1.

Introduction

Aktel is a dynamic and leading countrywide GSM communication solutions

provider. It is a joint venture company between Axiata and NTT DoCoMo, Japan. Aktel
was officially commenced its operations in 1997 among the pioneers GSM mobile
telecommunications provider in Bangladesh. In this report, We want to know the sales
promotional activitivities of AKTEL.

2. Background of the study

It has started its commercial operation in Dhaka as a Global system for mobile
communication (GSM) 900 cellular operators on 15th November 1997. Moreover, Aktel
has commenced its operation in Chittagong on March 26, 1998. Aktel is the market
follower in telecommunication service in Bangladesh having more than 1 million
subscribers and is controlling approximately 23% of the market share. As the
socioeconomic status of the country does not provide further possibilities to enhance
the growth of the industry, as a market follower, Aktel should strive to retain its existing
subscribers and penetrate other operator’s subscriber. Therefore, there is an
emergence of studying the related facets of the customer loyalty in the context of
Bangladesh GSM telecommunication system for Aktel to retain and increase its market
share.

Hence, in the current study, the cutomers try to compare the sales promotional activities
with other operators.

Vision:

To be a leader as a Telecommunication Service Provider in Bangladesh.

Mission:

Aktel aims to achieve its vision through being number ‘one’ not only in terms of market
share, but also by being an employer of choice with up-to-date knowledge and products
geared to address the ever changing needs of our budding nation.
Theme:

Aktel always strives to uphold the dictum ‘Customer First’.

Quality Policy:

Aktel is committed to achieving leadership in customer satisfaction by continually

improving its processes, products and services to ensure they consistently exceed
customers’ requirements. We will develop and implement technology and infrastructure
that enable us to be clearly ahead in Bangladesh and to enhance the mobility
experience of our customers.

Customer Satisfaction
Customer satisfaction is becoming an increasingly salient topic in many firms and
in academic research (Söderlund, 1998). Anderson et al. (1994) affirmed that
satisfaction is a post consumption experience which compares perceived quality with
expected quality. Correspondingly, Oliver (1996) defines satisfaction as an emotional
post-consumption response that may occur as the result of comparing expected and
actual performance (disconfirmation), or it can be an outcome that occurs without
comparing expectations

On the other hand, some previous researchers have explained customer

satisfaction in terms of expectation. They define if expectations are exceeded by
performance; satisfaction is generated (Churchill & Surprenant, 1982; Bearden & Tell,
1983; LaBarbera & Mazursky, 1983). Equally, Buswell (1983) identified customer
satisfaction as a combination of five key attitudes. Those are knowledge of staff,
communications, expertise of staff, willingness to lend and branch design.
Consequently, Berry, Zeithaml, and Parasuraman (1985) argued that customer
satisfaction can be defined as the attributes of search, experience, and credence. Yi
(1990) believes customer satisfaction should mean evaluation, symbolizing a type of
consuming experience. Avkiran (1994) recognized customer satisfaction by customer
conduct, credibility, communication, access to teller services.

Simultaneously, according to Anderson and Fornell (1994), customer satisfaction

is the term which may lower the chance of customers being driven away due to the poor
quality of products or services. Fornell (1992) noted that the more satisfied customers
are the one that are greater in their retention while, Anderson and Sullivan (1993) added
that satisfied customer would intend to repeat purchase which would enhance
organizations’ profitability. In association with this Jones and Sasser (1995)
acknowledged that completely satisfied customers are those who are much more loyal
than merely satisfied customer

Spreng, MacKenzie, and Olshavsky (1996), alternatively, defined satisfaction as

the emotional reaction to a product or service experience. Oliver (1997) defined
satisfaction as the customer's fulfillment response. It is a judgment that a product or
service feature, or the product or service itself, provides a pleasurable level of
consumption- related fulfillment.

The most common interpretations reflect the notion that satisfaction is a feeling
which results from a process of evaluating what was received against that expected, the
purchase decision itself and the fulfillment to needs or want (Armstrong & Kotler, 1996:
Berkowitz, Kerin, Hartley, & Rudelius, 1999). Kotler (1999) also noted that satisfaction
is a function of perceived performance and expectations which identifies feelings of a
person resulting from comparing a products perceived performance in relation to his or
her expectations.

Wong (2000) believes that a customer’s total satisfaction is an emotional

perception. Evaluation is based on the customer’s reaction from using the product or
service. Customer satisfaction then is a total satisfaction that leaves a good perception.
The perception of this wholeness is very similar to the meaning of customer value
package brought up by Fredericks and Salter (1995). The customer value package
includes: price; product quality; service quality; innovation; and corporate image.
Moreover, Martensen, Grùnholdt, and Kristersen (2000) also discovered that
expectation, product quality, and corporate image are three facilitating factors in
ensuring customer satisfaction.
 Hackl and Scharitzer (2000) have identified customer satisfaction as economic
goalsand have considered customer satisfaction as a prerequisite for customer
retention and loyalty, and obviously that tend to help in realizing economic goals like
profitability, market share, return on investment
Sureschandar et al. (2002) introduced different approach of customer satisfaction
and defined customer satisfaction as multidimensional construct. According to Bitner
and Zeithaml (2003), satisfaction is the customers’ evaluation of a product or service in
terms of whether that product or service has met their needs and expectations. The
researchers reveal that satisfaction can as well be viewed as contentment, pleasure,
delight, and relief. Thus they noted customer satisfaction as a dynamic and moving
target that may evolve over time, influenced by variety of factors.
Guenzi and Pelloni (2004) use the following definition of satisfaction in their
study: “Overall satisfaction is the consumer’s dissatisfaction or satisfaction with the
organization based on all encounters and experiences with that particular organization”
(Bitner & Hubbert, 1993). Fe and Ikova (2004) added that the perception of the word
satisfaction influences the activities which we conduct to achieve customer satisfaction.
Boselie, Hesselink, and Wiele (2002) defined satisfaction as a positive, affective
state resulting from the appraisal of all aspects of a firm’s working relationship with
another firm. This definition purported that satisfaction (understood as affective) can be
contrasted with an objective summary assessment of outcomes – thereby forming a
target-performance comparison mechanism. Therefore, the appropriate definition of
customer satisfaction for this study would be the one by Boselie et al. (2002).

Customer Loyalty

The importance of loyalty has been widely recognized in the marketing literature
(Oliver, 1999; Samuelson & Sandvik, 1997; Howard & Sheth, 1969). According to Duffy
(2003), loyalty is the feeling that a customer has about a brand which ultimately
generates positive and measurable financial results. Soderlund (1998) drew on the
concept of loyalty as the extent to which the customer intends to purchase again from
the supplier who has created a certain level of satisfaction. Loyalty, in one or more of
the forms noted above, creates increased profit through enhanced revenues, reduced
costs to acquire customers (Sharp & Sharp, 1997), lower customer-price sensitivity
(Krisnamurthi & Raj, 1991), and decreased costs to serve customers familiar with a
firm's service delivery system (Reicheld & Sasser, 1990).

Customer loyalty represents the repeat purchase and referring the company to
other customers (Heskett, 1994). Improvements in retention and increasing in the share
of the company are the obvious economic benefit of customer loyalty. According to
Feick and Lee (2001), customer loyalty has been measured as the long term choice
probability for a brand or as a minimum differential needed for switching. Loyal
customers are less likely to switch because of price and they make more purchases
than similar non-loyal customers (Reichheld & Sasser, 1990). Oliver (1997) viewed
customer loyalty as a deeply held commitment to rebuy or repatronize a preferred
product or service consistently in the future, despite situational influences and marketing
efforts having the potential to cause switching behavior.

Customer loyalty reduces marketing costs and that the relative costs of customer
retention are substantially less than those of acquisition (Fornell & Wernerfelt, 1987).
Hallowel (1996) characterize customer loyalty as the relationship a customer maintains
with the seller after the first transaction.

Customer loyalty is often referred to as a purchase behavior (Griffin, 1996). On

the other hand, customer loyalty is approached as an attitudinal construct. Attitude
denotes the degree to which a consumer’s disposition towards a service is favorably
inclined (Azjen & Fishbein, 1980). In addition to attitude, it has been argued that loyalty
may also be based on cognition (Lee & Zeiss, 1980). In its cognitive sense, customer
loyalty is frequently operationalised as a conscious evaluation of the price/quality ratio
or the willingness to pay a premium price, or alternatively price indifference (Fornell,
1992; Zeithaml et al., 1996).

Jacoby and Kyner (1973) elaborated that the definition of loyalty includes six
necessary conditions – that loyalty is the biased (that is, nonrandom), behavioural (that
is, purchase) response, expressed over time, by some decision-making unit (a person
or group of persons), with respect to one or more alternative brands out of a set of such
brands, and is a function of psychological processes (decision-making, evaluative).
 On the contrary, Oliver (1999) argues that customer loyalty is a condition of
strong involvement in the repurchase, or reuse, of a product or brand. This involvement
is strong enough to overcome the situational and competitive influences which might
drive a variety seekers or a switching behavior. This condition of customer loyalty is
reached through four sequential stages: cognitively loyal (direct or indirect knowledge
about the brand), affective loyalty (repeated confirmations of his expectations), conative
loyalty (high involvement that is a motivating force), and action loyalty (‘desire to
overcome’ every possible obstacle that might come in the way of the decision to buy the
brand to which the person is loyal).

On the word of Gremler and Brown (1996) customer loyalty is noted by the
degree to which a customer exhibits repeat purchasing behavior from a service
provider, possesses a positive attitudinal disposition towards the provider, and

considers using only those providers when a need for the service arises.
Correspondingly, Kandampully (2000) stated that a loyal customer is a customer who
repurchases from the same service provider whenever possible, and who continues to
recommend or maintains a positive attitude towards the service provider. In relation
with this, Pong and Yee (2001) is defined as the willingness of customer to consistently
re-patronize the same service provider/service company that may be the first choice
among alternatives, thereby complying with actual behavioral outcomes and attaching
with favorable attitude and cognition, regardless of any situational influences and
marketing efforts made to induce switching behavior.

Zeithaml (2000) affirmed that loyalty is repeated transactions (or percentage of

total transactions in the category, or total expenditures in the category) and can
sometimes be measured quite simply with observational techniques. Furthermore, a
briefer and more specific definition is provided by Anderson and Srinivasan (2003), who
define loyalty in contest of electronic business as the customer’s favorable attitude
toward an electronic business, resulting in repeat purchasing behavior. Loyalty deals
with specific behaviors related to repurchasing the service or product (Durvasula,
Lynoski, Mehta, & Tang, 2004).
 Wong (2004) suggested customer loyalty as a key mediating variable in
explaining customer retention (Pritchard & Howard, 1997) which is concerned with the
likelihood of a customer returning, making business referrals, providing strong word-of-
mouth, as well as providing references and publicity (Bowen & Shoemaker, 1998).

Pearson (1996) defines customer loyalty in term of those customers who hold
favorable attitudes toward the company, commit to repurchase the product/service, and
recommend the product/service to others. Hence, the researchers of the current study
will use the definition of Pearson (1996) to define customer loyalty.

Aktel prepaid:

Aktel Prepaid has everything to offer; a single package that delivers simplicity and
flexibility at the same time. Aktel Prepaid is continuously adding new features and plans
to provide absolute freedom to the customers.

Why Aktel Prepaid?

• Prepaid Kingdom of Aktel offers all its Prepaid customers:

• Single prepaid package with the best rates in the market
• Different tariff plans in one package to meet different types of needs
• Instant, easy & multiple migration facility from one tariff plan to another
• 5 FnF to any operator mobile with one Aktel partner facility
• Full BTCL connectivity with FREE BTCL incoming
• Economy ISD (EISD) facility to call 55 countries of the world by dialing 012
• Extended and simplified refill validity for ease and freedom
• Nationwide EasyLoad facility
• Nationwide Internet connectivity
• All available Value Added Services (e.g. SMS, MMS, GoonGoon, ringtone,
wallpaper, games, animation downloads)

Get a new connection:

• Package price Tk. 148

• Welcome gift of Tk. 25 talk-time upon activation (applicable for any purpose)
• 60 days validity on activation
• Default tariff plan will be Simple (with migration facility)
• Available at Aktel Customer Care, Aktel Care Point & all the mobile outlets
nationwide
Prepaid tariff:

Aktel Package Info Service:

To know your existing tariff plan/ package/ benefits that you are enjoying, just
Dial *140*14# or type P and SMS to 8822

Uddokta Super tariff

 Particulars
TK./min Outgoing 24 hours
To Aktel 0.65
To other Operator 0.65
To BTCL (Local/NWD) 0.65
To International (IDD/EIDD)* Only IDD/E-IDD Charges
Incoming
From any number worldwide
FreePulse
Outgoing
60 sec from 1st minute

*For IDD & E-IDD-15 sec pulse

Note:

• All charges are excluding of 15% VAT

• For BTCL charges, BTCL time Band will be applicable
• Also applicable for Easy Load customers

Particulars TK./min
Outgoing 24 hours
To Aktel 0.97
To other Operator 0.97
To BTCL (Local/NWD) 0.97
To International (IDD/EIDD)* Only IDD/E-IDD Charges
Incoming
From any number worldwide Free
Pulse
1 sec from 1st minute
Outgoing
*For IDD & E-IDD-15 sec pulse

Note:
Postpaid tariff
Aktel Package Info Service:

To know your existing tariff plan/ package/ benefits that you are enjoying, just
Dial *140*14# or type P and SMS to 8822

Out going Voice Any Operator BDT 0.68/min

Calls Aktel To BTCL BDT 0.68/min
Aktel To International Only IDD/E-IDD
(IDD/E-IDD charges) Charges
FnF: Any Operator BDT 0.68/min
FnF: BTCL BDT 0.68/min
Partner Number BDT 0.68/min
Any Operator BDT 1/ SMS
SMS
International BDT 2/ SMS
Connection Price BDT 499
Connection Fee & Credit Limit BDT 300
Others Line Rent BDT 100
Pulse 60 sec

Notes:

• All charges exclusive of VAT. Package price inclusive of VAT

• 68 paisa per call setup charge applicable for all calls under simple plan.
• Line Rent Waived if monthly usage exceeds TK 500 (excluding monthly
subscription fee e.g. Goon Goon subscription fee, Aktel PA etc) or if customer
subscribes unlimited GPRS
• For IDD and E-IDD-15 sec pulse from 1st Minute
 Any Operator BDT 1/min
Aktel To BTCL BDT 1/min
Aktel To International
Out going Voice (IDD/E-IDD charges) Only IDD/E-IDD Charges
Calls
FnF: Any Operator BDT 0.68/min
FnF: BTCL BDT 0.68/min
Partner Number BDT 0.25/min
Any Operator BDT 1/SMS
SMS
International BDT 2/SMS
Connection Price BDT 499
Connection Fee & Credit Limit BDT 300
Others Line Rent BDT 100
Pulse 30 sec
Notes:

All charges exclusive of VAT. Package price inclusive of VAT

• Tk. 1 for Any operator call, 68 paisa for FNF, 25 paisa for partner per call setup
charge applicable under normal plan.
• Line Rent Waived if monthly usage exceeds TK 500 (excluding monthly
subscription fee e.g. Goon Goon subscription fee, Aktel PA etc) or if customer
subscribes unlimited GPRS
• For IDD and E-IDD-15 sec pulse from 1st Minute
• Conditions apply

Sales promotional activities

Reactivate your Aktel connection:

Reactivate and enjoy 65paisa/minute 24 hrs to any mobile

Offer details (Prepaid):

• All Aktel customers (Prepaid & Postpaid) who are not using their connection on
or before Nov 30, 2009
• 60 sec pulse applicable for Local call, 15 sec pulse for International call
• Customers will enjoy this offer within 72 hours of reactivation
• This campaign will be valid till 28th February 2010.
• Prepaid corporate customers are not eligible for this campaign.
• During campaign, migration to other plans will be allowed as per regular rules,
but migration to 65paisa/min [reactivation] will not be allowed.
• Customers will enjoy 65p till 28th Feb. ‘10, after that prepaid mass customers will
be automatically migrated to Super Simple plan and prepaid PCO customers will
be migrated to Super Plan.
• Conditions and VAT apply.

Offer details (Postpaid):

• Additional benefits:
o 40% Bonus talk time on advance payment (Only General and Corporate)
o FREE line rent for 4 months without any usage condition
o FREE SIM Replacement
• 40% bonus (maximum BDT 4,000 once during campaign period) is applicable
only on advance payment not on total payment and customer has to pay all
previous dues ( if any)
• Customer will get 40% bonus on 1 day’s total advance payment (ONLY 1st days
payment will be considered for bonus)
• Free SIM replacement is available ONLY in Aktel Customer Care Centers
• 65p call rate is ONLY applicable for General and PCO customers
• Existing active customers cannot migrate to these rate plans. However,
reactivated customers can migrate to any other existing rate plan.
• Customers will enjoy 65p till 28th Feb. ‘10. After that customers will be
automatically migrated to the lowest available rate plan

Eligibility Check for Reactivation campaign:

• From own number : *140*11#

• From any Aktel number : Type A Aktel number and send to 8050
• Charge: 2.00/ request (15% VAT applicable)
The most affordable connection:

Aktel prepaid connection is now Tk. 148 only!

Conditions & others:

• Welcome gift of Tk. 25 talk-time upon activation (applicable for any purpose)
• 60 days validity on activation
• Default tariff plan will be Simple Plan
• Available at Aktel Customer Care, Aktel Care Point & all the mobile outlets
nationwide
• This offer will be valid until further notice

How to migrate:

• To Normal Plan dial *8999*2#

• To Super Simple Plan dial *8999*3#
• To Extra Simple Plan dial *8999*4#

REFILL and enjoy

INSTANT BONUS every time…

Bonus Validity for
Refill
Amount Main A/c
Amount
(BDT) (days)
(BDT)
101 7.50 30
201 15.00 30
Conditions and others:

• Applicable for Prepaid customers (except Uddokta, EasyLoad and Corporate)

• Bonus usage purpose - Aktel-Aktel voice calls only
• Bonus validity - 3 days (inclusive of receiving date)
• Bonus will be given in TK. value and in voice call dedicated account (Dial
*222*1# to check)
• Bonus will be given instantly for as many times as refill of TK 101, 201 (fixed)
• This offer is valid till further notice.

Empowering Bangladesh:
Empowering Bangladesh

Unbeatable super tariff plan,

65p/min to any operator 24 hours a day,

Who are eligible?

All new and existing Aktel Prepaid Uddokta and EasyLoad customers

Offer Details:

• All Aktel Uddokta and EasyLoad customers will now talk at 65p/min, 24hrs to any
operator.
• New customers will get this offer by purchasing a new connection.
• Existing customers need to migrate by dialing *8999*21# (Standard SMS charge
applicable)
• Package price of Prepaid Uddokta is BDT 500.
• New Prepaid Uddokta customers will get TK.75 talk-time on activation.
• 60 sec pulse from 1st minute for new super tariff plan.
• Customer can get back to regular (97p/min 24hrs to any operator, 1sec pulse)
tariff plan by dialing *8999*20# (Standard SMS charge applicable)
• Customer can get this connection from any Aktel Care Point & Aktel Customer
Care center.
• Customer will be empowered through EasyLoad transfer business and much
more in future.

Corporate social responsibility:

AKTEL is always committed to the society. In fact, 2005 & 2006 were a year of
exploration into Corporate Social Responsibility (CSR) for AKTEL. To actively identify
and start establishing AKTEL as a concerned entity devoted to the development of
many social interests throughout greater Bangladesh based on four core values. These
are enlightened through education, Assure better health, Protect environment and
Fight with poverty.

Award for csr

In recognition of its CSR effort, AKTEL is the first among all mobile phone operators to
win prestigious “Standard Chartered-Financial Express Corporate Social
Responsibility Award-2006”.

2008 Highlights

AKTEL stands besides cold affected people of the city

AKTEL has joined hands with Anjuman-Mufidul-Islam, a hundred year's old civic
organization in distributing bedding & clothing to the underprivileged people of the city.
As part of CSR initiative, Ms. Nora Junita Hussaini, Chief Financial Officer of AKTEL
distributed the bedding & clothing among slum dwellers & orphanages for both boys and
girls at old Dhaka. Other senior functionaries of AKTEL were also present

AKTEL stands besides SOMA

AKTEL recently had commenced for SMS campaign in raising funds for the treatment of
Ms. Soma Akter (17), who is suffering from terminal illness of thalasimia (blood cancer).
Ms. Nora Junita Hussaini, Chief Financial Officer of AKTEL handed over a cheque to
Soma Akter. Other senior functionaries of AKTEL were also present. Expressing her
comments on AKTEL's behalf, Ms. Hussaini wished early recovery of Soma and looked
forward to hear the progress of Soma's on-going medical treatment.

Aktel-Debate Championship ‘08

The 'Aktel Debate Championship ‘08' was

organized by Drishty Chittagong. In the
week long program, 7th inter school
English debate competition and 1st Inter
university English debate competition were
held.
Nine best English medium schools of the
port city Chittagong took part in this
competition including William Carey
Academy, Summerfield School, Bay View
School, Cider International School,
Radiant School, Green Vale School, Chittagong Sunshine School, Oxbridge School and
Gems English Medium School, Mr. Javed Tariq, Head of Corporate Affairs, TM
international (Bangladesh) Ltd., Mr. Masud Bakul, President Dist, Chittagong and Mr.
Saif Chy. General Secretary, Drishty, Chittagong were present the prize giving
ceremony.

Professor Sikander Khan, President, Bangladesh Economics Society Chittagong

chapter, was present as Chief Guest at the award giving ceremony. Mr. Farid Ahmed
Chy. Chief Advisor of Drishty Chittagong presided over the program. Mr. Abul Momen,
Resident Editor of Prothom Alo were also present.
Awards and Recognitions

Standard Chartered - Financial Express Corporate Social Responsibility (CSR)

Awards 2006- for contribution in basic education, primary health, poverty alleviation
and ecological impact.

Aktel has won a prestigious “Standard Chartered - Financial Express Corporate Social
Responsibility (CSR) Award 2006”. The CSR award is introduced to recognize the
organizations in the corporate world that excel in CSR apart from their main line of
business. Bangladesh Bank Governor Mr. Salehuddin Ahmed handed over the award
jointly to Mr. Salahuddin Kasem Khan, former Chairman and Mr. Ahmad Bin Ismail,
former Managing Director of Aktel in the presence of former Finance and Planning
Adviser Dr. AB Mirza Azizul Islam and Economist & Chairman of Award trustee board,
Professor Dr. Wahiduddin Mahmud.