeable so it's very competitive. Marketers have to go to new things because it's hard to keep your customer with you forever, so they have to change strategy and the way they advertise in order to keep their customers using their products or services and not to move to other manufacturer. This paper consists of chapters which includes a discussion of the variables the researchers have. The first chapter talks about the research methodology and a literature review of the study. The second chapter is concerned with advertising, as it talks about different types of advertising such as print advertising, outdoor advertising, broadcast advertising, covert advertising and celebrity advertising. It also talks about techniques of advertising, its importance and direct marketing. The third chapter addresses customer's perception; it discusses what the perception of customers is. It looks at the customer perception process and gives some theoretical considerations to it. The fourth chapter is divided onto two sections. The first section is considered with an over view of the telecommunication industry in Egypt, it talks about the service quality, prices and promotions as it talks about promotional mix and its tools, such as the personal selling, the sales promotions, and the promotional strategies whether they are push or pull. These points are the main factors that grab the perception of customers. The second section explores the effect of advertising on customer perception. It investigates the effect of TV ads on customer's perception and the effect of mobile telecommunication service providers on customer perception. The fifth chapter shows the research findings and finally the last chapter is the recommendation and conclusion of the study.
  • 12. 11 2.1 Advertising 2.1.1 Advertising definition: Advertising is “any paid form of non-personal presentation and promotions of ideas, goods or services by an identified sponsor” (Quoted: Kotler & Keller, 2006: 586, Belch & Belch, 2007:17 & Rowley, 1998:384). Advertising is also the paid publication that a company does in order to magnetize and pull consumers towards their products. (Richards, and Curran. 2002: 63 & Wells, Moriarty & Burnett (2006:5), suggested a modern definition for advertising arguing that advertising is “paid persuasive communication that uses non-personal mass media as well as other forms of interactive communication to reach broad audiences to connect an identified sponsor with a target audience” (Quoted). When the company is a small one the advertising usually is done by an employee from inside the company whether from the marketing or sales departments and he coordinates with an external advertising agency. However, in large corporations advertising usually have a separate department. (Kotler & Keller, 2006:586). Advertising is sometimes used to trigger the demand among consumers or to build the image of a brand and to make consumers aware of a certain products and to inform them that this product has some special attributes. (Belch & Belch, 2007:18) 2.1.2 Types of Advertising: The media plays an important role in our lives every day, as we are subjected constantly to it whether through television, newspapers and magazines, online, outdoors advertising, and so on. Advertising is a very important technique by which organizations can commerce on their existing or brand new products or services. Also advertising is used to deliver information to the customers of specific products or services in favor of increasing the sales (Dong-Hun).
  • 13. 12 Advertising has many types that had been classified by different authors. Some agreed that types of advertising are as follows: first, print advertising such as, newspapers, magazines, brochures and flyers. Second, outdoor advertising such as, billboards, kiosks, tradeshows and events. Third, broadcast advertising includes television, radio and the internet. Fourth, covert advertising as advertising in movies. Fifth, surrogate advertising likeadvertising indirectly. Sixth, public service advertising as for social causes. Finally celebrity advertising. However, other authors added to the mentioned types more categories by saying that types of advertising have different names such as, audio-visual media advertising like TV commercials that come in between TV shows and advertisements aired on radio, classified advertising that makes a use of newspapers to advertise products, emails advertising by sending advertisement to customers which improves customer relations, emotional words defined as the words using by advertisers to generate positive feeling about a product in the minds of customers like “luxury”, “comfort” and “satisfaction”, and slogans are phrases that can always be remembered by customers and are used to make the products more interesting. The researchers are going to identify the most common types of advertising as they are united by all authors of advertising such as the follows: 2.1.2.1 Print Advertising - Newspapers, Magazines, Brochures, Flyers: Print media has always been a popular advertising option. Advertising products via newspapers or magazines is a common practice. In addition to this, the print media also offers options like promotional brochures and fliers for advertising purposes. These types are becoming highly spread and can be reached by almost all the market (Lewis, 2009). Also newspaper and magazines discovers innovated methods to have contacts with the targeted group and new approaches to fulfill their obligations (Chiagouris, 2006). As a matter of fact, many organizations use the newspaper as a habitual advertising medium. Newspapers can be either local or national (Borrington and Stimpsons, 2002). Many businesses prefer to place their advertisements in newspapers as it is selective and much more targeted to local environment (Clow and Baack). In addition, newspapers advertisers ensure that
  • 14. 13 the customer will be reading his advertising as to know more about the product not because he is obliged to read is as newspaper advertising needs autonomous thoughtfulness (Brady and Cromer, 2005). Griffing (1999) illustrated that the number of youth who read the newspaper every day has increased tremendously and that 60 percent of them read the whole newspaper. And as a result the newspaper proved to increase sales products and services (Wilson, 2005). Organizations can advertise in the newspaper though three basic types, classified advertisements, pre-printed inserts and display advertisements. First; the classified advertisement, it provides affinity of agora for products and services. And it supplies the consumers with the organization's accounting practice information. Second; pre-printed inserts, these are previously printed ads that the organization send to the newspaper to be place in it. Pre- printed inserts is a powerful method as it allows the organization to distribute a bilk amount of information to the target market. Finally, the display ads, this technique avoid clutter as it delivers the message directly to the customer with short time. Display ads are effective because they have colorful, eye catchy headlines and graphics that attract the customers' attention (Griffin, 1999). Not to mention that newspapers have numerous advantages and disadvantages. The main advantage of the newspaper is the ability of organization to spread the information and message it wants to deliver to a huge number of people. Also advertising in newspapers allows the companies to places their advertisements in the sector heavily read by the customers (Griffin, 1999). Another pro for newspaper advertising is that it is mobile and at hand always and allows the customers to obtain both information and advertisements (Brady and Cromer, 2006). Regarding the magazine advertising, magazines are considered more powerful and effective than newspapers as they contain more colorful advertisements that attracts the reader's attention (Borrington and Stimpson, 2002). And so magazines advertising became alternative number two for many companies. Also it was illustrated that 2 to 37 percent of magazines' readers respond to the advertisements placed in the magazines and start to consume and try the products (Clow and baack).
  • 15. 14 Advertising into magazines have some pros such as. Magazines' advertising have the ability to aim several market groups at once. In addition, magazines attract the consumers' attention more because they include a lot of colorful images and motion. Also unlike the newspapers, magazines have long shelf life as it is viewed over and over by the readers and the subscribers. This will benefit the organization because they know it for a real that their advertisement will be more than once and they may act positively towards it. Also customers tend to be attracted towards the advertisements that offer their needs and wants (Clow and Baack). Finally; magazines' advertisement can be scratch and reserved as a reference for the consumers because these advertisements contains a lot of information that can be useful for the customers (Borrington and Stimpson, 2002). 2.1.2.2 Outdoor advertising – Billboards and Kiosks When people think of Outdoor Advertising, they usually think of the colorful billboards along our streets and highways. Included in the "outdoor" classification, however, are benches, posters, signs and transit advertising (the advertising on buses, subways, taxicabs and trains). They are all share similar advertising rules and methods. Outdoor advertising reaches its audience as an element of the environment. Unlike newspapers, radio or TV, it doesn't have to be invited into the home. And it doesn't provide entertainment to sustain its audience. Some Outdoor Advantages:  Since it is in the public domain, Outdoor Advertising assuredly reaches its audience. People can't "switch it off" or "throw it out." People are exposed to it whether they like it or not. In this sense, outdoor advertising truly has a "captured audience."  Its messages work on the advertising principle of "frequency." Since most messages stay in the same place for a period of a month or more, people who drive by or walk past see the same messages a number of times.
  • 16. 15  Particular locations can be acquired for certain purposes. A billboard located a block in front of your business can direct people to your showroom. Or you can reach rural areas efficiently by placing billboard in each small town.  Outdoor advertising is an excellent adjunct other types of advertising you are doing. In fact, it is most effective when coupled with other media. Some Outdoor disadvantages:  Outdoor advertising is a glance medium. At best, it only draws 2-3 seconds of a reader's time.  Messages must be brief to fit in the 2-3 second time frame. Ninety-five percent of the time, either the message or the audience is in motion.  The nature of the way you have to buy outdoor advertising (usually a three month commitment) is not conducive to a very short, week-long campaign. When you buy outdoor advertising, remember that location is everything. High traffic areas are ideal. A billboard in an undesirable area will do you little good. Keep your message concise (use only five to seven words) and make it creatively appealing to attract readership. Few words, large illustrations (or photos), bold colors and simple backgrounds will create effective outdoor advertising messages. 2.1.2.3 Broadcastadvertising – Television, Radio and the Internet There are various ways that can be used by companies to advertise; among them is the television advertising. We are going to be focused on this type of advertising because it's the more effective way to influence the perception of customers. Television advertising is the most common and influence way used by organizations to advertise about any new or existing products and services due to its fame. Television as a mean of communication is very effective as it has the ability to be in contact with the whole market regardless of their age. (Hsu and Yang and Su, 2007). Clow and Baack also agreed that television has the widest coverage area among all the advertising mediums as it can be reached
  • 17. 16 by almost all the market including the target group. Also Hoag (2008) and Lewis (2009) illustrated that television is widely spread all over the world, where almost every house own one or more with regular seven hours of viewing television, so television allows brand detection and it builds brand trustworthiness. In addition it was proved by the euro monitor that the overall of the whole world's sales of television enlarged from 146 million units in 2001 to 247.5 million units in 2006 (Kwak and Andras and Zinkhan, 2009). Television advertising is classified into two categories, strategic advertising and direct respond advertising. The strategic advertising is made to influence the consumer buying behavior on the long term. While the direct respond advertising focuses on the short term aspects as increasing the sales. Yet the direct respond advertising has a greater force on the consumer perception of the brand (Payne,2005). And so the television advertising is used to alter the consumers' behavior via building up their consciousness and partiality to a certain product or service (Dong-Hun, 2009). As the television is the most authoritative medium of advertising (Cincotta, 2005: 42), an effectual advertising campaign must be done. The advertising campaign starts with making the target market aware of the product or service that is offered. The second step is to print the brand name in the market. The third step will be the positioning which is building the brand image in the consumer's mind. The fourth step is branding, where the consumers are able to differentiate the product. The last step will be the messaging, which is delivering the message to the customers (Nyren, 2005). But Mwanza (2007) believed that in order to create a television campaign all what is needed is to establish an actual advertisement and reserving a time slot. Dong-hun (2009) revealed that a successful television commercial must have attracted appeals in order to seize consumer's attention. Some of these appeals are; entertainment which is the enjoyment factor of the advertisement. Also advertisements must be conducted for long term period as this is a way to catch consumer's eye towards the advertising campaign. Another appeal to attract customer's attention is the humor appeal, which became widely spread and applied by most of the organizations. Also the use of human beings in the advertisement adds credibility to it. Finally; the organization must stress on the consumers' benefits rather than the product features.
  • 18. 17 Speaking about television advertising we have to mention its pros and cons. First; we will start by identifying what are the main advantages of advertising on television. As we previously mentioned, that almost every household owns at least one television this makes the television viewed by about every single person. And by this, organizations can depend completely on it for advertising their products and services knowing that these advertisements will be viewed on a large scale (lewis, 2009). Another advantage of the television is the merging of the sound and image, this will definitely seize the audiences' attention and persuade them to try the product or service being advertised. Additionally, advertising in television allows the organization to show the features and other thing about the product such as, how to use it which is not available at print ads (Clow and Baack). Brown agreed that television is a very good medium for delivering videos containing both sounds and images. In addition, television has the ability to nab viewers' interest. On the other hand, advertising on television has several disadvantages. The main disadvantage is that television advertising acquires a lot of money and time consuming as an organization takes a lot of commerce a new product on television (Donohue, 2005). Besides, cluttering which is showering consumers with a lot of advertising became one major con as it makes the organization unable to deliver its products information to the customers. Finally; television advertising does not have long life duration, the advertising lasts only for few seconds (Clow and Baack). 2.1.2.4 CovertAdvertising – Advertising in Movies Covert advertising is a unique kind of advertising in which a product or a particular brandies incorporated in some entertainment and media channels like movies, television shows or even sports. There is no commercial in the entertainment but the brand or the products subtly ( or sometimes evidently) showcased in the entertainment show. Some of the famous examples for this sort of advertising have to be the appearance of brand Nokia which is displayed on Tom Cruise’s phone in the movie Minority Report, or the use of Cadillac cars in the movie Matrix Reloaded.
  • 19. 18 2.1.2.5 CelebrityAdvertising Although the audience is getting smarter and smarter and the modern day consumer getting immune to the exaggerated claims made in a majority of advertisements, there exist a section of advertisers that still bank upon celebrities and their popularity for a d v e r t i s i n g t h e i r p r o d u c t s . U s i n g c e l e b r i t i e s f o r a d v e r t i s i n g i n v o l v e s s i g n i n g u p celebrities for advertising campaigns, which consist of all sorts of advertising including, television ads or even print advertisements. 2.1.3 Techniques of advertising (M. H. "Mac" McIntosh, CBC) talked about the advertising techniques by mentioning that advertisers must first concentrate their message on deliver the benefits of their products and services without using images in the ad as the main idea. Second, in order to catch the attention of the reader and by giving him/her the chance to get to know the product or service that the company provides, advertisers have to put the benefits in the ads with some headlines. Third, people now don’t have enough time to read the whole ads so in order to get the message; advertisers must put in mind to make it easy for the reader to skim their ads. Fourth, choosing some specific words in the ads attracts the attention and generates more inquiries such as “free” and “new”. Fifth, make the reader feels like he’s the most important by focusing on his needs and using “you” or “your” instead of “we” or “our” products and services. Sixth, advertisers have to ask for the order before getting it so they have to create offers such as “call, write, fax or e-mail” to help customers to determine which products meets their needs. At some points, Charles Godbout agreed that advertisers must state the benefits to inform the customers that they can gain benefits from the products and services. He also agreed that using the word “free” by offering free items can build a trust between the company and the customer so the customer can experience the benefit of the product and make repurchases. However, Charles Godbout added that advertisers have to believe that customers are intelligence. They think wisely before making a decision and advertisers must use facts in order to gain an advantage. One of the effective
  • 20. 19 techniques is using celebrities because they are very good at convincing the customer and they have good appeal to the public to catch the interest of them. Another technique is targeting the audience who are likely to develop an interest. He also mentioned that marketers must reach out to the customer’s emotional appeal. 2.1.4 Importance of advertising: (R.R.Khan, 2011), (S.R.Kamble,2011) & (Rita.Khatri,2011) Believed that advertising is the most effective activity in marketing. With a mentioning of some importance that advertising promotes the sales of products and services by providing good advertising campaign that has an impact on the attention of consumers and helps to gather new customers. They said that advertising helps the product and service to be known and more popular. It also creates a good image and reputation of the company that helps advertisers to communicate what they have achieved in satisfying the customer’s wants and needs. This could increase a fight of competition in the market. Trying to differentiate your new products and their use from others available in the market by advertising is also very important. In addition, doing a good research for discovering a new product in the market and new uses to match with the customer’s needs and wants can also keep your position in the market because without the research, the company will be kick out of the market. Advertising is very important in educating the people. It gives them more knowledge and information about a new product entering the market and the use of it. Without advertising, those products won’t be known by the customers. Finally, advertising is a very important source in increasing the revenues of magazines. By doing an advertisement for the magazines, it will increase the sales of it. It’s also a source of revenue for TV network. For example, CBC channel broadcasts the same ads before, in between and after the programs which increases the income of both the channel and the companies who provide such ads. 2.1.5 Direct marketing: Direct marketing occurs when companies use non-personal such as telephone or mail to be able to directly interact and know the response of the customers. (Rowley, 1998: 384). Since direct marketing is used by a lot of companies to gain a direct response from their target
  • 21. 20 audience it can eliminate the use of intermediaries. Some companies believe that communicating directly with their customers may urge them to do an immediate action. (Belch & Belch, 2007: 18,20,446). Direct marketing is very advantageous to customers as it saves a lot of time and effort, for it gives them the chance to home-shop. In addition to the fact that direct marketing is used by companies to build a strong long-term relationship with customers. (Kotler & Keller, 2006: 604- 606). On the other hand, direct marketing has some flaws, as some consumers are not convinces to buy a product they have never seen before, also direct marketing may be irritating to some people, as buyer send a flow of mails to convince customers to buy the product. (Wells, Moriarty & Burnett ,2006:424).
  • 23. 22 3.1 Customer perception 3.1.1 Customer perception meaning: PJ Germain in his article: Top Advertising Resources mentioned that the perception of the customer is one of the most important components of the relationship with the customer. However, advertisers must study the psychological of customers and their perception to target customers exactly the same way to get the message across as the manufacturer want. There are plentiful definitions explained by many researchers. In biology, perception refers to the senses of human to gather information about the environment. Wade and Tavris (1987) divided human senses as vision (eyes), hearing (ears), taste (tongues), touch (skin) and smell (nose). Walters and Bergiel (1989) continued to state that human's senses of smell and taste are human's olfactory senses and are so closely entwined. However, in consumer behavior, perception is way much more than just biological senses. According to Walters et al (1989), he mentioned that each perception involves a person who interprets over the realization or senses event or relation that may be specified as the percept. Van der Walt (1991) added that perception occurs through the brain when designing and identifying certain meanings according to the person feeling, what they like, dislike and what they experienced in their life, also depending on their beliefs. Studying the customer's mind and the perception of them is very complicated, for example, two individuals might be in the same situation, but the situation here differentiates them from each other depending on how they receive, organize what happened or what they have seen based on their own needs, wants, and what they appreciate the most. So marketers must understand the perception very well to know how to attract their customers. (Schiffman et al, 1991).
  • 24. 23 3.1.2 Consumer perception process: Processing is an activity by which stimuli are perceived. (Hawkins & Mothersbaugh, 2010, p. 278). They stated that perception processes are categorized into three major steps: exposure, attention and interpretation. However, Wells & Hawkins et al (1989, 1992) had another opinion saying that customer perception process comes with five main activities as the first activity is exposure, the second one is attention, the third one is organization, the fourth one is interpretation and the last one is retention. If those steps or activities of customer perception process success, they will lead easily to a purchasing decision. 3.1.2.1 Exposure: It’s the first activity of the customer perception process. It occurs when a stimulus comes within the range of our sensory receptor nerves. It provides consumers with the opportunity to pay attention to available information but in no way guarantees it. (Wells et all, 1989). For example, have you ever been watching television and realized that you were not paying attention to the commercials being aired? In this case, exposure occurred, but commercials will probably have little influences due to your lack of attention. Aaker et al (1987) conclude by emphasising the importance of exposure by stating that there can be no communication without exposure. 3.1.2.2 Attention: According to Mothersbaugh & Hawkins, 2010, attention is defined as how customer selects the information given and how he interpreted and given meaning. There are three factors in determining attention. The first one is the stimulus, the second one is individual and the last one is situation. (Hawkins et al, 1992). Stimulus factors that are used by advertisers to capture customer's attention to an ad such as size and intensity, color and movement, position, isolation, format and information quantity. Hawkins et al (1992), Mowen (1993), Assael (1992), Schiffman et al (1991), Wilkie (1990), Aaker et al (1987) and Berkman & Gilson (1986) have all agreed in
  • 25. 24 explaining that customers are attracted to large and huge sizes than small one. They are the most noticed by customers. (Wilkie, 1990). Intensity can be used to draw attention such as brighter lights and loud noises that are used for this purpose. On the other hand, Wilkie (1990), said that both color and movement can get the customer's attention easily. For example, Tropicana uses color to focus attention on orange juice. In addition to the bright colors and moving objects that can have a strong effect on the customer’s attention. Another factor is the position of an advertisement. Position is the most interesting of perception. For example, items that are placed to the centre are more to be noticed. Likewise, advertisements that are on the upper half of the page and left-hand side are noticed than those on the lower of the page and right-hand side. Isolation is about separating an object from other objects. For example, if a small object is placed in a virtually blank page, it will draw attention immediately. In addition, format refers to in which the message is presented. For example, presentations that are straight receive more attention than those who are complex. The final factor is information quality that occurs when customers are faced with a number of information that cannot attend to all of it. According to Wilkie (1990) personal interests and needs are the most factors of individual factors. Personal interests and needs are different from person to person. (Berkman et al, 1986). The situational factor is the final factor of attention. As mentioned before, the situation can differentiate each person according to their interests, wants, needs, beliefs and what did they experienced in life. 3.1.2.3 Organization: Organization affects consumer interpretation and categorization. People try to organize an incomplete ad. The closure of an ad means that when there is incomplete messages with the goal of making customers complete it. This is a very smart way in order to make customers interested to the ad and allow them to interpret the meaning of ads and likely enhance the recall. Context is also very interesting part. Assael (1992) & Mowen (1993) suggested that figure and ground is the most important principle of context. For example, an image of black and white colors that each color is about a different form, the individual here will try to organize what he/she sees by switching back and forth because their brain cannot figure out which colors is the portion of the image.
  • 26. 25 3.1.2.4 Interpretation: According to Mowen (1993), Consumers have emotional responses to or interpretations of ads. When customers see an advertisement or a printed ad somewhere that include a certain message, slogan, logo or even a music, they immediately try to translate these factors to remind them whether advertisers respond to their need or not. Schiffman et al & van der Walt (1991) added that interpretations occur according to the expectation of the customer, experience and memory. 3.1.2.5 Retention: Van der Walt (1991) explained that there is no purpose if the customer won’t be able to recall the information that he must act on it when required even if the total perception process was successful.
  • 27. 26 Chapter Four Telecommunication industry and effects on customer perception
  • 28. 27 4.1 Telecommunication industry: The mobile operators market is a violent competition market in Egypt. In the telecommunication industry, Egypt provides three different mobile phone services. These services are: Etisalat (United Arab Emirates), Vodafone (United Kingdom), and Mobinil (Egypt). These markets create major challenges because of their complex nature and the dimension of them that makes them attractive to customers. It opens the competition and the opportunities in front of the customers to enjoy a lot of choices and offers among the service provider. Service providers are expected to compete on both price and quality and should meet the customer expectations in both quality and price. 4.1.1 Service quality: Service quality is fundamental for a telecommunication service provider company for establishing and keeping loyal and productive customers (Zeithaml, 2000; Leisen and vance, 2001). On the contrary, Johnson and Sirikit (2002) declared that service quality reflects expectations about product or service so it allows the manufacturer's managers to explore and investigate the customer feedback and relief about their telecom service. Mostly, customers focus on the quality of the products and services they need. So, the telecommunication providers must communicate with the customer from time to time to evaluate and improve their quality. Since, it meets the expectation of the customer about the product or service. (Wal et al,2002). Network quality is also very important to customers so the providers are trying to develop their network and provide more services to their customers and non- customers to make a really high profit.
  • 29. 28 4.1.2 Price: Prices play a main role to the customers for the telecommunication service providers, (Kollman,2000). However, prices offer competition between the providers of telecommunication services and each of them plays a game of providing low purchasing prices and low costs of call minutes so it's very interesting to the customers to make a choice whether to commit with their providers or to shift to the others. 4.1.3 Promotions: Promotions also play a main role in the telecommunication sector by attracting the c ustomers, especially when entering a new market and attracting new customers and to communicate with them. (Kotler et al, 1999). (Rowley, 1998) agreed that promotion is a game that targets customers by communicating products and services to them. According to Rowley (1998) the core of promotions are increasing in the sales, improving market share, improving or creating the brand recognition, creating a favorable climate for future sales, informing and educating the market about the new network, and creating a competitive advantage. However, Alvarez and Casielles (2005) argued by saying that promotions have several objects that affects the perception of customers and makes more and better sales impact such as, coupons, samples, premiums, contests, point-of-purchase displays and frequent-buyer programs. 4.1.3.1 Promotional mix: Promotional mix is defined as the combination of all the tools that a company uses to achieve a certain objective. These tools include, advertising, direct marketing, internet marketing, sales promotions, public relations and personal selling. (Belch & Belch, 2007:15,17) Rowley (1998:384,386) suggested that the promotional mix is the use of different promotional method such as sales promotions, advertising, direct marketing, public relations, personal selling and sponsorship to be able to deliver a certain message.
  • 30. 29 4.1.3.1.1 Personal selling: Personal selling is considered to be one of the tools of the promotional mix. (Belch & Belch, 2007:15, 17 & Rowley,1998:384,386) .Personal selling is a method of convincing consumers to take a certain action or to buy a certain product . Personal selling is very beneficial in persuading the consumers to take immediate action as the buyer can hear what the customers want and he can modify his words about the attributes of the product to match the customers’ needs. (Blech & Blech, 2007:23). Companies today are spending a lot of money to educate and prepare their sales representatives to be able know what the consumer want and convince him that this product is what he wants. (Kotler & Keller, 2006:625). Nowadays companies treat their sales representatives as an investment, as they can convince customers to buy an expensive product claiming that this high prices is certainly offset by high quality. (Fam and Merrilees, 1998: 248). 4.1.3.1.2 Sales promotions: A lot of researchers such as Mandic,( 2009239-240), Kotler & Keller (2006: 586-587) & Wells, Moriarty & Burnett (2006:469) agreed that advertising and sales promotions are distinct from each other, and based on that, they should always be used to support and complete the roles of each other. In other words, the effects of sales promotions are always created for the short-run since they trigger the response of consumers; however, advertising is used to build a brand as it reduces the sensitivity of consumers to process. When sales promotions are used, they sometimes imply that the product is of a low value. Though the effect of sales promotions may be achieved quicker than the effect of advertising, sales promotions fail to create long-term consumers. (Kotler & Keller, 2006: 586-587). Advertising is used to create an intangible value for the product, on the other hand sales promotions adds to the tangible value of the product and increases its profitability (Wells, Moriarty & Burnett ,2006:469). When a firm uses promotions it is seeking a changes in its consumers’ “behavior”, on the other hand when it uses advertising, it is seeking a change in its consumers “perception”. (Papatla & Krishnamurthi, 1996:20).
  • 31. 30 4.1.3.1.2.1 Theoretical considerations: Rowley (1998:384,386) & Belch & Belch ( 2007:15,17) agreed that sales promotions are considered among the tools of the promotional mix. According to the American Marketing Association (AMA), sales promotions is “media and non-media marketing pressure applied for a predetermined, limited period of time in order to stimulate trial and impulse purchases, increase consumer demand, or improve product quality” (Wells, Moriarty & Burnett, 2006:453). Sales promotions are believed to increase the sales as they motivate the consumers and offer them more reasons to buy the product. (Wells, Moriarty & Burnett, 2006:453). Sales promotions also give support and encouragement to the consumers, distributors and the sales force to affect their buying behavior and force them to buy your product. (Belch & Belch, 2007: 495). Sales promotions are considered to be a set of occasional actions, they occur at different time intervals and their mainly targeted to trigger consumers to buy a certain product. (Alvarez & Casielles, 2004:56). The effect that sales promotions have on demand is predicted to be seen after a short period of time. (Banerjee, 2009: 121). Consumers who are not normally potential consumers of a certain product, however, they buy it due to sales promotions are believed to return to their former products in the future. (Alvarez & Casielles, 2004:58). In 1991, the budget of sales promotions was $56 billion; however, in 2005 it reached $ 343 billion. ( Belch & Belch,2007: 496). According to Wells, Moriarty & Burnett (2006:453- 454) companies spend $ 28.5% of the total amount spent on advertising and sales promotions on their consumer promotion, 17.5% on advertising through the media and the trade promotions acquired 54% of the total budget. The sales will increase if the sales promotions were sufficiently managed. (Alvarez & Casielles, 2004:56). The hazards that the consumers may face while trying a new product may be lowered by using sales promotions as it adds value to the products they buy. (Wells, Moriarty & Burnett 2006:454). 4.1.3.1.2.2 Types of sales promotions: Since sales promotions have many types, its effectiveness should not be measured as a whole, however, every type should be measures individually. So a good knowledge about every type should be acquired to be able to assess how successful the sales promotions were.
  • 32. 31 (Srinivasan & Anderson, 1998:412). Alvarez & Casielles, (2004:56) added that the types of sales promotions may differ in their application and implementation from one country to another. Moreover, the benefits of sales promotions can be increased if more than one type were combined together. (Srinivasan & Anderson, 1998: 414). Banerjee (2009:129-130) argued that if the types of sales promotions were mixed perfectly the can lead to an increase in the sales of a certain product. The combination of types of sales promotions varies with the category to which the product belongs and with the age of the target market. Boolertvanich (2010: 54) believed that sales promotions have two types, the first type is the monetary sales promotions, which deals with the monetary-side of the promotions, meaning that the consumers either get the chance to get the product and pay less for it, or they receive a “voucher”. They can also get the chance to take a gift instead of the cash, which will account for the same amount of money. The second type of sales promotions is, the non-monetary sales promotions, it has nothing to do with cash, however, this type means that the costumer will be treated in a special, respectful and polite way when buying the product. However, Banerjee (2009: 121-122) disagreed with these classifications, adding that the sales promotions can be classified into, discounts and freebies. As for the discounts, it is further classified into cash discounts and volume discounts. Cash discounts, this kind of discount consequently influences the final price of the product. On the other hand, Volume discounts are those discounts are given to people who buy the product in large quantities. The second type of sales promotions are the freebies, they include a gift packed with the product and given to the consumers for free. Wells, Moriarty & Burnett (2006:455), Kotler & Keller (2006:587), Srinivasan & Anderson (1998: 410) & Belch & Belch (2007: 495) suggested that sales promotions can be subcategorized into many types, first is the consumer oriented promotions, the second is the trade oriented promotions. Wells, Moriarty & Burnett (2006:455) agreed with Kotler & Keller (2006:587) and they added a third part which is the sales force promotions. However, Srinivasan & Anderson (1998: 414) opposed their opinion adding that the third type of sales promotions is the retailer oriented promotions. Wells, Moriarty & Burnett (2006:455-458), Kotler & Keller (2006:588), Srinivasan & Anderson (1998: 411) & Belch & Belch (2007: 496) agreed that the consumer sales promotions
  • 33. 32 have different types underneath it, and they all had five types in common which are, coupons, samples, refunds & rebates, contests & sweepstakes and the price deals. The first type is the coupons, which is a certificate that guarantees the purchaser that he would be able to buy the product at a special price and save a little. (Kotler & Keller, 2006:588 & Wells, Moriarty & Burnett 2006:456). The number of coupons given to consumers, witnessed a huge change, as in 1968 it was only 16 billion coupons; however, in 2003 it increased to 258 billion coupons. (Belch & Belch 2007: 510). The second type that they all agreed upon was the samples, Kotler & Keller (2006:588) agreed with Belch & Belch (2007: 507) & Wells, Moriarty & Burnett (2006:456) that sampling includes some free products and services given to the consumer, to give the consumers the chance to try and their product or service for free. Though it may be considered that it is the priciest and most affluent type, it could be very helpful in encouraging consumers to give the product or service a shot. (Belch & Belch, 2007: 507). The third type is the refunds & Rebates, in this case the consumers are allowed a certain amount of money which they paid for during their purchase, and however, they must submit a proof that they had already done the purchase. The fourth type is contests and sweepstakes, where contest means that the consumers go through a certain competition and they are evaluated accordingly, and they must provide a proof of purchase to participate. Sweepstakes mean that consumers are allowed to participate by submitting their names and the name of the winner is just selected randomly. The fifth type is the price deals price off price packs, which cuts or decreases the normal price of the package; it can be shown on the pack itself. (Kotler & Keller, 2006:588 , Belch & Belch , 2007: 518, 521-522 & Wells, Moriarty & Burnett ,2006: 454-456). Besides these five types, Srinivasan & Anderson (1998: 411) & Wells, Moriarty & Burnett (2006: 456-458) added that special events or the special advertising are also considered to be from the types of sales promotions. They include the items that are given to the consumers that have the name of the brand or the company on it. (Wells, Moriarty & Burnett, 2006:458). Premiums are also a type of sales promotion, premiums provides the consumer with a free item, or a low priced item which may be seen as an additional encourage to the consumer to make the purchase. (Kotler & Keller, 2006:588, Belch & Belch, 2007: 516 & Wells, Moriarty & Burnett (2006: 456).
  • 34. 33 Belch & Belch (2007: 522 -523) & Kotler & Keller (2006: 458) agreed together that loyalty programs or frequency programs are part of the sales promotions, which means that the consumers are encouraged to buy more of that specific product by rewarding the consumers who made purchases at either high quantities or high rates. Bonus packs and event marketing are another two types of sales promotions. Bonus packs provides the consumers at the same price, more units than usual and event marketing where a company relates its name to a certain event. (Belch & Belch, 2007: 522-523). However, Kotler & Keller (2006: 588) disagreed adding that sales promotions can be further classified into, patronage awards, product warranties, tie-in promotion, cross promotion and point of purchase display. Patronage awards provide the consumers with support and backup in any form such as cash. However, free trials, allows consumers to try the product or service for free in order to become future customers. And product warranties, guarantees to the consumers that if they bought a product and it failed to perform as promised then the seller would either repair it or give the consumer his money back. As for tie-in promotion, it is used to attract the consumers to buy the brand; it is done through combing more than one brand in the same coupon. Cross promotions are achieved through promoting a product through another non-competing one. And finally point of purchase display (POD) which is done at the place of purchase. (Kotler & Keller, 2006:588). The second type of sales promotion suggested by Wells, Moriarty & Burnett (2006:461- 462), Kotler & Keller (2006:589), Srinivasan & Anderson (1998: 411) & Belch & Belch (2007: 527-533) is the trade oriented sales promotions. Point of purchase displays is the first type under trade-oriented sales promotions; they are the promotions that take place where the purchase is done. They are created by the manufacturers of the product and they are distributed among the retailers to be used to attract the consumers’ attention. Trade shows are developed to allow competing companies to show their products to attract future consumers and encourage current consumers to buy more. In addition to the trade allowances or the trade incentives and deals, which are the benefits or the discounts given to a certain retailer to encourage him to buy more of their product, or to encourage him to give a certain product more priority than others, or to make the product more observable and attractive than others in the store. (Wells, Moriarty & Burnett 2006:461-462, Kotler & Keller 2006:589 & Belch & Belch 2007: 527-533). Manufacturers set a certain level of purchase and the premium retailer who overtakes this contest with the highest amount will be offered a prize by the manufacturers, this is known as contests and they are
  • 35. 34 considered to be part of the trade oriented sales promotions. (Wells, Moriarty & Burnett 2006:462, Belch & Belch 2007: 527 & Srinivasan & Anderson 1998: 411). Wells, Moriarty & Burnett (2006:461-462) argued that retailer kits, these are the objects that are used to help the retailer in the selling process. On the other hand, Belch & Belch (2007: 531-532) added that sales training programs and cooperative advertising are believed to be among the types of trade promotions. Where sales training programs are those training courses given to the retailers’ staff or sales personnel to qualify them and make them able to discuss and explain their products with different consumers. As for the cooperative advertising, which means that the manufacturer won’t have to pay for the whole advertising budget, however, it will be shared by a lot of contributors. Case allowances, advertising allowances, display allowances, trade allowances and financing incentives are also considered to be types of trade promotions. However, Kotler & Keller (2006:589) suggested that the trade oriented sales promotions are classified into two more types, the first type is the price off, which means that a discount will be given to consumers when they purchase during a specific period of time. The second type is the free goods, which gives consumers who buy the product in a certain amount or who buy a product with certain trait. Trade promotions have two types, discount-based trade promotions and performance-based trade promotions, the discount- based means that the retailer buys the product from the manufacturer at a lower price than its normal price. As for performance-based which is given after the retailer has accomplished a certain level of accomplishments. (Gomez & Rao, 2009:868). The third type of the sales promotions is sales force. ( Kotler & Keller 2006:589 & Wells, Moriarty & Burnett 2006:455). Sales force includes two different components, first is the training given to the sales personnel and make them ready to talk about the product. The second component is the incentives that help encourage the sales personnel to make their jobs better. (Wells, Moriarty & Burnett 2006:455). Trade shows and conventions, sales contests and specialty advertising are suggested to be from the types of sales force. (Kotler & Keller, 2006:589). Trade shows and conventions are where the manufacturer arranges for the trade show to attract new customers, sales contests are organized to remind the customers with their product and special advertising these include the items of value which have the name and address of the company which is given to the customers. However, Srinivasan & Anderson (1998: 411) argued
  • 36. 35 that the third type of the sale promotions is the retailer promotions, which include the price cuts, displays, feature advertising, free goods, retailer coupons and contestspremiums. 4.1.3.1.2.3 Role and objectives of sales promotions: The objectives of sales promotions must be logically stated to be able to decide which type of promotions will be used. Different types may be combined together to be able to reach the final objective. (Alvarez & Casielles, 2004:57). In addition to this, sales promotions can be used to encourage people to try the product as well as encourage those who had purchased it before to repurchase it, thus they can boost the sales of the company in a short period of time. (Boonlertvanich, 2010:53). Banerjee (2009:129-130), agreed with (Alvarez & Casielles, 2004:57) that if the types of sales promotions were adequately combined they can cause the sales to increase, adding that the appropriate type of sales promotions to be used varies with the category to which the product belongs to as well as the age group that its targeting. By the introduction of new products, companies try to compete with already existing companies by enforcing sales promotions, leading the existing companies to fire their guns and fight back using their own combinations of sales promotions to encourage consumers not to shift. (Srinivasan & Anderson, 1998: 417). Sales promotions may lead the consumers to be more loyal to a certain brand; it may increase the new trails of a product and encourage consumers to buy more. It can either lead to short-term objectives which mainly are to support consumers to buy more or long-term objectives, which deal with broader objectives such as enlarging a company’s share in the market. (Alvarez & Casielles, 2004:57). The objectives of sales promotions can be grouped either as short-term objectives or as long-term objectives, as for the short-term objectives of sales promotions may be to defend your product against the promotions of other companies, to increase the revenues of the firm in a certain period of time or to increase the company’s sales to reach the previously set sales objectives. However, the long-term sales promotions objectives are directed towards building or defining a certain image for your brand or towards affecting the sales of that product. The final objectives that the company wishes to accomplish through sales promotions must be determined, and companies must know how to combine sales promotions with other elements. The effect on the company as a whole must be deliberated to make the sales promotions worthy. (Quelch & Jocz, 2010:191)
  • 37. 36 Moreover, according to Belch & Belch (2007:503-507) the objectives of sales promotions can be grouped according to their type whether consumer-oriented or trade-oriented sales promotions. Where the objectives of the consumer-oriented sales promotions are to “obtain trial and repurchase” where the primary goal of sales promotions is to reassure the people to give their product a shot, “increase consumptions of an established brand”, sales promotions can attract people to buy the product, “defend current customers” some new companies use advertising elements to attract other companies’ customers, so these companies can counter this by the use of sales promotions to maintain their consumers, “target a specific target segment” market segmentation is an essential element for any company, sales promotions help companies to segment their target market. And to “enhance integrated marketing communication and building brand equity” one of the objectives of sales promotions is to reinforce the exertion that the company exert towards their IMC and to enhance the brand equity of the company. Kotler & Keller (2006: 587) agreed with Belch & Belch (2007) suggesting that sales promotions’ objectives vary with whom they are presented to, so if they are for consumers, they are mainly done to attract new consumers to try the product, and for current consumers, to buy the bigger sizes of the product in addition to encouraging consumers of other competing products to switch to your product. This consequently will lead to an increase in the sales in the short run, however, in the long run; consumers will perceive the brand differently due to “brand equity” As for the trade-oriented sales promotions it has many objectives, such as to “obtain distribution of new products” which is done to act as an encouragement for retailers to sell the product in their outlets.” Maintain trade support for established brands” when brands are in their maturity stage in the product life cycle, they are in jeopardy to lose their distributors, so trade promotions are done to prevent this. Trade promotions also “encourage retailers to display established brands” and here the role of trade promotions is to encourage retailers to promote the brand in their outlets, since many consumers decide to purchase a product while they are in the store. The last objective of trade promotions is to “build retail inventories” when retailers have extra stock they tend to promote the product more to get rid of the extra inventory. ( Belch & Belch, 2007:525-527). Moreover, Kotler & Keller (2006: 587) suggested that if the promotions are presented to retailers, their objective will be to encourage retailers to hold large inventories as well as opening new markets for the distribution of the product, compensating the promotions of competing brands they also help to construct loyalty among consumers. Trade promotions are
  • 38. 37 sometimes done in trade shows, to be the starting point of launching a new product, or to encourage people to buy an off season product. 4.1.3.1.3 Public relations: Belch & Belch (2007:15, 17) & (Rowley (1998:384,386), considered public relations to be one of the types of the promotional mix. Public relations is defined as” the management function which evaluates public attitudes, indentifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance”. (Belch and Belch, 2007: 23). It also refers to actions taken by a company to be able to communicate its image. Public relations helps a company execute some missions such as press relations, product publicity, corporate communication, lobbying and finally counseling. (Kotler & Keller, 2006: 593-594) 4.1.3.1.4 Promotional strategies: The push strategy and the pull strategy are considered the two main promotional strategies. 4.1.3.1.4.1 Push strategy: The push strategy is used when the manufacturers are shoving their goods to the consumers, so they convince the retailers to stock the product, by doing so they guarantee that they will consequently press on the consumers to buy the product to be able to get rid of the stock they have. (Wells, Moriarty & Burnett ,2006:462 & Belch & Belch, 2007: 63). 4.1.3.1.4.2 Pull strategy: However, the pull strategy is mainly done to magnetize the consumers towards the product. Here the manufacturer wants the consumers to request his product and which will
  • 39. 38 consequently increase the demand for his product, this is done by advertising for the product. (Wells, Moriarty & Burnett ,2006:462 & Belch & Belch, 2007: 63). A pull strategy may be used if the product has some special attributes that the consumers want, so they will ask for it, on the contrary it cannot be used if the budget of the company is tight, as it may need advertising and sales promotions to make the consumers aware of the product and thus demand the product. (Belch & Belch, 2007: 63). Manufacturers may use bonuses, dealer loaders, buying allowances, advertising allowances, cooperative allowances or display allowances to convince the retailers to stock their product. (Wells, Moriarty & Burnett ,2006:462-463). 4.2 Effects of advertising on customer perception in telecommunication sector: 4.2.1 Effects of TV advertising on customer perception: Marketers use their knowledge of perception to enhance number of area including media and advertising. Each type of media advertising that has been mentioned before plays a vital role in delivering the message to the customers and gathering their attention to win new customers. The researches focused more on TV ads because they found it very important to own a television in our country. TV ads have been the most effective type of advertising that can easily communicate with audience but hard to deliver and get the attention of them. However, television is used all over the world. You can find more than two televisions in each house according to the use of the family. Marketers avails the use of each family by deliver and advertise their products and services through televisions during the year especially the month of Ramadan as it's one of the months that people sit and watch television more than any month of the year. Furthermore, advertisements must consist of two tasks. They must capture customer's attention and convey meaning. To do so, marketers must use two strategies. One is to utilize stimuli such as bright
  • 40. 39 colors, images, meaningful symbols and good taste of music to attract attention. The second is to tie the message to a topic to make it more interesting to watch. However, advertisers must put in mind that it's not too easy to deliver their target market to get customer's attention. In order to do this, they must use factor that can be related to the topic of the advertisement. That’s why many companies often try to use humor, sex appeal, and celebrities to affect positively the customer's interpretation and attention so they can understand and enjoy the commercial whenever they watch it on TV and not to get bored of it. In addition to that, marketers must study and understand the psychology and personality of each person in life and how the perceptions of the individuals work to know how they will influence their customers to their products and services and which colors, images and music does the customer enjoy the most. Also, the effectiveness of TV ads can be measured by the time spending in watching TV programs. The effect of young people has received much attention because many of them are addicted to movies and shows provided on TV. Creativity also plays an important role as it's the most effective way that customers get effected by. Some successful companies believe that creative advertising is an important part of their marketing success, no matter how they make good products or services and how they are lovable and profitable among customers. 4.2.2 Effect of mobile telecommunication service on customer perception: Mobile telecommunication service can be one of the most companies that people seek the most to communicate with others so marketers must know the perception of their customers about price, promotion and service quality in order to select the best company that suits their needs, wants and use of the mobile service. Promotions are the most efficient strategy in attracting more customers. The more promotion companies offer, the more customer and profit they get and make. On the other hand,
  • 41. 40 prices play a vital role in customer's perception. When a customer makes a decision to buy or use a certain product or service, first, he seeks and compares the prices of the other companies to choose the best one. Adding to these strategies, service quality of telecommunication companies must be excellent or at least they must develop their quality of services and that opens a good competition among them that makes people enjoy the choices and seek for the best one. Companies must also focus on the benefits of their products and services more and not focus on the profit more than targeting a customer. The more low prices and high promotions they provide the more customers they attract because most of people focus more on lower prices and high benefits of the quality of their products or services they purchase. A lot of researchers such as Mandic,( 2009239-240), Kotler & Keller (2006: 586-587) & Wells, Moriarty & Burnett (2006:469) agreed that advertising and sales promotions are distinct from each other, and based on that, they should always be used to support and complete the roles of each other. In other words, the effects of sales promotions are always created for the short-run since they trigger the response of consumers; however, advertising is used to build a brand as it reduces the sensitivity of consumers to process. When sales promotions are used, they sometimes imply that the product is of a low value. Though the effect of sales promotions may be achieved quicker than the effect of advertising, sales promotions fail to create long-term consumers. (Kotler & Keller, 2006: 586-587). Advertising is used to create an intangible value for the product, on the other hand sales promotions adds to the tangible value of the product and increases its profitability (Wells, Moriarty & Burnett ,2006:469). When a firm uses promotions it is seeking a changes in its consumers’ “behavior”, on the other hand when it uses advertising, it is seeking a change in its consumers “attitudes”. (Papatla & Krishnamurthi, 1996:20).
  • 43. 42 5.1 5.2 Which Telecommunication Company do you use? (Figure 1) 0 10 20 30 40 50 Teenagers Youth Elders No. of people Teenagers Youth Elders Etisalat Vodafo ne Mobinil Etisalat and Vodafo ne Etisalat and Mobinil Vodafo ne and Mobinil All of them No. of people 30% 27% 17% 10% 10% 5% 0% 30% 27% 17% 10% 10% 5% 0% 0% 5% 10% 15% 20% 25% 30% 35% Teenagers No. of people Age bracket No. of people Teenagers 40 Youth 40 Elders 40 Total 120 Comment: We have considered 120 customers of mobile telecommunication services users of the three operations located in Cairo, Egypt. Dividing them onto three groups according to their ages and use. Each group was comprised of 40 people
  • 44. 43 (Figure 2) (Figure 3) Etisalat Vodafon e Mobinil Etisalat and Vodafon e Etisalat and Mobinil Vodafon e and Mobinil All of them No. of people 15% 30% 12% 12% 7% 12% 10% 15% 30% 12% 12% 7% 12% 10% 0% 5% 10% 15% 20% 25% 30% 35% Elders No. of people Etisalat Vodafon e Mobinil Etisalat and Vodafon e Etisalat and Mobinil Vodafon e and Mobinil All of them No. of people 25% 23% 20% 10% 7% 5% 0% 25% 23% 20% 10% 7% 5% 0% 0% 5% 10% 15% 20% 25% 30% Youth No. of people Comment: As it’s obvious here, Etisalat is the most company used by teenagers and youth, while Vodafone is more favorable between elders.
  • 45. 44 5.3 What is your favorable source of information about the new product/service? (Figure 4) (Figure 5) (Figure 6) televisio n customer service newspap ers outdoors magazin es internet word of mouth No. of people 50% 5% 2% 10% 2% 20% 10% 50% 5% 2% 10% 2% 20% 10% 0% 10% 20% 30% 40% 50% 60% Teenagers No. of people televisio n customer service newspap ers outdoors magazine s internet word of mouth No. of people 55% 5% 0% 2% 0% 27% 10% 55% 5% 0% 2% 0% 27% 10% 0% 10% 20% 30% 40% 50% 60% Youth No. of people televisio n customer service newspap ers outdoors magazine s internet word of mouth No. of people 60% 7% 0% 5% 7% 5% 15% 60% 7% 0% 5% 7% 5% 15% 0% 10% 20% 30% 40% 50% 60% 70% Elders No. of people Comments: here television advertising is the most favorable source of information that attracts people. As it took 50% of teenagers like TV ads, 55% of youth and 60% of elders. This approved the point that TV ads have been the most effective type of advertising that can easily communicate with audience but hard to deliver and get the attention of them.
  • 46. 45 5.4 What appeals attract you the most in advertising? (Figure 7) (Figure 8) (Figure 9) colors images music all of them No. of people 10% 10% 15% 65% 10% 10% 15% 65% 0% 50% 100% Teenagers No. of people colors images music all of them No. of people 2% 2% 20% 75% 2% 2% 20% 75% 0% 20% 40% 60% 80% Youth No. of people colors images music all of them No. of people 2% 2% 15% 80% 2% 2% 15% 80% 0% 50% 100% Elders No. of people Comment: all of teenagers, youth and elders are attracted to colors, images and music. This highlights the fact that bright colors,images and music can attract the customer and have a strong effect on the customer’s attention. Especially music, as it owned the highest percentage among teenagers, youth and elders. This means that they are attracted to advertising that contain songs and grab their attention.
  • 47. 46 5.5 Which advertisement of the following companies attract you more? (Figure 10) (Figure 11) (Figure 12) etisala t vodaf one mobin il etisala t and vodaf one etisala t and mobin il vodaf one and mob… none of them all of them No. of people 35% 15% 27% 7% 0% 2% 2% 10% 35% 15% 27% 7% 0% 2% 2% 10% 0% 10% 20% 30% 40% Teenagers No. of people etisal at vodaf one mobi nil etisal at and vodaf one etisal at and mobi nil vodaf one and mob… none of them all of them No. of people 45% 17% 10% 17% 2% 0% 0% 7% 45% 17% 10% 17% 2% 0% 0% 7% 0% 10% 20% 30% 40% 50% Youth No. of people etisala t vodaf one mobin il etisala t and vodaf one etisala t and mobin il vodaf one and mob… none of them all of them No. of people 7% 17% 30% 5% 12% 2% 0% 25% 7% 17% 30% 5% 12% 2% 0% 25% 0% 10% 20% 30% 40% Elders No. of people Comment: Etisalat advertisements are the most attracting to teenagers and youth as they provide new, creative and funny ideas, while Mobinil advertisements are the most attracting to elders because of the famous song they provided last Ramadan that made so many people shift to Mobinil.
  • 48. 47 5.6 Which factor attracts you more? (Figure 13) (Figure 14) (Figure 15) service quality prices promotion s/offers prices and promotion s/offers service quality and promotion s/offers all of them No. of people 20% 7% 12% 15% 27% 17% 20% 7% 12% 15% 27% 17% 0% 5% 10% 15% 20% 25% 30% Teenagers No. of people service quality prices promotion s/offers prices and promotion s/offers service quality and promotion s/offers all of them No. of people 0% 32% 2% 5% 60% 0% 0% 32% 2% 5% 60% 0% 0% 10% 20% 30% 40% 50% 60% 70% Youth No. of people service quality prices promotion s/offers prices and promotion s/offers service quality and promotion s/offers all of them No. of people 12% 25% 5% 5% 37% 15% 12% 25% 5% 5% 37% 15% 0% 5% 10% 15% 20% 25% 30% 35% 40% Elders No. of people
  • 49. 48 5.7 In your opinion, which service quality of the following companies attracts you more? (Figure 16) (Figure 17) (Figure 18) etisalat vodafon e mobinil etisalat and vodafon e etisalat and mobinil vodafon e and mobinil none of them all of them No. of people 27% 25% 32% 7% 0% 0% 5% 2% 27% 25% 32% 7% 0% 0% 5% 2% 0% 10% 20% 30% 40% Teenagers No. of people etisalat vodafon e mobinil etisalat and vodafon e etisalat and mobinil vodafon e and mobinil none of them all of them No. of people 30% 40% 22% 0% 0% 0% 2% 5% 30% 40% 22% 0% 0% 0% 2% 5% 0% 10% 20% 30% 40% 50% Youth No. of people etisalat vodafon e mobinil etisalat and vodaf… etisalat and mobinil vodafon e and mobinil none of them all of them No. of people 5% 40% 25% 15% 0% 5% 2% 7% 5% 40% 25% 15% 0% 5% 2% 7% 0% 10% 20% 30% 40% 50% Elders No. of people Comment: service quality and promotions/offers took the highest number of teenagers, youth and elders. As they are the most factors to be focused on by everyone. This approved the fact that customers focus on the quality of the products and services they need. So, the telecommunication providers must communicate with the customer from time to time to evaluate and improve their quality. Network quality is also very important to customers so the providers are trying to develop their network and provide more services to their customers and non-customers to make a really high profit. In addition, The core of promotions are increasing in the sales, improving market share, improving or creating the brand recognition, creating a favorable climate for future sales, informing and educating the market about the new network, and creating a competitive advantage. Comment: the charts above explores the fact that 32% of the teenagers are attracted to the service quality of Mobinil as it has been the best network coverage, while the quality of Vodafone is attracting youth and elders.
  • 50. 49 5.8 In your opinion, which prices of the following companies attract you more? (Figure 19) (Figure 20) (Figure 21) etisalat vodafon e mobinil etisalat and vodafon e etisalat and mobinil vodafon e and mobinil none of them all of them No. of people 40% 12% 25% 2% 12% 0% 7% 0% 40% 12% 25% 2% 12% 0% 7% 0% 0% 10% 20% 30% 40% 50% Teenagers No. of people etisalat vodafon e mobinil etisalat and vodafon e etisalat and mobinil vodafon e and mobinil none of them all of them No. of people 72% 12% 7% 0% 0% 0% 7% 0% 72% 12% 7% 0% 0% 0% 7% 0% 0% 20% 40% 60% 80% Youth No. of people etisalat vodafon e mobinil etisalat and vodafon e etisalat and mobinil vodafon e and mobinil none of them all of them No. of people 37% 12% 10% 7% 5% 0% 15% 12% 37% 12% 10% 7% 5% 0% 15% 12% 0% 10% 20% 30% 40% Elders No. of people Comment: Etisalat has the lowest prices among the competitors. This means that it took the highest percentage in attracting all segments in the market for having lowest costs and best prices.
  • 51. 50 5.9 In your opinion, which promotions and offers of the following companies attract you more? (Figure 22) (Figure 23) (Figure 24) etisalat vodafon e mobinil etisalat and vodafon e etisalat and mobinil vodafon e and mobinil none of them all of them No. of people 35% 37% 20% 0% 7% 0% 0% 0% 35% 37% 20% 0% 7% 0% 0% 0% 0% 10% 20% 30% 40% Teenagers No. of people etisalat vodafon e mobinil etisalat and vodafon e etisalat and mobinil vodafon e and mobinil none of them all of them No. of people 57% 12% 10% 15% 0% 0% 0% 5% 57% 12% 10% 15% 0% 0% 0% 5% 0% 10% 20% 30% 40% 50% 60% Youth No. of people etisalat vodafon e mobinil etisalat and vodafon e etisalat and mobinil vodafon e and mobinil none of them all of them No. of people 40% 17% 15% 7% 7% 0% 7% 5% 40% 17% 15% 7% 7% 0% 7% 5% 0% 10% 20% 30% 40% 50% Elders No. of people Comment: 37% of teenagers are attracted to the promotions/offers that Vodafone provides, while Etisalat has the most attracting promotions/offers between both youth and elders as they said that Etisalat has been recently providing so many offers about phone calls, BB service and providing gifts for their customers.
  • 52. 51 5.10 In your opinion, which customer service of the following companies attracts you more? (Figure 25) (Figure 26) (Figure 27) etisalat vodafo ne mobinil etisalat and vodaf… etisalat and mobinil vodafo ne and mobinil none of them all of them No. of people 25% 27% 15% 12% 0% 0% 15% 5% 25% 27% 15% 12% 0% 0% 15% 5% 0% 10% 20% 30% Teenagers No. of people etisalat vodafo ne mobinil etisalat and vodaf… etisalat and mobinil vodafo ne and mobinil none of them all of them No. of people 27% 35% 5% 7% 0% 0% 20% 5% 27% 35% 5% 7% 0% 0% 20% 5% 0% 10% 20% 30% 40% Youth No. of people etisalat vodafo ne mobinil etisalat and vodaf… etisalat and mobinil vodafo ne and mobinil none of them all of them No. of people 5% 45% 15% 12% 0% 0% 17% 5% 5% 45% 15% 12% 0% 0% 17% 5% 0% 10% 20% 30% 40% 50% Elders No. of people Comment: here, as we can see that all of the teenagers, youth and elders prefer the customer service of Vodafone as they have the best employees and know exactly what the customer wants and how to speak and communicate with their customers.
  • 53. 52 5.11 Does media advertising play an important role in your life? (Figure 28) (Figure 29) (Figure 30) strongly agree agee neutral disagree strongly disagree No. of people 37% 47% 12% 2% 0% 37% 47% 12% 2% 0% 0% 20% 40% 60% Teenagers No. of people strongly agree agee neutral disagree strongly disagree No. of people 47% 35% 15% 2% 0% 47% 35% 15% 2% 0% 0% 20% 40% 60% Youth No. of people strongly agree agee neutral disagree strongly disagree No. of people 47% 42% 7% 0% 2% 47% 42% 7% 0% 2% 0% 20% 40% 60% Elders No. of people Comment: From the above tables, we can infer that, 47 percent of teenagers “agreed” and other respondents of youth and elders “strongly agreed”. This means that advertising is sometimes used to trigger the demand among consumers or to build the image of a brand and to make consumers aware of a certain products and to inform them that this product or service has some special attributes.
  • 54. 53 5.12 Do entertaining advertisements influence your opinion about product? (Figure 31) (Figure 32) (Figure 33) strongly agree agee neutral disagree strongly disagree No. of people 25% 37% 32% 2% 2% 25% 37% 32% 2% 2% 0% 10% 20% 30% 40% Teenagers No. of people strongly agree agee neutral disagree strongly disagree No. of people 30% 40% 22% 5% 2% 30% 40% 22% 5% 2% 0% 20% 40% 60% Youth No. of people strongly agree agee neutral disagree strongly disagree No. of people 22% 42% 30% 0% 5% 22% 42% 30% 0% 5% 0% 20% 40% 60% Elders No. of people Comment: In this table, it is very obvious that, all of the three segments “agreed” that entertaining ads influence them. This means that whenever a company provides a funny ad that contains of funny phrases, music and bright colors, it grab customers’ attention.
  • 55. 54 5.13 Does information provided in advertisement affect your opinion about the product? (Figure 34) (Figure 35) (Figure 36) strongly agree agee neutral disagree strongly disagree No. of people 17% 40% 35% 5% 2% 17% 40% 35% 5% 2% 0% 20% 40% 60% Teenagers No. of people strongly agree agee neutral disagree strongly disagree No. of people 35% 40% 22% 2% 0% 35% 40% 22% 2% 0% 0% 20% 40% 60% Youth No. of people strongly agree agee neutral disagree strongly disagree No. of people 25% 47% 22% 2% 2% 25% 47% 22% 2% 2% 0% 20% 40% 60% Elders No. of people Comment: Here, all of the three respondents “agreed” about the statement. As the marketers are trying to provide reasonable information about their product/service when there is an ad to build awareness and to get new customers.
  • 56. 55 5.14 Does the presence of any celebrity in the ad affect your opinion about the product? (Figure 37) (Figure 38) (Figure 39) strongly agree agee neutral disagree strongly disagree No. of people 35% 15% 30% 20% 0% 35% 15% 30% 20% 0% 0% 10% 20% 30% 40% Teenagers No. of people strongly agree agee neutral disagree strongly disagree No. of people 25% 20% 30% 20% 5% 25% 20% 30% 20% 5% 0% 10% 20% 30% 40% Youth No. of people strongly agree agee neutral disagree strongly disagree No. of people 20% 30% 37% 5% 7% 20% 30% 37% 5% 7% 0% 10% 20% 30% 40% Elders No. of people Comment: Here, 35 percent of teenagers “strongly agreed” while youth and elders respondents felt “neutral”. It’s obvious that teenagers are attracted to the ads that contains of their favorite celebrities. However, most of youth and elders are attracted more to other factors as we mentioned before.
  • 57. 56 5.15 Do promotions and offers in ads affect your opinion about the product? (Figure 40) (Figure 41) (Figure 42) strongly agree agee neutral disagree strongly disagree No. of people 87% 7% 5% 0% 0% 87% 7% 5% 0% 0% 0% 50% 100% Teenagers No. of people strongly agree agee neutral disagree strongly disagree No. of people 100% 0% 0% 0% 0% 100% 0% 0% 0% 0% 0% 50% 100% 150% Youth No. of people strongly agree agee neutral disagree strongly disagree No. of people 100% 0% 0% 0% 0% 100% 0% 0% 0% 0% 0% 50% 100% 150% Elders No. of people Comment: As shown in the above tables, the highest percentages in the table represents by all of the three segments. This investigates the fact that promotions/offers have a great impact on each customer.
  • 58. 57 5.16 Do you think ads help in increasing sales of any product or service? (Figure 43) (Figure 44) (Figure 45) strongly agree agee neutral disagree strongly disagree No. of people 47% 25% 20% 5% 2% 47% 25% 20% 5% 2% 0% 20% 40% 60% Teenagers No. of people strongly agree agee neutral disagree strongly disagree No. of people 65% 27% 5% 2% 0% 65% 27% 5% 2% 0% 0% 20% 40% 60% 80% Youth No. of people strongly agree agee neutral disagree strongly disagree No. of people 57% 27% 12% 0% 2% 57% 27% 12% 0% 2% 0% 20% 40% 60% Elders No. of people Comment: As shown at the above tables, a very huge number of teenagers, youth and elders “strongly agreed” to the point that ads help in increasing sales, and this means that advertising is used to deliver information to the customers of specific products or services in favor of increasing the sales
  • 59. 58 5.17 Do ads have an influence on the 2 human’s senses? (hearing and vision) (Figure 46) (Figure 47) (Figure 48) strongly agree agee neutral disagree strongly disagree No. of people 37% 22% 15% 17% 7% 37% 22% 15% 17% 7% 0% 10% 20% 30% 40% Teenagers No. of people strongly agree agee neutral disagree strongly disagree No. of people 35% 25% 30% 5% 5% 35% 25% 30% 5% 5% 0% 10% 20% 30% 40% Youth No. of people strongly agree agee neutral disagree strongly disagree No. of people 52% 35% 12% 0% 0% 52% 35% 12% 0% 0% 0% 20% 40% 60% Elders No. of people Comment: It is very obvious from the above tables that the percentage of the three respondents “strongly agreed” with the fact that there is a relationship between ads and human’s senses and it can also have an impact on their perception.
  • 60. 59 5.18 Is it important for advertisers to study customers’ needs and wants and what attracts them before providing a new product or service? (Figure 49) (Figure 50) (Figure 51) strongly agree agee neutral disagree strongly disagree No. of people 65% 30% 2% 2% 0% 65% 30% 2% 2% 0% 0% 20% 40% 60% 80% Teenagers No. of people strongly agree agee neutral disagree strongly disagree No. of people 77% 15% 2% 5% 0% 77% 15% 2% 5% 0% 0% 50% 100% Youth No. of people strongly agree agee neutral disagree strongly disagree No. of people 82% 12% 5% 0% 0% 82% 12% 5% 0% 0% 0% 50% 100% Elders No. of people Comment: From the above tables, it is noticeable that “strongly agree” represented by teenagers, youth and elders took the highest percentage. This approved the fact that studying the market and all segments is very important before entering a new market with a product or service because it might lose if the customer figured out that he/she won’t need it.
  • 61. 60 5.19 Are there any differences among customers about how they receive the message? (Figure 52) (Figure 53) (Figure 54) strongly agree agee neutral disagree strongly disagree No. of people 42% 20% 30% 7% 0% 42% 20% 30% 7% 0% 0% 20% 40% 60% Teenagers No. of people strongly agree agee neutral disagree strongly disagree No. of people 50% 32% 17% 0% 0% 50% 32% 17% 0% 0% 0% 20% 40% 60% Youth No. of people strongly agree agee neutral disagree strongly disagree No. of people 62% 32% 5% 0% 0% 62% 32% 5% 0% 0% 0% 20% 40% 60% 80% Elders No. of people Comment: It is very noticeable from the above table, that the highest number of teenagers, youth and elders also “strongly agreed”. And this highlights the fact that advertisers must study the psychological of customers and their perception to target customers exactly the same way to get the message across as the manufacturer want. Also, the situation can differ each customer from another according to their needs, wants, feeling, and experience and how they think.
  • 62. 61 5.20 Do slogans and logos have an impact on customers’ opinion? (Figure 55) (Figure 56) (Figure 57) strongly agree agee neutral disagree strongly disagree No. of people 35% 37% 20% 5% 2% 35% 37% 20% 5% 2% 0% 10% 20% 30% 40% Teenagers No. of people strongly agree agee neutral disagree strongly disagree No. of people 30% 37% 25% 5% 2% 30% 37% 25% 5% 2% 0% 10% 20% 30% 40% Youth No. of people strongly agree agee neutral disagree strongly disagree No. of people 57% 22% 12% 2% 5% 57% 22% 12% 2% 5% 0% 20% 40% 60% Elders No. of people Comment: The results above show that, a highest percentage of teenagers and youth “agreed”. However, a highest percentage of people who “strongly agreed” were by elders. This means that using slogans and logos with a funny phrases and noticeable colors can have a strong impact on each customer and can also influence their perception toward the product and service.
  • 64. 63 6.1 Recommendation: Today’s successful telecommunication companies distinguish themselves from their competition by focusing on customer perception, incremental spending and extraordinary service. Recommendation of the study can be applied for the marketers of the three telecommunication companies to use different strategies to enhance their The analyses of the study indicate the following:- First, Mobinil had the least users among the three segments, so this company should develop itself more and compete with the other companies to rise up like others. Second, newspapers and magazines were the lowest, so the companies have two choices, first, do not advertise and write information about their companies in both newspapers and magazines as they are very old and lots of people moved to new ways such as internet and other types of advertising, but TV still have the same level of its importance, or make their advertisements in the magazines and newspapers more noticeable for the customer and more interesting to encourage the customers to use them as a source of information like other sources. Third, the advertisements provided by the three telecommunication companies are not that attractive to anyone, as they are all competing with each other and are trying to have more customers, but they also have to enhance their ads and the way they deliver their message. Fourth, prices had the least votes; companies should compete in their prices for better competitive advantages. Fifth, Service quality, prices and promotions are fundamental for telecommunication service providers for establishing and keeping loyal and productive customers, so they have to enhance them and solve the problems they face with customers to serve their customers and non-customers to make higher profits especially for Mobinil because it’s still using their old theories. Eighth, for people who disagreed that media advertising and information provided in ads are important and won’t influence them; marketers have to notice them about the importance of ads because having no ads means having less information about products and services needed. Also for those who think that ads aren’t helping in increasing sales, the duty of marketers that they have to show customers that without having ads, people will not be aware that new products and services have entered the market and in that case, there won’t be any purchasing activities. Ninth, customers must know that there is a huge differences between each one of them according to how they
  • 65. 64 think, feel and see things around them because there is no way to have the same person with the same acts and personality twice and this is very important to be studied in marketing. Finally, slogans and logos are other new ways in attracting customers by creating some new shapes of the logo of the company and creative phrases to stick in each customer’s mind. Marketers must also enhance TV ads and make more ads through TV because as shown in the analyses that TV is the most favorable source of information so they have to take it in consideration and to increase the usage of the product and service. 6.2 Conclusion: This study reflects that the Advertising have a great effect on the customer’s perception especially the ads of telecommunication companies. We have noted that types of advertising are useful, but TV is the most attractive type of advertising and have a great impact on customers in our society. In addition, it’s very important to study the psychology of each person to understand their needs and wants before entering the market with a new product and service that might not be needed at all and this will cause lose for the companies. Furthermore, the Egyptian telecommunication industry market has three companies, Etisalat, Vodafone and Mobinil. As a companies that have the same products and services which build a strong competitive advantage between them, the three companies use many factors that have a strong impact on each customer as well as on their perception to let the customer enjoy the competition. These factors are prices, service qualities, promotions and offers with having very creative ads to get into customers mind and to build awareness. Moreover, according to our information that we got from the questionnaire, we proved that there is a significant relationship between TV ads and customer perception. Also, all the objectives set for the study were achieved. Finally, we have recommended some solution for the three companies and for the marketers as well to enhance their performance, to win more customers, to make higher profits and to increase the usage of product and service.
  • 67. 66 Questionnaire As competition is rising between the companies, it is requisite for them to understand the perception of the customers about the important factors that are directing a vital role to select the best telecommunication service providers such as the price, promotion, service quality and so on. As the customers get affected by the previous factors, the use of advertisements also plays an important role in attracting the perception of customers. Some marketers deliver their target to customers by TV ads as Vodafone, Etisalat and Mobinil always do, they try to get the customer's attention by providing some funny and entertainment ads that make them shifting from company to another, and this is the main tactic that each corporation is trying to achieve or to get into the customer mind. Q1. Which telecommunication company do you use? o Etisalat o Etisalat and Vodafone o Vodafone o Etisalat and Mobinil o Mobinil o Vodafone and Mobinil o All of them Please explain why…………………………………………………………………………… Q2. What is your favorable source of information about the new product/service? o Television o Customer service o Newspapers o Outdoors o Magazines o Internet o Word of mouth Please explain why…………………………………………………………………………… Q3. What appeals attract you the most in advertising? o Colors in an advertisement o Images o Music o All of them Please explain why…………………………………………………………………………… Q4. Which advertisement of the following companies attract you more? o Etisalat o Etisalat and Vodafone o Vodafone o Etisalat and Mobinil o Mobinil o Vodafone and Mobinil o All of them o None of them Please explain why……………………………………………………………………….