Group # 04

PROJECT REPORT ON: PROCESSES A ZONG CUSTOMER FOLLOWS WHEN HE/SHE

Group Members: Rameez Hassan Rana (014) Muhammad Bilal Amna Kiran Sara Khan (019) (025) (101)

EXECUTIVE SUMMARY In 2005, the usage of Cellular Mobile Networks increased like tsunami, and from 20082011 it increased by 5% and now the usage percentage is constant i.e., 60.4% of total population. According to the survey of PTA, among total users of mobile networks, 97% users are using prepaid package. So we can ignore the percentage of postpaid customers. After giving the overview of PTA and prepaid customers, now come to the agenda of this Project. As ZONG (CMPAK) is the latest cellular network in Pakistan (despite of the fact that it merges and come up with new name), thats why we are focusing on it in various aspects; y y Quality of Services (QOS) in the perception of their customer. Primarily our focus on those customers who switched their networks to ZONG, because those customers can give and provide a broad picture of ZONG about  QOS of ZONG  Voice Quality of ZONG  SMS success Rate  Call Completion Ratio  Call Connection Time  End to End SMS delivery  Customer complaints

This study also can help us in determining the psychology of switch customers whether they switch their old network with reason or without any reasons, it also can determine whether they switch from ZONG or not (High Dogmatism/Low Dogmatism Personality)?

OBJECTIVES

Our objective of this study is to; y Implement the concepts of Consumer Behavior on our study like:  Involvement in this purchase  Evaluation of alternatives  Internal search vs. External search  Arousal of motives  A Trio of needs. Check the Personality (Trait Theory) of Switching Customers ( Generic Goals vs Product Specific) Check ZONGs credibility/unique value among its customers Check Pre-purchase Behavior (heard from anyone or its entirely their decision) Examine Rate of Usage Check Post purchase Behavior

y y y y y

METHODOLOGY
In this project we are using Qualitative Research which aims to achieve an in-depth understanding of a situation, whether it explains why a person entering in a purchasing phase or explains why some advertisements make us laugh and contribute to our brands. In Qualitative research; y y y y y y The focus of research is to understand and interpret There is a high researcher involvement or it act as a catalyst Purpose is In-depth understanding and theory building Sample size is small Sample design is Non-Probability, because we cant imagine the interviewees perception Data analysis is primarily non-qualitative

In this research well focus on individual interviews and types well use here are; y y Unstructured Interview Semi-structured Interview

Because y y y y They rely on developing a dialog between interviewer and participant. Require more interviewer creativity Use the skill of interviewer to extract more and a greater variety of data Use interviewer experience and skill to achieve greater clarity and elaboration of answers

We also are doing Projective techniques like; y y Brand Mapping (participants are presented with different brands and asked to talk about their perceptions, usually in relation to several criteria) Sentence completion (participants are asked to complete a sentence like Pakistan has several cellular networks)

Buying Process Chart

PROFILE OF RESPONDENTS Respondent #01 Demographics Age: 29 Gender: Male Family members using Zong: All Friends using Zong: Majority Occupation: Receptionist Psychographics Did you have any Problem in Previous Network? Response: Yes. If yes, what was that? Response: It was too expensive. In free time you like to? Response: Study & Play Cricket You like to call or SMS? Response: Both. When you recognized that you have to switch your network? Response: It was 2005 when I felt that I should change the SIM. Then you chose ZONG, any research behind this decision? Response: My friend introduced me to Zong so I felt it was good for me.

Geographic Lives in Shalamar Lahore Works at: UET Lahore Education level Bachelors (Continue) from Virtual University

PROFILE OF RESPONDENTS Respondent #02 Demographics Age: 24 Gender: Male Family members using Zong: None Friends using Zong: Many Occupation: Entrepreneur Psychographics Did you have any Problem in Previous Network? Response: Yes. If yes, what was that? Response: My credit finished too soon In free time you like to? Response: Chat with friends, Gym You like to call or SMS? Response: Both. When you recognized that you have to switch your network? Response: Last year when I realized that my friends had Zong and I had problems to reach them Then you chose ZONG, any research behind this decision? Response: My friend introduced me to Zong & I also saw advertisements of Zong, they helped me through it

Geographic Lives in Lahore Cantt Works at: Own place in Cantt Education level Intermediate

Respondent #03 Demographics Age: 20 Gender: female Family members using Zong: None Friends using Zong: Many Occupation: student Psychographics Did you have any Problem in Previous Network? Response: No If yes, what was that? Response: ---In free time you like to? Response: watch television You like to call or SMS? Response: sms When you recognized that you have to switch your network? Response: I liked to try new offerings as I am an innovator. Then you chose ZONG, any research behind this decision? Response: No but its advertisement are very much appealing. Geographic Lives in : Johar Town, Lahore Works at: ---Education level: undergraduation (continue)

Respondent #04 Demographics Age: 21 Gender: female Family members using Zong: one of them Friends using Zong: Many Occupation: student Psychographics Did you have any Problem in Previous Network? Response: Yes If yes, what was that? Response: Their call rates are very much expensive In free time you like to? Response: Gardening You like to call or SMS? Response: call When you recognized that you have to switch your network? Response: when I ran short of money because of consuming more and more cards on my previous network Then you chose ZONG, any research behind this decision? Response: No, I just heared it from my friends about its lowest call rates. Geographic Lives in: Faisal Town, Lahore Works at: ---Education level: Under graduate

PROCESS & INFLUENCE 1. Need Recognition: It is the first step of buying process in which customer gets aware of its need. In the project, the main reason of switching from other connection to Zong is low rates. We had two professionals and two students for interviews but there was no big difference in need recognition between the two categories. They had following need recognitions: Expense: Professional class as well as students does not like to pay more and get less in return, they like to get value for their spending & this arise need recognition in their mind. Students especially want same or better packages for lesser amount of money. Friends & Family: The second main reason is the network used by friends and family. All the respondents told that the major factor of conversion was their friends or family & they had to follow them. They need to switch is obvious when Zong offers lower call rates & friends already have Zong. Value for Money: One reason of need recognition was cost benefit analysis of existing offers as compared to Zong benefits told by the friends and advertisements. One of the interviewee told us that the factor for need recognition was  Advertisements: One of the interviewee told us that he liked Zong ads and these ads appealed him to switch the network. The ads made him aware that his network was not so good in calling rates so it make him aware of the need to change.

2. Information Search: After need recognition, customer clarifies the options to which he can depend on to take decisions. a) Internal Search: Internal search is the customers self organized search or knowledge of the product; the respondents were not interested to undergo excessive research like surfing on the internet or going through some research techniques. b) External Research: The respondents were very much interested in following external sources like friends, advertisements and word of mouth by social references. -Friends: Friends were the authentic and practical example as they guide the new users through their experience. They play a major role in exposing products image to the customer. These customers in our project mostly depended on their friends for primary research about network. It is common in both students and professionals. -Advertisements: Advertisements can create a positive as well as negative image of product, three of the respondents got bit of idea from the advertisements but one professional did not experience any advertisement but totally depended on suggestion. -Comparisons: Comparison is the key source of information search. All the participants have gone through comparisons to judge the network. They compared package information of different networks with Zong so this information search helped them making their final decision.

3. Evaluation Of Alternatives: After undergoing all research, the customer finalizes his view about product and generates his own merit of selection. The students had more interest in evaluating and ranking the network on the basis of rates, packages, signals etc. We found out that professional people were doing slightly less evaluation as compared to students. In this phase the participants get influenced by the word of mouth of their friends and this happens as a result of value created by marketer through different sources. The participants told us that it was easy to differentiate Zong as it was clearly giving best combination of SMS and Call packages so they were satisfied with their choice. 4. Purchase Decision After evaluating all the alternatives, the customer chooses the most attractive option for himself. The participants took decision as per their information and evaluation. They told us that it did not take much time in reaching a final decision. 5. Purchase When the customer is all set to implement his decision, he has to purchase the product. In this stage the focus is on having the product and to apply testing on the product through usage. a) Post Purchase Evaluation: Our participants agreed that they were bit worried after purchasing the Zong SIM but they became satisfied after using it for a while. They told us that they are more than happy using this network because they were getting benefits equal to and in fact exceeding their expectations. The perceived value of participants was, Zong will be better than their existing network and they were satisfied when they got it. We asked this buyer that if they like this network for their other connections i.e. family or friends and their response was positive. b) Dissonance: These buyers did not feel much of dissonance because it was not an extensive decision to make and they took this decision lightly.

Evaluation of Processes: After applying our theoretical knowledge into practical findings, we have found out some interesting facts. We have compared the buying process given in the book with the actual buying process and we came to know that there was almost no difference between them; more or less they were same. The customers did go through all the stages of buying process but with different sequence or some time different frame of mind. The customer did have problem recognition in from of over Expense, Friends & Family network, Value for Money (cost & benefit) and Advertisements. Then the customer did information search as per his/her desire. Then the customer did evaluation of available alternatives to choose the best alternative or the one he favors as a result of his personal rankings. Our respondents chose the alternative that was giving them best monthly package (calls & sms) and it consumes Rs 300 in total. Then according to the 4th stage of buying process the customer will buy the product and then evaluate his decision, the participants upon asking told us that they have been through the decision and had after purchase anxiety to some extent. At the end we evaluate the theoretical buying process model as a key for customer buying decisions.

The following process model will explain our observation more precisely.

BUYING PROCESS (A)

(B)

(C)

(D)

(E)

(G)

(F)

(A) Experience (if Bad) (B) Information of best alternate (C) Get best alternative (D) Use it (E) Expectation= Benefits= satisfaction (F) Post purchase behavior (if bad) (G) Complaint or not (H) Decision box (continue using or leave it)

(H)

Observations: As we have conducted the focus group, we come to a conclusion that most of them didnt go through all the 5 stages of consumer buying process. As this is an impulse buying so the customer didnt think in depth before making a decision about buying this network. The friends opinion mattered a lot in whole purchase. We found happy in fact delighted customers as they say that their monthly expense was 300-500 due to the packages offered by the company. Some of them switch their network just for being in the list of innovators. And after using those offerings they will be able to judge either they are satisfied or dissatisfied or they have cognitive dissonance. Some of the users are satisfied and they consider it one of the best decisions. And some of them face cognitive dissonance. Some of the users complaints about the problems that they face in this network and others just stay quite. We came to know that there was a delight in accordance with satisfaction level among participants. An interesting thing we found out was customers do not like to recharge again and again but they prefer to load the credit once and use it for the whole month & it is the factor due to which they continue with Zong. The other thing is Zong is good in retaining customers and creating loyalty. Zong continues to make loyal customers now by introducing Zong Manchester United SIM as club fans are most loyal people and football has certain following all over the world.