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FACTORS AFFECTING CONSUMERS' CHOICE OF MOBILE PHONE SERVICE PROVIDERS IN KOTA KINABALU

MELVIN ALVAROZN MICHAEL 2009984405

BACHELOR OF BUSINESS ADMINISTRATION WITH HONOURS (MARKETING)

FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA

KOTA KINABALU

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A C K N O W L E D G E M E N T

I wish to acknowledge my advisor Mdm. Noorziah Mohd Salleh for her continuous support and assistance throughout the project until it has been completed.

Being his advisee has been one of most wonderful experience in my life that I cannot describe with words. Her patience and determination in assisting me completing the final project paper is the most appreciated. Without her continuous support, I would have been able to complete this final project paper.

I would also like to acknowledge Universiti Teknologi Mara (UiTM) Kota Kinabalu, Sabah that allows me to study in this place and get uncountable knowledge and experience for past several years until I have completed my study. UiTM is one of the higher education institutions that able to help an individual to success in their life.

UiTM di Hatiku and I will always thankful and grateful that 1 have been able to study in this institution.

On top of that, I would also like to appreciate my friends, colleagues, as well as my familywho assisted and supported medirectly and indirectly in my final project paper. Without their support, I would not have been able to complete this final project paper. I like to thank and appreciate especially my parents who never giving up their continuous support to me until I completed this project. They were always there anyway and any time to support me.

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T A B L E OF CONTENT

NO. PAGE

1.0 INTRODUCTION 1 1.1 BACKGROUND OF S T U D Y 3

1.2 R E S E A R C H P R O B L E M 4 1.3 R E S E A R C H O B J E C T I V E S 5 1.4 R E S E A R C H QUESTIONS 6 1.5 LIMITATION OF S T U D Y 7 1.5.1 T I M E CONSTRAINT 7 1.5.2 L A C K OF E X P E R I E N C E 7 1.5.3 C O L L E C T I N G AND GATHERING D A T A 7

1.5.4 L I M I T E D B U D G E T 7

2.0 L I T E R A T U R E R E V I E W 8 2.1 DEFINITION DECISION MAKING FACTORS 8

2.2 P R I C E ( R A T E CHARGERS) 10 2.3 N E T W O R K C O V E R A G E 11 2.4 PROMOTION A D V E R T I S E M E N T 12

2.5 F A M I L Y AND FRIENDS 13

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3.1 P R I M A R Y D A T A 19 3.2 SECONDARY D A T A 20 4.0 R E S E A R C H SAMPLE 21

4.1 INTRODUCTION 21 4.2 R E S E A R C H POPULATION 22

4.2.1 FORMULA S A M P L E SIZE 22

5.0 D A T A A N A L Y S I S 23 5.1 G E N D E R 23 5.2 A G E 24 5.3 R A C E AND ETHNIC 25

5.4 OCCUPATIONS 27

5.5 INCOME 28 5.6 QUALIFICATIONS 29

5.7 S E R V I C E PROVIDER SUBSCRIBED 31 5.8 INCOME AND R A T E C H A R G E R S CROSSTAB 32

5.9 INCOME AND N E T W O R K C O V E R A G E CROSSTAB 34

5.10 A G E AND R A T E C H A R G E R S CROSSTAB 36 5.11 A G E AND N E T W O R K C O V E R A G E CROSSTAB 38 5.12 G E N D E R AND R A T E C H A R G E R CROSSTAB 40 5.13 GENDER AND N E T W O R K C O V E R A G E CROSSTAB 42

5.14 GENDER AND F A M I L Y & FRIENDS CROSSTAB 44 5.15 GENDER AND PROMOTION A D V E R T I S E M E N T CROSSTAB 46

5.16 A G E AND BRAND I M A G E CROSSTAB 48

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A B S T R A C T

The purpose of the study was to investigate factors affecting consumer choice of mobile service provider in Kota Kinabalu, Sabah. There are several factors that have been analysed that affect consumer to choose and subscribe a service provider in the market.

For the study, Questionnaire and Exploratory Factor Analysis (EFA) method have been used to test which types of factors are the most significant factors for consumer to consider before make decision to choose which mobile services provider for their mobile services. It found that, price or rate chargers and network coverage are the most significance factors for consumer in determined to choose a mobile service provider in the market telecommunications industry. Price and network coverage of mobile phone services are the most sensitive factors which consumer consent more while making their decision.

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