Customer perceptions of south African cellular network operators.

Customer perceptions of south African cellular network
operators.
Abstract
Mobile phones have become part and parcel of the telecommunication
landscape in South Africa generating access to 92% of the population.
The three cellular network operators engage incontinuous development of
mobile phone products and services to increase the average revenue per
user (ARPU). However, there is a general consensus worldwide that the
revenue from voice calls is reaching saturation and South Africa is no
exception. The focus of this study is to examine the impact of the
declining average revenue per user on the sustainability of the mobile
phone industry, from a customer relationship management perspective. Due
to the large number of pre-paid subscribers in KwaZulu-Natal, the
multi-stage sampling method was adopted to conduct a survey of 500
mobile phone subscribers. In order to obtain an customer perspective,
self-completion questionnaires were administered. Descriptive and
inferential statistical tests were undertaken from the responses
(questionnaires) to generate an analysis of customer needs. The key
findings of the revealed the nature of the relationships subscribers
(KwaZulu-Natal) has with their respective network operators. The results
emphasised the need for aligning marketing strategies with customer care
It was also found that the cost of mobile phone services influences
consumer purchase and usage patterns.
1. INTRODUCTION
Telecommunications has made life simple, easy and accessible. In

1876, Graham Bell invented a talking device that could transmit the
human voice to a listener. However, Bell's telephone had a weak
flow of signals which made hearing difficult. This problem was overcome
with the introduction of carbon transmitters by Thomas Edison in 1878.
As a result, by the end of the 19th century electromagnetic waves were
used as a communication medium. Consequently, the first mobile phone for
use in cars was introduced in the early 1950's. The car telephones
were soon outdated with the introduction of analog cellular (first
generation 1G) during the late 1970s and early 1980s. The mobile phone
technology is a fusion of technologies such as transmission networks,
software, multimedia interfaces etc. mobile phones are two-way radios.
When one person talks into a mobile phone, it picks up the voice of the
person and converts the sound into radio frequency energy. The radio
waves travel through the air until they reach the receiver at a base
station. The base station then sends the call through the telephone
network until it reaches another person (Avvannavar, Kumar, Shrihare
& Babu Are, 2008). However, the first modern network technology on
digital known as second generation (2G) system was introduced by the
need for improved transmission quality, system capacity and coverage
presently, resulting in the introduction of 3G phones (Kreutzer, 2009).
A mobile phone is a type of short-wave analog or digital
telecommunication in which a subscriber has a wireless connection from a
mobile phone to a relatively nearby transmitter. The transmitter's
span of coverage is called a cell. As a mobile/ cell phone user moves
from one cell or area of coverage to another, the telephone is passed on
to the local cell transmitter. A cell/mobile phone is not to be confused

with a cordless phone. The first mobile phone for commercial use was
approved by the federal communications in 1983, which weighed two pounds
and offered half-our talk time for every recharging and sold for $3995
(what is cellular telephone, 2010). In essence, a mobile phone is a
complex radio that facilitates the making and receiving of calls, stores
information, records tasks, records appointments and reminders, sends or
receives e-mails, gets information, enables use of the internet and also
has software to play electronic games (Rapid assessment of cell phones
for development, 2007). It is thus a personal device that allows people
to stay in touch with others wherever they go and are now used as mini
computers. For many Africans a desktop or laptop is unaffordable but a
cell phone is within reach. As a result, it became a social phenomenon
throughout the world (Frost & Sullivan, 2010).
The first cellular networks were launched in 1981 in Saudi Arabia,
Sweden and Norway (Virki, 2010). Due to the adoption of a new
telecommunication device, the mobile phone manufacturers produced
affordable phones for the mass market (Kreutzer, 2009). Ten years after
the introduction of such phones, the size and cost of cell phones
decreased and was available as a consumer product in the early
1990's (de Bruijn, Nyamnjoh & Brinkman, 2009). For children
today, the issue is not whether they will get a cell phone, it's a
question of when will they use it. Although cell phone subscriptions
have reached the equivalent of 50% of the world population, it does not
mean that half of the world's population has a cell phone, because
59 countries have cell phone penetration of over 100% as subscribers
have more than one phone. In recent years, the cell phone sector has

experienced growth in the outskirts of China and India with the support
of declining prices of cell phones and tariffs. In 2007 the worldwide
cell phone subscription was 3.3 billion, which is equivalent to half the
global population (Virki, 2010). Worldwide, it is estimated that the
cell phone users will exceed 5 billion by 2015. Despite the growth in
cell phone subscribers, a large proportion of the lower income segments
are still unable to afford their own handset, or purchase prepaid
air-time. They depend on community phone shops, informal entrepreneurs
selling handsets on the streets, or friends and families (Coetzer,
2008).
Mobile phones facilitate social interactions between and among
individuals, groups, and organizations alike and also operate in a broad
networked international environment tying nations, cultures, creeds and
businesses. The development of communication technology ignores the
global borders, making the world a global village. The expansion of
communication technology has transformed the traditional voice
telecommunication network into an enhanced information infrastructure,
which is capable of communicating all forms of information content
(Rahman, Haque & Ahmad, 2010). The growth rate in the use of
telecommunication facilities has increased especially in the increasing
number of mobile phone subscribers. According to mobile phone sector
estimates, there are more than 500 million mobile phone subscribers in
Africa. The largest mobile markets include: Nigeria, South Africa, Kenya
and Ghana respectively. However, the largest fixed broadband market is
South Africa (Rao, 2011). The telecommunication sector is experiencing
global changes with the liberalization and privatization of the mobile

phone sector, resulting in an intense competitive environment. On the
other hand, it has created opportunities for potential consumers to
enjoy versatile choices among mobile phone operators and vendors. Due to
the aggressive competition, mobile phone service providers are offering
innovative services at competitive prices to attract their targeted
consumers. The nature of competition in the telecommunication sector
seems to focus marketing activities to gain a competitive advantage
through strategic combinations of resources in multiple products and
geographical areas (Rahman, Haque & Ahmad, 2010).
In Africa, mobile subscribers pursue feature driven, high quality
and low delay services from mobile operators. Furthermore, the increased
demand for personal computer tablets (ipads) and Smart phones have
created a demand for increasing bandwidth from mobile phone operators.
Hence, mobile phone operators need to invest in network technologies to
support transmission of large quantities of data, due to the increasing
demand for mobile data services from both business users and consumers
due to the emergence of new mobile devices combined with greater
broadband access, more content and applications of video technology are
the key drivers for outstanding growth (Rao, 2011).
2. SOUTH AFRICAN CELL PHONE LANDSCAPE
In 1994 the South African government issued a mandate to reduce
poverty and make tangible improvements to lives of the lower income
citizens by granting network licences for cell phone operators to commit
reaching out to the underserviced areas (townships and rural areas)
(Coetzer, 2008). South Africa has one of the highest penetration rates
in the world. It has one of the largest cell phone markets in the world

and was ranked 4th following Indonesia, India and USA respectively.
Interestingly, cell phones account for 90% of telephone calls in the
country. However, 90% of all cell phone users are pre-paid users with a
fairly low ARPU (Average revenue per user) while the remaining 10% are
post-paid high spenders balancing the average ARPU totally. Furthermore,
PC based internet penetration (ADSL users) rate in South Africa has been
low with more subscribers to mobile broadband (3G/HSDPA). On the other
hand, there are hurdles for both pre-paid and post-paid users that
hinder usage. The cost of fixed data is one of the cheapest in the world
as data transmission costs are based on megabyte. However, factors such
as purchasing power need to be considered as well (Frost & Sullivan,
2010).
In 2008, there was one phone per three inhabitants in South Africa,
thus becoming the pioneer for the rest of the continent (Kreutzer,
2009). Towards the end of 2009 there were about 4.6 billion cell phone
users globally (Frost & Sullivan, 2010). However, the cell phone
industry is entering a maturity phase with diminishing subscriber growth
and declining revenue per user due to the erosion of voice tariffs.
Furthermore, with the introduction of Mobile Number Portability (MNP) it
has made it easier for subscribers to service and network providers. The
penetration of cell phone has reached a saturation point in many
markets. Therefore, reducing customer churn is now a priority because
network operators can no longer depend on acquiring new customers to
sustain their respective businesses. In order to expand their respective
businesses, service providers and network operators need to retain and
nurture their existing customers and attract customers that intend to

switch providers (Mokadikwa, 2008).
Furthermore, with the introduction of Mobile Number Portability
(MNP) it has made it easier for subscribers to service and network
providers. However, according to a survey undertaken between 25 July and
13 august 2010 the majority of the subjects indicated that they prefer a
customized mobile phone contract (air-time, short messaging system (sms)
bundle, data bundle). Furthermore, the subjects expect cell phone costs
to be lowered in the future. With regard to usage, 95% of the calls are
made using mobile phones as opposed to fixed landlines as consumers are
prepared to pay for the convenience despite the cost. Users in the 18-34
age category were concerned about the image of the mobile phones and the
over 50 years age category preferred simple phones on a cheaper package
(Slade, 2010).
Cellular Network Operators
Unlike the fixed telecommunication network operated, mainly, by one
operator (Telkom), there are three network operators .The operators are
Vodacom with the largest market share in South Africa, followed by
Mobile Telecommunications Network (MTN) (largest market share in Africa)
and Cell C with the smallest market share (South Africa's mobile
phone industry, 2008). Vodacom and Mobile MTN were established in 1993
and launched its services in 1994. Cell C was established and launched
its services in 2001. At the outset, Cell C operated with a 15 year
agreement with Vodacom to use its network, as it rolled out its own
network of base stations with the intention of developing access
networks for the metropolitan areas by the end of 2004 (Falconer &
Neilson, 2007).

The mobile phone industry is regulated by the Independent
Communications Authority of South African (ICASA), mainly through the
Electronics and Communications Act, 2005 (Act No. 36 of 2005) and the
Competition Act, 1998 (Act No. 89 of 1998). ICASA also resolves disputes
as they arise (Malebanye, 2007). A significant point to note is that the
South African mobile phone industry is organized by removing customers
from the cellular network operators. While the network operator is
responsible for establishing the physical network, providing technical
support and devising products, the service providers are responsible for
the actual selling of air time contracts and more day-to-day contact
with customers (Simpson & Dore, 2004). Furthermore, South Africa has
the largest cellular network because 80% of the South African population
lives in rural areas where only 20% of the fixed telephone networks are
installed. As a result, the lack of telecommunication access in the
rural areas of South Africa emphasized the need for cellular networks in
these areas (Mureithi, 1997). Towards the end of 2006, the total number
of mobile phone subscribers worldwide approached 2.5 billion. As the
growth continued steadily, competition became very fierce, resulting in
the declining voice Average Revenue Per User (ARPU), that is, the
standard measure of revenue from cellular network operators to generate
revenue for the respective enterprises (Malebanye, 2007).
As a result, the mobile phone operators were asked to improve their
networks and customer-care services or face penalties as mobile phone
subscribers were experiencing poor service reception, such as dropped
calls, even in metropolitan areas (Mutula, 2002). The future growth of
the mobile phone market had reached saturation point and the South

African potential reached a 50% market penetration with 10 million users
(Reuters, 2002). Presently, the mobile phone penetration rate in South
Africa is 84% and the total African cell phone subscriber base is
roughly 280.7 million people (30% of the total) (Africa Fact Book 2008).
Furthermore, the total African mobile phone subscriber base is expected
to reach 561 million (53.5%) by 2012 (Africa Fact Book 2008).
Furthermore, there is a general consensus in South Africa and worldwide
that the revenue from voice calls is slowly reaching saturation; hence,
cellular network operators and service operators are directing their
resources to other sources of revenue from new to existing subscribers.
Infrastructure to Facilitate Telecommunication Networks
South Africa has the fourth-fastest growing cell phone market in
the world with three cellular network operators in the country, namely,
Vodacom, MTN and Cell C. The three network operators provide cell phone
communications to over 40 million subscribers that is, to 80% of the
population in the country. South Africa has the largest cell phone
market penetration in Africa (MBendi, 2008). On the other hand, the
South African cell phone market had 50 million subscribers, according to
Subscriber Identity Module (SIM) connections, at the end of 2008, but
only 68% of the connections are individual users. The average number of
SIM connections per cell phone user in South Africa grew from an average
of one SIM card per phone user in 1997, to 1.2 per user in 2003 and 1.47
per user at the end of 2008. The gap between users and connections is
expected to continue as prepaid subscribers have a SIM card for each
network to avoid the inter-connection fee for calls between networks. It
is important to note that the cost of SIM cards is as little as fifty

cents for a starter pack (Goldstuck, 2009).
In South Africa, more than 90% of all cellular subscribers do not
pay a monthly subscription. They prefer to move between networks based
on the best deal on offer, resulting in about 30% of prepaid customers
changing their network operator. On the other hand, post-paid contract
customers display a churn of about 10% at the end of the subscription
period (Knot-Craig, 2005). Customers can also choose among a voice
contract, data contract and add-on services. The post-paid contract is
similar to the Canadian Network Providers. When cell phones were
introduced in South Africa, there were mainly post-paid contracts. A
minor segment (14%) of the South African population had post-paid
contracts (2 million) with their service provider. According to a survey
conducted in 2005, 50% of the subjects indicated that free phones were
the reason for choosing the type of contract (Mobility, 2005).
South Africa was one of the first countries in the world to
introduce the prepaid cellular service contract in 1996. With the
pre-paid contract, the subscriber buys airtime up-front and loads it
onto the cell phone SIM card. When the air time runs out, the subscriber
can top up by purchasing extra air-time. The network operators get their
money up-front and there is very little administration involved. For the
consumer, the pre-paid contract allows the subscriber use of cellular
communications network according to a prepaid amount of voice calls, and
data transmission. It is significant to note that is not a cheaper
model, as the highest spending customers are on the prepaid contract
system (Tredoux, 2009). In 1996, the pre-paid contracts were introduced,
and currently over 90% of the subscribers are prepaid (South

Africa's cell phone industry, 2008). With the prepaid contract,
there is no formal subscription and credit check rating (Goldstuck
2009). There are no mandatory administrative costs associated with the
contract. Ninety five percent of this market is predominantly prepaid
with low revenue per user (ARPU) subscribers (Malebanye, 2007). The
largest customer base is prepaid subscribers because it is easier to
limit the spending on calls (Cobweb: information for business, 20O7).
Customer Management
A customer-focused strategy that co-ordinates people, processes and
technology is essential. The focus of the enterprise must be on high
value customer segments to ensure their retention and revenue growth
through tailored and excellent customer services (Agrawal, 2006). A
competitive advantage can be achieved through the identification and
satisfaction of customer needs better than, and sooner than,
competitors. It is, therefore, essential to assess the needs and wants
of the current and future customers by engaging in various activities
undertaken by the marketing function. These activities are components of
the marketing function and include, amongst others, designing and
managing product offerings, determining pricing strategies, developing
distribution strategies and communicating with existing and potential
customers. The goal of the marketing function is to create customer
satisfaction by building profitable relationships with its customers
(Gordon, 1998).
Customer relations vary by product, industry and customer. Since
cellular telecommunication enterprise's products and services are
duplicated in the industry, there is continuous competition for

customer's share and an increasing need to build loyal customers
through effective customer relationship management activities (Omotayo
& Joachim, 2008). Successful enterprises strive to build long-term
relations with their customers. Clearly, the customer relations
dimension of marketing seeks to build customer loyalty by fulfilling the
promises and satisfying customer wants and needs on an ongoing basis.
Customer oriented marketers perceive making a sale, not as an end to a
transaction, but rather as the beginning of a relationship. Hence, the
emphasis is on developing and maintaining mutually satisfying long-term
relationships with customers (Buttle, 2004).
The goal of relationship or personalized marketing, unlike in
transactional marketing, is not an exchange per se but the core
phenomenon is to achieve continuous purchases and cross selling
opportunities (Gronroos, 2000). This change was driven by conditions
such as intense global competition, greater fragmentation of markets,
greater emphasis on quality and the changing buying patterns of
customers. Enterprises engaging in positive image building activities
such as building trust, reputation and creating positive personal
statements have a favourable effect of tying customers to the enterprise
by building impersonal switching barriers. Hence, relationship marketing
seeks to establish long-term committed, trusting and co-operative
relationship with customers, characterized by openness, concern for the
delivery of high quality goods and services, responsiveness to customer
suggestions, the willingness to sacrifice short-term advantage for
long-term gain (Bennett &Barkensjo, 2005) and creating networks and
interaction (Gummerson, 1999) and bonds with customers (Botha et al.,

2004; Christopher, Payne & Ballantyne, 2002).
3. AIM AND OBJECTIVES OF STUDY
In order to enhance retention in the cell phone market, this study
aims to understand the customers' perceptions of cellular network
operators in terms of quality of services provided by network operators,
customer care and frequency of cell phone use. The objectives of the
study are:
* Assess the level of importance that cell phone users attach to
customer service and the intention of subscribers to continue using
their respective operators.
* Assess the quality of services provided by the network operator.
* Determine the factors influencing the selection process.
* Assess biographical correlates (age, marital status, occupation,
language, gender) with regards to level of importance attached to
network operators' services (overall perceptions of the operators,
quality of service delivery and customer care respectively).
IV. RESEARCH DESIGN
Participants
Data was collected from cell phone subscribers living in the
province of KwaZulu-Natal who were extracted using multi-stage sampling
based on units. Initially 25 districts (units) in KwaZulu-Natal were
identified and then a sample of five streets per district was selected
from the ratepayers list of residential street addresses. Selected
streets were numbered and coded for administrative purposes. Thereafter
another sample was drawn from within the sample whereby every third
house was selected in the chosen street and the subscribers in each

house that volunteered to participate made up the sample of the study.
The final sample comprised of four hundred and seventy six (476)
respondents and was considered to be suitable as Leedy and Ormond (2005)
assert that when the population is 5000 units or more, the population
size is irrelevant and a sample size of 400 is adequate. In addition,
the sample of the respondents utilized were based on their willingness
to participate in the study and where it was safe for the researcher to
have access to respondents' information. The composition of the
sample in terms of the biographical data requested in depicted in Table
1. After the data was collected, the researcher conducted interviews
with ten network operating managers. The objective of the interview was
to give network operators feedback from the survey and to assess the
customer management practices in the industry.
Measuring Instrument
Data was collected using a self-developed, pre-coded questionnaire
comprising of two sections that fulfilled the objectives of this study,
namely, biographical information (age, marital status, occupation,
language, gender) and cellular network operators services. The
biographical information was measured using a pre-coded, nominal scale,
the cell phone services and attributes/features were measured using a 1
to 5 point itemised scale ranging from unimportant (1) to very important
(5) and the factors influencing cell phone selection/preference were
measured using a 1 to 5 point Likert scale ranging from strongly
disagree (1) to strongly agree (5).
Procedure
In-house pretesting was conducted and pilot testing was done by

administering the questionnaire to 15 subscribers drawn using the same
processes and procedures used when extracting the final sample. The
pilot testing confirmed the suitability of the wording and design of the
questionnaire. The questionnaire was administered by the researcher or a
trained research facilitator to the cell phone subscribers residing in
KwaZulu-Natal over a seven week period.
Statistical Analysis
The reliability of the questionnaire was assessed using
Cronbach's Coefficient Alpha and generated an alpha of 0.910
thereby indicated a high level of inter-item consistency and
reliability. Data was analyzed using both descriptive and inferential
statistics. In terms of the latter, analysis of variance and t-tests
were used to assess the influence of the biographical variables on cell
phone services, attributes/features and the on users' perceptions
of the influence of the factors in cell phone selection/ preference. The
Post Hoc Scheffe's Test was used to indicate exactly where the
differences, if any, lie.
V. RESULTS
The objective of this section is to gain insight into the
recreational activities that subjects engage in and also to determine
the factors that influence the decision-making process of cell phone
subscribers.
Table 2 presents a detailed profile on the lifestyle of the
subjects. Since the subjects chose more than one option, the total
percentage will be more than one hundred. The majority of the subjects
(46.1%) use the cell phone to engage in community work/religious

activities and 41.9% of the subjects use the cell phone to engage in
home entertainment activities. A significant proportion of the subjects
(39.3%) also use the cellular phone to engage in internet activities and
30.9% use the cell phone to engage in reading. Whilst a significant
proportion of subjects (29.4%) use the cell phone for entertainment
outside the home such as plays, concerts, opera or movies, a small
proportion of the subjects engage in physical activities such as dancing
(16.8%) and sport (13.7%).
Table 3 depicts the buying patterns of mobile phone users. It was
interesting to note patterns in descending level are:
* Look for bargains (46.4%);
* Focus on quality and will pay extra (43.3%);
* Select the same brand habitually (37.8%);
* Plan purchases carefully (33.9%);
* Rarely take unknown brands (24.7%);
* Analyse features (21.9%); and
* Rely on advertisement information (20.6%).
Table 4 illustrates the impact of four factors on the selection
phase of the purchase process, namely, the network operator, the brand,
technology and the subscription fee. Table 4 also highlights the mean
scores of the factors influencing the selection process on a five-point
rating scale using mean score values. The mean scores (M) obtained in
descending level are:
* Choice of cell phones with the technology (Mean = 3.91);
* Selection of the network operator (Mean = 3.72); and
* Cell phone brand irrespective of the price of the contract (Mean

= 3.22).
From a technological perspective, a significant percentage of
subjects (35.5% agree and 38.7% strongly agree) prefer using cell phones
with the latest technology. Perhaps, the technological advancement in
the cell phone trends plays a critical role in the telecommunications
industry, thus obtaining the highest mean score (3.91). The lowest mean
scored was attributed to the choice of the brand (3.22).
Table 5 depicts the subjects' perceptions of the cellular
network operators on a five-point rating scale (strongly disagree to
strongly agree) and the mean scores depicted in descending value of mean
score value:
* The intention to continue use of the current cellular network
operator (Mean = 4.05);
* The customer service provided by current network operator (Mean =
3.94); and
* Recommendation of the network operator to friends and/or
relatives (Mean = 3.92).
Table 6 highlights the quality of services rendered by cellular
network operators on a five-point rating scale (strongly disagree to
strongly agree) and the mean scores depicted in descending value of mean
score value.
* The effectiveness of SMS delivery (Mean = 4.11);
* Voice calls reception (Mean = 3.91);
* The overall quality of data transmission (Mean = 3.90);
* The value added services (Mean = 3.86);
* The multimedia services (Mean = 3.85);

* The internet/ GPRS service (Mean = 3.65);
* Administrative fees (Mean = 3.50); and
* The cost of calls during the peak periods (Mean = 3.35).
The highest mean score of 4.11 was obtained for the effectiveness
of SMS delivery and the majority of subjects (52.1% agree and 33.4%
strongly agree) indicated that the Short Messaging System (SMS) delivery
is effective. The lowest mean score of 3.35 was obtained for the cost of
calls during the peak periods and the majority of the subjects (37%
agree and 17.4% strongly agree) maintained that the cost of calls during
peak periods is relatively good in the peak period. Interestingly,
however, 26.9% of subjects did not agree with the statement.
Hypothesis 1: There is a significant difference in network
perceptions amongst subjects varying in biographical profiles (age,
marital status, occupation, qualification, language and gender),
respectively.
Table 7 indicates that the subjects varying in age reflect
significant differences only for recommending their current network
operator at the 5% level of significance. In order to assess exactly
where the differences lie, a Post Hoc Scheffe's test was conducted.
With regards to recommending the network operator, it was found that
subjects between the 18-40 age categories attached a higher level of
importance to this dimension than older groups. No significant
differences were noted for customer service and continued use of the
operator dimensions. Thus, Hypothesis 1 is partially accepted in terms
of age.
Table 8 indicates that the female and male subjects reflect

significant differences only for recommending the network operator
dimension at the 5 % level of significance. It was interesting to note
that female subjects are more willing to recommend their cellular
network operator and attach a higher level of importance to the
dimension than male subjects. No significant differences were found for
customer service and continue using my operator. Thus, Hypothesis 1 is
partially accepted in terms of gender.
Hypothesis 2: There is a significant difference in network service
delivery amongst subjects varying in biographical profiles (age, marital
status, occupation, qualification, language and gender), respectively.
Table 9 reveals that the subjects in the age groups reflect
significant differences for each of the network services (internet, and
quality of data transmission) at the 1% level of significance. In
addition, they reflect significant differences for the value-added
services at the 5% level of significance. In order to determine exactly
where the differences lie, the Post Hoc Scheffe's test was
conducted. It was noted that network delivery subjects between the 18-40
age category attached a higher level of importance to these dimensions
(internet services, value-added services and quality of data
transmission) than older subjects. It is was also noted that there were
no significant differences for voice call reception, SMS delivery, and
cost of calls during peak periods, connection fees and multi-media
messages. Thus, Hypothesis 2 is partially accepted in terms of
differences based on age.
Table 10 illustrates the subjects in the marital groups reflect
significant differences only for the cost of calls in peak periods at

the 1% level of significance. In order to determine exactly where the
differences lie, the Post Hoc Scheffe's test was conducted. It was
noted that with regards to the cost of calls, the widowed subjects
attached a higher level of importance than other subjects. No
significant differences were noted for the voice call reception, SMS
delivery, GPRS/internet services, value- added services and the quality
of data transmission dimensions (connection fees and multimedia
messages). Thus, Hypothesis 2 is partially accepted in terms of
differences based on marital status.
Table 11 reveals that the subjects in the occupational groups
reflect significant differences for the network services (SMS delivery,
GPRS/internet services, quality of data transmission and multi-media
messages) at the 1% level of significance. Furthermore, they reflect
significant differences for connection fees at the 5% level of
significance. In order to assess exactly where the differences lie, the
Post Hoc Scheffe's test was conducted. With regards to SMS
delivery, it was found that subjects in professional and technical
occupations attached a higher level of importance to this service than
subjects in other professions. Furthermore, with regard to internet
services, quality of data transmission and connection fees, it was found
that subjects in technical occupations attached a higher level of
importance to these services. It was also interesting to note that
subjects in professional occupations attached a higher level of
importance to multi-media messages. It was also noted that there were no
significant differences for voice-call reception, value-added services
and cost of calls during peak periods. Thus, Hypothesis 2 is partially

accepted in terms of differences based on occupation.
Table 12 shows that the subjects in the language groups reflect
significant differences only for the quality of data transmission at the
1% level of significance. In order to assess exactly where the
differences lie, a Post Hoc Scheffe's test was conducted. It was
interesting to note that Afrikaans speaking subjects attached a higher
level of importance to the quality of data transmission to this service
than subjects in other language groups. However, no significant
differences were noted for voice call reception, SMS delivery,
GPRS/internet services, value-added services, cost of calls during peak
time, connection fees and multi-media messages. Thus, Hypothesis 2 is
partially accepted in terms of differences based on language.
Table 13 shows that the subjects in the gender groups reflect
significant differences only for value-added services, cost of calls in
peak periods and connection fees dimensions at the 1% level of
significance. In order to determine exactly where the differences lie,
the mean and t values were examined. It was found that female subjects
attached a higher level of importance for these services than male
subjects. No significant differences were noted for voice call
reception, SMS delivery, GPRS/internet services, quality of data
transmission and multi-media messages. Thus, Hypothesis 2 is partially
accepted in terms of differences based on gender.
V1. DISCUSSION OF RESULTS
Cell Phones with the Latest Technology Encourages Purchase of
Handsets
In this study, some of the subjects (18-29 year old, single,

students and self-employed) attached a higher level of importance to
cell phones with the latest technology than other groups This finding
confirms Claycomb & Martin (2002) view that asserts that when
customers know they are purchasing the latest and most advanced cell
phone, it overcomes technological boredom and, therefore, encourages the
repurchase of a new handset. Consequently, cell phone manufacturers are
too keen to find innovative ways to market the highly technological
features of cell phones (Cobweb: information for business, 2007). As a
result, the network operators seek new technological products and
services on a regular basis such as wireless application protocol (WAP),
general packet radio service (GPRS), third generation systems (3G)
products. These innovative offerings can be adopted easily, as long as
it is not expensive. Malebanye (2007) maintains that the younger
generation (18-40 years) will not buy any product that does not fit into
or enhance their lifestyle. Therefore, cell phones with the latest
technology enhance the lifestyles of subscribers.
Cell Phone Brand Plays an Important Role in the Choice of Packages
With regard to the cell phone brand, the study found that
self-employed subjects attached a higher level of importance to the cell
phone brand, irrespective of the subscription fee. It was noted that
post-graduate and Zulu subjects also indicated that the cell phone brand
was an important variable in the purchase process. According to a survey
conducted by Markinor in 2006, it was found that, when subscribers renew
their contracts, they choose packages according to the cell phone brand.
Therefore, advertisements should always emphasize the cell phone brand
in the advertisements. Furthermore, when new models of the same brand

are launched on the market, cell phone service providers and dealers
should announce the models in their printed and electronic newsletters
and brochures.
Service Delivery is the Principal Customer Retention Strategy
The study revealed that 80.7% of the subjects felt that, overall,
the customer service provided by the network operators was efficient and
reliable. The female subjects attached a higher level of importance to
customer service than the male subjects. Furthermore, the majority of
the subjects interviewed (network operators) maintained that the most
critical success factor of for the cell phone network sector is customer
service. Customer service is regarded as the principal strategy to gain
a competitive advantage because it cannot be easily imitated by
competitors. Network operators monitor customer service delivery through
communication tools such as focus groups, feedback from store managers,
courtesy calls from subscribers and mystery shoppers. The employees and
managers hold regular meetings with service providers and dealers to
monitor service delivery to cell phone subscribers. They also
communicate regularly through e-mail, dealer bulletins, community
engagements, sponsorships and field visits. The overall objective of
these activities is to build positive word-of-mouth communications and
positive rapport to enhance customer relationships. Customer service is
as old as the history of trade and commerce. However, the emphasis of
developing relationships with customers was given less attention after
the industrial revolution when the middleman was introduced in the
distribution chain (Gronroos, 2004).
The purpose of customer care is to make customers feel good by

employees. It is, therefore, critical for marketers to develop a
customer-focused corporate culture amongst personnel (Cant et al.,
2002). Customer service focuses on managing customer perceptions and
addressing customer complaints as a challenge and opportunity to exceed
customer expectations (Stone, 2004). Providing a high level of customer
service is important to improve service delivery and retain customers
(Singh & Deshmukh, 1999). Exceptional customer service is the only
thing that will differentiate a business from the competitor. Therefore,
a strong customer-focused culture is essential to achieve a competitive
advantage (Stone, 2004).
The strategic goal of Orange, a European cell phone carrier is to
enhance brand image by providing outstanding customer service. Computer
software processing system (Speech Analytics) is used to minimize the
impact of poor customer service, customer complaints, and requests for
account cancellation, technical issues, repeat calls, professionalism
issues, and long periods of silence, heightened emotion and service
issues. The information from Speech Analytics is used to detect an early
warning mechanism to identify operational and service issues. These
insights enabled Orange to predict which customers were likely to
defect. At risk customers are identified within 24 hours of the initial
contact. Thus, Orange's first priority is to reduce customer
attrition by providing outstanding experiences and eliminating reasons
to switch providers (Fluss, 2009). Customer retention is achieved only
when the customers believe that customer service delivery is effective
and high, thus leading to customer satisfaction. When the customer is
satisfied, loyalty towards the cell phone enterprise is strengthened

(Omotayo & Joachim, 2007).
Quality of Services Provided by Network Operator
Network providers should focus on the transmission quality and
network coverage as the core attributes of their service offerings.
Network quality has the strongest influence on actual performance and on
customer perceptions. Good service recovery can turn angry/frustrated
customers into satisfied ones that will recommend the enterprise and,
consequently, create loyalty (Lin & Ding, 2004). Customer
expectations of quality treatment in a service involves prompt service,
understanding customers' needs and wants, individual attention,
courteous and polite treatment, expression of interest to help
customers, efficient service delivery, explanation of procedures,
attention and resolution of complaints and taking responsibility of
personal/corporate errors (Singh & Deshmukh, 2002). One way to
assess service quality is to assess the interaction between the customer
and the network operator (Jones & Farquhar, 2003).
The subscribers of the three network operators have expressed
increased satisfaction levels with their respective operators. Vodacom
has the highest level of overall satisfaction amongst subscribers and
has also shown an increase in the number of service providers (Barnhoom,
2006). Network quality is like an intangible image from a
customer's perspective. Thus, appropriate advertising and
commercial slogans should demonstrate the network's quality to
create an image in the minds of the customer (Lin & Ding, 2004). The
reputation of a network, positive or negative, will be broadcast by
customers, regardless of prior experience or marketing efforts (free

gifts, discounts and others). Factors that consumers take into account
when they choose a network operator include the network size (Kim &
Yoon, 2004).
Service quality in the cell phone industry is critical. The
convergence of voice, data, entertainment, broadcasting and computing
sectors into the third generation industry is creating opportunities and
challenges for the cell phone and broadcasting sectors. Protecting
existing customers through quality services, while finding new ways to
meet new demands, will be the key to success in the new cell phone
market (van der Walt & Pampallis, 2002). The key quality issues
include:
The Effectiveness of SMS/MMS Delivery
A major segment of the subjects (85.5%) indicated that the SMS/MMS
delivery is very effective. Interestingly, professionals and technicians
were more satisfied than subjects in other occupations. These findings
clearly indicate that the network message delivery system meets the
expectations of subscribers. SMS/MMS offer an enterprise a cost
effective method of communicating with one or many customers
irrespective of their geographical location (Claycomb & Martin,
2002). Thus, network operators can also use SMS and MMS to communicate
with subscribers as almost all cell phones have SMS capabilities.
Voice-call Reception
A major percentage of the subjects (79%) revealed that the
voice-call reception is excellent. It is, therefore, apparent that the
infrastructures of the networks are efficient and effective. Since voice
calls is the core service of network operators, network operators should

monitor the infrastructure to ensure service excellence. However,
network operators are also emphasising non-voice cell phone services in
an attempt to differentiate themselves from competitors and generate
revenue growth to combat the average revenue per user from voice traffic
(Malebanye, 2007).
The Overall Quality of Data Transmission
Interestingly, Table 5 shows that 75.6% of the subjects reported
that the overall quality of data transmission is satisfactory. Some
subjects (18-40 year old and Afrikaans speaking) are more satisfied with
the data transmission than the others. Since network operators are
interested in non-voice services to create a competitive advantage, this
finding indicates that marketers should direct their marketing
activities to this group.
The Importance of Value-added Services
It was interesting to note that 68.7% of the subjects indicated
that the value-added services are important to them (Table 5). It was
also noted that 1 the 8-40 age group, female and professional subjects
also attached a higher level of importance to the dimension than the
other groups. On the other hand, 26.3% of the subjects were uncertain
about the importance of this dimension. Perhaps, greater emphasis should
be directed to informing subscribers about the value-added services
provided by network operators. Network operators should, therefore,
direct their promotional activities to this age group. Satisfaction with
the value-added services refers to the satisfaction associated with the
usefulness of the services (call forwarding, caller identification,
displays and SMS services) (Kim & Yoon, 2004).

The GPRS/internet Service
The majority of the subjects (57, 8%) reported that the
internet/GPRS service is very fast. The technicians and the 18-40 age
group subjects were more satisfied than the other subjects. However, a
significant segment of the subjects (29.8%) were uncertain. Since the
internet service is a relatively new telecommunication method, this
dimension warrants attention as it can lead to negative word-of-mouth
communication.
Costs
Customer costs refer to all the monetary time, energy and
psychological costs associated with marketing offer. In other words, all
the toil and trouble of acquiring an offering. The monetary cost takes
two forms, namely, transactional and lifestyle costs. Transactional
costs include the price, value-added services, connection fees, billing
fees and delivery. Lifestyle costs refer to maintenance and repair,
protection and insurance. When cell phone enterprises offer one or more
of these costs, it is often perceived as providing better value for
money (Kotler & Keller, 2006). Therefore, cell phone providers often
offer free connection fees or free delivery and also offer warranties
and repair services (Ferrel et al., 2002).
Connection / administrative Fees
The connection fees/administrative fees apply only to post-paid
subscribers. A major segment of the subjects (58.9%) reported that the
administrative/connection fees are reasonable. It was also noted that
widowed, technicians and female subjects are more satisfied with the
costs than other biographical groups. At the end of the subscription

period, if the subscriber remains with the same provider, connection
fees are not charged. Administrative fees refer to mandatory fees
charged to the subscriber.
Overall Costs
Satisfaction with the tariff/fees refers to the overall costs
(subscription fees, voice-call charges, and other services related to
tariff plans offered by cell phone marketers (Kim & Yoon, 2004).
Customers feel satisfied when they obtain a reduction in the price or
when uncertainty about future benefits is reduced (Lin & Ding,
2004). There are two methods to determine whether cellular tariffs are
expensive or not. The first method compares the tariff with other
countries. The second is to determine whether tariffs are affordable
(Knott-Craig, 2005). A price reduction strategy usually leads to price
buyers who are least loyal and least profitable (Johnson & Schultz,
2004). Loyal customers are less price sensitive and also inclined to
increase the frequency of their transactions. They also influence their
peers and family members to interact with service providers (Jones &
Farquhar, 2003). Perhaps, the subjects are loyal to their respective
providers and not so sensitive to the price. Although cell phones have
been available for several years, the service cost is very expensive
(Rapid assessment of cell phone development, 2007).
Recommend Operator
Referrals are generally perceived as the most influential source of
the market communications. Word-of-mouth is influential when the quality
of service varies or when the services are difficult to evaluate prior
to the purchase (Claycomb & Martin, 2002). The subjects are very

satisfied with the service delivery, and are also prepared to recommend
their respective cellular network operators to friends, relatives and
associates. It was interesting to note that the 18-29 age group and
females were more likely to recommend their network operators than the
other groups. Perhaps, this age group uses the operators more than the
others.
Customer-retention Initiatives
The majority of the subjects (90%) interviewed indicated that the
existing customer service and loyalty programmes provided by network
operators are satisfactory. However, a issue of concern is the steady
increase of customer attrition in all three networks with the
introduction of number portability. This finding is supported by a
report on the customer-retention initiatives practised in the industry.
According to a report on the customer retention initiatives, there has
been a decrease in the number of new post-paid contract subscribers.
Therefore, network operators have set up customer relationship
management programmes to attract new subscribers and retain existing
ones. The operators use call centres to keep in contact with its
subscribers and improve service levels by pre-empting their needs and
offering loyalty rewards. This initiative has reduced post-paid contract
subscribers (Tredoux, 2009).
Furthermore, the majority of the subjects (90%) indicated that
their respective network operators provide customer contact staff with
training on customer service practices, cell phone use, repair service
facilitation, cell phone software upgrade advice, after sales contact
and technical advice on new product features and services. It was

significant to note that all the subjects interviewed indicated that the
company creates a customer profile. However, only 20% of the subjects
interviewed indicated that the data from the customer profile is used to
monitor subscribers' accounts to offer more customized products and
services to subscribers. Greater emphasis should be placed on using
customer data to improve service delivery to reduce customer attrition.
It is important to note that what gets measured gets done. Many
enterprises neither measure customer profitability nor discussed by
executive managers. One of the reasons for this is that most enterprises
indicate that they are customer driven, but are, in fact, product driven
(Johnson & Schultz, 2004). Therefore, Orange, a European cell phone
operator, implemented a strategy to protect and retain their customer
base. It adopted a customer-centric strategy to improve service quality
and customer retention. From an internal basis, it invested in training
and quality programmes to improve knowledge, communication skills and
responsiveness for customer contact agents and personnel. All
individuals interacting with customers engaged in a one-month training
course at Orange University prior to customer interaction (calls,
e-mails and chat sessions). After completion of the training course,
personnel were placed in a nested environment with high supervision to
ensure that they were supported when learning to deliver outstanding
service.
A formal quality assurance (QA) programme was instituted to measure
how well personnel adhered to internal policies and procedures. Every
month, supervisors review four to seven calls per personnel to identify
areas for training and coaching. From an external basis, Orange contacts

customers through phone calls, e-mails, to reduce the incoming calls
(Fluss, 2009). Such a training programme should be introduced in South
Africa. With the introduction of number portability in Spain (2000),
network operators had an opportunity to persuade customers to switch to
new and fashionable handset ranges and cheaper call bundles. Thus,
profiling customers to identify the habitual switches and high value
customers is an effective strategy to reduce risk and wastage. An
integrated customer centric approach, across all touch points with the
enterprise (SMS, email, face-to-face, telephone, bill statements and
customer correspondence) is used. All customer communication needs to be
consistent and relevant to increase customer satisfaction (Pellegrini,
2009).
VII. CONCLUSIONS AND RECOMMENDATIONS
The demographic variables are related to the purchase behaviour of
subjects and also predict how the targeted market will respond to the
marketing mix of cell phone enterprises. The demographic profiles of the
subjects give cell phone marketers an opportunity to identify individual
consumers. Marketers can use the data to customise products/services and
promote offerings to meet individual customer needs and also create a
database.
Develop Customised Services / products for the Different Age Groups
In this study, 50.8% of the subjects were between 18-29 years old
and 25.2% of the subjects were between 30-40 years. Although the cell
phone is presently a must have accessory, the findings of the study
reveal that cell phone ownership with the latest technology is the
highest among subscribers in the 25-40 age category, with cell phone

ownership declining sharply with subscribers in the 45-49 age group. In
Europe, cell phone penetration is close to saturation levels. Since the
55-65 year old group has more time to devote to new habits, cell phone
marketers are directing their respective promotional activities to the
55-65 age groups. In addition, in South Korea, a range of customised
services for the different age groups was introduced to the Korean cell
phone. Therefore, the cell phone marketers should review the existing
marketing strategy and use age as is a key segmentation variable to
create customised cell phone services for the different age groups.
Females Play a Critical Role in the Purchase of Cell phone Products
and Services
Male and female subscribers respond differently to the cell phone
decision-making process. Due to the changing role of females in the
workplace, the study reflects the influence that women havewith regard
to the purchase of durables such as cell phones. Females are also more
sensitive to stimuli than males and, thus, play respond better to
loyalty programmes initiated by cell phone enterprises (Cant et al.,
2006). It was also found that female subjects play a prominent role with
regard to creating positive word-of-mouth communication and providing
feedback to providers. Cell phone marketers should interact with female
subscribers so that the latter can provide suggestions to improve
service delivery.
Network Operators
MTN has adopted a quality strategy to provide for mainly the
post-paid and corporate markets with sophisticated data transfer
products. It strives for its volume growth on the African continent. In

contrast, Vodacom has adopted a quantity strategy (market share) to the
South African population. Cell C launched its network business in
November 2001. It targets the upper section of the pre-paid market and
the middle of the contract market (Simpson & Dore, 2007).
Although the Vodacom network operator has the largest market share
in South Africa, the majority of the subjects in the study have MTN
contracts. However, the average number of Subscriber Identity Module
(SIM) increased from one per user in 1997 to 1.47 in 2008. This gap
between users and connections is expected to continue as subscribers are
permitted to have a maximum number of SIM cards per user from 2009
onwards. The reason for this is to reduce the costs of interconnection
fees. In this study, it was also found that the two main reasons
provided by subjects for switching network operators is the cost of
voice calls and inefficient customer service. According to Fluss (2006),
customers change operators to get a better phone or more free minutes.
On the other hand, Pellergrini (2009) noted that subscribers are enticed
to change operators with price-based offerings or popular brands.
Costs
The majority of the subjects use the cell phone during off-peak
periods when it isless expensive. It is, therefore, apparent that the
cost of calls during peak periods is very expensive. The cost of calls
should be addressed as the average revenue per user in the cell phone
industry is on the decline.
Customer Service
Customer service is the starting point of relationship building.
Customers expect hassle-free service encounters from every enterprise.

Customers also prefer to deal with a person rather than a faceless
enterprise (Power et al., 2000). Customer service was reported as the
most critical success factor in the network sector. Due to the emphasis
of customer service, the majority of the subjects indicated that
customer service was efficient and reliable. It was also found that
network operators monitor customer service delivery through focus groups
and regular feedback from store managers. The network operators also
communicate regularly with store manages. According to Fluss (2009), a
European operator (Orange) enhanced brand image through outstanding
customer service. In addition, by using a computer software programme,
Orange minimised the impact of poor customer service it had and it,
consequently, led to reduced customer attrition. The majority of the
subjects in the study reported that customer contact staff was well
trained. It was found that MTN exceeds the international industry norm
by training its employees.
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Table 1
Demographic Profile of Respondents (N = 476)
Item Category Frequency Percentage
Age Group 18-29 242 50.8
30-40 120 25.2
41-55 92 19.3
56-65 22 4.6
Gender Male 177 37.2
Female 299 62.9
Marital Status Single 249 52.3
Married 191 40.1
Widowed 19 4.0
Divorced/ Separated 16 3.4
Occupation Administrative 70 14.7
Professional 171 35.9
Student 139 29.2

Technical and other 23 4.8
Home executive 21 4.4
Managerial 26 5.5
Self employed 26 5.5
Qualification Secondary School 253 53.2
Graduate 132 27.7
Post graduate 91 19.1
Language English 299 62.8
Afrikaans 21 4.4
Zulu/Xhosa 149 31.3
Other 7 1.5
Total 476 100
Table 2
Use of Cell Phone for Recreational Activities / hobbies *
Category Frequency Per cent
Community/religious 209 46.1
Reading 140 30.9
Cooking 106 23.4
Internet activities 178 39.3
Television/entertainment 190 41.9
Engage in a sport code 76 16.8
Plays/concerts/opera/movies 133 29.4
Dancing 62 13.7

* multi-option question
Table 3
Buying Patterns of Cellular Phone Users *
Category Frequency Per cent
Select the same brand habitually 176 37.8
Look for bargains /special offers 216 46.4
Focus on quality and will pay extra 202 43.3
Rarely take unknown brands 115 24.7
Like to try new/different brands 71 15.2
Plan my purchase carefully 158 33.9
Analyse features( weight/package) 102 21.9
Never read information on package 24 5.2
Rely heavily on the opinions: others 79 17.0
Rely on advertisement information 96 20.6
* multi-option question
Table 4
Factors Influencing Selection Process
Category Strongly
disagree Disagree Uncertain

Mean N % N % N %
The network provider 3.72 35 7.4 70 14.7 42 8.8
is more important
than a free
cell phone
I buy a specific brand, 3.22 55 11.6 118 24.8 59 12.4
irrespective of the
price of the contract
I prefer cell phones 3.91 24 5.0 56 11.8 43 9.0
with the latest
technology
I choose a specific 3.22 58 12.2 115 24.2 63 13.2
cell phone brand,
irrespective of the
subscription fee
Category Strongly
Agree agree
N % N %
The network provider 175 36.8 154 32.4

is more important
than a free
cell phone
I buy a specific brand, 155 32.6 89 18.7
irrespective of the
price of the contract
I prefer cell phones 169 35.5 184 38.7
with the latest
technology
I choose a specific 145 30.5 95 20.0
cell phone brand,
irrespective of the
subscription fee
Table 5
Subscribers Perceptions of Cellular Network Operators
Category Strongly Disagree Uncertain
disagree
Mean N % N % N %
Overall the customer 3.94 19 4.0 21 4.4 52 10.9

service provided by
my provider is
efficient and reliable
I will recommend my 3.92 14 22.9 27 5.7 63 13.2
cell phone operator to
friends, relatives etc
Given the opportunity 4.05 16 3.4 16 3.4 55 11.6
of number portability,
I will go on using my
cell phone operator
Category Important Very
important
N % N %
Overall the customer 260 54.6 124 26.1
service provided by
my provider is
efficient and reliable
I will recommend my 245 51.5 127 26.7
cell phone operator to
friends, relatives etc

Given the opportunity 228 47.9 161 33.8
of number portability,
I will go on using my
cell phone operator
Table 6
Quality of Services Provided by Cellular Network Operator
Category Strongly Disagree Uncertain
Disagree
Mean N % N % N %
The voice calls 3.91 18 3.8 28 5.9 54 11.3
reception is excellent
The SMS delivery is 4.11 8 1.7 21 4.4 40 8.4
very effective
The GPRS/Internet 3.65 22 4.6 37 7.8 142 29.8
service is very fast
The value added 3.86 9 1.9 15 3.2 125 26.3
services rendered is
important to me

The overall quality 3.90 9 1.9 22 4.6 85 17.9
of data transmission
is satisfactory
The cost of calls 3.35 48 10.1 80 16.8 89 18.7
during peak periods
is good
The administrative 3.50 37 7.8 49 10.3 109 23.0
fees are reasonable
The quality of 3.85 8 1.7 29 6.1 111 23.3
multimedia messages
is outstanding
Category Agree Strongly
agree
N % N %
The voice calls 254 53.4 122 25.6
reception is excellent
The SMS delivery is 248 52.1 159 33.4
very effective

The GPRS/Internet 158 33.2 117 24.6
service is very fast
The value added 209 43.9 118 24.8
services rendered is
important to me
The overall quality 249 52.3 111 23.3
of data transmission
is satisfactory
The cost of calls 176 37.0 83 17.4
during peak periods
is good
The administrative 189 39.9 90 19.0
fees are reasonable
The quality of 207 43.5 121 25.4
multimedia messages
is outstanding
Table 7
Network Perceptions and Age
Dimension ANOVA Post Hoc's Scheffe's Test

F P Age Mean Standard
groups Deviation
Customer service 0.796 0.497 -- -- --
Recommend my operator 2.804 0.039 ** 18-29 4.04 0.889
30-40 3.88 0.922
41-55 3.83 1.055
56-65+ 3.55 1.011
Continue using my operator 2.368 0.070 -- -- --
** p < 0.05
Table 8
Tests with Gender and Cellular Network Operator
Dimension T test P
Customer service -1.193 0.233
Recommend my operator -2.029 0.043 **
Continue using my operator -0.670 0.503
* p < 0.05
Dimension Gender Number Mean Standard Deviation
Recommend my operator Male 177 3.82 1.056
Female 299 4.00 0.863
Table 9

Network Service Delivery and Age
Dimension ANOVA Post Hoc's
Scheffe's Test
F P Age Mean Standard
groups Deviation
Voice call reception 0.409 0.747 -- --
SMS delivery 0.220 0.882 -- --
GPRS/ Internet services 4.060 0.007 * 18-29 3.77 1.048
30-40 3.68 1.086
41-55 3.43 1.092
56-65 3.14 0.990
Value added services 3.235 0.022 ** 18-29 3.93 0.909
30-40 3.89 0.838
41-55 3.77 0.866
56-65 3.36 0.902
Quality of data transmission 4.227 0.006 * 18-29 4.01 0.822
30-40 3.92 0.836
41-55 3.68 0.983
56-65 3.59 0.908
Cost of calls in peak time 1.002 0.392 -- -- --
Connection fees 2.197 0.088 -- -- --
Multi-media messages 1.910 0.127 -- -- --

* p <0.01 ** p <0.05
Table 10
Network Service Delivery and Marital Status
F P Marital Mean Standard
status Deviation
Voice call reception 0.290 0.833 -- -- --
SMS delivery 2.235 0.083 -- -- --
GPRS/ Internet services 1.817 0.143 -- -- --
Value added services 0.804 0.492 -- -- --
Quality of data 1.818 0.143 -- -- --
transmission
Cost of calls in peak time 5.602 0.001 * Single 3.23 1.283
Married 3.51 1.156
Widowed 3.95 0.970
Separated 2.56 1.094
Connection fees 1.731 0.160 -- -- --
* p < 0.01
Table 11

Network Service Delivery and Occupation
F P Occupation Mean Standard
groups Deviation
SMS delivery 2.942 0.008 * Administrative 4.13 0.883
Professional 4.19 0.677
Student 4.14 0.844
Technical 4.17 0.984
Home ex 3.38 1.431
Managerial 4.04 1.038
Self employed 4.04 0.824
GPRS/ Internet 3.176 0.005 * Administrative 3.54 1.224
services Professional 3.61 1.025
Student 3.73 1.040
Home ex 3.33 1.197
Quality of data Administrative 3.94 0.883
transmission 4.481 0.000 ** Professional 3.92 0.800
Student 4.01 0.881

Home ex 3.19 1.365
Cost of calls in 0.584 0.743 -- -- --
peak time
Connection fees 2.352 0.030 ** Administrative 3.10 1.157
Student 3.60 1.183
Home ex 3.20 1.361
Multi-media messages 3.057 0.006 * Administrative 3.66 1.020
Student 3.88 0.964
Home ex 3.19 0.981
* p <0.01 ** p <0.05
Table 12
Network Service Delivery and Language

F p Language Mean Standard
groups Deviation
SMS delivery 1.234 0.292 -- -- --
GPRS/ Internet services 0.142 0.868 -- -- --
Quality of data transmission 5.339 0.005 English 3.81 0.901
Afrikaans 4.14 0.573
Zulu/Xhosa 4.07 0.794
Cost of calls in peak time 0.519 0.595 -- -- --
Connection fees 0.133 0.875 -- -- --
* p < 0.01
Table 13
T Tests with Gender and Services Provided by Network Operator
Dimension T test P
Voice call reception -0.526 0.599
SMS delivery -0.963 0.336
GPRS/ Internet services 0.296 0.767

Value added services -2.597 0.010 *
Quality of data transmission -1.884 0.060
Cost of calls in peak time -4.695 0.000 *
Connection fees -3.048 0.002 *
Multi-media messages -0.432 0.666
* p < 0.01
Dimension Gender Number Mean Standard
Deviation
Value-added services Male Female 177299 3.733.95 0.9380.850
Cost of calls in peak time Male Female 177299 3.013.55 1.2661.170
Connection fees Male Female 176298 3.313.64 1.1851.102

Customer perceptions of south African cellular network operators.

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