Fatima Soomro

Degree

Master of Business Administration Executive

Faculty / School

Faculty of Business Administration (FBA)

Year of Award

2015

Project Type

MBA Executive Research Project

Access Type

Restricted Access

Executive Summary

This research study is conducted with an attempt to focus on Consumption Pattern of Urban Poor towards Mobile Phones in Karachi.

Over the last decade, not only in Pakistan but all over the world it has been seen that there is tremendous growth in mobile phone industry. The main reason behind this exponential growth is cost-effective network technologies, the huge investments in the industry, and falling prices that make these devices affordable for even those who were unable before to afford other electronic devices for communication such as fixed telephony or landline. Therefore not only the well-off consumers, but poor too are using mobile phones across the world as a main source of communication. The rapid expansion of mobile industry also affected Pakistan and nowadays mobile phones/service can be found not only in the big cities but in rural areas of the country as well.

Due to the widespread stream of cell phone, it is widely accepted by various researchers that through this communication device socioeconomic development can be promoted. The user of commodity/service recognizes the cost of it that is benefitted and affordable for him/her. Although the use of mobile phones is increasing rapidly in all income groups of the society, there is ambiguity in the affordability of mobile phones/services by poor in developing countries like Pakistan. Even though the prices are falling day by day due to the competitive market conditions, for the people who are facing severe financial constraint, the expenses of these services may not be insignificant. To find out how much this source of communication has value for deprived class of society and how they prefer it over other goods and services in the context of limited income, a research study is needed to examine their behavior towards mobile phone/service.

This study is analyzed Consumption Pattern of Urban Poor (Karachi) towards Mobile phones/services and tried to examine how poor or low income group take this device as a luxury item or a necessity. In this regard the expenditure patterns of mobile phone services of poor, living in urban areas is evaluated in this study with the help of primary data collected through face-to-face interviews based on constructed Questionnaire .

Based on these analyses, I have attempted the following; first mobile phone services necessities or luxuries for them and second how this device/services effect poor in case of any increase in price or higher tax on mobile phone.

The findings relating to the topic has been highlighted in the detailed research findings section of the research report. Furthermore, some recommendations are also highlighted in the conclusion section of the research report.

Pages

65

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