the impact of sales promotion on the buying behavior of consumers of MTN

ABSTRACT

The study was aimed at accessing the impact of sales promotion on the buying behavior of consumers of MTN, Buea. In an attempt to meet up with this broad coverage, the research work was broken down into three specific objectives which were; To determine how bonuses effect the purchase decision of Cameroon of MTN Cameroon, to examine how loyalty points affects the purchase decision of subscribers immediate purchase decision of subscribers of MTN Cameroon and to assess how free trial induces immediate purchase by users of MTN Cameroon. The study used descriptive survey design with population of the study consisting of the employees of employees of MTN, Buea. Data were collected from 50 respondents using questionnaires. The demographics questionnaires were analyzed by simple descriptive statistic presented in frequency tables while the main worry was analyzed by regression linear analysis.

The study found out that there was a positive relationship between MTN bonuses and consumers buying behaviours. The results further revealed that loyalty points influences consumers buying behaviors positively. The results of the findings in respect to free trial induces revealed that, free trial induces turn to keep MTN customers loyal.

And finally, on the main worry of this research work, it was discovered that consumers buying behavior is totally dependent on the sales promotion used by MTN, such a rejection of the null hypothesis and acceptance of the alternative hypothesis that states that sales promotion has a significant effect on consumers buying behavior.

CHAPTER ONE

INTRODUCTION

1.1 Background To The Study

The business environment has become very competitive in the 21^st century due to the growth in technology, infrastructure and access to information around the globe. This has made the environment very complex and consumer preferences keep changing because of the low switching cost in the market. Due to this increasing demand of consumers in the market, management of business organizations have to increase their resources with attention focused more on attracting and retaining its customers. The ever increasing competition in the global market has prompted organisations to be determined and ensure satisfaction of customer needs and wants more efficiently and effectively than ones competitors (Kotler, 1988).

The Cameroonian Telecom Industry is one area that has experienced an increased competition in the last six (6) years. In August 1994, the Government of Cameroon deregulated the telecom sector and took an important step in embracing the potential of a competitive market to generate growth and innovation in the sector.  The Government of Cameroon therefore authorized four different mobile operators to operate in Cameroon and also created a robust and aggressive market for setting off the wireless telecommunication network, whose growth has been strong and spreading through the country in recent years. This reform was also to ensure that, information is made accessible to all and sundry, and not only to the rich in society as was the case. In 1997, Cameroon also signed the final World Trade Organization (WTO) agreement on basic telecommunications indicating their readiness to enhance information in the country and beyond.

One of the commonly used communication tools by Cameroonian telecom providers is sales promotion. Sales promotion is an initiative undertaken by organizations to promote and increase sales, usage or trial of a product or services (Aderemi, 2003). Sales promotion refers to the provision of incentives to customers or to the distribution channel to stimulate demand for a product.  It is an important component of an organizations overall marketing strategy along with advertising, public relations and personal selling. Sales promotion acts as a competitive weapon by providing an extra incentive for the target audience to purchase or support one brand over the other. It is particularly effective in spurring product trials and unplanned purchases.

MTN Cameroon is an operating company. The world’s leading mobile telecommunications company, with a significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States. MTN Cameroon is the only total communications solutions provider in Cameroon (mobile, fixed lines, internet, voice and data) and is currently unmatched in providing fixed line and internet services.  As a corporate body, MTN value its customers and constantly build key relationships with the private sector and government alike. MTN Cameroon currently controls about 21 per cent of the total market share in the cellular mobile voice market as at May, 2017.

They use sales promotion in enticing new customers, maintain the existing ones and also reward the loyal customers. A number of sales promotional packages including 1.3.8 promotions are used to influence the behavioural process of these consumers. This package allows consumers to enjoy 1Gp per minute to MTN numbers from 9pm -11pm and from 5am-7am every day when they spend 50Gp on the MTN network during the day from 7am to 9pm. Consumers can also call friends and family on  MTN at 3Gp per minute over the weekend when they spend GH¢ 2.50  from  Monday to Friday. Consumers can also make calls at 8Gp per minute to any network, anytime, anywhere. All these are strategies to influence the consumer buying process to increase sales and also to reward those consumers who have been loyal to the company. For instance, MTN has sales promotional package that provide exciting offers for Vodafone loyal customers (MTN Family and VIP Clubs). With this package, the loyal customer gets benefits anytime they purchase Vodafone products or services. The essence of this package is to influence the customers to patronize the firm’s products and services and also stay on the network afterwards. MTN also offer consumers the opportunity to get back any amount of credit they spend between Mondays to Friday over the weekend for free. With the free credit, it can be used to make calls, text or browse.

1.2 Statement Of The Problem

Service providers like the Telecom operators’ needs to provide offerings or services that satisfy consumer needs and expectations to ensure the company’s economic survival. In order to achieve this feat, they need to understand consumer buying behaviour to help them evaluate their service offerings. Consumers of Telecom service go through a cycle of decision making processes before making a purchase decision which define their behaviour in the consumption of the services they purchase from these companies. 

The consumer buying process is a complex matter as many internal and external factors impact on the buying decision of the consumer. The consumer makes a purchase decision by examining alternatives before making the purchase. Sometimes, the purchase may differ from the purchase decision reached earlier. There is always a post purchase evaluation by the consumers after purchasing and consumption of the service. The consumer determines whether he was satisfied or not with the services rendered. This actually will be an important information reference point to the consumer in determining their behaviour in the next purchase. Because services have experience properties, moods and emotions are critical factors that shape the behavioural process of consumers. Specific factors that may lead to altered consumer buying behaviour are size and composition of the evoked set of alternatives, perceived risk, brand loyalty and attribution of dissatisfaction as Telecom is in the service industry.

This research therefore seeks to find out to what extent the sales promotion practiced by telecom operators influence the consumer buying process. It also seeks to find out reasons for consumers deviation from the established buying process. Therefore the competition in the telecom industry in Cameroon can be described as the need to provide services that satisfy customer’s needs and expectations to ensure the companies economic survival. In order to achieve this, they need to understand customers buying behavior to help them evaluate their service offerings.

Consumers of the telecom service like others go through a circle of decision-making process before making a purchase decision which defines their behavior in the consumption of services they purchase from these companies. The consumer buying process is a complex one as many internal and external factors affect the buying decisions of consumers. The consumers make a purchase decision by examining various alternatives before making the purchase. Sometimes the purchase may defer from the purchase decision. These is always a post purchase evaluation by the consumers after purchasing and consuming the product or service, after which the determines whether or not he/she was satisfied.

This will actually be important information to management because at this stage the consumer can provide information about the product/ service such as perceived risk, brand loyalty and attribution of dissatisfaction of their telecom service provider on the telecom industry. These researches therefore seek to find out to what extend the sales promotion practices by the telecom operators that influence the consumer buying process. It also seeks to find out reason for consumer deviation from the established buying process.

1.3 Research Questions

Generally, the research sought to answer the question on how Consumer Sales Promotional methods affects the buying behaviour of consumers of MTN Cameroon. Research questions can be divided into main and specific Research questions

1.3.1 Main Research questions

What is the effect of Consumer Sales Promotional methods on the buying behaviour of consumers of MTN Cameroon?.

1.3.2 Specific research questions

1. How do bonuses affect the buying behaviour of consumers using the services of MTN Cameron?

2. How do loyalty points affect the purchase decision of subscribers of MTN Cameroon?

• How does free trial affect types of sales promotional methods used by MTN Cameroon?

1.4. Objective Of The Study

1.4.1 Main Objective of the Study

The main objective of this research is to assess how Consumer Sales Promotional methods affect the buying behaviour of consumers of MTN Cameroon.

1.4.2 Specific objectives Of the Study

The specific objectives which guided the study were:

1. To determine how bonuses effect the purchase decision of Cameroon of MTN Cameroon.
2. To examine how loyalty points affects the purchase decision of subscribers immediate purchase decision of subscribers of MTN Cameroon.

• To assess how free trial induces immediate purchase by users of MTN Cameroon.

1. To assess the suggested measures for improvement of sales promotion of MTN Cameroon.?

FURTHER READING: MARKETING PROJECT TOPICS WITH MATERIALS