FACTORS INFLUENCING BUYING BEHAVIOR OF RING BACK TONE SERVICE IN NEPAL

Submitted By Sushma Dawadi

A Graduate Research Project Submitted in partial fulfillment of the requirements of the degree of Master in Business Administration At Ace Institute of Management Pokhara University

June, 2013

EXECUTIVE SUMMARY
Initially, mobile telephony was used for only voice based service. However recently, cellular phones have become not only a necessity but they also create additional values for users through many different applications and services. Ring back tone service is, generally, perceived as a major revenue generating and user experience enhancing service.

This study offers an insight into ring-back tone usage in Nepal using the consumer attitudes and perception. Thus, the main aim of the study is to understand the demographic characteristics and buying patterns of ring-back tone users in Nepal. And hence, recognize the factors that influence users to purchase Ring-back tones. Besides, the study tries to identify the target customers for the segment, thus helping the operators improve their promotional plan for the segment.

To conduct the primary research, a set of questionnaire has been designed and distributed to 120 mobile phone users in Kathmandu valley. Thus obtained data has been analyzed from SPSS 16.0 and the findings have been presented. Similarly, secondary data have also been collected from different newspaper, magazines, book, journals and internet sites. The research model is based on the Technology Acceptance Model (TAM), developed by Davis (1989). The model specifies the causal relationships between system design features, perceived usefulness, perceived ease of use, attitude toward using, and actual usage behavior.

People of age group 21-30 years, mostly students and those in private service, from Bagmati and Gandaki are the major users of ring back tone. Users with income between 20000-30000 and mobile expenses upto 1000 use ring back tones the most. 43% of the users sometimes use the service while only 30% are always using the service. These users were familiar with the service from advertisements and while calling others. Respondents are willing to use the service more irrespective of gender, age, occupation, income, expense; however, people from Sagarmatha, Narayani and Janakpur region will be influenced if the choices are latest and trendy.

From the data analysis, it has been found out that 63% of the respondents are users while 37% are non-users of ring back tone. 70% of the users find the service is highly entertaining and 69% find it very easy to use. 40% users are satisfied with the contents and 37% agree that the quality of the service is satisfactory. 52% users and 41% nonusers are unhappy with the cost while 96% users feel the updates are inadequate.

It has been found that the overall mean scores for all 120 items put together is 3.305 on a 5 point scale. Thereby it can be stated that the overall factors influencing the buying behavior of Ring back tones is at satisfactory level or above average. The study has found out that the non-users are not using the service due to its high cost. Users want to use the service whenever a new item is available however due to high cost; the usage is limited to only sometimes especially once in a month or only during festivals. The most used ring back tone is songs with preference for the same ring back tones for all calling parties. Users use it just to be social; because their friends are using and feel that the service is easy to use while maximum users state they would use the service more if the cost is lowered. Thus, the most influencing factors are price and then the contents of the service.

Hence, the operators need to lower the price and widen the varieties of contents maintaining the high entertainment value with the impression of highly sophisticated accessory revealing users personality and taste.