Analysis On

Factors influencing Consumers Buying Pattern Toward “CITYCELL” A Study on “CITYCELL ZOOM”

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Table of Content
No. 1 2 3 4 5 6 7 8 9 10 11 12 13 Title Executive summery Company Background Objective of the study Methodology Strengths & weaknesses of Citycell(image perspective) Strengths & weaknesses of Citycell Zoom Modem and Service Factors influencing consumer’s buying pattern Buying Decision Process Defining the Marketing mix Data Analysis and Interpret Recommendation Conclusion Sources Page No. 5 6 7 8 9-11 12-13 14 15 16-18 19 20 21 22

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This term paper entitling “Factors influencing consumer’s buying pattern towards Citycell: A study on Zoom” includes short history of the company “Citycell” and its operation and services in this countries. Also it includes the analysis of the factors that influence consumer’s preference of Citycell as their mobile service and “Citycell Zoom” Broadband mobile internet that is offered by the company.

The term paper starts with a short overview on the company Citycell and its services offered to the consumers of this country. Then it includes the objective (Both primary and secondary) of the study and the methodology of the Study. Methodology talks about research method on the buying pattern and the primary and secondary sources of data. Then it elaborately analyzes the strengths and the weakness of the company from the perspective of the image it has to its customers. Also there is a analysis of strengths of weakness of the particular product “Zoom Ultra Modem” and its services. The research shows that there are few factors and reasons that influence consumers buying pattern and influences their preference to use Zoom Modem for internet use. Also the report talks about marketing mix of Zoom Modem. Finally based on the analysis, the report includes some recommendations on how they can improve the service and attract more users.

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Company Background
Citycell (Pacific Bangladesh Telecom Limited) is the first mobile communications company of Bangladesh. It is the only CDMA network operator in the country. As of 1 March 2008, Citycell's total mobile subscriber base is 1.56 million, up 137 per cent or 680,000 from two years ago, giving it the best growth rate of the company till date. Citycell is currently owned by SingTel with 45% stake and the rest 55% owned by Pacific Group and Far East Telecom. By the end of 2007 Citycell had refurbished its old brand identity and introduced a new logo and corporate identity; the new logo is very reminiscent of the old logo. However the slogan has remained unchanged "because we care". As of July, 2008 Citycell has 1.67 million subscribers

Citycell offers prepaid, postpaid and fixed phone plans. Since Citycell operates in CDMA, RIM's[are usually sold with a phone mostly cheap Chinese sets produced by ZTE, Huawei, Samsung, Motorola and Alcatel. Citycell currently has the cheapest phone with connection tariff at tk.1399. The current only prepaid plan is branded as Citycell One. Citycell started offering prepaid plans from 2003. The postpaid plan is branded as Citycell One. The Postpaid subscribers enjoy 4 FnF numbers to other operators, 30 sec pulse applicable for all outgoing, Zoom Data service etc. in additional. Citycell Zoom is a data plan where the customer receives an internet dongle to surf the web where ever the Citycell network is present. Customers have a choice of Citycell Zoom and Citycell Zoom Ultra. Zoom comes with a choice of prepaid or postpaid. There are 6 Customer care centers of Citycell in the country. One for each division and there are another 500 Customer care Points scattered around the country.

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Objective of the Study
Objective of the study can be categorized into two parts:

Primary Objective: The primary objective of the study is to analyze the buying pattern of the customers towards Zoom modem which is a mobile broadband service provided by the telecom service provider Citycell. This report will focus on the factors that influence buying decision process of the targeted customer base of Zoom Internet Modem.

Secondary Objective: The secondary objective of the study is to know detailed or specific information about following topics  Strength and weakness of the brand from an image perspective.  Strength and weakness of the product (Zoom Modem) and its services (net speed, customer care etc.)  Analyzing factors such as cultural, social, psychological and personal factors that influence the buying pattern
 Defining the Marketing Mix of Zoom Modem.

 Finally to make some recommendations to the company on how to improve their service quality.

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Research Method: Specific procedures used to gather and analyze data are called research method.

The information used in this report is gathered from two sources: Primary Sources: In this report, primary information is gathered based on written questioners asked to the potential buyers and current users of Citycell Zoom modem. Some of the sample questions are:
 What was the reason behind choosing Citycell Zoom Internet Modem than other brands

in the market?  For how long they have been using this modem?  What particular benefits (if any) are they getting by using Zoom Modem and service?  What are the major weaknesses/ drawbacks?  What are their suggestions on improving the product quality and services?

Secondary Sources: Secondary sources of information are different websites, blogs, articles etc. from which secondary information have been collected.

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Strength and Weakness of Citycell
In our study we have found out some strength and weakness of the brand “Citycell” from an image perspective. Some of them are given below:

1. First mobile communications company: Citycell (Pacific Bangladesh Telecom

Limited) is the first mobile communications company of Bangladesh. CityCell is one of the pioneers to serve the middle class people with high quality mobile service with fastest communication. It has created a new way to our country in communicating business.
2. Promotion: By the end of 2007 Citycell had refurbished its old brand identity and

introduced a new logo and corporate identity; the new logo is very reminiscent of the old logo. However the slogan has remained unchanged "because we care"
3. Customer care : There are 6 Customer care centers of Citycell in the country. One for

each division and there are another 500 Customer care Points scattered around the country. The company operates a 24-hour call centre with well trained operators to respond to customer queries. Citycell’s customer service are open 7 days a week to ensure customers can access Citycell at any convenient time.
4. Mission: The Company offers a full array of mobile services for consumers and

businesses that are focused on the unique needs of the Bangladeshi community. Citycell’s growth strategy is to integrate superior customer service, highest standards of technology and a choice of packages at affordable rates.
5. E-top up: As advertised in June 2008, Citycell became the first mobile operator to sign

up for Instant Load. Instant Load is a joint effort from Dutch Bangla Bank and Citycell that lets pre-paid account holders top up their phone through SMS anytime, without the need to visit any store or purchase any minutes. This service is being offered free-ofcharge and it is the first service of its type in Bangladesh.

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After receiving the SMS, Citycell automatically withdraws the desired amount from the bank account instantly. It is not known if the service is applicable for post-paid users.

6. Different package: Citycell offers prepaid, postpaid and fixed phone plans: •

Prepaid:The current only prepaid plan is branded as Citycell One. Citycell started offering prepaid plans from 2003. It was the first to offer a prepaid plan with BTTB connectivity in the same year. Subscribers of this plan could make free calls to other Citycell subscribers during late night hours. In 2006, Citycell launched Hello 0123 plan. The name 0123 signified tariff of Tk 0 for calls to one Citycell number of the subscriber’s choice, Tk 1 for calls to two other Citycell numbers, Tk 2 for calls to all other Citycell numbers and Tk 3 for calls to all other networks. This plan was followed up with a string of other spinoff plans that continued into 2007. Postpaid: The postpaid plan is branded as Citycell One. The Postpaid subscribers enjoy 4
FnF numbers to other operators, 30 sec pulse applicable for all outgoing, Zoom Data service etc. in additional.

• 7. Online self-service: As a Citycell post-paid customer, Citycell Online Self Care service

gives you the opportunity to view bill history, current bill status, and payment record. Citycell is committed to providing you with the highest level of customer service and we hope you will enjoy the convenience of the Online Self Care service. Here is the link to access Citycell Online Self Care:

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1. CDMA service: Citycell is the only CDMA network operator in the country. Since

Citycell operates in CDMA, RIM's are usually sold with a phone mostly cheap Chinese sets produced by ZTE, Huawei, Samsung, Motorola and Alcatel. So consumers cannot change their handset or get the their desired handset. This one of their major weakness. Citycell currently has the cheapest phone and connection tariff at 1399 taka.
2. Network problem: Although Citycell has a widespread network throughout the whole

country, their signal strength is not up to the mark compared to its competitors. The areas that they covered are not sufficient for unceasing human communication. There r many rural areas where their connection does not work properly. The service they provide is mostly suitable for the cities.
3. Less number of value added service: In this extremely competitive market, where

consumer taste is changing day by day surviving without proposing new and improved services is quite difficult. Citycell has major weakness in this aspect. They are not able to introduce new value added services to attract their customers where as competitors such as GP, Robi, Banglalink are improving and introducing new features regularly.

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Strength and Weakness of Zoom Modem
Here is some strength of the Citycell Zoom modem:
1. First internet modem: Zoom is the first internet modem in Bangladesh. They have

created a new goner to the history of human communication providing mobile internet service through a modem. The speed and the portable modem were acceptable to the customers.
2. Speed: Users can experience download speeds of up to 512 kbps, and the Zoom Ultra

connection enables them to access this high-speed internet by simply connecting to laptop or desktop computer. The high speeds facilitate a superior internet browsing experience with video streaming, video surveillance, and rich media content.
3. Portable modem: Zoom has introduced an innovative way of using internet through a

portable modem. It has deduce the burden of complications of ware.
4. Modem as a card reader: Modem is not only used for net surfing also works as a card

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5. Easy to use: As it is a portable modem, it is very easy to carry and use in any computer.

The extension of speed makes it even better in terms of browsing. Its “plug and play” feature makes it more user friendly.
6. Price: Price of zoom modem and its reasonable internet packages are very strong points

for the company. This is one of the reasons why Zoom modem and packages have become popular among consumers especially among the students. Here is given the price and packages of Zoom internet service:

7. Availability: Citycell Zoom internet modem is available around the whole country.

Customers can get zoom modem and internet connections with their desired packages from the citycell customer points and also from the customer touch points. Our survey also found out some weakness of the modem and its services. Some of them are discussed below:
1. Billing System in Postpaid: During our survey we have found out that some consumers

have encountered with some problems of the billing system of postpaid package of Zoom
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Internet. They claimed that they have received excessive bills for internet usage which they didn’t use. This causes dissatisfaction among the consumers. This is a major weakness of Zoom Modem.
2. Network Problem: Another major weakness of Zoom modem is that the signal strength

of modem is not the same everywhere. Consumers have claimed that they don’t always get the same speed everywhere they carry the modem especially in the rural areas. Whereas, the other mobile internet service provider brands have equal signal strength in all the network coverage area. This is another reason for which they might lose customers.
3. Speed Limitation: Citycell Zoom Modem offers internet speed limit up to 512 kbps

where as other service providers offer speed up to 1mbps. Consumers who prefer fast internet connection they might not like Citycell Zoom because of its limited internet speed. Here stands a chance of losing customers for Citycell Zoom internet connection.

Factors Influencing Consumer Buying Pattern
Several factors work among the customers while buying the Citycell zoom internet. These factors vary from customer to customer according to their needs, wants, demands and also different perceptions. The factors can be classified as below:

Cultural Factor: In today’s world of advanced technology every customer wants to get a better internet service which helps him to get involved in the internet easily. Customers of our country are also gradually getting involved more in the internet either for personal reasons or business matters. Citycell zoom connection enables their customers to access the high speed internet in everywhere they want to connect. Through this Citycell zoom secure the perspective of culture.

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Social Factor: Consumers are also influenced by different social factors. Sometime consumers get to know about the citycell internet service from any family members, friends, or any other reference groups. Word-of-Mouth plays a important role in the buying decision of the product. Elsewhere, buying pattern also can be influenced by different online social networks such as blogs, social networking websites, or even in virtual world where people socialize or exchange information and opinions. Consumers can get required information here to evaluate their buying decision.

Personal Factor: Different personal factors also influence the buying behavior of the customers. Sometime it varies in case of occupation. The need of a student and a businessman will vary in case of taking the internet service of Citycell zoom. The buying pattern will also be different in case of different economic situations. Customers of different economic level will take and enjoy different tariff and packages of Citycell zoom which suit them properly.

Psychological Factor: Customer of wireless internet service users can also be influenced by several psychological factors. Customers of Citycell zoom users will obviously expect to have a better speed and a better online post –purchase service from Citycell. Some customer may be satisfied only with speed, some may be only with service, or some wanted to have both speed and service together. Most of the customer expected to have a low cost tariff and packages with the internet service. Some customers purchase zoom only for having an experience with it.


Buying Decision

Generally, behind purchasing every product there is a buying decision process that works directly or indirectly. Consumer buying decision process consists of 5 steps. They are:

Need Recognition: Customers generally want to buy any product when they recognize the need of that certain product. Customers want to use easy and flexible wireless broadband internet service and for this they make primary decision to purchase the internet service from the marketplace. An advertisement or a discussion with friends might play a role in recognizing the need of the product.

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Information Search: In this stage customers are aroused to search for more information, they might simply have heightened attention or might go into an active information search. Consumers can obtain information about related product from any of several sources. These include personal sources (family, friends), commercial sources(advertising, salespeople), public sources(mass media, internet searches),experiential sources(examining, using the product).

Evaluation of Alternatives: In this stage, consumer uses information to evaluate alternative brands in the choice set. Generally consumers try to choose the best one from all the choices. It any brand can influence customers better with its benefits than its competitors, customer then decide to purchase the product.

Purchase Decision: The buyer’s decision about which brand to purchase. Finally buyers choose the brand and make the purchase of this brand product.

Post-purchase Behavior: In this stage consumers take further action after purchase, based on their satisfaction or dissatisfaction. If consumers are satisfied with the product, they will tell others to buy, if they become dissatisfied it will lead to bad mouth about the product.

Defining Marketing Mix
The marketing mix of Citycell Zoom modem that is product, price, place and promotion also influences the buying pattern of consumers of Zoom modem. These terms are discussed below based on our survey:

 Product: CityCell was first introduced in 1994 as a brand name under Pacific

Bangladesh Telecom Limited (PBTL).Citycell is consolidating its position in wireless data by launching their Zoom EV-DO (Evaluation Data Optimized) for the broadband wireless internet service. Citycell Zoom Ultra is the new and upgraded package from Citycell Zoom high-speed wireless internet service that runs on state-of-the-art EV-DO
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technology, the evolution from CDMA 1X technology. It provides download speeds of up to 512 kbps, and the Zoom™ Ultra connection enables to access this high-speed internet by simply connecting to the laptop or desktop computer. Citycell Zoom Ultra provides never-before internet speeds on the move, and plug-and-play service through a versatile USB interface. The high speeds facilitate a superior internet browsing experience with video streaming, video surveillance, and rich media content. Citycell Zoom Ultra data plans are designed to suit people’s specific needs. As they were the first company to introduce mobile broadband internet in our country, they have already gained a place on consumers mind. Also the modem itself can be used on multipurpose like card reader. Also it is very easy to use. Users just have to plug the modem to his or her pc and they will get connection. All this aspects of the product has made it popular among consumers.

 Price: There are different price level of modem and competitive packages (plans) of

Citycell Zoom Ultra. As we have discussed earlier in this term paper that the price and tariff of Zoom packages are reasonable. This is another factor that influences the consumers to prefer Zoom internet service. There are different packages for different group and segment of the market so that everyone can afford to get the full benefit of the web and the outside world.

Here represent the price of the Zoom Ultra Bundles (modem+connection):

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As we can see that Citycell has offered its modem and connection on a cheaper rate than other competitors in the market. This type of offers attracts the value conscious consumers.

 Place: There are 6 Customer care centers (CCC) of Citycell in the country. One for each

division and there are another 500 Customer care Points(CCP) are located around by 64 districts of the country. Elsewhere, Citycell Zoom Ultra modem is also available at all zoom zones and zoom points scattered all over the country. As a result of this huge availability of the product consumers also prefer Zoom modem than other services.

 Promotion: There are several promotional activities Citycell uses to promote their Zoom

Ultra modem. The promotional activities of Citycell Zoom Ultra modem are given below: Newspaper/Magazine: Newspaper covers all sort of information about Citycell’s offers, tariffs and features. Citycell uses highly graphical, colorful and illustrated ads that mainly covers the informative & reminder advertising. Television: Television is an effective media for good mass market coverage. Citycell telecasts ads that customers can use the internet everywhere around the country.The ads gained huge attention throughout the country. Radio: Within a lower cost Citycell often broadcast their massage through radio. It is a better way for persuasive advertisement. Internet: Internet performs effective promotional tools for Citycell Zoom Ultra advertising. Citycell’s own website gathers all sort of information about the product, packages, online service etc.

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Billboard: For their promotional activities they cover the urban area with attractive billboards. Personal Selling: Citycell uses personal selling as their marketing strategies. They appoint a number of salesperson to sell their product personally to the customer. They are reaching in different educational institutions (e.g. universities) several times with several offers to sell the Citycell Zoom Ultra modem to the students. All these promotional activities help build equity on consumer’s mind and this reflects when they make the purchase decision.

Data Analysis and interpret
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Based on the research we have done to some users of Citycell Zoom modem we have found different feedback and comments on the service and quality of the modem. We have asked questions to different consumer base of different levels about the modem. Some of them are briefly presented here:  Mostly students are the main consumers of citycell zoom. Apart from them different professionals also use Citycell zoom modem.
 Most of the consumers chose Zoom modem because it is cheaper than other mobile

broadband service provider. This is the main reason of the popularity of Zoom Modem.  The other fraction of consumers prefered Zoom modem because it is easy to use and unlike Wi-Max they can use it any where they want.  Some consumers have complain about the bill on the postpaid service of the modem and internet.  Consumers agreed on to improve the service of Citycell Zoom internet. Here is a pie chart that shows the percentage of Users of from different consumer base: (We surveyed on 25 Zoom Users)

Students 48% Service Holder32% Others 20%

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Based on the research on the consumer buying pattern and factors we can make some recommendations to help improve their service: 1. The first recommendation to the company is that they should improve their network quality for uninterrupted service of internet and also their mobile service. 2. Citycell can bring the latest 3G network in Bangladesh to provide greater and faster service to its customer base. 3. Add new and exciting value added services such as news, sports updates, chat service, friend finder etc. 4. As handset in CDMA system is a problem for Citycell, they can offer latest handsets to attract new customers as young generation. 5. Emphasize more on promotional activities such as campaigns, advertisements, short term incentives (cash return, bonus etc.) 6. Promote Corporate Social Responsibilities (CSR) through sponsoring more events such as cultural events, sports events, finance tree plantation and beautification projects etc.

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Con clusion
A nation’s development much depends on its telecommunication sector. The common people of the developed countries are connected with the telecommunication network information highway. People are directly depending on the telecommunication. Mobile phone is the greatest and most popular medium of communication these days. Although in Bangladesh, CDMA technology is not widely accepted digital system yet. But being the first mobile phone operator of the country, Citycell has gained a superior place in the mind of the consumers. Citycell Phone believes in service, a service that leads to good business and good development. They have provided their service by their product Citycell one, Citycell zoom, Citycell pco, Alap super. They have given better service to their s u b s c r i b e r s . B u t s t i l l m a n y a d d i t i o n a l s e r v i c e s c a n b e a d d e d u p w i t h t h e e x i s t i n g services. Citycell can give emphasis on the services for continuous improvement.

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Sou rces
1. 2. 3. 4. 5. Citycell Customer care point. Some consumers of Citycell Zoom Modem.

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