Kaleem CB Project

7/31/2019 Kaleem CB Project

1/12

2011

GROUP # 3

(NEW CUSTOMERS

OF ZONG USER)

ASMA ARIF (026)

ALI RAZA (049)

KALEEM KHAN (017)

MAHRUKH YOUSAF ZAI (007

ZONG


2/12

ZONG Page 2

Executive Summary

ZONG is the first international brand of China Mobile, launched in Pakistan in

2008. The company is often cited as China Mobile (Pakistan). A first international step for

China Mobile, Zong aims at touching the lives of all Pakistanis. They serve to inspire and

empower the people of Pakistan with innovative technology that keeps pace with today's

fast evolving culture. It is committed on attracting and retaining the best human resource

from all over Pakistan and for this they offer valuable services to their customers.

The primary aim of ourproject is to observe and identify the buying decisionprocess of ZONG customers who have been using this network as their first priority.


3/12

ZONG Page 3

TABLE OF CONTENTS

ELEMENT PAGE #

0. EXECUTIVE SUMMARY......................................................................................................... ... 2

1. OBJECTIVES OF THE PROJECT. 4

2. PROJECT METHADOLOGY.. 5

3. BUYING DECISSION PROCESS . .. 6

4. RESPONDENTS PROFILE.. 8

5. IDENTIFIED PROCESS.. 10

6. EVALUATION... 17

7. OBERVATION CONCLUDED.. 18


4/12

ZONG Page 4

OBJECTIVESThe objectives of our project are as follow:

To understand the buyer decision process.

To understand the psychology of how consumers think, feel, reason, and selectbetween different alternatives (e.g. brands and products)

To identify and understand that how the consumer is influenced by his or herenvironment (e.g., culture, family, signs, media) during making a choice to buy a

product.

To observe the behavior of consumers while shopping or making other buyingdecisions.

To get to know that what are the limitations in consumer buying process.

How consumer motivation and decision strategies differ between products.

To understand the influencing factors that make the consumer to buy a specificproduct.

Understanding the processes the consumer use to select, secure, use, anddispose of product.

To understand that whether the buying decision occurs either for the individualor in the context of a group.


5/12

ZONG Page 5

METHADOLOGYIn order to fulfill the objectives of our project, the methodology and method that we

selected to get to know the buying decision process of the customers of ZONG was focus

group.

The reason behind choosing the methodology of focus group was that this was one of the

best way through which we can identify and understand the influencing factors our

identified customers buying process as focus groups are very good for getting breadth. Then

focus groups are more flexible, sample sizes are small and because participants in a focus

group are influenced by each other, few data points are collected.

We identified the seven customers from our relatives, friends and class fellows who were

using the ZONG as their first and prior network. Once we were done with it we had a

conversation with them individually, as it was not possible to carry this work out in a group

form because all of the identified customers were not available at a specific and common

time.

The conversation was individually done so we get a better chance to understand the stages

through which the identified customers passed during making the decision to buy zong as

their first network.

It was really helpful through focus groups to fulfill our objectives of the project as the focus

group was completely open-ended .The consumer was open to mention his or her

preferences and opinions and we at same time were also there to ask him or her to

elaborate their opinions and reasons of them.


6/12

ZONG Page 6

BUYING DECISION PROCESSResearch suggests that customers go through a five-stage decision-making process in any

purchase. This is summarized in the diagram below:

The buying process starts with need recognition. At this stage, the buyer recognizes aproblem or need or responds to a marketing stimulus.

An aroused customer then needs to decide how much information (if any) is required. If

the need is strong and there is a product or service that meets the need close to hand, then

a purchase decision is likely to be made there and then. If not, then the process of

information search begins.

A customer can obtain information from several sources:

Personal sources: family, friends, neighbors etc Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of-

sale displays

Public sources: newspapers, radio, television, consumer organizations; specialistmagazines

Experiential sources: handling, examining, using the productResearch suggests that customers value and respect personal sources more than

commercial sources.


7/12

ZONG Page 7

In the evaluation stage, the customer must choose between the alternative brands,

products and services. The consumer arrives at attitudes toward different brands through

some evaluation procedure. How consumer goes about evaluating purchase alternatives

depends on the individual consumer and the specific buying situation. In some cases,

consumers use careful calculations and logical thinking. At other times, the same consumersdo little or no evaluating; instead they buy on impulse and rely on intuition. Sometimes

consumers make buying decisions on their own; sometimes they turn to friends, consumer

guides, or salespeople for buying advice.

The consumers purchase decision will be to buy the most prefer red brand, but two factors

can come between the purchase intention and the purchase decision. The first factor is the

attitudes of other. The second factor is unexpected situational factors. The consumer may

form a purchase intention based on factors such as expected income, expected price, and

expected product benefits. However, unexpected events may change the purchaseintention.

The final stage is the post-purchase evaluation of the decision. It is common for customers

to experience concerns after making a purchase decision. This arises from a concept that is

known as cognitive dissonance. The customer, having bought a product, may feel that an

alternative would have been preferable. In these circumstances that customer will not

repurchase immediately, but is likely to switch brands next time.


8/12

ZONG Page 8

RESPONDENTS PROFILE:No. of

customers

Name Age Sex Occupation Income

class

Education Location

1 Qasim 23 Male Student Middleclass

MBA Lahore

2 Ahmad

ali

24 Male Student Middle

class

I.COM Lahore

3 Alishba 19 Female Student Middle

class

A-levels Lahore

4 Arif 22 Male Student Middle

class

BBA(hons) Lahore

5 Bilal 23 Male Student Middle

class

F.S.C Lahore

6 Nida 20 Female Student Middleclass

BBA(Hons) Lahore

7 Sharjeell 21 Male Student Middle

class

BSC Lahore

Identified Process:

Buying decision process model is important for anyone making marketing decisions. Itforces the marketer to consider the whole buying process rather than just the purchase

decision.

Need recognition:

The buying process starts with need recognition. At this stage, the buyer recognizes a

problem or need or responds to a marketing stimulus.

After doing a focus group discussion with seven of the Zong customers we have

identified their needs for purchasing a Zong connection. Some of them were havingsimilar needs while others had different needs.

Three of the Zong customers have similar needs. They need to be in contact with their

parents every time when they are out of home because of the crimes taking place in the

country. They needed to carry a cell phone with cellular connection with them.

Two of the customers recognize their need for a cell phone with a cellular connection

when they saw their friends using a cell phone. They perceived that their friends are

having fun and showing off by having a mobile and they also needed the same.


9/12

ZONG Page 9

Remaining two of the customers had strong influence of their families. They were not

allowed to use a cell phone under the age of 18. When they turned 18 their need was

recognized for having a cell phone.

Information search:

This is the second stage of buying process. If the need is strong and there is a product or

service that meets the need close to hand, then a purchase decision is likely to be made

there and then. If not, then the process of information search begins.

In this stage the customers started searching information about which cellular connection to

buy which would satisfy their needs. Four of the customers choose their friends as a source

of information. These customers were greatly satisfied by their friends and were influenced

by word of mouth.

Three of the customer used commercial source such as advertising, packaging and point-of-

sale displays as a source of information. They were very much attractive towards advertising

and point of sale displays which made their involvement strong in buying.

Evaluation of alternatives:

An important determinant of the extent of evaluation is whether the customer feelsinvolved in the product. By involvement, we mean the degree of perceived relevance and

personal importance that accompanies the choice.

After identifying the needs and information source the customers were using, we would

now discuss which alternatives were available to them and how they evaluate among the

alternatives.

The alternatives available to them against Zong were Mobilink, U-fone, Warid and telenor.

When Zong was launched in Pakistan it gave the opportunity to the customers to buy anumber of their own choice which was named as Golden no.. It was very successful and

two of the customers in our focus group discussion choose Zong among other alternatives

available. This offer was not available with other cellular networks and many people

selected Zong as a cellular network. Two of the customers of our focus group discussion felt

like they were given freedom by Zong and they availed this opportunity.

Internet packages was another successful attempt by Zong. Zong offered different internet

packages charging customer on daily, weekly and monthly basis. Four of our respondents

were greatly interested in using mobile internet. For them it was fun to use mobile internetto google and use social networks. Among four respondents two of them were attracted


10/12

ZONG Page 10

through advertisements such as ads on television and point of sale displays. Rest of the two

found this package interesting and economical which is an external factor plus Zong was

already used in their familys circle.

One of the respondents had a different motive which is considered as an internal factor.

This person did not do evaluation at all because his girlfriend was using Zong and choose

Zong. Here the respondent is using emotional model of consumer decision making.

Zong is offering the lowest sms and call rates. All of our respondents were students and

irrespective of coverage and signal drop problems they decided to use Zong. Zong was

economical to them which is an external factor while evaluating alternatives. They

perceived that Zong would satisfy their needs against other cellular networks.

Purchase decision:

This is the fourth stage in buying process. The actual purchasecomes in this stage, the

consumer will locate the required brand, and perhaps choose a retailer he or she has faith

in, and will also select an appropriate payment method.

After gathering and analyzing the data and information from friends, two of our

respondents finally came to a conclusion to buy Zong network. Their purchase decision was

also influenced by cheap international call rates that Zong offers because he has to call his

siblings that reside abroad more frequently.

Other two of our respondents, after consulting their family members, found that Zongdelivers some special packages that could fulfill most of his requirements through special

offers like zong+1 package which enables you to have Zong to Zong free calls etc. specially

during day time that was their one of the major reasons of preferring this network over the

others. Also they considered Zong best for them because it offers some packages such as

Zong 45 and Zong65 which has the cheapest call rates than other cellular networks.

Zong ads are very impressive and one of our respondents decided to experience a new

connection because it services seems to be good for her. His family members have different

connections so he decided to go for Zong and experience it. If it will satisfy him he will

continue it otherwise switch to other network because now days Sims are very cheap now a

days.

Rest of our respondents decided to buy Zong because their friends have also Zong and call

rates and text messages are very cheap from Zong Zong.


11/12

ZONG Page 11

Purchase Evaluation:

Purchase evaluation refers to the way the consumer decides whether the product purchase

has been a success or not. This process usually involves a comparison between what the

consumer was expecting to get, and what was actually purchased, although sometimes new

information obtained after the purchase will also color the consumers thinking.

After purchasing Zong two of our respondents have some problems using Zong such as easy

load facility is limited at their location and signal dropping which are negative aspects

according to them, but they are still satisfied with the lowest local and international call

rates and also happy with the customer care centre.

One of our respondents have no issue with signal problem of Zong and still its services are

best for her. He is emotionally attached with Zong and dont even think to switch to other

network. He is brand loyal and dont care about if the services are not well.

Rest of our respondents were influenced and attracted to Zong through one of Zongs best

packages which only charge 8 rupees per day and then the calls from Zong to Zong are free

for whole day.

Some of dissonance factors were:

Balance expire date is short that is only 20 days Network coverage is limited Signal drop problem Sometimes customer service centre are so busy and have to wait a lot to complain.


12/12

ZONG Page 12

Kaleem CB Project

Documents