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Consumer Behaviour in the Telecom Industry

Paper Type: Free Essay Subject: Marketing
Wordcount: 2623 words Published: 3rd May 2017

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Hashim et al(2006) Published an article about Foreign Direct Investment in Telecommunication Sector of Pakistan: An Empirical Analysis.Usage of telecommunication sector was world widely Known and it was considered as the requirement for the economic growth. Author have taken Time series data from 2000-2006 on quarterly bases, according to data availability.The equation they have used is according to theoretical formulation and then they formed their equation in log -linear form. The author found out the importance of concentrating the vibrant market of Pakistan regarding the telecommunication sector. In short the foreign direct investment has a crucial impact on the telecom sector of developing countries like Pakistan and India. Japan’s example has been discussed in the article. Initially japan had low share of foreign direct investment which affected the telecom sector but this situation was forced to change, and now telecom sector in japan is changing rapidly. Even a large population like India, when they started the telecom expansion plans and divided the country into 21 telecom sectors and then again India had to go for the option of the foreign direct investment to initiate the program. The case of sriLanka is no different, they gave its 35% of its telecom sector operations to Japanese companies to start up the liberalization processes in the telecom sector in srilanka. In Pakistan the foreign direct investment reached US$ 5,124.9 million in 2005-2006. The foreign direct investment in Pakistan is declining lately but it is still holding the major share in the consumption of Pakistan telecom users. Currently Pakistan has Mobilink, Paktel, PakCom, Warid and Telenor. Paktel and PakCom fully functioning in the country as telecom companies. The study then concludes that foreign direct investment is the major player in liberalization of foreign direct investment in the developing countries.

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AtifTahir, Aug 2008 published an article “How advertising impacts behaviour of cellular phone consumer in Pakistan”.The author has done secondary research he consulted different research papers and wrote his article. Well according to author the marketing mix concentrated on increasing the buying behaviour really has an effect on consumers. The article states that consumers buy more after these attractive campaigns, and obviously when u educate people what your services are and how they are better from others customers will definitely get attract. These advertising are extremely effective in creating a need for a particular product or service because when you’ll create an effective advertisement customer will watch it and get to know about the brand and will get to know how this brand is better than his/her current brand so he/she will switch to that brand. Another important point is to develop a company’s position in the mind of the consumer only then these advertising campaigns are effective because when you will create a strong brand image in market only then people will attract in your brand otherwise they will not take you very seriously so you’re positioning strategy should be very strong. It is also important to counter the after sale service for these companies to increase the consumer behaviour because if they’ll not give good after sale services they will not able to make their customers loyal to their brand. There are several factors affectingthe consumer behaviour in Pakistan and they are Brand Image, Brand Equity and Brand Loyalty. A Company needs to take these factors into account while conducting marketing campaigns. Cellular companies are spending heavily on media to attract masses. Overall my conclusion is that the idea of advertising of these companies has been very succeeded in creating demand and increasing consumer behaviour.

Mohammad Yusha, Dec 23rd, 2010 published an article “Craze for Cell Phones and Late Night Packages”. The author states that people are buying cell phones because of new features or services or few buy just to look cool. He used few statistics and secondary research as his data sampling and wrote his point of view. So according to the author people buy latest cell phones just because they are status conscious so they go for expensive handsets which include different amazing and latest features. He said teenagers are wasting lots of money in buying new cell phones only for the reason of show off. He said that in west many foreign students do jobs in their free time just to pay their cell phone bills because they like to talk to their friends and family instead of enjoying and relaxing somewhere. Another important point is texting.Texting have become one of the most important part of students life they send 100s of text every day to their friends even they are sitting in classduring lectures which have become a problem for teachersso cell phones have been banned in many universities of the west. Cell phone companies are spending lot of money in their advertisings and they are using different tactics to cater more consumers so they are offering porn stuff in west and late night packages in Middle Eastcountries. According to me these late night packages and porn stuff is not good because if students will talk till late night then how will they able to concentrate on their lectures and how the workers will able to do their jobs perfectly if they’ll dose off late at night so this is damaging our youth very much cell phone is made for our good not for spoiling our sleep or wasting money.

Mohammad Yusha, June 5th, 2010 published an article “Cell Phones: Luxury or Necessity?” The author stated that many foreign students in west do part time jobs just to pay their cell phone bills. He used secondary research and consulted different research papers for his findings. He said that cell phone have become one of the most important part of our lives so we don’t hesitate at all by wasting our money on it. He said in west student’s work on the weekends instead of getting relax just for paying their cell phone bills. He said that there are all type of people few are crazy about cell phones and few don’t even like to keep a cell phone he said that in countries like middle east everyone keeps a cell phone even beggars keep cell phones and they have made a new way of begging they send messages to people randomly that send us 10 rupees credit and buy your place in heaven.A businessman told The News that he is receiving more than 10 messages a day by a beggar that he is very poor and need somemoney. According to me this should be stop government and these companies should step in and make some complain centre so who ever send such messages consumers can complain and action will be able to take and they should be caught because if they’ll not take action right now it will increase day by day and will become impossible to stop.

BushraBhatti, (n.d) published an article “WLL Future – WLL set to revolutionize telecom sector”. The author’s research question is that a revolution came in telecom sector which resulted in prosperity and taking country’s economy towards progress. He used secondary research and consulted many research papers and gave his findings. He said that a revolution came in telecom industry which has changed everything of this business and the number of users has been increased very much in last few years. He said that the PTA has done an excellent job by deregulating their sector and by changing their policies in the benefit of industry. This is also attracting very much to investors who are investing their money in this sector. PTA have generated 30 billion as fee by issuing licences which have opened many doors for workers who want to work but don’t have jobs so in last few years Pakistan have become one of the fastest growing nation in telecom sector. PTA hasderegulated the sector which finished the monopoly of PTCL. New companies came into existence and launched wireless handsets for the consumers who were tired of using faulty landlines so these systems were new and having less faults and better call quality and also cheaper than PTCL. This step was taken for the benefit of consumers who want to do long distance calls with better quality. WLL service is launched for the ease of customers who want to use phones wirelessly and they have started their operations from rural areas and then came into urban areas because they want to take rural people into country’s progress as well. These wireless systems are very beneficial for people because you can contact your friends and family where ever you are and it is the most preferred medium of communication in all over the world and this project worked very well and generated large amount of revenue which helped country’s economy.

Khalid Mehmood, 2005 wrote an article on “Multipurpose community telecenters for rural development in Pakistan”. The purpose of the study is to assess and examine the situation of rural population in Pakistan and information facilities available for the consumers in the country. This research is mostly dependant in the secondary information and different articles were studied from selected libraries. The research paper highlights the role of MCTs in rural community in Pakistan. It also examines the telecom sector consumer behaviour and its usage in different fields in the country. The research articles also signify the importance of existing telecommunication objectives of the country and of the companies. There have several models suggested to the government of Pakistan for communication development in the country, and they are being considered under the following concerns; economy, social and demographic. He is also talking about presence of MCT’s in rural areas which is a difficult task for them to implement. This paper is talking about betterment of MCT’s in terms of policy changing, planning, management, funding, building, equipment, technology, services, target groups, marketing and durability. The results of the article are that Pakistan is going very good in telecommunication sector and is considered one of the most advance countries in this sector and also one of the largest sector in this industry. The number base of users is increasing as well very fast day by day. They have settled many telecentres in urban areas but still lot of money will be requires to go in village areas. According to the author government should step in and start thinking about villages as well so those areas will also able to stand like cities.

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Umar et al, May 2007 wrote an article “Boom of Telecom Sector in Pakistan and Its Impacts on Pakistani Culture”. The research problem of the article is to find out positive and negative impacts of telecom craze in Pakistan on Pakistani culture and society and want to give importance to our values and beliefs. The research was conducted from the mobile service operators and the service vendors in the country and also the potential service providers who are measuring and planning their arrival in the Pakistani telecom market. The research method mainly was the secondary data collection. Questionnaires were also used to collect information from the professionals in the telecom field. The research paper aims to provide a detailed description of the boom in telecom industry in Pakistanhow this industry have been started and how it rises and what its future will be. This article tells us the role of government playing in this sector and how they are helping firms in growing this sector in Pakistan. There are many new businesses came into being because of this sector which have reduced unemployment and became beneficial for the economy. Another important aspect is that how these all services reached to the general public. Authors also stated that how this sector is helping people of Pakistan and their beliefs and their cultures and at last they concluded that if a new multinational company wants to come in Pakistan and do successful business then they have to know the cultural values, ethics and beliefs of the people because if they do not value cultural values of the people they would not able to set their selves in the market.

PTA, Sep 2007 published a research paper in which they are talking about Pakistan Telecommunication Limited (PTCL). They said that Pakistan Telecommunication Limited was a government sector, which was very inefficient so government of Pakistan deregulated the sector. Recently Pakistan Telecommunication Limited was privatised and 26 percent shares sold to Etisalat cellular networks have the largest growing market in the world and is benefitting the most from Pakistan due to providing the facilities the consumers demand for instance clear frequency, trained work force, CPP, the sector managed to attract the maximum investment from across the country. Foreign investors have been attracted to the telecom Norway, Warid UAE, QTEL Qatar etc. Earlier the key players in the industry were Pakistan Telecommunication Limited and Mobilink but market share has dropped due to the emergence of new operators. Due to the mergers that took place in this sector, there has been a huge gain in the competition, which has created pressures to provide high-level services and quality with new services to bring for the consumers. When needed demand it has happened in the ISP and data sector Pakistan Telecommunication Limited. The conclusion of this research paper is that privatisation is a good step toward consumers so new entrants can enter into the market and it will benefit to both consumers and companies.

Shahzada Alam Malik, 2006 published an article ‘Regulating the transition of Pakistan’s telecom sector’. The research question of this article is that Information and communication technologies, ICTs have profoundly influenced how the world functions and interacts. He used different research papers and did secondary research in after checking different statistics wrote his article. In this article the author is talking about Pakistani government who has done very well in this sector the number of cell phone and fixed line subscribers are increasing day by day and this sector is providing very good revenue as well. This world is turning into a global world few years before people use to communicate via letters then radio came in and now latest cell phones, laptops etc. these revolutions are very beneficial for the consumers now they can communicate with their friends and family anytime anywhere in the world in no time in very cheap rates. This deregulation of sector has benefitted both consumers and firms. Many countries used telecommunication as their important part in the progress of their economy. In past government of Pakistan was operating this sector but then local and global pressures convinced them to deregulate that sector so Pakistan will also be able to compete with world in the field of telecommunication. The government of Pakistan made PTA who is in charge of all operations happening in telecom sector in all over Pakistan. I think the telecom sector of Pakistan is now the most important sector in the growth of the country and there is still lot of investment needed in this sector to compete with world because still other countries are too far from Pakistan for e.g. Other countries are using latest technologies like 3G and 4G but Pakistan is still using 2G network which is far behind others so we still need lot of time to compete with all over the world.


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