Table of Contents
Page
Introduction …………………………………………………………………….. 2
Company Background ………………………………………………………… 3
Aim of the Study ……………………………………………………………….. 7
Objectives ……………………………………………………………………….. 7
Research Questions …………………………………………………………… 8
Hypothesis ………………………………………………………………………. 8
Timetable ………………………………………………………………………… 9
Methodology ……………………………………………………………………..10
Respondents and Area of Study ……………………………………………. 11
Validity and Instrumentation ………………………………………………… 12
References ………………………………………………………………………. 14
Appendix ………………………………………………………………………….15
Marketing Research
Introduction
Today’s market is characterised by highly competitive organisations which are all vying for consumer’s loyalty. Firms are faced with the challenge to maintain their own competitive edge to be able to survive and be successful. Strategies are carefully planned and executed to gain the ultimate goal of all: company growth. However, external factors are not the only elements which influence growth. There are also internal factors, components working within the organisation which shape the direction of the company.
Along with the changing business world, customers change as well, becoming more demanding and knowledgeable than before. In turn, company management had shifted their focus on their clients or customers so as to stay successfully in business. This transition meant that organisations have to completely reformulate their conventional business aims and purposes from being process-focused to customer-centred. Hence, in order to bring out exceptional customer services within the company operations, the management should employ fine-tuned organisational restructuring. Moreover, employing proactive customer commitment involves the consideration on culture and infrastructure (Lowenstein, 1997).
Despite the economic and technological conditions that make it possible now to promote products and services in a larger consumer market, there are other factors that still need to be considered for a business organisation reach out easier to their target market. Looking into the characteristics and thought processes of the people still holds as the most significant factor to be looked into by the individuals in the field of sales and marketing. The large scope of market can pose a hindrance to a successful marketing strategy in terms of over generalised definition of the target or niche market.
Company Background
PCCW Limited known as the Pacific Century CyberWorks is the dominant telecommunication enterprise in Hong Kong. The company was listed on Hong Kong Stock Exchange (SEHK) since October 1994. The company offers cable, internet telephony and mobile telephony as their core products.
The business was formed by Li Tzar Kai, Richard, the younger son of Hong Kong tycoon and billionaire Li Ka Shing, and is formerly called the Pacific Century Development, and investment holding company. Its English name became Pacific Century Cyber Works Limited on August 9, 2002.
The company contributes in enhancing the image of Hong Kong as a center of technology and business superiority, with its outstanding innovation, especially in terms of IP-based business services, New Generation Fixed Line services, broadband pay-TV, Internet access, media content, large-scale IT solutions, mobility, and wireless innovations (‘Company Profile of PCCW-HKT Limited’ 2009). It also facilitates and encourages international, most especially Western organizations to bring their businesses to Asia, run operations across the region, and bring Asian businesses to other parts of the world.
Currently, it has approximately 17,000 employees, located in different parts of the globe, including mainland China, South America, Japan, Korea, Thailand, Malaysia, Singapore, Taiwan, Europe, the United States, India, and the Middle East, and form the technology flagship of the Pacific Century Group (‘Company Profile of PCCW-HKT Limited’ 2009).
In addition to the mentioned services, PCCW also provides solutions for port management, security and CCTV systems, audio and visual solutions, and technical support and maintenance services to various sectors in the industry, such as governments, public services, aviation, and broadcast engineering operations (‘Company Profile of PCCW-HKT Limited’ 2009).
Furthermore, the number of the company’s employees and the extent of its services enable it to achieve its mission and vision, which is to provide innovative and practical technological and communication solutions and services to its market. It also seeks to maintain and sustain a global corporate identity, which is needed to represent the company’s new leadership position in the satellite, telephony and Internet service industries (‘PCCW, 2009). In addition, with the contribution of its large team of professionals, experiences and knowledge in the IT industry, the company integrates and influences both the Hong Kong and Chinese resources in providing excellent ICT solutions that would help consumers develop innovative and challenging business opportunities that would attain operation efficiency (‘Company Profile of PCCW-HKT Limited’ 2009). The company also seeks to create an identity, including strategy, naming and complete visuals, which will enable it to communicate all of its service offerings, while expressing a unique blend of agility and stability (‘PCCW’ 2009) that will enable its consumers to recognize its contribution in the market and in the industry.
Given this situation PCCW is keen to determine the extent to which customer loyalty is based upon price competitiveness and whether the redevelopment of additional products and services could ensure that they maintain their existing customer base as well as capture a proportion of the growing market. Managers at PCCW believe that a market research survey is required to address these questions.
Basically, the major objective of marketing is to regard the product as a service from the viewpoint of its connecting value rather than its use value It is more imperative for the company to know how its product can provide service and support the tribe in its very being, than how to deliver the offer to the consumer (Cova & Cova, 2002). Here the belief of ritual is significantly essential to depict the way companies marketed to the in-line roller tribe (“intensive tribal marketing”). According to Kotler & Armstrong (2001), rituals provide a social reality with permanence. Like every social relationship requires some kin of ritual to establish and sustain it self, so too a tribe relies on rituals to pronounce its existence and sustain its membership.
In a marketplace where there is often little differentiation between brands, the organisation, its people, its policies and its attitude can often be the point of difference. In many product categories the service, back-up and support is as important as the product itself. Customers need to have confidence in the organisation. Consumer crises such as product recalls usually relate to one product but they will put other products, brands and even the whole company under the spotlight. Companies are finding it increasingly difficult to remain anonymous behind their brands. Consumers are more aware than ever before, and with the proliferation of media titles and access to new media, they have access to more information.
For many companies the brand is the company which means that it’s necessary to invest in the brand and the corporate reputation. But reputation has to be earned. It is an asset with a value as important as any other within an organisation. And like all assets it has to be managed with its own disciplines, budgets and ROI (return on investment) criteria. Good reputation is vital to support marketing. In good times it provides that extra bonus. In bad times it can minimise problems. And it can help recruit better people and attract the best business partners.
In the Consumer and Market Knowledge department in PCCW, plays a role in understanding the consumers and developing and evaluating marketing strategy. With the strategic thinking and a series of advanced market research techniques, they work as the internal business consultation, collecting and analysing all kinds of information about consumers and the market in an accurate and timely way, including consumer behaviour, consumption practice, purchase psychology, attitudes towards products, feedback to advertising and pricing. All these information is analysed in a systematic and objective way, so that the company can provide reliable data and recommendation to impact the company’s business decision and evaluate the effectiveness of marketing strategy.
Aim of the Study
This research will conduct an experimental study to examine the pricing strategy and consumer preferences and loyalty in the case of PCCW in HK. The research will perform surveys in order to obtain needed information to attain the objectives of the study. Furthermore, this study would assess relevant literature review on the same topic.
Objectives
This study will investigate and prove that pricing have a significant effect on the consumer preferences and loyalty in the case of PCCW. Essentially, this research aspires to study the topic through reviewing related articles and also by getting the perceptions of knowledgeable individuals regarding the topic through surveys. These individuals are the customers of PCCW in HK.
The major objective of this study is to observe and determine the perceptions of the customers of PCCW in HK. Moreover, this study will focus on the following objectives:
1. To examine the awareness of the customers about the services provided by PCCW in HK.
2. To examine if these pricing strategies of PCCW in HK affect the preferences and loyalty of their consumers.
Research Questions
The focal point of the problem statement is to ascertain and verify the effect of pricing on consumer preferences and loyalty in the case of PCCW in HK. Presently, there are limited studies that provide a definitive answer regarding the topic. The researcher is hopeful that this proposed research will yield a significant result in terms of positive and negative impact of pricing to the consumer behaviour of PCCW in HK.
This study will attempt to answer the following questions:
1. What is the level of awareness of the consumers about services offered by PCCW in HK?
2. Is there any significant relationship between PCCW’s strategy and their consumer preferences and loyalty?
Hypothesis
Based on the previous information, the study will work on the following hypothesis:
Timetable
TASK
Weeks
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
Select topic
Undertake preliminary literature search
Define research questions
Write-up aims and objectives
Select appropriate methodology and locate sources of information. Confirm access.
Write-up Research Plan
Undertake and write-up draft critical literature review.
Secondary and Primary Data Detailed
Sources
Consulted
Research Findings:
Analysed
Evaluated
Written-up
Discussion:
Research findings evaluated and discussed in relation to the literature review
Methodology written-up
(including limitations and constraints)
Main body of the report written-up and checked for logical structure
Conclusions drawn
Recommendations made
Introduction and Executive Summary written-up
Final format and indexing
Methodology
The research method that will be used for this study will be quantitative method combined with descriptive method; quantitative method will be used as it will utilise respondents from which the information will be gathered from, and as such statistics are important for the completion of the study. Meanwhile, descriptive method will also be combined with the original method of study. Although it can be admitted that descriptive method more often accompanies qualitative research method, it nevertheless gives a different approach to the study as it will give more depth to the assessment of a the quantitative study. With the subject of the study focusing on the characteristics and consumer behaviour of PCCW, it will be better to gain the statistical analyses of the respondents to the advertisement, and couple it through the use of the descriptive research method will be highly competent in depicting the behaviours of the consumers. Moreover, quantitative coupled with descriptive methods are more likely to be used for the analysis and the study of the culture and their effect on society, which makes it the ideal method to be used for the study of their causes and effects, as well as helps with the possibility in isolating several factors; it also helps to provide closure with regards to the outcome of the study that focuses on qualitative analyses backed by the statistical evidences (Anzul, et al, 1991: 210) as well as continuity that occurs within the community despite the possible biases that this may bring to the study (Purcell Jr., 1973 and Yow, 2004).
With this, it is then understood that the study will be focusing on information gathered from both respondents and from the researcher’s account and notes concerning the pricing strategies. Statistical information will lend to the credibility of the study and is important to isolate factors that may have affected the success PCCW. Descriptive analyses will also study the methods used by PCCW to ensure that the appropriate pricing strategy reach out to the correct group of people. As such, the information-gathering will then be based on the method of the research being done and will also be utilising a combination of both information gathered from the respondents as with the information taken from the literatures.
Respondents and Area of Study
The method of this study will be utilising is through random sampling wherein the researcher will be required to randomly select people to represent the advances of the whole population. The study will be depending on respondents who are using PCCW services. Questionnaires will be distributed to the respondents who avail of the PCCW services; this method of sampling is called the probability method in which the researcher will limit the customers to random choosing. There will be 150 respondents who will be selected to take part in the survey, with the researcher counting on them having various characteristics, backgrounds, and economical backgrounds will be regarded as valid sources of information.
At the same time and along with the respondents who will be asked concerning the influence of pricing, the study will also be using articles and literatures as source of their information. Moreover, this research utilises the use of media art in the form of advertisements which that can be shown through television or magazine articles. A combination of such information analyses will hopefully show how PCCW services interpret the needs and demands of their target consumers.
Validity and Instrumentation
The questionnaire (see Appendix) is prepared based on the research questions that were presented. This is to ensure that the questions that will be asked from the respondents will be able to yield the necessary information for the formulation of the conclusion. Along with a letter to the respondents, the questionnaire will contain the following: the first part is for knowing the basic characteristics of the respondents for their identification; the second part focuses on the perceived methods that the product uses for addressing the needs of their target consumers; the third focuses on the consumers’ preferences and loyalty with regards to information on the product; finally, the fourth is on the effects of the product’s advertisements to the consumers.
Together, these questions will be used for the gathering of information from the respondents and will assist in putting together an assessment of the consumers’ perception of PCCW’s pricing methods.
As discussed, the method of analysis that this study will be using is based on the gathered information that provide methods of assessing the characteristics and the consumer behaviours especially based on the pricing strategy. The primary method of analysis that will be used for this study, however, will be focused on the information gathered from the respondents. Careful assessment must be done on the literatures themselves and notes were taken that helped in finding information that related primarily to the consumer behaviour and how culture affects the choices that the customers make. A combination of the information will be helpful for the study.
One of the problems that the researcher must deal with is to ensure that biases will not be given to the study; as the information will be based primarily on the information gathered from the literatures, which are secondary sources, this may be a problem that the researcher may face. As such, the researcher will then strive to ensure that the method of information analysis will be conducted in a very objective manner, and will not in any way affect the outcome of the study.
References
Anzul, M Ely, M Friedman, T Garner, D & Steinmetz, AM 1991, Doing Qualitative Research: Circles within Circles. London: Falmer Press.
Cova, B & Cova, V 2002, Tibal Marketing:The Tribalisation of Society and its Impact on the Conduct of Marketing. European Journal of Marketing,36,5.
Kotler, P & Armstrong, G 2001, Principles of marketing, 9th edn., Prentice Hall, London.
Lowenstein, MW 1997, The Customer Loyalty Pyramid. Westport, CT: Quorum Books.
PCCW 2009, Online Encyclopedia, viewed 19 February 2009, <http://www.encyclopedia.com>.
PCCW-HKT 2009, Computer Business Review, viewed 19 February 2009, <http://www.cbronline.com/companyprofile.asp?guid=7D6D6241-657B46FD-9F42-A45881051E3F&alpha=p>.
Purcell, EA Jr. 1973, The Crisis of Democratic Theory: Scientific Naturalism & the Problem of Value. Lexington, KY: University Press of Kentucky.
Yow, V 2004, “Key Themes in Qualitative Research: Continuities and Change.” The Oral History Review, 31(1), 104.
Appendix
Questionnaire
The questionnaire is part of Marketing Research to examine the effect of pricing strategy of PCCW in Hong Kong on consumer preferences and loyalty. This questionnaire will take you less than 15 minutes to complete. Please tick on the box to indicate your answer.
All information collected will be treated with strict confidentiality and only used for academic purposes.
The Researcher
FORMTEXT SECTION 1: Personal details
1. Name (Optional): ______________________________
2. Please state your gender: 1. Male FORMCHECKBOX 2. Female FORMCHECKBOX
3. Age: 1. 15-24 FORMCHECKBOX 2. 25-34 FORMCHECKBOX 3. 35+ FORMCHECKBOX
FORMTEXT Section 3: Buying Preferences and Loyalty towards PCCW services
For questions 4-11, please indicate the extent to which you agree or disagree with the following statements.
Strongly Strongly
1 2 3 4 5
4. The services offered by PCCW is excellent. FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX
5. Using PCCW Intermet services means better
connection speed. FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX
6. PCCW Intermet services means better pricing
scheme. FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX
7. PCCW Intermet services means quality
customer service. FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX
8. I will pay more for a fast internet service. FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX
9. I would do some information research before FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX
I use PCCW services.
10. I will only use PCCW services when it is on FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX
promotional price.
11. I will ask friends/family members for opinion FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX
before I use their services.
FORMTEXT SECTION 3: Attitudes towards Pricing Strategy offered by PCCW
For question 12-19, please indicate the extent to which you agree or disagree with the following statements.
Strongly Strongly
Disagree Agree
1 2 3 4 5
12. The next time I use the services of an Internet
service provider I would pay more attention to their FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX
prices.
13. If I have intention to change the services of my
Internet service provider FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX
I would pay more attention to their prices.
14. I can easily associate the name of PCCW. FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX
to the prices of their services.
15. The pricing strategy of PCCW convinced me
of the Quality of their services they offer. FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX
16. The implied values of PCCW. In regards to
their prices affected my decision to use their FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX
services.
17. The prices offered by PCCW have
enhanced their image. FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX
18. I talked about the pricing strategy of PCCW
to my friends/ family members because it FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX
gave me a strong impression.
19. I project myself having a better internet service after FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX FORMCHECKBOX
using the services of PCCW.
Thank You
Credit:ivythesis.typepad.com
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