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: 65921 Semester 2: Sept 2010


MBA University of Wales

Word count: 3493 words Tutor: Deadline: Dr. Tony Nwanji 12.00pm Friday 14 January 2011



at the right time. and recording and fulfilling their request for products or services. to the right people. According to Mehrotra and Agarwal (2009) it is the art and science of getting the right offer. Telemarketing is used in . by making uses of a comprehensive system of media and methods to bring out a response.RESEARCH QUESTION RATIONALE FOR RESEARCH STUDY BACKGROUND FOR STUDY LITERATURE REVIEW RESEARCH PARADIGMS RESEARCH METHODOLOGY RESEARCH METHOD ETHICAL ISSUES TIME TABLE CONCLUSION REFERENCES 4 4 5 6 8 10 10 11 12 12 13 INTRODUCTION Telemarketing is a process that involves an interaction between an organisation or company and its customers.

In some developed countries. This has necessitated the study of the customers’ attitudes of Zenith Bank Plc in Nigeria towards telemarketing. Charity/Non-Profits and Publishing. With the rapid increase of customers joining the ‘DO NOT CALL’ list in most developed countries. Telemarketing is a more dominant method of direct marketing being used by companies to reach out to customers in which contact between customers and salespersons is established via the medium of telephone. hence people find it difficult to respond positively to telemarketing. This would enable companies to know how to effectively utilised telemarketing as a tool for marketing. Mail Order/Catalogues. There are many problems with 4 . intrusive advertisement through telephone and over exploitation of customers’ goodwill. The main objectives for the research would include: • • To analyse customers perception towards telemarketing in Nigeria To identify and classify customers on the basis of their attitude towards telemarketing • • To analyse the effect of this attitude on customers purchase intention To recommend to marketers how to best utilized telemarketing RESEARCH QUESTIONS Customers’ privacy concern. are becoming issues needed to be addressed in the way companies make use of the telemarketing. in order to understand the attitude of customers towards telemarketing in an emerging market such as Nigeria by focusing on Zenith Bank Plc and its existing customers. the research will be undertaken. the developing countries need to re-evaluate the telemarketing tool of direct marketing to ensure sustainability and also prevent the market to degenerate to the option of DO NOT CALL list. RESEARCH AIMS AND OBJECTIVES Based on the recent happenings in the most developed countries. Banking / Financial Services. Recently customers have been worried about the intrusiveness of such marketing tools in relation to their right for privacy. Insurance. including Telecommunications.a variety of industries. government have stepped in and pass into law restricting companies of making incessant calls at odd hours to their customers. Travel and Tourism. The customers in emerging market are also nursing the same perception and showing the same attitude towards telemarketing due to the fact that the mobile telecommunication in such market like Nigeria are still new.

S (FTC. The sustainability of this approach is hanged upon the phenomenon of ‘overshoot’ and the ability to avoid it (Meadows. Overshooting by marketers has lead to so many governments and regulatory bodies in developed countries to put stringent to the practise of telemarketing. Do unsolicited calls from marketer create any intension for purchase in customers? 2. 2010). and the institutional framework directed and consummating and/or facilitating exchanges is important for sustainable marketing through an effectively managed telemarketing” (Hurst. because deliberative approach revealed that consumers’ have evolved to make important decision through discussion. “The consequences on society of the behaviours of buyers. The cold telemarketing is making contact with potential consumers while warm telemarketing is making calls to existing customers. the behaviours of sellers. This emphasizes on the need to understand the behaviour of consumers’ in a society and not as individual for purpose of sustaining telemarketing as an effective tool for organisations.the current telemarketing practise in emerging market like Nigeria. friendly and result oriented telemarketing? RATIONALE FOR THE RESEARCH STUDY Direct marketing especially the outbound telemarketing has been one of the most significant developments in marketing in recent years which is used to reach out to both the existing and potential customers. Dietz (2005) defines that. Randers and Meadows. Bendremer (2003) indentified that telemarketing takes two forms which are cold and warm telemarketing. the study will base its research on the following questions: 1. using Zenith Bank Plc as a case study. To identify and deal with these issues.. consumers’ are better at deliberation rather than calculation. 2005) and the Telephone Preference Service (TPS) in the United Kingdom (Parsons. According to Prins and Verhoef (2007) telemarketing focuses mainly on directly influencing existing customers buying behaviour. Who is responsible to ensure ethical. to go beyond limits accidentally without intention” (Meadows et al. Hence . but must be a measurable activity. Fill (2009) defines it as a strategy use to create a personal and intermediary free dialogue with customers. 2004:1). 2008:113). such as the ‘DO NOT CALL’ list enacted in U. “To overshoot means to go too far. How do companies in an emerging market like Nigeria develop an effective telemarketing strategy to increase sales? 3. 2004).

As consumers become increasingly pressed for time and overburdened with choices. Zenith Bank Plc like many other companies is using telemarketing as a tool to reach out to their customers. is one of the leading and most profitable banks in Nigeria with its overall assets plus contingents of about N1. but these are always not adhered to by salespersons or marketer. thus leading to overshooting. was established in the same year. The bank which started operations in 1990. ZENITH BANK PLC Zenith Bank Plc. one of the most valuable avenues for marketers today is direct marketing.7trillions. especially telemarketing. Hence the attitude of Zenith Bank’s customers’ towards the company’s telemarketing approach will be examined. This shows that people are not yet rooted with the culture of using mobile telecommunication to do majority of their activities. allowing companies to reach customers whenever they want and wherever they want. and in 2004 became a Public Limited Company (PLC). because this department sells out the product or services of such company to the end users. many companies saw it as an opportunity generator. With just about 77millions active subscribers’ line after 9years since its inception in a country of about 150 million populations and also a record of 6. by maintaining and improving its customers database. The growth of any company depends largely on the success of its marketing department. 6 . hence was listed on the Nigeria Stock Exchange (NSE) with over 1millions shareholders (Zenith Bank report.consumers’ behaviour and perception is paramount to the survival of telemarketing. 2010). a technology-driven global financial institution. As Nigeria improves its Information Technology and celebrates GSM roll-out. convincing them to purchase a marketer’s products or services is subsequently becoming more difficult. due to the pressure from the management. BACKGROUND FOR THE STUDY The mobile telecommunication system that begins its full operation in Nigeria in 2001 is still new in the country’s system and has not yet covered the whole geographical region of the country. 2010). and also by given excellent customers services through the offering of new products and services. In order to remain as the leading bank in Nigeria. by using it to explore the market. which provides easy access and communication with consumers. therefore there is need for effective use of it in the emerging market such as Nigeria.2millions actives mobile (CDMA) and Fixed wired/wireless respectively (NCC report. for improvement in sales.5millions and 1. Though there are etiquette guiding telemarketings. Thus.

focusing much on it without the understanding of customers’ attitudes and preferences for such an approach can lead to disastrous for an organisation’. This study emphasizes that companies need to segment the customer with negative perception towards telemarketing such that they could be best manage. and needs to go somewhat further than at present in their attitudinal segmentation. Patterson and Malley.. Hurst (2008) explained that.despite the advantage of telemarketing as a technology-driven business tools. Mehrota and Agarwal (2009: 171) ‘. the negative impact is becoming larger. Though.. 2008: 111).It is necessary for organisation to manage consumers’ negative attitudes towards direct marketing on different levels. though telemarketing as a tool of direct marketing is a good development. The findings of the research study indicate that customers’ worries are . This reviewed shows that customers have different attitude towards telemarketing ranging from positive attitude to negative one. but potentially renewable resource. The factors that affect attitudes of customers towards telemarketing are highlighted as perceived advertisement intrusiveness. This study revealed that telemarketing as a tool for marketing needed to be guided and managed for the purpose of sustainability. information orientation of customers’ and the perceived usefulness and privacy concern (Mehrota and Agarwal... (2001: 17) revealed that ‘the key concern with direct marketing are privacy of the customers. Evans. psychological reactance... but marketers are using it to over exploit customers’ goodwill and loyalty and that there is need to understand goodwill as a limited. and most often been introduced to irrelevant products relatively to their needs. thus there is need to understand the attitudes of customers towards telemarketing..LITERATURE REVIEW According to Prins and Verhoef (2007) the effect and impact of direct marketing communication on the consumers’ buying behaviour in the recent time has gained awareness in the academic marketing literature. the control and relevancy of such outbound calls’. ‘The rise and rapid fall of the business-to-consumer (b-to-c) telemarketing industry in the USA provides evidence of how what over-exploitation of consumer goodwill precisely could cause’ (Hurst.’.. Venkatesan and Kumar (2004) initially reported that telemarketing has a reasonable positive effect on the purchasing frequency of customers. This study ascertained that customers feel that they receive calls from marketer at the hour and period when they needed their rest or privacy. 2009) While Mitchell (2003:219) offers the following explanation that ‘..

D’Souza and Nowak (2001:2) ‘Understanding the antecedents of privacy concerns provides a foundation for developing effective policies and practices to reduce such concerns while understanding the consequences of privacy concerns is essential to gauging just how important dealing with these concerns really are for marketers’... The research concluded that the antecedent is the major factor behind the concern for privacy and not the attitudes of customers towards direct marketing.beyond intrusion and privacy. According to McLuhan (2005) what prompted customers’ to join ‘DO NOT CALL’ list or the Telephone Preference Service (TPS) is poor targeting and calling at unreasonable time by marketers or the sales department of an organisation Roach (2009:125) found out that ‘. The Australian Direct Marketing Association (2005) suggest that there is need for associations of direct marketing to each countries to set a telemarketing guideline to help raise the industry standards and also establish best practice in order to avoid government stepping in to bar such marketing tools due to its bad practise. 8 . but rather the trust that customers’ have towards such direct marketing. due to the increasing rate of complains by the customers. The study concluded that the level of involvement of customers’ with the product being offered and their level of involvement with their mobile phone play an important role in the way mobile marketing is perceived.consumers’ adoption of mobile phone marketing is influenced by their acceptance of the mobile phone itself. 2009). Phelps. who revealed that too many offers they receive are not geared toward their interests or needs. This shows that there are negative perceptions towards telemarketing and if not adequately manage could be disruptive to sustainability marketing.. customers’ do not have enough time to adopt a decision to whether to make purchase or not. Newman and Klein (2006) offer the following explanation that most often customers makes decision over the phone when they receive marketers’ calls and most often the customers always want to revert their decision. The emphasis has also been laid for marketers to re-evaluate the timing. claiming that enough time was not given to them to know the implication of their decision during the call. This adoption is hanged on the three factors which are relative advantage. This is often seen as exploiting the customers’ limited time of making decision. Prins and Verhoef (2007:171) have it that ‘direct marketing communication shortens customers’ adoption time’...and the level of their involvement with their phone’. compatibility and complexity (Rocha. underscoring the importance of more personalized business communications... This articles emphasizes that due to the short time involved during telemarketing. frequency and their methods of direct marketing.

Gray (1999:29) offers the following explanation that despite the constraint. or ultimate” (Tony. Several studies and articles are pointing towards the same direction. ‘phone still provides offer to marketers of communicating with customers that need not to be functional’.. 1999). This study shows that inbound telemarketing is thriving. that though telemarketing that is potent technology-driven business tools. with a end product that concur with those produced by the physical and natural . 1962). POSITIVIST PARADIGM This is a research philosophy instance that work with an observable social reality. intellectual framework or frames of references. RESEARCH PARADIGMS Paradigms are models.hence sharing customer data among companies needed to be considered. It is also revealed that customers generally would prefer inbound telemarketing to outbound telemarketing. positivist and interpretivist/Phenomenological paradigms (Thietart et al. 2005:12). which is a function of media advertisement such as television ad. There are two major paradigms that represent the main epistemological streams in organisational science which are. It is defines as a “basic set of beliefs that guide action. Lewis and Thornhill (2007:112) research paradigms is define as “ a way of examining social phenomena from which particular understandings of these phenomena can be gained and explanation attempted”. with which researchers in organisational science can affiliate themselves with (Kuhn. as research has it that about 70% of customers want access to out of hours telephone response from the organisation they patronise regarding their own issues (Gray. 2001). is degenerating and its purpose it almost been defeat. as consumers’ always complain of receiving unsolicited calls from unknown and unfamiliar marketers. that deal with the first principles. enquiries or business transaction. that provides great opportunity of flexibility and lower cost of reaching customers in order to meet there needs. where customers’ call marketer for complains. Thus it is important to follow the etiquette of telemarketing and also for organisation to understand the perception of their existing customers towards such direct marketing tool. According to Saunders.

Hence the research methodology for this study will be on qualitative research. Qualitative Research Denzin and Lincoln (2005:7) state that qualitative research is an “interdisciplinary. and physical science”. This paradigm often leads to qualitative research with inductive explanation. and provides room for researcher to be emotionally attached with the research. 1997). PHENOMENOLOGICAL PARADIGM Phenomenological which could also means interpretivism is an epistemology that advocates that it is necessary for researcher to understand differences between humans in our role as social actors (Saunders et al. This is a subjective form of research. Quantitative Research Quantitative research deals with the gathering of absolute data.scientists’ (Saunders et al. The sample size is usually smaller than in quantitative and also time consuming. Hence qualitative research is inductive in nature. This paradigm leads to quantitative research. trans-disciplinary and sometimes counter-disciplinary field that crosscut the humanities. which involves researcher interpretation in the overall findings. The major ideal behind quantitative research is that it is able to separate emotion from research findings that is modelled statistically and also best suitable for testing hypothesis. the social sciences. based on both individual depth interviews and group discussions.. Positivist paradigm which is scientific in nature is concern mostly with testing of hypothesis and deals with large quantitative data. Thus the research will use 10 . RESEARCH METHODOLOGY The study tends to acknowledge individual perception on the research topic. It is a research approach that provides researcher a clear idea of that is being measured even before the start measurement. It is hypothetical and deductive in nature. 2007). such as statistical data and examining it without a biased manner.. The focus of the research is not known until during the course of the research. This paradigm concerned ideally with human behaviours from the perspective view of the researcher (Hussey and Hussey. with deductive explanation and which is scientific in nature. 2007).

phenomenological paradigms of inquiring using grounded theory methodology to build a substantive theory that will propose answers to the research question stated about the customers’ perception towards telemarketing. There are some weaknesses of the survey which are: the data . while axial coding is the process of recognising the relationship between the categories of data that emerge from the open coding. According to Whisker (2001) grounded theory is a theory that is grounded in experiences(s). The strength of these questionnaires is: It allows researcher to collect more data. and selective coding is the process of integrating the categories to form a theory. Patricia. Thus method of the study will essentially base on three elements: concepts. Grounded Theory Grounded theory is a systematic qualitative research methodology in the social sciences that emphasizes on generation of theory from data in the process of conducting research (Martin. This primary data will be semi-structured interview and survey questionnaire. There are three different major coding in grounded which are open coding. Survey Questionnaires: This is a productive tool used in obtaining constructive feed from customers either existing or the potential ones. meaning that it moves from the specific to the more general. Glaser (1978:2) states that grounded theory. (2007) open coding is the process of disaggregating the data collected into conceptual units and labelling them. Barry. 1986). the data collected during the course of this study will be analysed using the Grounded Theory Approach. it is easy for participant to fill because it is not time consuming and can also be completed via the email/internet. These make the research to follow an inductive approach. Thus. according to Tony (2005) “is a theory approach that offers a rigorous orderly guide to theory development that at each stage is closely integrated with a methodology of social research”. axial coding and selective coding. Turner. According to Saunders et al. RESEARCH METHOD The research is intended to put together prevailing perceptions towards telemarketing within the customers’ of Zenith Bank Plc. Two different primary data will be adopted in collecting data for the method that will be used for the study. categories and propositions.

The weakness is that it is time consuming and also depends so much on the ability of respondent to describe personal experience/behaviour. SECONDARY DATA The mixed method will be used to analyse the data collected. The study provides the customers’ the opportunity to express their feelings freely and also gives the bank the privilege to maximize the research findings. The strength of this interview is that it gives participants the opportunity to express their own view concerning the question that is being asked. The strength of this method is that it allows triangulation to take place and the weakness is that it is difficult to ascertain effect of each techniques and procedures used on the data collected. ETHICAL ISSUES According to Blumberg.collected are not detailed and also the tendency of participants to just thick and not digest the questions’ is high. (2007) suggest that it is important to have a clear and well defined research question and objectives in order to ensure the methods that will enable researcher to meet them. since both will be used to analyse the data collected. in order to exhaust the complete interpretation of the data. The ethical issues in this study will be how to gain access to the customers’. 12 . thus the ethical issues are minimum. Semi-structured Interview: This is an interview conducted with a fairly open framework which allows focus conversational and a two-way communication. norms or standards of behaviour that guide moral choices about our behaviour and our relationship with others’. hence providing freedom of expression and also provides the opportunity to monitor interpretation of questions by the respondent. Cooper and Schindler (2005:92) ‘ethical issues is the moral principles. Saunders et al. Mixed method is the process of collecting data using qualitative method and using both qualitative and quantitative analysis to analyse the data collected. To resolve this.

FEB RUA RY WEE K WEE K ENDI NG ON: MEET ING WITH MY SUPE RVIS OR WRIT ING CHAP TER ONE WRIT ING CHAP TER TWO MEET ING WITH MY SUPE RVIS OR WRIT ING CHAP TER THRE E DOIN G CHAP TER FOU R 1st 25th TAS KS/A CTIV ITIE S MAR CH APRI L 2nd 4th MAY 3rd 4 5t t h h 6th 7t h 1 st 8t h 9t h 10th 11 th 1 2 t h 11 th 18 th 25 th 8 15t t h h 22 nd 29th 6 1 t 3 h th .TIME TABLE The time table for the study will be drawn base on Gantt chart to cover the 12 weeks duration for the completion of the dissertation. Below is the weekly breakdown of the activities for the study.

Direct Marketing. London: 9 Anonymous(2001).MEET ING WITH MY SUPE RVIS OR WRIT ING CHAP TER FIVE INITI AL SUB MISSI ON FOR VETI NG FINA L SUB MISSI ON OF DISS ERTA TION CONCLUSION The research aims to make valuable contributions to the existing literature on customers’ perception towards direct marketing. The perception of customers’ towards telemarketing cannot be undermined. Precision Marketing. Strategies for Communicating on Customers’ Terms. The study is also intended to produce a new theory relating to effective use of telemarketing. as this perception in most other developed countries has lead to anti-marketing steps by many regulatory bodies and the government of such countries. hence the results of the research study will offer an in depth look into various factors that lead to such attitude among customers’. hence the study will bring to focal point the attitude of Nigeria customers towards telemarketing and also recommend a way forward. REFERENCES ADMA (2005). Direct 14 . in order to maximize the emerging opportunities that telecommunication offers to organization in Nigeria.

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