An Empirical Study on Consumers Preference for Mobile Telecommunication Attributes in Nigeria

Abstract

Aims: The study empirically analyzed consumers’ preference for mobile telecommunication attributes in Nigeria, using conjoint analysis. Study Design: Survey design, through 200 dedicated mobile phone users, were conveniently sampled in Yaba and Akoka environs of Lagos State for the conjoint study. They ranked telecommunication services profiles with 18 eighteen combinations, using 1 and 18 to indicate highest and lowest preference, respectively, and different combinations of attributes for their preferences. Place and Duration of Study: Phone users in Yaba and Akoka environs were interviewed within three months (October 2012 to December 2012). Methodology: Orthogonal methods were used to design 18 cards that were used for the interview and which were ranked by respondents (phone users). They were then analyzed with the use of ordinary least squares (OLS) regression, with the aid of statistical package for social sciences (SPSS). Results: The result shows cost attribute, the adjusted part-worths for the low, moderately and high levels, respectively, as follows: -2.396 - 10.204 = -12.600; 12.99 -10.204 = 2.785; and 10.205 -10.205 = 0 which was consistent with economic theory. The mobile telecom users in the study area prefer a mobile service with a lower cost to one with a higher cost. Conclusion: The study concluded that telecom service providers in Nigeria should strive harder to improve services where the customers’ preferences lie: affordable service, wide coverage, followed by clarity of call, being the most desirable attributes by consumers, rather than undirected promotional strategies that hardly aid loyalty of customers to their network only while also involving huge costs.