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Research on customers’ motivation of using 4G service

(VLR) The telecommunication syste has played the role of a main sector of the economy. However, activity result in recent years showed the infrastructure and traditional telecommunication market have been saturated and shifted to digital infrastructure and digital service. To catch up with the market’s major trend, telecommunication enterprises should boost up providing digital services.

According to the General Statistics Office of Vietnam, until April 1st, 2019 Vietnam has a population of 96,208,984. According to the Whitebook of Technology and Communication 2019, the number of mobile subscriber was 130,385,371, among which 75,369,742 subcribers used phone and texting only, 55,015,629 subcribers used data; the number of mobile subcribers/100 people was 136.74%. Therefore, it is difficult for enterprises increasing their profits by increasing the usage of each subscriber and fierce competitions from Over the Top (OTT) services decreased strongly the use of phone and texting. Telecommunication enterprises should use 4G service to increase their profits.

Analyzing customers’ motive for using 4G service will be the basis for setting up marketing policies for telecommunication enterprises to increase their profits from 4G service. The data result from a survey was processed to find customers’ feelings on quality and values of 4G service and influence from their motive to the use of 4G service as well.

Data analysis from 542 people survey showed 460 of them are using 4G and 82 people have not used it yet. The age of people survey is around 14-22 years old, accounting for 37%, young people tend to used 4G service more. People at school takes the highest portion 33.8% and male people use it more. The number of male using 4G is 16 people more than the number of female using 4G. The ratio can be considered 1:1.

Survey result on a group of customers using 4G service

Survey conducted on 460 customers’ motive for using 4G service showed:

» Young people and people at school are likely to use it more. Sex and income affect the use of 4G, but the income factor affect more because based on their income, customers will decide which service satisfies their needs and meets other conditions.

» One of the choice for using 4G is the factor “can be used anywhere” and can be used at any time.

» The use of 4G package with monthly promotion is more than the use of other packages, daily package registration is a customers’ second choice: daily registration is suitable for customers’ changing requirements. Capacity for daily registration is higher, however, its fee will be more than that of montly package registration.

» Thanks to developments of technology, there are more mobile devices. In addition, people’s income and daily life is better. The buying and use of 4G devices become more popular.

» There are assistance from providers about matters with 4G services; there are also encouraging policies for customers using 4G services and there are also simple registration procedure that facilitate customers to use the service. Most of customers considered 4G service fee is expensive. Therefore, there is suitable fee policy. And together with cheaper fee is relatively good service and there are also promotion policies, offering cheaper fee at various particular time to make customers feel they are using suitable and cheap service.

Illustration 1. Level of Interest in 4G service

Illustration 1. Level of Interest in 4G service

Survey result on a group of customers not using 4G service

There are many people not using 4G service for they like using Wifi instead. But when they are outside, 4G is considered the best choice when they need to search information. With the question: “Do you have intention to use 4G service in the coming time?” 30 people said no, however, the number of people said they would is higher.

When doing survey on future need, the author gave the question: “How much do you want to use 4G service?” The number of people who really want to use the service was 14.6% and the number of people who want to use the service was 39%. It is obvious that the potential of 4G market is creat and there should be suitable policy to encourage them.

Illustration 2: Reasons for not using 4G service

Illustration 2: Reasons for not using 4G service

When they are asked about “reason for not using 4G service”, most of the answer that it was “due to the use of Wifi” took 51.2%.

The group of customers not using 4G service – although they want to use better service but for a number of reasons: they are in shortage of information about the service, they have problems with changing SIM card, they find no difference between 3G service and 4G service. Therefore, to encourage the use of the service, telecommunication enterprises should diversify ways of providing information, have assistance for customers in changing 4G simcards and apply promotion programs so thay they can try 4G high-speed service.

The research of customers’ motive for using 4G service is to set up marketing policies to encourage customers’ motive in the condition the mobile market is saturated. With the group of customers not using the services, telecommunication enterprises should have measurements to encourage their motive of buying, direct them to particular services to make them like it. With the group of customers using the service, enterprises should have better price policy and customer care works to make them increase the use of the 4G service.

Nguyễn Thị Nhật Linh

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