Strategic Pricing Program Research Paper For Philippines' Globe Telecom

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The key takeaways are about mobile technology and its impact on customer satisfaction in the telecommunications industry, specifically for Globe postpaid plans and BPO employees.

The purpose of the study is to determine the impact of Globe postpaid plans on the satisfaction of selected BPO employees and to propose a strategic pricing program.

The theoretical framework discussed is customer satisfaction theory.

Department of Marketing Management

COLLEGE OF ARTS AND SCIENCES


San Beda College
Mendiola, Manila

The Impact of Globe Postpaid Plans to Selected BPO Employees' Satisfaction:


Basis for a Proposed Strategic Pricing Program

A Marketing Research Proposal Paper


Submitted to the
Faculty of College of Arts and Sciences
San Beda College

In Partial Fulfillment of the Requirements in


Marketing Research (MKC04) for the Degree in
Bachelor of Science in Business Administration
Major in Marketing Management

Cruz, Francheska Nicole A.


Gabriel, Don Richmond G.
Pinero, Gela Trisha T.

November 2017
Table of Contents

CHAPTER 1
INTRODUCTION
Background of the Study 04
Problem Statement 09
Theoretical Framework 11
Conceptual Framework 14
Research Objectives 15
Hypotheses 17
Significance of the Study 17
Scope and Limitation 18
Definition of Terms 20

CHAPTER 2
LITERATURE REVIEW
Demographic Profile of BPO Employees 23
Customer Satisfaction in Telecom Industry 24
Customer Satisfaction 25
Strategic Pricing 28
Synthesis of the Study 30

CHAPTER 3
METHODOLOGY
Research Design 32
Sampling Design 33
Data Collection Method 34
Development of the Research Instrument 35
Statistical Treatment of Data 35

CHAPTER 4
RESULTS AND DISCUSSION
Specific Research Objective 1 42
Specific Research Objective 2 43
Specific Research Objective 3 44
Specific Research Objective 4 46
Hypothesis 1 47
Hypothesis 2 53

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CHAPTER 5
CONCLUSION AND RECOMMENDATION
Conclusion 58
Recommendations 60

REFERENCES 73

APPENDIX
Questionnaire 76
Face and Content Validity 79
Literature Review Matrix 80
Statistical Treatment of Data Matrix 89
Letter for Permission 92
About the Authors 93
List of Figures and Tables 94
Consultation Form 116

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Chapter 1

Introduction

This chapter focuses mainly on the discussion of the background of the study,

problem statement, theoretical and conceptual frameworks, research objectives, the

significance of the study, scope and limitation of the study, and the definition of terms. It

aims to provide a synopsis of information and insights that are essential in providing

readers credible and necessary knowledge regarding the topic.

Background of the Study

People are already living in an era wherein the amount of information published is

rapidly increasing, and the data they need is highly accessible (Rajpurohit & Vasita,

2011). Today, one can barely live without a mobile phone for it is considered to be an

essential for individuals and organizations when it comes to communicating or connecting

with other people and businesses (Israel, Emmanuel, & Rita, 2016). According to the

Telecoms Infrastructure, Operators, Regulations - Statistics and Analyses (2017), despite

having observed substantial differences regarding investment and business activity since

deregulation in the Philippines' telecom sector, its capability to further develop in the

future has not been completely recognized by the market. Even with the market's frequent

discovery of a different direction to take, the sector has undeniably been very active.

The emergence of mobile technology in today's market has made businesses,

specifically service providers, tremendously competitive, causing them to be more

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aggressive regarding attracting potential users using promotions and services that are

relevant and enticing (as cited in Olatokun & Nwonne, 2012, p. 20). Service providers

are not only challenged to meet and hopefully exceed the expectations of consumers but

also capture the high market share in a competitive market. They are also expected to

compete and deliver satisfaction regarding price and the quality of services (as cited in

Paulrajan & Rajkumar, 2011, p. 40). The current competition in the telecommunications

industry is extremely high because of the various types of subscription plans and services

set at different rates and payment options offered to consumers. Depending on their

preferences and needs, subscribers can avail prepaid or postpaid connection.

According to Kotler and Armstrong (2012), Marketing Mix, consisting of 4 P's -

product, price, place, and promotion, is the set of tools strategically used in marketing

that a company blends to generate the results it aims to receive from its target market. In

the context of this study, the researchers will give light on one of the Ps in the Marketing

Mix. Price applies the amount a customer pays for a product or the sum of the values that

consumers exchange for the benefits of having or using a product or service (as cited in

Faith & Edwin, 2014, p. 88). Proving that it is just as important as the three other P's,

product, place, and promotion, of the Marketing Mix, pricing is believed to be one of the

most vital determinants of sales. However, aside from the actual price, the manner of

presentation also shapes how consumers evaluate a particular product or service offering

(Manchanda, Suri, & Kohli, 2014).

Aside from an offering's price, customers tend to focus on the benefits, the quality

of service, and the value they will receive when availing or purchasing a particular product

or service to attain customer satisfaction. Customer satisfaction pertains to the

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assessment of an offering's capacity to meet and fulfill the expectations set by a consumer

toward a product or service, and eventually, this overall satisfaction has a clear and

definite influence on the loyalty of customers as well as their intentions to purchase a

product or service. It applies to the services offered by a telecommunications provider

(Matin & Kibri, 2014).

Renowned for being a major provider of telecommunications services in the

Philippines, Globe Telecom, Inc. operates one of the largest and most technologically

advanced mobile, fixed-line and broadband networks in the country, providing consistent,

top-quality communications services to individual customers, businesses, as well as

corporate and enterprise clients. Last 2016, Globe estimated their mobile subscribers at

68.2 million, having more than 1.1 million broadband subscribers and 1.2 million

subscriptions in landline services (Globe Telecom, Inc., 2016).

Globe provides voice, data and value-added services to its mobile subscribers

through three major brands: Globe Postpaid, Globe Prepaid, and TM - which include fully

mobile, internet-on-the-go service starting 2016. Being the leading brand in the postpaid

market, Globe ensures that its various plan offerings evolve along with the consumers'

changing desires, preferences, and way of living. From their MyLifestyle Plan, Globe

MyStarter Plan, my lifestyle No Lock-up Plan, myShare Plan, and the newly launched

ThePLAN (Globe Telecom, Inc., 2017).

Globe caters to consumers who are looking for a unique and more personalized

experience and takes into account their subscribers digital lifestyle. The table below

shows the different features of the plans offered by Globe under their postpaid services

from 2015 to 2017.

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Features like call service, SMS, data allocation, and content access just

varies regarding volume capacity and fixed apps (for content access) that

corresponds to the price of a particular plan.

Postpaid Plan Features

MyLifestyle Plan
Call Service
MyLifestyle Plan 999 SMS Service

Data Allocation

Content Access

Shipping

Globe protection plan

MyStarter Plan

Call Service
MyStarter Plan 300

MyStarter Plan 500 SMS Service

Data Allocation

Content Access

Shipping

MyLifestyle No Lock-Up Plan


Call Service
MyLifestyle No Lock-Up Plan 599

MyLifestyle No Lock-Up Plan 799 SMS Service

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MyLifestyle No Lock-Up Plan 999 Data Allocation

MyLifestyle No Lock-Up Plan 1499


Content Access
MyLifestyle No Lock-Up Plan 2499

MyLifestyle No Lock-Up Plan 2999 Shipping

No Lock-UP

MyShare Plan

MyShare Plan 999 Call Service

SMS Service

Data Allocation

Content Access

Shipping

Three sim cards in 1 postpaid plan

ThePLAN SIM-Only

ThePLAN 599
Call Service
ThePLAN 799

ThePLAN 999 SMS Service

ThePLAN 1299
Data Allocation

Content Access

Shipping

Table 1. List of Globe Postpaid Plan Features

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The researchers took interest on the impact of Globe Postpaid Plans to selected

BPO employees satisfaction. Through this study, the researchers aim to determine

whether or not the strategic pricing used by Globe in their postpaid program is an effective

way to attract new customers and maintain existing customers. Particularly, in a business

process outsourcing (BPO) industry wherein facilitating innovations, building effective

teams, as well as forming and maintaining relationships are highly necessary.

Problem Statement

At present, the telecommunications industry in the Philippines is surging with

several giant companies that compete with one another for dominance in the market.

Consumers tend to not just focus on one aspect of the brand, but also on features like

the quality of the brand, image of the brand, popularity of the brand and, above all, the

price presentation of a particular brand of its product or offering. Building and maintaining

communication will always be part of the daily life of BPO employees, especially that they

are considered to have a huge portion in the corporate world setting that utilizes the need

for communication services in which case allows them to perform their particular task. In

the present situation of the telecommunications market in the Philippines, there is a broad

range of packages, deals, and contracts offered to the consumers, which give them an

array of choices on selecting their preferred plan.

The use of postpaid services in a BPO setting is due to the constant need of data

and communication services inside a corporate environment. Thus, employees and

companies tend to subscribe to a postpaid plan package to ensure the presence of

communication and have an effective tactic in lessening the expenses. Globe's postpaid

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plan program comes in different packages that are uniquely made to satisfy the diverse

needs of its consumers. The packages vary in price, features, and fees.

The problem lies within the relationship of the price to its corresponding features

in a particular postpaid plan package of Globe wherein there is a need to determine

whether the pricing of their postpaid plans are suited to its features to satisfy the needs

of their subscribers.

To achieve the goal of Globe to sustain and further improve in the corporate world

despite the highly competitive environment of the telecommunications industry in the

Philippines, the use of effective strategic pricing has risen steadily as a medium to capture

the target market. Given that there are several options available, the problem lies in the

fact that Globe Telecom needs to determine the most applicable pricing strategy for their

postpaid plans in the present time to capture the high market value of BPO employees.

The pricing strategy of Globe Postpaid Plans to the BPO target customers would be a

problem mainly because there is a constant change happening from BPO employees' day

to day life situation. It would mean Globe needs to reassure that their price strategy for

their postpaid plans can come up with these changes to avoid compromising its

effectiveness.

Theoretical Framework

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Figure 1. American Customer Satisfaction Index

As per Li, Qi, and Shu (2001), the American Customer Satisfaction Index (ACSI)

is an indicator secured in a system of cause and effect relationships, which makes it the

centerpiece of a chain of links running from the antecedents of overall customer

satisfaction. As indicated, the primary objective in estimating this system is to explain

customer loyalty (Fornell et al., 1996). With the design the of ACSI, it enables the market's

evaluation of a firm's offering in a manner that is both backward and forward-looking. The

present study adopts the ACSI model to investigate the antecedents and consequences

of customer satisfaction in the Saudi Arabian mobile services industry. The ACSI index

requires the need of client interview as an input to an econometric model that was

produced at University of Michigan's Ross School of Business. The criteria for drivers of

satisfaction on the left side, satisfaction (ACSI) in the center, and results of satisfaction

on the right side makes American Customer Satisfaction Index framework a cause-and-

effect model.

Concerning the study, the researchers can analyze how satisfied the customers

are and how they meet the expectations. The ACSI creates an evaluation of an overall

satisfaction level of clients, fulfillment of their expectations, and Globe's performance

regarding their postpaid plans.

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Figure 2. Factors that Affect Customer Satisfaction

Kotler (2000) explained satisfaction as: "a person's feelings of pleasure or

disappointment, resulting from comparing a product's perceived performance with

regards to its expectations." According to Hansemark and Albinsson (2004), "satisfaction

is an overall consumer attitude towards a service provider, or a reaction to the difference

between what customers anticipate and what they receive, regarding the fulfillment of

some need, goal or desire." Hoyer and MacInnis (2001) stated that feelings of

acceptance, happiness, relief, excitement, and delight could have a link to satisfaction.

There are several factors which contribute to customer satisfaction as shown in the figure

above. According to Hokanson (1995), these factors include friendly employees,

courteous employees, knowledgeable employees, helpful employees, the accuracy and

precision of billing, billing timeliness, competitive pricing, service quality, good value,

billing clarity and quick service. About the study, the framework discusses several

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variables influencing customer satisfaction in the mobile telecom industry. These

variables include client service, pricing structure, sales promotion, coverage, signal

strength.

Conceptual Framework

The study will focus on this particular paradigm:

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Figure 3. Conceptual Framework

The study gathers four variables for processing, which are the demographic profile

of the respondents, Globe Postpaid Plans features on Customer Satisfaction, Globe

Postpaid Plans Strategic Pricing on Customer Satisfaction, and Globe Postpaid Plans

Benefits on Customer Satisfaction. Processing of data includes the following actions;

assessment by selected BPO employees through purposive sampling technique,

research instrument reliability test Cronbach Alpha, and research instrument validity

test Pearson-r as a statistical tool for the study. Upon processing, the expected output

would be a basis for a proposed strategic pricing program of Globe Postpaid Plans.

Research Objectives

The study aims to determine the impact of Globe postpaid plans to selected BPO

employees' satisfaction to create an effective strategic pricing program.

Particularly, it attempts to answer the following questions:

1. What is the demographic profile of the respondents regarding:

A. Age,

B. Sex, and

C. Monthly Income

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2. How satisfied are the BPO employees to the Globe Postpaid Plan features?

A. Call Service,

B. SMS Service,

C. Data Allocation,

D. Content Access, and

E. Shipping

3. How satisfied are the BPO employees to the different strategic pricing of Globe

postpaid plans?

A. Flat-Rate Pricing,

B. Psychological Pricing, and

C. Value-Based Pricing

4. How satisfied are the BPO employees to the different benefits of Globe postpaid

plans?

A. Reliability,

B. Convenience,

C. Fast-Speed,

D. Entertainment, and

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E. Security

Hypotheses

This study aims to test the following hypotheses below:

H1: There is no notable difference in the respondents' level of customer

satisfaction on Globe Postpaid Plans when grouped according to demographic profile.

H2: There is no interrelationship in respondents level of satisfaction on Globe

Postpaid Plans Strategic Pricing parallel to Globe Postpaid Plans Features and Benefits.

Significance of the Study

The information from this research is expected to benefit the following people and

organizations:

Globe Telecom, Inc. As a profiting company, Globe is the core beneficiary of the

research because it will allow them to know how effective their current strategic pricing of

postpaid plans is when it comes to the satisfaction of consumers.

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The researchers. The researchers will be more educated about the impact of

strategic pricing to the customers' satisfaction, thus having a better understanding of the

study.

Future researchers. The ideas presented could be a reference data in conducting

new investigators or in testing the validity of other related findings. Other researchers and

students could find the presented data used as a basis for their future research study

related to the topic.

BPO employees. BPO employees can make use of this research as a reference

so that they can have a brief background and knowledge regarding the strategic pricing

employed by Globe in their postpaid plans.

Telecommunications Industry. The telecom sector will benefit from the study

because it will provide an initial insight on how the strategic pricing of Globe Postpaid

Plans affects consumers' satisfaction, thus allowing them to adjust their strategies

accordingly. With this study, this particular industry can examine and investigate the

approach utilized by Globe, and eventually modify it to gain better responses from

consumers.

San Beda, its faculty, and other researchers. They will benefit from this study

by providing professional knowledge, skills, and understanding that can connect with

sources of information and networks of professional support of Globe Telecom Inc. This

research can also help the schools marketing department to develop on future

researchers strategically and effectively.

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Scope and Limitation of the Study

The study will focus on the impact of Globe Postpaid Plans on BPO employees'

satisfaction. It aims to determine whether or not Globe's strategic pricing of postpaid plans

is still valid at present to capture the high market value of BPO employees. The

researchers limited the research within the following variables only. First is the Strategic

Pricing which consists of Flat-rate pricing, Psychological pricing, and Value-based pricing.

Second is the consumer satisfaction based on the features and benefits of Globe

Postpaid Plans. The primary data collected from the respondents through the survey were

the basis for generating results. The researchers intended to make the results of the study

as reliable and accurate as possible. All information and knowledge related to the topic

came from reliable resources like journals, present research papers, and other

information available on the internet and in the library. The respondents of this study are

the selected BPO employees in Ortigas, specifically in the following companies:

Convergy's, Sitel Philippines, Teleperformance Rockwell, and Transec BPO Solutions

Inc. The researchers conducted the survey during the 2nd week to the 3rd week of October

2017. The study focused more on the pricing program of Globe Postpaid plans and was

limited to the information resulting from the honest answers of the participants to achieve

the objectives of this study.

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Definition of Terms

The following terms defined operationally:

Allocation. Allowable usage capacity of cellular data that a subscriber can exhaust in a

given postpaid plan.

Benefits. The advantages a subscriber can acquire in a postpaid plan package.

BPO. Business process outsourcing (BPO) functions as a third-party provider for a

company.

Connection. Linkage of Globe Telecoms signal across several technological platforms.

Consumer. Can be a person or group of individuals, categorized as an end user or target

for service.

Convenience. A state wherein there is an absence of difficulty.

Cronbach Alpha. A statistical tool to measure internal consistency.

Decision. The course of action chosen by the consumer to give a resolution after taking

consideration of several alternative possibilities

Features. Qualities and inclusions in a particular plan that a subscriber can acquire.

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Flat-Rate Pricing. A pricing model that serves charges in a fixed rate for a service.

Impact. Measure of the intangible effects of Globe Postpaid Plan upon the BPO

employees in Ortigas.

Marketing Mix. Set of controllable tactical marketing tools product, price, place, and

promotion that the company uses to produce the response and outcome it wants

in the target market.

Package. Involves bundling, which is packaging related features together.

Pearson-r. A higher statistical tool that measures the strength of the relationship between

two variables.

Postpaid. The user pays the bill after gaining the service according to their use of mobile

services at the end of each month.

Preference. Characteristics of any consumer that wants to have a good or service to

make it preferable to him.

Presentation. It is the manner of displaying or offering a particular service.

Price. The value or worth placed to a particular plan service.

Pricing Program. Strategies which produce insights for creating and improving pricing

decisions that impact the company's financial system.

Proposal. A submission by one party to buy the services to or from another.

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Psychological Pricing. Pricing that uses the customer's emotional response to

encourage sales.

Reliability. The quality of being consistent with service and connection.

Satisfaction. Measures how services supplied meet or surpass a customer's

expectation.

Service Quality. The level of value in a service as perceived by the client.

Strategic Pricing. An action for pricing in maximizing profit.

Strategy. A plan of action in executing plans in its most effective and efficient way.

Subscription. An agreement to purchase a certain service.

Telecommunications. The inter-changement of information over significant distances by

electronic means and refers to all types of voice, data, and video transmission.

Value. The worth placed in a particular plan package.

Value-Based Pricing. A pricing strategy which sets prices, according to the perceived

value of a product or service.

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Chapter 2

Literature Review

The previous chapter presented the overview of this research, including the

background of the study, the research problem, primary and specific objectives, and

frameworks. This chapter ensures the familiarity of review of the related literature and

allows the researchers to know more about the topic. A minimum of 30 journals that are

relevant to the present study has been reviewed and assessed.

Demographic Profile of BPO Employees

The Business Process Outsourcing industry is one of the major key contributors to

the growth and stability of Philippine's economy. As discussed in a study conducted by

Oruga (2016), BPO companies prefer male applicants over female, considering security

and work schedules. The age of the respondents, previously mentioned was between 21-

26 years old, which is classified as the working age group in the Philippines. When the

study was conducted, the respondents' net monthly income varies from 12,000 to 16,000

pesos. Compared to other countries, the average monthly income in the Philippine BPO

sector is lower (as cited in Ramos, Estrada, & Felipe, 2010).

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Customer Satisfaction in Telecom Industry

Customer-centered companies consider customer satisfaction as a goal and a

marketing tool (Hossain and Suchy, 2013). They identified customer satisfaction as a

conclusion that it would provide a pleasurable level of consumption in a product or service

feature, because if the satisfaction standards of a client are increasing, then it could be a

link to customer loyalty. Having a positive effect on customer loyalty gets a target to have

a broad range of products and services, including in the telecommunications services

(Matin and Kibria, 2014). In line with the telecommunications industry, mobile service

providers should understand what can be the importance of customer satisfaction and

loyalty in planning different strategies for maintaining users. One of the many services in

the industrial field is the telecommunications industry, classified by high customer contact

with various customized service solutions that increased the focus on research for

customer satisfaction (Nasser, Salleh, & Gelaidan, 2102). As previously mentioned by

Rahman (2014), a client's post-purchase appraisal and emotional response and reaction

to the overall product or service can lead to customer satisfaction. Constructing and

enduring a solid basis between a firm and its customers will start by understanding

customer satisfaction.

It is important for firms to make sure that customers achieve satisfaction because it

could give them an idea of the strategies they can use to enhance business operations.

In achieving customer satisfaction, the company should deliver an excellent experience

to its customers (Ahmed et al., 2016). Telecommunications companies must offer quality

services because customers look for services that could surpass their expectations and

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provide feelings of delight and satisfaction to them (Ojo, 2010). Sharma (2014) discussed

that customer satisfaction varies on what the managers desire to maintain the required

services and service quality. Implications for marketing strategists were being

emphasized to entice the customers.

Customer Satisfaction

According to Boohene and Agyapong (2011), customer satisfaction is an overall

evaluation based on the total purchase and consumption experience of the consumer on

the performance of the service performance, and can also be a factor that meets the

minimum or basic requirements. Furthermore, customer satisfaction can help the

organization identify its customers needs and expectations on how to deal with them.

The struggle that is currently facing the modern service industry is how to attain customer

satisfaction and how to provide an adequate service quality (as cited in Anjum et al., 2016,

p. 510). Hossain and Suchy (2013) stated that customer satisfaction is the consumer's

fulfillment reaction. Customer satisfaction is believed to be a conclusion of what features

a product or service have, but it can also be the product or service itself that provides a

higher level of consumption-related fulfillment. Sharma (2014) stated that satisfaction is

the customers' extent of services in order if those services have met its needs and

expectations.

Customer satisfaction rises from experiencing service quality and comparing the

encounter and execution (Lee, 2013). There has been a moderate impact on a customer's

expectation and customer's satisfaction concerning the involvement of equipment and

fixtures as well as visual appeal. Out of the seven dimensions of service quality, customer

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expectations have an important impact on customer satisfaction (Khuruna, 2014).

Customer satisfaction is found to be the most significant factor for improving customer

loyalty. Therefore, the level of customer loyalty increases with the growth of the customer

satisfaction level (Jamil, Nawawi, & Ramli, 2010). The viewed key factor in the creation

of value and in gaining influence of customer satisfaction is quality. In Malaysia, the

telecommunication industry has to be organized to provide quality service for them to be

able to satisfy customers (Loke et al., 2011).

For a customer's perceived value of a service be an appropriate antecedent for

predicting customer purchasing behavior, customer satisfaction should result in the

behavior of service consumption (as cited in Chou, 2014, p. 5044). It depends on the

higher or lower satisfaction of a consumer that will vary upon the quality of brand

characteristics offered by a company (Khan, 2012). By having customer satisfaction,

many firms are noticed for knowing how to become significant players in their respective

industries (Sorescu, 2016). According to Oladepo and Abimbola (2014), having maximum

satisfaction from the products or services that they would buy is what customers are

acquiring.

Customer satisfaction helps businesses in building long-term relationships and in

achieving its main objective, which is to earn a profit. It results that a company can satisfy

its customers by proving qualitative services with low price. One of the most useful media

for quick routing is telecommunications. Higher quality service, as well as the

understanding of customer loyalty, can be considered in providing the satisfaction on the

mobile phone service market (Sharma, 2014).

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There are some organizations of all types that have increasingly recognized the

importance of customer satisfaction and loyalty (Alsajjan, 2014). Knowing the reasons or

the factors that are responsible for creating satisfaction among customers for a particular

brand, it is better to understand what the factors that affect the customer satisfaction are.

Customer satisfaction may also be in the form of fulfilling the needs and desires of

customers (Hanif, Hafeez, & Riaz, 2010). As the customer's perceived value increases,

the effect of service quality on customer satisfaction pertains to be higher (Gallifa &

Batalle, 2010). How well the services delivered to the consumer's expectations explain

what service quality is. For customers to aim a higher level of quality service, companies

should provide higher levels of service quality. There is a motivation to thrive, survive and

compete in a global environment about the service organization, while there is a desire

for better quality services from the perspective of the customer (Paulrajan & Rajkuma,

2010).

Customer satisfaction leads businesses in many industries (Brcic and Latham,

2016). Minh and Huu (2016) stated that having a positive influence on customer loyalty

in a high-contact services sector can be developed by assuring that there is an employee

loyalty, service quality, and customer satisfaction. Connecting that if there is no

consumer, there is no business. Therefore, it is important for every business person to

have consumer satisfaction that could depend on purchasing the product performance

about the customer's expectations (Rajpurohit & Vasita, 2011).

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Strategic Pricing

According to Rahman (2014), the price is one of the factors that influence

customer satisfaction because it may indicate the offering's performance and quality, thus

increasing the customer's expectations toward a product or service. The role of price,

particularly in the field of mobile telecommunications, is something that is very crucial

(Pauljaran & Rajkumar, 2011). The willingness of a customer to pay depends on what he

or she needs, desires, and expects from the product or service, as well as the client's

evaluation of its quality at a given time or place (as cited in Li, 2013, p. 43). Consequently,

the services of a brand and the price it charges are usually the determinants of a

customer's level of satisfaction (as cited in Hanif, Hafeez, & Riaz, 2010, p. 45).

Several kinds of research have proved how important price is in the buying

decision process (as cited in Danziger, Hadar, & Morwitz, 2014, p. 761). The findings in

a study conducted by Gupta et al. (2011) provided meaningful insights into future pricing

methods and strategies. In another study, it was shown that the factors that influence the

selection of telecom service provider the most was price and communication (as cited in

Oladepo & Abimbola, 2014, p. 51). Other researchers also show that even when price

information is overstated or doubtful, reference price perceptions may vary, depending

on the direction where the observed prices or price cues are heading (as cited in Lowe &

Alpert, 2010, p.7). Furthermore, it was shown in a study on modeling customer

satisfaction that the price and the coverage of the network are the dominant factors in

telecom services, followed by the customer service and the ease of usage (as cited in

Israel, Emmanuel, & Rita, 2016, p. 67). Findings also showed that high and careful

attention is essential in the reasonable prices, an array of pricing programs and degree

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of freedom in selecting a scheme and providing an accurate billing, as well as in the ease

and speed of settling billing disputes (Ishaq, 2011).

Due to the competition in service prices, there was an increase in the demand of

the public (Nasser, Salleh, & Gelaidan, 2012). For satisfying and retaining existing users,

it is important for a mobile service provider to focus on the continuous improvement of the

quality of service and to charge a reasonable amount for the service (as cited in Olatokun

& Nwonne, 2012, p. 20). Therefore, setting product prices are considered to be a strategic

activity because, in the end, it will determine consumers' perception of the products

offered as well as their future purchase decisions (Faith & Edwin, 2015.) To maintain and

keep hold of a firm's existing customers, it is essential to thoroughly craft strategies and

plans that are one step ahead of the competitors (Matin, Bin, & Kibria, 2014).

Strategic pricing is a significant aspect of every organization, most especially when

there is a production of goods and services involved because it is one of the primary

indicators of the company itself (as cited in Faith & Edwin, 2015, p. 88). The types of

strategic pricing discussed in this study are customer value-based pricing, psychological

pricing, and flat rate pricing. According to Faith and Edwin (2015), customer value-based

pricing is setting the amount based on the estimated or perceived value that an offering

provides to its clients. Psychological pricing, on the other hand, is a method used in pricing

wherein psychology is considered, and not just economics, thus the price speaking for

the product or service offered (as cited in Faith & Edwin, 2015, p. 93). Lastly, flat-rate

pricing, which is a promising pricing concept in the telecommunications industry, allows

unlimited use of services at a fixed monthly fee (Fritz, Schlereth, & Figge, 2011).

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Synthesis of the Study

The presented literature and journals discussed how pricing strategies can be a

vital aspect in customer satisfaction. Distinct issues of strategic pricing, such as

customer's willingness to pay, and its psychological effect on the client's perception

regarding the price show a link that customer satisfaction is directly affected by the

strategic pricing utilized by a particular company to its products. The journals also

identified the coherency of strategic pricing and customer satisfaction in maximizing the

contentment of both parties, which are the Globe Telecom and its customers.

Although the research journals have a link that makes each journal directly affect

one another, there were some definite differences since apiece of journals has a different

focus. Distinctions found are in the research designs, sampling design, and the strategies

used to gather the data and information needed for the study and there was dissimilarity

upon the collection of data as well. Different references and claims from various journals

lead to an explanation of the various factors of customer satisfaction and strategic pricing.

The study is significantly relevant due to its importance of studying customer

satisfaction and strategic pricing that would benefit companies to gain the most

appropriate action to its product's strategic pricing that would eventually lead to achieving

the highest satisfaction possible for their customer. This study also aims to give the

companies a head start and better understanding of the behavior of BPO employees

since they have a big market value in the telecom industry. This study can help increase

a marketer's awareness of the right pricing strategy to gain the upper hand against its

competitors.

29
Chapter 3

Methodology

This chapter presents the method and procedures in conducting the study. It

includes the research design, description of the participants, sampling technique, data

30
collection method, development of the research instrument, and the statistical tools

applied in the analysis of data.

The researchers attempt to come up with a proposed strategic pricing program of

Globe Postpaid Plans based on the result of the evaluation on the level of customer

satisfaction of selected BPO employees in Ortigas.

Research Design

As a study that aims to determine the impact of Globe Postpaid Plans to selected

BPO employees' satisfaction: basis for a proposed strategic pricing program, the

researchers used a quantitative approach. This kind of research design was utilized to

gain a better understanding of customer satisfaction and to examine the relationship

between the variables involved in the study.

This study used a descriptive causal and survey questionnaire form type of

research design. Since the nature of a descriptive kind of research is to observe, record,

organize, and describe the data collection (Brase & Pelilio, 2009), the researchers used

this because it deemed fit for the study.

The researchers used the quantitative approach to come up with the analysis and

evaluation of answers in the survey questionnaire. The descriptive type of research was

used to gather the participants' information accurately and to examine why the

researchers chose them as potential respondents (Aggarwal, 2008). It helped the

researchers understand and grasp the impact of Globe Postpaid Plans to selected BPO

employees' satisfaction, which was the basis for a proposed strategic pricing program.

31
Sampling Design

For this study, the sample outputs were expected to get responses from BPO

employees around Ortigas area. The researchers have chosen these respondents

because they are the ones who will be able to help determine the impact Globe postpaid

plans to their satisfaction for the researchers to create an effective strategic pricing

program. Also, due to their active lifestyle, they are the ones who frequently purchase the

postpaid plans made by Globe. With this, they are expected to know about the said topic.

The sampling technique utilized was non-probability sampling. The non-probability

technique is a method wherein the garnering of the needed data and information from the

respondents without equal opportunities for the individuals in the population will be

chosen.

The number of samples needed was only 100 people who fit the criteria given by

the researchers. A purposive sample is a non-probability sample which selects

characteristics based on a population and the objective of the study. To collect the

necessary information needed for the study, the researchers looked for 100 respondents

who fit the criteria given. The respondents were chosen according to the following criteria:

they must be BPO employees, the company they work for must be located in Ortigas, and

they must be currently subscribed to a Globe Postpaid Plan for at least one year.

In obtaining vital information for the efficiency of the research, purposive sampling

under non-probability was used to conduct the sampling. It was used due to the nature of

the study wherein the research would only need to reach a targeted sample quickly and

32
where sampling for proportionality is not the primary concern. Hence, only a specific

number of respondents coming from the BPO employees in Ortigas were needed to

conduct the study.

The researchers personally went to the following BPO offices around Ortigas to

gather the necessary information needed for the study; Convergys, Sitel Philippines,

Teleperformance Rockwell, Transec BPO Solutions Inc.

Data Collection Method

For collecting data, the researchers used a survey questionnaire to get the most

credible and detailed answers from the selected BPO employees around Ortigas. Upon

survey completion, the respondents were requested to submit the questionnaires

immediately. Moreover, to prevent possible misinterpretation of the questions, the

questionnaires were carefully constructed with the assistance of an English professor,

Management professor, and a Marketing professor. The survey questionnaires were only

distributed to selected BPO employees working in Ortigas who are currently subscribed

to a Globe Postpaid Plan for a year or so.

Development of the Research Instrument

The method used in the collection of data was through a survey questionnaire. The

survey questionnaire was used to collect demographic data about the respondents and

to determine the impact of Globe postpaid plans to selected BPO employees' satisfaction

to create an effective strategic pricing program.

33
The questionnaire is composed of four parts, which include the demographic profile

of the respondents, Globe Postpaid Plan features on customer satisfaction, Globe

Postpaid Plan benefits on customer satisfaction, and Globe Postpaid Plan strategic

pricing on customer satisfaction. It is composed of a structured close-ended type of

questions and assessment through a 4-point scale.

Statistical Treatment of Data

To interpret the data, the researchers will employ the following statistical treatment:

Frequency, Weighted Mean, Adjectival Rating, Cronbach Alpha and Pearson-r.

1. Frequency

The frequency (f) of a study is the number of times the data occurs.

Tool used: Distribution table

Class Tally Marks Frequency

2. Weighted Mean

34
Weighted mean is a tool to analyze a particular data by providing values in a data

customary which has more impact according to attributes.

Formula:

w = the weights.

x = the value.

3. Adjectival Ratings

The adjectival rating tables were used to rate the satisfaction. Table 1 was used

to assign a score to Factor 1 (Globe Postpaid Plan features on customer satisfaction),

Table 2 for Factor 2 (Globe Postpaid Plan strategic pricing on customer satisfaction), and

Table 3 for Factor 3 (Globe Postpaid Plan benefits on customer satisfaction). The

researchers used the table and selected appropriate adjectival ratings to assess the

ratings of the interviewees.

Table 2. Globe Postpaid Plan Features on Customer Satisfaction.

The features of Globe Postpaid Plan have fully met


VERY 3.25 4.00 the criteria of their subscriber satisfaction
SATISFACTORY standards. This rating indicates a very high level of
(VS) satisfaction towards Globe Postpaid Plan.

The features of Globe Postpaid Plan have met the


SATISFACTORY 2.50 3.24 criteria of their subscriber satisfaction standards.
(S)

35
This rating indicates a high level of satisfaction
towards Globe Postpaid Plan

UNSATISFACTORY 1.75 2.49 The features of Globe Postpaid Plan did not meet
(US) the criteria of their subscriber satisfaction
standards. This rating indicates a low level of
satisfaction towards Globe Postpaid Plan.

VERY 1.00 1.74 The features of Globe Postpaid Plan did not meet
UNSATISFACTORY all the criteria of their subscriber satisfaction
(VUS) standards. This rating indicates a very low level of
satisfaction towards Globe Postpaid Plan.

Table 3. Globe Postpaid Plan Strategic Pricing on Customer Satisfaction.

The strategic pricing of Globe Postpaid Plan has


VERY 3.25 4.00 fully met the criteria of their subscriber satisfaction
SATISFACTORY standards. This rating indicates a very high level of
(VS) satisfaction towards Globe Postpaid Plan.

The strategic pricing of Globe Postpaid Plan has


SATISFACTORY 2.50 3.24 met the criteria of their subscriber satisfaction
(S) standards. This rating indicates a high level of
satisfaction towards Globe Postpaid Plan

UNSATISFACTORY 1.75 2.49 The strategic pricing of Globe Postpaid Plan did
(US) not meet the criteria of their subscriber satisfaction
standards. This rating indicates a low level of
satisfaction towards Globe Postpaid Plan.

VERY 1.00 1.74 The strategic pricing of Globe Postpaid Plan did
UNSATISFACTORY not meet all the criteria of their subscriber
(VUS) satisfaction standards. This rating indicates a very
low level of satisfaction towards Globe Postpaid
Plan.

Table 4. Globe Postpaid Plan Benefits on Customer Satisfaction.

36
The benefits of Globe Postpaid Plan have fully met
VERY 3.25 4.00 the criteria of their subscriber satisfaction
SATISFACTORY standards. This rating indicates a very high level of
(VS) satisfaction towards Globe Postpaid Plan.

The benefits of Globe Postpaid Plan have met the


SATISFACTORY 2.50 3.24 criteria of their subscriber satisfaction standards.
(S) This rating indicates a high level of satisfaction
towards Globe Postpaid Plan

UNSATISFACTORY 1.75 2.49 The benefits of Globe Postpaid Plan did not meet
(US) the criteria of their subscriber satisfaction
standards. This rating indicates a low level of
satisfaction towards Globe Postpaid Plan.

VERY 1.00 1.74 The benefits of Globe Postpaid Plan did not meet
UNSATISFACTORY all the criteria of their subscriber satisfaction
(VUS) standards. This rating indicates a very low level of
satisfaction towards Globe Postpaid Plan.

4. Cronbach Alpha

Cronbach's alpha is a tool of internal constancy, wherein it measures how closely

related a set of items are as a group. It was used to determine the reliability of the

questions in the survey.

Formula:

In Cronbach alpha's formula, N would be the equal number of items, while c-bar

would be the average inter-item variance among the items presented, and v-bar would

be equal to the average variance.

37
Reliability Statistics

Cronbach's
Alpha N of Items
.812 10

Cronbach Alpha Micro-details

Item-Total Statistics

Scale Scale Corrected Squared Cronbach's


Mean if Variance if Item-Total Multiple Alpha if Item
Item Item Deleted Correlation Correlation Deleted
Deleted
Age 43.0000 36.061 .147 .318 .826
Sex 44.6100 38.119 .168 .158 .810
Monthly Income 43.1900 38.721 -.062 .346 .853
Call Features 42.6700 36.122 .426 .683 .798
SMS Service 42.5800 36.852 .344 .682 .802
Data Allocation 43.3800 32.783 .595 .599 .784
Content Access 43.0800 34.539 .543 .401 .790
Shipping 43.0600 35.330 .464 .418 .795
Flat Rate 42.9800 33.717 .619 .663 .784
Psychological 43.0200 33.899 .641 .668 .784
Value Based 43.1400 33.435 .652 .653 .782
Reliability 43.0400 33.130 .665 .652 .781
Convenience 42.9500 35.179 .478 .505 .794
Fast speed 43.5100 32.131 .627 .580 .780
Entertainment 43.0100 35.323 .484 .544 .794
Security 42.9300 35.581 .467 .506 .795

5. Pearson-r

38
The Pearson correlation coefficient calculates the strength of variables and

relationships.

Formula:

N = Number of pair scores

xy = Sum of the products of the paired scores

x = Summation of X scores

y = Summation of Y scores

x^2 = sum of squared X scores

y^2 = sum of squared Y scores

* Correlation is significant at the 0.050 0.020 level (2-tailed).

* Correlation is strong at the 0.010 0.000 level (2-tailed).

* Pearson-correlation acceptable range value between 1 to -1.

39
Chapter 4

Results and Discussion

This chapter presents the results of the data gathered from 100 respondents who

are selected BPO employees in Ortigas subscribed to a Globe postpaid plan for at least

one year. It also comprises the analysis and interpretation of the findings resulting from

this study.

Specific Research Objective 1

40
What is the demographic profile of the respondents according to age, sex, and

monthly income?

Table 5. Demographic Profile of the Respondents

Particulars Frequency Percent


Age
19 years old and below 2 2.0
20 - 25 years old 38 38.0
26 - 30 years old 32 32.0
31 - 35 years old 18 18.0
36 - 40 years old 5 5.0
40 years old and above 5 5.0
TOTAL 100 100.0

Sex Frequency Percent


Male 60 60.0
Female 40 40.0
TOTAL 100 100.0

Monthly Income Frequency Percent


20,000 and below 17 17.0
21,000 - 30,000 27 27.0
31,000 - 40,000 28 28.0
41,000 - 50,000 13 13.0
50,000 and above 15 15.0
TOTAL 100 100.0

41
Table 5 shows that most of the respondents who answered the questionnaires are

people ranging from ages 20-25 years old with a total percentage of 38%, while with the

lowest number of respondents are people ages 19 years old and below with only 2%.

Regarding sex, most of the respondents are male with a percentage of 60%, and the

remaining 40% are female. In terms of monthly income, 28% of the respondents income

ranges from Php31,000-40,000, while only 13% of the respondents income ranges from

Php41,000-50,000.

The results presented in this table proved that the age of most BPO employees

ranges from 20-25 years old because this is classified as the working age group in the

country (as cited in Ramos, Estrada, & Felipe, 2010).

Specific Research Objective 2

How satisfied are the BPO employees to the Globe Postpaid Plan features in terms

of call service, SMS service, data allocation, content access, and shipping?

Table 6. Level of Satisfaction on Globe Postpaid Plans Features.

Verbal
Particulars N Minimum Maximum W. Mean Interpretation Rank
Call Service 100 2.00 4.00 3.34 Very Satisfied 2nd
SMS Service 100 2.00 4.00 3.43 Very Satisfied 1st

42
Data Allocation 100 1.00 4.00 2.63 Satisfied 5th
Content Access 100 1.00 4.00 2.93 Satisfied 4th
Shipping 100 1.00 4.00 2.95 Satisfied 3rd

TOTAL AVERAGE 3.06 SATISFIED


WEIGHTED MEAN

Table 6 shows that the respondents are very satisfied when it comes to the SMS

service of Globe Postpaid Plans with the highest weighted mean rating of 3.43, followed

by call service with 3.34 mean. Shipping with 2.95 as the third highest mean rating, comes

content access with a 2.93 rating, and lastly, the feature with the lowest mean rating would

be data allocation.

The respondents are satisfied with the Globe Postpaid Plan features with a 3.06

weighted mean.

The results presented prove the study of Rajpurohit and Vasita (2011), showing

that having an SMS service most satisfies them that can be the purpose of using a

particular mobile phone service provider.

Specific Research Objective 3

How satisfied are the BPO employees to the different strategic pricing of Globe postpaid

plans in terms of flat-rate pricing, psychological pricing, and value-based pricing?

Table 7. Level of Satisfaction on Globe Postpaid Plans Strategic Pricing

Verbal
Particulars N Minimum Maximum W. Mean Interpretation Rank
Flat Rate 100 1.00 4.00 3.03 Satisfied 1st

43
Psychological 100 1.00 4.00 2.99 Satisfied 2nd
Value-Based 100 1.00 4.00 2.87 Satisfied 3rd

TOTAL AVERAGE 2.96 SATISFIED


WEIGHTED MEAN

Table 7 shows that the respondents are satisfied the most with Globe Postpaid

Plans flat-rate or fixed service pricing, with the highest weighted mean rating of 3.03.

Next would be psychological pricing gaining a 2.99 rating, with the same verbal

interpretation. Finally, value-based pricing comes last with a rating of 2.87.

The respondents are satisfied with the Globe Postpaid Plan strategic pricing with

a 2.96 weighted mean.

The researchers agree to what Faith and Edwin (2014) indicated in their study that

in some situations, flat-rate pricing is a pricing concept in the telecommunications industry

that allows unlimited use of services at a fixed monthly fee. That resulted in having the

highest satisfaction when it comes to Globe Postpaid Plans strategic pricing. This gives

Globe Telecom the ability in the roaming business for offering data roaming services for

a complete full-day cycle, without having customers worry about the expiration of their

data roaming subscriptions at the stroke of midnight.

Specific Research Objective 4

How satisfied are the BPO employees to the different benefits of Globe postpaid plans in

terms of reliability, convenience, fast-speed, entertainment, and security?

44
Table 8. Level of Satisfaction with Globe Postpaid Plans' Benefits

Verbal
Particulars N Minimum Maximum W. Mean Interpretation Rank
Reliability 100 1.00 4.00 2.97 Satisfied 4th
Convenience 100 1.00 4.00 3.06 Satisfied 2nd
Fast speed 100 1.00 4.00 2.50 Satisfied 5th
Entertainment 100 1.00 4.00 3.00 Satisfied 3rd
Security 100 1.00 4.00 3.08 Satisfied 1st

TOTAL AVERAGE 2.92 SATISFIED


WEIGHTED MEAN

Table 8 shows that respondents are satisfied with all the benefits of Globe Postpaid

Plans. With security garnering the highest mean rating of 3.08, convenience with a

weighted mean of 3.06, followed by entertainment with a 3.00 mean score, comes

reliability with a rating of 2.97, and finally, fast-speed with the lowest mean rating of 2.50.

The respondents are satisfied with the Globe Postpaid Plan benefits with a 2.92

weighted mean.

People have a different basis of how satisfied they are when it comes to the benefit

of a service or a product. Like Sharma (2014) presenting the customer's satisfaction about

the benefits of a product, predicted that telecom industries need to ensure that mobile

users are evidently satisfied to achieve the most significant benefits from the telecom

services. Customers' satisfaction from a company's benefits is the customers'

measurement of services regarding whether those services have met its needs and

expectations.

45
Hypothesis 1

H1: There is no notable difference in the respondents' level of customer satisfaction on

Globe Postpaid Plans when grouped according to demographic profile.

Table 9. Level of Relationship on Globe Postpaid Plans Features to Age.

There is a negative relationship between the age of the respondents to the features

of Globe Postpaid Plan, r(98) = 0.348, p=0.528.

Table 10. Level of Relationship on Globe Postpaid Plans Strategic Pricing to Age.

46
There is a negative relationship between the age of the respondents to the

strategic pricing of Globe Postpaid Plan, r(98) = 0.018, p=0.712.

Table 11. Level of Relationship on Globe Postpaid Plans Benefits to Age

There is a negative relationship between the age of the respondents to the benefits

of Globe Postpaid Plan, r(98) = 0.038, p=0.528.

Table 12. Level of Relationship on Globe Postpaid Plans Features to Sex.

47
There is a negative relationship between the sex of the respondents to

the features of Globe Postpaid Plan, r(98) = 0.107, p=0.325.

Table 13. Level of Relationship on Globe Postpaid Plans Strategic Pricing to Sex.

There is a negative relationship between the sex of the respondents to the

strategic pricing of Globe Postpaid Plan, r(98) = 0.110, p=0.326


Table 14. Level of Relationship on Globe Postpaid Plans Benefits to Sex

48
There is a negative relationship between the sex of the respondents to

the benefits of Globe Postpaid Plan, r(98) = 0.103, p=0.354.

Table 15. Level of Relationship on Globe Postpaid Plans Features to Monthly


Income.

There is a negative relationship between the monthly income of the respondents

to the features of Globe Postpaid Plan, r(98) = -0.089, p=0.459.


Table 16. Level of Relationship on Globe Postpaid Plans Strategic Pricing to
Monthly Income.

49
There is a negative relationship between the monthly income of the respondents

to the strategic pricing of Globe Postpaid Plan, r(98) = -0.069, p=0.460.

Table 17. Level of Relationship on Globe Postpaid Plans Benefits to Monthly


Income.

There is a negative relationship between the monthly income of the respondents

to the benefits of Globe Postpaid Plan, r(98) = -0.154, p=0.176.


The result of Pearson-r on hypothesis 1; There is no notable difference in the

respondents' level of customer satisfaction on Globe Postpaid Plans when grouped

according to demographic profile, proves that it is correct. In the age demographic profile

50
concerning the features, strategic pricing, and, benefits of Globe Postpaid Plan, it resulted

to no correlation in general which indicates that there is no significant relationship.

However, one variable of features which is call service and one variable of benefits which

is reliability resulted to a significant relationship when compared to age. In the

demographic profile of sex, the same result was established. Generally speaking, there

is no correlation between sex and to the features, strategic pricing, and benefits of Globe

Postpaid Plan but there is one variable which resulted to a significant relationship which

is call service under the features. While in the monthly income, the same result was still

acquired and all variables resulted in no correlation.

Hypothesis 2

H2: There is no interrelationship in respondents level of satisfaction on Globe Postpaid

Plans Strategic Pricing parallel to Globe Postpaid Plans Features and Benefits.

51
Table 18. Level of Relationship on Globe Postpaid Plans Flat Rate Pricing to
Features

There is a positive relationship between the flat-rate pricing to the features of

Globe Postpaid Plan, r(98) = 0.313, p=0.016.

Table 19. Level of Relationship on Globe Postpaid Plans Flat Rate Pricing to
Benefits

52
There is a positive relationship between the flat-rate pricing to the benefits of

Globe Postpaid Plan, r(98) = 0.460, p=0.0002.

Table 20. Level of Relationship on Globe Postpaid Plans Psychological Pricing to


Features

There is a negative relationship between the psychological pricing to the features

of Globe Postpaid Plan, r(98) = 0.287, p=0.063.


Table 21. Level of Relationship on Globe Postpaid Plans Psychological Pricing to
Benefits

53
There is a positive relationship between the psychological pricing to the benefits

of Globe Postpaid Plan, r(98) = 0.438, p=0.000.

Table 22. Level of Relationship on Globe Postpaid Plans Value-Based Pricing to


Features

There is a positive relationship between the value-based pricing to the features of

Globe Postpaid Plan, r(98) = 0.349, p=0.014.


Table 23. Level of Relationship on Globe Postpaid Plans Value-Based Pricing to
Benefits

54
There is a positive relationship between the value-based pricing to the benefits of

Globe Postpaid Plan, r(98) = 0.433, p=0.001.

The result of Pearson-r on hypothesis 2; There is no interrelationship in

respondents level of satisfaction on Globe Postpaid Plans Strategic Pricing parallel to

Globe Postpaid Plans Features and Benefits proves that it is incorrect. In the comparison

of correlation between flat-rate pricing to the features and benefits, it resulted in a strong

correlation; flat-rate to features got a result of 0.016 and flat-rate to benefits got 0.0002.

Under the features, data allocation and content access resulted in having the highest

relationship having a result of 0.000 which indicates a strong relationship while all the

variables under the benefits with exception to security acquired 0.000 which means they

are equally significant to one another except to security that has a result of 0.001. In

55
psychological pricing, in general, it shows a significant relationship. When Psychological

and features were tested, it resulted in a negative correlation having 0.063 as an average

result. Only data allocation, content access, and, shipping, under features shows a

positive correlation. However, when psychological pricing was tested to benefits, it

resulted in a low 0.000 result that indicates strong correlation having all the variables of

benefits correlate equally to one another at 0.000. Lastly, the correlation of value-based

to features and benefits both resulted in a positive correlation; features got a result of

0.014 and benefits resulted in 0.001. In the features, data allocation, content access, and,

shipping got the highest relationship having a result of 0.000. While in benefits, reliability,

convenience, and, fast speed got the highest correlation again with a result of 0.000.

Chapter 5

Conclusion and Recommendation

56
Conclusion

Based on the respondents of this research, for the demographic profile of the

respondents, specifically regarding sex, the number of male respondents was greater

than the number of female respondents. Concerning age, on the other hand, most of the

respondents were 20-25 years old showing that the age of majority of the BPO

employees in Ortigas ranges from 20-25 years old. Finally, about the BPO employees

monthly income, most of the respondents earn a monthly income ranging from

Php31,000-40,000.

Under the features of Globe Postpaid Plans, the feature that substantially satisfies

BPO employees in Ortigas is SMS service, followed by call service, shipping as the third

factor, then content access, and finally, data allocation.

Under the strategic pricing utilized by Globe on the postpaid plan program, the type

of strategic pricing significantly satisfies BPO employees in Ortigas is flat-rate pricing,

followed by psychological pricing, and lastly, value-based pricing.

Under the benefits of Globe Postpaid Plans, BPO employees in Ortigas are

satisfied regarding reliability, convenience, fast speed, entertainment, and security.

However, among the five benefits mentioned, security topped the list while fast speed

came last.

For the first hypothesis There is no notable difference in the respondents level

of customer satisfaction on Globe Postpaid Plans when grouped according to

demographic profile, the study conducted proves that the first hypothesis is correct. It

signifies that there is no correlation between the respondents level of satisfaction to the

57
demographic profiles, which therefore indicates that creating Globe Postpaid Plans that

is based according to demographic profile would not be necessary.

The second hypothesis There is no interrelationship in respondents level of

satisfaction on Globe Postpaid Plans Strategic Pricing parallel to Globe Postpaid Plans

Features and Benefits, proves that it is incorrect. The study indicates that flat-rate pricing

has a significant relationship to the features and benefits of Globe Postpaid Plan. While

under the psychological pricing, it shows a negative correlation when it is compared to

the features of Globe Postpaid Plans but acquired positive correlation when it is compared

to the benefits. Lastly, the value-based pricing obtained positive correlation both to the

features and benefits of Globe Postpaid plan. Considering all of the results, it can be

concluded that the second hypothesis is indeed null.

In summary of this conclusion, the research shows that the level of satisfaction of

BPO employees in Ortigas can vary significantly according to the features, strategic

pricing, and benefits of Globe Postpaid Plans. The respondents are meticulously seeking

for features that are capable of catering to their active lifestyle, prices that may not be that

affordable but are reasonable, and finally, benefits that appeal most to them. Also,

improvement of quality, service, and performance are the factors that the respondents

are continuously demanding from their postpaid plan subscriptions.

Recommendations

58
A. Proposed actions for increasing customer satisfaction of Globe Postpaid Plan

1A. To gain better responses from the target consumers, the researchers
recommend for Globe to come up with a Postpaid Plan that offers more
on data allocation. Since it got the lowest rank on the customer's satisfaction
on Globe postpaid plans' features. Followed by the content access, then
shipping, call features, and lastly on SMS service.

2A. Regarding Globe Postpaid Plans strategic pricing, the researchers


recommend on the improvement of psychological and value-based
pricing. Although the result is satisfied, the two pricing variables will almost fall
to the range of dissatisfied. The flat-rate pricing also needs a room for
improvement to sustain the satisfaction level or further improve the
respondents level of satisfaction to very satisfied.

3A. The researchers also recommend in the continuous innovation and


improvement of the benefits of Globe Postpaid Plan. (Reliability,
Convenience, Fast Speed Entertainment, Security). Put more attention to
the fast-speed benefit since it got the lowest level of satisfaction among the
benefit variables.

B. Proposed Strategic Pricing Program for Globe Postpaid Plan

1B. Decrease the flat-rate pricing of Globe Postpaid Plan and improve

their service in data allocation and speed. Pearson-r results of flat-rate

pricing to features and benefits shows a significant relationship. With the

current satisfaction level of the respondents into data allocation and speed, it

almost falls to the range of dissatisfied, meaning, in order to improve the

satisfaction level of the BPO employees in Ortigas to the data allocation and

59
speed, Globe needs to decrease their flat-rate pricing to in line with the

perceived value of the respondents to data allocation and speed or maintain

their current flat-rate pricing but enhance their service to its features and

benefits relative to their flat-rate pricing.

2B. Put more importance of psychological pricing to data allocation,

content access under the features of Globe Postpaid Plan. The relationship

between these variables resulted in strong correlation. Globe needs to

determine the best psychological pricing strategy to implement with its data

allocation and content access to gain the highest satisfaction of their consumer.

3B. Determine the most appropriate psychological pricing that will in line

with Globe Postpaid Plan benefits. A high correlation is identified between

Globe postpaid plan benefits to psychological pricing. Which means a slight

error would be a great factor to their level of satisfaction.

4B. Focus on the significance of value-based pricing to data allocation,

content access. The study shows that value-based pricing has the strongest

relationship with data allocation and content access under the features of Globe

Postpaid Plan. Which means their relationship has a significant impact towards

the satisfaction of Globe Postpaid Plan consumer

5B. Among the three-strategic pricing of Globe postpaid plan, put more

attention for an improvement to value-based pricing. On the weighted

mean scores of the strategic pricing, value-based got the lowest score. Flat-

60
rate and psychological pricing weighted scores range from 2.99-3.03, while

value-based pricing only got 2.87. The researchers suggest formulating a better

value-based pricing to make it at par or even exceed with the scores of flat-rate

and psychological pricing.

Recommended program to enhance Globe Postpaid Plan.

(For recommendation 1A)

61
Table 24. Suggested Data Capacity.

To increase the customer satisfaction on data allocation and content access, the

Globe Postpaid Plan Current Data Allocation and Upgraded Data Allocation &
Content Access Content Access

The Plan 599 1.5 GB Mobile Internet 2 GB Mobile Internet


10 GB GoWatch 15 GB GoWatch
The Plan 799 2.5 GB Mobile Internet 3.5 GB Mobile Internet
10 GB GoWatch 15 GB GoWatch
The Plan 999 4 GB Mobile Internet 5 GB Mobile Internet
10 GB GoWatch 20 GB GoWatch
The Plan 1299 8 GB Mobile Internet 8.5 GB Mobile Internet
10 GB GoWatch 20 GB GoWatch
The Plan 1499 9 GB Mobile Internet 10 GB Mobile Internet
10 GB GoWatch 25 GB GoWatch
The Plan 1799 12 GB Mobile Internet 12 GB Mobile Internet
10 GB GoWatch 25 GB GoWatch
The Plan 1999 12 GB Mobile Internet 18 GB Mobile Internet
10 GB GoWatch 30 GB GoWatch
The Plan 2499 18 GB Mobile Internet 20 GB Mobile Internet
10 GB GoWatch 30 GB GoWatch
researchers recommend upgrading the data allocation at the level presented in table

number 24.

Recommended programs to enhance Globe Postpaid Plan.

(For recommendation 1B)

62
Table 25. Suggested Flat-rate Pricing with Upgraded Data Capacity.

Current Flat-Rate Pricing Suggested Flat-Rate Pricing Upgraded Data Allocation &
Strategy Content Access

The Plan 599 The Plan 590 2 GB Mobile Internet


15 GB GoWatch
The Plan 799 The Plan 790 3.5 GB Mobile Internet
15 GB GoWatch
The Plan 999 The Plan 990 5 GB Mobile Internet
20 GB GoWatch
The Plan 1299 The Plan 1290 8.5 GB Mobile Internet
20 GB GoWatch
The Plan 1499 The Plan 1490 10 GB Mobile Internet
25 GB GoWatch
The Plan 1799 The Plan 1790 12 GB Mobile Internet
25 GB GoWatch
The Plan 1999 The Plan 1990 18 GB Mobile Internet
30 GB GoWatch
The Plan 2499 The Plan 2490 20 GB Mobile Internet
30 GB GoWatch
The researchers suggest decreasing the flat-rate pricing to nine pesos. The nine-

peso deduction will align with the psychological pricing which the researchers are

proposing. The nine-peso deduction will be followed by a considerably increased amount

of data capacity in data allocation and content access. Together with these two proposed

actions, the researchers are expecting to have an increased level of satisfaction of the

consumers to the flat-rate pricing.

63
Figure 4. Area of Globe Telecom Cellular Tower

In order to improve the speed of Globe Telecom, the researchers suggest to boost

Globe Telecom cellular sites and have a major system upgrade for faster transfer of

network connections. The researchers also suggest building more cell towers to

decongest the heavy network traffic.

Recommended program to enhance Globe Postpaid Plan.

(For recommendation 3A)

64
Table 26. Timeline for Globe Telecom.

For the continuous innovation and improvement of Globe Postpaid Plan benefits,

2018 2019 2020 2022 2025

Safeguard Increase the Enhance Globe


Advance To increase the
the security number of cell Telecomresponsible overall customer
of Globe towers to service by
technical upgrade satisfaction of
Postpaid decongest developing a
for Globe Telecom Globe Postpaid
Plan network traffic partnership with
System and users by 15% at
subscribers government
develop a the end of the
sector and other
systematic year 2025
telecomtechnical
companies.
assistance for
Globe Postpaid
subscribers
the researchers recommend the actions presented on the timeline to achieve the

suggested objective for Globe Telecom in the year 2025.

Recommended programs to enhance Globe Postpaid Plan.

(For recommendations 2A, 2B, and, 3B)

65
Table 27. Suggested Psychological Pricing with Upgraded Data Capacity.

Current Psychological Suggested Psychological Upgraded Data Allocation &


Pricing Strategy Pricing Strategy Content Access

The Plan 599 The Plan 590 2 GB Mobile Internet


15 GB GoWatch
The Plan 799 The Plan 790 3.5 GB Mobile Internet
15 GB GoWatch
The Plan 999 The Plan 990 5 GB Mobile Internet
20 GB GoWatch
The Plan 1299 The Plan 1290 8.5 GB Mobile Internet
20 GB GoWatch
The Plan 1499 The Plan 1490 10 GB Mobile Internet
25 GB GoWatch
The Plan 1799 The Plan 1790 12 GB Mobile Internet
25 GB GoWatch
The Plan 1999 The Plan 1990 18 GB Mobile Internet
30 GB GoWatch
The Plan 2499 The Plan 2490 20 GB Mobile Internet
30 GB GoWatch
From the current psychological pricing of Globe, it can be observed that their

postpaid plan prices are only one number away from making it to a whole number. The

researchers are suggesting to put the pricing as far as possible from the whole number

to trigger a higher perceived savings from the consumers. As for putting more data

capacity in data allocation and content access in lined to its corresponding psychological

pricing, the researchers suggest that Globe Telecom needs to be more generous on

giving a higher amount of data allowance.

66
Figure 5. Recommended Discounts and Freebies.

Globe Telecom will put more discount and freebies on their plan packages. The

psychological strategy at work here is greed. Once a customer comes across the offer,

logic gets into the mind of the customer and will mainly focus to purchase in order to get

the free item or take advantage of the discounted value.

67
Figure 6. Visually highlighting the different prices.

To make the new psychological pricing of Globe Postpaid plan work effectively,

the use of psychological trick of changing the font, size and color of the new price is

relevant. This trick triggers a fluency effect and consumers interpret the visual difference

to a larger numeral distinction, according to 2005 research by Keith Coulter and Robin

Coulter. According to that research, simply changing the font, size, and color of the

signage for the current sale price and placing it a little bit away from the previous pricing

will increase the number of purchases, because customers see the new price as cheaper

and a better deal than the previous price.

Recommended programs to enhance Globe Postpaid Plan.

(For recommendations 2A, 4B and, 5B)

68
Current Globe Postpaid Upgraded Data Allocation &
Plans Content Access

The Plan 599 2 GB Mobile Internet


15 GB GoWatch
The Plan 799 3.5 GB Mobile Internet
15 GB GoWatch
The Plan 999 5 GB Mobile Internet
20 GB GoWatch
The Plan 1299 8.5 GB Mobile Internet
20 GB GoWatch
The Plan 1499 10 GB Mobile Internet
25 GB GoWatch
The Plan 1799 12 GB Mobile Internet
25 GB GoWatch
The Plan 1999 18 GB Mobile Internet
30 GB GoWatch
Table 28.
The Plan 2499 20 GB Mobile Internet
30 GB GoWatch
Recommended Data Capacity for Value-Based Pricing.

To increase the perceived value of Globe Postpaid Plan consumers to data

allocation and content access, the researchers recommend increasing the data capacity

of data allocation and content access. This will in return give a high satisfaction of the

consumers that will eventually turn to customer loyalty for Globe Telecom.

69
Plan Plan Plan Plan Plan
Inclusions 590 790 990 1290 1490
Monthly Data 2 GB 3.5 GB 5 GB 8.5 GB 10 GB
Content Access 15 GB 15 GB 20 GB 20 GB 25 GB
w/ free Facebook
Call and Text Unlimited Unlimited Unlimited Unlimited Unlimited
Globe/TM
Shipping FREE FREE FREE FREE FREE
Roaming to 30 texts 30 texts 30 texts 15 mins of call 20 mins of
Mainland US, and 30 texts. call and 50
Canada, U.A.E. and texts.
much more!

Plan Plan Plan


Inclusions 1790 1990 2490
Monthly Data 12 GB 18 GB 20 GB
Content Access 25 GB 30 GB 30 GB
w/ free Facebook
Call and Text Unlimited Unlimited Unlimited
Shipping FREE FREE FREE
Roaming to 30 mins of call and 100 45 mins of call and 200 60 mins of call and 350
Mainland US, texts. texts. texts.
Canada, U.A.E. and
many more!

Table 29. Recommended Plan Package Inclusions for Increased Satisfaction for

Value-Based Pricing.

To increase the perceived value of the consumers to Globe Postpaid Plans, the

researchers recommend these plan package inclusions. The data capacity of monthly

data allocation and content access were increased and the usage for Facebook data is

70
now given for free. Call and Text to Globe/TM were made unlimited to all plan packages

and Globe will also apply free shipping of their postpaid sim to their subscribers. One

major change to these proposed plan packages are the inclusion of roaming as one of

the feature of their postpaid plan. Given all these improvements, the researchers are

expecting for a higher perceived value for the corresponding prices of Globe Postpaid

Plan.

71
References

Alsajjan, B. A. (2014). Satisfaction-trust model: developing customer satisfaction and trust


indices for mobile service providers in the UK. International Review of Management
and Business Research, 3(2), 1088.

Anjum, U., Aftab, J., Sultan, Q., Ahmed, M. (2016). Factors affecting the service quality
and customer satisfaction in telecom industry of Pakistan. International Journal of
Management, Accounting, and Economics, 3(9), 510-511.

Boohene, R., & Agyapong, G. (2011). Analysis of the antecedents of customer loyalty in
the telecommunication industry in Ghana: the case of Vodafone (Ghana). International
Business Research, 4(1), 233.

Brcic, J., & Latham, G. (2016). The effect of priming effects on customer service
satisfaction. Academy of Management Discoveries, 2(4), 392.

Chou, C. (2014). How manufacturing service does perceived value influence customer
satisfaction: an investigation of the global semiconductor industry. International Journal
of Production Research, 52(17), 5044.

Danziger, S., Hadar, L., & Morwitz, V. (2014). Retailer pricing strategy and consumer
choice under price uncertainty. Journal of Consumer Research, 41, 761.

Faith, D. O. & Edwin, A. M. (2014). A review of the effect of pricing strategies on the
purchase of consumer goods. International Journal of Research in Management,
Science & Technology, 2(2), 88-89.

Felipe, J., Estrada, G., & Ramos, N. (2010). An input-output analysis of the Philippine
BPO industry. Asian-Pacific Literature, 22(1), 41-42.

Fritz, M., Schlereth, C., & Figge, S. (2011). Empirical evaluation of fair use flat rate
strategies for mobile internet. Business and Information Systems Engineering, 3, 269.

Gupta, A., Jukic, B., Stahl, D., & Whinston, A. (2011). An analysis of incentives for network
infrastructure investment under different pricing strategies. Information Systems
Research, 22(2), 225-228.

Hanif, M., Hafeez, S., & Riaz, A. (2010). Factors affecting customer satisfaction.
International Research Journal of Finance and Economics, 60, 44-45.

Hansemark O. C., Albinsson M., (2004) Customer satisfaction and retention: the
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Hossain, M. M., & Suchy, N. J. (2013). Influence of customer satisfaction on loyalty: a


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Ishaq, M. I. (2011). A study on the relationship between service quality and customer
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Management Science Letters, 1, 525.

Jamil, J., Nawawi, M., & Ramli, R. (2016). Customer satisfaction model for mobile phone
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Khan, S., & Afsheen, S. (2012). Determinants of customer satisfaction in telecom


industry: a Study of telecom industry Peshawar KPK Pakistan. Journal of Basic and
Applied Scientific Research, 2(12), 12833-12834.

Lee, H. S. (2013). Major moderators influencing the relationships between service quality,
customer satisfaction, and customer loyalty. Asian Social Science, 9(2), 1.

Li, J. (2013). Factors affecting customer satisfaction and customer loyalty towards Belle
Footwear Company in Lanzhou City, Gansu Province of the People's Republic in
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Minh, N. V., & Huu, N. H. (2016). The relationship between service quality, customer
satisfaction, and customer loyalty: an investigation in Vietnamese retail banking sector.
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Nasser, H. A., Salleh, S. B. M., & Gelaidan, H. M. (2012). Factors affecting customer
satisfaction of mobile services in Yemen. American Journal of Economics 2012, 2(7):
171-184. P 172-173.

Ojo, O. (2010). The relationship between service quality and customer satisfaction in the
telecommunication industry: evidence from Nigeria. Broad Research in Accounting,
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Oladepo, O. I., & Abimbola, O. S. (2014). Telecommunication service delivery and


customer satisfaction: a study of telecom subscribers in Ogun State, Nigeria.
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73
Olutokun, W. & Nwonne, S. (2012). Determinants of users choice of mobile service
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towards various mobile phone service providers: an exploratory study in Jodhpur City.
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empirical investigation. European Scientific Journal, 10(13), 355.

Sorescu, A., & Sorescu, S. (2016). Customer satisfaction and long-term stock returns.
Journal of Marketing, 80, 110-111.

74
APPENDIX

San Beda College


College of Arts and Sciences
Department of Marketing Management

Dear Respondents,

Good day. We, students of San Beda Manila, are conducting a marketing

research entitled "The Impact of Globe Postpaid Plans to BPO Employees' Satisfaction:

Basis for a Proposed Strategic Pricing Program," as a requirement in Marketing

Research (MKC04) under Mr. Jojo Villamin.

We would like to ask for your help in providing the necessary data needed for our

study. Rest assured that all your answers would be kept in strict confidentiality.

Thank you very much for your cooperation.

Sincerely yours,

Francheska Cruz

Richmond Gabriel

Gela Piero

75
I. Demographic Profile of the Respondent

Directions: Please check the following items given below.

Name (Optional): ________________________________


Age: 19 years old and below ____
20 25 years old ____
26 30 years old ____
31 35 years old ____
36 40 years old ____
40 years old and above ____
Sex: Male ____
Female ____
Monthly Income: Php20,000 and below ____
Php21,000 - P30,000 ____
Php31,000 - P40,000 ____
Php41,
000 - P50,000 ____
Php50,000 and above ____

II. Globe Postpaid Plans Features on Customer Satisfaction

Directions: Please indicate your perceived level of satisfaction with the following
features of Globe Postpaid Plans using the scale where 4: Very Satisfied, 3:
Somehow Satisfied, 2: Somehow Dissatisfied, and 1: for Very Dissatisfied.

Very Somehow Somehow Very


FEATURES Satisfied Satisfied Dissatisfied Dissatisfied
(4) (3) (2) (1)

1. Call Service

2. SMS Service

3. Data Allocation

4. Content
Access (Netflix,
Spotify, Online
Games)

5. Shipping
III. Globe Postpaid Plans Strategic Pricing on Customer Satisfaction

76
Directions: Please indicate your perceived level of satisfaction with the following
strategic pricing of Globe Postpaid Plans using the scale where 4: Very Satisfied,
3: Somehow Satisfied, 2: Somehow Dissatisfied, and 1: for Very Dissatisfied.

Very Somehow Somehow Very


STRATEGIC Satisfied Satisfied Dissatisfied Dissatisfied
PRICING (4) (3) (2) (1)
1. Flat-rate pricing
(fixed service fee)

2. Psychological
pricing
(Charm pricing)
3. Value-based
pricing
(perceived value
about the price)

IV. Globe Postpaid Plans Benefits on Customer Satisfaction

Directions: Please indicate your perceived level of satisfaction with the following
benefits of Globe Postpaid Plans using the scale where 4: Very Satisfied, 3:
Somehow Satisfied, 2: Somehow Dissatisfied, and 1: for Very Dissatisfied.

Very Somehow Somehow Very


BENEFITS Satisfied Satisfied Dissatisfied Dissatisfied
(4) (3) (2) (1)

1. Reliability

2. Convenience

3. Fast-Speed

4. Entertainment

5. Security

77
78
SAN BEDA COLLEGE
College of Arts and Sciences
Department of Marketing Management
1st Semester AY 2017-2018

LITERATURE REVIEW MATRIX

Section : 3CMC

Names of Students :
Cruz, Francheska Nicole A. Piero, Gela Trisha T.
Gabriel, Don Richmond G.

Working Title :
The Impact of Globe Postpaid Plans to Selected BPO Employees'
Satisfaction: Basis for a Proposed Strategic Pricing Program

SRO1 SRO4
Demogra SRO2 SRO3 Custome
phic Consum r
Strategi
Journal Details Profile of er Satisfact
c
BPO Satisfact ion in
Pricing
Employee ion Telecom
s Industry

The Relationship Between Service


Quality and Customer Satisfaction in
the Telecommunication Industry:
Evidence From Nigeria.
Olu Ojo.
Department of Business
Administration Osun State University
P. M. B. 2008, OkukuOsun State,
Nigeria.
ISSN 2067-8177, Volume 1, Issue 1,
2010

79
A Study on Customer Satisfaction in
Mobile Telecommunication Market by
Using SEM and System Dynamic
Method.
Yuanquan Li, Jiayin Qi, and Huaying
Shu
School of Economics & Management,
Beijing University of Posts &
Telecommunications, Beijing 100876,
P.R. China
e-ISSN: 2278-487X, p-ISSN: 2319-
7668.

Customer Satisfaction Model for


Mobile Phone Service Providers in
Malaysia.
Jastini Mohd Jamil, Mohd Kamal
Mohd Nawawi, Razamin Ramli
School of Quantitative Sciences,
Universiti Utara Malaysia, 06010 UUM
Sintok, Kedah, Malaysia.
ISSN: 2180-1843 e-ISSN: 2289-8131
Vol. 8 No. 8
Customer Satisfaction in Telecom
Sector in Saudi Arabia: An Empirical
Investigation.

Dr. Raj Bahadur Sharma, Assistant


Prof. Department of Accounting,
College of Business Administration
Salman Bin Abdul Aziz University.

ISSN: 1857 7881 (Print) e - ISSN


1857- 7431
Major Moderators Influencing the
Relationships of Service Quality,
Customer Satisfaction and Customer
Loyalty

Hyung Seok Lee.

80
Faculty of Business Administration,
Chungbuk National University,
CheongjuChungbuk, South Korea.
ISSN 1911-2017 E-ISSN 1911-2025

Factors Affecting Customer


Satisfaction.
Muzammil Hanif, Sehrish Hafeez,
Adnan Riaz.
Department of Management Science
Army public college of Management
Sciences Rawalpindi, Pakistan
Lecturer, Department of Business
Administration Allama Iqbal Open
University Islamabad Pakistan
ISSN 1450-2887 Issue 60 (2010)

Analysis of the Antecedents of


Customer Loyalty of
Telecommunication Industry in
Ghana: The Case of Vodafone
(Ghana).

Dr. Rosemond Boohene, Gloria K.Q.


Agyapong.

Department of Management Studies,


School of Business, University of
Cape Coast, Ghana.

ISSN 1913-9004 (Print), ISSN 1913-


9012 (Online)

A Review of The Effect of Pricing


Strategies on The Purchase of
Consumer Goods.
Dudu Oritsematosan Faith, Agwu M.
Edwin.
Covenant University, Ota, Ogun
State, NigeriaSenior Lecturer in
Strategic Management and
Marketing, Covenant University

81
School of Business Ogun State,
Nigeria.
E-ISSN: 2321-3264

Customer Satisfaction and Long-Term


Stock Returns.
Alina Sorescu & Sorin M. Sorescu.
ISSN: 0022-2429 (print) 1547-7185
(electronic)
DOI: 10.1509/jm.16.0214

Determinants of Customer
Satisfaction in Telecom Industry A
Study of Telecom industry Peshawar
KPK Pakistan.
Shahzad Khan, Saima Afsheen.
Lecturer City University of Science
and Information Technology
Peshawar the Pakistan 2MS the
Scholar City University of Science
and I-T Peshawar Pakistan.
ISSN 2090-4304

Influence of Customer Satisfaction on


Loyalty: A Study on Mobile
Telecommunication Industry.
Md. Motaher Hossain and Nusrat
Jahan Suchy.
Institute of Business Administration,
Jahangirnagar University, Savar,
Dhaka, Bangladesh.

ISSN: 1549-3652

How manufacturing service does


perceived value influence customer
satisfaction? An investigation of the
global semiconductor industry.

Chieh-Min Chou.

82
Graduate Institute of Management of
Technology, Feng Chia University,
Taichung, Taiwan, ROC.

http://dx.doi.org/10.1080/00207543.2
014.895065

Retailer Pricing Strategy and


Consumer Choice under Price
Uncertainty.
Shai Danziger, Liat Hadar, Vicki G.
Morwitz
DOI: 10.1086/677313

Telecommunication Service Delivery


and Customer Satisfaction: A Study of
telecom Subscribers in Ogun State,
Nigeria.
Onigbinde Isaac Oladepo (Ph.D.) &
Odunlami Samuel Abimbola (M.Sc.)
Department of Business
Administration, McPherson
University, Seriki Sotayo, P.M.B 2094,
Abeokuta, Nigeria. Department of
Business Administration,
Southwestern University, OkunOwa,
P.M.B 2088, Ijebu Ode, Nigeria.
ISSN: 2052-6393(Print), ISSN: 2052-
6407(Online)

The Effect of Priming Affects on


Customer Service Satisfaction.
Jelena Brcic, Gary Latham.
The university of the Fraser Valley,
University of Toronto.
Online only
http://dx.doi.org/10.5465/amd.2015.0
052

83
The Relationship between Service
Quality, Customer Satisfaction and
Customer Loyalty: An Investigation in
Vietnamese Retail Banking Sector.
Ngo Vu Minh, Nguyen Huan Huu.
ISSN 1804-171X (Print), ISSN 1804-
1728 (On-line)
DOI: 10.7441/joc.2016.02.08

Pricing Strategy and the Formation


and Evolution of Reference Price
Perceptions in New Product
Categories.
Ben Lowe & Frank Alpert.
ISSN: 2322-2474

Consumer Preferences and


Satisfaction towards Various Mobile
Phone Service Providers: An
Exploratory Study in Jodhpur City,
Rajasthan.
Prof. R.C.S. Rajpurohit Dr. M.L.
Vasita.

ISSN : 0973-1466 (off line)ISSN :


0973-9262 (on line)

Satisfaction-Trust Model: Developing


Customer Satisfaction and Trust
Indices for Mobile Service Providers in
the UK.
Bander A. Alsajjan.
Institute of Public Administration P O
Box 205 Riyadh 11141 Saudi Arabia.
ISSN: 2306-9007

An Analysis of Incentives for Network


Infrastructure Investment Under
Different Pricing Strategies.

84
Alok Gupta, Boris Jukic, Dale O. Stahl,
Andrew B. Whinstonissn
E-issn 1526-5536 11 2202 0215

Empirical Evaluation of Fair Use Flat


Rate Strategies for Mobile Internet.
Marcel Fritz, Christian Schlereth,
Stefan Figgehttp
://dx.doi.org/10.4067/S0718-
27242011000100004

A study on the relationship between


service quality and customer
satisfaction: empirical evidence from
Pakistan telecommunication industry.
Muhammad Ishtiaq Ishaqa
doi: 10.5267/j.msl.2011.06.005

Determinants of Users Choice of


Mobile Service Providers in the
Nigerian Telecommunications Market.
W. Olatokun (Ph.D.) & S. Nwonne

ISSN 2006-1781
Factors Affecting Customer
Satisfaction and Customer Loyalty
towards Belle Footwear Company in
Lanzhou City, Gansu Province of the
Peoples Republic of China.
Jiao Li.
ISSN: e-ISSN: 2278-487X, p-ISSN:
2319-7668.

Factors affecting customer


satisfaction in the mobile
telecommunication industry in
Bangladesh.
Md. Hasebur Rahman
DOI:10.3846/bme.2014.06.

85
ISSN: ISSN 2029-7491 / eISSN
2029-6169

A Review of The Effect of Pricing


Strategies on The Purchase of
Consumer Goods.
Dudu Oritsematosan Faith, Agwu M.
Edwin.
Covenant University, Ota, Ogun
State, NigeriaSenior Lecturer in
Strategic Management and
Marketing, Covenant University
School of Business Ogun State,
Nigeria.
E-ISSN: 2321-3264
Customers Preference of Mobile
Phone Service in Ekiti State, Nigeria.

AkekeNiyi Israel, AkinruwaTemitope


Emmanuel and AkekeAdenike Rita

ISSN 2055-0219(Print), ISSN 2055-


0227(online)
Factors Affecting Customer
Satisfaction of Mobile Services in
Yemen.

Hashed Ahmed Nasser. M1,


SalnizaBt Md. Salleh, Hamid
Mahmood Gelaidan.

DOI:
10.5923/j.economics.20120207.03
Factors Affecting the Service Quality
and Customer Satisfaction in
Telecom Industry of Pakistan

Uzma Anjum, Junaid Aftab, Qurrat-ul-


Ain Sultan, Mohammag Ahmed

ISSN 2383-2126 (Online)

86
Knowledge of Business Process
Outsourcing Agents on Sexually
Transmitted Diseases and HIV,
Manila Philippines

Oruga, Myra D., MPH

ISSN 2422-8419

An InputOutput Analysis of the


Philippine BPO Industry

Nedelyn Magtibay-Ramos, Gemma


Estrada, Jesus Felipe

doi: 10.1111/j.1467-
8411.2008.00211.x

87
88
SAN BEDA COLLEGE
College of Arts and Sciences
Department of Marketing Management
1st Semester AY 2017-2018

STATISTICAL TREATMENT OF DATA MATRIX

Section : 3-CMC

Names of Students :
Cruz, Francheska Nicole A. Piero, Gela Trisha T.
Gabriel, Don Richmond G
Working Title : The Impact of Globe Postpaid Plans to Selected BPO
Employees' Satisfaction: Basis for a Proposed Strategic
Pricing Program

Specific Research Statistical


Questionnaire
Objective Formula

Name (Optional):
________________________________

Age:
9 years old and below ____
1. Is there any significant 20 25 years old ____
relationship between the 26 30 years old ____
respondents' level of 31 35 years old ____ Chronbach
satisfaction and their 36 40 years old ____ Alpha
demographic profile in 40 years old and above ____ Frequency
terms of: Weighted
A. Age, Sex: Mean
B. Sex, and Male ____ Percentage
C. Monthly Income. Female ____

Monthly Income:
Php20,000 and below ____
Php21,000 - P30,000 ____
Php31,000 - P40,000 ____
Php41,000 - P50,000 ____
Php50,000 and above ____

89
Please indicate your perceived level of
2. How satisfied are the satisfaction with the following features
BPO employees to the of Globe Postpaid Plans using the scale Cronbach
Alpha
Globe Postpaid Plan where 4: Very Satisfied, 3: Somehow
Frequency
features? Satisfied, 2: Somehow Dissatisfied, 1:
Weighted
A. Call Service, Very Dissatisfied.
Mean
B. SMS Service, Adjectival
C. Data Allocation, 1. Call Service Rating
D. Content Access, and 2. SMS Service
E. Shipping. 3. Data Allocation
4. Content Access
5. Shipping.

3. How satisfied are the Please indicate your perceived level of


BPO employees to the satisfaction with the following strategic Cronbach
Alpha
different strategic pricing pricing of Globe Postpaid Plans using
Frequency
of Globe postpaid plans? the scale where 4: Very Satisfied, 3:
Weighted
A. Flat-Rate Pricing, Somehow Satisfied, 2: Somehow
Mean
B. Psychological Pricing, Dissatisfied, 1: Very Dissatisfied. Adjectival
and Rating
C. Value-Based Pricing. 1. Flat-Rate Pricing
2. Psychological Pricing
3. Value-Based Pricing

Please indicate your perceived level of


4. How satisfied are the satisfaction with the following benefits
BPO employees to the of Globe Postpaid Plans using the scale Cronbach
different benefits of Globe where 4: Very Satisfied, 3: Somehow Alpha
postpaid plans? Satisfied, 2: Somehow Dissatisfied, 1: Frequency
A. Reliability, Very Dissatisfied. Weighted
B. Convenience, Mean
C. Speed, 1. Reliability Adjectival
D. Entertainment, and 2. Convenience Rating
E. Security. 3. Speed
4. Entertainment
5. Security

Hypothesis

H1: There is no
notable difference in the Pearson-r
respondents' level of
customer satisfaction on

90
Globe Postpaid Plans
when grouped according
to demographic profile.

H2: There is no
significant relationship in
respondents level of
satisfaction on Globe
Pearson-r
Postpaid Plan Strategic
Pricing when compared
to Globe Postpaid Plan
Features and Benefits.

Signature over Printed Name of the Statistician/Date

Signature over Printed Name of the Adviser/Date

91
SAN BEDA
P.O. BOX 4457 Manila, Philippines
Tel. (632) 735-6011 to 15 loc. 5129 Fax No. (632) 734-5937

(Date)

(Name of company)
(Address)

RE: Permission to Conduct Research Study

Greetings Mr/Ms (name)

I Don Richmond G. Gabriel in behalf of my research team is writing to request permission to


conduct a research study at your company in partial fulfillment of our requirements in
Marketing research and information system (MKC04) in the Marketing Management program
course at San Beda Manila. We are currently in the process of writing our research study
entitled, The Impact of Globe Postpaid Plans to Selected BPO Employees' Satisfaction: Basis for
a Proposed Strategic Pricing Program.

I am hoping that your office will permit us to recruit BPO employees to complete a 2-page
questionnaire. If approval is then by granted, participants will fill out the survey in their most
convenient time. The survey process will take no longer than 2 minutes. The survey results will
then be collected for the research study, and individual results of this study will remain
confidential and anonymous. Rest assured; the company will not incur any cost nor the
participants upon conducting the survey.

The approval for our request to conduct this study will be greatly appreciated. If you have any
questions and clarifications concerning our request, you may reach me thru my mobile phone
number (0936-956-8638) and email address: [email protected]

Thank you, and we are looking forward to your affirmative response.

Best regards,

Don Richmond G. Gabriel


Research study team leader

92
About the Authors

Francheska Nicole A. Cruz was born in Taguig City and raised by Mr. Ferdinand S. Cruz and

Vicenta A. Cruz. She graduated primary and secondary school at Pasig Catholic College and

currently taking Bachelor of Science in Business Administration major in Marketing Management

and is a consistent deans lister awardee at San Beda College Manila.

Don Richmond G. Gabriel is from the city of Santiago in Isabela. Born on September 28,

1998, and raised by Mr. Eugene T. Gabriel and Mrs. Annie G. Gabriel. He took his primary

education at Infant Jesus Montessori School and secondary education at the University of La

Salette, Incorporated High School both respectively from Santiago City in Isabela. He became the

regional council for Cagayan Valley region for the years 2014-2015 under Philippine Society of

Youth Science Club, and he was the president as well of YES-O Santiago City. He then moved to

Manila to attend his college. At present, he is taking up Bachelor of Science in Business

Administration major in Marketing Management and planning to pursue BS Aviation major in

commercial flying after graduating at San Beda Manila.

Gela Trisha T. Piero was born on the 1st of March, 1998 in Caloocan City, Metro Manila.

She took her primary and secondary education at Notre Dame of Greater Manila and was a

consistent honor roll in her high school career. She is currently taking Bachelor of Science in

Business Administration major in Marketing Management at San Beda Manila and is an active

officer of San Beda Junior Marketing Association San Beda Manilas official marketing

organization.

93
List of Figures and Tables

Chapter 1, page 11. Theoretical Framework 1: Figure 1. American Customer Satisfaction


Index.

Chapter 1, page 12. Theoretical Framework 2: Figure 2. American Customer Satisfaction


Index.

94
Chapter 1, page 14. Figure 3. Conceptual Framework.

Chapter 4, page 65. Figure 4. Area of Globe Telecom Cellular Tower

Chapter 5, page 68. Figure 5. Recommended Discounts and Freebies.

95
Chapter 5, page 69. Figure 6. Visually highlighting the different prices.

Postpaid Plan Features

MyLifestyle Plan
Call Service
MyLifestyle Plan 999 SMS Service

Data Allocation

Content Access

Shipping

Globe protection plan

MyStarter Plan

Call Service
MyStarter Plan 300

MyStarter Plan 500 SMS Service

Data Allocation

Content Access

96
Shipping

MyLifestyle No Lock-Up Plan


Call Service
MyLifestyle No Lock-Up Plan 599

MyLifestyle No Lock-Up Plan 799 SMS Service

MyLifestyle No Lock-Up Plan 999


Data Allocation
MyLifestyle No Lock-Up Plan 1499

MyLifestyle No Lock-Up Plan 2499 Content Access

MyLifestyle No Lock-Up Plan 2999


Shipping

No Lock-UP

MyShare Plan

MyShare Plan 999 Call Service

SMS Service

Data Allocation

Content Access

Shipping

Three sim cards in 1 postpaid plan

ThePLAN SIM-Only

ThePLAN 599
Call Service
ThePLAN 799

97
ThePLAN 999
SMS Service
ThePLAN 1299

Data Allocation

Content Access

Shipping

Chapter 1, page 7. Background of the Study. Table 1. List of Globe Postpaid Plan

Features

The features of Globe Postpaid Plan have fully met


VERY 3.25 4.00 the criteria of their subscriber satisfaction
SATISFACTORY standards. This rating indicates a very high level of
(VS) satisfaction towards Globe Postpaid Plan.

The features of Globe Postpaid Plan have met the


SATISFACTORY 2.50 3.24 criteria of their subscriber satisfaction standards.
(S) This rating indicates a high level of satisfaction
towards Globe Postpaid Plan

UNSATISFACTORY 1.75 2.49 The features of Globe Postpaid Plan did not meet
(US) the criteria of their subscriber satisfaction
standards. This rating indicates a low level of
satisfaction towards Globe Postpaid Plan.

VERY 1.00 1.74 The features of Globe Postpaid Plan did not meet
UNSATISFACTORY all the criteria of their subscriber satisfaction
(VUS) standards. This rating indicates a very low level of
satisfaction towards Globe Postpaid Plan.

Chapter 3. page 37. Table 2. Globe Postpaid Plan Features on Customer Satisfaction.

The strategic pricing of Globe Postpaid Plan has


VERY 3.25 4.00 fully met the criteria of their subscriber satisfaction
SATISFACTORY standards. This rating indicates a very high level of
(VS) satisfaction towards Globe Postpaid Plan.

98
The strategic pricing of Globe Postpaid Plan has
SATISFACTORY 2.50 3.24 met the criteria of their subscriber satisfaction
(S) standards. This rating indicates a high level of
satisfaction towards Globe Postpaid Plan

UNSATISFACTORY 1.75 2.49 The strategic pricing of Globe Postpaid Plan did
(US) not meet the criteria of their subscriber satisfaction
standards. This rating indicates a low level of
satisfaction towards Globe Postpaid Plan.

VERY 1.00 1.74 The strategic pricing of Globe Postpaid Plan did
UNSATISFACTORY not meet all the criteria of their subscriber
(VUS) satisfaction standards. This rating indicates a very
low level of satisfaction towards Globe Postpaid
Plan.

Chapter 3. page 37. Statistical Treatment of Data. Table 3. Globe Postpaid Plan Strategic

Pricing on Customer Satisfaction.

The benefits of Globe Postpaid Plan have fully met


VERY 3.25 4.00 the criteria of their subscriber satisfaction
SATISFACTORY standards. This rating indicates a very high level of
(VS) satisfaction towards Globe Postpaid Plan.

The benefits of Globe Postpaid Plan have met the


SATISFACTORY 2.50 3.24 criteria of their subscriber satisfaction standards.
(S) This rating indicates a high level of satisfaction
towards Globe Postpaid Plan

UNSATISFACTORY 1.75 2.49 The benefits of Globe Postpaid Plan did not meet
(US) the criteria of their subscriber satisfaction
standards. This rating indicates a low level of
satisfaction towards Globe Postpaid Plan.

VERY 1.00 1.74 The benefits of Globe Postpaid Plan did not meet
UNSATISFACTORY all the criteria of their subscriber satisfaction
(VUS) standards. This rating indicates a very low level of
satisfaction towards Globe Postpaid Plan.

Chapter 3. page 38. Statistical Treatment of Data. Table 4. Globe Postpaid Plan Benefits
on Customer Satisfaction.

99
Particulars Frequency Percent
Age
19 years old and below 2 2.0
20 - 25 years old 38 38.0
26 - 30 years old 32 32.0
31 - 35 years old 18 18.0
36 - 40 years old 5 5.0
40 years old and above 5 5.0
TOTAL 100 100.0

Sex Frequency Percent


Male 60 60.0
Female 40 40.0
TOTAL 100 100.0

Monthly Income Frequency Percent


20,000 and below 17 17.0
21,000 - 30,000 27 27.0
31,000 - 40,000 28 28.0
41,000 - 50,000 13 13.0
50,000 and above 15 15.0
TOTAL 100 100.0

Chapter 4, page 42. Table 5. Demographic Profile of the Respondents.

Verbal
Particulars N Minimum Maximum W. Mean Interpretation Rank
Call Service 100 2.00 4.00 3.34 Very Satisfied 2nd
SMS Service 100 2.00 4.00 3.43 Very Satisfied 1st
Data Allocation 100 1.00 4.00 2.63 Satisfied 5th
Content Access 100 1.00 4.00 2.93 Satisfied 4th
Shipping 100 1.00 4.00 2.95 Satisfied 3rd

TOTAL AVERAGE 3.06 SATISFIED


WEIGHTED MEAN

100
Chapter 4, page 44. Table 6. Level of Satisfaction on Globe Postpaid Plans
Features.
Verbal
Particulars N Minimum Maximum W. Mean Interpretation Rank
Flat Rate 100 1.00 4.00 3.03 Satisfied 1st
Psychological 100 1.00 4.00 2.99 Satisfied 2nd
Value-Based 100 1.00 4.00 2.87 Satisfied 3rd

TOTAL AVERAGE 2.96 SATISFIED


WEIGHTED MEAN
Chapter 4, page 45. Table 7. Level of Satisfaction on Globe Postpaid Plans
Strategic Pricing

Verbal
Particulars N Minimum Maximum W. Mean Interpretation Rank
Reliability 100 1.00 4.00 2.97 Satisfied 4th
Convenience 100 1.00 4.00 3.06 Satisfied 2nd
Fast speed 100 1.00 4.00 2.50 Satisfied 5th
Entertainment 100 1.00 4.00 3.00 Satisfied 3rd
Security 100 1.00 4.00 3.08 Satisfied 1st

TOTAL AVERAGE 2.92 SATISFIED


WEIGHTED MEAN

Chapter 4, page 46. Table 8. Level of Satisfaction on Globe Postpaid Plans


Strategic Pricing

SMS Data Content


Call Service Service Allocation Access Shipping
Age Pearson .211* .042 -.027 .027 .095
Correlation
Sig. (2-tailed) .035 .675 .789 .792 .347
Sum of Squares 13.660 2.570 -2.630 2.070 7.050
and Cross-
products
Covariance .138 .026 -.027 .021 .071

101
N 100 100 100 100 100
Interpretation Significant No No No No
Correlation Correlation Correlation Correlation Correlation
TOTAL AVE. 0.348
PEARSON
CORRELATION

TOTAL AVE. 0.528 | No


SIG. (2-TAILED) Correlation
Chapter 4, page 47. Table 9. Level of Relationship on Globe Postpaid Plans
Features to Age

Flat Rate Psychological Value-Based


Age Pearson -.025 .066 .014
Correlation
Sig. (2-tailed) .805 .516 .891
Sum of Squares -2.030 5.010 1.130
and Cross-
products
Covariance -.021 .051 .011

N 100 100 100


Interpretation No Correlation No Correlation No Correlation

TOTAL AVE. 0.018


PEARSON
CORRELATION

TOTAL AVE. 0.712 | No


SIG. (2-TAILED) Correlation

102
Chapter 4, page 48. Table 10. Level of Relationship on Globe Postpaid Plans
Strategic Pricing to Age.

Fast
Reliability Convenience speed Entertainment Security
Age Pearson .048 .066 -.024 .000 .100
Correlation
Sig. (2-tailed) .636 .515 .809 1.000 .324
Sum of Squares 4.030 4.940 -2.500 .000 6.920
and Cross-
products
Covariance .041 .050 -.025 .000 .070

N 100 100 100 100 100


Interpretation No No No No No
Correlation Correlation Correlation Correlation Correlation
TOTAL AVE. 0.038
PEARSON
CORRELATION

TOTAL AVE. 0.528 | No


SIG. (2-TAILED) Correlation

Chapter 4, page 48. Table 11. Level of Relationship on Globe Postpaid Plans Benefits to
Age.

SMS Data Content


Call Service Service Allocation Access Shipping
Sex Pearson .229* .107 .091 .084 .062
Correlation
Sig. (2-tailed) .022 .289 .370 .407 .537
Sum of Squares 6.400 2.800 3.800 2.800 2.000
and Cross-
products

103
Covariance .065 .028 .038 .028 .020

N 100 100 100 100 100


Interpretation Significant No No No No
Correlation Correlation Correlation Correlation Correlation
TOTAL AVE. 0.107
PEARSON
CORRELATION

TOTAL AVE. 0.325 | No


SIG. (2-TAILED) Correlation

Chapter 4, page 49. Table 12. Level of Relationship on Globe Postpaid Plans Features
to Sex.

Flat Rate Psychological Value Based


Sex Pearson .080 .073 .177
Correlation
Sig. (2-tailed) .428 .470 .079
Sum of Squares 2.800 2.400 6.200
and Cross-
products
Covariance .028 .024 .063

N 100 100 100


Interpretation No Correlation No Correlation No Correlation

TOTAL AVE. 0.110


PEARSON
CORRELATION

TOTAL AVE. 0.326 | No


SIG. (2-TAILED) Correlation

104
Chapter 4, page 49. Table 13. Level of Relationship on Globe Postpaid Plans Strategic
Pricing to Sex.

Fast
Reliability Convenience speed Entertainment Security
Sex Pearson .171 .111 .113 .129 -.007
Correlation
Sig. (2-tailed) .089 .271 .261 .201 .947
Sum of Squares 6.200 3.600 5.000 4.000 -.200
and Cross-
products
Covariance .063 .036 .051 .040 -.002

N 100 100 100 100 100


Interpretation No No No No No
Correlation Correlation Correlation Correlation Correlation
TOTAL AVE. 0.103
PEARSON
CORRELATION

TOTAL AVE. 0.354 | No


SIG. (2-TAILED) Correlation

Chapter 4, page 50. Table 14. Level of Relationship on Globe Postpaid Plans Benefits to
Sex.

SMS Data Content


Call Service Service Allocation Access Shipping
Monthly Pearson -.026 -.193 -.115 -.037 .073
Income Correlation

105
Sig. (2-tailed) .800 .054 .254 .713 .472
Sum of Squares -1.880 -13.260 -12.660 -3.260 6.100
and Cross-
products
Covariance -.019 -.134 -.128 -.033 .062

N 100 100 100 100 100


Interpretation No No No No No
Correlation Correlation Correlation Correlation Correlatio
n
TOTAL AVE. -0.089
PEARSON
CORRELATION

TOTAL AVE. 0.459 | No


SIG. (2-TAILED) Correlation

Chapter 4, page 50. Table 15. Level of Relationship on Globe Postpaid Plans Features
to Monthly Income.

Flat Rate Psychological Value Based


Monthly Pearson -.136 .021 -.091
Income Correlation
Sig. (2-tailed) .177 .835 .369
Sum of Squares -12.460 1.820 -8.340
and Cross-
products
Covariance -.126 .018 -.084

N 100 100 100


Interpretation No Correlation No Correlation No Correlation

TOTAL AVE. -0.069


PEARSON
CORRELATION

106
TOTAL AVE. 0.460 | No
SIG. (2-TAILED) Correlation

Chapter 4, page 51. Table 16. Level of Relationship on Globe Postpaid Plans Strategic
Pricing to Monthly Income.

Fast
Reliability Convenience speed Entertainment Security
Monthly Pearson -.226* -.294** -.078 -.099 -.071
Income Correlation
Sig. (2-tailed) .023 .003 .041 .329 .484
Sum of -21.540 -24.920 -9.000 -8.000 -5.560
Squares and
Cross-
products
Covariance -.218 -.252 -.091 -.081 -.056

N 100 100 100 100 100


Interpretation
Significant Strong Significant No No
Correlation Correlation Correlation Correlation Correlation
TOTAL AVE. -0.154
PEARSON
CORRELATI
ON

TOTAL AVE. 0.176 | No


SIG. (2- Correlation
TAILED)

Chapter 4, page 51. Table 17. Level of Relationship on Globe Postpaid Plans Benefits to
Monthly Income.

107
SMS Data Content
Call Service Service Allocation Access Shipping
Flat Pearson .221* .202* .509** .374** .260**
Rate Correlation
Sig. (2-tailed) .027 .043 .000 .000 .009
Sum of Squares 8.980 7.710 31.110 18.210 12.150
and Cross-
products
Covariance .091 .078 .314 .184 .123

N 100 100 100 100 100


Interpretation Significant Significant Strong Strong Strong
Correlation Correlation Correlation Correlation Correlation
TOTAL AVE. 0.313
PEARSON
CORRELATION

TOTAL AVE. 0.016 |


SIG. (2-TAILED) Strong
Correlation

Chapter 4, page 53. Table 18. Level of Relationship on Globe Postpaid Plans Flat Rate
Pricing to Features.

Entertainme
Reliability Convenience Fast speed nt Security
Flat Pearson .588** .548** .491** .355 ** .316**
Rate Correlation
Sig. (2-tailed) .000 .000 .000 .000 .001
Sum of Squares 31.090 25.820 31.500 16.000 13.760
and Cross-
products
Covariance .314 .261 .318 .162 .139

N 100 100 100 100 100

108
Interpretation Strong Strong Strong Strong Strong
Correlation Correlation Correlation Correlation Correlation
TOTAL AVE. 0.460
PEARSON
CORRELATION

TOTAL AVE. 0.0002 |


SIG. (2-TAILED) Strong
Correlation

Chapter 4, page 54. Table 19. Level of Relationship on Globe Postpaid Plans Flat Rate
Pricing to Benefits.

SMS Data Content


Call Service Service Allocation Access Shipping
Psychol Pearson .192 .124 .481** .436** .204*
ogical Correlation
Pricing Sig. (2-tailed) .055 .220 .000 .000 .042
Sum of Squares 7.340 4.430 27.630 19.930 8.950
and Cross-
products
Covariance .074 .045 .279 .201 .090

N 100 100 100 100 100


Interpretation No No Strong Strong Significant
Correlation Correlation Correlation Correlation Correlation
TOTAL AVE. 0.287
PEARSON
CORRELATION

TOTAL AVE.
SIG. (2-TAILED) 0.063 | No
Correlation

Chapter 4, page 54. Table 20. Level of Relationship on Globe Postpaid Plans
Psychological Pricing to Features.

109
Reliability Convenience Fast speed Entertainment Security
Psychol Pearson .482** .385** .456** .448** .417**
ogical Correlation
Pricing Sig. (2-tailed) .000 .000 .000 .000 .000
Sum of Squares 23.970 17.060 27.500 19.000 17.080
and Cross-
products
Covariance .242 .172 .278 .192 .173

N 100 100 100 100 100


Interpretation Strong Strong Strong Strong Strong
Correlation Correlation Correlation Correlation Correlation
TOTAL AVE. 0.438
PEARSON
CORRELATION

TOTAL AVE. 0.000 |


SIG. (2-TAILED) Strong
Correlation

Chapter 4, page 55. Table 21. Level of Relationship on Globe Postpaid Plans
Psychological Pricing to Benefits.

SMS Data Content


Call Service Service Allocation Access Shipping
Value- Pearson .231* .198* .574** .370** .370**
Based Correlation
Pricing Sig. (2-tailed) .021 .048 .000 .000 .000
Sum of Squares 9.420 7.590 35.190 18.090 17.350
and Cross-
products
Covariance .095 .077 .355 .183 .175

110
N 100 100 100 100 100
Interpretation Significant Significant Strong Strong Significant
Correlation Correlation Correlation Correlation Correlation
TOTAL AVE. 0.349
PEARSON
CORRELATION

TOTAL AVE. 0.014|


SIG. (2-TAILED) Strong
Correlation

Chapter 4, page 55. Table 22. Level of Relationship on Globe Postpaid Plans Value-
Based Pricing to Features.

Reliability Convenience Fast speed Entertainment Security


Value- Pearson .577** .481** .520** .287** .298**
Based Correlation
Pricing Sig. (2-tailed) .000 .000 .000 .004 .003
Sum of Squares 30.610 22.780 33.500 13.000 13.040
and Cross-
products
Covariance .309 .230 .338 .131 .132

N 100 100 100 100 100


Interpretation Strong Strong Strong Strong Strong
Correlation Correlation Correlatio Correlation Correlati
n on
TOTAL AVE. 0.433
PEARSON
CORRELATION
0.001 |
TOTAL AVE. Strong
SIG. (2-TAILED) Correlation

Chapter 4, page 56. Table 23. Level of Relationship on Globe Postpaid Plans Value-
Based Pricing to Benefits.

111
Globe Postpaid Plan Current Data Allocation and Upgraded Data Allocation &
Content Access Content Access

The Plan 599 1.5 GB Mobile Internet 2 GB Mobile Internet


10 GB GoWatch 15 GB GoWatch
The Plan 799 2.5 GB Mobile Internet 3.5 GB Mobile Internet
10 GB GoWatch 15 GB GoWatch
The Plan 999 4 GB Mobile Internet 5 GB Mobile Internet
10 GB GoWatch 20 GB GoWatch
The Plan 1299 8 GB Mobile Internet 8.5 GB Mobile Internet
10 GB GoWatch 20 GB GoWatch
The Plan 1499 9 GB Mobile Internet 10 GB Mobile Internet
10 GB GoWatch 25 GB GoWatch
The Plan 1799 12 GB Mobile Internet 12 GB Mobile Internet
10 GB GoWatch 25 GB GoWatch
The Plan 1999 12 GB Mobile Internet 18 GB Mobile Internet
10 GB GoWatch 30 GB GoWatch
The Plan 2499 18 GB Mobile Internet 20 GB Mobile Internet
10 GB GoWatch 30 GB GoWatch

Chapter 5, page 63. Recommendations. Table 24. Suggested Data Capacity.


Current Flat-Rate Pricing Suggested Flat-Rate Pricing Upgraded Data Allocation &
Strategy Content Access

The Plan 599 The Plan 590 2 GB Mobile Internet


15 GB GoWatch
The Plan 799 The Plan 790 3.5 GB Mobile Internet
15 GB GoWatch
The Plan 999 The Plan 990 5 GB Mobile Internet
20 GB GoWatch
The Plan 1299 The Plan 1290 8.5 GB Mobile Internet
20 GB GoWatch
The Plan 1499 The Plan 1490 10 GB Mobile Internet
25 GB GoWatch
The Plan 1799 The Plan 1790 12 GB Mobile Internet
25 GB GoWatch
The Plan 1999 The Plan 1990 18 GB Mobile Internet
30 GB GoWatch
The Plan 2499 The Plan 2490 20 GB Mobile Internet
30 GB GoWatch
Chapter 5, page 64. Recommendations. Table 25. Suggested Psychological
Pricing with Upgraded Data Capacity.
112
2018 2019 2020 2022 2025

Current Psychological Suggested Psychological Upgraded Data Allocation &


Pricing Strategy Pricing Strategy Content Access
Safeguard Increase the
Enhance Globe Advance To increase the
the security number of cell Telecom responsible overall customer
The
of Plan Globe
599 towers The Plan 590 by technical
to
service 2 GBupgrade
Mobile Internet
satisfaction of
Postpaid decongest developing 15 GB
for Globe GoWatch
Telecom Globe Postpaid
The Plan 799 network traffic
Plan The Plan 790
partnership with System3.5 GB Mobile Internet
and users by 15% at
subscribers government 15 GB GoWatch
develop a the end of the
The Plan 999 The Plan
sector and990 5 GB Mobile Internet
other systematic year 2025
telecom 20 GB GoWatch
technical
The Plan 1299 The Plan 1290 assistance
industry 8.5 GB Mobile
for Internet
Globe20 GB GoWatch
Postpaid
The Plan 1499 The Plan 1490 subscribers
10 GB Mobile Internet
Chapter 5, page 66. Recommendations. Table 26. Timeline
25 for
GBGlobe Telecom.
GoWatch
The Plan 1799 The Plan 1790 12 GB Mobile Internet
25 GB GoWatch
The Plan 1999 The Plan 1990 18 GB Mobile Internet
30 GB GoWatch
The Plan 2499 The Plan 2490 20 GB Mobile Internet
30 GB GoWatch

Chapter 5, page 67. Table 27. Suggested Psychological Pricing with


Upgraded Data Capacity.

113
Current Globe Postpaid Upgraded Data Allocation &
Plans Content Access

The Plan 599 2 GB Mobile Internet


15 GB GoWatch
The Plan 799 3.5 GB Mobile Internet
15 GB GoWatch
The Plan 999 5 GB Mobile Internet
20 GB GoWatch
The Plan 1299 8.5 GB Mobile Internet
20 GB GoWatch
The Plan 1499 10 GB Mobile Internet
25 GB GoWatch
The Plan 1799 12 GB Mobile Internet
25 GB GoWatch
The Plan 1999 18 GB Mobile Internet
30 GB GoWatch
The Plan 2499 20 GB Mobile Internet
30 GB GoWatch
Chapter 5, page 70.
Recommendations. Table 28. Recommended Data Capacity for Value-Based Pricing.

Plan Plan Plan Plan Plan


Inclusions 590 790 990 1290 1490
Monthly Data 2 GB 3.5 GB 5 GB 8.5 GB 10 GB
Content Access 15 GB 15 GB 20 GB 20 GB 25 GB
w/ free Facebook
Call and Text Unlimited Unlimited Unlimited Unlimited Unlimited
Globe/TM
Shipping FREE FREE FREE FREE FREE
Roaming to 30 texts 30 texts 30 texts 15 mins of call 20 mins of
Mainland US, and 30 texts. call and 50
Canada, U.A.E. and texts.
many more!

114
Plan Plan Plan
Inclusions 1790 1990 2490
Monthly Data 12 GB 18 GB 20 GB
Content Access 25 GB 30 GB 30 GB
w/ free Facebook
Call and Text Unlimited Unlimited Unlimited
Shipping FREE FREE FREE
Roaming to 30 mins of call and 100 45 mins of call and 200 60 mins of call and 350
Mainland US, texts. texts. texts.
Canada, U.A.E. and
many more!

Chapter 5, page 71. Recommendations. Table 29. Recommended Plan Package


Inclusions for Increased Satisfaction for Value-Based Pricing.

115

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