Consumer Behaviour Mobile Operator Kenya

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Consumer Behaviour on selecting a mobile operator in Kenyan Market This is my final part of MBA Principal Investigator: Syed Thameem

Date: 15th May 2009 Guided by Professor: Prof. Andre Molajani ([email protected])

09

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

Acknowledgement I would like to acknowledge and extend my gratitude to the following persons who have made the completion of this project work would have been remained a dream. First of all I would like to thank our Project Coordinator Prof. Andre Molajani for his great help. As he is being my Project Coordinator he provided me very necessary and important guidance and support until the submission of my project. Secondly, I would like thank Management Institute of Canada, to provide us such a very exciting opportunity and for their good help to provide a better coordination and control among all the activities related to completion of the project. I thank all my faculty members of MBA department for their valuable suggestions throughout my course. Again I would like to thank GSMA association website to collect the data and the respective company personnel as well. I would like to express my gratitude to my previous company Zain and my previous boss Mr. Nigel Williams for their flexibility and guidance throughout the program. The importance of the moral support and good wishes of my parents and friends is external and I am very much indebted to them. Finally I thank all my friends who directly or indirectly helped me a lot during my project. Lastly but not least, I would like to be very thankful for my wife Sheeba, son Afeef and daughter Afya, for their tireless support from starting to end to complete this course. They have sacrificed lot during my exams and studies.

Syed Thameem Management Institute of Canada

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

DECLARATION

I hereby declare that this summer project report titled “Consumer Behavior on selecting a mobile operator in Kenyan Market is the result of my own effort in the training which I did as a part of the curriculum, for the fulfillment of MASTER OF BUSINESS ADMINISTRATION (MBA) degree. It has not been duplicated from any other earlier works and all information provided in this report is genuine.

This report is submitted for the partial fulfillment of MBA program. It has not been submitted to any other university or for any other degree.

Date: 15th May 2009 Place: Nairobi

Syed Thameem Management Institute of Canada Montreal

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

Table of Contents 1. Introduction 1.1 Explanation about the Topic in brief (i.e. Consumer Behavior) 1.2 Reasons for selecting the Topic 1.3 Learning from the Topic

2. Research objectives and Scope of Research project 2.1 Problem definition 2.2 Objectives of the Research project

3. Research Methodology and Limitations 3.1 Research Design 3.2 Sampling Plan 3.3 Sample size determination 3.4 Data collection Instrument 3.5 Research Limitations

4. Analysis, Interpretation and Presentation 4.1 Analysis of Question 4.2 Interpretation

5. Kenyan Mobile Market 5.1 Demography, GDP and Population 5.2 Operators in Kenya and Regulation 5.3 Market share

6. Conclusion and Suggestions 7. Limitations ✔ Bibliography

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

1. Introduction

Consumer Behavior: “Consumer Behavior is the study of how individuals, groups and organization select, buy, use and dispose of goods, services ideas or experience to satisfy their needs and wants.” –

By Philip Kotler.

1.1

Explanation of The Topic

“Research Study of Consumer Behaviour on selecting a mobile operator in Kenyan Market” Marketer must fully understand both the theory and reality of Consumer behavior. A consumer’s buying behavior is influenced by cultural, social and personal factors. Cultural factors exert the broadest and deepest influence. Consumer behavior is referred to as the study of when, why, how, where and what people do or do not buy products. It blends elements from psychology, sociology, social psychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

1. Cultural Factors Culture, subculture and social class are particularly important influences on consumer buying behavior. Culture is the fundamental determinant of a person’s wants and behavior. The growing child acquires a set of values, perceptions, preferences and behaviors through his or her family and other key institutions. A child growing up in the Western culture is exposed to the following values: achievement and success, activity, efficiency and practicality, progress, material comfort, individualism, freedom, humanitarianism, and youthfulness. A child growing up in a in Kenya is exposed to the following values: respect and care for elders, hard work, achievement and success, humanitarianism, and sacrifice. The best example will be the US President Barack Obama.

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

2. Social Factors In addition to cultural factors, social factors such as reference groups, family, and social roles and statuses affect the process of buying behavior. Reference Groups: A person’s reference groups are all the groups that have a direct (face-to-face) or indirect influence on their attitudes or behavior. Groups having a direct influence are called membership groups. Some of these are primary groups with whom the person interact fairly continuously and informally, such as family, friends, neighbors, and coworkers. Role and Status: A person participates in many groups – family, clubs and organizations. Groups often are an important source of information and help to define norms for behavior. We can define a person’s position in each group to which he belongs in terms of role and status. A role consists of the activities a person is expected to perform. Each role carries a status. A CEO has more status than a CIO, and a CIO has more status than driver.

3. Personal Factors A buyer’s decisions are also influenced by personal characteristics, such as age and stage in the life cycle; occupation and economical circumstances; personality and selfconcept; and lifestyle and vales. Because many of the characteristics have a very direct impact on consumer behavior, it is important for markets to follow them closely. a) Age and stage in the life cycle b) Occupation and economic circumstances c) Personality and self-concept d) Lifestyle and values

Key Psychological processes The starting point for understanding consumer behavior is the stimulus response model. Marketing and environmental stimuli enter the consumer’s consciousness, and a set of psychological processes combine with certain consumer characteristics to result in decision processes and purchase and decisions. The marketer’s task is to understand what happens in the consumer’s consciousness between the arrival of the outside marketing stimuli and the ultimate purchase decisions. Four key psychological processes1. Motivation 2. Perception 3. Learning

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

4. Memory - Fundamentally influences consumer responses.

1.2

Reasons for selecting the Topic

This is my personal interest, since 2003 I have been working for a telecom company in Africa. The current topic influenced me due to the 2 new operators entered in to the market in 2008. It’s my curiosity how the market will change and what strategies are applied to dethrone the market leader Safaricom.

1.3

Learning from the Topic

From this topic analysis, we can able to find out what factors are critical to select a mobile operator. This study will reveal the secrets of success for the market leader and way forward in the competition. In East Africa the Tax rates are high for the airtime below is the break down by country wise.

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

Taxes on mobile services in African Countries.

A ranking of the taxes levied on mobile services (excluding the fixed taxes) is shown in the following figure. This shows that the East African countries face the highest tax burden on mobile services. GSMA association has conducted various studies and lobbied the government to reduce the taxes on mobile services, which will enhance the growth. But the governments are not willing to reduce the taxes due to lucrative cash cow for them.

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

2. Research objectives and Scope of Research project Introduction: Research always starts with a question or a problem. Its purpose is to answer to questions through the application of the scientific methods. It is a systematic and intensive study directed towards a more complete knowledge of the subject studies. Once the problem is defined properly then one can easily chalk out the Objectives for the research.

2.1 Problem definition “A problem well defined is half-solved” Poorly defined problems create confusion and do not allow the researcher to develop a good research design. The first step in research is formulating a research problem. It is

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

the most important stage in applied research as poorly defined problems will not yield useful results. After a problem has been identified, the next task is to formulate it precisely. This too needs a good deal of care on the part of marketing researchers. Formulation implies a clear statement or definition of the problem. A complete problem definition must specify each of the following: 1. Sample and sampling units 2. Time and space boundaries 3. Product features, and consumer preferences 4. Specific environmental conditions

2.2 Objectives of the Research project The subject matter for this research Project is to study the behavior of the Customers on selecting a mobile operator in Kenya. This project consists of different objectives. They are as follows: · · · · · ·

To know the test and preferences of mobile operator To know the current market share for the mobile To measure the customer satisfaction with the existing operator To understand the reaction of consumers by listening to the Brand To know the sex ratio and income group To know the current tax regulation

3. Research Methodology and Limitations 3.1 Research Design Research Design is the plan, structure and strategy of investigation conceived so as to obtain answers to research questions and to control variance. Descriptive Research The type of research Design for this Research Project is Descriptive Research. Under the head of the Descriptive Research this project is based on the cross sectional studies. The cross sectional studies are of two types: 1. Field studies 2. Surveys

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

This research is based on the surveys. The complete research design is formulated with the following steps: 1. Identify and define the problem 2. Choice of Research Design 3. Determining sources of Data 4. Designing data collection Forms 5. Determining sampling design and sampling size 6. Organizing and conducting the field survey 7. Processing and analyzing the collected data 3.2 Sampling Plan For this survey I have selected the Stratified random sampling method. A stratified random sample is one where the population is divided into mutually exclusive and mutually exhaustive strata or sub-group and then a simple random sample is selected within each of the strata or sub-groups. 3.3 Sample size determination According to this approach, a sample size of less than a few hundred units is not chosen. This is because when a field survey is undertaken, interviewers are appointed, trained and asked to conduct field investigations. Since all this would cost substantially, it would not be worth it for the marketing researcher if only a small sample is chosen.

3.4 Data collection Instrument Communication The communication method, in effect, is the method of designing questionnaires with a view to collect the requisite information. From the above both data collection method, Questionnaire (Communication method) is selected as the instrument for collecting the data as the respondents are directly interviewed by the researcher. The same questionnaire is attached as an annexure to this report. Questionnaire Design: From basic aspects of measurement and meaning, we proceed to their application in designing the instruments for seeking and recording data. Data may be obtained by either observing or asking for them, and forms are needed for field used in observation

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

and interviewing. The accuracy and relevancy of the data gathered depend heavily on the questionnaire. Function of questionnaires: Questionnaire is simply a formalized schedule to obtain and record specified and relevant information with tolerable accuracy and completeness. In other words, it directs the questioning process and promotes clear and proper recording. 3.5 Research Limitations One must be aware of these limitations in advance so that one is clear about what Research can and cannot do: 1. Marketing research tends to be fragmentary in its approach as a result of which it becomes difficult to have an overall perspective in which a marketing problem is to be viewed and studied. 2. Marketing research is criticized on the ground that it becomes too superficial and faulty in industry. While the principles of marketing research are good based on scientific lines, in industry, marketing research is very often used by those who have had no formal training in the subject. 3. There is an absence of a meaningful dialogue between the marketing management and the marketing research team. As a result, marketing researchers get divorced from the main stream of marketing. This denies them any opportunity to think that “research is the be all and end all.” 4. Marketing research is not an exact science. There are several imponderables which come in the way of getting accurate results.

4. Analysis, Interpretation and Presentation Analysis of Question Interpretation I have developed 19 questions to determine the consumer behaviour on selecting a mobile operator. I have collected the information from 250 respondents mainly in the Nairobi and her sub urban areas. 1. Age Group:

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

Interpretation: Kenya has the strong young work force it accounts 74% of the respondents. Kenya has good potential to grow their economy. Mostly kenyan speak English and Swahali and it Advantageous for the foreign investors. 2. Sex:

Interpretation: Out of 250 respondents, 46% female and 54% are male. This shows, male work force is high.

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

3. Income Group (Kes)

Interpretation: Current exchange rate is Kes 80 against USD. Kenya has low GDP country and her per capita income is $1600/- Most of the work force are getting Kes 10,000/($125) pm. This is on lower side. If we analyse the further data, the most young population age group 16- 25 categories are earning more than the experienced people. This may be due to young population received higher degrees and technical experience. 4. Residential Status

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

Interpretation: Out of 250 respondents 74% are citizens of Kenya and remaining 24% are residents who work in Kenya. Especially in Nairobi residents are more due to the Business / Capital hub.

5. What’s the purpose of the Mobile phone?

Interpretation: We would like to determine the purpose of the mobile phone in the context of personal or official. 42% respondents declared as personal. 50% male respondents declared the use of mobile phone as Personal. 6. Which Handset you are using?

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

Interpretation: In order to find out handset type (high end or low end) around 50% respondents are using the low handset which will be used only for voice and sms. There’s a correlation between the income group and handset type, when the income goes up, people are buying high end handset which will browsing internet. We have found another correlation between young age and handset type. Mostly young people are possessing high end handset as prestige issue. 7. How many do you spend on monthly basis?

Interpretation:

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

Kenya being a poor economy, the ARPU levels are low, according to GSM and Safaricom reports. Safaricom reported ARPU Kes 475 ($6) in the recent annual report. 34% of respondents reported they are using below Kes 500/- which depicts the low income group (who are earning lower than Kes.10,000) . Mobile is not a luxury service, so all sections of the people are using the mobile service. When the income groups goes up, their usage also goes up and it clearly shows the economical status. Prior to 2007, call rates are high more than Kes 20/- for local calls, only last year, due to completion few operators reduced the tariff. So now it’s more affordable and more people are using. In Q4 2006 total mobile connections was only 7.3 million and in Q1 2009 the mobile connections doubled it has more than 14 million. It has grown 104% in two years. 8. Which Network you are using currently?

Interpretation: From the analysis we found out that, Safaricom is the preferred mobile operator in Kenya. Zain being the second preferred operator. Orange and Econet wireless launched in Q4 2008, yet still they are improving their subscriber acquisition. From the analysis we found that, both new operators customers are mostly dual sims. People are not fully confident on both networks, due to various factors like, quality, coverage extra. If someone using either Orange or Econet (yu) they are using as a backup line only. According to GSMA association, Safaricom holds 80% of the market share. But from the above graph it depicts Safaricom has only 67% this due to the dual sims.

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

The above 8 questions are general and which helped us their age, sex, income group, resident status, usage and preferred mobile operator. We asked next 11 questions are critical important to determine the factors affecting the consumer behaviour to select the mobile operator.

How do you select a mobile operator? 9. Do you consider the Tariff/pricing?

Interpretation: We asked respondents, do you consider to tariff to select a mobile operator, around 70% told us it’s very important and 23% told it’s important. Remaining 7% is not bothered. The mobile operators should more concentrate on the pricing side, it’s keen to acquire the new customers. 10. Do you consider the Brand?

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

Interpretation: We asked about the Brand, do you consider the brand while choosing the mobile operator, around 85% respondents told very important and important. The mobile operator, should create the brand awareness by promoting their brands, CSR activities, to enable reach the masses. 11. Do you consider the Coverage?

Interpretation: We asked the question on the coverage issue, respondents told as it’s very keen to select the mobile operator. Coverage is very important for the subscribers, because population is dispersed, business need to move on; people have work in different

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

places. From this analysis, why Orange and Econet (yu) are not prominent among the people because of they have not covered entire country. 12. Do you consider the Customer Service?

Interpretation: Around 86% respondents informed as customer service is keen while selecting the mobile operator. In Kenya one of the operator has very poor customer service, that’s why they are being in the market for a long time, unable to conquere the hearts of customers. It’s important for the 2 incumbent new operators to keep their efficient customer service. 13. Do you consider the Flexibility of the service?

Interpretation:

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

Flexibility of service means, giving credit to the customers, missed call alert, free incoming calls while roaming, prepaid roaming, etopup etc. People are so mobile and they need flexibility in their services. Around 88% respondents specified it’s important to select the mobile operator. Mobile operators should be innovative in offering their services. 14. Do you consider the Loyalty Program?

Interpretation: After the millienium, especially service industries keen on retaining their customers, so they offered many loyalty programs, take example of Airways is the pioneer industry to offer the loyatly program. Customer acquisition cost is going up, so the companies realised to offer the loyalty prorgram to retain their customers. 31% respondents strongly agree to have the loyalty programs to choose the mobile operator. Another 34% also agreeing the same. In order to grow and acquire more subs, they need to offer loyalty programs. It’s keen for the business. Otherwise they will wintness lot of churn. 15. Do you consider the any Promotions?

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

Interpretation: Mobile companies they are launching too many promotions, the respondents gave feedback, that majority of them, they don’t participate. From the data analysis, we found that, the low income group are more interested to take part in the promotions. Telcos should do something better. 16. Are you satisfied with your existing mobile operator?

Interpretation: Respondent’s feedback summaries with the market leadership. The customers are satisfied with the existing operators. The new operators have tough task to pull the customers from other side.

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

17. Should the Govt. reduce the taxes on Airtime?

Interpretation: 92% Respondents told to reduce the taxes. Kenya is one for highly taxed country on airtime usage, currently it charges 16% VAT & 10% ED. GSMA had made several attempts to reduce the taxes, but the Govt. is defiant and don’t want to reduce the taxes on airtime. If they reduce, it will be a mutual benefit for the Govt. and citizens. 18. Are the Telecom companies doing enough to protect our Ecology?

Interpretation:

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

This is question is very important to the current scenario in the world. The environment is getting affected second by second. Everybody should be responsible for it. We need more greener initiatives. The telecom companies scratch cards, sim cards, Radio Frequency, Ewaste, BTS, servers etc, do lot of emissions and detoriate the environment. 60% of the respondents mentioned that, the telecom companies are not doing enough to protect our environment. Disposing the used handsets has huge challenge , the telecom companies should take a joint initiative to protect our environment by way of sharing the towers, collecting ewaste, going for electronic topup etc. 19. Do you think local tariff should be reduced further?

Interpretation: Around 87% of the respondents have the same view to reduction in the tariff. High tariff leads to low penetration and low growth. Telecom companies can’t reduce the tariff right away due to high interconnect cost and taxes. The Regulator CCK should do enough to reduce the interconnect cost and lobby the Govt. to reduce the taxes.

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

5. Kenyan Mobile Market 5.1 Demography, GDP and Population

National Flag Map of Kenya

Brief History: Kenya was liberated from British Colony in Dec 12 1963. KANU was nationalist party and it has been ruling since independence up to 2002. Currently coalition government ruling the Kenya. Geography: Eastern Africa, bordering the Indian Ocean, between Somalia and Tanzania Area Total: 582,650 sq km Country comparison to the world: 55 Land: 569,250 sq km Water: 13,400 sq km

(Link: https://www.cia.gov/library/publications/the-world-factbook/geos/KE.html) Population: 39,002,772

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

Country comparison to the world: 34 Age structure: 0-14 years: 42.3% (male 8,300,393/female 8,181,898) 15-64 years: 55.1% (male 10,784,119/female 10,702,999) 65 years and over: 2.6% (male 470,218/female 563,145) (2009 est.)

Sex ratio: at birth: 1.02 male(s)/female Under 15 years: 1.01 male(s)/female 15-64 years: 1.01 male(s)/female 65 years and over: 0.84 male(s)/female Total population: 1 male(s)/female (2009 est.) Literacy: Definition: age 15 and over can read and write Total population: 85.1% Male: 90.6% Female: 79.7% (2003 est.)

Economy - overview: The regional hub for trade and finance in East Africa, Kenya has been hampered by corruption and by reliance upon several primary goods whose prices have remained low. In 1997, the IMF suspended Kenya's Enhanced Structural Adjustment Program due to the government's failure to maintain reforms and curb corruption. A severe drought from 1999 to 2000 compounded Kenya's problems, causing water and energy rationing and reducing agricultural output. As a result, GDP contracted by 0.2% in 2000 GDP (purchasing power parity): $61.83 billion (2008 est.)

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

Country comparison to the world: 84 $60.5 billion (2007) $56.56 billion (2006) GDP - per capita (PPP): $1,600 (2008 est.) Country comparison to the world: 193

5.2 Operators in Kenya and Regulation Kenya's communications market began full liberalization in 1999, when policy and regulatory functions were de-linked from mainstream operation. As a result, the Communications Commission of Kenya (CCK), an independent regulatory authority, and the National Communications Secretariat (NCS), a policy advisory arm, were created. The Commission is financially and administratively independent, transparent in its processes and protects the rights of both operators and consumers. This is meant to ensure that operators make reasonable return on their investment while giving customers value for money. The Commission is funded through annual licence fees and spectrum management fees. The Commission issues two main categories of operating licences: facility based network operator licences (i.e. major licences) and non-facility based service provider licences (i.e. minor licences). Until 2005, Kenya had two mobile operator and 1 national operator, they opened up the telecom sector for further competitive and investment purpose. They awarded two licences one for Econet Wireless Kenya and another one for Orange Kenya which was recently privatized by the government. 1. Safaricom – Mobile operator launched operations in 1993 based on an analogue ETACS network and was upgraded to GSM in 1996. Safaricom is the leading telecommunications company operating in Kenya. We provide a host of products and services for Telephony, GPRS, 3G, EDGE, Data and Fax. They hold 80% of the market share as of 31st Mar 2009. 2. Zain Kenya – Mobile operator launched operations in 2000 under the name of Kencell and it was sold to Celtel International in 2005 and in 2008 it was rebranded to Zain.

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

3. Telkom/ Orange – It started with fixed mobile operator. From 1948 to 1977, postal service in Kenya, Tanzania and Uganda was provided by the East African Posts and Telecommunications Corporation. The dissolution of the first East African Community since that era forced Kenya to establish its own monopoly communications company, KPTC. It was privatized in 2007, Govt. sold shares to French operator Orange. Orange launched mobile service in Q4 2008. 4. Econet wireless Kenya won the 3rd license in 2004, due to financial crisis, it launched only in Q4 2008.

5.3 Market share From the below 2 graphs we can understand how the mobile customers are among distributed between the 4 operators. Safaricom is leading the game by holding 80% of the market share and 14 million customers as of Mar 2009. Kenya Mobile customer’s growth look

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

6. Conclusion and Suggestions From the above analysis, I would like to recommend for the mobile operators either to retain their customers or acquiring the new customers. If they follow the following strategies it will really benefit them. • • • • • • • • •

Telco should be innovative new products/services with unique features having some multipurpose utility which could create an appeal to the customers. In case of price, price of products/services should be competitive. It should reaches the masses Create the Brand awareness by way of CSR activities not only putting the bill boards or hoardings. Telcos should support more on greener environment by way of adopting the etopup, disposing the used mobiles, simcards etc. Telcos should lobby to the Govt. for reducing the taxes on airtime in the interest of the customers. Telcos should share their network/infrastructure to protect our environment. Telcos should improve their coverage in order to cover the dispersed population. Telcos should reduce their Tariff to affordable one. Telcos should improve their quality of services

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

7. Limitations Like any other program or method, has its own limitation. Likewise, this Research methodology has its own limitations. I have selected the I questionnaire method for this project and it has the following limitations: Questionnaires are impersonal, this means that it may be difficult to understand answers and thus to act on them. Also, there is a chance that the question may be misinterpreted, rendering the answer useless. Questionnaires also invite people to lie and answer the questions very vaguely which they would not do in an interview. Open questions can take a lot of time to collect and analyse. People are not always willing to fill questionnaires in so they may just throw them always. Sometimes questions used are too standardized so some peoples preferred answers may not be included, and this also does not allow for much detail. Peer pressure of embarrassment may cause people to not want to answer certain questions, or they may want to impress the researcher and fabricate the truth by filling in untrue answers, making questionnaires unreliable and sometimes invalid.

We need to consider all the facts before making any judgement on this project. Thanks for all reading my Research Project.

Consumer Behaviour on selecting a mobile operator in Kenyan Market

Principal Investigator: Syed Thameem

✔ Bibliography Books MarketingResearch–G.C.Beri ResearchMethodology–C.R.Kothari PrinciplesofMarketing–PhilipKotler

Websites infocentre.gsm.org www.cck.co.ke www.safaricom.co.ke www.zain.com www.yu.co.ke www.telkom.co.ke www.cia.gov www.worldbank.org www.kenya.go.ke www.gsmworld.com

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