An Empirical Analysis of Demand for GSM Service: A Case of Students of A. B. U, Zaria-Nigeria

Abstract

This study has attempt an evaluation of the demand for GSM services in the department of economics A, B, U, Zaria. In doing so, it has examined and evaluated the factors that determined the preference and demand for GSM services. This study has collected and analysed data from the primary sources by administering 100 questionnaires through a stratified sampling according the degree level of 100, 200, 300 and 400 levels each with 26.6% respectively with the exception of 300 level which is 20.2% and about 94% responded. The econometric analysis was built on the non-parametric test of chi-square was used to test the statistical significant of the result reported in bi-variate table or cross tabulations. In hypothesis one the calculated value was 39.91% while the tabulated value was 36.4%, we reject null hypothesis and accepted the alternative hypothesis that ''efficiency of network lead to preference of a particular network''. Hypotheses two the calculated value was 18.69% while the tabulated is 27.10%. Therefore, the null hypothesis was accepted showing that '' there is a significant relationship between GSM tariff and demand for GSM services''. While in hypothesis three the calculated value was 21.23% while the tabulated value was 9.49%, the null hypothesis was equally rejected showing that ''efficiency of network determines how students rank the network''. This finding invalidates the demand theory, which says that price is the major determinant of demand. The study finds out that efficiency of network is the major yardstick for measuring (determining) the demand for GSM services by the students. This is to say that price is not really a major determinant of the demand for GSM services among the students, but rather efficiency of the network and choice or preference by the students. We can infer that majority of the students subscribed to MTN due to its network efficiency. The study recommend that Nigerian Communication Commission (NCC) should be more vigilant in enforcing the relevant laws that would motivate the GSM providers to be more effective in service provision as well as improved facilities and services in terms of enhancement of technology that will advance the industry in improving efficiency and effectiveness of GSM service. In conclusion, the purpose of this study is to be able to understand the pattern of demand for GSM and how consumers make preference among the services. This study will also be beneficial to the GSM service operators, GSM service regulators in enforcing there rules and it will go a long way in impacting on the general understand of the preference for GSM service among the consumers.