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Overview of Grameenphone
1.0 Introduction
GrameenPhone Limited is the largest telecom operator in Bangladesh. In fact, most of the
development of the telecom market of this country can be attributed to this company. At the current
moment, the company has 62.8% of the mobile market share.
Grameenphone (GP) has been established to provide high-quality GSM cellular service at affordable
prices. The company has a dual purpose:
To receive an economic return on its investment
To contribute to the economic development of Bangladesh
Grameenphone was offered a cellular license in Bangladesh by the Ministry of Posts and
Telecommunications on November 28, 1996. The Company launched its service on March 26, 1997, the
Independence Day of Bangladesh.
In 1996, Bangladesh was preparing to auction off private cell phone licenses to four companies. So at
the behest of Dr. Muhammad Yunus (Grameen Bank’s founder) but completely independent of
Grameen Bank, a not-for-profit private company called Grameen Telecom was created. Grameen
Telecom, in turn, created a for-profit company called Grameenphone, found a foreign partner, and put
in a bid; Grameenphone received one of the four licenses. Grameenphone total capitalization was
US$120,000,000, including around US$50 million from IFC/CDC, and the Asian Development Bank (ADB).
It also received US$60 million in equity from the four Grameenphone private partners. These were the
Norwegian elenor with a 51% share, Marubeni of Japan with a 9.5% share, and the American
Gonophone at 4.5%. Grameenphone’s fourth partner is Grameen Telecom (with 35%), and Grameen
Telecom borrowed US$10.6 million from the Open Society Institute to set up Village Phone.
Grameenphone launched service in urban Dhaka on March 26, 1997. It makes its profits by serving
wealthier urban customers. But from the point of view of the Grameen family and its strong anti-
poverty mission, the for-profit, urban-only Grameenphone exists for only one reason: to fund, with its
profits, the extension of cell phones into rural Bangladesh in order to provide entrepreneurial
opportunity to Grameen Bank members through Village Phone. As Dr. Yunus puts it, "Grameenphone is
merely what we need to do Grameen Telecom’s Village Phone."
Grameenphone has 2 shareholders - Telenor & Grameen Telecom.
Figure 1: Shareholding structure of GrameenPhone
The shareholders of Grameenphone contribute their unique, in-depth experience in both
telecommunications and development.
The international shareholder brings technological and business management expertise while the
local shareholder provides a presence throughout Bangladesh and a deep understanding of its economy.
Both are dedicated to Bangladesh and its struggle for economic progress and have a deep commitment
to Grameenphone and its mission to provide affordable telephony to the entire population of
Bangladesh.
Bangladesh is an attractive market for mobile services due to its large and highly concentrated
population, very low penetration of telecommunications services, and high growth in mobile
subscribers. With approximately 140 million inhabitants, it ranks as the eighth most populous country in
the world and is among the most densely populated, of which only 5 million (approx.) people have
cellular phones.
Along with the spectacular growth, since its inception on March 26, 1997, GrameenPhone has the
widest coverage in Bangladesh. The company is planning to increase the network coverage to 94% of
the population from the current 80% within this year.
The internationally acclaimed Village Phone Program of GrameenPhone is another initiative, which
provides telephone services in remote rural areas where no such facilities existed before. There are now
more than 110,000 Village Phones in operation in some 44,000 villages around the country.
1.1 Vision & Values of GrameenPhone
1.1.1 Vision of GrameenPhone:
We’re here to help
This means that we help our customers get the best out of communications services in their daily
lives by making it easy to buy and use our services, delivering on our promises, being respectful of
differences and inspiring people both inside and outside the company to reach higher goals.
1.1.2 Values of GrameenPhone
GP’s Values help fulfill its Vision. These highly maintained values are described below:
Make it easy
This means – “We are all about making things easy. Easy to understand, easy to use and easy to get
hold of products and services. Easy and helpful working relationships. We offer real value. We are
about making things more simple and mutually-beneficial for everyone with whom we come in contact
with on a day-to-day basis.”
Keep promises
This means – “We are about delivery, not over-promising. For us, actions speak louder than words.
We try to clearly understand our audience’s needs and respond accordingly. We are clear, to-the-point
and focused in our behaviours and actions. We deliver upon, and exceed expectations.”
Be inspiring
This means – “We are innovative and quality-driven in what we do and how we do things. We are
closely involved in our community and with our employees. We lead by example; we value our
customer’s relationships and feedback with us and are constantly open to new ideas. We drive the
mobile communications market in Bangladesh.”
Be respectful
This means – “We are helpful, open and friendly. We are respectful and professional with all our
interactions, internally, externally. We must always keep in mind that our success is based on having
loyal, satisfied and supportive customers, employees and partners. We are confident, without being
arrogant.”
1.2 The Strategy of GrameenPhone
GrameenPhone’s basic strategy is coverage of both urban and rural areas. In contrast to the “island”
strategy followed by some companies, which involves connecting isolated islands of urban coverage
through transmission links, GrameenPhone builds continuous coverage, cell after cell. While the
intensity of coverage may vary from area to area depending on market conditions, the basic strategy of
cell-to-cell coverage is applied throughout GrameenPhone’s network.
The People
The people who are making it happen – the employees – are young, dedicated and energetic. All of
them are well educated at home or abroad, with both sexes (genders) and minority groups in
Bangladesh being well represented. They know in their hearts that GrameenPhone is more than just
about phones. This sense of purpose gives them the dedication and the drive, producing – in about
three years – the biggest coverage and subscriber-base in the country. GrameenPhone knows that the
talents and energy of its employees are critical to its operation and treats them accordingly.
The Technology
GrameenPhone’s Global System for Mobile or GSM technology is the most widely accepted digital
system in the world, currently used by over 300 million people in 150 countries. GSM brings the most
advanced developments in cellular technology at a reasonable cost by spurring severe competition
among manufacturers and driving down the cost of equipment.
The Service
GrameenPhone believes in service, a service that leads to good business and good development.
Telephony helps people work together, raising their productivity. This gain in productivity is
development, which in turn enables them to afford a telephone service, generating a good business.
Thus development and business go together.
The Result
By bringing electronic connectivity to rural Bangladesh, GrameenPhone is delivering the digital
revolution to the doorsteps of the poor and unconnected. By being able to connect to urban areas or
even to foreign countries, a whole new world of opportunity is opening up for the villagers in
Bangladesh. Grameen Bank borrowers who provide the services are uplifting themselves economically
through a new means of income generation while at the same time providing valuable phone service to
their fellow villagers. According to the company the telephone is a weapon against poverty.
1.3 Overview of Telecommunication Industry in Bangladesh
The telecom industry in Bangladesh is composed of a few players. The main reason for such a small
numbers is the regularization of the industry by the government. For years, the Bangladesh Telegraph
and Telephone Board (BTTB) had been the sole player in the market. Bangladesh Telecom Limited (BTL)
was the first entrant in the market back in 1989 when it was awarded a license to operate cellular,
paging and other wireless communication networks in the country. Since then, it has been renamed to
Pacific Bangladesh Telecom Limited (PBTL) and given the brand name CityCell Digital to its cellular
services. Grameenphone Ltd., AKTEL and Banglalink have entered the industry with various changes in
between. BTRC has formed Teletalk Bangladesh Ltd. on behalf of the government with an aim to bring
price levels down and make cellular technology available to the mass public. The industry is also set to
accept several more players, with licenses to operate PSTN or fixed phone lines being distributed to
operators – ending the long fixed line monopoly enjoyed by BTTB.
While the market for mobile phones, specifically, has been growing steadily since its introduction
back in 1993, in the past few months the market has more than doubled, growing from 1.5 million
subscribers in 2003 to over 20 million at present.
On the other hand, BTTB, the oldest telephone operator in the market is in the late maturity stage.
Their demands have leveled out and it is not increasing even though they cover the rural areas. The
growth of the mobile industry is the main reason for the demise of BTTB.
1.4 Major players in the Market
There are currently six telecom operators in the market. They are –
1. GrameenPhone Limited
2. AKTel
3. Banglalink GSM
4. CityCell Digital
5. Teletalk Bangladesh Limited
6. Warid Telecom International Limited
AKTel
TM International is a joint venture between Telekom Malaysia Sdn. Bhd of Malayasia and A. K. Khan
and Company Ltd. of Bangladesh with A. K. Khan and Company holding 30% of the share. AKTel came
into operation on November 15, 1997. At the current moment, it has over 3.4 million subscribers.
Banglalink GSM
Banglalink entered the market in September 2004 with a large hype. Unlike other operators, it
entered the market with an already established network by acquiring Sheba Telecom – the worst
performing telecom operator then. Immediately recognizing the negative image of the previous
company, the Orascom owned subsidiary re-branded itself as Banglalink. The company immediately
started making heavy investments in expanding and improving the network. Its heavy spending has
created a strong brand presence in the market as well. Very recently it has crossed over 2.8 million
subscribers.
City Cell Digital
The oldest mobile operator in the country seems to be the most in trouble. It is the only operator
with CDMA connection. Despite being the first company in the market, it had failed to reap any of the
benefits of being the first entrant. With its initial exorbitant pricing, inability to use cheaply available
sets from the market and a poor quality network created a really poor image for the company. Although
it has recently started offering the lowest prices in the market, it failed completely to gain market share
and is constantly falling behind.
Teletalk Bangladesh Limited
Teletalk Bangladesh Limited (TBL) is formed as Public limited company under the Companies Act 1994
on 26th December 2004 of the country. Therefore it is a Govt. owned company. Teletalk is the
operational entity of BTTB Mobile Project. Teletalk launched its Mobile Telecom service on commercial
basis on 31st March 2005.
Although a new entrant, Teletalk is staffed by experienced Telecom Engineers Committed to
accessibility, quality, coverage and price Teletalk launched it's much anticipated Mobile Telecom service
on commercial basis on 31st March 2005.
Warid Telecom International Limited
Owned by the Dhabi group from UK, it is the latest entrant in Bangladesh. However, Warid has very
recently started its operation and is yet to create any significant impact on the market.
Competitive Scenario
In the competitive scenario only five major players’ statistics are considered. Market information of
Warid Telecom is not yet available, since the company is a new competitor in the market.
1.5 Services Offered By GrameenPhone
1.5.1 Company Service
Grameenphone believes in service, a service that leads to good business and good development.
Telephony helps people work together, raising their productivity. This gain in productivity is
development, which in turn enables them to afford a telephone service, generating a good business.
Thus development and business go together.
1.5.2 Service for the Rural Poor
Establishing a nationwide network gives fair access to all geographical areas. From a business point
of view, this strategy serves both the long distances as well as the rural markets. This emphasis on rural
coverage brings a much-needed infrastructure in the underdeveloped rural areas. In collaboration with
Grameen Bank, which provides micro-credit only to the rural poor, GrameenPhone utilizes the bank
borrowers to retail telecom services in the rural areas. Leveraging on Grameen Bank borrowers reduces
the distribution costs of Grameen Phone's rural services, contributing to the profitability of this
segment.
By bringing electronic connectivity to rural Bangladesh, Grameenphone is bringing the digital
revolution to the doorsteps of the rural poor and unconnected.
1.5.3 Village Phone Program
The Village Phone program is Grameen Phone's unique method of bringing connectivity to the rural
areas of Bangladesh. This program enables Grameen Bank's borrowers to retail telephone service in
their respective villages, and has the potential to penetrate the rural areas rapidly and effectively.
A typical Grameen Bank borrower takes a loan of Tk 6000 without collateral from the Bank to
purchase, say, a cow. The cow would then produce milk that the borrower could sell to her neighbours
enabling her to make a living and pay off the loan. The process allows the poorest of the poor to stand
up on their feet. In the case of Village Phone, a telephone also acts as an income generating mechanism
for a borrower; a telephone serves as another "cow." A woman borrows about Tk 20,000 from the Bank
and purchases a handset and sell telephone services to the villagers, making a living and thus paying off
her loan. It creates a self-employment opportunity in each village and provides access to telephones to
all.
Grameen Telecom, Grameen Bank's arm for administering the Village Phone operators, typically
selects women by considering past borrowing records with the Bank. There are 2144 Village Phones in
operation today and soon thousands of Village Phones around the country are expected across rural
Bangladesh.
1.6 Products Of GrameenPhone
Grameen phone offer their products under 3 different brand names –
Grameenphone
djuice
Business Solutions
The products offered are –
xplore Package 1- Post paid with PSTN connectivity
xplore Package 2 -Post-Paid with PSTN connectivity with monthly package fee
SMILE M2M- Prepaid with mobile to mobile connectivity.
SMILE PSTN -Prepaid with PSTN connectivity
Djuice - Prepaid with mobile to mobile targeted for youth with life style benefits
Business Solutions Prepaid - Prepaid with PSTN connectivity
Business Solutions Postpaid - Postpaid with PSTN connectivity targeted for Business Segment
GP Public Phone
o Post-Paid with PSTN connectivity
o targeted for PCO segment
Village Phone
o Postpaid with PSTN connectivity
o subsidized tariff
1.7 CSR Activities of GrameenPhone
The most significant CSR activity of GP is the Grameenphone Community Information Centre (GPCIC)
GPCIC is a place where people can access information & communicate with family/friends
living home/abroad through internet.
It uses the simplest technology. The internet connection is provided by an edge modem and
an edge enabled SIM.
CICs are designed to be run independently as small businesses by local entrepreneurs. GP
provides training, 3 SIM cards and marketing materials to these entrepreneurs free of cost.
Currently 557 CICs are running in 434 Upazillas in 6 divisions.
GP is rolling out Community Information Centers across rural Bangladesh giving people in
remote areas the chance to use internet based services e.g. E-mail, browsing, voice chatting,
video conferencing and so on.
Among other CSR activities there are –
Computers to schools and institutions
Long term funding of orphanage
Road beautification projects
Raising funds for tsunami victims
Earthquake Preparedness program
A number of socio-cultural activities
It has contributed hugely to the re development of the rural areas, after the entire country was
attacked by the storm “CIDR” in November this year.
2.0 Problem Statement
Competition has now emerged in a large scale in the cell phone industry of Bangladesh. As a result,
the subscribers now have various alternatives to choose according to their convenience. Therefore, to
maintain the leading position in the market the company has to identify the factors related to
competitiveness of product and service. The relational study extends and investigates if there is any
relationship between the consumer perception and competitiveness of product and services in the
context of GrameenPhone Ltd.
2.1 Purpose of the study
The aim of this research paper is to examine whether there is any relation between consumer
perception and competitiveness of product and services in the context of GrameenPhone Ltd.
2.2 Significance of the study
This research would help GrameenPhone to maintain its competitiveness in the market, by giving
importance to the consumer perception of it product and services. The present market scenario tells us
about the story of the business rivalry between the telecom service providers in Bangladesh. By
showing more importance to its consumers perception would help the company to take the edge over
its competitors.
2.3 Research Timeline
Date Activities
-------------------------------------------------------------------------------------------------------------------------------
22nd August, 2007 – 30th August, 2007 Problem Searching
1st September, 2007- 20th September, 2007 Proposal Writing
25th September, 2007 –25th October, 2007 Data Collection, Literature Review
27th October, 2007 –15th November, 2007 Research Methodology, Data Analysis
16th November, 2007 – 28th November, 2007 Completing & Submission of report
3.0 Review of the related literature
The 2 important constructs has been highlighted in this paper, competitiveness and consumer
perception, of product and services. These 2 refers to the co relational analysis between them and how
they help a company perform and take the edge over other competitors. The following table shows the
market size of the telecom service subscriber and the penetration rate.
Factors In numbers Penetration
Total Telecom subscriber (GSM +
CDMA + Fixed)
21.43 million 14.31%
Total Fixed Line subscriber 1.23 million 0.83%
CDMA subscriber 1.03 million 0.69%
GSM subscriber 19.16 million 13.48%
Table 1: Market size & Penetration rate
3.1 Consumer Perception
Consumers’ perception of quality has received considerable interest in relation to the investigation of
consumer buying choice (e.g. Babin and Darden, 1996). Perceived quality has been shown to affect, e.g.
perceived value (Chang and Wildt, 1994), satisfaction, and loyalty (Hansen, 2001). It is therefore highly
relevant for consumer and service providers, among others, to gain insight into the consumer quality
perception process in order to reach the desired position in the market. Due to the potential complexity
of the perceptual process several problems may, however, arise in connection hereto. For example, the
way consumers perceive the quality of a product before a purchase is often different from the way
quality is perceived after consumption (Jover et al., 2004). The perception of quality in the usage
situation may therefore be important for the consumer’s future associations between quality stimuli
and quality benefits, and consequently, for the a priori beliefs of the consumer in the next purchasing
situation (Kopalle and Lehmann, 1995). This suggests that an understanding of the perception process
in relation to product quality should be sought on the basis of both the purchasing and the usage
situation. As another example, the quality perception process may be moderated by a number of both
personal (e.g. involvement, past experiences and the like) and situational variables (e.g. physical
surroundings, buying purpose, and the like), which also must be taken into account when seeking to
understand consumers’ perception of product and service quality. It is probably impossible to define
any unambiguous interpretation of quality, which can be applied to all consumers in relation to all
products and service in all situations. The perception of the quality of product and services is a result of
an interaction between the consumer’s conceptual perception and the consumer’s subjective
assessment of a product’s quality in a given situation. A study of consumer perception must therefore
aim at mapping various aspects of the applicable products, situations and people which, taken as a
whole, lead to variations in consumer perception. On the basis of such considerations the first purpose
of this paper is to develop a framework, which may serve as a frame of reference for the study of a
consumers’ perception process.
3.2 Competitiveness
Competitiveness means different things to different organizations. Some organizations view
competitiveness as the ability to persuade customers to choose their offerings over alternatives while
others view competitiveness as the ability to improve continuously process capabilities. In other words,
core competences as well as capabilities that drive such competences are considered to form the
essence of competitiveness. However, these factors are interrelated and difficult to quantify, thereby
reducing the potential of their application in the process of strategy development. There is a need for a
holistic definition of competitiveness that makes it possible to determine the competitive position of an
organization in a measurable form. Such a measurement should allow a comparison of the competitive
position of an organization against that of its competitors.
Competitiveness is relative and not absolute. It depends on shareholder and customer values,
financial strength which determines the ability to act and react within the competitive environment and
the potential of people and technology in implementing the necessary strategic changes.
Competitiveness can only be sustained if an appropriate balance is maintained between these factors,
which can be of a conflicting nature.
Competitiveness may be examined at any of the following levels of aggregation / disaggregation:
Individual transaction,
Individual product/service,
Product line,
Company,
Industry and
Economy.
Competitiveness will be examined at the company level with Sanchez-Heene model of the company
as an open system (Sanchez and Heene, 1996) having been selected by the author to help build the
framework of the proposed method.
A company that wishes to always be able to choose optimal business options needs to be able to
ensure a superior intelligence, access to all current business information available in public domain as
well as analyze all this information faster and better than most of its competitors. The challenge
consists not merely in obtaining access to all information available in various languages but perhaps
even more, in verifying and interpreting it properly and ensuring that the right decisions are made
within the time frame allowed. This global task can prove a major challenge and will always require a
great deal of ongoing attention and substantial resources. Employing expatriates has often been found
quite helpful in building this kind of competence (Enderwick and Akoorie, 1994).
3.3 Relationship between Consumer perception and Competitiveness
When a company desires to prefer optimal business performance, they must guarantee a greater
intelligence, access to all past and current business information available and to evaluate all this
information faster and better than most of its competitors. A necessary glance at the level of consumer
perception of their products and service should come to the top of that list. This task can prove a major
challenge and will always require a great deal of attention, because their competitiveness could depend
on it. Thus, it is extremely important for consumer and service providers, to expand their knowledge
and control into the consumer quality perception process to achieve the most wanted position in the
competitive market.
To achieve the desired level of competitiveness over the competitors a great deal of homework of
consumer perception should be done and they must target at taking a look into different aspect of the
products they offer to the people, and their perception.
4.0 Operational Definition
From the literature review the operational definitions of measured variables are tabulated below:
Measured Variables Measured Models
Competitiveness Will be operated defined by Sanchez and Heene,
1996
Consumer Perception Will be operated defined by Babin and Darden,
1996
Table 2: Operational Definition
4.1 Research Question
This study proposes to investigate the following question:
Is there any significant relationship between Competitiveness and Consumer Perception of
Product and Services in the context of Grameenphone Ltd.?
4.2 Research Hypothesis
The hypothesis which was derived from research question is as follow:
There is a significant relationship between Competitiveness and Consumer Perception of
Product and Services in the context of Grameenphone Ltd.
4.3 Conceptual Framework
Consumer Perception of Product and Service
Competitiveness of Product and Service
Figure 2: Conceptual Framework
5.0 Research Methodology
5.1. Research design
The relationship between the independent variable (consumer perception) and the dependent
variable (competitiveness) has been portrayed by the conceptual framework (Figure. 2). The model
specifically supports the research question and hypothesis.
According to William, and Anuchit (2002), the study of the relationship between two or more
variables is referred to as a co relational study. In this study, a co relational research design was
selected in order to find out the appropriate answers of the research question which is, in fact, the
hypotheses that the researcher wanted to prove. The variable relationship shown in the model (Figure.
2) also suggested the co relational design. To gather the measurable data on the research question, the
researchers took the help of questionnaire technique and took the responses from the respondents.
The underlying principle behind using questionnaire to collect data is:
1) It usually takes less time to fill up a questionnaire.
2) The data obtained from the questionnaire is easy to analyze.
In the long run, questionnaire seemed to be the most appropriate method to collect data for this
study.
5.2 Research instrument
Like many other researches, questionnaire had been adapted from previous empirical studies. The
Psychometric Properties of the Scale items were assessed using Cronbach’s Coefficient Alpha, which was
reported to be the preferred method (William, and Anuchit, 2002). In general, the acceptable range of
alpha value is greater than 0.50. The survey questionnaire consisted of 2 sections including 10 questions
related to competitiveness and consumer perception of product and services of GrameenPhone Ltd.
The 1st section verified the perceptions of the consumers towards the products and services and the 2nd
section was on the competitiveness of product and services of the company.
5.3 Research sampling
For the current study, the researcher used the post-paid subscribers of GrameenPhone Ltd, as the
sample for the study. The package which falls under these post paid categories of the company are
“xplore” 1 and 2, BS Postpaid, and “GPPP” of GrameenPhone. The population of the sampling was the
post-paid subscribers of GrameenPhone Ltd. of Dhaka City. The pre-paid subscribers could be taken into
the sample study, but because of the time limitation it was not possible.
The researcher used non-probability convenient sampling technique to collect the sample for this
study. From the users of Grameenphone, about 100 postpaid subscribers were conveniently selected
and thus the sample size was 100. Data was collected using the “personal-contact” approach, i.e. the
respondents have been approached personally and given a detailed explanation about the survey.
Otherwise, if the questionnaire was mailed to the subscribers, the response rate could have been less
than expected. The interview technique was also not considered since the respondents could have felt
hesitated to answer the questions face to face.
5.4 Pilot Test of Questionnaires
According to Cooper and Schindler (2003), a pilot test was conducted before the final survey to detect
weakness in design and instrument and to provide proxy data for selection of probability samples. The
researcher conducted a pretest to evaluate all aspects of the questionnaire, including clarity, bias,
question content, wording, sequence, form, layout, question layout, difficulty of the question and
relevance to research variable. Moreover, through pre-testing, the researcher also could determine the
reliability and validity of the questionnaires.
According to cooper and Schindler (2001), a group size of pilot testing may vary from 25-100
respondents. Therefore, the researcher selected 30 post-paid subscribers of the company to conduct
the pilot survey. The researcher had to use only 30 respondents in the pilot survey because of the time
limitations.
5.5 Research data collection
Primary data was collected through questionnaire from post-paid subscribers of Grameenphone Ltd.
The packages which fall under these categories were “xplore” 1 and 2, BS Postpaid, and “GPPP”.
5.6 Data analysis
Pearson’s Correlation analysis had been used to find out the relationship between the independent
and dependent variables. Correlation analysis is the statistical tool that can be used to describe the
degree to which one variable is linearly related to another (William, and Anuchit, 2002).
After collecting the data, Pearson’s co relational matrix for the variables was prepared and the
researcher looked for significant correlations. The researcher used correlations, and regressions to test
the strength of associations between the studied variables.
In the current situation, the study is a relational study that intended to analyze the relationship
between consumer perception and competitiveness of product & services of the company. As a result,
after collecting the data the researcher used mean score for each of the six dimensions of
competitiveness to make the relationship with consumer perception. In this study, the researcher also
utilized factor analysis to analyze the data for the proposed study. The researcher intended to check if
the scale items included in the questionnaire constituted a single dimension in the specific context of
the cell phone company and then make a relationship between competitiveness and consumer
perception. The Statistical Package for Social Science (SPSS) version.13 software was employed to
analyze the data collected from the actual survey.
6.0 Analysis of the data from questionnaire
6.1 Reliability Coefficient and Descriptive Statistics
The reliability coefficients, means, and standard deviations of all the constructs of the data’s obtained
from the questionnaires are displayed below in Table 3. By using the reliability procedure in SPSS the
coefficient alphas for the different constructs were computed. Nunnally (1978) suggested that for early
stages of any research the reliability of .50-.60 is sufficient. The reliabilities of all the constructs in this
study found to be above the standard set by Nunnally (1978).
Scales Number of items Alpha M SD
Consumer Perception 5 0.727 1.94 0.510
Competitiveness 5 0.714 2.03 0.562
Note: n = 10
Table 3: Reliability Coefficient and Descriptive Statistics of Consumer perception and Competitiveness of Product and Services. Mean scores have been computed by equally weighting the mean scores of all the items. On a five-
point scale, the mean score for consumer perception is 1.94 (SD = 0.510). And the mean score for
competitiveness is 2.03 (SD = 0.562). The mean scores of measured variables are ranging 1.94- 2.03;
however, between the two variables the mean score of competitiveness is higher. This is an indication
of the consumers’ competitiveness of product and services in the context of GrameenPhone Ltd. are
very high.
6.2 Correlation analysis
A correlation analysis was conducted on all variables to explore the relationship between variables
particularly relationships among the independent variable (consumer perception) with dependent
variable (competitiveness). The bivariate correlation procedure was subject to a two tailed of statistical
significance at one level of highly significant (p<.01).
Consumer Perception Competitiveness
Consumer Perception - 0.604**
Competitiveness -
Note: **p<.01.
Table 4: Correlation Matrix for Competitiveness and Consumer Perception of Product and Services The result of correlation analysis for all the variables is shown in Table 4. It examines the correlations
between competitiveness and consumer perception of product and services in the context of
GrameenPhone Ltd.
The variable, consumer perception was found highly significant and positively correlated with the
dependent variable competitiveness of product and services (r = 0.604, p< .01).
6.3 Regression Analysis
Stepwise regression
Stepwise regression analysis was performed to identify the relationship between competitiveness and
consumer perception of product and services in the context of GrameenPhone Ltd.
Variable B SE B Beta R2
Step 1
Consumer Perception 0.665 0.089 0.604*** 0.365
Note: *p<.05, **p<.01, ***p<.001.
Table 5: Stepwise regression on Competitiveness and Consumer Perception of Product and Services
The above Table 5 depicts that in GrameenPhone Ltd, consumer perception (p<.001) was found to be
statistically significantly related with competitiveness of product and services. Significantly related
predictor variable explained 36% of the variance in competitiveness of product and services of
GrameenPhone Ltd.
6.4 Assessment of the research hypothesis
Hypothesis:
There is a significant relationship between competitiveness and consumer perception of product and
services in the context of Grameenphone Ltd.
The result of correlation analysis depicts that the consumer perception was positively and
significantly correlated with competitiveness of product and services in the context of Grameenphone
Ltd. (r = 0.604, p< .01).
Moreover, the result of stepwise regression also suggests that in Grameenphone Ltd. consumer
perception (p<.001), was found to be statistically significantly related with competitiveness of product
and services. Significantly and positively related predictor variable, consumer perception is explained
36% of the competitiveness of product and services. Hence, the result of stepwise regression provided
support for the hypothesis which the researcher drew primarily. .
7.0 Limitations of the Study
It was not possible to collect the necessary data in a large scale due to the cost and time constraint.
Because of the short time scale, the researcher had to opt for non-probability convenience sampling. As
a result, the precision of the sampling was not up to the desired level. Moreover, the researcher had
limited access to the related literature review due to lack of journals available on the measured
variables. As a result, the access to the resource was limited.
7.1 Recommendation
From the above discussions, consumer perception does prove to have a significant relationship with
competitiveness. Therefore, Grameenphone should concentrate to create a positive consumer
perception to have a better competitiveness in the market.
A superior consumer perception is a key factor to have the edge in competitiveness among several
other competitors in the market. If the organization values the importance of this factor then it can
achieve a desired position in the market related to competitiveness.
8.0 Conclusion
The researcher, therefore, proves the relationship between competitiveness (dependent variable)
and consumer perception (independent variable). In the long run, we can say that the above
relationship would provide noteworthy insight to enhance the competitiveness of Grameenphone Ltd in
the telecom market of Bangladesh.
References
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Appendices 1
The questionnaire for the survey is shown below,
Dear Sir/Madam,Your valuable opinion is needed for a research project that is going to be done in the context of the GrameenPhone Ltd. It will be an immense help if you take the time to fill the questionnaire. This study will be used to study a relationship between the Consumer perception and Competitiveness. I guarantee that your responses will be treated as strictly confidential. You are under no obligation to answer and you are free to terminate the interview at any time.1 = Excellent; 2 = Good; 3 = Moderate; 4 = Unsatisfactory; 5 = Poor
Serial No. Items Remarks
01 Your perception about the network service you get 1 2 3 4 5
02 Your remark about the provided value added service. 1 2 3 4 5
03 How would you comment on the electronic billing system of Grameenphone?
1 2 3 4 5
04 How would you rate the service and solution from helpline?
1 2 3 4 5
05
What is your perception on the product of Grameenphone about being economical compared to other operator’s product?
1 2 3 4 5
1 = Excellent; 2 = Good; 3 = Moderate; 4 = Unsatisfactory; 5 = Poor
“Thank You Very Much For Your Cooperation”
Appendices 2
Reliability of Consumer Perception
****** Method 1 (space saver) will be used for this analysis ******
R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A)
Reliability Coefficients
Section 1
N of Cases = 10.0 N of Items = 5 Alpha = .727
Reliability of Competitiveness
****** Method 1 (space saver) will be used for this analysis ******
R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A)
Reliability Coefficients
N of Cases = 10.0 N of Items = 5 Alpha = .714
Descriptive
N Minimu
m
Maximu
m
Mean Std.
Deviation
PER 100 2 3 1.94 .510
COM 100 2 3 2.03 .562
Valid N
(listwise)
100
Figure 3: Descriptive Statistics
Correlation
PER COM
PER Pearson
Correlation
1 .604(**)
Sig. (2-
tailed)
. .000
N 100 100
COM Pearson
Correlation
.604(**) 1
Sig. (2- .000 .
tailed)
N 100 100
** Correlation is significant at the 0.01 level (2-tailed).
Figure 4: Correlations
Regression Stepwise
Variables Entered/Removed(a)
Mode
l
Variables
Entered
Variables
Removed
Method
1 PER . Stepwise
(Criteria:
Probability-
of-F-to-enter
<= .050,
Probability-
of-F-to-
remove
>= .100).
a Dependent Variable: COM
Model Summary
Mode
l
R R Square Adjusted
R Square
Std. Error of
the
Estimate
1 .604(a) .365 .358 .450
a Predictors: (Constant), PER
ANOVA(b)
Model Sum of
Squares
df Mean
Square
F Sig.
1 Regressi
on
11.401 1 11.401 56.265 .000(a)
Residual 19.857 98 .203
Total 31.258 99
a Predictors: (Constant), PER
b Dependent Variable: COM
Coefficients(a)
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
B Std. Error Beta
1 (Consta
nt)
.739 .178 4.147 .000
PER .665 .089 .604 7.501 .000
a Dependent Variable: COM
Regression Entered Method
Variables Entered/Removed(b)
Mode
l
Variables
Entered
Variables
Removed
Method
1 PER(a) . Enter
a All requested variables entered.
b Dependent Variable: COM
Model Summary
Mode
l
R R Square Adjusted
R Square
Std. Error of
the
Estimate
1 .604(a) .365 .358 .450
a Predictors: (Constant), PER
ANOVA(b)
Model Sum of
Squares
df Mean
Square
F Sig.
1 Regressi
on
11.401 1 11.401 56.265 .000(a)
Residual 19.857 98 .203
Total 31.258 99
a Predictors: (Constant), PER
b Dependent Variable: COM
Coefficients(a)
Model Unstandardized
Coefficients
Standardized
Coefficients
Sig.
B Std. Error Beta
1 (Consta
nt)
.739 .178 4.147 .000
PER .665 .089 .604 7.501 .000
a Dependent Variable: COM