The effects of promotional activities on brand decision in the cellular telephone industry

Abstract

Branding is important to manufacturers, retailers and consumers. Brands with higher brand equity have higher sales. The growth of mobile phone subscriptions is considerably faster in the Philippines. Advertising and promotion are undertaken through cooperation between the service providers and mobile phone manufacturers. The study tries to find out the effects of the different activities on consumer choice of mobile phone brands. A total of 800 respondents participated in the survey. Results of the stepwise regression analysis indicate the initial effect of advertisements of service providers is felt during the third iteration but moved during the next iteration phase. The consumers relate information about the service provider with a combination of brand concept and unit usage flexibility. The relationship of variable to choice is significant with only price upward difference with current model showing an inverse relationship and the brand concept commanding the highest positive contribution.