Department of Business & Industrial Management, VNSGU
A Project Report OnComparative Study of customer preferences towards various brands of Telecom Sector in India
Research GuideDr. Manisha Panwala
Submitted By23 Denish Pathak26 Suraj Rajput32 Megha Saraf58 Priyanka Yadav
ABSTRACT
This project mainly deals with the Indian Telecom market; this project contains the detailed description regarding the consumers perception towards various brands in telecom industry. The report work would include the primary as well as the secondary data which not only describe the whole Telecom market, the major competitions and what consumer demands and how well they are satisfied with the services which they are using.
REVIEW OF LITERATURE
Dabholkar (1993) is of the view that customer satisfaction is a kind of emotional, which leads to an overall, world attitude of quality, which is based on kind of internal expectation. Customer satisfaction can be measured on a single-item scale or as multi-item scale assessing the satisfaction level for each factor of the service.
Reichheld and Sasser (1990) considered customer satisfaction as fundamental determinant of customer loyalty. They said that satisfaction improves repeat purchases and produces positive mouth publicity.
INTRODUCTION TO TELECOM INDUSTRY
India's telecommunication networkis the second largest in the world based on the total number of telephone users (both fixed and mobile phone).It has one of the lowest call tariffs in the world enabled by the mega telephone networks and hyper-competition among them. It has the world's third-largest Internet user-base. According to the Internet and Mobile Association of India (IAMAI), the Internet user base in the country stood at 190 million at the end of June, 2013.Major sectors of the Indian telecommunication industry are telephony, internet and television broadcast Industry in the country which is in an on-going process of transforming intonext generation network, employs an extensive system of modern network elements such as digitaltelephone exchanges,mobile switching centres,media gatewaysandsignalling gatewaysat the core, interconnected by a wide variety of transmission systems usingfibre-opticsor Microwave radio relaynetworks. Theaccess network, which connects the subscriber to the core, is highly diversified with different copper-pair, optic-fibre and wireless technologies.DTH, a relatively new broadcasting technology has attained significant popularity in the Television segment. The introduction of private FM has given a fillip to theradio broadcasting in India. Telecommunication in India has greatly been supported by theINSATsystem of the country, one of the largest domestic satellite systems in the world. India possesses a diversified communications system, which links all parts of the country by telephone, Internet, radio, television and satellite. Indian telecom industry underwent a high pace of market liberalisation and growth since the 1990s and now has become the world's most competitive and one of the fastest growing telecom markets. The Industry has grown over twenty times in just ten years, from under 37 million subscribers in the year 2001 to over 846 million subscribers in the year 2011.India has thelargest mobile phone user base with over 929.37 million users as of May 2012. It has theworld's third-largestInternet user-base with over 137 million as of June 2012. The total revenue of the Indian telecom sector grew by 7% to2832 billion(US$44billion) for 201011 financial year, while revenues from telecom equipment segment stood at1170 billion(US$18billion). Telecommunication has supported the socioeconomic development of India and has played a significant role to narrow down the rural-urbandigital divideto some extent. It also has helped to increase the transparency of governance with the introduction ofe-governancein India. The government has pragmatically used modern telecommunication facilities to deliver mass education programmes for the rural folk of India.More than half of the mobile phones sold in India in 2012 were smart phones.
MOBILE COMPANIES IN SURAT
The following companies are the largest mobile phone providers in India. Many provide GSM or CDMA mobile phone service in the Surat area.Since companies are always changing and expanding coverage, please check company websites for the latest information on service availability, coverage, and plan details. Aircel- Aircel is a growing mobile provider which currently provides service in several telecom circles, including coverage in Surat. As of mid-2008, the company had also obtained rights to operate in additional circles, including Delhi (Metro), Mumbai (Metro), Andhra Pradesh, Uttar Pradesh, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa, Rajasthan, Punjab, UP (West) and UP (East). Type of network: GSM. Bharti Airtel- Bharti Airtel has become India's largest mobile telephone company and has the only truly national network. It provides services in all of India's 23 telecom circles, including the Surat area. Airtel provides GSM mobile services. Type of network: GSM. Loop Mobile- Loop Mobile is the new brand for BPL Mobile is a smaller mobile carrier that currently provides service only in Mumbai (Metro) circle. Type of network: GSM. BSNL Mobile- Government-owned BSNL, India's largest phone company, provides mobile phone service everywhere in India, except Mumbai and Delhi. Type of network: GSM. IDEA Cellular- IDEA Cellular, traded on the Bombay Exchange, operates GSM mobile networks across India. It has licenses to operate in all 22 circles, including: Andhra Pradesh (including Surat), Delhi (inclusive of NCR), Uttar Pradesh, Haryana, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh & Chattisgarh, Mumbai, Maharashtra & Goa, Punjab, Rajasthan, Uttar Pradesh (West), and Uttar Pradesh (East). IDEA acquired Spice Communications in 2008. Type of network: GSM. MTNL Mobile- Government-owned MTNL provides GSM mobile phone services only in Delhi and Mumbai. Type of network: GSM. MTS India- MTS India is a growing full service carrier that provides mobile phones or other services in 6 telecom circles, including Tamil Nadu, West Bengal, and Kolkata. MTS is operated by Shyam TeleServices, a joint venture between Sistema, a Russian company, and Shyam Group of India. Type of network: CDMA. Ping Mobile (HFCL Infotel)- Ping Mobile is the mobile service brand of HFCL Infotel. HFCL Infotel is a smaller telephone company started in 2000. Currently, they serve only Punjab where they provide landline, mobile, and internet services. Type of network: CDMA. Reliance Communications- Reliance Mobile operates GSM and CDMA network in Surat and elsewhere in India. The company's mobile operations have grown rapidly throughout India since launching in 2002. Type of network: GSM, CDMA. Tata Indicom- Tata Indicom provides CDMA mobile services in Surat and 1,000 other cities across India. The company has grown rapidly throughout India since launching in 1996 and especially since the acquisition of Hughes Telecom in 2002. Type of network: CDMA. Virgin Mobile- Virgin Mobile is a new brand operating across India. The company partners with Tata Teleservices to provide mobile phones with a focus on serving younger customers. Virgin Mobile provides services in Surat. Type of network: GSM. Vodafone India- Vodafone India provides GSM mobile services in Surat and elsewhere across India. The company acquired Hutchinson Telecom in 2007 to accelerate growth. In the same year, it also acquired additional GSM mobile licenses. Type of network: GSM.
KEY PLAYERS
Research Design:Type of research design : descriptive researchType of data collection : Primary data collectionMethods of data collection : survey methodInstrument of data collection : QuestionnaireSample : user of mobile service operatorSample size : 100 questionnaire
1 Type of Research DesignConclusive Research Design
Descriptive Research Design
Cross-sectional Design
Single Cross-sectional Design
Descriptive Research:In this type of research, the researcher will portray or describe the features or the characteristics of individual, economy, etc. The important aspect of this type of the study is that researcher has no control over the variables under the investigation; he can only describe things as they exist and discover the causes.Conclusive research design is more formal and structured than the exploratory design. It is use to test the hypotheses and examine the relationship. Descriptive research design is the part of the conclusive design and it describes the market characteristics or functions. It describes the characteristics of relevant groups such as consumers, organizations etc. The collection of the information from the sample population is drawn only once so it is cross sectional design.
2 Sampling TechniqueA sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample. Sample design may as well lay down the number of items to be included in the sample i.e., the size of the sample. Sample design is determined before data is collected. There are many sample designs from which a researcher can choose. Some designs are relatively more precise and easier to apply than others. Researcher must select/prepare a sample design which should be reliable and appropriate for his research study.
Target population: People living in Surat and using mobile operators service.Sampling Method: Non-probability; Convenience sampling method.
In nonprobability sampling technique the chances of selection of all elements of population are not equal and convenience sampling method means sample drawn at the convenience of the interviewer people tend to makes the selection at familiar location and choose respondents who are like themselves. Sample size: 65 respondents
3 Data Collection methods:Primary data: QuestionnaireThe data which are obtained for the first time by the investigator himself for his purpose are called primary data. According to Horace Secrist, By primary data we mean those data which are original, that is, those in which little or no grouping has been made, the instance being recorded or itemized as encountered. They are essentially raw materials.In this method a questionnaire consisting of a list of questions pertaining to the investigation is prepared and printed in advance. The questionnaires contain blank spaces for answers. If necessary they are also given an assurance that the answers will be kept confidential. The method is adopted by research workers, private investigators, non-official agencies, etc. The questionnaire was a structured questionnaire and both open-ended and closed-ended questions were used.
Research Area: Surat City
ANALYSIS OF DATA/TOTAL RESPONSES
Q:1 Which Telecom Service provider are you currently subscribed to?Vodafone2641.3%
Airtel812.7%
Idea914.3%
Tata812.7%
BSNL34.8%
Reliance914.3%
Other00%
Q:2 Which type of connection do you have?Postpaid1523.8%
Prepaid4876.2%
Q:3 Do you use internet?Yes5283.9%
No1016.1%
Q:4 If yes, which type of internet?2G1834%
3G3566%
Q:5 Rate your telecom service provider on the basis of Network Connectivity?111.7%
2610.2%
31728.8%
43254.2%
535.1%
Q:6 Rate your telecom service provider on the basis of Network Connectivity?123.2%
2812.7%
31727%
43250.8%
546.3%
Q:7 Rate your telecom service provider on the basis of Call Tariffs?111.6%
269.5%
33454%
42031.7%
523.2%
Q:8 Rate your telecom service provider on the basis of Customer Relationship?134.9%
269.8%
32439.3%
42134.4%
5711.5%
Q:9 Rate your telecom service provider on the basis of Discount Offers?1610%
22135%
31728.3%
41321.7%
535%
Personal information:
Q:10 What is your Age?Less than 1823.2%
18 - 255079.4%
26 - 35812.7%
36 - 4523.2%
46 and above11.6%
Q:11 What is your gender?Male3454%
Female2946%
Conclusion Most of the users belong to the age group of 18 25 years. There is no gender biasness. On National Level, Airtel & Vodafone dominate with 33% & 32% respectively. Around 75% of the users use prepaid connection. 48% of the users are satisfied with their current network. 91% of the users use internet connection. Out of which 62% use 3G internet connections. Around 45% internet users have reported their use of internet connection as satisfactory and 39% reported their network connectivity as Good. 37% of the users have rated their respective connection as neutral on call tariff basis. 35% of the users found their connections CRM as Average. 59% of the users are not influenced by their connections advertisements.
Recommendations Since most of the youths are using internet connections and majority of them are using 3G connection, so I would like to suggest the telecom companies to come up with strategies to involve more of the older generation to use internet connection. I would also like to recommend other telecom services like Idea, Docomo etc to come up with good network connectivity and attractive plans to gain their market share in the telecom sector in India. A strong suggestion would be to improve or enhance their CRM as most of the users have found their Customer Relationship as average.
ANNEXURE
QUESTIONAIRE
Study of customer preferences towards various brands of Telecom Sector in India.
Which Telecom Service provider are you currently subscribed to?
Vodafone
Airtel
Idea
Tata
BSNL
Reliance
Other:
Which type of connection do you have?
Postpaid
Prepaid
Do you use internet?
Yes
No
If yes, which type of internet?
2G3G
Rate your telecom service provider on the basis of Internet?
1 is poor; 5 is excellent
1 2 3 4 5
Rate your telecom service provider on the basis of Network Connectivity?
1 is poor; 5 is excellent
1 2 3 4 5
Rate your telecom service provider on the basis of Call Tariffs?
1 is poor; 5 is excellent
1 2 3 4 5
Rate your telecom service provider on the basis of Customer Relationship?
1 is poor; 5 is excellent
1 2 3 4 5
Rate your telecom service provider on the basis of Value added Services?
1 is poor; 5 is excellent
1 2 3 4 5
Rate your telecom service provider on the basis of Discount Offers?
1 is poor; 5 is excellent
1 2 3 4 5
Is your choice of telecom provider influenced by their advertisements?
Yes
No
Personal Information:What is your name?______________________________
What is your Age?
Less than 18
18 - 25
26 - 35
36 - 45
46 and above
Your Gender?
Male
Female
Mobile Number:________________________
Email ID:_________________________
Bibliography
I. Websites: http://en.wikipedia.org/wiki/Telecommunication http://en.wikipedia.org/wiki/Telecommunications_network http://www.ibef.org/industry/telecommunications.aspx http://www.tiaonline.org http://economictimes.indiatimes.com/topic/indian-telecom-industry http://business.mapsofindia.com/top-brands-india/telecome.html
