How emotional advertisement can enhance customer retention in the telecom industry of

Bangladesh

Chapter 1: Introduction

1.1 Background of the study

1.2 Purpose of the study
1.3 Statement of the problem
1.4 Research question
1.5 Research objective
1.6 Background of the industry
1.7 Background of the company
 1.1 Background of the study

The telecom industry in Bangladesh is huge with a user base of 162 million as of June, 2019
(BTRC, 2019) in a population of 168 million (worldometers.info, 2019). The figures reveal that
mobile phone is a necessity to majority of the population. This also shows that there is negligible
or low scope for telecommunication companies to acquire new customers. For a competitive and
saturated market like the telecommunication industry in Bangladesh, it is more crucial for
telecommunication companies to maintain existing customer base in order to survive after all the
goal of all businesses is to make profits and not bear any loss.

A significant number of population of the country is based in rural areas, making the target
audience for advertisements very diverse. With the existence of m-commerce and mobile
financing many people are earning their bread and butter through the devices in their palms.

The telecommunication companies bear them in mind while creating advertisement that would
touch them because of their struggles and practical experiences. Many advertisements also come
up with social awareness.

1.2 Purpose of the study

This study will determine to what degree customer retention is dependent on emotional
advertisement. Given that all telecommunication services providers offer similar perks, if not the
same advantages, how do the communications hold back customers to one operator instead of
others.
 1.5 Research Objective
The most beneficial and significant asset a company can have is the loyalty of their
customers. Building relationship with customers and keeping them engaged and invested is
one of the most crucial capabilities of a company. Greater customer loyalty and better
customer retention results in higher profits for any company. Maintaining and sustaining
existing customers are more cost effective for companies than acquiring new customers.
(Johnson D Michael et al, 2012) Moreover, the market in the telecom industry of Bangladesh
is so saturated that scope of untapped or new customers is low or negligible. The motivation
behind this dissertation is to determine if emotional advertisement plays a role in retaining
existing customers which will also reveal the profitability of the chosen telecommunication
company.

1.6 Background of the Industry

It is not too long that the telecommunication industry of Bangladesh came to being with
raging fire. Basic telecommunication services were provided by Bangladesh Telegraph and
Telephone (BTT) until 1990. BTT was also a regulator (Hoque, 2018)
Bangladesh Telecommunication Act 2001 was passed by the parliament on 6th April 2001 in
order to facilitate the formation of an independent commission that would determine the
development and proficient regulation of telecommunication system and telecommunication
services in Bangladesh. (Hoque, 2018)
BTRC (Bangladesh Telecommunication Regulatory Commission) was thus formed in 2002
as an independent regulatory commission in order to carry out the activities under the
Bangladesh Telecommunication Act 2001. (Hoque, 2018). BTRC is also authorized to
protect the customers from being unfairly treated by the telecommunication service provider.
The Act has been amended in 2010 enabling some restrictions on telecommunication service
providers and alerting them about consequences, which is penalty of tk 300 crores or ten
years of imprisonment or both, followed by breach of new amendments to The Act. (Hoque,
2018).
Reference

Books

1. Michael D. Johnson, Andreas Herrmann, Frank Huber, Anders Gustafsson (2012)

Customer Retention in the Automotive Industry: Quality, Satisfaction and Loyalty.

Page 217

2. Dr. Shah Md Safiul Hoque (2018)

Public SectorsÕ E-Service Delivery for Rural Dwellers in Bangladesh: Perceptions and
Sustainability Page 48-49

Websites

1. www.btrc.gov.bd (“Mobile Users”) June, 2019

2. www.worldometers.info (“Population of Bangladesh”) June, 2019

Videos
1. https://www.youtube.com/watch?v=GX1zjt-B6oU (“Fisherman Ad, Banglalink)
2. https://www.youtube.com/watch?v=wdZtJMmBBT0 (“Shopno Jabe Bari Amar”)
Grameenphone
3. https://www.youtube.com/watch?v=f-NTnJLbngU (MMS Ad of little girl) Grameenphone
4. https://www.youtube.com/watch?v=oQlNpyHVNjc (Mothers Day for Working Mothers)
Grameenphone, 2016
5. https://www.youtube.com/watch?v=iaawzTtUFOM (Little girl sendning message to late
mother) Banglalink