Professional Documents
Culture Documents
Spring-2006
by
Fida Habib
ID: 0010126
by
Fida Habib
ID: 0010126
________________________________
Dear Sir,
It is a great pleasure and honor for me to submit my internship report “A relational study on
controlled communication, uncontrolled communication, brand name and brand attitude in the
This report will help the organization to find out the factors which influences brand attitude.
This is the first time that I have done correlational 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
I hope you will asses my report considering the limitations of the study. Your kind advice
Yours sincerely,
Fida Habib
ID# 0010126.
Acknowledgement
In the preparation of this internship report, I would like to acknowledge the encouragement
I would like to express my gratitude to my supervisor Mr. Sohel Islam, for providing me
detailed feedback and support on this report. Without his contribution, it would not have been
I would like to render my special thanks to Mrs. Rumana Reza, Director, Customer Care
Department of Banglalink™. I would also like to thank the supervisors of the Support Service
Unit Mr. Shibu Kanti Ghosh and Mr. Tanveer Shahed for providing me full support during my
internship. I am grateful to Mr. Mahmud Hasan and Mr. Tanvir Mahmud Sharif for helping me
Page
Executive Summary
1.0 Introduction 1
1.3 Limitations 2
3.2.2 Hypotheses 11
4.0 Methodology 11
5.0 Results 14
7.0 Recommendations 19
8.0 Conclusion 20
References 21
Appendix 1 26
Appendix 2 28
Appendix 3 34
List of Tables
Page
3. Correlation Matrix 16
List of Figures
communication, uncontrolled communication, brand name and brand attitude in the context of
Bangladesh.
Sufficient literature review and discussions suggest that the avenues of communications
(controlled and uncontrolled) and the brand name influences the attitude that consumers have
The literature review and the data from the study suggest that correlation does exist between
the above mentioned study variables. Data was collected by distributing a total of 106
questionnaires to the subscribers of Banglalink™ that visited the Customer Care Center in
Gulshan. Collected data was analyzed using SPSS 12.0. Correlational analysis and stepwise
regression analysis were performed for testing the hypotheses and both provided full support in
The study showed that the attitude and perception that consumers in the mobile telecom
industry formulate about a brand are influenced by the messages that are communicated by
marketers together with information that they receive from other non-commercial sources and
The findings suggest that controlled communications, uncontrolled communication and brand
name are pivotal in establishing consumer expectations, thus brand attitudes. Therefore, these
while brand names should reinforce consumer confidence, trust and safety in usage. Positive
WOM advocating proven reliability and consistency of the brand should be encouraged and
mobile telecommunications company operating in nine emerging markets in middle East , Africa
and South Asia acquired Sheba Telecom (Pvt) Ltd. at a cost of US $ 60 million. As Sheba
Telecom, the worst performing network operator in the industry, the company had only 30,000
subscribers. To dispel this image, OTH had re-branded Sheba as Banglalink™ in an attempt to
The Bangladesh GSM mobile telecommunication industry is led by Grameen Phone with
over 6 million subscribers followed by Aktel with 4 million and Banglalink™. Banglalink™ is
currently ranked third by being the fastest growing mobile telecommunications company in the
world by increasing the 30,000 subscriber base of Sheba to 1.7 million Banglalink™ users and
expanding it’s network coverage to 61 districts in just over 1 year. The oldest mobile telephony
operator CityCell uses CDMA technology with a customer base of less than 1 million.
The socio economic condition of Bangladesh in a way limits expansive growth of the mobile
telephony industry and thus operators have to rely heavily on drawing competitor’s subscribers
in order to expand their own customer bases. So there is a need for studying the factors
attributing to the attitude of consumers towards a brand (Brand Attitude) in this case
Banglalink™, in order for Banglalink™ to get a clear understanding on how to gain and
subscribers now have more choices and can easily switch to the brand that appears favorable to
them. In order to thus gain and maintain market share Banglalink™ needs to understand the
The purpose of this study was to examine the effect of two communication variables
that exert the most influence on consumers and the significance that the name of a brand plays as
they make their decisions and formulate their attitude towards service brands. The findings will
enhance our existing knowledge of the relationships that exist between marketing
communications, brand name and decision making of service consumers, thus enhancing both
The study was limited by a number of factors. Firstly the research was limited only in Dhaka
city. Secondly the sample size may be considered too small to represent the present scenario.
The time constraints for the study and also the limited knowledge of the researcher may be
considered as limitations.
Controlled communication implies the messages that the marketer delivers to the consumers.
The marketer has full control on the message content, when and how the message will be
delivered and to whom it will be delivered. Advertising and other promotional activities
undertaken fall under this category. Issues related to the advertising of services have been at the
forefront of research in more recent times. Such research has focused on the examination of
services advertising in terms of intimacy theory (Stern, 1997), the difference between business-
to-business and consumer services advertisements (Turley and Kelley, 1997) and the effect of
services advertising on brand salience and brand image (Miller and Berry, 1998). In terms of
services, controlled communications such as advertising are argued to be an important tool used
informational approach have been shown to reduce uncertainty and increase the likelihood of
future purchase intentions (Stafford and Day, 1995), while research concerning the advertising
enhance perceived quality (Cobb-Walgren et al., 1995). While the objective of any controlled
that it is the degree to which the information is meaningful to consumers that is important.
Therefore, the more favorable the consumer’s feelings and attitudes are towards the
communications; the more likely it is that the communications will be effective in transferring
relevant meaning about the brand. This being the case, it is the consumer’s attitude or feelings
towards the controlled communications that will ultimately influence their response to the brand,
as manifested by their satisfaction with, attitude towards or intentions to use the brand.
Uncontrolled communication primarily consists of word-of mouth (WOM) behavior and non-
paid publicity. Largely derived from personal sources, WOM communications are an important
source of information for service consumers prior to patronage. For example, it has been shown
that WOM communications significantly affect consumer purchasing behavior (Mangold et al.,
1999) and influence both short-and long-term judgments (Bone, 1995). In the context of
services, it appears that WOM is particularly important, as consumers tend to rely on WOM to
reduce their level of perceived risk and uncertainty often associated with the purchase of
services (Mangold et al., 1999). In fact, Murray’s (1991) findings concerning personal sources
of information regarding goods and services support this claim, in that service consumers have
greater confidence in WOM and a greater propensity to purchase after engaging in WOM than
purchasers of goods.
Another form of uncontrolled communication comes in the form of non-paid public relations.
Often referred to as “publicity”, this form of message communication is similar to WOM in the
sense that negative publicity is said to have a greater influence on consumer response than
positive publicity. In a similar vein to WOM, publicity is also viewed as a credible source of
2000). Furthermore, Hauss (1993) advocates that, regarding the attitudes of people towards
political parties, there is not doubt that good and bad media coverage has a profound effect.
While adverse publicity can lead to negative perceptions, positive publicity can enhance
Brand names play an integral role in the marketing of goods and services, with a good brand
name being argued to create high levels of brand awareness, stimulate strong consumer
preference and contribute to the success of the product (Chan and Huang, 1997). In fact, many
have noted the importance of brand names in consumer evaluations of brands, in that, brand
names assist the consumer in recalling brand benefits (Janiszewski and van Osselaer, 2000), in
making product inferences and evaluations (Zinkhan and Prenshaw, 1994) and they play an
important role in reputation and choice (Holden and Vanhuele, 1999). Therefore, the argument
that brand names are a valuable source of information to consumers cannot be disputed. In fact,
(1987, p. 170) found that “based on product name alone, customers form instant, non-neutral
attitudes about the product that may prove difficult to change through the use of
subsequent communications”. Degeratu et al. (2000) note that the brand name is weighted
as even more important when there is lack of available information, as the brand name becomes
a surrogate for attribute information that is missing. Given the nature of services where little
information is available to consumers in their pre-purchase evaluations, the brand name may
well prove to be an important source of information. In fact, Turley and Moore (1995) advocate
that due to the difficulty in service evaluation, the service brand name becomes a crucial
component of the brand and important source of information to the consumer. In fact, as
pointed out by Stern (1983, p. 53), “a good brand name can save millions of dollars over the
product’s life because it carries its own meaning, describes the product’s advantages, is instantly
recognized and serves to differentiate the product significantly from other competitors”. In
addition, in the context of services, brand names are argued to be a crucial component of the
brand and important source of information to the consumer because, in many cases, service
attributes are difficult to communicate via other means (Turley and Moore,1995). This being the
case, the brand name should be recognized for the more proactive role it plays in communicating
the brand, rather than simply being viewed as a component of the brand. Although it could be
argued that the brand name, in itself, represents a controlled communication, for the purpose of
this study, which examines different communication avenues (or means of information
transference), we argue that essentially the information transmitted by the brand name is not
completely controlled by the marketer. For example, with advertising and promotional
decisions, issues such as targeting, message creation, media selection and campaign evaluation
are completely controlled by the marketer. However, with the brand name, while its initial
inception and communication (via advertising) is under the control of the marketer, the meaning
that is attached to or transmitted by the mere mention of the brand name comes also from other
sources. For example, the consumers’ personal experiences and what is known of others’
experiences with the brand will result in information and meaning being attached to the brand
name in memory.
Defined as “the consumer’s overall evaluation of a brand whether good or bad” (Low and
Lamb, 2000, p. 352), brand attitudes encapsulate the meaning that consumers attach to brands,
which in turn effects their purchasing behavior (Low and Lamb, 2000). Therefore, positive
brand attitudes are vital to the long-term success and sustainability of brands (Hoek et al., 2000).
avenue by which marketers can make their offerings to customers tangible. In fact, the
perceived risk associated with many service purchases emphasizes the importance of controlling
and transmitting messages that assist in reducing consumption apprehension (Grove et al.,
1997). However, in many cases, service consumers rely heavily on information from
commercial sources (advertising communications) in order to make their brand choices. In
terms of controlled communication, advertising has been consistently found to play an important
personal sources (WOM communications) in order to make their brand choices. In fact, it is
argued that a single positive WOM communication can result in the formation of a favorable
attitude toward the brand (Swanson and Kelley, 2001) implying uncontrolled communications
can exert considerable influence on consumer brand decisions. Marketers expend considerable
effort on creating and maintaining positive attitudes towards their brands and this is usually
non-paid publicity has been consistently found to play an important role in creating positive
brand attitudes (Swanson and Kelley, 2001). However, it appears that uncontrolled sources such
as WOM, while playing a significant role in enhancing positive brand attitudes, can just as easily
diminish brand attitudes through negative WOM and publicity (Ennew et al., 2000). Argued as
having an even stronger influence on brand attitudes are uncontrolled communications such as
(Swanson and Kelley, 2001). This is so because communications that are not marketer-driven
are perceived to be more credible (Mangold et al., 1999). In examining the effects of service
through positive WOM and publicity (Bansal and Voyer, 2000 ;) or diminished through negative
WOM or “bad” publicity (Ennew et al., 2000). With regard to the latter (negative WOM and
publicity), the effect on brand attitude, in many cases, is argued to be stronger than that resulting
The ultimate goal of marketers, in satisfying customers and creating positive brand attitudes,
is to induce the desired behavioral response towards the brand. While much attention has
focused on advertising and WOM, the brand name is also a powerful communications tool that
can be utilized to create strong brand attitudes. The ability of brand names to evoke feelings
such as trust, confidence and the like indicates that brand names should not be overlooked as a
valid and useful avenue of communication in the creation of brand attitudes (Turley and Moore,
1995).
Summaries of the operational definitions of measured variables are given below in Table 1.
Table 1
Operational definitions of measured variables
based on insights gain from the literature review. While a number of theories and issues
pertinent to the study were discussed in the literature review, the following concepts were
chosen as the basis of the analysis of the research problem. These were uncontrolled
Ticehurst and Veal (2000), “a conceptual framework indicates how researcher views the
concepts involved in a study - especially the relationships between concepts”. Greater clarity in
understanding the concepts addressed in this study indicated the relationships between the
Uncontrolled
Communication
Brand Name
Figure 1: Conceptual Framework of Research Variables and their relationships
Following the development of the conceptual framework, specific research questions and
hypothesis were established to address directly to the research problem In the following section
3. Is there any significant relationship between brand name and brand attitude in the context
of Banglalink™?
3.2.2 Hypotheses
3. There is a significant relationship between brand name and brand attitude in the context
of Banglalink™.
4.0 Methodology
structure of relationships among the set of measured variables. The purpose of the study was to
controlled communication, brand name and brand attitude in the context of Banglalink™. Here
variables, and brand attitude as a dependent variable. The researcher has conducted a
correlational study to investigate the existence of relationships between the measured variables.
When a researcher investigates the effects of measured variables and analyses the
relationships among the variables, the design is known as correlational. A correlational study
examines the extent to which differences in characteristics in variable are related to differences
in once or more other characteristics or variables. A correlation exists if, when one variable
In correlational analysis, the researcher has no control over the values of the variables under
study. Instead the researcher merely observes how the variables of interest vary in the natural
environment. As the current study was carried out in the natural environment of the
organization, the researcher interfered minimally with the normal flow of the events. With this
in mind, the present study used correlational to discover or establish the existence of
also used step-wise regression analysis for identifying which independent variable(s)
individually and collectively provides a meaningful contribution towards the explanation of the
dependent variable.
In this study the researcher collected information from the subscribers of Banglalink™. The
sample frame for this study was the entry list of subscribers at the customer care centre in
Gulshan. Through non-probability convenience sampling a sufficient number (106) of
Due to lack of secondary data (e.g. articles, journals, and telecom publications) in the case of
Banglalink™, it was required to investigate primary data’s for analyzing the problem. To
collect data from primary sources, a set of structured questionnaire ( 25 questions , 5 point likert
scale) were distributed among the subscribers when they visited the customer care center in
Gulshan for bill payment and other purposes. The questionnaire was a useful method to collect
1. The current study was about brand attitude, brand name, controlled & uncontrolled
communication and subscribers might feel reluctant to discuss these issues through a
time consuming interview specially when they have a problem to solve. In such a
2. The researcher has conducted the survey on 106 respondents. To interview such a large
sample of subscribers would have been time consuming and difficult. For this reason the
survey was conducted through a structured questionnaire rather than direct interview.
3. The postal system of our country is very slow. Hence, mail survey would have been too
4. The internet facility is not widespread in our country. Therefore, online survey will also
questionnaires.
A structured questionnaire has been used in this research to collect data. Each of the
(Section 1, Question 1-6) developed by Hallbrook and Batra, (1987) and the reported reliability
of this variable was 0.92. Uncontrolled communication has been measured by using 10 items
(Section 2, Question 7-16) developed Bansal and Voyer, (2000) and the reported reliability of
this variable was 0.91. Brand name has been measured by using 5 items (Section 3, Question
17-21) developed by Debra Grace and Aron O’ Cass, (2005) and the reported reliability of this
variable was 0.92. Brand attitude has been measured by using 4 items (Section 4, Question 22-
25) developed by Yoo and Donthu, (2001) and the reported reliability of this variable was 0.94.
Since the instrument was measuring respondents brand attitude, brand name, uncontrolled
and controlled communication a 5 point Likert scale was used to determine how strongly
respondents agree or disagree with each item (1= strongly disagree and 5=strongly agree)
(Zikmund, 1997).
Due to lack of journals and telecom publications, it was required to analyze primary data to
investigate the research questions. The researcher used a 25 item, 5 point likert scale structured
The proposed study was a correlational study. As a result, after collecting data from the
respondents the researcher used a correlational matrix to identify whether relationships exist
between the measured variable or not. Besides that, stepwise regression of all constructs were
calculated to identify the level of influence each has on the dependent variable (brand attitude).
For this research SPSS version 12 has been used as the statistical data analysis tool as it offers
5.0 Results
5.1 Reliability and Descriptive statistics of the Instruments
The reliability coefficients, means and standard deviations of all the constructs in the
current study are displayed in Table 2. The coefficient alphas for the different constructs were
computed using the reliability procedure in SPSS (version 12.0). The most highly recommended
measure of internal consistency is provided by coefficient alpha (α) or Cronbach’s alpha (1951)
as it provides a good reliability estimate in most situations. The nearer the value of alpha (α) to
1, the better reliability. If the value is low, either there are too few items or there is very little
commonality among the items. Nunnally (1978) suggested that for early stages of any research
the reliability of .50-.60 is sufficient. The reliabilities of all the constructs in this study found to
Table: 2
Descriptive statistics, and Reliability Coefficient of uncontrolled communication, controlled
communication, brand name, and brand attitude.
Scale No. of Items Alpha Mean SD
Note: n= 106
Mean scores have been computed by equally weighting the mean scores of all items. On a
five point scale mean score for controlled communication is 4.15 (sd = .49). The mean score for
uncontrolled communication is 4.03 (sd = .57). The mean score for brand name is 4.12 (sd =
.61).
The mean score for brand attitude is 4.18 (sd =.61). It indicates that people’s attitude towards
the measured variables. In interpreting the strength of relationships between variables, the
guidelines suggested by Rowntree (1981) were followed. His classification of the correlation
The bivariate correlation procedure was subject to a two tailed test of statistical significance at
two different levels highly significant (p<.001) and significant (p<.01) or (p<.05). The results of
Table 3
Correlation Matrix for uncontrolled communication, controlled communication, brand name,
and brand attitude.
Con_com Uncom_com Bra_name Bra_att
Bra_name .720**
Bra_att
The result of correlation analysis for all the variables is shown in Table 4. It examines the
brand attitude. The variables significantly correlated with brand attitude are controlled
communication (r= .65, p<.01), uncontrolled communication (r=.73, p<.01), and brand name
(r=.72, p<.01).
5.3 Stepwise Regression Analysis
Stepwise regression was conducted to asses the relationship between variables. Hanushek
and Jackson, (1977) suggested that stepwise regression is a useful procedure in determining
most significantly related variables in explaining the behavior in question and this procedure not
only gives an indication of how comprehensive the effect of the independent variable is, but
also details which aspects of a grossly defined variable have been differentially affected. Cohen
and Cohen, (1975) cautioned that, when an investigator has a large pool of potential independent
variables and very little theory to guide selection among them, he may be benefited by using
stepwise regression. The authors noted that in the use of stepwise regression analysis probably
the most serious problem arises when a relatively large number of independent variables are
used. If the researcher had selected both dependent and independent variabled based on
grounded theory, and the original independent variables (before stepwise selection) is not too
large in that case stepwise regression will work as a useful tool in testing hypothesis. The
selected variables for this study are based on strong grounded theories. Large numbers of
independent variables were not considered for this study. The effort to screen out redundant
variables during the model building process, and to provide a model in which all variables
individually and collectively, provide a meaningful contribution toward the expansion of the
Table 4
Stepwise Regression on Brand attitude
Variable B SEB β R2 ∆ R2
Step 1 .542
communication (p <.05), and brand name (p <.001) has been found to be statistically
significantly related with brand attitude. These results provided full support for the research
hypothesis. These three predictor variables together explained 63% of the variance in brand
Hypothesis 1:
The results of the correlational study depicts that uncontrolled communication is significantly
correlated (r=.73, p<.01) with brand attitude. So the results of correlational analysis have
The results of stepwise regression analysis depicts that in the context of Banglalink™
brand attitude. Uncontrolled communication explained 54% of the variance in brand attitude The
result of the regression analysis provided full support to the research hypothesis
Hypothesis 2:
The results of the correlational study depicts that controlled communication is significantly
correlated(r= .65, p<.01) with brand attitude. So the results of correlation analysis have
The results of stepwise regression analysis depicts that in the context of Banglalink™
controlled communication (p <.05) was found to be statistically significantly related with brand
attitude. Controlled communication explained about 7% of the variance in brand attitude. So the
results of regression analysis have provided full support for research hypothesis.
Hypothesis 3:
There is a significant relationship between brand name and brand attitude in the context of
Banglalink™.
The results of the correlational study depicts that brand name is significantly correlated
(r=.72, p<.01) with brand attitude. So the results of correlational analysis have provided full
The results of stepwise regression analysis depicts that in the context of Banglalink™ brand
name (p <.001) was found to be statistically significantly related with brand attitude. Brand
name explained 7% of the variance in brand attitude. So the results of regression analysis have
7.0 Recommendations
The study variables controlled communication, uncontrolled communication and brand name
are significantly related to brand attitude. The three independent variables clearly influence the
dependent variable brand attitude i.e. they all contribute to attitude that consumers have
regarding Banglalink™.
The marketers of Banglalink™ should work at advertising and other promotional activities in
order to convey realistic service experiences with the brand so that their messages highlight the
value of the brand Banglalink™. Developing high value offers and favorable rates can be a key
The study has identified the high level of influence that informal communication modes and
word of mouth behavior have on brand attitude so the marketers of Banglalink™ should work
hard at encouraging this kind of behavior. Important way for doing this would be by improving
network quality and coverage, working at service recovery and overall service quality of
Banglalink™. This would create satisfied customers and promote favorable WOM
communications which in turn would influence a positive attitude towards the brand
Banglalink™.
The marketers should definitely work hard to promote the brand Banglalink™ so that the
name stands for high value, trust, consistency and reliability which would influence people to
8.0 Conclusion
The study has shown that controlled communication, uncontrolled communication and brand
name are significantly related to brand attitude of consumers towards a brand. So we can see
that in order for Banglalink™ to induce a positive attitude of people towards the brand they
should pay careful attention to elements such as their advertising and other promotional
activities, encourage positive WOM behavior, strive to get favorable non-paid publicity and also
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APPENDIX 1
A survey on Banglalink™
Are you willing to spend some time to answer the survey? We guarantee that your responses
will be treated as strictly confidential. You are under no obligation to answer and you are free to
terminate the interview at any time
Controlled communications
1 2 3 4 5
2 I react favorably to the advertising and promotions of
Banglalink 1 2 3 4 5
3 I feel positive toward the advertising and promotions of
Banglalink
1 2 3 4 5
4 The advertising and promotions of Banglalink are good
1 2 3 4 5
5 The advertising and promotions of Banglalink do a good
job
1 2 3 4 5
6 I am happy with the advertising and promotions of
Banglalink.
1 2 3 4 5
Uncontrolled communications
7 Publicity has been significant in affecting my views
about Banglalink 1 2 3 4 5
8 Publicity revealed some things I had not considered
about Banglalink 1 2 3 4 5
9
Publicity provided some different ideas about Banglalink 1 2 3 4 5
10
Publicity helped me formulate my ideas about Banglalink 1 2 3 4 5
11
Publicity influenced my evaluation of Banglalink 1 2 3 4 5
12 My friends/family have been significant in affecting my
views about Banglalink. 1 2 3 4 5
13 My friends/family mentioned things I had not considered
about Banglalink. 1 2 3 4 5
14 My friends/family provided some different ideas about
Banglalink. 1 2 3 4 5
15 My friends/family helped me formulate my ideas about
Banglalink 1 2 3 4 5
16 My friends/family influenced my evaluation of
Banglalink 1 2 3 4 5
Brand Name
17 The brand name of Banglalink tells me a lot about what
to expect 1 2 3 4 5
18 The brand name of Banglalink tells a lot about this
service 1 2 3 4 5
19
The brand name of Banglalink means something to me 1 2 3 4 5
20
The brand name of Banglalink sends a message to me 1 2 3 4 5
21 The brand name of Banglalink tells me everything I need
to know. 1 2 3 4 5
Brand Attitude
22
Overall, I think Banglalink is good 1 2 3 4 5
23
Overall, I think Banglalink is a nice service 1 2 3 4 5
24
Overall, I think Banglalink is very attractive 1 2 3 4 5
25 Overall, I think Banglalink is very desirable 1 2 3 4 5
APPENDIX -2
The space saver method is used. That is, the covariance matrix is not calculated or
used in the analysis.
Case Processing Summary
N %
Cases Valid 106 100.0
Excluded
0 .0
(a)
Total 106 100.0
a Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's
Alpha N of Items
.687 6
The space saver method is used. That is, the covariance matrix is not calculated or
used in the analysis.
N %
Cases Valid 106 100.0
Excluded
0 .0
(a)
Total 106 100.0
a Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's
Alpha N of Items
.829 10
Warnings
The space saver method is used. That is, the covariance matrix is not calculated or
used in the analysis.
N %
Cases Valid 106 100.0
Excluded
0 .0
(a)
Total 106 100.0
a Listwise deletion based on all variables in the procedure
Reliability Statistics
Cronbach's
Alpha N of Items
.764 5
The space saver method is used. That is, the covariance matrix is not calculated or
used in the analysis.
N %
Cases Valid 106 100.0
Excluded
0 .0
(a)
Total 106 100.0
a Listwise deletion based on all variables in the procedure
Reliability Statistics
Cronbach's
Alpha N of Items
.744 4
Correlations
Correlations
Regression
Variables Entered/Removeda
Variables Variables
Model Entered Removed Method
1 Stepwise
(Criteria:
Probabilit
y-of-
F-to-enter
Uncon_
. <= .050,
com
Probabilit
y-of-
F-to-remo
ve >= .
100).
2 Stepwise
(Criteria:
Probabilit
y-of-
F-to-enter
Brand_
. <= .050,
name
Probabilit
y-of-
F-to-remo
ve >= .
100).
3 Stepwise
(Criteria:
Probabilit
y-of-
F-to-enter
Con_com . <= .050,
Probabilit
y-of-
F-to-remo
ve >= .
100).
a. Dependent Variable: Bra_att
Model Summaryd
ANOVA(d)
Sum of
Model Squares df Mean Square F Sig.
1 Regressio
21.402 1 21.402 122.938 .000(a)
n
Residual 18.105 104 .174
Total 39.508 105
2 Regressio
24.165 2 12.082 81.111 .000(b)
n
Residual 15.343 103 .149
Total 39.508 105
3 Regressio
24.816 3 8.272 57.430 .000(c)
n
Residual 14.692 102 .144
Total 39.508 105
a Predictors: (Constant), Uncon_com
b Predictors: (Constant), Uncon_com, Brand_name
c Predictors: (Constant), Uncon_com, Brand_name, Con_com
d Dependent Variable: Bra_att
Coefficients(a)
Unstandardized Standardized
Model Coefficients Coefficients t Sig.
B Std. Error Beta
1 (Constant) 1.042 .287 3.635 .000
Uncon_com .779 .070 .736 11.088 .000
2 (Constant) .665 .279 2.384 .019
Uncon_com .477 .096 .451 4.988 .000
Brand_nam
.387 .090 .389 4.306 .000
e
3 (Constant) .308 .322 .957 .341
Uncon_com .329 .117 .311 2.819 .006
Brand_nam
.373 .089 .375 4.206 .000
e
Con_com .244 .115 .198 2.126 .036
a Dependent Variable: Bra_att
Excluded Variables(c)
Collinearity
Statistics
Partial
Model Beta In t Sig. Correlation Tolerance
1 Con_com .227(a) 2.275 .025 .219 .424
Brand_na
.389(a) 4.306 .000 .391 .462
me
2 Con_com .198(b) 2.126 .036 .206 .422
a Predictors in the Model: (Constant), Uncon_com
b Predictors in the Model: (Constant), Uncon_com, Brand_name
c Dependent Variable: Bra_att
APPENDIX 3
An overview of Banglalink™
Banglalink™ is the latest addition to the GSM family of Orascom Telecom Holdings, an
Egyptian company operating in nine emerging markets in the Middle East, South East Asia and
Africa. Naguib Sawiris, Chairman and CEO of OTH, announced the acquisition of Sheba
The company aims to make a difference in the lives of the people. Its vision is to “understand
people's needs best and will create and deliver appropriate communication services to improve
people's life and make it easier”. Their mission is, therefore, to reduce the total cost of
ownership of buying and using a mobile phone. Moreover, to achieve this vision, the company
has established some values that it tries to instill in its employees. They want their employees,
and the company as a result, to be straight forward, reliable, innovative and, above all,
passionate.
As Sheba Telecom, the worst performing network operator in the industry, the company had
only 30,000 subscribers. To dispel this image, OTH had re-branded Sheba as Banglalink™ in
With that kind of a reputation at its disposition, the Banglalink™ management has placed one
of the highest priorities on improving its network. In this respect, they have installed state-of-
the-art equipment from Siemens and Huawei and brought in over 1,000 people, including
experts, from 15 countries around the world to set up the required infrastructure. The system
took a record four months (less than half the normal time) to build. In 2005 alone, Orascom
invested $120 million, earmarking close to another $300 million for future investments.
While Banglalink™ started out quite small, it has increased its coverage from 9 to 61 districts
in just over one year. Moreover, in less than one year, it now has more than 1.5 million
Functional Departments
There are approximately eight functional departments in the organization. The functions of
Sales
One of the most important links in the chain, the sales department is responsible for all the
sales activities of the organization. The department, led by Mr. Hassan Samy, Director Sales, is
divided into four divisions: Direct Sales, Corporate Sales, Distribution Sales and Sales Support.
Sales Department
Distribution Sales
This is the largest team in the department. Consisting entirely of male employees, this
department is responsible for managing the activities and ensuring that sales targets are met by
the company’s six distributors (Lipro, Asimpex, Butterfly, Propel, Deens & Deshlink). They are
also responsible for ensuring that these distributors and all the dealers operating under them are
following the policies of the company with regard to promotions, package offerings, branding,
pricing etc. Hence, the team works mostly outdoors and report to the office in the evening or
Corporate Sales is a relatively small team compared to direct and distribution sales. They are
yet to launch any packages, although they have recently started selling to public call offices
Direct Sales
This is the largest team in the department, consisting of more than 20 employees. The direct
sales division operates two sales booths, run by its own employees. The first booth is located in
Gulshan 2, on the 4th Floor of Land View Complex, while the second booth in Chittagong. The
purpose of these booths is to sell directly to its customers, alongside its distributors/dealers. It
helps the company stay in close touch with its customers and get faster and more reliable
The booths were originally established with the idea that people prefer to purchase their cell
phones from reliable sources and no one can be more reliable than the company itself. Thus,
they provide another mechanism by which the company can meet and satisfy its consumers
It is the only on of its kind in the industry. All the other operators sell their products solely
through their dealers, and more recently some have added selling activities to their Customer
Care activities, but are yet to make it a separate entity similar as is in Banglalink™.
Sales Support
This team is the smallest of all the four teams. Nevertheless, they form an integral part of the
department by providing logistical support to the other three teams. Thus, they have to maintain
liaison with the Procurement Department; Kallol Group, our scratch card distributors; the
warehouse, where all POSM and handsets are stored; the Ring and OrasInvest (wholly owned
subsidiaries of OTH who provide the company with SIM cards, SAF and other logistical
support.
Marketing
The Marketing team also consists of several teams, which includes PR & Communications,
VAS, Loyalty & Retention and International Roaming. The teams all report to Omer Rashid,
The Loyalty & Retention team is responsible for the designing of the special offers launched
from time to time in an attempt either to increase customer base or to increase ARPU.
The VAS division is responsible for the continuously adding valuable services to provide a
complete solution to existing customers, for example, for making conference calling & ring
tone/logo downloads possible. These two teams together are in charge of making the customers
PR & Communication is responsible for designing and developing all promotional materials
for the marketing of any new product/package and any other activities. They coordinate and
work directly with the advertising agency and other vendors. While other companies have an
entire department for promotions and branding, at Banglalink™ this division, consisting of only
Human Resources
Aside from recruiting and training employees, the HR department is also responsible for
compensation packages for its employees, such as medical insurance under the group plan, life
insurance and running several activities such as the Vaccination Program for all.
Training activities are continuously taking place to develop and hone the skills & knowledge
of the personnel, such as the English Language & MS Project Courses for selected employees
and conducting a GSM Orientation session for all employees, especially the Sales, Marketing &
Customer Care
Rumana Reza, the only female director in the organization, is the head of the Customer Care
department. This too is segmented, consisting of the Customer Care Centers, Care Line, Credit
Management Unit and the Support Services Unit. They are responsible for handling customer
The Customer Care Centers are located in motijheel and gulshan while the other departments
IT & Billing
The IT & Billing department, as is evident from the name, is in charge of all the hardware,
software and program requirement of the other departments. They also generate the bills for the
Administration
Apart from the Administration division, the department also consists of the Legal division
Finance
The finance department is the largest department at the head office with an entire floor
devoted to their needs. They consist of the Procurement & Cash Management divisions among
many others.
Technical
The technical people are all located at Hosna Tower in Gulshan – 1, but many work off site,
taking care of BTS or BSCs. The various divisions of this particular department include Access
Banglalink™ currently has five packages in the market. When the company started out,
government regulations had prevented it and other telecom companies from selling SIM cards
alone, but rather had to bundle them with a handsets. However, this policy has been withdrawn
ever since BTRC’s Teletalk itself started selling SIM cards alone to the public.
In fact, according to customer feedbacks, Banglalink™ packages are all attractive, since the
connections and monthly line rents are some of the lowest in the industry, and would have
All the pre-paid packages are classed under two different tarrif profiles. Ladies First and Be
Linked (Misti Komola). Each has its own attributes and subscribers can choose which profile
Pre-paid M2M
This package Banglalink™ consists of a M2M sim which can only make and receive calls
from mobile phones. There is no BTTB connectivity or NWD and ISD facilities. The package
Pre-paid M2M+
This package Banglalink™ consists of a M2M sim which can make and receive calls from
mobile phones and also receive calls from BTTB. The package is priced at Tk. 350 ( Boishakhi
promotion price)
Pre-paid Standard
The Standard SIM allows a subscriber to make and receive local, BTTB, NWD and ISD calls. It
Post-paid M2M
The post-paid M2M SIM is similar to the pre-paid one; the difference lies in the fact that the
subscriber can his/her bill after usage rather than before. The difference between Banglalink™’s
post-paid lines and its competitors is that our SIMs do not cost anything. Subscribers just have to
pay a certain security deposit, which is also lower than its counterparts, and can avail the
facility. For an M2M connection the deposit amount is merely Tk. 500. The Banglalink™
connections also allow subscribers 125% credit limit where all other counterparts allow only
100%.
Post-paid M2M+
Similar to an M2M connection, customers have to pay only Tk. 500 security deposit to
become an M2M+ subscriber. Subsribers pay a monthly line rent of Tk. 150
security deposit and get a connection with T&T incoming & outgoing, and NWD facilities. For
the other option, subscribers pay Tk. 2,500, which would allow them to make ISD calls in
addition to the other facilities. The monthly line rent is Tk. 150 only.
Upper Class 600 and Upper Class 1200 are two packages under the postpaid category . Here
customers have to pay a fixed monthly sum of Tk. 600 or Tk.1200 and enjoy free minutes and
are charged only after the mnutes have been used up.
This is another package under the postpaid category where the customer pays a set Tk. 6500
for a set bundle of minutes and are then charged Tk. 2 per minute for any additional usage. This
phone is used widely in Phone & Fax shops all over Bangladesh.
This is a package that consists of sets of multiples of 4 connections and the customer is charged
a minimum of Tk 24,000 fixed per month @ Tk. 1.6 per minute and charged additionally if the
Apart from the sale of connections, Banglalink™ dealers and the Direct Sales team sell
scratch cards for their pre-paid subscribers and also handsets, as long as it is sold with a
connection since the copmany does not earn any profit from the sale of handsets alone.
The scratch cards are of 4 denominations: Tk. 50,150, 300 & 600 with varying validities. The
range of handsets is also very limited. There are sets from Motorola, Alcatel, Siemens, LG,
Panasonic and most recently Nokia. There are plans to add several more handsets from these
and other manufacturers to extend the product line, depending on consumer choise and
Place
While Banglalink™ started out quite small with network coverage in only 9 districts the
number has been increasing regularly and now there is coverage in 61 districts.
Distribution of handsets takes place via six authorized distributors: Lipro, Asimpex,
Butterfly, Deshlink, Deens & Propel. The distributors have more than a hundred dealers
Sales also takes place from the DS Booth attached to the Customer Care Center. Currently
there are are only two booths, one with Chittagong CC and the other with the Dhaka CC. These
booths are run and managed by the employees of the company itself.
Packaging
The logistical companies do the packaging completely. The Ring provides the company with
the SIM cards sealed within CD covers and SAF forms. OrasInvest is also involved in the
packaging process.
Smaller and more petite in size, the Banglalink™ insignia occupy most of the space. Many
people can be seen carrying around Banglalink™ packages in their hands on their way to offices
Promotion
With product offerings becoming almost similar amongst the network operators, most now
compete in terms of special offers. Telecom companies all have stepped up their marketing
activities and are pushing for aggressive promotions, far more aggressive than they had been in
the past and far more aggressive than companies of other industries.
While the chapter on competition analyzes the special offers of Banglalink™ against its
competitors, the following section discusses only the offers of the company and its relative
attractiveness.
Special Offers
Launch Offer
The initial offer with which the copmany launched its operation was the Tk. 3,400 hundred
package. The package contained one pre-paid M2M connection, six scratch cards worth Tk.
1,800 and a handset. The offer came as a bang in the mass market. While people had expected
something big from the time OTH announce the purchase of Sheba Telecom, this offer was big
and exceeded many expectations. People would start lining up from early morning and stayed as
long as necessary to get the connection. Often the line would extend all the way from the 4th
floor, where the DS booth is located, on the 2nd floor. Daily average sales had been around 350-
The offer had been in line with the company’s mission to reduce the total cost of owning a
mobile, which it had identified as the biggest barrier today impeding the development of an
emerging market. Thus, the attractiveness came from the price of the handset, which came to
somewhere around Tk. 1,500 and had nothing to the actual product itself, i.e. the SIM card.
Since network problems still existed, many customers, more often than not, threw away the SIM
The Boishakhi Promotion is currently in place where the prepaid connections ( M2m, M2M+
and Standard) are being sole at extremely low rates ( Tk. 150, Tk. 350 and Tk. 550 respectively)
As mentioned earlier, the industry is on the road to a price war. Most of the operators are
competing to bring down their prices below that of others and thus induce customers to switch
operators. However, the low cost of switching is also causing more customers to switch
operators frequently based on the special offers available at that time and reducing brand equity.
Nevertheless, once people get tired of special offers, operators have to turn back to their
basic product and compete at that level. Moreover, since networks can be improved with just a
little bit of time and a lot of investment, most operators would sooner or later be competing in
Like all the other subsidiaries of OTH, Banglalink™ also places a high importance in adding
newer and more unique value added services to its operation. The various VAS available to
by all operators.
Tk. 1002
Banglalink™ can provide its post-paid
(monthly) &
Itemized Bill subscribers with an itemized bill, either monthly
Tk. 115 (on
or on demand.
demand)
SMSemail as a part of the service they offer. Quite recently, the CEO of the company, Lars P.
Richelt also unveiled several emergency recharging systems (“an ER for mobiles”) around the
city that would allow consumers to recharge their handset, regardless of the operators they use,