SOCIAL MEDIA TAX AND INTERNET SALES IN THE TELECOMMUNICATIONS INDUSTRY (MTN UGANDA) Desire Isaac 0700193521-converted

Abstract

This study was about assessing the impact of social media tax on internet sales and conducted from MTN Uganda located on 22 Hannington Road on Nakasero Hill in Kampala Central Division targeting MTN staff and some customers using internet services. It focused on assessing the negative implication of social media tax policy in Uganda, the level of internet sales in MTN Uganda and examining the relationship between social media tax and internet sales.

This study adopted a cross sectional design[p1] .

The study used primary data.

The study entailed a population of 150 social media followers including staff and customers. This population was attained using a practical approximation/rule of thumb. The sample size of 108 was selected from the accessible population of 150 as recommended by Krejecie and Morgan (1970).

Both stratified sampling and random sampling techniques was used to arrive at the sample. A pool of people was grouped into stratas of 108 and later randomly picked. Five Strata groups of 30 people was created from which 3 respondents was picked from each to arrive at a realistic representative sample of the entire population.

 

In summary of the responses that were collected on the first objective of the study, findings indicated that majority of the respondents were well informed about the new tax charged on the use of social media platforms.

Findings showed that majority of the respondents agreed that MTN sales have increased, there was a drop in internet sales in early July 2018, MTN has the highest digital subscription number, Social media tax moderately affects internet sales, digital marketing is a strong driver to MTN internet sales, MTN internet is well geographically spread and that MTN customers pay OTT to access MTN internet.

Pearson correlation results indicated a strong positive relationship between social media tax and internet sales. This is justified with the R value being0.898**

TABLE OF CONTENTS

CHAPTER ONE --------------------------------------------------------------------------------------------- 6

INTRODUCTION ------------------------------------------------------------------------------------------- 6

1.1 Background of the study -------------------------------------------------------------------------- 6

1.2 Problem statement --------------------------------------------------------------------------------- 7

1.3 Purpose of the study ------------------------------------------------------------------------------- 8

1.4 Specific objectives of the study ------------------------------------------------------------------ 8

1.5 Research Questions-------------------------------------------------------------------------------- 8

1.6 The scope of the study----------------------------------------------------------------------------- 9

1.7 Conceptual framework ---------------------------------------------------------------------------- 9

1.8 Significance of the study-------------------------------------------------------------------------- 9

1.9 Structure of the study------------------------------------------------------------------------------ 9

CHAPTER TWO -------------------------------------------------------------------------------------------11

LITERATURE REVIEW---------------------------------------------------------------------------------11

2.0 Introduction ----------------------------------------------------------------------------------------11

2.1 The concept of Social Media Tax --------------------------------------------------------------11

2.1.1 Implications of Social Media Tax In Uganda-------------------------------------------------12

2.2 Internet Sales --------------------------------------------------------------------------------------14

2.2.1 Level of MTN Uganda internet sales ----------------------------------------------------------15

2.3 Relationship between social media tax and internet sales-----------------------------------16

CHAPTER THREE ----------------------------------------------------------------------------------------20

METHODOLOGY -----------------------------------------------------------------------------------------20

3.0 Introduction ----------------------------------------------------------------------------------------20

3.1 Research Design-----------------------------------------------------------------------------------20

3.2 Data type and Sources of data-------------------------------------------------------------------20

3.3 Study Population ----------------------------------------------------------------------------------20

3.4 Study sample---------------------------------------------------------------------------------------20

3.6 Validity and Reliability of Instruments--------------------------------------------------------21

3.7 Data collection-------------------------------------------------------------------------------------22

3.8 Data Analysis--------------------------------------------------------------------------------------22

3.9 Limitations-----------------------------------------------------------------------------------------22

3.10 Ethical issues --------------------------------------------------------------------------------------22

CHAPTER FOUR ------------------------------------------------------------------------------------------24

RESULTS AND DISCUSSION OF FINDINGS -----------------------------------------------------24

4.0 Introduction ----------------------------------------------------------------------------------------24

4.1 Response rate --------------------------------------------------------------------------------------24

4.2 Characteristics of the respondents--------------------------------------------------------------24

4.2.1 Gender of the respondents-----------------------------------------------------------------------24

4.2.2 Age of Respondents ------------------------------------------------------------------------------25

4.2.3 Highest education level attained ----------------------------------------------------------------25

4.2.4 Duration in MTN----------------------------------------------------------------------------------26

4.3 Social media tax-----------------------------------------------------------------------------------27

4.4 Internet Sales --------------------------------------------------------------------------------------29

4.4 Relationship between social media tax and internet sales-----------------------------------30

4.4.1 Pearson correlation Coefficient -----------------------------------------------------------------31

4.4.2 Regression analysis-------------------------------------------------------------------------------31

CHAPTER FIVE--------------------------------------------------------------------------------------------32

SUMMARY OF FINDINGS, DISCUSSIONS, CONCLUSION AND

RECOMMENDATIONS----------------------------------------------------------------------------------32

5.0 Introduction. ---------------------------------------------------------------------------------------32

5.1 Summary of findings -----------------------------------------------------------------------------32

5.2 Discussion of findings----------------------------------------------------------------------------33

5.3 Conclusion -----------------------------------------------------------------------------------------35

5.4 Recommendations --------------------------------------------------------------------------------35

5.5 Areas of further study ----------------------------------------------------------------------------35

REFERENCES ----------------------------------------------------------------------------------------------36

QUESTIONNAIRE-----------------------------------------------------------------------------------------38