Factors Influencing Consumer Adoption Of Prepaid Tariff Plans In The Mobile Telecommunications Industry In Nairobi, Kenya

Abstract

The objective of this study was to determine the factors that influence the consumer adoption of prepaid tariffs in the Mobile telecommunications Industry in Nairobi, Kenya. It is argued that Promotions through advertising plays a significant role in influencing customer choice but this may just be one of the factors that influence choice and even if so, this has to be verified through a study. The study was done through a questionnaire administered randomly to 250 respondents in Nairobi. Key attributes were tested to ascertain consumer awareness of services offered and how they are charged, Mobile service provider performance rating and if the services offered do indeed influence consumer choice of prepaid tariff plans and hence adoption. And the study covered adoption across gender, age group and income levels. Of all the factors that were considered in the study, affordability, friends and relatives influence, consumer awareness of services offered by Mobile service providers, network coverage and clarity were found to be the factors that largely influenced consumer adoption of prepaid tariff plans in mobile telecommunications industry in Nairobi, Kenya. We can therefore conclude that advertising and promotions which is a key awareness driver is a major contributor to adoption of prepaid tariff plans. Consumer response is based on their knowledge and awareness.