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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ContentsAcknowledgements.....................................................................................................................................2

Chapter One................................................................................................................................................7

Introduction.................................................................................................................................................7

1.0 Introduction.....................................................................................................................................7

1.1 Background......................................................................................................................................7

1.1.1 Defining Brand Switching.........................................................................................................7

1.1.2 Types of Brand switching.........................................................................................................7

1.1.3 Brief View of Factors Inducing Brand Switching.......................................................................8

1.1.4 Brand Switching in Telecommunication Industry.....................................................................8

1.2 Rationale of Study............................................................................................................................9

1.3 Aims and Objectives of Research...................................................................................................10

1.4 Research Questions.......................................................................................................................10

1.5 Scope and Significance of Research...............................................................................................11

1.6 Research Structure........................................................................................................................11

Chapter Two..............................................................................................................................................13

Literature Review......................................................................................................................................13

2.0 Introduction...................................................................................................................................13

2.1 Defining Brand Switching...............................................................................................................13

2.2 Factors Related to Brand Switching...............................................................................................13

2.2.1 Switching Cost........................................................................................................................13

2.2.2 Price.......................................................................................................................................15

2.2.3 Service Quality.......................................................................................................................16

2.2.4 Trust.....................................................................................................................................17

2.2.5 Other Factors......................................................................................................................18

2.3 Brand Switching and Loyalty..........................................................................................................19

2.4 Influence of Advertisement on Brand Switching............................................................................21

2.5 Summary of Literature Review......................................................................................................21

Chapter Three............................................................................................................................................23

Research Methodology..............................................................................................................................23

3.0 Introduction...................................................................................................................................23

3.1 Defining Research..........................................................................................................................23

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3.2 Research Philosophy......................................................................................................................23

3.3 Research Approach........................................................................................................................24

3.4 Research Methods.........................................................................................................................25

3.5 Data Collection Techniques...........................................................................................................25

3.5.1 Types of Data.........................................................................................................................25

3.5.2 Primary data collection techniques........................................................................................26

3.5.2.1 Observations......................................................................................................................26

3.5.2.2 Surveys...............................................................................................................................26

3.5.2.3 Interviews..........................................................................................................................26

3.5.2.4 Focus Groups.....................................................................................................................27

3.5.3 Contrast of the data collection tools......................................................................................27

3.5.4 Primary and Secondary data collection tools employed in research.....................................28

3.5.5 Questionnaire Design.............................................................................................................28

3.6 Population and Sample..................................................................................................................28

3.7 Time Scale of research...................................................................................................................29

3.8 Validity and Reliability of Research................................................................................................29

3.9 Research Ethics..............................................................................................................................29

3.10 Method of Data Analysis................................................................................................................30

3.11 Summary of Chapter......................................................................................................................30

Chapter Four..............................................................................................................................................32

Data Presentation......................................................................................................................................32

4.1 Introduction...................................................................................................................................32

4.2 General Information......................................................................................................................32

4.2.1 Frequency Distribution of Age of Sample..............................................................................32

4.2.2 Frequency Distribution of Gender of Sample.........................................................................33

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

4.3.1 Findings of Part 1...................................................................................................................37

4.3.2 Findings of Part 2...................................................................................................................48

4.4 Conclusion.....................................................................................................................................57

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Chapter Five..............................................................................................................................................58

Data Interpretation and Analysis...............................................................................................................58

5.1 Introduction...................................................................................................................................58

5.2 Analysis of Findings........................................................................................................................58

5.2.1 Analysis of Factors Influencing Brand Switching....................................................................59

5.2.2 Analysis of Factors Resisting Brand Switching........................................................................61

5.3 Conclusion.....................................................................................................................................62

Chapter Six................................................................................................................................................63

Conclusion.................................................................................................................................................63

6.1 Introduction...................................................................................................................................63

6.2 Conclusion.....................................................................................................................................63

6.3 Recommendations.........................................................................................................................65

6.4 Future Research.............................................................................................................................65

References.................................................................................................................................................66

Bibliography...............................................................................................................................................70

Appendix...................................................................................................................................................71

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Chapter OneIntroduction

1.0 IntroductionCustomers 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

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.

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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.

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.

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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 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

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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”

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?

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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

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

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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.

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.

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Chapter TwoLiterature Review

2.0 IntroductionCustomer 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.

2.1 Defining Brand SwitchingBrand 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 Switching2.2.1 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

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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

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.

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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 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.

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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

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

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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).

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).

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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 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 FactorsAbove 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

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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

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.

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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 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.

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2.4 Influence of Advertisement on Brand Switching

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 ThreeResearch Methodology

3.0 IntroductionMethodology 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 ResearchAn 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 PhilosophyThe 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 reality. It

researches a phenomenon on the basis of researcher’s point of view (Hatch and Cunliffe, 2006).

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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 ApproachTo 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.

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

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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 MethodsThere 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 Techniques3.5.1 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 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

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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).

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

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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.

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.

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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 SamplePopulation 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).

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).

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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 researchThere 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 ResearchValidity 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.

3.9 Research EthicsResearch 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

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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 AnalysisData 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 ChapterTo examine these factors triangulation methodology has been adopted which encompasses

primary and secondary data. Positivism and interpretivism philosophies are employed to 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

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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.

Chapter Four31 | P a g e

Data Presentation

4.1 IntroductionData 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 InformationRespondents 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

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%

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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:

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:

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Gender of Respondents

Gender % of Respondents

Male 52

Female 48

Total 100

4.2.3 Type of Telephonic ServiceRespondents 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

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:

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4.2.4 Mobile Service ProviderRespondents 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 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:

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4.2.5 Switching of mobile service providerRespondents 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

experienced switching mobile service providers. Majority has done this only for one time.


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4.3 Findings of questionnaireRespondents 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:

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Question 3:

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:

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Question 4:

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:

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Question 5:

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


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 % respondents strongly

disagreed with this opinion. Graphical representation of results is as follows:

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Question 6:

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 question are


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:

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Question 7:

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 %

respondents strongly disagreed with this opinion. Graphical representation of results is as

follows:

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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:

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. Graphical

representation of results is as follows:

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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


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

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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


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.


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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 question

are summarized in the following table:

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 ConclusionData 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 FiveData Interpretation and Analysis

5.1 IntroductionData 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

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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.

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

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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 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

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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 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).

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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.

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.

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5.3 ConclusionThe 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.

Chapter SixConclusion

6.1 IntroductionThis 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 ConclusionThis 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

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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

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:

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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

changing number, low service charges, high quality and appealing brand image of

existing service providers.

Most of the respondents prefer Vodafone in United Kingdom which has low switching

rate. After Vodafone, O2 has been found popular in the respondents.

6.3 RecommendationsOn the basis of findings of primary and secondary research some recommendations have been

proposed to the mobile service providers in order to stop their customers for brand switching.

These recommendations are as follows:

Raise switching cost associated with the services so that because of high cost customers

avoid brand switching and remain loyal with existing service provider.

Provide high quality services to customers that must be accompanied by quality customer

care services and large coverage area so that customers do not get any reason for

switching towards other service providers.

Maintain strong and appealing brand image so that customers remain loyal with the

brand.

Assure customers that company will take stand in order to satisfy their needs so that

trustworthy relationship can be maintained on long term basis which ultimately

encourages customers to remain loyal with the company.

Offer low charges accompanied by high quality services for stopping customers to go for

low charges of other service providers.

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6.4 Future ResearchResearch has been conducted to evaluate the factors influencing brand switching in

telecommunication sector of United Kingdom. This particular research is very helpful for the

future researchers. They can extend base of this research and enhance its scope. Literature review

of the research can assist future researchers in understanding brand switching phenomenon. This

particular research is basically focused on telecommunication market of United Kingdom. Future

researchers can expand this research in markets other than United Kingdom. This particular

research has been conducted on a small sample selected through convenience sampling

technique. Future researchers can select a large sample from probability sampling technique.

This will assist future researchers in generalizing the results of research.

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Appendix

Questionnaire

General Information

Age:

a) Less than 20 Years

b) 21 – 30 Years

c) 31 – 40 Years

d) 41 – 50 Years

e) Above 50 Years

Gender:

a) Male

b) Female

1. Which Phone type you are using currently?

a) Land line only

b) Mobile Only

c) Land Line and Mobile

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2. Which Mobile phone operator is currently in your use?

________________________________

3. To what extent you have changed mobile phone operator since you are availing

mobile telephony?

a) Not at all

b) Once

c) Twice

d) Thrice

e) More than thrice

If you have ever switched mobile service provider, then answer part “A”. If you have never

switched mobile service provider, then answer part “B” of questionnaire.

Part A:

1. For how many times you have changed mobile service provider in response to

changes in call charges?

a) Not at all

b) Once

c) Twice

d) Thrice

e) More than thrice

2. Do you think customer care service of previous operator was poor?

a) Strongly agree

b) Agree

c) Neutral

d) Disagree

e) Strongly disagree

3. Better service quality has persuaded you to switch over current service provider?

a) Strongly agree

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b) Agree

c) Neutral

d) Disagree


4. Value added services have persuaded you to switch over current service provider?

a) Strongly agree

b) Agree

c) Neutral

d) Disagree


5. You cannot trust previous mobile service provider

a) Strongly agree

b) Agree

c) Neutral

d) Disagree


6. Current mobile service provider is innovative

a) Strongly agree

b) Agree

c) Neutral

d) Disagree


7. Advertisement of current mobile service provider has attracted you

a) Strongly agree

b) Agree

c) Neutral

d) Disagree


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8. Better service availability of current mobile service provider has made you to switch

over it

a) Strongly agree

b) Agree

c) Neutral

d) Disagree


9. Brand Image has persuaded you to switch over the current mobile service provider

a) Strongly agree

b) Agree

c) Neutral

d) Disagree


Part B:

1. You cannot change current number because of some personal reason

a) Strongly agree

b) Agree

c) Neutral

d) Disagree


2. Switching to other mobile service provider is costly

a) Strongly agree

b) Agree

c) Neutral

d) Disagree


3. You cannot trust other mobile service providers

a) Strongly agree

b) Agree

c) Neutral

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d) Disagree


4. Service quality of current mobile service provider is better which resists in

switching

a) Strongly agree

b) Agree

c) Neutral

d) Disagree


5. Charges of current mobile service provider are low

a) Strongly agree

b) Agree

c) Neutral

d) Disagree


6. Coverage service of current mobile service provider is better than other service

providers

a) Strongly agree

b) Agree

c) Neutral

d) Disagree


7. Trusting advertisement of other service providers is costly as they include hidden

charges

a) Strongly agree

b) Agree

c) Neutral

d) Disagree


8. Customer care services of current mobile service provider are of high quality which

resist in switching

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a) Strongly agree

b) Agree

c) Neutral

d) Disagree


9. Brand Image has persuaded you to stay with the current mobile service provider

f) Strongly agree

g) Agree

h) Neutral

i) Disagree

j) Strongly disagree

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