Professional Documents
Culture Documents
Consumer Perseption Towards Telecom Services
Consumer Perseption Towards Telecom Services
Perception
Towards Telecom
Services
In Ahmedabad
SYNOPSIS
Aim:
The aim of this study is to analyze critically the Ahmedabad’s customer preference and their
satisfaction in Telecom Sector.
Primary Sources
Secondary Sources
Books
Internet
Articles
Magazines
Project reports
News papers
Acknowledgement
The success of this project depends upon the contributions of many people, especially
those who shared their precious and valuable time in giving thoughtful suggestions to
improve our work.
We would like to extend our sincere feelings towards our project guide Prof. KAVITA
SHARMA whose continuance guidance made this project a great success. We
especially thank our institute called IBMR which gave us this golden opportunity to
prove ourselves by doing something which is blend of both practical and theory.
A very special thanks to our Honorable Dean R.K. BALYAN and some students &
people who shared their opinion with us.
The study aims to analyze that with the increase in competition in telecom services,
higher level of consumer satisfaction with affordable prizes and better quality of services
achieving or not. Wireless telephone and internet are expected to be the preferred
means of communication as convergence of telecommunications, broadcasting and
information technology progresses.
1. Introduction
1.1 History
4. Government Policies
5. TRAI
6.1 Airtel
6.2 Idea
6.3 Vodafone
6.4 BSNL
6.5 Reliance
7. Research objective
8. Research Design
8.9 Assumptions
9. Data analysis
9.1 Sampling
9.2 Observations
10. Findings
13. Questionnaire
14. Bibliography
standards. Presently, the Indian telecom industry is currently slated to an estimated contribution
Introduction
The Indian Telecommunications network with 110.01 million connections is the fifth largest in
the world and the second largest among the emerging economies of Asia. Today, it is the
fastest growing market in the world and represents unique opportunities for U.S. companies in
the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005, is
connections and 18 million internet connections by 2007. The wireless subscriber base has
jumped from 33.69 million in 2004 to 62.57 million in FY2004- 2005. In the last 3 years, two out
of every three new telephone subscribers were wireless subscribers. Consequently, wireless
now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in
2003. Wireless subscriber growth is expected to bypass 2.5 million new subscribers per month
by 2007. The wireless technologies currently in use are Global System for Mobile
Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM
and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities,
Quick Facts
Year
1851 First operational land lines were laid by the government near Calcutta (seat of
British power)
1932 Merger of ETC and IRT into the Indian Radio and Cable Communication Company
(IRCC)
1986 Conversion of DOT into two wholly government-owned companies: the Videsh
Sanchar Nigam Limited (VSNL) for international telecommunications and
Mahanagar Telephone Nigam Limited (MTNL) for service in Metropolitan areas.
10
Journey of telecom sector after 1991’s
liberalization policy
every aspect of business and society. Telecom professionals are the key players in this
transformation. They play a crucial role as leaders in the changing dynamics of global
11
communications, internetworking, the Internet, e-commerce, mobile and wireless
communications strategy.
Modern age is the age of convergence and fusion for telecommunications. This fusion of
telecommunications, broadcasting and information technologies has resulted in amazing
discoveries. Voice over IP, television web casting over Internet and video on demand is
a reality. Telecommunications is a key to modern economy infrastructure.
Telecommunications when linked with computer becomes Information Technology,
which is the most dominating technology of today as it influences the entire spectrum of
the economy. IT practically covers all aspects of business, technology, manufacturing
and other services.
Today the networks and companies will no longer be categorized on the basis of only
voice, data or video services they provide. They have to become info-communications
companies providing a bundle of services.
Telecommunication has now become the backbone of any modern economy due to its
all-pervasive nature of running through almost every human transaction - commercial,
digital or even personal. The emerging new economy, powered by technology and
dictated by the digital revolution is incredibly forcing the telecom industry to grow more
than ever before.
• Social contact such as keeping in touch with friends and relatives and for organising
social activities;
12
• Business purposes which cover a wide range of uses from customer contact and
business transactions to inter-company communications;
Government Policies
The main guiding policy for the telecom sector is the New Telecom Policy (“NTP”)
1999. The objectives of the policy are as follows:-
13
5. Create a modern and efficient telecommunications infrastructure taking into
account the convergence of IT, media, telecom and consumer electronics and assist
emergence of India as an IT superpower,
1. Make telephone available on demand by the year 2002 and sustain the position
thereafter so as to achieve a tele-density of 7 by the year 2005 and 15 by the year
2010,
2. Encourage development of telecom in rural areas making it more affordable by
modifying the tariff structure suitably and making rural communication obligatory
for all fixed service providers,
3. Increase rural tele-density from the current level of 0.4 to 4 by the year 2010 and
provide reliable transmission media in all rural areas,
4. Achieve telecom coverage of all villages in the country and provide reliable media
to all exchanges by the year 2002,
5. Provide internet access to all district headquarters by the year 2000,
14
6. Provide high speed data and multimedia capability using technologies including
ISDN to all towns with a population greater than 2 lakhs by the year 2002.
The objectives and targets of NTP 1999 for rural telephone network are as follows:
15
EXPANSION OF TELEPHONE NETWORK
The main objectives and targets of NTP 1999 with respect to expansion of telephone
network, other than rural network, which has been discussed above, are as follows:
16
financial year 2007-08. The total subscribers comprises of 192.7 million GSM and
68.37 million CDMA subscribers. Another service within the telecom sector, which
recorded substantial growth, was Internet and Broadband services. While the total
number of subscribers of Internet services increased from 9.27 million in March 2007
to 11.09 million at the end of March 2008 recording a growth rate of about 19.63%,
the subscriber base of Broadband increased from 2.34 million in March 2007 to 3.87
million at the end of March, 2008. There has been significant expansion of the
telecom network in the country as may be seen from the growth of various kinds of
services mentioned above. The overall tele-density during the year rose to 26.22 on
31st March 2008 as compared to 18.23 on 31st March 2007.
Basic Service
17
By the end of March 2008, 5 private BSO Groups namely, M/s Reliance Infocom Ltd.
(21 circles), M/s Tata Teleservices Ltd. (20 circles), M/s Tata Teleservices
(Maharashtra) Limited (2 circles), M/s Bharti Airtel Ltd. (17 circles), M/s Shyam Telelink
Ltd. (Rajasthan circle) and M/s HFCL Infotel Ltd. (Punjab circle) are licensed operators
providing wireline service. All the five private operators had migrated to Unified Access
Service Regime during 2003-04.
(i) Value Added Services that stand alone from operational perspective and
(ii) Value Added Services provided as an optional service along with voice service.
Non-Voice services like SMS are examples of stand alone value added services. The
Value Added Services presently being provided by the telecom operators are in the
following areas:
18
Sl. No. Type of Value Description
Added Service
1. News National, International, Business, Entertainment , Sports
News
2. Finance Stocks (NSE, BSE, NASDAQ), Forex
3. Entertainment Games, Mobile TV and Jokes
4. Travel Railways, Airlines
5. Downloads Logos, Ringtones, Caller tones etc.
6. Astrology service Personal Horoscope / Personalized prediction
7. Cricket Cricket scores, Match clippings, cricket commentary
8. Missed call alters Subscriber to get a SMS alert of incoming calls when
the subscriber’s mobile phone is switched off / not
reachable and busy
9. E-mail E-mail through SMS
10. Music on demand Dial a song
11. Contest Reality shows
12. GPRS / WAP Mobile Internet, Mobile Chat, Mobile TV
13. MMS Picture messages, picture clippings
14. Health Health tips, Beauty tips
15. M-commerce Transactions based services with multiple payment modes
and support in multiple domains like WAP, GPRS, SMS,
IVR and Web
16. Miscellaneous Devotional, Movies & Music, Fun, Navigation etc.
VAS challenges……
19
Operator Challenge
User Challenge
• Operators focusing on subscriber
acquisition with no incentives to • Operators not driving users
push VAS in light of current awareness to promote various
spectrum allocation criteria VAS offerings
• Spectrum constraints and delay in
3G roll-out has substantially limited • Ease of use, user interface and
high-end VAS take-off familiarity with medium of
access such as GPRS, IVR etc.
Value
Adde
d
Servi Revenue Challenge
ces
• Ongoing tussle between
operators and VAS
companies for revenue share
Content Localization Challenge continues
• Since alternative models
• Operators haven’t done much haven't evolved yet, this has
to customize content according hampered VAS innovation
to consumer behaviour
• • Limited availability of local Device Challenge
web content and WAP versions
of whatever is available
• Providing feature-rich handsets at low
cost is a big challenge with GPRS
enabled handsets still around INR 2,599
(USD 63)
• Pre-loading of applications by handset
OEMs has not really caught on yet
20
21
TRAI
TELECOM REGULATORY AUTHORITY OF INDIA
22
On April 25, 1997, the recently constituted Telecom Regulatory Authority of India (TRAI)
gave its first judgment -- a landmark one, delivered with speed and style. This judgment
and its no-nonsense approach could well set the stage for things to come.
TRAI quashed DoT’s (Department of Technology) order of January 29, which had
sought to hike rather steeply, the price of calls made by users of ordinary fixed line
phones to cellular subscribers in the non-metro areas.
Even the cellular operators, whose stand was accepted by the TRAI, would accept
privately that the respondent DoT was poorly served by many of its officers and lawyers
who were entrusted with the task of representing DoT’s case.
They seemed to have cut a very sorry figure before TRAI, ignoring or not being
prepared by reading pertinent papers, such as tender documents, the clarifications
offered to would-be bidders, or the correspondence that DoT was having with the
operators later. Since the tender documents mentioned that tariffs would be the same
for circles and metros, it would have made sense for DoT to seek legal advice on how to
correct a mistake, if that is what it was. An appeal to TRAI could perhaps have been
recourse, as the body is in charge of tariffs.
Fixed line users pay local call rates when they dial a cellular number in the four metros
(Calcutta, Chennai, Delhi, and Mumbai). But users in the circles (which are typically the
same as states) would be charged Rs10 per call for the same facility, if the DoT order in
question had not been quashed.
DoT had raised current rates on grounds that such charges were low and allowed users
in the circles which are much larger than metros, to make long distance calls without
paying STD charges. On the face of it, DoT is entitled to want to change this state of
affairs. But in trying to correct one injustice to itself, it managed to inflict several on the
users and other service providers.
The cellular operators lost no time in going to the courts, since TRAI did not then exist.
The courts in turn took an enlightened decision to pass the matter on to TRAI on March
3, as the body had been formally constituted by then.
23
TRAI took a few weeks to give its judgment and ruled against the Department of
Telecom. The body was not persuaded about the justness of DoT’s order.
Nor was TRAI particularly impressed by the operator’s contention that DoT was not
authorized to raise these tariffs. The judgment clearly says that the order of DoT to raise
the tariff was passed before the TRAI was formally constituted and during the said
period in question, the DoT was the sole body with the power to amend tariffs.
Mission
To ensure that the interests of consumers are protected and at the same time to
nurture conditions for growth of telecommunications, broadcasting and
cable services in a manner and at a pace which will enable India to play a
leading role in the emerging global information society. Function of
Telecom Regulatory Authority of India
Functions of TRAI
1. Recommendatory Functions
growth in industry
2. Mandatory Functions
24
Ensure compliance of terms and conditions of license
Fix the terms and conditions of their inter connectivity between service providers
periodical survey
Lay-down and ensure time period for providing local and long-distance circuits of
3. Other functions
TRAI act
Notify in Official Gazette the service rates and message rates within and outside
India
Major Players in different segments of Indian
telecom industry
25
Basic Services GSM Services
Operators Operators
BSNL Airtel
MTNL
Vodafone
Reliance
Idea
TTSL
Reliance
BSNL
BSNL
Reliance
MTNL
TTS
Reliance
TTSL
Airtel
26
Airtel
Bharti Airtel, formerly known as Bharti Tele-Ventures LTD (BTVL) is India's largest and
world's third largest cellular service provider with more than 82 million subscribers as of
December 2008. It also offers fixed line services and broadband services. It offers its
TELECOM services under the Airtel brand and is headed by Sunil Mittal. The company
also provides telephone services and Internet access over DSL in 14 circles. The
company complements its mobile, broadband & telephone services with national and
international long distance services. The company also has a submarine cable landing
station at Chennai, which connects the submarine cable connecting Chennai and
Singapore. The company provides end-to-end data and enterprise services to the
corporate customers through its nationwide fiber optic backbone, last mile connectivity
in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through
the gateways and landing station. SingTel owns over 30% of the Bharti Telecom.
Vodafone is also a shareholder of Airtel with 4% of the shares. Thus making it a sister
company of the brand.
Airtel is a brand of telecommunication services in India and Sri Lanka owned and
operated by Bharti Airtel. It is the largest cellular service provider in India in terms of
number of subscribers. Services are offered under the brand name Airtel: Mobile
Services (using GSM Technology), Broadband & Telephone Services (Fixed line,
Internet Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise
27
Services (Telecommunications Consulting for corporates). It has presence in all 23
circles of the country and covers 71% of the current population.
-:Vision:-
• First private telecommunications company to launch long distance services.
-: Mission:-
• We will meet the mobile communication needs of our customers through Error- free
service delivery
• Cost efficiency
28
Idea
Idea Cellular Limited (“Idea”) is a leading mobile services operator in India. Idea has a
subscriber market share of 19.3 % in its 8 established service areas, and 12.9 % in its
15 operating service areas. After inclusion of Spice Communications, brand !dea has
47.1 mn subscribers, corresponding to a 11.0% national subscriber market share as on
June’09.
A. Promoter Group
Idea is part of the Aditya Birla Group, India's first truly multinational group. The Group
has businesses in sectors ranging from metals, garments, cement, fertilisers, life
insurance and financial services among others. Over half of the Group’s revenues are
derived from overseas operations. The group operates in 25 countries, and is anchored
by an extraordinary force of over 130,000 employees belonging to 30 nationalities. The
current Group holding of 49.13% in Idea is made up of;
B. Key Shareholders
29
AXIATA Group Berhad (previously TM International Berhad), through its affiliates, has
14.99% shareholding in Idea Cellular, and a 49.0% holding in Spice Communications.
With the proposed merger of Spice Communications into Idea Cellular, the Axiata
Group holding in Idea Cellular would increase to around 20%. AXIATA has controlling
stakes in its affiliates in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia, and
significant stakes in India and Singapore. India and Indonesia are among the fastest
growing markets in the world. As of March 2009, the Group has close to 94 million
mobile subscribers in Asia, and provides employment to over 25,000 people in 10
countries. Providence Equity Partners, through its affiliates has a 10.6% shareholding in
Idea, and has also invested INR 20982 mn in ABTL through Compulsorily Convertible
Preference Shares.
Brand !dea covers 17 telecom service areas, viz, Maharashtra & Goa, Gujarat, Andhra
Pradesh, Madhya Pradesh & Chhattisgarh, Delhi, Kerala, Haryana, Uttar Pradesh West
& Uttaranchal, Uttar Pradesh East, Rajasthan, Himachal Pradesh, Mumbai, Bihar &
Jharkhand, Orissa, Tamil Nadu, Punjab and Karnataka, covering ~ 90% of the all India
subscriber base Of these, the 3 service areas of UP East, Rajasthan and Himachal
Pradesh were rolled out during Sep-Nov’06, while the 2 service areas of Mumbai and
Bihar became operational during Aug-Oct‘08. The service areas of Punjab and
Karnataka were added through Spice w.e.f October 16, 2008. Brand !dea has extended
it coverage to Orissa service area in April’09 and the Tamil Nadu service area (excl.
Chennai) in May’09. Services in Chennai were launched in July’09.
30
Vodafone
31
• Rebranding
- Stores
- Mass media coverage
• Innovative distribution to reach the customer
- Exclusive shops
- Hub and spoke
- Associate distributions
• Customer service
- Shops and call centers
- Vans
- Help desks
BSNL
32
(BHARAT SANCHAR NIGAM LIMITED)
33
INTELLIGENT NETWORK
34
Reliance
Communication
Reliance is a $16 billion integrated oil exploration to refinery to power and textiles
conglomerate (Source: http://www.ril.com/newsitem2.html). It is also an integrated
telecom service provider with licenses for mobile, fixed, domestic long distance and
international services. Reliance Infocomm offers a complete range of telecom services,
covering mobile and fixed line telephony including broadband, national and international
long distance services, data services and a wide range of value added services and
applications. Reliance IndiaMobile, the first of Infocomm's initiatives was launched on
December 28, 2002. This marked the beginning of Reliance's vision of ushering in a
digital revolution in India by becoming a major catalyst in improving quality of life and
changing the face of India. Reliance Infocomm plans to extend its efforts beyond the
traditional value chain to develop and deploy telecom solutions for India's farmers,
businesses, hospitals, government and public sector organizations. Until recently,
Reliance was permitted to provide only “limited mobility” services through its basic
services license. However, it has now acquired a unified access license for 18 circles
that permits it to provide the full range of mobile services. It has rolled out its CDMA
mobile network and enrolled more than 6 million subscribers in one year to become the
country’s largest mobile operator. It now wants to increase its market share and has
35
recently launched pre-paid services. Having captured the voice market, it intends to
attack the broadband market.
Tata Teleservices
Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over
200,000 employees and more than 2.3 million shareholders. Tata Teleservices provides
basic (fixed line services), using CDMA technology in six circles:
Maharashtra (including Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat,
and Karnataka. It has over 800,000 subscribers. It has now migrated to unified
access licenses, by paying a Rs. 5.45 billion ($120 million) fee, which enables it to
provide fully mobile services as well. The company is also expanding its footprint, and
has paid Rs. 4.17 billion ($90 million) to DoT for 11 new licenses under the IUC
(interconnect usage charges) regime. The new licenses, coupled with the six circles in
which it already operates, virtually gives the CDMA mobile operator a national footprint
that is almost on par with BSNL and Reliance Infocomm. The company hopes to start
off services in these 11 new circles by August 2004. These circles include Bihar,
Haryana, Himachal Pradesh, Kerala, Kolkata, Orissa, Punjab, Rajasthan, Uttar Pradesh
(East) & West and West Bengal.
36
List of Related figures
Market Share of GSM & CDMA
37
Market Share of CDMA Players
38
Subscriber Growth
Tele Density
39
2000 2.86 0.68
2001 3.58 0.93
2002 4.29 1.21
2003 5.11 1.49
2004 7.02 1.55
2005 8.95 1.73
2006 12.74 2.34
2007 18.22 5.89
2008 26.22 9.46
2009 36.98 15.11
RESEARCH OBJECTIVES
Research objectives include the objective of research of the researcher before starting
any research. The researcher should determine the objective or the goal of the research
for the smooth functioning of study. Predetermine objective should be of such that
researcher fulfils in the certain period of time at minimum cost.
40
To study customer satisfaction and understand the current market scenario in
telecom sector.
Theory Development:
Considers -
1. Technology
2. Tariffs
3. Promotional activities
4. Celebrity involvement
5. Brand image
41
6. Value added services
7. Network
8. After sales services
9. Availability of complementary products
Model Development:
42
Specific mobile connection has been purchased and
met the satisfaction
Research Design
Among the different types of researches I have chosen Descriptive research for this
project. I have gone to conduct this project base on Descriptive research technique
because I want to test the significant level of the particular factors. Among two types of
Descriptive research techniques I have gone for Cross-Sectional design because I have
wanted to collect data from the sample of population element only for one time. From
Cross-Sectional designs I have taken Single cross-sectional design to carry out my
research.
Structured questionnaire.
43
Information from Related Peoples.
• Basic Research
• Applied Research
“Applied Research is carried out for solving of a particular problem or for guiding a
“Basic Research is generally for common purpose and Applied research is for specific
purpose.”
Here the nature of the research is basic. The sources for data collection are both
primary and secondary data sources.
Survey method:
Among four types of survey methods I have chosen the appropriate one that suited my
research objectives. I have chosen the personal survey techniques. From the personal
techniques I have selected mall intercept technique. According to this technique I have
needed to go directly to my sample unit and got the questionnaires filled. I have chosen
Mall intercept survey technique because it has higher Flexibility for data collection,
Diversity of questions, Response rate, and Social desirability. And also it is higher in
Control of data collection environment and moderate Use of physical stimuli.
44
Scaling Method:
Questionnaire development:
First of all I have given the introduction. I have just introduced myself and the reasons
why I am collecting data. Then I have given assurance that your information will be kept
confidential. I have gone for screening and then I have prepared the body of the
questionnaire. Lastly I make respondents profiles. Questionnaires have been structured
questionnaires based on non comparative scales techniques.
Sampling Technique:
In case of my research my target population has been the students and the general
people of the Ahmedabad city. The students and general people who are using the
mobile connection or intended to purchase the mobile connection have been sample
unit. I have conducted my research through non-probability sampling techniques and
among non-probability sampling techniques I have gone for convenience sampling
technique. Most importantly as it is an academic research it lacks money and time.
That’s why for administering this research, the sample size has been 50. Then I have
45
carried out the research by myself very efficiently and accurately to come to an end with
a solution of the marketing research problem statement.
Field work:
Field work is a general descriptive term for the collection of raw data. In the professional
research, research firm use its own people or external people to collect data for the
sample. Since it is an academic and individual research I myself have to go and collect
the data from the respondents. I have gone to the people in the Ahmedabad city and get
the questionnaires filled.
Sample size:
During the project study we attached to near about 400 people of Ahmedabad. These
people belongs to the different parts of the city.
Assumptions:
46
2) Data collected are assumed to be bias free from side of respondents, interviewer
or any other mediaries.
3) Whole research and analysis part based on data collected is carried out under
unbiased environment and without any influence of any factor which can lead to
deviation in result.
Sampling
Sample Size : 200
47
Sample Frame : Ahmedabad City
Non-response - 28
Survey : Questionnaire
Observations
Normally consumers’ needs and wants change with age. There are
certain types of mobile connection which attract different types of aged people
as well as different sex. There some mobile connection (packages) which
adopted by male people and there are some mobile connection (packages)
which get adopted by female people.
10-20 36
21-40 106
More than 30
48
40
17
21
%
%
62
%
According to the above bar diagram, among 100% respondents, These respondents
have informed their choosing factor for purchasing mobile connection. Form their
responses I will be able to understand the various aspects of my research topic.
Male 102
Female 70
49
According to Graph-2 the majority of the respondents are male. Among 100%
respondents, male is % and female is %.
2. Marital Status:
Consumption and expectations on mobile from consumers
changes according to the marital status. The consumption tactics of
consumer depends on how they handling their relations. Single & married
perceptions are different from each other.
Single 110
Married 72
Student 80
House Wife 13
Public service 8
Private service 19
Businessman 52
51
30.5 46
%
11 7.5
5%
4. Educational Qualification:
Under Graduate 55
Graduate 48
Post Graduate 69
Others 0
52
5. Service Provider
BSNL 27
Airtel 24
Vodafone 46
Idea 33
Reliance 34
Tata Indicom 6
Others 2
53
3.5 1.2
% %
15.6
20 %
14
19 26.7
% %
6. Time spend :
Time spend with mobile connection shows how much customer is
satisfied with their connection. This shows the level of post purchase services
of telecom giants.
0 – 3 Months 0
4 – 6 Months 5
7 – 12 Months 18
1 – 2 Year 24
2 – 3 Year 69
54
7: Total time spend by subscribers
3
%
10.5
32.5
%
14
%
40
%
Self 72
Spouse 9
Parents 27
Children 13
Friends 45
Salesman 6
55
8. What advertising media has influenced you in choosing a telecom
operator?
Print Media 28
Radio 13
Television 80
Road side 7
Advertisement
Word-of-Mouth 44
56
Print
Media
Up to Rs.500 76
Rs.501 – Rs.1000 54
Rs. 1001 – Rs.1500 30
More than 1500 12
57
10. Do you prefer online payment through your mobile service
provider?
Yes 37
No 135
58
11. What do you think about the competition in the market?
No Choice 29
Some Choice 40
Enough 87
Choice
Can’t Say 16
59
12. Given a choice with same number which service provider will you
select?
Airtel 8
Reliance 18
Vodafone 8
BSNL 1
Idea 6
Tata 3
No change 128
60
Near about 75% of customers not interested in changing
their service providers. This is a positive sign for companies. More the
consumer satisfied more they became loyal to company.
Up to 1 Minute 83
2 Minutes 34
3-5 Minutes 30
61
6-10 Minutes 23
11 Minutes or 2
more
14. What kind of expectations do you have with your service provider?
Price 42
Voice Clearity 9
Network 58
Good Services 63
62
15: Expectations from service providers
15. What is your purchase intent for news alerts on mobile phone?
Astrology 2
Sports 42
Business 40
General News 23
Entertainment 132
63
16: Purchase intent from mobile phone
16. Are you aware of the role of the telecom services in providing broadband
without using cable network?
Yes 130
No 42
64
18. Are you aware of 3-G technology?
Yes 105
No 67
65
Hypothesis
66
1. Customers are self driven while purchasing a mobile connection.
2. Print media is the most effective advertisement medium which influence the
customer to purchase a mobile connection.
T – Test
H0 : Null Hypothesis
H1 : Alternative Hypothesis
S : Standard Deviation
α : Significance level
df : Degree of freedom
a)
67
Using excel, we get
Since the null hypothesis is accepted so we can say that costomers are self driven while
deciding the purchase of mobile connection.
b)
H0 : Print media is the most effective advertisement medium which influence the
customer to purchase a mobile connection.
H1 : Print media is not the most effective advertisement medium which influence the
customer to purchase a mobile connection.
68
Sample size 172
Sample mean 34.4
S 1.78
standard error 0.14
null hypothesis 28
α 0.05
df 171
t test statics 0.47
lower value -1.65
Decision Reject H0
Since the null hypothesis is rejected so we can say Print Media is not the perfect
communication medium between customers and mobile service providers.
c)
H1 : Telivision is not the most effective advertisement medium which influence the
customer to purchase a mobile connection.
69
Sample size 172
Sample mean 34.4
S 1.78
standard error 0.13
null hypothesis 80
α 0.05
df 171
t test statics -3.36
lower value -1.65
Decision Reject H0
Since the null hypothesis is rejected so we can say Television is not the perfect
communication medium between customers and mobile service providers but it the best
way one can attract the customer (According the data collected).
d)
70
Sample size 172
Sample mean 43
S 0.87
standard error 0.06
null hypothesis 40
α 0.1
Df 171
t test statics .45
lower value -1.65
Upper value 1.65
Decision Reject H0
The null hypothesis is rejected. It is a two tailed taste. So according to customers in the
market there is enough choice in the market for telecom service providers.
Acceptance
S.N0. Null Hypothesis
level
Customers are self driven while purchasing a mobile
1. Accept H0
connection
Print media is the most effective advertisement medium
2. which influence the customer to purchase a mobile Reject H0
connection
Television is the most effective advertisement medium
3. which influence the customer to purchase a mobile Reject H0
connection
There is some choice in the market for telecom service
4. Reject H0
providers
Findings:
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Total Analysis:
The target markets are influenced by Promotional activities for purchasing behaviors of
mobile connection. But target markets are not basically concerned about Celebrities for
buying the mobile connection. They do not get influenced by promotional activities
which include classical conditioning rather they get influenced by the promotion which
include operant conditioning. They give less importance on promotional activities than
other marketing mix such as products, distribution, price, process etc. The target
markets of the telecom industry seriously think of the tariff and put more importance on
the tariff than any other factors. They can even tolerate interrupted network service to
some extent as they put more importance on the tariff than network. They have chosen
tariff as a most important factor to by mobile connection than brand image. Target
markets do value complementary products’ availability. Target markets have chosen
availability of complementary product over network. It means that the target markets go
for that product which complementary are widely available regardless the network
condition. According to target markets network is important factor to purchase the
mobile connection but not as important as tariff. But target market put importance on
network than brand image. Customers seriously consider the word of mouth. They
rather prefer it than any promotional activities. After sale Services and value added
services are the important factor to target market for purchasing the mobile connection.
Target markets generally think of switching cost before purchasing a particular mobile
connection. One interesting finding is that target markets do not generally concerned
about Brand image.
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After relating occupation with other important marketing research question the following
findings has been found-
1. Among respondents Public service holders are the most sensitive towards to
tariff price
2. Student and Housewife value the celebrities for purchasing the mobile
connection.
3. Students and private service holders are concerned and value the brand image
for purchasing the mobile connection.
4. In case of word of mouth, Students, housewives, private service holders value it
for purchasing the mobile connection.
5. Public service holders, Students and housewives are highly influence by any
discount, free sampling, rebate for purchasing the mobile connection.
6. Private Service holders are most concern about network for purchasing the
mobile connection.
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a) Airtel-:
1. Most of the company’s customers are driven through the ads on Television and
Print Media. So more focus on these medium will beneficial.
2. 3 out of 24 customers want to switch to other operators and 8 want to join it. So
good positive signs to company.
b)BSNL
1. Not popular in the age group of 10-20. Most popular in higher age group.
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c) Reliance
1. One of the fast growing service operators. As most want to switchover to it. So a
bright future is waiting.
4. Customers are price conscious so there should be a tight eye on it. This the
feature attracting most of the customers.
d) Idea
1. In the city it is the most loved GSM operator. Popular in each age group and in
every working status sample.
e) Vodafone
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1. Most trusted Mobile brand in city. As 27% customers trust the brand.
4. Customers have expectations in price, network and good services are coming as
a priority and can be a major factor in near future.
f) Others
1. Not a good presence in the city. But arrival of new service operators may change
the current scenario.
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After talking to decision makers, taking interview of experts I have developed a
management decision problem statement. Then I have developed Marketing research
Problem. And from the marketing research problem I have identified some factors that
influence the behaviors of mobile connection. The specific components have been-
Marketing process, Technology, service ability switching cost etc. I have developed the
research questions and finally I have developed the Hypotheses from the research
question. Then I have gone for Descriptive research and among different descriptive
researches I have taken single cross-sectional design. And among deferent methods I
have chosen in-home survey method. My target population has been the citizen of the
Dhaka city who are a customer or future prospects of mobile connection. The sampling
technique I have used has been convenience sampling technique. I have used Likert
scaling technique and finally I have analyzed one sample t test and cross tabulation to
relate two variables. Then I have carried out the research.
After analyzing the hypotheses I would like to offer some recommendation to influence
the decision of mobile purchasing of the target market.
1) The operator should focus on the tariff because target markets are still
concerned about tariff than any other factors for purchasing mobile phone.
Tariff is still the most dominant factor for purchasing the mobile
connection.
2) Among different types of promotional techniques, target markets value
the promotions those contain operant conditioning. Target markets put
more importance on promotional activities that contain operant
conditioning than those contain classical conditioning such as celebrities.
So mobile operator must keep on providing rebates, discounts, free offer
etc.
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3) The brand image is still less important to target markets than tariffs. So the
mobile operator must build strong brand image so that target markets do
not think much about tariff.
4) The complementary products must be available.
5) Network is also concern of the target markets. But target market can
consider some disruption for the lower tariff.
6) Word of mouth influence the purchasing behavior of the target market so
mobile operator should adopt some tactic to promote word of mouth
promotion.
7) Mobile phone operators should launch multiple promotional activities to
attract or meet different needs of different segment. They can go for
promotion with operant conditioning for students or housewives segment
to force them to buy the products.
8) Mobile operator can highlight the brand image for its products to students
and private service holders as students and private service holders value
brand image for purchasing the mobile phone.
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List of figures
Questionnaire
1. Respondent Name: Mr Ms
Full Name ______________________________________
2. Age Group
1 10-20
79
.
2 21-40
.
3 More than 40
.
1. 0 – 3 Months
2. 4 – 6 Months
80
3. 7 – 12 Months
4. 1 – 2 Year
5. 2 – 3 Year
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Price Voice Clearity Network Good Services
16. What is your purchase intent for news alerts on mobile phone?
Astrology Sports Business Entertainment
General News
17. Are you aware of the role of the telecom services in providing broadband
without
using cable network?
Yes No
18. Are you aware of 3-G technology?
Yes No
19. Rank the following attributes in the order you service provider-
(In the analysis part we didn’t include the Q. 19 because it became tough for
respondents to answer it.)
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BIBILOGRAPHY
1) Reports
a. TRAI 2008-09
b. Telecom Sector annual report 2008-09
c. Idea Unaudited results Q1 FY 10
d. Department of telecommunication Govt. of India Annual Report 2008-09
2) Articles
a. Business Standard
b. Times of India
c. Idea press release
d. Airtel press release
e. RCom press release
f. The Economic Times
3) Websites
a. www.trai.gov.in
b. www.dot.gov.in
c. www.coai.com
d. www. Ideacellular.com
e. www.airtel.in
f. www.vodafone.in
g. www.rcom.co.in
h. www.teleservices.com
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List of Abbreviations used
3G Third Generation
84