BENNETH CHINEDU ORGU Student No.

: 65921 Semester 2: Sept 2010

FINAL RESEARCH PROPOSAL

WAMB4059:

RESEARCH METHOD AND DISSERTATION

MBA University of Wales

Word count: 3493 words Tutor: Deadline: Dr. Tony Nwanji 12.00pm Friday 14 January 2011

RESEARCH TOPIC:

AN INVESTIGATION INTO CUSTOMERS PERCEPTION TOWARDS TELEMARKETING IN AN EMERGING MARKET: A CASE STUDY OF ZENITH BANK PLC IN NIGERIA.

TABLE OF CONTENTS
RESEARCH TOPIC INTRODUCTION RESEARCH AIM AND OBJECTIVES 1 3 3

RESEARCH QUESTION RATIONALE FOR RESEARCH STUDY BACKGROUND FOR STUDY LITERATURE REVIEW RESEARCH PARADIGMS RESEARCH METHODOLOGY RESEARCH METHOD ETHICAL ISSUES TIME TABLE CONCLUSION REFERENCES

4 4 5 6 8 10 10 11 12 12 13

INTRODUCTION Telemarketing is a process that involves an interaction between an organisation or company and its customers, by making uses of a comprehensive system of media and methods to bring out a response. According to Mehrotra and Agarwal (2009) it is the art and science of getting the right offer, to the right people, at the right time, and recording and fulfilling their request for products or services. Telemarketing is used in

a variety of industries, including Telecommunications, Banking / Financial Services, Insurance, Mail Order/Catalogues, Travel and Tourism, Charity/Non-Profits and Publishing. Telemarketing is a more dominant method of direct marketing being used by companies to reach out to customers in which contact between customers and salespersons is established via the medium of telephone. Recently customers have been worried about the intrusiveness of such marketing tools in relation to their right for privacy. In some developed countries, government have stepped in and pass into law restricting companies of making incessant calls at odd hours to their customers. The customers in emerging market are also nursing the same perception and showing the same attitude towards telemarketing due to the fact that the mobile telecommunication in such market like Nigeria are still new, hence people find it difficult to respond positively to telemarketing. This has necessitated the study of the customers attitudes of Zenith Bank Plc in Nigeria towards telemarketing. With the rapid increase of customers joining the DO NOT CALL list in most developed countries, the developing countries need to re-evaluate the telemarketing tool of direct marketing to ensure sustainability and also prevent the market to degenerate to the option of DO NOT CALL list. RESEARCH AIMS AND OBJECTIVES Based on the recent happenings in the most developed countries, the research will be undertaken, in order to understand the attitude of customers towards telemarketing in an emerging market such as Nigeria by focusing on Zenith Bank Plc and its existing customers. This would enable companies to know how to effectively utilised telemarketing as a tool for marketing. The main objectives for the research would include: To analyse customers perception towards telemarketing in Nigeria To identify and classify customers on the basis of their attitude towards telemarketing To analyse the effect of this attitude on customers purchase intention To recommend to marketers how to best utilized telemarketing

RESEARCH QUESTIONS Customers privacy concern, intrusive advertisement through telephone and over exploitation of customers goodwill, are becoming issues needed to be addressed in the way companies make use of the telemarketing. There are many problems with 4

the current telemarketing practise in emerging market like Nigeria, using Zenith Bank Plc as a case study. To identify and deal with these issues, the study will base its research on the following questions: 1. Do unsolicited calls from marketer create any intension for purchase in customers? 2. How do companies in an emerging market like Nigeria develop an effective telemarketing strategy to increase sales? 3. Who is responsible to ensure ethical, friendly and result oriented telemarketing?

RATIONALE FOR THE RESEARCH STUDY Direct marketing especially the outbound telemarketing has been one of the most significant developments in marketing in recent years which is used to reach out to both the existing and potential customers. Bendremer (2003) indentified that telemarketing takes two forms which are cold and warm telemarketing. The cold telemarketing is making contact with potential consumers while warm telemarketing is making calls to existing customers. According to Prins and Verhoef (2007) telemarketing focuses mainly on directly influencing existing customers buying behaviour. Fill (2009) defines it as a strategy use to create a personal and intermediary free dialogue with customers, but must be a measurable activity. The consequences on society of the behaviours of buyers, the behaviours of sellers, and the institutional framework directed and consummating and/or facilitating exchanges is important for sustainable marketing through an effectively managed telemarketing (Hurst, 2008:113). This emphasizes on the need to understand the behaviour of consumers in a society and not as individual for purpose of sustaining telemarketing as an effective tool for organisations. Dietz (2005) defines that, consumers are better at deliberation rather than calculation, because deliberative approach revealed that consumers have evolved to make important decision through discussion. The sustainability of this approach is hanged upon the phenomenon of overshoot and the ability to avoid it (Meadows, Randers and Meadows, 2004). To overshoot means to go too far, to go beyond limits accidentally without intention (Meadows et al., 2004:1). Overshooting by marketers has lead to so many governments and regulatory bodies in developed countries to put stringent to the practise of telemarketing, such as the DO NOT CALL list enacted in U.S (FTC, 2005) and the Telephone Preference Service (TPS) in the United Kingdom (Parsons, 2010). Hence

consumers behaviour and perception is paramount to the survival of telemarketing, therefore there is need for effective use of it in the emerging market such as Nigeria. BACKGROUND FOR THE STUDY The mobile telecommunication system that begins its full operation in Nigeria in 2001 is still new in the countrys system and has not yet covered the whole geographical region of the country. With just about 77millions active subscribers line after 9years since its inception in a country of about 150 million populations and also a record of 6.5millions and 1.2millions actives mobile (CDMA) and Fixed wired/wireless respectively (NCC report, 2010). This shows that people are not yet rooted with the culture of using mobile telecommunication to do majority of their activities. As consumers become increasingly pressed for time and overburdened with choices, convincing them to purchase a marketers products or services is subsequently becoming more difficult. Thus, one of the most valuable avenues for marketers today is direct marketing, especially telemarketing, which provides easy access and communication with consumers, allowing companies to reach customers whenever they want and wherever they want. Hence the attitude of Zenith Banks customers towards the companys telemarketing approach will be examined. As Nigeria improves its Information Technology and celebrates GSM roll-out, many companies saw it as an opportunity generator, by using it to explore the market. The growth of any company depends largely on the success of its marketing department, because this department sells out the product or services of such company to the end users. Though there are etiquette guiding telemarketings, but these are always not adhered to by salespersons or marketer, due to the pressure from the management, for improvement in sales, thus leading to overshooting.
ZENITH BANK PLC

Zenith Bank Plc, a technology-driven global financial institution, is one of the leading and most profitable banks in Nigeria with its overall assets plus contingents of about N1.7trillions. The bank which started operations in 1990, was established in the same year, and in 2004 became a Public Limited Company (PLC), hence was listed on the Nigeria Stock Exchange (NSE) with over 1millions shareholders (Zenith Bank report, 2010). In order to remain as the leading bank in Nigeria, by maintaining and improving its customers database, and also by given excellent customers services through the offering of new products and services, Zenith Bank Plc like many other companies is using telemarketing as a tool to reach out to their customers. 6

LITERATURE REVIEW According to Prins and Verhoef (2007) the effect and impact of direct marketing communication on the consumers buying behaviour in the recent time has gained awareness in the academic marketing literature. Though, Venkatesan and Kumar (2004) initially reported that telemarketing has a reasonable positive effect on the purchasing frequency of customers, the negative impact is becoming larger. Hurst (2008) explained that, though telemarketing as a tool of direct marketing is a good development, but marketers are using it to over exploit customers goodwill and loyalty and that there is need to understand goodwill as a limited, but potentially renewable resource. The rise and rapid fall of the business-to-consumer (b-to-c) telemarketing industry in the USA provides evidence of how what over-exploitation of consumer goodwill precisely could cause (Hurst, 2008: 111). This study revealed that telemarketing as a tool for marketing needed to be guided and managed for the purpose of sustainability. Evans, Patterson and Malley, (2001: 17) revealed that the key concern with direct marketing are privacy of the customers, the control and relevancy of such outbound calls. This study ascertained that customers feel that they receive calls from marketer at the hour and period when they needed their rest or privacy, and most often been introduced to irrelevant products relatively to their needs. Mehrota and Agarwal (2009: 171) ...despite the advantage of telemarketing as a technology-driven business tools, focusing much on it without the understanding of customers attitudes and preferences for such an approach can lead to disastrous for an organisation. This reviewed shows that customers have different attitude towards telemarketing ranging from positive attitude to negative one, thus there is need to understand the attitudes of customers towards telemarketing. The factors that affect attitudes of customers towards telemarketing are highlighted as perceived advertisement intrusiveness, psychological reactance, information orientation of customers and the perceived usefulness and privacy concern (Mehrota and Agarwal, 2009) While Mitchell (2003:219) offers the following explanation that ...It is necessary for organisation to manage consumers negative attitudes towards direct marketing on different levels, and needs to go somewhat further than at present in their attitudinal segmentation....... This study emphasizes that companies need to segment the customer with negative perception towards telemarketing such that they could be best manage. The findings of the research study indicate that customers worries are

beyond intrusion and privacy, but rather the trust that customers have towards such direct marketing. This shows that there are negative perceptions towards telemarketing and if not adequately manage could be disruptive to sustainability marketing. The Australian Direct Marketing Association (2005) suggest that there is need for associations of direct marketing to each countries to set a telemarketing guideline to help raise the industry standards and also establish best practice in order to avoid government stepping in to bar such marketing tools due to its bad practise. The emphasis has also been laid for marketers to re-evaluate the timing, frequency and their methods of direct marketing, due to the increasing rate of complains by the customers, who revealed that too many offers they receive are not geared toward their interests or needs, underscoring the importance of more personalized business communications. According to McLuhan (2005) what prompted customers to join DO NOT CALL list or the Telephone Preference Service (TPS) is poor targeting and calling at unreasonable time by marketers or the sales department of an organisation Roach (2009:125) found out that ...consumers adoption of mobile phone marketing is influenced by their acceptance of the mobile phone itself......and the level of their involvement with their phone. The study concluded that the level of involvement of customers with the product being offered and their level of involvement with their mobile phone play an important role in the way mobile marketing is perceived. This adoption is hanged on the three factors which are relative advantage, compatibility and complexity (Rocha, 2009). Prins and Verhoef (2007:171) have it that direct marketing communication shortens customers adoption time. This articles emphasizes that due to the short time involved during telemarketing, customers do not have enough time to adopt a decision to whether to make purchase or not. Newman and Klein (2006) offer the following explanation that most often customers makes decision over the phone when they receive marketers calls and most often the customers always want to revert their decision, claiming that enough time was not given to them to know the implication of their decision during the call. This is often seen as exploiting the customers limited time of making decision. Phelps, DSouza and Nowak (2001:2) Understanding the antecedents of privacy concerns provides a foundation for developing effective policies and practices to reduce such concerns while understanding the consequences of privacy concerns is essential to gauging just how important dealing with these concerns really are for marketers. The research concluded that the antecedent is the major factor behind the concern for privacy and not the attitudes of customers towards direct marketing, 8

hence sharing customer data among companies needed to be considered, as consumers always complain of receiving unsolicited calls from unknown and unfamiliar marketers. Gray (1999:29) offers the following explanation that despite the constraint, phone still provides offer to marketers of communicating with customers that need not to be functional. This study shows that inbound telemarketing is thriving, where customers call marketer for complains, enquiries or business transaction, which is a function of media advertisement such as television ad. Several studies and articles are pointing towards the same direction, that though telemarketing that is potent technology-driven business tools, that provides great opportunity of flexibility and lower cost of reaching customers in order to meet there needs, is degenerating and its purpose it almost been defeat. Thus it is important to follow the etiquette of telemarketing and also for organisation to understand the perception of their existing customers towards such direct marketing tool. It is also revealed that customers generally would prefer inbound telemarketing to outbound telemarketing, as research has it that about 70% of customers want access to out of hours telephone response from the organisation they patronise regarding their own issues (Gray, 1999). RESEARCH PARADIGMS Paradigms are models, intellectual framework or frames of references, with which researchers in organisational science can affiliate themselves with (Kuhn, 1962). It is defines as a basic set of beliefs that guide action, that deal with the first principles, or ultimate (Tony, 2005:12). According to Saunders, Lewis and Thornhill (2007:112) research paradigms is define as a way of examining social phenomena from which particular understandings of these phenomena can be gained and explanation attempted. There are two major paradigms that represent the main epistemological streams in organisational science which are; positivist and interpretivist/Phenomenological paradigms (Thietart et al., 2001).

POSITIVIST PARADIGM This is a research philosophy instance that work with an observable social reality, with a end product that concur with those produced by the physical and natural

scientists (Saunders et al., 2007). Positivist paradigm which is scientific in nature is concern mostly with testing of hypothesis and deals with large quantitative data. This paradigm leads to quantitative research, with deductive explanation and which is scientific in nature. Quantitative Research Quantitative research deals with the gathering of absolute data, such as statistical data and examining it without a biased manner. The major ideal behind quantitative research is that it is able to separate emotion from research findings that is modelled statistically and also best suitable for testing hypothesis. It is a research approach that provides researcher a clear idea of that is being measured even before the start measurement. It is hypothetical and deductive in nature. PHENOMENOLOGICAL PARADIGM Phenomenological which could also means interpretivism is an epistemology that advocates that it is necessary for researcher to understand differences between humans in our role as social actors (Saunders et al., 2007). This paradigm concerned ideally with human behaviours from the perspective view of the researcher (Hussey and Hussey, 1997). This paradigm often leads to qualitative research with inductive explanation. Qualitative Research Denzin and Lincoln (2005:7) state that qualitative research is an interdisciplinary, trans-disciplinary and sometimes counter-disciplinary field that crosscut the humanities, the social sciences, and physical science. This is a subjective form of research, which involves researcher interpretation in the overall findings. The sample size is usually smaller than in quantitative and also time consuming. The focus of the research is not known until during the course of the research, and provides room for researcher to be emotionally attached with the research. Hence qualitative research is inductive in nature.

RESEARCH METHODOLOGY The study tends to acknowledge individual perception on the research topic. Hence the research methodology for this study will be on qualitative research, based on both individual depth interviews and group discussions. Thus the research will use 10

phenomenological paradigms of inquiring using grounded theory methodology to build a substantive theory that will propose answers to the research question stated about the customers perception towards telemarketing. Thus, the data collected during the course of this study will be analysed using the Grounded Theory Approach. Grounded Theory Grounded theory is a systematic qualitative research methodology in the social sciences that emphasizes on generation of theory from data in the process of conducting research (Martin, Patricia, Turner, Barry, 1986). Glaser (1978:2) states that grounded theory, according to Tony (2005) is a theory approach that offers a rigorous orderly guide to theory development that at each stage is closely integrated with a methodology of social research. There are three different major coding in grounded which are open coding, axial coding and selective coding. According to Saunders et al. (2007) open coding is the process of disaggregating the data collected into conceptual units and labelling them, while axial coding is the process of recognising the relationship between the categories of data that emerge from the open coding, and selective coding is the process of integrating the categories to form a theory. These make the research to follow an inductive approach, meaning that it moves from the specific to the more general. Thus method of the study will essentially base on three elements: concepts, categories and propositions. RESEARCH METHOD The research is intended to put together prevailing perceptions towards telemarketing within the customers of Zenith Bank Plc. According to Whisker (2001) grounded theory is a theory that is grounded in experiences(s). Two different primary data will be adopted in collecting data for the method that will be used for the study. This primary data will be semi-structured interview and survey questionnaire. Survey Questionnaires: This is a productive tool used in obtaining constructive feed from customers either existing or the potential ones. The strength of these questionnaires is: It allows researcher to collect more data, it is easy for participant to fill because it is not time consuming and can also be completed via the email/internet. There are some weaknesses of the survey which are: the data

collected are not detailed and also the tendency of participants to just thick and not digest the questions is high. Semi-structured Interview: This is an interview conducted with a fairly open framework which allows focus conversational and a two-way communication. The strength of this interview is that it gives participants the opportunity to express their own view concerning the question that is being asked, hence providing freedom of expression and also provides the opportunity to monitor interpretation of questions by the respondent. The weakness is that it is time consuming and also depends so much on the ability of respondent to describe personal experience/behaviour. SECONDARY DATA The mixed method will be used to analyse the data collected, in order to exhaust the complete interpretation of the data. Mixed method is the process of collecting data using qualitative method and using both qualitative and quantitative analysis to analyse the data collected. The strength of this method is that it allows triangulation to take place and the weakness is that it is difficult to ascertain effect of each techniques and procedures used on the data collected, since both will be used to analyse the data collected. To resolve this, Saunders et al. (2007) suggest that it is important to have a clear and well defined research question and objectives in order to ensure the methods that will enable researcher to meet them. ETHICAL ISSUES According to Blumberg, Cooper and Schindler (2005:92) ethical issues is the moral principles, norms or standards of behaviour that guide moral choices about our behaviour and our relationship with others. The ethical issues in this study will be how to gain access to the customers. The study provides the customers the opportunity to express their feelings freely and also gives the bank the privilege to maximize the research findings, thus the ethical issues are minimum.

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TIME TABLE The time table for the study will be drawn base on Gantt chart to cover the 12 weeks duration for the completion of the dissertation. Below is the weekly breakdown of the activities for the study;
FEB RUA RY WEE K WEE K ENDI NG ON: MEET ING WITH MY SUPE RVIS OR WRIT ING CHAP TER ONE WRIT ING CHAP TER TWO MEET ING WITH MY SUPE RVIS OR WRIT ING CHAP TER THRE E DOIN G CHAP TER FOU R 1st 25th

TAS KS/A CTIV ITIE S

MAR CH

APRI L 2nd 4th

MAY 3rd 4 5t t h
h

6th

7t h 1 st

8t h

9t h

10th

11 th

1 2
t h

11 th

18 th

25 th

8 15t t h h

22 nd

29th

6 1 t 3 h th

MEET ING WITH MY SUPE RVIS OR WRIT ING CHAP TER FIVE INITI AL SUB MISSI ON FOR VETI NG FINA L SUB MISSI ON OF DISS ERTA TION

CONCLUSION The research aims to make valuable contributions to the existing literature on customers perception towards direct marketing, hence the results of the research study will offer an in depth look into various factors that lead to such attitude among customers. The perception of customers towards telemarketing cannot be undermined, as this perception in most other developed countries has lead to anti-marketing steps by many regulatory bodies and the government of such countries, hence the study will bring to focal point the attitude of Nigeria customers towards telemarketing and also recommend a way forward. The study is also intended to produce a new theory relating to effective use of telemarketing, in order to maximize the emerging opportunities that telecommunication offers to organization in Nigeria. REFERENCES ADMA (2005). Direct Marketing. Precision Marketing. London: 9 Anonymous(2001). Strategies for Communicating on Customers Terms. Direct 14

Marketing. 61 (12):21 Bendremer, E. (2003), Top Telemarketing Techniques. New York Book-Mart Press Parson, R. (2010), Data Strategy Opt-Out-Services Can Aid Targeting and Improve ROI. Marketing Week. London. pp 41 Blumberg, B., Cooper, D.R. and Schindler, P.S. (2005), Business Research Methods, Maidenhead, McGraw-Hill Dietz, T.(2005), The Darwinian Trope in The Drama of The Commons: Variations on Some Themes by The Ostroms. Journal of Eciconomic Behaviour and Organisation. 57(2): 205-225 Dernzin, N.K. and Loncoln, Y.S (2005), The Sage Handbook of Qualitative Research. 3rd edn. Oaks. Sage Publication Meadows, D.H., Randers, J. and Meadows, D.L. (2004), The Limit to Growth: 30 Year Update, Chelsea Green Publishing, White River Junction. New York Evans, M., Patterson, M., and OMalley, L. (2001). The Direct Marketing-Direct Consumer gap. Qualitative Market Research.4(1): 17 Fill, C. (2009), Marketing communication: Interactivity, Communities and Content. 5th edn. Harlow. Pearson Education Limited FTC (2005) Statement of The Federal Trade Commision Cairman Deborah Platt Majoras Federa;l on The 100 Millionth Number on The National Do Not Call Registry, Trade Commision, Washington, DC. Availble at

www.ftc.gov/opa/2005/08/dncstatement.htm. [Accessed on 7 January 2011] Glaser, B.G. (1978), Theoretical Sensitivity. Mill Valley. CA. Sociology Press Gray, R. (1999) Using The Voice At The End of The Line. Marketing. London. 29-31 Howell, K.E. (1998) European Integration Re-assessed: A Grounded Theory Approach. Behaviour. [PhD Thesis]. Bournemouth University. UK Direct Marketing. 2(2):111-125 Hurst, C.G. (2008) Sustainability Telemarketing: A New Theory of Consumer Kuhn, T. (1962). The Structure of Scientific Revolution. Chicago. University of Chicago Press. Martin, Patricia Yancey, Turner, Barry A.. (1986). Grounded Theory and Organizational Research. The Journal of Applied Behavioral Science. 22(2), 141 Mehrota, A. and Agarwal, R. (2009). Classifying Customers on The Bases of Their Attitude Towards Telemarketing.Journal of targeting, Measurement and Analysis of Marketing. 17(3):171-193

Mitchell, S. (2003). The New Age of Direct Marketing. Journal of Database Marketing. 10(3): 219 McLuhan, R. (2005) The Sound of Silence. Direct Response. London. 41-45 Nwanji, T.I (2005) Ethical Implication of Corporate Governance, A Deontological and Teleological Approach: Applying Grounded Theory. [PhD Thesis]. Ascroft Business School, Aglia Ruskin University. Cambridge Phelps, J., DSouza, G. and Nowak, G. (2001) Attecedent and Consequences of Consumer Privacy Concerns: An Empirical Investigation. Journal of Interactive Marketing. 15 (4): 2-17 Saunders, M., Lewis, P. and Thornhill, A. (2007), Research Methods for Business Students. 4th edn,Harlow. Pearson Education Limited Whisker G. (2001), The Postgraduate Research Handbook, Basingstoke. Palgrave Thietart et al. (2001). Doing Management Research: A Comprehensive Guide. SAGE Publication Verhoef, P.C., and Prins, R. (2007) Marketing Communication Drivers of Adoption Timing of a New E-Service Among Existing Customers. Journal of Marketing. 71: 169-183 Rocha, G. (2009) Consumer Perceptions of Mbile Phone Marketing: A Direct Marketing Innovation. Direct Marketing. 3(2): 124-137 Zenith Bank (2010), Company Annual Report. [Online] Available at www.zenithbank.com. [Accessed on 10 January 2011]

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