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MARKETING IMAGE MANAGEMENT FOR A LOCAL PAGING COMPANY:
ITS DESIGN, MEASUREMENT AND IMPLEMENTATION
by
YU YAT-WAH
MBA PROJECT REPORT
Presented to
The Graduate School
In Partial Fulfilment
of the Requirements for the Degree of
MASTER OF BUSINESS ADMINISTRATION
TWO YEAR MBA PROGRAMME
THE CHINESE UNIVERSITY OF HONG KONG
May 1992
I ^ j ^ I I T Y S
Advisor
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ABSTRACT
The paging industry is becoming very competitive in Hong Kong in the 1990s.
Companies are offering similar products and services to their customers. As a result,
marketing image is one of the most important differentiation factors for a company
to stand out from its competitors. This research studied the marketing image of
Telecom Paging Limited through consumer research. The findings are compared to
that of its major competitor. New World Paging. In order to give a more detailed
analysis, the actual and perceived images are also con^j-ed
A total of 109 questionnaires were completed. Eleven product attributes were
found to be important in evaluating the company image after interviews with the
Telecom Paging senior staff. The research showed that there was a neutral or no
image among the studied companies. For the comparison between the actual and
perceived image, an image gap analysis was conducted. Based on the image gap
analysis, the researcher tried to recommend a marketing strategy that would bring
the company back to its desired image.
• • • 111
TABLE OF CONTENTS
ABSTRACT ii
TABLE OF CONTENTS iii
LIST OF TABLES v
UST OF FIGURES vi
ACKNOWLEDGEMENTS vii
CHAPTER
1. INTRODUCTION 1
2. MARKETING IMAGE STUDY FOR TELECOM
PAGING LIMITED 3 Market Situation of the Paging Industry 3 Marketing Strategy 6 The Target Company - Telecom Paging Ltd. 11 Research Objective 12
3. LITERATURE REVIEW 13
4. RESEARCH METHODOLOGY 19 Exploratory Study 19 Descriptive Research 20
5. LIMITATIONS 24
6. RESULTS 26 Demographic Characteristics of the Respondents 26 Media Through Which Respondents Became Aware of Telecom Paging and New World Paging 29 Top of Mind Paging Companies 31 Mean Score of Each Attribute 32 Mean Importance of Each Attribute 35
7. IMAGE GAP ANALYSIS 37 Telecom's Image versus New World's Image 40 Actual Image versus Perceived Image 44
iv
8. RECOMMENDED MARKETING STRATEGY FOR TELECOM PAGING LIMITED 49
9. CONCLUSION 56
BIBLIOGRAPHY 58
APPENDICES 60
V
LIST OF TABLES
TABLE 1 Growth Rate of Pager Users 5
TABLE 2 Market Share of Paging Companies 5
TABLE 3 User/Potential User Profile of the Respondents 27
TABLE 4 Sex of Respondents 27
TABLE 5 Age of Respondents 28
TABLE 6 Occupation of Respondents 28
TABLE 7 Income of Respondents 28
TABLE 8 Media Through Respondents Became Aware of Telecom Paging 29
TABLE 9 Media Through Which Respondents Became Aware of
New World Paging 30
TABLE 10 Awareness of Paging Companies by Respondents 31
TABLE 11 Mean Score of Each Attribute 32
TABLE 12 Attitude Rating of Telecom Paging
(Percentage Distribution) 33
TABLE 13 Attitude Rating of New World Paging
(Percentage Distribution) ‘ 34
TABLE 14 Mean Importance Score of Each Attribute 36
TABLE 15 Total Attitude Scores for Telecom Paging and New World Paging 38
TABLE 16 Direct Rating Scale: Perceived Importance and Images 41
TABLE 17 Actual Image versus Perceived Image 44
vi
LIST OF FIGURES
FIGURE 1 Bipolar Mapping : Image of Telecom Paging and
New World Paging 40
FIGURE 2 Importance and Image Mapping : Telecom Paging 42
FIGURE 3 Prescriptions for Management Actions 43
FIGURE 4 Actual and Perceived Product Technology 46
• • Vll
ACKNOWLEDGEMENTS
I would like to take this opportunity to thank those who helped me in
completing the research. Firstly, I give my sincere thanks to my friends Miss Jenny
Tarn and Mr. Willy Hung. They helped me in preparing the on-street interviews and
data inputing.
I am indebted to Mr. Billy Cheung, the Sales Director of Telecom Paging
Limited who gave generously of his time in discussing the related issues concerning
this research.
Finally, I would like to express my special thanks to my advisor, Dr. Julie H.
Yu, for her insightful suggestions and guidelines. Her patience and encouragement
during the course of the research helped me to solve many difficulties and I am
greatly benefited from her knowledge and talents.
Marketing Image Management: Telecom Paging Limited Page 1
CHAPTER 1
INTRODUCTION
The concept of image has long been an interesting topic in the marketing
field. There is a good deal of literature which addresses the concept , as well as the
method of measuring it. However, the image concept was not widely used by
marketing practitioners because of the intangible nature of the subject and difficulty
in measuring it. The research conducted here is inspired by the article by Barich and
Kotler on marketing image management . The authors clarified the concept of
image and developed a framework for marketing image management. The major
difference between their framework and other literature on image studies is that the
former focuses on the managerial decision in measuring the image. The objective of
the framework is to help companies develop a good image in the customer's minds.
The choice of the paging industry as the object of study is also not a
coincidence. The communication business of Hong Kong is expanding at an
unprecedented rate in the 1990s. The number of paging companies, as well as the
iFor example, John G. Myers, Consumer Image and Attitude (Institute of Business and Economic Research, University of California, Berkeley, 1969) presented a comprehensive overview of the concept of image; Elinor Selame and Joe Selame, The Company Image : Building Your Identity and Influence in the Marketplace (John Wiley & Sons, 1988) illustrated how company image can be a competitive tool for success in the marketplace; and Li Chi Hung, "Image Measurement of Four Supermarkets Chains in Hong Kong" (Unpublished MBA thesis, University of Hong Kong, 1983) applied the image concept to Hong Kong supermarkets.
^Howard Barich and Philip Kotler, "A Framework for Marketing Image Management," Sloan Management Review. Winter, 1991, pp.94-104.
Marketing Image Management: Telecom Paging Limited Page 2
demand for paging services, are increasing very fast. The market situation is
competitive but its attractiveness is also high. As a result, customers are choosing
among the diversified products and services of different companies. Understanding
the decision making process and the consumers' perceptions of the company become
an important job for all senior executives.
As a result, these two subjects are then a perfect match. This research is
aimed at applying the marketing image concept in a local paging company. It is
hoped that the marketing image management system can help the company, not only
to gain a competitive advantage over its competitors in the paging industry, but at
the same time to attract new customers and satisfy existing customers.
t •
Marketing Image Management: Telecom Paging Limited Page 3
CHAPTER 2
MARKETING IMAGE STUDY FOR TELECOM PAGING LIMITED
A« Market Situation of the Paging Industiy
Paging services were introduced to Hong Kong about 20 years ago. During
these 20 years, the market situation has changed a lot . With the increasing demand
for telecommunication services, the industry witnessed a boom in the 1990s. The
number of paging companies has grown to 23 companies. The booming of the paging
industry is aided by the following factors :
a. The growing economic condition of Hong Kong requires
fast communication. The pager is a good and inexpensive
solution for many people.
b. A pager is also a good complement to the mobile
telephone. People are using mobile phones and pagers at
the same time to achieve maximum efficiency. According
to some statistics, about 70% of mobile phone users are
pager users. This shows the close relationship between
these two forms of communications.
^For a brief history of the paging industry in Hong Kong, see "The Competitive Strategy of the Paging Companies," (in Chinese) Capital. Sept. 1991,pp.104-106.
Marketing Image Management: Telecom Paging Limited Page 4
The CT2 (Cordless Telephone Second Generation)
system^ a one way mobile phone with which the owner
can only dial out within a particular calling post
established elsewhere in Hong Kong, is particularly useful
when the system is used in conjunction with the pager.
Since the price of the CT2 is relatively cheaper than that
of the mobile phone, the market is expected to have a
great demand for the product. As a result, new and
existing companies are targeting on this market since it
will facilitate a large client base for them.
c. The pager is no longer considered as a product used only
by "bad" people. In the past, there was a general belief
that only people employed in illegal businesses would have
pagers. For example, if a girl has a pager, people will
think that she is working in a night club. However, as
attitudes have changed, people now think that pagers are
very convenient products for communicating and keeping
in touch with others. As a result, many women and young
people have their own pagers now. It greatly enlarges the
market potential of the industry.
4For a brief overview of the CT2 system and technology, see Nick Ingelbrecht, “ CT2 - A Brief Review," Hong Kong Business. August 1991,pp.44-48.
Marketing Image Management: Telecom Paging Limited Page 5
At present, there are about 760,000 pager users in Hong Kong. The growth
rate of the paging industry is about 20% (Table 1). Hutchison, Star and ABC are the
leaders of the industry (Table 2). To conclude, the market of pager is very attractive
and competitive.
Table 1 Growth Rate of Pager Users 、
Year Number of Pagers Growth Rate
w
12/82 164,101 N/A 12/83 166307 +134 12/84 205,010 +23.27 12/85 219,164 + 6.90 12/86 287,356 +31.11 12/87 376,843 +31.14 12/88 486,640 + 29.14 12/89 594,216 + 22.11 12/90 711,420 +19.72 5/91 761,257 + 7.01
Source : Hong Kong Government, Post Office
Table 2 Market Share of Paging Companies
Company No. of users Market Share
w
Hutchison 300,000 40 Star 150,000 20 ABC 110,000 14 CSL 60,000 8 Telecom 40,000 5 Others 100,000 13
TOTAL 760,000 100
Source : Individual paging companies
Marketing Image Management: Telecom Paging Limited Page 6
B. Marketing Strategy
As mentioned above, the market situation of the paging industry is very
competitive. In order to give an overall picture of the existing marketing strategies
employed by different paging companies, a brief analysis of marketing strategies will
be presented:
a. High End Market - this strategy is employed by the market
leader, Hutchison Paging. Hutchison Paging positioned itself as
a company which provides a reliable paging service and a
technologically sophisticated pager. As a result, the price of the
pager is relatively more expensive than its competitors. On the
other hand, in order to reinforce the high end image, Hutchison
Paging has extensive advertisements on local TV networks.
Recently they have been promoting the pager for family usage in
order to increase the number of potential customers.
b. Low End Market - this strategy is employed very well by another
market giant, Star Paging. Star Paging is the pioneer of
introducing the "$10 rent-a-pager" service. This is a service that
enables the user to pay a $10 dollar rental fee to rent a pager
instead of buying the pager. Besides, the price of the pager and
some special service fees are cheaper than those of its
Marketing Image Management: Telecom Paging Limited Page 7
competitors. The company also has the widest distribution
network in Hong Kong. As a result, it can capture a large
proportion of the lower end pager user.
c. Service Innovation Strategy - This strategy is employed by several
paging companies because it is a very good way to differentiate
itself from its competitors. The pioneer in this strategy is New
World Paging. New World Paging was first in introducing a
service called "Personal Secretarial Service". In using the service,
users can have their own line (this is a direct line for the user
with no need to call a personal code number). When people dial
the number, the operator will answer as if she were the user's
personal secretary. After receiving the information, the operator
will call the user through the pager, or forward the call to the
user's assigned telephone. The main feature of this service is its
personal contact and call forwarding functions. This kind of
service attracted much attention from the market. Many
companies like Telecom Paging, ABC Paging, Star Paging and
Epro Paging are now providing this service.
Other areas of service innovation include the
King-Phone by Star Paging and the Hong Kong-China
Roaming Paging Service by Telecom Paging and CSV.
^Hong Kong Economic Journal. 4th January, 1991, p.9.
Marketing Image Management: Telecom Paging Limited Page 8
d. Product Innovation Strategy - This strategy is also employed by
many companies. However, this strategy cannot greatly
differentiate the company from its competitors because of the
similar technological level. Epro is the first to introduce a second
generation pager. The size of the pager is approximately two-
thirds the size of a credit card. Other products like credit card-
like and pen-like pagers are introduced to meet the different
need of customers.
After discussing the different marketing strategies employed by different
companies, it is now helpful to evaluate the marketing mix of the paging industry.
i. Promotion mix. Many large companies like Hutchison Paging,
ABC Paging, Star Paging, New World Paging and Chevalier
Paging have large scale promotional campaigns on television and
radio, and in newspapers and magazines.
ii. Product. The source of the pager is different. Hutchison is the
sole agent of Panasonic (Japan) and Motorola (USA). Besides
this, there are two main sources of the product. The first is using
some foreign brands like NEC(Japan), Casino(Japan) or
Ericssion (Sweden). Companies like Chevalier, New World,
Telecom and ABC are using these products. The second source
Marketing Image Management: Telecom Paging Limited Page 9
comes from PRC and locally. Star Paging has a large
manufacturing plant in PRC and Epro is also using products with
its own brand name.
iii. Distribution. Only large companies like Star, ABC, Hutchison,
Chevalier and New World have their own shops. Other
companies will use agents or other distribution networks like
convenience stores or telecommunication shops to attract
customers or as payment centres. For example, Epro uses Circle
K convenience stores as payment centres.
iv. Price. Price becomes a critical factor with an increasing number
of firms entering the market. Because of the competitive
environment, different companies use different marketing tactics
to attract new users and facilitate brand switching. There was a
price war in 1991 among these large companies. Some companies
like Chevalier had introduced a package that would give the
pager free of charge if the client paid 6 month service fees in
advance. Other companies followed with similar packages.
Besides the major players, there are many other small paging companies
operating in Hong Kong. They do not have their own shops and are relying on some
agents or telecommunication shops for distribution. Besides, direct sales calls are
Marketing Image Management: Telecom Paging Limited Page 10
also commonly used by these companies. Their marketing strategies are mainly
focused on price. They will lower the price of the pager or service fees to attract
users. No promotional activities except direct sales calls are offered.
Marketing Image Management: Telecom Paging Limited Page 11
C. The Target Company - Telecom Paging Ltd.
Telecom Paging Limited was found in 1974 by the Cheung family. At present,
it is the fifth largest paging company in Hong Kong after Hutchison Paging, Star
Paging, ABC Paging and CSL Paging. Telecom Paging has about 40,000 clients. The
marketing mix of Telecom Paging is as follows :
a. Product - pager comes from NEC (Japan)
b. Distribution - it has twenty shops and 30 salespersons
c. Price _ set at medium level, not premium pricing
d. Promotion - remains low profile, mainly through print
advertisements
Seeing a large market potential for the personal secretarial service, Telecom
has been shifting its focus from a conventional paging service to personal secretarial
service. Besides, Telecom also introduced the China-Hong Kong Paging Service,
which provides roaming paging service between China and Hong Kong.
Telecom Paging is preparing to launch a major promotional campaign in
1992. Its major competitor is New World Paging, a newly established paging
company which is focusing its business in the Personal Secretarial Service and is in
direct competition with Telecom Paging.
Marketing Image Management: Telecom Paging Limited Page 12
D. Research Objective
The objective of the research is to develop a marketing image management
system for Telecom Paging Ltd. The marketing image management system is a
system of collecting, analyzing, and acting on information that describes how
different publics view key attributes of the company's performance. In this research,
the image of the customers towards the target company will be tracked. The findings
will be compared to a) the image of its major competitor and b) the ideal or desired
image. The reason of comparing New World Paging only is that New World Paging
provide similar service and target on the same market. The objectives of the study
are summarized as follows:
i. to investigate the attributes that are most important to customers'
purchase decision
ii. to track the company image
iii. to compare the perceived image with that of its major competitor
iv. to design and develop a marketing image management system for
Telecom Paging Ltd.
Marketing Image Management: Telecom Paging Limited Page 13
CHAPTER 3
LITERATURE REVIEW
It is generally agreed that a company does need an "image" to sustain its
development, and a good image will certainly provide the company with a
competitive edge. Modern companies are very concerned about how people perceive
their companies and brands. However, few of them do systematic studies on a
regular basis. Besides, they believe that advertising or communication means are the
only ways to establish a desired image in the mind of their customers . This view
results in a heavy reliance on the advertising or communication media in conveying
their image.
However, to be a market-driven company, it must provide what its customers
want. Therefore, the image is not what the company believes it to be, but rather the
feelings and beliefs about the company that exist in the minds of the audience and
which arise from observation and experience. This observation or experience is
generated by what the brand or company offers. Therefore, the company with a good
image is the company which can give its customers satisfactory offers in its marketing
mix.
^Alan Topalian, "Corporate Identity: Beyond the Visual Overstatements," International Journal of Advertising. Vol.3, 1984, pp.55-62.
Marketing Image Management: Telecom Paging Limited Page 14
This section will first discuss the various concepts related to the marketing
image by reviewing the relevant literature.
a. Corporate Personality
Corporate personality, to a certain extent, is the culture of the organization.
This guides how the organization behaves. Bernstein observed that corporate
personality does not "grow" in exactly the same way as human personality does?, for
two reasons:
i. It has more influences that act to influence and modify the
unique personality, e.g., colleagues, customers, suppliers
and market.
ii. There is far greater degree of control over a corporate
personality. Corporate personality can be determined
before the company is formed by deciding on what is to be
done, what it shall believe in, and how it shall operate all
the factors which constitute a corporate personality.
^D. Bernstein, Company Image and Reality: A Critique of Corporate Communications (Eastbourne, Holt, Rhinehart & Winston Ltd., 1984).
Marketing Image Management: Telecom Paging Limited Page 15
b. Corporate Identity
Olins proposed that a sense of identity is natural and necessary to every social
group®. He also stressed that in order to be effective, every organization needs a
clear sense of purpose that people within it can understand . Therefore, corporate
identity is how the company behaves from its own personality. A company can
present its identity in its mission statement. There are four main areas of the
corporate identity :
Product/Service - what you make or sell
Environment - where you make or sell it
Information - how you describe and publicize what you do
Behaviour - how people within the organization
behave toward each other and toward
outsiders
Therefore, corporate identity is an aggregate of the above areas, by which an
audience can recognize the company and distinguish it from others, and which can
be used to represent or symbolize the company.
Q ^ ^
Waly Olins, The Corporate Personality : An Inquiry into the Nature of Corporate Identity (London: Design Council, 1979).
^ a l y Olins, Corporate Identity : Making Business Strategy Visible Through Design (Harvard Business School, 1989).
Marketing Image Management: Telecom Paging Limited Page 16
c. Corporate Image
Bernstein stressed that the corporate image is not what the company believes
itself to be, but rather the feelings and beliefs about the company that exist in the
minds of its audience, which arise from experience and observation ®.
The subdivisions of the corporate image include :
i. Product image • the way people view a particular category
ii. Brand image - the way people view a particular brand that
is in competition with other brands.
d. Marketing Image :
The above three concepts are widely used in the marketing literature in
describing the concept of "image". However, these concepts may not be adequate for
us to understand the functions of the "image" for two reasons:
i. the corporate image concept can only give an overall
impression of the customers towards the company without
knowing the weak or strong aspects of its marketing mix
in comparison to those of its competitors, and
l Bernstein, op.cit.
Marketing Image Management: Telecom Paging Limited Page 17
ii. it is difficult for the managerial level of the company to
track and manage its image systematically.
As a result, Barich and Kotler proposed the concept of marketing image: the
way people view the quality of the company's overall marketing offer and marketing
.11 mixu.
The marketing image shall include the marketing factors of product, price,
sales force, distribution channels, communications, service, and support in different
product and brand categories. Barich and Kotler also stressed that a good corporate
image may not contribute much to the company, especially if the company suffers
from poor marketingi2. Therefore, a good marketing image is very important to the
company's success. Marketing image management is simply a management system
for the marketing image of a company. It includes four main processes :
a) design
b) data collection
c) image gap analysis
d) image modification actions and tracking
^^Barich and Kotler, op.cit. 12 ibid., p.96.
Marketing Image Management: Telecom Paging Limited Page 18
The main advantage of this image tracking and management system are that
(1) the company can detect unfavourable image shifts early, before they hurt the
company; (2) the company can identify key areas where its performance lags behind
its competitors and work to strengthen those areas, and (3) the company can identify
key areas where it outshines its competitors and can capitalize on those strengths.
Marketing Image Management: Telecom Paging Limited Page 19
CHAPTER 4
RESEARCH METHODOLOGY
A. Exploratory Study " In-depth Interview with the Target Company
The researcher interviewed the target Company, Telecom Paging Ltd. After
discussions with the senior executive of the company, he was able to identify:
i. the company's existing marketing strategy
ii. the company's major competitors
iii. the attributes that are most influential in purchase
decisions
iv. the existing market environment and the strength and
position of the company
From this interview, the researchers was able to identify 11 attributes that the
senior management of Telecom Paging considered as important. They were:
a. Product Technology
b. Pager Appearance
c. Price of Pager
d. Service Fees
Marketing Image Management: Telecom Paging Limited Page 20
e. Reliability of Service
f. Courtesy of Operators
g. Store Locations
h. Sales Personnel's Knowledge
i. Promotion Activity
j. Signal Coverage
k. Maintenance Service
The researcher also identified the major competitor of Telecom Paging is
New World Paging, since this company provides similar paging services.
B. Descriptive Research
1. Survey population
For reasons of resource constraints (i.e, finance, time, manpower, etc.), it was
not possible to survey the entire population. Rather, people walking into the MTR
stations were studied. It deliberately included MTR stations in both industrial and
commercial areas. The MTR stations located in the commercial areas were Central
and Tsimshatsui. For the industrial area, the Kwun Tong MTR station was chosen.
The reasons for choosing these three stations were their high flow of passengers and
representativeness of the industrial and commercial areas.
Marketing Image Management: Telecom Paging Limited Page 21
2. Sample size
It is too costly and impossible to investigate the entire population. As a result,
the method of sample size determination of probability sampling was used for
calculating the sample size of this research. The total sample size was 119. This was
the largest sample size required for the research, which involves sample proportion
estimation, at 95 percent confidence with E(error) not greater than 9 percentage
points, (see Appendix 3 for sample size calculation)
3. Sampling procedure
Nonprobability convenience sampling was used. The survey was conducted on
Friday (from 9:00 a.m. to 5:30 p.m.) and Saturday morning (from 8:30 a.m.-
1:30p.m.). The researchers randomly selected persons, who were aged over 16, at the
entrances of the Central, Tsimshatsui, and Kwun Tong MTR stations.
4. Method of Data Collection
Five researchers were responsible for the data collection. Four of them were
female and one was male. They were divided into 3 groups (two groups of 2 persons
each, and one group with only one person). Each group was assigned to one of the
Marketing Image Management: Telecom Paging Limited Page 22
three MTR stations mentioned above. The researchers randomly asked people over
16 passing by the MTR stations to complete a questionnaire (see Appendix 1 and
2). If he/she refused, the interviewer asked another person. The interviewers first
asked the screening questions in Section One of the questionnaire. The interview
proceeded when the respondent passed the screening questions.
5. The Questionnaire
The questionnaire used in this survey was divided into three sections. The
English and Chinese versions of the questionnaire are shown in Appendix 1 and 2,
respectively.
i. Section One contains the screening questions and some
background information. The purpose of the screening question
is two-fold: a) to make sure that the respondent is a pager user
or potential user and b) to make sure the respondent is aware of
Telecom Paging and New World Paging. After the screening
questions, the researcher asked three questions about the
background knowledge of the respondent. «
ii. Section Two is the main part of the questionnaire. It is used to
find out the respondent's attitude towards different attributes of
Marketing Image Management: Telecom Paging Limited Page 23
the two paging companies. There are a total of eleven statements
which can be divided into the categories of product, price,
distribution, communication and support. Besides, there is an
importance rating question to find out the relative importance of
different attributes.
iii. Section Three consists of the demographic details of the respondent.
Marketing Image Management: Telecom Paging Limited Page 24
CHAPTERS
LIMITATIONS
There are several limitations in this research; they include:
a. Bias will occur when choosing the sample, since a convenience
sample was employed. Firstly, the locations of the MTR stations
and the respondents interviewed at these stations may not fully
reflect the profile of the target population. Secondly, it is not a
probability sample. It is under the researchers,control, and this
may introduce some personal bias in the choice of respondents.
b. Researcher bias in asking the respondent questions may exist, as
the way of conducting the interview may have induced the
respondent to have different responses. Besides, the respondent
may also have misinterpreted the questions raised.
c. Among 109 respondents, only 27 were potential users. It was
difficult to find a large number of potential users because of the
resources available. As a result, it was not possible to conduct a
separate analysis of the potential users,image of the target
companies.
Marketing Image Management: Telecom Paging Limited Page 25
‘ d . Besides the limited number of potential users, the researchers
only successfully interviewed twenty females. Therefore, for the
same reason as mentioned above, a separate analysis of the
female group was not possible.
e. Based upon the limited sample size, one cannot draw direct
inferences for the general population. As a result, the image
tracked in the research may not be that of the target population.
f. For convenience purposes during analysis, the statements in
Section Two of the questionnaire were converted into attributes.
This conversion may not directly reflect the true perception of the
respondents in agreeing or disagreeing with the statements.
I
Marketing Image Management: Telecom Paging Limited Page 26
CHAPTER 6
RESULTS
A. Demographic Characteristics of the Respondents
The researchers successfully interviewed 109 respondents at the selected MTR
stations. Among the 109 respondents, 89 were male and 20 were female. There were
82 existing users and 27 potential users.
With respect to age, a high percentage of respondents (41.3 %) were in the
16-25 age group while 33 percent of respondents were within the 26-35 age group.
About 22 percent of respondents were aged 36-45. Only 3.7 percent were 45 or
above.
The occupations of the respondents were quite evenly distributed.
Sales/Marketing (24.8%) and Executive/Manager( 18.3%) were the two occupations
that had the highest percentages. This shows that there may have been some
correlations between the occupations and the use of pagers. One point which needs
to be mentioned here is that 6.4 % of those using or potentially using pagers were
students. This was not a small number when compared with the other occupations.
Marketing Image Management: Telecom Paging Limited Page 27
The majority (53.2%) of the respondents belonged to the $6,000 to $15,999
monthly personal income group.
The demographic data are summarized in Tables 3 to 7.
Table 3 User/Potential User Profile of the Respondents
Frequency Percent
User 82 75.2
Potential User 27 24.8
TOTAL 109 100
Table 4 Sex of Respondents
Sex Frequency Percent
Male 89 81.7
Female 20 183
TOTAL 109 100
Marketing Image Management: Telecom Paging Limited Page 28
Table 5 Age of Respondents
Age Group Frequency Percent
16-25 45 413 26-35 36 33.0 36-45 24 22.0 45 or above 4 3.7
TOTAL 109 100
Table 6 Occupation of Respondents
Occupation Frequency Percent Professionals 9 83 Executive/Manager 20 18.3 Clericals 17 15.6 Sales/Marketing 27 24.8 Service 14 12.8 Manufacturing 9 83 Student 7 6.4 Others 6 5.5
TOTAL 109 100
Table 7 Income of Respondents
Income Frequency Percent Less than $6,000 32 293 $6,000-$15,999 58 53.2 $16,000-25,999 15 13.8 Above 26,000 4 3.7
TOTAL 109 100
Marketing Image Management: Telecom Paging Limited Page 29
B. Media Through Which Respondents Became Aware of Telecom Paging and
New World Paging
From Tables 8 and 9, a large percentage (66.1%) of respondents became
aware of Telecom through TV/Print advertisements, while a similar percentage
(62.4%) of respondents became aware of New World Paging through the same
media. However, Telecom Paging only employed print advertisements in promoting
the company, while New World had organized a large TV campaign. As a result, the
efficiency of the print advertisement in achieving that high reach (66.1%) of Telecom
Paging was questionable.
Furthermore, many respondents (29.4% for Telecom and 26.6% for New
World Paging) became aware of the two companies through the medium of friends.
It may be very interesting to these companies to know that word-of-mouth is quite
important in the paging industry.
Table 8 Media Through Which Respondents Became Aware of Telecom Paging
Media Frequency Percent
TV/Print Ad. 72 66.1 Friends 32 29.4 Shops/Billboards 19 17.4 Promotion Counters 10 9.2 Sales Persons 2 1.8 Others 4 3.7
Marketing Image Management: Telecom Paging Limited Page 30
Table 9 Media Through Which Respondents Became Aware of New World Paging
Media Frequency Percent
TV/Print Ad. 68 62.4 Friends 29 26.6 Shops/Billboards 14 12«8 Promotion Counters 15 4.6 Sales Persons 1 0.9 Others 1 0.9
Marketing Image Management: Telecom Paging Limited Page 31
C. Top of Mind Paging Companies
The findings showed that the "big three" in the paging industry were also the
3 top of mind companies of the respondents. Hutchison Paging (77.1%), Star Paging
(64.2%) and ABC Paging (52.3%) were well known to the respondents. It was
interesting to note that Chevalier Paging, which was just established in 1991, had
already achieved 36.7% top of mind awareness from the respondents. This was
because the company launched an intensive advertising campaign in different media.
The top of mind awareness of Telecom and New World Paging was not tracked here
because all respondents were aware of the two companies.
Table 10 Awareness of Paging Companies by Respondents
Company Frequency Percent
Hutchison Paging 84 77.1 ABC Paging 57 523 Star Paging 70 64.2 BB Telecom 20 183 Telepaging 3 2.8 CSL 20 183 Asia Paging 5 4.6 Chevalier Paging 40 36.7
Marketing Image Management: Telecom Paging Limited Page 32
D. Mean Score of Each Attribute
For the ease of data analysis, the statements asked in the personal interview
were converted into some corresponding attributes for image tracking. The score of
each attribute was then averaged, as shown in Table 11. Sampling statistics were
used to test the differences between the two means to see whether they were large
enough to be considered statistically significant. The confidence interval is set at
95%.
Based upon these tests, none of the differences in mean attribute ratings were
statistically significant; i.e., we could not draw the conclusion that there were
differences between the two companies with respect to these eleven attributes.
Table 11 Mean Score of Each Attribute
Attribute Telecom New World
Product Technology 3.3 3.5 Pager Appearance 3.2 3.3 Price of Pager 3.1 3.2 Service Fee 3.0 3.1 Reliability of Service 2.9 3.5 Courtesy of Operators 3.1 3.6 Store Locations 2.9 2.9 Sales Persons’ Knowledge 3.0 3.2 Promotion Activity 2.8 3.2 Signal Coverage 2.9 3.4 Maintenance Service 3.0 3.0
These attributes are converted from the statement rated based on a scale of 1 to 5’ where 1 is strongly disagree and 5 is strongly agree. The scores are then averaged.
Marketing Image Management: Telecom Paging Limited Page 33
It should be noticed that respondents scoring at the midpoint are significantly
greater than those scoring at other scale points (see Tables 12 & 13). This central
tendency of the rating did suggest that both companies had a neutral image or no
image at all .
Table 12 Attitude Rating of Telecom Paging (Percentage Distribution)
Attribute % 1 2 3 4 5 TOTAL
Product Technology 2.8 5.5 49.5 40.4 1.8 100 Pager Appearance 1.8 13.8 50.5 33.0 0.9 100 Price of Pager 0.0 17.4 58.7 23.9 0.0 100 Service Fee 3.7 12.8 63.3 202 0.0 100 Reliability of Service 0.9 24.8 532 21.1 0.0 100 Courtesy of Operators 0.0 15.6 58.7 25.7 0.0 100 Store Locations 0.9 17.4 69.8 11.9 0.0 100 Sales Persons' Knowledge 0.0 11.0 77.1 11.9 0.0 100 Promotion Activity 3.7 22.9 66.1 7.3 0.0 100 Signal Coverage 0.9 26.6 56.9 15.6 0.0 100 Maintenance Service 0.9 10.1 73.4 15.6 0.0 100
P.H.G. McDougall and J.N. Fry, "Combining Two Methods of Image Measurement," Journal of Retailing. Vol. 50, No.4, Winter 1974-5, p.55.
Marketing Image Management: Telecom Paging Limited Page 34
Table 13 Attitude Rating of New World Paging (Percent Distribution)
Attribute % 1 2 3 4 5 TOTAL
Product Technology 0.0 4.6 55.0 29.4 11.0 100 Pager Appearance 0.0 83 61«5 20.1 10.1 100 Price of Pager 0.0 9.2 66.1 21.0 3.7 100 Service Fee 3.7 7.3 69.7 19.3 0.0 100 Reliability of Service 5.5 56.9 22.9 14.7 0.0 100 Courtesy of Operators 2.8 56.9 21.1 19.2 0.0 100 Store Locations 3.7 15.6 67.9 12.8 0.0 100 Sales Persons' Knowledge 3.7 80.7 11.0 4.6 0.0 100 Promotion Activity 2.8 11.0 58.7 16^ 11.0 100 Signal Coverage 0.0 7.3 59.6 21.2 11.9 100 Maintenance Service 2.8 11.0 74.3 10.1 1.8 100
Marketing Image Management: Telecom Paging Limited Page 35
E. Mean Importance of Each Attribute
The importance of each attribute was included in the survey based on the
multi-attribute model to show the weight of each attribute in the respondent's mind.
Among the eleven attributes (Table 14), the five most important attributes were (in
order of importance):
1. Reliability of Service
2. Signal Coverage
3. Courtesy of Operators
4. Product Technology
5. Maintenance Service
The findings showed that respondents were very concerned about the
reliability of the service and the signal coverage. The attribute "Courtesy of the
Operators" was rank third, perhaps because of the increasing demand by the
customers for better service.
Respondents seemed to see attributes like "Store Locations", "Sales Persons'
Knowledge" and "Promotion Activity" as relatively unimportant. This might infer that
customers expect a good and reliable paging service rather than some "external"
factors like location and promotional activities.
Marketing Image Management: Telecom Paging Limited Page 36
Table 14 Mean Importance Score of Each Attribute
Attribute Perceived Importance
Product Technology 4.0 Pager Appearance 3.4 Price of Pager 3.6 Service Fee 3.6 Reliability of Service 4.5 Courtesy of Operators 4.2 Store Locations 3.1 Sales Persons, Knowledge 3.3 Promotion Activity 3.3 Signal Coverage 4.3 Maintenance Service 3.8
The importance scores are rated on a scale of 1 to 5, where 5 is strongly important. The scores are then averaged.
Marketing Image Management: Telecom Paging Limited Page 37
CHAPTER 7
IMAGE GAP ANALYSIS
Although there is a central tendency for the rating of each attribute, it is still
worthwhile to look at different ratings which contributed to the image of Telecom
Paging, as compared to that of New World Paging. In fact, the above analysis of the
image and the perceived importance are based largely on the multi-attribute
modeli4:
Aj = E liBij 2 = 1
where Aj : attitude toward brand j
Ij : importance weight given attribute i
Bjj : belief as to the extent to which
attribute i is offered by brand j
n : number of attributes
^^William L. Wilkie and Edgar A. Pessemier, "Issues in Marketing's Use of Multi-Attribute Attitude Models," Journal of Marketing Research. Vol. 10,November 1973, pp.428-441; James R. Bettman, Noel Capon and Richard J. Lutz, "Cognitive Algebra in Multi-Attribute Attitude Models," Journal of Marketing Research. Vol.12, 1975, pp.151-164.
Marketing Image Management: Telecom Paging Limited Page 38
Based on Tables 11 and 14, the total attitude scores for Telecom and New
World Paging are as follows:
Table 15 Total Attitude Scores for Telecom Paging and New World Paging.
Attribute Telecom New World
Product Technology 13.20 14.00 Pager Appearance 10.88 11.22 Price of Pager 11.16 11J2 Service Fee 10.80 11.16 Reliability of Service 13.05 15.75 Courtesy of Operators 13.02 15.12 Store Locations 8.99 8.99 Sales Persons' Knowledge 9.90 10«56 Promotion Activity 9.24 10J6 Signal Coverage 12.47 14.62 Maintenance Service 11.40 11.40
TOTAL 124.11 134.90
* Attitude scores are perceived importance times the individual rating of each attribute
From Table 15, the total attitude score for Telecom Paging is 124.11, while
the attitude score for New World Paging is 134.90. The multi-attribute model
assumes that a person's perception is a combination of the individual reactions to
the attributes making up the stimulus^ . As a result, marketers can use the model
to determine the customer's overall perception of a particular brand or product.
The marketing image concept mentioned here is adopting the multi-attribute
model. The underlying rationale is to achieve a high image rating on each attribute
that is highly important to its target customers. Therefore, the marketing image
^^Gilbert A. Churchill, Jr., Marketing Research : Methodological Foundations (The Dryden Press, 1991, 5th ed.), pp.461-462.
Marketing Image Management: Telecom Paging Limited Page 39
management system aimed at developing a system to track and improve the image
of different offerings and factors of the company. The approach is to treat each
factor as an individual one, and try to produce the best image to the customers.
Marketing Image Management: Telecom Paging Limited Page 40
A. Telecom's Image versus New World's Image
From the bipolar mapping (Figure 1), the ratings of image on different attributes
are very similar. This showed that in the minds of customers, neither Telecom
Paging nor New World Paging has a comparative advantage over the other in every
aspect of the image rating. As a result, the images of these two companies cannot
influence the purchasing decision or recommendation of one company over the other
to other people.
Figure 1 Bipolar Mapping : Image of Telecom Paging and New World Paging
Telecom New World
Product Technology I 1 1 Ty 1 1
Pager Appearance | 1 1~~ 1 1
Price of Pager I 1 1 1
Service Fee I 1 1 1
Reliability of Service | 1 () ^ 1 1
\ \ Courtesy of Operators h 1 14 1 1
Store Locations I 1 ^ 1 1
I , \、\ I
Salesman's Knowledge | 1 1
Promotion Activity | 1 H ^ 1 1
Signal Coverage | 1 7* 1 1
V ^ Maintenance Service | 1 r 1 1
1 2 3 4 5 Strongly Strongly disagree agree
Telecom New World
Marketing Image Management: Telecom Paging Limited Page 41
Table 16 Direct Rating Scale: Perceived Importance and Images
Attribute Perceived Image Image Importance Telecom New World
Product Technology 4.0 33 3 5 Pager Appearance 3.4 3.2 33 Price of Pager 3.6 3.1 3.2 Service Fee 3.6 3.0 3.1 Reliability of Service 4.5 2.9 35 Courtesy of Operators 4.2 3.1 3.6 Store Locations 3.1 2.9 2.9 Sales Persons'Knowledge 3.3 3.0 3.2 Promotion Activity 3.3 2.8 3.2 Signal Coverage 4.3 2.9 3.4 Maintenance Service 3.8 3.0 3.0
Since there was no significant difference between the images of Telecom Paging
and New World Paging, the question of the differences between the two companies
did not exist However, the findings still had managerial importance, since they
offered insight on the present position of Telecom Paging. The Importance and
Image Moping (Figure 2) showed that the image of Telecom is average for
different attributes. Therefore, Telecom should still follow some prescriptions for
management actions (Figure 3) to improve the image rating of the company. Based
on the actions suggested in Figure 3, Telecom should focus on improving its ratings
and redudng the importance of the attributes.
Marketing Image Management: Telecom Paging Limited Page 42
Figure 2 Importance and Image Mapping: Telecom Paging
1 High 2 Importance
5-
e •
J • f •
4 “ / k i d c •
b i h •
Low g High 春
-H -i ^ i
Image 1 2 3 4 5 Image
2'
1 -
Low
3 Importance 4
Marketing Image Management: Telecom Paging Limited Page 43
Figure 3 Prescriptions for Management Actions
High
2 Importance 1
+ +
• Capitalize on strengths 參 Capitalize on strengths
• Consider improving rating • Use in communications = =
• Consider improving rating • Consider using in communications • Consider improve rating
— —
• Improve rating • Improve rating • Reduce importance • Reduce importance
Low High
Image Image + +
• Consider using in communications • Consider using in communications • Consider improving importance and • Improve importance
rating
= =
• Consider improving importance and • Consider improving importance and rating rating
一華
• Improve rating • Improve rating
Low
3 Importance 4
Taken from Howard Barich and Philip Kotler,"A Framework for Marketing Image Management", Sloan Management Review
Winter 1991, p.l03
\ .
Marketing Image Management: Telecom Paging Limited Page 44
B. Actual Image Versus Perceived Image
In order to generate meaningful recommendations for Telecom Paging based
on the most important attributes in the image map, the analysis will focus on the five
most important attributes mentioned in the previous section. In discussions with the
senior management of Telecom Paging, they profiled the expected image of the
different attributes :
Table 17 Actual Image versus Perceived Image
Important Attribute Actual Image Perceived Image
Product Technology (4.0) High Average Reliability of Service (4.5) High Average Courtesy of Operators (4.2) Average Average Signal Coverage (4.3) Average Average Maintenance Service (3.8) High Average
()represents the average importance rating of that attribute
The reason for Telecom's actual high image on three of the above attributes
is due to its perceived competitive strength over its competitors.
For product technology, Telecom is using the most sophisticated pager from
NEC. Models range from the conventional Numeric Pager to the most sophisticated
Chinese-English Display Pager. However, they claimed that the models which New
World Paging used were not of the latest technology. Therefore, they are confident
about having a good image on this attribute.
Marketing Image Management: Telecom Paging Limited Page 45
For reliability of service, Telecom is equipped with the latest computer system
from the U.S., which can handle messages quickly and accurately. Besides, the
operators are well-trained in receiving calls and forwarding messages to the users.
For maintenance service, Telecom claimed that it could repair the pager with
high efficiency. Pagers normally could be repaired within hours. This was
unmatchable by New World Paging.
Based on the above analysis, the actual and perceived images will be
compared, and management proposals will be made. Detailed analysis of the
recommended strategy will be discussed in the next chapter. Product technology will
be used to illustrate the action required (Figure 4):
Marketing Image Management: Telecom Paging Limited Page 46
Figure 4 Actual and Perceived Product Technology
Actual Product Technology
High Average
1 2
High Perception : True Perception : False
Action : Compare with Action : Improve product
competitors technology
Perceived Product
Technology 3 4
Average Perception : False Perception : True
Action : Demonstrate product Action : Improve product
technology technology
Modified from Howard Barich and Philip Kotler, "A Framework for Marketing Management," Sloan Management Review.
Winter 1991, p.l03.
Based on the above matrix, the actual product technology of Telecom is high.
However, the perceived product technology is only average. Quadrant 3
demonstrates that the perception of the product technology is false. The suggested
action for the Telecom is to demonstrate product technology to the customers.
Marketing Image Management: Telecom Paging Limited Page 47
The above comparison between perceived and actual images of different
attributes is very useful in tracking the perceived image and suggesting proper action
for management to implement. The other four attributes can also be applied here:
i. Reliability of Service :
Actual Reliability : High
Perceived Reliability of Service : Average
Perception : False
Action : Demonstrate Reliability of Service
ii. Courtesy of Operators
Actual Courtesy of Operators : Average
Perceived Courtesy of Operators : Average
Perception : True
Action : Improve Courtesy of Operators
iii. Signal Coverage
Actual Signal Coverage : Average
Perceived Signal Coverage : Average
Perception : True
Action : Improve Signal Coverage
Marketing Image Management: Telecom Paging Limited Page 48
iv. Maintenance Service
Actual Maintenance Service : High
Perceived Maintenance Service : Average
Perception : False
Action : Demonstrate Maintenance Service efficiency
The suggested actions for management were based on a cost-effective
approach, trying to improve the image using a step-by-step procedure. For example,
if the actual and perceived images are both average, the suggested action will be to
improve the performance of that attribute before demonstrating it.
Marketing Image Management: Telecom Paging Limited Page 49
CHAPTER 8
RECOMMENDED MARKETING STRATEGY FOR TELECOM PAGING LIMITED
The objective of the study is to develop a marketing management system to
track the image of the target company. The system will suggest some prescriptions
for management action. These prescriptions set the main directions for the
management to follow, and identify the most important ways to improve and
integrate them into its marketing strateg/、These actions, from the objective of the
management system, are aimed at helping the company to modify the company
image on the attributes that are most influential to the purchasing decision, and also
the areas that fall behind its competitors. The ultimate objective is to establish a
good image within the customers' minds so that the company can better differentiate
from its competitors and also facilitate an intention to buy the products, as well as
recommending them to others.
After examining the image of Telecom Paging Limited and comparing its
image to those of its competitors as well as the desired image, there are several
points that can be summarized here :
^^Edmund R. Gary and Larry R. Smeltzer, “ Corporate Image - An Integral Part of Strategy,“ Sloan Management Review. Summer 1985, pp. 73-78 and “ Planning a Facelift: Implementing a Corporate Image Program, “ Journal of Business Strategy. Vol. 9 No. 1, pp.4-10.
Marketing Image Management: Telecom Paging Limited Page 50
J a. Neutral or no clear image of the company
b. A gap between the perceived and actual image
Corporate Identity - The Foundation of Strategy
Olins stressed that every organization needs a clear sense of purpose in doing
business口. Therefore, a company must have a clear understanding of what it offers »v
and what business it is in. A clear corporate identity can enhance its efforts to
differentiate and reposition its companies. The strategy, then, would be the reflection
and actualization of this corporate identity.
Before setting the marketing strategy for image modifications, Telecom
Paging must first clearly understand its own identity. At present, Telecom Paging
does not clearly define its business. As a result, it does not have a clear corporate
identity. Thus, the company can not determine for itself the image which it wants to
project to its customers.
It is suggested that Telecom Paging should define its business by focusing on
the telecommunications industry, not just the paging industry. Telecom's objective
is to provide a better telecommunications service to meet the customers' demands.
I7waly Olins, Corporate Identity: Making Business Strategy Visible Through Design (Harvard Business School Press. 19891 p.6
Marketing Image Management: Telecom Paging Limited Page 51
Based on the results of the survey, the following marketing objectives are
proposed for Telecom Paging's image program:
1. To increase awareness of the company
2. To improve the marketing image of the company
The first objective is important since this survey found that a large proportion
of the respondents had a neutral or no image of Telecom Paging. As a result, the
company cannot differentiate itself from its competitors. Therefore, Telecom Paging
should put more emphasis on increasing awareness of the company.
The second objective is derived from the image gap between the actual and
perceived image. Although the survey cannot conclude that there is a significantly
difference between the images of the two companies studied, there is a gap between
the actual image and the perceived image. In fulfilling this marketing objective,
Telecom should identify the cost effective areas for improvement. Five important
attributes were identified ,namely, Product Technology, Reliability of Service,
Courtesy of Operators, Signal Coverage and Maintenance Service. The marketing
strategy recommended here will not be based solely on the promotion side of the
company. The process is
Corporate identity -> Marketing strategy -> Marketing image
Marketing Image Management: Telecom Paging Limited Page 52
Therefore, the process is to clearly present the actual identity of the company
through implementation of the marketing mix and to minimize the gap between the
identity and the image.
Marketing Strategy
A three step marketing image program is suggested for Telecom Paging:
A. The Basic Startup
In designing an appropriate marketing strategy, Telecom Paging should clearly
identify its mission by clearly defining its business. The mission of Telecom should
be:
a. to provide a telecommunication service for the target
customers
b. to focus on the secretarial service and cross border
roaming paging services
/
By achieving this mission, Telecom Paging can clearly defined the target
customer, based on a detailed analysis of the strengths of the company. As
mentioned above, Telecom Paging is only a medium size paging company in Hong
Kong. It cannot compete with the market leader in terms of range of services and
Marketing Image Management: Telecom Paging Limited Page 53
promotions. As a result, Telecom should find a "niche" in the paging service, i.e., the
personal secretarial service and cross border roaming service. These services focus
on the higher end market, which needs better paging services.
Customers will have higher expectations of these kinds of services than of the
conventional services. As a result, Telecom should first try to improve the internal
strengths of the company.
B. Improve Internal Strengths
The image of Telecom Paging can be improved in two ways: a) improve
ratings, and/or b) reduce importance. However, since the importance ratings are
more difficult to change than the company ratings, it is suggested that the company
should focus on improving company rating.
Based on the image gap analysis, the strength of Telecom on the attributes
of Courtesy of Operators and Signal Coverage is only average. Telecom should
therefore improve these areas by providing better training for the operators and
setting up more transmission stations.
The rationale behind these suggestions is that the company should have actual
strengths in different areas and not depend entirely on advertising and promotion.
Marketing Image Management: Telecom Paging Limited Page 54
As we can see in Figure 4, the perception of the company is false if the actual and
perceived image do not match. As a result, it is important to improve the company
strengths in the first place, with the hope of building a long-term good image for the
company.
C Communication For Better Image
The final stage of the marketing strategy will be the communication process.
It is not enough to just change what you are; the customers must perceive that you
have changed. The analysis shows that there is a neutral or no image for Telecom
Paging. Therefore, the communication programme should aim at increasing the
awareness in the first place. On the other hand, communicating the strengths of
Telecom Paging on different attributes is also very important.
In designing the image program, it is suggested that Telecom stage an
advertising campaign in the print media as well as on television. The advertising
objective is to increase the brand awareness and position Telecom Paging as a
reliable and good service paging company to demonstrate the strengths of the
company on these attributes.
However, since the image of the company is the perceptions in the customers'
minds which arises from observation and experience, the communication process
Marketing Image Management: Telecom Paging Limited Page 55
should not be limited to advertising. Therefore, Telecom Paging should pay attention
to the actual transactions with the customers. The research findings showed that
29.4% of the respondents became aware of Telecom Paging through their friends.
It is a logical inference that peer group influence is important. The recommendations
by the existing users to their friends and the experiences of the customers with the
company constitute important components of the marketing image of Telecom
Paging. It is suggested that the company should pay more attention to these areas.
Marketing Image Management: Telecom Paging Limited Page 56
CHAPTER 9
CONCLUSION
This research project is a good application of the marketing image
management concept to the actual business environment of Hong Kong. During the
process, the researcher has identified the most important attributes which influence
the buying decisions of the customers. The image of Telecom Paging is tracked by
asking respondents' ratings on those attributes. The results are then summarized and
compared with those of its major competitor. New World Paging.
This research can only be considered as the beginning of the marketing image
management system study. Since the market situation as well as consumer behaviour
are changing rapidly, Telecom Paging should conduct similar research to track the
image of the company over time. Also, this kind of system can test the effectiveness
of the marketing image programs implemented to see whether they can achieve the
desired results.
In future research, the company may want to extend the scope of the research
by comparing more competitors and tracking the different positions of its
competitors in the customer minds. Such information may facilitate more effective
formulation of the marketing strategy.
Marketing Image Management: Telecom Paging Limited Page 57
Finally, the marketing image management concept is still a very new concept.
In the past, marketers mainly employed the multi-attribute model to compare
attitudes among customers. However, the marketing image management concept can
have more detailed analysis on different important attributes so that the
management can design a marketing program that can directly focus on individual
attributes. Therefore, the application of this concept is strongly recommended for
marketers who want to create and maintain a good images of their respective
companies.
Marketing Image Management: Telecom Paging Limited Page 58
BIBLIOGRAPHY
Barich, Howard and Kotler, Philip, "A Framework for Marketing Image Management," Sloan Management Review. Winter, 1991, pp.94-104.
Bernstein, D., Company Image and Reality : A Critique of Corporate Communications. (Eastbourne, Holt, Rinehart & Winston Ltd, 1984).
Bettman, James R., Capon Noel and Lutz, Richard R.,"Cognitive Algebra in Multi-Attribute Attitude Models," Journal of Marketing Research. Vol. 12, 1975,pp.151-164.
Churchill, Jr., Gilbert A., Marketing Research : Methodological Foundations (The Dryden Press, 1991, 5th ed.).
Gray, E.R. and Smeltzer, L.R., "Planning a Facelift : Implementing a Corporate Image Programme," Journal of Business Strategy. 8(1) 1987, pp.4-10.
Gray, Edmund R. and Smeltzer, Larry R., "Corporate Image - An Integral Part of Strategy," Sloan Management Review. Summer 1985.
Li, Chi Hung, "Image Measurement of Four Supermarket Chains in Hong Kong," (Unpublished MBA thesis, University of Hong Kong, 1983).
McDougall, G.H.G. and Fry, J.N.,"Combining Two Methods of Image Measurement," Journal of Retailing. Vol. 50, No. 4,Winter 1974-75.
Myers, John G., Consumer Image and Attitude (Institute of Business and Economic Research, University of California, Berkeley, 1969).
Olins, Waly, The Corporate Personality : An Inquiry into the Nature of Corporate Identity (London : Design Council, 1979).
Olins, Waly, Corporate Identity : Making Business Strategy Visible Through Design (Harvard Business School Press, 1989).
Selame, Elinor and Selame, Joe, The Company Image : Building Your Identity and Influence in the Marketplace (John Wiley & Sons, 1988).
Topalian, Alan, "Corporate Identity : Beyond the Visual Overstatements," International Journal of Advertising. Vol.3, 1984,pp.55-62.
Marketing Image Management: Telecom Paging Limited Page 59
Wilkie, William L. and Pessemier, Edgar A., ” Issues in Marketing's Use of Multi-Attribute Attitude Models, ” Journal of Marketing Research. Vol. 10, November 1973, pp.428-441.
Marketing Image Management: Telecom Paging Limited Page 60
APPENDIX 1
ENGLISH VERSION OF QUESTIONNAIRE
SECTION I
1. Do you use a pager now? 1 一 Yes (Go to Q.3) 2 No 1
2. Do you plan to have a pager within 1 year? 1 _ Yes 】 ‘ 2 No (End of Questionnaire) 2
3. Are you aware of Telecom Paging Ltd? 1 _ Yes • 2 No (End of Questionnaire) 3
4. Are you aware of New World Paging Ltd? 1— Yes . 2 No (End of Questionnaire) 4
—
5. How did you know about the Telecom Paging Ltd? (You can choose more than I response)
TV/Print Advertisement 5 Friends 6 — Shops/Billboards 了 一 Promotion Counters 8 — Sales Persons 9 — Others, please specify i。 No opinion/ Don't know ~ u —
6. How did you know about the New World Paging Ltd ? (You can choose more than 1 response)
TV/Print Advertisement 12 Friends — Shops/Billboards — Promotion Counters — Sales Persons le — Others, please specify ^ —
No opinion/ Don't know 一
— 18
• 、
Marketing Image Management: Telecom Paging Limited Page 61
7. Can you name any company other than the two mentioned above? Hutchison Paging i9 _ ABC Paging 20 _
~ Star Paging 21 _ — B B Telecom 22 二
Telepaging Paging 23 _ — C S L 24 =
Asia Paging 25 — Chevalier Paging 26 — Others, please specify 27 — Don't know 28 一
Marketing Image Management: Telecom Paging Limited Page 62
SECTION II
8. Read the following statements and then give your opinion on each statement, using a five point scale. (Check one only on each row)
point 1 represents strongly DISAGREE point 5 represents strongly AGREE
(T: Represents Telecom Paging N: Represents New World Paging)
Strongly Slightly Neither Slightly Strongly Disagree Disagree Disagree Agree Agree
/Agree 1 2 3 4 5
a. T h e p a g e r i s T 29 — t e c h n o l o g i c a l l y N _ _ 30 — sophisticated
b. The pager is fashionably T 31 — designed N 32 —
c. The initial cost of pager T 33 — is inexpensive N 34 —
d. The service fee is T 35 — expensive N 36 —
e. The paging service is T 37 — reliable N 38 一
f. T h e o p e r a t o r is T 39 — courteous N 40 —
g. The location of stores is T 41 — inconvenient N 42 —
h. The sales persons are T 43 — knowledgeable N 44 _
i. The company spends T 45 -little on promotion N 46 —
j. The signal is well T 47 — received everywhere in N 48 _ Hong Kong
k. The maintenance service T 49 — is inefficient N 50 —
Marketing Image Management: Telecom Paging Limited Page 63
9. Please rate the importance of the following items. A 5-point scale is used. Point 1 stands for the least important and point 5 stands for the most important. (Check only one on each row)
1 2 3 4 5
a. Pager Technology 51 _
b. Pager Appearance 52 —
c. Price of Pager 53 —
d. Service Fees 54 —
e. Reliability of Service 55 —
f. Courtesy of Operators 56 _
g. Store Locations 5 7 _
h. Sales Personnel's Knowledge 58
i. Promotion Activity
5 9 — j. Signal Coverage —
60 —
k. Maintenance Service
61 —
Marketing Image Management: Telecom Paging Limited Page 64
SECTION III
10. Your Sex: 1 一 _ Male 2 Female 62 —
11. Your Age: 1 16-25 2 26-35 3 36-45 4 46 or Above 63 —
12. Your Occupation: 1 Professional 2 Executive/Manager 3 Clerical 4 Sales/Marketing 5 Service Sector 6 Manufacturing 7 Student 8 Other, please specify 64 一
13. Your monthly personal income: 1— Under 6,000 2 ~ 6,000-15,999 3 16,000-25,999 4 26,000 or Above 65 _
Marketing Image Management: Telecom Paging Limited Page 65
APPENDIX 2
CHINESE VERSION OF QUESTIONNAIRE
第一部份
詩勿馆
寫此供
1 .你現時有沒有使用傳阵機?
1 — _ 有 ( 請 答 問 題 3 )
2 — - 沒 有 • 1 —
2 .你有沒有打算在未來一年内使用傳评捜?
1 … 有
沒有(問卷完畢) 2一一
3 .你有沒有瞎過霄訊傳评逭間公司?
1---有
2 — -沒有(問卷完畢) 3
4 . 你 有 沒 有 瞎 過 新 世 界 傳 訊 逭 間 公 司 ? .
1 — — •
沒有(問卷完畢) 4...
5 . 你従那些途徑知道笛訊傳呼逭間公司 .? (可 S择多遇一項)
, _ —笛視 /報刊廣告 5 —-
_ _ 親 戚 / 朋 友 6 —-
——門市部 /廣告牌 7 …
— _宣傳播位
_ —營業員 9
其他 (請註明) 10---
有意見 /不知道 11 —
6 . 你従那些途徑知道新世界傳訊這間公司? (可S揮多遇一項)
笛視 /報刊廣告 12 —-
親戚 /朋友 13-—
— — 門 市 部 / 廣 告 牌 ‘
_ _ 宣 傳 播 位
——營業員 16...
——其他 — (請註明) 17---
沒有意見 /不知道
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7 .除了以上兩間傳呼機公司外•你還可以說出堪幾間?(可選揮
多遇一項)
和記傳訊(H U T C H I S 0 N P A G I N G ) 佳 訊 傳 訊 ( A B C P A G I N G ) 一 -
星 光 傳 訊 ( S T A R P A G I N G ) 21 — -必備通訊( B B T E L E C O M ) 22—-
— 一 通 用 通 訊 ( T E L E P A G I N G ) 23 — -——香港電訊(C S L )
亞 洲 傳 訊 ( A S I A P A G I N G ) 25—-其士傳訊(C H E V A L I E R P A G I N G ) 26.
_ _ 其 他 (請註明) 27 —-一 一 不 知 道
Marketing Image Management: Telecom Paging Limited 、 Page 67 u .
第二部份
8 .讓出以下句子及表逢你努該句子的意見,(毎句只選揮一項)
選 择 1 代表你非常不同烹
選 揮 5 代表你非常同意
T :代表電訊傳评 N : 代 表 新 世 界 傳 訊
非常不同意 不同意 無 宽 見 同 意 非常同意
( 1 ) ( 2 ) ( 3 ) ( 4 ) ( 5 ) • *
a •傳阵機具有先進 T _ _ — _ 一 — 一 一 29 — -
功能 N _ _ — — — _ — _ _ 一 一 一 -
b . 傳 评 機 設 計 新 親 T - 一 _ 一 — _ 一 一 —
N — _ _ — — 32 —
C . 購 買 傳 呼 機 資 用 T _ _ — _ —— 一一
不昂資 N — _ 一 — — — 一 一
d . 傳 呼 服 務 費 昂 貴 T —— —— —一 一—
N — 一 一 — 36 …
e . 傳 呼 服 務 準 確 可 T — _ — _ — 一 37.
n N 一 一 一 一 一 一 一 一 — -38—
f • 接 结 員 很 有 植 貌 T — _ _ _ - 一 一 一 一 59—_
N 一 一 一 一 一 一 一 一 — .40 —
S . 門 市 部 地 點 不 方 T _ _ _ _ 一一 41 —-
便 N — 二 ——
h •營案員對産 a 知 T ——、 _ _ 一一 一 一 一 一 43—-
进宣富 N — — _ 一 一 一 — 一 一 一 44 —一
i • 該 公 司 花 了 很 少 T •—_ — — 一 — 一 ― 一 一 45 — -
金錢於推廣及宣 N —— — _ _ _ 一 一 4 6 . . .
傳用途上
J •訊息能在香港毎 T —— 47-—
—角落清楚接收 N — _ 一— 4 8 . „
k . 维 修 服 務 没 有 效 T _ _ 一 _ _ _ 4 9 . . .
宰 N 一 ― — _ 一 — 50. . .
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9 . 諸 列 出 以 下 句 子 的 重 要 性
苗 揮 1 代表非常不重要
選 揮 5 代表非常重要
W 勿馆
寫 此 探
非常不重要 不重要 無意見 重 要 非 常 重 要
(1 ) ( 2 ) ( 3 ) ( 4 ) ( 5 )
a . 傳 评 機 之 功 能 一 一 一 一 一 一 一 一 «
b . 傳 呼 機 之 外 型 — 一 一 一 一 一 一 一 一 一
C . 傳 阵 機 之 價 格 — — _ _ 一 — 一 一 一 一 5 3 . _
d . 傳 呼 服 務 費 —— 一 一 一一 一一 一一 54...
e . 傳 呼 服 務 之 準 孩 及
可靠性 一 — _ 一一 一一 —一 55...
f . 接 结 員 之 箱 统 —— — _ ―一 一一
g . 門 布 部 之 位 置 _ _ — — — _ 一 一 5 7 . . .
h . 營 案 員 對 産 S 之
知斑 —一 一一 一一 一一 一一 58...
i . 推 廣 及 宣 傳 活 動 _ _ _ _一
j •訊息覆蓋面 —— -•一
k . 维 修 服 務 _ _ — — — _ - 一 一 61.
«
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u
第三部份
寫此探
1 0 . 你的性別:
1 — 男
2 … 女 . 62.._
1 1 . 你的年龄:
1 — 1 6 - ' 2 5
2 … 2 6 - 3 5
3 … 3 6 - 4 5
4-— 4 6 或 以 上 —_
1 3 . 你的裙業: .
1 — 專 案 人 仕 .
2 — 行 政 人 員 / 经 理
3 … 文 員
4 — _ 推 銷 及 市 場 人 員
5 — 服 務 從 業 員
6 — 製 造 業 工 人
學生
8 — - 其 他 (諸註名) 64
1 4 . 你的毎月收入:
1 — 6 , 0 0 0 以下
2 … 6 , 0 0 0 - 1 5 , 9 9 9
- 3 … 1 6 , 0 0 0 - 2 5 , 9 9 9
4 — - 2 6 ’ 0 0 0 或以上 6 5 . . .
——-一 _ _
兀
I 香 湛 中 文 大 學 齒 雀 梓 & 書 I
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APPENDIX 3
SAMPLE SIZE CALCULATION
The sample size of the research is calculated by using the following formula:
Z2 (pq) N
E2
N : number of items in the sample
7? : square of the confidence interval in standard error units
p : estimated proportion of success
q : estimated proportion of failure
E2 : square of the maximum allowance for error between true proportion and sample proportion
Keeping Z and E constant, the largest sample size is required when p=q=0.5.
Therefore, the largest sample size required for the research at 95 percent confidence
level with E not greater than nine percentage points is 119.
(1.96)2 (0.5)2 N = = 119
(0.09)2
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