The Impact of Mobile Telecommunication Companies Price War on Consumer Purchasing Behaviour in Ghana

Abstract

Abstract:The mobile telecommunication industry in Ghana is undergoing transformation accompanied by rapid technological changes. This has resulted in keen competition within the telecom industry with pricing strategies being the main tool used by companies involved. This study is therefore aimed at determining the impact of telecommunications companies' price war on con sumer purchasing behaviour. Quantitative method was adopted for this study and questionnaire items were designed for data collection. A total of 200 respondents were selected randomly for the study from six tertiary institutions in Kumasi Metropolitan area in Ghana. Out of the two hundred (200) questionnaires which were administered, one hundred and seventy eight of the respondents completed and returned them. Descriptive statistics was used to illustrate the importance and scope of price war phenomena in Ghana mobile telecom industry. There was clear evidence that the price war that has been raging among mobile companies operating in Ghana has impact on the consumer. To the consumer in Ghana, price change is an important driver for the choice of mobile network service provider and that low prices turn out to be the major consumer decision criterion in selecting the provider. The implication of this finding is discussed.