Finding and Analysis

Diagram 1: Factors that are considered when purchasing a mobile network

Based on Diagram 1, there are five factors that are often considered and will make an impact on the consumers' decision when purchasing a mobile network. The five factors that affects the demand of mobile network are promotion, coverage, internet speed, roaming quality and price of rate per call or text.

The primary factor that has the most significant effects on the consumer’s decision is price of rate per call or text. The most significant reason for this is because people call and text their friends and family on a daily basis, which then suggests that they will put the price of rate per call or text ahead of everything else. Similarly for an operating company, business calls and appointments are very common and this also leads them to consider the price of rate per call or text. Hence, the price of rate per call or text appears to be the most significant factors to be considered and so the demand will increase if the price is lower.

The next compelling factor will be coverage because consumers need coverage to access internet and make a call or text. Without good service coverage, consumers cannot communicate with each other smoothly and it will cause demand to be lower. On the other hand, internet speed and promotion appears to be equally important with 21% respectively. The internet speed offered by different mobile network companies are being effectively compared as people prefer to access quicker internet speeds which then suggest that internet speed is an important factor. Similarly, consumers prefer good deals instead of getting expensive or unworthy deals. Thus, people also take note of the importance of promotion. A better internet speed and promotion can helps to increase the demand of a mobile network. Lastly, roaming quality has the least significance, when compared to the other factors because roaming quality is only required when consumers are overseas. This causes its demand as a factor to be lower than the others.

 

Diagram 2: Will you change mobile network if other brands promote lower price and promotion ?

Based on the data presented above, it appears that people tends to remain loyal to the mobile network that they are currently using. One of the possible reasons that caused this is that their friends use the same mobile network. This may be an important factor as calling from the same mobile network is fairly cheaper than calling from a different mobile network. Especially on a long-term basis, it appears to be much more beneficial to people who makes phone calls regardless of personal or business purposes. Hence, cheaper in terms of calling and texting may be the primary reasons to cause people to be reluctant to change their mobile network.

In addition, people nowadays tend to sign packages offered by mobile networks when it comes to buying a new smart phone. In these packages, there will always be a fixed period of time where the consumers are required to use the mobile network's services. By changing or canceling the services that were signed in the contract, consumers may be required to pay additional fees or payment that is not included in the package. Thus, as changing mobile networks may cause inconvenience to the consumers, they tend to stick to their current mobile network.