WEST BENGAL UNIVERSITY OF TECHNOLOGY A SUMMER TRAINING REPORT ON CONSUMER BUYING BEHAVIOUR WITH A FOCUS ON PERCEPTION TOWARDS INTERNET DATA CARD WITH SPECIAL REFERENCE TO VODAFONE FROM, (20th June,2009-5thAugust, 2009) SUBMITTED BY ARPITA TEWARY WBUT Regn no. 081670710019 WBUT Roll no. 08167009061 Major: Marketing Management Minor: Human Resource Management 1
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WEST BENGAL UNIVERSITY OF TECHNOLOGY
A SUMMER TRAINING REPORTON
CONSUMER BUYING BEHAVIOUR WITH A FOCUS ONPERCEPTION TOWARDS INTERNET DATA CARD
WITH SPECIAL REFERENCE TO VODAFONE
FROM,
(20th June,2009-5thAugust, 2009)
SUBMITTED BYARPITA TEWARY
WBUT Regn no. 081670710019WBUT Roll no. 08167009061
Major: Marketing ManagementMinor: Human Resource Management
MANAGEMENT INSTITUTE OF DURGAPURRAJBANDH
1
ACKNOWLEDGEMENTS
First of all I would like to thank the Management at Vodafone for giving me the
opportunity to do my two month project training in their esteemed organization. I
am highly obliged to the marketing manager at vodafone. I would like to express
my gratitude to area Sales Manager, who has provided me with guidance,
inspiration, perspective and stimulating discussion, throughout the writing of this
report. His constant review and excellent suggestions throughout the project are
highly commendable. A study like this cannot be completed without help of other
persons. And therefore I would like to express my gratitude to provide me crucial
guidance in the analytical part of this Project. My heartfelt thanks goes to Mr.
Koushik. Mukherjee (sales manager) and to all the executives who helped me gain
knowledge about the actual working and the processes involved in various
departments. I would like to express my heartfelt thanks to the director of MID,
Dr. N.C. Ghosh & also to our principal, Dr. A.K. Ghosh. I would like to express
my gratitude towards our H.O.D. Mr. B.Chandra who had helped me lot in
preparing this project report. I would like to forward my gratitude to my internal
guide Mr. Avijit Aditya & to all the marketing faculties of MID, Rajbandh .
Finally, I would like to convey my gratitude to my friends & family members &
other faculty members who always endured me and stood with me and without
whom I could not have envisaged the completion of my project.
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Students’ Declaration
I, Ms Arpita Tewary. hereby declare that the Project Work titled Consumer Buying
Behavior with a focus on perception towards internet data card is the original work
done by me and submitted to the MID, Rajbandh, Durgapur in partial fulfillment of
requirements for the award of Masters in Business Administration with major
Subject as Marketing Management and Minor subject as Human Resource
Management is a record of original work done by me under the supervision of Mr.
Avijit. Aditya (MID faculty).
Date:
Signature of the student
3
EXECUTIVE SUMMARY
Growth on the Data Cards. Especially happen when business travelers,
academicians as well as other professionals need to access emails and corporate
applications as well as personal requirements during urgent trips and travels. Now,
what kind of a company enters an industry with competitors already entrenched?
Which ones actually succeed? The answer to both the questions is VODAFONE
ESSAR, which is now known as VODAFONE. It is a confident and smart
company that was able to enter a saturated and highly competitive industry, and
emerge at the top. The project aims to identify the problems faced by Vodafone in
the internet data card market. Customers often feel that service providers do not
deliver what they promise. They feel players should present the terms and
conditions and tariff plans/schemes in clear terms. The research we conducted also
supports this fact. We have suggested a marketing plan for Vodafone data card
along with other suggestions for VODAFONE to face the competition in the near
future and the long run.
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ContentsPg. no.
1. About Vodafone……………………………………………………..2. Introduction of project………………………………………………3. Litrature Survey………………………………………………………..
Chapter 1: Experts views on Indian Telecom Sector………………….Chapter 2: An overview of internet and wireless connectivity………..Chapter 3: Telecom Sector-An Outlook……………………………….
3.1 Industry Analysis……………………………………………3.2 About Internet Data Cards………………………………….
Chapter 4: Consumer behavior towards Internet data Card
When consumer purchase internet data card they still perform a similar sequence
of tasks: searching for information about different products, evaluating these
alternatives, and transacting the chosen alternative. However, the family and
friends has great impact on these activities.
Problem recognition:
The starting point is feeling the need or recognition of a problem. The need for
accessing internet at anywhere can trigger the recognition of a need or problem and
can have significant impact by encouraging customers to begin the information
search process (Breitenbach and van Doren, 1998).
Information Search:
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Once customers identify the need they may seek information about retailers or
products to help them satisfy. Customer search regarding internet data card could
be limited because it’s a specialty product. Our analysis has shown that in terms of
internet data card customer mostly refer to family and friend as reference group.
These reference groups affect buying decision offering information like price, tariff
plan availability and so forth. Providing rewards for specific purchasing behaviors
for instance friends could appreciate that you could access internet at anywhere if
you are carrying a laptop. By identifying and affiliating with reference groups,
consumers create, enhance, and maintain their self-image. Customers who want to
create an image of mobile, technologically updated person as well as want to be
seen as members of a higher social class might buy internet data card from
Reliance or other competitor’s products.
Product Evaluation:
During this stage, consumers process different product information and make a
final value judgment. The multi attribute model provides a useful way for
summarizing how customers use the information they have about alternative
brands of internet data card. From our consumer behaviour analysis we have found
out that on this stage customer evaluate data card on its several attributes like price,
net speed, tariff plan which come along with, looks etc and they also decide which
attributes are most important for them. The multiattribute model shows that how a
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consumer gives weights of importance to the various attributes of a data card. A
sample multiattribute model which is actually has been taken from one of our
questionnaire shown that how a consumer gives importance to different product
attributes of data card.
No. Attributes/Benefits Rating
1. Price
2. User friendly
3. Net Speed
4. Installation
5. Durability
6. Tariff plan
7. After sales service
Total evaluation score for each attributes is 5.From the above sample table we can
see that consumer is giving more importance to net speed and signal strength. So
marketer should put more focus of highlighting these two attributes
Purchase Activity:
Its not necessary that customer will always purchase a brand or data card with
evaluation. The data card offering benefits (having the highest evaluation) may not
be available in the store, or the customer may feel that the risks outweigh the
potential. During purchasing customer also may feel that their data card might not
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be able to meet their expectations. Therefore retailer should ensure that their sales
persons are knowledgeable enough and they are also skilled presenter of their
product, otherwise it could raise confusion in customers’ mind during purchasing
of data card. Reducing the actual and perceived time of purchasing.
Post Purchase Activities:
As we know buying process doesn’t end when a customer purchase a product.
From focus group interviews we have come to know that after making a purchase
of data card, customer evaluate their experience on the basis of net speed, signal
strength amount of money they have spent. Customers often feel that service
providers do not deliver what they promise. They feel players should present the
terms and conditions and tariff plans/schemes in clear terms. Mentioning every
small detail regarding the tariff plans must be included in the bill. For example, if a
company intends to collect an advanced monthly rental from customers, then it has
to mention that in its tariff plan, so that customers are not shocked when they see a
bill that includes monthly advance rentals as well. This kind of practice might keep
customers away from going for a particular brand.
Perceived benefits of Internet data card
Among the process there are various factors that might influence consumers
purchase during their purchasing process. Many of these factors also reflect the
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advantages and disadvantages of Internet as a shopping medium. The advantages
or benefits currently conceived by people are described as the followings.
Convenience:
From our questionnaire survey and focus group discussion we have come to know
that when a customer thinks to purchase a data card for accessing internet they
mostly its convenient to access internet at any where at any time. Especially those
who have to extensively traveling its quite convenient for them to get connected
with World Wide Web!
Time saving:
Some time data card also proves time saving from the customers especially for
business executives who have to travel extensively due to their job purpose. If they
are using a data card for accessing internet they don’t have to find out a cyber café
at an unknown place.
Economical:
From our secondary research we have found that for younger group of consumers
(age group of 18-28) who generally spend a lot of time for downloading different
kind of materials like music, picture, data, due to availability of some attractive
tariff plans offered by the different players along with their respective data cards,
its seems a must have utility device for all young laptop users.
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DRAWBACKS.
Perceived risk of Internet data card
Perceived risk can be defined as the uncertainty that consumers face when they
cannot foresee the consequences of their purchase decision. Customer perception
of risk varies depending on individuals, situation and product. The degree of risk
that consumers perceive and their own tolerance for risk taking,are factors that
influence their purchase strategy (Schiffman and Kanuk, 2000).Individuals tend to
reduce perceived risk to some acceptable level in any given purchase situation.
Risks of internet connection speed:
Internet connection speed refers to the data transfer rate from the Internet to our
computer. Basically that means the amount of time it takes our computer to
download a given amount of data. Internet connection speeds are usually measured
in Kbps (kilobits per second, or thousands of bits per second) or KBps(kilobytes
per second).According to our study, consumers already have a predisposition that
data card do not provide good internet connection speed, so during products
evaluations and purchasing activities they mostly think about product attributes
e.g. internet connection speed, signal strength. Therefore here implication for
management is during product evaluation; purchase activities, retailers must take
some necessary measures to reduce the uncertainty in the customer mind by
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aggressive promotional strategies, especially focusing on innovating below the line
(BTL) marketing activities, giving excellent product demonstrations during
purchase and most importantly reducing the cognitive dissonance during post
purchase behaviour by giving enough assurance about product qualities, warranty
as well as excellent after sale service.
Research Methodology
Chapter 1: Data Collection There are two types of data; primary and secondary data.Primary dataIn this project work primary data has been collected by:
Interviews with employees working at Vodafone people for collecting of background information such as products explanation; market situation in asansol, durgapur and burdwan and contact information for distributors.
Discussions have been done with Vodafone representatives in the investigated markets to apply information and further discussions after the questionnaires.
Questionnaires have been done on several respondents in the local area and perception about the data card were collected. Several tele-callings were done to gather information an about the data card after they had used it . The questionnaires are used to get exactly and comparable answers in questions.
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Primary data has given answer in following questions in each of the studied markets:
Competitors name and position
Customers
Marketing methods used by different data card providers
Number of people having laptop or PC
Number of people using internet.
Average monthly usage of internet
Monthly expenditure of internet of the people.
Number of different occupation & age category using internet
Number of people aware about the data card
Number of data card users
Number of people favouring different categories of data card.
Number of people aware about the vodafone data card.
Purpose of using internet.
Secondary data Review of literatures are used to get relevant theories . Printed literatures are
articles and books in telecom sectors providing data card .
Homepages are used for information about competitors. The information about the different product launched by different players along with their tarrif plans, cost ,etc. were collected from different websites.
Secondary data has given answer in following questions in each of the studied markets:
Information about competitors
Information about marketing methods
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Different statistical models used.Z TESTCHI-SQUARE.
Data Analysis
Chapter 1: Brand RecallA sample of customers, which is representative of the Durgapur, Asansol and
Burdwan population, was surveyed and unaided recall of the brands by these
customers was recorded. It was observed that Reliance data cards had the highest
brand recall amongst all the brand of Internet data card. This can be attributed to
various reasons like brand perception, usage pattern, advertisement expenditure
etc. The survey administered had questions which measured the importance of
various attributes like price, net speed, signal strength, offers & discounts of
various data cards and specifically for Vodafone data card.
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Chapter 2: Development of Hypothesis and Testing
Development of Hypothesis
1. Hypothesis
Price is an important factor that governs the buying behaviour of the
customers while making purchase of data card.
Null Hypothesis H0: Price plays an insignificant role in purchase of data
card.
Alternative Hypothesis H1 : Price plays a significant role in the purchase of
data card.
This hypothetical statement is drawn from question no. 12(in likert scale of
1-5) from the questionnaire of annexure 1. To test this hypothesis the
researcher has done z-test (two-tailed test) and the inference drawn from the
hypothesis is stated below.
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INFERENCE: The observed value of the test statistic Z is 10.55 but at the
critical region the value of Z at 5% level of significance is I Z I ≥ 1.96.
Therefore, the observed value of Z does not lie in the critical region so
therefore we reject the null hypothesis and conclude that price plays a
significant role in the purchase of data card.
Mathematically:
z = x̄ - µ/S.E of x̄, where S.E of x̄ = σ/√n
The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no
response)
Then the Alternative Hypothesis H1 : µ ≠ 3
= 3.76 – 3/0.07 = 10.55
Since I Z I = 10.55 > 1.96, hence H0 = Rejected.
Price of the data card: In this research, it is discovered that price of the
Data card is playing an important role in the purchase decision of the
customer; Data cards with high prices are less preferred. BSNL is the only
company in the market, which is providing Data cards on rental basis, and it
is one of the main reasons behind BSNL’s success. Reliance
Communication and Tata Indicom is also providing data cards at cheaper
rates. Normal Data cards ranges from Rs 2000 to Rs 3000 and 3G,
Broadband Data cards range starts from Rs 3500 onwards.
2. Hypothesis:
Installation of the data card plays an important role in the purchase decision
of the data card.
Null Hypothesis H0 = Installation of the data card plays an insignificant role
in the purchase decision of data card.
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Alternative Hypothesis H1 = Installation of the data card plays a significant
role in the purchase decision of data card.
This hypothetical statement is drawn from question no. 12(in likert scale of
1-5) from the questionnaire of annexure 1. To test this hypothesis the
researcher has done z-test (two-tailed test) and the inference drawn from the
hypothesis is stated below.
INFERENCE: The observed value of the test statistic Z is 10.81 but at the
critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So,
the observed value of Z does not lie in the critical region so therefore we
reject the null hypothesis and conclude that price plays a significant role in
the purchase of data card.
Mathematically:
z = x̄ - µ/S.E of x̄, where S.E of x̄ = σ/√n
The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no
response)
Then the Alternative Hypothesis H1 : µ ≠ 3
= 3.8 – 3/0.074 = 10.81
Since I Z I = 10.81 > 1.96, hence H0 = Rejected.
Installation process: The installation process of data card should be simple
and can be easily understood by the user, because the user is the one who is
going to operate it with the machine, and if it is a complicated process then
user might think for other options. A user wants simplest process to get
connected with the internet, just plug in the data card and connect, if he/she
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needs to install some special software’s in the PC or Laptop for using the
data card, it is not possible for everyone to handle this installation process,
so installation process plays an pivotal role in the purchase decision.
3. Hypothesis:Durability of the Data card plays influential role in the purchase decision of
data card.
Null Hypothesis H0 = Durability of the data card plays an insignificant role
in the purchase of Data card.
Alternative Hypothesis H1 = Durability of the Data card plays a significance
role in the purchase of Data card.
This hypothetical statement is drawn from question no. 12(in likert scale of
1-5) from the questionnaire of annexure 1. To test this hypothesis the
researcher has done z-test (two-tailed test) and the inference drawn from the
hypothesis is stated below.
INFERENCE: The observed value of the test statistic Z is 12.32 but at the
critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So,
the observed value of Z does not lie in the critical region so therefore we
reject the null hypothesis and conclude that durability of the data card plays
a significant role in the purchase of data card.
Mathematically:
z = x̄ - µ/S.E of x̄, where S.E of x̄ = σ/√n
The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no
response)
Then the Alternative Hypothesis H1 : µ ≠ 3
= 3.9 – 3/0.073 = 12.32
Since I Z I = 12.32 > 1.96, hence H0 = Rejected.
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Durability: Purchasing a Data card is mostly a long-term investment, so a
Data must have to be durable enough to meet the requirements of the user. A
Data card should not get over heated while in use, should be made up of un-
breakable plastic are some features of durable Data card.
4. Hypothesis
User friendliness of the data card plays an important role in the purchasing
decision of data cards.
Null Hypothesis H0 = User friendliness of the data card plays an
insignificant role in the purchase of Data card.
Alternative Hypothesis H1 = User friendliness of the data card plays a
significance role in the purchase of Data card.
This hypothetical statement is drawn from question no. 12(in likert scale of
1-5) from the questionnaire of annexure 1. To test this hypothesis the
researcher has done z-test (two-tailed test) and the inference drawn from the
hypothesis is stated below.
INFERENCE: The observed value of the test statistic Z is 18 but at the
critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So,
the observed value of Z does not lie in the critical region so therefore we
reject the null hypothesis and conclude that user friendliness of the data
card plays a significant role in the purchase of data card.
Mathematically:
z = x̄ - µ/S.E of x̄, where S.E of x̄ = σ/√n
The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no
response)
Then the Alternative Hypothesis H1 : µ ≠ 3
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= 4.8 – 3/0.6 = 18
Since I Z I = 18 > 1.96, hence H0 = Rejected.
User Friendly: A Data should be user friendly in operations. Apart from
connecting internet, Data cards comes with multiple features such as
receiving and sending SMS, making and receiving voice calls, etc, so all
these functions should be easy to operate, if it is little complicated it
becomes a hassle for the user and ultimately affects the purchasing decision.
5. Hypothesis
Tarrif plans offered by the service providers of the data card play an
influential role in the consumer buying behavior.
Null Hypothesis H0 = Tariff plans of the data card plays an insignificant role
in the purchase of Data card.
Alternative Hypothesis H1 = Tarrif plans of the data card plays a significance
role in the purchase of Data card.
This hypothetical statement is drawn from question no. 12(in likert scale of
1-5) from the questionnaire of annexure 1. To test this hypothesis the
researcher has done z-test (two-tailed test) and the inference drawn from the
hypothesis is stated below.
INFERENCE: The observed value of the test statistic Z is 11.91 but at the
critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So,
the observed value of Z does not lie in the critical region so therefore we
reject the null hypothesis and conclude that user friendliness of the data
card plays a significant role in the purchase of data card.
Mathematically:
z = x̄ - µ/S.E of x̄, where S.E of x̄ = σ/√n
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The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no
response)
Then the Alternative Hypothesis H1 : µ ≠ 3
= 3.81 – 3/0.068 = 11.91
Since I Z I = 11.91 > 1.96, hence H0 = Rejected.
Tariff Plans: Apart from the price of the Data, card how much the internet
service is costing to the pocket of the user is very important factor in the
purchase of any Data card. A internet user wants tariff plans which fits into
his/her budget and fulfills all the other requirements. Again BSNL is the
market leader in this segment with cheapest tariff plans and after that
Reliance and Tata Indicom comes.
6. Hypothesis
Speed of the data card plays a pivotal role in the purchase decision of data
card.
Null Hypothesis H0 = speed of the data card plays an insignificant role in
the purchase of Data card.
Alternative Hypothesis H1 = speed of the data card plays a significance role
in the purchase of Data card.
This hypothetical statement is drawn from question no. 12(in likert scale of
1-5) from the questionnaire of annexure 1. To test this hypothesis the
researcher has done z-test (two-tailed test) and the inference drawn from the
hypothesis is stated below.
INFERENCE: The observed value of the test statistic Z is 18.66 but at the
critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So,
the observed value of Z does not lie in the critical region so therefore we
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reject the null hypothesis and conclude that speed of the data card plays a
significant role in the purchase of data card.
Mathematically:
z = x̄ - µ/S.E of x̄, where S.E of x̄ = σ/√n
The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no
response)
Then the Alternative Hypothesis H1 : µ ≠ 3
= 4.12 – 3/0.06 = 18.66
Since I Z I = 18.66 > 1.96, hence H0 = Rejected.
Net Speed: The internet speed is very important for the users and slow
internet is not at all preferred in our fast moving lives. With the introduction
of Broadband and 3G in the market of Data cards, the competition has got
even tougher. Customers prefers internet with good downloading speed.
7. Hypothesis
After sales service provided by the service providers plays a significant role
in the purchase decision of data cards.
Null Hypothesis H0 = After sales service of the data card plays an
insignificant role in the purchase of Data card.
Alternative Hypothesis H1 = After sales service of the data card plays a
significance role in the purchase of Data card.
This hypothetical statement is drawn from question no. 12(in likert scale of
1-5) from the questionnaire of annexure 1. To test this hypothesis the
researcher has done z-test (two-tailed test) and the inference drawn from the
hypothesis is stated below.
INFERENCE: The observed value of the test statistic Z is 6.25 but at the
critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So,
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the observed value of Z does not lie in the critical region so therefore we
reject the null hypothesis and conclude that after sales service of the data
card plays a significant role in the purchase of data card.
Mathematically:
z = x̄ - µ/S.E of x̄, where S.E of x̄ = σ/√n
The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no
response)
Then the Alternative Hypothesis H1 : µ ≠ 3
= 3.50 – 3/0.08 = 6.25
Since I Z I = 6.25 > 1.96, hence H0 = Rejected.
After Sale Service: After sales service like sending bills on time, keep the
customers updated with the new developments in different areas etc
improves the chances of increasing the sale of data card, and plays an
important role in the purchase decision of the customer also.
8. Hypothesis
Image of the company in the minds of the customers plays a vital role in the
purchase decision of data card.
Null Hypothesis H0 = mage of the company of the data card plays an
insignificant role in the purchase of Data card.
Alternative Hypothesis H1 = Image of the company of the data card plays a
significance role in the purchase of Data card.
This hypothetical statement is drawn from question no. 12(in likert scale of
1-5) from the questionnaire of annexure 1. To test this hypothesis the
researcher has done z-test (two-tailed test) and the inference drawn from the
hypothesis is stated below.
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INFERENCE: The observed value of the test statistic Z is but 3.87 at the
critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So,
the observed value of Z does not lie in the critical region so therefore we
reject the null hypothesis and conclude that image of the company of the
data card plays a significant role in the purchase of data card.
Mathematically:
z = x̄ - µ/S.E of x̄, where S.E of x̄ = σ/√n
The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no
response)
Then the Alternative Hypothesis H1 : µ ≠ 3
= 3.31 – 3/0.08 = 3.87
Since I Z I = 3.87 > 1.96, hence H0 = Rejected.
Image of the company: The goodwill created in the market through years
of providing superior service quality helps the company to sale its products,
because it’s the image of the company in the minds of the customer who is
going to purchase the data card. If the brand is trusted in the market, it
makes a positive impact on the purchase decision.
Analysis of the factors affecting the buying behaviour of DATA CARD SIGNIFICANT TEST [ASYMMETRY TWO TAILED] Statement of Hypothesis
Sample mean (x ̄)
Standard deviationOf theSample (σ x̄)
Test statistic. Applied Z TEST( two tailed) (Zobserved)
Zcriticalα=0.05
HypothesisStatus
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H1 = Price plays a pivotal role in the purchase of data card
3.76 0.07 10.55 1.96 H0 REJECTED
H2= Installation of the data card is an important factor in the purchasing of datacard
3.8 0.074 10.81 1.96 H0REJECTED
H3= Durability of the data card plays an influencial role in the buying of data card
3.9 0.073 12.32 1.96H0REJECTED
H4 = User friendliness of the data card plays an important role in the purchasing of data card
4.08 0.06 18 1.96 H0REJECTED
H5 = Tarrif plans of the data card plays an infuencial role in the consumer buying behaviour
3.81 0.068 11.91 1.96 H0REJECTED
H6 =Speed of the data card plays an important role in the purchase of data card
4.12 0.06 18.66 1.96 H0REJECTED
H7 =After sales service plays an significant role in the purchase of data card
3.50 0.08 6.25 1.96 H0 REJECTED
H8 =Image of the company plays a vital role in the purchase of data card.
3.31 0.08 3.87 1.96 H0REJECTED
9. Hypothesis:
High phone book memory in data cards is an essential feature of the Data
card for the consumers purchasing descision.
Null Hypothesis H0 = High phone book memory makes a heavy influence in
the buying behaviour of the data card.
Alternative Hypothesis H1 = High phone book memory does makes any
influence in the buying behaviour of Data card.
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This hypothetical statement is drawn from question no. 14(in likert scale of
1-5) from the questionnaire of annexure 1. To test this hypothesis the
researcher has done z-test (two-tailed test) and the inference drawn from the
hypothesis is stated below.
INFERENCE: The observed value of the test statistic Z is 0.09. At the
critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So,
the observed value of Z lie in the critical region so therefore we accept the
null hypothesis and conclude that high phone book memory is an essential
feature in the buying behaviour of Data card.
Mathematically:
z = x̄ - µ/S.E of x̄, where S.E of x̄ = σ/√n
The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no
response)
Then the Alternative Hypothesis H1 : µ ≠ 3
= 3.02 – 3/0.22 = 0.09
Since I Z I = 0.09 < 1.96, hence H0 = Accepted.
10. Hypothesis
Micro SD card slot in the data card is an essential feature of data card, which
makes an influence in purchase of Data card.
Null Hypothesis H0 = Miro SD card slot plays a significance role in the
purchase of the data card.
Alternative Hypothesis H1 = Micro SD card slot plays an insignificant role in
the purchase of Data card.
This hypothetical statement is drawn from question no. 14(in likert scale of
1-5) from the questionnaire of annexure 1. To test this hypothesis the
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researcher has done z-test (two-tailed test) and the inference drawn from the
hypothesis is stated below.
INFERENCE: The observed value of the test statistic Z is 1.06 .At the
critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So,
the observed value of Z lies in the critical region so therefore we accept the
null hypothesis and conclude that Micro SD card slot plays a significance
role in the purchase of the data card.
Mathematically:
z = x̄ - µ/S.E of x̄, where S.E of x̄ = σ/√n
The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no
response)
Then the Alternative Hypothesis H1 : µ ≠ 3
= 3.18 – 3/0.169 = 1.06
Since I Z I = 1.06 < 1.96, hence H0 = Accepted.
11. Hypothesis
High storage capacity & supporting SMS facility in a data card plays an
important role in the purchase of Data card.
Null Hypothesis H0 = High storage capacity & supporting SMS plays a
significance role in the purchase of the data card.
Alternative Hypothesis H1 = High storage capacity & supporting SMS plays
a insignificant role in the purchase of Data card.
This hypothetical statement is drawn from question no. 14(in likert scale of
1-5) from the questionnaire of annexure 1. To test this hypothesis the
researcher has done z-test (two-tailed test) and the inference drawn from the
hypothesis is stated below.
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INFERENCE: The observed value of the test statistic Z is 1.41. At the
critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So,
the observed value of Z lie in the critical region so therefore we accept the
null hypothesis and conclude that High storage capacity & supporting SMS
facility is an essential feature which plays an essential role in the purchase of
Data card.
Mathematically:
z = x̄ - µ/S.E of x̄, where S.E of x̄ = σ/√n
The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no
response)
Then the Alternative Hypothesis H1 : µ ≠ 3
= 3.24 – 3/0.17 = 1.41
Since I Z I = 1.41 < 1.96, hence H0 = Accepted.
12.Hypothesis
Making calls & receiving calls is an essential feature of the Data card and
plays an important role in the purchase of the Data card.
Null Hypothesis H0 = Making calls & receiving calls feature of the Data card
plays a significance role in the purchase of the data card.
Alternative Hypothesis H1 = Making calls & receiving calls feature of the
Data card plays an insignificant role in the purchase of Data card.
This hypothetical statement is drawn from question no. 14(in likert scale of
1-5) from the questionnaire of annexure 1. To test this hypothesis the
researcher has done z-test (two-tailed test) and the inference drawn from the
hypothesis is stated below.
INFERENCE: The observed value of the test statistic Z is 1.59. At the
critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So,
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the observed value of Z lie in the critical region so therefore we accept the
null hypothesis and conclude that Making calls & receiving calls feature of
the Data card plays a significance role in the purchase of the data card.
Mathematically:
z = x̄ - µ/S.E of x̄, where S.E of x̄ = σ/√n
The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no
response)
Then the Alternative Hypothesis H1 : µ ≠ 3
= 3.35 – 3/0.22 = 1.59
Since I Z I = 1.59 < 1.96, hence H0 = Accepted
Analysis of the factors affecting the buying behaviour of DATA CARD SIGNIFICANT TEST [ASYMMETRY TWO TAILED]
Statement of Hypothesis
Sample mean (x ̄) Standard
deviationOf theSample (σ x̄)
Test statistic. Applied Z TEST( two tailed) (Zobserved)
Zcriticalα=0.05
HypothesisStatus
H9= High phone book memory is an essential feature of the Data card in the consumer buying behaviour of Data card
3.02 0.22 0.09 1.96 H0 ACCEPTED
H10 = .Micro SD card slot is an essential feature in the purchase of Data card.
3.18 0.169 1.06 1.96 H0 ACCEPTED
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H11= High storage capacity & supporting SMS facility is an essential feature which plays an essential role in the purchase of Data card
3.24 0.17 1.41 1.96 H0 ACCEPTED
H12= Making calls & receiving calls feature of the Data card plays an essential role in the purchase of the Data card.
3.35 0.22 1.59 1.96 H0 ACCEPTED
13. Hypothesis
A significant relationship exists between the average monthly usage of
internet with the occupation category.
Null Hypothesis H0 = Average monthly usage of internet are independent of
occupation category.
Alternative Hypothesis H1 = Average monthly usage of internet are
dependent of occupation.
This hypothetical statement is drawn from question no. 8 of the
questionnaire in annexure 1. To test this hypothesis the researcher has used
Chi-Square test for independence of attribute. The inference drawn from the
test is stated below.
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INFERENCE: The observed value of the test statistic Х2 = 1.34 < 12.592 at
5% level of significance with 6 d.f., i.e., calculated value of Х2 is less then
the tabulated value.
Hence, we accept the Null Hypothesis and conclude that average monthly
usage of internet is independent of occupation.
n = 220Observed value
Degrees of freedom
Level of significance
Tabulated value
Hypothesis status
1.34 6 5% 12.59 H0 ACCEPTED
14. Hypothesis
A significant difference lies in the awareness of all the brands available in
the market.
Null Hypothesis H0 = peoples are equally aware of all the brands available in
the market.
Alternative Hypothesis H1 = peoples are not equally aware of all the brands
available in the market.
This hypothetical statement is drawn from question no. 18 from the
questionnaire of annexure 1. To test this hypothesis Chi-Square test for
goodness of fit is done. The inference drawn from the test is show below.
INFERENCE: The observed value of the test statistic Х2 = 81.4 > 9.49 at
5% level of significance with 4 d.f., i.e., calculated value of Х2 is more then
the tabulated value. Hence we reject the null hypothesis and conclude that
the awareness of all the brands available in the market are not equal.
n = 250Observed value
Degrees of freedom
Level of significance
Tabulated value
Hypothesis status
81.4 4 5% 9.49 H0 Rejected
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Chapter 3: Graphs and Charts
1. Have internet connection or not ?
total = 340
If the avalability of the computer is low, then the probability of having an internet
connection connected to it getting more less, this fact shows that only 64% out of
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340 are connected to the internet and maximum of them are through GPRS or
GSM connections or through landlines.
2. Aware of data card or not?
total = 600
The awareness about the data card is also low in the market, only 39% of
respondents out of 600 were aware of data cards, inspite of random advertisment
there is a lot more to be done, we need to educate our potential customers more
about the product.
3. Awareness of Vodafone’s Data card.
total = 600
The awareness of Vodafones data card is very low in the market, its only 9.5% of
the total sample, the main reason behind this was because Vodafone doesnot
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promote its products actively like others. Vodafone is having world class poducts,
but due to lack of promotion the awareness is very low.
Recommendation And Conclusion
PLAYING WITH THE PLC:
Vodafone has one of the widest internet data cards range and the deepest product
line in internet data card market, its also has broadband business as well as internet
connection GPRS .This is a double edged sword because of the variety Vodafone
offer and the cannibalization that can occur. The segments thus formed and the
components extracted indicate that different buyer groups have different decision
variables, use data card for accessing internet for different purposes and have
varied perceptions about brands. All the segments require different pricing
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strategies and hence Vodafone should come out with different plans specifically
targeting different groups. Vodafone having several types of tariff plan but it
would have improved network connectivity along with aggressive promotional
strategies can be an unbeatable advantage in upgrading the consumer throughout
his lifetime and also making him brand loyal in the process. From the research, it
comes out that Vodafone is not a user friendly service provider. Users have taken
to Vodafone essentially because of high recommendation from friends and family
and its image in the market. According to our research high price of data cards and
costly tariff plans could be a deterrent for Vodafone data cards. Hence, Vodafone
should aim to providing data cards at a competitive price, cost effective tariff
plans, and more efficient response to requests.
Our analysis indicates clearly reliance is popular among the youth because of low
usage rate. These users use data card mostly for entertainments. This target
segment can be attracted by advertising in Television and internet. Also, word of
mouth publicity clearly scores above all forms of information search, primarily
because of its convenience and source credibility. Everybody whom we surveyed
believed in consulting their “circle” for opinions while buying connections
Recommendations 4 P’s
1. Product:
The products launched should focus on improving service response i.e. better
customer service and greater network connectivity.
2. Price:
It should keep focus on reducing usage rates and be a price leader for price
sensitive heavy usage segments.
3. Promotions:
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One important finding of our Consumer Survey was that very low number of
consumer were aware of the fact that Vodafone has Data cards and different tariff
plans. This can be attributed to one or more of the following reasons:
The consumers have low involvement and do not search for information. This
implies that wireless data card is becoming a commodity. Reliance has spent
mostly on advertisements for the mobile business, not on internet data cards.
Hence the information available to public is limited. To discommodities the
category, to increase customer loyalty and repeat purchase, promotions have to be
done on a bigger scale. The promotions should have more of a pull effect in the
advertisements that communicate not just the price and offers/discounts but also
the values, attributes which the consumer can relate to. In short, more information
has to be communicated to the consumer through ads, To lift the sales of internet
data card Vodafone can think to adopt of innovative give away strategy, for
instance design laptops with manufactures in such a way that there will be a built
in Vodafone internet data card. It should focus on Television advertising and
Internet ads primarily. Print ads do not seem to have that effective influence in
purchase decisions of the sample. Our analysis has shown that word of mouth
(WOM) marketing has a excellent effect on the consumer purchasing decision of
internet data card. So promotional strategies could be given focus on viral
marketing campaign like on SMS, e-letters or blogs and so forth.
4. Place:
Vodafone should strengthen its distribution network and also focus on creating
more Vodafone stores with easy accessibility outside cities as they are perceived to
be authentic by consumers.
Note: The recommendations have limitations of a small sample size and a simple
sampling.
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CONTINUE WITH UPGRADATION
Vodafone has been very successful in its strategy of upgrading the consumer in the
mobile business segment. Vodafone has made sure that it makes its consumers
move up the product chain by introducing new, technologically superior products
and phasing their PLC very well. But sadly, this approach is missing in the
wireless data card segment. Though there are 3 variants, there has been no effort
made to communicate to the consumer of the superior quality and attributes.
Hence, we suggest that Vodafone should adopt its “upgrading the consumer”
strategy for the internet data card segment also. This up gradation has 2 main
advantages : Vodafone can fully leverage the Product life cycle and the individual
phases of the products in different markets and Vodafone can make the consumer
loyal to the brand over his lifetime.
Future challenges
Introduce a product which would be designed specifically for Indian consumer and
satisfy aspiration of youths. To match the increased demand patterns in the
country. Launching of innovative products in regular and short intervals Vodafone
products are descending the customer value hierarchy from that of a potential
product towards an expected product. Competitors like Tata-Indicom, Reliance
communication, are moving up the hierarchy. So, Vodafone will find it tough to
charge the moderately high price it has tilled now charge. It is also highly likely
that Vodafone may not fully absorb the consumers who upgrade from slow speed
internet connection device USB modem to broadband. Hence, Vodafone’s market
share might not grow as good as their competitor Tata-Indicom, Reliance
Communication or BSNL. Vodafone’s major challenge lies in entering the
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premium market through an upgraded version of wireless data card the way it did
in mobile business.
Store Centric Recommendations
In order to increase the Vodafone wireless data card sales in exclusive Vodafone
stores and other franchisees across the country management has to take some
aggressive steps to ensure that customers who are evaluating alternatives are
coming in store for purchasing a Vodafone data card. According to our research
outcomes some following measures can be taken:
Management has to ensure that Customer service executives especially those
who are dealing with internet connections and data cards and also other
telecom products, have exhaustive knowledge about their own products.
Customer service executives should be given special behavioral training to
recognize the customers’ expectations and convey the all benefits of the
product accordingly.
Management has to ensure that their sales persons are updated with new
schemes regarding product.
Product knowledge as well as sales techniques of the sales personnel should
be reviewed frequently by the senior management.
Customer service executives should be remained motivated through various
incentives which are only proportionate to their target achievements.
Segmentation
In the wireless data card market there exist different categories of customers who
have different needs and are willing to pay different amount for the product that
meets their demand. Introduction of upgraded version of wireless data card for
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instance Vodafone recently launched wireless data card specially meant for those
who frequently travel abroad would help Vodafone identify the needs of the
customers and take advantage of the segment which has not yet been targeted by
the company. Price sensitivity, importance of attributes, point of purchase decision
makers and customers influenced by additional features are the factors on which
we will segment the upgraded internet data card market.
Segment one- is most prices sensitive and values additional feature the least. As
Vodafone is not an economic brand which focuses on differentiating its products
from the competitors and upgrading the customers in the value chain, targeting this
segment will be a strategically appropriate decision.
Segment two- is more influenced by attributes of the products and is not a price
sensitive segment. Vodafone through its wireless data card is currently catering to
this segment.
Segment three- is concerned about the attributes, additional features as well as
price.
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Annexure 1QUESTIONNAIRE
1. What is your Age?_______________________2. Your occupation?
a. Studentb. Service holderc. Business men
2. Do you use PCs of Laptop?a. Yesb. No
3. If you have a PC or Laptop then, do you have an internet connection on it?a. Yesb. No
4. Are you aware of internet data cards?a. Yesb. No
5. If you have an internet connection, then what kind of connection do you have?a. Data cardb. Use mobile phone to connect to the internetc. Use landline connection to connect to the internetd. Other types of connections
6. If you have an internet connection, then which service provider is providing you this service?
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a. BSNLb. Reliance Communicationc. Tata indicomd. Vodafonee. Airtelf. Others
7. In a month, on an average how many hours do you use internet?a. 10 hrs to 15 hrs or >500 MBb. 15 hrs to 30 hrs or 500 MB to 1 GBc. 30 hrs to 45 hrs or 1 GB to 2.5 GBd. 45 hrs & above or 2.5 GB and above
8. If you use internet regularly, then what is your average monthly expenditure?a. Between Rs 300 to Rs 350b. Between Rs 350 to Rs 500c. Between Rs 500 to Rs 800d. Rs 800 and above
9. If you are using internet, then what is your purpose behind using it?a. For work purposeb. For entertainmentc. For businessd. To collect information
10. What is your initial setup cost?a. Below Rs 1500b. Between Rs 1500 to Rs 2500c. Between Rs 2500 to Rs 3500d. Rs 3500 and above
11. Suppose you want to purchase an internet data card, please rate the importance of the following factors in selecting a data card.
Factor Not Important
Less Important
No response
Important Very Important
Price of Data card 1 2 3 4 5
Installation process 1 2 3 4 5
Durability 1 2 3 4 5
User friendly 1 2 3 4 5
Tariff plans 1 2 3 4 5
Speed 1 2 3 4 5
After sale service 1 2 3 4 5
Image of the company 1 2 3 4 5
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13. Are you aware of Vodafone data card?
a. Yesb. No
14. Which of the following features do you rate as important at the time of making purchase of data card? Please rate the following 1- as least important and 5- as more important.
Feature Not Important
Less important
No response
Important Very Important
High phone book memory 1 2 3 4 5
Micro SD card slot (expandable memory)
1 2 3 4 5
Supports SMS(High storage capacity)
1 2 3 4 5
Make and receive voice calls 1 2 3 4 5
16.Which company’s data card do you use?
a . BSNLc. Tata Indicom
d. Airtel
e. Reliance
f. Vodafone
17. At the time of purchasing a data card of Vodafone which factors do you consider is more important and less important? Please rate the following as 1 to 5.
Factor Not Important
Less Important
No response
important Very Important
Cost of Data card 1 2 3 4 5
Installation process 1 2 3 4 5
Durability 1 2 3 4 5
User friendly 1 2 3 4 5
Tariff plans 1 2 3 4 5
Speed 1 2 3 4 5
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After sale service 1 2 3 4 5
Image of the company 1 2 3 4 5
Q.18 . From where did you get the information about datacard? a. Friends b. Family c. Advertisement(television) d. Advertisement(other sources)
Q.19. Which brands Data Card are you aware off?a. Relianceb. Tata Indicomc. Vodafoned. Bsnle. Airtel
BibliographyInformation has been sourced from namely, books, newspapers, journals, industry portals, government agencies, industry news and developments and through access to database.