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