A STUDY ON FACTORS INFLUENCING BRAND LOYALTY IN MOBILE SERVICE PROVIDERS AMONG COLLEGE OF BUSINESS STUDENTS OF UNIVERSITI UTARA MALAYSIA

REENA BINTI MOHAMAD NASIR

UNIVERSITI UTARA MALAYSIA JUNE 2012

A STUDY ON FACTORS INFLUENCING BRAND LOYALTY IN MOBILE SERVICE PROVIDERS AMONG COLLEGE OF BUSINESS STUDENTS OF UNIVERSITI UTARA MALAYSIA

by REENA BINTI MOHAMAD NASIR

Thesis Submitted to Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, in Fulfillment of the Requirement for the Master of Science

PERMISSION TO USE

In presenting this project paper in partial fulfillment of the requirements for a postgraduate degree from Universiti Utara Malaysia, I agree that the University Library make a freely available for inspection. I further agree that permission for copying of this project paper in any manner, in whole or in part, for scholarly purpose may be granted by my supervisor or, in their absence by the Dean of Othman Yeop Abdullah Graduate School of Business. It is understood that any copying or publication or use of this project paper or parts thereof for financial gain shall not be given to me and to Universiti Utara Malaysia for any scholarly use which may be made of any material from my project paper.

Request for permission to copy or make other use of materials in this project paper, in whole or in part should be addressed to:

Dean of Othman Yeop Abdullah Graduate School of Business Universiti Utara Malaysia 06010 UUM Sintok Kedah Darul Aman

ABSTRACT

Mobile phones have become a necessity in human life. This is due to technological advances that allow people to communicate with each other anywhere and at any time. This also contributes to the increase in the telecommunication sector of the country. Leading telecommunication companies are now competing with each other to become a major provider and attract more customers. This situation also will lead the customers often switch from one provider to another provider to get the best service. As competition is increasing among the companies, it is necessary for them to know about the customers perception on price, service quality, promotions, and trends that play a vital role in choosing the mobile service providers. This study aims to find out what are critical factors that play an important role to select the telecommunication service provider. This study was conducted among College of Business students of Universiti Utara Malaysia. The data is processed by using quantititave analysis. The method used in analyzed the data are Descriptive Analysis and Multiple Regression Analysis as there are four variables involved in this study, which are price, service quality, promotions, and trends. The results provides a comprehensive analysis of the important factors for the customer to select the mobile service providers. The analysis confirms that the significant positive relationship of trends towards brand loyalty. It will be a great challenge for the service providers to prepare their strategic plan in maintaining customer loyalty, and at the same time expending their customer base. In conclusion, the mobile service providers should emphasize the factor such as trends that can maintain customer loyalty as customers today are more intelligent and smart.

ABSTRAK

Telefon bimbit telah menjadi satu keperluan dalam kehidupan manusia. Ini adalah disebabkan oleh kemajuan teknologi yang membolehkan kita untuk berkomunikasi antara satu sama lain di mana-mana sahaja dan pada bila-bila masa. Ini juga menyumbang kepada peningkatan dalam sektor telekomunikasi negara. Syarikatsyarikat telekomunikasi kini bersaing antara satu sama lain untuk menjadi pembekal utama dan menarik lebih ramai pelanggan. Keadaan ini juga mendorong pelanggan untuk sering bertukar dari satu pembekal kepada pembekal yang lain demi mendapatkan perkhidmatan yang terbaik. Dengan persaingan yang semakin hebat, adalah perlu bagi pihak telekomunikasi untuk mengetahui persepsi pelanggan terhadap harga, kualiti perkhidmatan, promosi, dan trend yang memainkan peranan penting dalam pemilihan perkhidmatan telekomunikasi. Kajian ini adalah bertujuan untuk mengetahui faktor kritikal yang memainkan peranan penting dalam pemilihan pembekal telekomunikasi. Kajian ini telah dijalankan di kalangan pelajar Kolej Perniagaan di Universiti Utara Malaysia. Data diproses dengan menggunakan kaedah analisis kuantitatif. Kaedah yang digunakan dalam menganalisis data adalah Analisis Deskriptif dan Analisis Regresi Berganda kerana terdapat empat pembolehubah yang terlibat di dalam kajian ini, iaitu harga, kualiti perkhidmatan, promosi, dan trend. Analisis ini menyediakan keputusan menyeluruh berkenaan faktor penting dalam pemilihan perkhidmatan telekomunikasi dan juga telah mengesahkan bahawa faktor trend mempunyai signifikan yang positif terhadap kesetiaan jenama. Ia akan menjadi satu cabaran besar bagi pembekal perkhidmatan telekomunikasi untuk menyediakan pelan strategik mereka dalam mengekalkan kesetiaan pelanggan, dan pada masa yang sama memperluas asas pelanggan mereka. Kesimpulannya, pembekal perkhidmatan telekomunikasi perlu menitik beratkan faktor seperti trend yang boleh mengekalkan kesetiaan pelanggan memandangkan pelanggan hari ini lebih bijak dan pintar.

ACKNOWLEDGEMENT

Bismillahirrahmanirrahim, Alhamdulillah, all praise due to ALLAH SWT, the Lord of the world that makes it possible for me to complete this project paper. I would like to take this opportunity to express my gratitude and appreciation to the following individuals whose guidance and contribution in preparing this paper. Firstly, I would like to express my gratefulness and appreciation to my supervisor, Prof. Dr. Ruswiati Suryasaputra for her guidance, encouragement and advice throughout the process of completing this project paper. I am truly indebted for her contribution in terms of time, patience, attentions and efforts for the completion of this project paper. Also to Dr. Martino Luis, as the examiner, I would like to thank for his guidance and kindness. I also want to thank Prof. Dr. Frederick Fernandez, who also guide and assist me in completing this project paper. I really appreciate their sacrifices and good deeds. Without them, I would not be able to complete this project. I also would like to express my gratefulness to my beloved parents, Mohamad Nasir bin Abdul Samad and Norsiha binti Tajuddin, and my siblings, Faizal and Fareez for their constant demonstrations of love and continuous moral supports throughout my years of study. I would like to thank all respondents for the cooperation granted during the process of finishing this project paper. Last, but not least, my thanks to all my friends and all individuals who are involved direct and indirectly in the process of completing this study.

THANK YOU

TABLE OF CONTENTS

CONTENTS Certification of Project Paper........................................................................ Permission to Use.......................................................................................... Abstract......................................................................................................... Abstrak.......................................................................................................... Acknowledgement........................................................................................ Table of Contents.......................................................................................... List of Tables................................................................................................ List of Figures...............................................................................................

PAGE ii iii iv v vi vii x xii

CHAPTER 1: INTRODUCTION 1.1 Background of the Study.................................................................. 1.1.1 Concepts of Brand Loyalty...................................................... 1.1.2 Customer Loyalty..................................................................... 1.1.3 Telecommunication Industry in Malaysia................................. 1.1.4 Market Trends in Universiti Utara Malaysia............................. 1.2 1.3 1.4 1.5 1.6 1.7 1.8 Problem Statement............................................................................. Research Questions............................................................................ Research Objectives........................................................................... Significance of the Study................................................................... Scope and Limitations of the Study................................................... Organization of the Thesis................................................................. Conclusion.......................................................................................... 1 1 6 10 15 16 17 18 19 20 20 21

CHAPTER 2 : LITERATURE REVIEW 2.1 2.2 2.3 2.4 2.5 Antecedents of Brand Loyalty........................................................... Factors of Brand Loyalty..................................................................... Other Factors of Brand Loyalty............................................................ Previous Study on Brand Loyalty ....................................................... Conclusion.......................................................................................... 23 26 31 36 40

CHAPTER 3 : METHODOLOGY 3.1 3.2 3.3 3.4 3.5 3.6 Research Framework......................................................................... Hypotheses Development.................................................................. Research Design................................................................................. Operational Definition....................................................................... Measurement of Variables................................................................. Pilot Test............................................................................................ 3.6.1 Reliability................................................................................. 3.6.2 Validity.................................................................................... 3.6.3 Multicollinearity....................................................................... 3.7 Data Collection.................................................................................. 3.7.1 Sampling.................................................................................. 3.7.2 Data Collection Procedures....................................................... 3.8 3.9 Techniques of Data Analysis............................................................. Conclusion......................................................................................... 41 43 46 47 49 51 52 53 54 55 55 56 57 58

CHAPTER 4 : RESULTS AND DISCUSSION 4.1 Demographic Characteristics of Respondents................................... 4.1.1 Age of Respondents.................................................................. 4.1.2 Gender of Respondents............................................................. 4.1.3 Respondents Level of Education............................................. 4.1.4 Respondents Current Mobile Service Providers...................... 4.1.5 Period of Using Current Mobile Service Providers.................. 4.1.6 Type of Services on Mobile Connection.................................. 4.2 Hypothesis Testing............................................................................. 4.2.1 Test on Hypothesis 1.................................................................. 4.2.2 Test on Hypothesis 2.................................................................. 4.2.3 Test on Hypothesis 3.................................................................. 4.2.4 Test on Hypothesis 4.................................................................. 4.2.5 Test on Hypothesis 5.................................................................. 4.2.6 Test on Hypothesis 6.................................................................. 4.3 Conclusion........................................................................................... 59 60 60 61 62 62 63 64 64 66 67 69 71 73 76

CHAPTER 5 : CONCLUSION AND RECOMMENDATION 5.1 5.2 Conclusions........................................................................................... Recommendations................................................................................. 78 80

REFERENCES.............................................................................................. APPENDICES

83

LIST OF TABLES

TABLES Table 2.1 : Table 3.1 : Previous Study of Brand Loyalty ................................................ Operational Definition of Factors Influencing Brand

PAGE 39

Loyalty......................................................................................... Table 3.2 : Table 3.3 : Table 3.4 : Table 3.5 : Table 3.6 : Table 4.1 : Table 4.2 : Table 4.3 : Table 4.4 : Table 4.5 : Table 4.6 : Table 4.7 : Table 4.8 : Table 4.9 : Table 4.10: Table 4.11: Table 4.12: Likert Scale Score........................................................................ Scale of Pilot Test.................................................. Reliability Test............................................................................. Validity Test................................................................................ Multicollinearity Test.................................................................. Age of Respondents..................................................................... Gender of Respondents................................................................ Respondents Level of Education................................................ Respondents Current Mobile Service Providers......................... Period of Using Current Mobile Service Providers..................... Type of Services on Mobile Connection...................................... Model Summary of Price, Promotion, Service Quality, and Trends........................................................................................... ANOVA of Price, Promotion, Service Quality, and Trends ...................................................................................................... Coefficients of Price, Promotion, Service Quality, and Trends........................................................................................... Model Summary of Price............................................................. ANOVA of Price.......................................................................... Model Summary of Promotion.....................................................

47 49 52 53 54 55 60 61 61 62 63 63

65 65 66 67 67 68

Table 4.13: Table 4.14: Table 4.15: Table 4.16: Table 4.17: Table 4.18: Table 4.19: Table 4.20: Table 4.21: Table 4.22: Table 4.23: Table 4.24:

ANOVA of Promotion................................................................. Coefficients of Promotion............................................................ Model Summary of Service Quality............................................. ANOVA of Service Quality......................................................... Coefficients of Service Quality.................................................... Model Summary of Trends.......................................................... ANOVA of Trends....................................................................... Coefficients of Trends.................................................................. Model Summary of Price, Promotion, Service Quality, and Trends (Backward)....................................................................... ANOVA of Price, Promotion, Service Quality, and Trends (Backward)................................................................................... Coefficients of Price, Promotion, Service Quality, and Trends (Backward)................................................................................... Results on Hypothesis Testing.....................................................

68 69 69 70 70 71 72 72 74 74 75 77

LIST OF FIGURES

FIGURES Figure 1.1 : Elements of Two Dimensional Definition of Loyalty............. Figure 1.2 : General Segmentation of Customers by Loyalty..................... Figure 1.3 : Share of Mobile Subscribers by Major Telcos

PAGE 3 9

(2011)....................................................................................... Figure 3.1 : Schematic Diagram for Theoretical Framework

12

Model.......................................................................................

42

CHAPTER 1 INTRODUCTION

This chapter presents an introduction to this study to give a picture of the study. The discussion will be on factors of price, promotion, service quality, and trends that influence the brand loyalty in mobile service providers. This chapter contains (1) Background of the Study, (2) Problem Statement, (3) Research Questions, (4) Research Objectives, (5) Significance of the Study, (6) Scope and Limitation of the Study, and (7) Organization of the Thesis.

1.1 Background of The Study

Brand loyalty is the companys major goal sets for a branded product. It is now become consumers priority in making a purchase towards particular brand.

Giddens and Hoffman (2010) stated that brand loyalty does exist because of consumers start to realize that the brand offers the right product features, images, conditions, quality, and at the right price. This become the new buying habit among the consumers recently.

1.1.1 Concepts of Brand Loyalty

Usually, consumers will make a trial purchase seems to perform experiment in order to review whether the product can give them satisfaction after using it. Fortunately, if the product is able to achieve their expectations, they will

make repeat purchase continuously, otherwise, they will move to other brands.

Building and maintaining brand loyalty has been an important marketing components including the elements of theory and practice in developing sustainable competitive advantage (Gommans et al., 2001). Therefore, it is such a big responsibility to all companies in order to increase the brand loyalty among their customers. Moreover, this days, there are lots of products that seem similar to mislead the customers in selecting the products. This is large burden to the companies in order to raise their effort in accordance to boost the brand loyalty through their brand name.

There are many ways to promote the brand name in order to keep the customers aware of the products. Pomoni (2009) stated that customers have their own expectations towards the products, such as past buying experience, brand significance, word-of-mouth, individual persuasibility and perceptual distortion, promotional material and communication, competitors promises, and price.

According to Pomoni (2009), Khan (2009), and Gommans et al. (2001), brand loyalty can be classified into two broad categories. The categories are behaviorial brand loyalty and attitudinal brand loyalty as shown in Figure 1.1.

BRAND LOYALTY

Attitudinal Loyalty

Behaviorial Loyalty

Figure 1.1 Elements of Two Dimensional Definition of Loyalty Source : Khan (2009) The attitudinal definition of loyalty implies that loyalty is a state of mind (Peppers, 2009). By this definition, a customer is loyal to the brand or a company if they have a positive and preferential attitude toward it. They like the company, its products or its brands, and they therefore prefer to buy from it, rather than from the company's competitors.

Peppers (2009) stated that the behavioral definition of loyalty, on the other hand, depends on actual conduct of the customer, regardless of the attitudes or preferences that base on the conduct. By this definition, a customer is loyal to the company if they have made a purchase from the company and then repeat the purchase again continuously.

Behavioral brand loyalty is measured by proportion of purchases includes cognitive, conative features, affective, and that imply an indirect relationship between customer satisfaction and brand loyalty (Pomoni, 2009). In other words, considerations of the customers perceptions about a brand can make or break the branding strategy of a firm in the context of repurchases when measuring the level of brand loyalty.

In the behavioral definition, loyalty is not the cause, but the result of brand preference. A company that want to increase the customer loyalty will focus on all tactics will. In fact, they will increase the amount of repurchase behavior tactics that can easily include, without being limited to, improving brand preference, product quality, or customer satisfaction. Loyalty is hesitated with repurchase activity, regardless of any internally held attitudes or preferences.

Both behavioral and attitudinal brand loyalty consider that consumer have developed a feeling of preferable attitudes towards the organization and therefore they engage in repeat purchases. However, marketing studies hold that, often, repeat purchases occur as a result of convenience or lack of alternatives in the market (Pomoni, 2009).

Every successful business depends on brand loyalty as it is the ultimate goal a company aims at. Brand loyalty means a consumers commitment to a brand. It implies that the customer not only looks for their own benefit, but is also willing to think about the brands interest. It is mainly stated by repeat purchase.

Kulkarni and Belgaonkar (2012) stated that the extent of the faithfulness of consumers to a particular brand, expressed through their repeat purchases, irrespective of the marketing pressure generated by the competing brands. Repurchasing of a product is not the ultimate determinant of brand loyalty. It

might take place because of situational constraints, no alternatives, and inconvenience.

Brand loyalty is also denote as a customers conscious or unconscious decision that is expressed through the customers behavior in purchasing goods or services. A customer develops loyalty towards a brand because they think that the brand is offering good quality product or service at the right and reasonable price. As soon as the customers know that the brand offering value of their purchase, they will be encouraged to buy the products or services.

As said by Mcmains (2009), a number of things that can influence the brand loyalty starting from designing a new product to writing its catch line, and understanding customers need to employing effective marketing strategy. Brand loyalty occurs as the customer perceives the brand in a positive manner. Developing loyalty among new customers and retaining it among existing customers are equally important.

The importance of brand loyalty is huge since it is brand loyalty that determines the sale of a product or a service. It is very difficult to survive in todays competitive world among the companies. In order to do so, it is very important to them to attract more customers, make their customers loyal to their brand, and not to loose their customers. Reducing the customer loss and achieving new customers trust and loyalty can dramatically improve their business growth in this industry.

The benefits of brand loyalty for a firm are numerous. First of all, loyal customers are less price sensitive, which means that they are ready to pay a higher price, if required, in order to acquire the product or service. As a result, apart from higher profitability for the firm, the cost incurred for pursuing new customers is reduced.

To develop brand loyalty, an organization should know their niche market and target market. They also must need to know and realize on how to support their product and ensure easy access of their product. In addition, they also have to find the uniqueness of their products in order to provide customer satisfaction. Not least, they also have to bring constant innovation in their product and offer schemes on their product so as to ensure that customer repeatedly purchase the product.

1.1.2 Customer Loyalty

According to Kuusik (2007), there are three types of behavioral loyal customers according to their behavior. The three types are (1) forced to be loyal, (2) loyal due to inertia, and (3) functionally loyal.

For the first type of behaviorial loyal customers, the customers are forced to be loyal when they have to be clients even they do not have any intention towards it.. Customers are forced to make a purchase on certain products or services offered by the certain vendors. This situation ususally happen because of the monthly target of sales the company have to achieved,

especially the marketing company such as multi level marketing (MLM), and insurance agents. Because of that, they need to find as many customers they can in order to achieve the sales target.

However, loyal behaviour may also happen due to inertia. This is the situation where the customer stick to a brand and do not have any intention to move to another brand due to the less important of usage of the product. So that in the customers perception, they feel that there is no point to spend time and effort on searching for the alternatives of the current product and just keep continue using it.

The functionally loyal customers are loyal may due to several reason. Probably the customers are satisfied with the price offered, quality of the product, distribution, or rewards earn through the usage of the product, such as point redeem, coupons, vouchers, or lucky draws that will lead to the loyalty of the customers towards the brand.

Compared to Jones and Sasser (1995), they proposed three measures of customer loyalty, where (1) customers primary behavior, in which is related to recency, frequency, and amount of purchase, (2) customers secondary behavior, referring to the material of customers reference, endorsements, and the means to spread the word, and (3) customers intent to repurchase, whether the customers are ready to repurchase the product in the future.

Beside that, Jones and Sasser (1995) also noted the general segmentation of customers by loyalty as in Figure 1.2. Customers loyalty are divided into three types, namely loyal customers, dubious customers, and disloyal customers.

There are two types of customers under the loyal customers. For committed or emotionally loyal customers, they act as active customers that usually loyal to certain products, and declare will stick to the same product continuously and in the future. They also will recommend the products to others, especially to family, relatives, and friends. While for behaviorally loyal customers, they are active customers who will use only certain products and declare to continue using it in the future. However, they will not agree to recommend the product to others.

Ambivalent or dubious customers are the active customers that will use only the certain products, unfortunately, they are not sure to continue using the products in the future. These type of customers are in the middle between loyal and disloyal customers, which led to confusion whether to be loyal or not. Usually they are more moderate in using a product.

Under disloyal type of customers, there are another two sub-categories, which are disloyal reducers customers and disloyal leavers customers. For disloyal reducers customers, they refers to the customers who have reduced or will reduce the percentage of the product in their usage. Meanwhile for disloyal leavers customers, they declare that they will certainly leave the products.

CUSTOMERS

Loyal

Dubious Behaviorally

Disloyal

Leavers Reducers

Emotionally

Figure 1.2 General Segmentation of Customers by Loyalty Source : Jones and Sasser (1995) A strong professional relationship creates an advantage that can keep the customer from switching to competitor (Zaribbayevich, 2010). On the other hand, Dani (2012) stated that retaining an existing customer is always more beneficial and cost effective than acquiring a new customer. Customers may also be loyal because they are satisfied and thus want to continue the relationship.

Thus, it is a major problem for the mobile service providers, especially for them deliver the quality service consistently. Accordingly, it is important for a company to understand the customer perception to their service quality. Generally, service and product quality is in the mind of the consumer.

Loyal customers are also strong advocates of the firm playing a powerful role in the decision making process of other people (Pomoni, 2009). It also will bring certainty to the firm by enlarging its customer base. In addition, loyal customers expose higher tolerance for mistakes, are willing to provide

feedback for any unfulfilled needs, to try additional products and to offer a higher spend of their money in order to meet the higher level of satisfaction of the customer.

1.1.3 Telecommunication Industry in Malaysia

The telecommunication industry in Malaysia plays a critical role in driving demand for the internet through investments in expanding reach of 3G coverage and healthy competition that centres on customers, resulting in smart bundling of smartphones and plans.

Data services are still considered as a new business in the telecommunication industry. One of the challenges is to be able to provide internet for all. Thus, in order to do that, the mobile service providers can not just build a wide network, but at the same time they need to be able to provide the capacity for the traffic to flow smoothly. The smartphones will play a key role in the growth of data revenue.

The smartphone and PDA (personal digital assistant) sales are driven by fashion trends. The consumers in Malaysia prefer to buy technologically advanced gadgets. Especially the younger audience would see an added demand for mobile devices and applications which combine entertainment and ICT capabilities. For others the mobility and the connectivity at all times are the important criteria. This is extremely relevant today as more

Malaysians are adopting usage of smartphones stimulated by the popularity of social media applications, affordable smartphones, and smart bundling.

Telecommunication systems have become electronic infrastructure to transmit information, voice, messaging, data, graphics, video, music, and the latest 3G network (Haque et al., 2007). It is a fast-growing technology worldwide communications. It provides an opportunity for users to choose among mobile service providers. Now, because of the competition, the mobile service provider offering innovative services and competitive prices as well.

Kaapanda (2012) said that the emergence of computer-based communication technologies and communication networks have become an important factor in this global interaction. Phone, for example, provides basic connection to social interaction between individuals and relationships both within and among countries.

Telecom Engine have reported that the participation of the private sector in the transformation and development of the country's communication infrastructure infrastructures. has ensured the creation has one of of necessary the more information advanced

Today,

Malaysia

telecommunication networks compared to the rest of the developing world. Modern technologies such as optic fibres, wireless transmission, satellites, and digitalisation are being utilized with the offering of next generation networks, unified communication, 3G content, and sensor technology (www.telecomengine.com).

Convergence in technology provides a diverse range of products and services offered. Transaction and services such as unified communications, data centre services, authentication services, e-commerce, payment, services and billing are conducted daily (Lim, 2011).

In the background of the Malaysian telecommunications, competition can be seen as a major factor among providers of mobile services. Today, there are three main companies in the telecommunication sector namely Celcom, Maxis, and Digi. The three companies known as the mobile service providers market segments include traditional Malaysian telecommunication

telecommunications, technology and mobile wireless, broadband and technology markets.

Figure 1.3 shows a competetion among the mobile service providers in Malaysia. Maxis has lead the telecommunication sector with total of 42 percent of subscribers. Followed by Celcom with 34 percent, and Digi with 24 percent.

Figure 1.3 Share of Mobile Subscribers By Major Telcos (2011) Source : Companies, DBS Vickers Research

Celcom Axiata Berhad, is the oldest mobile telecommunications company in Malaysia. Celcom is one of a member of the Axiata group of companies. Celcom claims to have the widest and most extensive coverage nationwide, compared to other mobile services in Malaysia. Celcom also claims its dualband GSM (900/1800 MHz) coverage has reached over 99 percent of Malaysia's populated area in 2006, and 100 percent through satellite coverage (www.celcom.com.my).

Maxis Communications Berhad is a Malaysian mobile network operator headquartered at Kuala Lumpur, Malaysia. It was started in the year 1993. Maxis provides a variety of mobile communication products and services. Maxis most popular service is its prepaid brand Hotlink, which currently serves over eight million customers in Malaysia. Maxis was the first mobile communications company in Malaysia to be authorized to sell the Apple iPhone, and then was later the offered was also given to its competitor Digi. Although the pricing of the phone is slightly cheaper than Digi, but the plans for data and services are slightly higher than Digi (www.maxis.com.my).

Digi Telecommunications Sdn. Bhd., is one of the main mobile service providers in Malaysia. It is owned in majority by Telenor ASA of Norway with 49 percent. Digi is listed on the Bursa Malaysia under the Infrastructure category act. Digi is also the second operator in Malaysia to offer iPhone on the 1st of April, 2010. Digi is the first mobile service provider in Malaysia to introduce Mobile Number Selection service which was implemented in 2008 (www.digi.com.my).

The mobile phone has become the favourite way for Malaysians to communicate. The telecommunications industry is mainly driven by the cellular segment. In general, a wider subscriber base, increases in international calls and increased popularity in the usage of mobile data and multimedia services supported the growth in this segment.

In general, the growth of the mobile services segment is supported by increasing subscribers, an increase in international calls and increased popularity of mobile data such as short message service (sms) and GPRS (general packet radio service) services.

In particular, the mobile market today, this market has become very competitive and mobile service providers move aggressively to attract customers by offering several attractive promotions and services (Rahman et al., 2010). Therefore, in this situation, it is important to know the perception of consumers on the mobile service provider.

With increasing of competition among companies, it is necessary for the providers to know the consumer perception of price, promotion, product, service, quality, and other factors that play an important role in choosing their service providers (Ismail, 2009).

1.1.4 Market Trends in Universiti Utara Malaysia

In the situation of Universiti Utara Malaysia, all the students now have their own mobile phones. Even more students that have more than one mobile phone. This shows that now they have the ability to have a mobile phone.

As well as the students of College of Business, in Universiti Utara Malaysia, they have started using smartphones and tablet personal computers (PCs) such as iPhone, iPad and Samsung Galaxy Tab in the classroom as an aid to learning in order to get the important information or to copy the notes given in the class. This shows that they are now turning to more sophisticated technology in line with current technological change in Malaysia now.

Therefore, they would require data services from mobile service providers so that they can surf the internet anytime and anywhere either by using their smartphones or tablet PCs. Especially for the international students who need the services from mobile service providers to enable them to communicate with their family members in their country.

1.2 Problem Statement

The use of mobile phones has become a primary need in human life. Moreover, at present, the widespread use of smart phones in this country is due to consumers that are cleverer and more intelligent and the need of gadget that can simplify their daily businesses.

As well as students, the use of mobile phones is now a necessity and is no longer for luxury. This situation has caused them to choose the best mobile service provider that can benefit and be affordable to them as students.

Based on preliminary survey conducted by random brief interview on certain students earlier, there are some students who are not stick and loyal to one provider of mobile services due to various factors.

Among the factors are price, promotions, service quality, and trends. As students, they will often be influenced by these factors because they are known as those who like to make hasty decisions, easily influenced by their peers, and others.

Therefore, this study will examin the factors that contribute to brand loyalty in mobile service providers among students of College of Business, Universiti Utara Malaysia.

1.3 Research Questions

In this study, several research questions are as follows:

1) Are the price, promotion, service quality, and trends influence significantly towards brand loyalty simultaneously among the students of College of Business, Universiti Utara Malaysia?

2) Is there any influence between price towards brand loyalty in mobile service providers among the students of College of Business, Universiti Utara Malaysia?

3) Is there any influence between promotion towards brand loyalty in mobile service providers among the students of College of Business, Universiti Utara Malaysia?

4) Is there any influence between service quality towards brand loyalty in mobile service providers among the students of College of Business, Universiti Utara Malaysia?

5) Is there any influence between trends towards brand loyalty in mobile service providers among the students of College of Business, Universiti Utara Malaysia?

6) Which one of the price, promotion, service quality, or trends has the most significant influence towards brand loyalty among the students of College of Business, Universiti Utara Malaysia?

1.4 Research Objectives

There are several research objectives that need to be achieved in this study as follows:

1) To determine whether price, promotion, service quality, and trends influence significantly towards brand loyalty simultaneously among the students of College of Business, Universiti Utara Malaysia.

2) To determine the influence of price towards brand loyalty in mobile service providers among the students of College of Business, Universiti Utara Malaysia.

3) To determine the influence of promotion towards brand loyalty in mobile service providers among the students of College of Business, Universiti Utara Malaysia.

4) To determine the influence of service quality towards brand loyalty in mobile service providers among the students of College of Business, Universiti Utara Malaysia.

5) To determine the influence of trends towards brand loyalty in mobile service providers among the students of College of Business, Universiti Utara Malaysia.

6) To determine which one of the price, promotion, service quality, or trends has the most significant influence towards brand loyalty among the students of College of Business, Universiti Utara Malaysia.

1.5 Significance of the Study

This study contributes to both students as users and the mobile service providers. Academically, it will widen the dimensions of service quality in mobile service providers. For the purpose of this study, students are the majority in choosing mobile service providers. Poor performance can reduce the companys name. Besides that, it will give poor image and low reputation of the organization itself in the future.

This study focus on the factors that contributes to the brand loyalty in mobile service provider among the students of Universiti Utara Malaysia. In general, the findings of this study will help the company of mobile service provider get a better understanding towards student perception and impression of the services provided by them.

1.6 Scope and Limitations of the Study

The scope help to execute the study better and easier. Meanwhile, the limitations also determine the weaknesses and constraints of the study that are beyond the control. This study aims to identify the factors (price, promotion, service quality, and trend) that influence the brand loyalty in mobile service providers. This was limited to the College of Business, Universiti Utara Malaysia.

The data needed for the study were obtained through the questionnaires within two weeks. The respondents of the study were among the students of College of Business that stay at the Students Residential Hall, Universiti Utara Malaysia. The findings of the study are expected to serve as the basis for the development of the telecommunications and academic use.

1.7 Organization of the Thesis

Organization of the thesis rovides an overview of the whole chapters in the study. The study is titled as "A Study on Factors Affecting Brand Loyalty in Mobile Service Provider in The College of Business Students of Universiti Utara Malaysia" and organized into five chapters, in order to achieve the objectives of this study.

Chapter 1 : Introduction provides an overview of this study. It is more closely to the issues arising in this research topic. It will emphasize more on the Background of the Study, Problem Statement, Research Questions, Research Objectives, Significance of the Study, and Organization of the Thesis.

Chapter 2 : Literature Review critically reviews the literature and theories related to the topic of this study. It is meant to act as a base for the experimental and analytical section of this study. This also is used as a base to guide the development of the research framework.

Chapter 3 : Methodology describes the methods and techniques used in this study. It will cover more on Research Framework, Hypotheses Development, Research Design, Operational Definition, Measurement of Variables, Data Collection on Sampling and Data Collection Procedures, and Techniques of Data Analysis.

Chapter 4 : Results and Discussion will analyze the data and findings of this research based on the appropriate method used in this study. It presents complete results and analyses of the study in order to asses whether the study achieved its objectives.

Chapter 5 : Conclusion and Recommendation are made based on the findings of this research. The significance findings are necessary for the continuity of the recommendation to be proposed in this study for the future research.

1.8 Conclusion

This study aims to find the factors that became the priority of the consumer to be loyal to a brand, especially in the mobile service providers. In this chapter, the importance of successful of the study were identified and clear to be developed later. The overview of brand loyalty, mobile service providers, problem statement,

research questions, research objectives, significance of the study, scope and limitation of the study, and organization of the thesis already laid to be tested and observed later.

CHAPTER 2 LITERATURE REVIEW

This chapter reviews previous studies that related to this study. The previous studies are based on price, promotion, service quality, and trends that influence the brand loyalty in mobile service providers.

2.1 Antecedents of Brand Loyalty

Over the past decades, brand loyalty has been recognized as a focal point of marketing literatures and for practitioners (Nawaz & Usman, 2010). In the

telecommunication industry, it is important to ensure the good relationship between customers and mobile service providers.

Usually, customers have their own habit in product purchasing, such as just buy the cheap product in order to safe. In order to create brand loyalty in customers, companies must help the customers to acquire for new way of purchasing, and reinforce those way as a new habit by reminding customers on the value of their purchase, and at the meantime, encourage them to continue purchasing those products in the future.

Look at the current situation, in the highly competitive market, the companies are competing each other in order to maintain their loyal customers and improving the customers loyalty. Brand Loyalty is the customers conscious and unconscious decision and action (McMains, 2009). They will point out the loyalty through

intention or behavior, by make a repurchase of a brand continually. It happen because the consumer are satisfied with the brand that offers the right product features, image, and level of quality at the right price.

Ditcheva (2011) mentioned that loyal customers contributes to the economies of the marketing because the cost to seek for new customers could be higher than remaining the existing of loyal customers. Once the customers recommend the product to friends, most probably their friends would be influenced. Brand loyalty is important regarding gaining support from retailers. As from the customers point of view, loyalty are really important because it will save the time in order to think of the products that should be purchase.

Conceptual definitions are necessary to assess the construct validity' of the adopted measurement methods. Without them, the correctness of specific brand loyalty measures cannot be evaluated, and meaningful and meaningless results cannot be distinguished.

In order for companies to handle the disloyal customers, they need to have the right method to predict the brand loyalty. However, it has seemed impossible to achieve the objective and general measurement of brand loyalty. The diverse definition and operationalization of brand loyalty has been in part due to the various aspects of brand loyalty. The customers will be brand loyal when they have both attitude and behavior as favorable. However, it does not clarify the intensity of brand loyalty, because it includes the possibility that a consumers attitude is unfavorable, while the customers repeat the purchases (Ho, 2010)

Brand loyalty is a customers behaviorial attitudes towards the brands. Simply, brand loyalty is defined as the consumers persistent preference for and purchase for a specific brand. The three main reasons to brand loyalty are facilitating selection, reducing risks, and saving time and effort in order to increase the customers level of satisfaction. The relative attitude is a combination of purchase involvement and differences in brand perceived (Jensen and Hansen, 2006).

According to Ewing (2000), brand loyalty could be examined through predict its impact on future behavioral and analyzing its intentions for actual past behavior. He also claimed that intentions and expectations of purchase remained to be a valid research metric. It was found out that as the brand and consumer interface offers the greater ability of predictive than the retail and consumer interface. The customers are willing to recommend the product after repurchase it in many times compared to past behavior.

However, Rundle-Thiele and Bennett (2001) proposed that a classification of brand loyalty based on classifying the types of market. This is because a measure of single brand loyalty are not reasonable as the market indicates the measure used to predict the loyalty should be different. By being this brand loyalty, both customers and providers will be able to enjoy the benefits, where, the providers will continue earn the profits, while the customers will continue enjoy the services provided. The companies are now focusing on customer loyalty because to keep the existing customers is much cheaper than obtaining the new customers. For purpose to study and manage brand loyalty, it should start with the clear definition of the constructed involved, and the development of valid measures.

2.2 Factors of Brand Loyalty

There are many factors which affect the brand loyalty, such as consumer attitude, pressure from family, influence by the peers, and personal relations of a buyer with the sales person (Nemati et al., 2010).

There are a number of previous researchers who also feels that among the factors that influence brand loyalty on the mobile service providers are price, promotion, service quality, and trends.

Price. Price competition in the mobile telecommunications industry is becoming more intense. Price plays a crucial role in the telecommunications market, especially for mobile telecommunications service providers (Kollmann, 2000). It also includes usage charges and rental charges. Therefore, there will be more customers that provide commits with the mobile service provider companies that offer lower charges. Rahman et al. (2011) stated that fairness is the important thing to make customer satisfy. According to Kollmann (2000), the income of the total minutes of calls made will be able to determine the success of the commercial basis for network providers. He also added that the success of the telecommunication sector in the market is dependent on the use of policies and prices continuing to consider several levels. However, customers will easily to become disloyal if the price is unfair that can lead them to switch to other providers. Haque et al. (2007) said that, generally, a price dominated mass market leads to customers having more choice and the opportunity to compare the pricing structures of different providers. Hence, the marketer cannot charge prices higher than the customer is willing and able to pay

(Kaapanda, 2012). Individuals, who are price conscious, are generally not willing to pay prices for a product if they realized that the price is not reasonable (Ismail, 2009). However, Kollmann (2000) stated that the variable charges are the most important thing for the decision of the customers. In telecommunication sector, customers will concern on from whom the product will be purchase other than the purchase price and usage charges as the important criteria for acceptance. The companies should keep continue offers the value as the importance of price factors to the customers that had switch to other competitors as a loyalty determinant in order to avoid from risk losing the customers (Lee and Murphy, 2005). Customers will pay for a certain amount of money in order get the products or services. Price perception may different to other people, as price has a significant influence towards the consumers buying behavior (Raza and Rehman, 2012). However, according to Zhang and Feng (2009), price is the monetary cost for a customer to purchase products. It is the critical determinant that will reflect the customers buying decision. Customers usually make a decision on product purchasing by rely on price perceived. Moreover, the price perceptions towards the same products among the customers may be different. This will make the customers likely to be attracted by perceived competitive prices, rather than perceived high quality services during the decision making process.

Promotion. According to Alvarez and Casielles (2005), promotion is a set of stimuli that are offered sporadically, and it reinforces publicity actions to promote the purchasing of a certain product. Haque et al. (2007) claimed that the promotional offer consists of several different objects to create a better sale impact, such as coupons, samples, premiums, contests, point-of-purchase displays and frequent-

buyer programs. They also said that each of the promotion techniques are intended to have a direct impact on buying behavior and perception about the company or service providers. Hence, the goals of promotion are to create awareness, get people to try products, provide information, keep loyal customers, increase use of a product, and identify potential customers (Kaapanda, 2012). Moreover, according to Ayob (2010), through advertising, sales promotion, personal selling, and publicity, product were introduced to customer and persuade new and old customer to purchase.

Service Quality. Nowadays, consumers and firms are demanding more services as well as services of increasing quality and sophistication (Kaapanda, 2012). According to Zeithaml and Bitner (2003), service quality is a focused evaluation that reflects the customer's perception of specific dimensions of service: reliability, responsiveness, assurance, empathy, tangibles. Satisfaction, on other hand, is more inclusive, where it is influenced by perceptions of service quality, product quality, and price as well as situational factors and personal factors. It is important to attract more customers. Addition to that, the quality of services provided must also be good, and provide benefits to customer satisfaction. While according to Gronroos (2000), the quality of a service is subjectively perceived by customers during the interactions with a firm. Customer perceptions of the quality of a service are traditionally measured immediately after the person has consumed the service (Rahman et al., 2011). Parasuraman et al. (1988) had defined the service quality as the consumers judgment about a firms overall excellence or superiority. There are several ways for measurements of service quality proposed by previous researchers and literature. The famous measurement model of service quality is SERVQUAL developed by

Parasuraman et al. (1988) who measured the differences between customer expectations and perceptions cross five determinants as follows:

Tangibles

Appearance

of physical facilities, equipment,

employees, and communication materials from a service company. Reliability : A service companys ability to perform the promised service dependably and accurately. Assurance : Employees knowledge and behavior about courtesy and ability to convey trust and confidence. Responsiveness : A service company is willing to help customers and provide punctual services. Empathy : A service company provides care and

individualized attention to its customers, as well as having convenient operating hours.

Another study by Gronroos (2000) summarized seven criteria of good perceived service quality as follows :

1. professionalism and skills; 2. employees attitudes and behavior; 3. accessibility and flexibility; 4. reliability and trustworthiness; 5. service recovery; 6. serviscape; and 7. reputation and credibility.

Therefore, service quality is an important element to assess a performance of products. Offering a high quality service is the best way to create customers trust and satisfaction, as well as obtaining competitive advantages and building a long-term relationship with customers. According to Lee and Murphy (2005), service quality has lower priority in loyalty, but are very critical in switching. That is the reason why perceived element in service quality may trigger loyalty switching transition, but satisfaction with service quality may not yield loyalty.

Trends. In the present scenario, customers prefer to choose a product or service based on the promotion or encouragement given by the surrounding community such as family and friends. This is because they will feel more confident when they see the satisfaction received by the family and their friends when using the product or service. According to Hawkins et al. (1998), the reference group consists not only of the groups that an individual has a frequent contact with such as family members, work associates, friends, and classmates, but also include the groups that an individual does not have a membership in or a direct contact, such as certain expected groups or people in a certain social level. However, based on the trend nowadays, the internet and telecommunication technologies are frequently regarded as two major drivers for creating new value and introducing new services to customers (Chen & Ching, 2007). While according to Close (2001), people are thought to be a brand loyal due to a number of reasons. They are involved in purchase decisions, they are targeted frequently by marketing communications efforts, and they use brands to become influencers and trendsetters. The factors that influence to purchasing decisions may be due to their increasing knowledge of the marketplace and product alternatives.

2.3 Other Factors of Brand Loyalty

Brand loyalty is a vast field.. Apart from the factors above, there are many other factors that affect brand loyalty. This is due to the many previous studies have been conducted.

Brand image. Ismail (2009) had defined the brand as a name, term, sign, symbol, or design, or combination of these that identifies the maker or seller of a product or services. Kuusik (2007) stated that brand image is among the most complex factors that influence the brand loyalty. Brand loyalty may be affected by the brand image in two ways. Wheteher the customers express their identity according to the preferences of brand in consciously or subconsciously. Otherwise, the customers will classify themselves into different social group, which may contributes to the evaluation of values in the various groups. However, according to Kim et al. (2001), they found that the attractiveness of brand personality effect the brand loyalty indirectly after review the link between the brand personality and loyalty. Other than that, consumers are prefer to become a partner with someone who have same preference in image and values and even consumer-brand relationships can be seen as subjects of perceived compatibility (Fournier, 1998). Similar to Oliver (1999) that said brand need to be a part of customers self identity and social identity in order to make the customers be fully loyal. A company should view its brand to be not just a product or service, but as an brand image that represent a company's philosophies. According to Kuusik (2007), the importance of brand to a customer can be increase by high risks involved in the transaction, or costs caused by cancellation of contracts as the relationship of brand loyalty and customers are really important, otherwise the

company need to find alternatives or to solve the dissatisfaction of brand among customers. Oliver (1999) proposed that customer loyalty is a role of perceived product superiority, social bonding, personal fortitude, , and their synergistic effects. A brands image usually will effect the customers expectations and satisfaction towards products. Brand image relates to the perception or mental picture a customer holds of a brand and is expressed through the response of the customers.Therefore, the brand image is very important as it will positively reflect the marketing activities either reasoned or emotional. Raza and Rehman (2012) stated that building a strong brand name is not only important in the physical product, but is also a vital issue in service sector. What customer perceives the brand image during such experience is critical issue for a service firm to realize. Furthermore, customers is likely to form brand image in mind from inexperience ways, such as word of mouth from other consumers, a companys reputation in public, marketing communication, and so on. A positive brand image will help the company to convey its brand value to the customers easier. Beside that, it also will generates favorable word of mouth among the customers. However, the negative brand image will reflect on the opposite part, where a neutral or unfamiliar brand image may not bring to any badness, but it will not increase the effectiveness of communication, such as word of mouth (Zhang and Feng, 2009).

Switching Cost. According to Aydin and Ozer (2005), switching cost will gives the advantages to the companies, such as:

(i) (ii)

The cost reduce customers sensitivity to price and satisfaction level. Customer perceive functionally homogeneous brands.

In other words, even though the customers had their opportunities to make a decision in select products and services, they still have to be loyal with continue purchasing the same products. According to Lee and Murphy (2005), customers will either do not have intention to switch because they feel burden with the current switching costs, or will be more attracted to the no or lower switching cost competitors. The competitors can take the advantages through this position, convince the customers with the incentives purpose of attempting to pull them away from their preferred offering. These verbal and physical methods are the obstacles in order to overcome the brand or service loyalists. As can be seen at this time, the simplest form to solve a variety of cognitive loyalty, the most difficult is the state action. Thus, the sequence of cognitive-to-action to bring the analysis close allegiance with the emergence of full loyalty but still failed to meet the definition of ultimate loyalty for each phase are subject to attack (Oliver, 1999).

Service Availability. Kaapanda (2012) said that the customers buy goods and services at the place which is conveniently located, yet prominent to provide comparatively higher satisfaction levels as compared to the time and effort spent by the consumer. However, for services, such as telecommunication sectors, it is more preferrable to talk about accessibility as a marketing mix element, rather than a place. This is because service is produced and consumed simultaneously.

Satisfaction. Kuusik (2007) stated that the influence of satisfaction towards brand loyalty may happen due to when the level of satisfaction of the customers are low, they will move to other competitors. Satisfaction is an outcome after make a purchase and resulting from the comparison of the customers between the rewards

and cost of the purchase. It will effect the customers perception towards the product, such as likes or dislikes the service after experiencing it. Generally, it is forced that satisfaction includes both cognitive and emotional components. Reputation usually intervene the relationship between satisfaction and loyalty and the relationship

between satisfaction and recommendation. Consumers who have the high frequency of purchase will be considered satisfied with the products (Nawaz and Usman, 2010). Costomer satisfaction, is a business term in evaluating the level of satisfaction of the customers towards the products or services supplied by the company to them. As the market have become more competitive these days, thus, in order to achieve customers satisfaction, the major aspect that need to be gained is the imporatant of key elements in functioning the business. The level of customer satisfaction will be different to different persons, similarly it will be different in case of products or service difference (Nemati et al., 2010). Markerters are totally involve in the satisfaction of the customer. To bring the satisfaction towards the customers in the best is such as an competitive advantahe to the company (Raza and Rehman, 2012). The perception of the customers towards the products has been widely used in measuring the satisfaction of the customers. Therefore, Liu (2008) proposed the five emotions satisfictory perceived by the customers as follows:

(1) Satisfaction: the products can be accepted or tolerated; (2) Content: the products bring people with a positive and happy experience; (3) Relieved: the products remove peoples negative state; (4) Novelty: the products bring people with freshness and exciting; (5) Surprise: the products make customer unexpectedly pleased.

Trust. Kuusik (2007) said that the feelings of trustworthiness factors definitely influenced the brand loyalty. In business, trust is known as one of the most important elements in stable and collaborative relationship (Akbar and Parvez, 2009). Hence, customers should perceive quality as their preferences in order tp trust the brand (Nawaz and Usman, 2010). Moreover, Roostika and Astuti (2011) also stated that the trusting intentions will make the truster feels secure and is willing to depend on the trustee. Consequently, in order to trust a service, customers should positively in perceive the quality. This show that perceived service quality will bring the positive effect on trust. In practical business activities, in order to establish a long term successful relationship between all the parties involved, the critical issue will be the development of trust.

Commitment. Nawaz and Usman (2010) stated that most companies hold a view that a good management in handling the customers complaints and grumbling will bring a source of barand commitment and brand loyalty. The customer retention rate may be increase do to the effective way in handling the customers complaints. It also will improves the service quality as well.

Word-of-mouth. Rundle-Thiele and Bennett (2001) claimed that the vital sign of loyalty is the customers willingness to spread the recommend of the company to others. It is because, when people doing the recommendation, they will put their reputation on the line, which probably will make the other customers see it as a good predictor of loyalty. Those people will act as a free advertisement spreader, declaring information on the satisfying experience with the brand, and offering proven benets, which may bring to the automatic recruiting of new consumers that

will do the same thing spread the advertisement and attract more customers. The group of those customers will probably getting larger, and will influence other customers to become loyal and committed to the product.

Customer Satisfaction. According to Akbar and Parvez (2009), customer satisfaction is most popular and established element in several sectors, such as marketing, economic psychology, consumer research, economics, and welfare economics (Akbar and Parvez, 2009) . The high believe in the nature of business services typically will resulted on customers to rely on prior expectations. Thus, this will make the business service satisfaction is likely to be evaluative in nature. Moreover, satisfaction is likely to be an priority in dives the loyalty in te setting of business, as it will implies on the evaluation of the performance of the products with the previous product purchasing (Russell-Bennett et al., 2007).

2.4 Previous Study on Brand Loyalty

Table 2.1 shows the previous studies that were conducted by several researchers on brand loyalty in mobile service providers. After the review of each of the previous study below, it is clear that most of the researchers have found that among the main factors that influence brand loyalty in mobile service providers are service quality, price, and promotion.

From the Table 2.1, Kaapanda (2012) has conducted a study entitled An Evaluation of Factors Determining The Selection of Mobile Telecommunication Service Providers in The Northern Region of Namibia. Eventhough the dependent variable

is not stated and quite general, but the purpose of the study is almost the same, which is to determine the factors that influence the selection of providers that was conducted in Namibia. In the study, the author has chosen the social factors, service quality, price, promotion, and availability of services as the variables. However, after analysis that was conducted through the Descriptive Statistic, only the service quality has a significant result on determining the selection of mobile telecommunication service providers in the Northern Region of Namibia. Therefore, service quality was adopted as one of the variable in this study.

In the following research, Dani (2012) had chosen Understanding Brand Loyalty and Reasons for Change of Service Providers by Consumers of Mobile Services in Madhya Pradesh and Chattisgarh as title of her research. She has been using ChiSquared Test of Independence as tools of analysis by including availability, price, advertisement, and packaging as the variables. The result found that price was significant factor to the change of service providers by consumers of mobile services in Madhya Pradesh and Chattisgarh. Therefore, price was chosen as one of the variable in this study.

However, Rahman et al. (2011) had conducted a research on Choice Criteria for Mobile Telecom Operator : Empirical Investigation Among Malaysian Customers. The variables used in the study were price, service quality, and brand image. They also decided to run the analysis through Structural Equation Models. The findings show that only price has significant in the choice criteria for mobile telecom operator.

Ayob (2010) had chosen Investigating Brand Loyalty Factors Among Young Mobile Phone Users as his reserch topic. The research conducted has involved switching cost, corporate image, service quality, trust, and promotion as the variables. After analyzed by the Pearson Correlations Test, the findings approved that the signicant variable was promotion. The variable of promotion was adopted due to the finding of the study.

While for Nawaz and Usman (2010), they did a research on What Makes Customers Brand Loyal : A Study on Telecommunication Sector of Pakistan. The variables involved are service quality, satisfaction, trust, and commitment. They found that the significant variable is service quality after conducted the Cronbachs Alfa Test or known as Reliability Test.

Beside that, the research titled Exploring Influencing Factors for the Selection of Mobile Phone Service Providers : A Structural Equational Modelling (SEM) Approach on Malaysian Consumers was conducted by Rahman et al. (2010). The variables for the study were price, service quality, service availability, and promotion. After run the analysis via Exploratory Factor Analysis, Confirmatory Factor Analysis, and Structural Equation Modeling, the research found that the significant variable is price.

However, according to the research done by Zaribbayevich, (2010) titled County of Origin and Brand Loyalty on Cosmetic Products Among Universiti Utara Malaysia Students, the result found that the significant variable were brand name, style, and price. This was confirmed after conducting analysis on all variables (brand name,

product quality, price, style, and service quality) through Factor Analysis, Reliability Analysis, Correlation Analysis, and Regression Analysis. Thus, , the variables of price and style (trend) were adopted to this study.

Table 2.1 Previous Study of Brand Loyalty

AUTHOR(S) / YEARS / TITLE Kaapanda (2012) An Evaluation of Factors Determining The Selection of Mobile Telecommunication Service Providers in The Northern Region of Namibia. VARIABLES Social Factors Service Quality Price Promotion Availability of Services RESULT(S) There is significant influence between Service Quality and the selection of providers. TOOLS OF ANALYSIS VARIABLES TAKEN

Descriptive Statistic

Service Quality

Dani (2012) Understanding Brand Loyalty and Reasons for Change of Service Providers by consumers of Mobile Services in Madhya Pradesh and Chattisgarh. Rahman et al. (2011) Choice Criteria for Mobile Telecom Operator : Empirical Investigation Among Malaysian Customers. Ayob (2010) Investigating Brand Loyalty Factors Among Young Mobile Phone Users.

Availability Price Advertisement Packaging

There is significant influence between Price and Brand Loyalty

Chi-Squared Test of Independence

Price

Price Service Quality Brand Image

There is significant influence between Price and the selection of providers.

Structural Equation Models

Price

Switching Cost Corporate Image Service Quality Trust Promotion

There is significant influence between Promotion and Brand Loyalty

Pearson Correlations Test

Promotion

Table 2.1 Previous Study of Brand Loyalty (Continued)

AUTHOR(S) / YEARS / TITLE Nawaz & Usman (2010) What Makes Customers Brand Loyal : A Study on Telecommunication Sector of Pakistan. VARIABLES Service Quality Satisfaction Trust Commitment Rahman et al. (2010) Exploring Influencing Factors for the Selection of Mobile Phone Service Providers : A Structural Equational Modelling (SEM) Approach on Malaysian Consumers. Price Service Quality Service Availability Promotion RESULT There is significant influence between Service Quality and Brand Loyalty TOOLS OF ANALYSIS Cronbachs Alfa (Reliability Test) Exploratory Factor Analysis Confirmatory Factor Analysis Structural Equation Modeling Factor Analysis Reliability Analysis Correlation Analysis Regression Analysis Price Style (Trend) VARIABLES TAKEN

Service Quality

There is significant influence between Price and the selection of providers

Price

Zaribbayevich (2010) County of Origin and Brand Loyalty on Cosmetic Products Among Universiti Utara Malaysia Students

There is Brand Name significant influence Product Quality between Brand Name, Price Style, and Price Style towards Brand Loyalty Service Quality

Source : Research Result 2.5 Conclusion

This chapter presented the previous literatures that implicate the important keywords in this study such as Brand Loyalty, Price, Promotion, Service Quality, and Trend. Thus, guided by the previous researches, it will make this study become grounded and stronger.

CHAPTER 3 METHODOLOGY

Methodology is the most important and critical part in the study. Therefore, the methodology used in the study must be define and fully describe in order to test the hypothesis and address the problems of the study as stated in the beginning of the study. This chapter describes in detail the method used in this study. It consists of (1) Research Framework, (2) Hypotheses Development, (3) Research Design, (4) Operational Definition, (5) Measurement of Variables, (6) Data Collection on Sampling and Data Collection Procedures, and (7) Techniques of Data Analysis.

3.1 Research Framework

Refer to the educational researcher Smyth (2004), he defined the research framework as a framework that constructed from a combination of a wide range of ideas and theories that help researchers to identify problems, develop the questions and search for relevant literature.

Research framework involves the relationship between dependent variable (DV) and independent variables (IV). In other words, dependent variable (DV) will rely on independent variable (IV) and the dependent variable (DV) also do not change independent variable (IV).

Back to this study, there were five variables to be examined based on the research topic, "A Study on Factors Affecting Brand Loyalty in Mobile Service Provider in The College of Business Students of Universiti Utara Malaysia".

Four of the variables were independent variables (IV) while the other variable was dependent variable (DV). The dependent variable (DV) was brand loyalty that relied on independent variables (IV) which consists of four factors that influence the brand loyalty (DV) namely price, service quality, promotion, and trends as shown in Figure 3.1.

The figure shows the variables that need to be examined according to the objectives, research questions, and hypothesis. In this study, all the variables will be analyzed by examined the influence between all the independent variables (price, promotion, service quality, and trend) towards dependent variable (brand loyalty) simultaneously (as showed by the black arrow). Next, all independent variables (price, promotion, service quality, and trend) will be analyzed separately (as showed by the blue arrow) in order to test the influence between each of them towards dependent variable (brand loyalty). Price Promotion Service Quality Trends Brand Loyalty

Figure 3.1 Schematic Diagram for Theoretical Framework Model

3.2 Hypothesis Development

Hypothesis refers to a formal statement of an unproven proposition that is empirically testable (Zikmund et al. , 2010). Hypothesis will be tested through empirical test. It should be written in manner so that either it can be supported if the hypothesis are accepted or it will shown to be wrong if the hypothesis are rejected. There are several hypotheses that have been developed in this study to determine the relationship between independent variables and dependent variable.

For the first hypothesis, all the factors, price, promotion, service quality, and trend will be examined simultaneously. This is to determine whether all of these factors are mutually influential when together or more influential when standing alone. Therefore, the hypothesis is:

H1

: Price, promotion, service quality, and trends influence significantly towards brand loyalty simultaneously among students of College of Business, Universiti Utara Malaysia.

Ismail (2009) had stated that price has been discover as an important factor that will bring impact to the existence of new products and services, but pricing of a new product or service is more difficult. However, the unfair and unreasonable changes in price will cause the customers realize the unfairness and unsatisfactory (Wichai & Siriluck, 2010). Moreover, Zaribbayevich (2010) also stressed that the customers intention of purchase will be difficult to be affected by price the brand loyalty are built into the brand. Hence, the next hypothesis is:

H2 : Price has a significant influence towards brand loyalty in mobile service providers among the students of College of Business, Universiti Utara Malaysia.

According to Ayob (2010), promotion is a tools of marketing mix, apart from price, place, and people. The function of the promotion is to communicate the companys product to the consumers in order to make the consumers aware and attracted to their products. They aim to give the idea and perception into the mind of customers so that the customers can differentiate their products from other competitors brand. This will lead to the customers continuous purchase and repurchase as well as become loyal to the brand. Therefore, next hypothesis is:

H3 : Promotion has a significant influence towards brand loyalty in mobile service providers among the students of College of Business, Universiti Utara Malaysia.

Service quality has been known as a the main strategic issue in service sectors for the operating in organizations (Roostika & Astuti, 2011). While Chen and Ching (2007) had stated that the quality is seems to be the customers expectation in order to receive the perceived value. Furthermore, according to Achour et al. (n.d.), the finding from the previous studies on service quality had suggested that term of service quality service providers are quite diverse, even as if do not fit to any single existing quality model. Therefore, the hypothesis is:

H4 : Service quality has a significant influence towards brand loyalty in mobile service provider among the students of College of Business, Universiti Utara Malaysia.

Factor of trend is not borrowed from any of the previous studies as not yet reviewed by any of previous researchers. It is designed by me in order to study a new factor in which there is a possibility that it has significant influence on brand loyalty. It could be contributing a new source of factors that influence to the selection of brand loyalty in mobile service providers. The trend was also chosen because of people now are more influenced by factors surrounding, such as family and peers. Besides, it is also because of looking at the current trend where we are all surrounded by sophisticated technology that will facilitate our daily lives. Therefore, the proposed hypothesis is as follow:

H5 : Trends has a significant influence towards brand loyalty in mobile service providers among the students of College of Business, Universiti Utara Malaysia.

Next is to choose the most influential factor among the price, promotion, service quality, and trend towards the brand loyalty in mobile service providers. This is to determine and ensure that the factor has an impact on brand loyalty compare to other factors proposed in this study. Therefore, the hypothesis is:

H6 : Which one of the price, promotion, service quality, or trends has the most significant influence towards brand loyalty among students of College of Business, Universiti Utara Malaysia.

3.3 Research Design

According to Zikmund et al. (2010), research design is a master plan that specifies the methods and procedures for collecting and analyzing the needed information. It will provide the skeleton or plan of action for the used of research.

This study entitled "A Study on Factors Influencing Brand Loyalty in Mobile Service Providers Among College of Business Students, Universiti Utara Malaysia is a research that attempts to review the influence of price, promotions, service quality, and trends towards brand loyalty in mobile service providers. The framework for this study is used as a guide for collecting and analyzing data. The data were collected through questionnaires and analyzed through quantitative measures where the numeric values collected from the responses in questionnaires can then be used in statistical computations (SPSS) and hypothesis testing (Zikmund et al., 2010). It is design to be descriptive and multiple regression so to give insights as to which factors of price, promotion, service quality, and trends have influence the brand loyalty in mobile service providers among the students.

3.4 Operational Definition

Operational definitions is a concept that will be processed through operationalization. This process requires the identification of an appropriate scale according to the difference in the concept. Scales provide a variety of values that suits to different values in the concept being measured. Scales also will provide the particular value on a scale that will be correspondence commensurate with the value of some of the true concept (Zikmund et al., 2010). Table 3.1 shows all variables involved in this research, which are brand loyalty, price, promotion, service quality, and trends.

Table 3.1 Operational Definition of Factors Influencing Brand Loyalty Variables Conceptual Definition The tendency of customers to keep buying the same brand Brand Loyalty of a particular product instead of trying other brands. (Macmillan Dictionary Thesaurus) The sum or amount of Price money or its equivalent for which anything is bought, sold, or offered for sale. (Dictionary.com) Price is the medium for exchange of value between a buyer and seller. (Rao, 2011) Operational Definition

Brand Loyalty is the consumer's conscious or unconscious decision, expressed through intention or behavior, to repurchase a brand continually. (Dani, 2012)

Table 3.1 Operational Definition of Factors Influencing Brand Loyalty (continued) Variables Conceptual Definition Operational Definition An assessment of how well a delivered service conforms to the clients expectations. Service business operators Service Quality often assess the service quality provided to their customers in order to improve their service, to quickly identify problems, and to be better assess client satisfaction. (BusinessDictionary.com) The publicization of a product, organization, or venture to increase sales or public awareness. It includes all Promotion forms of communication other than advertising that call attention to products and services by adding extra values toward the purchase. (Google Search) Trends are the aggregate effect of many uncoordinated individual and group actions. It Trend is a persistent change in social relations and social structure over time. (www.webref.org) Source : Research Result Based on the trend nowadays, the internet and telecommunication technologies are frequently regarded as two major drivers for creating new value and introducing new services to customers (Chen & Ching, 2007). Promotion is a set of stimuli that are offered sporadically, and it reinforces publicity actions to promote the purchasing of a certain product. (Alvarez and Casielles, 2005) Service quality is a focused evaluation that reflects the customer's perception of specific dimensions of service: reliability, responsiveness, assurance, empathy, tangibles. (Zeithaml and Bitner, 2003)

3.5 Measurement of Variables

Measurement of Variables are the explanation of the method used to measure or test the variables in a study. Hence, in this study, all the variables are measured through set of questionnaires. Zimkund et al. (2010) had mentioned that a questionnaire must be relevant to the extent of all information collected that can addresses the research question. The questionnaires also must be accurate, where all the information must be reliable and valid. The questionnaire (see Appendix A) is designed to ensure the respondents can esily understand the questions and the languange used by using the straight forward sentences.

The questions used a five-point Likert Scale Method where the respondents have to answer the questions according to their assent towards the questions. According to Zikmund et al. (2010), Likert scale is a measure of attitudes that have been designed to allow the respondents to give rate based on their assent on how strongly they agree or disagree with carefully constructed statements, that provides the ranging from the very positive to very negative attitudes toward some object. The score range for Likert- Scale Method are as in Table 3.2.

Table 3.2 Likert Scale Score Scale Strongly Agree Agree Partly Agree / Disagree Disagree Strongly Disagree Source : Zikmund et al. (2010) Score 5 4 3 2 1

All data were keyed-in and analysed by using Statistical Package for Social Science (SPSS) version 16.0. The questionnaires were adopted and edited from the instruments that have been developed by Zhang and Feng (2009) because most of the questions are reliable and capable to achieve the objectives of this study.

Questionnaires are divided into three sections, where Section 1 captured demographic information, Section 2 captured information on current mobile service provider used by the students, while Section 3 captured information regarding students assent towards their current mobile service provider based on the variables (price, service quality, promotions, and trends) used in this study.

Section 1 : Demographic Information

This section consists of three questions which aims to obtain the respondents demographic information. Questions asked are related to age, gender, and current educational level in Universiti Utara Malaysia.

Section 2 : Current Mobile Service Provider Used

This section consists of three questions to obtain the information on current mobile service provider used by the students. Questions asked related to current mobile service provider, how long it being used, and which mobile connection services used by the students.

Section 3 : Students Perception on Factors of Brand Loyalty in Mobile Service Provider

This section consists of 20 statements to assess students perception towards all the variables involved (brand loyalty, price, service quality, promotions, and trends) on their mobile service providers.

3.6 Pilot Test

Pilot test is a stude on a small-scale research project, where the data are collected from the respondents similarly with those to be used later in the full study (Zikmund et al., 2010).

Han and Kim (2010) indicated that validation of the theorys belief constructs were needed prior to construction of the final questionnaire. It helps researchers to construct a questionnaire that is adequate for a specific behavior and population of interest. Accordingly, a pilot test was conducted in this study.

In the pilot test, 20 initial questionnaires had been sent to participants through convenience sampling method. This sampling technique selects participants with convenient accessibility and proximity to the researcher because it is fast, inexpensive, easy and the participants are readily available. Thus, a pilot test will be used to confirm the actual respondents understanding the questions structured in the questionnaire.

3.6.1 Reliability

Reliability is the consistency of a set of measurements or of a measuring instrument, often used to describe a test (Zikmund et al., 2010). This means that a reliable measure is measuring something consistently, but may not measure the item itself. Reliability applied to people can tell the probability that a person (or group) will successfully perform the specified task, under the specified conditions, for the specified period of time (Blank, 2004). However, reliability does not imply validity.

Cronbach's Alpha (coefficient alpha, ) is a coefficient of reliability. Kaplan and Saccuzzo (2008) suggested that value estimates in the range of 0.70 and 0.80 are good enough for most purposes in basic research. The same point also proposed by Hair et al. (1998), where the stage of score for the pilot tests are as shown in Table 3.3.

Table 3.3 Scale of Pilot Tests Score < 0.60 0.60 0.70 0.70 0.80 > 0.80 Source : Hair et al. (1998) Indicator Poor Moderate Good Very Good

As tested in the study, the summary of the reliability (Cronbach's Alpha) are as in Table 3.4. It shows that the score for the variable of brand loyalty is 0.792 which indicates as good. Score for price is 0.724, also indicated as good. Indicator for promotion is very good because of the score is 0.962. It is same with service quality and trend with the score of 0.863 and 0.861 respectively, which indicates as very good. It can be said that all the variables are reliable for this study.

Table 3.4 Reliability Test Variables Brand Loyalty Price Promotion Service Quality Trend Source : Research Result Items 4 4 4 4 4 Cronbachs Alpha 0.792 0.724 0.962 0.863 0.861

3.6.2 Validity

Validity is defined as the extent to which any measuring instrument measures what it is intended to measure (Carmines and Zeller, 1979). Validity also used to improve existing scales, and to evaluate the reliability of scales already in use. Multivariate procedures like factor analysis can be useful in establishing construct validity (Zikmund et. al., 2010). Test of validity can be identified with the degree of correlation between the test and a measure. In

terms of accuracy and precision, reliability is similar to precision, while validity is similar to accuracy.

According to Table 3.5, overall, all items in each variable is valid. This is indicated by the overall score for all 20 items are between 0.600 to 0.948, which indicates that they are valid since the whole score are 0.600 and above as referred to the scale on Table 3.3.

Table 3.5 Validity Test Brand Loyalty 0.693 0.794 0.847 0.845 Price 0.654 0.721 0.677 0.737 Promotion 0.891 0.916 0.948 0.887 Service Quality 0.600 0.749 0.692 0.807 Trend 0.746 0.779 0.663 0.680

Source : Research Result

3.6.3 Multicollinearity

According to Zikmund et al. (2010), multicollinearity is the extent to which independent variables in a multiple regression analysis are correlated with each other. High multicollinearity can make interpreting parameter estimates difficult or impossible. In this study, as in Table 3.6, it shows that score for the correlation between each of the variables are between 0.284 to 0.577. It indicates that they do not have a strong correlation between each of the

variables. This is because all the score are below than 0.60 which indicates the good multicollinearity between the variables as they do not have strong relation among them.

Table 3.6 Multicollinearity Test Price Price Service Quality Promotion Trend 1.000 0.463 0.529 0.284 Service Quality 0.463 1.000 0.483 0.471 Promotion 0.529 0.483 1.000 0.577 Trend 0.284 0.471 0.577 1.000

Source : Research Result

3.7 Data Collection

Next will be the discussion on sampling and data collection procedures used in this study in order to collect the data from the respondents on the factors (price, promotion, service quality, and trends) that influencing brand loyalty in mobile service providers.

3.7.1 Sampling

This study using Simple Random Sampling, where it is a sampling procedure that assures each element in the population of an equal chance of being included in the sample (Zikmund et al., 2010). This technique is simple compare to other techniques because it requires only one stage of sample

selection. The survey is conducted in Universiti Utara Malaysia (UUM). The target respondents for this study is students of College of Business (COB) that stay at the Students Residential Hall only.

The sample size is 100. However, after distibuting 120 sets of questionnaires to the respondents, only 92 sets are returned. Roscoe (1975) had proposed the rules of thumbs for determining the sample size, where sample sizes larger than 30 and less than 500 are appropriate for most research. As well as by Carmen and Betsy (2007), they said that, although there are more complex formula, the general rule of thumb is no less than 50 participants for a correlation or regression with the number increasing with larger numbers of independent variables (IVs).

3.7.2 Data Collection Procedures

The only approach in collecting data for this study is through questionnaires, since this study is based on quantitative methods of analysis. The quantitative methods of data collection, depending on random sampling and structured data collection instrument according to the objective that need to be achieve in this study. Quantitative research is concerned with testing hypotheses that derived from the study. Data collections were done within two weeks. During the survey. 120 self-administered questionnaires were distributed to the respondents. However, only 92 set of responsed questionnaires were returned.

3.8 Techniques of Data Analysis

The study was began with the Pilot Test in order to test the reliability, validity, and multicollinearity of the items variables before proceed to the real study. Data in this study were analyzed by using Descriptive Analysis and Multiple Regression Analysis.

Descriptive analysis refers to the elementary transformation of raw data in a way that describes the basic characteristics such as central tendency, distribution, and variability (Zikmund et al., 2010). This analysis are used in analyzing the demographic background of the respondents.

Then, for hypothesis testing, first, coefficient of determination (R-Squared) will be tested from the summary table. The R-Squared indicates the degree of the fitness of the regression line. It also shows how good the sample regression line fit the data. A high value of R-squared, which is nearer to 1.0 or more than 50 percent, indicates that line fit very well. In fact, the value of R-Squared implies the extent to which the variation in explanatory variables can be explained the variation in the dependent variable.

By refer to Analysis of Variance (ANOVA) table, compare p-value or significance (as labelled in ANOVA table) with the 95 percent of confidence level (0.05) in order to test the hypothesis. If the p-value is greater than 0.05, it indicates that the result is insignificant. However, if the p-value is lower than 0.05, the result is significant.

Finally, the regression equation will be constructed only for the significant results by refer to the coefficients table. This indicates that the independent variables are able to predict the dependent variable, where an increase in independent variable, the dependent variable also will be increase. Example of the regression equation is:

Y = o + 1X1 + 2X2 + 3X3 + ..+ nXn +

Where,

Y X1, X2,...Xn 0

= Dependent Variable = Independent Variable = Intercept term or constant value = Coefficient for the independent variables = Error Terms

3.9 Conclusion

This chapter explains the methods on the research design applied in this study. It explicate on the pilot test, questionnaire and analysis planned to achieve the aims and objectives of this study.

CHAPTER 4 RESULTS AND DISCUSSION

This chapter will elaborates the various statistic test and interpretation on the result of the analysis. This study determines the factors that influencing brand loyalty in mobile service provider among the students of College of Business, Universiti Utara Malaysia. Total set of questionnaires that were distributed to the respondents were 120 sets. However, only 92 responsed questionnaires returned and can be used in this study. The results obtained from 92 respondents, were thoroughly analysed and the output of the result are clearly explained in this section.

4.1 Demographic Characteristic of the Respondents

Mulder (2006) stated that the demographic refers to the study on the populations of human in accordance to the statistical analysis, such as quantities, characteristics, where they live, age, income, spending, and so on. Therefore, in this part, information on respondents background will be analyzed through descriptive analysis. Zikmund et al. (2010) had defined descriptive analysis as the simple transformation of raw data in a way that depict the basic characteristics such as central tendency, distribution, and variability. The results for each characteristics will be summarized in frequency table respectively.

4.1.1 Age of Respondents

Table 4.1 shows the result on the age of the respondents. It shows that 66.3 percent of the respondents (61 respondents) are between 20 to 25 years old. Meanwhile, 16.3 percent of the respondents (15 respondents) are between 26 to 30 years old. Then, 15.2 percent of the respondents (14 respondents) are less than 20 years old, while 2.2 percent of the respondents (2 respondents) are above 30 years old. This shows that, those in the age group of 20 to 25 years old played a large role in determining the factors that influence brand loyalty in mobile service providers, as they are the majority group in this study.

Table 4.1 Age of Respondents Ages Less than 20 years old 20 25 years old 26 30 years old Above 30 years old Total Source : Research Result Frequency 14 61 15 2 92 Percent (%) 15.2 66.3 16.3 2.2 100.0

4.1.2 Gender of Respondents

Table 4.2 shows result on gender of the respondents. It shows that 85.9 percent of the respondents (79 respondents) are female while 14.1 percent of

the respondents (13 respondents) are male. This shows that the women are more concerned about the use of their mobile service providers, compared to men who may not be so concerned about their providers.

Table 4.2 Gender of Respondents Gender Male Female Total Source : Research Result Frequency 13 79 92 Percent (%) 14.1 85.9 100.0

4.1.3 Respondents Level of Education

Table 4.3 shows the result on respondents level of education. It shows that 63.0 percent of the respondents (58 respondents) are first degree students, while 37.0 percent of the respondents (34 respondents) are master degree students.

Table 4.3 Respondents Level of Education Level of Education Master Degree First Degree Total Source : Research Result Frequency 34 58 92 Percent (%) 37.0 63.0 100.0

4.1.4 Respondents Current Mobile Service Provider

Table 4.4 shows the main mobile service providers in Malaysia. Thirty five respondents (38.04 percent) are Celcom users. Thirty one respondents (33.7 percent) are Maxis users, while 26 respondents (28.3 percent) are Digi customers. This shows that most of the respondents prefer to use the services provided by Celcom and Maxis compare to Digi.

Table 4.4 Respondents Current Mobile Service Provider Service Providers Celcom Maxis Digi Total Source : Research Result Frequency 35 31 26 92 Percent (%) 38.0 33.7 28.3 100.0

4.1.5 Period of Using Current Mobile Service Provider

Table 4.5 shows on how long the respondents have been using the mobile service providers. There are 34 respondents (37.0 percent) have been using the service providers for less than a year. Followed by 21 respondents (22.8 percent) that have been using the service providers for two years. There are also 22 respondents (23.9 percent) have been using the providers for three years, while for four years, there are about 15 respondents (16.3 percent) that have been using it.

Table 4.5 Period of Using Current Mobile Service Provider Period Less than 1 year 2 years 3 years 4 years and above Total Source : Research Result Frequency 34 21 22 15 92 Percent (%) 37.0 22.8 23.9 16.3 100.0

4.1.6 Type of Services on Mobile Connection

Table 4.6 shows the result on the type of mobile connection that are used by the respondents. It shows that 89.1 percent of the respondent (82 respondents) are using prepaid services, while 10.9 percent of the respondents (10 respondents) are using postpaid services.

Table 4.6 Type of Services on Mobile Connection Type of Connection Postpaid Prepaid Total Source : Research Result Frequency 10 82 92 Percent (%) 10.9 89.1 100.0

4.2 Hypothesis Testing

All the data below were obtained through the process in Statistical Package for Social Science (SPSS) version 16.0 software in order to test the hypothesis in this study. The primary data were collected through questionnaires that distributed to the respondents. The data collected had been key in into this software and analyzed by using multiple regression analysis methods. It includes all the variables that were used in this study, which are price, promotions, service quality, trends, and brand loyalty for dependent variable. The test of these hypotheses leads to the accomplishment of study objectives.

4.2.1 Test on Hypothesis 1 (H1)

The proposed hypothesis is :

Price, promotion, service quality, and trends influence significantly towards brand loyalty simultaneously among students of College of Business, Universiti Utara Malaysia.

From the regression on Table 4.7, the value for coefficient of determination (R square) for price, promotion, service quality, and trend simultaneously is 0.573. This indicates that 57.3 percent of the price, promotion, service quality, and trends (independent variables) influential simultaneously against brand loyalty (dependent variable). The remaining of 42.7 percent are influenced by other variables or factors.

Table 4.7 Model Summary of Price, Promotion, Service quality, and Trends Model R R Square Adjusted R Square 0.553 Std. Error of the Estimate 2.486

1 0.757 0.573 Source : Research Result

Table 4.8 shows that p-value ( probability value) is significant at 0.000. At the 95 percent of confidence level, p-value is lower than 0.05 (p < 0.05). Therefore, there is a statistically significant influence between price, promotion, service quality, and trends towards brand loyalty simultaneously.

Table 4.8 ANOVA of Price, Promotion, Service Quality, and Trends Model 1 Regression Residual Sum of Squares 720.919 537.548 df 4 87 91 Mean Square 180.230 6.179 F 29.169 Sig. 0.000a

Total 1258.467 Source : Research Result

Thus, as referred to Table 4.9, the regression equation for price (x1), promotion (x2), service quality (x3), and trends (x4) is : y = 0.987 + 0.012 x1 0.76 x2 + 0.70 x3 + 0.862 x4
(refer to 3.8, page 58 )

It shows that the equation can be used to predict brand loyalty (y), where an increase in price (x1), service quality (x3), and trends (x4), and a decrease in promotion (x2), it will lead to increasing in brand loyalty (y).

Table 4.9 Coefficients of Price, Promotion, Service Quality, and Trends Unstandardized Coefficients Model 1 (Constant) PriceTotal ServQualityTotal PromotionTotal TrendTotal Source : Research Result B 0.987 0.012 0.070 -0.076 0.862 Std. Error 2.109 0.122 0.106 0.138 0.129 0.007 0.062 -0.075 0.798 Standardized Coefficients Beta T 0.468 0.099 0.665 -0.549 6.681 Sig. 0.641 0.921 0.508 0.584 0.000

4.2.2 Test on Hypothesis 2 (H2) :

The proposed hypothesis is :

Price has a significant influence towards brand loyalty in mobile service providers among the students of College of Business, Universiti Utara Malaysia.

From the regression on Table 4.10, the coefficient of determination (R square) for price is 0.003. This indicates that 0.3 percent of the price (independent variable) influential against brand loyalty (dependent variable). The remaining of 99.7 percent are influenced by other variables or factors.

Table 4.10 Model Summary of Price Model R R Square Adjusted R Square -0.008 Std. Error of the Estimate 3.734

1 0.052 0.003 Source : Research Result

Table 4.11 shows that p-value is significant at 0.623. At the 95 percent of confidence level, p-value is higher than 0.05 (p > 0.05). Therefore, there is a statistically insignificant influence between price towards brand loyalty.

Table 4.11 ANOVA of Price Model 1 Regression Residual Sum of Squares 3.390 1255.078 Df 1 90 91 Mean Square 3.390 13.945 F 0.243 Sig. 0.623a

Total 1258.467 Source : Research Result

4.2.3 Test on Hypothesis 3 (H3) :

The proposed hypothesis is :

Promotion has a significant influence towards brand loyalty in mobile service providers among the students of College of Business, Universiti Utara Malaysia.

From the regression on Table 4.12, the coefficient of determination (R square) for promotion is 0.345. This indicates that 34.5 percent of the

promotion (independent variable) influential against brand loyalty (dependent variable). The remaining of 65.5 percent are influenced by other variables or factors.

Table 4.12 Model Summary of Promotion Model R R Square Adjusted R Square 0.338 Std. Error of the Estimate 3.027

1 0.587 0.345 Source : Research Result

Table 4.13 shows that p-value is significant at 0.000. At the 95 percent of confidence level, p-value is lower than 0.05 (p < 0.05). Therefore, there is a statistically significant influence between promotion towards brand loyalty.

Table 4.13 ANOVA of Promotion Model 1 Regression Residual Sum of Squares 433.944 824.523 Df 1 90 91 Mean Square 433.944 9.161 F 47.367 Sig. 0.000a

Total 1258.467 Source : Research Result

Thus, as referred to Table 4.14, the regression equation for promotion (x2) is: y = 6.477 + 0.593 x2 It shows that the equation can be used to predict brand loyalty (y), where an increase in promotion (x2), it will lead to increasing in brand loyalty (y).

Table 4.14 Coefficients of Promotion Unstandardized Coefficients B 1 (Constant) PromotionTotal Source : Research Result 6.477 0.593 Std. Error 1.218 0.086 0.587 Standardized Coefficients Beta 5.315 6.882 0.000 0000

Model

Sig.

4.2.4 Test on Hypothesis 4 (H4) :

The proposed hypothesis is :

Service quality has a significant influence towards brand loyalty in mobile service providers among the students of College of Business, Universiti Utara Malaysia.

From the regression on Table 4.15, the coefficient of determination (R square) for service quality is 0.059. This indicates that 5.9 percent of the service quality (independent variable) influential against brand loyalty (dependent variable). The remaining of 94.1 percent are influenced by other variables or factors.

Table 4.15 Model Summary of Service Quality Model R R Square Adjusted R Square 0.049 Std. Error of the Estimate 3.627

1 0.243 0.059 Source : Research Result

Table 4.16 shows that p-value is significant at 0.020. At the 95 percent of confidence level, p-value is lower than 0.05 (p < 0.05). Therefore, there is a statistically significant influence between service quality towards brand loyalty.

Table 4.16 ANOVA of Service Quality Model 1 Regression Residual Sum of Squares 74.362 1184.105 Df 1 90 91 Mean Square 74.362 13.157 F 5.652 Sig. 0.020

Total 1258.467 Source : Research Result

Thus, as referred to Table 4.17, the regression equation for service quality (x3) is : y = 10.401 + 0.277 x3 It shows that the equation can be used to predict brand loyalty (y), where an increase in service quality (x3), it will lead to increasing in brand loyalty (y). Table 4.17 Coefficients of Service Quality Unstandardized Coefficients B 1 (Constant) ServQualityTotal Source : Research Result 10.401 0.277 Std. Error 1.796 0.117 0.243 Standardized Coefficients Beta 5.790 2.377 0.000 0.020

Model

Sig.

4.2.5 Test on Hypothesis 5 (H5)

The proposed hypothesis is :

Trends has a significant influence towards brand loyalty in mobile service providers among the students of College of Business, Universiti Utara Malaysia.

From the regression on Table 4.18, the coefficient of determination (R square) for trends is 0.570. This indicates that 57.0 percent of the trends (independent variable) influential against brand loyalty (dependent variable). The remaining of 43.0 percent are influenced by other variables or factors.

Table 4.18 Model Summary of Trends Model R R Square Adjusted R Square 0.565 Std. Error of the Estimate 2.452

1 0.755 0.570 Source : Research Result

Table 4.19 shows that p-value is significant at 0.000. At the 95 percent of confidence level, p-value is lower than 0.05 (p < 0.05). Therefore, there is a statistically significant influence between trends towards brand loyalty.

Table 4.19 ANOVA of Trends Model 1 Regression Residual Sum of Squares 717.262 541.206 Df 1 90 91 Mean Square 717.262 6.013 F 119.277 Sig. 0.000

Total 1258.467 Source : Research Result

Thus, as referred to Table 4.20, the regression equation for trends (x4) is: y = 1.893 + 0.815 x4 It shows that the equation can be used to predict brand loyalty (y), where an increase in trends (x4), it will lead to increasing in brand loyalty (y). Table 4.20 Coefficients of Trends Unstandardized Coefficients B 1 (Constant) 1.893 TrendTotal 0.815 Source : Research Result Std. Error 1.189 0.075 0.755 Standardized Coefficients Beta 1.592 10.921 0.115 0.000

Model

Sig.

4.2.6 Test on Hypothesis 6 (H6)

The proposed hypothesis was :

Which one of the price, promotion, service quality, or trends has the most significant influence towards brand loyalty among students of College of Business, Universiti Utara Malaysia.

When analyzed through the backward method, only the most significant variable will be remain in the result. It analyzed by removing the insignificant variables one by one in stages. It can be seen that at the end of this analysis, only the variable of trends have remained in Table 4.21, Table 4.22, and Table 4.23. It means that trends has the most significant influence towards brand loyalty among students of College of Business, Universiti Utara Malaysia.

From the regression on Table 4.21, the coefficient of determination (R square) for trends (backward) is 0.570. This indicates that 57.0 percent of the trends (independent variable) influential against brand loyalty (dependent variable). The remaining of 43.0 percent are influenced by other variables or factors.

Table 4.21 Model Summary of Price, Promotion, Service Quality, and Trends (Backward) Model 1 2 3 4 R .757 .756
a

R Square .573 .573 .571 .570

Adjusted R Square .553 .558 .562 .565

Std. Error of the Estimate 2.486 2.472 2.462 2.452

.757b
c

.755d

a. Predictors: (Constant), TrendTotal, PriceTotal, ServQualityTotal, PromotionTotal b. Predictors: (Constant), TrendTotal, ServQualityTotal, PromotionTotal c. Predictors: (Constant), TrendTotal, ServQualityTotal d. Predictors: (Constant), TrendTotal Source : Research Result

Table 4.22 for backward shows that p-value is significant at 0.000. At the 95 percent of confidence level, p-value is lower than 0.05 (p < 0.05). Therefore, there is a statistically significant influence between trends towards brand loyalty.

Table 4.22 ANOVA of Price, Promotion, Service Quality, and Trends (Backward) Model 1 Regression Residual Total 2 Regression Residual Total 3 Regression Residual Total Sum of Squares 720.919 537.548 1258.467 720.859 537.609 1258.467 718.947 539.521 1258.467 Df 4 87 91 3 88 91 2 89 91 359.473 6.062 59.299 0.000c 240.286 6.109 39.332 0.000b Mean Square 180.230 6.179 F 29.169 Sig. 0.000a

Table 4.22 ANOVA of Price, Promotion, Service Quality, and Trends (Backward) (continued) Model 4 Regression Residual Total Sum of Squares 717.262 541.206 1258.467 Df 1 90 91 Mean Square 717.262 6.013 F 119.277 Sig. 0.000d

a. Predictors: (Constant), TrendTotal, PriceTotal, ServQualityTotal, PromotionTotal b. Predictors: (Constant), TrendTotal, ServQualityTotal, PromotionTotal c. Predictors: (Constant), TrendTotal, ServQualityTotal d. Predictors: (Constant), TrendTotal Source : Research Result

Thus, as referred to Table 4.23 for backward, the regression equation for trends (x4) will be : y = 1.893 + 0.815 x4 It shows that the equation can be used to predict brand loyalty (y), where an increase in trends (x4), it will lead to increasing in brand loyalty (y). Table 4.23 Coefficients of Price, Promotion, Service Quality, and Trends (Backward) Model 1 (Constant) PriceTotal ServQualityTotal PromotionTotal TrendTotal 2 (Constant) ServQualityTotal PromotionTotal TrendTotal Unstandardized Coefficients B 0.987 0.012 0.070 -0.076 0.862 1.123 0.074 -0.077 0.861 Std. Error 2.109 0.122 0.106 0.138 0.129 1.593 0.099 0.137 0.128 0.065 -0.076 0.797 0.007 0.062 -0.075 0.798 Standardized Coefficients Beta 0.468 0.099 0.665 -0.549 6.681 0.705 0.746 -0.559 6.732 0.641 0.921 0.508 0.584 0.000 0.483 0.458 0.577 0.000 t Sig.

Table 4.23 Coefficients of Price, Promotion, Service Quality, and Trends (Backward) (continued) Model 3 (Constant) ServQualityTotal TrendTotal 4 (Constant) TrendTotal Source : Research Result Unstandardized Coefficients B 1.415 0.043 0.804 1.893 0.815 Std. Error 1.499 0.082 0.078 1.189 0.075 0.755 0.038 0.744 Standardized Coefficients Beta 0.944 0.527 10.312 1.592 10.921 0.348 0.599 0.000 0.115 0.000 t Sig.

4.3 Conclusion After the analyzed of the data of 92 samples, it can be conclude that most of the respondents were between 20 to 25 years. Majority of them also were female, and study in the first degree level. Most of them were celcom users, had been using the services for less than a year, and were prepaid users.

For the results on hypothesis testing, as shown in Table 4.24, it shows that hypothesis 1 is accepted, which indicates that the price, promotion, service quality, and trend influence the brand loyalty simultaneously. However, hypothesis 2 is rejected where the price do not influence the brand loyalty. While hypothesis 3 is accepted, which indicates that promotion influence the brand loyalty. Hypothesis 4 also accepted, where it indicates that service quality does influence the brand loyalty. Brand loyalty also can be influenced by trend when hypothesis 5 is accepted. For hypothesis 6, the most significance variable is trend, where among all the variables, trend has the most influence towards the brand loyalty.

Table 4.24 Results on Hypothesis Testing Hypothesis Hypothesis 1 Hypothesis 2 Hypothesis 3 Hypothesis 4 Hypothesis 5 Hypothesis 6 Source : Research Result Accept / Reject Accept Reject Accept Accept Accept Accept Remarks Simultaneously Price Promotion Service Quality Trend Trend (most influence)

CHAPTER 5 CONCLUSION AND RECOMMENDATION

This chapter presents conclusion and recommendation based on the objectives and the findings of the study.

5.1 Conclusions

Malaysian telecommunication services are one of Malaysia fast growing sector. It also have become the most highly developed sector. Accusations of poor network quality services have been a major reason why customers are switching to another providers. The changing landscape of the Malaysian mobile market has witnessed the restructuring of the main players in that market.

As competition is increasing among the companies, especially in the mobile market today, it lead the market to become extremely competitive. The mobile service provider also now are moving aggressively to attract customer by offering attractive promotions and services.

From the review of findings, demographic characteristics of the respondents are limited to age, gender, and level of educations of the respondents. The women and those aged between 20 and 25 years are more influential to this study. Whereas, the majority of the respondents were students in the level of first degree, where they

usually spend less as they were not working. Therefore, they will look for providers who can offer the lowest rates so they can save.

Majority of the respondents were Celcom users. This is possible because of Celcom offer the plans or packages that are better than other providers such as Upax plan that is offered exclusively to university students. Beside that, majority of respondents also had been using the services from their providers for less than a year. This is may due to the providers that compete among themselves to be the cheapest plan providers. This also will lead the respondents often switch to other providers to enjoy the lowest rates. In connection with that, the lower price of prepaid starter pack nowadays also cause the respondent able often to switch to other providers or use more than one sim card.

From the findings on variables involved in this study, only the variable of price that is insignificant towards the brand loyalty. It is due to consumers today that are more concerned about the quality of service, promotions, and trends over the price. If the quality of service has been satisfactory, they will not hesitate to spend more.

In addition, the trend is the most influential factor on brand loyalty in mobile service providers. This is parallel with the current changes in technology and modern lifestyles, which is now equipped with sophisticated technology and people now are more capable to afford expensive items. Besides, it was also result of the efforts of all providers who offer a diversity plan that will provide benefits to all their customers.

In conclusion, brand loyalty is very closely related and influenced by customer satisfaction and commitment. Customer loyalty is believed to help the provider to enhance the reputation and profitability of their companies.

5.2 Recommendations

There are several recommendations drawn from the finding of this study. This recommendations may be a bit much to help the providers to further expand their reputation while maintaining the loyalty of their customers.

The providers can attract more customers by offering a lower price for contract of smartphone or tablet PC (personal computer). This is due to the students today that tend to prefer the use of tablet PC or smart phone, which is more flexible to carry to anywhere. With the lower price for the contract of data plan services together with the gadget, students will be able to have the gadget to facilitate their learning process. Dani (2012) showed that operators that offer value for money service automatically become the first choice for the customers. Accordingly, it surely can increase the number of customers and customers loyalty to the providers.

In addition, the providers should also work to improve the quality of their services. Dani (2012) also said that good network coverage is of umpteen importance for any telecom operator to be successful and the quality of coverage leads to satisfaction or dissatisfaction of the customers.

The mobile service providers need to expand the signal coverage, particularly in rural areas in order to attract more customers. Beside that, they also need to enhance their 3G signal to enable consumers to enjoy their services without interruption, such as browsing the internet, make video calls, doing the mobile banking transactions, online shopping, and so on. Beside that, people now are like to spend more time visiting the social networking such facebook, twitter, and so on. That is why they really need the services of data plan. Beside that, the providers also must ensure that no more short message service (sms) scam received by customers that usually will deduct their credit.

For the promotion, the providers can diversify their style of promotion by having road tour to promote their products to the universities in Malaysia. By this way, students will find it easier to interact with the providers and in the mean time enjoy the services offered.

The providers also need to find new ways to improve their service quality by listening more to their customer and simultaneously gather more information for them to improve their services. They also have to take immediate action to any complaint by the customers in order to avoid the customers switch to another providers.

Another important thing is, it is suggested that studies in other places by using a similar approach with a larger sample such as the whole students of high institutions in Malaysia as the respondents and the users of mobile service providers should be conducted. This will certainly increase the chances to produce the more precise and

accurate results that represent the opinion of students in Malaysia towards the brand loyalty in mobile service providers as they are among the major users of mobile service providers in Malaysia.

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APPENDIX A

QUESTIONNAIRE

TITLE : BRAND LOYALTY IN MOBILE SERVICE PROVIDER

SECTION 1 Please answer the following questions concerning your DEMOGRAPHIC. Please circle for each question. 1. Age A. Less than 20 years old B. 20 25 years old C. 26 30 years old D. Above 30 years old 2. Gender A. Male B. Female 3. Indicate your educational level at Universiti Utara Malaysia A. Master B. Degree

SECTION 2 Please answer the following questions concerning your CURRENT MOBILE SERVICE PROVIDER. Please circle for each question. 4. What mobile service provider you are using now? A. Celcom B. Maxis C. Digi 5. How long have you use this mobile service provider? A. Less than 1 year B. 2 years C. 3 years D. 4 years and above 6. Which type of mobile connection do you use? A. Postpaid B. Prepaid C.

SECTION 3 The following statements relate your feeling towards mobile service provider you are using now. Please show the extend to which you think the mobile service provider should possess the feature described by each statement below. Each of the statement was accompanied by 5 point of scale, from Strongly Disagree (1) to Strongly Agree (5). Please circle the appropriate answer. There are no right or wrong answers. Partly Agree / Disagree

Strongly Disagree

Disagree

Agree

Strongly Agree

1. Price PE1 PE2 PE3 PE4 The rates offered by this operator are reasonable. This operator is offering flexible pricing for various services that meet my needs. There are no hidden fees charged by the operator. I will continue to stay with this operator unless the price is significantly higher for the same services. 1 1 1 1 2 2 2 2 3 3 3 3 4 4 4 4 5 5 5 5

2. Service Quality SQ1 SQ2 SQ3 SQ4 This operator is consistent in providing good services. This operator updates their customers with the latest information of new services or packages. The counter frontline of this operator are very friendly and willing to help. The operator will take immediate action to solve the customers complain. 1 1 1 1 2 2 2 2 3 3 3 3 4 4 4 4 5 5 5 5

3. Promotions PN1 PN2 PN3 PN4 The advertisement of the operator in media (TV,newspaper,etc.) are very attractive and influenced. The celebrity ambassador influenced you in choosing the operator. The promotion offered by the operator are valuable. They use effective promotional strategies to attract customers 1 1 1 1 2 2 2 2 3 3 3 3 4 4 4 4 5 5 5 5

4. Trends TR1 TR2 TR3 TR4 The selection of operator is much more influenced by family. The selection of services operator also influenced by friends that using the same operator. I am selecting this operator because the trend of using smart phone that need to use data connection. I am selecting this operator because the trend of family packages that are more valuable. 1 1 1 1 2 2 2 2 3 3 3 3 4 4 4 4 5 5 5 5

5. Brand Loyalty BL1 BL2 BL3 BL4 I intend to continue using the current operator for a long time. Even if others operators price is lower, I will keep on using this operator. I will encourage friends and relatives to use the services from this operator. This operator clearly is able to provide the best service. 1 1 1 1 2 2 2 2 3 3 3 3 4 4 4 4 5 5 5 5

APPENDIX B

PILOT TEST (RELIABILITY, VALIDITY, AND MULTICOLLINEARITY)

Brand Loyalty

Case Processing Summary N Cases Valid Excluded Total 20 0 20 % 100.0 .0 100.0

Reliability : Reliability Statistics Cronbach's Alpha .792 N of Items 4

Validity : Item-Total Statistics Corrected Item-Total Correlation Brand Loyalty 1 Brand Loyalty 2 Brand Loyalty 3 Brand Loyalty 4 .693 .794 .847 .845

Price

Case Processing Summary N Cases Valid Excluded Total 20 0 20 % 100.0 .0 100.0

Reliability : Reliability Statistics Cronbach's Alpha .724 N of Items 4

Validity : Item-Total Statistics Corrected Item-Total Correlation Price 1 Price 2 Price 3 Price 4 .654 .721 .677 .737

Promotion

Case Processing Summary N Cases Valid Excluded Total 20 0 20 % 100.0 .0 100.0

Relliability : Reliability Statistics Cronbach's Alpha .962 N of Items 4

Validity : Item-Total Statistics Corrected Item-Total Correlation Promotion 1 Promotion 2 Promotion 3 Promotion 4 .891 .916 .948 .887

Service Quality

Case Processing Summary N Cases Valid Excluded Total 20 0 20 % 100.0 .0 100.0

Reliability : Reliability Statistics Cronbach's Alpha .863 N of Items 4

Validity : Item-Total Statistics Corrected Item-Total Correlatio Service Quality 1 Service Quality 2 Service Quality 3 Service Quality 4 .600 .749 .692 .807

Trend

Case Processing Summary N Cases Valid Excluded Total 20 0 20 % 100.0 .0 100.0

Reliability : Reliability Statistics Cronbach's Alpha .861 N of Items 4

Validity: Item-Total Statistics Corrected Item-Total Correlation Trend 1 Trend 2 Trend 3 Trend 4 .746 .779 .663 .680

Multicollinearity :

Correlations PriceTotal PriceTotal Pearson Correlation Sig. (2-tailed) N ServQuality Pearson Correlation Total Sig. (2-tailed) N Promotion Pearson Correlation Total Sig. (2-tailed) N TrendTotal Pearson Correlation Sig. (2-tailed) N 20 .463 20 .529 20 .284 .226 20
* *

ServQuality Total .463* .040 20 1 20 .483 20 .471* .036 20

**

Promotion Total .529* .016 20 .483 20 1 20 .577** .008 20

**

TrendTotal .284 .226 20 .471* .036 20 .577** .008 20 1 20

.040

.000

.016

.000

*. Correlation is significant at the 0.05 level (2-tailed). **. Correlation is significant at the 0.01 level (2-tailed).

APPENDIX C

HYPOTHESIS 1 Variables Entered/Removedb Model Variables Entered 1 TrendTotal, PriceTotal, ServQualityTotal, PromotionTotala Variables Removed Method

Enter

Model Summary Model 1 R .757

a

R Square .573

Adjusted R Square .553

Std. Error of the Estimate 2.486

a. Predictors: (Constant), TrendTotal, PriceTotal, ServQualityTotal, PromotionTotal

ANOVAb Model 1 Regression Residual Total Sum of Squares 720.919 537.548 1258.467 df 4 87 91 Mean Square 180.230 6.179 F 29.169 Sig. .000a

a. Predictors: (Constant), TrendTotal, PriceTotal, ServQualityTotal, PromotionTotal

Coefficientsa Unstandardized Coefficients Model 1 (Constant) PriceTotal ServQualityTot al PromotionTotal TrendTotal B .987 .012 .070 -.076 .862 Std. Error 2.109 .122 .106 .138 .129 .007 .062 -.075 .798 Standardized Coefficients Beta t .468 .099 .665 -.549 6.681 Sig. .641 .921 .508 .584 .000

HYPOTHESIS 2

Variables Entered/Removedb Model Variables Entered Variables Removed 1 PriceTotala . Method Enter

Model Summary Model 1 R .052a R Square .003 Adjusted R Square -.008 Std. Error of the Estimate 3.734

a. Predictors: (Constant), PriceTotal

ANOVAc Model 1 Regression Residual Total Sum of Squares 3.390 1255.078 1258.467 df 1 90 91 Mean Square 3.390 13.945 F .243 Sig. .623a

a. Predictors: (Constant), PriceTotal

Coefficientsa Model 1 (Constant) PriceTotal Unstandardized Coefficients B 15.698 -.083 Std. Error 2.309 .169 -.052 Standardized Coefficients Beta 6.799 -.493 .000 .623 t Sig.

HYPOTHESIS 3 Variables Entered/Removedb Model 1 Variables Entered PromotionTotala Variables Removed . Method Enter

Model Summary Model 1 R .587a R Square .345 Adjusted R Square .338 Std. Error of the Estimate 3.027

a. Predictors: (Constant), PromotionTotal

ANOVAb Model 1 Regression Residual Total Sum of Squares 433.944 824.523 1258.467 df 1 90 91 Mean Square 433.944 9.161 F 47.367 Sig. .000a

a. Predictors: (Constant), PromotionTotal

Coefficientsa Model 1 (Constant) PromotionTotal Unstandardized Coefficients B 6.477 .593 Std. Error 1.218 .086 .587 Standardized Coefficients Beta 5.315 6.882 .000 .000 t Sig.

HYPOTHESIS 4 Variables Entered/Removedb Model 1 Variables Entered ServQualityTotala Variables Removed . Method Enter

Model Summary Model 1 R .243a R Square .059 Adjusted R Square .049 Std. Error of the Estimate 3.627

a. Predictors: (Constant), ServQualityTotal

ANOVAb Model 1 Regression Residual Total Sum of Squares 74.362 1184.105 1258.467 df 1 90 91 Mean Square 74.362 13.157 F 5.652 Sig. .020a

a. Predictors: (Constant), ServQualityTotal

Coefficientsa Model 1 (Constant) ServQualityTotal Unstandardized Coefficients B 10.401 .277 Std. Error 1.796 .117 .243 Standardized Coefficients Beta 5.790 2.377 .000 .020 t Sig.

HYPOTHESIS 5 Variables Entered/Removedb Model Variables Entered 1 TrendTotala Variables Removed . Method Enter

Model Summary Model 1 R .755

a

R Square .570

Adjusted R Square .565

Std. Error of the Estimate 2.452

a. Predictors: (Constant), TrendTotal

ANOVAb Model 1 Regression Residual Total Sum of Squares 717.262 541.206 1258.467 df 1 90 91 Mean Square 717.262 6.013 F 119.277 Sig. .000a

a. Predictors: (Constant), TrendTotal

Coefficientsa Model 1 (Constant) TrendTotal Unstandardized Coefficients B 1.893 .815 Std. Error 1.189 .075 .755 Standardized Coefficients Beta 1.592 10.921 .115 .000 t Sig.

HYPOTHESIS 6

Variables Entered/Removedb Model 1 Variables Entered TrendTotal, PriceTotal, ServQualityT otal, PromotionTot ala . . Variables Removed Method

Enter

2 3 4

PriceTotal PromotionTotal

Backward (criterion: Probability of F-toremove >= .100). Backward (criterion: Probability of F-toremove >= .100). Backward (criterion: Probability of F-toremove >= .100).

. ServQualityTotal

Model Summary Model 1 2 3 4 R .757a .757 .755

b c

R Square .573 .573 .571 .570

Adjusted R Square .553 .558 .562 .565

Std. Error of the Estimate 2.486 2.472 2.462 2.452

.756

a. Predictors: (Constant), TrendTotal, PriceTotal, ServQualityTotal, PromotionTotal b. Predictors: (Constant), TrendTotal, ServQualityTotal, PromotionTotal c. Predictors: (Constant), TrendTotal, ServQualityTotal d. Predictors: (Constant), TrendTotal

ANOVAe Model 1 Regression Residual Total 2 Regression Residual Total 3 Regression Residual Total 4 Regression Residual Total Sum of Squares 720.919 537.548 1258.467 720.859 537.609 1258.467 718.947 539.521 1258.467 717.262 541.206 1258.467 df 4 87 91 3 88 91 2 89 91 1 90 91 717.262 6.013 119.277 .000d 359.473 6.062 59.299 .000c 240.286 6.109 39.332 .000b Mean Square 180.230 6.179 F 29.169 Sig. .000a

a. Predictors: (Constant), TrendTotal, PriceTotal, ServQualityTotal, PromotionTotal b. Predictors: (Constant), TrendTotal, ServQualityTotal, PromotionTotal c. Predictors: (Constant), TrendTotal, ServQualityTotal d. Predictors: (Constant), TrendTotal

Coefficientsa Model 1 (Constant) PriceTotal ServQualityTotal PromotionTotal TrendTotal 2 (Constant) ServQualityTotal PromotionTotal TrendTotal 3 (Constant) ServQualityTotal TrendTotal 4 (Constant) TrendTotal Unstandardized Coefficients B .987 .012 .070 -.076 .862 1.123 .074 -.077 .861 1.415 .043 .804 1.893 .815 Std. Error 2.109 .122 .106 .138 .129 1.593 .099 .137 .128 1.499 .082 .078 1.189 .075 .755 .038 .744 .065 -.076 .797 .007 .062 -.075 .798 Standardized Coefficients Beta .468 .099 .665 -.549 6.681 .705 .746 -.559 6.732 .944 .527 10.312 1.592 10.921 .641 .921 .508 .584 .000 .483 .458 .577 .000 .348 .599 .000 .115 .000 t Sig.