A study on brand switching in

Telecom industry

Course work submitted to

CHITKARA BUSINESS SCHOOL

In partial fulfillments of the requirements for the award of degree of

Master of Business Administration

Submitted to: Submitted by:

Dr. Raja Narayanan Gurinder singh

(Professor) MBA (Marketing)

1820982026

CHITKARA BUSINESS SCHOOL

CHITKARA UNIVERSITY

2019-20
 Table of contents

Part 1. Course work

Part 2. Model research paper:
1. Introduction……………………………………………………..
2. Literature review………………………………………………..
3. Objectives………………………………………………………
4. Questions ………………………………………………………
5. Research methodology…………………………………………
6. Analysis and interpretation…………………………………….
7. Conclusion……………………………………………………..
8. Appendix………………………………………………………
9. Bibliography…………………………………………………..
Introduction

India's telecommunication network is the second largest in the world by number of telephone
users (both fixed and mobile phone) with 1.179 Billion subscribers as on 31 July 2018. It has
one of the lowest call tariffs in the world enabled by mega Telecom Operators and Hyper-
competition among them. India has the world's Second-largest Internet user-base with 460.24
Million Broadband Internet subscribers in the country. India had a population of 130 crore
people (1.3 billion), 123 crore (1.23 billion) Aadhaar digital biometric identity cards, 121
crore (1.21 billion) Mobile Phones, 44.6 crore (4460 Million) Smart Phones, 56 crore (560
Million or 43% of total population) Internet users up from 481 million people (35% of the
country's total population) in December 2017. Currently there are four major players in the
Indian market Vodafone-idea ltd, Reliance Jio, BSNL, Airtel. India is divided into 22 telecom
circles.

The policies of Government of India has been pursuing the aim and expecting the demand
from customers which is growing rapidly in the Indian Telecom Sector. The removal of
restriction in F.D.I has helped the sector to grow faster and has made the top five employment
opportunity generator in the country Indian Telecom is expected to create four million jobs in
the next five years.

Literature review

Dr. Uppu V. Adinarayana Rao, Dr. Pujari & Dr. Raghava Rao Gundala (2016) in their
research titled “Brand switching Behaviour in Indian Wireless Telecom Service market tried
to reveal that Advertisements are the chief source of for consumers to identify better service
provider and to satisfy their desire for brand switching. Impact of Social Networking,
retailer/sales persons are insignificant. The quality of service is the most influencing factor,
followed by price and product features. Consumer prefers to switch brands when competitors
offer additional servie features or when no improvement in existing brand.
Srivastava Shaila & Dixit Shweta (2017) in their research titled “Brand Switching- A case
of Mobile Telecom Industry in India” concluded that customers prefer affordable competitive
plans, low call drop rates, clear voice quality, network availability as desired primary service.
It tells us that price is not a discriminating variable deciding brand loyalty. Call drop rate,
Satisfaction with current service provider, years of usage are most significant factors which
contribute to brand loyalty.

Kevin Cardoza , Pooja & Anjali (2018) in their research on “Factors Influencing the 2nd
year students of JKSHIM on switching of Mobile Network Brands” showed that good
network coverage, high speed internet have lead Airtel to occupy top position. Factors of
Brand Switching behaviour are bad after sale service, brand image of competitors, cheap
price provided by other service providers etc.

Research Objectives

 To examine the factors that influence brand switching in telecom industry.

 To study the customer preferences of mobile service providers in telecommunication

industry in Dera Bassi.

Research Questions

 What are the factors that led to brand switching in telecom industry ?

 What are the customer preferences of mobile service providers in telecom industry in
Dera Bassi ?
Research methodology

Source of data:-

The research was done by collecting primary data from the field survey in Dera bassi area.

Sample size:-

The study is based on 30 valid responses out of a targeted 300 population unit from Dera
bassi area.

Method of data collection:-

A proper survey was conducted by the researcher and the data is collected by using a
questionnaire by Simple Random sampling technique.
Analysis and Interpretation

Table 1. Age-group Age group

Age-group Percentage
18-21 20% 18-21
20%
22-25 36.7% 23.30% 22-25

20% 36.70% 26-30

26-30 20%
Above 30
Above 30 23.3%
(Source: Primary)

So in this table we came to knew that highest no. of respondents belong to the age group 22-
35 are 36.7% where as lowest are in 18-21 & 26-30. According to this penetration of mobile
users is highest in 22-25 age group.

Table 2. Current Service Provider Percentage of service provider

400.00% 3.5
Service provider Percentage
300.00%
Vodafone-idea 16.7 200.00%
100.00% 16.70% 40%
0.00% Percentage
Reliance jio 40
Airtel 43.3

(Source: Primary)

Based on the research we arrive at the result that here in Dera Bassi Airtel has highest rank in
customer preference of mobile service provider with 43.3% market share where as Vodafone-
Idea is least preferred by customers and therefore has 16.7% market share. 6.7% people are
highly dissatisfied with their phone network.
 Table 3. Phone Network
Ranking Percentage
1 33.3%
2 16.7%
3 33.3%
4 10%
Percentage of phone network
5 6.70%
4 10%
3 33.30%
Percentage
2 16.70%
1 33.30%

5 6.7% 0.00% 20.00% 40.00%

(Source: Primary)

If we talk about Phone network 33.3% people ranked their Phone network as 1, which means
that they are highly satisfied with their provider in terms of network coverage.

Table 4. 3g/4g
Percentage of 3g/4g
Ranking Percentage
5 3.30%
1 20%
4 16.70%
2 33.3% 3 26.70%
Percentage
3 26.7% 2 33.30%
4 16.7% 1 20%

5 3.3% 0% 20% 40%

(Source: Primary)

In case of Data services (3g & 4g) 33.3% people ranked their data service as 2nd means they
are satisfied and only 3.3% people ranked no. 5th as to their data service means they are
highly dissatisfied with their data service.
 Table 5. Customer Care
Percentage of customer care
Ranking Percentage
5 3.30%
1 23.3%
4 16.70%
2 33.3%
3 23.30%
Percentage
3 23.3% 2 33.30%
4 16.7% 1 23.30%
5 3.3% 0.00% 20.00% 40.00%
(Source: Primary)

Customer care is the backbone of any Telecom Company. Here people ranked this service as
2nd with 33.3% . It also means that although they are not Fully Satisfied with the customer
care service but they are Satisfied.

Table 6. Value Added Services

Ranking Percentage
1 30%
2 30%
3 23.3%
4 16.7%
Percentage of V.A.S
5 3.30%
4 16.70%
3 23.30%
Percentage
2 30%
1 30%

5 3.3% 0% 20% 40%

(Source: Primary)

In case of Value Added Services which includes Miss call alert, Caller tunes & other
applications such as Live T.V 30% people ranked it as 1st and 2nd and 10% ranked these
services as 5th .
 Percentage of Better network
Table 7. Better Network
Preference Percentage 6.70% 3.30%
13.30% 1st
1st 63.3%
2nd
2nd 13.3%
63.30% 3rd
3rd 13.3% 4th
4th
6.7% 13.30%
5th
5th 3.3%
(Source: Primary)

Here 63.3% people ranked Better network as their 1st preference which motivated them to
shift to another Service provider and 3.3% as 5th preference for shifting to another network.

Table 8. Cheaper Plan

Percentage of cheaper plans
Preference Percentage
10% 3.30%
1st
50% 13.30% 1st
2nd
2nd 23.3% 50%
23.30% 3rd
3rd 13.3%
4th
4th 10% 5th
5th 3.3%
(Source: Primary)

In case of cheaper plans 50% people ranked them as their first preference whereas 3.3%
people ranked them as 5th preference for shifting to another network.
 Table 9. Influence of friends and
family members Percentage
Preferences Percentage 5th 6.70%
st
1 46.7%
4th 13.30%
nd
2 20%
3rd 13.30%
Percentage
3rd 13.3%
2nd 20%
4th 13.3%
1st 46.70%
5th 6.7%
0.00% 20.00% 40.00% 60.00%
(Source: Primary)

In today’s world friends & family members have great influence over people’s choice of
particular things. Same is the case of choosing a Telecom operator. 46.7% people are highly
influenced by the suggestions of friends and family members. And only 6.7% respondents are
least affected by the Influence of friends and family members while shifting to another
network.

Table 10. V.A.S Percentage

Preference Percentage 50% 40%
1 st
40% 40%
30% 23.30% 26.70%
nd
2 23.3% 20% Percentage
10%
3rd 26.7% 10%
0%
4th 10% 1st 2nd 3rd 4th
(Source: Primary)

These days Value added services also play a great role in shifting of customers to another
network. As we have already discussed in Table 6. Regarding V.A.S. So here 40% people
are considering V.A.S as their first preference for shifting to another network. As these days a
no. of apps have been developed such as Music streaming , Live tv , E-Paper & E-Magazine
etc. So somehow these could also be the strong reasons for shifting of customers.
Conclusion

Based on the research work done it is concluded that most of the respondants (36.7%) are of
the age group 22-25 where as 26-30 and 18-21 have less no. of users (both 20%). And Airtel
is the most preferred by people of dera bassi area and Vodafone-Idea is least preferred.
People ranked 1 to their Phone network and 2nd to their Data service (3g/4g) as well as
Customer care and Value Added Services. We can say that all the respondents are satisfied
with their Service providers.

If we talk about factors responsible for Brand Switching in Telecom Industry are Better
network with 63.3% followed by Cheaper plans 50% , Influence by friends and family
members at 46.7% and Value Added Services as least @ 40%. It clearly means that
companies need to focus more on providing Better Network to customers.

Appendix

Questionnaire
Bibliography

 file:///C:/Users/hp/Downloads/Brand_Switching_Behavior_in_Indian_Wi
reless_Teleco.pdf (viewed on 11/03/2019)
 file:///C:/Users/hp/Downloads/A_Research_Seminar_Report_On_Factors
_Inf.pdf (viewed on 09/03/2019)
 file:///C:/Users/hp/Downloads/Brand%20switching%20in%20telecom%2
0industry.pdf (viewed on 09/03/2019)