Customer Service as a Differentiator Croos Sectionnal Study

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    PART II

    Report on-

    Customer Service as a Differentiator

    A Cross-Sectional Study of the Mobile Market of

    Bangladesh

    Prepared for:

    Prof. G. M. Chowdhury

    Chairperson, Internship & Placement Program

    Institute of Business Administration

    University of Dhaka

    Prepared by:

    Md. Ahsanul Abid

    Roll # 44

    MBA 38th Evening

    January 11, 2007

    Institute of Business Administration

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    University of Dhaka

    Dhaka 1000

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    Letter of transmittal:

    January 11, 2007

    Prof. G. M. Chowdhury

    Chairperson, Internship & Placement ProgramInstitute of Business Administration

    University of Dhaka

    Subject: Letter of Transmittal

    Dear Sir:

    Please find attached the Internship report titled Customer Service as a Differentiator A

    Cross-Sectional Study of the Mobile Market of Bangladesh. This report is the culmination ofmy 12-weeks of internship at Grameenphone Ltd. My special gratitude to Prof. Nurur

    Rahman, Prof. GM Chowdhury and Mr. Ferdous Ahmed (my supervisor at Grameenphone),

    whose guidance helped me to complete this final chapter of MBA degree.

    For any further clarification, I will be more than glad to comply.

    With Regards & Sincerity,

    Md. Ahsanul AbidRoll # 44

    MBA 38th (Evening)

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    Acknowledgement:

    In preparing this report, support from a number of individuals were invaluable.

    Following few names, I must quote individually for special citation-

    Prof. Nurur Rahman My academic supervisor, whose guidance and care

    inspired me.

    Prof. GM Chowdhury Chairperson of Internship & Placement Program, who

    guided me about the pitfalls and key points of Internship well before the start of

    the Internship program.

    Mr. Ferdous Ahmed, Additional General Manager, CMD, Grameenphone Ltd.

    My organizational supervisor, who despite his over-demanded schedule, always

    found some time to advice & guide me in the right direction.

    A group of 20 young members of Grameenphone who helped metremendously in completing my survey within a reasonable time.

    My sincere gratitude toward all of them.

    Besides, I must express my thanks to numerous academics and publishers whose

    papers I used to prepare the secondary analysis.

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    Table of Content:

    Dhaka 1000..............................................................................................................................2

    Letter of transmittal:...................................................................................................................3

    MBA 38th (Evening) .................................................................................................................3

    Acknowledgement:.....................................................................................................................4

    Table of Content:........................................................................................................................5

    1. Background of the Study:.......................................................................................................6

    1.1 Findings of qualitative study.............................................................................................71.2 The big question:...............................................................................................................7

    1.3 Rationale of the study.......................................................................................................8

    1.3 Objectives of the Research................................................................................................8

    1.4 Hypothesis.........................................................................................................................82. Executive Summary:...............................................................................................................9

    3. Methodology:........................................................................................................................11

    3.1 Scope:..............................................................................................................................11

    3.2 Limitations:.....................................................................................................................11

    3.3 Sampling type:................................................................................................................123.4 Sample size: ...................................................................................................................12

    3.5 Field survey method: ......................................................................................................12

    4. Contribution of research: .....................................................................................................12

    5. Analysis techniques used:.....................................................................................................12

    6. Findings & Recommendations:.............................................................................................13

    6.1 Reliability:.......................................................................................................................13

    6.2 Distribution of Sample....................................................................................................14

    6.3 What is Quality Customer Service?................................................................................166.4 Relationship between Quality of Customer Service & Impression about Operator.......18

    Correlations # 1.................................................................................................................18

    Correlations # 2.................................................................................................................19Correlations # 3.................................................................................................................20

    6.5 Quality of Customer Service: Determining the Key Components..................................21

    6.5 Quality of Customer Service Determines Degree of Customer Retention ....................22

    6.7 Perceptual position of the four operators (in eyes of the customers):.............................247. Recommendations:................................................................................................................26

    7.1 Limitations:.....................................................................................................................26

    8. Conclusion:...........................................................................................................................27

    Appendix:..................................................................................................................................28

    Appendix- 1: Sample Structure ............................................................................................28Appendix-2: Copy of Questionnaire.....................................................................................28

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    1. Background of the Study:

    Differentiation, as opposed to price-focus, is a feature-based strategy to outperform ones

    competitors. This approach primarily focuses on creating a separate or unique identity of the

    company or products to the eyes of customers. Whereby, price-based competition emphasizes

    price cutting (cost cutting) and other methods of aggressive pricing, differentiation focuses on

    a quality perspective by adding new or unique features to the offerings. In Bangladesh, mobile

    operators have been unable to create any differentiated positioning in customer perception,

    leading to price-based competition, fragmentation and lower profitability. This paper strives

    to prove this hypothesis and offer new insight in mobile service differentiation.

    Differentiation strategy is an integrated set of action designed to produce or deliver goods or

    services that customers perceive as being different in ways that are important to them. It calls

    for to sell non-standardized products to customers with unique needs. (Prof. Ferhat Anwar,

    Undated)

    Differentiation can be (a) the target market , (b) the brand, (c)a character or a personality, (d)

    Positioning, (e) product benefits - More Value-Added (MVA), (f) a single, key persuasive

    sentence, and / or (g) integration across communication. The factors can be summed up in five

    ways Identity, Personify, Create a new generic, Change the name, and Reposition the

    category

    Strategies of Differentiation:

    Getting into the mind with a new idea or product or benefit is an enormous advantage. An

    attribute is a characteristic, peculiarity, or distinctive feature of a person of thing. Leadership

    is the most powerful way to differentiate a brand. The reason is that its most direct way to

    establish the credentials of a brand. And credentials are the collateral you put up to guaranteethe performance of your brand.

    Positioning Strategy: Position is that one thing, that one descriptive sentence or slogan the

    company is known for; that one specific idea that first comes to mind about the product; and

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    that one characteristic that sets the service apart from competitors. (Prof. Ferhat Anwar,

    Undated)

    Dimensions of Customer Service:

    Availability of product or service (to what extent products & services of a company

    are available)

    Lead time (difference between time of placing the order and delivery-time) variability

    System recovery (if something goes wrong, how quickly system can recover)

    Presence of shadow system [ability to cater to the specialized needs of favored

    customers]

    Availability of system information [includes, information availability, quickness,

    accuracy and completeness]

    Post sale support system [accessories, maintenance, follow-up etc.]

    (Prof. Nurur Rahman, Undated)

    1.1 Findings of qualitative study

    1.2 The big question:

    Is it possible to differentiate (a service offering) based on pre- & post- sales customer

    services?

    7

    Quality of

    Customer Service

    Availability Lead timevariability

    Systemrecovery

    time

    Presence ofshadow system

    Systeminformation

    Post salessupport

    Differentiation in

    customer Perception

    Customer retentionThe Model

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    1.3 Rationale of the study

    Over the last 2 years, Grameenphone Ltd. has invested heavily in developing a aide network

    customer service. Value-added services were introduced and specially, access to customer

    service has been made available for the wider population. In this backdrop, the

    Grameenphone management now wants to find out whether these investments have made

    inroad to the customer heart and any position of differentiation has been created in terms of

    retaining the customers.

    1.3 Objectives of the Research

    Broad Objectives of the Research: To find out whether quality in customer service retains

    customers.

    Specific Objectives of the Research:

    1. To find out whether (pre & post sale-) customer service can make an operator

    different (better or worse in customer perception) from its competitors -

    2. To identify the effect of product / service availability on customers perception

    3. To identify the effect of lead time variability on customers reaction toward an operator

    4. To identify the effect of system recovery time on customers level of satisfaction

    5. To find whether having a shadow system makes customers satisfied

    6. To identify the effect of system information availability on customers perception

    toward an operator

    7. To identify effect of post-sale support system on customer perception

    1.4 Hypothesis

    Ho: Quality of Pre- & Post-sale customer service has direct relationship with the retention

    rate of customers.

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    2. Executive Summary:

    Findings from the study:

    There was not reasonable ground to disprove the null hypothesis that quality of customer

    service directly related to the retention rate of a customer (time with an operator). In

    other words, Quality of customer service has reasonable relationship with the retention of

    customers. Besides, other key findings of the study are:

    - Perception of customer service is strongly dependent on eight independent

    parameters - Ease of use and customer friendly, Cost effectiveness of customer

    service, Easy & cheap information about products & services, Behavior of customer

    service people, Lead time variability, Availability & reach of customer service points,

    Readiness to go the extra mile, Ease of access to customer service people

    - Quality of customer service can help build positive impression about the operator in

    the perception of the customer

    - Quality of customer service can help build loyalty and attachment within the

    customer. However, this relationship does not hold true if we try to incorporate time-

    length of subscription in the equation. As the correlation # 3 shows, people who havebeen longer with a particular operator have shown less favorable attitude about the

    respective operator

    - The principal component analysis identifies the following 06 components to be

    consistent with the factor analysis (in order the importance):

    a) Ease of access to customer service people,

    b) Easy & cheap information about products & services,

    c) Cost effectiveness of customer service,

    d) Availability & reach of customer service points,

    e) Readiness to go the extra mile,

    f) Behavior of customer service people.

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    Recommendations:

    Grameenphone should continue in its path to emphasizing customer service as a key

    differentiator while positioning itself apart from other operators.

    The key components while defining customer service are- a) Ease of access to customer

    service people, b) Easy & cheap information about products & services, c) Cost

    effectiveness of customer service, d) Availability & reach of customer service points, e)

    Readiness to go the extra mile, f) Behavior of customer service people.

    Appeal of a particular service might wear off with the length of time a customer sticks

    with a particular operator. So, Grameenphone should continue to redefine the 6-factors

    customer service with new features and facilities.

    On a more general note, the operator instead of concentrating on price based-

    competition should focus on a qualitative positioning. Otherwise they might soon find

    their profit base eroding rapidly.

    Grameenphone should identify customer service as a core competence area (in addition

    to network quality and value-based services) and continue build on that.

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    3. Methodology:

    3.1 Scope:

    The primary scope is to find the answers to the specific objectives as described above

    The research will reflect the perception of mobile phone subscribers of Bangladesh

    The report will reflect the opinion of the respondents, and findings will be based on those

    sampled opinion

    The mobile subscribes living within Dhaka city have been taken as the sample frame of the

    study; however, the background of the study encompasses the whole mobile industry of

    Bangladesh.

    Only the subscribers of five operators (GP, Aktel, CityCell, BanglaLink and Tele Talk) have

    been considered for the study. Subscribers of any other fringe operators were not considered.

    3.2 Limitations:

    Sample sizes for Tele Talk and City Cell subscribers are short of the planned number

    (30); so any deductions based on these samples regarding Tele Talk and City Cell

    might not be statistically correct

    Many of the findings & concepts from the qualitative study could not be

    accommodated. Some of them (as following) were dropped from quantitative survey:-

    o Development of new features in mobile packages

    o Role of pricing in customer perception etc.

    Customer service (a comprehensive construct) was replaced by 6 parameters

    product/service availability, lead time variability, availability of shadow system,

    system recovery time, availability of system information, and availability of post sales

    support service.

    Respondents of the quantitative survey have shown a tendency to over state the time

    for which they are using the current operator

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    3.3 Sampling type:

    Quota sampling method was employed, where sample units represent the proportional

    distribution of the population. Sample elements are individual subscribers of different mobile

    operators (Grameenphone, Aktel, BanglaLink, CityCell, and Tele Talk). Sample frame is all

    the mobile phone subscribers of Bangladesh. Sample elements were selected based on

    convenience.

    3.4 Sample size:

    Sample size is 182 (calculation of the sample structure is given in the appendix # 2)

    3.5 Field survey method:

    As it is a cross sectional study, survey elements were chosen from the subscribers of five

    mobile operators. However, individual elements were picked based on convenience. Although

    the study covers the mobile phone industry of Bangladesh, the fieldwork was conducted only

    in Dhaka. The researcher acted as interviewer. Sample elements were given the questionnaire

    on the spot to fill up. The questionnaire was self-administered.

    4. Contribution of research:

    Individual: As a student of marketing, I am getting a hands-on learning in the pros & cons of

    research. Learning to apply the tools & techniques from classroom to the applied world of

    real-life business problems.

    Organizational: findings and learning from the study can be used by the mobile operators of

    Bangladesh to focus their attention to specific marketing issues like differentiation,

    competition and customer satisfaction.

    Society: Maybe the learning are minute and fraught with mistakes (of an apprentice),

    however, it will add to the total understanding of mobile service marketing in Bangladesh as

    very little have been done in areas of differentiation and per se.

    5. Analysis techniques used:

    Sections of the Findings Analysis Technique used

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    Reliability of data Cronbachs Alpha

    Distribution of sample Descriptive statistics, graphs

    Quality of customer service Regression model and ANOVA table

    Relationship between customer service &

    impression about operator

    Correlation

    Test of null hypothesis Paired sample t-test and descriptive statistics

    Key components for customer service Key component factor analysis

    6. Findings & Recommendations:

    6.1 Reliability:

    The reliability test shows Cronbachs alpha to be .649 proving the data to be reasonably

    reliable.

    Case Processing Summary

    N %

    Cases Valid 101 76.8

    Exclud

    ed(a)31 23.2

    Total 132 100.0

    A List wise deletion based on all variables in the procedure.

    Reliability Statistics

    Cronbach's

    Alpha

    Cronbach's Alpha

    Based on

    Standardized Items N of Items

    .649 .746 17

    Scale Statistics

    Mean Variance

    Std.

    Deviation

    N of

    Items

    51.3619 49.5601 7.0399 17

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    6.2 Distribution of Sample

    Bars show Last Values

    Aktel

    BanglaLink

    City Cell

    Grameenphone

    Tele Talk

    Reference Category

    0

    20

    40

    60

    Referencenumber

    Distribution of Sample According to Operator

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    Aktel

    BanglaLink

    City Cell

    Grameenphone

    Tele Talk

    Reference CategoryLess than 1 yr

    1 to 2 yr

    2 to 3 yr

    3 to 4 yr

    More than 4 yr

    Distribution of Sample as per Longivity (Time with Current Operator)

    Pies show counts

    Interpretation:As the above pie-chart shows, Grameenphone has clearly lead the

    pack in terms of retaining their customers over the years followed by Aktel. On

    the other hand, BanglaLink has majority of their subscribers for less than 1 year.

    This fact is consistent with the core hypothesis, as Grameenphone has been

    spending heavily on customer service over the years; and currently has more

    than 600 customer contact points through out Bangladesh, which provides an

    edge over its competitors.

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    Distribution of Sample Based on Operator

    Reference Category

    Tele Talk

    Grameenphone

    City Cell

    BanglaLink

    Aktel

    Percent

    60

    50

    40

    30

    20

    10

    0

    Age group of the re

    15-25 yrs

    26-35 yrs

    35+ yrs

    Interpretation: Both Aktel and BanglaLink have majority of their subscribers

    coming from the age group of 15-25 year; where as Grameenphone has

    substantial number of customers who are older than 25 years this fact can have

    important implication regarding retention & loyalty as young people are

    generally more inquisitive and less loyal; and whenever any new offers come

    along they are the first to jump ship.

    6.3 What is Quality Customer Service?

    Customer Service, to the best of understanding, is a construct, which can mean both pre- &

    post- sales services. But, when customers talk about quality of service, they usually mean

    speed, convenience, availability and other related concepts. So, for our analysis, customer

    service has been replaced by the following 8 parameters or concepts:

    a) Ease of use and customer friendly, b) Cost effectiveness of customer service, c) Easy &

    cheap information about products & services, d) Behavior of customer service people, e) Lead

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    time variability, f) Availability & reach of customer service points, g) Readiness to go the

    extra mile, h) Ease of access to customer service people

    The following regression model tries to understand the strength and direction of relationship

    between these eight parameters (independent variables) and perception about customer

    service based on survey results.

    Model Summary

    Mode

    l R

    R

    Square

    Adjusted

    R Square

    Std.

    Error of

    the

    Estimate Change Statistics

    R Square

    Change

    F

    Change df1 df2

    Sig. F

    Change

    1 .

    678(

    a)

    .460 .422 .729 .460 12.042 811

    3.000

    a Predictors: (Constant), Ease of use and customer friendly, Cost effectiveness of customer

    service, Easy & cheap information about products & services, Behavior of customer service

    people, Lead time variability, Availability & reach of customer service points, Readiness to

    go the extra mile, Ease of access to customer service people

    ANOVA(b)

    Model Sum of Squares df Mean Square F Sig.

    1 Regression 51.228 8 6.403 12.042 .000(a)

    Residual 60.092 113 .532

    Total 111.320 121

    a Predictors: (Constant), Ease of use and customer friendly, Cost effectiveness of customer

    service, Easy & cheap information about products & services, Behavior of customer service

    people, Lead time variability, Availability & reach of customer service points, Readiness to

    go the extra mile, Ease of access to customer service people

    b Dependent Variable: Overall impression about customer service of current operator

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    Interpretation:From the above regression model, the R score (0.678) and the

    level of significance imply perception of customer service is strongly

    dependent on eight independent parameters. However, there might be other

    factors (apart from these 8) to consider as the ANOVA table shows Residual

    values constitute a significant portion of the total sum of squares value.

    6.4 Relationship between Quality of Customer Service & Impression

    about Operator

    Correlations # 1

    Descriptive Statistics

    Mean

    Std.

    Deviation N

    Overall impressionabout current

    operator

    3.18 .846 128

    Overall impressionabout customer

    service of current

    operator

    3.39 .968 127

    Correlations

    Overall impression

    about current

    operator

    Overall impression about

    customer service of

    current operatorOverall impression about

    current operator

    Pearson

    Correlation1 .591(**)

    Sig. (2-tailed) . .000

    N 128 126Overall impression about

    customer service of current

    operator

    Pearson

    Correlation .591(**) 1

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    Sig. (2-tailed) .000 .

    N 126 127

    ** Correlation is significant at the 0.01 level (2-tailed).

    Interpretation: As the above correlation table shows, variable overall impression

    about current operator and overall impression about customer service of

    current operator have strong correlation (0.591) and they are both

    unidirectional. Thus, it can said based on this analysis that quality of customer

    service can help build positive impression about the operator in the perception

    of the customer.

    Interpretation: The following correlation tries to measure the degree of correlation between

    the variables feel love & pride to do business with current operator and overall impression

    about customer service of current operator. Result of this test also shows quality of customer

    service can help build loyalty and attachment within the customer (correlation score 0.548).

    However, this relationship does not hold true if we try to incorporate time-length of

    subscription in the equation. As the correlation # 3 shows, people who have been longer with

    a particular operator have shown less favorable attitude about the respective operator

    (negative correlation).

    Correlations # 2

    Descriptive Statistics

    Mean Std. Deviation N

    Feel love & pride to do business withcurrent operator 3.13 .956 128

    Overall impression about customer

    service of current operator 3.39 .968 127

    Correlations

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    Feel love & pride to

    do business with

    current operator

    Overall impressionabout customer

    service of current

    operatorFeel love & pride to do

    business with current

    operator

    Pearson Correlation

    1 .548(**)

    Sig. (2-tailed) . .000

    N 128 123

    Overall impression about

    customer service ofcurrent operator

    Pearson Correlation

    .548(**) 1

    Sig. (2-tailed) .000 .

    N 123 127

    ** Correlation is significant at the 0.01 level (2-tailed).

    Correlations # 3

    Correlations

    Feel love &

    pride to dobusiness with

    current operator

    Overall

    impressionabout current

    operator

    Time withthe current

    operator

    Feel love & pride to dobusiness with current

    operator

    PearsonCorrelation 1 .491(**) -.278(**)

    Sig. (2-tailed) . .000 .001N 128 125 128

    Overall impression about

    current operator

    Pearson

    Correlation.491(**) 1 -.033

    Sig. (2-tailed) .000 . .710

    N 125 128 128Time with the current

    operator

    Pearson

    Correlation-.278(**) -.033 1

    Sig. (2-tailed) .001 .710 .

    N128 128 132

    ** Correlation is significant at the 0.01 level (2-tailed).

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    6.5 Quality of Customer Service: Determining the Key Components

    Communalities

    Sl Initial Extraction

    01 Lead time variability 1.000 .56202 Ease of use and customer friendly

    1.000 .618

    03 Behavior of customer service people 1.000 .644

    04 Readiness to go the extra mile1.000 .648

    05 Availability & reach of customer service

    points1.000 .737

    06 Cost effectiveness of customer service1.000 .779

    07 Easy & cheap information about products &

    services1.000 .787

    08 Ease of access to customer service people 1.000 .809

    Extraction Method: Principal Component Analysis.

    Interpretation: The principal component analysis identifies the following 06 components to be

    consistent with the factor analysis (in order the importance):

    a) Ease of access to customer service people, b) Easy & cheap information about

    products & services, c) Cost effectiveness of customer service, d) Availability & reach

    of customer service points, e) Readiness to go the extra mile, f) Behavior of customer

    service people.

    Thus, we can conclude a model for determining the quality of customer service:

    Customer Service = f (Ease of access to customer service people, b) Easy & cheapinformation about products & services, c) Cost effectiveness of customer service, d)

    Availability & reach of customer service points, e) Readiness to go the extra mile, f) Behavior

    of customer service people)

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    6.5 Quality of Customer Service Determines Degree of Customer

    Retention

    Test of Hypothesis-

    Ho: Quality of Pre- & Post-sale customer service has direct relationship with the retention

    rate of customers (time with current operator).

    Decision rule: If the mean value of the variable time with current operator is not

    significantly different from the mean value of variable overall impression about the current

    operator, then there is not sufficient ground to disprove the null hypothesis.

    Paired Sample t- Test:

    T-Test

    Variables compared= longevity with current operator and Overall impression about

    customer service of current operator

    Paired Samples Statistics

    Mean NStd.Deviation

    Std. ErrorMean

    Pair 1 Time with the currentoperator

    3.09 127 1.414 .126

    Overall impressionabout customer serviceof current operator

    3.39 127 .968 .086

    Paired Samples Correlations

    N Correlation Sig.

    Pair 1 Time with the current operator &Overall impression about customerservice of current operator 127 .022 .808

    Paired Samples Test

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    Paired Differences t df Sig. (2-tailed)

    Mean

    Std.Deviation

    Std.

    ErrorMean

    95%ConfidenceInterval of

    theDifference

    Lower

    Upper

    Pair 1 Time with thecurrentoperator -Overallimpressionaboutcustomer

    service of currentoperator

    -.30 1.696 .151 -.60 .00 -1.988 126 .05

    Interpretation:The level of significance for T-test is low but not lower than the

    critical point (0.05). The Lower and upper limit of the confidence interval

    contains zero among them. So, there is not enough evidence to disprove the

    null hypothesis.

    So, quality of customer service has reasonable relationship with the retention of

    customers. However, the correlation value of the paired sample variables show a

    weak (0.22) relationship among the two variables.

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    6.7 Perceptual position of the four operators (in eyes of the

    customers):

    [Ref: Differentiation in Mobile

    Market of Bangladesh, by this same

    author]

    A significant number of the

    respondents did not answer this

    question, while asked to differentiate

    Aktel from other operators based on a

    certain factor. This can lead to the

    conclusion that Aktel has failed to

    create any clear position in the

    perception of the customers. Apart

    from that- low call charge, 10-second

    pulse and features & facilities

    offered by the operator (Aktel) has

    been cited as consistent factors with

    Aktel. (Fig-3)

    Similarly, regarding CityCell most of the

    respondents struggled to delineate a

    position for the operator. Most of

    respondent could only cite the CDMA

    technology as the major differentiating

    factor for the operator.

    (Fig-4)

    24

    notgiven

    lowerprice

    coverage&service

    lowerrate

    differentpackage

    pulsenetquality

    userfriendly

    Advertisement

    fastgrowth&

    development

    features&facilities

    Why Aktel is Different

    0

    1 0

    2 0

    3 0

    4 0

    5 0

    6 0

    Frequency

    Why Aktel is Different

    notgiven

    lowerprice

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    netquality

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    CDM

    A

    Advertisem

    ent

    features&facilities

    Why CityCell is different

    0

    0

    0

    0

    0

    0

    0

    0

    Why CityCell is different

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    However, when asked with the same

    question regarding GrameenPhone,

    most of the respondents talked about

    the nation-wide coverage and higher

    quality of network for the operator.

    (Fig- 5)

    Regarding BanglaLink, respondents

    could not identify any one or two area

    for differentiation, prompting one to

    speculate that BanglaLink although

    vibrant & dynamic had given away to

    many messages cluttering the perception

    of the customer; and forcing the

    customers from forming any clear

    perception about the company.

    Results of the above analysis is presented

    in the following table:

    Table: Perceptual position of the 4 operators (in customer mind)

    GP Aktel CityCell BanglaLink Area of Focus Service,

    Coverage & NetQuality

    Low price, 10-

    secod pulse andFeatures &

    facilities

    CDMA

    technology &lower rate

    No clear

    position

    25

    not given lower price coverage& service

    lower rate differentpackage

    net quality features &facilities

    Why GP is different

    0

    20

    40

    60

    80

    100

    Frequency

    Why GP is different

    notgiven

    lowerprice

    lowerrate

    differentpackage

    netquality

    newcom

    mer

    Advertisement

    fastgrowth&developm

    ent

    features&facilities

    novelty

    Why BLink is different

    0

    5

    1 0

    1 5

    2 0

    2 5

    3 0

    Frequency

    Why BLink is different

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    7. Recommendations:

    Grameenphone should continue in its path to emphasizing customer service as a key

    differentiator while positioning itself apart from other operators.

    The key components while defining customer service are- a) Ease of access to customer

    service people, b) Easy & cheap information about products & services, c) Cost

    effectiveness of customer service, d) Availability & reach of customer service points, e)

    Readiness to go the extra mile, f) Behavior of customer service people.

    Appeal of a particular service might wear off with the length of time a customer sticks

    with a particular operator. So, Grameenphone should continue to redefine the 6-factors

    customer service with new features and facilities.

    On a more general note, the operator instead of concentrating on price based-

    competition should focus on a qualitative positioning. Otherwise they might soon find

    their profit base eroding rapidly.

    Grameenphone should identify customer service as a core competence area (in addition

    to network quality and value-based services) and continue build on that.

    7.1 Limitations:

    Lack of availability of the respondents forced the study to be completed with 132 sample

    elements rather than the initial 182 (stipulated). However, the researcher tried to meet the 30-

    sample mark under each category of population. At the end, the sample was more or less

    representational of the population groups.

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    8. Conclusion:

    There was not sufficient ground to disprove the hypothesis that Quality of Pre- & Post-sale

    customer service has direct relationship with the retention rate of customers (time with

    current operator). In other words, customer service can give an edge to a particular operator

    over its competitors. Grameenphone already has some degree of perceptual positioning

    distinct from its competitors (in terms of customer service and network quality). However, the

    problem with any service is competitors can quickly catch up with ones position and emulate

    Grameenphones current offerings. So, the challenge is to redefine the basic concepts of

    customer service (a) Ease of access to customer service people, b) Easy & cheap information

    about products & services, c) Cost effectiveness of customer service, d) Availability & reach

    of customer service points, e) Readiness to go the extra mile, f) Behavior of customer service

    people) with innovative offers and facilities. Only, thus, Grameenphone can stay ahead of its

    competitors and create a differentiated position in terms of retaining its customers.

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    Appendix:

    Appendix- 1: Sample Structure

    Appendix-2: Copy of Questionnaire

    (In the following page)

    Mobile Users(182)

    Grameenphone(62)

    Tele Talk(30)

    62% 4%

    Aktel(30)

    BanglaLink(30)

    City Cell(30)

    1%15%18%

    P.S. - The percentage amounts are respective market shares of different operators.

    - The base sample number was 100