CERTIFICATE IV MARKETING

MARKET RESEARCH REPORT

Mobile Phone Industry - Contract vs Prepaid

Angela Brancato
Renae Devito
Sarah Rosario
Escarle Pacheco

MARKET RESEARCH REPORT 1
Executive Summary 3
Introduction/Background 4
Problem Definition/Hypothesis 5
Questionnaires / Survey Tools 9
Analysis, Tabulations, Cross Tabulations and Graphs 10
Main Findings 12
Conclusions and Recommendations 13
Bibliography and Appendix 15

Executive Summary

Write last as you summaries what in every section

The aim of our research project is to determine if there is a trend in consumers switching from post paid to pre paid plans and to determine why they are doing so.

We created a hypothesis for each member of the group allowing us to research different factors in the mobile phone industry which determine whether consumers choose prepaid or contract.

The strategies used included a pilot study, secondary data and a 20 question survey. The market which was targeted were both male and female between the ages of 20 - 45 years old.

Introduction/Background

The aim of our research project is to determine if there is a trend in consumers switching from post paid to pre paid plans and to determine why they are doing so.

Problem Definition/Hypothesis
A hypothesis is a supposition or proposed explanation made on the basis of limited evidence as a starting point for further investigation1. From switching from post paid to pre paid we can create four hypothesis which could explain a trend in consumers switching from post paid to pre paid.

1. Prepaid offers better rates/inclusions for voice/data and SMS
2. Consumers are more aware of ‘bill shock’ and prefer to know costs up front and not incur excess usage fees
3. Consumers prefer the freedom to easily change service provider if not satisfied with the quality and coverage provided.
4. The availability/ freedom to upgrade to the desired handset at a particular price point

From the above we began to research our topic in order to see if our hypothesis would be proven to be correct or not.

Data/ Call Costs - Prepaid offers better rates/inclusions for voice/data and SMS.

My hypothesis was that pre paid plans from mobile service providers offer better rates and inclusions for voice, data and sms charges.

I believe this is true do to personal experience and also pilot studies.

Contracts whether being for mobiles or anything can often be very confusions and have many terms and conditions which hinder the consumer from things such as leaving, charges, obligations and warranty.

Having the freedom of pre paid can allow a consumer to move from service provider to service provider, allow them to

The questions in the survey that was presented which allows me to research my hypothesis and generate some conclusions and answers were:

From the findings of the survey we can see that the results are

This makes my hypothesis to be proven/unproven

I have learnt from my hypothesis being proven/unproven that

Data/ Call Costs - Consumers are more aware of ‘bill shock’ and prefer to know costs up front and not incur excess usage fees.
Handsets - The availability/ freedom to upgrade to the desired handset at a particular price point.

Brand Loyalty - Consumers prefer the freedom to easily change service provider if not satisfied with the quality and coverage provided.

This hypothesis has not been proven with the survey results revealing that consumers are still more likely to opt for the contract option over prepaid. Over 70% of respondents indicated that they are currently on a locked in contract with their service provider. The results also show that month by month plans are becoming more popular with consumers as they provide the freedom to change data/call plans and move service providers without facing the harsh penalties that have been traditionally involved.