UNIVERSITY OF GHANA CORPORATE SOCIAL RESPONSIBILITY AS A POSITIONING STRATEGY: EVIDENCE FROM THE GHANAIAN TELECOMMUNICATION INDUSTRY BY NEWMAN NATHANIEL (10363196) THIS THESIS IS SUBMITTED TO THE UNIVERSITY OF GHANA, LEGON IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF MASTER OF PHILOSOPHY IN BUSINESS ADMINISTRATION (MARKETING OPTION) DEGREE JULY, 2014 University of Ghana http://ugspace.ug.edu.gh i DECLARATION I do hereby declare that this work is the result of my own research and has not been presented by anyone for any academic award in this or any other university. All references used in the work have been fully acknowledged. I bear sole responsibility for any shortcomings. …............................................... ………………………….. NATHANIEL NEWMAN DATE (10363196) University of Ghana http://ugspace.ug.edu.gh ii CERTIFICATION I hereby certify that this thesis was supervised in accordance with procedures laid down by the University. ………………………………. ………………………………… PROF. ROBERT E. HINSON DATE (PRINCIPAL SUPERVISOR) ……………………………….. ………………………………….. DR. SAMUEL BUAME DATE (CO-SUPERVISOR) University of Ghana http://ugspace.ug.edu.gh iii DEDICATION I dedicate this work to my parents Mr. and Mrs. Newman, my siblings Renée Newman and Patience Newman and also to my nephews Jeffrey Nana Kofi Frimpong and Alvin Nhyira Eshun. Lastly to a very special someone (E.M). University of Ghana http://ugspace.ug.edu.gh iv ACKNOWLEDGEMENTS First and foremost I want to thank the Almighty God for the wisdom and knowledge He gave me to write this thesis. My gratitude and God‘s blessings also goes to my Family especially my mother for not giving up on me through all the difficult times. Thanks for believing in me mum. I also want to acknowledge my father for his words of encouragement and financial assistance. My next acknowledgement goes to my siblings Renée and Patience Newman for their love and support. To my supervisors for their patience and direction in helping make the work a success. Also to the one person who has stood by me through this process, l truly appreciate you my dear. Finally, I also want to acknowledge my nephews who always put smiles on my face. I could not have done it without you. God bless you all. Thanks University of Ghana http://ugspace.ug.edu.gh v ABSTRACT The telecommunication industry in Ghana has seen a lot of growth over the last decade and with up to six telecommunications companies operating in Ghana currently, there is very little to choose between any two brands. In an overly communicated sector such as the telecom sector, CSR positioning seems to be a better way to differentiate one‘s offering from the rest. With customers more concerned about organisations social responsibility activities and with the telecommunications companies investing huge sums of money in to CSR activities it is imperative to find out if the telecom companies employ CSR (image and ethos) as a positioning strategy. A survey was conducted on the main campus of the University of Ghana Legon in Accra using a non-probability convenience sampling technique. Students who are customers of the telecommunications companies were used for the study and also because they had a better understanding of CSR and positioning issues. Customers were used for the study because positioning is about what is done to the mind of the customer rather than what is done to the product or service also because the customers are the beneficiaries of the CSR activities. The results from the research showed that out of the seven extended generic positioning strategies that were tested (price/quality, image and ethos, attributes, competition, user, application and product class) only two based on the customers perception have been employed by the telecommunications company; these are competition and image and ethos (CSR). However, customers were indifferent about price and quality, application, attribute and product class. User positioning strategy scored the least mean indicating that customers felt that it was not employed. Competition also emerged as the dominant positioning strategy. University of Ghana http://ugspace.ug.edu.gh vi TABLE OF CONTENTS CONTENT PAGE DECLARATION ........................................................................................................................ i CERTIFICATION ..................................................................................................................... ii DEDICATION ..........................................................................................................................iii ACKNOWLEDGEMENTS ...................................................................................................... iv ABSTRACT ............................................................................................................................... v TABLE OF CONTENTS .......................................................................................................... vi LIST OF TABLES ..................................................................................................................... x LIST OF FIGURES ................................................................................................................... x CHAPTER ONE ........................................................................................................................ 1 INTRODUCTION ..................................................................................................................... 1 1.0 Background to the study ...................................................................................................... 1 1.1 Problem statement ................................................................................................................ 5 1.2 Research objectives .............................................................................................................. 9 1.3 Research questions ............................................................................................................... 9 1.4 Significance of the study .................................................................................................... 10 1.5 Chapter disposition ............................................................................................................ 10 CHAPTER TWO ..................................................................................................................... 12 LITERATURE REVIEW ........................................................................................................ 12 2.0 Introduction ........................................................................................................................ 12 2.1 The concept of positioning................................................................................................. 12 2.1.0 Origin of positioning ................................................................................................................ 12 2.1.1 Definitions of positioning ........................................................................................................ 13 2.1.2 Schools of thought ................................................................................................................... 14 University of Ghana http://ugspace.ug.edu.gh vii 2.2 Conceptualizing positioning .............................................................................................. 16 2.3 Brand Concept Image Management (BCM) ...................................................................... 17 2.4 Generic Positioning Model ................................................................................................ 18 2.5 Extension to positioning strategies .................................................................................... 20 2.6 Background to corporate social responsibility (CSR) ....................................................... 21 2.7 Definitions of corporate social responsibility .................................................................... 24 2.8 CSR in developing countries ............................................................................................. 27 2.9 Benefits of corporate social responsibility ......................................................................... 28 2.10 Justification for CSR ........................................................................................................ 30 2.11 Conceptualization of corporate social responsibility ....................................................... 31 2.12 Carroll‘s 1979 conceptualization ..................................................................................... 32 2.12.1 Economic responsibility ......................................................................................................... 33 2.12.2 Legal responsibility ................................................................................................................ 33 2.12.3 Ethical responsibility ............................................................................................................. 34 2.12.4 Discretionary Responsibility .................................................................................................. 34 2.13 Theories of corporate social responsibility ...................................................................... 36 2.13.1 Stakeholder theory ................................................................................................................. 37 2.14 Conceptual framework ..................................................................................................... 41 CHAPTER THREE ................................................................................................................. 45 CONTEXT OF THE STUDY .................................................................................................. 45 3.0 Overview of the telecommunication sector of Ghana........................................................ 45 3.1 Regulatory bodies .............................................................................................................. 46 3.1.1 National Communications Authority ....................................................................................... 46 3.1.2 Vision ....................................................................................................................................... 47 3.1.3 Mission ..................................................................................................................................... 47 3.2.1 Ministry of communication ...................................................................................................... 47 3.2.3 Vision ....................................................................................................................................... 48 3.2.4 Objective .................................................................................................................................. 48 University of Ghana http://ugspace.ug.edu.gh viii 3.2 Overview of the telecom sector ......................................................................................... 48 3.3 Overview of the six telecommunication operators in Ghana ............................................. 50 3.3.1 Tigo .......................................................................................................................................... 50 3.3.2 MTN ......................................................................................................................................... 51 3.3.3 Vodafone .................................................................................................................................. 51 3.3.4 Airtel ........................................................................................................................................ 52 3.3.5 Expresso ................................................................................................................................... 52 3.3.6 Globacom ................................................................................................................................. 53 3.4 Some CSR engagements by the various telecom firms ..................................................... 54 3.4.1 Tigo .......................................................................................................................................... 54 3.4.2 MTN ......................................................................................................................................... 54 3.4.3 Vodafone .................................................................................................................................. 55 3.4.4 Airtel ........................................................................................................................................ 56 3.4.5 Expresso ................................................................................................................................... 57 3.4.6 Glo ........................................................................................................................................... 57 CHAPTER FOUR .................................................................................................................... 58 METHODOLOGY .................................................................................................................. 58 4.0 Introduction ........................................................................................................................ 58 4.1 Unit of analysis .................................................................................................................. 58 4.2 Research approach ............................................................................................................. 59 4.3 Research strategies ............................................................................................................. 60 4.3.1 Survey ...................................................................................................................................... 60 4.4 Sampling design (sample population, sample size and sampling technique) .................... 61 4.5 Method of data collection .................................................................................................. 62 4.7 Ethical considerations ........................................................................................................ 63 4.8 Data collection ................................................................................................................... 64 4.9 Data Analysis ..................................................................................................................... 64 4.10 Conclusion ....................................................................................................................... 65 University of Ghana http://ugspace.ug.edu.gh ix CHAPTER FIVE ..................................................................................................................... 66 ANALYSIS AND DISCUSSION............................................................................................ 66 5.0 Introduction ........................................................................................................................ 66 5.1 Demographic profile of respondents .................................................................................. 66 5.2 Data analysis ...................................................................................................................... 68 5.2.1 Descriptive statistic .................................................................................................................. 68 5.3 Discussion of results .......................................................................................................... 78 5.4 Chapter conclusion............................................................................................................. 81 CHAPTER SIX ........................................................................................................................ 83 SUMMARY, CONCLUSION AND RECOMMENDATIONS .............................................. 83 6.0 Introduction ........................................................................................................................ 83 6.1 Summary of the study ........................................................................................................ 83 6.2 Major finding ..................................................................................................................... 85 6.2.1 To examine if the telecom companies in Ghana have employed CSR (image and ethos) as a positioning strategy. .......................................................................................................................... 85 6.2.2 To examine the different positioning strategies employed by the telecom companies in Ghana. .......................................................................................................................................................... 86 6.2.3 To examine the dominant positioning strategies employed by the telecom companies in Ghana. ............................................................................................................................................... 86 6.3 Recommendations of study ................................................................................................ 87 6.5 Research limitations and practical challenges ................................................................... 89 REFERENCES ........................................................................................................................ 91 INTERNET REFERENCE .................................................................................................... 107 APPENDIX ............................................................................................................................ 109 Appendix 1: Questionnaire .................................................................................................... 109 University of Ghana http://ugspace.ug.edu.gh x LIST OF TABLES Table 3. 1: Telecom Voice Subscription Trends 2014 ............................................................ 49 Table 5. 1 - Shows the demographic characteristics of the participants .................................. 67 Table 5. 2: Descriptive statistics of items ................................................................................ 69 Table 5. 3: Descriptive statistics and reliability of the variables ............................................. 72 Table 5. 4 - Shows the mean of the positioning strategies that telecom companies adopt ...... 73 Table 5. 5 - Shows the mean difference of the positioning strategies that telecom companies adopt ................................................................................................................................ 75 University of Ghana http://ugspace.ug.edu.gh xi LIST OF FIGURES Figure 1: Social responsibility categories ................................................................................ 35 Figure 2: Stakeholder map ....................................................................................................... 40 Figure 3: Conceptual Framework ............................................................................................ 41 Figure 4: Market Share (Voice) ............................................................................................... 50 Figure 5: The dominant positioning strategy adopted by the telecom company ..................... 77 Figure 6: Diagrammatic summary of customers‘ perception of positioning strategies adopted by telecom providers in Ghana ................................................................................... 87 University of Ghana http://ugspace.ug.edu.gh 1 CHAPTER ONE INTRODUCTION 1.0 Background to the study In recent years attention to issues attendant to corporate social responsibility (CSR), has grown (Carroll, 1999; Dawkins & Lewis, 2003; Lantos, 2001; Snider et al., 2003). This, interest for CSR has spread to the marketing literature as well (Anselmsson & Johansson, 2007). The interest in CSR could be said to be arising as a result of the many benefits that an organisation can enjoy by engaging in strategic corporate social responsibility activities. As asserted by McDonald and Rundle-Thiele (2008), the benefits of corporate social responsibility (CSR) for companies, include increased profits, customer loyalty, trust, positive brand attitude and combating negative publicity (Brown & Dacin, 1997; Drumwright, 1996; Maignan & Ferrell, 2001; Murray & Vogel, 1997; Sen & Bhattacharya, 2001; Sen et al., 2006). Additionally, this interest in CSR may also be due to the sanctions and pressures that organisations face from government and host communities for being socially irresponsible. According to Porter and Kramer (2006), ―governments, activists and the media have become adept at holding companies to account for the social consequences of their activities‖ (p. 1). Additionally, Ofori and Hinson (2007) state that, the field of corporate social responsibility has seen considerable growth over the last decade and that ―stakeholder demands on businesses have increased at such a dramatic rate that, given the immensity of these pressures, large and small firms find it increasingly difficult to avoid assuming their corporate social responsibility (CSR)‖ (p. 178) . Du et al. (2007), also explain that, aside moral obligation, the increasing commitment to CSR is also partly driven by the growing sense that consumers, a key stakeholder group, reward University of Ghana http://ugspace.ug.edu.gh 2 good corporate citizens through greater, more sustained patronage (Cone Corporate Citizenship Study, 2004; Lichtenstein, Drumwright, & Braig, 2004; Luo & Bhattacharya, 2006). Furthermore, both marketplace polls (Cone Corporate Citizenship Study, 2004) and a growing body of primarily experimental studies (e.g., Brown & Dacin, 1997; Klein & Dawar, 2004; Sen & Bhattacharya, 2001; Sen, Bhattacharya, & Korschun, 2006) have also established that, all other things being equal, consumers are more likely to buy from businesses that are involved in CSR activities. It is therefore important for marketers to understand how and why their various customer segments are likely to respond to specific CSR initiatives to gain strategic advantage from same (Sen & Bhattacharya, 2001). There is also evidence to suggest that firms may benefit from socially responsible actions in terms of improved employee morale and productivity (Moskowitz, 1972; Parket & Eibert, 1975; Soloman & Hansen, 1985). The benefits of CSR to an organisation may also include positive organisational and brand reputation. According to Polonsky and Jevons (2006), extensive research has shown that there are benefits for firms and brands that are socially responsible (Knox & Maklan, 2004); these benefits including: improved financial performance (Johnson, 2003; Miles & Covin, 2000), building a connection with consumers (Porter & Kramer, 2002), improving product quality (Montillaud-Joyel & Otto, 2004) and some internal benefits such as increase in employee commitment and reduced labour turnover (Dawkins & Lewis, 2003; Maio, 2003), as well as improving society in general (Sirgy, 2002). Hence, it is therefore not surprising that ―CSR is increasingly being recognised by firms as central to core business activities rather than a peripheral consideration associated with philanthropy‖ (Bhattacharya et al., 2004, p. 6). Additionally, connecting socially responsible behaviour with the brand can be important in developing the brand‘s values and personality University of Ghana http://ugspace.ug.edu.gh 3 (Kitchin, 2003), as well as building value in terms of differentiation within the market (Johnson, 2003). Wang (2010) state that, there is literature suggesting that CSR actions can lead to reputational advantages (e.g. Fombrun & Shanley, 1990; Orlitzky et al., 2003). David et al. (2005) also state that, consumers‘ familiarity with companies‘ CSR practices significantly affect the company‘s image in the mind of the consumer and thus affect their purchase intentions. It is perhaps to reap some of these benefits that, telecom operators in Ghana invest considerable sums of money into high-impact CSR activities, mostly in the area of education, health, environment, sports, music, arts and entertainment as noted by Ofori and Hinson (2007). The issue of telecommunications firms in Ghana having an overt CSR focus was also touched upon by Hinson and Kodua (2012), when they asserted that, the firm that won the ―Ghana Club 100 Best Company in CSR‖ during the 2009 edition of the annual awards scheme was a telecommunication company operating in Africa and the Middle East. The authors also stated that, the mission statement of the company which won the award was: ―building shareholders’ value by ensuring maximum customer satisfaction through providing latest telecommunication services, at the most economical rates while meeting its social responsibilities as a good corporate citizen and providing growth prospects for its employees‖ (p. 335). This brings to fore the idea that CSR practices of a firm could have a bearing on the positioning of that firm‘s products and services in the minds of current and potential consumers. Even with all the enumerated benefits of CSR touched on above, Du et al. (2007), explain that, the need to understand the unexamined role of CSR positioning in consumer University of Ghana http://ugspace.ug.edu.gh 4 reactions to a company's CSR actions is emphasized by the unique nature of such a positioning strategy compared to those along more traditional dimensions such as operational excellence, product innovativeness, or customer intimacy. This is because it is ―a company's actions in the CSR domain, as opposed to other, more product-related ones, that truly reveal its ―values‖ (Turban & Greening, 1997), ―soul‖ (Chappell, 1993), or ―character‖ (Brown & Dacin, 1997); comprising the company's identity (Bhattacharya & Sen, 2003, p. 225). Further, a CSR-based identity is not only fundamental and relatively enduring, but also more unique than identities based on innovativeness and engineering expertise by virtue of its characteristics examples of which could include environmental stewardship, sponsorship of social causes and fair labour policies to name a few (Du et al., 2007). Polonsky and Jevons (2006) however indicate that, the implementation of a socially responsible brand is not that simple, direct or straightforward and that, some associated benefits do not necessarily show (Ginsberg & Bloom, 2004; Kitchin, 2003). This according to the authors is based on the myriad of CSR issues and that firms promoting a CSR image must have a deeper understanding into all the aspects of the social issues they want to integrate into their brands (Lewis, 2003). Adding that, these social values also need to be clearly communicated in all internal and external activities (Kitchin, 2003), as well being truthfully reflected in organisational activities (Maio, 2003) as competitors and other stakeholders can take on the organisation for not being truthful. From a positioning point of view, Blankson and Kalafatis (1999) assert that, there is a general agreement in the positioning literature which suggests that, positioning is an essential element of marketing strategy and that just like service, it has no generally accepted definition. Explaining further, the authors assert that, the absence of a generally accepted definition may University of Ghana http://ugspace.ug.edu.gh 5 be due to the non-existence of a clear theoretical basis for positioning (Rigger, 1995) and the straightforwardness given to the meaning of positioning. According to the authors, this development has given rise to different terms associated with the concept (i.e. positioning, position, product positioning, market positioning etc.) but as stated by Arnott (1994), the different terminologies are simply ``several sides of the same coin'' and complement each other. Further, Blankson and Kalafatis (1999) add that, the different terminologies and viewpoints of positioning can be grouped under three underlying issues: conceptual, operational, and strategic. This study therefore focuses on investigating the issue of corporate social responsibility (CSR) as a positioning strategy within the context of an emerging telecommunication industry. 1.1 Problem statement Some studies on CSR positioning have used parameters other than the generic positioning model put forward by Hooley and Saunders (1993). Based on the researcher‘s own views, this may be due to the non-inclusion of CSR as a positioning strategy in that model. However, Blankson (2008) expanded the generic positioning model to include image and ethos which he described as being as a result of an increase in corporate desire to improve its image (Bernstein, 1992), and the attraction of organisations to humane, sympathetic and environmental friendly causes (Worthington & Horne, 1993) and also as a result of growing consumer awareness about ―cause-related marketing‖ (Cobb, 2002). From a general perspective, the discussions of CSR as a positioning strategy has not been examined beyond Blankson‘s (2008) assertions of an extension to the generic positioning strategies propounded by Hooley and Saunders (1993), Hooley et al., (1998) which were University of Ghana http://ugspace.ug.edu.gh 6 followed from discussions by Aaker and Shansby (1982) of these positioning strategies. The study was on bank cards and was conducted in a developed country. In an earlier study, Lopez and Boluda (2006) tabulated social reputation and esteem as one of three general positioning strategies. Explaining the strategy, Lopez and Boluda (2006) assert that, the social reputation and esteem strategy defines the product in terms of general consumer requirements citing (Maggard, 1976; Arnott & Easingwood, 1994). Adding that, in such an instance an appeal is made to the concern for the environment or the rejection of political corruption. They stress that, the approach offers contingent social benefits and positive image for the supplier and the product supplied. The paper examined the generality of a number of positioning alternatives and not necessarily social reputation and esteem as a positioning strategy or a survey against other positioning strategies. In the Maggard (1976) paper, the author was simply revisiting thoughts about positioning as an emerging trend in marketing. Maggard (1976) used the term positioning for social accountability. He asserts that, manufactures of consumer products must be well informed about the movement toward consumer protection, a development which the author asserts that will definitely continue into the future. Further, he explains that, taking a social accountability stance is one to be coveted in today‘s market, concluding that a lot of organizations through their promotional planning, are trying hard to project the image of good citizenship. As mentioned earlier, the paper was not conducting a survey in to positioning strategies or even social accountability as a positioning strategy. Blankson and Crawford (2012) also assert that an in-depth review of the services marketing literature show concern among managers, not only of the absence of empirically derived positioning strategies which can be used as yardsticks, but also at the lack of thorough University of Ghana http://ugspace.ug.edu.gh 7 research into actual positioning practices in the services sector (Hooley et al., 2004). The authors further alluded to the lack of grounded theory accompanied by normative guidelines citing (Pollay, 1985; Piercy, 2005), and also assert that, managers are less informed in the application of positioning strategies than they might otherwise be (Piercy, 2005). Further checks through literature shows that few studies have been conducted on CSR and positioning (Anselmsson & Johansson, 2007; Du et al., 2007). The findings from Anselmsson and Johansson (2007) point to three general attitude-based dimensions for CSR positioning. The authors identified that, retail brands can indeed in relation to leading national brands, build a CSR image. Additionally, the CSR dimension of greatest impact on overall CSR image is product responsibility, whereas human responsibility influences customer purchase intentions the most. Further, environmental responsibility, perhaps the most commonly used CSR dimension, is in this study recognised to exert the least impact on both overall CSR image and on purchase intentions. The study was on grocery brands and was limited to Sweden. The authors also stated that, one industry that has received major attention with regards to CSR related issues is the grocery industry (e.g. Adams, 1993; Hughes, 1995; Jones et al., 2005; Klein & Dawar, 2004; Ness, 1992; Pearce, 1999; Piacentini et al., 2000). Du et al. (2007) found that there are several advantages that can accrue to a brand that is positioned on CSR over those that, while engaging in CSR, are positioned on other traditional, product specific dimensions such as quality. The authors went on to explain that, consumers are not only more aware of what the CSR brand is doing in terms of social initiatives but also make more favourable inferences about why the brand is doing so. This is not only reflected, as expected, in stronger beliefs that the brand is socially responsible but can also spill over, positively, to consumers' beliefs about the brand's performance on dimensions unrelated to CSR (e.g., beliefs about corporate ability; Brown & Dacin, 1997) (p. University of Ghana http://ugspace.ug.edu.gh 8 225). This study was also done in the food sector on three brands of yogurt and also in a developed country (Du et al. 2007). Blankson and Kalafatis (2007) asserted that over the years, much has been written in the area of service positioning (see for example, Lovelock, 1983; Easingwood & Mahajan, 1989; Dibb & Simkin, 1991; Fisher, 1991; Arnott, 1992, 1993, 1994; Young, 1993; Arnott & Easingwood, 1994; Javalgi et al., 1995; Kara et al., 1996). However, due to the special nature of services compared to physical goods, not only are services difficult for consumers to compare with competing services (Donnelly et al., 1985 cited in Walker et al., 1996), but they pose challenges in their positioning (Fisher, 1991; Zeithaml & Bitner, 1996; Bitner, 1997) by marketing managers. The authors further stated that, some reporters have claimed that despite the inherent differences between physical goods and services (Zeithaml & Bitner, 1996; Bitner, 1997), there are overlaps between services and physical goods (Baker, 1981; Levitt, 1981; Middleton, 1983) ―which means that there is no compelling reason to adopt different positioning strategies in services‖ (see, Wyckham et al., 1975; Buttle, 1986) (Blankson & Kalafatis, 2007, p. 236). Against this background, and also on the basis of observations by Mahmoud and Hinson (2012) that, a firm in the service sector, such as the telecommunication industry, can hardly differentiate itself on the basis of the products or services making it extremely difficult for achieving competitive advantage based on product-only strategies, this thesis proposes to use the extended generic positioning model proposed by Blankson (2008) and test it in the telecom sector of a developing economy context (Ghana) seeing that CSR practice within least developed countries is fairly underdeveloped (Ofori & Hinson, 2007) and also assertions made by Muller and Kolk (2008) that, CSR is an emerging concept in many developing University of Ghana http://ugspace.ug.edu.gh 9 countries. This study is therefore positioned to fill the gap in literature on insights into CSR and positioning research in developing economies; and develop an understanding from customers in a less developed country on CSR as a positioning strategy of telecom companies in Ghana. 1.2 Research objectives The main objective of this study is to shed light on the concept of CSR as a positioning tool based on views from customers of telecommunication companies. To do this, the following are listed as the specific objectives of the research: 1. To examine if the telecom companies in Ghana have employed CSR (image and ethos) as a positioning strategy. 2. To examine the different positioning strategies employed by the telecom companies in Ghana. 3. To examine the dominant positioning strategies employed by the telecom companies in Ghana. 1.3 Research questions 1. Have the telecom companies engaged in CSR as a positioning strategy? 2. What are the different positioning strategies within the extended generic positioning model that have been employed by the telecom companies? 3. Which of the positioning strategies is dominantly employed by the telecom companies? University of Ghana http://ugspace.ug.edu.gh 10 1.4 Significance of the study The study will contribute to the scarce knowledge of CSR practice in Ghana and Africa for that matter. This means that it will serve as a policy and strategy guide to institutions in both the public and private sector. Other specific significances are that, the study has the potential to assist in the identification and improvement of the corporate social responsibility orientation of telecommunication companies operating in Ghana. The study will also serve as a guide to any new telecommunication companies seeking to enter the Ghanaian market in understanding the role of corporate social responsibility in the positioning of brands. Additionally, it will help marketing or sustainability managers in charge of corporate social responsibility in organizations to conceptualize and develop appropriate corporate social responsibility activities for their firms. Finally this thesis will assist in developing a better understanding of the concept of positioning in a Ghanaian context and serve as a reference for any future studies to be conducted in this area. 1.5 Chapter disposition The study is grouped into six different chapters. Chapter one consists of the background to the study, the research problem, aims and objectives of the study, the significance of the study and finally the chapter disposition. The second chapter critically reviews literature on corporate social responsibility, positioning and positioning strategy. Also, a theory underpinning CSR practice is discussed. Finally, a conceptual framework is developed to explain the discussions put forward by the researcher in the study. Chapter three is the context of the study and assists in contextualizing the study. An overview of the telecommunications industry in Ghana is presented and also a brief discussion on the six telecom companies is presented, based on industry information from the telecommunications sector and regulatory authorities. The fourth chapter details the research methodology used University of Ghana http://ugspace.ug.edu.gh 11 in the research. It was made up of the research design and data collection procedures employed in the study. Data preparation procedures and analytical approaches and tool that are used in this thesis are also explained in this chapter. The fifth chapter showcases the presentation and discussions of the study findings. The sixth chapter highlights the study conclusions and make recommendations. University of Ghana http://ugspace.ug.edu.gh 12 CHAPTER TWO LITERATURE REVIEW 2.0 Introduction This chapter focuses on the theoretical underpinnings of the study. In view of the objectives and theoretical parameters of the study, the chapter discusses the concept of positioning, definitions, conceptualizing positioning, the brand concept image management and the generic positioning model. Next, a review of extant literature on corporate social responsibility, definitions, CSR in developing countries, some justifications and benefits, major theories that can be used to explain the concept as well as the conceptualisation of corporate social responsibility. 2.1 The concept of positioning 2.1.0 Origin of positioning Blankson (2001) asserts that, the source of the term positioning is unclear (Alpert & Gatty, 1969) but agrees with Nylen (1990) who suggests that positioning dates back to the 1940‘s from studying marketing mix. The term is seen as relatively new (Ries & Trout, 1986; Trout, 1996; Kotler, 1997) and emanated from market segmentation, targeting and market structure changes during the 1960‘s and the early 1970‘s (Myers & Tauber, 1977; Sekhar, 1989). Ries and Trout (1972 cited in Smith & Lusch, 1776) suggest that positioning is rooted in the packaged goods field where the concept was termed product positioning. For Annott (1994), positioning may have emerged from measurement of consumer perceptions and ―perceptual mappings‖ studies. Considering the different opinions about the origin of positioning, it is not surprising that its definition also has several sides to it. University of Ghana http://ugspace.ug.edu.gh 13 2.1.1 Definitions of positioning According to Blankson (2001), there isn‘t a generally accepted definition for positioning and that it could be attributed to the absence of a clear theoretical stance on the concept (Rigger, 1995). The author also added that, there is a general agreement in the literature suggesting that, positioning is a fundamental element of marketing strategy although it can be looked at from a conceptual, practical or strategic point of view. Arnott (1992) asserts that, the term positioning is the deliberate proactive, iterative process of defining, measuring, modifying and monitoring consumer perceptions of a marketable object. According to Blankson (2008), this definition includes both strategic and applied perspectives of positioning. For Ries and Trout (1986), positioning is not what is done to the product or service, but rather what is done to the mind of the prospect (i.e. potential buyer) and went on to state that fundamentally, the essence is to position the offering in the mind of the consumer, and that, ―positioning shifts the emphasis of marketing from the product to the battle for your mind‖ (cited in Blankson, 2008, p. 1). Kotler (1997) also defines positioning as the process of designing the company‘s product or services and image based on consumers‘ perceptions relative to that of competitors. Hassan and Craft (2012) also assert that, the term ―positioning‖ is ―often used to refer to the firm‘s decision to determine the place that its brand and corporate image occupy in a given market including the type of benefits to be stressed and the type of segments to be targeted‖ (p. 345). University of Ghana http://ugspace.ug.edu.gh 14 Sekhar (1989) defines positioning as a diagnostic tool which gives insight into newer areas of product development and the gaps in the market which could be exploited to a marketer‘s advantage by product planning and understanding customer needs. According to Blankson (2001), this definition supports advocates who see management‘s effort in the creation of a desired place in the market as positioning. Yip (1997) also states that positioning represents the company‘s overall capability of competing in the market place. From the above definitions, it is clear that positioning aims at establishing a desirable image on customers. That, when an organization decides to engage in positioning strategies it aims at aligning its product or organization to be in sync with consumers‘ aspirations. It is also clear that from the onset of a positioning strategy, the organization has the consumer in mind as to how the consumer will perceive the product or the organization. In line with this study, Kotler‘s (1997) definition encapsulates the discourse. It talks about product or service as well as image which is based on consumers‘ perception. The fact that it also talks about the perception being relative to that of competitors really draws in every aspect of positioning. 2.1.2 Schools of thought According to Blankson (2001), there are two schools of thought on the concept of positioning. Citing Muhlbacher et al. (1994), he explains that, the authors assert that the first school of thought sees positioning as either embedded within the framework of issues concerned with the marketing mix or associated with strategic decision making. Explaining further, Muhlbacher et al. (1994) contend that, proponents of the first school of thought associate positioning largely with the communication elements of the marketing mix. To University of Ghana http://ugspace.ug.edu.gh 15 them, positioning is seen as a powerful tool in ―competitive warfare‖ (see Ries & Trout, 1972, 1986; Trout & Ries, 1972a, 1972b; Trout, 1996). The second school of thought according to Muhlbacher et al. (1994) sees positioning as an aggressive strategy of adjusting customer beliefs about the benefits and qualities of a product or service. The authors explain that, adherents of this school of thought associate positioning with product policy with respect to the selection of particular product features to develop or to emphasise (see Sekhar, 1989; Payne & Clark, 1995, quoted in Glynn & Barnes, 1995). However, a number of authors, including Hooley and Saunders (1993), Dibb et al. (1997), and Hooley et al. (1998) assert that the concept of positioning is one that unites the entire company‘s deliberations in an attempt to change consumers‘ perceptions. To say it differently, positioning can be seen as a triangular marketing deliberation involving customers, the company and its competitors. Contributing to this discourse, Kotler (1997) explains that, inferences can be drawn on two perspectives of positioning that complement each other: consumer‘s perspective, and management and organisational actions. According to Blankson and Crawford (2012), an organization‘s competitive edge in the long run stems partly from its positioning activities (citing Porter, 1996; Hooley et al., 2001). The authors further explain that, all other things being equal, assessing how effective an offering‘s position is in the marketplace demands an identification of exactly what positioning strategy or strategies are employed and whether and to what extent the selected strategy or strategies actually impact performance. Hooley et al. (1998) also suggest that, to understand the relationship between positioning and added value, a number of positioning dimensions including (price positioning, technical University of Ghana http://ugspace.ug.edu.gh 16 quality positioning, service positioning, innovative positioning and customized positioning) can be pursued to reflect added value for consumers and ultimately achieve desired market position. But generally how has positioning been conceptualized? 2.2 Conceptualizing positioning Blankson and Kalafatis (2007, p.79), explain that, review of literature shows an increasing attention and activities associated with the concept of positioning citing (Aaker & Shansby, 1982; Alden, Steenkamp & Batra, 1999; Crawford, 1985; Dillon, Domzal, & Madden, 1986; Hooley & Greenley, 2005; Pechmann & Ratneshwar, 1991; Prince, 1990) and that the subject is seen as one of the important features of modern marketing management (Hooley, Saunders, & Piercy, 1998; Kotler, 2000; Porter, 1996) and the basis for formulating marketing communications plans (Fill, 1999; Ries &Trout, 1986; Rossiter & Percy, 1997). Blankson et al. (2008) also assert that, positioning is conceptualized as a complex multidimensional construct that attempts to positively adjust the tangible characteristics of the offering and the intangible perceptions of the offering in the marketplace (p. 107). According to Arnott (1992), the usage of positioning strategies includes some related activities such as defining the dimensions of a particular perceptual space that sufficiently characterizes the target audience's perceptions; measuring objects locations within that space and changing actual characteristics of the object and perceptions of the target audience through marketing communications strategies (cited in Blankson & Kalafatis, 2007). Blankson (2001) also assert that, review of the extant literature points to only two formally expressed strategically based conceptual positioning frameworks. The Brand Concept Image Management (BCM) model by Park et al. (1986) and the Generic Positioning Framework University of Ghana http://ugspace.ug.edu.gh 17 (GPF) propounded by Hooley and Saunders (1993) and revisited by Hooley et al., (1998). According to the author, extant literature shows that little credibility can be given to the assertions by some authors citing (Roy & Nicolich, 1980; Johar & Sirgy, 1989; Johar, 1998; Kalar & Goodstein, 1998) that their work represents positioning models. Blankson (2001) further explains that, some works can best be said to be a loosely constructed framework (see Johar & Sirgy, 1989) or at worse as misinterpretation of positioning altogether (see Roy & Nicolich, 1980; Kalar & Goodstein, 1998). He further explain that in a study done by Doyle and Saunders (1985) which sought to propound a product-positioning model, lacked the normative guidelines and offered no clearly defined positioning strategies. This thesis therefore proceeds to discuss both the brand concept image management model and the generic positioning framework proposed by Park et al (1986) and Hooley and Saunders (1993). 2.3 Brand Concept Image Management (BCM) Park et al. (1986) assert that, the brand concept is derived from basic consumer needs. Satisfaction of these needs leads to three broad positioning objectives: functional, symbolic and experiential. The authors assert that when a brand concept is selected before entering a market, it serves as the basis for making positioning decisions that influence the brand position. Once the brand concept is selected it is managed systematically over three key life cycle stages: introduction, elaboration and fortification. According to Blankson (2001), the limitation to this model includes: a) It does not provide the means to operationalize it. b) It does not provide the means by which a product/service’s varying characteristics and its position in the market with regard to that of competitors can be managed (Sekhar, 1989) University of Ghana http://ugspace.ug.edu.gh 18 c) It does not give an indication of the broad management/organisational positioning aim (Hooley & Saunders, 1993) Blankson (2001) however assert that in a work by Bhat and Reddy (1998), they partially operationalized two (functional and symbolic) out of the three positioning objectives in the BCM. 2.4 Generic Positioning Model According to Blankson (2008), Hooley and Saunders (1993) assert that a firm can position itself on the basis of four key generic positions: (consolidation, latent position, deposition, and membership). For each position, the firm can follow six different positioning strategies namely (attributes, price/quality, competition, application, user, and product class). Within a particular position, there are explicit marketing communication tactics and other promotional efforts used to project the offerings‘ positioning to a targeted market. Blankson (2008) also explain that, positioning improves brands‘ ability to establish a strong identity in the minds of consumers regardless of the continuous communications coming from other competing products/services citing Hooley and Saunders (1993). Additionally, the GPF draws upon the work done by Aaker and Shansby (1982) which generally explains the tactics used by organisations to communicate the positions of their goods/services. The idea is that, successful offerings ensure to sustain their positions over long periods of time and thus establish strong identity. University of Ghana http://ugspace.ug.edu.gh 19 Blankson (2008) further assert that, review of the generic position framework indicates that the generic market positions seem to be an adaptation of the life cycle stages concept citing (Kermanshah, 1997) and more specifically, the product life cycle concept by Kotler (1994). The author identified the following as limitations to the generic positioning framework: a) The framework emphasises the management of the varying characteristics of the product/service without any indication of brand management; b) The generic market positions in GPF begin with a position which emphasises leadership in the market rather than one which should nurture a new product/service; c) The framework does not offer when and how the management of products/services may alter from one generic market position to the other; d) There is no indication of a generic market position earmarked for struggling or near extinction products. Consequently, the issue of re-positioning is overlooked; and e) Apart from lack of any indication of the overall management/organization positioning aim (Kotler, 2000), GPF provides no indication of how it can actually be operated i.e., applied in the marketplace. In other words, one can assert that as the positioning strategies are conceptually proposed, it may be problematic to assume their applicability. University of Ghana http://ugspace.ug.edu.gh 20 The author concluded by stating that, while Hooley et al., (1998) provide the theoretical viewpoint about positioning, their work lacks empirical assessment of the offerings‘ market positions and their strategies. In view of this, Blankson (2008) went on to say that, he agrees with Engel et al., (1968) and Jacoby (1978) who suggest that it is important for marketing scholars to adapt existing models, definitions, adding that adapting and extending existing models can provide further insights into marketing phenomenon. The author then goes ahead to propose the adaptation and extension of Hooley et al.’s (1998) generic positioning framework. 2.5 Extension to positioning strategies Blankson (2008) assert that, a seventh strategy called organisational "image/ethos" is proposed and added to the positioning strategies. The author explains that as a result of the growing importance associated with the improvement in better corporate image (Bernstein, 1992), and the increase in company affinity to humanitarian, sympathetic and environmental friendly causes (Worthington & Horne, 1993), and the growing consumer awareness about ―cause-related marketing‖ (Cobb, 2002), several organisations are trying very hard to differentiate themselves along the lines of good external image, ethos and good citizenry (Guerrera & Firn, 2001; Cobb, 2002; The Economist, 2008). For the purposes of this research, the researcher will include Blankson‘s (2008) extension of the generic positioning framework of image and ethos since his explanation aligns with the concept of corporate social responsibility and also checks through literature by the researcher shows that Blankson (2008) expanded the generic positioning strategies to include image and ethos which had not been done prior to that. This positioning strategy (image and ethos) will University of Ghana http://ugspace.ug.edu.gh 21 be used to determine if the telecommunications companies operating in Ghana have employed image and ethos (CSR) as a positioning strategy. As Bhattacharya and Sen (2004) assert, there are companies that have "excelled in positioned themselves on the CSR platform" (p.14). On the issue of the lack of operational guidelines for the generic positioning model, Blankson (2008) explains that, discussions with experts in the study setting and academics with indepth knowledge in research methodology led him to toe the line of Sekeran‘s (2000). Thus, for each generic positioning strategy, a statement was made and respondents evaluated each statement‘s applicability in explaining their perceptions of the positioning of the plastic card brands. Haven narrowed the discussions down to the inclusion of image and ethos as a positioning strategy which aligns with the concept of corporate social responsibility, the next line of discussions will focus of CSR. 2.6 Background to corporate social responsibility (CSR) Over the last decade, the number of companies with socially responsible programmes have increased considerably (Snider et al., 2003) making it seem as if corporate social responsibility has only now been discovered. However, Asongu (2007a) assert that, ―as early as the 1920s, discussions about the social responsibilities of business had evolved into what could be recognized as the beginnings of the ―modern‖ CSR initiative‖ (p. 30). Maignan (2001) explains that, Bowen (1953) is credited for being the first scholar to write on corporate responsibilities. Claiming that, this initial publication heralded countless number of literature on the nature of corporate social responsibilities (e.g Ackerman & Bauer, 1976; Davis, 1973; Eells & Walton, 1961; Mason, 1960; McGuire, 1963). University of Ghana http://ugspace.ug.edu.gh 22 Currently, Corporate Social Responsibility (CSR) has become an important topic for economy and research (Klein & Dawar, 2004; Marin & Ruiz, 2007; Melé, 2006). According to Hinson and Ndhlovu (2011), corporations have evolved from the old thinking that they exist solely for the purpose of profit making to the new model that they, as entities shoulder certain responsibilities that go beyond corporate profit maximisation. Chahal and Sharma (2006) also assert that, CSR is now an obligation of firms and in some instance has become a ―license to operate‖ (Schmidt & Tropp, 2009). Asongu (2007b) also explain that, debate about the concept range from those who see it as irrelevant for business (Freeman & Liedtka, 1991), to those who see the relevance, but think it is a bad idea for business (Friedman,1962) and others who see it as strategic for business (Freeman,1984). Continuing on the debate about the relevance and irrelevance of CSR Milton Friedman (1962) asserts that, the acceptance to engage in any form of social responsibility other than to maximize shareholder value by organisational heads would weaken the essence of a free society describing the concept of social responsibility as a ―fundamentally subversive doctrine” in a free society. In a later publication, Friedman (1970) explains that, ―there is one and only one social responsibility of business - to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud‖ (p.6). Moir (2001) asserts that, ―whether or not businesses should undertake CSR and the forms that responsibility should take depend upon the economic perspective of the firm that is adopted‖ (p.2). Explaining that, the firm can either choose the neo-classical or the behavioural view. Stressing that, for the neo-classical view, the only social responsibility of a firm is the provision of employment and payment of taxes. On the other hand, the behavioural theorists University of Ghana http://ugspace.ug.edu.gh 23 view (Cyert & March, 1963; cited in Wartick & Wood, 1998) looks at corporate social responsibility from a political aspect and non-economic influences on the behaviour of managers of a firm. This view can also be stretched to study personal motives, such as the Chairman‘s personal preferences or alternatively some of the key issues connected to the exercise of power. Perrini (2006) also explains that, corporate social responsibility as a concept emerged from two parallel developments. One based on efforts made by policy makers and organizations to disseminate information about Socially Responsible Behaviour (SRB) and CSR practices through several initiatives such as formal definitions and others (Tencati et al., 2004; Zadek, 2002). The second parallel development is made up of contributions from academia, which started originally from a vague awareness of the relationship that exist between companies and social-environmental setting into an overt identification of rules of conduct and management tools. Accordingly, Perrini (2006) explain that, the current contribution to the concept of CSR developed when literature in academia and managerial practice started assigning social obligations to organisations (Clark, 1939; Kreps, 1940). The author further explains that, discussions during that time centered on large organisations and was associated with an increasingly growing number of activities. Additionally, during that time, several of the studies tried to define some of the unique features and rules of CSR (Manne & Wallich, 1972). Notwithstanding the many differences surrounding the concept, there were agreements regarding the fact that businesses have a duty to act, albeit voluntarily, it must follow CSR standards and exceed legal requirement (Davis, 1973). University of Ghana http://ugspace.ug.edu.gh 24 Authors such as (Ackerman, 1975; Preston & Post, 1975) also affirm that, the concept of CSR then was focused on the symbiotic relationship that existed between companies and the society in which they operated. The society engages the business as an entity contributing to its legitimacy and status. As a result, ‗‗detection and scanning of, and response to, the social demands that achieve social legitimacy, greater social acceptance and prestige‘‘ (Garriga & Mele´, 2004, p. 58) became essential, although at the same time businesses are allowed to engage in their long-term economic operations and creation of wealth. 2.7 Definitions of corporate social responsibility The first definition of CSR was given by Bowen (1953). The author assert that, CSR is the ‗‗obligations of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society‘‘ (p.6). After this initial definition, several individuals and organisations have also given their own definitions and interpretations to the concept. Corporate Social Responsibility (CSR) has also been defined ―as a stakeholder oriented concept that extends beyond the organization‘s boundaries and is driven by an ethical understanding of the organization‘s responsibility for the impact of its business activities, thus, seeking in return society‘s acceptance of the legitimacy of the organization‖ (Maon et al., 2009, p.72). This definition, according to the authors is based on the stakeholder concept and calls for the fusion of CSR into organizational strategy. In addition, it states that CSR benefits both the corporation and its various stakeholder groups. The World Business Council for Sustainable Development (1999) defines CSR as ―the continuing commitment by businesses to behave ethically and contribute to economic University of Ghana http://ugspace.ug.edu.gh 25 development while improving the quality of life of the workforce and their families as well as the local community and society at large‖ (cited in Ofori & Hinson, 2007, p. 181). McWilliams and Siegel (2001) also describes CSR as actions that appear to further some social good beyond the interest of the firm and which are required by law. Additionally, Pearce and Doh (2005) also describe CSR as the actions of an organisation that benefit society and goes beyond what is required by law and also the direct interests of shareholders. For Forstater et al. (2002), CSR are actions that contribute to sustainable development through the organisation‘s main business activities, social investment and public policy debate. Davis (1960) also state that, the term refers to the actions and decisions of the organisation which goes beyond its economic interest. Sen and Bhattarya (2001) in their examination of corporate social responsibility, refer to the CSR as a concept that a business has broader societal interests to consider, not just the financial interest of the organization. The European Union (EU) also has an interpretation of CSR as ‗‗a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment‘‘ and ‗‗a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis‖ (European Commission, 2001 cited in Perrini, 2006, p.306). McComb (2002) also states that, the notion of companies looking beyond profits to their role in society is generally termed corporate social responsibility (CSR). It refers to a company linking itself with ethical values, transparency, employee relations, compliance with legal requirements and overall respect for the communities in which they operate. It goes beyond University of Ghana http://ugspace.ug.edu.gh 26 the occasional community service action. However, as CSR is a corporate philosophy that drives strategic decision-making, partner selection, hiring practices and, ultimately, brand development. Additionally, The University of Miami explain that CSR is a ―means of analysing the inter- dependent relationships that exist between business and economic systems, and the communities with which they are based. CSR is a means of discussing the extent of any obligations a business has to its immediate society; a way of proposing policy ideas on how those obligations can be met; as well as a tool by which the benefits to a business for meeting those obligations can be identified‖ (Asongu, 2007a, p. 20). There are several other definitions and explanations that have been given to CSR however, the ―cause of the obvious absence of consensus around one definition of CSR is not a lack of ingenuity or capacity of the experts: it can also be traced back to the different origins of this age-old concept where historical, cultural, and socio-economic factors, besides language, have been and still are playing a decisive role‖ (Argandoña & von Weltzien Hoivik, 2009, p.222). Matten and Moon‘s (2008) definition best explains the multiplicity of the definitions surrounding the concept. The authors state that ‗‗CSR is an umbrella term overlapping with some, and being synonymous with other, conceptions of business–society relation‖ (p. 405). Accordingly, Sweeney and Coughlan (2008) intimate that, the concept of CSR has been characterised as being broad, complex and continually changing and involves a multiplicity of ideas and practices (citing Hopkins, 2003). In citing the following, the authors assert that, the concept has been described as being ambiguous (Fisher, 2004), subjective (Frederick, 1986), unclear (McWilliams, 2001), amorphous (Margolis & Walsh, 2001) highly intangible University of Ghana http://ugspace.ug.edu.gh 27 (Cramer, Jonker & Heijden, 2004) and fuzzy (McGuire, 1963) with unclear boundaries and debatable legitimacy (Lantos 2001). These descriptives also underscore the many different definitions of the concept which have been explained above. Throughout the definitions, one theme seems to resonate with all and that is, corporate social responsibility is driven by a sense to give back to society. The organisations desire to support the communities from which they operate. It is embarked upon at the pleasure of the organisation, looking at the specific needs of host communities and other stakeholders. It was also evident that, the role of stakeholders in the execution of a social responsibility programme cannot be over emphasised. For the purpose of this study, Maon et al., (2009) definition capturers the thought of the researcher, as it encapsulates what corporate social responsibility (CSR) represents. In the definition, Maon et al., (2009) clearly touch on all the salient points that have shaped the discussion of CSR over the years. The inclusion of words such as stakeholder, ethical and legitimacy makes it useful in present day discussions and helpful in drawing on discussions from the past. 2.8 CSR in developing countries The term developing countries is widely used to describe nations that have relatively lower per capita incomes and are relatively less industrialized (Visser, 2006). Thus, the researcher‘s choice of the term developing countries is consistent with the United Nations Developments Program‘s (2006) categorization in its summary statistics on human development. With this in mind, the researcher highlights some of the researches conducted on the concept in developing countries. According to Visser (2006), Asia is the region most often covered in the literature on CSR in developing countries, with a significant focus on China and cited ( Zhuang & Wheale, 2004). University of Ghana http://ugspace.ug.edu.gh 28 Other countries cited include India (e.g. Balasubramanian et al., 2005), Indonesia (e.g. Blowfield, 2004), Malaysia (e.g. Zulkifli and Amran, 2006), Pakistan (e.g. Lund-Thomsen, 2004), and Thailand (e.g. Kaufman et al., 2004). Other countries that have had less attention include Bangladesh (Nielsen, 2005), the Pacific Forum Islands (Prasad, 2004), Sri Lanka (Luken & Stares, 2005), and Vietnam (Prieto-Carron et al., 2006). Additionally, in Africa, the literature on CSR is dominated by South Africa (Visser, 2005), with other few researches in Côte D‘Ivoire (e.g. Schrage & Ewing, 2005), Kenya (e.g. Dolan and Opondo, 2005), Nigeria (e.g. Amaeshi et al., 2006), Tanzania (e.g. Egels, 2005), and Mali and Zambia (e.g. Hamann et al., 2005). CSR research in the Ghanaian context have included studies by Ofori and Hinson (2007), Hinson et al., (2010), Hinson & Kodua (2012), Hinson (2011), Kuada and Hinson (2012) and Mahmoud and Hinson (2012). In spite of the growing number of studies, Kuada and Hinson (2012) intimated that, carrying out their study in Ghana, would contribute to the scarce knowledge of CSR activities in Africa. 2.9 Benefits of corporate social responsibility According to McDonald and Rundle-Thiele (2008), some of the benefits that organisations can derive from implementing corporate social responsibility (CSR) activities include increased profits, customer loyalty, trust, and positive brand attitude as well as fighting negative publicity (Brown & Dacin, 1997; Drumwright, 1996; Maignan & Ferrell, 2001; Murray & Vogel, 1997; Sen & Bhattacharya, 2001; Sen et al., 2006). Handelman and Arnold (1999) explain that when an organisation engages in CSR activities, its customers have positive feelings towards the company and speak favourably about the company to other people. Additionally, Maignan and Ferrell, (2001) conducted a survey University of Ghana http://ugspace.ug.edu.gh 29 among managers and established that; there is a positive relationship between an organisation‘s CSR activities and customer loyalty. Other studies such as (Barone et al., 2000; Berger & Kanetkar, 1995; Creyer & Ross, 1997) have all indicated that when organisations engage in CSR activities (cause-related marketing, environmentally-friendly practices and ethics) its customers are willing to support it. Additionally, McDonald and Rundle-Thiele (2008) assert that, in the retail environment, CSR either in the form of support for a non-profit organisation and/or positive ethical practices lead to store-loyalty, emotional attachment to the store and store-interest, which then influences customer behaviour in the form of the increased percentage of shopping done at the store and the amount of purchases. Also, a company‘s association with a non-profit organisation improved attitudes towards the brand, whether customers were familiar or not with the CSR activities (McDonald & Rundle-Thiele, 2008 citing Lafferty & Goldsmith, 2005). In instances where customers were aware of the corporate philanthropic activity, Sen et al. (2006) found that, customers had positive attitudes towards the organisation, and stronger identification with the company, higher brand purchase and investment intent and greater interest to seek employment with the company than those unaware of any initiative. There is also evidence to suggest that engaging in pro-social marketing activities like CSR may serve as a market differentiation strategy (McWilliams & Siegel, 2001), it could also help build equity for the organization and its brand (Hoeffler & Keller, 2002) as well as lead to positive post purchase behaviours and build customer loyalty (Bhattacharya & Sen, 2003). For Brown and Dacin (1997), they found that when an organisation gives to worthy causes and is involved in community development and shows concern for the environment by way of CSR, it receives favourable product attitude which also flows to the organisation itself. In University of Ghana http://ugspace.ug.edu.gh 30 another study, Sen and Bhattacharya (2001), also explain that when an organisation is involved in several CSR activities such as corporate giving, community involvement, and its position on issues involving women, ethnic minorities, gays and lesbians, and disabled minorities, customers find its products more attractive and also have a good image about the organisation. Jones and Maurrasse (2003, p 34) also state that, ―as environmental pressures continue to increase, companies that improve environmental performance more than their peers are likely to achieve superior financial returns and competitive positioning over the mid to long term. In addition, corporate environmental leaders frequently report achieving enhanced profitability in the short term‖. To sum the benefits up, Polonsky and Jevons (2009) assert that engaging in CSR activities is important but organisations must also make a deliberate decision as to the depth to which they leverage their CSR activities, ―thus translating doing good into strategic benefit‖(p. 328). 2.10 Justification for CSR According to Ofori and Hinson (2007), several themes have formed the justification for broader corporate social responsibility and assert that there are four justifications for organisations wanting to engage in corporate social responsibility activities. The authors explain that managers have been entrusted with organisational power and that the fate of all stakeholders lies with them. This power, they claim is a duty to improve the welfare of society and meet the needs of other stakeholders. Another reason the authors allude to is that, managers believe that they are obliged to balance the interests of all the various stakeholder University of Ghana http://ugspace.ug.edu.gh 31 groups and that, they act as co-ordinators who reconcile the different interests of the various stakeholder groups. A third justification the authors give is that, managers agree that society must be served by organisations and finally, the growing concern in most countries with respect to corporate social responsibility activities Ofori and Hinson (2007). Bowen (1953) also lists a number of justifications for CSR which was described by Ofori and Hinson (2007) as ―an excellent encapsulation of a modern justification for CSR‖ (p.182). The author states that, ―managers have an ethical duty to consider the broad social impacts of business decisions, businesses are reservoirs of skill and energy for improving civic life, corporations must use power in keeping with a broad social contract or lose their legitimacy, it is in the enlightened self-interest of business to improve society, and finally, voluntary action may head off negative public attitudes and undesirable regulations‖ (As cited in Ofori & Hinson 2007, p. 182). 2.11 Conceptualization of corporate social responsibility According to Jamali and Mirshak (2007), one of the conceptualizations of CSR which is ―well grounded in literature‖ (p. 246) is Carroll‘s (1979) four-part definition of CSR which was embedded into a conceptual model of corporate social performance (CSP). Another is Wood (1991), which placed CSR into a comprehensive framework, emphasizing principles guiding responsibility behaviour, processes of responsiveness and outcomes of performance. The researcher agrees with the authors and goes on to explain the conceptualisation by Carroll (1979) but first gives an overview of Wood‘s (1991) conceptualisation. Wood (1991) explains that ―corporate social performance has been a topic of academic study for several decades, and the concept itself has been in use in the United States since the mid- University of Ghana http://ugspace.ug.edu.gh 32 1970s. Although milestones toward a theory of corporate social performance can be identified (Ackerman & Bauer, 1976; Carroll, 1979; Davis, 1973; Frederick, 1978; Freeman, 1984; Miles, 1987; Preston & Post, 1975; Wartick & Cochran, 1985)‖ (p.196) and that conceptual development have been looked at as individual ideas put together. Wood (1991) reexamined the corporate social performance (CSP) model but this time she raised other relevant arguments which went beyond just stating the different types of responsibilities that an organisation has, and looked at the elements that would motivate a firm to engage in responsible behaviours, the processes of responsiveness and the resultant effects of performance. Wood‘s (1991) refined theory ―placed CSR into a broader context than just a stand-alone definition, and conceptualized corporate social performance (CSP) as the product of a business firm‘s particular configuration of principles of social responsibility, processes of social responsiveness, as well as observable outcomes as they relate to the firm‘s societal relationships‖ (Jamali & Mirshak, 2007, p. 247). 2.12 Carroll’s 1979 conceptualization Carroll (1979) explains that the four categories of responsibilities that an organisation has ―are not mutually exclusive, nor are they intended to portray a continuum with economic concerns on one end and social concerns on the other‖ (p. 499). Also, the four kinds of responsibilities are neither cumulative nor additive but are arranged in a way to show the basic role that each plays in the developmental process of organisations in an order of importance. The author further explains that, though all the four kinds of responsibilities have always existed together in organisations, business history shows that in the early years of organisations the focus was on economic gain; however, later, legal issues came up because of employees and working conditions and then, the issue of ethics and finally discretion or University of Ghana http://ugspace.ug.edu.gh 33 voluntarism. Additionally, any action or responsibility by an organisation may have economic, legal, ethical or discretionary reasons behind it. 2.12.1 Economic responsibility The first responsibility Carroll (1979) talked about is economic responsibility. According to Carroll (1979) ―the first and foremost social responsibility of business is economic in nature. Before anything else, the business institution is the basic economic unit in our society‖ (p. 500). The author further explains that organisations have a responsibility to engage in productive activities either in the form of goods or services required by society and to be sold for profit. Adding that any other engagement of businesses is based on this basic assumption. Jamali and Mirshak (2007) also explain that, the economic responsibility includes providing a return on investment to shareholders, creation of employment opportunities and providing equal pay for equal work done, prospecting for new resources, employing the latest technology and innovation as well as the manufacture of new products and enhanced services. 2.12.2 Legal responsibility The second responsibility Carroll (1979) explains is legal. The assertion here is that, ―just as society has sanctioned the economic system by permitting business to assume the productive role, as a partial fulfilment of the ―social contract‖, it has also laid down the ground rules, the laws and regulations under which business is expected to operate‖ (p.500). The author explains that, society requires organisations to achieve its economic goals within a legal framework. Additionally, the dotted lines in figure 1 indicate that, although organisations have four different kinds of responsibilities, they must be met concurrently; so economic and legal responsibilities must go hand in hand. In short, organisations, while embarking upon or University of Ghana http://ugspace.ug.edu.gh 34 pursuing their economic agenda, must do well to adhere to stated laws. Jamali and Mirshak (2007) also state that, although the laws may guide organization into being responsible, it will be difficult to guarantee that all organizations will be treated fairly (Pratima, 2002). Additionally, citing Solomon (1994), the authors explain that, laws ascribe the limits within which organisations should operate but they do not define ethics nor legislate morality. 2.12.3 Ethical responsibility By Carroll‘s (1979) own assertion, despite both economic and legal responsibilities being embodiments of ethics, there are other behaviours and actions that are not written into laws however society expects businesses to act in such ways. He further explains that ethical responsibilities are not properly defined, and also difficult for organisations to deal with. This is because issues concerning what is or isn‘t ethics is still on going. Carroll (1979) ended by saying that society has expectations of organisations which go beyond legal requirements. Accordingly, Jamali and Mirshak (2007) state that, the limitations of law are controlled by the incorporation of ethics and that ethics create ethos that organisations can ascribe to (Solomon, 1994). The authors further explain that, ethical responsibilities portray organisations as exhibiting signs of morality and fairness. Citing Lantos (2001), the authors further explain that the ethical responsibility is largely entrenched in religious beliefs, humanitarian values, and commitment to human right issues. 2.12.4 Discretionary Responsibility The last responsibility that Carroll (1979) explains is discretionary responsibility. He explains that these are responsibilities that are voluntary in nature and that they are left to individual judgement and choice. The author further explains that the decision to take up these roles are University of Ghana http://ugspace.ug.edu.gh 35 ―guided only by a business‘s desire to engage in social roles not mandated, not required by law, and not generally expected of businesses in an ethical sense‖ (p.500). According to Jamali and Mirshak (2007) the aim of the discretionary gesture by businesses is to give back to society. Citing (Frederick, 1994), the authors explain that the origin of this type of responsibility is found in the belief that business and society are connected in an organic way. The authors describe the discretionary responsibility as very contentious because its boundaries are limitless and that it may clash with the economic and profit- making objectives of organisations. Figure 1: Social responsibility categories Discretionary responsibility Ethical responsibility Total Social responsibility Legal responsibility Economic responsibility Source: Carroll 1979, p 499 University of Ghana http://ugspace.ug.edu.gh 36 Jamali and Mirshak (2007) assert that, Carroll‘s (1979) categorisation of CSR can be combined with Wood‘s (1991) refinements to provide an integrated framework for analysing CSR practices. Jamali and Mirshak (2007) further state that, the two are well grounded conceptualization of CSR. However, the researcher believes that, Carroll‘s (1979) conceptualisation is good in that, the four responsibilities that he outlines are unique but are very much related especially in a developing country context. Organisations have economic responsibilities to their shareholders and other investors but since they operate in a country there are laws, those laws must be followed to the latter. Also, issues of ethics must be considered by the organisation in the discharge of their operations. After all is said and done, the organisation may decide to give back to society which is purely voluntary and not required by law. 2.13 Theories of corporate social responsibility Moir (2001) assert that, there are three theories that can be used to explain active CSR, the stakeholder, social contract and legitimacy theories. The stakeholder theory to explain ―how‖ and the social contract theory which is similar to the legitimacy theory to explain ―why‖. For Hinson et al. (2010), they looked at CSR from both the stakeholder and legitimacy approaches. The authors assert that, from the legitimacy perspective an organisation‘s CSR activity is an effort to gain, improve or maintain legitimacy. However, for the purposes of this research, only the stakeholder theory is discussed. The choice for the stakeholder theory is that, an organisation cannot establish a social contract with itself, neither can it gain legitimacy by living in a world of its own. A social contract and legitimacy can be attained when the actors in the society, that is the various stakeholder groupings have been identified. University of Ghana http://ugspace.ug.edu.gh 37 2.13.1 Stakeholder theory Sweeney and Coughlan (2008) explain that research by Reynolds et al. (2006) shows that organisations align themselves to different stakeholder groups and that the stakeholder theory which was made popular by Freeman (1984) discusses the various groups that have a stake in a company. According to Brown and Foster (2013), for years, researchers have deliberated on the connection between business and society in the context of corporate social responsibility (CSR) (Carroll, 1979) and stakeholder theory (Freeman, 1984). According to the authors, several philosophical stances have been mentioned in this argument, particularly with respect to the challenge of integrating the ethical viewpoint of CSR with the applied, managerial thinking of the stakeholder theory (Mele 2008; Parmar et al. 2010; Windsor, 2006). The authors further explain that, for CSR, the methods have ranged from positivist or instrumental approaches (Jones 1995; Wartick & Cochran 1985) to normative approaches that originate from diverse deontological and teleological philosophies (Scherer & Palazzo, 2007). In the case of the stakeholder theory, ―ethical components can be drawn from several sources including the principles of corporate rights and corporate effects (Evan & Freeman 1988), pragmatism (Freeman et al. 2010), the normative viewpoint of businesses as moral agents (Donaldson & Preston 1995), and stakeholder applications like the principle of fairness (Phillips, 1997)‖ (Brown & Foster, 2013, p. 2). Additionally, Moir (2001) asserts that, the stakeholder theory is used as a basis to explain the various groups that an organisation owes responsibility. The author further alluded to Freeman (1984), explaining that the organisation can be said to be made up of connections of various stakeholder groups that organisational leaders try to manage. Freeman (1984) defines University of Ghana http://ugspace.ug.edu.gh 38 a stakeholder as ―any group or individual who can affect or is affected by the achievement of the organization's objectives‖ (p. 46). Furthermore, stakeholders have been grouped into two main categories: primary and secondary. Clarkson (1995, p. 106) assert that a primary stakeholder group is ―one without whose continuing participation the corporation cannot survive as a going concern‖. Examples of the members of the primary group include ―shareholders and investors, employees, customers and suppliers, together with what is defined as the public stakeholder group: the governments and communities that provide infrastructures and markets, whose laws and regulations must be obeyed, and to whom taxes and obligations may be due‖ (p. 106). The secondary stakeholder group is described as those who influence or affect, or are influenced or affected by the organisation, but they do not do business with the organisation and are not important to the existence of the organisation example general public, communities, activist groups, business support groups and the media. TrevinÄo and Weaver, (1999) assert that, the stakeholder theory is not known to either be a set of theories or a coherent theory. In a similar thought, Moir (2001) explain that, the argument is whether stakeholder theory is a normative theory based upon largely ethical propositions or an empirical/instrumental/ descriptive theory (Donaldson & Preston, 1995; Jones & Wicks, 1999). Moir (2001) also claim that, it is still a debatable issue within literature, referring to the work of Jones & Wicks (1999), Freeman (1999), Donaldson (1999), Trevino & Weaver (1999) and Gioia (1999). However Moir (2001) while arguing for the applicability the stakeholder theory to CSR explain that, when it comes to corporate social responsibility, the main issue is whether stakeholder concerns forms part of the motives that organisations consider when they decide University of Ghana http://ugspace.ug.edu.gh 39 to be responsible and, if that is the case, to which stakeholder group. Moir (2001) assert that in a study, Hamil (1999), adopted Donaldson and Preston's (1995) typology, and found that corporate giving is important. According to Sweeney and Coughlan (2008) in recent years, attention given to stakeholder attributes have increased (Frooman, 1999) to help managers decide how to apportion their limited time, energy and other scarce resources to different stakeholder groups (Vos 2003; Philips, 2004). Additionally, Cooper et al. (2001), explain that, when stakeholder theory is used as a managerial tool it usually has to do with identifying which stakeholders are more important, and as a result should receive a higher percentage of management devotion. It is obvious that different stakeholder groups can present different, and often conflicting, needs and interests (Neville & Menguc 2006; Sen, Bhattacharya & Korschun 2006). Mitchell et al. (1997) identified ―urgency, legitimacy and power as important stakeholder attributes, arguing that in their various combinations, these attributes are indicators of the amount of management attention awarded to a given stakeholder‖(Sweeney & Coughlan, 2008, p.115). The authors explain that power has to do with the ability to produce desirable results or the ability of one actor within a social relationship to have another actor do something that they would not otherwise have done (Mitchell et al., 1997). Legitimacy is the perception or belief that stakeholders‘ claims are proper, desirable or appropriate (Thorne, Ferrell & Ferrell, 2003). For urgency, it is based on two characteristics; time sensitivity and importance of the claim to the stakeholder (Thorne, Ferrell & Ferrell, 2003, cited in Sweeney & Coughlan, 2008). University of Ghana http://ugspace.ug.edu.gh 40 In conclusion, Donaldson and Preston (1995, p. 67) argue that, the basis for the social responsibility of companies is essentially normative: ‗‗the interests of all stakeholders are of intrinsic value. That is, each group of stakeholders merits consideration for its own sake and not merely because of its ability to further the interests of some other group, such as the shareowners‘‘. It is important to note that, all the actors in the various stakeholder groups are by themselves customers first before they take on other stakeholder roles, thus the focus on customers. Figure 2: Stakeholder map Source: Donaldson and Preston 1995 In figure two, the firm is the main actor in the center surrounded by the various stakeholder groups which include both primary and secondary stakeholders (government, investors, political groups, customers, communities, employees, trade associations and suppliers). The arrows are moving in two opposite directions one to the firm and the other from the firm to Firm Governments Suppliers Communities Political Groups Trade Associations Investors Employees Customers University of Ghana http://ugspace.ug.edu.gh 41 the stakeholders. It simply explains the constant interaction between the firm and the various stakeholder groups. 2.14 Conceptual framework A conceptual framework of positioning strategies employed by telecommunications companies in Ghana based on the extended generic positioning strategies. Figure 3: Conceptual Framework Extended Generic Positioning Strategies The various positioning strategies within the generic positioning model are attribute, price/quality, competition, product class, user and application as put forward by Hooley and Saunders (1993) and Hooley et al. (1998) and expanded by Blankson (2008) to include image and ethos. This is how Blankson (2001, p. 557-559) explains the six positioning strategies: Telecom firms positioning strategies based on customers perspective Competition Image and Ethos(CSR) User Price and Quality Attribute Application Product Class Highly Adopted Positioning Strategy Moderately Adopted Positioning Strategy Least Adopted Positioning Strategy University of Ghana http://ugspace.ug.edu.gh 42 Attributes: This positioning strategy relates to distinctiveness or similarity to other products/services. It is used to create awareness among a targeted segment and could involve the promotion of certain specific features that competitors have ignored. Price/Quality: This strategy is used as the basis for a firm’s dominant position in the market place, price and quality may be considered separately depending on the particular product or service. Competition: Competition involves aggressive tactics and is aimed at overtaking competitors. Application: In application, consumers are informed of the best use of the service/product, which is better than that of competitors. The emphasis is on the flexible usage (several use) of the product/service. Citing Aaker and Shanby (1982) the author explains that, often application position strategy represents a second or third strategy designed to expand the market. User: Citing Hooley and Saunders (1993), in user, the strategy is to use the recommendation by a dignitary, a popular person or a “star” in the promotion of the firm’s product/service. Product class: Products class is based on differentiation whereby the main thrust of the strategy is either to reposition on new competitive advantages or emphasise its uniqueness from competitors. According to Blankson (2001), the authors write that University of Ghana http://ugspace.ug.edu.gh 43 with this strategy, promotional tactics is concerned with moving upmarket or one, which is in the “same league” as other upmarket products/services. Image and ethos It is associated with the improvement in better corporate image (Bernstein, 1992), and to build the image of the organisation along humanitarian, sympathetic and environmental friendly issues and to differentiate the organisation on grounds of good external image, ethos and good citizenry ( Guerrera & Firn, 2001; Cobb, 2002; The Economist, 2008). These positioning strategies may be employed individually as well as jointly; hereby, the lines connecting the various positioning strategy suggest an organisation may employ more than one strategy at any given point in time (Hooley et al., 1998; Blankson, 2008). Blankson (2008) intimates that, a firm may adopt one or more positioning strategy and must monitor the effectiveness of these strategies along the life cycle stages of the brand or product. The author, again, explains that, positioning is basically in the minds of the customers and offers management with the overall positioning objective for that particular offering. This view is also asserted by Ries and Trout (1986); these authors explain that positioning has to do with what is done to the mind of a customer rather than what is done to the product or service. Blankson (2008) also explains that, the positioning strategies a firm adopted also influences the consistency of messages as well as the kind of marketing activities the firm engages in. In this view, the proposed conceptual framework explains that, the perception that customers form of a firm are based on the messages and marketing activities the firm carries out in the business environment. Consequently, customers will be able to identify the positioning strategy that their service providers are adopting based on the messages and activities being University of Ghana http://ugspace.ug.edu.gh 44 carried out by them. In this respect, the conceptual framework of the current study seeks to identify from the customer‘s perspective, the positioning strategy that their service providers are currently adopting. University of Ghana http://ugspace.ug.edu.gh 45 CHAPTER THREE CONTEXT OF THE STUDY 3.0 Overview of the telecommunication sector of Ghana Overa (2006) assert that, the first telegraph line to be installed in Ghana (then the British Colony of the Gold Coast) was in the year 1881 (Allotey & Akorli, 1999). According to the author, as at 1950, Ghana had one of the highest tele-densities in Africa with as much as 0.3 mainlines per 100 people, but did not make any more significant growth over the next 40 year period (Michelsen, 2003). Overa (2006) further added that although, 70% of Ghana‘s population live in rural areas, more than 80% of all telephone lines were in urban areas, with 53.6% in Accra alone (p. 1304). Additionally, Mahmoud and Hinson (2012) suggest that, Ghana‘s telecommunication sector has gone through two different stages after independence. The first stage was characterized by strict regulations and a monopoly by the then Ghana Post and Telecommunications (GP &T) which provided all the telephony services. The authors further assert that, like with most state run institution, Ghana Post and Telecommunication (GP&T) was associated with infrastructural and operational deficiencies (Mahmoud and Hinson (2012) citing Frempong & Henten, 2004). According to the authors, as a result of an accelerated development program to deregulate the industry, Ghana Telecom was incorporated to take over from the GP & T. This also led to the establishment of the National Communication Authority (NCA) by an Act of Parliament to regulate the sector. Alhassan (2003) asserts that, the NCA was established to ―introduce privatization, liberalization, and controlled competition into the telecommunications industry‖ (p. 2). Suggesting that, the establishment of the NCA was in line with a general appeal around that time to separate national regulatory bodies from the regular ministries or departments of state. University of Ghana http://ugspace.ug.edu.gh 46 The author further explains that, as at 1990, there were only 12 of such regulatory bodies in the world and that the NCA was the 53rd communications regulatory body in the world. Furthermore, an industry expert Kwesi Amoafo-Yeboah, Chariman of Teligent Wireless explains that, the telecommunications sector in Ghana has achieved a lot in a very short while. He asserts that, as at 1996 there were only a handful of Ghanaians with private telephones that actually worked. Explaining that, the telephone density of Ghana was 0.26% meaning that there were 2.6 telephone lines for every 1,000 people including 35 payphones in the entire country out of which 32 were located in Accra alone (ghanaweb.com, 2013) Kwesi Amoafo-Yeboah further explains that, currently there is one phone for every four Ghanaians. Adding that, this great increase in tele-density is attributed to the establishment of the NCA. (ghanaweb.com, 2013). However, the ―increased penetration of the service regrettably has negatively affected the quality of telecom service in the country‖ (Frempong & Atubra, 2001, p. 202). As a measure to resolve this problem, the mobile number portability was introduced in Ghana in July 2011. The purpose was to empower mobile phone users and engender competition in the mobile telecoms industry. The Mobile Number Portability (MNP) is a system that allows mobile phone users to switch from one mobile network operator to another and still maintain their existing number (samuelobour.com, 2013). It comes with no financial cost to the user. 3.1 Regulatory bodies 3.1.1 National Communications Authority National Communications Authority Act, 1996 Act 524 heralded the establishment of the National Communications Authority as the regulatory body to regulate communications by University of Ghana http://ugspace.ug.edu.gh 47 wire, cable, radio, television, satellite and similar means of technology for the orderly development and operation of efficient communications services in Ghana and to provide for related purposes (NCA Act, 1996 Act 524, nca.org.gh, 2013) 3.1.2 Vision To become the most forward-looking and innovative Communications Regulatory Authority in the sub-region; by creating and maintaining an efficient, transparent and business friendly environment to enable Ghana become the premier destination of ICT investment in the sub- region. 3.1.3 Mission To regulate the communications industry by setting and enforcing high standards of competence and performance to enable it to contribute significantly and fairly to the nation‘s prosperity through the provision of efficient and competitive services. 3.2.1 Ministry of communication Prior to the establishment of the National Communications Authority, there was the ministry of communication and technology now simply known as the ministry of communications. The Ministry of Communications was created in July 2003 by an Executive Instrument No. 16. It has a long history dating back to 1958, when it was known as the Ministry of Communications and Works. In the 1970s it was merged with Ministry of Transport to become Ministry of Transport and Communications. In March 1997 a new Ministry was created out of the former Ministry of Information and the Communications division of the erstwhile, Ministry of Transport and Communications. This change did not last long as it reverted to its former name of Ministry of Transport and Communications in January 2001 University of Ghana http://ugspace.ug.edu.gh 48 and later Ministry of Communications and Technology. The Ministry has since been renamed Ministry of Communications in Executive Instrument No. E.16 dated 4th July 2003(moc.gov.gh, 2014). 3.2.2 Mission Ministry of Communications exists to facilitate the development of a reliable and cost effective world-class communications infrastructure and services, driven by appropriate technological innovations to enhance the promotion of economic competitiveness in a knowledge-based environment. 3.2.3 Vision To manage the convergence of Communication and Technologies to promote a viable integrated national development process within a global setting. 3.2.4 Objective To enable Government develop policies that will help integrate communications technologies and public information systems and also harness the full potential of resources for effective communication. 3.2 Overview of the telecom sector The Total Cellular/Mobile Voice Subscriber Base in Ghana as at February, 2014 stood at 28,615,446.
MTN had a marginal increase and maintained its position as the market leader with a subscriber base of 12,986,832 representing 45.38% of the total market share. Vodafone‘s subscriber base increased to 6,413,376 which represent 22.41 % of the total market share. Tigo had a marginal subscriber base increase, closing at 4,086,615 which represent 14.28% of the market share while Airtel increased its subscriber base to 3,537,316 University of Ghana http://ugspace.ug.edu.gh 49 representing 12.36% of the total market share. GLO decreased its subscriber base; its current subscriber base of 1,437,580 represents 5.02% of the total market share.
Expresso also, decreased its subscriber base to 153,727 representing 0.54 % of the total market share. The information has been represented in a table and pie chart below (nca.org.gh, 2014). Table 3. 1: Telecom Voice Subscription Trends 2014 MOBILE OPERATORS JANUARY FEBRUARY EXPRESSO 168,998 153,727 MILLICOM(TIGO) 4,058,573 4,086,615 SCANCOM(MTN) 12,968,610 12,986,832 VODAFONE MOBILE 6,244,855 6,413,376 AIRTEL 3,508,411 3,537,316 GLO MOBILE 1,470,202 1,437,580 TOTAL MOBILE 28,419,649 28,615,446 MONTH OVER MONTH GROWTH 1.40% 0.69% University of Ghana http://ugspace.ug.edu.gh 50 Figure 4: Market Share (Voice) Source: National Communication Authority 2014 3.3 Overview of the six telecommunication operators in Ghana 3.3.1 Tigo The first wholly privately owned cellular network provider in Ghana is Millicom Ghana and operated under the brand name Mobitel. It started its operation with the analogue mobile system until Spacefon now MTN came onto the market with the Global System for Mobile (GSM) communication (the second generation of digital technology). This shifted the taste of customers from Mobitel to the then Spacefon network. Mobitel then grew to become Buzz mobile telecommunication and now Tigo. With their massive advertisement in the media over the years, Tigo adopted the slogan ―a network that actually University of Ghana http://ugspace.ug.edu.gh 51 works‖ with promotions to encourage their old subscribers to come back onto the network (cited in Ankrah, 2012). 3.3.2 MTN The Company started its operation in Ghana in 1995 under the brand name Spacefon, and then changed to Areeba and again changed to its current name MTN. When it introduced the GSM technology, it attracted many phone users unto its platform. Being the first digital cellular network in Ghana, the high quality service offered by their GSM technology attracted more customers to them. Scancom Ghana Limited had always stood out with their wide network coverage and numerous value-added services to be the market leader. MTN was the first mobile telecommunication company in Ghana to launch a new network code to enable them add more subscribers (024 and 054). They launched a ―seamless roaming‖ that allowed their valued customers free roaming into some selected West-African countries. They were also the first to introduce the ―Mobile TV service‖ in collaboration with DSTV and their ―Mobile Money transfer‖ with banks in Ghana puts them on top of the market in Ghana. MTN, Ghana, (2012), (cited in Ankrah, 2012). 3.3.3 Vodafone Vodafone is a well-known brand around the world. It entered the Ghanaian market by purchasing Ghana Telecom and its subsidiary OneTouch. Ghana Telecom had the largest telecommunication infrastructure in Ghana and enjoyed monopoly until the deregulation and telecom reforms. Due to its administrative lapses at a time when the industry was growing, it lost its supremacy to the then vibrant Areeba and it has never been able to regain that spot. University of Ghana http://ugspace.ug.edu.gh 52 When Vodafone took over in 2008, it was rebranded as Vodafone from Onetouch. The new owners are said to have added about 800,000 more subscribers during the biggest promotion ever in the history of the telecommunication industry in Ghana called ―Vodafone Rewards‖. This was initiated to thank their cherished customers and to encourage them to use their products and services. This saw prices of a four-bedroom, fully furnished Trasacco Valley house (a high class residential area in Accra, Ghana), a 4*4 Mitsubishi Pajero vehicle with a complementary driver for three months and a twelve month free high speed Vodafone broadband internet connectivity and a fixed line as well. This was the grand prize totalling a million Dollars (Ankrah, 2012). 3.3.4 Airtel Airtel started its operations in Ghana during the latter part of 2008. It was yet another takeover in the telecommunications industry in Ghana. It took over from the then Westel communication by Zain. Airtel was the first to launch the 3.5G network which provides one of the fastest internet connectivity and video calling. When they started operations their coverage was limited to Accra, Tema and Kumasi Zain also launched the ―Live Your Dream‖ promotion which gave out several sums of money to customer with a grand price of GH¢75,000. Currently, Airtel has a nationwide coverage and is still growing (Ankrah 2012). 3.3.5 Expresso Its operations have been in existence since 1995, operating under the name of Celltel; it was the second mobile operator in the country at the time. In 1998, Hutchison Telecom then University of Ghana http://ugspace.ug.edu.gh 53 acquired 80% of the company, improving the analogue infrastructure that was in place at that time. In January 2003, the company was re-branded to Kasapa Telecom, the only locally branded telecoms operator in the country, with 9,000 subscribers. Kasapa experienced significant growth and in September 2005, the company made a switch from an analogue network to a CDMA network to further strengthen its market position. In July 2008, Expresso Telecom acquired 100% of the company. After the acquisition, the company has been working on many strategic initiatives and, more recently, an operational transformation project and network expansion programme has seen the company increase its coverage from 40% to nationwide coverage. Following on from the network expansion and upgrade, in November 2010 the company successfully re-branded into Expresso, now providing unrivalled high-quality voice and data services to customers across various market segments (expressotelecom.com, 2013). The aim of Expresso network is to attract the people of Ghana to our network and significantly increase our market share by providing the best products and services, and exceptional customer service (expressotelecom.com, 2013). 3.3.6 Globacom Glo Mobile launched its commercial services in Ghana on April 29, 2012 after two years of challenges with the Environmental Protection Agency (EPA) on issues concerning the installation of cell sites in Ghana. Globacom operates under the brand name Glo. Within the first 31 days of its first 100 days, Glo Ghana raked in 468,508 customers, representing 2% University of Ghana http://ugspace.ug.edu.gh 54 mobile market share, and within the second 31 days, it more than doubled subscriber base to 990,566, which gives it an impressive 4.2% market share in just two months (business.myjoyonline.com, 2013). Glo Ghana also launched its submarine cable that will link Ghana to the rest of the world called (GLO 1). This will help provide faster, better and cheaper internet access to customers. Glo since it started mobile operations in Ghana has made steady growth and currently has more subscribers than Expresso. 3.4 Some CSR engagements by the various telecom firms 3.4.1 Tigo As part of its corporate social responsibility Tigo Ghana donated six beds and six mattresses to the maternity ward of the Ada Health Centre, located in the Greater Accra Region. They also carried out major renovation works in the ward, including painting the entire block in question. (thechronicle.com.gh, 2014) The company also presented furniture to the Sakumono Tema Metropolitan Assembly 1 & 2 Basic schools. The furniture comprised 60 tables and chairs for the junior high school 3 class, 60 dual desks for the JHS 1&2 classes, as well as eight executive tables and chairs for the teachers. (modernghana.com, 2014). It also handed over a street library tent to street Library Ghana at Ahwerase community a town near Nsawam in the Eastern Region. (biztechafrica.com, 2014). All of these initiatives form part of the company‘s commitment to social support programmes in Ghana. 3.4.2 MTN The MTN Ghana Foundation was established in 2007 as a single purpose vehicle to drive all MTN's CSR initiatives in the country. The Foundation currently has three focus areas: health, University of Ghana http://ugspace.ug.edu.gh 55 education and economic empowerment (mtn.com.gh, 2014). In February 2014, MTN Ghana held a blood donation exercise in four regions and successfully mobilized 625 pints of blood to support the National Blood Bank, Ridge Hospital, Komfo Anokye Teaching Hospital, Efia Nkwanta Hospital and Tamale Teaching Hospital (mtn.com.gh, 2014). In another donation, the Foundation presented five-system units and five modems in addition to GH¢3,000 cash to the Asante Monarch to support his educational fund. (todaygh.com, 2014). In support of education, the Foundation acting together with its major distributor in the Ashanti Region, Ashcell Limited, presented gifts totaling GH¢ 2,800 to the Kumasi Girls‘ Senior High School (SHS). These were made up of a desktop computer and accessories, exercise books, souvenirs and a cheque for GH¢ 1,000. It was in support of the celebration of the school‘s 50th anniversary (myjcr.com, 2014). In a similar exercise, MTN donated GH¢ 3,200 in support of the 63rd anniversary celebration of the T.I. Ahmadiyya Senior High School (SHS) also in Kumasi. These were made up of a 32-inch colour television set, books and cash worth GH¢1,000 (myjcr.com, 2014). 3.4.3 Vodafone The Vodafone Ghana Foundation, the charity arm of Vodafone Ghana was launched in 2009 to support sustainable initiatives that drive social change, improve people‘s lives and solve pressing social needs. The foundation has embarked on a number of social intervention programmes in the area of health, education, agriculture and so no since its inception. In September 2012, Vodafone Ghana Foundation collaborated with United Way Ghana (UWG) and Global Media Alliance to support children suffering from cerebral palsy. The University of Ghana http://ugspace.ug.edu.gh 56 Foundation donated GHC 40,000 as seed capital for the construction of a Rehabilitation Centre which has a physiotherapy room and a hostel for staff. Vodafone Ghana Foundation also donated 10 incubators to the Tamale Teaching Hospital to enable the hospital save the lives of premature babies. The impact of the donation is evident in the neo-natal department as it has given the many premature babies born in the hospital greater chances of survival In education, the Vodafone Ghana Foundation partnered Joy FM to build an ultra-modern library for the Asofan Cluster of Schools, near Ofankor in the Ga West Municipality of the Greater Accra Region. The library was built as part of the Read 100 project with the aim of inculcating reading habits into pupils between the ages of eight and fourteen. The Vodafone Ghana Foundation also advocates for the use of agrochemicals on farms and also mobilizes farmer-based organizations for agricultural input support and marketing of farm produce. It has also embarked on a mango farm initiative for an orphanage (vodafone.com.gh, 2014) 3.4.4 Airtel Airtel Ghana as part of its social responsibility paid off a GH¢14,000.00 outstanding rent debt owed by the Akropong Senior High Technical School (ASHTS) for the Deaf. The telecommunication network also paid an amount of GH¢4,800.00 as a one year rent due the school. In addition to the payments, the company also donated a 15 KVA generator valued at $9,000.00 to provide 24 hour electricity supply for the school (news.peacefmonline.com, 2014). University of Ghana http://ugspace.ug.edu.gh 57 The company also donated several items to the Echo Hills Orphanage located in Madina a suburb of Accra as part of its internal CSR campaign for its employees dubbed ‗Make a Difference Day‖ (citifmonline.net, 2014) 3.4.5 Expresso Expresso renovated two building facilities at the Accra Juvenile Correctional Centre at a cost of GHc 8,000. The renovated facilities were Saint Monica‘s Dormitory, which houses over 20 inmates and the draughtsmanship shop which is also used to train the inmates to acquire technical and vocational skills. Additionally, Expresso presented a bag of rice, a bag of beans, a bag of sugar, a bag of gari and 200 exercise books to the institute to help in their training. The Juvenile Institute formerly known as Borstal home was established in 1945 to reform, rehabilitate and reintegrate juvenile delinquents into the society (zaindarling.blogspot.com, 2014). 3.4.6 Glo Globacom Ghana has in the past invested in the area of sports and entertainment. A previous sponsor of the Ghana Premier League, Globacom Ghana donated two state-of-the art coaches (buses) to the Ghana National Supporters Union (GHANSU) to facilitate their movement to the various stadia (ghanaweb.com, 2014). Recently during the 2014 edition of the FIFA World Cup held in Brazil, the company sponsored a contingent to watch and cheer Ghana at the World Cup. A total of 25 Ghanaians comprising 22 subscribers and three dealers were sponsored in an all-expense paid trip to Brazil (myjoyonline.com, 2014). University of Ghana http://ugspace.ug.edu.gh 58 CHAPTER FOUR METHODOLOGY 4.0 Introduction This chapter is structured into ten different sections. It begins with an introductory part followed by the unit of analysis and research approach. Other sections include research strategies, sampling design, method of data collection, ethics, data collection and analysis, research limitation and conclusion. Kumekpor (2002, p.24) assert that, research methodology includes the specified procedures, techniques, ideas and thought processes followed in getting specific things done or achieving particular ends or objectives. Yin (2003) also explains that, a research methodology defines the research activity, how to proceed with the research, how to measure progress, and what makes up the success of the research. 4.1 Unit of analysis The unit of analysis for this study was the customers of the telecommunication companies operating in Ghana. This is because these organisations engage in CSR activities in the communities where the customers live and positioning involves what is done to the mind of customers rather than the product or service (Ries & Trout, 1986). How customers perceive various positioning strategies by the telecom organisations will tell if customer accept that CSR (image and ethos) has been employed as one of the positioning strategies. University of Ghana http://ugspace.ug.edu.gh 59 4.2 Research approach According to Vanderstoep and Johnston (2008) the two main approaches to research are qualitative and quantitative. Qualitative is said to be subjective while quantitative is described as objective. Bryman and Bell (2007) assert that, qulitative research is inductive while quantitative is deductive in their views on the relationship between research and theory. Qualitative research relies on words and descriptives in its data collection and analysis while quantitative relies on quantification and statistics in its data collection and analysis. Hiatt (1986) also asserts that, qualitative research aims at exploring, making meanings of a situation, what drives an action by way of purpose and its reality. For the purpose of this research, the quantitative approach is used. According to Hair et al. (2003) quantitative research employs the use of numbers and adopts a well-structured mode of data collection and analysis. It also often relies on large numbers of data, normally a sample size of 50 and above (Tull & Hawkings, 1990). It also employs the use of questionnaires with close ended questions (Burns, 2000). The choice of quantitative methodology can also be justified based on the fact that it is concise, it describes and examines relationships, and determines causality among variables, where possible. The sample employed in quantitative study is usually representative of a large population; the reliability and validity of the instruments are crucial and also provide an accurate account of characteristics of particular individuals, situations or groups. However, Yin (1994) suggests that, results from quantitative research are abstract and general and it relates to a specific local situation, context and individuals. University of Ghana http://ugspace.ug.edu.gh 60 4.3 Research strategies According to Saunders et al. (2009), research strategy is made up of the ―selection of the research design and the systematic plan of required actions‖ (p. 42). Research strategy includes decision making with respect to the mode of data collection and analysis(Creswell,2009). Research strategies include experiment, survey, case study, action research, grounded theory, ethnography, and archival research (Saunders et al., 2007). Yin (2003) also tabulated research strategies to include experiment, survey, archival analysis, history and case study. The author further explained that all the research strategies can be used for ―exploratory, descriptive, or explanatory‖ (p. 3). The author also explains that, the ordering of the strategies does not mean that the ―boundaries between the strategies or the occasions when each is to be used are always sharp‖ (p. 5) and although every strategy has its unique qualities they overlap. He suggests that the aim is to avoid gross misfit, that is ―when you are planning to use one type of strategy but another is really more advantageous‖ (p.5). However, according to Yin (2003), what separates the strategies is not in how they are ordered but in three other elements which he describes as conditions. The three conditions are, the type of research question posed, ―the extent of control an investigator has over actual behavioural events and the degree of focus on contemporary as opposed to historical events‖ (Yin, 2003, p. 5). For the purposes of this research a survey was used. 4.3.1 Survey Bryman and Bell (2007) explains that, a survey is a cross-sectional research design which employs the use of questionnaires. Saunders et al., (2009) also suggests that surveys are a structured way of collecting data from a large population. The authors further explains that surveys usually make deductions and answer who, what, how many and how much questions. There are several categories of survey methods but this research used the personally University of Ghana http://ugspace.ug.edu.gh 61 administered survey as means of data collection. This method is chosen because similar researches have used it (Hallman et al., 2002; Sundin et al., 2006). This strategy is effective when using questionnaires for data collection and its easy when the researcher wants to make comparisons. Surveys are also said to be authoritative, easy to understand and explain (Saunders et al., 2009). According to Saunders et al. (2009), data collected through surveys can be used to propose likely causes of a relationship between variables and to produce models of the relationship. It will also help the researcher to make statistical inferences from the quantitative results. 4.4 Sampling design (sample population, sample size and sampling technique) Bryman and Bell (2007) explains that the sample population is ―the universe of units from which the sample is to be selected‖ (p. 182). The population for this study are the customers of the six telecommunication companies operating in Ghana. Currently it is estimated that there are about 28,615,446 mobile subscribers in Ghana. Out of this number, a sample is required for the study. A sample is the segment of a population that is selected for investigation (Bryman & Bell, 2007, p.183). According to Saunders et al., (2009) there are two types of sampling techniques. These are probability or representative sampling and non-probability or judgemental sampling. Bryman and Bell (2007) explains that, probability sampling is when each unit in the population has an equal chance of being selected. Further, Bryman and Bell (2007, p. 183) explain that, non -probability sampling involves human judgement in the selection process of a sample. De Vos et al. (2005, p. 202) also explains that with non- probability sampling, it is based on the judgement of the researcher suggesting that a sample University of Ghana http://ugspace.ug.edu.gh 62 is made up of elements that are highly representative of the population in terms of characteristics and attributes. For the purpose of this study, a sample size of 500 was used. According to Krejcie and Morgan (1970), with a population of 500,000,000 a sample size of about 384 is required, considering the population of mobile subscribers in Ghana less than this figure; the researcher‘s choice of a 500 sample size can be considered appropriate. Non-probability sampling technique involves selection of samples based on explicit questions or the purpose of the study. It also involves the level of information available to the researcher about identified case (Tashakkori & Teddlie, 1998). According to Neuman (2006), this technique is useful when working with a smaller sample size and when the researcher wants to select cases that are well informed. Students who are subscribers to the various network operators, apart from being a big segment that can be targeted with specific positioning and CSR strategies, are also well informed and can better understand and answer the questions. Saunders et al. (2009) identifies five kinds of non-probability sampling quota sampling, purposive sampling, snowball sampling, self-selection sampling and convenience sampling. The convenience sampling was used for the study. This was done to address issues of accessibility and proximity of respondents to the researcher since the researcher was resident on campus. Students from the University of Ghana main campus were sampled for the study. 4.5 Method of data collection A questionnaire was developed for the purpose of data collection. The questionnaire was divided into two sections (A & B). Section A was made up of questions concerning the background of respondents. It sought personal information about the respondent. It asked University of Ghana http://ugspace.ug.edu.gh 63 questions on gender, age, occupation, educational background, mobile network operator and number of years of using the network. The second section was made up of close ended questions developed on a five point Likert scale ranging from 1- strongly disagree, 2 – disagree, 3 – neutral, 4 - agree and 5 – strongly agree. Section B was subdivided into seven parts making up the six generic brand positioning strategies and the seventh is the extended positioning strategy proposed by Blankson (2008). These parts contain questions relating to the positioning strategies. The positioning strategies include price and quality (seven questions), image and ethos (eight questions), attributes (six questions), competition (six questions), user (five questions), application (four questions) and product class (four questions). The entire questionnaire covered a total of three pages. 4.7 Ethical considerations Saunders et al. (2009) explain that, ethics is the right kind of behaviour that the researcher exhibits to keep in confidence details of the respondents who participated in the survey. According to the authors, throughout the research, ―sensitive and personal data will be collected, analysed and findings reported‖ (p. 49) and that, the researcher must make sure no participant is affected negatively. Further, the authors suggested Trochim‘s (2006) principles which include: 1. Principle of voluntary participation. 2. Principle of informed consent. 3. Principle of no risk of harm. 4. Principle of confidential and anonymity. University of Ghana http://ugspace.ug.edu.gh 64 The researcher ensured that, these research ethics were followed during the data collection process, students were free to choose to participate or not and some chose not to. It was at the respondent‘s explicit consent to take part and the researcher explained that there was really no risk involved in taking part (health or security). There was no part of the questionnaire that required a respondent to indicate their address or name, this helped to ensure safety as well as confidentiality. 4.8 Data collection The questionnaires were distributed and received at the library and halls of residences for students. This is because students could be found easily at such places. The library was very instrumental in the data collection since the library is a study-place for students; they were seated and would intermittently take short breaks from serious studies. That was a convenient time to fill a questionnaire. Once students were out, they couldn‘t be bothered about filling a questionnaire since they had other personal engagements and wouldn‘t like to stand to fill a questionnaire and if they did, it will be in a rush and the questions would not be properly read through. At the halls of residence, the students were more willing to fill the questionnaires because they were comfortable and relaxed. In all, a total of 500 questionnaires were distributed out of which 438 were found useful for the analysis. This represented 87.6 per cent. The rest were either not returned, not completely filled or had more than one answer ticked for the same question. 4.9 Data Analysis Emery and Cooper (2003) asserts that raw data obtained from a research is not useful until it has been transformed into information to enable decision making. Analysing the data University of Ghana http://ugspace.ug.edu.gh 65 included developing summaries, applying statistical inferences and the use of tables and charts to interpret the raw data. The Statistical Package for Social Scientist (SPSS 18.0) software was used for this analysis. Data was then presented in tables, graphs and narratives. 4.10 Conclusion This chapter described the research methodology. It began with an introduction of the chapter and discussed the unit of analysis for the research. It followed with the research approach and research strategy. Other issues that were discussed in this chapter include the research design, data collection process, and the survey instrument. The methodology employed in this research is consistent with other similar studies. This was to ensure that results would be valid and reliable and could also be sued as bases for similar studies. University of Ghana http://ugspace.ug.edu.gh 66 CHAPTER FIVE ANALYSIS AND DISCUSSION 5.0 Introduction This chapter presents the findings of the study. The findings have been presented in the form of frequency and percentages and tables, all in relation to the objectives of the study. The presentation of the analysis is subdivided into three sections; the first part of the findings was on the demographic information of participants. The second part of the findings revealed details of the descriptive statistics of the various statements. The final aspect of the chapter will assess the positioning strategy of the telecommunication companies. 5.1 Demographic profile of respondents Respondents for the survey have been profiled with respect to their gender, age, and type of networks used. In all, four hundred and thirty-eight (438) questionnaires were returned from the total of five hundred students sampled. The table below summaries the details of the demographic statistics obtained from the study. University of Ghana http://ugspace.ug.edu.gh 67 Table 5. 1 - Shows the demographic characteristics of the participants Variables Frequency Percentage (%) Age Less than 20 155 36 21-30 275 62.8 31-40 1 0.2 Gender Male 229 52.5 Female 209 47.5 Level of education Undergraduate 425 97 Postgraduate 13 3 Occupation Student 429 97.9 salaried worker 9 2.1 Mobile network operator MTN 178 40.6 Tigo 86 19.6 Vodafone 105 24.0 Airtel 53 12.1 Glo 16 3.7 Years of usage 0-5 years 282 64.4 6-10years 137 31.3 above 10 years 19 4.3 Out of the four hundred and thirty-eight (438) valid questionnaires obtained, 229 were males whilst 209 were females representing 52.5% and 47.5% respectively. Additionally, as evident from table 5.1 above, 425 (97%) and 13 (3%) were undergraduates and postgraduates respectively. This, however, goes to affirm the proportion of undergraduate students to that of postgraduates in the University of Ghana. The results also show that majority of the sampled respondents, 275 (62.8%) were within the age range of 21-30 years. Furthermore, the second majority were those who were aged less than 20, they also numbered 155 (36%). Those between the ages of 31-40 counted 1(0.2%). This goes to prove the youthful nature of the student population. Considering the occupation University of Ghana http://ugspace.ug.edu.gh 68 of the respondents, 429 (97.9%) indicated they were students only, whereas 9 (2.1%) were employed in some other professions even though they were students. With respect to the type of networks which the sampled respondents are using (as major line), 178 (40.6%) were MTN subscribers, followed by Vodafone, which had 105 (24%) of the respondents, 86 (19.6%) of the respondents‘ specified Tigo as their network provider, while 53 (12.1%) indicated Airtel as their network provider. Glo had the least number of respondents‘ subscribed to their network; only 16 (3.7%) respondents specified Glo as their network provider. With respect to the number of years each respondent has been with his/her network provider, the study revealed that 282 (64.4%) and 137 (31.3%) of the respondents had used their network for 0-5 years and 6-10 years respectively. Only 19 respondents, representing 4.3% had been with their network provider for more than ten (10) years. This information is important in that it helps the researcher understand the level of understanding and experience with which the respondents assess the strategies of their mobile network operators. 5.2 Data analysis 5.2.1 Descriptive statistic The table 5.2 shows the descriptive statistic as extracted from the data collected. It displays the means and standard deviations of the various variables used and these indicate the extent to which the respondents disagreed or agreed with the statements in the questionnaire. The mean results of the variables indicate how each statement performed from the 438 respondents‘ points of view. The means for the various variables ranges from a minimum of 1.0161 (My network operator/service provider's services are quality) to a maximum of 4.1279 (My network operator uses celebrities in its adverts). This is an indication that whilst University of Ghana http://ugspace.ug.edu.gh 69 customers strongly disagree that their network providers‘ provide them with quality services; they also affirmed that the most of the network operators use celebrities in their advertising. This could possibly be an indication that most of the service providers rather than investing money to improve their service, concentrate on signing brand ambassadors who they believe can drive their brand. Table 5. 2: Descriptive statistics of items Statement Mean Std. deviation T Df Sig. (2- tailed) My network operator/service provider charges reasonable prices 1.6427 .48459 43.730 437 .000 My network operator/service provider's price are value for money 1.4783 .50467 50.245 437 .000 My network operator/service provider's prices are affordable 2.0023 .17246 47.525 437 .000 My network operator/service provider's services are quality 1.0161 .17252 45.634 437 .000 My network operator/service provider provides personal attention 2.1849 1.19497 23.782 437 .000 My network operator/service provider considers people as important 1.3735 .53886 54.633 437 .000 My network operator/service provider is friendly 2.9292 1.40187 55.852 437 .000 My network operator/service provider is socially responsible 3.0595 1.27291 63.463 437 .000 My network operator/service provider has made a real difference through its social responsible actions 2.9794 1.31052 59.729 437 .000 I am on this network because of its good actions in society 2.9245 1.33968 48.404 437 .000 I talk favourably about my network operator because of its social responsibility 3.1648 2.78188 45.076 437 .000 I like my network operator because of its social responsibility behaviours 3.1716 1.21358 49.299 437 .000 My network operator's technology 3.2808 1.22937 36.172 437 .000 University of Ghana http://ugspace.ug.edu.gh 70 are environmentally friendly My network operator is known for its commitment to society 3.4384 1.13387 58.288 437 .000 I patronise services of my network operator because of its social responsibility 3.3196 1.16318 50.657 437 .000 My network operator has nationwide network coverage in Ghana 2.7854 1.20433 55.326 437 .000 My network operator has a nice logo 2.7763 1.28899 70.798 437 .000 My network operator has a wide range of offerings 2.8607 1.21443 67.950 437 .000 My network operator has unique services 3.1758 1.83748 64.020 437 .000 My network operator is attractive 3.1716 1.13748 60.867 437 .000 My network operator uses a better technology 2.7703 1.13533 61.739 437 .000 My network operator engages in a lot of advertising 3.5708 1.35074 47.445 437 .000 My network operator has a lot of different promotions running in the media 3.6804 1.08795 71.358 437 .000 My network operator uses aggressive advertising messages 3.6934 1.13626 44.632 437 .000 My network operator uses advertising to counter competitors 3.4726 1.13522 63.634 437 .000 My network operator uses persuasive messages to target different customers 3.3995 1.16890 62.854 437 .000 My network operator has adverts which encourages people to switch to its network 3.3318 1.12813 64.876 437 .000 My network operator uses celebrities in its adverts 4.1279 1.82083 57.691 437 .000 I am on this network because i saw a celebrity in an advert by my network operator 3.7574 1.10076 35.229 437 .000 I like this network because it uses celebrities in its adverts 2.8059 1.31572 35.012 437 .000 I have a positive perception for my network operator because of the celebrities it uses in its adverts 3.5000 1.14583 37.892 437 .000 My network operator uses celebrities for product or service endorsements 3.5000 1.16539 38.702 437 .000 my network operator shows me best ways to use its services 3.7231 1.19967 63.959 437 .000 I get help from my network operator any time i have challenges 3.5520 1.28117 52.483 437 .000 University of Ghana http://ugspace.ug.edu.gh 71 with my network My network operator shows me the promotional package that is best for me 1.9677 1.16224 54.625 437 .000 Customer service personnel show me how to use the service of my network operator 1.9584 1.16394 57.370 437 .000 My perception of this network is that it shows prestige 2.0949 1.14910 30.570 437 .000 My network shows status 2.9099 1.56457 55.430 437 .000 My network is a top of the range brand 3.4226 1.11353 62.679 437 .000 My network is for upper class customers 3.3256 1.31857 48.971 437 .000 Table 5.2 also shows the standard deviation of the respondents‘ scores. The standard deviation revealed the extent to which each respondents score deviates from the mean score of that particular statement. The standard deviation scores for the studies reveal that each of the score for each respondent deviated very well from the mean of their score for that particular statement. The standard deviation figures range from 0.17246 to 2.78188 representing the least and the highest respectively. A low standard deviation in this sense suggests that responses from that particular statement were not very different in themselves using their mean scores or the responses of the respondents were not too different from each other. On the other hand, a high standard deviation also suggests that statement had responses that were very different. University of Ghana http://ugspace.ug.edu.gh 72 Table 5. 3: Descriptive statistics and reliability of the variables Strategies N Means Std. Deviation Cronbach alpha (α) Price and quality 438 3.0812 1.05369 .750 Image and ethos 438 3.5226 .83195 .737 Attributes 438 3.0451 .90613 .747 Competition 438 3.5683 .80162 .770 User 438 2.4968 .80011 .810 Application 438 3.3613 1.02152 .736 Product class 438 3.3409 1.12826 .768 The table above (Table 5.3) shows the reliability of the variables as well as the means and standard deviations of the variables. Per the Cronbach‘s alpha coefficient results, it is clear that the scale for the variables exceeded the minimum acceptable value of 0.5 for social science studies and thus proves to be adequate reliability (Hair et al, 2010; Parasuraman et al, 1988). The variables listed above represents the various positioning strategies that the customers perceive their network operators to be using. The mean results of the variables indicate how each of the variables performed from the 438 respondents‘ perspective. As a benchmark, a mean score above 3.5 (Ibidunni et al., 2014) will mean customers agree that the network operators have adopted that particular strategy, below 2.5 suggests customers disagree the network has adopted such a strategy, whereas figures between 2.5 and 3.5 means the customer is indifferent as to whether the service provider has adopted that strategy. The means for the various variables ranges from a minimum of 2.4968 (User) to a maximum of 3.5683 (Competition). Thus, the least figure suggests that customers disagree that their network providers adopt a user positioning strategy, whereas the highest mean also suggests the customers perceive their network operators as pursuing the competition strategy. From the table above, the highest mean was scored by the competition strategy (3.5683), followed University of Ghana http://ugspace.ug.edu.gh 73 by ―image and ethos‖ (3.5226). It can therefore be explained that these two are the most used strategies as perceived by the respondents. The next was Application (3.3613) and then to product class (3.3409). Price and quality and attribute scored 3.0812 and 3.0451 respectively, while the lowest was recorded by the ―user‖ variable (2.496). Table 5. 4 - Shows the mean of the positioning strategies that telecom companies adopt Strategies Service operator N Mean Std deviation F P Price and quality Mtn 178 2.5616 .83123 21.537 .000 Vodafone 86 3.3355 .95285 Tigo 105 3.4931 1.18522 Airtel 53 3.4016 .89874 Glo 16 3.6250 1.02867 Image and ethos Mtn 178 3.0812 1.05369 2.366 .052 Vodafone 86 3.4482 .71465 Tigo 105 3.7451 .96314 Airtel 53 3.5429 .81257 Glo 16 3.4465 .89022 Attributes Mtn 178 3.2813 1.06235 6.085 .000 Vodafone 86 3.5226 .83195 Tigo 105 2.7986 .86859 Airtel 53 3.2735 1.03141 Glo 16 3.2243 .76092 Competition Mtn 178 3.1604 .83471 3.919 .040 Vodafone 86 3.0000 1.12797 Tigo 105 3.0451 .90613 Airtel 53 3.5486 .72010 Glo 16 3.7275 .74927 User Mtn 178 3.6359 .97818 1.683 .153 Vodafone 86 3.4340 .63156 Tigo 105 2.9479 .87288 Airtel 53 3.5683 .80162 Glo 16 2.4648 .76413 Application Mtn 178 2.6635 .77103 5.273 .000 Vodafone 86 2.3961 .84805 Tigo 105 2.4679 .82550 University of Ghana http://ugspace.ug.edu.gh 74 Airtel 53 2.7000 .87331 Glo 16 2.4968 .80011 Product class Mtn 178 3.1086 .98534 2.510 .041 Vodafone 86 3.6458 1.00316 Tigo 105 3.5149 .98604 Airtel 53 3.4764 .97599 Glo 16 3.2813 1.32248 Table 5.4 above shows how the means of each variable as scored by the various network providers. These mean scores were compared using an Analysis of Variance (ANOVA) to ascertain the F-ratio and the level of significance of that comparison. The results show that there was significant difference between the mean scores of the various network providers for price and quality (F = 21.537; p = .000), competition (F = 3.919; p = .040), Attributes (F =6 .085; p = .000), application (F = 5.273; p = .000) and product class (F = 2.510; p = .041). This suggests that the mean scores of these network providers with respect to the particular positioning strategies was significantly different from each other. This suggests to the researcher that the telecommunication networks either adopt or do not adopt these strategies differently, that is on different levels; some with a greater degree and others with a lesser degree. Only two of the variables were found not to be significant; these include image and ethos (F =2.366; p = .052) and user (F = 1.683; p = .153). This means that for these two variables the respondents view the strategies of these network providers as not being significantly different from each other. In this view, the degrees to which telecommunication network providers adopt or do not adopt these strategies are the same. Table 5.5 below shows the mean difference of the various comparisons, to ascertain which network providers‘ mean was larger or smaller. University of Ghana http://ugspace.ug.edu.gh 75 Table 5. 5 - Shows the mean difference of the positioning strategies that telecom companies adopt Strategies Service operator MT N Vodafone Tigo Airtel Glo Price and quality Mtn 1 -0.77397* -0.93156* -0.84004* -1.06342* Vodafone 1 -0.15758 0.06607 0.28945 Tigo 1 -0.0361 0.13187 Airtel 1 0.22338 Glo 1 Image and ethos Mtn 1 0.47496* 0.42569* 0.36181 0.20143 Vodafone 1 0.04926 0.11315 0.21353 Tigo 1 0.06389 0.22426 Airtel 1 0.16038 Glo 1 Attributes Mtn 1 0.29689 0.09465 0.00167 0.16696 Vodafone 1 0.20224 0.29856 0.46385 Tigo 1 0.09632 0.26161 Airtel 1 0.16529 Glo 1 Competition Mtn 1 -0.17888 -0.08735 0.11461 0.60065* Vodafone 1 0.09153 0.29349 0.77953* Tigo 1 0.20196 0.68801* Airtel 1 0.48605 Glo 1 User Mtn 1 -0.19876 0.06869 0.00315 0.23523 Vodafone 1 0.26745 0.19560 0.03647 Tigo 1 0.07185 -0.30392 Airtel 1 0.23208 Glo 1 Application Mtn 1 -0.53726* -0.40628* -0.36784 -0.17268 Vodafone 1 0.13098 0.16942 0.36458 Tigo 1 0.38440 0.23360 Airtel 1 0.19517 Glo 1 Product class Mtn 1 -0.07245 0.33638 0.30018 0.29777 Vodafone 1 0.40882 0.37262 0.37022 Tigo 1 0.03620 0.03860 Airtel 1 -0.00240 Glo 1 University of Ghana http://ugspace.ug.edu.gh 76 Table 5.5 shows the mean difference of the positioning strategies that telecom companies adopt, which is a comparison of the mean scores realised by the various network providers in connection with the positioning strategies. Particularly, the mean differences were extracted from a Hochberg Post Hoc analysis; this tool was used because the sample sizes of the units of analysis were very different from each other (Field, 2005). With respect to price and quality, MTN was found to have a greater mean than Tigo (-0.93156, p≤0.05) and Vodafone (-0.77397, p≤0.05), Airtel (-0.84004, p≤0.05) and Glo (-1.06342, p≤0.05); this difference was found to be significant. Under this same variable, Vodafone also had a higher mean than Airtel. These results suggest that MTN adopts a price and quality positioning strategy more than its counterparts. With respect to competition, Glo was found to have a greater mean than MTN (0.60065, p≤0.05), Vodafone (0.77953, p≤0.05) and Tigo (0.68801, p≤0.05). This also suggests quite evidently, that Glo is considered by its customers as adopting a competitive strategy more than its counterparts. With respect to image and ethos, the result shows that MTN has a greater mean than Vodafone (0.47496, p≤0.05) and Tigo (0.42569, p≤0.05). Lastly, with regards to application, MTN again has a greater mean than Vodafone (0.53726, p≤0.05) and Tigo (0.40628, p≤0.05). Majority of the mean differences between the service providers were not statistically significant; which could mean that the mean scores of these service operators with regards to those strategies are not different from each other. University of Ghana http://ugspace.ug.edu.gh 77 Figure 5: The dominant positioning strategy adopted by the telecom company Figure 5 above displays the customers‘ view of which positioning strategy is highly used by the network providers. The results show that the ―competition‖ strategy had the highest mean (3.5683) to show that it was the most dominant strategy used by telecommunication networks in Ghana. Followed by ―image and ethos‖ (3.5226) and then to ―application‖ (3.3613). On the other hand, ―user‖ strategy had the lowest mean (2.4968), suggesting it was the lowest positioning strategy adopted by the network service providers. University of Ghana http://ugspace.ug.edu.gh 78 5.3 Discussion of results The mobile telephony market is one of the fastest-growing service segments in telecommunications. Mahmoud and Hinson (2012) suggest that, Ghana‘s telecommunication sector has gone through several stages after independence. These stages have finally evolved the telecommunication industry as one of the leading innovative industries in Ghana. This great increase in tele-density is attributed to the establishment and the effectiveness of the NCA (Ghanaweb, 2013), who is regulator of the industry. This has also led to increased competition as asserted by Osiakwan (2003) and Goni (2011). As a result of the growth in the industry, the telecommunication networks providers have adopted several strategies in their bid to win over the mobile market; these include competition, user, price and quality, attributes and product class strategies (Hooley et al., 1998). A recently emerging strategy as a result of concerns for the social environment (Worthington & Horne, 1993) is the image and ethos strategy. Blankson (2008) described this as the seventh strategy and explains it is basically an attempt by firms to differentiate themselves along the lines of good external image, ethos and good citizenry (Cobb, 2002; Guerrera & Firn, 2001; The Economist, 2008). The current study seeks to assess the various positioning strategies being used by the network providers. To illustrate, the results from the descriptive statistic of the positioning strategies showed that from the customers‘ point of view, the telecommunication companies in Ghana only adopt two strategies (competition and image and ethos) using the 3.5 mean score as benchmark (Ibidunni et al., 2014). This answered objective two which was to examine the different positioning strategies employed by the telecom companies in Ghana. The customers are indifferent about four of the strategies (product class, attributes, price and quality and University of Ghana http://ugspace.ug.edu.gh 79 application) and disagree that their service providers adopt the ―user‖ strategy. The implication to this could be that, customers are not in tune with the telecom operators on the use of brand ambassadors for promotional activities. The discussion would be focused on these two (competition and image and ethos) as well as on the variables that showed a significant difference between the various network providers (competition, product class, attributes, price and quality and application). From the results, the study identified that competition (3.5683) was the most dominantly used positioning strategy in the telecommunication industry; this is in answer to objective three which was to examine the dominant positioning strategy employed by the telecom firms. This finding supports the results of several scholars (e.g. Osiakwan, 2003; Goni, 2011), who postulated that the industry was a very competitive one, and also suggested that the motive for most of the promotional activities in the sector is to fight off competition. With regard to the individual network providers, the result also revealed that Glo had a greater mean than MTN (0.60065, p≤0.05), Vodafone (0.77953, p≤0.05) and Tigo (0.68801, p≤0.05) with regard to competition; this indicates that Glo adopts the competitive strategy more than any other network provider. This also suggests plainly that Glo is considered by customers as the most competitive network provider. This could well be as a result of Glo‘s penetrative strategy in attempts to break into the telecommunication market in Ghana, being the last of the network providers to start operations in Ghana. The current study revealed that the companies in the mobile telecommunication industry use the image and ethos as a positioning strategy (image and ethos = 3.5226). This result also answers objective one, which sought to assess whether the firms were adopting CSR (image and ethos) as a positioning strategy. This is supportive of previous literature describing some University of Ghana http://ugspace.ug.edu.gh 80 of the companies in the telecommunication industry as being CSR brands (Hinson & Kodua, 2012). Guerrera et al. (2001) also explain the strategy is adopted by several firms; with the aim of differentiating themselves as good citizens and as socially responsible firms. This may well be the situation in reality as most of the telecommunication companies undertake television programs that show to the public the kind of CSR activities the firm is and has been engaging in. For example, MTN announced its commitment to pump over GH¢4 million into various community projects to enhance many more lives in the various communities (Ghana bizmedia, 2011); Vodafone also recently introduced the ―Vodafone Health Line‖ (Vodafoneghana, 2013), whereas Airtel also has the ―Airtel touching lives program‖ (Airtelghana, 2013). The ANOVA result did not show a significant difference between the firms‘ adoption of this strategy (image and ethos); in other words, the magnitude of the usage of this strategy was not very different from each of the network providers. However, further statistical probing with the Hochberg Post Hoc analysis revealed a significant difference existed only between the CSR strategy of MTN, Vodafone and Tigo, but the rest were the same. The Hochberg Post Hoc analysis results claimed that MTN from the perspective of customers, adopts the CSR positioning strategy more than Vodafone and Tigo. For instance, MTN was found to have a greater mean than Tigo (0.42569, p≤0.05) and Vodafone (0.47496, p≤0.05) with respect to image and ethos. This difference was found to be significant. This finding was supported in the literature, in that MTN was awarded the ―Ghana Club 100 Best Company in CSR‖ by Ghana Investment Promotion Centre (GIPC) during their 2009 edition of annual awards scheme for corporate organisations dubbed ―Ghana Club 100‖ (GIPC Report, 2010). University of Ghana http://ugspace.ug.edu.gh 81 Even though the means of such positioning strategies as user; attributes; price and quality; application and product class indicate that customers did not agree or were indifferent that network providers were adopting such strategies, the results from the ANOVA test reveal that there were still some significant differences between the levels of adoption for each service provider. For example, the current study revealed that customers are indifferent as to whether telecommunication companies in Ghana adopt a ―price and quality‖ strategy (3.0812). This was not in line with earlier literature. Goni (2011) for example suggests that, the competition in the telecommunication industry is not only in terms of market share but also in terms of affordable prices and the quality of service. On the individual level, respondents indicated that MTN uses the ―price and quality‖ strategy more than any of the other network providers. This could well be because, within the time of the data collection, MTN had just introduced some new promotional packages (MTN Aben woha promo). 5.4 Chapter conclusion This chapter presented the results of the research findings in line with the objectives as well as research questions as discussed in chapter one of the research thesis. The next chapter discusses the summary of the study as well as drawing conclusion based on other research findings. Appropriate wordings and tables have been used to interpret the findings of the survey to give graphical clarification. The quantitative analysis of the findings support the applicability of the conceptual framework presented under chapter two of this study. From the conceptual framework, each of the seven positioning strategies is communicated to the customers who invariably form a certain perception about the service provider. Based on the customer‘s perception, a service provider is seen as engaging in any of the seven positioning University of Ghana http://ugspace.ug.edu.gh 82 strategies (price and quality, image and ethos, attributes, competition, user, application or product class). It was evident that, the service providers engage in all the seven generic positioning strategies although to various degrees. It is also worth mentioning that, the findings as shown, have some consistencies with prior empirical studies in the area looking at the work of Osiakwan (2003), Goni (2011), Guerrera et al. (2001) and Hinson & Kodua (2012). University of Ghana http://ugspace.ug.edu.gh 83 CHAPTER SIX SUMMARY, CONCLUSION AND RECOMMENDATIONS 6.0 Introduction The previous chapter presented the empirical tests and results from the study. This concluding chapter presents a summary of the research, outlines the major findings of the research, provides a conclusion and makes a number of recommendations for future studies and also for managerial decision making. 6.1 Summary of the study The study explored issues concerning CSR as a positioning strategy within the telecommunications industry. Precisely, the study wanted to examine if CSR has been used as a positioning strategy in the telecommunication industry in Ghana. It was premised on the fact that the telecom companies in Ghana invest considerable amounts of money into CSR activities each year (Ofori & Hinson, 2007). Also, in the service sector, such as the telecom industry, organisations can hardly differentiate their offerings, making it difficult to gain competitive advantage on product-only strategies (Mahmoud & Hinson, 2012). To explore this issue, the researcher considered three objectives. The first objective was to examine if the telecom companies in Ghana have employed CSR (image and ethos) as a positioning strategy. The second objective was to examine the different positioning strategies employed by the telecom companies in Ghana, whereas the third objective was to examine the dominant positioning strategies employed by the telecom companies in Ghana. To be able to find answers to these objectives, the study reviewed existing literature on CSR and positioning strategies. It was established that CSR and positioning have been examined in the literature as two distinct concepts. However, a number of studies have tried to examine University of Ghana http://ugspace.ug.edu.gh 84 CSR positioning using customers‘ intentions and beliefs rather than the generic positioning strategies. Additionally, such studies were mainly carried out within developed countries‘ context (Anselmsson & Johansson, 2007; Du et al., 2007). It also established that literature on both CSR and positioning needed to be developed especially in Ghana (Ofori & Hinson, 2007). The CSR literature focuses more on the banking industry. Blankson (2008) proposed an extension to the generic positioning model put forward by Hooley and Saunders (1993) and Hooley et al. (1998) to include image and ethos which the author described as the general awareness by organisations to improve their corporate image and the increase in company empathy with humane, sympathetic and environmental friendly causes, and the growing consumer awareness about cause-related marketing. According to the author, several organisations are trying very hard to differentiate themselves along the lines of good external image, ethos and good citizenry activities. The seven positioning strategies were thus identified and a questionnaire was developed bearing in mind the conceptual framework and research objectives. A survey was then carried out with four hundred and thirty-eight (438) valid questionnaires obtained from respondents out of the total of five hundred (500) administered, representing a response rate of 87.6%. The respondents were student residing on the University of Ghana main campus. A convenience sampling was employed. Currently, there are six telecommunication organisations operating in the country. Statistics from the NCA showed that MTN, Vodafone, Tigo, Airtel, Glo and Expresso have market share in decreasing order (NCA, 2013). Also, there were no respondents for Expresso, and this might be the result of market share, since the service provider has the lowest share in the University of Ghana http://ugspace.ug.edu.gh 85 market of 0.54% (NCA, 2014). However, some scholars also explained that this could be attributed to the fact that most respondents use more than one network operator but answered the question with respect to their most frequently used network (Asiedu & Sarfo, 2013). The data was analysed using descriptive statistics, exploratory factor analysis and multiple regressions. The Statistical Package for Social Science (SPSS) version 18.0 was used for the analysis and helped generate the tables and other numerical results. In all, 229 males and 209 females took part in the study representing 52.5% and 47.5% respectively. 6.2 Major finding Findings from the analysis performed from the study have been discussed in relation to the objectives of the study. 6.2.1 To examine if the telecom companies in Ghana have employed CSR (image and ethos) as a positioning strategy. The study adopted a likert scale and stipulated that figures above the 3.5 threshold were to be considered as indicating ―agree‖. In view of this, the result from the studies indicated that respondent or customers of the various networks agree that their network providers were adopting image and ethos as a positioning strategy (image and ethos = 3.5226). This was also somewhat supported in previous studies (Hinson and Kodua, 2012); for example, Hinson and Kodua (2012) noted that there has been a lot of concentration on CSR activities among the telecommunication firms. In this respect, Guerrera & Firn (2001) explain the strategy is adopted by these firms with the aim of differentiating themselves as good citizens and socially responsible firms. University of Ghana http://ugspace.ug.edu.gh 86 6.2.2 To examine the different positioning strategies employed by the telecom companies in Ghana. The results from the descriptive statistic of the positioning strategies showed that from the customer‘s point of view, the telecommunication companies in Ghana only adopt two strategies using the 3.5 benchmark indicated above (see chapter five). These strategies include the competition (Nysveen et al, 2005; Eshghi et al, 2007) and image and ethos strategy (Hinson and Kodua, 2012; Vodafoneghana, 2013; Airtelghana, 2013). 6.2.3 To examine the dominant positioning strategies employed by the telecom companies in Ghana. The study identified that competitive strategy was the most dominantly used positioning strategy in the telecommunication industry. This finding supports the results of several scholars (Osiakwan, 2003; Goni, 2011), who postulated that the industry was a very competitive one, and also suggested that the motive for most of the promotional activities in the sector is to fight off competition. Glo, from the perspective of the customers adopts the competitive strategy more than any of the other network providers. Glo can therefore be said to be considered by customers as the most competitive network provider. University of Ghana http://ugspace.ug.edu.gh 87 Figure 6: Diagrammatic summary of customers’ perception of positioning strategies adopted by telecom providers in Ghana 6.3 Recommendations of study The usefulness of this study is that it provides a general empirical contribution to the discussion of positioning using the generic poisoning framework proposed by Hooley and Saunders (1993) and Hooley et al. (1998) and extended by Blankson (2008). The study was based on consumers' views on positioning strategies employed by the telecommunication firms in Ghana. The study also identified the dominant (popular) generic positioning strategy. Additionally, the research also responds to calls made by scholars including Johar and Sirgy (1989) and Rigger (1995) that the increase in positioning models would help researchers to NOT ADOPTED POSITIONING STRATEGIES NOT CLEARLY ADOPTED STRATEGIES (CUSTOMER WERE INDIFFERENT) ADOPTED POSITIONING STRATEGIES Competition 3.5683 Image and Ethos 3.5226 Price and Quality 3.0812 Application 3.3613 Attributes 3.0451 Product class 3.3409 User 2.4968 University of Ghana http://ugspace.ug.edu.gh 88 guide marketing managers and marketing researchers as to how and when to use what positioning models. Although the study does not propose another positioning strategy, it goes to affirm Blankson‘s (2008) extension of the generic positioning strategies and validates the inclusion of image and ethos as a generic positioning strategy. The study also answers Hooley et al.’s (2001) call for research into the positioning dimensions that firms use to position their offerings and also reacts to suggestions for further research into issues about positioning in the services sector (Arnott, 1992; 1993; Blankson, 1999; Blankson & Kalafatis, 2007). The research is limited to the Ghanaian setting and in views of the global nature of the telecommunication companies, it is suggested that future studies be carried out in other jurisdictions to affirm the validity of the results. It is recognised that the remit of the study is also narrow in that it is based on the perceptions of mostly undergraduate students whose views may not be representative of the larger populace. This raises general questions without further replications and validations. It would therefore be appropriate to carry out a similar study using a sample that is spread across members of the general public. The same procedure could also compare consumer perceptions with that of the managers of the telecommunication companies to enhance the analysis of similarities in positioning activities. Scholars in recent times consent to the changing consumer need, behaviour as well as changing trend in the market (Devlin, Worthington & Gerrard, 2007). This rapidly changing market situation almost accounts for the rise in competition and the quest for companies to find and acquire a competitive advantage. According to Blankson (2008), this changing trend calls for a longitudinal study with respect to the positioning strategies of firms as the changing trend can impact and affect the positioning strategy of the firm. In view of this University of Ghana http://ugspace.ug.edu.gh 89 suggestion, the current study also recommends for future studies the need to focus efforts on longitudinal studies in the telecommunication industry to assess how the changing trends affect the positioning strategy of the firms in the past, present and future. 6.4 Managerial implications of study Managers must understand that, it is not conclusive that customers perceive the firm as employing a specific positioning strategy but also the specific content of the said strategy can have an influence on the effectiveness of that particular positioning strategy. It is therefore advised that managers take a deeper look at the content of their positioning strategy rather than follow what other competitors are doing. Managers must also look at what strategy works best for them, as from the study, some firms did well within specific strategies like Glo in the competitive strategy. Management must not try to be master of all but based on the specific need at a point in time, must focus their effort at achieving one specific positioning strategy as this will also give them credibility and avoid ambiguity in the eyes of customers (Blankson, 2008). 6.5 Research limitations and practical challenges One major limitation to this research was the respondents in the survey. The convenience sampling did not capture customers from Expresso although it could be explained by the large percentages commanded by MTN and Vodafone alone and the chance to meet a mobile phone user who uses Expresso sim card. It could also be attributed to the fact that respondents who use Expresso also use another network as their main line and impressing upon them to answer for Expresso will put a bias on the research. University of Ghana http://ugspace.ug.edu.gh 90 Other limitations include geographical and one country study. 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University of Ghana http://ugspace.ug.edu.gh 107 INTERNET REFERENCE http://www.business.myjoyonline.com/pages/news/201208/91814.php, 12th Mach, 2013, 1:50 pm http://www.samuelobour.com/2011/07/07/mobile-number-portability-takes-off-in-ghana/ http://www.expressotelecom.com/en/african-presence/ghana/, 12th Mach, 2013, 1:20 pm http://www.gipcghana.com/previous-gc-100-editions accessed March 11, 2013, 2:15pm http://www. airtelghana.com (Last visited on 12th February, 2013, 1:30 pm) http://www. vodafoneghana.com (Last visited on 12th February, 2013, 1: 45pm) http://www.fortressofsolitude.co.za/2011/11/dstv-mobile-mtn, accessed April 7, 2013, 4: pm http://www.ghanabizmedia.com/ghanabizmedia/july-2011-bulletins/353-mtn-set-to-boost-its- csr activities.pdf (accessed 15th May 2013, 1:15 pm) http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=133752, March 9, 2013, 10:00 am http://www.mtn.com.gh/about-mtn, accessed 30th January, 2014, 2:18 pm http://www.nca.org.gh/128/69/Legislations.html, 9th Mach 2013, 11:00 am http://www.nca.org.gh/19/141/Vision,-Mission-And-Objectives.html, 9th Mach, 2013, 10: 35 am http://www.nca.org.gh/40/105/Market-Share-Statistics.html, 11th April, 2014, 10: 27am http://zaindarling.blogspot.com/2011/10/expresso-donates-to-borstal-home.html accessed May 15, 2014 9:20 am http://vodafone.com.gh/About-Us/Vodafone-Ghana/Vodafone-Ghana-Foundation.aspx accessed Wednesday May 14, 2014, 2: 30 pm http://news.peacefmonline.com/pages/social/201312/182600.php accessed May 15, 2014, 9:40 am University of Ghana http://ugspace.ug.edu.gh 108 http://citifmonline.net/news/airtel-ghana-donates-to-echo-hills-orphanage accessed May 14, 2014, 9:45 am http://www.moc.gov.gh/about-us/moc.html accessed May 15, 2014, 10:20 am http://thechronicle.com.gh/tigo-donates-to-ada-health-centre-2/, accessed May 15, 2014, 10: 40 http://www.modernghana.com/news/499448/1/tigo-donates-to-sakumono-schools.html accessed May 15, 2014 10:50 http://www.biztechafrica.com/article/tigo-donates-street-library-tent/4855/#.U3SaW1d9gtw accessed May 15, 2014, 11: 00 am http://www.mtn.com.gh/about-mtn/community/mtn-ghana-foundation accessed May 15, 2014, 9:50 am http://www.mtn.com.gh/about-mtn/press/mtn-mobilizes-625-pints-of-blood-on- valentine%27s day-blood-donation-exercise accessed May 15, 2014, 2:00 pm http://www.todaygh.com/2014/04/25/mtn-donates-asantehene/ accessed May, 15 2014, 2:30 pm http://www.myjcr.com/news/high-schools/mtn-ghana-foundation-gives-to-kumasi-girls-shs- 538 accessed May 15, 2014, 2:50 pm http://www.myjcr.com/news/high-schools/mtn-ghana-foundation-supports-ahmadiyya-shs- 510 accessed May 15, 2014, 4:00 pm. http://www.ghanaweb.com/GhanaHomePage/SportsArchive/artikel.php?ID=157260 accessed May 15, 2014 5:30 pm http://www.myjoyonline.com/sports/2014/March-11th/glo-ghana-to-sponsor-customers-to brazil.php accessed May 15, 2014, 6:00 pm University of Ghana http://ugspace.ug.edu.gh 109 APPENDIX Appendix 1: Questionnaire This research seeks to examine if the telecom companies in Ghana have employed CSR Corporate Social Responsibility (image and ethos) as a positioning strategy. This will help streamline CSR and positioning activities engaged in by the telecommunication companies operating in Ghana. Please answer as objectively as possible to help put forward concrete recommendations. All information provided is purely for academic purpose and would be treated as such. Background of respondent (please tick where appropriate) 1. Age a) 20 or less[ ] b) 21-31[ ] c) 31-40[ ] d) 41-50[ ] e) 51 and above[ ] 2. Gender a) Male[ ] b) Female[ ] 3. Education a) Diploma [ ] b) Degree [ ] c) Post graduate[ ] d) Doctoral [ ] 4. Occupation: a) Student [ ] b) Salaried worker [ ] c) Self-employed [ ] d) other.......................................... 5. Mobile Network operator: a) MTN [ ] b) Vodafone [ ] c) Tigo [ ] d) Airtel [ ] e) Glo [ ] f) Expresso [ ] 6. Year of using the network a) 0-5 years ago [ ] b) 6-10 years ago [ ] c) above 10 years [ ] University of Ghana http://ugspace.ug.edu.gh 110 Please note that the information you give below should relate to the mobile network operator you listed in (5) above. Please indicate to what extent you agree or disagree to the following statements concerning your mobile network provider. Please tick appropriately. Tick any from 1 to 5 the one that best fits the question. 1 being strongly disagree, 2 being disagree, 3 being neutral, 4 being agree and 5 being strongly agree. Positioning Strategies Price/quality 1 2 3 4 5 My network operator/service provider charges reasonable prices My network operator/service provider‘s prices are value for money My network operator/service provider‘s prices are affordable My network operator/service provider‘s services are quality My network operator/service provider provides personal attention My network operator/service provider considers people as important My network operator /service provider is friendly Image and Ethos 1 2 3 4 5 University of Ghana http://ugspace.ug.edu.gh 111 My network operator/service provider is socially responsible My network operator/service provider has made a real difference through its social responsibility actions I am on this network because of its good actions in society I talk favourably about my network operator because of its social responsibility I like my network operator because of its social responsibility behaviours My networker operator‘s technology are environmentally friendly My network operator is known for its commitment to society I patronise services of my network operator because of its social responsibility Attributes 1 2 3 4 5 My network operator has nationwide network coverage in Ghana My network operator has a nice logo My network operator has a wide range of offerings University of Ghana http://ugspace.ug.edu.gh 112 My network operator has unique services My network operator is attractive My network operator uses a better technology Competition 1 2 3 4 5 My network operator engages is in a lot of advertising My network operator has a lot of different promotions running in the media My network operator uses aggressive advertising messages My network operator uses advertising to counter competitors My network operator uses persuasive messages to target different customers My network operator has adverts which encourage people to switch to its network User 1 2 3 4 5 My network operator uses celebrities in its adverts I am on this network because i saw a celebrity in an advert by my network operator I like this network because it uses celebrities University of Ghana http://ugspace.ug.edu.gh 113 in its adverts I have a positive perception for my network operator because of the celebrities it uses in its adverts my network operator uses celebrities for product or service endorsements Application 1 2 3 4 5 My network operator shows me best ways to use its services I get help from my network operator any time l have challenges with my network My network operator shows me the promotional package that is best for me Customer service personnel show me how to use the service of my network operator Product class 1 2 3 4 5 My perception of this network is that it shows prestige My network shows status My network is a top of the range brand My network is for upper class customers University of Ghana http://ugspace.ug.edu.gh