CUSTOMERS’ ATTITUDES TOWARDS ADVERTISEMENT ON THE

TELECOMMUNICATION COMPANIES IN BANGLADESH

Rashel Sheikh1*, Masud Alom2 and Farooq Hossan3

ABSTRACT
This article focuses on customers’ attitudes towards advertisement of the telecommunication
companies in Bangladesh. The data was collected from different customers using judgment
sampling method. More than seven hundred respondents are taken as a sample from the south
and middle regions of Bangladesh. The customers’ attitudes were analyzed using factor analysis
and resulted in five categories i.e., a) Realistic b) Time conscious c) Rationalist d) Careful and e)
Fantasy. KMO and Barlett’s test was also used to measure sampling adequacy and to analyze the
strength of associations among different variables. Findings will provide tremendous
opportunities to telecommunicating companies understanding consumers and their attitudes
toward telecommunication advertising in Bangladesh.
Keywords: Customer, advertisement, telecommunication, attitude, factor, Bangladesh

INTRODUCTION
Advertisement is a great tool in sales promotion of a business. Advertisement has become an
inevitable part nowadays. There are six telecommunication service providers in Bangladesh.
They are Grameen Phone Ltd. (GP), Banglalink Digital Communications Limited, Robi Axiata
Limited, Airtel Bangladesh Limited, Pacific Bangladesh Telecom Limited (Citycell) and Teletalk
Bangladesh Limited. Most of the telecommunication companies broadcast their advertisements
in different TV channels, in radios, in different newspapers and also in the form of SMS or
phone calls and in different forms. These advertisements have a strong effect on customers’
attitudes. Fishbein (1967) defined attitudes as, “a learning predisposition of human beings.”
Based on this predisposition, an individual would respond to an object (or an idea) or a number
of things (or opinion). Customers react differently to their varieties of advertisements.

1
Lecturer, Department of Accounting, Hamdard University Bangladesh
2
Lecturer, Department of Management, Hamdard University Bangladesh
3
Assistant Professor, Department of Marketing, Hamdard University Bangladesh
*Corresponding author, E-mail: rashelsheikh@yahoo.com
118 Journal of Hamdard University Bangladesh

About 159 million people live in Bangladesh (BBS). The total number of Mobile Phone
subscribers has reached 121.860 million at the end of January 2015 according to BTCL.
Grameen Phone Ltd. (GP) is the biggest operator reaching more than 51million people and
Banglalink Digital Communications Limited is the second telecommunications service provider
in Bangladesh reaching more than 31 million people. Robi Axiata Limited (Robi) is the third
telecommunications service provider in Bangladesh reaching more than 26 million people.
Therefore, attitudes of customer toward advertisement of telecommunication companies are
important.
Consumers’ exposure and attention toward advertisement is likely to be influenced by their
personal attitudes. Customers’ attitudes and perceptions play an essential role toward the success
of any product campaign (Bond and Griggs, 1996). Therefore public attitudes toward
advertisements have been a researched area for quite a long period (Mittal, 1994; Polly and
Mittal, 1993; O’Donohoe, 1985; Zanot, 1984).
Regardless of the objectives and intention of the advertisers if the perception and opinion of
target customers is not favorable all the efforts of the interested parties will be wasted (Ducoffe,
1996; Alwitt & Prabhaker, 1994). Hence it is imperative to explore customers’ attitude, belief,
values and benefits about the usage and benefits of advertising from the prospective of
advertisement policy makers and marketers. This study mainly focuses on exploring the beliefs
and attitudes of customers toward advertisement in relation with product information, publicity
benefit and role of advertisement in the selection process of telecommunication product (SIM-
Subscriber Identification Module). The research results will be beneficial for the
telecommunication companies for future advertisement of their product and different packages of
product.
LITERATURE REVIEW
Advertisements have become an integral part of today’s consumer life. Consumers are
bombarded daily with huge number of advertisement through a variety of media and there is a
constant increase in the variety of media carrying advertisement messages (Krugman, Reid,
Denn and Barban, 1994). In the recent past much research has focused on public attitude toward
advertisement (Polly and Mittal 1993). No research has been done about the advertisement of
telecommunication companies of Bangladesh. More people think positively about advertising
than negatively and positively lead to the belief that advertising is essential (Bauer and Greyser,
1968).
Customers’ Attitude Toward Advertisement 119

The perceived benefits and value of an advertisement is central to the success of a product.
Therefore, it is very important for the advertisers to know about the perceptions, beliefs and
opinion of targeted consumers (Ducoffe, 1996; Sandage and Leckenby, 1980). In recent time fact
food companies of Bangladesh are spending huge amount of budget every year on advertisement
to promote their product, particularly to young consumers. The young consumers are
significantly influenced by TV advertisement (Rahman et al. 2013). Tween-agers in Bangladesh
are well aware of various dimensions of advertisements that influence desire to purchase
different products (Razzaque, 2009).
Along the same line, Haider (2014) conducted a study to know prioritization of factors affecting
consumer attitude towards mobile advertisement: a study of Pakistani youth and he scrutinize the
attitudes of customers of the Sargodha city (Pakistan) towards mobile advertising applications.
He initiates and launch mobile message advertising applications as companies knows the
importance of this channel in the close to future and when companies devote more in adopting
and mounting mobile media as a channel of communication.
Attitude towards advertisement of university students also differ significantly. Students have
positive judgment about the economic impact of advertising and have negative judgment about
the ethical and social consequences of advertisement (Ahmed, 2013). If mobile advertisers can
present mobile ads pleasingly, with appropriate information, consumers will not be annoyed and
there is a fair possibility that they will gradually like the ads. Furthermore, credibility is the most
significant factor affecting customers’ attitudes toward mobile ads (Chowdhury et al., 2006).
Mobile advertising is the most cost effective and new tools for the promoter. Advertising
content, format and structure must be accurate, attractive and accepted by the target audience or
receiver of mobile advertisers (Huq et al., 2015). Saeed et al. (2013) have found that the
effectiveness of the mobile advertisement on the consumer behavior, that's how different people
would act or what would be their response upon receiving the mobile advertisement. They also
observed that the consumers generally have a negative attitude toward the mobile advertisement
unless the advertisers had specifically taken the consent of the consumer.
On the other hand, Zabadi et al. (2012) have studied those consumer attitudes toward SMS
Advertising among Jordanian Users. They identified that consumer’ perceptions of the
entertainment value, in formativeness and credibility of SMS advertisements are positively
correlated with consumers’ overall attitudes towards SMS advertisements. Attitude toward
advertising via mobile devices strongly depends on characteristics of message.
120 Journal of Hamdard University Bangladesh

Along the same line, Rohm et al. (2012) stated that three factors perceived usefulness; consumer
innovativeness and personal attachment have a major influence on consumers’ attitude towards
mobile marketing. The study concluded that mobile marketing is providing an innovative
platform to communicate with the consumers with new and profitable opportunities for the firms
to develop or alter consumer attitudes towards a brand by the virtue of value added content.
Punyatoya and Durgesh (2011) found that message credibility, consumer perception of message
customization, message content, and consumer‘s ability to use mobile phone positively influence
their attitude towards acceptance of mobile advertising. But consumer inertia negatively
influences consumer mobile advertising acceptance.
Tsang et al. (2004) studied the consumers’ attitude towards mobile phone advertising and its
relationship with overall consumer behavior. This research described entertainment, in
formativeness and credibility has a positive impact on consumer attitude towards mobile
advertisement while irritation negatively influence consumer advertising attitude.
Bose et al. (2010) the research attempted of SMS advertising and its prospects in Bangladesh and
they examine whether SMS advertising can be an effective medium of advertising in
Bangladesh. Consumers have shown a positive attitude in accepting SMS ads via their mobile
phones. The study will contribute significantly regarding the policy making of both the business
professionals as well as advertising professionals in selecting and establishing the proper
advertising methods as well as medium in future for operating in the best possible way in the
country.
Luxton et al. (2009) identified that the key drivers of consumer attitudes toward mobile
marketing are posited as perceived entertainment, credibility, reward, technological familiarity,
and message frequency. Consumer shopping orientation is posited to act as a mediator, and age,
gender and education also have an influence.
But there is no sufficient article regarding advertising of telecommunication companies in
Bangladesh.

OBJECTIVES OF THE STUDY

This study has the following specific objectives:
(i) To determine customers’ attitudes toward advertisement of the telecommunication
Companies in Bangladesh
(ii) To determine the principal factors that affect customers’ attitudes toward advertisement
in Bangladesh
Customers’ Attitude Toward Advertisement 121

(iii) To identify factors that affect customers’ attitudes toward advertisement in Bangladesh

METHODOLOGY OF THE STUDY

A structured questionnaire was prepared based on group discussion and objectives of the study.
The questionnaire was organized into two sections: Demographic and Analytical. Demographic
information includes sex, occupation, age, educational level, and operator which he uses.

SAMPLING AND COLLECTION OF DATA

This research is mainly based on primary data. Some secondary data were also used. A sample of
total seven hundred and twenty two (722) questionnaires is taken in this study from middle and
south regions of Bangladesh. The judgment sampling method was used in the selection of the
respondent. All samples were collected through the students of Northern University Bangladesh
(NUB) and students of Hamdard University Bangladesh (HUB). Before collection of
information, they were given a lesson about questionnaire. Out of total 900 questionnaires,
student collected 756 questionnaires, of which, 34 were considered problematic due to excessive
missing data, refusal to answer many questions and response biases. Finally 722 questionnaires
are selected for this study purpose. Most of the questionnaires are collected between the periods
of December 2014 and April 2015.
Table 01: Administration of Questionnaire
Student group No of Questionnaire No of Questionnaire Percentage
Administered Returned
Section-7A, NUB 150 110 73
Section-7B, NUB 150 130 87
Section-11A, NUB 150 126 84
Section-4 batch, HUB 150 139 92
Section-5 batch, HUB 150 115 76
Section-EEE, 2nd, HUB 150 136 91
Total 900 756 84

Source: Field survey data from December 2014 to April 2015

122 Journal of Hamdard University Bangladesh

PROCESSING AND ANALYZING OF DATA

Responses derived from the questionnaires were coded, entered and analyzed by the use of
Statistical Package of Social Science (SPSS). SPSS 16.00 was used for all of the statistical
analysis. This study is based on factor analysis. Factor analysis is a technique which is used to
reduce a large number of variables to some smaller number by telling us which belonging
together and which seem to say the same thing (Emory and Cooper, 1991). Prior to factor
analysis Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy and Barlett’s test of
sphericity were measured to analyze the strength of associations among variables. KMO is
calculated at first to determine the suitability of data for factor analysis. On the other hand,
Barlett’s test statistic is used to examine the hypothesis that correlation matrix is an identity
matrix (Malhotra, 2008).

RESULTS AND DISCUSSIONS

DEMOGRAPHIC CHARACTERISTICS OF RESPONDENTS
We have demographic attributes like gender, occupation, age group, education level, network
that he uses most. Total 722 respondents are finally taken which is shown in Table-02.
In table-2, it is found that the majority portion of our respondents is male (69.50%) and
remaining 30.50% is female. Most of the respondents are students (76.2%) and are between the
aged of 20 and 30. Other respondents are housewives, unemployed, self-employed, service
holder of govt. or semi-govt., service holder of private or international organization, industrialist,
businessman of small enterprise, businessman of medium or large organization etc. To discuss
the education level of the respondent, most respondents are graduated (60.1%). The operator
which one is used most is Grameen Phone (GP) that consists of approximate 33% of the total
respondents.
Customers’ Attitude Toward Advertisement 123

Table 02: Demographic of Respondents

Variables Attributes Frequency Percentage
Gender Male 502 69.5%
Female 220 30.5%
Occupation Student 550 76.2%
Housewife 49 6.8%
Unemployed 07 1%
Self-employed 06 0.8%
Service holder-govt. or semi-govt. 33 4.6%
Service holder-Private or int. org. 41 5.7%
Industrialist 03 0.4%
Businessman-Small enterprise 26 3.6%
Businessman-medium or large 4 0.6%
Others 3 0.4%
Age group Below 20 years 125 17.3%
20-30 481 66.6%
30-40 72 10%
40-50 33 4.6%
50 years and above 11 1.5%
Education level SSC or below 51 7.1%
HSC 173 24.0%
Honors or graduation 434 60.1%
Masters 59 8.2%
M. Phil or Ph. D 5 0.7%
Which operator do GP 235 32.5%
you use most? Banglalink 226 31.3%
Robi 129 17.9%
Airtel 115 15.9%
Citycell 10 1.4%
Teletalk 7 1%
Source: Field survey data from December 2014 to April 2015
124 Journal of Hamdard University Bangladesh

FACTOR ANALYSIS
First in this study, the KMO (Kaiser-Meyer-Olkin) measure of sampling was calculated in table-
03, to examine whether our variables are appropriate or not for factor analysis. Our KMO value
is 0.881 that exceeds 0.50 which implies that factor analysis is useful with the data. We have also
calculated the Bartlett's Test of Sphericity. The result of Chi-Square is approximately 5.065E3
for Bartlett's Sphericity strongly allows for the appropriateness of using factor analysis with a
significant value of 0.000. Hence, the variables used in this study are correlated.
Table: 03 KMO and Bartlett’s Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .881

Bartlett's Test of Sphericity Approx. Chi-Square 5.065E3

df 300

Sig. .000

Source: Field survey data from December 2014 to April 2015

To identify the principal factors in factor analysis, we consider Eigen value greater than one and
we get five principal factors out of 25 variables in Table-04. These principal factors consist of
51.30 percent of total variance. To determine the minimum loading necessary to include the
variable in its respective principal factor, variables with a loading of 0.4 or greater are significant
and should include in factor analysis (Hair.et al-1998). Thus all variables with factor loading of
0.4 and above are retained in the study.
Customers’ Attitude Toward Advertisement 125

Table 04: Results of Factor Analysis

Principal Factors and Variables Factor Eigen % of
Loading Value Variance
Factor one: Realistic 4.806 19.224
Telecommunication (Tele.) ads increase social awareness .639
Tele. Advertisements (Ads) are enjoyable and entertaining .726
Tele. ads are more enjoyable than other adds .690
Tele. ads provide valuable source of information .516
Tele. ads keep us up-to-date about the product .535
Tele. ads tells me which offer I need .622
Tele. ads promote competition which benefit customers .606
Tele. ads influence greatly the young generation in fashion
and lifestyle .462
Tele. ads help raise our standard of living .580
Tele. ads give new idea or concepts .699
Tele. ads give inspiration and motivation .658
Factor two: Time conscious 4.473 17.894
There should have laws relating to advertisement including
Tele. Ads .536
Tele. ads is so long that is boring to watch .517
Tele. ads exaggerate facts which is not real .570
Repetition of Tele. ads is disgusting .704
SMS (Short Message Service) and call from Tele. company
is disturbing .707
Factor three: Rationalist 1.421 5.684
Tele. ads makes people buy a lot they do not really need .696
Tele. ads promotes undesirable values in our society .698
Tele. ads is wasteful of economic resources .553
Tele. ads distort the value of young generation .575
Some Tele. ads are ridiculous and illogical .511
Factor four: Careful 1.087 4.348
Watching Tele. ads is nothing but wasting of time .593
Bill board Tele. ads is unnecessary .769
Bill board Tele. ads causes road accident .537
Factor five: Fantasy 1.037 4.149
Tele. ads makes people live in a world of fantasy .805

Source: Field survey data from December 2014 to April 2015

The first principal factor ‘Realistic’ in Table-04 consists of eleven variables and account for
19.224 percent of total variable. These variables are: Tele. Ads increase social awareness; these
ads are enjoyable and entertaining; ads are more enjoyable than others; Tele. Ads provide
valuable source of information; Tele. Ads keep us up-to-date about the product; Tele. Ads tell
me which offer I need; Tele. Ads promote competition which benefits customers; Tele. Ads
126 Journal of Hamdard University Bangladesh

Influence greatly the young generation in fashion and lifestyle; Tele. Ads help raise our standard
of living; Tele. Ads give new idea or concepts, and Tele. Ads give inspiration and motivation.

The second principal factor ‘Time conscious’ occupies 17.894 percent of total variance and
consists of five variables. These variables are: there should be laws relating to advertisement;
long ads are boring to watch; ads exaggerate facts which are not real; Repetition of ads is
disgusting; and SMS and call from company is disturbing. Therefore, telecommunication
companies should aware about time factor before broadcasting any advertisement.

The third principal factor, ‘Rationalist’ shows 5.684 percent of total variable and consists of five
variables. These variables are: Tele. Ads make people buy a lot they do not really need; ads
promote undesirable values in our society; ads are wasteful of economic resources; it distort the
value of young generation, and some Tele. Ads are ridiculous and illogical.

The fourth principal factor, ‘Careful’ shows 4.348 percent of total variable and consists of three
variables. These variables are: watching Tele. Ads are nothing but wasting of time; Bill board
Tele. Ads are unnecessary, and it causes road accident. In this study, most respondents agree that
bill board advertisement is not necessary.

The fifth principal factor is ‘Fantasy’ and that is responsible for 4.149 percent of total variable. It
consists of only one variable- Tele. ads makes people live in a world of fantasy.

Ranking of Principal Factors

Total five principal factors are ranked according to their importance on the basis of their mean
score which is shown in Table-05. The principal factors are (i) Realistic (ii) Time conscious (iii)
Rationalist (iv) Careful and (v) Fantasy. The top three factors are rationalist, realistic and
Fantasy. The mean scores are 4.0194 (Rationalist), 3.8682 (Realistic) and 3.5623 (Fantasy)
respectively.
Customers’ Attitude Toward Advertisement 127

Table 05: Ranking of Principal Factors

Factors Mean Standard Rank
Deviation
Factor one: Realistic 3.8682 .62740 02
Factor two: Time conscious 3.5224 .82383 04
Factor three: Rationalist 4.0194 .82416 01
Factor four: Careful 3.3264 .93746 05
Factor five: Fantasy 3.5623 1.12696 03

SECOND ORDER FACTOR ANALYSIS

Analyzing 25 basic variables, five principal factors were identified namely a) Realistic b) Time
conscious c) Rationalist d) Careful and e) Fantasy. These attitudes were finally summarized into
two higher-order thoughts i.e., (a) Sanguine; and (b) Antagonist which is shown in Table-06.
Sanguine includes realistic and fantasy. This school of thought has very positive, encouraging
and cheerful attitude toward advertising. Antagonistic, On the other hand, antagonist includes
rationalist, time conscious and careful factors. This school of thought has some negative attitude
toward advertising.
Table 06: Second Order Analysis

Component

Antagonist Sanguine

Realistic .845
Rationalist .785
Time Conscious .848
Careful .821
Fantasy .700

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.
128 Journal of Hamdard University Bangladesh

FINDINGS OF THE STUDY

This research study tried to analyze the factors that affect the customers’ or consumers’ attitudes
toward the advertisement of the telecommunication companies in Bangladesh. The result
indicated that out of total twenty five factors five principal factors are identified. Most of the
factors fall in ‘Realistic’ factor. This factor says that most respondents or customers are realistic.
They think that telecommunication ads are enjoyable, creative; entertaining and it increase social
awareness. They also think that these ads are informative, up-to-date, inspiring and influence
greatly the young generation in their fashion and lifestyle. Second principal factor is ‘Time
Conscious’. They think that SMS or call from company, repetition of ads and lengthy ads are
disgusting. They prefer advertisement to be based on real facts.
‘Rationalist’ is the third principal factor. They opine that advertisement should be logical. They
say that some ads distort the value of young generation and ads are waste of economic resources.
The last two factors are ‘careful’ and ‘fantasy’. Careful respondents think that billboard ads are
not necessary and it may cause road accidents. Fantasy respondents think advertisement makes
people live in a world of fantasy.

CONCLUSION AND RECOMMENDATIONS

All the telecommunication companies of Bangladesh broadcast varieties of advertisement all the
year round. Every year these companies spend a huge amount of money in their advertisement.
They broadcast advertisement in different TV channels, in radios, by SMS and/ or phone calls to
customer, in bill board, etc. Customers’ attitudes also change by the varieties of advertisement in
different forms by these companies. They may be Realistic, Rationalist, Time Conscious,
Careful, and Fantasy. Telecommunication companies should consider the attitudes of the
customers in this regards.
In the light of the above discussion, the following recommendations may be offered for the
telecommunication companies as well as for other advertising companies of Bangladesh:
(i) Most of the audiences of telecommunication companies are realistic. They think that
advertisement should be real, informative and inspiring.
(ii) Customers are also conscious about the time factor. They expect that advertisement
should not be too long to hold the attention of the audience. Therefore, short and
meaningful advertisements have a good impact on customers’ attitude.
(iii) Repetition of advertisement is disgusting. Company should also avoid free SMS and free
calls to the customers. This is boring and time wasting.
Customers’ Attitude Toward Advertisement 129

(iv) The rationalist customers opine that advertisement should be logical. Companies should
avoid billboard advertisement. Illogical and billboard advertisement is nothing but waste
of economic resources.

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Appendix-A

Total Variance Explained

Extraction Sums of Rotation Sums of Squared
Initial Eigen values Squared Loadings Loadings
% of Cumulative % of Cumulative % of Cumulative
Component Total Variance % Total Variance % Total Variance %
1 4.806 19.224 19.224 4.806 19.224 19.224 4.326 17.304 17.304
2 4.473 17.894 37.118 4.473 17.894 37.118 2.826 11.302 28.606
3 1.421 5.684 42.801 1.421 5.684 42.801 2.488 9.953 38.559
4 1.087 4.348 47.149 1.087 4.348 47.149 1.913 7.651 46.211
5 1.037 4.149 51.299 1.037 4.149 51.299 1.272 5.088 51.299
6 .934 3.736 55.035
7 .878 3.511 58.546
8 .856 3.425 61.971
9 .779 3.115 65.086
10 .750 3.002 68.087
11 .727 2.909 70.997
12 .682 2.727 73.724
13 .656 2.624 76.348
14 .633 2.530 78.878
15 .592 2.368 81.246
16 .558 2.233 83.480
17 .534 2.135 85.615
18 .532 2.129 87.744
19 .503 2.013 89.757
20 .484 1.936 91.693
21 .457 1.827 93.520
22 .438 1.751 95.271
23 .410 1.640 96.911
24 .400 1.599 98.510
25 .373 1.490 100.000
Extraction Method: Principal
Component Analysis.
132 Journal of Hamdard University Bangladesh

Appendix-B

Rotated Component Matrix a

Component
1 2 3 4 5
Tele. ads increase social awareness .639
Tele. ads are enjoyable and entertaining .726
Tele. ads are more enjoyable than other adds .690
Tele. ads provide valuable source of information .516
Tele. ads help up-to-date about the product .535
Tele. ads tells me which offer i need .622
Tele. ads promote competition which benefit customers .606
Tele. ads influence greatly the young generation in fashion and lifestyle .462 .438
Tele. ads help raise our standard of living .580
Tele. ads gives new idea or concepts .699
Tele. ads give inspiration and motivation .658
There should have laws relating to advertisement including tele. ads. .536
Tele. ads makes people buy a lot they do not really need .696
Tele. ads promotes undesirable values in our society .698
Tele. ads is wasteful of economic resources .553 .469
Tele. ads is so long that is boring to watch .517
Tele. ads distort the value of young generation .575
Some tele. ads are ridiculous and illogical .450 .511
Tele. ads exaggerate facts which is not real .570
Watching tele. ads is nothing but wasting of time .593
Repetition of tele. ads is disgusting .704
Bill board tele. ads is unnecessary .769
Bill board tele. ads causes road accident .537
SMS and call from tele. company is disturbing .707
Tele. ads makes people live in a world of fantasy .805
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.