Telecommunication sector

Chapter 2 Literature review:


The previous chapter introduced the research problem and objectives of this research regarding the boom of telecom sector in Pakistan and the analysis of mobile consumer's behavior. The aim of this chapter to offer a review of the literature concerning Telecommunication sector and consumer behavior, to provide foundation for testing a theoretical framework developed from existing marketing and consumer behavior knowledge. The background theories of consumer behavior, consumer decision making process and also influencing factor on consumer behavior will be discuss in literature review.

However, prior to the discussion of academic theories, literature regarding telecommunication industry and its background will be reviewed to provide insight knowledge regarding the telecom industry in order to generate appropriate research hypothesis as well as guiding for survey design.


Britannica concise Encyclopedia explains Telecommunication as " Communication between parties at distance from one another" A modern Telecommunication system are capable of transmitting telephone, Fax, Data, radio or television signals- can also transmit large volume of information at longest distance calls. In many ways it's been described as the transmission of data (digital and Analog) from one place to another. Due to technological development it has been evolved and now a lot of things come under the head of telecommunication and many other applications rely on this communication technology i.e. Internet Data processing, Fax voice mail box, video conferencing etc.

Telecommunication is one of the fastest growing industries around the world with an exponential growth rate in Pakistan. Wajcman (2008) explain that information and communication technologies are speeding up the daily lives. Telecom is considered to be one of the world's most dynamic economic sectors and it faces relentless technological and market forces (Wellenius & Stern 1996). Prior to the development into the telecom sector, this sector associated with engineers but now many large and small businesses, banking industry, user groups, policy makers, legislators, economist, politician scientists, development organizations, lawyers and many others are actively engaged in this sector.

Bautsch et al. (2001) reported that cell phones have a several influence on over society. This could include convenience to communicate, increased connectivity and affordability of mobiles etc. however many other communication facilities comes under the head of telecommunication like, fixed land line, internet broadband, calling cards and cellular service. The main focus of the study will be cellular (mobile) sector.

Cell phones are becoming a basic necessity of life according to international telecommunication union estimates, world wide mobile cellular subscription will reach approximately 4.1 billion by end of 2008. Mobile has effectively gained importance in communication technology and significantly adding value into economic development of many countries.

Bautsch et. al. (2001) stated that cell phones have a multiple influences on our society. This includes the daily interaction/ communication of people, access to anyone anywhere, convenience of usage and improved connectivity and affordability of technology. According to Aoki and Downes (2003), cell phones were originally designed for business perspective and adult users but now situation is opposite. Srivastava (2005) argued that growth of cell phone technology is very impressive about the fact that in year 2002 the total number of cell phone users all over the world exceeded the total number of fixed landline users. Similarly Koopmaa (2000), Katz (2003) and Cooper et al. (2004) suggested that the growing usage of cell phones may influence our social and geographical aspects of people, especially young ones. Growth of cell phone will also provide many solutions and facilities to libraries and education systems.

In a press release of Garntner (2005) reported that if the current penetration rate of cellular mobile technology which is about 779 million cell phones every year, will continue then by the end of year 2009 the total mobile phones sales per year would reach up to 1 billion cell phones. Moreover, Motorola (2006) reported that in the year 2006 round about 31 percent of people were using mobile technologies. This growth of cellular phones and technology is quite impressive and is a clear evidence of stated literature. Geser (2006) also believed that the diffusion rate of mobile cell phones is much greater than any other technical gadget; this also includes internet and computer.

Masooud and Gupta (2004) explained the importance of mobile commerce as an important stream of revenues for many telecom organizations and further more they are enjoying much stable position as compare to other industries. However a Rapid technological advancement in an industry brings a lot of challenges for organizations. Therefore, it requires continues customer patronage which can be achieved through understanding or analyzing consumer behavior of the industry.

Recent Researches in Telecom industry

In recent era of telecom many researches taken place in this sector. Gaynor et al. (2005) used a structural model to analyze the demand and learning behavior of cell phone consumers market. They divided mobile phone consumption in to high- value part and low value part and considered that consumers were uncertain about their needs regarding low value and high value part. They argue that consumer knowledge improves over a time frame and consumers can make better decisions regarding products and services. They researched on learning behavior of consumers how consumers behave with the passage of time.

Similarly Ridenour and Fuch (1997) done the empirical research associated with risks of cellular phone usage still unaddressed. Burgass (2004) also has done researched on cellular phones, public fears and cultural precautions in American journal of sociology. Lorente (2002) analyzed the diffusion velocity of mobile phone usage and he realized that south East Asia and Europe had a larger share in this process as compare to US. The role of mobile phone in family communication is researched by the Devitte and Roker (2006). In which they have thrown light on many social aspects of mobile usage in relation to family consumption of cell phone and their views regarding mobile communication.

Kwon and Chidambaram (2000) suggested that social norms and culture of people influences on consumption pattern of cell phone usage among adults. Richard Ling a senior researcher at Telenor (R&D) Norway, done a lot of research on understanding the sociology of cellular phone usage. He argued that diffusion rate of cell phone usage among Norwegian teens, girls and boys in early years were almost equal yet it increased in boys as they grew older. Ling (2001) further includes that about 90% of young male has cell phone ownership where it is about 70% in case of young women. He also reported the positive correlation in male age and trend of making phone calls. In another research Eldridge and Grinter (2001) reported that the average number of text messages sent by boys average 2.3% whereas girls sent 3.3% on average. Text messages are very famous among young teen agers because of its low cost, convenience and prompt replies. Mostly these messages used to adjust meetings and short replies for long conversations which already took place between these peoples. Countries like United state and United Kingdom and many developing nation's people prefer text messages as compare to costly calls. In Pakistan many cellular service providers are giving special packages for texts and calls according to the special needs of local people.

State of Telecom Industry in Pakistan:

Pakistan is on of the fastest and largest growing cellular market of the world with current market position of fourth (Pakistan Telecommunication Authority 2008). The present growth is influenced by the many effecting forces and de-regulation of govt. policies. This growth is also due to various favorable influences including maximum coverage, cheap tariff plans, deregulated environment. PTA (2008) reported that the percentage of Teledensity has been improved and reached up to 55.6% out of 52.4% is only for cellular subscription. The current growth trends of the industry envisaged that industry will attract two to three million cell phone services subscribers each month. These growth indicators have forced cellular service providers to improve services and increase network coverage in remote areas of Pakistan to cover 90% of population. Compete description of Pakistan telecom industry is available in section "Boom of Pakistan Telecommunication"

Consumer behavior

Welcome to the fascinating field of consumer behavior (Loudon & Bitta 1979). Behavioral studies have vital importance in marketing managers and others who are professionally concerned with buying activities. Not all behavioral science concepts relate with marketing management but considerable interest has been expressed in behavioral science studies, especially psychology and sociology to understand consumers. Consumer psychological backgrounds have been studied to find out what factors effect buying behavior like, attitude, motives and personality, status and family and culture. Foxall (1980) stated that knowledge about the consumer in competitive economic system is very important for the survival and growth of company. Firms should aware of consumers in a sense: how they buy, why they buy and where they buy as well as just what they buy.

According to Kotler et al. (2002, p. 189): 'Consumer buying behavior refers to the buying behavior of final consumers- individuals and households that buy goods and services for personal consumption', and 'all of these consumers combined make up consumer market'.

Loudon et al. (1979) define consumer behavior as "The decision process and physical activity individuals engage in when evaluating, acquiring, and using economic goods and services"

Another author Moutinho (2007) refers consumer behavior as "The process of acquiring and organizing information in the direction of a purchase decision and using and evaluating products and services".

This process includes the various stages of searching, purchasing, using, evaluating and disposing of products and services. One author defined consumer behavior is "the way people act in the exchange process"

Williams (1982) explained in his book that consumer behavior are the behavior that consumer display in searching for, purchasing, using and evaluating products, services and ideas which they expect will satisfy their needs. Essentially all these definitions say that consumer behavior involves a complete process by which people acquire and use various products and services which they think satisfies their need.

Consumer behavior is dynamically changing and evolving, many statements about consumer behavior become irrelevant due to changes in thoughts and social conditions (Blythe, 1997). Researchers want to explore more in depth of behaviors like what consumer think (cognition), what they feel (affect), what they do (behavior) and what things and places that influence and also these things influenced by others. Now a day the understanding of all these topics is essential in making good business strategy.

In a general sense consumer behavior plays a significance role in our routine life. Much of the time directly spent into market place shopping or engaging in other activities. Mostly a large amount of time spent on thinking about the product features, talking to friends about them, seeing advertisements, news, and billboards about all interested products. In the end the goods we purchase and the way in which we use them significantly influence on our daily life style.

As mentioned by Blythe (1997) we should know what things influence on behavior. However understanding of consumer behavior and customer orientation is vital for every firm but it's not an easy task because of its vastness. The main problems are every one is different from one another and consumers often act emotionally rather then rationally and they all act differently at different times and often respond differently. So the understanding of the consumer decision process and all other influencing factors including social and individual factors in consumer choice is vital.

Consumer Buying Process:

The consumer buying decision process, also known as consumer decision theory was actually based upon the integrated models of consumer decision making introduced by Nicosia (1966), Engel et al. (1968) and Howard and Sheth (1969). Consumer decision making models are still the basis of marketing text despite its increasing complexity. Foxall (1980) states consumer buying process into four distinct stages figure: 1

He explains, consumption is a process which starts before the actual product purchased and it extends well beyond it. Many writers argue that first stage in this buying process is that of growing consciousness of a need, potential customer realized about his wants and this could be fulfilled by marketing system by providing required and innovative products to satisfy customer needs. This process included a lot of other options some time consumer may aware of its need and he may directly purchase product or in some case lack of money, or conflicts of interest may lead to another activity.

Kotler (1972) and Kotler, et al. (2002) represented another simplest consumer decision model: the "Black Box". This model is essentially a stimulus response model based on early communication research an exogenous variables, black box model avoided any supposition related with finding processes and variable in the mind of consumer (Lye, Shao, Sharyn and Fausnaugh 2005). However Schramm (1971) argued that the content in the communication process of black box are vaguely understood without a empirical support because behavior is a subjective term.

As we know consumer decision process contain five simple steps (figure:1) which suggested as a response to problem faced by consumer (Solomon, 1991), and in most cases consumer has more than one choices in a market place which requires evaluation (Schiffman, and Kanuk, 1978). During this evaluation process, information will be collected from various sources to make purchase decision and consumer take also further actions according to his level of satisfaction of post purchase decision evaluation. During this process a lot of influencing factor plays role in buying process.

Sprolls and Kendall (1986) identified some characteristics of eight decision making styles which are stated in a Table: 1 below.

However it is worthwhile to figure out consumer decision process stages, in low involvement purchases, consumer may skip or reserve some stages (Kotler, 1994). For example in low involvement purchase conditions, consumer decision stages can be learn according to environment such as store promotions or extrinsic factor such as style of cell phones, mobile features or exotic outlook of cell phone.

It clearly means that the main decision process happen at the point of purchase, at that point consumer recognize his need and evaluate the product and then make final purchase decision, Still at the time of purchase point many influencing factor plays role in consumers buying decision.

Factor influencing consumer buying behavior:

The buying behavior of customer is very complex and it's influenced by the many factors, and some time these factors conflicts with so called rational behavior of customers. There are so many influencing factors both at macro and micro level influences on the consumer buying behaviors. Chisnall (1995) states the influencing factor on consumer behavior are the interactions of groups and personal behavior, challenges of authority and status, subtle effects of culture on consumption etc. Many authors identified social and individual factors affecting on consumer choice or decision making. Foxall (1980) also provided influencing factors on consumer behavior and decision makings, two major influencers are Social Structure and individual influencers which influence on consumer decision making (see figure: 3). Some author categorize these aspects into two, External Environment (Social structure) and Individual Determinants (Individual Influencers)

Individual/Internal Influences:

Researchers argue that consumer's buying choices are mostly influenced by four major psychological factors: Motivation, perception, learning and attitude/beliefs (Armstrong & Kotler, 2000). Well and Prensky (1996) consider these factors as a tool to recognize their feelings, gather and analyze information, formulate thoughts and take actions. Goodwin (1999) believes these factors are the success of any marketing strategy. All factors comes under internal influencing are important but attitude of consumer is the bridge between consumer background characteristics and consumption that satisfies its needs and influence on his decision making process. Attitude of consumer does not directly help or tells certain behavior of consumer instead it gives an idea that what buyers are likely to do in certain situations. According to Fishbein and Ajzen (1975), cited by Hawkins, Best and Coney (1998):

"Attitude is an enduring organization of motivation, emotional perceptual, and cognitive process with respect to some aspects of our environment"

Attitude describes person's persistent evaluation, feeling and tendencies towards particular objects or idea. It puts people constantly in to various favorable and unfavorable manner with respect to a given object/product. It is how consumer thinks, feels and acts towards some aspects of environment such as retail stores or products. Attitude of people are very difficult to change so the understanding of mobile consumer attitude will help organization in many perspectives like, the adoption rate of cellular products, mobile brands, services and evaluate future growth of mobile phones and also subscription rate.

External Influences

The consumer behavior of several products and services cannot realistically isolate from their societal roles as family, friends, workers, social class and so on. The consumption of goods takes place in a social and cultural environment; social and cultural norms and inhibit personal consumption (Chisnall 1995).

For clear understanding consumption influenced by people's social environment, most importantly Culture and norms of society. The differences in sociologist and social psychologist opinions made this area of study blurred but still all of them at the same consensus that societal aspects and individual aspects of consumer are important to understand for marketers, however all individual factors of consumer are also influenced by societal & cultural aspects/factors. This point gives more importance to social and cultural factors.

The study of environmental elements/factors impinging upon consumer is a lot but the most important and basic enduring factor is culture which has pervasive influence on consumer behavior. Many researches argued upon various influencing factors on grouped consumer behaviors and individual consumer behavior. Duesenberry (1949) argued cited in Loudon et. Al (1979) that all the activities in which people engage are culturally determined, and all the purchases made by consumer make up the life of a culture. Thus the understanding of the culture enables marketers and management people to interpret the response to their marketing strategies.

Assel defines Culture as "A norms, beliefs and customs that are learned from society and lead to common pattern of behavior"

In the center of every culture there is a common set of values which determines what is a socially acceptable behavior. These values formed by social organizations such as families, friends, education and social class.

Many authors have tried to explained this concept in their own ways like Hofstede (2001, p.9) described culture as the 'collective programming of the mind that distinguishes the members of one group or category of people from another'

Similarly Tayeb (2003, p.10) also explained culture as 'historically evolved values, attitudes and meaning that are learned and shared by the members of the community and which influence their material and non-material way of life'

Wild et al (2008, p.50) given a very simple definition of culture stated, culture as a set of values, beliefs, rules, and institutions held by a specific group of people but on the other hand Trompenaars and Hampden- Turner (1997) arguing that culture is not based on the agreed ways of living but also the ways in which society or group attributes meaning to their world. Since the importance of culture raised in multinational organizations now every company looking for those people with cultural sensitivity that can put their selves into another's shoes. Latest management studies and reports cleared that lack of cultural sensitivity can be much costly to TNC's in the sense of money and opportunities (Wild et al 2008, p. 91).

The rise in international business practices resulted in increased importance of understanding of local and international cultural. The previous research in understanding of consumer behavior and marketing practices emphasized the growing importance of understanding of culture (Aaker and Lee, 2001, Deshpande and Parasuraman, 1986, Hofstede, 1991). Similarly, research done by Mattila (2004) showed that culture influences the service expectations of a consumer and consumer perceive products according to their attitudes and behaviors. In simple words better understanding and cultural literacy is the key to success (wild et al, 2008), on the other hand lack of understanding and knowledge about culture and consumer behavior could create barriers for success. All researchers believe in importance of cultural & consumer understanding for making effective marketing strategies.

Pakistani Culture and Consumer Behavior:

Pakistan has been used as entryway to the subcontinent by migrating tribes, traders and invaders. The first arrival was the Aryans, who developed rudiment of religious systems and this system lead to Hinduism. Arab Traders came afterward with their teachings of new Religion, Islam, which gradually became the main religion of this part of Asia. Many Muslim armies established their dynasties like Turks and afghans but the last and the greatest Muslim empire was Mughal (1526 to1856). This era can be remembered in for its political, philosophical and cultural achievements reflected in the artifacts of Pakistan. In the sixteenth century British entered into this area with their own culture after spending centuries of time and ruling they left this place (Khilji 2004).

The precise history of Pakistan shows that its history is very long and multicultural from its early days. The people of Pakistan have a lot of foreign influence. We can say the contemporary culture of Pakistan is amalgam of different cultures: Indian origins, religions, British colonialism and American Influence (Khilji 2004). As we can see every bit of these influences has impacted the Culture of Pakistan. We can't say that it's only based upon one, religion, British colonialism etc. this is a mix of different culture and influencers. Indeed there are many differences within country different ethnic regions basically there are five different ethnic groups in Pakistan namely; Punjabi, Sindhi, Pashtoon, Muhajir and Baloch. All these ethnic groups renowned by their unique style of customs, traditions and languages as well. Mostly languages are the most common distinction in ethnic groups. In Pakistan More then 20 languages are spoken in different parts of the country. There are five major speak able languages, Punjabi, Urdu, Sindhi, Balochi and Pashto. The National (official) language is Urdu and English is used as a medium of communication in education sector.

Pakistan is the sixth most populated country around the world with a current estimated population of Pakistan on August 2009 167 million Almost 70% or population live in Rural area which is major part of population (Population Census Organization 2009). Now a day's rural people are moving to cities and major towns.

The legal work timing in Pakistan is 48 hours per week and minimum monthly wages is 50 US $ to 75 US $ for unskilled labour and maximum monthly salary of executives and mangers ranges from 4000 US $ to 8000 US $ approximately (ILO 2009)

Pakistan is in the way of progress in literacy, currently literacy rate of Pakistan is 54% estimated, out of those 63% are male who can read and write and rest are female. There is a significance difference between genders. However these day's females are motivated and taking more part in improving the literacy rate of Pakistan because women always been a major player in the success of any country.

As the history of Pakistan shows that this peace of land enriched of cultural values and various traditions can be seen in many provinces and cities of Pakistan. Just like every country has its specific cultural believes and practices which normally done by nation people. The Culture of Pakistan is more inclined towards Islamic Cultural values and traditions. The real meaning of Pakistan is the land of pure which implies spiritual purity which based upon the Islamic faith. A lot of differences can be seen in Pakistani culture from the rest of western nations. Here are some of the general Cultural believes which has been followed by Pakistani people for many years.

In Pakistan there is a join family, Kin or Bradari system which means that all relatives and family members live together and this is a practice in Pakistan. Parents live with their children's even if they got married in addition to this if their grand children got married they love to live together no separation till the Death of Father and Mother. In Pakistan people have very strong relationship with their families, relatives and friends. One child of Parents always lives with till death to give them a kind of social security to parents because there is no any kind of old age benefits and social security for old people. Most importantly this practice is backed by Islamic faith to obey and help parents for their whole life.

Pakistani culture is different from western culture, some of practices done in western culture strongly offended by the society. The culture of Pakistan based upon Islamic values, which can be prescribes as sexual conservatism that's why some of the norms Western world seen as Taboo in Islamic Culture i.e.

  • Publically display of affection, even married couple is not seen as good thing. This thing could vary from place to place.
  • Consumption of Alcohol beverages is Haram (Forbidden in Islamic culture) and having in public is illegal in Pakistan. Still there are some Wine stores operated in only few cities for minorities.

The rapid pace of globalization has influence many countries in this world. This brought a lot of changes too many countries it brought different cultural practices to various part of world. Globalization has also increased influence of "Western Culture" on developing countries like Pakistan. This influence can only be seen in only few well off and rich families who can afford this luxurious life. Pakistan is also under the wave of consumerism. There are many Foreign Restaurant chains and five star hotels and a lot of International Brands are available in Major Cities (Posh Areas) of Pakistan. Pakistan is a developing country and it's rapidly moving towards development. A lot of foreign investment entered into Pakistan especially in Communication (Telecom) Sector which brought huge amount of foreign investment. Pakistan is currently ranked 46 on Kearney/FP Globalization index of world. Business conditions in Pakistan are getting better day by day, currently more then 50 Banks are operating and huge manufacturing and services concerns are working and trading. (Pakistan 2009) wikipedia pakistan

Hofsted's Dimensional Model and Pakistani culture

Using Hofstede cultural dimension we will try to figure out where Pakistan fall in this cultural framework and how the people of Pakistan behave in daily routine lives. The understanding of local culture and values are very important for organizations in making marketing strategy.

Power Distance:

In Pakistan, there is an unequal distribution of power and wealth, which causes increase in power distance (Hofstede 1991). This unequal distribution of power and wealth exist in every part of life, from private organization to government organization even in Telecom sector of Pakistan.

PTCL was pioneer in Pakistan telecom industry and before the arrival of cellular services it holds monopoly in the market. All urban areas of Pakistan especially in major cities every one had to have PTCL connection to interact with their love ones because there was not any 2nd choice and very tight policies were made for foreign investments in telecom. As early described mostly population of Pakistan lives in rural areas where PTCL Connection merely available. There were a lot of reasons for PTCL to not being available in rural areas because that time it was difficult for PTCL to spread copper cables allover the country it requires a huge investment which PTCL lacks in that particular time (Mahmood 2005). One another reason was the affordability of connection which was costly for majority of people to afford.

Pakistan is a developing country with a low literacy rate and high poverty ratio which implies the unequal distribution of wealth & power. In this kind of condition where one person strive for one day of food for his family and on the other side affluent class spend luxurious life which directly widened the gap between rich and poor. In response to this condition a poor man will try to use illegal means of getting rich. This injustice and power distance will lead to many problems in society which ultimately lead towards destruction of moral values (Zafar 2006)

In a culture of large power distance people used to live in joint family and love to spend their more time within family and culture with low power distance they prefer to spend more time on organized leisure activities. According to Hofstede dimension Pakistan comes under large power distance which truly means that people spend most of the time with their families.

Individualism Vs Collectivism:

According to Hofstede 1991, Pakistani culture is a collectivism culture because there is a strong family relationship system which means that they not only take care of their parents but also their Grandparents, uncles and aunts. In Pakistan people have very strong relationship with their families they love to spend their leisure time with family members. All family members join together on several occasions like, Two main celebrations EID days and also on several occasions.

In Pakistani culture every decision taken by single person is backed by the suggestions or consent of his family or friends. In every decision making they consult with every single family member which they think to be considered in decision making process. Hence customer social values and reference groups has greater degree of influence in Pakistani societies. The understanding of this behavior could help strategy maker because family member can influence the buying behavior of customer (Kotler et al 2004).

Masculinity vs Femininity:

Hofstede 1991 found that Pakistanis scoring exactly half way to index which means it possesses both masculine and feminine quality of life whereas Pakistan is a Male dominant society, where males' opinions are preferred to females in many part of life. There is a high level of masculinity in Pakistani culture due to growing materialism, economic hardship, and limited career opportunities (Khilji, 2004). In Pakistani culture majority of females are not allowed to do work in offices or any such kind of place where other males could interact. As we know in Pakistan is an Islamic state where Islamic rules are abide by everyone, in Islamic culture women is allowed to work but not allowed to interact with Non-mehram (unknown males). People also don't like the female possession of mobile and male always impose their decision on depended females. This is a point which deserves a further investigation.

Uncertainty Avoidance:

Pakistan is a religious country, where Majority believes in Islamic fundamentals and Muslims are in majority rather then Hindu and Christen (minorities). This strong believe in religion makes Pakistan an uncertainty avoidant culture country. (Hofstede 1991)

In Pakistan religion is above all the things; people have very strong believes on religious values and supernatural forces. Some people in community they started believing on any kind of rumors without any authentication. Pakistan is in top of list in illiteracy rate which makes it easy for people to believe on any rumors easily. Few years ago there were a rumor which totally baseless which threaten mobile users which was" there is deadly virus sent through mobile, if someone answer any special no this virus will transfer to his body and blood will start coming out from his ears, soon after he will die" (Cellular News 2007). This rumor was then resolved by all cellular service providers

These kinds of misconception between the consumers could cause change in behavior and attitude towards products and services which could prevent customer to buy or take particular services.

Short Term Orientation Vs Long Term Orientation:

Pakistan is enriched of culture and very closely attached with their social values and it gives respect to traditions which can be seen in their actions. These traits makes it long term oriented culture (Hofstede 1991) but In Managerial values & practices of Pakistani's considered as short term and achievement orientated such as the use of performance lead by rewards (Khilji 2004)

People of Pakistan has strong emotional attitude towards many things especially religion and personal matters and sometime they get easily emotional on minor issues. Since mobile devices penetrated in Pakistani markets it brought some major issues in local people. For example in Pakistani culture the possession of mobile by any female is considered to be a wrong thing and making or taking photos of any one else also forbidden. Islam also forbids females for any kind of showoff and there are strict guidelines for women veil in Islamic culture. Keeping in mind Islamic culture, if someone tries to captured a photo of any female who is not his or her relative then this act could lead to quarrel.

Telenor Boycott Case:

Telenor is one the growing cellular service provider in Pakistan which entered into Pakistan market in 2003 working as a subsidiary of Telenor Norway. In the year of 2006, Danish newspaper and other western publishers made and published the cartoon of Holy Prophet Muhammad (PBUH). In response to this Pakistani people begun to boycott the all western products including newly established company Telenor. This boycott was so much intense that people in Attock area threw stones at Telenor office and tried to set it on fire but luckily rescued by Police and no one got injured in this incidence. News papers claims that Telenor had substantial loss of customers and profits. At the end issue was resolve by the government and assured by the Telenor management that they don't have any involvement in this caricature incidence in any way; however we have considered it utterly deplorable. (Official spokesmen of Telenor)

This incidence tells us a story of strong cultural ally's, and religious attachment. For some countries local culture and religion is above all social norms in some countries they don't bother on these issues. So It is very important for all multinational companies to learn about local culture and norms or any kind of wrong association against local culture values or believes could hinder the success of business.


This chapter presented the review of the literature regarding telecommunication and its impressive growth in all over the world especially in developing nations like Pakistan. This chapter also discussed the penetration of mobile phone in the world and its influences on social lives of people. Then it described the foundation underlying the theoretical framework related to research objectives (consumer behavior). It also identified some literature gaps in the cellular buying behavior studies in Pakistani context. A brief explanation about the Pakistani culture and its position according Hofstede's model presented to have a clear understanding about Pakistani external environment or influencing factors on buying behavior. In this chapter a framework developed for approaching research problems to achieve the main objective of the research. These are the proposed hypothesis developed as a guide line for data collection and analysis.

  1. To Investigate the boom of telecommunication industry of Pakistan particularly cellular sector & its various impacts
  2. How do psychographic factor effects buying behavior of mobile phone
    • Perception of mobile phone is positively related with mobile brand name
    • Attitude of mobile consumers are negatively related with the usage of mobile phone
    • There is a relationship between Fashion /status symbol and buying behavior
  3. Impact of local culture on buying behavior of mobile phone
    • There is a negative relationship between collectivism and individualism in mobile buying behavior
    • There is a relationship between the masculinity and famine mobile usage and buying behavior
  4. How do Demographic factors effects the buying behavior of mobile phone
    • There is a relationship between education and buying behavior
    • There is a relationship between residential status and buying behavior
    • There is a relationship between personal income and buying behavior

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