Customer Perception and Satisfaction

7/29/2019 Customer Perception and Satisfaction

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CUSTOMER PERCEPTION AND SATI SFACTION

(A COMPARATIVE STUDY OF CELLULAR

SERVICES BSNL , AIRTEL. VODAFONE, IDEA)

IN CHANDIGARH.

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Submitted by:

Ravinder Vikram Chandel

MBA IV Semester

Roll No: 80911317044

Aryans Business School (ABS)

Nepra (Banur), Chandigarh-Patiala Highway

Near Chandigarh


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ARYANS BUSINESS SCHOOL 2

DECLARATION

Certified that I Ravinder vikram chandel of Master of Business

Administration (MBA) have prepared report titled Customer Perception

and Satisfaction (A comparative study of cell ul ar services BSNL, AI RTEL,

VODAFONE, IDEA in Chandigarhunder the guidance of Ms. Varinder

Kaur , in the partial fulfillment of the requirements for the degree of Master

of Business Administration. There by certify that no part of this report has

been submitted for any other degree.

Ravinder vikram chandel.

Roll No: 80911317044

MBA 4th Sem


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ACKNOWLEDGEMENT

I am thankful to Almighty who is most merciful & express my deep

sense of gratitude to my esteemed guide Ms. Varinder who helped me

throughout the course of study.I express thanks to other lecturers of

Management Dept. especially Mr.Duggal, who helped me in my endeavour

and clarifying my doubts.I am also thankful to my Parents who supported

me, encouraged me and helped in preparation of this report. Thanks to my

friends with whom I discussed my problems regarding preparation of report.

Last but not least, I can say that much, that all are not be mentioned but none

is forgotten.

Ravinder vikram chandel

Roll No: 80911317044

MBA 4th Sem.


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PREFACE

The Most motivating aspect associated with pursuing a course in

management or Business studies is the dynamism associated with it.

Dynamism of adding a new perspective to ones personality and vision by

accumulating wider knowledge, developing analytical skill not only by

traditional ways of teaching and learning but by observing thongs at works

. The project gives a considerable exposure to students and provides them

with an opportunity to see the practical aspects of corporate world.

The project is an opportunity to see the application part of what we

study or learn in classroom. Management is that function of an enterprise,

which concerns itself with the direction, and control of the various activities

to attain business objectives. It is the science and art of preparing,

organizing and directing human efforts to control the force and utilize the

materials of nature for the benefits of men. As a matter of fact, the

management thereby provides the scientific technique to deal with the

various problems in the areas of management and the manager mixes some

art to it tries to shorten the gap of ignorance. It provides a chain of solution

to critical problems of a manager.


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I have been given by final project on the topic Customer Perception

and Satisfaction A Comparative Study of Cellular Services (Vodafone,

Airtel, BSNL, Idea) in Chandigarh. The Technology that gives a person the

power to communicate anytime, anywherehas spawned an entire industry

is mobile telecommunication. Mobile telephones have become an integral

part of the growth, success and efficiency of any business / economy. It is

critical not only for the development of the information technology industry

but also has widespread ramifications on the entire economy of the country.


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CONTENTS

CHAPTER DESCRIPTION PAGE NO.

1 Introduction 9

1.2 Introduction to Cellular Service

(Telephone) Industry

14

1.3 Introduction About Four Cellular Services

providers (BSNL,AIRTEL, VODAFONE,

IDEA)

24

1.4 Introduction About the Customer

Perception and Satisfaction

36

2 Review of Literature 39

3 Research Methodology

3.1 Objectives of the study 41

3.2 Scope of the study 41

3.3 Need & Significance 41

3.4 Research Design 42

3.5 Limitations 44

Results & Discussions 46

Findings of the Survey 61

Suggestions for cellular service providers 65


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Conclusion 66

Bibliography 67

Annexure 68


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1.1 The Indian Telecom Industry

The telecom network in India is the fifth largest network in the world

Meeting up with global standards. Presently, the Indian telecom industry is

currently slated to an estimated contribution of nearly 1% to Indias GDP.

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 2009. According to Broadband Policy 2004,

Government of India aims at 9 million broadband connections and 18

million internet connections by 2009. 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


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month by 2009. 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

FIRST STEPS

The individual parts of the telephone were discovered and developed by

different people at different times. Someone needed to take all those

connections and draw them together into one working instrument. In the end

that someone was Alexander Graham Bell - but he only just won the race

Reis's telephone (1860) : the diaphragm man

Reis began work on the telephone in 1860, inspired by a French investigator

named Bourseul.


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Gray's telephone (1876) :

liquid transmitter of the microphone type developed by Gray.

The first telephonic sound (1875) : that elusive twang

One summer afternoon, as Bell was working in his workshop in Boston, he

heard an almost inaudible twanging sound from his prototype telephone - a

sort of crude harmonica with a clock-spring reed, a magnet and a wire. This

was connected to a similar device in another room where his assistant

Thomas Watson was working.

The first telephone call (1876) : "Mr. Watson, come

here, I want you"


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After hearing their telephone first transmit a sound in June 1875, Bell

and Watson spent the next 40 weeks making their telephone actually

speak. Finally, on March 10, 1876, Watson heard Bell's voice distinctly

in the receiver saying: "Mr Watson, come here, I want you.

The first telephones arrive in Britain (1877) : 'greatest by far

of all the marvels'

first pair of practical telephones seen in Great Britain arrived in July 1877,

brought here by William Preece, Chief Electrician of the Post Office. A few

months later, Bell's 'perfected' type of telephone was exhibited at another

meeting of the British Association in Plymouth.

Bell forms his company (1877) : but sales are slow ...

Within a year of making the first telephone call, Bell and his financial

backers - Thomas Sanders and Gardiner G Hubbard - had formed the Bell


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Telephone Company in the United States.

Bell's British company is founded (1878) : from south to

north


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1.2 I NTRODUCTION TO CELLULAR SERVICES INDUSTRY

Cellular Telephony / Service:

The technology that gives a person the power to communicate

anytime, anywhere has spawned an entire industry in mobile

telecommunication. Mobile telephones have become an integral part of the

growth, success and efficiency of any business / economy.

The most prevalent wireless standard in the world today, is GSM.

The GSM Association (Global System for Mobile Communications)

Was instituted in 1987 to promote and expedite the adoption, development

and deployment and evolution of the GSM stander for digital wireless

communications.

The GSM Association was formed as a result of a European

Community agreement on the need to common standards suitable for cross

border European mobile communications. Starting off primarily as a

European standard, the Grouped Special Mobile as it was then called, soon

came to represent the Global System for Mobile Communications as it

achieved the status of a world-wide standard. GSM is today, the worlds

leading digital standard accounting for 68.5% of the global digital wireless

market.


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The Indian Government when considering the introduction of cellular

services into the country, made a landmark decision to introduce the GSM

standard, leapfrogging obsolescent technologies / standards.

Although cellular licenses were made technology neutral in

September 1999, all the private operators are presently offering

only GSM based Mobile services. The new licensees for the 4th

cellular licenses that were awarded in July 2001 too, have opted

for GSM technology to offer their mobile services.

Cellular Industry in India

The Government of India recognizes that the provision of a world-

class telecommunications infrastructure and information is the key to rapid

Economic and social development of the country .It is critical not only for

the development of the Information Technology Industry, but also has

widespread ramifications on the entire economy of the country. It is also

anticipated that going forward, a major part of the GDP of the country would

be contributed by this sector. Accordingly, it is of vital importance to the

country that there be a comprehensive and forward looking


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telecommunications policy which creates an enabling framework for

development of this industry.

New Telephone Policy 1999

Telecommunications is now universally recognized as one of the prime

movers of the modem economy; hence its vital importance for a developing

country like India. The availability of adequate Infrastructure facilities are

critical for acceleration of the economic development of any country. In fact

international studies have established

That for every 1 % increase in tele-density, there is a 3 % increase in the

growth of GDP.

Accordingly, the Government of India has accorded the highest

priority to investment and development of the Telecommunications Sector.

Telecom requires very heavy investment and it was not possible for

the Indian Government to organize public funding of this sector on

such a massive scale. In fact the national telecom Policy 1994, Estimated a

resource gap of Rs. 23,000 crores to meet telecom Targets of the eighth five-

year plan of the Government of India (1992-1997).

It was for this reason to bridge the resource gap between Government

funding and the total projected funds requirement and to provide the


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additional resources to achieve the nations telecom targets that the

telecommunications sector was liberalized in 1992 And the Government

invited private sector participation in Telecommunications. Cellular mobile

services were one of the first areas to be opened unto private competition.

The whole country was divided into the 4 metropolitan cities and 19

telecom circles, which were roughly analogous with the States of India

Cellular Licenses were awarded to the private sector first in the

metropolitan cities of Delhi, Mumbai, Kolkata and Chennai in 1994 And

then in the 19- telecom circles in 1995.

The first metro cellular network started operating in August 1995 in

Calcutta. When cellular mobile services were first introduced in 1994 it was

as a duopoly (that is a maximum of two cellular mobile operators could be

licensed in each telecom circle), under a fixed license fee Regime and for a

license period of 10 years.

The initial response of the privates sector was very encouraging. The

attractiveness of the Indian market the low tele density. The high Latent

demand and a burgeoning middle class brought in some of the largest global

telecom players, foreign institutional investors and the major Indian

industrial houses to invest in telecom, especially the Indian cellular industry.


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Telecom proved to be a powerful attractor of foreign investment. The

cumulative FDI inflow into telecom since 1993 has exceeded Rs. 43,000

Million. Within telecom, the cellular industry has attracted most of the

foreign investment since 1993, accounting for Almost 50% of the FDI

inflow into telecom representing amongst the biggest investments in any one

sector in India. Annual foreign Investment in telecom increased steadily

from insignificant Rs. 20.6 Million in 1993 to Rs. 17,756.4 million in 1998.

However, the attractiveness of the Indian market did not last for very long,

as by 1997-98, the private cellular operators were confronted with a series of

problems that threatened their very viability and survival.

As a result of this, FDI inflow into telecom dropped sharply, declining

by almost 90 % to Rs. 2126.7 Million in 1999. This dropped further in Year

2000as until June 2000, only Rs. 918 Million had flown into the country.

One of the key responsible for the critical state of the Telecom sector &

consequently also the cellular industry was that liberalization / deregulation

was undertaken in an inverted manner vis--vis international practices and

generally accepted norms. Usually, tariff rebalancing, institution of precedes

deregulation a strong and independent regulator and only then is private

sector participation invited.


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In India, private sector participation was invited in 1992, the

Regulatory Authority was set up in 1997 and the tariff rebalancing

Exercise commenced in 1999 and is still far from complete. Further, even

when the regulatory authority was set up, there was considerable ambiguity

on its powers, which resulted in virtually each and every order of the

Authority being challenged by the Licensor / incumbent. The ambiguities

in the jurisdiction of TRAI Resulted in a limbo in the industry. Another

important factor was the basic approach of the Government towards

liberalization Consumer benefit was given the go-by and the telecom sector

was viewed as a revenue generator / cash cow for the Government

exchequer.NTP 94 was basically a good policy. It clearly identified that the

primary objective of the policy was to make available affordable telecom

services. However, in actual policy implementation, this key / fundamental

objective was disregarded. Licenses were granted through an auction

process and the enthusiastic private sector deluded by the seemingly huge

potential of the Indian market were lured into bidding exorbitant sums of

many for cellular licenses..

The huge licenses fees paid by the private operators resulted in a

high cost structure leading to un-affordable tariffs and lower growth of the

market. By end1998 the cellular industry was on the verge of bankruptcy


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and at that time it appeared that the liberalization dream was over & the

nightmare had begun. It was under the above circumstances that the

Government undertook a review of telecom policy & the role of the

regulatory authority. The result was NTP 99, which was announced in

March 1999 & the amendment of the TRAI Act in January 2000.

NTP 99 is an extremely forward-looking policy. It significantly changed

the dynamics of the Indian telecom industry as it not only replaced the high

cost fixed licensing regime with a lower cost licensing structure through

revenue sharing, but also provides for greater degree of competition and

more flexibility in choice of technologies. The amendments in the TRAI

Act resulted in a considerable strengthening of the Regulator & greater

clarity on its role and powers. It also put in place a separate dispute

settlement mechanism in the form of the Telecom Dispute Settlement and

Appellate Tribunal to expeditiously deal with and resolve issues relating to

the telecom sector.

Existing private cellular operators migrated to the new telecom policy

regime with from August 1999. There can be no doubt that migration to a

more beneficial regime translated into tangible consumer benefitslower

tariffs, greater subscriber uptake & increased coverage.


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Cellular tariffs have dropped by over 90% since May 1999a feat

unparalleled by any other sector or industry in India. The average airtime

tariff in Year 2001 was prevailing around Rs. 2 per minute as against the

peak ceiling tariff of Rs. 16.80 per minute when NTP 99 was announced.

Parallely, there has also been a significant drop in the cost of mobile

handsets. Cellular handsets that was available for around Rs. 25-30,000 in

the initial days of cellular have now dropped significantly, with a base level

handsets being available for as little as Rs. 2,000 upwards . This has come

about as a result of increases volumes and some degree of rationalization of

government levies.

As a result of improved affordability, there is an increased take-up of the

service and the cellular operators were able to venture into more and more

cities & towns of the country. In fact cellular services are now available in

almost 1400 cities & towns of India.

With the lower tariffs and increased coverage, there was also a resultant

increase in the number of cellular subscribers. The point of inflexion for

subscriber take- off is clearly post NTP99. From 1.2 Million subscribers in

April 1999, almost 2 million by April 2000 the number of cellular

subscribers has now grown to almost 6.5 million By the end of March 2002.


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By March 2001, the industry had invested nearly Rs.16,000 crores in

cellular infrastructure and it is estimated that these investments will grow to

Rs. 20,000 crores in the next 4-5 years.

The year 2001 also saw the entry of BSNL and MTNL as the third cellular

operators as had been mandated in NTP 99. Further, in July 2001, cellular

licenses were awarded to the 4th cellular operators in different telecom

circles. With this the number of cellular operators has gone up to 89 licenses.

As of March 2002, the Indian cellular mobile industry had 42 networks on

air, serving over 1400 towns and cities and covering thousands of villages

and serving almost 6.5 million subscribers across the country.

The quality of the services is widely accepted to be of international

standards and till date there has been no waiting period involved in availing

of these service. The cellular industry has been growing at an average rate of

85% per annum and it is hoped that the industry will be able to sustain this

growth in the coming years. The Working Group on the Telecom Sector set

up by the Government of India for the tenth five year plan, has estimated

that over the next five years, around 31.55 million cellular subscribers would

be added all over India. To achieve this growth; the Working Group has also

estimated that resources to the tune of about Rs.25, 240 crores will be

required over the next five years.


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However, to attract foreign investments into India, it is imperative to ensure

the predictability and stability of the policy and regulatory regime of the

country. Policy flip-flops & regulatory ambiguity have plagued the Indian

telecom sector since the introduction of privatization. This has had the

unhappy result of putting the entire sector into a state of limbo as investors

both foreign & domestic await clarity on the final direction that the policy

will take. In the meantime, foreign investors, who have not committed

themselves to the Indian market, will divert their interest & investment to

competing and more attractive FDI destinations.

Further for the industry to attract the requisite investment and to reach the

growth targets set for the tenth five-year plan, it is imperative that a few

crucial industry issues that have been plaguing the industry be resolved on

an urgent footing. This includes most importantly:The early resolution of

the dispute relating to the recent permission granted to fixed operators to

offer WLL based mobile services without a mobile license and under the

more advantageous terms of their fixed service license and the institution of

a formal interconnection agreement between the Cellular operators and the

fixed service providers especially the incumbent fixed service operators

BSNL and MTNL.


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1.3INTRODUCTION ABOUT FOUR CELLULAR SERVICE

PROVIDERS (BSNL, AIRTEL, VODAFONE, IDEA

BSNLBSNL is a corporation and was renamed Bharat Sanchar Nigam Limited

(BSNL).

On October 1, 2000 the Department of Telecom Operations, Government of

India became now Indias leading telecommunications company and the

largest public sector undertaking. It has a network of over 45 million lines

covering 5000 towns with over 35 million telephone connections. The state-

controlled BSNL operates basic, cellular (GSM and CDMA) mobile,

Internet and long distance services throughout India (except Delhi and

Mumbai). BSNL will be expanding the network in line with the Tenth Five-

Year Plan (1992-97). The aim is to provide a telephone density of 9.9 per

hundred by March 2007. BSNL, which became the third operator of GSM

mobile services in most circles, is now planning to overtake Bharti to

become the largest GSM operator in the country. BSNL is also the largest

operator in the Internet market, with a share of 21 per cent of the entire


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subscriber base.

VISIONTo become the largest telecom Service Provider in South east Asia.

MISSION

1. To provide world class State-of-art technology telecom services on

demand at affordable price.

2. To Provide world class telecom infrastructure to develop country's

economy

value added services are also available at very economical charges:

Voice Mail Service

Short Message Service (SMS)

Group Messaging

National and International Roaming

Call forwarding

Corporate Virtual Private Network

Call conferencing

Friend and Family Talk

Call waiting and Call holding facility
http://bsnl.co.in/service/mobile_vms.htmhttp://bsnl.co.in/service/mobile_vms.htmhttp://bsnl.co.in/service/mobile_sms.htmhttp://bsnl.co.in/service/mobile_sms.htmhttp://bsnl.co.in/service/mobile_roaming.htmhttp://bsnl.co.in/service/mobile_roaming.htmhttp://bsnl.co.in/service/mobile_cf.htmhttp://bsnl.co.in/service/mobile_cf.htmhttp://bsnl.co.in/service/mobile_cc.htmhttp://bsnl.co.in/service/mobile_cc.htmhttp://bsnl.co.in/service/mobile_cw.htmhttp://bsnl.co.in/service/mobile_cw.htmhttp://bsnl.co.in/service/mobile_cc.htmhttp://bsnl.co.in/service/mobile_cf.htmhttp://bsnl.co.in/service/mobile_roaming.htmhttp://bsnl.co.in/service/mobile_sms.htmhttp://bsnl.co.in/service/mobile_vms.htm


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In services like Prepaid cards, Universal Access No. split

charging, VPN etc

Wireless Application Protocol(WAP): Surf WAP enabled

websites on Internet using this service.

Unified Messaging Services: Integrate your Mobile phone with

the Internet and access your e-mails, faxes, voice mail etc on your

mobile phone.
http://bsnl.co.in/service/mobile_ums.htmhttp://bsnl.co.in/service/mobile_ums.htmhttp://bsnl.co.in/service/mobile_ums.htm


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VODAFONE

Vodafone's 1992 entry into the market, which at the time was an exclusive

monopoly of a public operator, radically changed the prevailing perception

of the cellular phone, up until then considered a status symbol or a tool

reserved for an elite with high purchasing power. Opposing that image,Vodafone introduced the concept of useful, accessible and adequate service

for the various Customers' communication needs. Vodafone was the main

development and growth engine of the Portuguese cellular market,

profoundly changing the mobile telecommunications' scene in Portugal.

Vodafone clearly stand out as the second national Telecommunications

operator. service Vodafone maintain their differentiation as the most

innovative and Customer oriented operator in Portugal developing useful

and competitive services, making available the best offer in the market.

Vodafone aim at creating a quality and value service offer of recognized

excellence. Vodafone position themselves as a communication, information

and entertainment operator, offering Customers a wide and complete range


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of services which help them to make the most of each moment.

Vodafone also provide complementary fixed services & also provide fixed

and Internet services aiming to meet their customers total communication

needs. Vodafone have an enlarged offer for all the market segments

perceived by Customers as the most valuable. With a core business in

cellular communications services, their vision is to be recognized as the best

Portuguese company leading the mobile communications development, thus

contributing to the well being of people, companies and the society in

general.

Vodafone is the worlds leading international mobile communications

company. It currently has equity interests in 27 countries across 5 continents

and 40 partner networks with over 289 million proportionate customers

worldwide. Vodafone has partnered with the Essar Group for the Indian

market.

Services

VOICE BASED

Voice mail

Dial in services (Dial a Pizza etc.)

Voice Response

SMS BASED


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Info messages

SMS Chat

Yahoo Email & Messenger access via SMS

M-Banking

Ring Tones and Logo downloads

Instant Messenger

BBC News

GPRS

MSN & Yahoo email

Content Portal

OTHERS

MMS

Fax & Data, CLIP, Call forward, CLIR, Prepaid Roaming,

Itemized billing,

Location based services

Unified messaging (UMS)

Content and Data Downloads

Offers News, Java games, logos, ringtones over GPRS in partnership with

MSN

Also in agreement with Yahoo India for basic content download


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SMS Polls on TV

Users can vote through SMS for polls organized by

Channels

Revenue sharing agreements with TV channels

Business Model and Revenue Sour ces

Mobile Banking

HDFC and Bank of Punjab customers can access their accounts by

SMS

E-Mail and communications

Users can access their office emails through GPRS or SMS

Hotmail and MSN Messenger

Yahoo email and Messenger

PUSH TO TALK over GPRS

IDEA

Indian regional operator IDEA Cellular Ltd. has a new ownership structure

and grand designs to become a national player, but in doing so is likely to

become a thorn in the side of Reliance Communications Ltd. IDEA operates

in eight telecom circles, or regions, in Western India, and has received


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additional GSM licenses to expand its network into three circles in Eastern

India -- the first phase of a major expansion plan that it intends to fund

through IPO, according to parent company Aditya Birla Group . IDEA

Services

VOICE BASED

Voice mail (Voice Courier)

Voice response

Dial and Buy

SMS BASED

Info messages

Chat SMS, GPRS and PC

Web and POP3 Email access

M-Banking

Ringtones and Logo downloads

Global and Group SMS

Language SMS

City Guide

GPRS

Surfing


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Content Downloads

OTHERS

MMS

Fax & Data, CLIP, Call forward, CLIR, Prepaid Roaming,

Itemised billing,


Offers News, Java games, logos, ringtones over GPRS


SMS Polls on TV

Users can vote through SMS for polls organized by TV Channels


Business Model and Revenue Sources

Mobile Banking

Missing

E-Mail and communications

Web Mail and POP3 Access through SMS

Prepaid recharging

In agreement with Banks for Prepaid recharging through ATMs or through

SMS (account debit)


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AIRTEL

AIRTEL A vibrant new world of unlimited opportunities. Where AIR

symbolizes a world of unlimited freedom to think to dream. and achieve.

Where TEL connotes new innovative yet simple ways to communicate

spontaneously, not just through the words but ideas, emotions and feelings.

Together they represent a sensitive, confident, symbol for those who believe

in true leadership.

Building Telecom... Building Relationships.

Bharti Tele-Ventures Limited, a part ofBharti Enterprises , is India's

leading provider of telecommunications services. The businesses at Bharti

Tele-Ventures have been structured into two main strategic business groups

- the Mobility Leaders business group and the Infotel Leaders business

group. The Mobility business group provides GSM mobile services across

India in twenty three telecom circles, while the Infotel business group
http://www.bharti.com/http://www.bharti.com/http://www.bharti.com/http://www.bharti.com/


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provides broadband & telephone services, long distance services and

enterprise services. All these services are provided under the Airtel brand.

GSM OPERATOR- BHARTI

Brand Name: AIRTEL

Network: GSM 900, 1800, GPRS, EDGE

Network Coverage: 17 Telecom circles

Subscriber base: 7,062,443 (May 2004)

Market Share: 26%

ARPU (Mar. 03-04): 8,4

Subscriptions: Post Paid, Pre Paid

Bharti was the first mobile operator operational in India. Indias first GSM

based

Phone call was made on Airtel network.

BHARTIServices

VOICE BASED

Voice mail

Dial a service

SMS BASED

Info messages

SMS Chat

Email access via SMS

Ringtones and Logo downloads

Instant Messenger

GPRS


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Mobile office

Content Portal

OTHERS

MMS

Fax & Data, CLIR, Prepaid Roaming,

Itemised billing,

Location based services


Offers Java games, logos, ring tones through their content portal


Advertising Campaigns

Latest movie ringtones, wallpapers available at their content portal

Hosting third party campaigns like Coke and Master Card

SMS Polls on TV

Users can vote through SMS for polls organized by TV Channels


Prepaid Recharging

Subscribers can recharge either at ATMs using their ATM cards Or

Direct debit facility with the subscribers bank account (SMS based

service)


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1.4INRODUCTION ABOUT CUSTOMER

PERCEPTION AND SATISFACTION

(A) Customer Perception:

Customer perception can be described as how we see the world

around us. Two individuals may be subject to the same stimulus under the

same conditions, but how each person recognizes them, selects them,

organizes them and interprets them is a highly individual process based on

each persons own needs, values and expectations. This variable has

influence on the perceptual process and the concept of perception has great

relevance to marketing.

In other words, perception is defined as the process by which an

individual selects, organizes and interprets stimuli into a meaningful and

coherent picture of the world. A stimulus is any unit of input to of our

senses. Examples of stimuli include products, packages, brand names,

advertisements and commercials. Sensory receptors are the human organs

(i.e. eyes, nose, ears, mouth, and skin) that receive sensory inputs. Their

sensory functions are to see, hear, smell, taste and feel. All of these

functions are called into play either singly or in combination in the

evaluation and use of most consumer products. The study of perception is


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largely the study of what we subconsciously add to or subtract from raw

sensory inputs to produce our own private picture of the world

(B) Customer Satisfaction

Satisfaction is a persons feeling of pleasure or disappointment

resulting from comparing a products perceived performance (or outcome) in

relation to his or her expectations.

Satisfaction is a function of perceived performance and expectations.

If the performance falls short of expectations. If the performance matches

the expectations, the customer is satisfied. If the performance exceeds

expectations, the customer is highly satisfied or delighted.

Many organizations are aiming for high satisfaction because

customers who are just satisfied still find it easy to switch when a better

comes along. Those who are higly satisfied are much less ready to switch.

High satisfaction or delight creates an emotional bond with the brand not

just a rational preference. The result is high consumer loyalty.


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2.1 REVIEW OF LITERATURE

1. There are five private service operators in each area, and an incumbent

state operator. Almost 80% of the cellular subscriber base belongs to the

pre-paid segment. The DoT has allowed cellular companies to buy rivals

within the same operating circle provided their combined market share

did not exceed 67 per cent. Previously, they were only allowed to buy

companies outside their circle. The Key players in the Telecom Market

are BSNL, Airtel,Vodafone and Idea. Few years back mobile connections

were not common among the people. But with the mobile revolution nowwe can find almost every one with mobile phone. Most of the population

prefer prepaid connections than postpaid connections. Most preferred

cellular company is Airtel.

2. Lowered call tariffs are a major industry growth driver. Wireless

Subscriber growth will continue around 10m users/year. India is primarily a

low priced handset market (100-150 Euro). Prepaid will continue to

dominate in both GSM and CDMA segments. Operators are experiencing

low ARPU because of lowered call tariffs, thus they are focusing upon

content aspect. Games and content should to be developed keeping local

trends and

tastes in mind.GPRS and MMS are here, but fail to gain subscribers as

compatible handsets are expensive. SMS based applications, services are

most successful so far. Internet penetration is low but the industry is growing

at a rapid pace. Broadband & Wi-Fi are here, but too expensive for general

public. Dial-in is the most preferred mode for internet access. To sell

services to Indian companies, you need a local contact.


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3.1 OBJECTIVES OF THE STUDY

The following are the objectives of the study:

To know the popularity of various cellular services & why?

To study the factors influencing the customers while purchasing

a particular service

To know the status of availability of services to the customers.

To study the present customers need of using cellular services.

To know the future customers shift from their service provider

to some other service provider.

3.2 SCOPE OF THE STUDY

The study is confined to Chandigarh and 200 persons were included

in the research including both who are using mobiles and who are not

using.

And under the categories that are using mobiles, both types of

customers i.e. Post-Paid & Pre-Paid customers will be included.

3.3 NEED AND SIGNIFICANCE

The Telecom Industry has been growing since few years with the entry of

many new players in the market Consumer can choose from a number of

service providers. The need of the study is to find out who are the major

service providers, which provider is preferred by the customers & also to get

awareness about various prospectus of the Telecom Companies. The study

will help the service provider to improve the quality of their service.


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RESEARCH METHODOLOGY

Research Methodology is the way to systematically solve a problem. The

methodology adopted in this study is explained below:

3.4 RESEARCH DESIGN

Research Design specifies the procedure for conducting & controlling the

research projects.

a) PROBLEM DEFINITION

In a competitive situation with multiple Cellular Services in the market, itis necessary to know the customers stand & their preference towards

various Cellular Services.

b) TYPE OF RESEARCH

This research is descriptive in nature. A descriptive research is one in

which state of affair is described as it exists at present. The researcher has

no control over variables.

3.5 RESEARCH PLAN

Research planning is the process of developing the most efficient plan for

gathering the needed information.

DATA SOURCE

The major source of data is Primary data.


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Primary data was collected with the help of questionnaires, which were

filled by personally visiting the customers.

QUESTIONNAIRE STRUCTURE

For the research multiple choice type & open ended type questions were

prepared to collect primary data from respondents.

SAMPLING PLAN

The plan includes the following:

1. SAMPLING UNITS:

Sampling units consists of all the customers who are using the services of

various Telecom Companies.

2. SAMPLE SIZE:

A sample size of 200 customers was considered.

3. SAMPLING TECHNIQUE:

Convenience sampling was used.

4. ANALYTICAL TOOLS

The various tools which were used in preparation of the project include

following;

Percentage

Pie charts

Ranking


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3.5 LI M I TATIONS:

In spite of my full efforts, I faced following limitations:

a) The time span was small/less so the sample size has to be limited.

b) Some customers were not ready to co-operate in a proper way to

give required information. Efforts were done to conceive them

c) Some bias information from customers could also be expected.


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RESULTS AND DISCUSSIONS

The Cellular Services for comparison are:

1. BSNL

2. AIRTEL

3. VODAFONE

4. IDEA

1: Are you using Cell ular Phone?

a) Yes b) No

Analysis:

77%

23%

Yes

No

Fig.

1.1


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The above chart shows from the sample the division of customers

using and not using cellular phones. It has been found majority of

people have liking towards cellular services.

2:If yes, from the following service providers whose service is being used

by you?

1. BSNL

2. AIRTEL

3. VODAFONE

4. IDEA

Analysis:

The above chart shows that out of the customers using cellular

service large number of people have faith and liking towards BSNL

followed by Airtel while Vodafone and Idea are slowly but surely

making there mark in the market.

Fig 1.2

32%

25%

23%

20%

BSNL

AIRTEL

VODAFONE

IDEA


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3: Are you a postpaid or prepaid user?

a) Prepaid

b) Postpaid

Fig. 1.3

Analysis:

The above BAR DIAGRAM shows the division of customers using

pre-paid card and post-paid billing connection for different cellular

services. It has been found from the above small sample that amongst

all these cellular operators people like prepaid service more than its

postpaid counterpart. Specific points of people that why they prefer tochoose the prepaid to the postpaid connection. The majority of them

answered two things:

0% 20% 40% 60% 80%

PREPAID

POSTPAID

Series1

.,


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1. That postpaid involves more file work and the getting connectionis involves paying security.

2. In prepaid customers know how much they have used after eachand every call.

4: If you are a prepaid user, is recharge card easily available to you?

a) Yesb)No

No

ANALYSIS

Customers with the majority of 73% get easily their recharge cards while

23% customers are notsatisfied.

5: Which of the following problems are you facing in case of your Prepaid

connection?

a) Uninformed deduction from the balanceb) Any other problemc) No problem at all

73%

27%

YES

NO

Fi . 1.4


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ANALYSIS:

It was analysed that 75% customers have their complaints regarding the

uninformed balance deduction,11.5% are facing the other problems like

regular calls from the call centers, sms like know about your partner,will you

get marry with your partner or not & 13.5% customers said that thay are not

facing any problem at all.

6: Which of the following problems are you facing in case of your post-paidbilling connection?

a) Bills not received at proper time/ proper addressb) Unawareness regarding extra/hidden charges included in billc) Any other problemd) No problem at all

0

20

40

6080

100

120

140

160

UNINFORMEDDEDUCTION

OTHERPROBLEM

NO PROBLEMAT ALL

150

23 27

Fig.2.1


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ANALYSIS

From the above pie chart it is clear that customers who are using post-paid

connection are facing the major problem of not receiving the bills in time &

proper address who are 44 %, followed by 27% of customers who have thecomplaints of extra/hidden charges in the bill,12% people are facing other

problems but apart from it 17% customers are there who are not facing any

problem at all.

7: In case of home(non-roaming) connection, who provides the better

service?

a) BSNLb) Vodafonec) Airteld) Idea

44%

27%

12%

17%

Bills not received

Unawareness

Any other problem

No problem at all

Fi . 2.2


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Analysis:

The network level in case of home / non-roaming connection is best in

BSNL followed by Airtel, Vodafone & Idea. The network level of BSNL in

rural areas is appreciable.

8: In case you are also availing the roaming facility, then which service

provider you prefer?

a) BSNLb) Airtelc) Vodafoned) Idea

44%

16%

27%

13%

BSNL

AIRTEL

VODA

IDEA

N,M.

Fig.2.3


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Analysis:

The network level in case of roaming connection is best in Airtel followed

by BSNL, Vodafone & Idea respectively.

9: Are the Value Added Service charges nominal?

Airtel BSNL Vodafone Idea

Yes

No

0

10

20

30

40

50

60

70

BSNL AIRTEL VODA IDEA

55

69

42

34

39%

24%

24%

13%

BSNL

AIRTEL

VODA

IDEA

Fig. 2.4

Fig. 3.1


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Analysis:

The overhead charges are considered as nominal by 39 % of the customers

in case of BSNL, by 24 % in case of Airtel, by 24% in case of Vodafone and

by 13% in case of IDEA. It shows that customers consider overhead charges

the most nominal one.

10: Do you get proper customer care support from your service provider?

a) Yesb)No

If no, mention the problem

_____________________________________________

75%

25%

YES

NO

Fi . 3.2


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ANALYSIS:

25% Customers denied that they are not getting proper customer care

support from their service provider but 75% customers were satisfied. Those

customers who were not satisfied majority of them were having the

complaint that the customer care keep them on waiting for a long time,

followed by the customers who were dissatisfied because of the rude

behaviour of the customer care and said they never fulfill their promises.

11: What amount of recharge card do you normally use?

a) 300 b) 500

c) 1000 d) > 1000

52%

24%

24%

Keep on waiting

Rude behaviour

Donot fullfill promises

Fig. 3.3


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ANALYSIS:

Majority of the customers prefer the recharge cards of amount Rs.300

followed by Rs.500,Rs. >100 & Rs. 1000 respectively.

12: Will you shift from existing cellular service provider to some other one?

a) Yes

b)No

If Yes,

From: To:

0

10

20

30

40

50

60

70

300 500 1000 >1000

Series1

Fig. 3.4


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ANALYSIS

22% Customers who are using the services from BSNL want to shift

some other service provider as they think std call rates are very high,19%

Vodafone customers want to shift as they think local call charges are high,

23% customers of idea cellular using want to shift as they think value added

services are not good, 16% Airtel users want to shift as they think that the

schemes are not good,, apart from this 20% customers are their who are

satisfied & are not going to shift.

13: How do you rank the following cellular service providers?

Excellent Good Average Not satisfactory

BSNL 23 15 12 05

VODAFONE 12 15 20 11

Idea 14 06 10 05

Airtel 25 12 10 10

22%

19%24%

16%

19%BSNL

VODAFONE

IDEA

AIRTEL

NO CHANGE

Fi .4.1


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ANALYSIS:

Majority of the customers are in the favour of AIRTEL as excellent followed

by BSNL,IDEA & VODAFONE respectively, BSNL & VODAFONE has

been ranked as good followed by AIRTEL & IDEA. In Average case more

customers ranked Vodafone as the average service provider followed by

BSNL, IDEA & AIRTEL. Maximum customers are not satisfied in case of

Vodafone, followed by Airtel, Vodafone & Idea.

14)Among the following factors, which influence you while Purchasing a

particular cellular service.

a) Cost/ Priceb) Free talk timec) Value added schemesd) Free SMS

60%15%

10% 15%cost/price

Free talk time

value added service

Free sms

Fi . 4.2


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ANALYSIS

While studying the various factors affecting the purchase of particular cellular

service, 60% of customers are giving cost/price the top priority , 15% to free

talk time, 15% & 10% to free sms & value added services respectively.

15: What suggestions would you like to give to the cellular service provider

whose connection you are using?

___________________________________________ ___________________________________________ ___________________________________________ ___________________________________________

ANALYSIS:

The suggestions which were given 16% people were saying that the networkproblem should get removed,36% customers were in favour of std charges as

the charges should be minimum, 18% customers were suggesting for freeroaming service & 30% customers were saying that the unnecessary calling

from customer care should be avoided.

16%

37%17%

30%Remove the network problem

Less Std charges

Free roaming facility

Avoid unnecessary calling

Fi . 4.3


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FINDINGS OF THE SURVEY

Regarding the preference for the recharge cards of different

denominations in case of prepaid card connections, it has been found that the

customers in case of all the cellular services mostly prefer recharge cards of

300, 500 & >1000 .

It has also been observed that 33 % customers have preference to 300

denomination cards, 27 % have preference to 500 denomination cards, 14%

have preference to 1000 denomination cards & 26% have preference to

>1000 denomination cards.

In case of recharge cards 73% customers are satisfied while the 27%

customers has been responded they do not get their recharge cards easily and

recharging of these cards takes long time in case of BSNL prepaid card

connections.

17% of the customers in case of post paid billing connection are not

facing any problems. The major problem which rest of the customers face is

lack of detailed billing and there are many hidden charges in the bill about

which customers are not aware.

The network level in case of home / non-roaming connection is best in

BSNL followed by Airtel, Vodafone & Idea. The network level of BSNL in

rural areas is appreciable.


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The network level in case of roaming connection is best in Airtel

followed by Bsnl , Vodafone & Idea respectively.

The overhead charges are considered as nominal by 39 % of the

customers in case of BSNL, by 24% in case of Airtel, by 24% in case of

Vodafone and by 13% in case of IDEA. It shows that customers consider

overhead charges the most nominal one.

Majority of the customers responded that they are getting the proper

customer care support while others were dissatisfied because of the rude

behaviour of the call attendants, they do not keep their promises and keep on

long waiting for their advertisement as what facilities they are providing,

some respondents also said that clearity of voice is not there while

communication.A large no of customers, which is 23% shifted in case of

IDEA and in case of BSNL which is 22% ,only 16% customers want to shift

in case of AIRTEL And in case of other service provider.

The reason for shifting from BSNL was due to non-VODAFONE 19%

customer want to shift to some availability of recharge cards and billing

problems. And in case of Airtel it was found that reason for shifting is

overhead charges. And in case of Hutch and IDEA it was due to coverage

range.


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When survey was done of 200 peoples than out of 200,23% people were not

using mobile phones. When asked from them that in future if they have to

use Mobile service then which company the will choose then it was found

that 7% persons will purchase BSNL connection,10% will get their

connection from AIRTEL,4% gave their choice towards VODAFONE and

2% shows their intention to purchase the IDEA connection.

Majority of the customers are price sensitive so the cellular service providers

should provide the services at low rates.


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SUGGESTIONS FOR CELLULAR SERVICE

PROVIDERS

1) More detailed billing should be provided to the customers in case of

BSNL.

2) When customers go to some dealer or service provider to get the

billing connection, he should be made aware about various types of

additional charges; he has to pay in future.

3) Network should be improved and made better in case of all the

cellular service provides.

4) Recharging of recharge cards in case of BSNL prepaid card

connection should be more quick

5) New connection should be made easily available as there is a lot of

demand in case of BSNL Subscribers

6) Customers should be not kept in long waiting, customers should not be

treated rudely and the promises made should be kept.

7) Std charges should get reduced and there should be no charges for

roaming.


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CONCLUSION

The Cellular Services are blooming day by day & the more competitors are

entering in this market continuously. So the existing players has to take care

of it as the customers are very sensitive to the better services.

As per the study done on the four major players of the cellular

players( BSNL, VODAFONE,AIRTEL,IDEA) in the chandigarh showed

that many customers are going to shift from the existing cellular service to

some other service provider as they are not satisfied with the service they are

using. Some customers are facing the network problem, some are not

satisfied with the facilities of the service provider and the other customers

want free roaming service & less Std charges. The recharge cards are not

easily available to some customers & most of the customers keep price

factor in consideration while purchasing a service. From the study it was

clear that maximum customers are satisfied with the Airtel & Bsnl.


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BIBLIOGRAPHY

BOOKS:

1. KOTLER PHILIP ,MARKETING MANAGEMENT

Prentice Hall of India Pvt Ltd, Millenium edition.

2. SHIFFMAN LEON G. CONSUMER BEHAVIOUR'

Prentice Hall of India 6th Edition

WEB SITES:

1. www.google.com

2. www. airetworld . com

3. www.bsnl. co. in

4. www.idea. com

5. www. vodafone . com

s
http://www.bsnl/http://www.idea/http://www.idea/http://www.bsnl/


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ANNEXURE

I am Ravinder vikram chandel pursuing MBA from ABS. I amdoing a project on

CUSTOMER PERCEPTION AND SATISFACTION (A

COMPARATIVE

STUDY OF CELLULAR SERVICES BSNL , AI RTEL. HUTCH, IDEA)

IN

CHANDIGARH

Please help me while filling this questionnaire & providing me the

required information.

Name__________________

Designation_____________

Phone no:_______________

1: Are you using Cellular Phone?a) Yesb) No

2: If yes, from the following service providers whose service is being usedby you?

a) BSNLb) Vodafonec) Idead) Airtel

3 : Are you a postpaid or prepaid user?

a) Prepaidb) Postpaid

4: If you are a prepaid user, is recharge card easily available to you?

c) Yes


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d) No

5: Which of the following problems are you facing in case of your prepaid

connection?

d) Uninformed deduction from the balancee) Any other problemf) No problem at all

6: Which of the following problems are you facing in case of your post-

paid billing connection?

d) Bills not received at proper time/ proper addresse) Unawareness regarding extra/hidden charges included in billf) Any other problem

d) No problem at all

7: In case of home(non-roaming) connection, who provides the better

service?

e) BSNLf) Vodafoneg) Airtelh) Idea

8: In case you are also availing the roaming facility, then which service

provider you prefer?e) BSNLf) Airtelg) Vodafoneh) Idea

9: Are the Value Added Service charges nominal?

Airtel BSNL Vodafone Idea

Yes

No


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10: Do you get proper customer care support from your service provider?

c) Yesd)No

If no, mention the problem

_____________________________________________

_____________________________________________11: What amount of recharge card do you normally use?

a) 300 b) 500

c) 1000 d) > 1000

12: Will you shift from existing cellular service provider to some other one?

c) Yesd)No

If From: To:

13: How do you rank the following cellular service providers?

Excellent Good Average Not satisfactory

BSNLVodafone

Idea

Airtel

14:Among the following factors, which influence you while Purchasing a

particular cellular service.

e) Cost/ Price

f) Free talk timeg) Value added schemesh) Free SMS

15: What suggestions would you like to give to the cellular service providerwhose connection you are using?


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Customer Perception and Satisfaction

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