Beruflich Dokumente
Kultur Dokumente
RESEARCH PROJECT
ON
CONSUMER BEHAVIOUR REGARDING
TELECOM SERVICE PROVIDERS IN INDIA
UNDER GUIDANCE
SUBMITTED BY
Mrs. Priya Arora
Varun Raina
(Senior Lecturer) Roll
No. 94982265422
BBA (4th
SEM)
PREFACE
Executive financing is critical to success of every organization
whether small or large. BBA students of PUNJAB TECHNICAL
UNIVERSITY are required to undergo a research project practical
training as an integral part of the curriculum. The objective is to
develop ability to apply multidisciplinary concepts, tools and
techniques to solve organizational problems.
ACKNOWLEDGEMENTS
At last, I would express my sincere gratitude to all the persons who have provided
valuable assistance for the completion of this research work.
DECLARATION
DATE:
PLACE:
VARUN RAINA
CERTIFICATE
CONTENTS
OBJECTIVES 1
1 INTRODUCTION 3-14
3 REVIEW OF LITERTURE 29
BIBLIOGRAPHY 51
52-55
ANNEXURE
CHAPTER-1
INTRODUCTION
CONSUMER PREFERENCE
In microeconomics, preference of consumers and other entities are modeled
with preference relations. Completeness is more philosophically
questionable. However, preference can be interpreted as a hypothetical
choice that could be made rather than a conscious state of mind. In this
case, completeness amounts to an assumption that the consumer can
always make up their mind whether they are indifferent or prefer one option
when presented with any pair of options.
Consumer preferences
The underlying foundation of demand, therefore, is a model of how
consumers behave. The individual consumer has a set of preferences and
values whose determinations are outside the realm of economics. They are
no doubt dependent upon culture, education, and individual tastes, among a
plethora of other factors. The measure of these values in this model for a
particular good is in terms of the real opportunity cost to the consumer who
purchases and consumes the good. If an individual purchases a particular
good, then the opportunity cost of that purchase is the forgone goods the
consumer could have bought instead.
CUSTOMER SATISFACTION
Sadly, mature companies often forget or forsake the thing that made
them successful in the first place: a customer-centric business model. They
lose focus on the customer and start focusing on the bottom line and
quarterly results. They look for ways to cut costs or increase revenues, often
at the expense of the customer.
INDIAN TELECOMMUNICATION
INDUSTRY
Indian telecom market is currently the most attractive telecom market with a
lot of interest being shown by foreign players. The country was divided into
23 circles when the mobile phones were introduced in the country. Now DOT
recognizes Chennai as part of TN. Separate licenses were given out for each
of the circles in 1994. The circles were classified as Metros, A,
B or C depending upon the revenue potential for the circle with Metros & A
circles expected to have the highest potential. The following table lists the
current wireless penetration by Metro.
Government Initiatives
The Government has taken many proactive initiatives which has provided
a framework for the rapid growth of the telecom industry.
Opening the industry for private sector participation.
100 per cent FDI is permitted in telecom equipment manufacturing
through the automatic route.
Subscribers Jul
Company Presence Share (%)
10 (mn)
Fixed Mobile Fixed Mobile
Government owned. Has
ramped up GSM services.
BSNL 37.4 17.7 74.7% 19.6%
National presence (except
MuBBAi and Delhi)
Government owned. Operates
MTNL 3.8 2.0 7.7% 2.3%
in Delhi and MuBBAi.
Integrated operator, with
Bharti presence in all sectors. Largest1.4 19.6 2.7% 21.7%
mobile services provider.
Integrated operator. Plans
expansion of GSM network
Reliance 3.0 17.3 6.0% 19.2%
apart from being the largest
private CDMA operators.
Pure play GSM operator in 11
15.4 17.0%
Vodafone circles.
Pure play GSM operator in 6
IDEA 7.4 8.2%
circles
Integrated operator (along
Tata with VSNL) with presence in all
4.0 4.9 8.0% 5.4%
Teleservices segments. Provides CDMA
services in 20 circles
Operates in 2 circles.
Announced Plans to expand
Aircel 2.6 2.9%
GSM footprint in North and
North east
Pure play GSM player in 2
Spice 1.9 2.1%
circles
Others 0.4 1.4
Total 50 90
COMPANY
PROFILE
INTRODUCTION
Type:
The Stock Exchange, MuBBAi (BSE) the National Stock Exchange of
India Limited (NSE).
Founded 1985
Industry Telecom
Website www.airtel.in
Brand ABBAssador
Shahrukh Khan, Karina Kapoor, Sachin Tendulkar, A.R.Rahman,
Saifali Khan, Madhvan, Vidhya Balan, Anandi (Avika guar) Balika vadhu.
Shares in Issue:
1,898,373,280 as at June 30, 2009
Company Vision:
By 2012 Airtel will be the most admired brand in India.
Loved by more customers.
Targeted by top talent.
Benchmarked by more businesses.
Key people
Spice: Dilip Modi
Idea: Chairman: Kumar Mangalam Birla ; MD: Sanjeev Aga
Industry Telecom
Products Mobile operator
Slogan
Spice: Spice Hai toh life hai (If there's Spice then there's Life.)
Idea: An! Idea can change your life.
Website
Spice: Spice Telecom;
Idea: www.ideacellular.com
Brand ABBAssador Abhishek Bachan.
BRAND INFORMATION
The brand Idea
Brand Vision: It goes without saying that the brand vision of idea mirrors
the companys vision. The brand mission statement is...... To be the most
customer-focused mobile service brand, continuously innovating to help
liberate our customers from the shackles of time & space.
Promoters
The Aditya Birla Group is India's first truly multinational corporation. Global in
vision, rooted in Indian values, the Group is driven by a performance ethic
pegged on value creation for its multiple stakeholders. Its 66 state-of-the-art
manufacturing units and sectoral services span India, Thailand, Indonesia,
Malaysia, Philippines, Egypt, Canada, Australia and China.
A US$ 6.7 billion conglomerate, with a market capitalization of US$ 7
billion, it is anchored by an extraordinary force of 72,000 employees
belonging to over 20 different nationalities. Over 30 per cent of its revenues
flow from its operations across the world. A premium conglomerate, the
Aditya Birla Group is a dominant player in all of the sectors in which it
operates. Such as viscose staple fibre, non-ferrous metals, cement, viscose
filament yarn, branded apparel, carbon black, chemicals, fertilisers, sponge
iron, insulator sand financial services.
The Group has also made successful forays into the IT and BPO sectors.
Currently around 57 percent of our Equity Shares are held by our
Promoters who are companies belonging to the Aditya Birla Group.
Coverage
Idea Cellular Ltd has seen phenomenal growth since its inception. Idea
Cellular's footprint idea is to first achieve critical mass, then drill deep
instead of spreading thin.
In keeping with this, the company has been providing excellent service to its
subscribers in various states. It controls a portfolio of India's most attractive
and contiguous telecom geographies, including the circles of Andhra
Pradesh & Delhi (inclusive of NCR), Gujarat, Haryana, Himachal
Pradesh, Kerala, Madhya Pradesh & Chattisgarh, Maharashtra &
Goa (excluding MuBBAi), Rajasthan, Uttar Pradesh (W),Uttar Pradesh
(E) . With a footprint dominating the map of India, Idea Cellular accesses
over 60% of India's total telephony potential. The company is now poised to
launch its services in new circles - namely MuBBAi and Bihar.
Idea Cellular Ltd, however, does not believe only in increasing geographic
footprint - it also drills deep and successfully attempts to provide excellent
network coverage in all its circles of operations.
INTRODUCTION
Bharat Sanchar Nigam Limited (known as BSNL) is a public sector
telecommunication Company in India. It is India's largest telecommunication
company with, 24% market share as on March 31, 2008. Its headquarters are
at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath and New
Delhi. It has the status of Mini Ratna, a status assigned to reputed public
sector companies in India.
BSNL is India's oldest and largest Communication Service Provider
(CSP). Currently has a customer base of 90 million as of June 2008. It has
footprints throughout India except for the metropolitan cities of MuBBAi and
New Delhi which are managed by MTNL. As Mon March 31, 2008 BSNL
commanded a customer base of 31.55 million Wire line, 4.58 million
CDMAWLL and 54.21 million GSM Mobile subscribers. BSNL's earnings for the
Financial Year ending March 31, 2007 stood at INR 397.15b (US$ 9.67 b) with
net profit of INR 78.06b (US$ 1.90 billion). BSNL has an estimated market
value of $ 100 Billion. The company is planning an IPO within 6 months to
offload 10% to public in the Rs 300-400 range valuing the company at over
$100 billion.
Founded 19th century, incorporated 2000
Headquarters Bharat Sanchar Bhawan, Harish Chandra Mathur Lane,
Janpath, New Delhi
Key people
Kuldeep Goyal (CMD)
Industry Telecommunications
Products
Wireless
Telephone
Internet
Television
Revenue US$ 9.67 billion (2010)
Owner(s) the Government of India
VISION
MISSION
OBJECTIVES
Contribute towards:
i. National Plan Target of 500 million subscriber base for India by 2010.
ii. Broadband customers base of 20 million in India by 2010 as per
Broadband Policy 2004.
Products Wireless
Telephone
Internet
Television
Revenue US$ 4.26 billion (2009)
Corporate Governance
This ethical standpoint, derived from the vision of our founder, lies at the
heart of the CSR philosophy of the Reliance ADA Group.
We evaluate and assess each critical business decision or choice from the
point of view of diverse stakeholder interest, driven by the need to minimize
risk and to pro-actively address long-term social, economic and
environmental costs and concerns.
For us, being socially responsible is not an occasional act of charity or that
one-time token financial contribution to the local school, hospital or
environmental NGO. It is an ongoing year-round commitment, which is
integrated into the very core of our business objectives and strategy.
Because we believe that there is no contradiction between doing well and
doing right. Indeed, doing right is a necessary condition for doing well.
Website www.vodafone.com
CHAPTER-3
OBJECTIVES OF THE
STUDY
providers.
service providers.
To know the factors which influence the customers in availing the
service providers
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the problem. It may
be understood as a science of studying how research is done scientifically. In
it we study the various steps that all generally adopted by a researcher in
studying his research problem along with the logic behind them. The scope
of research methodology is wider than that of research method.
Research Design
DATA COLLECTION
There are two types of data these are:
Questionnaire
Observation
Personal interview
SECONDARY DATA: -
The secondary data on the other hand, are those which have already
been collected by someone else and which have already been passed
through the statistical processes.
Sources are: Books, magazines, newspaper, publications.
Response No. of
Respondents
Mobile Connection 78
Landline connection 22
80
70
No. of Respondents
60
50
40
30
20
10
0
Mobile Connection Landline Connection
Response
GSM 64
CDMA 36
CDMA
36%
GSM
64%
Interpretation:-
The above chart shows that in the mobile services the coverage of the GSM
service operators have more share in the over all mobile sector so we can
say that the GSM service providers are far ahead than the CDMA service
providers.
Q3. What type of connection do you have?
Response No. of
Respondents
Prepaid 65
Postpaid 35
Postpaid
35%
Prepaid
65%
Interpretation :-
The above chart shows that in the total mobile connections the number of
the Pre paid connections are more than the number of the Post paid
connection. So this is a clear indication that the customer prefers to use the
Pre paid connections to use the mobile services.
Q4.Who amongst the following is your service provider?
Response % of Respondents
Airtel 32
Bsnl 16
Idea 12
Vodafone 7
Reliance 19
Any others 14
Interpretation;-
The above chart tells about the share of the various telecom services
providers. In my study I found that Airtel has the maximum share of 32% in
the market and Reliance comes on second position having the share near to
19%. And the over all mobile communication market is captured by the GSM
operators.
Q5. How did you come to know about these service
providers?
Response % of
Respondents
Through peers 15
Advertisement 35
Publicity 25
Family members 12
Any others 13
Interpretation:-
The above chart shows that the advertisement is the most influential
medium in the business of the mobile services . And if of the mobile
services operator wants to enter in the market than he has to use the
advertisement as the tools to enter in the market . It also indicate that an
mobile service provider has to spent hugely on the advertisement.
Q6. Which factor influenced you the most to avail the
services of the service provider
Response % of
Respondents
Call rates 48
Value added 12
services
Network Coverage 19
Customer care 12
support
Scheme 9
Interpretation:-
This chart shows that the call rates of a particular service provider has a
maximum influence on the purchase decision of an customer and after this
the network coverage has the maximum impact on the purchase decision of
an service provider.
Q7. Are you aware about the all other service providers
available in the market?
Response % of
respondents
Fully aware 42
Aware 46
Less aware 6
Neutral 2
Not so much 4
Interpretation:-
This chart shows the awareness level of the customers in the telecom
services providers market. It also shows that among the total people 42%
are fully aware and 46% are aware . so this shows that near about 88%
people have a great information about the various telecom service
providers.
Q8. Are you satisfied with the amount of information
content provided to you in the catalogue and handbooks?
Response % of
Respondent
Fully 18
satisfied
Satisfied 28
Average 32
Less 14
satisfied
Dissatisfied 8
Interpretation:-
This chart shows about the extent of the information given by the various
service providers. This shows that 60% of the people are satisfied amount
of information content provided by the various telecom services providers.
This also shows that 22% people are not at all satisfied by the amount of
information content provided by the various telecom services providers.
Q9. Which type of media influenced your purchase
behavior?
Response % of Respondent
T.V 42
Hoarding 12
News papers & 21
magazines
Radio 14
Internet 11
Interpretation:-
The above chart gives the information about the level of the influence of
the various advertisement mediums . It shows that T.V has maximum
influence on the people it is near about 42% and after this the another
most influential medium is the News papers and the magazines and which
is near about 21%this help to know the best medium of the
advertisement.
Q10. Which is the most important factor according to you
influenced most while purchase of a sim-card?
Response % of Respondent
Customer care 09
support
Attractive schemes 12
Network coverage 19
Value added 12
services
Call rates 48
Interpretation;-
This chart shows the which is the most important factors among the
following factors which has the maximum influence on the purchase decision
of an customer. This shows that the call rates has the maximum influence
48% and after that the network coverage is the second most important
factor and it influence near about 19% on the decision of an individual for
buying a telecom service operator.
Q11. What extent call rates influence your purchase of sim
card?
Response % of Respondent
High 20
High 41
average
Average 16
Average low 18
Low 5
Low
High
Average Low 5%
20%
18%
Average
16%
High Average
41%
Interpretation:-
This chart helps us to know that up to what extent the call rates has the
influence on the purchase decision of an customer. This shows that more
than 20% people are highly influenced by the call rate factor and more than
77% people consider the call rates as the important factor while going for a
particular telecom service provider.
Q12. How many times do you switch over your service
provider in last one year?
Response % of
Respondent
No switch over 18
1 time 48
2 time 27
3 times 03
More than 3 04
times
Interpretation:-
This chart helps us to know about the switching rate in the telecom sector .
This shows that more than 48% of people switch over once in the last one
year, more than 27% people switch over twice in the last year . So this all
shows that the rate of the switching is very high in the telecom sector. So it
is very difficult for the service providers to retain their customers.
Q13 .Are you satisfied with the customer care services of
your service provider?
Response % of
Respondent
Fully satisfied 18
Satisfied 28
Neutral 32
Dissatisfied 14
Fully Dissatisfied 8
Interpretation: -
This chart helps us to know about the satisfaction level of the customers
regarding the customer care services in the telecommunication service
users. This shows that only 18% customer says that they are fully satisfied
with the customer care services in the various telecommunication services
providers and28% customer says that they are satisfied with the customer
care services in the various telecommunication services providers and32%
customer says that they are neutral with the customer care services in the
various telecommunication services providers and14% customer says that
they are dissatisfied with the customer care services in the various
telecommunication services providers and8% customer says that they are
fully dissatisfied with the customer care services in the various
telecommunication services providers.
CHAPTER-6
FINDINGS,CONCLUSI
ON,
LIMITATIONS &
SUGGESTIONS
FINDINGS
We find that in the mobile services the coverage of the GSM service
operators have more share in the over all mobile sector so we can say that
the GSM service providers are far ahead than the CDMA service providers.
We find that the total mobile connections the number of the Pre paid
connections are more than the number of the Post paid connection. So this is
a clear indication that the customer prefers to use the Pre paid connections
to use the mobile services.
We find that share of the various telecom services providers. In my
study I found that Airtel has the maximum share of 32% in the market and
Reliance comes on second position having the share near to 19%. And the
over all mobile communication market is captured by the GSM operators.
Only 16% of the total customers are fully satisfied and only 42% of the
customers are satisfied with their service providers. And more than14%
customers are not at all satisfied with their telecom service provider.
Only 12% says that their post purchase experience is excellent with
their service provider and 24%says that their post purchase experience is
very good with their service provider and 42% says that their post purchase
experience is good with their service provider and14% says that their post
purchase experience is average with their service provider and 8 %says that
their post purchase experience is poor with their service provider.
CONCLUSION
Keeping this in view it can be concluded that there are end number of
service providers for the customers and the satisfaction will vary as per the
varying demand of the customers. So there are no clear cut dimensions upon
which the customer satisfaction and their perception can be measured.
LIMITATIONS OF THE STUDY
In every Research whether it is done at the lower level or at the upper level,
It consists of some limitations. During my research, I have also faced some
limitations. These are stated as under:
Small sample Size: - The sample that I have taken was not enough. It
does not represent the whole set of population.
Limited Area: - The sample which is taken in the record is from the
very small area as compared to large population town. So there may
be deviation due to this sample.
BIBLIOGRAPHY
BIBLIOGRAPHY
Magazines
1. Advertising Effectiveness, By Dr. R.P. Singh, Indian Journal of Marketing,
Dec 2009.
2. Chandra Suresh Indian Journal Of Marketing xxxv edition January 2009.
3. Business World Economy Dec 2010 P no.51-53
4. Business Today Trends, April 23, 2010 P no. 17
5. Business Research June 2010, Page 31
Websites
1. http://ideacellular.com/mission
2. http://www.bsnl.co.in/about.htm
3. http://ideacellular.com/IDEA.portal/history
4. http://www.bsnl.co.in/company/vision.htm
ANNEXURE
ANNEXURE
QUESTIONNAIRE
I am doing a survey on Study of Consumer behavior regarding Telecom
Service providers (Airtel, Bsnl, Vodafone, Idea& Reliance) on the basis of Call
rates, Network Coverage, Value Added Services, Scheme and Customer Care
Support. and this survey is being conducted in lieu of the partial fulfillment
of dissertation for the degree of M.B.A. and means no business. In this regard
Sex:-
Occupation:-..
Income level:-
Mobile. Landline.
GSM CDMA
Bsnl
Idea
Vodafone
Reliance
Any others
Through peers
Advertisement
Publicity
Family members
Any others
6. Which factor influenced you the most to avail the services of the
service provider?
Call rates
Network coverage
7. Are you aware about the all other service providers available in the
market?
Fully aware
Aware
Less aware
Neutral
Not so much
Hording
Radio
Internet
Attractive Schemes
Network coverage
11. What extent call rates influence your purchase of sim card?
High average
Response
Average
High
12. How many times do you switch over your service provider in last
one year?
No switch over 1time 2 time 3 times
morethan 3
13. Are you satisfied with the customer care services of your service
provider?
Fully Satisfied
Satisfied
Neutral
Dissatisfied
Fully Dissatisfied