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Abstract:
Objective- This paper is an attempt to find the variables/factors that affect Customer
Satisfaction Index for Rural Mobile Telecom Subscriber in India. The impact of various
service parameters like Service Quality, Service Performance, Support services, Billing
Design/Methodology/Approach- The aim is to find out the factors, which affect the
Customer Satisfaction Index (ACSI) Model has been used as the Research Model and
accordingly various factors affecting the Customer Satisfaction in Mobile Sector in India in
Rural Markets have been defined. The study is based on primary data collected from the
rural areas adjoining National Capital Region of New Delhi, India. The questionnaire used
for the sample survey is based on the ACSI Research Model. Data analysis was done
using SPSS software. The statistical analysis method employed was Factor Analysis.
Findings- Since use of the mobiles is continuously growing in India, it is important for the
mobile service providers to understand the different factors affecting the extent of
Customer Satisfaction. The factor analysis results indicate that Service Parameters is
Telecom Sector, the possible impact could only be conjectured or deduced. Telecom
Customer Satisfaction Index (TCSI) Model Adopted from American Customer Satisfaction
Index (ACSI) Model has been proposed that can be tailor-modified by any Telecom
Service Provider globally for providing better services & value to the Customers.
from ACSI Model, the current paper may be a beginning in this direction, which may
1. Introduction
The infrastructure in India that has really grown by leaps and bounds is surely none
other than telecom infrastructure. Plain Old Telephone Services (POTS) have changed
to Pretty Amazing New Services (PANS). Voice Centric Circuit Switched Networks have
given way to Packet Switched Data Networks and 3rd Generation Evolving Mobile GSM
Networks. Huge Waiting Lists have simply vanished and telephones are available on
Besides this encouraging success story, there are miles to be achieved. If we compare
the penetration of landlines and of mobile phones in India as on March 2010 with that in
other Asian countries like Korea, Chine, Thailand etc, India is far behind. The recent
yearly growth rate of 45.5% as on March, 2010, has to be sustained for at least a
decade to achieve that level of penetration. The telecommunication sector in India has
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respectively. The growth figures and story is quite impressive in quantitative terms. But
http://www.dot.gov.in/network)
It is generally felt that the potential for growth in telecom field lies only in urban areas,
but if the demographic facts are analyzed; there is a huge potential, waiting in rural
areas. More than 50% of Indian GDP comes from villages. Nearly half of very rich and
well-off households lie in rural area. But it is amazing that telephone density in India in
Rural Markets is only 24.31%, while in urban India, it is 119.45% as on June, 2010. It is
perhaps due to vast area to be accessed to meet this market. With the choice of
Markets can also witness the impact of communication in all around development. The
future growth will be marked by two fast expanding trends – First, in terms of broadband
Huge success in telecom policies has shown results towards urban telecommunications
and perhaps a failure in replicating the same for rural areas in India. Total phone
connections in India are 621 million (out of which 584 millions are mobile connections)
as on June 2010, out of which only 200 millions are in Rural Segment. (Source:
http://www.dot.gov.in/network)
The growth figures and story is quite impressive in quantitative terms. But there is lot of
scope for increasing the customer satisfaction. The customer satisfaction can become a
Major players in the Telecom sector are BSNL, MTNL, Bharti Teleservices, Hutchison
Essar, BPL, Tata, Idea, Vodafone, Reliance etc. With the growth of telecom services,
telecom equipment and accessories manufacturing has also grown in a big way. Indian
Telecom sector, like any other industrial sector in the country, has gone through many
phases of growth and diversification. Starting from telegraphic and telephonic systems
in the 19th century, the field of telephonic communication has now expanded to make
use of advanced technologies like GSM, CDMA, and WLL to the great 3G Technology
in mobile phones. Day by day, both the Public Players and the Private Players are
(http://www.scribd.com/doc/24304465/Project-Report-Reliance-Communications-
Customer-Satisfaction)
telecom industry in the awake of recent global recession and its overall impact on
the Indian economy. With almost 5-6million subscribers are being added every
month, and the country is witnessing wild momentum in the telecom industry, the
technologies are playing for Indian society to educate them formally or informally
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T.H. Chowdary (1999) discusses how Telecom reform, or demonopolization, in
India has been bungled. Shaped by legislation dating back to the colonial era and
post Second World War socialist policies, by the mid-1980s India realized that its
Telecom Policy 1994 spelt out decent objectives for reform but tragically its
which the DOT became policymaker, licenser, regulator, operator and also
telecommunications in India by the state and civil society to public service, this
public service aligned to the postal services and finds hope in the renewal of
becomes more significant in this light, as its focus is to find out the factors
Markets. The findings of the current research may be the basis of product
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& promotional strategies to be designed by the telecom service providers
3. Research Model
American Customer Satisfaction Index (ACSI) has been adopted as the Research
Model base in the current research paper and accordingly various factors affecting the
Customer Satisfaction in Mobile Sector in India in Rural Markets have been defined.
The American Customer Satisfaction Index uses customer interviews as input to a multi-
Business. The ACSI model is a cause-and-effect model with indices for drivers of
satisfaction on the left side (customer expectations, perceived quality, and perceived
value), satisfaction (ACSI) in the center, and outcomes of satisfaction on the right side
(customer complaints and customer loyalty, including customer retention and price
tolerance).
The indices (shown in the diagram below) are multivariable components measured by
several questions that are weighted within the model. The questions assess customer
scale. The survey and modeling methodology quantifies the strength of the effect of the
index on the left to the one to which the arrow points on the right. These arrows
customer satisfaction (ACSI) on customer loyalty. Looking at the indices and impacts,
users can determine which drivers of satisfaction, if improved, would have the most
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Figure 1: ACSI Model
Results from all surveys are published quarterly in various media and on the
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In the backdrop of the facts discussed, the following are the objectives of the current
research:
2. To Help Service Providers to focus attention to the areas which are key to
Customer Satisfaction
users.
5. Research Methodology
that helped in identification of the various factors affecting Customer Satisfaction Index
The data for the study was gathered through an undisguised questionnaire
during the period November 2010- January 2011. It was pretested several times
among various sample units in order to verify face validity of the items.
For this study, a pilot survey was also conducted in rural areas of Delhi, NCR
region and Western UP to explore all the factors which can be contributing
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Based on this pilot survey & pre-tests, a highly structured, closed ended
data was collected by personally contacting the respondents from these areas.
the age group ranging 18-60 years, who are exposed to any kind of mobile
telecom services.
The questionnaire used for the sample survey is a structured and non-disguised
questionnaire has been based on the ACSI Research Model. The first section
captures the Support Services, the third section consists of opinion on Value
Added Services, fourth section highlights the Tariff Plan and the fifth section
shows the Customer Expectation Behaviour of the mobile telecom services. The
manner. It could be therefore said that the itemized scale in this case actually
importance.
Data analysis was done using SPSS software. The statistical analysis method
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Sampling Unit - The sampling unit is the Customer in the rural areas of Uttar
Sample Size - Primary data was collected with a sample size of 250
respondents living in and around the rural areas in National Capital Region of
New Delhi & villages of Western UP in North India. The choice of this
geographical area has been done with this assumption that Delhi in India has
players.
6. Data Analysis
The study entailed data collection during the period November 2010- January 2011 with
the help of a questionnaire from in and around rural areas of Northern India and
National Capital Region (NCR). Data was collected by personally contacting the
respondents and explaining in detail about the survey. A total of 500 customers from
different areas were contacted and 486 correctly completed the questionnaires, the
18-25 11%
26-35 39%
46-55 12%
>56 2%
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Female 21%
Airtel 22%
Idea 9%
6.2 Factor Analysis of the factors affecting services provided by mobile telecom
Factor analysis was performed to identify the key dimensions affecting adoption of
services provided by different mobile telecom services. The respondent ratings were
multicollinearity among the items and to improve reliability on the data (see Table 2:
Rotated Factor Matrix). Varimax rotation (with Kaiser Normalization was converged in
sixteen iterations. Thirty items were reduced to nine orthogonal factor dimensions which
explained 75.183% of the overall variance (Table 2) indicating that the variance of
Reliability of Data
Kaiser-Meyer-Olkin
[Index for comparing the magnitudes of the observed co-relation coefficient to the
magnitude of the partial correlation coefficients. Large value for the KMO measure
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“Bartlett’s Test of Sphericity”
Strength of relationship among variables is strong. It presents good idea to proceed for
factor analysis of the data. 9 Factors have been extracted as a result of Factor
Analysis. Each number represents the correlation between the item and the unrotated
This is done by looking for a common thread among the variables that have large
loadings for a particular factor or Variable. It is possible to see items with large loadings
on several of the unrotated factors, which makes interpretation difficult. In these cases,
Rotated Component Matrix has been generated using Varimax with Kaiser
Normalization procedure. All 30 variables along with the 9 extracted factors are given
below in Table 2.
Variabl
e Component
1 2 3 4 5 6 7 8 9
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V4 There is no problem of signal
- .29 .14 -
dropping when moving from .509
.366 2 0 .277
one place to another
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requests promptly 1
14
V25 Network Coverage should be .17 - -
.599 .388 .106
widened 5 .292 .255
Extraction Method: Principal Variable Analysis. Rotation Method: Varimax with Kaiser
categorize the statements accordingly. Nine Factors have been extracted as shown in
Table 3.
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face busy n/w most of time
V9 - I am satisfied with the quality of my service
V25 - Network coverage should be widened
V16 - VAS is very important to me
V19 - I don’t like to subscribe to ringtones by my
Factor 2 service provider
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Call Charge Information per rules
V24 - I obtain correct information about the call
casts from the service provider
V29 - I prefer to know about new offers & schemes
Be lie f On Custome r
9% Se rvice
16%
Ca ll Cha rge s
Informa tion
11%
14% Custome r Ex pe cta tion
Ta riff
A modified version of ACSI Model has been evolved as TCSI Model, based on the
Factor Analysis done, which has been shown below. (Refer to Fig. 3)
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Figure 3
into quantitative data with the help of Eigen Values in the Variable Score Coefficients.
The most prominent (maximum) impact Eigen Values are considered and taken as ratio
proportion with respect to each variable. Then the average of the variables are taken in
each case, subsequently each parameter is given weightage on the basis of the
relationships
agencies, companies
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•ACSI is measured using multiple indicators
8. Findings
Since use of the mobiles is continuously growing in India, it is important for the mobile
service providers to understand the different factors affecting the extent of Customer
Satisfaction. The factor analysis results indicate that Factor 1- Service Parameter is
seen as a primary driver causing variance of 5.549 (18.496%), Factor 2- Value Added
has strong impact on the Customer Satisfaction Index. Factors- 4,5,6,7,8 & 9 (Table 3)
i.e. Attitude of the customer care/ customer service providers, Network strength, Belief
on customer service, Information about call charges, Customer expectation & Tariff
respectively also affect up to a certain limit showing variance of 2.41, 2.03, 1.813,
Even though all the nine factors contribute to the total customer satisfaction up to
certain limit, the most prominent of them is the service being provided by the mobile
telecom service providers. Thus, if mobile telecom service providers improve the quality
of service to customers along with value added services and upcoming information
about the new offers and schemes, the customer would be more satisfied.
Mobile telecom-services should also increase the network coverage and increase the
strength of the network up to a certain limit. Contrary to the general belief, tariff is not
one of the most influencing factors even in rural areas & level of price sensitivity is very
low. Tariff charges and call charges are not affecting the customer which indicates that
service is more important than call charges. From the TCSI model, we can analyse and
interpret the customer satisfaction index. By analysis and interpretation, 69% of the
customers are satisfied by the service provided by the mobile telecom operators.
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9. Marketing Implications & Significance of Research
These findings are highly useful for the service providers in mobile telecom sector, as
they can be used by them to devise and design the marketing mix strategy for Rural
Markets. Pricing strategy & product features can be evolved efficiently based on TCSI
Model.
As the expectation levels of customers is spiraling high with each passing day, because
of the availability of multiple players in the mobile sector, it is imperative for service
expectation in this regard. With the huge untapped rural potential in our country, no
service provider can ignore the importance of rural market for the revenue generation &
References:
Beri, G.C.(2004), Marketing Research,Tata McGraw Hill ,8th edition
Blackwell, RD (2007), Consumer Behavior, Thomson South-10th edition
Boyd, Harper W.(1996), Marketing Research, Richard D.Irwin
Green, Paul E (1995), Research for Marketing Decisions, Prentice Hall
Malhotra, NK. K.( 2008), Marketing Research-Pearson Education,5th edition
Najundar, R.( 1995),Marketing Research,Wiley
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School of Business, University of MichiganWashington, D.C., December 15,
2005
www.theacsi.org, June 12, 2011
www.trai.gov.in, June 11, 2011
Annexure I
Opinion Survey Questionnaire
Customer Satisfaction Index in Mobile Telecom Sector in India in Rural Markets
Personal Details
Name
……………………………………………………………………..Gender………..............
Age………… Occupation…………………..Address
…………………………………………...
4. There is no problem of
signal dropping when
moving from one place to
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another
B. Support Services
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customers
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D. Tariff Plan
E. Customer Expectation
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Services
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