Thesis report on

The effect of brand image in consumer consumption pattern

in telecommunication industry in Bangladesh

The effect of brand image in consumer consumption pattern

in telecommunication industry in Bangladesh

Prepared by
Exam ID: 080096
Major:Finance
Academic session: 2013-14
MBA Program

Prepared for
Institute of Business Administration
Jahangirnagar University
Date of submission: September 15, 2015

Executive Summary
Merely 10 to 12 years back consumers did not have much choice when it came to
wireless telecommunication in Bangladesh. But now when a customer goes into
the market, he is bombarded with the variety of brands to chose from and not just
choosing between the basic companies but also the different packages that they
offer. Each brand has their way of communicating and getting close to public and
making them buy their products and services. It almost seems as a never ending cat
fight. At all times new strategies, new ideas, new concepts are being formed. The
previous thoughts are being adapted and conceived in different ways in order to
tackle the competition and win over more and more customers.
My dissertation is a research and documentation of the telecommunication industry
of Bangladesh. It is mostly first hand research. The marketing communication tool
may provide the means for developing strong customer based brand equity. Among
the marketing communication tools several factors have always played a pivotal
role. Prior research suggests that consumer search behavior is likely to be different
across product categories. This paper examines the effect of brand image in
consumption pattern of consumers across telecommunication services.
Mobile Service Provider is chosen as experience products, since their quality is
difficult to judge before use. According to the analytic results of this study, it was
found that various price promotion tactics followed by brands, impact their
judgment on quality in most cases. Network, call quality and costing are mostly
helpful in winning the loyalty of the customers. In order to build strong brand
equity effectively, telecommunication operators must invest in the continuous
development in different sectors.
This paper investigates the crucial factors that are responsible in determining the
customers choice in the growing competitive telecommunication sector in
Bangladesh through some statistical analysis by investigating the service.
Statistical significant association was tested by correlation analysis, to investigate
the relationship of the considered variables. The perception of mobile users has
been analyzed to see the status, problems and prospects of mobile service
providers. Mainly this paper examines the consumption volume and its relationship
with certain brand image (if any) through correlation analysis and emphasize on
some recommendation which can develop the brand image and produce a better
customer based brand equity and the end result (revenue and profitability).

Letter of Transmittal

September 15, 2015

Chairman of the Exam Committee
Institute of Business Administration
Jahangirnagar University

Subject:

Submission of thesis report on The effect of brand image in consumer consumption

pattern in telecommunication industry in Bangladesh.

Sir,
With due respect, as student of IBA-JU, I have prepared my thesis report on The effect of brand image in
consumer consumption pattern in telecommunication industry in Bangladesh. I have tried my level best
to follow your guidelines in every aspect of planning of this report. I enjoyed the challenge of preparing
the report as it provided me with an opportunity to enlarge knowledge. I hope you will appreciate my
effort. I have done the study in a complete form and I have tried my level best to conduct this in a
professional manner. It is true that, it could have been done in a better way if there were not limitations. I
hope my report will be assessed considering the limitations of the study.

Yours sincerely,
Md. Sayeed Al Asad
-------------------------Exam Roll No: 080096

Table of contents
Title

Page no.

Executive summary
1.Introduction

1.1Problem and justification

1.2Research objectives

1.3Tested hypothesis

1.4Methodology

1.4.1 Research paradigm

1.4.2 Research philosophies

1.4.3 Research approach

1.4.4 Research strategy

1.4.5 Quantitative data of the study

1.4.6 Data collection of the study & Sampling method

1.4.6.1 Collecting data

1.4.6.2 Primary data

1.4.6.3 Secondary data

1.4.6.4 Sampling methods and sample

1.4.6.5 Data Analysis

1.4.7 Ethical issues

1.4.8 Limitations

2. Literature review

10

2.1 Telecom operators

10

2.2 Brand image

10

2.3 Consumer consumption

14

3.Findings and analysis

15

4.Recommendation

19

5.Conclusion

20

6.References

21

7.Appendix

23

List of tables
Title

Page no.

Table 1: Demographic profile of the respondents

15

Table 2: number of respondents using different cellular services.

16

1.Introduction
The introduction of mobile phone has not only accelerated the economic growth by vast marketing in the
field of new business; but also made the lifestyle of the overall population easy. A good number of
operators have popularized the cellular phone service in Bangladesh through opening a new path of
communication. Due to the growing competition in mobile telecommunication sector, it is necessary for
the companies to know the customer perception about the satisfaction on the service provided by them.
Building a brand driven culture is a lifelong commitment to a mindset and a way of life that takes time,
planning and perseverance that produces intangible outputs which include greater customer satisfaction,
reduced price sensitivity, fewer customer defections, a greater share of customers wallets, more referrals,
and a higher percentage of repeat business (Knapp, 2000).

Customers value their relationships with their branded possessions and with marketing agents and
institutions that own and manage the brand. Strong brands enjoy customer loyalty, the potential to charge
premium prices, and considerable brand power to support new product and service launches. Companies
need to have thorough understanding of customer beliefs, behaviors, product or service attributes, and
competitors. As the market is growing, companies are extending their product line. The full impact
requires being presented, relevant and well differentiated. Nothing really matter if there isnt sufficient
demand for products to the company that can make a profit. Today the marketers are really confused to
take up the appropriate marketing strategy due to a variety of products, increased customers expectation
and rapid industrial growth. In this situation, it is come into view that marketers are considering different
approaches.

Some categorizations of mobile services exist already. However, most mobile service categorizations tend
to focus on the providers perspective rather than the customer or users perspective on the service (e.g
Aminuzzaman, S. 2005. Ifty Islam 2010, Farooq Sobhan, M.H Khaleque & Shamsur Rahman 2002).
Looking more generally at research on mobile services, some previous research emphasizes the customer
perspective of mobile services. The human development index published by UNDP shows that
Bangladesh is yet to develop human resource sector to meet the growing need of telecommunication
sector.
Both brands and consumers adjusted to constant uncertainty and sober expectations about economic
growth. They fit into the calculus of consumption the impact on the natural environment, personal health,
and human well being along the supply chain. Shaped by these considerations, brand value appreciated.
Technology and Telecom brands together make up the largest segment of the top brands, both in number
of brands represented and in their aggregate value.

1.1 Problem and justification

There are six telecom operators-Grameen Phone, Banglalink, Robi, Airtel, Teletalk and Citycell; in
Bangladesh operating their business ferociously to achieve more market share. To compete they took
different measures till present. They advertised their product heavily from launching. But now one of
them is figuratively out of airtime and VAS business and concentrating more on internet service
providing; and that is Citycell. Government owned telecom operator Teletalk hasnt established its
network tower throughout the country. So, it gives us four competitors with quite established network.
Due to their branding and advertising strategies they have got different brand image. Through this paper I
want to find out their brand image through some variables, if any and consumer consumption in different
services and try to recommend some strategies and remedies to make their brand image more preferable
and get access to more market share.

Value added service consumption is low and diverse, device and handset sell is mainly operated on price
and sales promotion. So, these costs are not considered in monthly consumption in this paper.

1.2 Research objectives

Telecommunication industry is an industry where branding has become very important during the last
years. This may be due to the fact that the services in the communication industry are now very similar to
each other. In a market where the product offered are very similar to each other it is important to try to be
different and one way of doing that is to create a strong brand in the minds of consumers. As almost
everyone has a cell phone today, keeping customers is very important. Further, getting new customers
will not only increase market share but will decrease competitors market share as well.

Due to the big user base and competition in the telecommunication industry, it is hard to get new
customers, the cell phone carriers in the market place today offer services very similar to each other, the
only way to compete is therefore basically through strong brand image. People chose brands they can
associate themselves with, they may pick it because they trust it, thinks it is cool, is business oriented,
cost effective etc.
Mobile phone is the most common and convenient medium of communication for distant inhabitants in
Bangladesh. The introduction of mobile phone has not only accelerated the economic growth by vast
marketing in the field of new business; but also made the lifestyle of the overall population easy. A good
number of operators have popularized the cellular phone service in Bangladesh through opening a new
path of communication. By following that corridor every operator has constructed a unique perception
regarding their services in consumers mind. Due to the growing competition in mobile
telecommunication sector, it is necessary for the companies to know the customer perception about the
satisfaction on the service provided by them.

To testify my dissertation I have selected these objectives which may produce some effective insight. To
analyze if there is a visible strong relationship with consumer sales pattern/volume with these brand
image perception:
Price leadership
Call quality
Network outreach
Social image
Bundle savings
Communal reach
The overall revenue of each telecom operators can be accessed, but this research tries to look into the
personal consumption on talk time, internet usage. This report also tries to analyze if any attributes of
brand image has any relation with incoming that means if anyone asks for cell number which number is
given for distant and important communication and why.

1.3 Tested hypothesis

Now-a-days everything is depended on perceived value. The telecom operators in Bangladesh are
competing head to head to give that perceived value to the consumers and to achieve greater market share.
Citycell is the oldest in this business but lost its attraction through others heavy advertising and its
inability to develop its network diversity. So, network coverage is one of the most important variables
while exposing brand.
H1: If an operator has better network coverage and/or higher quality network, it acquires greater
consumption.
H2: better network coverage acquires more incoming.
At the introduction level the cost of telecommunication service usage was very high. When new players
entered into the market the price frequently lowered to grab more customer segment. So, pricing strategy
become prominent in this competitive business sector.
H3: Pricing has an effect on telecom usage.
Now-a-days every competitors in this business offers bundle SMS, MMS, air time, internet etc in a low
price which elevates communal reach and communication familiarity.
H4: Package diversity can make a consumer frequent user of same telecom operator service.
Social image always play a significant role in perceived value and branding. If someone feels special
through some service he/she would pay some premium for that service.
H5: Social image has an impact of using telecom services.

1.4 Methodology
1.4.1 Research paradigm
Normally a researcher can classify his research into two based on data availability of data. A researcher
can use descriptive research when he thinks that he has available factual data for his research and he just
needs to analyze the result. On the other hand, a researcher can use explorative research when he needs to
explore the data source and normally the data for his research are not available. Thereby he needs to use
his judgment to infer data from the population. However, in this research study of impact of brand image
and consumption volume in telecom service operators in Bangladesh I will use explorative research. I
think the choice is logical because there is no deficiency of data regarding cellular service industry and at
the same time using data in less modified way will help the business operation in giving more accurate
picture of the telecommunication service in case of brand image creation.
1.4.2 Research philosophies
There are different kinds of research philosophies used by researchers based on situations and scenario of
the research subject matter. In case of ontology the researcher considers there are of research widely and
they are free to use different assumptions to fit to their subject matter. Under epistemology there are two
kinds of philosophies; 1) positivism 2) interpretivism. Positivism philosophy is a branch of philosophy
which relates study only to scientific facts so that there is minimum conflict in the research finding. So,
positivism does not consider any material in his research which has no scientific fact. But interpretivism
is totally opposite to the positivism because it comforts the researcher by giving the authority to explain
the research data with his interpretation and the research includes human interest into the study.
From the above mentioned discussion, I think that it is positivism which will be rationale to use in this
dissertation. I believe that through positivism I will be able to keep minimum conflict in his research
study as I will include mostly data supported by facts. I will be objective not subjective in this case. So,
positivism can help me achieve the most factual findings of this study.
1.4.3 Research approach
There are two different kinds of approach for a research study based on theory development and
application process. They are 1) inductive approach 2) deductive approach. However, it is the
responsibility of the researcher to realize which approach will fit to his study because both of them have
some pros and cons. Inductive approach is the research approach where the researcher intends to develop
theories for his dissertation. To do so, he has to go through some process like observation of the scenario,
forming hypothesis and then develop the theories which will be finally applied in his research subject

matter. On the other hand, deductive approach is less complicated than inductive approach because it does
not require the researchers to develop theories.
So, in this research paper I will be inclined to use deductive approach. I believe that deductive approach
will help me to concentrate more on the application of theories on brand image and consumption volume
to this study. The reason behind this belief is that there will be more time to be saved from developing
new theories and this saved time will give more comfort to justify whether the theories are fitting to his
research or there is any dramatic change in the scenario. There have been many well-resourced studies
regarding this issue and I think there will be no problem in finding acceptable theories for this study.
1.4.4 Research strategy
Well, perhaps one of the very vital issues of research methodology is to select which research strategy is
going to be used. There are two general types of research study based on types of data; 1) Quantitative
research strategy 2) qualitative research strategy. The first one uses data only in numeric form in research
study. So, data which cannot be converted into numeric term are left out of the study. On the other hand,
qualitative research strategy includes only data inform of description by human traits, interest, degree of
intensity etc. However, in this dissertation I will use quantitative data. The intention behind using them
both is to remove the disadvantages of each of the strategy.
1.4.5 Quantitative data of the study
In the study, I will consider quantitative data which will be the survey result from consumers. The
consumers will be asked about different aspects of attributes and their preferences between brands in that
case. Their response results will be used for correlation analysis.

1.4.6 Data collection of the study & Sampling method

1.4.6.1 Collecting data
The researcher has two different kind of data based on sources; 1) Primary data 2) secondary data.
However in this very vital dissertation for the booming mobile industry; I will include data from both of
the sources.

1.4.6.2 Primary data

Primary data refers to data found directly from the population of a study. In this study the population
includes all the customers surveyed. I think collecting data directly from the customers will give me a
first-hand data which will be less distorted and free from the problem of outdate. Cellular service industry
is changing very rapidly so does the taste of customers. So, I cannot solely depend on the secondary data

because customers are frequently changing their decision regarding how much they will be loyal to a
brand when the competitors are providing the close products and services with charging much less.
1.4.6.3 Secondary data
However, I do not deny the magnitude of secondary data. Secondary data are the data found from earlier
studies regarding the related research issue. In this study the secondary data available to me includes sales
report, industry analysis report, development report, different articles of business dailies etc. So I will also
include the above mentioned secondary data in this study. Besides, the secondary data will make data
series complete by providing the justification of the primary data.

1.4.6.4 Sampling methods and sample

In this research paper I will use random probability method of sampling out of many sampling methods. I
think that this method will help me selecting sample with minimum biasness and best representations of
the whole population.
I will select around 300 consumers as sample for conducting the survey. I think that collecting sample
from random population will provide sufficient data to make this analysis.
1.4.6.5 Data Analysis
The report is based on the primary data collected from the 300 random telecom consumers through
questionnaire. Five hypotheses are considered to test the variables such as network outreach, call quality,
cost effectivity, package diversity, social image, airtime usage, internet usage and incoming. A statistical
hypothesis is a scientific hypothesis that is testable on the basis of observing a process that is modeled via
a set of random variables. A statistical hypothesis test is a method of statistical inference used for testing a
statistical hypothesis. A test result is called statistically significant if it has been predicted as unlikely to
have occurred by sampling error alone, according to a threshold probabilitythe significance level.
Hypothesis tests are used in determining what outcomes of a study would lead to a rejection of the null
hypothesis for a pre-specified level of significance. In the Neyman-Pearson framework, the process of
distinguishing between the null hypothesis and the alternative hypothesis is aided by identifying two
conceptual types of errors (type 1 & type 2), and by specifying parametric limits on e.g. how much type 1
error will be permitted. An alternative framework for statistical hypothesis testing is to specify a set of
statistical models, one for each candidate hypothesis, and then use model selection techniques to choose
the most appropriate model.

The data has been put in the correlation analysis to see if there is any significant relationship among the
variables (brand image and consumption pattern). The Pearson product-moment correlation coefficient is
a measure of the linear correlation between two variables X and Y, giving a value between +1 and 1
inclusive, where 1 is total positive correlation, 0 is no correlation, and 1 is total negative correlation. It is
widely used in the sciences as a measure of the degree of linear dependence between two variables. It was
developed by Karl Pearson from a related idea introduced by Francis Galton in the 1880s. Pearson's
correlation coefficient is the covariance of the two variables divided by the product of their standard
deviations.
The correlation coefficient r measures the strength and direction of a linear relationship between two
variables on a scatter plot. The value of r is always between +1 and 1. To interpret its value, see which
of the following values your correlation r is closest to:

Exactly 1. A perfect downhill (negative) linear relationship

0.70. A strong downhill (negative) linear relationship

0.50. A moderate downhill (negative) relationship

0.30. A weak downhill (negative) linear relationship

0. No linear relationship

+0.30. A weak uphill (positive) linear relationship

+0.50. A moderate uphill (positive) relationship

+0.70. A strong uphill (positive) linear relationship

Exactly +1. A perfect uphill (positive) linear relationship

The values are determined through Microsoft excel. Only strong and moderately positive; and strong and
moderately weak correlation analysis results are shown in this paper. Though randomly picked, no
Citycell user is found beyond my reach. Some qualitative data is taken from some secondary sources to
understand the present situation and hysterical changing, to analyze the market share and segmentation.
The study has been divided into some segments: brand image, consumer consumption pattern, market
situation and offerings of the telecom operators.

1.4.7 Ethical issues

I will make the survey on customers on their free will and will not expose their name in this study. I will
make sure that the result of the interview remains anonymous. There is no plagiarism in this research.

1.4.8 Limitations
Well it is not unusual to face some constrains while conducting the research study. There are several
intrinsic limitations identified. Data accessibility issue is a very vital one. Besides, lack of human
resources and limited source of data can be a major component of limitation in this research. On the other
hand, I have knowledge constrains too. The changing industry and price competition may make a large
variety of responses from customers which impose difficulty to make proper interpretation.

2. Literature review
2.1 Telecom operators
Six telecom operators are fiercefully competing in the market with different types of services. They are:
Grameen Phone
Banglalink
Airtel
Robi
Citycell
Teletalk
Their main service offerings with everyones example are given below:
Prepaid (Grameen Phone- nischinto, Banglalink- Banglalink desh, Airtel- super adda, Robi- shorol,
Citycell- Citycell one, Teletalk- shadhin etc)
Postpaid (Grameen Phone- xplore, Banglalink- SME, Airtel- Airtel postpaid, Robi- simple plan, CitycellCitycell postpaid, Teletalk- Shapla etc)
Roaming (GPRS, GSM, CDMA, Edge etc)
Value Added Service (Call block, welcome tune, mobile taka, cell bazaar, mobile backup, news,
messaging, international SMS, MMS, SMS chat, update, missed call alert, voice adda, bundle SMS,
MMS etc)
Internet (Daily, weekly, bi-weekly, monthly, per KB etc)
Device (Handset, modem)

2.2 Brand image

There are different views and different definitions of brand image, which differ in their level of
abstraction by how elaborated the image is built in the minds of the consumer. Concordant to the
associative network memory model, the brand image is the associative brand network held in the minds of
consumers (Poiesz, 1989). Thus, brand associations held in consumers memory reflect perceptions about
the brand, and the meaning of the brand for consumers. Just like definitions, there are also different brand
building image theories. Some of these theories include only the associations related to the product
(Keller, 1998), while others also encompass associations related to the company (Biel, 1993), the country
of origin (Holzhauer, 1991), and the image of the user (Biel, 1993). David Aaker (1996) has developed
the brand identity system, a framework for brand evaluation. According to David Aaker (1996) when
creating a brand identity, the firm should consider four dimensions of brand identity: the brand as a

product, an organization, a person, and a symbol. The brand identity created by the firm is communicated
to consumers, who then interpret it as the brand image.

Brand image is built by associations about the organization behind the brand, the product, the country of
origin, the brand personality, and the brand artifacts. These associations do not only influence the creation
of the brand image; they also influence each other. In other words, there is a dual relationship between the
brand image elements, and between the elements and the brand image a positive brand image occurs
when these associations are strong, favorable, and unique in the minds of the consumers (Keller, 1998).
Associations related to the organization are related to the attributes of the company (e.g. level of
technology, leadership style) as well as the history of the company. Product associations include the
product-related attributes as well as the product scope (D. Aaker, 1996). Associations involving the
country of origin, for example the level of technology in the country and the culture, also influence the
brand image. With brand artifacts we refer to the typical user and usage imagery, and also to the visual
imagery of the brand e.g. symbols. The brand artifacts associations are most of the time created by
consumers with the help of promotional tools. Unlike the other brand image dimensions, brand
personality provides the brand with more depth, with a soul that is crucial for the brand image. Brand
personality can be the single one association that is used by consumers to differentiate between products,
for example markets where products are highly undifferentiated like coffee. Based on this differentiation,
consumers can respond to this knowledge accordingly. Brand images are usually evoked by asking
consumers the first words/images that come to their mind when a certain brand is mentioned (sometimes
called "top of mind").

Attracting new customers remains an important marketing management task. However, today's companies
must also focus on retaining current customers and building profitable, long-term relationships with them.
The key to customer retention is superior customer value and satisfaction. Loyal customers are more
likely to repurchase the same service or brand, provide positive agendas and be willing to pay a premium
price.

Although past scholars have not produced consistent findings on the dimensions of establishing
relationship quality, empirical results indicate that the relationship between corporations and customers is
increasingly intimate and that this benefits the enhancement of customer loyalty in the long run. Some
studies show that the inconsistent results might be caused by a moderator such as brand association.
However, how existing brand image impacts on the effectiveness of sales very little attention. Brand

image and perceived image are important variables that help consumers understand process, recall and
recognize information.

Perceived relationship benefits add to the perceived value of the product, because the relationship is
strengthened when customers perceive benefits beyond their satisfaction with the core product. Relational
benefits have a direct effect on perceived value and customer loyalty. In addition, relational benefits also
have an indirect effect on customer loyalty via perceived value, which positively influences loyalty.

Building of brand image is also an important matter for service firms as it is a powerful determinant for
products marketing. Keller (1993) defined the brand image as the the brand relations retained in
consumers mind causes the assumptions about a brand. According to the Arslan and Altuna (2010) the
product brand image is negatively affected by the brand expansion, but the negative effect is being
reduced by the relation between the original and expansion brands. The great fall in the brand image will
be occurred due to the brand expansion if the supposed image and quality of the original brand are
superior. There have been positive effects of apparent quality of the brand, consumers brand awareness,
fit perceived by the consumer, consumers attitudes towards the expansion on the product brand image
after the expansion. Ogba and Tan (2009) argued that the behavioral study reveals that there is a positive
effect of brand image on the customer loyalty and dedication towards market offering.

The greater extend perception of positive, negative, cognitive and affective images of a brand can be
achieved through a free-choice technique. Matthiesen and Phau (2010) suggested that the perception
about the brand varies among different channel members. Even though the whole attitude of the end
consumers is positive towards the Hugo Boss brand but the consumers fondness to buy the Hugo Boss
brand appearing to be comparatively low down as the trend is being seen that the consumers are liking the
other brands which can be called communal effect. The customer satisfaction is directly effected through
the price perception and is indirectly being influenced by the perception of price fairness. The customers
can switch to any other cellular service provider who offers fair prices this reveals that the consumers can
be hold on to for a longer duration by offering them the fair prices so; the customer satisfaction is caused
by the fairness of price. Peng and Wang (2006) proposed that for buying the product and services the
customer has to pay some price which is the financial cost for the customer. Price is the important factor
which persuades the customer decision for buying the products and services. Perceive price play a vital
role in deciding from whom to get the service. According to many researchers the customer satisfaction
and trust is being influenced by the price perception (Peng & Wang, 2006).

The major reason of customers switching is the issue of price, for instance the high, unreasonable and
unreliable pricing policies (Peng & Wang, 2006). So, the service firms should handle their customers
perceptions about price by providing them the reasonable, attractive and low prices without decreasing
the quality for the purpose of increasing the customer satisfaction. For the purpose of retaining the loyal
customers for a longer period of time, which in turn generate the huge profit for the firm, the service
provider should utilize this relation in such a way that it can handle the customers by providing them what
they want and what they need. When the customers interact with the service provider every customer
assumes the service quality individually. Grnroos (2000) argued whatever the customer experience in the
interaction phase will definitely have the strong effect on the customers estimation about the service
quality. The quality of the product is easily evaluated as compared to the service quality; the reason
behind the difficulty in valuation of the service quality is that the service is composed of strange
characteristics; earlier researches have projected many ways of measuring the quality of the service.
Grnroos (2000) later on argued that there are seven factors to perceive the service quality and those are:
skills and Professionalism, behavior and attitude of employees, flexibility and convenience,
trustworthiness and reliability, recovery of services, scope of service, credibility and reputation.
In the service firm Perceived quality service has a direct impact on the customers satisfaction along with
their trust. When the customers get more and better services than what they have expected before the
purchase from the service firm the customers may become satisfied. When the customers get good quality
service from the service provider, than the trust of the customers also take place and he assume that more
useful result will be provided by the service firm. To evaluate the performance of the service provider the
quality service is a vital determinant in the mobile telecommunication sector which is a service industry.
To, provide customer satisfaction, build trust worthy relationship with the customer for a longer period of
time and in return getting the competitive edge all this is possible by providing high quality service.
Satisfaction of the Customer is an estimated result of executed activities of marketing; in this highly
competitive business world the firm can obtain the success by offering the quality products and services.
According to the Fornell (1992) the satisfaction depends upon the overall buying and utilization of the
target service and products presentation which is compared with the expectation of repurchase with the
passage of time. If the customer had a satisfying experience the customers enthusiasm and his/her
probability of staying in the relationship will be increased. Customers expectations about the services
and products are a mean to calculate the satisfaction of the customers.
Li (2008) proposed the emotions which the customers expected to be satisfactory: these emotions are
Satisfaction, Relieved, Content, Surprise and Novelty. Moreover, Spath and Fhnrich (2007) found that
the satisfaction of the customer can also be measured through the life cycle of the relationship of the

customer that contains different phases of relationship of the customer and need to focus on definite goal
and expectations of the customer in different phases. So, the relationship quality among the service
provider and the customers is increased through the customer satisfaction which in return enhances the re
purchase by the customers.

2.3 Consumer consumption

Now-a-days every brand has one and only concern: greater portion of market share and high profitability.
To grab more profit brand image creation and through this consumption volume is utmost important. At
present one of every two people in Bangladesh has a SIM card. Some people use more than one SIM to
communicate and to have better value. Huge number of subscribers creates opportunity for all the telecom
operators for creating value proposition. People are consuming more and more in their different aspects of
life through these six telecom operators.

3. Findings and analysis

In the sample, 300 consumers were selected to whom several question was asked about the preference,
usage and opinion of on telecom operators. The respondents were selected based on gender, age and
profession. However, both male and female consumers got the preference to get selected into the survey.
There was a requirement to be more than 15 years old for every customer, because to have a SIM card in
Bangladesh, consumers must have a voter ID and it is given to only if the resident is 15 years old.
However, Most of the customers were from the Savar and Other Dhaka areas.

Demographic profile

Gender

Age

Profession

Characteristics

Frequency

Percentage

Male

161

53.67

Female

139

46.33

Total

300

100

15-19 years

40

13.33

20-24 years

75

25

25-29 years

60

20

30-34 years

50

16.67

35-39 years

30

10

Over 40 years

45

15

Total

300

100

Student

153

51

Self- employed

2.33

Professional

44

14.67

Executive

86

28.67

Unemployed

10

3.33

Others

Total

300

100

Table 1: Demographic profile of the respondents.

The survey shows that everyone has a mobile phone and all of them have used more than one service. In
given questionnaire only one telecom operator is told to be chosen where the names are given, because if
the respondents choose two answers for some questions they also have to choose two reasons and
spending pattern. That ambiguity is omitted through considering only one option. It indicates the
switching cost of consumer is very low. So, the service providers face fierce competition to retain their
customers. Whether randomly choosing, no Citycell customer is found. So, the correlation analysis of this
telecom operator is omitted.
It is found that majority of the respondents use Grameen phone, Airtel and Banglalink.
Cellular service

frequency

percentage

Grameen phone

112

37.33

Airtel

81

27

Banglalink

58

19.33

Robi

34

11.33

Teletalk

15

Total

300

100

Table 2: number of respondents using different cellular services.

Most of the respondents have used more than one SIM card and their service. Questioning about usual
behavior when buying products and services, most of the respondents use rational behavior when it comes
to service provider which is the process of1. Look for information about the product,
2. Form an attitude towards the product,
3. Buy the product.
Another insight found that after 30, consumers tends to have loyal to one telecom service provider as in
that situation profession plays an important role. They spend more on airtime and less on internet whereas
15-29 years old consumers spend quite equally on airtime and internet but their consumption is lower
than prior group.

Correlation coefficient results are given and analyzed here through different operators. Only significant
data are shown here.

Grameen phone
Strong positive correlation between call quality and airtime sales
Coefficient Value 0.642892947
Weak negative correlation between price leadership and internet sales
Coefficient Value -0.010680083

Airtel
Strong positive correlation between price leadership and airtime
Coefficient Value 0.899807762

Banglalink
Strong positive correlation between package diversity and airtime sales
Coefficient Value 0.535304547
Strong positive correlation between network quality and incoming
Coefficient Value 0.623037959

Robi
Strong positive correlation between network coverage and incoming
Coefficient Value 0.51032282
Weak positive correlation between social image and incoming
Coefficient Value 0.241949574

Teletalk
Strong positive correlation between network outreach and internet
Coefficient Value 0.516781408
Strong positive correlation between price leadership and internet
Coefficient Value 0.503607518
Weak negative correlation between call quality and airtime
Coefficient Value -0.10999861

From the survey result, it is found that people use Grameen phone for network outreach, call quality and
social image. People mostly consume this service for airtime.
Airtel is known mostly for low cost, bundle savings and communal activity. People who perish this brand
mostly consume for air time and bundle savings.
Teletalk is used for internet using as it gives faster browsing experience with limited price offerings. Till
now it cant position itself as a market player in air time and shows great potential for this attribute and
image.
Banglalink has given its concentration diversely so its product and service line has extended but
consumers dont really create a strong brand image of this operator though its network quality is quite
good.
After rebranding and changing its name from Aktel, Robi still cant gain significant share like before and
lost popularity though investing heavily in emotional advertising. Its main features are network coverage
and social image.
Citycell is quite out of airtime and VAS business. It is concentrating on internet business but without
proper advertising and media coverage, its activity is quite out of knowledge.

4. Recommendations
Telecom operators have created their brand image intentionally and unintentionally; and it elevates/affects
the sales and revenue. So, recommendation also varies among the operators.
For Grameen Phone, it acquired greater market share through airtime and has quality network, but it
should also lower its price in internet service and modem.
For Banglalink, it has also acquired significant market share, but it should give more concentration on its
revenue generating businesses rather than giving equal concentration.
For Citycell, it is now operating internet business effectively, but without any advertisement and exposure
none can get any consumer concentration now-a-days. If it wants to survive in the long run it should
invest more on infrastructure development.
For Airtel, it has got celebrity endorsement, guerilla marketing, brand exposure, but they concentrate on
communal outreach and VAS so much that their other services are overlooked generally.
For Teletalk, it has the lowest SIM accumulation and internet price, but it has got no celebrity association.
Being a government owned company it could have more infrastructure development than other operators,
but it is overlooked somehow.
For Robi, it has lost its exposure after rebranding though heavy advertising and quality network. As it was
not effective it should consider regaining its former brand image and offer lucrative marketing mix.

5. Conclusion
As competition gets more intense, managers face challenges to adjust their brands with changed
expectations of their customers. Among different alternatives that are available to managers, positioning
their brands on the attributes that happen to be the customer priorities can help in building superiority of
their brands in the minds of their customers. Such attribute positioning or benefit positioning can enable
companies to leverage current resources to the extent possible. If existing product
configuration/proposition becomes obsolete, the brand has to move to higher or expected levels of
performance/benefits to sustain itself in dynamic markets.

Companies need to position their brands in the minds of consumers. To achieve desired goals of their
communication strategy, companies have to break the clutter by evolving innovative ways to attract the
attention of the target audience. Alongside the traditional media channels like newspapers, magazines,
television, hoardings, public relations, etc, new media vehicles such as Internet, outdoor communications,
sponsoring events, etc. offer opportunities for consumer involvement. Such innovative approaches can
enable managers to minimize the impact of competition on their brands. Integrated brand communications
and creative repetition through various types of media is a key to success in brand communications. A
brand image should be created to establish an emotional relationship with the target audience.

The brand managers need to continuously track their brands against the effect of competition and to track
the progress as to how their brands are doing in the market place. Monitoring the progress of brands in
terms of purchasing, consumption, brand recognition, brand recall, advertising awareness, etc. helps the
managers to adjust their strategies of marketing to achieve the desired performance of their brands. This
performance audit can also enable the company to measure its brand strength by considering competing
brands. The brand loyalty can reduce the vulnerability of the customer base to competitive action and can
directly translate into future sales and profits.

Brands that have established desired brand equity in the marketplace can have potential to leverage its
equity through line extension, brand extension, ingredient branding, co-branding, brand Alliances, and/or
social goodwill. These approaches enable the companies to leverage the parent brand associations to new
categories of products and chart a new growth path for their brands.

6. Reference

Aaker, D., (1996). Building strong brands. New York: The Free Press.
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Usage of Mobile Phones Among University Students in Bangladesh, Conference Proceedings of the
International Conference on Mobile Communication and Asian Modernities II, Information,
Communications Tools & Social Changes in Asia, in Beijing October 20-21, pp. 72-82

Arslan, F. M., & Altuna, O. K. (2010). The effect of brand extensions on product brand image. Journaal
of Product & Brand Management .

Biel, A. (1993). Converting image into equity. In Aaker & Biel, Brand equity & advertising:
advertisings role in building strong brands (pp. 67-82). Hillsdale: Lawrence Erlbaum
Associates Publishers.

Farooq Sobhan, M.H Khaleque & Shamsur Rahman, March 15, 2002; Bangladesh Enterprise Institute
(BEI); a joint project of: The commonwealth Policy Studies Unit (CPSU) - University of London, The
Commonwealth Telecommunications Organization (CTO) Information and Society Development.

Grnroos, C. (2004). The relationship marketing process: communication, interaction, dialogue, value.
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Holzhauer, F. (1991). Corporate image en brand image: wat merkartikelreklame doet voor het
corporate image. In Corporate Communication (pp. 1-6-1 1-6-44). Houten: Bohn Stafleu
van Loghum.

Ifty Islam(November,2010), Bangladesh Telecom Sectors: Challenges and Opportunities, Working paper,
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Keller, K. (1998). Strategic brand management: building, measuring, and managing brand
equity. New Jersey: Prentice-Hall.

Kristina Heinonen1 and Minna Pura (2005), Classifying Mobile Services, (Working paper) Department of
Marketing Centre for Relationship Marketing and Service Management (CERS) HANKEN, Swedish
School of Economics and Business Administration, Helsinki, Finland

Liu, Y., Li, Y., Tao, L., & Wang, Y. (2008). Relationship stability, trust and relational risk in marketing
channels: Evidence from China. Industria lMarketing Management , 432-436.

Matthiesen, I. M., & Phau, I. (2010). Brand image inconsistencies of luxury fashion brands A buyer-seller
exchange situation model of Hugo Boss Australia. Journal of Fashion Marketing and Management , 202218.
Nevin cohen (2001) What works: Grameen telecoms Village phones. A digital dividend study By the
world resources institute.

Ogba, E. I., & Tan, Z. (2009). Exploring the impact of brand image on customer loyalty and commitment
in China. Journal of Technology Management in China , 132-144.

Peng, Leong, W. Y., & Qing. (2006). Impact of Relationship Marketing Tactics (RMTs) on Switchers and
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7. Appendix
Questionnaire
I am a student of MBA, Institute of Business Administration of Jahangirnagar University. I am preparing
a thesis as a regular curriculum of my study. The topic of my thesis is Branding through advertising in
telecommunication industry in Bangladesh. This report will only be used for educational purpose. I
am expecting your kind cooperation.
Respondents Number:
Gender
Male
Female
Which of these categories best describes your age?
15 19 years
20 24 years
25 29 years
30 34 years
35 39 years
Over 40 Years
Please specify your Occupation:
Student
Self-employed
Professional
Executive
Unemployed
Others
Do you use cell phones?
Yes
No
What cellular service do you use?

Teletalk
Citycell
Grameen phone
Banglalink
Airtel
Robi

How many cell phone carriers have you had in your life?
1
2
3
4
5
6
When you hear the word cell phone carrier which is the first one that comes to your mind?
Teletalk
Citycell
Grameen phone
Banglalink
Airtel
Robi
What had the greatest impact on your choice of cell phone carrier?
Television advertisement/ Other social media
Communal acceptance
Friends / Acquaintances
The status
Price
Binding period

What order does best describe your usual behavior when buying products and services?
Social Behavior (1.Buy the product, 2. Form an attitude towards the product, 3. Look for
information about the product)
Rational Behavior (1.Look for information about the product, 2. Form an attitude towards the
product, 3. Buy the product)
Unconscious behavior (1. Has from the beginning an attitude towards the product, 2. Look for
information about the product, 3. Buy the product)
Learned Behavior (1. Buy the product, 2. Look for information about the product, 3. Form an
attitude towards the product)
Unanswered

Your opinion on Brand image influence on your consumption volume Strongly agree
Agree
Neutral
Disagree
Strongly disagree

In a scale of 0 to 100; where 0 denotes the lowest and 100 denotes the highest rating; how do you rate
these service quality and brand image:
Call

Network

quality

outreach

Social image

Price

Package

leadership

diversity

Grameen Phone
Banglalink
Airtel
Robi
Teletalk
Citycell

Please provide your expenditure volume (round up) on mobile call time and mobile internet services:

Grameen Phone
Banglalink
Airtel
Robi
Teletalk
Citycell

Air time/Call time

Internet

(Approximate)

(Approximate)

Please provide your incoming round up time on mobile services:

Incoming
(approximate in minute)
Grameen phone
Banglalink
Airtel
Robi
Teletalk
Citycell