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Intention behind 3G Adoption in the context of Airtel

Prepared by
Faysal Ahmed
ID:1030187
An Internship Report Presented in Partial Fulfillment of the Requirement for theDegree Bachelor
of Business Administration
INDEPENDENT UNIVERSITY, BANGLADESH
Summer, 2014

Intention behind 3G Adoption in the context of Airtel

Prepared by
Faysal Ahmed
ID:1030187
Has Been Approved
Hanif Mahtab
Senior Lecturer
School of Business
Independent University, Bangladesh

Summer, 2014
Letter of Transmittal
4th September, 2014.
To
Mr. Hanif Mahtab
Senior Lecturer
School of Business
Independent University, Bangladesh.
Subject: Submission of the Internship Report on Intention behind 3G Adoption in the
context of Airtel

Dear Sir,
With great pleasure I submit this internship report on Intention behind 3G Adoption in the
context of Airtel as per your instructions.
Working in Airtel Bangladesh has been an inspiring experience for me. I hope the experience I
have gained will facilitate me a lot in my career ahead. With my limited knowledge, I have tried
my level best to prepare this report.
Your acceptance and appreciation would surely inspire me for future endeavors. I, therefore,
hope that you would be kind enough to accept my internship report.

Sincerely Yours,
______________________
Faysal Ahmed
ID- 1030187

Acknowledgement
First of all I would like to thank my respected supervisor, Mr. Hanif Mahtab for guiding me in
planning and composing the report. He has always been available to provide me with his
supervision and guidance during the entire internship program. Therefore, I express colossal
appreciation for his aid. My most heartfelt gratitude goes to all the employees of Airtel BD Head
Office Road 19, Block E, Banani, Dhaka, BD for their time, patience and effort in grooming me
from a student to a professional person. Special thanks to Mr. SK Mukhopadhyay CFO, Mr. SK
Muhammad Ziaur Rahman - Head Taxation, Mr. Azizul Islam Rana - Taxation Wings, Mr.
Zhanagir Alam- Vat wings , Acnabin CA Firm ( outsource ) - Tax return submission, vat return
Airtel, Tanzima Giash Tanni- Talent Acquisition ( HR Dept. ),Mr. Reza Islam IT Dept for their
enormous support. From the early hours of the morning till the sunset, they have guided me
through various operations of the bank and provided me essential information and support for my
internship report.

Executive Summary
Telecommunication sector has brought revolutionary changes in Bangladesh. This report is based
on the 3 months long internship program that I have successfully completed in Airtel in ----Division. It is a requirement for the BBA program in Independent University Bangladesh. My
faculty advisor and the on-site supervisor helped me choose the topic- Intention behind 3G
Adoption in the context of Airtel for my report. The report aims at assessing the intention of
the user for adopting 3G network.
3G, short for third Generation, is the third generation of mobile telecommunications
technology.3G network provides fast internet speed and allows people to enjoy videos without
streaming and many other facilities such as video calls, video conferencing, mobile TV, mobile
radio and much more. Bangladesh has stepped towards digitalization by introducing 3G network
for the first time via Teletalk, the only state-owned telecom company. In 2013, four more
privately owned telecom companies got the license for 3G through auction including Airtel.
However, Airtel is currently the one of the best mobile operator with a 3G license.
The report is consisting of a brief discussion of peoples behavioral intention to adopt 3G
network of Airtel. Bangladesh is a new born baby in the world of new technology. Hence, 3G is a
new concept for Bangladeshi mobile network user. What behavioral intentions drive them to use
3G, that has been tried to frame in this report.

Table of Contents

Chapter 1: Organizational Overview...............................................................................................1


1.0 Company Profile....................................................................................................................1
1.1 History of the Company.........................................................................................................2
1.2 Organogram of Airtel.............................................................................................................3
1.3 Vision& promises..................................................................................................................5
1.4 Services of Airtel...................................................................................................................5
Chapter 2: My Internship Outcome................................................................................................6
2.1.0 Job Description.......................................................................................................................6
2.1.1 Problems.............................................................................................................................6
2.1.3 Recommendations...............................................................................................................6
Chapter 3: Research Part.................................................................................................................7
3.1.0 Introduction.............................................................................................................................7
3.1.1 Statement of the Problem....................................................................................................7
3.1.2 Purpose of the Study...........................................................................................................8
3.2.0 Literature Review...................................................................................................................8
3.3.0 Conceptual Framework:........................................................................................................11
3.3.1 Research Questions............................................................................................................11
3.3.2 Hypotheses........................................................................................................................12
3.4.0 Methodology.........................................................................................................................12
3.5.0 Results and Findings.........................................................................................................14

3.5.1 Reliability Analysis.......................................................................................................14


3.5.2 Descriptive Statistics....................................................................................................15
3.5.3 Hypotheses Testing.......................................................................................................16
3.5.3.1 Pearsons Correlation Analysis..................................................................................16
3.5.3.2 Regression Analysis...................................................................................................18
3.6 Limitation of the study.........................................................................................................18
4.0 Summary and Conclusion........................................................................................................19
References......................................................................................................................................20
Appendix 1.....................................................................................................................................22
Questionnaire.............................................................................................................................22
Appendix 2.....................................................................................................................................25
Calculations...............................................................................................................................25

Chapter 1: Organizational Overview


1.0 Company Profile
Airtel Bangladesh is a concern of Bharti Airtel Limited, one of Asia's leading integrated telecom
services providers with operations in India, Sri Lanka and Bangladesh. In January 2010, Bharti
Airtel Limited acquired 70% stake in Warid Telecom, Bangladesh, a subsidiary of the UAEbased Abu Dhabi Group. Bharti Airtel is making a fresh investment of USD 300 million to
rapidly expand the operations of Warid Telecom and have management and board control of the
company. This is the largest investment in Bangladesh by an Indian company. Dhabi Group
continues as a strategic partner retaining 30% shareholding and has its nominees on the Board
of the Company. Currently Bharti Airtel Limited is planning to take over the whole company by
2014.
Airtel Bangladesh Limited is one of the fastest growing mobile services providers in Bangladesh
and is a concern of Bharti Airtel Limited, a leading global telecommunications services provider.
The company offers a wide array of innovative mobile services, including voice, value added
services, data and m-commerce products and is focused on expanding its state-of-the-art mobile
network both for coverage and capacity.
With a customer base of more than 8 million, Airtel Bangladesh is the most preferred youth
brand of the country that thrives on excellent data service. And data experience with Airtel will
only be better when the company will introduce its array of 3G services. To make customers
lives easier Airtel Bangladesh has Doorstep Service by which customers can enjoy all kinds of
service at their preferred place. M-Commerce opened a new horizon in money transfer that gives
Airtel customers the freedom to send money to their dear ones instantly from their mobile.
Through M-health, customers can now reach professional doctors over phone 24/7 and get basic
treatment.

1.1 History of the Company


Before starting the journey as the sixth mobile phone operator under the brand of Airtel, in the
year of 2005, Warid Telecom International LLC had to obtain a GSM license from the BTRC
first paying US$ 50 million. Although it had been announced that the company will start the
service within a short period of time, it had to be extended to April 2007. Finally they started the
journey at the end of January with the soft launch along with an arrangement for Test calls and
Complimentary subscription. Later on, by June 2008, the covered more three districts and that
happened to be ended up with the coverage of all 64 districts now. Despite the ongoing profitable
business and triumphant march of the network quality Warid Telecom had been rebranded to
Airtel in December 20, 2010.
In 2010, Bharti Airtel bought out majority share of the company. This is Bharti Airtels second
operation outside of India after launching its mobile services in Sri Lanka in January, 2009.
Bharti Airtel made a fresh investment of US$ 300 million to rapidly expand the operations of
Warid Telecom and have management and board control of the company in 2010. This is the
largest investment in Bangladesh by an Indian company. The new funding is being utilized for
expansion of the network, both for coverage, capacity, and introduction of innovative products
and services. As a result of this additional investment, the overall investment in the company
moved to US$ 1 billion.

1.2 Organogram of Airtel


Chairman

CEO (India)

Director

CEO (international)

Director B2B

Consumer

Director Market

Director

Director HRM

Supply Chain

Director Network

CFO

Customer
experience

Director Legal

Figure 1: Organogram of Airtel

Director IT

The workforce in Airtel Bangladesh Limited combines total of 13 departments with their
respective functions. Combining all the below divisions the management team is build:

Finance
Curstomer
Care

Legal

Supply
Chain
Manage
ment

Corporate
Assurance

Engineer
ing

Corporate
Affairs

Operarion
al
Excellence

IT

Sales

HR

Figure 2: Departments in Airtel Bangladesh Ltd.


During the three months internship period, I worked under the Finance Department mostly in the
Taxation section in the head office of Airtel Bangladesh Limited. I acquired a lot of information
during this time, and polished my professional skills while working there with such
knowledgeable people.
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1.3 Vision& promises


"By 2015 Airtel will be the most loved brand, enriching the lives of millions"
"Enriching lives means putting the customer at the heart of everything we do. We will meet their
needs based on our deep understanding of their ambitions, wherever they are. By having this
focus we will enrich our own lives and those of our other key stakeholders. Only then will we be
thought of as exciting, innovation, on their side and a truly world class company."

1.4 Services of Airtel


There are different categories in the product line and they offer both post paid and pre paid
connection plans. Both the services are very famous and accepted basically by the young
generation. Under these two plans, other services like International Roaming, Value Added
Services and M-Commerce are also important. Some of the Airtel prepaid packages are:

dolbol

foorti

bijoy

kotha

golpo

sobai

hoichoi

Figure 3: Services of Airtel Bangladesh Limited

adda

Chapter 2: My Internship Outcome


2.1.0 Job Description
During the internship program, I have worked in the Airtel Head Office. I was appointed to work
in the Finance Department. I have mostly workd with ACNBIN firm in this department. The
major jobs that I performed in Airtel are as below:
Checking the monthly financial report
Collecting information about the tax paying clients.
Updating the address and other relevant information about the tax payer clients weekly in
the spreadsheet.
Entering required information into the financial accounting system.
Calling tax payer clients for promotional activities.

2.1.1 Problems
I have faced some problems during intern:
1. Workers are too busy at Airtel with lot of work pressure. It was difficult for me to find
necessary information on time.
2. Not all information about the clients was updated. It was difficult to gather information
and update the spreadsheet.

2.1.3 Recommendations
1. Airtel should give their employees more benefit because too much work pressure
sometimes led them to be less productive.
2. Availability of information should be practiced there. It was really hard for me to find any
information as they did not want to reveal their secrecy.

Chapter 3: Research Part


3.1.0 Introduction
Third generation of mobile technology, 3G, has become a sensation around the globe for its
various applications in the mobile phones. 3G mobile technologies can be identified as a
progressive innovation that stands over the continuous development starting from First
Generation. As WAP was introduced to the mobile phones, bringing Internet to the pockets; it
gave rise to high expectations. Hence the 3G is the result of that high expectation. What 3G
brought to the mobile technologies over these previous developments can be listed as mobile
intranet/extranet access, customized infotainment, multimedia messaging service, mobile internet
access, location-based services and rich voice. Mobile intranet/extranet access are a business
service that allows secure access to Local Area Networks (LAN) and Virtual Private Networks
(VPN). Customized infotainment provides device independent access to personalized content.
Multimedia messaging services include communications by text, graphics, images, audio and
video. Mobile internet access provides full access to the Internet, including file transferring, emailing etc. Location based services allow users to identify their location and find other users by
making use of terminals and vehicles. Rich voice service facilitates advanced voice capabilities.
The usage rates of mobile services such as video and multimedia messaging have been increased
together with the change of generations.
In this report the factors that are affecting consumers behavioral intention towards using the 3G
services of Airtel in Bangladesh has been evaluated.

3.1.1 Statement of the Problem


Telecommunication sector of Bangladesh is highly competitive. To survive in this competition
telecom companies have to adopt new technologies to offer new services. 3G network is now the
latest technology that enhances the ease of internet using and video calling with many more
facilities (Mardikyan, Beirolu & Uzmaya, 2012). Airtel has already adopted this 3G network
along with its competitors.

Hence, the problem of the study is to identify the factors which are affecting consumers
behavioral intention towards adopting 3G mobile services of Airtel Bd.

3.1.2 Purpose of the Study


Understanding the reasons for adoption of a new technology is important to both researchers and
industry players. Researches on 3G technology acceptance and adoption provide worthy
information on 3G mobile Internet development and implementation (Mardikyan, Beirolu &
Uzmaya, 2012). It is thus imperative to understand the interplay of factors involved in the
adoption of this technology. The purpose of the study is to identify and evaluate the factors
affecting consumers behavioral intention towards using 3G mobile services of Airtel in
Bangladesh.

3.2.0 Literature Review


Innovation is defined as an idea, practice or object which is perceived as new by the unit of
adoption (Agarwall& Prasad, 1997). A vast literature have searched about the adoption and
diffusion of innovations, developed models to reflect the rates of adoptions and to perceive
consumer behaviors and attitudes towards innovations. Innovation adoption has been addressed
in different disciplines, such as in marketing literature by Mahajan, Muller & Bass (1990), in
organizational theory by Zaltmanet. al. (1973) in social psychology by Ajzen&Fishbein (1980).
Several models have been cited in the adoption research including Theory of Reasoned Action
(Ajzen&Fishbein, 1980), Technology Acceptance Model (Davis et. al., 1989), Theory of Planned
Behavior (Ajzen, 1991) and Diffusion of Innovation Theory (Rogers 1995).
Perceived usefulness
Perceived usefulness, first explored by Technology Acceptance Model by Davis et al. (1989), is
also a critical factor, with the name 'relative advantage', in the Diffusion of Innovations Theory
by Rogers (1995). Reviewing the literature, both perceived usefulness and relative advantage
have been analyzed as a crucial construct affecting the acceptance of the innovations (Lu et al.,
2003; Taylor & Todd, 1995; Moore & Benbasat, 1991; Agarwal & Prasad, 1997). Hence,

considering 3G mobile technology implementation in Turkey, perceived usefulness is considered


as an influential factor directly affecting the acceptance of the technology.
Perceived Ease of Use
Perceived ease of use is also first mentioned in the Technology Acceptance Model. Later, Rogers
(1995) utilized the opposite of the concept 'complexity' in Diffusion of Innovations Theory.
Many studies have proposed that, systems which are perceived to be easier to use and less
complex are more likely to be adopted by users (Moore & Benbasat, 1991; Lu et. al., 2003).
Hence, for the 3G mobile technology acceptance research, perceived ease of use is proposed as
an influential factor directly affecting the adoption of the technology.
Perceived Enjoyment

Igbaria et al. (1996) has defined perceived enjoyment as intrinsic motivation for using the
technologies and proposed that individuals, who find it enjoyable to use microcomputers, apart
from their performance concerns, are more likely to use the technology extensively. Exploring
the motivations to do retail shopping in their research, Childers et. al. (2001) has illustrated the
strong influence of enjoyment on attitudes. Hence, concerning 3G acceptance in Turkey,
perceived enjoyment is considered as an influential factor in adoption of the technology.
Image

Image, which is analyzed under 'relative advantage' attribute in Diffusion of Innovations theory,
is the degree to which adopting an innovation is perceived to be a status symbol and to provide a
high profile (Moore and Benbasat, 1991). Lu et. al. (2003) also utilized 'image' with subjective
norms, and analyzed the social influence which is considered as an influential factor affecting
the acceptance of innovations. Hence, considering 3G mobile technology implementation in
Turkey, image is considered as an effective factor influencing the acceptance of the technology.
Network Effects

Network effects, despite being very crucial on the adoption of communication technology
innovations, were not considered as a distinct variable in the 'Structural Model' developed by
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Pagani (2004). Nevertheless, Pagani and Fine (2008), in their research about the forces
influencing the 3G wireless communication networks, have complemented the research with
different systems thinking approaches. In the study, 'network externalities loop' is developed
which illustrates that additional customer adoption extends the user population, which then gives
rise to increasing returns per user. Consequently total expected benefits to new adoption also
increases and causes further new adoptions. These causes and effects generate a loop inside,
triggering one another. In addition, Pagani (2004) proposed that one feature of perceived
usefulness by adopters is the ability to utilize the services with others; hence network effects
tend to have an essential impact on perceived usefulness, as well.
Considering the adoption of 3G technologies, network effects tend to affect the consumer
intentions, with the logic that users will get additional benefits as the network expands - video
calls, multi-player games, multi-media messaging services will be more available as more people
adopts the technology. Thus, network effects are proposed to be effective on the adoption
intentions of the 3G technologies.
Personal Innovativeness
Agarwal and Prasad (1998) have claimed that individuals, who have high innovativeness, are
more likely to develop positive perceptions towards the innovation in terms of relative
advantage, ease of use; hence are more eager to use it. Earlier research has revealed that personal
characteristics highly affect decisions to adopt or reject innovation (Rogers, 1995). Hung, Ku
and Chang (2003) proposed that personal innovativeness plays an important role in shaping
individual's attitude towards the usage of Wireless Application Protocol (WAP) services.
Besides, Karahanna et al (2002) have deduced that personal innovativeness is one of the
influential factors affecting individual's perceived relative advantage of using Group Support
Systems (GSS). Regarding 3G adoption in Turkey, the innovators and early adopters tend to be
the ones who will adopt the technology before the others do; hence personal innovativeness is
also included in the research as an influential variable on adoption intentions.

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3.3.0 Conceptual Framework:

Independent Variables

Dependent Variables

Perceived Usefulness
Perceived Ease of Use
Intention for 3G Adoption

Perceived Enjoyment
Perceived Image
Personal Innovativeness
Network Effect

Figure 4: Conceptual Framework


Based on the literature review, the dependent variable for this research is consumers intention
3G adoption. Independent variables consist of the variables identified to affect 3G mobile service
adoption such as usefulness of 3G, ease of use of 3G, enjoyment of 3G, image, personal
innovativeness, and network effects. Considering these variables, the following research
questions have been developed:

3.3.1 Research Questions

Does perceived usefulness positively affect 3G mobile services adoption?


Does perceived ease of use positively affect 3G mobile services adoption?
Does perceived enjoyment positively affect 3G mobile services adoption?
Does perceived image positively affect 3G mobile services adoption?
Does personal innovativeness positively affect 3G mobile services adoption?
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Does network effect positively affect 3G mobile services adoption?

3.3.2 Hypotheses
Based on research questions the following hypotheses have been developed:
Hypothesis 1: Perceived usefulness positively affects 3G mobile services adoption.
Hypothesis 2: Perceived ease of use positively affects 3G mobile services adoption
Hypothesis 3: Perceived enjoyment positively affects 3G mobile services adoption
Hypothesis 4: Perceived image positively affects 3G mobile services adoption
Hypothesis 5: Personal innovativeness positively affects 3G mobile services adoption
Hypothesis 6: Network effect positively affects 3G mobile services adoption

3.4.0 Methodology
This is a descriptive research based on empirical studies. The study tries to analyze and evaluate
the factors affecting the intention of using 3G mobile services. It is descriptive as all the primary
data have been collected through structured interview and it has discussed the relationship
between the different factors affecting consumers intention behind using 3G.
Sampling
The primary data has been collected through surveying the users of 3G services of Airtel. A total
of 20 users have been surveyed.
Instruments
The instrument used in this study is a questionnaire consisting of six parts. Each part represents
different factors affecting intention behind adoption of 3G service. The questions are based on a

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5-points Likert scale. The scores are coded as such: 5 for strongly agree, 4 for agree, 3 for neither
agree nor disagree, 2 for disagree and 1 for strongly disagree.
Data Collection
The study is based on quantitative data collection methods and relied on non-probability
sampling (convenience sampling) and structured questionnaire that fit diverse experiences into
predetermined response categories.
Sources of Data
Primary Sources:

Survey
Discussion with users

Secondary Sources

Published official statistics,


Books, articles, periodicals of different domestic and international agencies, websites etc.

Data Analysis
This study is aimed at finding the correlation between the dependent variable, the intention to use
3G services and the independent variable, the factors which are affecting the users intention.
The data collected through primary sources is quantified, verified, and statistically manipulated.
In this study there are more independent variables than dependent variable and the relationship
among those variables is established. The statistical tool used in this research is SPSS. Frequency
analysis is done by focusing on Reliability test (Alpha), Descriptive analysis and Pearsons
Correlation Analysis. Regression analysis is also used to help us understand the extent of change
of the dependent variable with any change in the independent variables.

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3.5.0 Results and Findings


3.5.1 Reliability Analysis
The Cronbach's alpha is used to measure the internal consistency or reliability of the questions in
a survey that form a scale. It helps to determine if the scale is reliable. When the value of
(Cronbachs alpha) is between 0.5 - 0.6 the reliability is accepted whereas a value below 0.5
implies that it is not reliable and the reliability is rejected. A value of above 0.7 means the
reliability is acceptable and very much satisfactory. (Cortina, J.M. 1993)
Reliability of usefulness of 3G
Table 4 shows that the value of for reliability is 0.84, hence the reliability is accepted and very
much satisfactory in terms of calculating usefulness according to the requirements.
Reliability of Ease of use
It is seen from table 5 that, the value for for ease of use is 0.72. Hence, the reliability is
satisfactory and accepted.
Reliability of enjoyment of 3G
Table 6 shows that the value of for enjoyment is 0.66; therefore, the reliability is moderate and
accepted.
Reliability of image
From Table 7, it is seen that the value of is 0.87, therefore the reliability is accepted and is very
satisfactory for measuring the reliability according to the requirement.
Reliability personal innovativeness
Table 8 shows that, the value of is 0.77, therefore the reliability is accepted at a satisfactory
level.

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Reliability of network effects


It is seen from table 9 that, the value for network effect is 0.86; which implies that, the reliability
is very much satisfactory. Hence, the reliability is accepted.

3.5.2 Descriptive Statistics


Variabl

Mean

StdDev

Range

e
Useful

Minimu Maxim
m

um

25

3.60

.79

2.75

2.00

4.75

25

3.61

.61

2.00

2.67

4.67

25

4.17

.54

1.67

3.33

5.00

25

3.87

.64

2.67

2.00

4.67

25

3.48

.86

3.00

1.50

4.50

Image

25

3.44

1.13

3.50

1.50

5.00

Adopt

25

4.20

.58

2.00

3.00

5.00

ness
Ease of
Use
Enjoym
ent
Innova
tivenes
s
Networ
k
Effect

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Table 1: Descriptive Analysis


Table 1 shows the mean score for the six factors and users intention. The highest mean is scored
by enjoyment (4.17) followed by personal innovativeness (3.87) which implies that, the
enjoyment of 3G service is the most attractive feature for customers. Moreover, new updates are
satisfying their personal innovativeness. The least means are scored by network effect (3.48)
followed by image (3.44). This gives an idea that, 3G adoption is not much related to prestige
and network effect does not affect the users much either as most of the operators have not started
offering 3G with full strength and 100% coverage in our country. All the network providers
along with Airtel are still making their network stronger as 3G is now a demand of necessity.
That reflection can be seen from table 1; the overall enthusiasm to adopt 3G by the consumers is
very much satisfactory as the mean is found to be 4.20.

3.5.3 Hypotheses Testing


3.5.3.1 Pearsons Correlation Analysis
The Pearsons Correlation analysis is the most commonly used technique to find the dependence
of two quantitative variables on each other. It represents the linear relationship between two
variables, X and Y. It ranges from +1 to -1, indicating perfectly positive correlation to perfectly
negative correlation. The correlation coefficient value (r) ranging from 0.10 to 0.29 is considered
to be a weak correlation, from 0.30 to 0.49 is considered to be a moderate correlation and from
0.50 to 1.0 is considered to be a strong correlation. (Stigler, Stephen M. 1989)
Variables

Correlation Coefficient

Usefulness

.76

Sig. (2-tailed)

.00

Ease of use

.43

Sig. (2-tailed)

.03

16

Enjoyment

.65

Sig. (2-tailed)

.00

Image

.56

Sig. (2-tailed)

.00

Personal Innovativeness

.49

Sig. (2-tailed)

.01

Network Effects

.55

Sig. (2-tailed)

.00
Table 2: Correlation Analysis

Table 2 shows the summary of the results of the correlation coefficient analysis presented in table
10 in the appendix.
Hypothesis 1: Perceived usefulness positively affects 3G mobile services adoption.
The highest positive correlation is found between the usefulness (r = 0.76) and 3G mobile
services adoption of Airtel could be seen from table 2. The result is significant at 0.00 levels (2tailed). Hence, the hypothesis 1 is accepted.
Hypothesis 2: Perceived ease of use positively affects 3G mobile services adoption.
From table 2 it can be seen that, ease of use has a moderate correlation with 3G mobile services
adoption (r=0.47). The result is significant at 0.03 level (2-tailed). Therefore, the hypothesis is
accepted.
However, this is the lowest correlation among all six factors chosen in this study.
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Hypothesis 3: Perceived enjoyment positively affects 3G mobile services adoption.


A strong correlation is seen between the perceived enjoyment (r = 0.65) and 3G mobile services
adoption of Airtel is seen here. The result is significant at 0.00 level (2-tailed). Hence, hypothesis
3 is accepted.
Hypothesis 4: Perceived image positively affects 3G mobile services adoption.
There is a strong positive correlation between the perceived image (r = 0.56) and 3G mobile
services adoption of Airtel. The result is significant at 0.01 level (2-tailed). Hence, the hypothesis
is accepted.
Hypothesis 5: Personal innovativeness positively affects 3G mobile services adoption.
From table 2 it can be seen that, personal innovativeness has a moderate positive correlation with
3G mobile services adoption (r=0.49).The result is significant at 0.03 level (2-tailed). Therefore,
the hypothesis is accepted.
Hypothesis 6: Network effect positively affects 3G mobile services adoption.
A positive correlation between the network effect (r = 0.55) and 3G mobile services adoption of
Airtel is seen here. The result is significant at 0.00 level (2-tailed). Hence, the hypothesis is
accepted.

3.5.3.2 Regression Analysis


Regression analysis is a statistical process for estimating the relationships among variables. It
focuses on the relationship between a dependent variable and one or more independent variables.
The result of regression analysis, R square and adjusted R square is interpreted as a percentage,
and it tells how much of the variation in the dependent variable can be explained with the
independent variable(s) in a model.
R

R Square

Adjusted R
Square

18

Std. Error of
the Estimate

.82

.67

.56

.38

Table 3: Regression Analysis


In this study, there are six independent variables, i. perceived usefulness of 3G, ease of use of
3G, enjoyment of 3G, image, personal innovativeness, and network effects. The regression result
in table 3 shows that, all the factors combined significantly influence the intention of using 3G.
The adjusted R square is 0.56. Therefore, it can be said that 56% of the variance in intention
behind adopting 3G services can be predicted by the six factors chosen in this study.

3.6 Limitation of the study

Small sample size has been used due to lack of time and opportunity
Bias attitude of participants led to manipulation of data.
Personal barriers were a limitation.

4.0 Summary and Conclusion


The results of this study show that, all the chosen factors for the study are affecting the
consumers intention behind adoption of 3G mobile services of Airtel. According to the
correlation result it is seen that, usefulness of 3G is the dominant determent of intention of using
3G, followed by perceived enjoyment, image, network effect, personal innovativeness and last
but not the least, perceived ease of use. Increased quality of communication and faster speed of
3G network allow users to use internet and other communication services like never before;
though the process of learning some of the features of 3G services (video calling, mobile TV etc)
are a new concept in Bangladesh. Hence, a moderate correlation is observed in case of perceived
ease of use from the Pearsons correlation analysis. Airtel should consider the usefulness and
enjoyment of their 3G service as the success factor for grabbing the attention of 3G users to
sustain in the competitive market of telecommunication. From the descriptive analysis it is seen
that, the highest average score is scored by enjoyment. Therefore, it is an easy conclusion that
Airtel is successful in winning the hearts of 3G users by providing a variety of features to its
customers with 3G networks compared to their competitors. Besides, adopting new technologies
is a trend among the young generations; so they do not hesitate in adopting Airtel 3G networks
19

for its distinctive quality and features. However, a lowest mean average is observed in image.
Every network provider is providing 3G services with quality and innovations. However,
competition among the telecom operators has become highly intensive. So, Airtel should be
creative enough to enhance the intention behind adopting 3G technology among consumers by
offering better services and more variety in order to distinguish themselves from their
competitors.
This study could be researched further to find out the satisfaction level of using 3G services.
Retention of customer group in context of 3G adoption can also be evaluated in the future studies
on 3G.

20

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23

Appendix 1
Questionnaire
Name:
Age:
Contact no.:
Perceived Usefulness

3G mobile
services will
allow me to do
things faster
3G mobile services will increase the quality of communication
Additional services that will be available with 3G are useful for
me
2G/2.5G network is not sufficient enough for high speed internet
usage

Perceived Ease of use

It will be easy
to learn using
24

3G mobile
services.
Using 3G mobile services seems comfortable to me.
Using 3G mobile services will be clear and understandable

Perceived Enjoyment-

Using 3G
mobile
services seems
to be pleasant
3G mobile services excite me
It will be interesting to use 3G mobile services

Image -

People who
use 3G mobile
services will
have more
prestige than
those who do
25

not
Using 3G mobile services will be a status symbol

Personal Innovativeness -

I like to
purchase new
information/co
mmunication
technologies
Among my peers, I am usually the first to try out new
information/communication technologies
In general I am not hesitant to try out new information
technologies

Network Effects

I think my
contacts are
eager to use
3G services
My contacts usually follow the innovations about mobile phones
closely

26

Adoption Intention -

5
I will surely
adopt 3G
mobile
technology

27

Appendix 2
Calculations
RELIABILITY
RELIABILITY /VARIABLES= Faster Communication Service Speed /MODEL=ALPHA.
Table 4
Reliability Statistics
Cronbach's N of Items
Alpha
.84
4
RELIABILITY
RELIABILITY /VARIABLES= Learn Comfortable Understandable /MODEL=ALPHA.
Table 5
Reliability Statistics
Cronbach's N of Items
Alpha
.72
3
RELIABILITY
RELIABILITY /VARIABLES= Pleasant Excite Interesting /MODEL=ALPHA.
Table 6
Reliability Statistics
Cronbach's N of Items
Alpha
.66
3
RELIABILITY
RELIABILITY /VARIABLES= Prestige Status /MODEL=ALPHA.
Table 7
Reliability Statistics
Cronbach's N of Items
Alpha
.87
2
RELIABILITY
RELIABILITY /VARIABLES= New First Hesitant /MODEL=ALPHA.
Table 8
Reliability Statistics
Cronbach's N of Items
Alpha
.77
3
RELIABILITY
RELIABILITY /VARIABLES= Eager Follow /MODEL=ALPHA.
Table 9
Reliability Statistics
Cronbach's N of Items
Alpha
.86
2
CORRELATIONS

28

CORRELATION /VARIABLES = Usefulness EaseofUse Enjoyment Innovativeness


NetworkEffect Image Adopt /PRINT = TWOTAIL SIG.
Table 10
Correlations
Usefuln Easeof Enjoym Innova Networ Image Adopt
ess
Use
ent
tivene kEffect
ss
Usefuln Pearson 1.00
.59
.66
.73
.59
.71
.76
ess
Correlati
on
Sig. (2.00
.00
.00
.00
.00
.00
tailed)
N
25
25
25
25
25
25
25
Easeof Pearson .59
1.00
.61
.60
.62
.48
.43
Use
Correlati
on
Sig. (2- .00
.00
.00
.00
.01
.03
tailed)
N
25
25
25
25
25
25
25
Enjoym Pearson .66
.61
1.00
.65
.53
.50
.65
ent
Correlati
on
Sig. (2- .00
.00
.00
.01
.01
.00
tailed)
N
25
25
25
25
25
25
25
Innovat Pearson .73
.60
.65
1.00
.63
.66
.49
iveness Correlati
on
Sig. (2- .00
.00
.00
.00
.00
.01
tailed)
N
25
25
25
25
25
25
25
Networ Pearson .59
.62
.53
.63
1.00
.59
.55
kEffect Correlati
on
Sig. (2- .00
.00
.01
.00
.00
.00
tailed)
N
25
25
25
25
25
25
25
Image Pearson .71
.48
.50
.66
.59
1.00
.56
Correlati
on
Sig. (2- .00
.01
.01
.00
.00
.00
tailed)
N
25
25
25
25
25
25
25
Adopt Pearson .76
.43
.65
.49
.55
.56
1.00
Correlati
on
Sig. (2- .00
.03
.00
.01
.00
.00
tailed)
N
25
25
25
25
25
25
25

29

DESCRIPTIVES
DESCRIPTIVES /VARIABLES= Usefulness EaseofUse Enjoyment Innovativeness
NetworkEffect Image Adopt /STATISTICS=DEFAULT RANGE.
Table 11
Valid cases = 25; cases with missing value(s) = 0.
Variable N
Mean
StdDev
Range
Minimum Maximum
Usefulnes 25
3.60
.79
2.75
2.00
4.75
s
EaseofUs 25
3.61
.61
2.00
2.67
4.67
e
Enjoymen 25
4.17
.54
1.67
3.33
5.00
t
Innovativ 25
3.87
.64
2.67
2.00
4.67
eness
NetworkE 25
3.48
.86
3.00
1.50
4.50
ffect
Image
25
3.44
1.13
3.50
1.50
5.00
Adopt
25
4.20
.58
2.00
3.00
5.00
REGRESSION
REGRESSION /VARIABLES= Usefulness EaseofUse Enjoyment Innovativeness
NetworkEffect Image /DEPENDENT= Adopt /STATISTICS=COEFF R ANOVA.
Table 12
Model Summary (Adopt)
R
R Square Adjusted Std. Error
R Square of the
Estimate
.82
.67
.56
.38
ANOVA (Adopt)
Sum df
Mean F
Signifi
of
Squar
cance
Squar
e
es
Regressio 5.36
6
.89
6.10
.00
n
Residual 2.64
18
.15
Total
8.00
24
Coefficients (Adopt)
B
Std.
Beta t
Signifi
Error
cance
(Constant) 1.86 .66
.00
2.84
.01
Usefulness .48
.17
.66
2.78
.01
EaseofUse -.16
.19
-.17
-.85
.41
Enjoyment .38
.22
.35
1.75
.10
Innovative -.28
.21
-.31
-1.36 .19
ness
NetworkEff .16
.13
.24
1.21
.24
ect
Image
.03
.11
.06
.31
.76

30

31

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