Literature Review

A Study of select consumer products- Vasant Vijayakumar

Bang (2010)
According to Vasant Vijayakumar he found that there haven’t done much
research studies in India on market growth and how the penetration of new
products can guide to market expansion and market growth. He states that
there is a positive correlation between market expansion and rate of selling of
new products. He also has conducted lot of literature reviews on the field of
market growth and primary demands of people. Sales revenue and profit is
very much related to each other as we know and that has been substantiated
with his thesis and study. So if the product is sold at a higher rate irrespective
of the profit that results in market expansion and the growth of the company.
He prepared a questionnaire, which have mainly three sections. First section
consist of likert scale type which mainly studies about the market expansion
strategies and reasons on persuasion. Secondly market expansion scale and
thirdly performance measures. He could bring out with a detailed study of
market expansion methods by various companies. He also used the help of
secondary data.
Changing the Indian telecom sector – K R Mahalaxmi, Suresh Kumar N
As we know India is the second largest telecommunications market, we have
seen a tremendous growth in the sector last decade. The study was conducted
to understand the impact of Jio and its plans in a particular region ( Trichy). It is
found that mostly students are attracted to their plans mainly due to data
plans offered by Jio. It is also understood that when the competitors
introduces a competitive plan, the situation will change. This will guide to a
tight market competition. Jio came out with accepting only 4G handsets. This
really made an impact in the mobile industry. People changed their handsets
from 3G to 4G supporting handsets.
The analysts’ report published by Ernst and Young in collaboration with FICCI
titled, “Enabling the next wave of telecom growth in India – Industry inputs for
National Telecom Policy 2011” is a comprehensive report about the evolution
of the telecom sector in India over the past decade. This report tracks the
changes in terms of technological advancements, business dynamics and
socioeconomic environment over the years. The research program studies in
detail all the key segments of the telecom landscape — wireless, wire line,
broadband, infrastructure, NLD, ILD, value-added services (VAS), equipment
manufacturing, infrastructure and convergence. Moreover, it also identifies
and evaluates the critical success factors that are applicable across all telecom
segments such as spectrum, USOF, licensing framework, FDI, security,
consumer affordability and the role of the regulator (Ernst and Young, FICCI,
2011). Last but not least, it also includes comprehensive interviews conducted
with senior executives in the Indian telecom sector, which provides a firsthand
perspective about various stakeholders involved in the telecom sector.

Fink, Carsten, Mattoo, Aaditya, Rathindran, Randeep (2001) found that that
despite moving away from traditional public monopolies in the telecom sector,
most Asian governments are still quite hesitant to allow entry without
restrictions, eliminate limits on private and foreign ownership, and establish
strong independent regulators. Through their research they find that the 1990s
was characterized by countries such as China, India, and Korea, for example,
introducing competition in selected fixed-line market segments, while the
incumbent operator was under full public ownership. The paper also
elaborates on the role of the regulator and suggests that the problems of
determining
interconnection rates which adequately reward the incumbent for the creation
and the maintenance of the network while ensuring that use of the network by
rivals is not foreclosed. The agreement on the regulator’s role with regard to
consumer prices and output decisions fares lower than the reasonable
consensus about the desirability of regulatory oversight of the terms of
interconnection.

Though the state owned telecom company Bharat Sanchar Nigam Limited
(BSNL) remains as the pioneer in the telecom market of India, private
operators obtained a high market share (Arun, 2011), among which, India's
largest mobile operator Bharti leads the pack with over one-fifth of the
telecom market, followed by 16.71% from Reliance who is the third largest
mobile operator, 16.52% from Vodafone as the fourth largest and 11.16% from
the fifth largest mobile transport TATA Group business.

The analysts’ report published by Ernst and Young in collaboration with FICCI
titled, “Enabling the next wave of telecom growth in India – Industry inputs for
National Telecom Policy 2011” is a comprehensive report about the evolution
of the telecom sector in India over the past decade. This report tracks the
changes in terms of technological advancements, business dynamics and
socioeconomic environment over the years. The research program studies in
detail all the key segments of the telecom landscape — wireless, wire line,
broadband, infrastructure, NLD, ILD, value-added services (VAS), equipment
manufacturing, infrastructure and convergence. Moreover, it also identifies
and evaluates the critical success factors that are applicable across all telecom
segments such as spectrum, USOF, licensing framework, FDI, security,
consumer affordability and the role of the regulator (Ernst and Young, FICCI,
2011). Last but not least, it also includes comprehensive interviews conducted
with senior executives in the Indian telecom sector, which provides a firsthand
perspective about various stakeholders involved in the telecom sector.

Fink, Carsten, Mattoo, Aaditya, Rathindran, Randeep (2001) found that that
despite moving away from traditional public monopolies in the telecom sector,
most Asian governments are still quite hesitant to allow entry without
restrictions, eliminate limits on private and foreign ownership, and establish
strong independent regulators. Through their research they find that the 1990s
was characterized by countries such as China, India, and Korea, for example,
introducing competition in selected fixed-line market segments, while the
incumbent operator was under full public ownership. The paper also
elaborates on the role of the regulator and suggests that the problems of
determining
interconnection rates which adequately reward the incumbent for the creation
and the maintenance of the network while ensuring that use of the network by
rivals is not foreclosed. The agreement on the regulator’s role with regard to
consumer prices and output decisions fares lower than the reasonable
consensus about the desirability of regulatory oversight of the terms of
interconnection.
Though the state owned telecom company Bharat Sanchar Nigam Limited
(BSNL) remains as the pioneer in the telecom market of India, private
operators obtained a high market share (Arun, 2011), among which, India's
largest mobile operator Bharti leads the pack with over one-fifth of the
telecom market, followed by 16.71% from Reliance who is the third largest
mobile operator, 16.52% from Vodafone as the fourth largest and 11.16% from
the fifth largest mobile transport TATA Group business.

Debnath (2008) this study explains that the prime focus of the service
providers is to create a loyal customer base by benchmarking their
performances and retaining existing customers in order to benefit from their
loyalty. With the commencement of the economic liberalization in 1991, and
with a view to expand and improve telecom infrastructure through the
participation of the private sector, the Government of India permitted foreign
companies holding 51 per- cent equity stake in joint ventures to manufacture
telecom equipment in India. The Indian Government has announced a new
policy, which allows private firms to provide basic telephone services. There
had been a monopoly of the state-owned department of telecommunications.
However, several companies are expected to benefit from the policy change.

Kalavani (2006) in their study analyzed that majority of the respondents have
given favorable opinion towards the services but some problems exist that
deserve the attention of the service providers. They need to bridge the gap
between the services promised and services offered. The overall customers’
attitude towards cell phone services is that they are satisfied with the existing
services but still they want more services to be provided.

Kumar (2008), in their study titled “Customer Satisfaction and Discontentment

of BSNL Landline Service: A Study” analyzed that at present, services marketing
plays a major role in the national economy. In the service sector, telecom
industry is the most active and attractive. Though the telecom industry is
growing rapidly, India’s telecom density is less than the world’s average
telecom density as most of India’s market is yet to be covered. This attracts
private operators to enter into the Indian telecom industry, which makes the
Bharat Sanchar Nigam Limited (BSNL) more alert to run its business and survive
in the market.

Leelakulthanit and Hongcharn (2011) investigated the determinants of

customer satisfaction by interviewing 400 mobile phone users in Thailand.
Their study found that promotional value, quality of customer service at shops
and corporate image play the most important role in determining customer
satisfaction. In the same respect, Alom, Khan, & Uddinl (2010) interviewed 60
university students in Bangladesh who were also mobile users, to identify the
determinant factors in selecting mobile service providers. Results of that study
revealed two factors, brand image and perceived call rate, to have the most
influence on the consumers’ selection decision of a mobile service provider in
Bangladesh.

References
• Ernst and Young, FICCI, 2011, “Enable the next wave of Telecom
growth”, [Online],
Available at:
<http://www.ey.com/Publication/vwLUAssets/Enabling_the_next_wave_of_Te
lecom_gr
owth_inIndia/$FILE/Enabling%20the%20next%20wave%20of%20Telecom%20g
rowth%2
0in%20India.pdf>
• Arun Prabhudesal, 2011, “Top 20 Mobile Operators in World”, [Online]
Available from:
http://trak.in/tags/business/2011/05/27/top-20-mobile-operators-world-
bharti-airtel-5-
17/
• Fink, Carsten, Aaditya Mattoo, and Randeep Rathindran. "Liberalizing
basic telecommunications: the Asian experience." (2001).
• Debnath, Roma Mitra, (2008) Benchmarking telecommunication service
in India, retrieved from http://www.emeraldinsight.com on 2/1/2009
• Kalavani, Bhanumathy. (2006) Consumers attitude towards cell phone
services. Retrieved from http://www.emeraldinsight.com on 2/7/2009
• Kumar, R. Ravi, Vijaya Bhaskar Reddy, and P. Surender. "Customer
Satisfaction and Discontentment vis-a-vis BSNL Landline Service: A Study."
ICFAI Journal of Consumer Behavior 3.1 (2008).
• Leelakulthanit, O., & Hongcharu, B. (2011). Factors that impact
customers satisfaction: Evidence from the Thailand mobile cellular network
industry. International Journal of Management and Marketing Research, 4(2),
67-76.

• Ernst and Young, FICCI, 2011, “Enable the next wave of Telecom
growth”, [Online],
Available at:
<http://www.ey.com/Publication/vwLUAssets/Enabling_the_next_wave_of_Te
lecom_gr
owth_inIndia/$FILE/Enabling%20the%20next%20wave%20of%20Telecom%20g
rowth%2
0in%20India.pdf>
• Arun Prabhudesal, 2011, “Top 20 Mobile Operators in World”, [Online]
Available from:
http://trak.in/tags/business/2011/05/27/top-20-mobile-operators-world-
bharti-airtel-5-
17/
• Fink, Carsten, Aaditya Mattoo, and Randeep Rathindran. "Liberalizing
basic telecommunications: the Asian experience." (2001).