PROJECT REPORT

ON

“CUSTOMER SATISIFACTION ON MOBILE SERVICE PROVIDER

NETWORKS”

IN

IMRB INTERNATIONAL,
HYDERABAD.

By
CH.KARTHIK

(08M009)

(Marketing/Finance)

Submitted in Partial Fulfillment of the Requirements for the Award of the

Post Graduation Diploma in Business Management

DHRUVA COLLEGE OF MANAGEMENT

MEDCHAL
HYDERABAD.
 CERTIFICATE

This is to certify that the dissertation entitled “CUSTOMER

SATISIFACTION ON MOBILE NETWORKS” in IMRB

INTERNATIONAL ,HYDERABAD. that is being submitted by Mr

CH.KARTHIK in partial fulfillment of the requirements for the award of

degree of PGDM in MARKETING & FINANCE in Dhruva College of

Management is a bonafied work carried out by him under the guidance and

supervision of the undersigned.

The results embodied in this dissertation have not been submitted to any other

university or institution for the award of any degree or diploma.

Date:

Place: Supervisor’s Signature and designation

 DECLARATION

I hereby declare that the dissertation entitled “A REPORT ON CUSTOMER

SATISIFACTION ON MOBILE SERVICE PROVIDERS NETWORKS”
that is being submitted by me in partial fulfillment of the requirements for the
award of the degree of PGDM in FINANCE & MARKETING to Dhruva
College of Management is a record of bonafied work carried out by me.

The results embodied in this dissertation have not been submitted to any other
university or institution for the award of any degree or diploma.

Date:

Place:

Signature of the student

Internal supervisor Examiner (s)

1 ………………………………

2 ………………………………
 ACKNOWLEDGEMENT

The authorship of a monograph is usually attributed to one person but a report on the
internship or a project work like this one is a joint affair. I am indebted to all who
have directly and indirectly been of great help to me in doing and writing this project
report.

Firstly, I am thankful and express my gratitude to Mr. SRIKANTH(SUPERVISIOR)

who inspired me and guided me throughout the period of Project Work that enabled
me to successful completion the project .

I am also grateful to Dr. Satya Prasad, Faculty DCM - Hyderabad for his
continuous and deliberate discussion on the topic and indeterminable burden taken by
him in helping me during the project.

I extend my thanks to Dr. S Pratap Reddy (Chairman – DCM) and for providing all
the necessary facilities in bringing out this project report

Special regard and greatest appreciation is reserved for all the Executives and
Employees of IMRB INTERNATIONAL,Hyderabad whose honest feedbacks, ideas
and thoughts helped me navigate through the most difficult phases of the project work.

Last, but not least I am thankful to my parents who motivated me throughout this
project work, The preparation of this report would not have been an easy task without
the help and support of my parents.

I am pleased to say that the whole report is just the presentation of the facts that have
been found during the projects through different sources and its each sentence is an
exact representation of the information obtained and the analysis thereof.

I hope that I have manifested my sincere attempts to represent all the information and
other things to the best of ability. (CH.KARTHIK)
Abstract:

Keywords: Price, Perceived quality, Perceived sacrifice, Perceived value,

purchase intention, mobile phones.

Mobile phone service provider markets are one of the most unstable market
atmospheres ,now adays due to increased competition and change in the market.
Thus, the growing concern requires the marketers to strictly look at customer
buying decision and satisifying process and more focus on the factors such as
Prices, Perceived quality, Perceived sacrifice, Perceived value, and Purchase
intention that subsequently determine willingness to purchase between different
mobile phones and networks. On this basis, this research deals with consumers’
sacrifice and willingness to purchase criteria in mobile phone service providers
markets by studying factors that influence customer perceived value and
satisifying intention to acquire new mobile phones on one hand and factors that
influence on mobile network change on the other hand. It was found that
althoughthe willingness to measure satisifaction by customer on mobile service
providers is a subjective choice situation, thereare some general factors that
seem to guide the willingness to buy. The studyshows that while technical
problems are the basic reason to change mobilephone &network among
consumers, prices, brands, interface, and properties are theinfluential factors
affecting the actual choice among brands. Overall profiling ofcustomer is also
done to find out the requirement of customers.In addition, the results show
customers sensitively emphasize on prices butsacrifice and also less willing to
purchase mobile phone&satisfying . Accordingly, it is useful to consider the
age, gender, income, and education of consumers topredict consumer
satisifaction more precisely.
Acknowledgement……………………………………………….
Abstract ………………………………………………………….
Company profile
1) INTRODUCTION …………………………………………………………………......4
Background ……………………………………………………………………….……6
Research Objectives…………………………………………………………………….6
Research Limitation……………………………………………………………………..6
Research Flow…………………………………………………………………………..6
2) MAIN TEXT LITERATURE REVIEW………………………………………………….8
Consumer Buying Behavior……………………………………………………………..9
Consumer Buying Decision Process…………………………………………………….10
Industry Overview……………………………………………………………………….21
Industry Structure………………………………………………………………………..22
Cellular Service………………………………………………………………………….26
3) Research Methodology…………………………………………………………………..29
Research Definition………………………………………………………………………30
Research Methodology…………………………………………………………………..30
Research Design………………………………………………………………………….31
Data Collection…………………………………………………………………………...31
Data Preparation………………………………………………………………………….32
4) Data ANALYSIS ………………………………………………………………………...33
Missing Value Analysis…………………………………………………………………..34
Regression Analysis for service provider………………………………………………...36
Regression Analysis for Handset Maker…………………………………………………44
Factor Analysis …………………………………………………………...58
5) Conclusion.....................................................................................................................92
6) References......................................................................................................................93
7) Glossary.........................................................................................................................94
Appendices

Company profile
Established in 1971 and with over three decades of market research
experience, IMRB International is a pioneer in India in various research
areas.
Associated with a group of international market companies such as the
British
Market Research Bureau (BMRB) and Millward Brown International, IMRB
International operates out of thirteen cities in India and has associate
offices
in Sri Lanka, Bangladesh and Nepal. The 1200 member strong IMRB
International promises high quality conceptualization, strategic thinking,
execution and interpretation skills on all its clients' research needs. IMRB
International is the only research company in India today that offers the
entire
range of research based services to its clients.

IMRB International’s specialized areas includes consumer market research

both quantitative and qualitative, industrial market research, business to
business market research, social and rural market research, media
research,
retail research, and consumer panels. IMRB International is the market
research wing of J Walter Thompson (JWT) - the leading advertising
agency in
India. JWT in turn belongs to the Kantar Group, which in turn is a part of
the
WPP Group - the largest advertising group in the world.
IMRB International provides specialist research services to its clients in
India
and overseas on products and services covering the entire gamut of
business
and industry. IMRB International today, operates out of its five full service
offices in Mumbai, Delhi, Calcutta, Chennai and Bangalore and is
supported by
15 other regional centers for collection of survey information that literally
span
the entire country.
KANTAR GROUP
The Kantar group was established in 1993, a London based holding
company
responsible for WPP's worldwide information and consultancy interests.
Kantar
is the world's largest survey organization and is ranked 3rd overall. It
comprises three global research businesses - Research International,
Millward
Brown and Kantar Media Research and four regional ones - BMRB
International, IMRB International, Goldfarb and Winona. Each is a leader in
its
own area of expertise or specialization. The research studies in over 130
countries.
The Kantar group specialized in:
➢Qualitative and quantitative research
➢Tracking studies
➢International research
➢Predictive modelling
➢Media measurement
➢Data capture and handling
➢Strategic research
➢Customer handling
J WALTER THOMPSON COMPANY
The world's first global brand communication company that provides its
clients
with both short term sales success and long term brand value. J.Walter
Thompson was founded in 1864, with 246 offices globally and more than
9200
employees. JWT's proprietary planning process, Thomson total branding in
now installed in all offices worldwide guarantying a uniform level of
excellence
in the development of Brand Vision, a Branding Idea and Total
Communication
Plan.

MILLWARD BROWN INTERNATIONAL (MBI)

IMRB International is the licensee for all Millward Brown products in South
Asia
(India, Pakistan, Sri Lanka, Nepal, and Bangladesh).
Walker Information Global Network (WIGN):- Customer Satisfaction
Management & Measurement (CSMM), one of the specialist units of IMRB
International, is an exclusive-member of Walker Information Global
Network
(WIGN) in the Indian subcontinent. Walker Information Global Network is
the
only international partnership dedicated exclusively to stakeholder
measurement and management. CSMM uses proprietary tools developed
by
Walker Information, the recognized pioneer in customer satisfaction.

RESEARCH INTERNATIONAL (RI)

Research International is a world's largest custom market research
agency. It
has more offices in more than 50 countries and has an experience of
working
in over 130 countries.
Research International specialized in:
➢ Branding and Communication
➢ Innovation and Product Development
➢ Category Management
➢ Consumer strategy
➢ Customer Relationship
➢ Service measurement

ABACUS FIELD
Abacus Field handles the field operations for all the business divisions in
IMRB.
Abacus Field has a network of 15 regional offices spread across the
country
that gives IMRB the capability to run pan India research projects smoothly
&
effectively. Abacus Field is consistently striving to exceed client
expectations,
through high quality work, integrity, innovativeness and building a culture
which promotes professional and personal growth opportunities.
IMRB International has acted as a catalyst in the development of market
research infrastructure in neighbouring countries. They work with
associate
companies in Sri Lanka (Lanka Market Research Bureau) and in the Middle
East
(Arab Market Research Bureau), and through affiliates in Australia,
Singapore,
Malaysia, Thailand, Indonesia, Philippines, Egypt, Tunisia, Nepal, Pakistan,
Bangladesh and Myanmar.

3.2) DIVISIONS
IMRB has five specialist units to serve the diverse needs of their clients:
➢Probe Qualitative Research (PQR)
➢Social and Rural Research Institute (SRI)
➢Media & Panel Research Group
➢Customer Satisfaction Management & Measurement (CSMM)
➢Business & Industrial Research Division (BIRD)
PROBE QUALITATIVE RESEARCH (PQR)
Probe Qualitative Research (PQR) was established in 1979, in the belief
that
qualitative research demands expertise and training inputs of an
exceptional
kind. From its inception PQR has been associated with leading
international
qualitative research organizations. It is the largest and fastest growing
qualitative research organization in the country. PQR provides research
which
is analytical and actionable, seeking to resolve particular client problems
and
questions and providing future direction. It also provides high quality
insight
and multi-disciplinary exploration of consumer motivation and behavior
through a strong base of multilingual research executives and
moderators.

SOCIAL & RURAL RESEARCH INSTITUTE (SRI)

The Social and Rural Research Institute (SRI) was set up in 1990. SRI uses
a
combination of desk research, qualitative research techniques such as
focus
group discussions and participatory research as well as quantitative
research
techniques. In addition SRI approaches each research subject with an
open
mind and adapts market research techniques to suit the special
requirements
of illiteracy, poor articulation, several languages and dialects.
SRI has two distinct missions that guide its operations: To study social
issues
with commitment, expertise, objectivity and an orientation towards action
ability, and to set up databases and research expertise with regard to
marketing in rural India , where hitherto there has been a paucity of data.
SRI
guided by its mission specializes in conducting Social research and rural
research. Social research deals with research on causes and issues that
can
contribute to action which would bring about social change. Rural
research
pertains to research in, of and for rural areas, both for social issues as well
as
for rural marketing. SRI takes pride in having the resources to conduct
data
collection in almost any part of the country. It can undertake nationwide
surveys almost simultaneously and much faster than others.
MEDIA & PANEL RESEARCH GROUP
IMRB International has been a pioneer in conducting large scale Media and
continuous panel research in India. It has historically been associated with
the
National Readership Surveys (NRS) conducted in India since 1978. The
Television Rating Points System (TRP) from IMRB International is India's
only
continuous Television Audience Measurement service since 1986, the year
in
which television in India went commercial in a major way. The TRP ratings
are
the official "currency" for air time transactions in the country. Currently,
the
TRP Diary System is in the process of changing over to People Meter
based
audience measurement service. In addition, the Media & Panel Research
Group
also operates Consumer Purchase Panels in both urban and rural India
which
monitors the purchase of FMCGs, toiletries, personal products and OTC
medicinal products.
CUSTOMER SATISFACTION MANAGEMENT & MEASUREMENT
(CSMM)
Customer Satisfaction Management & Measurement (CSMM) is an
independent, specialist unit of IMRB International and the exclusive
member of
the Walker Information Global Network (WIGN) in the Indian subcontinent.
As a
specialist unit of IMRB International, CSMM provides the widest field
coverage
with five full service offices and 13 field offices in Delhi, Calcutta, Mumbai,
Chennai, Bangalore, Hyderabad, Cochin, Pune, Patna, Ahmedabad,
Guwahati,
Bhubaneswar and Lucknow. CSMM services clients in India and
neighbouring
countries (Sri Lanka, Bangladesh, Pakistan and Nepal) and this diverse
network has made CSMM the leading provider of stakeholder products and
services in South Asia. As the exclusive member of the Walker Information
Global Network (WIGN) in South Asia, CSMM uses the proprietary tools
developed by Walker Information, the recognized pioneers in Stakeholder
Measurement and Management with over 30 years experience. The
network
offers the world's most thoroughly tested and proven system and also
provides appropriate benchmarks through the WIGN Normative Database
TM.
CSMM provides a range of consulting products and services to manage
external customer satisfaction and employee commitment to integrate
stakeholder measurement and management efforts into the company's
decision-making process at all levels. Working with over 80 clients from
diverse sectors, including financial services, hotels, telecommunications,
retailing, consumer products, automotive and engineering/industrial
goods,
CSMM provides strategic information services to enhance customer loyalty
amongst both end customers and trade channel customers as well as to
build
employee commitment.
CSMM offers a team of highly trained and experienced consultants with
multidisciplinary
backgrounds.
BUSINESS & INDUSTRIAL RESEARCH DIVISIONS (BIRD)
➢ Oil & Gas :
Higher-end telecommunication services and products for business use
including products and services for integrated networking of voice and
data
products and services that enhance productivity and efficiency of offices
such as copiers, computers, printers, etc.
The steel sector both for measuring quality of service as well as
recommending an appropriate product mix in the emerging private
enterprise scenario Chemicals and Petrochemicals, Core sectors such as
power, coal, etc., Electrical Equipment , Machinery-heavy and light.
➢ e TECHNOLOGY GROUP@IMRB INTERNATIONAL :
"It took 50 years for the world to have 50 million telephones and only 5
years for Internet to
reach 50 million users."
The various products and services researched under the eTechnology
group@IMRB International are:
Telecom
➢ Basic telephone services
➢ Cellular Phones
➢ Cable T.V. services
➢ Calling card services
➢ Call collect services
➢ Cordless telephones
➢ Electronic push button telephones
➢ E-mailing & value-added services
➢ EPABX
➢ Facsimile machines
➢ FM-RDS Pagers
➢ Internet
➢ Leased lines
➢ One-number services
➢ Radio Paging services
➢ Radio Trunked services
➢ Toll free services
➢ Transceivers/Two-way radios
➢ Videotext services
➢ Video conferencing
➢ Voicemail
➢ Virtual telephone networks
➢ VSATs - TDMA/DAMA and Bandwidth on Demand applications
➢ WAP devices & services
IT/ Internet
➢ PC
➢ Servers
➢ Networking devices
➢ Peripherals
➢ UPS
➢ Packaged software
➢ Application software development
➢ ISPs
➢ B2B services (Steel, Plastics etc.)
➢ B2C services
➢ Ecommerce sites
➢ Backbone bandwidth requirement
CHAPTER ONE
INTRODUCTION

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 expected to reach 250 million in 2007.
According to Broadband Policy 2004, Government of India aims at 9 million
broadband 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,
covering 2000 towns across the country.
Evolution of the industry-Important Milestones

Year

1851 First operational land lines were laid by the government near Calcutta
(seat

of British power)

1881 Telephone service introduced in India

1883 Merger with the postal system

1923 Formation of Indian Radio Telegraph Company (IRT)

1932 Merger of ETC and IRT into the Indian Radio and Cable
Communication

Company (IRCC)
 1947 Nationalization of all foreign telecommunication companies to form
the

Posts, Telephone and Telegraph (PTT), a monopoly run by the

government's Ministry of Communications

1985 Department of Telecommunications (DOT) established, an exclusive

provider of domestic and long-distance service that would be its own

regulator (separate from the postal system)

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.

1997 Telecom Regulatory Authority of India created.

1999 Cellular Services are launched in India. New National Telecom Policy
is

adopted.

2000 DoT becomes a corporation, BSNL

A large population, low telephony penetration levels, and a rise in consumers' income
and spending owing to strong economic growth have helped make India the fastest-
growing telecom market in the world. The first and largest operator is the state-owned
incumbent BSNL, which is also the 7th largest telecom company in the world in terms
of its number of subscribers. BSNL was created by corporatization of the erstwhile
DTS (Department of Telecommunication Services), a government unit responsible for
provision of telephony services. Subsequently, after the telecommunication policies
were revised to allow private operators, companies such as Bharti Telecom, TATA
Indicom, Vodafone, MTNL, Idea,Vodafone and BPL have entered the space. major
operators in India. However, rural India still lacks strong infrastructure.

In 2007, an article by Businessweek magazine reported that India's mobile phone

market is the fastest growing in the world, with companies adding some 6 million new
customers a month.

The total number of telephones in the country crossed the 300 million mark on June
18 2008The overall tele-density has increased to 36.98% in March 2009 In the
wireless segment, 15.87 million subscribers have been added in March 2009. The total
wireless subscribers (GSM, CDMA & WLL (F)) base is more than 391.76 million
now. The wireline segment subscriber base stood at 38.22 million with a decline of
0.13 million in October 2008.

Market shares of public and Private Players

Both fixed line and mobile segments serve the basic needs of local calls, long distance
calls and the international calls, with the provision of broadband services in the fixed
line segment and

GPRS in the mobile arena. Traditional telephones have been replaced by the codeless
and the wireless instruments. Mobile phone providers have also come up with GPRS-
enabled multimedia messaging, Internet surfing, and mobile-commerce. The much-
awaited 3G mobile technology is soon going to enter the Indian telecom market. The
GSM, CDMA, WLL service providers are all upgrading them to provide 3G mobile
services.

Along with improvement in telecom services, there is also an improvement in

manufacturing. In the beginning, there were only the Siemens handsets in India but
now a whole series of new handsets, such as Nokia's latest N-series, Sony Ericsson's
W-series, Motorola's PDA phones, etc. have come up. Touch screen and advanced
technological handsets are gaining popularity. Radio services have also been
incorporated in the mobile handsets, along with other applications like high storage
memory, multimedia applications, multimedia games, MP3 Players, video generators,
Camera's, etc. The value added services provided by the mobile service operators
contribute more than 10% of the total revenue.

Global telecom sector

Earnings visibility

Earnings growth is being driven by improving pricing conditions, stabilizing operating

trends, aggressive cost cutting initiatives, a positive regulatory environment, strong
wireless growth, and new market opportunities. This has translated into greater
visibility of forward earnings as evidenced by recent increased analyst upgrades
within the sector.

Merger synergies

Given the substantial amount of excess capital available in the sector and in private
equity we expect to see additional merger and acquisition activity, albeit at a slower
pace than recently witnessed. Global telecom M&A deals over the past two years have
reflected market expansion but have also had a positive effect on the buyers’ balance
sheets. Partnering companies have begun realizing their synergies through cost
reductions and economies of scale. In the US, the largest three companies now
account for over 70% of the sector market cap; this compares to 34% in 1990. Trends
in bundled services are also paving the way for additional M&A activity. Sector
consolidation will further increase the importance of stock selection.

Growth

While cost-cutting has been a major source of earnings growth, we have seen top-line
pressures decreasing which will help revenues become a larger driver of earnings
growth again. We see growth within the sector coming from a number of areas
including: broadband, 3G (third generation) technology, expansion in emerging
markets. Broadband penetration has been accelerating as internet customers are
seeking faster downloads for audio and video files. 3G services, which facilitate the
simultaneous transfer of both voice and non-voice (i.e. video, downloads, SMS, etc.)
data are providing mobile users with a much more robust communication platform and
should finally begin to realize their growth potential in 2007. Emerging market
companies benefit from low penetration rates and also tend to have lower leverage,
higher margins and higher growth than most developed markets telecom companies.

Global opportunities

It has become less difficult to find attractive telecom investment opportunities

globally than it was a year ago. As the fog has lifted from the sector, there are
increased opportunities within both the growth and value spaces. In the US, improved
clarity in the regulatory environment has opened the door for a number of players.
Within Europe the risk of negative news flow remains a potential detractor but there is
valuation support from attractively priced stocks. There is little difference between the
European and US integrated carriers making it more of a stock call than a regional
call. Within Asia we see high revenue growth and return on assets. Overall, emerging
markets continue to be the fastest growing region within the sector and offer the
largest valuation discount. Additionally, the healthy macro environment in emerging
markets coupled with increasing domestic wealth is creating a positive consumer
environment in the local markets.

Fortis Investments: Telecom sector strategy

Our strategy is to create a more focused portfolio of diversified high conviction ideas.
In the current environment we continue to be sensitive to relative valuations and
positive earnings momentum. Our portfolio is largely levered to growth. We have
positioned ourselves in companies that will provide synergies as well as margin
expansion through wireless exposure. We recognize the sensitivity of the regulatory
environment in some markets and have minimized our exposure to those markets. We
also continue to overweight our exposure toniche players within developed markets as
well as to emerging markets which have low penetration rates and more growth
opportunities.

Definition of Cellular/Mobile phone

www.wikipedia defines cellular phone as:
The Cellular telephone (commonly "mobile phone" or "cell phone" or
"handphone") is a long-range,portable electronic device used for mobile
communication. In addition to the standard voice functionof a telephone,
current mobile phones can support many additional services such as SMS
for textmessaging, email, packet switching for access to the Internet, and
MMS for sending and receivingphotos and video. Most current mobile phones
connect to a cellular network of base stations (cellsites), which is in turn
interconnected to the public switched telephone network (PSTN) (the exception
is satellite phones. Cellular telephone is also defined as a type of short-wave
analog or digitaltelecommunication in which asubscriberhasawirelessconnection
from a mobile telephone to arelatively nearby transmitter. The transmitter's span
of coverage is called a cell. Generally, cellulartelephone service is available in
urban areas and along major highways. As the cellular telephone usermoves
from one cell or area of coverage to another, the telephone is effectively passed
on to the localcell transmitter. A cellular telephone is not to be confused with a
cordless telephone (which is simply aphone with a very short wireless
connection to a local phone outlet). A newer service similar tocellular is
personal communications services (PCS).
The Global Cellular Mobile Industry:
The global mobile phone industry is based on many different manufacturers and
operators. The industry is based on advanced technology and many of the
manufacturers are operating in differentindustries, where they use their
technological skills, distribution network, market knowledge and brand
name. Four large manufacturers of mobile phones are today dominating the
global mobile phoneindustry&networks; Nokia, Sony Ericson, Samsung and
Motorola . Airtel,Bsnl,tataindicom,Vodafone,relaiance,others.In addition to
these companies there are manymanufacturers that operate globally and locally.
Telecom Industry in India
 The telecom industry is one of the fastest growing industries in India. India
has nearly200 million telephone lines making it the third largest network in the
world after China
and USA.
 With a growth rate of 45%, Indian telecom industry has the highest growth
rate in the8world.
 Much of the growth in Asia Pacific Wireless Telecommunication Market is
spurred bythe growth in demand in countries like India and China.
 India‘s mobile phone subscriber base is growing at a rate of 82.2%.
 China is the biggest market in Asia Pacific with a subscriber base of 48% of
thetotal subscribers in Asia Pacific.
 Compared to that India’s share in Asia Pacific Mobile Phone market is 6.4%.
Considering the fact that India and China have almost comparable populations,
India’slow mobile penetration offers huge scope for growth.

History of Indian Telecommunications

Started in 1851 when the first operational land lines were laid by the
government near Calcutta (seat ofBritish power). Telephone services were
introduced in India in 1881. In 1883 telephone services weremerged with the
postal system. Indian Radio Telegraph Company (IRT) was formed in 1923.
Afterindependence in 1947, all the foreign telecommunication companies were
nationalized to form thePosts, Telephone and Telegraph (PTT), a monopoly run
by the government's Ministry ofCommunications. Telecom sector was
considered as a strategic service and the government consideredit best to bring
under state's control.The first wind of reforms in telecommunications sector
began to flow in 1980s when the private sectorwas allowed in
telecommunications equipment manufacturing. In 1985, Department of
Telecommunications (DOT) was established. It was an exclusive provider of
domestic and longdistanceservice that would be its own regulator (separate from
the postal system). In 1986, two whollygovernment-owned companies were
created: the Videsh Sanchar Nigam Limited (VSNL) forinternational
telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for
service inmetropolitan areas. In 1990s, telecommunications sector benefited
from the general opening up of theeconomy. Also, examples of telecom
revolution in many other countries, which resulted in better
quality of service and lower tariffs, led Indian policy makers to initiate a change
process finallyresulting in opening up of telecom services sector for the private
sector. National Telecom Policy(NTP) 1994 was the first attempt to give a
comprehensive roadmap for the Indian telecommunications
sector. In 1997, Telecom Regulatory Authority of India (TRAI) was created.
TRAI was formed to actas a regulator to facilitate the growth of the telecom
sector. New National Telecom Policy was adoptedin 1999 and cellular services
were also launched in the same year. Telecommunication sector in Indiacan be
divided into two segments: Fixed Service Provider (FSPs), and Cellular
Services. Fixed lineservices consist of basic services, national or domestic long
distance and international long distanceservices. The state operators (BSNL and
MTNL), account for almost 90 per cent of revenues from basicservices. Private
sector services are presently available in selective urban areas, and collectively
account for less than 5 per cent of subscriptions. However, private services
focus on thebusiness/corporate sector, and offer reliable, high- end services,
such as leased lines, ISDN, closed usergroup and videoconferencing. Cellular
services can be further divided into two categories: GlobalSystem for Mobile
Communications (GSM) and Code Division Multiple Access (CDMA). The
GSMsector is dominated by Airtel, Vodfone-Essar, and Idea Cellular, while the
CDMA sector is dominatedby Reliance and Tata Indicom. Opening up of
international and domestic long distance telephonyservices are the major growth
drivers for cellular industry. Cellular operators get substantial revenuefrom
these services, and compensate them for reduction in tariffs on airtime, which
along with rental was the main source of revenue. The reduction in tariffs for
airtime, national long distance,international long distance, and handset prices
has driven demand.

Classification of Telecommunication services

1. Basic services
2. Cellular services
3. Internet Service Provider (ISP)
Research Objective :
Objective of this project is “customer satisifaction on mobile
networks& buying mobile and servicesby different users.” This
project is done in order to analyze all the factors affecting the
customer’sdecision made before and after the purchase of
mobile phone service provider.Mobile phones are incomplete
product. An Incomplete product is a product that needs
furtherinvestment by customer in order to get the utility of a
product. For example automobile they requirepetrol, VCD
players need video CD to give its core benefit to customers
without these add on anincomplete products is of no use to
user .Can we imagine an automobile without petrol? No it is
noteven giving its core benefit, which is transportations, to its
user and therefore mobile is also an
incomplete product because without service provider it is of no
use. Therefore a complete buyingbehavior cannot be studied by
considering both aspects separately. A complete picture of
factorsaffecting buying decision can emerge only when pre and
post decision of buying mobile set is taken
under considerationThe underlying problem in predicting
customer choice resides much more in the fact that
purchasingdecisions are made on the basis of many different
criteria simultaneously, including brand, quality,performance,
price, features, and so on. This problem is further confounded
in service applications,where customers may consider
intangible features and characteristics of the market offerings
for e.g.,service quality, safety, and trust; interactions between
service providers and customers.Thus,incorporating customer
preferences and choices into day-to-day managerial decisions
is extremelyimportant for today’s highly competitive
environment, because their customers evaluate them onmore
than one criterion. In such a scenario, it is worthwhile to find
out the satisifaction mobile phone and service purchase
decision of various user groups.
Research Flow process

Introduction
⇓
Literature review
⇓
Research design
⇓
methodology
⇓
Research result and
Analysis
⇓
Discussion
⇓
Conclusion

LIMITATIONS OF THE STUDY

• The internet information can be irrelevant.

• Time will be a major constraint.
• Financial constraints
• The respondent may be biased
CHAPTER TWO
MAIN TEXTLITERATURE
REVIEW
3.1 LITERATURE REVIEW

2.1 Customer Satisfaction

The buyer’s satisfaction after purchases depends on the offers performance in

relation to the buyer’s expectations. According to Philip Kotler, “satisfaction is a person’s
feelings of pressure or disappointment resulting from product’s perceived performance
(outcome) in relation to his or her expectations. Customer satisfaction is the level of a
person’s felt state resulting from comparing a product’s perceived performance
(outcome) in relation to the person’s expectations”.1 This satisfaction level is a function of
difference between perceived performance and expectations. If the product’s performance,
exceed expectation the customer highly satisfied or delighted. If the performance matches the
expectations the customer is satisfied. If the products performance fall shorts of expectations
the customer is dissatisfied.

Many companies are aiming for high satisfaction because customers who are
just satisfied still find it easy to switch when a better offer comes along. High satisfaction or
delight creates an emotional affinity with brand.

1
Kotler Philip, “Marketing Management”, 2003. Eleventh Edition, Pearson Education (Singapore) Pte ltd, pp-
61.62
 Variety of factors that affect customer satisfaction includes product quality,
product availability and after sales support such as warranties and services. Customer
satisfaction is seen as a proof of delivering a quality product or service. It is believed that
customer satisfaction brings sales growth, and market share. A company can always increase
customer satisfaction by lowering its price or increasing its services but this may result in
lower profits. Thus the purpose of marketing is to generate customer value profitability.

India is on the threshold of a new millennium. India chose for global economy,
exposing her to winds of change in the market place, which has expanded vastly and become
fiercely competitive. In the changed environment, decision makers view the marketing
concept as the key to success. Marketing in practice has to manage products, pricing,
promotion and distribution.

A successful product can be developed by exploding these opportunities. While

delivering the value of the consumer we make use of marketing support. This support is
based on the knowledge of consumers and distribution. Marketing support both at the
introduction of products and maturing is considered

Marketing, as suggested by the American Marketing Association is "an organizational

function and a set of processes for creating, communicating and delivering value to customers
and for managing customer relationships in ways that benefit the organization and its
stakeholders".

The two major factors of marketing are the recruitment of new customers
(acquisition) and the retention and expansion of relationships with existing customers (base
management). Marketing methods are informed by many of the social, particularly
psychology, sociology, and economics. Anthropology is also a small, but growing, influence.
Market research underpins these activities. Through advertising, it is also related to many of
the creative arts.

For a marketing plan to be successful, the mix of the four "Ps"2 i.e. product, price,
place, promotion must reflect the wants and desires of the consumers in the target market.
Trying to convince a market segment to buy something they don't want is extremely

2
Earlier Project Report, “A study on viewers Perception with special reference to Indiavision satellite
communication ltd, Calicut “ 2007
expensive and seldom successful. Marketers depend on marketing research, both formal and
informal, to determine what consumers want and what they are willing to pay for. Marketers
hope that this process will give them a sustainable competitive advantage. Marketing
management is the practical application of this process. The offer is also an important
addition to the 4P's theory.

2.2 Skills of Marketers

Marketers have 4 main skill sets that they bring to an enterprise:

2.2.1 Opportunity Identification

True marketing begins before there is a product to sell. Many people think marketing
is just selling whatever comes out of the manufacturing plant. It's the job of marketing to
decide WHAT comes out of the manufacturing plant in the first place. Before a business can
make money there must be opportunities for money to be made and it's marketing's job to
define what those opportunities are. Marketers analyze markets, market gaps, trends,
products, competition, and distribution channels to come up with opportunities to make
money.

2.2.2 Competitive strategy/positioning

Markets consist of groups of competitors competing for a customer's business. The

job of marketing is to decide how to create a defensible sustainable competitive advantage
against competitors. Marketers conceive strategies, tactics, and business models to make it
hard if not impossible for competition to take away customers from their business.

2.2.3 Demand generation/management

It's the job of marketing to create and sustain demand for a company's products.
Marketers manage demand for a company's products by influencing the probability and
frequency of their customer's purchase behavior.

2.2.4 Sales

The ultimate goal of marketing is to make money for a business. In most company’s
sales is a different discipline and department from marketing. But in order for salespeople to
have any long term success in a company they must be led by marketing. The better job a
company does of identifying opportunities, creating a differential sustainable competitive
advantage, and generating demand for their products the easier it will be for salespeople to
make sales.

2.3 Method to measure customer satisfaction.

Companies use the following methods to measure customer

satisfaction.

2.3.1 Complaints and suggestion system

2.3.2 Customer satisfaction surveys

Responsive companies obtain a direct measure of customer satisfaction by periodic

surveys. They send questionnaires to random sample of their customers to find out how they
feel about various aspects of the company’s performance and also solicit views on their
competitor’s performance. It is useful to measure the customer’s willingness to recommend
the company and brand to other persons.

2.3.3 Lost Customer Analysis.

Companies should contact customers who have stopped buying or who have
switched to another supplier to learn why this happened.

2.3.4 Consumer Behavior Vs Consumption Behavior

Consumer behavior refers to the manner in which an individual reaches decision

related to the selection, purchases and use of goods and services. Walters and Paul says that,
consumer behavior is the process where by the individuals decides what, when, how and from
whom to purchase goods & services.

Consumer behavior relates to an individual person (Micro behavior) where as

consumption behavior relates to and to the mass or aggregate of individuals (Macro behavior)
consumers behavior as a study focuses on the decision process of the individual consumer or
consuming unit such as the family.
 In contrast the consumption behavior as a study is to do with the explanation of the
behavior of the aggregate of consumers or the consuming unit. Consumer is a pivot, around
which the entire system of marketing revolves. The study of buyer behavior is one of the
most important keys to successful marketing.

2.4 Factors Influencing the Buyer Behavior

Consumer purchase is influenced strongly by cultural, social, personal and

psychological characteristics as shown in the figure below.

Factors Influencing Buying Process

 (FIGURE 2.1)

OPERATIONAL DEFINITON

There are two key players involved in any purchase/buying or subscribing process.
They are people and the competitive products. Within the scope of our work they can be
classified as television viewers and competing TV channels like Manorama, Asianet and
Kairali. The above figure lists out the main factors that influence the viewers to subscribe
(purchase decision) to a particular TV channel. They are socio-cultural, economic/ business
interests and family backgrounds etc. Let it be news, food or fashion, people from different
regions has diverse idea about this. Even people from the same region may have different
tastes based on their economic status and family traditions. Apart from these influences that
every buyer has, there are certain other elements that decide the final purchase decision. They
are ‘real need’ for the commodity, ‘proper motivation’ to purchase, ‘attitude, learning style
and perception’ of the individual. In short the central process of subscribing to a news
channel by an individual is decided by various external influence factors shown figure plus
intrinsic personal traits of the individual.

What is Customer Satisfaction?

Customer satisfaction or dissatisfaction is the feeling derived by the
consumer when
he compares the product’s actual performance with the performance that
he expects
out of it. Customers make their expectations from the service quality,
service
delivery, communications, past experiences and references. These all are
to be
judged correctly by the management so that their perceptions match with
customer
expectations. If any of these factors are wrongly interpreted then the
expected level
of customer satisfaction cannot be reached.
Customer satisfaction is a combination of six terms:

1) Customer Grievances
2) Customer Focus
3) Customer Property
4) Customer Feedback
5) Timely Supply
6) Special Requirement of
Customer

2.1) OBJECTIVES
➢ To assess the needs, requirements and expectations of the customers
in order to
assess their current satisfaction levels.
➢ Gauge the drivers behind their choice of products.
➢ Learn to complete time bound multi-disciplinary and goal-oriented
assignment
involving team work.
➢ Learn to deal with insufficient data parameters and uncertain
situations.
➢ To know the attitude, enthusiasm regarding the service provided to
customers.
➢ To understand the performance of different brands in the market on
various
parameters like product quality, performance of the customer relationship
officer
(CRO), service quality, range and selection of products available.
➢ To know and understand the performance of the competitors brand in
the market
on various parameters like product quality, service quality, performance
of the
CRO, availability of the product in the market.
➢ Benchmark performance with competition.
➢ Track change in performance from last year.
➢ Understand the levels of satisfaction of various customers.
➢ Understand the levels of satisfaction among Employees of the different
brand
outlets.
➢ To analyze the survey data and to draw a suitable model for improving
the future
performance.
➢ To analyze the key important factor that influences the buying behavior
of a
customer.
➢ To analyze the effect of advertisement, promotional campaign,
discount scheme
and various other offers on the customers buying behavior.
➢ To analyze and draw the correct picture of a particular brand
performance in the
market in comparison with its competitors.
➢ To conclude the research study with reliable and authenticated data.

1) Brand selection

The research study tiltled “factors affecting the brand decision in the
mobile service provider industry” in Asia by Liu 2002.This study
found that the choice of a cellular phone is characterized by two
attitudes to brands : attitude towards the mobile phone brand on
one hand and attitude towards the network on the other. While price
and regularity of service were found to dominate choice between
network providers, choices between mobile phone brands were
affected by new technology features such as memory capacity and
SMS – options, more than size. The brand will actually be not
towards smaller phones but towards phones with better capability
and larger screen.
2) Consumer satisfaction

This study is conducted by TRAI. It assesses the satisfaction level of

consumers encompassing quality of technical service, quality and
operational aspects of gadgets and social /psychological costs due
to unsolicited promotional calls /SMS. The analysis in this report
shows that the consumption behavior of the mobile phone users in
hyderabad and covers the aspects like usage pattern of the mobile
phone services, assessment of the level of satisfaction, preference
for various attributes and functionalities of gadgets .
3) Consumer behavior

The titled named “consumer buying behavior” by Martin Tina; Sam

Manaberi [2005] discussed the industrial purchasing stands for more
than half of the whole economic activity in industrialized countries.
Therefore it is important to understand how industries perform
buying activities. The telecommunication industry is a fast growing
industry and therefore interesting to investigate. The purpose of this
study was to investigate the characteristics of industrial buying
behaviour in the telecommunication industry. The purpose has been
further developed in forms of research questions dealing with the
buying process, buying center and choice criteria. A case study was
made with a customer, to the telecom supplier Ericsson, from the
company HI3G Access, also known as 3. A highly topical company in
the third generation telecom networks with Ericsson as one of their
primary suppliers. The conducted telephone interview indicates a
swift buying process, influenced by word of mouth. Additional
findings involve a small buying center, which is mainly controlled by
the technical and procurement staff and the importance of price as
a selection criteria as the product is becoming a commodity.
4) Consumer behavior

The article named “consumer buying behavior in mobile phone

market in Finland” by EMAC conference, Track : New Technologies
and E – Marketing. The survey conducted with 397 consumers and
looked at their motives to purchase new mobile phones on one hand
and factors affecting operator choice on the other. The results
indicate that while price and properties were the most influencial
factors affecting the purchase of a new mobile phone, price,
audibility and friends operator were regarded as the most important
in the choice of the mobile phone operator. This paper concludes
with a discussion of contributions and purposes ideas for future
studies in this under researched area.
5) Customer buying behavior

The project study titled “customer buying behavior of mobile phone

brands” by Riquelme (2001. She conducted an experiment with 94
consumers to identify the amount of self – knowledge consumers
have when choosing between mobile phone brands. The study was
build upon six key attributes like telephone features, connection
fee , access cost , mobile to mobile phone rates call rates and free
calls related to mobile phone purchasing respondents had to
importance rate. The research shows that consumers with prior
experience about a product can predict their choices relatively well
but customers tended to overestimate the importance of features,
call rates, and free call and underestimates the importance of a
monthly access fee, mobile to mobile phones rates and the
connection fee.

6) Consumer perception
The article titled “consumer perception and its choice mobile
telecom service provider in Malaysia,Journal of International
Business and Economics, May, 2007 by Ahasanul Haque, Ali Khatibi,
Abdur Raquib, Shameem Al Mahmud. The study aims to find out
what are critical factors those are playing an important role to select
the telecommunication service provider. Result provides a
comprehensive analysis of the important factors for playing an
important role for the customer to select the telecommunication
service provider. The analysis confirms the significant positive
relationship of price, service quality, product quality and availability,
and promotional offer for consumer perception. These factors are
expected to have a great role during the time to choose
telecommunication service provider. In conclusion, practitioners can
be deriving a better understanding of the activities that are being
played a vital role for the consumer perception.
3.2 THEORETICAL FRAMEWORK

Consumer
An individual who buys products or services for personal use and not
for manufacture or resale. A consumer is someone who can make
the decision whether or not to purchase an item at the store, and
someone who can be influenced by marketing and advertisements
Customer
A person, company, or other entity which buys goods and services
produced by another person, company, or other entity
Customer service
According to Turban et al “customer service is a series of activities
designed to enhance the level of customer satisfaction that is, the
feeling that aproduct or service has met the customer expectation.
The needs, wants and preconceived ideas of a customer about a
product or service. Customer expectation will be influenced by a
customer’s perception of the product or service and can be created
by previous experience, advertising , hearsay, awareness of
competitors and brand image. The level of customer service is also a
factor and a customer might expect to encounter efficiency,
helpfulness, reliability, confidence in the staff and a personal
interest in his / her patronage.

The main objectives of customer services are : -

• Learn to identify and analyze customer needs and problems

• Recognize the most common reasons for customer complaints
• Discover techniques to cultivate and maintain special customer
relationships
• Assess your communication style and use two – way
communication skills to level with people, to accept feedback
from them, and to discuss problems
• Identify specific problems in your customer service program
and apply treatment.

Customer satisfaction
Customer satisfaction is a measure of how products and services
supplied by the company meet or surpass customer expectation.
Satisfaction is a person’s feelings of pleasure or disappointment
resulting from comparing a product’s perceived performance in
relation to his or her expectation.

• Encourage face to face dealing

• Be friendly and approachable

• Respond to messages promptly and keep your client informed

• Have a clear defined customer service policy

• Attention to detail

• Anticipate your client’s needs and go out of your way to help them out

• Honour your promises

Kano's model of customer satisfaction distinguishes six categories
of quality attributes, from which the first three actually influence
customer satisfaction:
• Basic Factors. (Dissatisfiers. Must have.) - The minimum
requirements which will cause dissatisfaction if they are not
fulfilled, but do not cause customer satisfaction if they are
fulfilled (or are exceeded). The customer regards these as
prerequisites and takes these for granted. Basic factors
establish a market entry 'threshold'.
• Excitement Factors. (Satisfiers. Attractive.) - The factors that
increase customer satisfaction if delivered but do not cause
dissatisfaction if they are not delivered. These factors surprise
the customer and generate 'delight'. Using these factors, a
company can really distinguish itself from its competitors in a
positive way.
• Performance Factors. The factors that cause satisfaction if
the performance is high, and they cause dissatisfaction if the
performance is low. Here, the attribute performance-overall
satisfaction is linear and symmetric. Typically these factors are
directly connected to customers' explicit needs and desires
and a company should try to be competitive here.
• Indifferent attributes. The customer does not care about
this feature.
• Questionable attributes. It is unclear whether this attribute
is expected by the customer.
• Reverse attributes. The reverse of this product feature was
expected by the customer.

Five facts for improving productivity

• As senior managers, only know about the tip of the iceberg, a small fraction of
all the problems your customers encounter.
• Service can be a major marketing tool
• Customer problems can cost not only an immediate lost sale, but also future
purchases by that customer and by other customers as a result of negative word-of-
mouth behavior.
• We can and must quantify the expected payback from service and/or quality
improvements.
• The market transaction (sale) often is not the key point of customer pain and
lost revenue.

DOING THE JOB RIGHT THE FIRST TIME + EFFECTIVE CUSTOMER

SERVICE = MAXIMUM CUSTOMER SATISFACTION/LOYALTY
Customer oriented organization chart

In this pyramid shows customers will be the top most priority and
next in importance are front line people who meet, serve and satisfy
customers ; under them are the middle managers, whose job is to
support the front – line people so they can serve customers well and
at the base is top management, whose job is to hire and support
good middle managers.
Customer behavior

Customer behavior is to know about the customer’s way to obtain,

use and dispose products. It's important for marketing to know the
customer behavior by using different strategies. There are so many
different ways to influence customers like new products,
promotions, advertisement, good quality and price etc.
Customer behavior analysis is based on consumer buying behaviour,
with the customer playing the three distinct roles of user, payer and
buyer. Relationship marketing is an influential asset for customer
behaviour analysis as it has a keen interest in the re-discovery of
the true meaning of marketing through the re-affirmation of the
importance of the customer or buyer. Customer behaviour analysis
aims to ultimately improve business performance through an
understanding of past and present customers so as to determine
and identify future customers and their behaviour.

Customer-Focused Marketing
 All marketing is done with the customer in mind. Marketing can in fact be referred to
as an on-going conversation occuring between business and customer. It is therefore
necessary for businesses to gain in-depth knowledge of their relative customers so that
the best marketing strategies can be employed in order to attract these potential
buyers. This can effectively be done by performing activities such as customer
behaviors analysis to ensure customer retention. Listed below are a number of tips to
aid businesses striving towards customer retention through marketing efforts:

1. Marketing as a Conversation:Direct interaction with customers is

necessary to essentially find out what it is that they are wanting.
This marketing conversation involves a process running from action
- reaction - feedback - repeat. Businesses need to be willing to take
the time to listen to their customers as this can ensure a business of
putting something up for offer which is of great worth amongst their
targeted consumers, and is relative to their particular needs and
desires. It is required for businesses to constantly perform
marketing promotion so that these customers will come back for
more. Giving satisfaction to first-time buyers can prove effective for
a business in the long-run for the reason that by giving customers
what they desire the first time round, customer retention is
encouraged through this form of customer loyalty.

2. Active Customers:
Making customers feel as though they are in control is an
effective strategy in customer-focused marketing. This is done by
transforming consumers into active customers who are given the
ability to make choices for themselves by actively engaging in
promotions and, hereby, deciding on the best possible products
and services their money can buy. Customer retention is
encouraged through this interaction with customers which aids in
customer loyalty. Businesses need to make each and every one
of their customers feel good about themselves by giving
themsomething to do. Therefore, retaining customers means
keeping them happy by keeping them active.

3. Determining Future Customer Behaviour:This is most

effectively done through an analysis of the actual behaviour of
past and present customers. Actual behaviour needs to be
differentiated from demographic behaviours (which are implied
consumer characteristics). Actual behaviour is, as such, better at
predicting the future which is done by keeping a watch over the
actions customers perform with regard to online purchases and
the products they purchase over the Internet.
5. Allocating Resources for Marketing:

Businesses need to take their budget into consideration when

allocating resources for promotions. It is well-known amongst
businesses that some marketing activities will generate higher
profits than others and data therefore needs to be created by
interacting with customers in order to consequentially identify the
most profitable promotions, which will be delivered to the right
customer at the right time, without wasting time or money. Hereby,
effectivemarketing means avoiding unprofitable promotion which
will as such mean not reaching the right customers and wasting
money.

Customer buying behaviourProcess by which individual search

for select, purchase, use and dispose of goods and services, in
satisfaction of their needs and wants.
Types

 Minor new purchase – these purchases represent something new to a

consumer but in the customer’s mind is not a very important purchase in terms of
need, money or other reason.
 Minor re- purchase – these are the most routine of all purchase and often the
consumer returns to purchase the same product without giving much thought to other
product options.
 Major new purchase – these purchases are the most difficult of all purchase
because the product being purchased is important to the consumer but the consumer
has little or no previous experience making new decisions. The consumer’s lack of
confidence in making this type of decision often requires the consumer to engage in an
extensive decision making process
 Major repurchase – the purchase decision are also important to the consumer

feels confident in making these decisions since they have previous experience

purchasing the product

Stages of the Consumer Buying Process

Six Stages to the Consumer Buying Decision Process .

1. Problem Recognition(awareness of need)--difference

between the desired state and the actual condition were
deficient? I.E., see a commercial for a new pair of shoes,
stimulates your recognition that you need a new pair of shoes.
2. Information search--

o Internal search, memory.

o External search if you need more information. Friends
and relatives (word of mouth). Marketer dominated
sources; comparison shopping; public sources etc.
3. Evaluation of Alternatives--need to establish criteria for
evaluation, features the buyer wants or does not want.
4. Purchase decision--Choose buying alternative, includes
product, package, store, method of purchase etc.
5. Purchase--May differ from decision, time lapse between 4 &

5, product availability.
 6. Post-Purchase Evaluation--outcome: Satisfaction or

Dissatisfaction. Cognitive Dissonance, have you made the

right decision. This can be reduced by warranties, after sales

communication etc.

Buying behavior model

Maslow’s hierarchy of needs

Gaining a better understanding of customers buying behaviour is

based on knowing the following;

• Awareness

• Reasons for buying

• How often do they buy

• Current usage

• Reasons for usage

• What do they buy?

• Where do they like to buy?

• Where do they gather their buying information

• Are they an exclusive customer?

Customer loyalty

The term customer loyalty is used to describe the behavior of repeat

customers, as well as those that offer good ratings, reviews, or
testimonials. Some customers do a particular company a great
service by offering favorable word of mouth publicity regarding a
product, telling friends and family, thus adding them to the number
of loyal customers.

Ten ways to build customer loyalty:

• Communicate: - Whether it is an email newsletter, monthly

flier, a reminder card for a tune up, or a holiday greeting card,
reach out to the customers.
• Customer Service: - Go the extra distance and meet
customer needs. Train the staff to do the same. Customers
remember being treated well.
• Employee Loyalty: - Loyalty works from the top down. If
managers are loyal to the employees, they will feel positively
about their jobs and pass that loyalty along to customers.

Employee Training: - Train the employees and interact with

customers. Empower employees to make decisions that benefit
the customer.
Customer Incentives: - Give customers a reason to return to

business.

• Product Awareness: - Know what y steady patrons purchase

and keep those items in stock.
• Reliability: - If a purchase will arrive on Wednesday, deliver it
on Wednesday. Be reliable. If something goes wrong, let
customers know immediately and compensate them for their
inconvenience.
• Be Flexible: - Try to solve customer problems or complaints

to the best of ability.

• People over Technology: - The harder it is for a customer to

speak to a human being when he or she has a problem, the

less likely it is that you will see that customer again.

• Know Their Names: - Remember the theme song to the

television show Cheers? Get to know the names of regular

customers or at least recognize their faces.

Customer loyalty model

This model is developed by Schelsinger and Heskett (1991). In this

model explains that effort spent in selecting and training employees
and creating a corporate culture in which they are empowered can
lead to increased employee satisfaction and employee competence.
This will likely result in superior service delivery and customer
satisfaction. This in turn will create customer loyalty, improved sales
levels and higher profit margins.

Essentials of customer care

1) Encourage employees to deliver high-quality

customer care.

 Make sure employees have good basic communication skills.

 Train employees in job-specific skills.
 Train all relevant personnel how to answer and deal with telephone calls.
 Make sure employees can handle complaints effectively.
 They should apologise, be sympathetic, listen, establish the facts, agree
what to do and then do it
 2) Think of ways to make life easier for customers.

 Try to save the customer inconvenience.

 Exceed your customers’ expectations.
 Keep customers informed about any problems, and make it easy for them to
contact
 Use your website to give customers the services and information they want.

3) Use appropriate technology.

 A good database system can help you record, organise and plan your contact
with customers.
 Make sure information from your website can be transferred to your main
database.
 Contact management software may be a useful tool if you have a lot of
high-value customer accounts.
 Company will need to explain the advantages of the system to employees,
and provide training and incentives for use.

4) Give customers a personalised service.

 A common way to achieve this is by giving each customer an account manager.

 Personalise all communication.
 Personalise the email addresses of customer-facing employees
 If use computerised telephone systems, give customers the
option of talking to an operator at any time.

Customer retention

Customer Retention is the activity that a selling organization undertakes in

order to reduce customer defections. Successful customer retention starts with
the first contact an organization has with a customer and continues throughout
the entire lifetime of a relationship. A company’s ability to attract and retain
new customers, is not only related to its product or services, but strongly related
to the way it services its existing customers and the reputation it creates within
and across the marketplace.
Customer retention rate: -- The customer retention rate refers to the number
of customers lost over a period of time. It is normally calculated by the
percentage of lost customers versus existing customers over a quarterly or
annual period, without tallying new customer acquisitions

Customer life time value

Customer lifetime value enable an organization to calculate the net present

value of the profit an organization will realize on a customer over a given period
of time. Retention Rate is the percentage of the total number of customers
retained in context to the customers that approached for cancellation.

Customer perception

Perception is the process of selecting, organizing and

interpreting information inputs to produce meaning. IE we
chose what info we pay attention to, organize it and interpret it.
Information inputs are the sensations received through sight,
taste, hearing, smell and touch.
• Selective Exposure-select inputs to be exposed to our
awareness. More likely if it is linked to an event, satisfies
current needs, intensity of input changes (sharp price drop).

• Selective Distortion-Changing/twisting current received

information, inconsistent with beliefs.
• Selective Retention-Remember inputs that support beliefs,
forgets those that don't.
Factors influencing perception

Factors

Factors in the
Factors in the Factors in the
target
perceiver situation
Attitudes Novelty
Motives Motions
Time
Interest Sounds
Work setting
Size
Social setting
Experience

ConsumerBehavior

Definition:
Consumer behavior refers to the mental and emotional process
and the observable behavior of consumers during searching,
purchasing and post consumption of a product or service.
Consumerbehavior involves study of how people buy, what they
buy, when they buy and why they buy.

It blends the elements from

psychology, sociology, socio-psychology, anthropology and
economics. It also tries to assess the influence on the consumer
from groups such as family, friends, reference groups and
society in general. Buyer behavior has two aspects: the final
purchase activity visible to any observer
and the detailed or short decision process that may involve the
interplay of a number of complexvariables not visible to
anyone.

Factors Affecting Consumer Behavior

Consumer buying behavior is influenced by the major three
factors:
1. Social Factors
2. Psychological Factors
3. Personal Factors.

Social Factors
Social factors refer to forces that other people exert and which
affect consumers’ purchase behavior.These social factors can
include culture and subculture, roles and family, social class
and referencegroups.

Example: By taking into consideration Reference group, these

can influence/ affect the consumerbuying behavior. Reference
group refers to a group with whom an individual identifies
herself/ himselfand the extent to which that person assumes
many values, attitudes or behavior of group
members.Reference groups can be family, school or college,
work group, club membership; citizenship etc

Reference groups serve as one

of the primary agents of consumer socialization and learning
and can beinfluential enough to induce not only socially
acceptable consumer behavior but also sociallyunacceptable
and even personal destructive behavior.
For example,

if fresher student joins a college /university, he/she will meet

different people and form a group, in that group there can be
behaviorpatterns of values, for example style of clothing,
handsets which most of group member prefer or
evendestructive behavior such as excessive consumption of
alcohol, use of harmful and addictive drugs etc.
So, according to how an individual references him / herself to
that particular reference group, this willinfluence and change
his/her buying behavior.
Psychological Factors

These are internal to an individual and generate forces within

that influence her/his purchase behavior.The major forces
include motives, perception, learning, attitude and personality.
Example: Attitude is an enduring organization of motivational,
emotional, perceptual and cognitiveprocesses with respect to
some aspect of our environment. Consumers form attitude
towards a brandon the basis of their beliefs about the brand.
Forexample,

consumers of Sony products might have theb elief that the

products offered by Sony are durable; this will influence those
customers to buy Sony
products due to this attitude towards the brand.
Personal Factors
These include those aspects that are unique to a person and
influence purchase behavior. These factors
include demographic factors, lifestyle, and situational factors.
Example: Lifestyle is an indicator of how people live and
express themselves on the basis of their
activities, interests, and opinions. Lifestyle dimension provide a
broader view of people about how
they spend their time the importance of things in their
surroundings and their beliefs on broad issues
associated with life and living and themselves. This is
influenced by demographic factors and
personality. e.g. A CEO or Manager is likely to buy more formal
clothes, ties and shoes or PDAs and
less informal clothes like jeans as compared to a Mechanic or
Civil engineer. So according to their
lifestyle and profession, the buying behavior of people differs
from one another.
RESEARCH METHODOLOGY AND
ANALYSIS INTERPRETATION
This are the frequencies of age groups

Cumulati
Freque Percen Valid ve
ncy t Percent Percent
Vali 1 49 49.0 49.0 49.0
d 2 25 25.0 25.0 74.0
3 26 26.0 26.0 100.0
Tot
100 100.0 100.0
al
Conclusion:In this age groups the major age quota is towards is15-25

Age

50

40

30
Frequency

20

10

0
1 2 3
Age
 G ender

100

80

60
Frequency

40

20

0
1 2
G ender

In this 85 members are male towards the

gender quota& 15 are only females are
contributing towards this gender group
Crosstabs

AGE VS SATISIFACTION

satisfaction
Bar Chart
1
2
3
4
25

20

15
Count

10

0
1 2 3
Age

The above graph shows the major satisfaction towards is 1 age group people
its between 15 to 25.so according to my view the companies should focus on
early age groups that is students .companies can get more growth from this
region.
Age * satisfaction Crosstabulation

H0:There is a relation between age and satisifaction.

H1:there is no relation between age and satisifaction

Age * satisfaction Crosstabulation

satisfaction Total
1 2 3 4 1
Age 1 Count 3 12 23 11 49
% within Age 6.1% 24.5% 46.9% 22.4% 100.0%
% within
50.0% 38.7% 52.3% 57.9% 49.0%
satisfaction
2 Count 2 11 8 4 25
% within Age 8.0% 44.0% 32.0% 16.0% 100.0%
% within
33.3% 35.5% 18.2% 21.1% 25.0%
satisfaction
3 Count 1 8 13 4 26
% within Age 3.8% 30.8% 50.0% 15.4% 100.0%
% within
16.7% 25.8% 29.5% 21.1% 26.0%
satisfaction
Total Count 6 31 44 19 100
% within Age 6.0% 31.0% 44.0% 19.0% 100.0%
% within
100.0% 100.0% 100.0% 100.0% 100.0%
satisfaction

Chi-Square Tests

Asymp.
Sig. (2-
Value df sided)
Pearson Chi- 4.133(a
6 .659
Square )
Likelihood
4.119 6 .661
Ratio
Linear-by-
Linear .425 1 .514
Association
N of Valid
100
Cases
a 5 cells (41.7%) have expected count less than 5. The minimum expected
count is 1.50.

Conclusion:H0 is accepted because it is less than significance

level.therefore H1 is rejected.
By this there is arelation between age and satisifaction towards the mobile
service.

Service VS satisfaction

Bar Chart

20 satisfaction
1
2
3
4

15
Count

10

0
airtel bsnl idea reliance tata vodafone others
indicom
1 Service

Conclusion :The above graphs shows that customers

satisifaction towards airtel because the service provider quality
network to the customers………
H0:There is a relation between service and satisifaction.
H1:there is no relation between service and satisifaction

1 Service * satisfaction Crosstabulation

satisfaction Total
1 2 3 4 1
1 airtel Count 3 17 19 5 44
Servi % within 1
6.8% 38.6% 43.2% 11.4% 100.0%
ce Service
% within
50.0% 54.8% 43.2% 26.3% 44.0%
satisfaction
bsnl Count 1 2 6 4 13
% within 1
7.7% 15.4% 46.2% 30.8% 100.0%
Service
% within
16.7% 6.5% 13.6% 21.1% 13.0%
satisfaction
idea Count 0 7 11 5 23
% within 1
.0% 30.4% 47.8% 21.7% 100.0%
Service
% within
.0% 22.6% 25.0% 26.3% 23.0%
satisfaction
reliance Count 0 3 0 1 4
% within 1
.0% 75.0% .0% 25.0% 100.0%
Service
% within
.0% 9.7% .0% 5.3% 4.0%
satisfaction
tata Count 0 0 3 0 3
indicom % within 1
.0% .0% 100.0% .0% 100.0%
Service
% within
.0% .0% 6.8% .0% 3.0%
satisfaction
vodafone Count 2 2 5 3 12
% within 1
16.7% 16.7% 41.7% 25.0% 100.0%
Service
% within
33.3% 6.5% 11.4% 15.8% 12.0%
satisfaction
others Count 0 0 0 1 1
% within 1 .0% .0% .0% 100.0% 100.0%
 Service
% within
.0% .0% .0% 5.3% 1.0%
satisfaction
Total Count 6 31 44 19 100
% within 1
6.0% 31.0% 44.0% 19.0% 100.0%
Service
% within
100.0% 100.0% 100.0% 100.0% 100.0%
satisfaction
Conclusion: In this satisfaction is towards airtel it contributes 44
customers towards this particular network

Chi-Square Tests

Asymp.
Sig. (2-
Value df sided)
Pearson Chi- 24.461(
12 .018
Square a)
Likelihood
25.351 12 .013
Ratio
Linear-by-
Linear .154 1 .695
Association
N of Valid
100
Cases
a 13 cells (61.9%) have expected count less than 5. The minimum expected
count is .25.

conclusion: H0 is accepted because it is less than significance

level.therefore H1 is rejected.
By this there is arelation between service and satisifaction towards the mobile
service.
 Age * 1 Service Crosstabulation

Bar Chart

25 1 Service
airtel
bsnl
idea
reliance
20 tata indicom
vodafone
others

15
Count

10

0
1 2 3
Age
__

Conclusion:In this age group major service is towards airtel and minor
service towards is other networks.
• 1 age group has major contribution is airtel and ideaminor is bsnl
• 2nd age group has major contribution is airtel and bsnl minor is
vodafone
• 3rd age group has major contribution is airtel and idea minor is relaince.
Service vs brand

Bar Chart

20 1 Service
airtel
bsnl
idea
reliance
tata indicom
15 vodafone
others
Count

10

0
1 2 3 4 5 6
Education
_
_

Education vs service
 Bar Chart

20 satisfaction
1
2
3
4

15
Count

10

0
1 2 3 4 5 6
Education
_
_

Education vs satisifaction

Education * satisfaction Crosstabulation

satisfaction Total
1 2 3 4 1
Educati 1 Count 0 1 1 0 2
on % within
.0% 50.0% 50.0% .0% 100.0%
Education
% within
.0% 3.2% 2.3% .0% 2.0%
satisfaction
2 Count 0 1 0 0 1
% within
.0% 100.0% .0% .0% 100.0%
Education
% within
.0% 3.2% .0% .0% 1.0%
satisfaction
3 Count 0 6 7 4 17
% within
.0% 35.3% 41.2% 23.5% 100.0%
Education
% within .0% 19.4% 15.9% 21.1% 17.0%
 satisfaction
4 Count 3 3 5 2 13
% within
23.1% 23.1% 38.5% 15.4% 100.0%
Education
% within
50.0% 9.7% 11.4% 10.5% 13.0%
satisfaction
5 Count 1 13 20 8 42
% within
2.4% 31.0% 47.6% 19.0% 100.0%
Education
% within
16.7% 41.9% 45.5% 42.1% 42.0%
satisfaction
6 Count 2 7 11 5 25
% within
8.0% 28.0% 44.0% 20.0% 100.0%
Education
% within
33.3% 22.6% 25.0% 26.3% 25.0%
satisfaction
Total Count 6 31 44 19 100
% within
6.0% 31.0% 44.0% 19.0% 100.0%
Education
% within
100.0% 100.0% 100.0% 100.0% 100.0%
satisfaction

Chi-Square Tests

Asymp.
Sig. (2-
Value df sided)
Pearson Chi- 12.367(
15 .651
Square a)
Likelihood
11.567 15 .711
Ratio
Linear-by-
Linear .177 1 .674
Association
N of Valid
100
Cases
a 16 cells (66.7%) have expected count less than 5. The minimum expected
count is .06.