customer satisfaction of grameen phone

Daffodil International University

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Assessing CUSTOMER SATISFACTIONOF


Assessing Customer

Satisfaction of

Submitted to: Mr. Mahbub ParvezInternship SupervisorAssistant professor & Head of BBA ProgramFaculty of Business & Economics

Submitted By: Md. Mahmudul HasanID: 062-11-1314BBA ProgramFaculty of Business & EconomicsDaffodil International University

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28 December 2007

Mr. Mahbub Parvez

Assistant professor & Head of BBA ProgramFaculty of Business & EconomicsDaffodil International University102, Sukrabad, Mirpur RoadDhanmondi, Dhaka- 1206

Subject: “Submission of internship report on “Customer Satisfaction of GrameenPhone”

Dear Sir,

It’s my pleasure to submit you internship report on “Customer satisfaction of GrameenPhone Ltd”, after completion of my internship as prerequisite for BBA Program.

In this report, I have tried my best to focus on the Customer satisfaction of GrameenPhone. I believe that this internship report will help us to find the satisfaction level of GP existing subscribers. I will be pleased to provide further clarification on this report whenever necessary.

I hope, you will accept my report and oblige thereby.

Sincerely yours,

………………………………….Md. Mahmudul HasanID: 062-11-1314BBA ProgramFaculty of Business & EconomicsDaffodil International University

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Acknowledgment

This Internship Report would have never seen the face of light without the help

and cooperation of the following people. First of all I would like to thank my honorable

faculty Head and my Internship supervisor Mr. Mahbub Parvez for giving me the

permission to work on this topic. I would also like to thank my supervisor for his clear

guidelines that enabled me to understand the structure of the paper.

Next, I would like to thank GrameenPhone authority for their helpful and active

cooperation. Specially, to Mr. Yeasir Mahmood Khan, Manager, Inbound Call

Management Center, Customer Service, Commercial Division, Grameen Phone Ltd. for

an interview and other supports. I would also like to thank the sample that I surveyed.

Without their cooperation, it was not possible for me to collect primary data.

With warm thanks,

………………………………….Md. Mahmudul HasanID: 062-11-1314BBA ProgramFaculty of Business & EconomicsDaffodil International University

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A. Executive Summary 06

B. Organization Part:

1. Introducing the Company 08

1.1 History of GrameenPhone 09

1.2 The People 12

1.3 The Services 12

1.4 The Technology 12

1.5 GrameenPhone Corporate Governance 13

1.6 Corporate Social Responsibilities 14

1.7 Shareholders of GrameenPhone 18

1.8 Management of GrameenPhone 20

1.9 Division at GrameenPhone 22

1.10 Current State & Future Direction of GP 40

C. Project Part:

2.1 Introduction 42

2.2 Objectives 42

2.3 Significance of the Study 43

2.4 Hypothesis 43

2.5 Methodology 44

2.6 Customer Satisfaction (Theoretical View) 45

2.7 Customer Satisfaction Factors of GP 46

2.8 Conducting a Survey 50

2.9 Presenting the Survey Results 51

D. Analysis of the survey:

3.1 Applying the GAPs Model of Service Quality 74

3.2 Recommendations to close the GAPs 79

E. Limitations of the Study 80

F. Conclusion 81

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Table of Contents


G. Bibliography 82

H. Sample Questionnaire 84

A. Executive Summery:

GrameenPhone is the leading company in the mobile telecommunication industry

of Bangladesh. It has been successful to build a superior image in comparison to the

other operators. In other words, GP has a clear advantage over the competitors.

GrameenPhone has some additional features in comparison to its competitors. It

is playing a vital role to increase the subscribers of GrameenPhone. Another important

thing is that GP users are mostly satisfied with the initial price of GP connections and

hand-sets. Because, before GP’s introduction to the market, mobile phones were totally

out of reach to the major part of the current market. Moreover, GrameenPhone

subscribers are happy with the country-wide network.

But overall, GP users are not satisfied with service of the company. Many

important factors are acting as reasons behind this overall dissatisfaction. Quality of

airtime and network availability is not satisfactory. GrameenPhone connections are not

always available. This is especially true for the Pre-Paid service. (Very recently, after

conducting my survey, situation has been changed slightly). Sometimes, the subscribers

need to pay extra money to get this service.

The GPC of GP is very important for some after-sales services. But, these have

shortage of capacity. GP hotline is also an important customer care tool. But it is also in

shortage of capacity. Subscribers need to spend significant amount of time to reach the

customer care. Behavior of the hotline CM (Customer Manager) is also questionable. But

if we think from their end CM (Customer Manager) it is too tough to handle a large

numbers of subscribers with a smiling face continuously. Again the problem is capacity.

Most of the subscribers are not happy with the billing rate of GrameenPhone. They think

it is too high in the context of Bangladesh

Another significant dissatisfaction of the GP users is that most of the GP

connections are mobile to mobile. They do not have access to BTTB. But it is important

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for many subscribers to get this service. Most alarming thing is that most of the

GrameenPhone users are not loyal towards the company.

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Organization Part

GrameenPhone Ltd


1. Introduction of the company:

GrameenPhone Ltd. (GP) is the market leader in the mobile telecommunication

industry of Bangladesh. The address of its Head Office is: Celebration Point, Plot No. 3

& 5, Road No. 113/A, Gulshan-2, Dhaka 1212, Bangladesh. GP is a joint venture

between Bangladesh and Norway. Major shareholders are Telenor (68%) and

Grameen Telecom (32%). Telenor is the state owned telecommunication company of

Norway. It has operations in different countries of the world. On the other hand,

Grameen Telecom is the sister concern Grameen Bank, one of the biggest Non

Government Organizations (NGO) of Bangladesh

Company Vision: “WE ARE HERE TO HELP”

Company Mission:

1. Knowing customer Expectations

2. Knowing us

3. Organizing us

Company Values:

1. Make it Easy

2. Keep Promises

3. Be Inspiring

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4. Be respectful

1.1 HISTORY OF GRAMEENPHONE

November 28, 1996: GrameenPhone was offered a cellular license in

Bangladesh by the Ministry of Posts and Telecommunications;

March 26, 1997: GrameenPhone launched its service on the Independence

Day of Bangladesh;

June 1998: GP started its services in the port city of Chittagong, the second

largest city in the country. Cell to cell coverage in the Dhaka-Chittagong corridor

also enabled GP to introduce its service in a number of other districts along the way;

September 1999: GP started its service in the industrial city of Khulna. Once

again, a number of other districts came under coverage of GP because of the cell to

cell coverage between Dhaka and Khulna. Earlier in September 1999, it introduced

the EASY pre-paid service in the local market. It also introduced the Voice Mail

Service (VMS) and the Short Message Service (SMS) and other Value Added

Services (VAS);

June 2000: GrameenPhone started its services in Sylhet, Barisal and Rajshahi,

bringing all six divisional headquarters under the coverage of its network. The

service in Barisal region was started after the microwave link between Khulna and

Chittagong was completed;

August 2003: After six years of operation, GrameenPhone has more than one

million subscribers;

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November 2005: GrameenPhone continues to being the largest mobile phone

operator of Bangladesh with more than 5 million subscribers;

November 16, 2006: After almost 10 years of operation, GrameenPhone

has over 10 million subscribers. GrameenPhone has built one of the most extensive

infrastructures of Bangladesh and is a major contributor to the development of the

national economy. GrameenPhone is one of the largest private sector investments in the

country with an accumulated investment of BDT 5200 crore up to December 2005.

GrameenPhone is also one the largest taxpayers in the country, having contributed nearly

BDT 5000 crore in direct and indirect taxes to the Government Exchequer over the years

of which is amount, BDT 1670 crore was paid in 2005, BDT 2300 crore was paid in

2006 and more BDT 2580 crore was paid in 2007 alone.

GP was also the first operator to introduce the pre-paid service in September

1999. In addition to core voice services, GrameenPhone offers a number of value-added

services, in each case on both a contract and prepaid basis. It established the first 24-hour

Call Center, introduced value-added services such as VMS, SMS, Fax & Data

Transmission Services, International Roaming Service, WAP, SMS - based Push-Pull

Services, EDGE, personal ring back tone and many other products and services.

GrameenPhone nearly doubled its subscriber base during the initial years while

the growth was much faster during the later years. It ended the inaugural year with

18,000 customers, 30,000 by the end of 1998, 60,000 in 1999, 193,000 in 2000, 471,000

in 2001, 775,000 in 2002, 1.16 million in 2003, 2.4 million in 2004, 5.5 million in 2005

with, 13.2 in 2006, and now GrameenPhone has more 1,80,44,240 subscribers up to 5

December 2007. GrameenPhone offers the widest coverage in Bangladesh. The

population coverage has increased from approximately 85% in 2005, 90% in 2006 and it

is more 97% at 2007. In addition, GrameenPhone also offers EDGE to its subscribers

From the very beginning, GrameenPhone placed emphasis on providing good

after-sales services. In recent years, the focus has been to provide after-sales within a

short distance from where the customers live. There are now more than 600 GP Service

Desks (GPSD) all over the Bangladesh and a Customer Manager is covering nearly all

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sub-districts of 61 districts. In addition, there are more 39 GP Customer Centers (GPC)

in all the divisional cities and they remain open from 8am-8pm every day including all

holidays (365 days service point).

GrameenPhone has generated direct and indirect employment for a large number

of people over the years. The company presently has more than 5165 full-time, part-time

and contractual employees. Another 1,00,000 people are directly dependent on

GrameenPhone for their livelihood, working for the GP dealers, retailers, scratch card

outlets, suppliers, vendors, contractors and others.

In addition, the Village Phone Program, also started in 1997, provides a good

income-earning opportunity to more than 200,000 mostly women Village Phone

operators living in rural areas. The Village Phone Program is a unique initiative to

provide universal access to telecommunications service in remote, rural areas.

Administered by Grameen Telecom Corporation, it enables rural people who normally

cannot afford to own a telephone to avail the service while providing the Village Phone

operators an opportunity to earn a living.

The Village Phone initiative was given the “GSM in the Community” award at

the Global GSM Congress held in Cannes, France in February 2000. GrameenPhone was

also adjudged the Best Joint Venture Enterprise of the Year at the Bangladesh Business

Awards in 2002.

GrameenPhone considers its employees to be one of its most important assets. GP

has an extensive employee benefit scheme in place including Gratuity, Provident Fund,

Group Insurance, Family Health Insurance, Transportation Facility, Day Care Centre,

Children’s Education Support, and Higher Education Support for employees, In-House

Medical Support and other initiatives.

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1.2 THE PEOPLE

The people of GrameenPhone are young, dedicated and energetic. All employees

are well educated at home or abroad, with an even distribution of males and females and

social groups in Bangladesh. They know in their hearts that GrameenPhone is more than

phones. This sense of purpose gives them the dedication and the drive, producing the

biggest coverage and subscriber-base in the country. GrameenPhone provides equal

employment opportunities and recognizes the talents and energy of its employees.

1.3 THE SERVICE

GrameenPhone believes in service that leads to good business 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 good business. Thus development and business go together.

1.4 THE TECHNOLOGY

GrameenPhone Global System for Mobile or GSM technology is the most widely

accepted digital system in the world, currently used by over a billion people in 172

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. Thus, consumers get the best for the least. GrameenPhone is now

the leading telecommunications service provider in the country with more than 10

million subscribers as of January 2007. Presently, there about 15 million telephone users

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in the country, of which, a little over one million are fixed-phone users and the rest

mobile phone subscribers.

Starting its operations on March 26, 1997, the Independence Day of Bangladesh,

GrameenPhone has come a long way. It is a joint venture enterprise between Telenor AS

(62%), the largest telecommunications service provider in Norway with mobile phone

operations in 12 other countries, and Grameen Telecom Corporation (38%), a non-profit

sister concern of the internationally acclaimed micro-credit pioneer Grameen Bank.

Over the years, GrameenPhone has always been a pioneer in introducing new

products and services in the local market. GP was the first company to introduce GSM

technology in Bangladesh when it launched its services in March 1997. The

technological know-how and managerial expertise of Telenor AS has been instrumental

in setting up such an international standard mobile phone operation in Bangladesh. Being

one of the pioneers in developing the GSM service in Europe, Telenor AS has also

helped to transfer this knowledge to the local employees over the years.

1.5 GrameenPhone CORPORATE GOVERNANCE

In the fast-paced world of telecommunications, vibrant and dynamic Corporate

Governance practices are an essential ingredient to success. GrameenPhone believes in

the continued improvement of Corporate Governance. This in turn has led the company

to commit considerable resources and implement internationally accepted Corporate

Standards in its day-to-day operations.

Being a private limited company, the Board of Directors of GrameenPhone have

a pivotal role to play in meeting all stakeholders’ interests. The Board of Directors and

the Management Team of GrameenPhone are committed to maintaining effective

Corporate Governance through a culture of Accountability, Transparency, Well-

Understood Policies and Procedures. The Board of Directors and the Management Team

also persevere to maintain compliance of all laws of Bangladesh and all internally

documented regulations, policies and procedures. GrameenPhone is a truly transparent

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company that operates at the highest levels of integrity and accountability on a global

standard.

1.6 CORPORATE SOCIAL RESPONSIBILITIES;

AN INTEGRAL PART OF GP

GrameenPhone started its journey 10 years back with a believe “Good

development is good business”. Since its inception, GrameenPhone has been driven to be

inspiring and leading by example, when it comes to being involved in the community.

GrameenPhone believe that, sustainable development can only be achieved through long

term economic growth. Therefore, as a leading corporate house in Bangladesh GP intend

to deliver the best to their customers, business partners, stakeholders, employees and

society at large by being a partner in development.

GrameenPhone defines Corporate Social Responsibility as a complimentary

combination of ethical and responsible corporate behavior as well as a commitment

towards generating greater good in society as a whole by addressing the development

needs of the country.

To interact effectively and responsibly with the society and to contribute to the

socio-economic development of Bangladesh, GrameenPhone has adopted a holistic

approach to Corporate Social Responsibility, i.e. Strategic & Tactical. Through this

approach GP aims to, on the one hand involve itself with the larger section of the society

and to address diverse segments of the stakeholder demography, and on the other remain

focused in its social investment to generate greater impact for the society.

GrameenPhone focuses its Corporate Social Responsibility involvement in three

main areas - Health, Education and Empowerment. They aim to combine all their CSR

initiatives under these three core areas to enhance the economic and social growth of

Bangladesh.

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1.6.1 Health

Helping and caring for the community is an essential component of

GrameenPhone Corporate Social Responsibility; therefore they endeavor to make a

positive contribution to the underprivileged community of Bangladesh by helping in

improvement of the health perils in the country as much as possible.

Healthcare is still inaccessible for many Bangladeshis. Almost half of the

country's population live below the poverty line and cannot even afford basic healthcare.

Only 35% of the rural population use adequate sanitation facilities and 72% have access

to clean drinking water. Moreover the people of the flood-prone areas suffer from many

waterborne diseases.

The major problem in this sector is the significant gap between healthcare

knowledge and practice and availability of the healthcare services. Therefore, all possible

sources, be it public or private, should mobilize their efforts to make healthcare services

available to the people who need it most, and thus help in achieving the MDG goals.

GP’s plan is to engage in programs, especially in the rural areas, that will assist in

creating awareness about healthcare and healthcare services and help improve the overall

quality of life.

Keeping their vision in mind - We are here to help; GrameenPhone aim to

extend their contribution to the development of the healthcare system and work to

provide a brighter and healthier future for the people of Bangladesh.

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1.6.2 Education

Education is the key to prosperity and good life. Every human being should have

the opportunity to make a better life for him or herself. One of the Millennium

Development Goals (MDG) for Bangladesh is to achieve universal primary education;

unfortunately too many children in Bangladesh today grow up without this opportunity,

because they are denied their basic right to even attend primary school. The country’s

low literacy rate of 41% (2004 UNESCO Report), may indicate that we are far away in

pursuit of sustainable development, but at the same time the gradual increase in the adult

literacy rate gives us the hope that our nation has the potential to improve in this sector.

The marginalized and disadvantaged groups in general - particularly the rural and

urban-poor of Bangladesh - have significantly less access to education than other

groups. Though initial enrollment in primary school is high, the completion rate is

notably low; approximately 65% (World Bank Report 2004) and a smaller percent of that

even complete secondary school. Bangladesh government has provided lot of incentives,

such as, free distribution of textbooks in primary schools, secondary stipend program for

100% of the girls, Food for Education project, to encourage and improve the educational

sector of the country, which has helped in improvement in the literacy rate. But still we

have a long way to go to make our country illiteracy free, thus GP look forward to

support this sector, which will eventually help to build a developed country.

Providing access to education, especially for children from disadvantaged

backgrounds who might not otherwise get the opportunity, is the main goal of

GrameenPhone CSR education initiatives. Many people in Bangladesh still lack the basic

technological knowledge and marketable skills, thus GP plan to focus further to develop

an educated and skilled workforce through creating opportunity in capacity development;

skilled workforce would in turn be able to create and share knowledge and contribute to

the economy of Bangladesh.

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1.6.3 Empowerment

Lack of empowerment and poverty is a chronic and complex problem for

Bangladesh. According to UNDP HDI Report 2006, which measures the average

progress of a country in human development, in terms of, life expectancy, adult literacy

and enrolment at the primary, secondary and tertiary level, Purchasing Power Parity

(PPP), etc., Bangladesh ranks 137th among 177 countries. Moreover, 50% of the total

population of Bangladesh lives below the poverty line, defined by less than a dollar a

day.

Some of the major factors contributing to this situation are inequality in income

distribution, lack of access to resources, lack of access to information and inadequate

infrastructure. The rural people of Bangladesh especially are deprived of these facilities,

which is a major issue to break out from the shackles of poverty prevailing in the

country.

Empowerment is a key constituent towards poverty reduction, and it is a key

driver for sustainable economic development. Empowerment is a process of enhancing

the capacity of individuals or groups to make choices and to transform those choices into

desired actions and outcomes, which in turn helps them to secure a better life.

GP acknowledge that development and poverty reduction depend on holistic

economic prosperity; therefore their aim is to increase development opportunities,

enhance development outcomes and contribute towards development of the quality of

life of the people through their CSR initiatives and innovative services. They would like

to facilitate empowerment opportunities to the vulnerable people of Bangladesh, so that

it enables them to better influence the course of their lives and live a life of their own

choice.

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1.7 SHAREHOLDERS OF GRAMEENPHONE LTD.

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.

1.7.1 ABOUT TELENOR

Telenor AS is the leading Telecommunications Company of Norway listed in the

Oslo and NASDAQ Stock Exchanges. It owns 62% shares of GrameenPhone Ltd.

Telenor AS have played a pioneering role in development of cellular communications. It

has substantial international operations in Mobile Telephony, Satellite Operations and

Pay Television Services. In addition to Norway and Bangladesh, Telenor AS owns GSM

companies in Denmark, Austria, Hungary, Russia, Ukraine, Montenegro, Thailand,

Malaysia and Pakistan.

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1.7.2 ABOUT GRAMEEN TELECOM

Grameen Telecom Corporation, which owns 38% of the shares of GrameenPhone

Ltd., is a non-profit company and works in close collaboration with Grameen Bank. The

internationally reputed bank for the poor has the most extensive rural banking network

and expertise in micro finance. Grameen Telecom, with the help of Grameen Bank,

administers the Village Phone Program, through which GrameenPhone provides its

services to the fast growing rural customers.

Grameen Telecom’s objectives are to provide easy access to GSM cellular

services in rural Bangladesh, creating new opportunities for income generation through

self- employment by providing villagers with access to modern information and

communication based technologies.

1.8 MANAGEMENT OF GRAMEENPHONE LTD

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Share holders of GrameenPhone

62%

38%Telenor

GrameenTelecom


The top management of GrameenPhone Ltd carried out their management roles

comprehensively over the years. There has been replacement or changes in the positions

but all have worked together to increase the overall performance of the organization.

Management Team of GrameenPhone comprises of the Managing Director, the Deputy

Managing Director and the Divisional Heads of the company.

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ORGANIZATIONAL STRUCTURE

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GRAMEENPHONE Management Team:

Mr. Anders Jensen is the Managing Director;

Mr. N K A MOBIN, Acting Deputy Managing Director;

Mr. Stein Naevdal Larsen, Chief Marketing Officer;

Mr. Md. Arif Al Islam, Chief Financial Officer;

Mr. Khalid Hasan, Director Regulatory & Corporate Affairs;

Mr. Kafil H. S. Muyeed, Director New Business;

Mr. Md. Shafiqul Islam, Chief Technical Officer;

Mr. Lutfor Rahman, Head of IT;

Mr. N K A Mobin; Director Projects;

Mr. Emad Ul Ameen, Director Human Resources of

GrameenPhone Ltd.

They equally contributed to GrameenPhone superior leadership, by carrying out their

unique roles. They worked well together, respecting each other’s abilities, & arguing

openly & without any rancor when they disagreed.

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1.9 DIVISIONS AT GRAMEENPHONE LTD.

GrameenPhone Ltd. has approximately 5000 employees working at different

levels of organizational hierarchy. There are 9 functional departments engaged in

managing these employees- with the aim to meet organizational objectives.

GrameenPhone follows a mix of centralized and decentralized decision making process-

where the top management mainly takes all the strategic decisions while the functional

managers have flexibility to take decisions by themselves on a day to day basis. At

GrameenPhone the Managing Director is assisted by 9 Senior Executives who are

heading different departments in the strategic decision making process. The departmental

names of GrameenPhone are given below:

Commercial Division

DMD’s (Deputy Managing Director) Division

Finance Division

New Business Division

Human Resource Division

Information Technology

Technical Division

Information

Regulatory & Corporate Affairs

GrameenPhone follows a 3-layer management philosophy in Bangladesh. These

are Directors, Managers and Officers. The CEO is the top most authority of all the levels.

Directors are the departmental heads that are responsible for the activities of their

departments. Managers have the authority next to directors. These two layers represent

the management level of GrameenPhone. Officers are the next persons to stand in the

hierarchy list. They are the typical mid-level employees of GrameenPhone organizational

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hierarchy. These officers are responsible for managing the operational

activities and operating level employees.

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1.9.1 COMMERCIAL DIVISION OF GRAMEENPHONE

Head of Function: Mr. Stein Naevdal

Reporting To: Mr. Anders Jensen, Managing Director

1.9.1.1 Main Objective

Within the direction from the CEO of GrameenPhone, the Head of Commercial

Division/Chief Marketing Officer shall ensure that the Commercial function within

GrameenPhone at all times is aligned with and supports the realization of

GrameenPhone’s business objectives.

1.9.1.2 Main Responsibilities

Develop, maintain and implement strategies, policies and procedures for the

functional areas, which include:

Marketing

Sales & Distribution

Customer Management

Customer Relationship Management

Village Phone

Monitor and control company-wide commercial activities;

Provide support and consulting within scope to all divisions in the company, in order

to ensure coordination, business alignment and adaptation of best-practices;

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Develop and maintain descriptions of departments reporting to the Head of

Commercial Division/Chief Marketing Officer, defining their responsibilities and

how work is organized between these departments;

Ensure awareness of, and ability to comply with, legal requirements applicable for

procurement activities and its governance documents, including SOA-required

internal controls and Codes of Conduct;

Ensure necessary capabilities company wide to perform the functions responsibilities.

1.9.2 DMD’S DIVISION OF GRAMEENPHONE

Head of Function: Mr. Frank Fodstad



Within the direction from the CEO of GrameenPhone, the Deputy Managing

Director shall ensure that the Deputy Managing Director’s function within the company

at all times is aligned with and supports the business objectives.


Develop, maintain and implement company strategies, policies and procedures for the

functional area, which includes:

Revenue Assurance & Fraud Management

Fiber Optic Network

Legal & Compliance Unit

Administration

Corporate Headquarter Project

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Monitor and control Deputy Managing Director’s divisional activities;

Provide support and consulting to all other functions within scope, in order to ensure

coordination, business alignment and adaptation of best-practices;

Develop and maintain descriptions of departments reporting to the Deputy Managing

Director, defining their responsibilities and how work is organized between these

departments;

Ensure awareness of, and ability to comply with, legal requirements applicable for the

company and its governance documents, including SOA-required internal controls

and Codes of Conduct;

Ensure necessary capabilities within function to ensure that the organization is able to

meet its current and future business objectives.

1.9.3 FINANCE DIVISION OF GRAMEENPHONE

Head of Function: Mr. Arif Al Islam



Within the direction from the CEO of GrameenPhone, the CFO shall ensure that

the Finance & Supply Chain Management function within GrameenPhone at all times is

aligned with and supports the realization of GrameenPhone business objectives. The

CFO must prepare financial statements with reasonable assurance that statements are not

materially misstated at the consolidated group level and for local statutory accounts.


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Treasury Financial Reporting & Controlling Tax

Risk Management Supply Chain Management Investor Relations

Monitor and control company-wide Finance & Supply Chain Management activities;

Provide support and consulting within scope, to all other divisions in the company, in

order to ensure coordination, business alignment and adaptation of best-practices;

Develop and maintain descriptions of departments reporting to the CFO, defining

their responsibilities and how work is organized between these departments;


functional area and its governance documents, including SOA-required internal

controls and Codes of Conduct;

Ensure necessary capabilities within the function to ensure that the organization is

able to meet its current and future business objectives.

1.9.4 NEW BUSINESS DIVISION OF GRAMEENPHONE

Head of Function: Mr. Kafil H. S. Muyeed



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Within the direction from the CEO of GrameenPhone, the Head of New Business

shall ensure that right emphasis is put on community relations, CSR activities and new

business based on current and future technological developments and these areas are

aligned with and supports the realization of GrameenPhone business objectives.


Develop, maintain, and implement strategies and policies for the areas which include:

Community Relations

Corporate Social Responsibility activities

New businesses based on current and future technological developments

Strategy processes co-ordination aCM (Customer Manager)s the organization

Monitor and control activities within own area;

Develop and maintain descriptions of functions reporting to the Head of New

Business, defining their responsibilities and how work is organized;

Ensure awareness of, and ability to comply with, legal requirements applicable for

this function, including SOA-required internal controls;

Ensure necessary capacity, competence and capabilities to perform the function’s

responsibilities.

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1.9.5 HUMAN RESOURCE DIVISION OF

GRAMEENPHONE

Head of Function: Mr. Emad Ul Ameen



Within the direction from the CEO of GrameenPhone, the Head of HR shall ensure that the HR function within GrameenPhone at all times is aligned with and supports the realization of GrameenPhone business objectives. The Head of HR shall optimize the human resources in GrameenPhone, through individual performance management and organizational development, as well as nurturing a culture supporting the realization of the vision and values. In order to achieve this, leadership excellence is a key focus area for HR. The units in HR Division include:

HR Operations; Recruitment & Selection; HR Development; Health, Safety & Environment Expatriate and Travel Support.


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Develop, maintain and implement company HR strategies, policies and procedures in

order to establish organizational capabilities company-wide to meet current and emerging business needs, which include:

Leadership Employee Capabilities Organizational Design Collaboration Recruitment Compensation & Benefits Employee relations and Health, Safety & Working Environment

Monitor and control company-wide HR activities;

Provide support and consulting within scope, to all divisions in the company, in order

to ensure coordination, business alignment and adaptation of best-practices;

Develop and maintain descriptions of departments reporting to the Head of HR,

defining their responsibilities and how work is organized between these departments;


function and its governance documents, including SOA-required internal controls and Codes of Conduct;

Ensure necessary capabilities company wide to ensure that the organization is able to


1.9.6 INFORMATION TECHNOLOGY DIVISION OF

GRAMEENPHONE

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Head of Function: Mr. Lutfor Rahman



Within the direction from the CEO of GrameenPhone, the Head of IS/IT shall

ensure that the Information Security/Information Technology function within

GrameenPhone at all times is aligned with and supports the realization of

GrameenPhone’s business objectives. The Head of IS/IT shall ensure the realization of

the business objectives through delivering services and information with sufficient

quality.




Strategy and Architecture

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IS/IT Governance

IT Quality and Risk Management

IT Sourcing (In compliance with Company Procurement Policy)

Monitor and control company-wide IS/IT activities to create transparency and

facilitate best practice within IT.

Provide support and consulting to all divisions in the company, in order to ensure

coordination, business alignment and adaptation of best-practices.

Develop and maintain descriptions of departments reporting to the Head of IS/IT,

defining their responsibilities and how work is organized between these departments.

Ensure awareness of, and ability to comply with, legal requirements

applicable for the functional area and its governance documents,

including SOA-required internal controls and Codes of Conduct.

Ensure necessary capabilities within the function to ensure that the

organization is able to meet its current and future business

objectives.

1.9.7 TECHNICAL DIVISION OF GRAMEENPHONE

33


Head of Function: Mr. Shafiqul Islam



Within the direction from the CEO of GrameenPhone, the Head of Technical/CTO shall ensure that the technical function within the company at all times is aligned with and supports the business objectives. There are five departments within the Technical Division:

Planning: The purpose of this unit is to plan the entire GP Telecom network including Core Network Planning, Integrated Network Planning, Service Network Planning, Transmission Planning and Radio Planning.

Implementation: The task of the Implementation Department is to build the GP telecom network or execute the plan of the Planning Department in the field.

Operation: This department is responsible for running the network. This includes Operation and Maintenance of the network.

Network Quality & Performance: The purpose of this department is to monitor and improve Network Quality and Performance.

Network Advancement: The purpose of this department is to provide Technology Strategy Planning; adopt new technology considering midterm and long term technology evolution and new business opportunities; technology evaluation and Industry update; and review network plans and architecture for constant renewal.

34




functional area, which includes: Network Planning Network Expansion and Advancement Network Operations

Monitor and control the Technical functions activities;

Provide support and consulting to all functions within scope, in order to ensure


Develop and maintain descriptions of functions reporting to the Head of

Technical/CTO, defining their responsibilities and how work is organized between these functions;


company and its governance documents, including SOA-required internal controls and Codes of Conduct;



1.9.8 REGULATORY & CORPORATE AFFAIRS DIVISION

OF GP

35


Head of Function: Mr. Khalid Hasan



Within the direction from the CEO of GrameenPhone, the Head of Regulatory &

Corporate Affairs shall ensure that the Regulatory & Corporate Affairs function within

the company at all times is aligned with and supports the business objectives.



functional area which includes:

Regulatory & Corporate Affairs

External Relations

Monitor and control Regulatory & Corporate Affairs activities;

36


Provide support and consulting to other functions within scope, in order to ensure


Develop and maintain descriptions of departments reporting to the Head of

Regulatory & Corporate Affairs, defining their responsibilities and how work is

organized between these departments;


company and its governance documents, including SOA-required internal controls

and Codes of Conduct;


meet its current and future business objectives;

1.9.9 INFORMATION DEPARTMENT OF

GRAMEENPHONE

Head of Function: Mr. Yamin Bakht


37



The Department is responsible for:

Maintaining Public Relations;

Maintaining Media Relations;

Publishing GP Newsletters;

Publishing Annual Reports;

Maintaining the content of GrameenPhone website;

Maintaining the content of grameenphone@work Intranet site.

The department consists of three people and is headed by a General Manager.

1.10 Current State & Future Direction of GP:

As my discussion shows, GP is doing great in its business. Their market share is significantly high. The mobile telecommunication industry is also growing at a significant pace.

But, if we assess the external environment, we find, the path for Grameen Phone is not that smooth. The service of GP is extensively dependent on BTTB (Bangladesh Telephone & Telegraph Board). In many cases, GP did not get full support of the government owned department.

E.g. Initially, GP provided connections that were accessible to BTTB land phones. But at one point of time, BTTB stopped to provide anymore support in this regard. At that time GP had to innovate the ‘mobile to mobile’ concept to continue the business growth.

38


So, it has the scope to enhance and strengthen its market position. To do so, they need to put more stress on their policies like efficiency, quality, innovation, and customer responsiveness.

If everything goes right, with least risk I can say, GP is headed towards a bright future.

39

Project Part

Project Part


2.1 Introduction

Topic of my internship project is “Assessing Customer Satisfaction of Grameen Phone.”

I got the opportunity to do my internship at Grameen Phone Ltd. I have been working at

Customer Service, Commercial Division. This division consists of 2500 employees. As

the name implies, it deals with the customers after the sales occurs. Main activities of

this division includes maintaining databases of the customers, preparing the bills,

distributing bills, activating new connections, hotline service, collection of bill through

different banks all over the country, and the other after sales services.

As a member of GP’s Customer Service, my job is to provide different services to our

valued subscribers over telephone, which is the hotline service. In other words, my job is

to satisfy the subscribers. In my internship project, I have tried to judge the satisfaction

level of GP service holders.

40


2.2 Objectives

This project was designed to accomplish three objectives. From my point of view, these

issues are very important find out the gap between expectation and perception of the

subscribers and to eliminate dissatisfaction. Through this study, I tried to attain the

following objectives:

Prime objective of my study was to find out the satisfaction level of GrameenPhone

subscribers.

As an outcome of the prime objective, I tried to notice the specific areas of

dissatisfaction of the GP users.

I applied the GAPs Model of service quality to find out both the customer and

provider gaps.

2.3 Significance of the Study

From the organization part we came to know that Grameen Phone is the market

leader in the mobile telecommunication industry of Bangladesh. Their growth rate is

very high. But in this edge of competition, it is very difficult to keep the leading edge

intact. Companies need to come up with new ideas to remain competitive. They need to

keep their customers satisfied.

So, it is very important for GrameenPhone to know whether their customers are

satisfied or not. If the customers are not satisfied, GP can specify the zones of

dissatisfaction and take necessary actions to remove the dissatisfactions.

Hence, I decided to work on this topic.

41


2.4 Hypothesis

My hypothesis is, “Although GrameenPhone is leading the market of mobile

telecommunication industry with a sharp distance, and their customers are not fully

satisfied with the company’s services. If GP does not take care of these dissatisfactions

and other companies are operating in the market with similar offers, it will be difficult

for GrameenPhone to keep the current market share intact.”

In my hypothesis, I have first admitted that GrameenPhone is the market leader

of the mobile telecommunication industry of Bangladesh. As per the market share data,

there is no scope for argumentation on this issue. But I assumed that the customers of GP

are not fully satisfied and loyal to GP.

My logic behind this assumption was: GP is a highly growing company. It tripled

its subscriber base in the year 2000. In this high growth situation, it is very difficult to

keep the customers satisfied.

Another assumption of my hypothesis was, if GP does not take care of the

dissatisfactions and another company comes with similar offer, it will be difficult for

GrameenPhone to keep their market share intact.

The logic that supported this idea was: I assumed GP’s customers are not brand

loyal. They are using GP’s service as they do not have any suitable alternative. So, if a

big player form another industry enters this business, it can be challenging for

GrameenPhone.

2.5 Methodology

42


In my study I mainly depended on primary data that was collected through direct

survey. I developed a questionnaire that consisted mainly closed-ended questions. There

was one open-ended question also.

Data collection was done on a random basis. The results are represented through

bar charts. My research findings came out through analyzing those data.

I also collected data and necessary information by interviewing officials of GP.

These can be treated as secondary data.

After the analysis part, I have applied the GAPs Model of service quality on my

findings. Finally, I came up with my recommendations.

2.6 Customer Satisfaction: (From Theoretical View)

Customer satisfaction is the extent to which a product or service’s perceived

performance matches a buyer’s expectations. If the product or service’s performance

falls short of expectations, the buyer is dissatisfied. If performance matches or exceeds

expectations, the buyer is satisfied or delighted.

Expectations are based on customers past buying experiences, the opinion of

friends and associates, and marketer and competitor information and promises. Marketer

must be careful to set the right level of expectations. If they set expectations too low,

they may satisfy those who buy but fail to attract enough buyers. In contrast, if they raise

expectations too high buyers are likely to be disappointed. Dissatisfaction can arise either

from a decrease in product and service quality or from an increase in customer

expectations. In either case, it presents an opportunity for companies that can deliver

superior customer value and satisfaction.

Today’s most successful companies are rising expectations—and delivering

performance to match. Such companies track their customers’ expectations, perceived

43


company performance, and customer satisfaction. Highly satisfied customers produce

several benefits for the company. Satisfied customers are fewer prices sensitive, remain

customers for a longer period, and talk favorably to others about the company and its

products & services. Although the customer centered firm seeks to deliver high customer

satisfaction relative to its competitors, it does not attempt to maximize customer

satisfaction. A company can always increase customer satisfaction by lowering its price

increasing its services, but it may result in lower profits. Thus, the purpose of marketing

is to generate customer value profitably. This requires a very delicate balance: The

marketer must continue to generate more customer value and satisfaction but not “give

away house.”

Now, we have a very good idea regarding the importance of customer

satisfaction. So, it is also important for the company to know about the satisfaction level

of the customers. When any problem is identified, it becomes easier to solve the

problem. In the next part of my paper I have focused on the ‘Customer Satisfaction

Factors’ of GrameenPhone. That has been followed by my primary research: a survey to

find out the ‘customer satisfaction level’ of GrameenPhone.

2.7 Customer Satisfaction Factors of GP

GrameenPhone is a highly growing mobile company. In mobile

telecommunication industry, there are direct and indirect factors that influence customer

satisfaction. I tried to focus on the most important factors that influence customer

satisfaction at GrameenPhone.

2.7.1 Airtime

Airtime is the core offering of GrameenPhone. So, quality of communication,

network availability etc. are the most important customer satisfaction factors. Quality of

airtime depends on the ratio of subscribers and transmission base stations. If the numbers

of subscribers are increased without developing the network, quality of airtime goes

down.

44


2.7.2 After Sales Services

After sales service is one of the very important factors in the mobile

telecommunication industry. GP has extensive after sales customer care tools. I would

like to focus on these tools one by one:

2.7.3 Hotline

The centralized Call Management Center in Dhaka is manned by trained

professionals and is opening round-the-clock, responding to subscribers’ queries from all

over the country where GrameenPhone has its coverage. GrameenPhone Ltd has recently

introduced a single dedicated hotline number 121 for all of its subscribers to provide

instant service. At present there are more than 450 dedicated and energetic employees

are working to provide instant over phone service to the subscribers. Call Management

Center is well equipped with state of the art software’s and other important tools through

which most of the problems of the subscribers can be solved instantly. Call Management

Center remains open 365 days a year and 24 hours a day.

Recently GrameenPhone introduced dialect based hotline for the first time in the

region, to provide more customized service to its subscribers. Through this innovative

service GP subscribers can communicate with the Customer Managers at their own

dialect. At present GP provide services through all the major dialects of the country-

Chittagong, Sylhet, Rajshahi, Khulna, Barisal and Noakhali.

2.7.4 Interactive Voice Response (IVR)

This is a newly introduced service by GrameenPhone. This is a automated hotline

service. GP subscribers need to dial 121 to reach this service. After that s/he can get

45


information regarding bill, usage, credit policy, bank name that receives GP’s bill, and so

on by choosing different options. Subscriber needs to pay TK 2 per minute for using the

IVR.

2.7.5 GrameenPhone Centre (GPC)

GrameenPhone Center (GPC) is the most recent innovation of GrameenPhone

with the aim to provide all kinds of mobile phone related services to its subscribers. For

the first time in Bangladesh subscribers will get both SIM and handset related services

from the GrameenPhone Centers. So far GrameenPhone introduced 39 well decorated

GPC in the country. All these GPC are not only providing after sales services but also

working as the main sales channel of the company. Within each GPC there is a separate

section allocated for selling and repairing handsets at an affordable cost. GrameenPhone

Centers are open from 08:00 AM to 08:00 PM everyday (365 day).

2.7.6 GrameenPhone Service Desk (GPSD)

Previously people at the rural areas had to come in the major cities to get

customer service, which is a real hassle and time consuming process for them. To solve

this problem GrameenPhone introduced Service Desk with a vision to provide service at

the rural and remote areas. At present GrameenPhone have total 607 Service Desk

around the country through which it provide service at grass root level. All these GPSD

remain open from 09:00 AM to 05:00 PM in five days a week.

2.7.7 Customer Communication

The centralized Customer Communication located in Dhaka, handles written

requests of subscribers, both verbally and in writing 7 (seven) days a week from 8 AM to

8 PM. Customer Communication deals with all sorts of written complain received

through fax, letter by post and e-mail. It also builds relationship with the valued

subscribers on a regular basis. The major responsibility of the unit is to maintain

46


relationship with the high users and ensure that the present subscribers are not going to

switch to other operator.

2.7.8 Travelers To Customer

“Travelers to Customer” is another recent addition of service in Customer

Service Department which is also the first time of its kind in the country. The major

responsibility of this unit is to provide service at the customer’s doorstep with the slogan

of “Let’s not expect the customers to travel to get the service rather let service

travel to the customers”. Currently it’s providing service in the major cities of the

country and to the high volume users of GrameenPhone.

2.7.9 Outbound Calling Center

Outbound Calling Center is another addition of innovative service of Customer

Service Department. A group of young, energetic and well trained employees are

working in Outbound Calling Center and they are responsible to call back the subscriber

to get feedback about the service quality. One of the major responsibilities of the unit is

to identify all the dissatisfied customer and try to bring them back so that they stay with

GrameenPhone. Moreover the unit is also responsible to provide service to all those

subscribers who have repeatedly accessed hotline, with the same kind of problem. In this

way outbound calling center plays a major role in holding the existing subscribers.

2.7.10 Corporate Customer Center

The Corporate Customer Center aims to provide quality customer service to the

country’s preferential business customers. A professionally trained team is dedicated to

provide After Sales Services and Solutions customized to the need of the business

customers and initiate pro-active visits as a part of routine contact to look into the needs

47


with an aim to build long-term professional relationships. Their professional customer

care team is available to help seven days a week, 365 days of the year - whether for

general queries, or to assist with any problems subscribers may possibly face. Their

dedicated relationship managers are assigned to provide personalized service right from

the beginning of the relationship.

2.8 Conducting a Survey

I developed my questionnaire (enclosed in the APPENDIX) mainly focusing on

the customer satisfaction factors of GrameenPhone. There were ten closed-ended

questions. I kept one open-ended question to better understand the gap between

customers expectation and satisfaction level.

My topic of this project was ‘Assessing Customer Satisfaction of

GrameenPhone’. As I aimed to assess the satisfaction level, I only surveyed the ‘users’

of GrameenPhone.

The sample size was 100. I went for random sampling. But I picked the sample

mainly from Dhaka Division. In the next part, I have represented my survey findings.

48


2.9 Presenting the Survey Results

49


1. I am using GrameenPhone because it is providing best network

coverage

Strongly Agree 23%Agree 61%Neither Agree nor Disagree 13%Disagree 3%Strongly Disagree 0%

50


23%

61%

13%

3%0%

0%

10%

20%

30%

40%

50%

60%

70%

Strongly Agree Agree

Neither Agree nor Disagree Disagree

Strongly Disagree

Analysis:

CommentsStrongly Agree

AgreeNeither

Agree nor Disagree

DisagreeStrongly Disagree

Total

Degree 5 4 3 2 1 Cust. Response 23 61 13 3 0 100

Weight 115 244 39 6 0 404

Total sample people: 100 Company Standard : 4

51


Survey outcome: = 4.04 (Survey Outcome = Total Weight / total sample)

So, the difference is = (4.04 – 4) = 0.04 [Positive]

Resources:

Grameenphone has very strong network coverage over the country. It has more

than 6000 BTS (Network tower). There are more than 1500 employees (among the 5000)

are directly involved with this concern and more 3500 are involved from the third party.

Causes of efficiency:

1. Subscribers are getting smooth network coverage all over the country

2. More than 6000 BTS ( Network Tower) are available al over the country

3. Grameenphone is providing highest priority on there network coverage

4. GP is providing highest budget on network connectivity purpose.

5. GP is following decentralized network follow-up model.

Recommendation:

Though, we have got positive response after all the variance is not focusing a high

attitude on this matter. So, I think GP has some thing to do on it.

1. Need to allocate the Network towers according to volume of users.

2. Need to increase the capacity with up-growing subscribers.

3. Need to give-up equal eyes to the both rural and urban area

4. Need more investment for this concern

5. Arranging some awareness program for the subscribers regarding unnecessary

network traffic.

2. I am using GP mobile as it has additional features in comparison to

other operators.


52


19%

37%

29%

15%

0%

0%

5%

10%

15%

20%

25%

30%

35%

40%



Strongly Disagree

Analysis:


AgreeNeither

Agree nor Disagree


Total


Weight 95 148 87 30 0 360

53




So, the difference is = (3.6 – 4) = - 0.4 [Deficit]

Resources:

GP has a lot of additional features with its main telephony service. Some common

features are-

1. EDGE

2. Flexi load Facility

3. Balance Transfer

4. SMS & MMS

5. Bills Pay ( Electricity bill payment facility for Chittaging area)

6. Value Added Services

7. Push Pull Services

8. EISD ( Economic International Call )

9. GPWAP

10. CUG ( Common user group)

11. Friends and family facility.

12. Voice Mail and Voice SMS

13. Miss call Alert service

14. Welcome tune

Causes of deficit:

1. Subscribers are not getting smooth service due to traffic of server

2. Subscribers are not enough aware regarding all basic services

3. Most of the features are contains different level of tariff

54


4. All features are not available for all products

5. Some features are not user friendly (Features are English language basis that is

quit difficult for uneducated users)

Recommendation:

1. Need to increase the server capacity with the increasing number of subscribers

2. Need to arrange more awareness program regarding those basic features.

3. Need to reduce the tariff of basic features up to a convenient level.

4. All Basic features should be provided to all GP subscribers

5. Need to introduce some flexible system to avail basic features (like GP may

introduce Bangla base key word regarding most commonly used features)

3. The Package price (current) of GP for different packages is

affordable.


55


4%

49%

13%

23%

11%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%



Strongly Disagree

Analysis:


AgreeNeither

Agree nor Disagree


Total


Weight 20 196 39 46 11 312


56



So, the difference is = (3.12 – 4) = -0.88 [deficit]

Resources:

GrameenPhone has more six packages for general subscribers and also four

special packages considering different circumstance. Here I would like to introduce the

packages with its current price-

General Packages:

1. Smile M2M Prepaid (Price tk 150)

2. Smile PSTN Prepaid (Price tk 300)

3. Djuice Prepaid (Price tk 150)

4. Xplore 1 Postpaid (Price tk 500)

5. Xplore 2 Postpaid (Price tk 1700)

6. GPPP Postpaid (Price tk 500)

Special Packages:

1. Business solution (Prepaid) (Price is not defend)

2. Business solution (Postpaid) (Price is not defend)

3. Village Phone (Postpaid) (Price is not defend)

4. GP Dear (Postpaid) (Price tk 150, only

for the crown subscribers)

Causes of deficit:

Though now a day GP is offering a completive price for its packages but subscribers

have negative mentality for their previous experience.

57


1. People are preserving negative past experience regarding this mater.

2. Other operators are providing comparatively less price for their packages.

3. Other operators are knocking less price concept to the subscribers.

4. Sometimes the forecasters of GP are not taking efficient decisions timely.

5. GP is following Authorized dealership (who are committed to follow some roles

and regulations) policy to sale their product.

Recommendation:

1. GP should to arrange some awareness program regarding less price sensitivity.

2. The product distribution system should be more flexible and soft.

3. The forecasters need to be more efficient and market oriented.

4. Price of packages should to reduce up to a margin level of subscribers’

expectation.

5. Need to arrange some program to change the subscribers’ mentality regarding this

concern.

4. I am satisfied with the service (quality of airtime and network

availability) of GP.

Strongly Agree 11%Agree 46%

58


Neither Agree nor Disagree 23%Disagree 13%Strongly Disagree 7%

11%

46%

23%

13%

7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

1Strongly Agree Agree


Strongly Disagree

Analysis:


AgreeNeither

Agree nor Disagree


Total


59


Weight 55 184 69 26 7 341




Resources:

Though, GrameenPhone has good network coverage over the country with more

6000 BTS (Network tower) and a good number of manpower for this concern after all it

has got quit low degree for this concern.

Causes of deficit:

1. Subscribers are not getting smooth network support all over the country

2. Capacity is not sufficient considering the total number of subscribers.

3. Network traffic is increasing due to unusual and more voice call tendency.

4. Lack of concentration on this concern

5. Different frequency for urban and rural area.

Recommendation:

1. Need to allocate the Network capacity according to the density of subscribers.


3. Need to give-up equal eyes to the both rural and urban area


5. Need to arrange some awareness program to reduce unnecessary practice (Like-

miss call tendency) on network.

5. Whenever I want to make GP connectivity, I can reach then.

Strongly Agree 27%Agree 57%

60


Neither Agree nor Disagree 11%Disagree 5%Strongly Disagree 0%

27%

57%

11%

5%

0%

0%

10%

20%

30%

40%

50%

60%



Strongly Disagree

Analysis:

61



AgreeNeither

Agree nor Disagree


Total


Weight 135 228 33 10 0 406



So, the difference is = (4.06 – 4) = .06 [Positive]

Resources:

GrameenPhone has very strong network coverage over the country. It has more

than 6000 BTS (Network tower). There are more than 1500 employees (among the 5000)

are directly involved with this concern and more 3500 are involved from third party.


1. Most of the Subscribers are getting smooth network coverage all over the country

2. More than 6000 BTS ( Network Tower) are available al over the country

3. GrameenPhone is using both 900 and 1800 GSM Band for its network

4. GP is providing highest budget on network connectivity purpose.

5. GP is following decentralized network follow-up model.

Recommendation:



1. Need to allocate the Network towers according to density of users.


3. Need to give-up equal concentration on both rural and urban area


5. GP should to increase more GSM 1800 Band for its network purpose

6. After sales service of GP is satisfactory.

62



28%

53%

13%

4%2%

0%

10%

20%

30%

40%

50%

60%



Strongly Disagree

Analysis:

63



AgreeNeither

Agree nor Disagree


Total


Weight 140 212 39 8 2 401



So, the difference is = (4.01 – 4) = .01 [Positive]

Resources:

GrameenPhone has a good arrangement for after sales service. There are more

than 604 GPSD (GrameenPhone) and 67 GPC (GrameenPhone center) all over the

country and 121 dedicated 24 hrs hot line for all subscribers.


1. Subscribers are getting smooth after sales service all over the country

2. GrameenPhone has a lot of after sales service point for its subscribers

3. There are more than 2000 employees are directly involve with this concern

4. GrameenPhone also provides home service for its crown subscribers.

5. GrameenPhone also has a 24 hrs dedicated hot line for all subscribers.

Recommendation:



1. GPSD should have on service 7 days in a week

2. Need to open more GPSD considering first point of after sales service.

3. Need to reduce the complexity for after sales service

4. Need friendly attitude of the customer managers towards the subscribers

5. Need to provide smooth access of 121 hot line to gate over phone service

64


7. GP hotline is very helpful in meeting my queries and other

needs.


9%

26%

24%

23%

18%

0%

5%

10%

15%

20%

25%

30%



Strongly Disagree

65


Analysis:


AgreeNeither

Agree nor Disagree


Total


Weight 45 104 72 46 18 285



So, the difference is = (2.85 – 4) = -1.15 [Deficit]

Resources:

GrameenPhone is offering a 24 hrs and 365 days hot line service for its

subscribers and there are more that 800 employees are providing this hot line service.

Different local dialect are (like- Chittagong, Barishal , khulna, Rajshahi, Khulna,

Noakhali and sylhet) available here beside the Bangla and English for its subscribers

flexibility. It also has a healthy IVR system to get the automated updated regarding GP

Causes of Deficit:

1. Subscribers are getting smooth access in 121 hot line.

2. To get the 121 Hot line service there is a charge tk 2/min (Without vat)

3. Some times subscribers are hanged on queue though it consumed charge.

4. Sometimes subscribers didn’t gate proper service by over phone

5. Because of IVR system users need to press different option to reach 121 support.

Recommendation:

The 121 hot line is most commonly used dedicated hot line for the subscribers of

GrameenPhone. But users are not satisfied over its support. So GrameenPhone could

improve in the following side to get better customer response.

1. Need to remove the complexity of 121 over phone hot line response.

2. Tariff for 121 hot line should to reduce up to a convenient level.

3. Need to reduce the complexity for after sales service

4. Need friendly attitude of the customer managers towards the subscribers

5. Need to provide smooth access of 121 hot line to gate over phone service

66


8. Tariff of GP connection is affordable.

Strongly Agree 3%

Agree 18%

Neither Agree nor Disagree 14%

Disagree 37%

Strongly Disagree 28%

3%

18%

14%

37%

28%

0%

5%

10%

15%

20%

25%

30%

35%

40%



Strongly Disagree

67


Analysis:


AgreeNeither

Agree nor Disagree


Total


Weight 15 72 42 74 28 231



So, the difference is = (2.31 – 4) = -1.69 [Deficit]

Resources:

Presently GrameenPhone is offering different level of tariff plan for different

packages. Now a day this tariff plan is continuing in between TK 0.25 to TK 2.00. Here I

would like to disclose the tariff plan of Smile and Xplore(most commonly used package)

Smile: TK 0.60 12:00am to 6:00am Only for GP No

TK 1.20 9:00 am to 4:00 pm Any number

TK 2.00 Except the pre-mentioned time, Any number

Xplore: TK 0.60 12:00am to 7:00am Only for GP No

TK 1.50 7:00 am to 12:00am Any number

Causes of Deficit:

1. Subscribers are preserving negative tendency for previous higher call rate

2. In general GrameenPhone does not provide the lowest tariff of tariff margin

3. GP also has a tendency not to provide the lowest call rate to its subscribers

4. There does have any awareness advertisement regarding its tariff plan

5. Sometimes GP retrieves its promotional less tariff to previous tariff.

Recommendation:

Tariff has a great sensitivity for the economic users. So GP may consider the following-

1. GP may provide such margin tariff thus others can’t make revise advantages

2. GP might arrange awareness program regarding its current tariff.

3. The mind of brand managers should to be subscribers oriented.

4. GP should to design their tariff according to market expectation.

5. GP should to offer a unique tariff plan for any no. (All GP & other operators)

68


9. GrameenPhone is very sincere in providing me quality service

on a continuous basis.


6%

22%

19%

34%

19%

0%

5%

10%

15%

20%

25%

30%

35%



Strongly Disagree

Analysis:

69



AgreeNeither

Agree nor Disagree


Total


Weight 30 88 57 68 19 262




Resources:

GrameenPhone has different types of arrangement to prove continuous base

service to its subscribers. Like more 600 GPSD (at different thana level), more 70 GPC

(in district level). 121 hot line (24 hrs, 365 days), a strong IT and Technical team.

Causes of Deficit:

1. Subscribers are getting smooth network service all over the country

2. Subscribers are not happy over tariff and 121 connection concern

3. GPC, GPSD & 121 hot line takes more time to solve a problem

4. Sometimes subscribers need to maintain queue to get the service.

5. Concentration level to all subscribers has fall due to increase the no of subs

Recommendation:

A positive customer reaction is highly appreciable for a service providing company.

But a GP is holding a very low marking for this area. So GP may do the following-

1. GP should to concentrate on its subscriber’s expectation

2. Should reduce the complexity of its service related concern.

3. Make sure the capacity of quality service with increasing the no subscribers

4. GP should to ensure a minimum time to solve a particular problem.

5. Need to increase a friendly attitude to solve the problems

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10. If another company comes up with the same features & facility,

then still I will remain with GP.


12%

23%

29%

26%

10%

0%

5%

10%

15%

20%

25%

30%



Strongly Disagree

71


Analysis:


AgreeNeither

Agree nor Disagree


Total


Weight 60 92 87 52 10 301



So, the difference is = (3.01 – 4) = -.99 [deficit]

Resources;

Here, features & facility contain the available network facility tariff, basic

features for particular packages & after sales services

Causes of Deficit:

1. General tendency of users to find something from a new product.

2. Some users believe to break the monopoly tendency of GP

3. Some users believe that new operator would offer more facility

4. Some users also believe that new operator will apply lower tariffs.

5. GP does not have a strong policy to make loyal its subscribers.

Recommendation:

Customer loyalty is great concern for a service oriented company. But GP didn’t gate

a good marking regarding this concern. More 36 people has swing tendency if they got

enough facility by other operator. So, GP may do the following to increase the loyalty.

1. GP has to increase the facility according to the market expectation.

2. Tariff need reduce up to market completive level.

3. Should to gear up the service level by which people become satisfied by it.

4. Have to arrange more promotional offer frequently thus subscriber become loyal

5. Need to increase a friendly attitude toward the subscriber suggestion.

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3. Analysis of survey

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3.1 Applying the GAP Model of Service Quality

Customer perceptions are subjective assessments of actual service experience.

The following figure correspond to two concepts: customer expectations and customer

perceptions--that play a major role in service marketing. Customer expectations are the

standards of or reference points for performance, against which service experiences are

compared, and are often formulated in terms of what a customer believes, should or will

happen.

GAP

Figure: The Customer GAP

The sources of customer expectations consists of market controllable factors

(such as pricing, advertising, sales promises) as well as factors that the marketer has

limited ability to affect (innate personal needs, word-of-mouth communications,

competitive offerings). In a perfect word, expectations and perceptions would be

identical: customers would perceive that they receive what they thought they would and

should.

Customer satisfaction is well depended on how successfully the companies can reduce or

close the gap, as shown in the above figure. In broad sense, the process of closing the

customer gap can be subdivided into four ‘company gaps,’ discrepancies within the

organization that inhibit delivery of quality service.

Company gap 1: Not knowing what customers expect

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Expected Service

Perceived Service


Reasons:

Inadequate marketing research orientation.

Lack of upward communication.

Inefficient relationship focus.

Company gap 2: Not selecting the right service designs

and standards

Reasons:

Absence of customer-driven standards.

Inadequate service leadership.

Poor service design.

Company gap 3: Not delivering to service standards

Reasons:

Deficiencies in human resource policies.

Failure to match supply and demand.

Customer not fulfilling roles.

Company gap 4: Not matching performance to promises

Reasons:

Ineffective management of customer expectations.

Over promising.

Inadequate horizontal communication.

Coming back to my project, I tried to find out the four company gaps of GrameenPhone,

considering the data that I have attained through survey and secondary research.

GrameenPhone Company Gap 1:

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Not knowing what customers expect

GrameenPhone does extensive marketing research on a continuous basis.

Moreover, there is always bottom-up communication, which enables GP to better

understand what customers expect; because the low-end officers deal the customers and

they better understand what customers expects.

So, I reach to the conclusion that GrameenPhone has no ‘company gap 1’ at present.


Not selecting the right service designs and standards

From the survey results and my personal observations, I found few areas that I

identified as gap 2.

Billing rate of GrameenPhone is very high in the context of Bangladesh.

Although it is not playing disturbing role at present, it can emerge as a problem

if any competitor reduces its billing rate keeping other features intact.

There is a high demand for BTTB accessible mobile phones. But currently this

product is not offered by GrameenPhone. As the competitors are offering this

product, GP is loosing its market share.

Improper quality of airtime and network availability is also a problem for

GrameenPhone. But as the experts give opinion, it is not abnormal in a network

which is going through a massive development process.


Not delivering to service standards

76


This gap is also significant at GrameenPhone. This gap is very important, because it

occurs when a company sets a standard but not deliver as per the standard. From my

observation, some areas of gap 3 are:

It takes too much time to reach the hotline at the pick hours (Roughly 06 PM to

11 PM). As the subscribers need to pay TK 2.30 per minute even when they are

waiting in the Que., it is a source of dissatisfaction for them.

It is expected to get good and polite behave from the hotline officers. But, as

found from the survey results, the subscribers of GrameenPhone do not get

appropriate behavior form the hotline. This can be an alarming problem for GP.

Because it is very easy to lose a customer in a competitive market.

Most of the GP subscribers are not well educated. They are not equipped

enough to handle the mobile phone appropriately. This lack of knowledge of the

subscribers creates problems for GrameenPhone. They assume their inability as

GP’s poor service.


Not matching performance to promises

GrameenPhone does not ‘over promise’ to its subscribers. It also has a

good horizontal communication between its important functional

divisions like Sales & Marketing, Commercial Division, and Technical.

Still, I find some gaps under these criteria:

GrameenPhone is not successful to build a positive and friendly image in their

subscribers’ minds. Subscribers think that GP is not sincere about solving their

needs. Moreover, GP management is not successful enough to educate their

subscribers properly. These factors are increasing the gap 4 according to my

observation.

3.2 Recommendations to close the GAPs

77


I designed my recommendations aiming to close the gaps between customers’

expectations and perceptions regarding GP service. My recommendations are:

GrameenPhone should provide all the connections with access to BTTB. It is

perceived as an essential feature by a significant portion of the subscribers.

GP should earn flexibility to be able to reduce the bill, if necessary. But

currently they should not reduce the billing rate as no one is offering lower than

them.

There should be more GPC at the southern side of the capital city.’

Network development should be steady. GP should never sell connections

excess to its capacity.

Capacity of the hotline should be increased in the pick hours.

The Customer Managers of the hotline should be well trained to improve their

behavior and quality of service.

Different programs should be taken to educate the subscribers regarding

different essential features of mobile phone.

GrameenPhone should take extensive program to build a positive image among

their users. In this process they should try to eliminate the misconceptions of the

users regarding GP.

E. Limitations of the Study

78


The basic strategy of GrameenPhone is widening their market through their

emerging country-wide network. As a result of this strategy, the subscribers are from

different segments or from different income levels. Moreover, the subscribers are from

all over Bangladesh and scattered all over the country.

But the sample that I used to conduct my survey was mostly from Dhaka

division. So, it was not a perfectly representative sample.

Moreover, it was not possible to get all required internal information of the

company as these are treated as confidential company information.

F. Conclusion

79


I would like to start the conclusion part by restating the

hypothesis of my study. My hypothesis was, “Although GrameenPhone

is leading the market of mobile telecommunication industry with a

sharp distance, and their customers are not fully satisfied with the

company’s services. If GP does not take care of these dissatisfactions

and other operators in the market with similar offers, it will be difficult

for GrameenPhone to keep the current market share intact.” From the

analysis of the survey results and GAPs Model, it is clear that GP’s

subscribers are dissatisfied with different services of the company.

Moreover, the analysis indicated that the subscribers of

GrameenPhone are not loyal toward the company. They clearly

pointed that other operators are providing similar offer, they are not

hesitating to switch. So, my hypothesis is proved as a valid one. But

there was a condition in my hypothesis: ‘If GP does not take care of

these dissatisfactions...’. Therefore, I recommended some courses of

action. My observations make me believe that If GP follows these

recommendations; it will enable them to achieve a sustainable distinct

competitive advantage and to run smoothly with loyal subscribers &

market leadership.

G. BG. BIBLIOGRAPHYIBLIOGRAPHY

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1. Earl Naumann and Kathleen Giel, Customer Satisfaction

Measurement and Management

2. V. A. Zeithmal and Mary Jo Bitner1996, Service Marketing,

International Edition, The McGraw-Hill Companies, Inc., New York.

3. T. A. J. Nicholson, Measuring Consumer Service and Managing

Delivery.

4. James Brian Quinn, Jordan J. Baruch and Penny Cushman

Paquette1987, Technology in Services, Scientific American

5. Image Guide Book & Intranet of GrameenPhone

6. Divisional Annual report (Customer Management Division)-July-2005

7. Charles W.L.Hill and Gareth R. Jones, Strategic Management

8. Cooper & Schindler, Business Research Method

9. Newsletter of GrameenPhone Limited

10.Web Site: www.grameenphone.com

11.Annual Report 2001-06, GrameenPhone Ltd

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http://www.grameenphone.com/


82

A Sample

Questionnaire


Age: Sex:

Income: Occupation:

For How long (years) you are using GP? (Please Circle) <1 1 2 3 4

Do you have any other mobile? Yes No If yes, please name the other operator(s):

This questionnaire has been designed to conduct a research on ‘Assessing Customer Satisfaction of

GrameenPhone’ to fulfill the course requirement for Internship, under the BBA Program of Daffodil

International University. Your active participation will enable us to conduct the research work successfully.

(The scale rates from strongly agree to strongly disagree)

1. I am using GrameenPhone because it is providing best network coverage

5 4 3 2 1

2. I am using GP mobile for its additional features in comparison to other operators.

5 4 3 2 1

3. The Package price of GP for different packages is affordable.

5 4 3 2 1

4. The Quality of after sales service is satisfactory.

5 4 3 2 1

5. Whenever I want to have a GP connection, I can get it.

5 4 3 2 1

6. After sales service of GP is satisfactory.

5 4 3 2 1

7. GP hotline is very helpful in meeting my queries and other needs.

5 4 3 2 1

8. Tariff of GP connection is affordable.

5 4 3 2 1

9. GrameenPhone is very sincere in providing me quality services on a continuous basis.

5 4 3 2 1

10. If another company comes up with the same features, I will still remain loyal towards

GP.

5 4 3 2 1

Additional Comment(s):

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customer satisfaction of grameen phone

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