CUSTOMERS PERCEPTION OF PREPAID CELLULAR OPERATORS SERVICE QUALITY AND MARKET SEGMENTATION

• Main Author: WIJAYA (NIM: 23403062), EDY
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/21881
• Institution: Institut Teknologi Bandung

Technological advancements in this globalization era causes its easier to fulfill humans needs in communicating. This is also marked by higher competition in the telecommunication industry, especially the prepaid cellular which is considered very practical in use. <br /> <br /> Among 10.7 millions of cellular phone customers in Indonesia, which is recorded in 2002, 98% of which are GSM system users and the rest area customers/users of cellular phone with AMPS, CDMA, GSM Satellite, and of other kinds of technology. But the presence of Code Division Multiple Access (CDMA) clearly contributes much in enervating the telecommunication business in the country. After being rushed and hustled by competition among Global System for Mobile Communication (GSM) operators, now high competition is also in the CDMA segment. <br /> <br /> Many changes happening very quickly in the business of cellular phone services provider demand companies which wants to survive and win the competition to sell products which fit consumers needs. Those companies should know what the consumer expects and how far they have been able to satisfy them. In order to serve them more focusedly, well done and correct market segmentation analyses should be done. Companies which become our research objects in this research are GSM cellular phone operators Simpati, Mentari, XL Bebas and CDMA cellular phone operator Telkom Flexi. The choice is based on the size of their market size in the telecommunication industry in Indonesia. <br /> <br /> The research objectives are to find out prepaid communication services attributes, the degree of importance and consumers satisfaction of prepaid cellular communication services and its gap, customers preference (valuation) toward GSM and CDMA based prepaid cellular communication services, and to find out their segmentation. <br /> <br /> In this research the method used to find out respondents satisfaction level is gap analysis, hierarchical method of clustering is used to find out the cellular phone service providers positions in the competition, and to find out the market segmentation, K-Means method of partitioning is used beside Q-type factor analysis used with Principal Component Analysis. <br /> <br /> The research, which is done in Bandung with questionnaires of valuation as the tool filled by 280 respondents, shows that: <br /> <br /> Simpati cellular phone operator has users expectation fulfillment level higher than the others, and is more competitive. Based on the technology used, GSM cellular operators are considered to have users expectation fulfillment level higher than the CDMA cellular operator. <br /> <br /> Grouping based on operators positions with average linkage, either within and between groups method of hierarchical clustering, is not significant. <br /> <br /> Demographic variables of segmentation which are significant in 3 segment market segmentations based on demographic characteristics, produced by clustering are user, age, education, occupation, income, expenditures (for prepaid telecommunication services), and the purpose of expenditures. <br /> <br /> Demographic variables of segmentation which are significant in 8 segment market segmentations, resulted from analysis using Principal Component Analysis are the purpose of expenditures and cellular operator to be chosen.