Mobile Phone Markets In Malaysia Marketing Essay

Chapter 1


In this chapter, Information related with nomadic phone industry, planetary prospective, users and trade names. And the finding of job statement with variable, intent of the research will be stated in the debut.

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1.1 Global prospective

Now planetary Mobile phone use will exceed 3.25 billion, it equivalent to around half the universe ‘s population, during twelvemonth 2007 as nomadic phone demand roars in China, India and Africa, consequence based on a study. From Chinese mill workers to African husbandmans, in July, nomadic phone subscriptions will go through the 3 billion grade and by the terminal of the twelvemonth will transcend 3.25 billion, harmonizing to a study by UK-based telecoms analysis company. The nomadic phone has revolutionized communicating along with the Internet. The nomadic phone has spread from metropolis ace childs to Brazilian slum inhabitants. Every minute, there is more than 1,000 new clients are efficaciously subscribing up for nomadic phones around the universe, the study showed. Analysts have forecast that as makers, entire 65 per centum of all French telephones made this twelvemonth will be sold in emerging markets, such as Nokia of Finland and Motorola of the United States, force out low-priced phones and nomadic phone operators cut call charges. The figures cited in the study take history of multiple nomadic subscriptions by clients. With 666 million nomadic connexions, incursion in Europe has topped 100 per centum of the population. 135 million new clients signed up to mobile phone webs and record 240 million French telephones were sold in the one-fourth to the terminal of March, the study said. In footings of connexions, when 142 million and 163 million signed up severally, are the last one-fourth was the 3rd strongest in the industry ‘s history after the 4th quarters of 2004 and 2006. ( Ridley, 2007, London Reuters )

Source – Kirstin Ridley ( 2007 ) , London. Reuters 27th June 2007.

Mobile phone markets in Malaya

This is the study consequence of nomadic phone users came from the Malayan Communications and Multimedia Commission ( SKMM ) ( 2007 ) . It is comparatively related with the buying of the nomadic phone based on the measure of users.

Percentage distribution of manus phone users by nationality

Table 1














The study found that 90.3 per centum of manus phone users are Malaysians while

9.7 per centum of manus phone users are non – Malaysians in twelvemonth 2007. The figure showed in table 1, that there is an increasing of ingestion of nomadic use among alien. More and more aliens user entered into nomadic phone industry. It is believed that the figure of non-Malaysian user had addition more than 10 per centum in the current clip.

Percentage distribution of manus phone users by gender

Table 2














Survey consequences show in table 2 that males contribute to 56.4 per centum of the entire manus phone endorsers while females contribute 43.6 per centum. The figure for male is somewhat lower compared to the old ages 2006 and 2005. On the contrary, the figure for females has shown an addition in per centum compared to 2006 and 2005. The Malayan population is made up of 51 per centum male and 49 per centum female. The tabular array 2 show that male user is more than adult female, this can concluded that male consumer are more than female, but finally possibility due to concern operation normally is work forces, the male users are more than female.

Percentage distribution of manus phone users by ethnicity

Table 3


















Bumiputera/Orang Asli








In the tabular array 3 showed that among Malayan users, Malays continue to be the largest group of users accounting for 61.1 per centum followed by Chinese at 25.8 per centum. Indians, Bumiputra Sabah & A ; Sarawak and Orang Asli history for 6.6 per centum and 5.8 per centum severally. The staying 0.7 per centum are other cultural groups. Malay stand on the highest rate of all, while other race such as exile who decided for good resident in Malaysia, they are the lowest group rate. Possibly the population factor influence the consequence as the biggest ethic group in Malaysia population is Malay.

Percentage distribution of manus phone users by province

Table 4






















Negeri Sembilan




























North borneo








F.T. Kuala Lumpur




Selangor continues as the province with the highest figure of manus phone users at 22.1 per centum followed by Johor ( 13.5 per centum ) , Federal Territory of Kuala Lumpur ( 8.6 per centum ) and Perak ( 7.8 per centum ) . Among other provinces, Sabah ( including Federal Territory of Labuan ) , Penang, Kedah, and Sarawak have between 6 and 7 per centum of manus phone users, while Pahang, Kelantan, Negeri Sembilan, Terengganu and Melaka have between 4 and 5 per centum users. Perlis has the smallest figure of users with merely 0.8 per centum. Obviously Selangor province is the highest rate of nomadic phone user. This is typically because of Selangor is the most develop province with the highest population in the state. We can reason that Selangor had the highest potency of consumerism of nomadic phone. Meanwhile, Kuala Lumpur, the capital metropolis of Malaysia, although it is little than some province such as Perak or Johor, consumer are high. Last, Perlis are the lowest among all due to the little province in the state. Besides Selangor base for the highest rate, other province holding norm of nomadic phone user every bit good.

The growing rate of nomadic phone use in Malaya

Based on the research, it is truth that Malaysia is the first state in Southeast Asia to hold a cellular web. The nomadic phone was considered a epicurean point when it was foremost introduced to Malaysia several old ages ago. Presently, the Mobile phone which is now considered a really common topic has made manner into our day-to-day lives. Astoundingly, the growing of nomadic phone use and nomadic webs has been so strong that it even weathered the economic crisis roar during 1997. In South East Asia, cellular Mobile endorsers grew at an norm of 63 % a twelvemonth between the old ages 1991 to 1997. During the 1997 fiscal crisis, the figure of endorsers continued to turn, though at a lower rate of 45 % a twelvemonth. The growing rate increased aggressively in the twelvemonth 2000 to 75 % , the highest addition since 1995. To understand the grounds for the growing of nomadic phones in Malaysia, a survey based on scientific discipline and engineering ( S & A ; T ) development in the nomadic phone industry was carried out by research worker from University of Malaya, Malaysia. The nomadic phone usage growing rate is defined as the per centum addition in the figure of nomadic phone endorsers over a twelvemonth. This research investigates the growing rate from 1990 to 2001. For the intent of the survey, a system called the Mobile Phone Usage Growth Rate Indicator ( MPID ) was developed to calculate the growing rate. This system would profit the nomadic phone industry, particularly in concern decision-making. The growing rate of the nomadic phone use is dependent on several factors, such as promotion in S & A ; T refering to the merchandise, authorities policies, cost and others. This survey focuses merely on the promotion in S & A ; T. Information on promotions in S & A ; T in the nomadic telecommunication industry for the past 12 old ages was used to develop the system to calculate the growing rate of nomadic phone use.

The analysis of the buying penchants was used to set up the relationship between the growing of nomadic phone use and nomadic phone characteristics. To analyse the tendency for each characteristic, the figure of respondents who chose a specific characteristic was plotted for the old ages 1990 to 2001. A best-fit tendency line was so generated for each characteristic utilizing SPSS for Windows ( version 11.0 ) . From the analysis ( Table 1 ) , handiness was the chief standard for buying nomadic phones for the survey period, 1990 to 1995. From 1996-2001, the chief standard for buying was the wireless solution

Table 5 Buying standards of Mobile phone based on biennial period


Main Preference

Second Preference











Wireless Solution



Wireless Solution



Wireless Solution

Physical Properties

Scource – Koh & A ; Ow ( 2003 ) . Growth Rate of Mobile Phone Usage in Malaysia. ( 2003 ) Universiti Putra Malaysia Press, Serdang, Selangor, Malaysia.

Brand of nomadic phone is a factor will do consumer determination devising

In Russian nomadic phone markets, at the terminal of 2004, Siemens, Motorola, Nokia and Samsung held the top four places in the Russian Mobile phone market ( Shlykova, 2004 ) . Competition among the market leaders is really acute. Although each company ‘s merchandises have their ain advantages and disadvantages, the monetary value differences between them are negligible ( Murtazin, 2004 ) . In this sort of a competitory scene it is important to utilize all beginnings of competitory advantage available, including design. There are of class different nomadic phone categories holding different maps, but phones from the same monetary value section, as a regulation, represent similar functionality. As one Russian interior decorator working with nomadic phones put it, “ we are turning into the watch-makers of today: functionally phones are really similar. Therefore, people choose based on the trade name, biotechnologies and design ” ( Murtazin, 2004 ) .

Importance of survey

In a pupil position, they will understand more about the potency of country-of-origin trade name impacting the purchase purpose of consumer. Furthermore, it will assist them on placing the consumer buying behaviour. However, they will gained specific cognition related with the trade name civilization of nomadic phone industry, such as company or organisation of nomadic phone will happen out the consumer behave towards trade name civilization and background. More surveies on purchase purpose will be gained particularly the cognition about it on their head.

In a cooperate company position, particularly nomadic phone company, they will derive much more clear head towards purchase purpose signifier by consumer, in the same clip, they could better their selling schemes based on the determination. Unfortunately, they will resuscitate back the failings of the selling scheme implemented by the company on capturing consumer buying behaviour. Finally, they could set the surveies and range of way of future way of their company towards the tendency followed by the buying behaviour of consumer.

In a consumer position, they will recognize that their buying purpose came from several factors that they will non even think about it. Possibly they did non even cognize it is the factor caused them to hold purchase purpose. After their realisation, they could larn and pull off to command their unwanted cost of buying of nomadic phone, besides phones, they could implement the same construct into other classs of merchandises.

In a little concern proprietor position, particularly those who involved with nomadic phone, they could easy capture consumer purchase purpose toward nomadic phone. Second, they manage to pass on good with their provider more on the tendency of buying purpose in the hereafter, as the cognition of purchase purpose learned by them.

Problem Statement

Many different types of merchandises and services being introduced in the market, but there is a important relation between country-of-origin and purchase purpose of merchandise. Consumer ‘s purchase purpose of Malaysian is influences by the trade name and where does it originally come from ( Yasin, Nasser & A ; Osman, 2007 ) . The tendencies of nomadic phone industry in Malaysia had extremely changed, from the perceptual experience of consumer that was a luxury merchandise bend into trade good merchandise, and it is truly common to hold nomadic phone among us even that individual is merely adolescent age. So specifically, there are many different type of nomadic phone, including trade name, theoretical account, property offered, etc are competitively focus by the concern in nomadic phone industry. It is a possibility of the country-of-origin will impact the consumer purchase purpose.

Based on surveies by a research worker ( Francis Piron, 2000 ) , there is an bing research stating an issues that related purchase purpose impacting from state of beginning, the writer claim that when consumer determination on buying merchandise, consumer face many of it related to merchandise itself, it ‘s purchase and intended use, as evidenced in the many published research on the subject, sellers and research workers believe and accept that merchandise ‘s COO by and large of import in determination devising, but it is still unsure in nomadic phone industry.

During early twentieth century, based on surveies from research worker Koh & A ; Ow ( 2003 ) , most of the user purchased nomadic phone with purpose of wireless solution and physical property, now the purchase purpose could non be the same any longer, this is another issues that phone buying purpose will non ever be the same, and presently the user buying behaviour. Meanwhile, user study from SKMM ( 2007 ) , the table figure overall increasing twelvemonth by twelvemonth, there is a inquiry, what is the factor will increasing and impact purchase purpose of nomadic phone.

Mobile phones are frequently a medium of self-expression and individualism for the younger coevals ( Ling, 2001 ; Taylor and Harper, 2001 ) . For illustration, Gen Y personalized their phones by downloading alone ring tones, screensavers and message tones. Besides, Gen Y usage nomadic phones as an of import agencies to keep peer dealingss. As nomadic informations services are a chief beginning of income for nomadic bearers, Gen Y is an of import mark market for nomadic bearers. It ‘s another inquiry, is it different trade name offered different type of service or merchandise will impact the purpose of purchasing for Gen Y, excessively many choice of the trade name in the market had finally lead the purchase pick increasing, but which is the trade name that the consumer choose as the best.

Harmonizing to the Handphone User Survey, 2005 by Malayan Communication and Multimedia Commission, 13 per centums of people aged below 20 old ages old owned a nomadic phone. About 80 per centum of people populating in the Malaysia between the ages of 20 and 49 owned or used a nomadic phone. The ownership per centums of people in higher age brackets are somewhat lower. The ownership drops drastically to 8.7 per centum for people 50 old ages old and above. ( Adapted from “ The Use of Mobile Telephones by Aged: A Study in Malaysia Perspectives ” by Md. Nizam, Hassan & A ; Jomhari, 2008 ) , it is besides possible survey from aged related with purchase purpose of nomadic phone because they should non be neglected, it is another issues related with buying on nomadic phone for senior, since different coevals had different characteristic. Such as coevals Matures, they are hardworking, really dependable, high degree of committedness to organisations, meanwhile coevals Y, they want everything rapidly, show regard merely after they are treated with regard. ( University of Illinois Alumni Career Center, Lou Harris & A ; Associates )

Aim of survey

To look into the consumer of Malaysia ‘s purchased purpose of certain merchandise and service does affected by the country-of-origin trade name. It will turn out whether there is relationship of country-of-origin affect purchase purpose in the surveies. From the tabular array 4 that stated in the growing rate of use of nomadic phone in Malaysia, the prognosis tabular array stated it is a truth that the use had increased from twelvemonth 2005 to 2007, although the property in the tabular array were non related with purchase purpose toward nomadic phone, but it does turn out that the nomadic phone use had growing, hence purchase activities increased every bit good. That is why this survey is to prove the interrelatedness of purchase purpose with factor and country-of-origin.

Another aim that wanted to accomplish is the difficult to understand more clearly on the consumer market in Malaysia towards trade name of nomadic phone, many uncertainness of trade name penchant or shopping method used by the consumer. Therefore this survey could make this aim through study.

Organization of Research Project

Firgure 1 – Research Model

Dependent Mugwump

Purchase Intention

Product Attitude

Brand Attitude

Perceived Quality

Emotional Value

Brand Personality



Product attitude, trade name attitude, perceived quality, emotional value, and trade name personality. These are the independent variables of dependant variable purchase purpose. This theoretical account model intent is to place the relationship between purchase purpose with merchandise attitude, trade name attitude, perceived quality, emotional value, trade name personality. Product attitude is the merchandise response of consumer towards the merchandise, trade name attitude is the perceptual experience of trade name among consumers, perceived quality is the mean degree of quality satisfaction received, emotional value is the emotion of the consumer justice on certain merchandise or service, in conclusion, trade name personality is the personality created by the manufacturer.

There is another intent, to seek whether country-of-origin impact or impact the relationship between dependent and independent variables, this show that the independent variable country-of-origin might impact the independent variable of purchase purpose during buying procedure.

1.9.1 Important footings

Purchase purpose

The program made by the consumer to buy the specific merchandises and services in the hereafter is define as purchase purpose. ( Adapt from hypertext transfer protocol: // )


Country-of-origin is the state ( frequently referred to as the place state ) with which a maker ‘s merchandise or trade name is associated ( Saeed, 1994 )

Brand attitude

The importance of overall trade name attitude in consumer perceptual experiences of merchandise properties has been widely reported in the consumer behaviour literature. Han and Terpstra, ( 1988 ) observed that trade name name affected consumer ratings of the quality.

Product attitude

Product attitude is by and large defined as a sensitivity to react to a peculiar merchandise in a favourable or unfavorable mode ( Kim, 1995 ) .

Perceived quality

One of the ways consumers form perceptual experiences about a trade name is based upon quality ( Doyle, 2001 ) . In Malaysia, several different civilization occur in perceptual experience of quality because of differ ethnicity.

Emotional value

Certain merchandises and trade names provide non-utilitarian experiences that generate distinguishable emotional value for consumers ( Holbrook, 1986 ) . Emotional value is defined as the benefit derived from the feeling or affectional provinces that a merchandise generates ( Sweeney and Soutar, 2001 ) .

Brand personality

Brand personality refers to the human features associated with a specific trade name ( Aaker, 1997 ) . It is typically regarded as an of import promotional tool to develop an overall image appealing to targeted audiences ( Gwinner and Eaton, 1999 )

1.10 Organization of Research Project

Chapter 1 – Introduction

Basically will happen article and hunt information through line, if there is a deficiency of resources, decidedly will seek aid from supervisor, and friends. Library could be a really great resource Centre for the assemblage of information. But will seek to happen the informations from any channel that could execute in the surveies.

Chapter 2 – Literature Reappraisal

Adapt and citation from the article largely from Emerald ( ) , because the site which is Emerald supply complete and orderly diary, while it had supported by our MMU digital library. Read as many articles and diaries as possible, Mostly will beginning from the cyberspace, print out in difficult transcript manner, high spot will be an easy occupation for me to noted down the commendation.

Chapter 3 – Methodology

Build hypothesis before create study questionnaire. It is because the premise will be the initial thought to make standard questionnaire, through counsel of supervisor to guarantee the questionnaire is truly effectual and qualified to administer to the consumer. Sampling will be the user of Mobile phone since my subject is related with nomadic phone trade name and purchase purpose of the merchandise lines. Besides, go oning the surveies by collect the information from secondary informations such as diary as mention. Data aggregation will be in the study questionnaire manner, and concentrating on different demographical consumer.

Chapter 4 – Consequence and Discussions

Compute consequences from the study questionnaire by utilizing necessary measurement tools, such as ANOVA tabular array, or SPSS package.

Chapter 5 – Decision and recommendation

Depends on the consequence, if the find is wholly different from the hypothesis had been made, decision will be contra from the hypothesis. Recommendation will be based on the failings and negative range occurs from the consequence.

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