R GRACE PERIOD ONLIN N E PAYME NT TARIFF PLANS N

COVERAGE

CELLULAR E SERVICE PROVIDERS

CONNECTIVIT Y N

BILL PAYMENT A EASY RECHAR GE

ISD

SUBMITTED TO : Prof. TRILOCHAN TRIPATHY SUBMITTED BY : SUMEET SINGH

GMM SUNIL KUMAR MVK CHAITANYA MUKESH KANDHOL SECTION I 12TH Jan 09

ACKNOWLEDGEMENT S
We extend our sincere gratitude to Prof. Trilochan Tripathy without whose support and inspiration this project would not have been possible. We would like to take this opportunity to thank our faculty for the genuine pieces of advice which he has given from time to time for the completion of this project. . We would also like to thank all our project mates and fellow students who extended their help and support whenever required. A special thanks to all who provided their knowledgeable insight into things of complexity and made them simple and lucid for us. A sincere thanks to our Professor who guided us to collect the primary data and even to all those people who have added value to our project work through the questionnaire they had filled on due course of the project work. Last but not the least, my warm heartfelt thanks to IBS, Hyderabad for providing us with the facilities required to do the adequate research and give the project its final shape.

TABLE OF CONTENTS:

PARTICULARS

PAGE NO.

EXECUTIVE SUMMARY RATIONALE OF CHOOSING THE TOPIC OBJECTIVE OF PROJECT HYPOTHESIS APPROACH TO THE PROBLEM LITERATURE SURVEY DATA COLLECTION METHODOLOGY OVERALL MARKET SHARE RESEARCH DESIGN TOOLS USED CLUSTER ANALYSIS FACTOR ANALYSIS CORRELATION REFERENCES QUESTIONNAIRE

4 6 7 7 7 8 9 10 13 13 14 19 29 30 31
3

EXECUTIVE SUMMARY
Satisfaction is a persons feelings of pleasure or disappointment resulting from comparing a products perceived performance in relation to his/her expectations. According to both marketing theory and practical experience, telecommunications firms should improve their performance by satisfying their customers, so as to obtain and sustain advantage in the intensely competitive environment. This is because customer satisfaction results in customer loyalty and firms with a bigger share of loyal customers profit from increasing repurchase rate, greater cross buying potential, higher price willingness, positive recommendation behavior and lower switching tendency. Here in this research we have tried to understand perceived value proposition and customer satisfaction towards various cellular operators. The study on customers was quantitative study of existing customers of all operators. Here in we have tried to clarify certain factors related to customers satisfaction in current scenario.

Research
DESCRIPTIVE

Design

Adopted:

Data

Collection

Approach:

QUESTIONAIRE

DISTRIBUTION

Sample Space: 70 Sampling

SAMPLING

Technique Data

Used:

RANDOM

Primary Source:

Collection

IBS, Hyderabad TCS, Deccan Park STPI , Madhapur HSBC, Hyderabad

This is because it was intended to find the market characteristics such as market size, attitude of the customers towards the different aspects of the service and so on; we adopted questionnaire approach as a primary data collection technique. Both open ended and closed ended questions were used in the questionnaire to get better understanding of the problem. To eliminate all kinds of bias in the research and to attain the true picture we adopted random sampling in our research work. Here in order to measure the perceived preference level of the customer and there deviation we have applied multivariate analysis tools such as factor analysis and cluster analysis. The outcome of the research work has helped us to identify the parameters that the customers keep in mind while selecting a cellular service provider. There are 25 private companies operating in 23 telecom circles and four metro cities, covering 1500 towns across the country. There are two types of mobile service networks namely GSM (Global System for Mobile) and CDMA (Code Division Multiple Access). The sector at present is witnessing a fierce competition to acquire maximum number of new subscribers with various price cuts and life time offers, as it is very difficult to make an existing subscriber switch services. With regular price cuts it becomes very difficult for existing players to offer premium quality services to make their users happy, which then boils down to offering regular skeletal services but with consistency and inbuilt quality which is the least the consumer expects. Here in our study, we attempt to measure the satisfaction level of existing subscribers of three service providers namely Idea, Tata Indicom, Reliance, Vodafone and Airtel in our campus, IBS Hyderabad as well as in TCS Hyderabad (Deccan Office, Hi-Tec City)

RATIONALE OF CHOOSING THE TOPIC

The most uncertain things in the current competitive world is customers perception towards a product or service. The most important objective from marketing point of view is to understand the customer perception towards their product. Telecom Industry is booming, what we can say is the period of telecom revolution. The number of cellular service providers is increasing and there exists a wide variety of choice before the customers to choose a particular provider. So it becomes a daunting task before the cellular players to provide best value proposition and increased customer satisfaction towards their subscribers. It is essential from business point of view to analyze the parameters which are essential for the customers to choose a particular cellular operator. Moreover its important to understand the factors which are responsible in getting increased revenues for the business and which has helped in increasing the customer base of the cellular operator. The Telecom Industry in India is still evolving and there are no signs of consolidation as of now. Currently the industry is having a subscriber base of 230 million with an estimated 5-6 million subscribers being added every month. Price war, subscriber base, decreasing ARPUs (Average revenue per user), Technology issues, target market, value added services, network up gradation are the issues of major concern to all the players. Government has already given green signals for FDI participation to be raised to 74% and unified licensing regime is there. With government decision to implement unified licensing Regime, CDMA players like Reliance, Tata have got seamless mobility and would be at par with GSM players. GSM operators will be forced to match the prices along with installing new capacities and upgrading the existing ones. This has made the companies decrease the tariffs to the lowest in the world that is from the incoming and outgoing call charges of Rs18/minute (0.45 USD) seven years ago to the present day when then incoming calls are free and outgoing are charged as low as Rs 1/minute (0.02 USD). Under easy payment plans you can get a lifetime incoming call for free! There has been a tremendous growth in the telecom sector in India and doing a research project to analyze the customer preference towards the cellular service providers is definitely a knowledge gaining and it would help in understanding the sector much better.

OBJECTIVE OF PROJECT
Here with the help of this research we are trying to determine the overall perceived value proposition of the service and satisfaction levels of the customers of different mobile operators. The major objectives behind this research project were: To understand current satisfaction level of customers with regard to different attributes of mobile services. To determine the preferences of the customers for different mobile service providers. To ascertain the improvements expected by the customers in services provided. To find out the reason behind increasing customer base of a cellular service provider.

HYPOTHESIS
Null Hypothesis: There exists no relationship between the variables we surveyed and the overall customer satisfaction towards a cellular service provider. Alternative Hypothesis: There exists a relationship between the variables we surveyed and the overall customer satisfaction towards a cellular service provider.

APPROACH TO THE PROBLEM

The market research will be done in understanding perceived value proposition and customer satisfaction of Indian mobile industry. The study on customers will be quantitative study of existing customers of major operators, operating in Hyderabad. The research design adopted by us will be descriptive design and we are following questionnaire approach as data collection technique. Closed ended questions will be used in the questionnaire to get better understanding of the problem.

LITERATURE SURVEY
Level of satisfaction is a persons feeling of contentment or disappointment resulting from comparing a products performance in relation to his/her expectations. The buying behavior of the consumer starts with the search of information about the product based on his need. Then after evaluating the set of option a consumer decided to purchase the product. In the end he evaluates his decision which then decides his level of satisfaction. As per the insights by different authors namely, (Philip Kotler, 2000). According to both marketing theory and practical experience, telecommunications firms should improve their performance by satisfying their customers, so as to obtain and sustainable advantage in the intensely competitive environment to get heart and mind share. 4 As of operationalising customer centric marketing (Rajendra S Sisodia and Jagdesh Seth) can help to meet this end. This is because customer satisfaction results in customer loyalty and firms with a bigger share of loyal customers profit from increasing repurchase rate, greater cross buying potential, higher price willingness, and lower switching tendency. As stated in the case study by Fulbagh Singh and Reema Sharma in their research paper Cellular services And Customer Buying Behavior in Amritsar City, There is a need to change the image the product for status symbol to product of necessity to increase the clientele base. For this the cellular company must further reduce the per minute charges and introduce more flexible plan schemes.

DATA COLLECTION METHODOLOGY

Primary and Secondary Data Sources
Questionnaire Method was used containing Close Ended Questions. Secondary Data Sources of Customer Satisfaction Report of CRISIL and other journal and research papers were used to discern customer satisfaction factors of service providers in the Hyderabad telecom circle.

Sampling techniques
The sampling technique used in the study is Convenience sampling. More specifically Judgmental sampling technique which lets the researcher judge whether the respondent will truly give his response without any bias. Convenience Sampling has been administered on 100 respondents. Data was analyzed on the survey conducted on the ICFAI Hyderabad Campus.

Scaling Techniques
Likert scale to measure customer satisfaction. The scale is balance .and has responses ranging from Not at all essential- 1, and if they feel the factor is Absolutely essential mark 7 Multivariate Analysis tool using SPSS to measure perceived value proposition using tools like Factor Analysis Cluster Analysis

OVERALL MARKET SHARE

( a Percent Share r Of Service Providers (National) Other e s 3 o %

Aircel 6.17% Bharti Airtel 33.25 % Ide a 13.16 % BSNL 16.24% MTN L 1.5 %

Reliance 3.84%

Vodafone 23.57%

Source: CRISIL Report (below)

Group Company wise % market share

Sl. No. 1 2 3 4 5 6 7 p Na me of Company e Bharti Airtel odafone Essar V BSN L IDEA Airce l Reliance Telecom Spic e b Figures Total Sub 82920593 58764164 40487511 32809720 15375258 958269 5 370589 4

Nov'2008

a % Market Share 33.25 % 3.57% 2 16.24 % 3.16% 6.17% 3.84% 1.49%

8 9

MTNL BPL All India

382127 7 188232 4 249349436

1.53% 0.75% 0 100.00% 10

ANDHRA PRADESH SUBCRIBER BASE DATA

Vodafone Essar Bharti Airtel EIDEA cellular BSN L VODAFON O E RELIANC E

Player s

Subscriber Base
343001 6 809432 8 446043 8 169612 6 112345 9 274133 3

900000 0 80000 0 7000000 60000 0 5000000 40000 0 3000000 20000 0 1000000 0

SUBSCRIBER BASE AT

A.P

Subscriber Base

Vodafone Bharti l IDEA Airt cellular Essa r

BSNL

VODAFONE

RELIANCE

11

PRE AID MARKET

8% 8% 10% 14% 25 % 35 %

HARE
Air el Vodafon e Idea Tata Rel ance BSNL

Source: Crisil Research Telecom Services, Monthly Review Sep11 In the prepaid market Airtel is the market leader with 35% market share followed by Vodafone with 25% share and others.

POS PAI MARK SHARE D ET

19% 29% 5% Airtel Vodafon e Ide Tata 3% 14% 7% Reliance BS L others

24%

Source: Crisil Research Telecom Services, Monthly Review February 2008 The post-paid reveals Airtel to be the market leader with 28.8% with close competition from Vodafone with 23.7% , followed by others.

12

RESEARCH DESIGN
Descriptive Design The research design chosen for the study was descriptive. This was because it was intended to find the market characteristics such as market size, attitude of the customers towards the different aspects of the service and so on. . Information Needed For the Research Since the primary research was already conducted on customers, the information needs were known well. The study required the following information to be extracted for doing the final analysis. What are the present satisfaction levels of the customers with respect to different aspects of service provided? What are the preferences of the customer with regard to the service provided? Which aspects of the service have more predominant effect on the overall Satisfaction levels of the customers?

TOOLS USED
SPSS 13.0 for Windows Microsoft Excel Microsoft Word
The above mentioned tools were used in the completion of the project. Using SPSS 13.0 we analysed the data through factor analysis and cluster analysis. Again using MS Excel we did the required graphs to analyse the trend in the growth of prepaid or postpaid subscribers in the state of Andhra Pradesh.

13

CLUSTER ANALYSIS
(Introduction of Cluster Analysis and Its Application In This Survey)
Cluster analysis is an exploratory data analysis tool for solving classification problems. Its

object is to sort cases (people, things, events, etc) into groups, or clusters, so that the degree of association is strong between members of the same cluster and weak between members of different clusters. Each cluster thus describes, in terms of the data collected, the class to which its members belong; and this description may be abstracted through use from the particular to the general class or type.

Kmeans clustering
The K-means algorithm assigns each point to the cluster whose center (also called centroid) is nearest. The center is the average of all the points in the cluster that is, its coordinates are the arithmetic mean for each dimension separately over all the points in the cluster... Example: The data set has three dimensions and the cluster has two points: X = (x1, x2, x3) and Y = (y1, y2, y3). Then the centroid Z becomes Z = (z1, z2, z3), where z1 = (x1 + y1)/2 and z2 = (x2 + y2)/2 and z3 = (x3 + y3)/2.

14

ANALYSIS OF CLUSTERS IN THIS SURVEY

Cluster Analysis was applied to this survey in order to segment our respondents base by service usage patterns. If customers can be classified by usage, the company can offer more attractive packages to its customers.

Iteration History (a)

Iteration Change in Cluster Centers 1 1 2 3 4 7.107 .813 .025 .001 2 9.007 .475 .012 .000

(a) Iterations stopped because the maximum number of iterations was performed. Iterations failed to converge. The maximum absolute coordinate change for any center is .000. The current iteration is 4. The minimum distance between initial centers is 20.664. The iteration history shows the progress of the clustering process at each step. In early iterations, the cluster centers shift quite a lot. By the 4th iteration, they have settled down to the general area of their final location, and the last two iterations are minor adjustments.

15

ANOVA TABLE
The ANOVA table indicates which variables contribute the most to your cluster solution. Variables with large F values provide the greatest separation between clusters.
ANOVA

Cluster Mean Square Tariff Plan Customer care GPRS/Internet Connectivity/congestio n Dealer Support Easy Recharge/Bill Payment Grievance Handling Roaming Facility ISD Grace Period MMS Sing tones & Ringtones Conferencing Facility Missed Call Intimation Closed User Group Bundled Packages Other Promotional Schemes Privacy Agreement Coverage Online Payment 29.126 39.226 52.557 5.085 50.631 16.481 4.601 25.952 17.443 33.748 2.084 28.388 63.929 34.310 20.651 56.413 15.410 38.925 36.643 26.198 df 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Error Mean Square 2.315 2.149 2.481 2.804 2.087 2.982 2.408 3.433 2.564 2.743 2.999 3.028 2.027 3.370 2.372 2.562 2.684 2.664 2.299 2.810 df 68 68 68 68 68 68 68 68 68 68 68 68 68 68 68 68 68 68 68 68 F 32.579 18.251 21.183 1.813 24.256 5.526 1.911 7.560 6.804 12.302 .695 9.376 31.537 10.180 8.706 22.017 5.741 14.612 15.938 9.323 Sig. .001 .000 .000 .183 .000 .022 .171 .008 .011 .001 .407 .003 .000 .002 .004 .000 .019 .000 .000 .003

16

In our case, we see that Tariff Plan contributes the maximum to the cluster solution i.e. the respondents have given utmost importance to the Tariff plan. Other important factors contributing which are considerably contributing to the cluster are Customer Care, GPRS, Bundled packages, Dealer Support, Conferencing. The F test is used only for descriptive purposes because the clusters have been chosen to maximize the differences among cases in different clusters. The observed significance levels are not corrected for this and thus cannot be interpreted as tests of the hypothesis that the cluster means are equal.

FINAL CENTERS

CLUSTER

The values in the table are the means for each variable within each final cluster

Final Cluster Centers

Cluster Tariff Plan Customer care GPRS/Internet Connectivity/congestion Dealer Support Easy Recharge/Bill Payment Grievance Handling Roaming Facility ISD Grace Period MMS Sing tones & Ringtones Conferencing Facility Missed Call Intimation Closed User Group Bundled Packages Other Promotional Schemes Privacy Agreement Coverage Online Payment 1 6 5 5 5 5 5 5 5 5 4 4 5 5 5 5 5 4 5 5 5 2 4 4 3 4 3 4 4 4 4 4 4 4 3 3 5 3 3 4 4 4

17

It can be observed from the above table that the Tariff Plan has been given more importance by the cluster 1 respondents rather than cluster 2.Similarly Customer care, Coverage, easy Recharge, ISD, Conferencing have also been given more importance by Cluster 1 respondents rather than Cluster 2 respondents. Whereas variables like Grace Period, MMS, Closed User Group (CUG) is being equal importance by customers belonging to both the clusters. All in all the respondents of Cluster 1 can be viewed as more Tech Savvy and Sensitive towards different services provided by mobile service providers. And the respondents of cluster 2 are not as proactive towards using new technology and advanced communication services.

NUMBER OF CASES IN EACH CLUSTER

Number of Cases in each Cluster

Cluster Valid Missing

1 2

31.000 39.000 70.000 .000

This table shows how many cases were assigned to each cluster. In this survey 31 respondents belonged to Cluster 1 and 39 have been found to be in Cluster 2.

Limitations
The findings are based on a survey conducted in Hyderabad so the results obtained might be different from the behavior displayed from a more general sample. This result cannot be generalized to all geographical regions in which the telecom service providers operate. There may be a bias in furnishing information from the respondents.

18

FACTOR ANALYSIS
The survey we conducted was on the customer satisfaction and preference level for various mobile service providers. The factors we considered for the same are :1. Tariff Plan 2. Customer Care 3. GPRS/Internet 4. Connectivity/Congestion 5. Dealer Support 6. Easy- Recharge/Bill Payment 7. Grievance Handling 8. Roaming Facility 9. ISD 10. Grace Period 11. MMS 12. Sing Tones & Ringtones 13. Conferencing Facility 14. Missed Call Information 15. Closed User Group 16. Bundled Packages 17. Other Promotional Schemes 18. Private Agreement 19. Coverage 20. Online Payment

19

We have performed factor analysis on these variables. The various outputs through SPSS is mentioned below,

KMO AND BARTLETT'S TEST

Table 1.3
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square Df Sig. .708 397.049 190 .000

Source: Output Sheet (appendix) KMO test and Bartletts Test is basically the test of assumptions. The standard value for KMO test is that it should be greater than 0.70 and is inadequate if less than .50. The underlying assumptions behind the KMO test is that it indicates there is sufficient item for each factor. Here in our test the value of KMO is .708 which shows that we have sufficient item for each factor. The assumption of Bartletts test of sphericity is that it should be significant(less than .005) indicating that correlation matrix is significantly different from identity matrix in which correlations between the variables is zero. Here in our test significant value we have got is .000: this means that the variables are correlated highly enough to provide a reasonable basis for factor analysis. As per our analysis the approx chi square value is 397.049 and degree of freedom is 190. This shows that data are fit for factor analysis.

20

Table 1.4 Communalities

Initial Tariff Plan Customer care GPRS/Internet Connectivity/congestion Dealer Support Easy Payment Grievance Handling Roaming Facility ISD Grace Period MMS Sing tones & Ringtones Conferencing Facility Missed Call Intimation Closed User Group Bundled Packages Other Schemes Privacy Agreement Coverage Online Payment Promotional Recharge/Bill 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Extraction .688 .697 .646 .552 .488 .703 .749 .666 .796 .752 .663 .540 .672 .720 .744 .663 .673 .575 .677 .708

Extraction Method: Principal Component Analysis. Source: Output Sheet (Appendix) Communality, h , is the squared multiple correlation for the variable as dependent using the factors as predictors. The communality measures the percent of variance in a given variable explained by all the factors jointly and may be interpreted as the reliability of the indicator.
2

21

Communality for a variable is computed as the sum of squared factor loadings for that variable (row). Recall r-squared is the percent of variance explained, and since factors are uncorrelated, the squared loadings may be added to get the total percent explained, which is what communality is. For full orthogonal PCA(the one used in our analysis), the initial communality will be 1.0 for all variables and all of the variance in the variables will be explained by all of the factors, which will be as many as there are variables. The "extracted" communality is the percent of variance in a given variable explained by the factors which are extracted, which will usually be fewer than all the possible factors, resulting in coefficients less than 1.0. When an indicator variable has a low communality (>=.25), the factor model is not working well for that indicator and possibly it should be removed from the model. Low communalities across the set of variables indicate the variables are little related to each other. However, if the communality exceeds 1.0, there is a spurious solution, which may reflect too small a sample or the researcher has too many or too few factors.

22

Table 1.5

Total Variance Explained

Total Varianc e Explain Compone nt

% of Variance 1.00 4.86 24.2 9 2.00 1.84 9.18 3.00 1.61 8.03 4.00 1.53 7.66 5.00 1.36 6.79 6.00 1.15 5.75 7.00 1.03 5.15 8.00 0.91 4.54 9.00 0.81 4.07 10.0 0.77 3.87 0 11.0 0.65 3.27 0 12.0 0.62 3.12 13.0 0.50 2.50 0 14.0 0.46 2.30 0 15.0 0.43 2.14 0 16.0 0.36 1.79 17.0 0.34 1.68 0 18.0 0.31 1.56 0 19.0 0.27 1.34 0 20.0 0.19 0.96 d: Principal Component Analysis.

Initi al Eigenval Total

Extraction Sums of Squared Loadings Cumulative % 24.2 9 33.4 7 41.5 1 49.1 55.9 6 61.7 1 66.8 6 71.4 75.4 7 79.3 5 82.6 1 85.7 88.2 3 90.5 3 92.6 7 94.4 96.1 3 97.7 0 99.0 4 100.0 Total 4.86 1.84 1.61 1.53 1.36 1.15 1.03

Rotation Sums of Squared Loadings Total 2.93 2.20 1.89 1.74 1.69 1.54 1.39 % of Cumulative Variance % 14.6 14.64 4 11.0 25.64 09.44 35.07 8.70 43.77 8.43 52.20 7.70 59.90 6.96 66.86

% of Cumulative Variance % 24.2 24.2 99.18 9 33.4 7 8.03 41.5 1 7.66 49.1 6.79 55.9 6 5.75 61.7 1 5.15 66.8 6

Source: Output Sheet (Appendix) Basically the total variance explained table tells about the variance explained by each factor. Eigen values refer to the variance explained or accounted for. The % of variance shows the percent of variance for each component before and after rotation. Cumulative variance basically shows the percentage of variance shown by the variables whose Eigen value is greater than 1. Here the Total Variance Explained table shows how the variance is divided among the 20 possible factors. We found seven factors have Eigen values (a measure of explained variance) greater than 1.0 which is a common criterion for a factor to be useful. When the Eigen value is less than 1.0, this means that the factor explains less information than a single item would have explained. Here the first factor shows the highest variance i.e. it explained 24.291 % of the total variance explained. If we sum up all the seven factors it basically explained 66.863 % of the total variance. The computer would have looked for the best seven-factor solution by "rotating" seven
23

factors. The remaining 13 factors are not showing any variance due to their weakly correlated nature. For this we will use an orthogonal rotation (varimax). This means that the final factors will be as uncorrelated as possible with each other. As a result, we can assume that the Information explained by one factor is independent of the information in the other factors. We rotate the factors so that they are easier to interpret. Rotation makes it so that, as much as possible, different items are explained or predicted by different underlying factors, and each factor explains more than one item. This is a condition called simple structure. One thing to look for in the Rotated Matrix of factor loadings is the extent to which simple structure is achieved.

24

Scree Plot

Eigenvalue

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Component Number

The Rotated Factor Matrix table, which contains these loadings, is key for understanding the results of the analysis. Here the computer have sorted the 20 factors into seven overlapping group of items each which has a loading of 0.40 or higher (without considering the sign).

25

Table 1.6
Rotated Component Matrix (a) Components 1 Grace Period Customer care GPRS/Internet Tariff Plan Bundled Packages Online Payment Privacy Agreement Dealer Support Conferencing Facility Grievance Handling Sing tones & Ringtones Roaming Facility Easy Payment Coverage ISD Other Promotional Schemes MMS Connectivity/congestion Missed Call Intimation Closed User Group .451 Recharge/Bill .450 .792 .747 .741 .619 .729 .718 .639 .456 .442 .777 .601 .566 .478 .741 .639 .848 .761 .806 .505 .741 -.518 .443 .439 .401 2 3 4 5 6 7

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. Rotation converged in 9 iterations. Source: Output Sheet (Appendix)

26

Table 1.7 Critical Factors

Factor 1
Economic Pack/Pricing Tariff Plan

Factor 2
Customer Friendliness Privacy Agreement Online Payment Bundled Packages

Factor 3
Customer Support Back Grievance Handling Sing Tones & Ring Tones Roaming Facility

Factor 4
Accessibility Easy Recharge/Bill Payment Coverage

Factor 5
Travel pack

Factor 6
Easy to Connect MMS

Factor 7
Add on feature Missed Call Information

ISD Other Promotion al Schemes

Grace Period

Connectivity/ Congestion

GPRS/Internet Customer Care

Source: Data Analysis Factor 1: Economic Pack/PricingThe rotated Matrix revealed that the respondents perceive this particular factor to be the most important factor, with the highest explained variance of 14.64%. Four out of twenty service features load on significantly to this factor. We have named this factor as economy pack as it consists of various GPRS/Internet (free sms, free calls, grace period etc) along Grace Period (Period after expiry of the validity). Tariff plan as per the convenience of customers and proper connectivity, thus can be said to be the most crucial factors influencing the decision of mobile service users while selecting particular service providers. Factor 2: Customer Friendliness This has come out as second most important factor with rotated explained variance of 11.00%. Three types of feature were loaded on to this factor. Privacy Agreement, (No sharing of Customer Data with other agencies), Online Payment (Payment of Post-Paid Bills through
27

Internet in collaboration with various Banks) and Bundled Packages (various packages like Closed User Group etc.) Factor 3: Customer Support Back Three types of featured are loaded on this factor. This factor consists of facilities like Grievance Handling, Sing Tones & Ring Tones and Roaming Facility. The factor accounts for 9.44% of the variance. Facilities like Sing Tones & Ring Tones are a boost for corporate and business customers. Factor 4: Accessibility Two types of features are loaded on this factor and together they account for 8.70% of the variance. Easy Re-charge/Bill Payment and Coverage has become one of the most crucial factors to measure the accessibility of the customers. If a company is not able to handle the coverage of customers then it is bound to lose the market share and its reputation in the market. Factor 5: Travel Pack It has been revealed that the fifth most important factor with explained variance of 8.43% the various features which are loaded on this factor are ISD and Other Promotional Schemes. ISD stands for International Subscriber Dialing, which is major source of Revenue for the company. Other Promotional Schemes are very important factors for instant revenue for the company. Factor 6: Easy to Connect The rotated matrix reveals that the factor easy to connect accounts for 7.70% of the variance. Two types of features are loaded on this factor. These features are MMS and Connectivity/Congestion. This is verybeneficial for frequently comes to a place (Dontanapalli, ICFAI), which is outside city limits. travelling customers. Connectivity is also loaded on this factor, which is one of the most important factor when it

28

Factor 7: Add-on Feature One type of feature is loaded on this factor. Missed Call Information, which accounts for 6.96% of the variance. This is a new trend in the mobile service market. Service providers are making huge revenue by providing this additional service, which is very popular in young generation as well as business and professional class.

CORRELATI ON
CORRELATIO Overall Satisfacti on Overall Satisfaction Tariff Plan 1.00 70.0 00.18 0.13 70.0 0.36 0.00 70.0 0.31 0.01 70.0 0 0.20 0.10 70.0 00.10 0.40 70.0 00.11 0.38 70.0 0.20 0.10 70.0 0.27 0.02 70.0 00.02 0.87 70.0 00.11 0.38 70.0 00.20 0.10 70.0 0.21 0.08 70.0 00.21 0.08 70.0 00.42 0.00 70.0 00.20 0.11 70.0 0.21 0.08 70.0 0.24 0.05 70.0 00.34 0.00 70.0 00.10 0.42 70.0 0.07 0.58 70.0 0 Tariff Plan 0.18 0.13 70.0 01.00 70.0 0.43 0.00 70.0 0.31 0.01 70.0 0 0.10 0.40 70.0 00.42 0.00 70.0 00.29 0.01 70.0 0.19 0.12 70.0 0.36 0.00 70.0 00.10 0.40 70.0 00.30 0.01 70.0 0 (0.13 0.27 70.0 0.33 0.01 70.0 00.27 0.02 70.0 00.20 0.10 70.0 0 (0.04 0.72 70.0 0.12 0.30 70.0 0.25 0.04 70.0 00.16 0.18 70.0 00.09 0.44 70.0 0.06 0.65 70.0 0 Custom GPRS/I Connectivit er y/ nt care ernet congestio 0.36 0.31 n 0.20 0.00 0.01 0.10 70.0 70.0 70.0 00.43 00.31 00.10 0.00 0.01 0.40 70.0 70.0 70.0 1.00 0.53 0.19 0.00 0.11 70.0 70.0 70.0 0.53 1.00 0.24 0.00 0.05 70.0 70.0 70.0 0 0 0 0.19 0.24 1.00 0.11 70.0 00.46 0.00 70.0 00.28 0.02 70.0 0.23 0.06 70.0 0.23 0.06 70.0 00.05 0.69 70.0 00.53 0.00 70.0 0 (0.00 1.00 70.0 0.16 0.19 70.0 00.45 0.00 70.0 00.19 0.11 70.0 00.18 0.13 70.0 0.26 0.03 70.0 0.13 0.28 70.0 00.43 0.00 70.0 00.16 0.20 70.0 0.24 0.04 70.0 0 0.05 70.0 00.29 0.01 70.0 00.36 0.00 70.0 0.12 0.32 70.0 0.28 0.02 70.0 00.01 0.95 70.0 00.49 0.00 70.0 00.10 0.42 70.0 0.21 0.08 70.0 00.30 0.01 70.0 00.06 0.63 70.0 00.27 0.02 70.0 0.19 0.12 70.0 0.12 0.33 70.0 00.26 0.03 70.0 00.13 0.29 70.0 0.18 0.14 70.0 0 Easy Deale Grievanc Roamin r Rechar e g Suppor g e/Bill Handling Facility t Paymen 0.10 0.11 0.20 0.27 0.40 0.38 0.10 0.02 70.0 70.0 70.0 70.0 00.42 00.29 00.19 00.36 0.00 0.01 0.12 0.00 70.0 70.0 70.0 70.0 0.46 0.28 0.23 0.23 0.00 0.02 0.06 0.06 70.0 70.0 70.0 70.0 0.29 0.36 0.12 0.28 0.01 0.00 0.32 0.02 70.0 70.0 70.0 70.0 0 0 0 0 (0.02 (0.01 0.08 (0.04 ) ) ) 0.90 0.95 0.49 0.76 70.0 70.0 70.0 70.0 01.00 00.26 00.24 00.19 0.03 0.05 0.12 70.0 70.0 70.0 70.0 00.26 01.00 0 00.29 (0.12 0.03 0.31 0.02 70.0 70.0 70.0 70.0 0.24 (0.12 1.00 0.30 )0.31 0.05 0.01 70.0 70.0 70.0 70.0 0.19 0.29 0.30 1.00 0.12 0.02 0.01 70.0 70.0 70.0 70.0 0 00.02 00.08 00.12 (0.00 )1.00 0.86 0.53 0.32 70.0 70.0 70.0 70.0 00.29 00.16 00.09 00.14 0.01 0.20 0.48 0.25 70.0 70.0 70.0 70.0 00.05 0 00.02 00.04 (0.11 0.71 0.35 0.89 0.72 70.0 70.0 70.0 70.0 0.19 0.19 0.35 0.29 0.12 0.12 0.00 0.02 70.0 70.0 70.0 70.0 00.36 00.20 00.32 00.30 0.00 0.10 0.01 0.01 70.0 70.0 70.0 70.0 00.11 00.09 00.28 00.22 0.36 0.45 0.02 0.07 70.0 70.0 70.0 70.0 00.19 00.14 00.27 00.29 0.11 0.24 0.03 0.01 70.0 70.0 70.0 70.0 0.37 0.05 0.25 (0.02 )0.86 0.00 0.66 0.04 70.0 70.0 70.0 70.0 0.11 0.06 0.22 0.25 0.36 0.63 0.06 0.03 70.0 70.0 70.0 70.0 00.30 00.11 00.04 00.06 0.01 0.35 0.72 0.60 70.0 70.0 70.0 70.0 00.25 00.25 0 00.31 (0.03 0.04 0.04 0.83 0.01 70.0 70.0 70.0 70.0 0.23 0.18 0.11 0.11 0.05 0.13 0.34 0.38 70.0 70.0 70.0 70.0 0 0 0 0 Grace MMS Period 0.11 0.38 70.0 00.30 0.01 70.0 0.53 0.00 70.0 0.49 0.00 70.0 0 0.12 0.34 70.0 00.29 0.01 70.0 00.16 0.20 70.0 0.09 0.48 70.0 0.14 0.25 70.0 00.34 0.00 70.0 01.00 70.0 00.08 0.51 70.0 0.05 0.68 70.0 00.27 0.02 70.0 00.03 0.78 70.0 00.36 0.00 70.0 0.18 0.13 70.0 0.16 0.17 70.0 00.13 0.28 70.0 00.05 0.67 70.0 0.00 1.00 70.0 0 Misse Sing d Call tones Conferen Intima & ci ng ti on Rington Facility es 0.20 0.21 0.21 0.42 0.10 0.08 0.08 0.00 70.0 70.0 70.0 70.0 0 00.33 00.27 00.20 (0.13 0.27 0.01 0.02 0.10 70.0 70.0 70.0 70.0 (0.00 0.16 0.45 0.19 )1.00 0.19 0.00 0.11 70.0 70.0 70.0 70.0 0.10 0.21 0.30 0.06 0.42 0.08 0.01 0.63 70.0 70.0 70.0 70.0 0 0 0 0 0.13 0.03 (0.03 0.08 ) 0.27 0.83 0.82 0.51 70.0 70.0 70.0 70.0 00.05 00.19 00.36 00.11 0.71 0.12 0.00 0.36 70.0 70.0 70.0 70.0 0 00.19 00.20 00.09 (0.11 0.35 0.12 0.10 0.45 70.0 70.0 70.0 70.0 0.02 0.35 0.32 0.28 0.89 0.00 0.01 0.02 70.0 70.0 70.0 70.0 0.04 0.29 0.30 0.22 0.72 0.02 0.01 0.07 70.0 70.0 70.0 70.0 00.12 00.24 00.17 0 (0.09 0.34 0.04 0.16 )0.48 70.0 70.0 70.0 70.0 00.08 00.05 00.27 00.03 0.51 0.68 0.02 0.78 70.0 70.0 70.0 70.0 01.00 00.09 0 (0.00 00.13 0.45 0.97 0.27 70.0 70.0 70.0 70.0 0.09 1.00 0.29 0.18 0.45 0.02 0.14 70.0 70.0 70.0 70.0 0 00.29 01.00 00.45 (0.00 )0.97 0.02 0.00 70.0 70.0 70.0 70.0 00.13 00.18 00.45 01.00 0.27 0.14 0.00 70.0 70.0 70.0 70.0 00.30 00.15 00.09 0 (0.04 0.01 0.22 0.46 0.71 70.0 70.0 70.0 70.0 0.22 0.23 0.42 0.24 0.07 0.06 0.00 0.05 70.0 70.0 70.0 70.0 0.11 0.30 0.22 0.11 0.35 0.01 0.06 0.37 70.0 70.0 70.0 70.0 00.02 0 00.42 00.19 (0.04 0.88 0.74 0.00 0.11 70.0 70.0 70.0 70.0 00.24 00.18 00.15 00.18 0.04 0.13 0.20 0.13 70.0 70.0 70.0 70.0 0.09 0.23 0.23 0.16 0.48 0.06 0.06 0.17 70.0 70.0 70.0 70.0 0 0 0 0 Close d User Grou p 0.20 0.11 70.0 0 (0.04 0.72 70.0 0.18 0.13 70.0 0.27 0.02 70.0 0 0.09 0.47 70.0 00.19 0.11 70.0 00.14 0.24 70.0 0.27 0.03 70.0 0.29 0.01 70.0 00.29 0.01 70.0 00.36 0.00 70.0 00.30 0.01 70.0 0.15 0.22 70.0 00.09 0.46 70.0 0 (0.04 0.71 70.0 01.00 70.0 0.25 0.03 70.0 0.16 0.18 70.0 00.16 0.18 70.0 00.25 0.04 70.0 0.25 0.04 70.0 0 Other Online Bundle Promotio Privacy Coverag Payme n al d Agreeme e nt Packag Scheme nt es s 0.21 0.24 0.34 0.10 0.07 0.08 0.05 0.00 0.42 0.58 70.0 70.0 70.0 70.0 70.00 00.12 00.25 00.16 00.09 0.06 0.30 0.04 0.18 0.44 0.65 70.0 70.0 70.0 70.0 70.00 0.26 0.13 0.43 0.16 0.24 0.03 0.28 0.00 0.20 0.04 70.0 70.0 70.0 70.0 70.00 0.19 0.12 0.26 0.13 0.18 0.12 0.33 0.03 0.29 0.14 70.0 70.0 70.0 70.0 70.00 0 0 0 0 0.12 0.14 0.13 0.17 0.07 0.34 70.0 00.37 0.00 70.0 00.05 0.66 70.0 0.25 0.04 70.0 (0.02 )0.86 70.0 00.18 0.13 70.0 00.18 0.13 70.0 00.22 0.07 70.0 0.23 0.06 70.0 00.42 0.00 70.0 00.24 0.05 70.0 00.25 0.03 70.0 1.00 70.0 0.22 0.07 70.0 00.36 0.00 70.0 00.12 0.31 70.0 0.38 0.00 70.0 0 0.24 70.0 00.11 0.36 70.0 00.06 0.63 70.0 0.22 0.06 70.0 0.25 0.03 70.0 00.44 0.00 70.0 00.16 0.17 70.0 00.11 0.35 70.0 0.30 0.01 70.0 00.22 0.06 70.0 00.11 0.37 70.0 00.16 0.18 70.0 0.22 0.07 70.0 1.00 70.0 00.14 0.25 70.0 00.21 0.07 70.0 0.05 0.68 70.0 0 0.28 70.0 00.30 0.01 70.0 00.11 0.35 70.0 0.04 0.72 70.0 0.06 0.60 70.0 00.12 0.32 70.0 00.13 0.28 70.0 00.02 0.88 70.0 (0.04 )0.74 70.0 00.42 0.00 70.0 00.19 0.11 70.0 00.16 0.18 70.0 0.36 0.00 70.0 0.14 0.25 70.0 01.00 70.0 00.13 0.29 70.0 0.28 0.02 70.0 0 0.16 70.0 00.25 0.04 70.0 00.25 0.04 70.0 (0.03 )0.83 70.0 0.31 0.01 70.0 00.19 0.12 70.0 00.05 0.67 70.0 00.24 0.04 70.0 0.18 0.13 70.0 00.15 0.20 70.0 00.18 0.13 70.0 00.25 0.04 70.0 0.12 0.31 70.0 0.21 0.07 70.0 00.13 0.29 70.0 01.00 0.57 70.00 0.23 0.05 70.00 0.18 0.13 70.00 0.11 0.34 70.00 0.11 0.38 70.00 0.05 0.71 70.00 0.00 1.00 70.00 0.09 0.48 70.00 0.23 0.06 70.00 0.23 0.06 70.00 0.16 0.17 70.00 0.25 0.04 70.00 0.38 0.00 70.00 0.05 0.68 70.00 0.28 0.02 70.00 0.30 0.01 70.0 70.00 0.30 1.00 0.01 70.0 70.00 0 ISD

Customer care

GPRS/Internet

Connectivity/cong esti on

0.02 0.87 70.0 00.10 0.40 70.0 0.05 0.69 70.0 0.01 0.95 70.0 0 0.05 0.65 70.0 0 (0.00 )1.00 70.0 00.02 0.86 70.0 0.08 0.53 70.0 0.12 0.32 70.0 01.00 70.0 00.34 0.00 70.0 00.12 0.34 70.0 0.24 0.04 70.0 00.17 0.16 70.0 0 (0.09 0.48 70.0 00.29 0.01 70.0 0.18 0.13 70.0 0.44 0.00 70.0 00.12 0.32 70.0 00.19 0.12 70.0 0.05 0.71 70.0 0

Dealer Support

y Recharge/Bill s Grievance Handling Roaming Facility ISD

Grace Period

MMS

Sing tones & Ringtones Conferencing Facility Missed Call

Closed User

Bundled Packages her Promotional Schem Privacy

Coverage

Online Payment

70.0 0 (0.02 )0.90 70.0 0 (0.01 0.95 70.0 0.08 0.49 70.0 (0.04 )0.76 70.0 00.05 0.65 70.0 00.12 0.34 70.0 00.13 0.27 70.0 0.03 0.83 70.0 0 (0.03 )0.82 70.0 00.08 0.51 70.0 00.09 0.47 70.0 0.12 0.34 70.0 0.14 0.24 70.0 00.13 0.28 70.0 00.17 0.16 70.0 0.07 0.57 70.0 0

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The above chart clearly shows that all the 20 different factors that we have taken is positively correlated with the overall satisfaction level of the customers. So we can say that the Null Hypothesis which we have taken should be rejected rather the Alternative Hypothesis should be accepted. From the table we have found out that customer towards satisfaction cellular

service providers depends mostly on the customer care provided by the operators. This is because both customer satisfaction levels and customer care are found to be highly correlated.

REFERENC ES
www.google.com www.crisil.com www.auspi.in www.coai.org Rajendra S Sisodia and Jagdesh Seth (2004)4 As of operationalising customer centric marketing. Fulbagh Singh and Reema Sharma( Sep 2008) Cellular services And Customer Buying Behavior in Amritsar City.

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QUESTIONNAIRE Customer Satisfaction & Preference towards Mobile Service Providers Name of the Respondent: Annual Income : < 1 Lakh < 3 Lakh Gender: More than 3 Lakh Age:

Q1.) How many mobile connections do you have? One Two Three More than Three

Q2.) Which mobile service do you use? Airtel Idea BSNL Reliance Vodafone

Q3.) Is the connection Postpaid Pre-paid Both

Q4.) Which is the best quality service Provider you know? Airtel Idea BSNL Reliance Vodafone

RATINGS: If you feel the factor is Not at all essential mark 1, and if you feel the factor is Absolutely essential mark 7. If your feelings are less strong mark one of the numbers in the middle. There is no right or wrong answer-all we are interested in is the number that truly reflects your feelings regarding the weight-age given to the factor. Q4.) How satisfied are you with your service provider

RATING
Satisfaction Level

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Q5.) Rate your operator on following features.

RATING Tariff Plan Customer care GPRS/Internet Connectivity/congestion Dealer Support Easy Recharge/Bill Payment Grievance Handling Roaming Facility ISD Grace Period MMS Sing tones & Ringtones Conferencing Facility Missed Call Intimation (when mobile is switched off) Closed User Group Bundled Packages * Other Promotional Schemes** Privacy Agreement+ Coverage Online Payment
*Connection with a handset/1000 calls free etc. **SMS /STD/LOCAL Pack

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+No promotional SMS/Calls coming from your service provider

Q6) How long have you been using the connection? < 3 months < 6 months 1 year > 1 year

Q7) Are you attracted by features of other cellular service providers? Yes No

Q8) Does your service connection has any tie ups with banks for easy monthly payments? Yes No

Q9) Which Technology provides better connectivity and voice clarity? GSM CDMA

Q10) Are you willing to continue with the existing cellular service provider? Yes No Not Sure

Q11) When 3G services are launched would you switch over to a different cellular service provider? Yes No Not Sure

Q12) Would you recommend any of your colleagues or friends to use the current cellular service provider that you are using? Yes No Not Sure

Q13) Will you change your cellular service provider in-case of suggestions from your colleagues or friends? Yes No Not Sure

Q14) How many other members in your family use the connection provided by the cellular provider as you are using?
One Two Three More than Three 33