A Report on Mobile Marketing and Its Prospects in Bangladesh

Coures: Project Work Course code: BUS 498

Prepared for: Sharmin Akhter Lecturer Department of Business Administration East

West University

Prepared by: Vezen Tahari ID:2008-2-10-022

Date of Submission: August 12, 2012

Letter of Transmittal
August 12, 2012 Sharmin Akhter Department of Business Administration East West
University Plot A/2, Jahurul Islam City, Aftabnagar Dhaka, Bangladesh Subject:
Submission of Project Paper on mobile marketing and Its Prospects in Bangladesh
Dear Madam, It is my great pleasure that I have the opportunity to submit a report
on M-marketing and Its Prospects in Bangladesh to you. I have completed my Project
Work from 27 June 2012 to 12 August 2012. For this purpose, I have worked on the
theoretical aspects of m-marketing or m-marketing as well as gone through the
websites those are currently working in Bangladesh at present and a very few
journals related to m-marketing of Bangladesh. I had to rely on the information
given by the users or customers of the services provided by those websites. I tried
my best to put meticulous effort for the preparation of this report. Any
shortcomings or flaw may arise as I am very much novice in this aspect. I will
wholeheartedly welcome any clarification and suggestion about any view and
conception disseminated in my report. Thanking you for your kind supervision.
Sincerely yours, ……………….. Vezen Tahari ID# 2008-2-10-022
Acknowledgment
My special thanks goes to Sharmin Akther, Honorable instructor for my Project Work
(BUS498), whose utmost effort in providing me the necessary guidance helped me
complete the assigned task turned into reality. I would like to thank her for
considering the unavoidable circumstances I had to undergo. Perhaps it would not be
possible for me to revive if his kindness were not there. Her advice and guidance
helped me think of the layout of the big task I did. Her generous help was always
there whenever I needed any help. The task has been ended well only because of her
generous consideration for everything. I am grateful to my friend Sohag Saha and
Shamim Istiaq whose sweet cooperation helped me lot, and at last but never the
least I am grateful to the Almighty Allah for allowing me to come up with a
complete Project Work (BUS-498).
Contents
1.
Introduction ......................................................................
......................................................................... 2 1.1.
1.2. 1.3 1.4 1.5 Origin of the project
report ............................................................................
............................... 2 Objective of the
Report ............................................................................
..................................... 2 Scope of the
Report ............................................................................
........................................... 3 Research
Methodology .......................................................................
.......................................... 3
Limitations .......................................................................
............................................................. 3

2. Theoretical
Background ........................................................................
.................................................... 4 2.1 M-commerce & M-marketing
...................................................................................
.......................... 4 2.2 History of m-
marketing..........................................................................
............................................. 5 2.3 Media of m-
marketing .........................................................................
............................................... 6 2.3.1 Mobile marketing via SMS
Marketing .........................................................................
............... 6 2.3.2 Mobile marketing via
MMS ...............................................................................
.......................... 6 2.3.3 In-game mobile
marketing .........................................................................
.................................. 7 2.3.4 Mobile web
marketing .........................................................................
........................................ 7 2.3.5 Mobile marketing via QR
codes .............................................................................
..................... 7 2.3.6 Mobile marketing via
Bluetooth .........................................................................
......................... 7 2.3.7 Mobile marketing via
Infrared ..........................................................................
........................... 8 2.4 Benefit of M-
marketing .........................................................................
............................................. 8 2.5 Pros and cons of M-
marketing .........................................................................
................................... 9 2.5.1 Pros of mobile
marketing .........................................................................
.................................... 9 2.5.2 Cons of mobile
marketing .........................................................................
................................. 11 2. Analysis and
Findings ..........................................................................
............................................... 12 2.1 Demographic
information .......................................................................
.......................................... 12 2.2 Phase 1
(Exploratory) .....................................................................
.................................................. 16 2.3 Phase 2
(Descriptive) .....................................................................
................................................... 16 1.1 1.2 1.3 1.4 1.5 Data
Collection from Secondary
Sources ...........................................................................
........ 17 Data Collection from Primary
Sources ...........................................................................
............ 17 Scaling
Techniques ........................................................................
............................................. 17 Questionnaire Development &
Pretesting.........................................................................
.......... 17 Sampling
technique .........................................................................
............................................ 18

4. The Areas of M-commerce in

Bangladesh ........................................................................
..................... 30
4.1 Mobile Financial
Services...........................................................................
...................................... 31 4.2 Mobile
Payments ..........................................................................
.................................................... 31 4.3 Information
Search.............................................................................
............................................... 32 4.4 Mobile
Banking ...........................................................................
..................................................... 32 4.5 Mobile
Advertising .......................................................................
.................................................... 33 4.6 Mobile
Entertainment .....................................................................
.................................................. 34 4.7 Mobile
Gaming ............................................................................
..................................................... 34 4.8 Mobile
Music .............................................................................
....................................................... 35 4.9 Mobile
Shopping...........................................................................
.................................................... 35 4.10 Mobile
Retailing .........................................................................
.................................................... 35 4.11 Mobile
Ticketing..........................................................................
................................................... 36 5. M-marketing in
Bangladesh: Status, Potential and
Constraints .............................................................. 37 5.1
Potential market for more advanced m-
commerce ..........................................................................
. 37 5.2 Government
Legislation........................................................................
............................................ 38 5.3 Infrastructure: Status and
Issues ............................................................................
........................... 38 5.4
Governance ........................................................................
............................................................... 38 5.5 Major
Constraints to M-
marketing .........................................................................
.......................... 39 6.
Recommendations ...................................................................
................................................................ 39 6.1
Introduction of Advance payment
system ............................................................................
............ 39 6.2 Mobile
Auctions...........................................................................
..................................................... 39 6.3 Third generation (3G)
Technology ........................................................................
........................... 40 7.
Conclusion ........................................................................
...................................................................... 41 8.
Bibliography ......................................................................
.................................................................... 42 9. Appendix
...................................................................................
.............................................................. 44
Executive Summary
This is the era of Information and Communication Technology. The prime concern of
this decade of electronic revolution is to establish and ensure a better way of
management, communication and development with the use of information and
information oriented services based on computer and information technology.
Crossing the boundary of personal computations and communications, the uses of
digital media for greater levels of management has been initialized early in the
century. Electronic Marketing or m-marketing may simply be considered as an
extension of this trade. With the enhanced facilities of technology for providing
smart and easy living, M-marketing has become a prime demand in the world for
ensuring better and quicker product marketing, wider and comprehensive
representation, stable and competitive pricing throughout the various sectors of
business and marketing including other e-services.

Mobile marketing or mobile marketing is the extension of m-marketing which works

within a mobile device using a mobile network infrastructure. M-marketing is an
emerging technology and like m-marketing it has numerous issues and concerns. This
Project will try to identify the concerns in regards of the implementation of m-
marketing in a developing country. The research is conducted using both the primary
and the secondary sources. Primary data are collected by using online
questionnaires from different stakeholders of m-marketing or m-marketing in
Bangladesh. Collected data are analyzed with the help of standard statistical tools
and the results are produced with appropriate tables and graphs. The secondary data
are collected through the widespread literature reviews and online sources which
are taken from books, journals, conference articles, reports and newspapers. The
result indicates some constructive findings regarding the implementation challenges
of mobile marketing within Bangladesh. A set of recommendations are given to make
the implementation process easy

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1. Introduction

M-marketing or Mobile Marketing refers to wireless electronic marketing used for

conducting marketing or business through a handy device like cellular phone or
Personal Digital Assistant (PDAs). In other words it is the ability to conduct
marketing using a mobile device, such as a mobile phone, a Personal digital
assistant (PDA), a Smartphone, or other emerging mobile equipment such as dashpot
mobile devices It is the next generation wireless m-marketing that needs no wire
and plug-in devices. Mobile marketing is usually called as 'm-Marketing' in which
user can do any sort of transaction including buying and selling of the goods,
asking any services, transferring the ownership or rights, transacting and
transferring the money by accessing wireless internet service on the mobile handset
itself. The next generation of marketing would most probably be mobile marketing or
m-marketing. Presuming its wide potential reach all major mobile handset
manufacturing companies are making WAP enabled smart phones and providing the
maximum wireless internet and web facilities covering personal, official and
marketing requirement to pave the way of m-marketing that would later be very
fruitful for them.

1.1.Origin of the project report

This study and the resulting report was conducted and submitted as a project
requirement (BUS 498) course .The report was authorized by Sharmin Akther, project
instructor of my course, and lecturer, Department of Business Administration, East
West University.

1.2.Objective of the Report

Broad Objective The main objective of this report is to get the practical insight
about m-marketing and to find out the problems and prospect in Bangladesh.

2
Specific Objective   To identify the SWOT analysis of m-marketing industry To
find out bottlenecks and recommend solutions to them

1.3

Scope of the Report

E marketing websites and the relative fields were the scope of the study

1.4

Research Methodology

The research is basically both exploratory and conclusive in nature. In the first
place, an analysis of the e marketing services and fields are undertaken. Secondly,
a session with different consumers of the services was held. Based on the data
given by them, analysis was done. Finally with the help of secondary data, the
report is completed. Primary data 1. Information on website 2. Interview with users
Secondary Data 1. Articles published on internet 2. Journals

1.5

Limitations

 Time constraints were one of the most important factors that imposed restrictions
on conducting the study extensively.  Scarcity of Secondary Data  Limitation of
Scope was another important point that was faced during execution of the study. 
Privacy or reluctance to disclose confidential data was another important problem.

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2. Theoretical Background
2.1 M-commerce & M-marketing
Mobile Commerce refers to wireless electronic commerce used for conducting commerce
or business through a handy device like cellular phone or Personal Digital
Assistant (PDAs). It is also said that it is the next generation wireless e-
commerce that needs no wire and plug-in devices. Mobile commerce is usually called
as 'm-Commerce' in which user can do any sort of transaction including buying and
selling of the goods, asking any services, transferring the ownership or rights,
transacting and transferring the money by accessing wireless internet service on
the mobile handset itself. Mobile marketing can refer to one of two categories of
interest. First, and relatively new, is meant to describe marketing on or with a
mobile device, such as a cell phone using SMS Marketing. (This is an example of
horizontal telecommunication convergence). Second, and a more traditional
definition, is meant to describe marketing in a moving fashion - for example
technology road shows or moving billboards. Although there are various definitions
for the concept of mobile marketing, no commonly accepted definition exists. One
definition comes from marketing professor Andreas Kaplan who defines mobile
marketing as "any marketing activity conducted through a ubiquitous network to
which consumers are constantly connected using a personal mobile device". Within
this definition, Kaplan uses two variables, i.e. the degree of consumer knowledge
and the trigger of communication, to differentiate between four types of mobile
marketing applications: Strangers, Victims, Groupies, and Patrons. Mobile marketing
can also be defined as “the use of the mobile medium as a means of marketing
communication” or “distribution of any kind of promotional or advertising messages
to customer through wireless networks”. More specific definition is the following:
“using interactive wireless media to provide customers with time and location
sensitive, personalized information that promotes goods, services and ideas,
thereby generating value for all stakeholders". Mobile marketing is commonly known
as wireless marketing. However wireless is not necessarily mobile. For instance, a
consumer‟s communications with a Web site from a desktop

4
computer at home, with signals carried over a wireless local area network (WLAN) or
over a satellite network, would qualify as wireless but not mobile communications.
The next generation of commerce would most probably be mobile commerce or m-
commerce. Presuming its wide potential reach all major mobile handset manufacturing
companies are making WAP enabled smart phones and providing the maximum wireless
internet and web facilities covering personal, official and commerce requirement to
pave the way of m-commerce that would later be very fruitful for them.

2.2 History of m-marketing

M-marketing was intuitive in 1997 when the first two mobile-phones enabled Coca-
Cola vending machines were installed in the Helsinki in Finland. The machine was
capable of accepting payment via SMS text messages. The first mobile phone-based
banking service was launched in 1997 by Merita Bank of Finland, also using SMS. The
following year in 1998, the first sales of digital content as downloads to mobile
phones were made possible when the first commercial downloadable ringtones were
launched in Finland by Radio linja currently known as Elisa Oyj. The next stage of
m-marketing was proceeding by two major national commercial platforms for mobile
marketing launched in 1999: Smart Money (http://smart.com.ph/money/) in the
Philippines, and NTT DoCoMo's i-Mode Internet service in Japan. I-Mode offered are
evolutionary revenue-sharing plan where NTT DoCoMo kept 9 percent of the fee users
paid for content, and returned 91 percent to the content possessor.

M-marketing-related services then stretched rapidly in early 2000. Norway launched

mobile parking payments. Austria offered train ticketing via mobile device. Japan
offered mobile purchases of airline tickets. M-marketing mount up quickly after the
first university short course to discuss mobile marketing was held at the
University of Oxford in 2003, with Tomi Ahonen and Steve Jones lecturing. As of
2008, UCL Computer Science and Peter J. Bentley demonstrated the potential for
medical applications on mobile devices. PDAs and cellular phones have become so
popular that many businesses are beginning to use mobile marketing as a more
efficient way to communicate with their customers. In order to exploit the
potential mobile marketing market, mobile phone manufacturers such as Nokia,
Ericsson, Motorola, and

5
Qualcomm are working with carriers such as AT&T Wireless and Sprint to develop
WAPenabled Smartphone. Smartphone offer fax, e-mail, and phone capabilities. In
recent times, brick and mortar business owners, and big-box retailers in
particular, have made an effort to take advantage of mobile marketing by utilizing
a number of mobile capabilities such as location based services, barcode scanning,
and push notifications to improve the customer experience of shopping in physical
stores. By creating what is referred to as a 'bricks & clicks' environment,
physical retailers can allow customers to access the common benefits of shopping
online (such as product reviews, information, and coupons) while stills hopping in
the physical store. This is seen as a bridge between the gaps created by m-
marketing and in-store shopping, and is being utilized by physical retailers as a
way to compete with the lower prices typically seen through online retailers.

2.3 Media of m-marketing

Marketing can be done through the following media: 2.3.1 Mobile marketing via SMS
Marketing Over the past few years SMS Marketing has become a legitimate advertising
channel in some parts of the world. This is because unlike email over the public
internet, the carriers who police their own networks have set guidelines and best
practices for the mobile media industry (including mobile advertising). Mobile
marketing via SMS has expanded rapidly in Europe and Asia as a new channel to reach
the consumer. 2.3.2 Mobile marketing via MMS Almost all new phones (including smart
phones) produced with a color screen are capable of sending and receiving standard
MMS message. Brands are able to both send (mobile terminated) and receive (mobile
originated) rich content through MMS A2P (application-to-person) mobile networks to
mobile subscribers. MMS mobile marketing can contain a timed slideshow of images,
text, audio and video. This mobile content is delivered via MMS (Multimedia Message
Service).

6
2.3.3 In-game mobile marketing Brands are now delivering promotional messages

within mobile games or sponsoring entire games to drive consumer engagement. This
is known as mobile adver gaming or Ad-funded mobile game. 2.3.4 Mobile web
marketing Advertising on web pages specifically meant for access by mobile devices
is also an option. Google, Yahoo, and other major mobile content providers have
been selling advertising placement on their properties for years already as of the
time of this writing. Advertising on web pages specifically meant for access by
mobile devices is also an option. Google, Yahoo, and other major mobile content
providers have been selling advertising placement on their properties for years
already as of the time of this writing. 2.3.5 Mobile marketing via QR codes
Paralleling the rise in smart phone adoption, QR codes have become much more
prevalent in marketing pieces both on and offline. Acting as a visual hyper-link to
a page, QR codes make it easy to jump someone to a mobile optimized offer page and
as such, represent a very powerful tool for initiating consumer engagement at the
time. 2.3.6 Mobile marketing via Bluetooth Most of these businesses offer "hotspot"
systems which consist of some kind of contentmanagement system with a Bluetooth
distribution function.

7
2.3.7 Mobile marketing via Infrared Infrared is the oldest and most limited form of
mobile Marketing. Infrared has a very limited range (~ approx. 10 cm - 1meter) and
could never really establish itself as a leading Mobile Marketing technology.

2.4 Benefit of M-marketing

Mobile marketing is an excellent way for you to connect to your intended audience
in an effective manner every time. There are several benefits to using this time of
marketing and you may not realize the potential it creates for your business.
Finding that all important target moment when it will strike the individual just
right is the difference between effective advertising and a waste of your
advertising dollar. Here are some things to consider about mobile marketing. One of
the many benefits that mobile marketing works well for is the simple fact that it
is personal in nature. Consider the fact that instead of advertising on a huge
billboard and hoping that those that drive by will see it, you are giving personal
attention to the individual. Instead of hoping that the channels don't get changed
when your commercial comes on, send it right to the individual and know that when
they glance at their phone, they already have your message. This personal touch is
quite powerful. Another option is the immediacy of mobile marketing. You don't have
to wait for them to act as many times they have the ability to click through the
message to obtain information about your product or service right then. One of the
hardest tasks in marketing is getting the message out and then making it stick.
This method works well as the action can be taken immediately. That gets you
immediate results for your advertising. With hundreds of products coming online
each day, it is hard to make one product or one service stand out against the rest.
With mobile marketing, the audience you are targeting gets your message about who
you are, what your business is and about what products are available immediately
and they can then act on it. Mobile marketing is fast becoming the most successful
type of marketing. Look for it to continue to grow as the world becomes even more
mobile advanced.

8
2.5 Pros and cons of M-marketing
There was a time when e-Marketing was very much the thing for all marketers.
Offering various benefits, it had practically changed the face of conventional
marketing and the way companies viewed this aspect of business. Now, with the
further advent of advanced mobile devices bringing in a lot more connectivity,
Mobile Marketing is going far beyond e-Marketing. Mobile marketing gives the user
far more advantages, such as lower cost, customization, easy tracking and so on,
thereby reducing manpower and yet giving the entrepreneur better business benefits
and profits. 2.5.1 Pros of mobile marketing


Instant results

Users always carry their mobile phones with them. Most of the time, the user has
his mobile phone on as well, which means, he or she receives the message at the
very moment it is sent. Even if it is in standby mode, the message is received as
soon as the user turns on his mobile device. Hence, mobile marketing techniques are
always almost instant.


Easy to work with

Drawing out content for mobile devices, whether it is text, images or video is
simpler and less expensive as compared with the same for desktops or laptops. The
mobile medium also makes easier to issue promotions and marketing incentive
services to the user. Further, the user can keep the virtual information with him
and carry it around till the time he needs to use it.

9


Convenient to use

Since the screen size of a mobile phone is small, it limits the scope of content
that can be displayed. This makes it convenient for the creators of the content,
who can keep it basic and simple. Also, simpler content will adapt itself better to
various mobile platforms.


Direct marketing

The mobile platform interacts directly with users on their mobile phones. This
allows for personalized interaction to a large extent. Using this benefit,
marketers can even start a direct dialogue with the user, getting instant feedback
via SMS.


Tracking user response

User response can be tracked almost instantaneously. This helps the mobile marketer
better understand and analyze user behavior, thus improving their own standards of
service.


Huge viral potential

Since mobile content can be easily shared among users, mobile marketing can have
huge viral benefits. Users invariably share good information and offers with their
friends and family, so companies get a lot more exposure with no extra effort. 
Mass communication made easy

Since a lot more people own mobile phones than desktops or laptops, mobile
marketing helps the marketer reach a far wider and diverse audience, especially in
the more remote regions of the world. Mobile marketing also gives the entrepreneur
the advantage of geo-location and sending location-specific messages to users,
using GPS and Bluetooth technology.

10


Niche not highly concentrated

Mobile marketing is still only being explored, so the niche is still comfortable
for any new marketer. This means that he stands a better chance of success with his
mobile marketing efforts.  Micro blogging benefits

Mobile users are increasingly using micro blogging platforms like Twitter from
their mobile phones. This micro blogging feature can be very highly beneficial to
the marketer.  Mobile payment

The latest mobile payment facility is very convenient for the users today. Here,
users are offered a secure online payment environment, which works via advanced
mobile Web systems. This means that the user does not need to cough up physical
currency each time he wants to make a mobile purchase or pay a bill online. 2.5.2
Cons of mobile marketing

Platforms too diverse

Mobile devices do not have any particular standard, as compared to PCs and laptops.
Mobile phones come in many shapes and sizes, so screen size is never constant.
Besides, mobile platforms vastly differ from each other, using different OS‟ and
browsers. Hence creating one campaign for all of them can get difficult.


Privacy issues

Mobile marketers need to understand and respect the fact that users would like
their privacy online. So they should only indulge in promotional activity if they
have the user‟s permission for it.

11


Navigation on a mobile phone

The mobile phone usually comes with a small screen and no mouse. This means that
navigation on a mobile phone may get difficult for the user, even if it has a touch
screen. In such a case, most ads may go untouched, as the user may find it too
tedious to look in detail through each one of them.

2. Analysis and Findings

2.1 Demographic information

Gender (Male vs. Female): In this survey I have collected data from 50 respondents.
In this respondents major portion are male and around 72% is their ratio.

Gender Male Female

Respondent 36 14

Gender
28%

Male
72%

Female

12
Age Group:

In this survey the major part of respondents are from the age level 18-22 and this
is around 70%.My report‟s respondents were basically young and middle aged person
that‟s why60+ Age group is nil.

Age Group 0-18 18-22 22-26 26-30 Over 30

Respondent 1 35 9 5 0

Age Group
0% 2% 10% 18%
0-18 18-22 22-26

70%

26-30 Over 30

Educational Level:

As this report is showing major portion of my respondent are under graduate so this
will affect the overall market scenario. This reflects that at present time
educated

13
persons are taking the decision to mobile marketing t ools . So they look carefully
all the attributes of Mobile marketing.

Education level SSC HSC Undergraduate Postgraduate

Respondent 0 2 47 1

Education level
2%
0% 4%

SSC HSC Undergraduate

94%

Postgraduate

Family monthly income

The family monthly income highly influences the using decision of m-marketing
tools. As this income will show the purchasing pattern of customer that are they
looking for updated technology.

14
Family Monthly income 10000 – 15000 15000-25000 25000-35000 35000- 45000 45000-
60000 60000+

Respondent 0 0 2 15 30 3

Family Monthly Income

6% 0% 0% 4%
10000 – 15000

30% 60%

15000-25000 25000-35000 35000- 45000 45000-60000

60000+

Profession

This report surveys the respondents of Students. This pie chart shows my analysis,
and more overdue to respondent limitation I had to consider student to this survey.

Profession Business person Public Worker Private Worker Student Other

Respondent 0 0 3 46 1

15
Profession
2% 0% 6%
Business person
Public Worker Private Worker

92%

Student
Other

The entire research has been approached in two different phases. At the first phase
the exploration of the customers‟ usage decision factors has been accomplished and
later the second phase the customers‟ rating in those areas for influence of
various advertising tools on Mobile Marketing and Its Prospects in Bangladesh has
been tested.

2.2 Phase 1 (Exploratory)

At this phase, we collected qualitative data through surveys and those data are
expected to help figure out the factors that are to be served in order to build
customers perception of specifically influence of various advertising tools on
Mobile Marketing.

2.3 Phase 2 (Descriptive)

The results of the first phase have worked as the ground work of this phase. The
factors figured out in the earlier phase have been used as the criteria of
evaluating the customers‟ usage decision. Survey method will be used to obtain
quantitative information; mostly online survey to obtain data from a large sample
within short time duration.

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Information Needed

To conduct this research, we need to find out what factors are affecting the
influence Mobile Marketing. As the secondary information, we need to read articles
& user reviews of Mobile Marketing as an upgraded service providing solution from
the internet, while as a primary information we will directly communicate with the
users/customers who are exposed with any sort of mobile Marketing. 1.1 Data
Collection from Secondary Sources

For the secondary data collection, the major source is internet. 1.2 Data
Collection from Primary Sources

For the primary data collection, the main source is our valued respondents. 1.3
Scaling Techniques

Among the different scaling techniques, we have used one of the most commonly used
itemized rating scales that are Likert Scale, for conducting our research. Our main
questions from the questionnaire are consisting of this Likert scales. 1.4
Questionnaire Development & Pretesting

At the beginning stage, to find out the factors that influence various advertising
tools of Mobile Marketing, we made 4 structured questionnaires containing several
variables related to Mobile Marketing attractiveness and asked the respondent to
rank the variables. Then, by conducting an exploratory research with the
questionnaire, we have found out six most important factors related to the
attractiveness of Mobile Marketing. After this, using a 7 point Likert scale we
made 45 more questionnaires for the testing survey and gathered respondents‟
feedback. After adjusting the feedbacks we finally made our final questionnaire. A
total of 28 questions were included in the final questionnaire. In our
questionnaire we have also included some demographic questions to find out the
respondents age, family income, gender and occupation. A copy of the questionnaire
is attached in the appendix part of the report.

17
1.5

Sampling technique

We have used convenient sampling technique lying under the non-probability sampling
techniques. h. Fieldwork Field work of our group complied a total of 7 days
including the weekdays & weekends which consists of the printing the questionnaire,
finding and talking to respondents, taking the surveys, collecting the
questionnaires back and rechecking whether any answers are being missed in the
questionnaire. 

Reliability Test:

Reliability test for measuring Dependent variable using 10 items

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Corrected Item-Total Correlation

Cronbach's Alpha if Item Deleted

Dep1 Dep2 Dep3 Dep4

33.4375 33.4125 33.8250 33.5250

22.097 22.904 21.842 20.936

.485 .265 .311 .578

.684 .713 .709 .667

Reliability Statistics

Cronbach's Alpha .718 N of Items 4

18
Interpretation The reliability test of dependent variable for the four variables
has been done from the reliability analysis. Here, the overall alpha is .718, which
means that all the independent variables have an internal consistency of 71.8%
among each other which is almost 72%. Again individually from the column
"Cronbach's Alpha if Item Deleted", we can see that if we delete any of the items
there will not be increase in the consistency. So, we kept all the variables and
did not delete anyone.

Reliability test for measuring independent variables [Mobile Advertising] Item-

Total Statistics

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Corrected Item-Total Correlation

Cronbach's Alpha if Item Deleted

Mob_Ad1 Mob_Ad2 Mob_Ad3

11.2125 11.0375 11.2875

3.056 3.454 3.904

.442 .539 .589

.697 .600 .595

Reliability Statistics

Cronbach's Alpha .700

N of Items 3

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Interpretation For the reliability test of the independent variable Mobile
Advertising, three dimensions have been pulled out from the reliability analysis.
We can see that alpha is 0.700 which means that all the dimensions have an internal
consistency of 70.00% among each other. It is very much dependable for the internal
consistency. Again individually from the column "Cronbach's Alpha if Item Deleted "
we can see that, alpha value does not increase much if any question or item is
deleted. So, we kept all of the items.

Reliability test for measuring independent variables [Mobile Banking] Item-Total

Statistics

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Corrected Item-Total Correlation

Cronbach's Alpha if Item Deleted

Mob_bn1 Mob_bn2 Mob_bn3

11.3500 11.0625 11.1125

3.370 3.629 2.658

.312 .332 .565

.577 .562 .366

Reliability Statistics

Cronbach's Alpha .598 Interpretation

N of Items 3

For the reliability test of the independent variable Mobile Banking, three
dimensions have been pulled out from the reliability analysis. We can see that
alpha is 0.598 which means that all the

20
dimensions have an internal consistency of 59.80% among each other. It is very much
dependable for the internal consistency. Again individually from the column
"Cronbach's Alpha if Item Deleted" we can see that, alpha value does not increase
much if any question or item is deleted. So, we kept all of the items.

Reliability test for measuring independent variables [Mobile Ticketing] Item-Total

Statistics

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Corrected Item-Total Correlation

Cronbach's Alpha if Item Deleted

Mob_tic1 Mob_tic2 Mob_tic3

10.9125 10.7750 11.0625

2.866 3.316 2.794

.306 .167 .309

.280 .429 .274

Reliability Statistics

Cronbach's Alpha .426

N of Items 3

Interpretation For the reliability test of the independent variable Mobile

Ticketing, three dimensions have been pulled out from the reliability analysis. We
can see that alpha is 0.426 which means that all the dimensions have an internal
consistency of 42.60% among each other. It is not very dependable for the internal
consistency. Again individually from the column "Cronbach's Alpha if Item

21
Deleted" we can see that, alpha value does not increase much if any question or
item is deleted. So, we kept all of the items. Reliability test for measuring
independent variables [Bill Pay] Item-Total Statistics

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Corrected Item-Total Correlation

Cronbach's Alpha if Item Deleted

Bil_pay1 Bil_pay2 Bil_pay3

17.8750 17.8250 17.7875

11.478 10.526 10.347

.227 .549 .424

.718 .624 .655

Reliability Statistics

Cronbach's Alpha .695

N of Items 3

Interpretation For the reliability test of the independent variable bill pay, three
dimensions have been pulled out from the reliability analysis. We can see that
alpha is 0.695 which means that all the dimensions have an internal consistency of
69.50% among each other. It is very much dependable for the internal consistency.
Again individually from the column "Cronbach's Alpha if Item Deleted" we can see
that, alpha value does not increase much if any question or item is deleted. So, we
kept all of the items.

22
Reliability test for measuring independent variables [Fund Transfer] Item-Total
Statistics

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Corrected Item-Total Correlation

Cronbach's Alpha if Item Deleted

Fund_trn1 Fund_trn2 Fund_trn3

14.2125 14.2250 14.5750

6.220 7.113 5.134

.417 .156 .359

.447 .574 .469

Reliability Statistics

Cronbach's Alpha .551

N of Items 3

Interpretation For the reliability test of the independent variable Fund Transfer,
three dimensions have been pulled out from the reliability analysis. We can see
that alpha is 0.551 which means that all the dimensions have an internal
consistency of 55.10% among each other. It is very much dependable for the internal
consistency. Again individually from the column "Cronbach's Alpha if Item Deleted"
we can see that, alpha value does not increase much if any question or item is
deleted. So, we kept all of the items.

23
Reliability test for measuring independent variables [Buy-Sell] Item-Total
Statistics

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Corrected Item-Total Correlation

Cronbach's Alpha if Item Deleted

Buy_sel1 Buy_sel2 Buy_sel3

10.7250 10.8000 10.7500

3.645 3.352 2.949

.199 .485 .375

.549 .336 .392

Reliability Statistics

Cronbach's Alpha .524

N of Items 3

Interpretation For the reliability test of the independent variable Buy-Sell, three
dimensions have been pulled out from the reliability analysis. We can see that
alpha is 0.524 which means that all the dimensions have an internal consistency of
52.40% among each other. It is very much dependable for the internal consistency.
Again individually from the column "Cronbach's Alpha if Item Deleted" we can see
that, alpha value does not increase much if any question or item is deleted. So, we
kept all of the items.

24
Regression Analysis: Before conducting the regression analysis, we have identified
mean values for the consistent items of the dependent and independent variables.
After doing this, we have conducted the regression analysis by taking the mean
values of the dependent variable and six independent variables. After conducting
the regression analysis, the result that we have found is provided belowModel
Summary

Std. Error Mode l 1 R .799(a) Adjusted R Square R Square .638 .598 of the
Estimate .32393

a Predictors: (Constant), Mob_Ad, Mob_bn, Mob_tic, Bil_pay, Fund_trn, Buy_sel,

We can see here that the value of the R square is 0.638 which means the independent
variables that we have selected can explain the dependent variable by 63.8%. So we
can say that the independent variables (Mobile Advertising, Mobile Banking, Mobile
Ticketing, Bill Pay, Fund Transfer, Buy-Sell) has a good explaining ability to
explain the dependent variable (factors influencing customer perception about
Mobile Marketing) because the value is quite high. This result means that there may
be other variables which can also explain the dependent variable. So, further
research can be made to identify those variables. Regression Equation: Mod el B 1
(Constant) Mob_Ad .042 .230 Std. Error .381 .083 .273 Unstandardized Coefficients
Standardized Coefficients Beta .110 2.760 .913 t Sig.

25

.007
Mob_bn Mob_tic Bil_pay Fund_trn Buy_sel

.031 .249 .218 .079 -.021

.075 .088 .096 .091 .080

.050 .272 .232 .096 -.024

.416 2.824 2.271 .864 -.263

.679 .006 .026 .391 .793

Y = .042+ .273X1 + .050X2 + .272X3 + .232X4 + .096X5 - .024X6 Here, Y = Customer

usage decision of M marketing X1 = Mobile Advertising X2 = Mobile Banking X3 =
Mobile Ticketing X4 = Bill Pay X5 = Fund Transfer X6 = Buy-Sell  Hypothesis
Testing:

Here we are going to test the hypothesis of our selected eight independent
variables. 1. H0:Mobile Advertising does not influence customer perception about
Mobile Marketing H1: Mobile Advertising influences customer perception about Mobile
Marketing. Independent Variables Standardized Coefficient () Mobile Advertising .
273 .007 Regression P

26
The table above shows that speed has a positive relation to the (= 0.273) customer
perception about Mobile Marketing. But, we can see that the P value [0.007] is
lower than alpha value 0.05. So, H1 is accepted and H0 is rejected. And that is,
Mobile Advertising influences customer perception about Mobile Marketing . 2. H0:
Mobile Banking dose not influences customer perception about Mobile Marketing. H1:
Mobile Banking influences customer perception about Mobile Marketing. Independent
Variables Standardized Coefficient () Mobile Banking .050 .679 Regression P

The table above shows that Mobile Banking has a positive relation to the (= 0.050)
customer perception about Mobile Marketing. But, we can see that the P value is
[0.679] and is higher than alpha value 0.05. So, H0 is accepted and H1 is rejected.
And that is, Mobile Banking dose not influences consumer purchase decision.

3. H0: Mobile Ticketing dose not influence customer perception about Mobile
Marketing. H1: Mobile Ticketing customer perception about Mobile Marketing.
Independent Variables Standardized Coefficient () Mobile Ticketing .272 .006
Regression P

27
The table above shows that Mobile Ticketing has a positive relation to the (=
0.272) customer perception about Mobile Marketing. But, we can see that the P value
[0.006] is lower than alpha value 0.05. So, H1 is accepted and H0 is rejected. And
that is, Mobile Ticketing influences the customer perception about Mobile Marketing
. 4. H0: Bill Pay does not influence customer perception about Mobile Marketing.
H1: Bill Pay influences customer perception about Mobile Marketing. Independent
Variables Standardized Coefficient () Bill Pay .232 .026 Regression P

The table above shows that Bill Pay has a positive relation to the (= 0.232)
customer perception about Mobile Marketing. But, we can see that the P value
[0.026] is lower than alpha value 0.05. So, H1 is accepted and H0 is rejected. And
that is, Bill Pay influences consumer purchase decision. 5. H0:Fund Transfer does
not influence customer perception about Mobile Marketing H1: Fund Transfer
influences customer perception about Mobile Marketing. Independent Variables
Standardized Coefficient () Fund Transfer .096 .391 Regression P

The table above shows that Fund Transfer has a positive relation to the (= 0.096)
customer perception about Mobile Marketing. But, we can see that the P value is
[0.391]and is higher than

28
alpha value 0.05. So, H0 is accepted and H1 is rejected. And that is, Fund Transfer
does not influence consumer purchase decision. 6. H0: Buy-Sell does not influence
customer perception about Mobile Marketing. H1: Buy-Sell influence customer
perception about Mobile Marketing. Independent Variables Standardized Coefficient
() Buy-Sell -.024 .793 Regression P

The table above shows that Buy-Sell has a negative relation to the (= -.024)
customer perception about Mobile Marketing. But, we can see that the P value is
[0.793]and is higher than alpha value 0.05. So, H0 is accepted and H1 is rejected.
And that is, Buy-Sell does not influence consumer purchase decision.  Results

In our study we have found out factors which affect customer perception about
Mobile Marketing. Through an exploratory research the factors we have found are-
Mobile Advertising, Mobile Banking, Mobile Ticketing, Bill Pay, Fund Transfer, Buy-
Sell. Here, the R2 value is .638, which states that the independent variables can
explain the dependent variable so well. There must be some other factors which also
effects usage decision of customer perception about Mobile Marketing. After running
the regression analysis we have found out that Mobile Advertising, Mobile Ticketing
and Bill Pay have a significant positive effect on the customer perception about
Mobile Marketing. Other than Mobile Banking and all the factors also have positive
effect on usage customer perception about Mobile Marketing but they are not
significant.

29


Limitations

As we have selected the convenience sample for conducting our research and it‟s
already has some argument so that we think we may have overlooked some potential
respondent who might have given us the more accurate answer. The R2 (.638), is
suggest that there are other such factors which can also influence customer
perception about Mobile Marketing. Further study should include other factors
except those we consider here. Moreover, among six factors only three factors have
been accepted as significant. So, further research should conduct an exploratory
research to identify other factors other than these that influence people
perception about Mobile Marketing.

4. The Areas of M-commerce in Bangladesh

Mobile devices are widely accepted due to the convenience and it will evolve into
“personal trusted devices” which pack users identity, purchasing power and
benefiting various aspects of their daily lives. It plays an important role for
users in order to facilitate the vision of an intelligent ambience, by collecting
and communicating various personal habits and preferences, and enabling their
environments to sense and react. Wireless communications and services are enabled
by the convergence of two technologies, the Internet and wireless technology such
as mobile phones and personal digital assistant. And today's mobile devices fulfill
this need for real-time information and communication independent of the user‟s
location. A user can connect to the Internet wherever and whenever they want since
the mobile Internet has unique strengths over the stationary Internet. Abundant
information has indicated the proliferation of wireless Internet via mobile devices
which is creating unparalleled opportunities for m-commerce to leverage the
benefits of mobility. It allows consumers and businesses to build connectivity by
transcending time and place, increasing accessibility, and expanding their

social and business networks. Therefore, the proponents claim that the m-commerce
will surpass e-commerce in growth and scale because of the enhanced mobile internet
attributes.

30
4.1 Mobile Financial Services
The rapid pace adoption of next-generation mobile handsets has created
opportunities for new and innovative mobile services. One of the most promising,
while still marginally adopted, are mobile financial services. The wide penetration
and personal nature of mobile phones, the overall stability of mobile communication
technologies, and the positive experiences with mcommerce payments have made mobile
solutions applicable for a variety of financial services. Today, almost every
telecom company in Bangladesh introduced mobile payments system. Mainly mobile are
used to pay for popular mobile content and services since there are few alternative
payment solutions available. More generally, security and convenience have been
suggested as the key drivers for the growth of m-commerce. Personal mobile devices
are effective in identifying the payer and confirming the transaction. Despite the
claims of insecurity, the users seem to be willing to use quite simple mechanisms.
Lots of transaction is being introduced by Bangladeshi Telecom Company, such as the
money transfer from mobile to mobile, bill payment, Banglalink money transfer from
abroad to Bangladesh, etc.

4.2 Mobile Payments

Mobile payments are expected to become one of the most important applications in
mcommerce. M-commerce involves m-payment, which is defined as the process of two
parties exchanging financial value using a mobile device in return for goods or
services. Therefore, a widespread use of mobile phone has emerged a number of
payment schemes which allow the payment or goods/services from the mobile device.
Micro-payments can be implemented when a user make a toll call equal to the cost of
it paying via wireless vending service. Another way of micro-payment is to buy
prepaid numbers from a service provider, bank or credit card company and transfer
the payment. Remote mobile micro payments enable purchases of mobile content and
services such as news, games, tickets, and location-based services. Almost every
telecom company in Bangladesh introduced this Mobile payment system. GrameenPhone
introduced Electricity bill Payment, Gas bill payment, BD Railway E-ticket, Etc.

31
4.3 Information Search
After the bursting of dotcom bubble, e-commerce has gone downwards to hell. But the
evolution of mobile commerce has again worked as ambrosia for them. A separate
sector has been evolved to exercise on this field for the IT experts. The
webmasters have skillfully exploited this new area of IT-enabled commerce. In the
IT field, mobile commerce has been used massively to deliver financial news, stock
updates, sports figures and traffic updates and many more onto a single handheld
device „mobile'. Almost Every company has this information search facilities. News
alerts, Different seasonal Festival alerts, such as “Ramadan timing”, Namaz
schedule, sports alerts or

information, social networking alerts, etc.

4.4 Mobile Banking

Mobile banking services are valued by users because of the inherent time and place
independence, and the overall effort-saving qualities. Mobile banking services
enable users to receive information on their account balances via SMS. The new WAP
and Java- enabled mobile phones using General Packet Radio Service (GPRS) support a
wider variety of banking services such as fund transfers between accounts, stock
trading, and confirmation of direct payments via the phone‟s micro browser. The
mobile services are typically modified versions of the Internet banking services of
the particular bank and the architectures are backed by several banking industry
consortiums. Mobile Bank Service Provider Several banks have introduced

32
successful mobile financial services for smart phone users. Some bank provides
users with a wireless banking application, which is built using the same back-
office infrastructure as its Internet bank. City Bank has started their mobile
banking system in order to provide advanced customer service.

4.5 Mobile Advertising

Mobile advertising is a very important class of m-commerce; it augments location
information with personalization and delivers the obtained history of user‟s
purchases habits. Advertising on mobile devices has large potential due to the very
personal and intimate nature of the devices and high targeting possibilities. By
keeping track of user‟s purchasing habits and current location, a targeted
advertising campaign can be performed. Messages can be sent to all users who are
currently in a certain area (identified by advertisers or even by users) or to
certain users in all locations. Depending on interests and personality types of
individual users, advertisers could decide whether a “push” or “pull” form of
advertising is more suitable. Most users did not mind being pushed for mobile
location-aware services information, as long as they really needed the information.
A location-aware or location-based service is a service where a user‟s behavior is
mostly driven by location information. And proximity-triggered mobile advertising
is a special case of location-based notification services. Notification services
are user-driven, e.g. getting a notification when a set of conditions is met. On
the other hand, advertising is typically not userdriven, i.e. the recipient does
not request or pull the advertisements from a server, but they are pushed to
him/her instead. These services utilize a user‟s location to provide location-aware
content including information on restaurants, devices, users, and products. When a
mobile user enters an area, the list of services and location information can be
provided based on current preferences or the history of choices. For instance, one
user might be interested in knowing the availability and waiting time at one or
more restaurants close to his/her current location (pull).Another user might like
to be informed when one of his/her friend is located in the same general area
(push).Mobile Advertising Service Provider such as Airtel, GP, Teletalk are doing
this kind of advertisement. Companies itself new product & service promotions,
government promotions, NGO promotions etc. are been advertised widely in
Bangladesh. To create a uniform

33
set of guidelines for wide scale use of mobile advertising, the Advertising
Association and Marketing Association merged together.

4.6 Mobile Entertainment

Mobile entertainment (m-entertainment) is concerned with providing amusing and

enjoyable services for users via wireless technology to mobile devices. Most people
make some form of traditional „pure‟ entertainment part of their daily lives,
bringing these forms of content to mobile devices is an appealing notion. Mobile
entertainment is a Business-to-Consumer service which is done during leisure time.
Mobile Entertainment Services and Games (B2C) are applications providing
entertainment services to users on a per event or subscription basis. These include
video- on-demand, audio-on-demand, and interactive games. These companies offer
songs, caller tune service, videos, animations, love quotes, jokes, etc.

4.7 Mobile Gaming

Mobile devices offer the opportunity to play games nearly everywhere. Moreover,
networked games allow individual players to interact with other people and to
participate in a larger gaming world, which also provides for new business
opportunities. Advances in mobile computing and wireless communication technology
enable the creation of games with appealing graphics and game play on a variety of
mobile devices ranging from smart-phones to PDA‟s and other portable computing
devices. Therefore, the popularity of mobile games played on portable handsets is
increasing and the huge possibilities for growth in this area are already being
taken seriously by traditional “mobile telecommunications” handset vendors. Device
makers are designing GSM handsets with hardware and user interfaces specifically
designed for gaming as exemplified by Nokia with their recent N-gage device. In
essence these new devices offer players the ability to play head to head with their
friends or any other players at any time and in any place.

34
4.8 Mobile Music

A key advantage of mobile music is having user‟s phone and music player in the same
small device. Nokia has developed many mobile phones with integrated technologies
to play music, either from a digital music player or an FM stereo radio. A user can
hear Stereo FM radio, tune in to visual radio to see the screen of mobile device,
listen music as well as to download digital music tracks in AAC format. Instead of
carrying a MP3player a user can carry a mobile phone as a substitute. Mobile music
has become an important area of digital services for customer convenience and their
convenience is considered as a key. Nokia have together developed mobile music
service for mobile device users, where they can purchase digital music in a
protected file format. The music bought from the online music store is downloaded
to the user‟s computer and then transferred to the device. Apple as well provides
the same service through its I-store.

4.9 Mobile Shopping

Mobile extends users ability to make transactions across time and location and
creates new transaction opportunities. It is important to note that only a part of
the purchasing process is conducted with the mobile terminal. The basic point is
that user needs to know what he/she wants in advance of making a mobile purchase.
Moving forward, it seems most likely that a shopping list might be created with a
web interface, which may then be executed from a mobile. At the current stage of
technological development the customer must ideally be faced with a onebutton
purchase experience for mobile shopping. The purchase suggestions will often be
based on the user‟s past behavior patterns. “Cell bazaar” is a live example
introduced by Grameenphone to begin this sort of M-commerce.

4.10 Mobile Retailing

Mobile retailing is an interesting m-commerce application to use a Smartphone to
order pizza from a delivery service; this might be even more appealing than
ordering the pizza via internet,

35
because it takes a long time to boot the PC or a PC might not be available. M-
commerce combined with location identification creates new value, for example, when
ordering a taxi or a pizza the vendor can automatically know where the service is
to be delivered. However, there will be a large space for e-retailers to become m-
retailers, when the personalization and location issues are well addressed. Books,
CDs and groceries are often items, which the user knows well and where he needs
just a tool to make a purchase. The purchase will be made when the user has spare
time, independently of the shop opening hours and physical location. Lots of retail
shops give different seasonal gift if the consumer possesses a certain telecom
line, even order from some precise telecom subscriber give special discount.

4.11 Mobile Ticketing

Mobile electronic purchase or reservation of tickets is one of the most compelling
proposed services, because ticket reservation/purchasing are hardly a pleasant
expertise today. Either one has to go in person to a ticket booth, or has to call
an agency or the outlet. It is clearly more convenient to select and book tickets
directly from the mobile device, because often the decision to purchase is made
while outside or on the move among friends. Grameenphone E-ticket in Bangladesh
railway is a start of this kind of M-commerce. Banglalink is also offering the
ticketing service now.

36
5. M-marketing in Bangladesh: Status, Potential and Constraints

5.1 Potential market for more advanced m-commerce

Every day the use of mobile subscriber and the use of mobile services are
increasing. Bangladesh has been already proved a great potential market for mobile
telecom service. As a result a huge growth has been seen in last few years in m-
commerce. But there are yet now lots of section in m-commerce which can be
flourished. The introduction of 3G technology will take Bangladeshi Telecom Company
to a new stage and by which lots of innovative new and existing technology can be
introduced. More deeper, new user friendly technology and cheap m-commerce can
certainly help the whole country economy and life style to improve. The two things
which will help to accelerate this M-commerce are Customer Trust in M-commerce And
the Security Challenge in M-commerce. Wireless network is a common trouble in
Bangladesh that often causes customer‟s suffering during communication. But there
are some mobile service providers who have cover the whole network system around
Bangladesh and therefore wireless network problem is reducing now. Here the
companies should create a positive sense about this technology and as far as
possible safe and reliable transaction. This will help the M-commerce to boost up
to a new stage. Sending SMS and getting instant deduction from her mobile is
acceptable but buying products and divulging her credit card details with in a
wireless environment is rather risky secure transaction environment is a common
phobia in Bangladesh to adopt the m- commerce properly. The government
infrastructure is really lousy due to the high rate of corruption. Therefore, the
adoption rate of a utility bill payment with mobile device is still at a slow pace.
So the service provider has to gain the trust of general users that the transaction
environment with a mobile device is secure then there would be a possibility of
advanced mcommerce adoption in Bangladesh.

37
5.2 Government Legislation

For m-marketing to M-marketing in Bangladesh: Status, Potential and Constraints

develop requires an enabling environment that would ensure easy and quick movement
of inputs as well as goods and services within the country and cross border trade.
However, m-marketing related copyright protection is not covered in the new IPR.
According to the Evidence Act, 1881, a physical signature is necessary to make any
contract legal. This makes electronic contracts void under Bangladeshi law.
Contract Law in Bangladesh is governed by the Contract Act 1872. Cross border
contracts are legal, but a physical signature is necessary to validate the
contract. Legislation that legalizes digital certificates, electronic contracts,
also needs to be enacted to promote m-marketing.

5.3 Infrastructure: Status and Issues

Internet services are directly dependent on the telecommunication infrastructure of

the country. The Bangladeshi telecommunication sector is characterized by poor
level of penetration, high cost to access and a lengthy waiting period. Recent
inclusion of 3G (3rd generation telecom service) creates a prospect of m-marketing.

5.4 Governance

Bangladesh has an intractable problem of poor governance. M-marketing and FDI are
likely to reinforce each other‟s presence and growth. Acceptance and successful
application of m-

marketing e would enhance the business environment, sending signals to foreign

investors that it is becoming easier to do business in Bangladesh.

38
5.5 Major Constraints to M-marketing

This paper highlights various constraints to marketing and trade in general and m-
marketing in particular Mobile devices possess limitations(i.e. memory and battery
life)  Network operation cost is relatively high  Data transmitted in wireless is
vulnerable  Problem with wireless network(i.e. bandwidth, connection stability) 
Limited display size  Lack of secure transaction environment These are the
problems impede the progress of m-marketing in Bangladesh.

6. Recommendations

6.1 Introduction of Advance payment system

From paying any restaurant bill to almost all utility bills, PayMate allows mobile
subscribers to make payments for merchant services using their cell phones. It is
connected to merchants and banks to enable transactions. What‟s more it does not
require any additional software or SIM upgrade to process transactions.

6.2 Mobile Auctions

It includes applications that allow users to buy or sell certain items using
multicast support of wireless infrastructure. These applications require that group
membership not be adversely affected by brief wireless disconnection or
intermittent connectivity as observed in many wireless networks of today.

39
6.3 Third generation (3G) Technology

This Application services include wide-area wireless voice telephone, mobile

Internet access, video calls and mobile TV, all in a mobile environment. Through
this technology India‟s telecom companies introduce lots of m-commerce and almost
every service is being dependent through this technology.

Other M-commerce Services Online Buying Online Shopping Advanced Mobile Financial
Services Micro-payments Macro-payments Advanced Mobile Banking Fund Transfers
between accounts Stock Trading

40
7. Conclusion

According to the analysis of the websites and the literature review it can very
easily conclude that in less than a decade Bangladesh has achieved a lot in m-
commerce industry. The information of the websites is very recent on the contrary
the literatures found are of back in 3 years or more than that. The recent pictures
of m-commerce industry is noticeably different from that was at that time. Despite
being a member of third world country the m-commerce industry has improved a lot
here. There are some more websites working in the country at present which are not
mentioned in the report. And the most positive thing is now every renowned
organization is trying to have a virtual space by which at least the interested
individuals can get some pictures about the organization. The Internet came late to
Bangladesh with connectivity in 1996. In the last few years it has grown
dramatically, although obviously from a very low base. With an estimated user base
of around 500,000 in early 2006, and now in 2011 it has come to 5,501,609. There is
reason behind this boost up and it is the revolution in telecom industry. Over the
last two to three years, the number of mobile subscribers in Bangladesh has been
more than doubling on an annual basis. However, it blessed the e-commerce industry
too. Investors are now a bit more assured that they have potential to reach to the
mass people. To sum up, it can be said that the beginning already has been started;
now it needs a strong backup which will support the progress smoothly, guide it
with proper regulations, and protect it from all jeopardy. We hope the progress of
the m-commerce will soon turn into e-commerce for Bangladesh and it will bring the
positive output in log run.

41
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http://www.esan.edu.pe/paginas/PDF/15veijalamenyotros.pdf,retrieved on,17.07.2012.
16. Müller-Veerse, F., 2000, Mobile Commerce Report, World Wide Web:

http://www.dad.be/library/pdf/durlacher1.pdf,retrieved on 17.07.2012. 17.

UNCTAD,2002,ECommerceandDevelopmentReport2002,UnitedNationsConferenceonTrade
Development, New York, NY (a.o.). 18.
Khodawandi,D.,Pousttchi,K.andWiedemann,D.G.,2003,AkzeptanzmobilerBezahlverfahren in
Deutschland, inPousttchi, K. and Turowski, K. (Eds.): Mobile CommerceAnwendungen
undPerspektiven,Augsburg 2003,pp.42-57. 19.
Wirtz,B.W.,2001,ElectronicBusiness.2.Edition,Gabler,Wiesbaden. and

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9. Appendix

Project Questionnaire On
Mobile Marketing and Its Prospects in Bangladesh

I am the students of Department of Business Administration of East West University.

For the purpose of my course requirement, the following questions are designed to
find out the Research conducting by
Md. Maruf Hassan 2008-2-10-126

Mobile Marketing and Its Prospects in Bangladesh. This survey is being conducted
only for my academic purpose. The provided information will be kept confidential
and will be

Department Of after the Administration work. Your cooperation will be highly

appreciated. demolished Business finishing of the

Servey conducting by: Vezen Tahari 2008-2-10-022 Department Of Business

Administration

Please turn the page and continue

44
Part A I. A) B) II. Do you use Mobile Phone? (If yes continue further) Yes No
Please put your level of agreement with the following statements in any range from
1-7 scale; where 1 stands for strongly disagree & 7 stands for strongly agree.

Factors No

Strongly Agree (7)

Agree

Agree Somewhat

Neutral

Disagree Somewhat

Disagree

Strongly Disagree

(6) 6

(5) 5

(4) 4

(3) 3

(2) 2

(1) 1

I think Mobile marketing is growing in Bangladesh

Mobile marketing made the life easier for users

I think mobile marketing have good prospect in Bangladesh

7

Mobile

marketing

brought

new dimension in marketing 5 I have heard about mobile advertising 6 7 I get mobile
advertise by sms I think mobile advertise is effective way for marketing 8 9 I know
about mobile banking I prefer mobile banking than regular banking 10 11 12 Mobile
banking is easy to use I know about mobile ticketing I use mobile ticketing for 7 7
7 6 6 6 5 5 5 4 4 4 3 3 3 2 2 2 1 1 1 7 7 6 6 5 5 4 4 3 3 2 2 1 1 7 7 6 6 5 5 4 4 3
3 2 2 1 1 7 6 5 4 3 2 1

45
purchasing tickets 13 I want mobile ticketing for all kind of ticketing service 14
I am happy with traditional bill pay system 15 I use mobile bill pay service for
payment of my utility bill 16 I want Mobile bill pay service for all kind of bill
payment 17 18 I use mobile for fund transfer Mobile fund transfer is easy to use 19
Mobile fund transfer should be available for everyone 20 21 Mobile buy-sell is easy
to use I use mobile for buy-sell purpose 22 Mobile buy-sell is easier than regular
buy-sell system 7 6 5 4 3 2 1 7 7 6 6 5 5 4 4 3 3 2 2 1 1 7 6 5 4 3 2 1 7 7 6 6 5 5
4 4 3 3 2 2 1 1 7 6 5 4 3 2 1 7 6 5 4 3 2 1 7 6 5 4 3 2 1 7 6 5 4 3 2 1

Part B III. A. B. What is your Gender? Male Female

IV. A. B. C. D. E.

In what age group are you? Under 18 18-22 22-26 26-30 Over 30

46
V. A. B. C. D. E.

What is your level of education? Primary SSC HSC Undergraduate Postgraduate

VI.

What is your family monthly income? A. 10000 – 15000 B. 15000-25000 C. 25000-35000

D. 35000- 45000 E. F. 45000-60000 60000+

VII. A. B. C. D. E.

In terms of your occupation, how would you characterize yourself? Business person
Public Worker Private Worker Student Other [please specify] ……………………

Thank you for your time and cooperation.

47