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Group # 04
Group Members:
Rameez Hassan Rana (014)
Muhammad Bilal (019)
Amna Kiran (025)
Sara Khan (101)
PROJECT REPORT ON: PROCESSES A ZONG CUSTOMER FOLLOWS WHEN HE/SHE
SWITCH FROM HIS/HER PREVIOUS NETWORK TO ZONG
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EXECUTIVE SUMMARY
In 2005, the usage of Cellular Mobile Networks increased like tsunami, and from 2008-
2011 it increased by 5% and now the usage percentage is constant i.e., 60.4% of totalpopulation. According to the survey of PTA, among total users of mobile networks, 97%
users are using prepaid package. So we can ignore the percentage of postpaid
customers.
After giving the overview of PTA and prepaid customers, now come to the agenda of
this Project. As ZONG (CMPAK) is the latest cellular network in Pakistan (despite of the
fact that it merges and come up with new name), that¶s why we are focusing on it in
various aspects;
y Quality of Services (QOS) in the perception of their customer.
y Primarily our focus on those customers who switched their networks to ZONG,
because those customers can give and provide a broad picture of ZONG about
QOS of ZONG
Voice Quality of ZONG
SMS success Rate
Call Completion Ratio
Call Connection Time
End to End SMS delivery
Customer complaints
This study also can help us in determining the psychology of switch customers whether
they switch their old network with reason or without any reasons, it also can determine
whether they switch from ZONG or not (High Dogmatism/Low Dogmatism Personality )?
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OBJECTIVES
Our objective of this study is to;
y Implement the concepts of Consumer Behavior on our study like:
Involvement in this purchase
Evaluation of alternatives
Internal search vs. External search
Arousal of motives
A Trio of needs.
y Check the Personality (Trait Theory) of Switching Customers ( Generic Goals vs
Product Specific)y Check ZONG¶s credibility/unique value among its customers
y Check Pre-purchase Behavior (heard from anyone or its entirely their decision)
y Examine Rate of Usage
y Check Post purchase Behavior
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METHODOLOGY
In this project we are using Qualitative Research which aims to achieve an in-depth
understanding of a situation, whether it explains why a person entering in a purchasingphase or explains why some advertisements make us laugh and contribute to our
brands.
In Qualitative research;
y The focus of research is to understand and interpret
y There is a high researcher involvement or it act as a catalyst
y Purpose is In-depth understanding and theory building
y Sample size is small
y Sample design is Non-Probability, because we can¶t imagine the interviewee¶sperception
y Data analysis is primarily non-qualitative
In this research we¶ll focus on individual interviews and types we¶ll use here are;
y Unstructured Interview
y Semi-structured Interview
Because
y They rely on developing a dialog between interviewer and participant.y Require more interviewer creativity
y Use the skill of interviewer to extract more and a greater variety of data
y Use interviewer experience and skill to achieve greater clarity and elaboration of
answers
We also are doing Projective techniques like;
y Brand Mapping (participants are presented with different brands and asked to
talk about their perceptions, usually in relation to several criteria)
y Sentence completion (participants are asked to complete a sentence like ³Pakistan has several cellular networks)
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Buying Process Chart
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PROFILE OF RESPONDENTS
Respondent #01
Demographics
Age: 29
Gender: Male
Family members using Zong: All
Friends using Zong: Majority
Occupation: Receptionist
Psychographics
Did you have any Problem in Previous Network?
Response: Yes.
If yes, what was that?
Response: It was too expensive.
In free time you like to?
Response: Study & Play Cricket
You like to call or SMS?
Response: Both.
When you recognized that you have to switch your network?
Response: It was 2005 when I felt that I should change the SIM.
Then you chose ZONG, any research behind this decision?
Response: My friend introduced me to Zong so I felt it was good for me.
Geographic
Lives in Shalamar Lahore
Works at: UET Lahore
Education level Bachelors (Continue) from Virtual University
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PROFILE OF RESPONDENTS
Respondent #02
Demographics
Age: 24
Gender: Male
Family members using Zong: None
Friends using Zong: Many
Occupation: Entrepreneur
Psychographics
Did you have any Problem in Previous Network?
Response: Yes.
If yes, what was that?
Response: My credit finished too soon
In free time you like to?
Response: Chat with friends, Gym
You like to call or SMS?
Response: Both.
When you recognized that you have to switch your network?
Response: Last year when I realized that my friends had Zong and I had problems to reach
them
Then you chose ZONG, any research behind this decision?
Response: My friend introduced me to Zong & I also saw advertisements of Zong, they helped
me through it
Geographic
Lives in Lahore Cantt
Works at: Own place in Cantt
Education level Intermediate
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Respondent #03
Demographics
Age: 20
Gender: femaleFamily members using Zong: None
Friends using Zong: Many
Occupation: student
Psychographics
Did you have any Problem in Previous Network?
Response: No
If yes, what was that?
Response: ----
In free time you like to?
Response: watch television
You like to call or SMS?
Response: sms
When you recognized that you have to switch your network?
Response: I liked to try new offerings as I am an innovator.
Then you chose ZONG, any research behind this decision?
Response: No but its advertisement are very much appealing.
Geographic
Lives in : Johar Town, Lahore
Works at: ----
Education level: undergraduation (continue)
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Respondent #04
Demographics
Age: 21
Gender: femaleFamily members using Zong: one of them
Friends using Zong: Many
Occupation: student
Psychographics
Did you have any Problem in Previous Network?
Response: Yes
If yes, what was that?
Response: Their call rates are very much expensive
In free time you like to?
Response: Gardening
You like to call or SMS?
Response: call
When you recognized that you have to switch your network?
Response: when I ran short of money because of consuming more and more cards on my
previous network
Then you chose ZONG, any research behind this decision?
Response: No, I just heared it from my friends about its lowest call rates.
Geographic
Lives in: Faisal Town, Lahore
Works at: ----
Education level: Under graduate
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PROCESS & INFLUENCE
1. Need Recognition:
It is the first step of buying process in which customer getsaware of its need. In the project, the main reason of switching from other
connection to Zong is low rates. We had two professionals and two students for
interviews but there was no big difference in need recognition between the two
categories. They had following need recognitions:
Expense:
Professional class as well as students does not like to pay more and
get less in return, they like to get value for their spending & this arise need
recognition in their mind. Students especially want same or better packages for
lesser amount of money.
Friends & Family:
The second main reason is the network used by friends and
family. All the respondents told that the major factor of conversion was their
friends or family & they had to follow them. They need to switch is obvious when
Zong offers lower call rates & friends already have Zong.
Value for Money:
One reason of need recognition was cost benefit analysis
of existing offers as compared to Zong benefits told by the friends and
advertisements. One of the interviewee told us that the factor for need
recognition was
Advertisements:
One of the interviewee told us that he liked Zong ads and
these ads appealed him to switch the network. The ads made him aware that his
network was not so good in calling rates so it make him aware of the need to
change.
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2. Information Search:
After need recognition, customer clarifies the options to which he can depend on to take
decisions.
a) Internal Search:
Internal search is the customer¶s self organized search or
knowledge of the product; the respondents were not interested to undergo
excessive research like surfing on the internet or going through some research
techniques.
b) External Research:
The respondents were very much interested in following
external sources like friends, advertisements and word of mouth by social
references.
-Friends:
Friends were the authentic and practical example as they guide the
new users through their experience. They play a major role in exposing product¶s
image to the customer. These customers in our project mostly depended on their
friends for primary research about network. It is common in both students and
professionals.
-Advertisements:
Advertisements can create a positive as well as negative
image of product, three of the respondents got bit of idea from the
advertisements but one professional did not experience any advertisement but
totally depended on suggestion.
-Comparisons:
Comparison is the key source of information search. All the
participants have gone through comparisons to judge the network. They
compared package information of different networks with Zong so this
information search helped them making their final decision.
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Evaluation of Processes:
After applying our theoretical knowledge into practical findings, we have found out some
interesting facts. We have compared the buying process given in the book with the
actual buying process and we came to know that there was almost no difference
between them; more or less they were same. The customers did go through all the
stages of buying process but with different sequence or some time different frame of
mind. The customer did have problem recognition in from of over Expense, Friends &
Family network, Value for Money (cost & benefit) and Advertisements. Then the
customer did information search as per his/her desire. Then the customer did evaluation
of available alternatives to choose the best alternative or the one he favors as a result of
his personal rankings. Our respondents chose the alternative that was giving them bestmonthly package (calls & sms) and it consumes Rs 300 in total.
Then according to the 4th stage of buying process the customer will buy the product and
then evaluate his decision, the participants upon asking told us that they have been
through the decision and had after purchase anxiety to some extent.
At the end we evaluate the theoretical buying process model as a key for customer
buying decisions.
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The following process model will explain our observation more precisely.
BUYING PROCESS
(A) Experience (if Bad)
(B) Information of best alternate
(C) Get best alternative
(D) Use it
(E) Expectation= Benefits= satisfaction
(F) Post purchase behavior (if bad)
(G) Complaint or not
(H) Decision box (continue using or leave it)
(A)
(B)
(C)
(D) (E)
(F)(G)
(H)
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Observations:
As we have conducted the focus group, we come to a conclusion that most of them
didn¶t go through all the 5 stages of consumer buying process. As this is an impulsebuying so the customer didn¶t think in depth before making a decision about buying this
network. The friend¶s opinion mattered a lot in whole purchase. We found happy in fact
delighted customers as they say that their monthly expense was 300-500 due to the
packages offered by the company. Some of them switch their network just for being in
the list of innovators. And after using those offerings they will be able to judge either
they are satisfied or dissatisfied or they have cognitive dissonance. Some of the users
are satisfied and they consider it one of the best decisions. And some of them face
cognitive dissonance. Some of the user¶s complaints about the problems that they face
in this network and others just stay quite. We came to know that there was a delight in
accordance with satisfaction level among participants. An interesting thing we found outwas customers do not like to recharge again and again but they prefer to load the credit
once and use it for the whole month & it is the factor due to which they continue with
Zong.
The other thing is Zong is good in retaining customers and creating loyalty. Zong
continues to make loyal customers now by introducing Zong Manchester United SIM as
club fans are most loyal people and football has certain following all over the world.