Factors Influencing Brand Switching in Telecommunication Industry of United Kingdom

Title:
Factors Influencing Brand Switching in
Telecommunication Industry of United
Kingdom
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Acknowledgements
I would like to thank my supervisor Mr. Gregory Hemlet who has given me opportunity to work
under his guidance on this difficult project. I would also like to thanks my author Mr. Dr.
Manathan for his guidance. Both of them have provided me their support and vital guidance
during the whole work, which enabled me to complete this challenging project.
I would also like to dedicate this project to my Parents who have guided me in every field of
life. Their support was indeed very important for my studies.
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Abstract
The research has been conducted in order to examine the factors influencing brand switching in
telecommunication industry of United Kingdom. Triangulation methodology has been adopted
for this purpose. Qualitative and quantitative methods have developed a strong base of research.
Literature review has discussed all important factors that can influence brand switching in
telecommunication sector. Primary data for research has been collected through a questionnaire
survey from a sample of 70 mobile subscribers. The results of research have been presented in
systematic manner. The findings have been discussed descriptively. The results of research
suggest that price is the most influential factor on brand switching in telecommunication sector.
Other factors that have been found influential on brand switching were quality service, brand
image, coverage area of service and trust on service provider. It has been found that switching
cost minimizes brand switching activity. Brands with higher switching cost have low rates of
customer switching and vice versa. Results of research are limited to the telecommunication
sector of United Kingdom only. Future researchers can expand the scope of the research.
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Contents
Acknowledgements....................................................................................................................................2
Contents.....................................................................................................................................................4
1.0 Introduction.........................................................................................................................................6
1.1 Background..........................................................................................................................................6
1.2 Rationale of Study................................................................................................................................9
1.3 Aims and Objectives of Research.........................................................................................................9
1.4 Research Questions............................................................................................................................10
1.5 Scope and Significance of Research...................................................................................................10
1.6 Research Structure ............................................................................................................................11
2.0 Introduction.......................................................................................................................................12
2.1 Defining Brand Switching...................................................................................................................13
2.2 Factors Related to Brand Switching....................................................................................................13
2.2.4 Trust ...........................................................................................................................................17
2.2.5 Other Factors..............................................................................................................................18
3.0 Introduction.......................................................................................................................................23
3.1 Defining Research..............................................................................................................................23
3.2 Research Philosophy..........................................................................................................................23
3.3 Research Approach............................................................................................................................24
3.4 Research Methods.............................................................................................................................25
3.5 Data Collection Techniques................................................................................................................25
3.6 Population and Sample......................................................................................................................28
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3.7 Time Scale of research.......................................................................................................................29
3.8 Validity and Reliability of Research....................................................................................................29
3.9 Research Ethics..................................................................................................................................30
3.10 Method of Data Analysis..................................................................................................................30
3.11 Summary of Chapter........................................................................................................................30
4.1 Introduction.......................................................................................................................................32
4.2 General Information...........................................................................................................................32
4.2.3 Type of Telephonic Service..........................................................................................................34
4.2.4 Mobile Service Provider .............................................................................................................35
4.2.5 Switching of mobile service provider..........................................................................................36
4.3 Findings of questionnaire...................................................................................................................37
4.4 Conclusion..........................................................................................................................................56
5.1 Introduction.......................................................................................................................................57
5.2 Analysis of Findings .........................................................................................................................57
5.3 Conclusion..........................................................................................................................................61
6.1 Introduction.......................................................................................................................................62
6.2 Conclusion..........................................................................................................................................62
6.3 Recommendations.............................................................................................................................64
6.4 Future Research.................................................................................................................................64
References...............................................................................................................................................65
Blaikie, N. (2000), Designing Social Research, 1st ed, Polity Press, Cambridge. .....................................65
Catherine Marshall , Gretchen B. Rossman . 1999, Designing Qualitative Research. 3rd Ed. Sage
Publication Inc..........................................................................................................................................65
Hatch, M. J. and Cunliffe, A. L. (2006), Organization Theory, 2nd ed, Oxford University Press, Oxford...66
Johnson Michael D and Claes Fornell. 1991. A framework for comparing customer satisfaction across
individuals and product categories, Journal of Economic Psychology. 12-2, 267-286..............................67
Bibliography.....................................................................................................................................69
Appendix..................................................................................................................................................70
Part A:......................................................................................................................................................71
Part B:......................................................................................................................................................74
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Chapter One
Introduction
1.0 Introduction
Customers have very important place for the companies. Market conditions have become very
competitive and companies are trying to capture share of each other. Due to intense competition
in telecommunication industry customers of this industry frequently switch over from one brand
to another. This research is going to investigate brand switching phenomenon in perspective of
telecommunication industry. In this particular chapter background of study has been explained.
1.1 Background
1.1.1 Defining Brand Switching
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Customers are very important players of the market. Success of organizations depends on the
satisfaction level of customers. Originations look forward for achieving long term success in the
market. Long-term success can be achieved if companies go side by side with all of their
stakeholders. In all stakeholders, customers have most important place (Ahmed et al., 2010).
Customers have different perceptions, attitudes, and behaviors towards different brands.
Customers often switch over from one brand to the other depending upon various factors.
Brand switching occurs when customers switch their loyalties from one product to the other
one. Customers’ shift from one product to another product of similar nature is called brand
switching behavior of customers (Garland, 2002).
1.1.2 Types of Brand switching
Brand switching can be of two types i.e. temporary and permanent. If cigarette “A” is not
available at a shop customer can shift to cigarette “B”, this is temporary brand switching. It can
be long lasting if customers shift to particular brand permanently. Permanent brand switching is
harder to change. Brand switching is basically a process by which customers choose to switch
from a product or brand of routine use to another product or brand of similar nature.
Brand switching can be aggressive or defensive. Aggressive brand switching is that type of
switching in which customers are induced by advertisement of promotions to buy a brand
different from the brand purchased previously. On the other hand defensive brand switching is a
type of switching in which advertisement of promotions of company induce customers to buy
again previously purchased brand. Defensive brand switching is a strategy of companies in
order to induce loyalty in customers (Ludi, 2004).
1.1.3 Brief View of Factors Inducing Brand Switching
Advertisement plays very important role in brand switching. It basically persuades customers to
switch brands. Companies use different tactics in advertisement in order to attract customers of
competitors. Advertisement induces customers to switch their brands and improve sales of
companies. Other firms in the market also advertise and attract customers. In this way total
effect of advertisement can be offset. Folland (2008) argues that advertisement is motivational
factor for brand switching. It suggests that companies must advertise in order to persuade
competitor’s customers to switch towards their brands.
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A number of factors induce switching of brands in customers. If companies do not meet needs
and wants of customers, customers can switch to competitors’ brands. Market has become very
competitive and all the companies strive for taking market share. In order to build market share
companies attract customers by providing different incentives like low price, high quality,
discounts or promotions. In today’s competitive market success of companies depends on the
repeat purchase intentions of customers (Ahmed et al., 2010). If companies fail to manage
switching behavior of customers, their success can be at jeopardy. Competitive prices also play
their part in inducing brand switching. A number of costs are also associated with the switching
behavior of customers. Companies that have lower switching cost exhibit higher rate of brand
switching. Switching cost is basically the cost associated with switching from one product to
another one.
1.1.4 Brand Switching in Telecommunication Industry
Brand switching behavior of customers differs in different industries. Some industries are
characterized by high brand switching rates while others show low rates of brand switching.
Telecommunication industry is one of the industries which possess high rates of brand
switching (Edvardsson, Gustafsson and Roos, 2004). This is mainly due to intense competition
in telecommunication industry. A number of companies are operating in telecommunication
industry across the world. Customers of mobile service provider companies often switch
towards brands which provide extra benefits to them.
Telecommunication industry is characterized by high growth. It has been forecasted that the
number of mobile subscribers will reach at 5 billons in the next five years which was 4 billion
by the end of 2011. Telecommunication industry has 3 % contribution in the total GDP of world
(Businesswire, 2011). It has been expected that telecommunication industry of United
Kingdom will grow in the next five years. In 2015 the market value of telecommunication
sectors will reach at £40.7 billion. It has been forecasted that innovations and technological
advancements will penetrate telecommunication sector in the same period (MBD, 2011).
Due to intense competition in telecommunication industry customers frequently switch from
one service provider to another. It has become very important for service providers to
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investigate the switching behavior of customers. The study is focused on telecommunication
industry of United Kingdom. Four major players of telecommunication industry of United
Kingdom are Three, Telefonica, Everything Everywhere and Vodafone. Major market share of
UK telecommunication industry has been captured by these four players. Telefonica has been
operating in more than 25 counties. In United Kingdom O2 is very popular brand of Telefonica.
Three has started its operations in 2003 in United Kingdom and in very small time period it has
been succeeded in bringing remarkable innovations in telecommunication industry of United
Kingdom. Orange and T-Mobile are popular brands of Everything Everywhere. Vodafone has
been operating worldwide with a huge customer base.
1.2 Rationale of Study
Competition in telecommunication industry has been building to a great extent. In United
Kingdom a number of telecommunication companies are operating currently and more
companies are invading the industry. In competitive market these companies always seek to
take the share of others in terms of customers. Heavy advertisements and price war among these
companies have created trouble to the customer loyalty. Customers keep on switching brands in
telecommunication sector. Other than price and advertisement numbers of factors are
responsible for brand switching behavior of customers. Success of companies is identified by
the repeat purchase intention of customers so companies must understand the factors that make
their customers to switch brands. Companies need to understand the ways that can prevent
brand switching and enhance brand loyalty. By analyzing the factors influencing brand
switching companies can take steps for reducing brand switching. The current study is going to
investigate the factors that influence brand switching in telecommunication industry.
Furthermore, research will also investigate the factors that can prevent brand switching.
1.3 Aims and Objectives of Research
Research has been conducted by considering a number of objectives. The aim of current study is
as follows:
“To examine the factors influencing brand switching in telecommunication industry”
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The aim of the research has been expanded through following objectives:
• To investigate brand switching behavior from literature review
• To examine the factors that influence brand switching in telecommunication industry
• To examine the factors that prevent brand switching in telecommunication industry
• To study the customer preferences of mobile service providers in telecommunication
industry of United Kingdom.
• To propose recommendations to the mobile service providers for increasing customer
loyalty
1.4 Research Questions
Developing research questions is the most critical phase of any research. The whole research
project is actually based on research questions (Norman, 2009). Researcher needs to develop
precise and clear research questions for achieving successful outcome. Questions developed for
this particular research are as follows:
• What is meant by brand switching?
• What are the factors that influence customers to switch brands?
• What are the factors that influence customers to switch mobile service providers in
United Kingdom?
• What is effect of switching cost on brand switching in telecommunication industry in
United Kingdom?
• What is effect of corporate branding on brand switching?
• How can mobile service providers stop their customers to switch over the other brands?
1.5 Scope and Significance of Research
Research has been conducted by the student of MBA in order to complete his academic course
in effective way. By the completion of this research, he will understand research methodology
and the topic area. Telecommunication industry has becoming very competitive day by day and
customers are being exposed to a number of choices. This research evaluates the factors that
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influence customers to switch over other mobile service providers. Factors specific to brand
switching in telecommunication market are evaluated. This research is significant for the
researcher as well as for the mobile service providers. Companies can apply recommendations
of this research in order to enhance customer loyalty and to stop customers to switch over other
brands.
1.6 Research Structure
This particular research is composed of six chapters. Each chapter represents its specific
purpose. All the chapters are interconnected with each other so that a flow in research can be
maintained.
Chapter One
The first chapter of research is “Introduction”. This chapter represents background of
telecommunication industry of United Kingdom and also overviews the importance of studying
brand switching. Aims and objectives of research are elaborated in introduction.
Chapter Two
The second chapter of research is “Literature Review”. This chapter represents the core areas of
research topic in detail. The work of previous researchers related to brand switching in
telecommunication industry has been presented in this chapter.
Chapter Three
Third chapter of research is “Research Methodology”. This chapter represents the procedure
that how researcher is going to achieve aims and objectives of this research. Research design,
approach, and methods of research are illustrated here.
Chapter Four
The fourth chapter of research represents the data collected through data collection tools. Data
has been represented in the form of percentages, charts and graphs. Findings of the whole
questionnaire are represented in systematic way.
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Chapter Five
Fifth chapter of research analyses all the findings of the research presented in the previous
chapter. Detailed discussion on the findings of research has been conducted in this chapter.
Researcher has made his own judgment on the findings of the research and also related them to
the theory discussed in the literature review.
Chapter Six
This chapter represents conclusion of the study. All the findings and results are given shape of
conclusion. Researcher has reviewed all objectives and aims of the research in this chapter.
This chapter represents that to what extent researcher has succeeded in achieving aims and
objectives of this particular research.
Chapter Two
Literature Review
2.0 Introduction
Customer is the most important player of market. All the efforts of companies are directed
towards customers. Customer can either remain loyal with a particular brand or switch to
another one. This particular study is going to evaluate the factors influencing customers to
switch brands. This chapter presents work of previous researchers regarding brand switching.
Factors influencing brand switching have been critically analyzed in the light of previous
researches on brand switching.
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2.1 Defining Brand Switching
Brand switching has been defined by many researchers in different contexts. Termination of
customer relationship with particular service provider and continuation of relationship with a
new service provider is called brand switching (Mouri, 2005). Customers can decide about
ceasing relationship with service providers because of many reasons. Stewart (1994) has
defined customer switching behavior as defection or exit of customers from company.
Customers can switch brands either on permanent basis or on temporary basis. Boote (1998)
has defined customer switching behavior as decision of customers to discontinue purchase
dealings permanently or temporary. Rajkumar (2011) defines brand switching when customers
switch their loyalties from one particular brand to another. These definitions suggest that brand
switching occurs when customers stop purchasing a particular product and start purchasing
another either on temporary basis or on permanent basis.
2.2 Factors Related to Brand Switching
2.2.1 Switching Cost
Switching cost is the cost which is to be borne by customers when they switch from one brand
to another (Grzybowski, 2004). Many researchers have researched effect of switching costs on
brand switching. Literature on switching cost is very limited still there are many researchers
who have explored influence of switching cost on brand switching. Burnham, Frels and
Mahajan (2003) have defined switching cost as the cost which incurs when customers switch
from one product or service to the other. Switching cost does not incur immediately at the time
of switching rather it is a procedural cost. They also notified that switching cost is not restricted
as economic costs rather there are number of other costs related to it. Customers may consider
search cost, acquiring cost, learning cost, and perceived risk while deciding about switching
cost.
Switching cost has been categorized into three groups by Burnham, Frels and Mahajan (2003).
These are: transactional cost, contractual cost and learning cost. Transactional cost is the cost
which is required by customers in order to start new relationship with a new service provider
and it also includes the cost required to terminate relationship with existing service provider.
Learning cost refers to the cost which is required by the customers in order to gain equivalent
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familiarity and ease of using the new product or service. Learning cost is non transferable cost
and each time customer switches over a particular product or service, learning cost incurs.
Contractual cost is the cost which is induced by the firms directly for panelizing the customers
for switching brands. These costs may include rewards, discounts, repeat purchase and other
circular programs. These costs incur when customers promise for being loyal or when they
show signs of switching over other brands.
Fornell (1992) suggests that switching cost is a source of preventing brand switching behavior
of customer. Switching cost can make it costly for customers to switch brands. It has been
researched by many researchers that higher switching cost stops brand switching behavior.
Customers leverage benefits and cost before taking decision about brand switching. If perceived
benefits of new product or service are lower than switching cost, customer will likely to remain
with the existing brand (Lees et al., 2007). If service providers aim at convincing competitors’
customers to switch, they have to provide low prices or higher benefits to them in order to
compensate high switching cost.
Literature discussed about switching cost suggests that switching cist can induce brand
switching as well as it can also stop brand switching. Companies need to consider this factor
while designing strategies about dealing with customer switching. Customers can easily switch
from one service provider to the other if switching cost is low and vice versa.
2.2.2 Price
In all markets including telecommunication market price is the main factor that encourages
brand switching. Dong and Won, (2007) has presented three variables related to price which can
affect switching behavior of customers. These three variables are: 1) Pricing structure, 2)
Pricing scheme, 3) Additional fee. In telecommunication industry call charges determine the
pricing structure of companies. Price scheme is basically the availability of a variety of price
lists. Additional fee is basically the fee of additional services such as activation charges,
termination charges and charges of value added services. Change in demand in response to
change in prices is called sensitivity of demand (Fuha, 2005). Price sensitivity has divided
telecommunication segment into three segments. These are fixed line segment, mobile segment
and combined segment. Fuha (2005) has determined relationship between changes in price and
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demand in telecommunication industry. His findings suggested that reduction in price of mobile
services attract customers. In other words price changes influence brand switching in
telecommunication industry.
Lee and Murphy (2005) have investigated a number of factors that influence customers to
switch mobile service providers. Their findings suggested that price is the most important
factor that persuades customers to change their commitments to other mobile service providers.
Sathish (2011) also suggest that call rates are the most influencing factor for brand switching in
telecommunication industry.
Rajkumar (2011) suggest that price is not always brand switching influencer. He explained that
customers who are quality conscious prefer to pay high prices for high quality. It influences
those customers who have limited income. Companies use this feature of price and provide
price comparisons to customers in order to persuade them to try new products.
Literature review discussed about influence of price on brand switching suggests that price is
major influencer for brand switching. It is not necessary that price always affects brand
switching. Customers with low income are more influenced by changes in price to switch
service providers whereas quality conscious customers are less influenced by changes in price to
switch brands.
2.2.3 Service Quality
Service is intangible in nature and it is practiced by the customers simultaneously at the time of
production and consumption. Contact of customers and service providers delivers service to the
ultimate customers (Gronroos, 1990). Five characteristics have been identified by (Gronroos)
1990 which distinguish services from goods. These characteristics are as follows:
• Services are intangible
• Services cannot be separated during production, delivery and consumption
• Services are heterogeneous
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• Services are perishable and cannot be stored
• There is no transfer of ownership while delivering services
The interaction between customers and service providers provide opportunity to the customers
to assess the service quality. Bitner & Hubbert (1994) define service quality as the impression
of customers about the inferiority or superiority of the service providers and their provided
services. Service quality measurement model has been presented by Parasuraman et al. (1988)
in which they have identified five dimensions of service quality. These five dimensions are:
Tangibles, reliability, assurance, empathy and responsiveness. These five dimensions can be
categorized in two groups. Tangibles refer to the physical facility, materials of personal
communication and equipment. The other four dimensions refer to the human interaction or
involvement during service delivery. These five dimensions are elaborated as follows:
Tangibility: physical outlook, facilities, equipments and physical appearance of personnel
providing services
Reliability: It refers to the ability of service providers to provide promised services accurately
and consistently
Responsiveness: It refers to the willingness of service providers to assist customers and promote
services
Assurance: It refers to the awareness and politeness of personnel providing services in order to
establish trust
Empathy: It refers to the individual attention of employees on customers
All these dimensions determine the quality of services provided by the companies. If companies
provide high quality services, image of companies can be enhanced and customer interaction
can also be increased. It can also lead to expansion in customer base because positive word of
mouth of satisfied customers attracts new customers. On the whole financial performance of
companies is improved if they provide high quality services (James, 1998).
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Two important factors that determine the direction of customer behavior are price and quality. It
has been found that there is swapping effect between these two factors. Customers can sacrifice
low prices for high quality. Jun and Bin (2005) determined that high quality services are source
of creating customer loyalty. Their findings also suggest that in telecommunication industry
service quality is identified by communication guarantee, value added services and innovations
in telecommunication technology. They also found that line clarity, customer services and
coverage area also effect service quality. All these factors influence customer switching
decision.
The above literature discussed about service quality has shown the dimensions that measure the
level of service quality. Previous researchers have shown that customer decision is influenced
by service quality. It can be deduced that if customers are provided with high service quality
they can be retained with the company or in other words switching rate of customers can be
reduced.
2.2.4 Trust
Trust has been very important topic studied in various disciplines. It has been defined by many
researchers in different perspectives. It is characteristic of human personality and is defined as
the assessment of others about the motives and behaviors (Chu, 2009). To develop trust among
individuals expectation of trustor and perceptions of trustee are involved. Trust among different
individuals is different depending upon the personality traits and decision making ability of
individuals (Chu, 2009).
Relationship is build whenever there is trust or distrust among individuals. Service providers
must convey a message to the customers that they can be trusted. They must depict that they can
sacrifice for the satisfaction of needs of customers (Liang and Wang, 2008).
In order to build long term relationship among individuals trust has been the most important
factor. Researchers have also suggested that trust is important factor in determining customer
loyalty (Chu, 2009). In order to build trust one party must assures the other one that it will come
true at the expectations of the other party. Serkan and Ozer (2005) suggest that building trust is
a process in which one party must be capable of fulfilling the expectations of other party
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regarding cost and benefits. It is an important factor in affecting commitment of customers to
the company.
Jun and Bin (2005) suggest that in order to build customer loyalty, trust among parties has been
the key element. Trust assists customers in making decision about purchase and it also gives
customers a sense of confidence on the service providers. Jun and Bin (2005) have studied
effect of trust on customer loyalty in perspective of telecommunication industry. They found
four elements of trust i.e. experience, communication, brand loyalty and relation contact of
partners. Trust among service providers and customers act like a relationship preserving force.
If customers have trust on service providers, short term alternatives cannot affect the customer
loyalty. It can be said that trust has positive relationship with customer loyalty. Ganesen (1994)
suggest that trust reduces perceived risk and it also reflects credibility of companies. He
suggests that trust on service providers reduces uncertainty in today’s competitive and uncertain
environment. In other words customers switching behavior is affected by the level of trust on
service providers.
Literature review discussed about trust suggests that customers are less likely to switch brands
on which they have trust. If service providers assure their customers about the fulfillment of
their expectations, brand switching can be minimized. On the other hand if service providers fail
to establish trust between customers and themselves, customers are more likely to switch over
competitors’ brands.
2.2.5 Other Factors
Above mentioned factors are critical to the customer switching behavior. Besides these factors
there are many other factors identified by other researchers that influence customer switching
behavior. Customer switching decision is not a static and fixed decision rather it is a process
which is described in terms of three stages i.e. trigger, process and outcome (Inger and Frimen,
2008). Process refers to the reasons for switching whereas trigger refers to the factors that
influence customers for brand switching. It suggests that these are the triggers (Factors) which
influence customers to switch over brands. Brand switching behavior of customers is also
affected by subscriber lock in. Subscriber lick in is a kind of behavior in which subscribers lock
their customers only to their network. If customers want to change their service providers they
have to change their mobile sets. This function can also be related to switching cost. Subscriber
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lock- in raises switching cost and makes customers to stay with the brand with which they are
attached (Dong and Won, 2007). Serkan et al., (2005) suggests that corporate image effects
decisions of customers regarding loyalty. Corporate image is basically the physical and
behavioral traits of a company such as business category, business name, and assortment of
products and services and idea of communicating quality of products and services (Nguyen and
Leblanc, 2001). All these factors are somewhere represented above but under corporate image
these are aggregated. It has been found by many researchers that corporate image is positively
associated with customer loyalty (Johnson et al., 2001)
Employees of companies create a bridge between companies and customers. If employees are
loyal with the company, they aim at delivering best services to the customers. In this way loyal
employees can become source of creating brand loyalty and preventing brand switching (Jun
and Bin, 2005).
If above factors are managed effectively brand switching can be avoided and long term relations
can be established with customers. Employees are the most important component of companies
and they have long lasting effects on performance of companies. Corporate image has also
found to be influential factor regarding brand switching. It has been researched that companies
that have strong corporate image have low customer switching rates. Corporate image is a broad
concept and all the brands of company fall under corporate brand. So if corporate image is
positive and appealing, customers tend to retain with the company even in case of alternatives
available in the market.
2.3 Brand Switching and Loyalty
Brand switching is the behavior of customers to change their usual products and switch over the
others. Loyalty is basically the behavior of customers to continue purchasing a particular
product or service.
Customer loyalty is defined as positive attitude of customers towards repurchasing and
continued commitment to a particular brand in future (Chu, 2009). Loyal customers are
continued source of revenues for the companies even in the time of financial crisis. Loyal
customers are less expected to change their loyalties to competitors’ brands even if there is
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decrease in price of competitor’s brands (Bowen and Shoemaker, 2003). Loyal customers are
very important assets for the companies so it is very important for them to retain loyal
customers and to stop them to switch over competitor’s brands. Profitability is driven by the
customer loyalty (Hayes, 2008). Loyal customers are also essential to be retained by the
companies because they are source of long term profits for the companies (Tseng, 2007). If
companies manage to stop their customers to switch over other brands, purchases of companies
increase and financial growth also improves (Hayes, 2008). So it can be said that financial
growth of companies depends on retention of existing customers. Loyal customers are source of
increasing business of companies by purchasing more, paying high prices and presenting
referrals to others (Ganesh et al, 2000). As the telecommunication industry is growing day by
day so new entrants always try to attract customers in order to enhance their customer base. In
such a situation only those customers will retain with the company who are loyal. Reverse of
customer loyalty is customer switching. Mobile service providers are focusing on increasing
customer loyalty by stopping customers to switch over other brands. Serkan and Ozer (2005)
point out that in telecommunication industry one the customers are acquired, it has been very
important for the companies to maintain long term relations with customers in order to get
competitive advantage. Companies need to create ways for attracting new customer as well as
for retaining existing customers. It is also important for companies to motivate customers to
recommend their products to others (Keiningham et al., 2008).
Above discussion suggests that companies need to create ways for stopping their customers not
to switch over the competitor’s brands. If companies fail to stop their customers for switching
over the competitors’ brands, long tern success of companies will be at jeopardy. Intense
competition in telecommunication industry has increased the importance of stopping customers
to switch over competitors’ brands.
2.4 Influence of Advertisement on Brand Switching
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Advertisement is focused at attracting new customers as well as retaining existing customers.
Advertisement plays very important role in persuading non loyal customers to be loyal with the
company. It also prevents loyal customers to switch over other brands. It has also been found
that advertisement persuades loyal customers to spend more on existing brands of company.
Advertisement plays important role to make customers of competitor’s brands to switch over
the advertised brands. On the other hand its defensive role is to maintain existing customers of
company. It can be said that advertisement plays double role for loyal and non loyal customers
of company. It influences attitudes, preferences, and decision making process and purchase
intensions of customers. Advertisement does not always focus on persuading competitors’
customers to switch over. Ehrenberg (2000) suggests that main role of advertisement is to
enhance satisfactory feelings in customers regarding the brand purchased by the customers. It
means advertisement plays its primary part in retaining customers rather than attracting new
one.
Simon and Arndt 1980) also suggest that same thing that advertisement focuses on retaining
existing customers. They also suggest that customers who are familiar with the brands are more
affected by the advertisement. Customers who are not familiar with the brand are less affected
by advertisement. Companies also design advertisements in order to call back their previous
customers by offering them attractive services.
Literature regarding role of advertisement on brand switching suggests that advertisement does
not play active role in brand switching. Its primary role is to retain existing customers of
company. Secondary role of advertisement is to persuade customers for brand switching.
2.5 Summary of Literature Review
Brand switching is a process in which customers tend to end relationship with a particular
company and start relationship with a new one. All industries have experience brand switching
but telecommunication industry is more exposed to it. There are many factors that influence
brand switching. On one end they persuade customers to switch over other company and on the
other hand they prevent brand switching. Price has been found most influential factor in brand
switching in telecom sector. Besides price there have been many factors that enhance brand
switching like quality service, coverage area, trust, advertisement, and brand image. All these
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factors have been critically analyzed in the literature review in the light of work of previous
researchers.
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Chapter Three
Research Methodology
3.0 Introduction
Methodology of research has been considered very important for the whole result because it can
actually impact the results of research. This chapter presents detailed methodology of research
including philosophy, approach, methods, and data collection tools. Researcher has justified the
choices in accordance with the aims and objectives of research.
3.1 Defining Research
An organized process of enquiring a phenomenon or curiosity is called research (Goddard and
Melville, 2004). Research is conducted to achieve a number of objectives. The primary
objective of each research is to enhance the boundary of knowledge which is done through
answering questions, enhancing an existing theory or designing a new theory. There are two
types of research on the basis of nature i.e. scientific research and social research. Social
research deals with the understanding of attitudes and behaviours of people in a society (Pan,
2011).
3.2 Research Philosophy
The background of research is created by research philosophies. It deals with suppositions,
beliefs and insights of researchers which are adopted for a particular research. These are
basically choices made by the researchers in order to achieve aims and objectives of research. A
number of choices are available to the researcher regarding research philosophies so it is very
important for researcher to justify the adopted research philosophy in accordance with the aims
and objectives of research (Blaikie (2000).
For this particular research, researcher has four options of research philosophies. The first
option for the researcher is realism which believes that reality is product of humanizing
different social factors. Realists suggest that what is happening in laboratory is not necessarily a
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reality. It researches a phenomenon on the basis of researcher’s point of view (Hatch and
Cunliffe, 2006).
Second option available for the researcher is positivism which deals with the development of
research hypothesis on the basis of existing theories of previous researchers. Positivists rely on
the validity of the previous researchers. Statistical tools of analysis are used in order to test the
hypothesis under positivism (Saunders, Lewis and Thornhill, 2007).
Third option available to the researcher is interpretivism or socialism which deals with the
evaluation of different social factors from researcher’s viewpoint. Socialists are basically
against positivists in their viewpoint.
Last option available to the researcher is phenomenology which deals with the experiences of
individuals. These experiences result from beliefs, perceptions and previous knowledge about a
particular thing (Husserl, 2001).
Research under consideration is conducted by a combination of interpretivism and positivism.
The reason behind choosing this philosophy is that interpretivism deals with the attitudes and
experiences which are critical for brand switching and positivism deals with the existing
theories which are studied to explore research topic. Other two research philosophies do not
align with the aims and objectives of research so they are avoided in this particular research.
Factors influencing brand switching are explored with the help of previous researches and also
on the basis of experiences and perceptions of customers.
3.3 Research Approach
To evaluate the factors influencing brand switching, researcher has two options of research
approach. These are deductive approach and inductive approach of research. Deductive research
approach investigates research problems through existing theories and literature whereas
inductive approach of research builds up new theories through experiments and observations
(Saunders et al., 2009). Deductive approach works from specific to general view whereas
inductive approach works from general to specific viewpoint.
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To investigate the factors influencing brand switching both approaches are used. Deductive
approach explores existing theories and models of brand switching whereas inductive approach
examines the factors which influence customers of United Kingdom to switch over other mobile
service providers. Use of both approaches in research makes easy for the researcher to produce
logical and correct reasoning (Saunders et al, 2007). Deductive approach is related to
interpretivism whereas inductive approach is related to positivism. Researcher has related both
approaches in research in order to produce correct results.
3.4 Research Methods
There are two types of research methods i.e. qualitative and quantitative research methods.
Attitudes, perceptions and behaviors of peoples of society are researched through qualitative
research methods (Marshall & Rossman, 1999). Qualitative researches make use of words
while explaining a particular phenomenon. On the other hand quantitative research methods
develop hypothesis on the basis of existing theories and test them statistically through different
tests. A large amount of numeric data has been used in quantitative researches.
This particular research has employed triangulation methodology i.e. combination of qualitative
and quantitative research methods (Adela, 2004). Qualitative methods are employed in order to
build literature review of research whereas quantitative methods are used to analyze the factors
influencing brand switching in telecommunication industry of United Kingdom. In qualitative
part of research secondary data in the form of words has been used whereas in quantitative part
numeric data in the form of percentages has been used. Data collected through both approaches
is linked together in order to make a flow in the research. In the analysis section of research
findings of primary research i.e. quantitative data has been related to the literature review which
is qualitative data. In this way coherence has been achieved in the findings of research.
3.5 Data Collection Techniques
3.5.1 Types of Data
In order to examine the factors influencing brand switching two types of data has been used i.e.
primary and secondary. Primary data is first hand data which does not exist in earlier records.
Primary data is original data which has not been altered or manipulated y any other researcher
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so its validity and reliability is high (Saunders et al, 2009). As it is collected by the researchers
for the first time, chances of biasness in this data are less. It requires high dedication, effort and
cost for collection. The other type of data i.e. secondary data has already been published. It is
basically comprises of contributions of previous researchers and authors. Some of statistical
operations have been performed on this data so chances of biasness are more in secondary data
(Saunders et al, 2009). Literature review of the researches is based on secondary data. In this
particular research secondary and primary both data are used for examining factors influencing
brand switching in telecommunication industry of United Kingdom.
3.5.2 Primary data collection techniques
Primary data can be collected through observations, interviews, surveys and focus groups. Here
is a detailed description and pros and cons of primary data collection tools:
3.5.2.1 Observations
In behavioral sciences observation tool is commonly used for primary data collection.
Researches observe individuals or group of individuals and record them. Direct questions are
not asked from respondents for primary data collection through observations but researchers can
directly observe in this process (Rajendar, 2008). Natural behavior of individuals is recorded
through this data collection technique because researcher do not pressurizes respondents in this
process. Observations are narrow tool of data collection. Researcher can become a part of group
from whom data is to be collected. In this way he can lose the objectivity of collecting data
(Rajendar, 2008).
3.5.2.2 Surveys
Surveys are used to ascertain characteristics of a large population in short time duration. A
single survey can collect data from a large population with limited sources and time. Researcher
interacts with the respondents to a small extent. Questionnaires are used for conducting surveys.
Respondents are asked to fill the questionnaire according to their knowledge and perceptions.
Due to limited interaction of researcher with respondents, problems in understanding questions
can arise. This can lead to ambiguous responses which create problems in analysis of data.
Surveys are flexible tool of primary data collection and require less time and money (Russ and
Preskill, 2001).
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3.5.2.3 Interviews
For collection data through interviews direct discussion and question answer session is held
between researcher and respondents. Interviews can be structured, semi structured or
unstructured. Structured interviews are those interviews in which an interview guide is prepared
for asking questions from respondents. In semi structured interviews researcher asks questions
via interview guide. He can add more questions during interview depending upon the situation.
In unstructured interviews, researcher does not prepare nay interview guide and asks
spontaneous questions from respondents. These interviews provide opportunity to the
researchers to have detailed discussion with the respondents. Responses produced through
interviews are of high quality. Interviews are costly and require greater time commitment. Due
to high interaction of respondents and interviewer results can become biased (Russ and Preskill,
2001).
3.5.2.4 Focus Groups
Focus group is composed of six to twelve people having analogous characteristics. Focus group
discussions are conducted from this group with the help of a trained mediator. Group of people
is asked a question, viewpoint or any other thing without any pressure. Respondents are asked
to give their opinion on the topic area of discussion. All the respondents say whatever they think
and perceive without any pressure so it can be said that focus group discussions are natural
discussions (Krueger and Casey, 2000). Focus group discussions produce high response rate and
quality responses. The results of focus group discussions can be biased up to the extent of
interaction of mediator and respondents. These are costly and require time for conduction (Russ
and Preskill, 2001).
3.5.3 Contrast of the data collection tools
All the tools of primary data collection differ from each other in terms of response rate, quality
of response, cost and time. Researchers select one or more than one tool for data collection by
comparing pros and cons of these tools. Observations are narrow tool of data collection and
cannot be used everywhere. Survey is less costly and time saving tool of data collection. They
produce low quality responses as compared to that of interviews and focus group discussions.
Response rate in interviews and focus group discussions is high as compared to that of surveys.
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Surveys are used to collect data where population is high and time for data collection is limited.
On the other hand focus group discussions and interviews are used in situations where quality
data is required. Biasness in results is high in interviews and focus group discussions as
compared to those of surveys.
3.5.4 Primary and Secondary data collection tools employed in research
To evaluate the factors influencing brand switching primary and secondary data has been used
in this particular research. Secondary data has been collected through books, research articles
and journals. Internet sources are also used to collect secondary data but with great care.
Researcher has selected primary data collection tool after comparing pros and cons of all tools.
Primary data of research has been collected through questionnaire survey. Interviews and focus
group discussions are not used because of limited time and budget of researcher. Observation
tool has not been used because it does not align with the aims and objectives of research.
3.5.5 Questionnaire Design
Questionnaire can be open ended or close ended. For this particular research close ended
questionnaire has been developed which aims at finding answers of research questions.
Researcher has developed questionnaire after considering aims, objectives and literature review
of research. It has two parts i.e. Part “A” and part “B”. Part “A” is related to respondents who
have experienced brand switching whereas part “B” is for those respondents who have never
switched their mobile service providers.
3.6 Population and Sample
Population of a research is composed of all the entities or individuals who are directly attached
with the objectives and aims of research. Group of people from whom data is to be collected is
called population. In this particular research population comprises of all mobile phone
subscribers of UK telecom market. Major players of telecom industry of United Kingdom are
Three, Vodafone, Telefonica, and Everything Everywhere. All these service providers have
huge customer base in United Kingdom so it is not feasible to collect primary data form whole
population. To resolve this issue and avail convenience in data collection procedure,
representative part of population has been selected which is called sample (Ken, 2009).
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A number of techniques are available to the researcher for selecting sample. Probability
sampling techniques grant equal chance to all members of population to be selected in the
sample. On the other hand non probability sampling does not allow all members equal chance to
be selected in the sample of research (Struwig and Stead, 2007).
In this particular research sample of 70 mobile phone subscribers has been selected through
convenience sampling techniques. Convenience sampling is a form of non probability sampling
technique in which researcher selects sample as per his or her convenience (Lunsford, 1995).
Probability sampling has not been selected because it is very complicated technique.
3.7 Time Scale of research
There are two time scales available for the researches. One is cross sectional and the other one
is longitudinal time scale. In longitudinal research data is collected only at more than one time
schedule whereas in cross sectional research data is collected only at one time. Longitudinal
time scale is common in scientific researches. In this particular research data is collected only at
one time form respondents so it is a cross sectional research. Longitudinal time scale is
irrelevant to aims and objectives of research so it is avoided in this research.
3.8 Validity and Reliability of Research
Validity of research is determined by the correctness of research instrument (Jacobsen, 2002).
Research has been constructed with an aligned methodology. Each step of research is directed
towards achievement of aims and objectives of research. Questionnaire is also developed after
considering research questions. Researcher has employed valid data of pervious researchers so it
can be said that research looks into the validity of work of previous researchers. Reliability of
research refers to the consistent and true results (Charles, C. M. 1995). This particular research
is a reliable work because researcher has used reliable data. Data has not been manipulated at
any stage of research. Triangulation methodology has been adopted which employs primary and
secondary data. The findings of research have been validated through secondary data. The
research work is also credible because researcher has provided references throughout the
research paper wherever other writers’ work is used.
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3.9 Research Ethics
Research ethics have been considered very carefully during the conduction of this particular
research. It has been carefully considered that nobody is harmed emotionally, physically or
personally during the whole process (Kimmel, 2007). Researcher has informed all participants
of research about aims and objectives of research before collecting data. In this way deception
has been avoided during data collection. Participants were encouraged to answer the
questionnaire on their own will. They were not pressurized to take part in the research. It was
free will of all participants to fill the questionnaire. In order to gain honest data from
respondents, they were ensured about the confidentiality of their provided data.
In research very important issue is about plagiarism. It is strictly prohibited by the university
not to copy any other’s work. Researcher has not cheated or copied the work of others
throughout this research process. In the literature review secondary data has been used which is
basically other researchers’ work. Researcher has provided references throughout the research
wherever work of other researchers is quoted. References in text and bibliography have been
provided because of two reasons. One reason is to support secondary data and the other reason
is to acknowledge the work of previous researchers.
3.10 Method of Data Analysis
Data collected through questionnaire has been analyzed descriptively. Detailed discussions on
the results of research have been performed. Questionnaire results are analyzed systematically.
In the first phase, data has been entered in MS Excel for conversion into percentages. Findings
of each questionnaire are transformed into tables and graphs. In the next phase of data analysis,
each table and graph has been discussed in detail. Findings are related with each other in order
to establish relationship in them. Moreover, findings of research have been compared with the
secondary data presented in the literature review. Relationship between primary and secondary
data has been established while analyzing data.
3.11 Summary of Chapter
To examine these factors triangulation methodology has been adopted which encompasses
primary and secondary data. Positivism and interpretivism philosophies are employed to
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examine brand switching factors. Deductive approach has been adopted which relates to
interpretivism whereas inductive approach has been adopted which is related to positivism
research philosophy. Primary data has been collected though a questionnaire survey. Researcher
has designed a close ended questionnaire in order to conduct survey. Questionnaire has been
developed by considering aims and objectives of research. Data has been collected from a
sample of 70 mobile phone subscribers from United Kingdom. Researcher has selected sample
through convenience sampling technique. Ethical issues like confidentiality of data, no harm to
anybody, honest practices of data collection and plagiarism issues have been considered very
carefully. Data analysis techniques have also been described in this chapter.
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Chapter Four
Data Presentation
4.1 Introduction
Data has been collected from the sample through questionnaire survey. In this chapter data has
been presented systematically. Results of each question have been presented in the form of
percentages. Results are presented in tables and graphs for proper analysis.
4.2 General Information
Respondents were asked to mention their age and gender in questionnaire. Different age
categories possess different preferences regarding mobile services. Same is true for gender of
mobile service subscribers. Mobile service providers can analyze the needs and wants of
different genders and that of age categories in order to design better services for different
customer groups.
4.2.1 Frequency Distribution of Age of Sample
Five age ranges were given in the questionnaire. Frequency distribution of age of respondents is
shown in the following table.
Age of Respondents
Age % of Respondents
Less than 20 Years 13
21 - 30 Years 35
31 - 40 Years 31
41 - 50 Years 13
Above 50 Years 8
Total 100
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Frequency distribution of sample shows that 13% respondents were less than 20 years old, 35 %
respondents were between 21 – 30 years of age. 31 % respondents were in the age category of
31 – 40 years of age, 13 % respondents were in the age category of 41 – 50 years. Only 8%
respondents were above 50 years of age. The data shows that most of the respondents were in
the middle age category. Graphical representation of frequency distribution of age of
respondents is shown in the following table:
4.2.2 Frequency Distribution of Gender of Sample
Respondents were asked to mention their gender in the questionnaire. By analyzing needs and
wants of males and females mobile service providers can design specific packages for males
and females. In the following table frequency distribution of gender of respondents is shown:
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The results show that there were 52 % males and 48 % females in the sample. Two deductions
can be made from results. The first is that more males use telephonic services and the second is
that more males have shown their intentions to fill the questionnaire. Graphical representation
of frequency distribution of age of respondents is shown in the following table:
4.2.3 Type of Telephonic Service
Respondents were asked about type of telephonic services used by them. In telephonic services
fixed line and mobile services are common. Respondents were given these options in the
questionnaire. Results about type of telephonic services are given in below table:
Which Phone type you are using currently?
Phone Type % of Respondents
Land line only 23
Mobile Only 52
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Gender of Respondents
Gender % of Respondents
Male 52
Female 48
Total 100

Land Line and Mobile 25
Total 100
23 % respondents said that they use land line telephonic services. 52 % respondents use mobile
services only. There were 25 % respondents who use combination of fixed line and mobile
services. This suggests that mobile telephony is popular as compared to fixed line telephony.
The results are presented in the following graph:
4.2.4 Mobile Service Provider
Respondents were asked to mention mobile service provider whose services are used by them
currently. This question was asked to analyze the major share of different mobile service
providers. The results are helpful in determining the most favorable preference of respondents
for mobile service providers. In the following table responses of respondents are summarized.
Which Mobile phone operator is currently in your use?
Service Provider % of Respondents
Three 19
O2 26
Orange 17
Vodafone 29
Others 9
Total 100
The results show that 19 % respondents were availing mobile services of “Three”. 26 %
respondents were using services of “O2” which is famous brand of Telefonica. There are 17 %
respondents who were using mobile services of “Orange” which is brand of Everything
Everywhere. There were 29 % respondents who use services of Vodafone. Only 9 %
respondents were availing mobile services of some other service providers. The results show
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that Vodafone is mostly used by the respondents. O2 is found to be at second place used by the
respondents. Graphical representation of results is as follows:
4.2.5 Switching of mobile service provider
Respondents were asked about switching mobile service providers. This question was asked for
the further direction of questionnaire and also to analyze the trend of switching mobile service
providers in respondents. The responses about switching mobile service providers are given in
the following table.
To what extent you have changed mobile phone operator since you
are availing mobile telephony?
Suggestions % of Respondents
Not at all 13
Once 35
Twice 26
Thrice 17
More than thrice 9
Total 100
Above table presents clear picture about results of switching behavior of respondents. There
were 13% respondents who have never switched mobile service provider. 35 % respondents
have switched mobile service providers once in the life. There were 26 % respondents who have
changed mobile service provider twice in their life. 17 % respondents have switched mobile
service provider thrice in their life. There were only 9 % respondents who have switched mobile
service providers for more than thrice. The results suggest that 87% respondents have
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experienced switching mobile service providers. Majority has done this only for one time.
Graphical representation of results is as follows:
4.3 Findings of questionnaire
Respondents were given directions that if they have experienced mobile service providers then
fill part “A” of questionnaire otherwise move to part “B”. Part “A” of questionnaire relates to
factors that influence mobile subscribers to switch mobile service providers whereas part “B”
relates to the factors that prevent customers to switch mobile service provider. Findings of both
parts are given below:
4.3.1 Findings of Part 1
There were 87 % respondents who have experienced switching mobile service providers. The
results of part “A” of questionnaire have been derived from 87% of total respondents who have
experienced brand switching.
Question 1:
The first question was asked that for how many times mobile service providers have switched
their service providers in response to changes in price. Literature review has discussed that price
is the most important factor that influence brand switching behavior. The results of this question
are summarized in the following table:
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For how many times you have changed mobile service provider in
response to changes in call charges?
Not at all 9
Once 31
Twice 36
Thrice 15
More than Thrice 9
Total 100
There were 9 % respondents who have never changed mobile service provider because of
changes in price. 31 % respondents have changed mobile providers once in their life in response
to change in prices. There were 36 % respondents who have switched mobile service providers
twice in their life in response to changes in price. 15% respondents have switched mobile
service providers thrice in their life in response to changes in price. 9% respondents have
switched mobile service providers for more than three times in their life in response to changes
in prices of mobile services. Graphical representation of results is as follows:
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Question 2:
Respondents were asked that whether the customer service of previous mobile service operator
was poor or not. Customer service has taken an important place in the decision making process
of customers. It has considered equally important as a product. The results of this question are
summarized in the following table:
Do you think customer care service of previous operator was
poor?
Strongly Agree 21
Agree 35
Neutral 9
Disagree 20
Strongly Disagree 15
Total 100
There were 21 % respondents who strongly agreed that customer service of previous operator
was poor. 35 % respondents agreed to the fact that customer service of previous operator was
poor. 9 % respondents remained neutral in their opinion. 20 % respondents disagreed to the fact
that customer service of previous operator was poor. 15 % respondents strongly disagreed with
this opinion. Graphical representation of results is as follows:
Question 3:
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Respondents were asked whether better service quality of new service provider has encouraged
them for switching. Service quality is determined by a number of factors which include tangible
as well as intangible aspects. The results of this question are summarized in the following table:
Better service quality has persuaded you to switch over
current service provider?
Strongly Agree 24
Agree 37
Neutral 8
Disagree 19
Total 100
The results suggest that 24 % respondents strongly agreed to the fact that better service quality
has encouraged them to switch over new service provider. 37 % respondents agreed to the fact
that better service quality of new operator has encouraged them for brand switching. 8 %
respondents remained neutral in their opinion. 19 % respondents disagreed to the fact that better
service quality of new service provider has encouraged brand switching. 12 % respondents
strongly disagreed with this opinion. Graphical representation of results is as follows:
Question 4:
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Respondents were asked that whether value added services have encouraged them for brand
switching or not. The results of this question are summarized in the following table:
Value added services have persuaded you to switch over
current service provider?
Strongly Agree 18
Agree 31
Neutral 13
Disagree 23
Total 100
The above table suggests that 18 % respondents strongly agreed to the fact that value added
services have encouraged them to switch over new service provider. 31 % respondents agreed to
the fact that value added services of new operator have encouraged them for brand switching.
13% respondents remained neutral in their opinion. 23 % respondents disagreed to the fact that
value added services of new service provider have encouraged brand switching. 15 %
respondents strongly disagreed with this opinion. Graphical representation of results is as
follows:
Question 5:
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Respondents were asked about the trust on previous service providers. Trust is very important
for maintaining or discarding relationship with the service providers. The results of this
question are summarized in the following table:
You cannot trust previous mobile service provider
Strongly Agree 17
Agree 29
Neutral 15
Disagree 25
Total 100
The above table suggests that 17 % respondents strongly agreed to the fact that they cannot trust
previous mobile service providers. 29 % respondents agreed to the fact that they cannot trust
previous service providers. 15% respondents remained neutral in their opinion. 25 %
respondents disagreed that they cannot trust previous mobile service providers. 14 %
follows:
Question 6:
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Innovations in mobile services are very attractive tool for encouraging customers to switch
brands. Innovative services can provide customers more convenience. The results of this
Current mobile service provider is innovative
Strongly Agree 21
Agree 31
Neutral 17
Disagree 19
Total 100
The results suggest that there were 21 % respondents who strongly agreed that current mobile
service provider is innovative. 31% respondents just agreed that new mobile service provider is
innovative. 17% respondents remained neutral in their opinion. 19 % respondents disagreed that
current mobile service provider is innovative. 12 % respondents strongly disagreed with this
opinion. Graphical representation of results is as follows:
Question 7:
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It has been discussed in the literature review that advertisement attracts new as well as existing
customers. Companies advertise their services in order to attract new customers and also in
order to retain existing ones. The results of this question are summarized in the following table:
Advertisement of current mobile service provider has attracted you
Strongly Agree 21
Agree 37
Neutral 8
Disagree 23
Total 100
The results suggest that there were 21 % respondents who strongly agreed that advertisement
has attracted them towards new operator. 37% respondents just agreed that advertisement has
attracted them towards new operator. 8% respondents remained neutral in their opinion. 23 %
respondents disagreed that advertisement has attracted them towards new operator. 11 %
follows:
Question 8:
Availability of service is very important factor that can create satisfaction or dissatisfaction in
customers. Respondents were asked that whether better service availability of current mobile
service provider has made them to switching or not. The results of this question are summarized
in the following table:
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Better service availability of current mobile service provider has made you to
switch over it
Strongly Agree 24
Agree 35
Neutral 14
Disagree 17
Total 100
The results suggest that 24 % respondents have strongly agreed that better service quality has
made them switching towards current mobile service provider. 35 % respondents agreed, 14%
remained neutral, 17 % disagreed and 10% respondents strongly disagreed to this fact.
Question 9:
Literature review has discussed in detail that brand image has influence on brand switching.
Respondents were asked that whether brand image or current service provider has persuaded
them to switch over this brand. The results of this question are summarized in the following
table:
Brand Image has persuaded you to switch over the current mobile
service provider
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Strongly Agree 20
Agree 33
Neutral 9
Disagree 21
Total 100
The results show that 20 % respondents strongly agreed to that fact that brand image has
influenced them to switching towards current service provider. 33 % respondents agreed, 9%
remained neutral, 21% disagreed and 17% respondents strongly disagreed with the opinion.
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4.3.2 Findings of Part 2
This part is related to non switchers. Factors that have influenced customers not to switch over
other’s brands are identified in this section.
Question 1:
Non switchers were asked that whether respondents were restricted by some personal or
professional reason for not switching service providers. The results of this question are
summarized in the following table:
You cannot change current number because of some personal reason or
professional reason
Strongly Agree 19
Agree 27
Neutral 15
Disagree 22
Total 100
Results show that 19 % respondents strongly agreed that they have been restricted by personal
or professional reason to remain stayed with the current service providers. 27% respondents
agreed, 15 % remained neutral, 22% disagreed and 17% respondents strongly disagreed to the
fact. Graphical representation of results is as follows:
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Question 2:
Switching cost plays important role in restricting customers with their current service providers.
Respondents were asked that whether switching cost is high for them or not. The results of this
Switching to other mobile service provider is costly
Strongly Agree 21
Agree 35
Neutral 14
Disagree 11
Total 100
Results show that there were 21 % respondents who strongly agreed that switching cost is high
and restricts them to stay with current service providers. 35 % respondents agreed, 14 %
remained neutral, 11 % disagreed and 19% strongly disagreed with the opinion. Graphical
representation of results is as follows:
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Question 3:
Respondents were asked about trusting other mobile service providers. Trust on mobile service
providers influences customers to either stay with or to switch over other service providers. The
results of this question are summarized in the following table
You cannot trust other mobile service providers
Strongly Agree 22
Agree 30
Neutral 12
Disagree 19
Total 100
22% strongly agreed that they cannot trust other service providers. 30 % respondents agreed,
12% remained neutral, 19% disagreed and 17% respondents strongly disagreed to the fact that
they cannot trust other service providers. Graphical representation of results is as follows:
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Question 4:
Respondents were asked that whether better service quality of current service provider resist in
switching. Results are displayed in the following table.
Service quality of current mobile service provider is better
which resists in switching
Strongly Agree 21
Agree 29
Neutral 16
Disagree 19
Total 100
Results show that there were 21% respondents who strongly agreed that better service quality
resists them to switch towards a particular service provider. 29% respondents agreed, 16%
remained neutral, 19% disagreed and 15 % strongly disagreed to the fact that better service
quality resists them for switching. Graphical representation of results is as follows:
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Question 5:
Low charges of services can be a technique for service providers to restrict customers with
them. Respondents were asked their perception about low charges and staying with current
service provider. Results are displayed in the following table.
Charges of current mobile service provider are low
Strongly Agree 28
Agree 37
Neutral 9
Disagree 16
Total 100
28% respondents strongly agreed that low charges of current service providers persuade them to
stay with them 375 respondents agreed, 9 % remained neutral, 16 % disagreed and 10%
strongly disagreed to the opinion. Graphical representation of results is as follows:
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Question 6:
Respondents were asked that whether coverage service of current mobile service provider is
better than other service providers. Results are displayed in the following table.
Coverage service of current mobile service provider is better
than other service providers
Strongly Agree 11
Agree 29
Neutral 17
Disagree 28
Total 100
Results suggest that 11% respondents strongly agreed that better coverage service of current
operator restricts them not to switch. 29% respondents agreed, 17% remained neutral, 28%
disagreed and 15% respondents strongly disagreed to the fact that they are restricted by better
coverage service of current operator. Graphical representation of results is as follows:
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Question7:
Respondents were asked about trusting advertisement of other service providers. Sometimes
advertisements are not mentioned about hidden charges of service. This can create distrust in
customers. Results are displayed in the following table.
Trusting advertisement of other service providers is costly
as they include hidden charges
Strongly Agree 20
Agree 33
Neutral 11
Disagree 19
Total 100
20% respondents said that trusting advertisement on other service providers is costly because it
includes hidden charges. There were 33% respondents who agreed, 11% remained neutral, 19%
disagreed, and 17% strongly disagreed to the opinion. Graphical representation of results is as
follows:
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Question 8:
Customer services play important role is satisfying or dissatisfying customers. Respondents
were asked that whether better customer services of current service provider resist in switching
or not. Results are displayed in following table:
Customer care services of current mobile service provider are of
high quality which resist in switching
Strongly Agree 12
Agree 32
Neutral 9
Disagree 28
Total 100
12% respondents strongly agreed that they are resisted by better customer services of current
service providers for not switching brand. 32 % agreed, 9% remained neutral, 28% disagreed
and 19% respondents strongly disagreed to the opinion. Graphical representation of results is as
follows:
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Question 9:
Brand image has influence on brand switching as discussed by literature review. Respondents
were asked that whether brand image of current service providers has resisted them to switching
or not. Results are displayed in following table:
Brand Image has persuaded you to stay with the current
mobile service provider
Strongly Agree 21
Agree 35
Neutral 7
Disagree 22
Total 100
The results show that 21 % respondents strongly agreed that brand image of current service
providers has resisted them to switching. 35% respondents agreed, 7% remained neutral, 22%
disagreed and 15% respondents strongly disagreed to the opinion. Graphical representation of
results is as follows:
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4.4 Conclusion
Data findings have been presented systematically that can help in further analysis of results. All
important aspects regarding presentation of data findings have been considered by the
researcher. The next chapter deals with the analysis of these findings.
Chapter Five
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Data Interpretation and Analysis
5.1 Introduction
Data has been presented in detail in the last chapter. In this section all graphs and tables have
been interpreted and detailed analysis of results has been performed. Findings of primary data
have been related to the theory presented in the literature review in order o establish relations
between primary and secondary data.
5.2 Analysis of Findings
In the sample most of the respondents belonged to middle age category. There was less
percentage of respondents of more than 50 years of age. Needs of communication of individuals
of different age categories vary. Individuals who are younger in age and have not started their
career yet use mobile telecommunication for contacting their friends and relatives. They do not
have any restrictions related to profession. These individuals also have limited budget so they
used to switch their mobile service providers frequently in response to different offers of service
providers. It has been found that respondents who were older used fixed line only whereas
respondents who were young used mobile telecommunication only. Some of the respondents
have also said that they use both types of telecommunication. It is very important to mention
that mobile telecommunication is comparatively new technology and is characterized by a
number of innovations. Young individuals are more attracted to innovations rather than older
ones who want to remain in their traditional frame of mind. This is the reason young and middle
age respondents have been found using mobile telecommunication more.
It has been found that majority of the respondents use Vodafone following by O2 which is
brand of Telefonica. Three has been recognized as an innovative telecommunication company
in United Kingdom. Most of the young and professional have been using “Three” because it
provides them innovations that can provide them entertainment as well as solution of their
problems. Orange has also been found as one of the major market share holder. There was very
less percentage of respondents who have been using other mobile service providers.
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Respondents who were young have been found very frequent in switching mobile service
providers. It has been found that respondents who are older in age have never switching mobile
service providers. It can be deduced that these respondents might have some personal or
professional reason for changing mobile service providers. It has been found that respondents
who are young have switched for more than 3 times since they are using mobile
telecommunication.
Questionnaire has been divided into two parts. One part relates to switchers and the other one is
related to non switchers. There were 87% respondents who have experienced switching mobile
service provider in their life whereas 13% respondents have never experienced brand switching
of mobile service providers. It has been found that most of customers of Vodafone have been
found non switchers.
5.2.1 Analysis of Factors Influencing Brand Switching
Majority of respondents have been found switching mobile service providers in response to
changes in call charges. Call charges relate to price variable which has been found very
influential factors for brand switching according to literature review. Most of the young
respondents who might have limited budget have been found more frequent switchers in
response to changes in price. It can be said that price changes affect those customers who have
limited budgets. On the other hand respondents who belonged to middle age do not switch in
response to changes in price. It can be deduced that these respondents are not sensitive to
changes in price and some other factors have influenced them to switch mobile service
providers. Rajkumar (2011) has also suggested that customers who are quality conscious are not
attracted to changes in price. Overall price has influenced customers to switch mobile service
providers
Customer care service has also been an influential factor for brand switching. It has been found
that most of the respondents have agreed that better customer service of current operator has
made them to switch towards them. Jun and Bin (2005) say that better customer service
provided by the employees can be proved an influential factor for brand switching. Quality of
service refers to tangible as well as intangible components of service. Tangible service refers to
better voice quality, voice clarity, service availability etc. On the other hand intangible
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component refers to customer care. Both are very important for satisfying and attracting
customers. James (1998) has said that companies can improve their financial performance by
satisfying customers through quality services .Important thing to be mentioned is that
respondents who are not sensitive to changes in price switch mobile service providers because
of quality of customer care services.
Quality conscious customers tend to have value added services provided by the mobile service
providers. It has been found that most of respondents have switched mobile service providers
because current service provider grants them more value added services. Quality of a service is
also recognized by the provision of value added services. Availability of service affects quality
of service. Respondents have also said that availability of service has encouraged them to switch
over current service provider. It has also been found that piece conscious respondents are less
attracted by value added services. This is because some companies charge extra amount for
value added services (Dong and Won, 2007).
Trust is very important factor in establishing long term relationship between any two units. It
has been found that customers who have experienced brand switching say they cannot trust their
previous service providers. Trust conveys a message to the customers that service provider can
do anything in order to satisfy their needs. If this does not happen, customers can switch over
other service providers (Liang and Wang, 2008).
Innovations in mobile services are penetrating day by day. Young and career oriented
respondents have been more sensitive to innovations of current service providers. It has been
found that respondents who were using “Three” were more satisfied with the innovations of
company. In fact they have switched in response to innovative offers of company. Innovations
are also related to service quality (Jun and Bin, 2005). It has been found that respondents who
were quality service conscious also recognized innovative services of current service provider.
A considerable percentage of switchers have recognized the power of advertisement in
attracting them towards current service providers. It has been found that most of the respondents
have said that they have been attracted by the advertisements of current service providers. There
were some respondents who have not been attracted by advertisements. These might be the
customers who value concrete basis rather than mere advertisement. Advertisement not only
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attracts new customers but also encourages existing customers for repeat purchase (Ehrenberg,
A.S.C., 2000). It depends on the effectiveness of advertisement that customers retain with
existing company or switch over the other one which has been more effective in its
advertisement.
Results show that respondents who were quality conscious value brand image. These
respondents have switched old mobile service provider because image of current service
provider is more attractive. Serkan et al., (2005) have suggested that brand image affects
decision making process of customers.
5.2.2 Analysis of Factors Resisting Brand Switching
It has been found that most of respondents have some personal or professional commitments
due to which they do not switch mobile service providers. The results have revealed that
respondents who were in middle age category have given this reason for not switching mobile
service providers. This reason can be related to psychological switching cost. If these
respondents change mobile service providers, they can experience high switching cost resulted
from their personal or professional commitments. This type of switching cost effects
respondents to remain attached with a particular mobile service provider (Burnham, Frels and
Mahajan, 2003).
Switching cost plays very important role in determining switching attitude of customers. It has
been found that most of the respondents who have personal or professional commitments also
said that switching to new service providers can become costly so they prefer to remain attach
with existing service provider. It can be deduced that perceived benefits of switching might be
low for these respondents so they decide not to switch mobile service providers (Lees et al.,
2007).
Another factors preventing brand switching is “Trust”. In the above section this factor has been
recognized as an important factor influencing brand switching. Majority of respondents have
said that they cannot trust other service providers so they remain attached with existing service
providers. Until there is no trust between customer and service provider, long term relationship
cannot be established (Chu, 2009). It can also be deduced that distrust on other service
providers increases switching cost which ultimately resists in switching.
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It has been found from results that better service quality of current mobile service providers has
resisted respondents to switch over other brands. Bitner & Hubbert (1994) say that better
service quality puts an impression of superior services in the minds of customers. Due to this
impression they do not switch over other brands. Service quality also refers to coverage of
service provided b the service providers (Jun and Bin, 2005). Price has been the most important
factor in the decisions of customers for staying with existing brand or switching to the other
one. In the above section it has been found that price conscious respondents have switched
mobile service providers in response to changes in price. Similarly in this section respondents
have recognized low charges restricting them to stay with the current service providers. Lee and
Murphy (2005) have found price as most important and influential factor behind brand
switching in telecommunication industry.
It has been proved that advertisement has played important role in attracting customers to new
service providers in the previous section. The results of this section suggest that non switchers
do not trust advertisement of other service providers because they include hidden charges which
are not displayed in advertisements. Brand image has also been found an important factor that
has influenced respondents to remain attached with current service provider. In above section
respondents have switched service providers because of appealing brand image of new service
providers. It can be deduced that brands with appealing image attract customers.
5.3 Conclusion
The findings suggest that customers switch over mobile service providers because of a number
of factors which include price, brand image, service quality and customer care services. On the
other hand there are various factors that prevent customers to switch over other mobile service
providers.
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Chapter Six
Conclusion
6.1 Introduction
This chapter presents conclusion of the whole research. All the findings have been concluded
here. On the basis of results of primary data and that of secondary data some recommendations
have been proposed to the telecommunication companies of United Kingdom in order to stop
their customers for brand switching. Future prospects of research have also been presented in
this chapter.
6.2 Conclusion
This particular research aimed at examining the factors influencing brand switching in
telecommunication industry of United Kingdom. In order to examine the factors triangulation
methodology has been adopted. Questionnaire strategy has been used by the researcher for
collecting primary data. There were 87% respondents who have experienced brand switching of
service providers at any stage in their life. 13% respondents have never switched mobile
service providers. The findings of research suggest that there price has been most influential
factor in decisions of customers regarding brand switching. The results have shown that most of
respondents switch mobile service providers in response to changes in prices. On the other hand
service providers charging low call rates have been succeeded in stopping their customers to
switch over other service providers. All customers do not value reduction in prices of calls but
they value quality of services Rajkumar (2011). So companies need to maintain a balance in
high quality and reasonable price in order to retain customers.
High quality services have also been found an important factor for encouraging customers for
brand switching as well as for retaining customers. Mobile service providers with attractive and
high quality services (customer care, coverage area) have made customers of other companies to
switch over them. On the other hand customers have been stopped by companies for brand
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switching by providing them quality services. Quality services satisfy customers and ultimately
enhance performance of companies (Jun and Bin (2005).
Switching cost has been found very important factor in stopping customers for brand switching.
Burnham, Frels and Mahajan (2003) suggest that companies need to raise switching cost in
order to retain their customers. High switching cost prevents customers to switch over others. It
can ultimately increase customer loyalty. Service providers that have low switching cost face
frequent switching of their customers towards other service providers.
On every important factor has been identified from the results that encourage brand switching as
well as prevents it. The factor is “Trust” which is base of establishing long term relationship
with the companies. If companies fail to maintain trust with customers they cannot start
relationship with customers on long term basis. The results have revealed that customers who
do not trust service providers switch over other service providers. On the other hand customers
who do not trust other service providers tend to remain with their current service providers.
Brand image has also been found an influential factor in determining the final decision of
customers regarding brand switching. Brands that have appealing image attract customers of
other service providers and retain their own customers for long time period (Serkan et al.,
2005).
Finally the objectives of research are reviewed as follows:
• Switching behavior is a process which persuades customers to end relationship with a
particular company and to start a new relationship with another company.
• Price has been the most important factor that influences brand switching. Other factors
that have been found encouraging for brand switching in telecommunication industry of
United Kingdom are: Service quality, Customer care, value added services and brand
image.
• Most important factor that prevents brand switching is switching cost. High switching
cost prohibits customers to switch over other service providers. Other factors that stop
customers for brands switching are: personal or professional commitments regarding
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Factors Influencing Brand Switching in Telecommunication Industry of United Kingdom

Factors Influencing Brand Switching in Telecommunication Industry of United Kingdom

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