TO UNDERSTAND CONSUMER PREFERENCES FOR A PARTICULAR BRAND IN TELECOM SECTOR

A

RESEARCH REPORT

ON

TO UNDERSTAND CONSUMER PREFERENCES FOR A PARTICULAR

BRAND IN TELECOM SECTOR

Submitted By:

Priyanka Kumari (030301148)

Prachi Parikh (030301272)

Raj Gadhiya (030301144)

Prateek Jain (030301143)

Rahul Dabgar (030301149)

CR-2

Submitted To:

Unitedworld School of Business

ACKNOWLEDGEMENT

On the very outset of this report, we would like to extend our sincere & heartfelt obligation towards all the personages who have helped us in this endeavour. Without their active guidance, help, cooperation and & encouragement, we would not have made headway in the project.

We extend our gratitude to United World School of Business for giving us this opportunity.

We are extremely thankful and pay our gratitude to our faculty Dr. Kishor Bhanushali for his valuable guidance and support on completion of this project.

At last but not least gratitude goes to all the friends who directly or indirectly helped us to complete this project.

Thanking You

Priyanka Kumari ___________________

Prachi Parikh ___________________

Raj Gadhiya ___________________

Prateek Jain ___________________

Rahul Dabgar ___________________

I

List of Figures

Sr. No. Figures Description Page No5.1 Network Operator 75.2 Useful Services 85.3 Influencing Factors 95.4 Broadband Coverage 105.5 Broadband Speed 115.6 Technical Support 125.7 Waiting Time 135.8 Solving Time 145.9 Correction Of Problem 155.10 Overall Satisfaction 165.11 First Preference 175.12 Age 185.13 Gender 196.1 Network Operator and Gender 206.2 Influencing factors and gender 216.3 First preference and gender 22

II

List of Tables

Sr. No. Tables Description Page No5.1 Mobile Network Operator 75.2 Useful Services 85.3 Influencing Factors 95.4 Broad band Coverage 105.5 Broad band speed 115.6 Technical support 125.7 Waiting time 135.8 Time taken to solve problem 145.9 Correction of problem 155.10 Overall satisfaction 165.11 First preference 175.12 Age 185.13 Gender 196.1 Network operator and gender 206.2 Influencing factor and gender 216.3 First preference and gender 227.1 Cross tab Network operator and gender 237.1.1 Network operator and gender 237.2 Cross Tab Services and gender 247.2.1 Services and gender 247.3 Cross Tab Factors and gender 257.3.1 Factors and gender 257.4 Cross Tab Overall satisfaction and gender 267.4.1 Overall satisfaction and gender 26

III

Table of Content

Sr. No. Contents Page NoList of figuresList of TableAcknowledgementExecutive Summary

1 Introduction 12 Literature Review 23 Methodology 5

4.1 Objective4.2 Research Method4.3 Sample Design4.4 Tools For Data Analysis4.5 Scope Of The Study4.6 Limitations

4 Univariate Data Analysis 75 Bivariate Data Analysis 206 Chi-Square Testing 237 Findings 278 Conclusion 299 Bibliography 3010 References 3111 Annexure 33

IV

VI

EXECUTIVE SUMMARY

The aim of this research report was to investigate why consumers prefer a particular brand in telecom sector, what are the influencing factors that affect the decision of the consumers while choosing a telecom operator and which is the most preferred brand among consumers.

Consumers ‘ perception is widely varied in accordance with the quality of service, call services, facilities, customer care and service provider’s attributes.

A survey was conducted to analyse the consumer behaviour for choosing a brand. For this purpose, 50 mobile phone users were conveniently sampled and a questionnaire was used to collect the information. All the factors that could help us in the research included in the questionnaire. The survey was conducted in the UWSB campus and some other areas of Ahmedabad.

The research was started with a descriptive research. A structured questionnaire was used for this purpose. The feedback obtained from the questionnaires was then used for further analysis using SPSS software. Chi-square testing is also used to determine the association between two variables

The names of widely used network operators were used in the questionnaire to find out their position among consumers and in the market. The study helped us in finding the answers to related questions.

From the research we can say that there are many factors which affect the consumers while making decision for choosing a particular network operator. Brand image, value added services, good network coverage, technical support and offers are the important factors that affect the consumers to great extent.

The outcome of this research shows a comprehensively integrated framework to understand the relationships among several dimensions. Consumers are more interested in the quality of services provided rather than the highly promoted brands. Product quality and value added services have significant impact on consumer perception choice in selecting a particular brand in telecom sector.

VII

1. INTRODUCTION

Communication is the life blood of modern businesses and a part in lifestyle. Telecommunications industry has grown from earth to sky in a short span of time. In the earlier days there was no or less competition because the demand was more than the supply. After globalization the scenario has changed entirely, many players entered into the business and privatization came into existence. Whatever the business may be there is one in common consumer preference.

India is the booming market for telecom sector. It is ranked second in telecom network provider all around the world. This industry has witnessed significant growth in subscriber base over the last decade. Major sectors of telecommunication industry in India are telephony, internet, data centres and broadcasting. With over 900million telephone connections, India remained the world’s second largest telecommunication market in 2013, recovering from the bumpy ride the year before.

The major mobile network operators in India are Airtel, Vodafone, Reliance communications, Idea cellular, BSNL, Virgin, Tata Docomo, Aircel, Uninor, MTS India and MTNL. Cellular services can be divided into two categories: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA).The GSM sector is dominated Airtel, Vodafone and Idea Cellular, while the CDMA sector is dominated by Reliance and Tata Indicom.

In the year 1975, Department of Telecom (DoT) was responsible for telecom services in entire country after separation from Indian post and & Telecommunication. Decade later Mahanagar Telephone Nigam Limited (MTNL) was chipped out of DoT to run the telecom services of Delhi and Mumbai.

In 1990s the telecom sector was opened up by the government for private investment. In 1995 TRAI (Telecom Authority of India) was setup. This reduced the interference of government in deciding tariffs and policy making. The Government of India corporatized the operation wing of DoT in 2000 and renamed Department of Telecom as Bharat Sanchar Nigam Limited (BSNL).

Until the telecom industry was liberalised in the early nineties, it was a heavily government controlled and small sized market, Government policies have played a key role in shaping the structure and size of the telecom industry India. As a result the Indian Telecom market is one of the most liberalised market in the world with private participation in almost all of its segments.

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2. LITERATURE REVIEW

To make the research effective we studied the existing general literature and specific studies. It helped us in formulating the hypotheses and framework for further investigation.

Wilska (2003) according to survey of finish young people aged 16-20, it was found that mobile phones choice and especially usage is consistent with respondents‟ general consumption styles. The researcher showed that addictive use was common among females and was related to trendy and impulsive consumption styles. Instead, males were found to have more technology enthusiasm and trend – consciousness. These attributes were then linked to impulsive consumption. the study concluded that genders are becoming more alike in telecom service choice. Because individual differences in consumption patterns are consumer decision making process is usually guided by already formed preferences for a particular alternative. This means that consumers are likely to make the choice between alternatives based on limited information search activity and without detailed evaluation of the other alternatives.

J D Power(2009) conducted a study on “Customers increasingly want telecom services and products to be bundled” based on responses collected from 11,911 customers nationwide and examined the overall customer satisfaction on six factors – customer service, reliability, billing, image, cost of service, offers & promotions services to be provided.

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

Swadeshkumar Samanta (2007) did as study on impact of price on mobile subscription and revenue access price or fixed monthly fee for mobile services is the major factor that governs the percentage of people subscribing to the services. Empirical analysis shows a strong correlation between access price and penetration for developing and developed countries. They demonstrate a trade off between price of access and per minute call and show how subscription and revenue to the operator can be increased.

Anita Seth (2007) in his study on “Quality of service parameters in cellular mobile communication” developed a model of service quality and a set of dimensions for comparative evaluation which could provide useful directions to regulators and service providers.

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Shirshendu Ganguly (2008) conducted a study on “Drivers of customer satisfaction in India cellular service market” in which he discussed the impact of service quality and features on customer satisfaction from the cellular users’ viewpoint.

Girish Taneja and Neeraj Kaushik (2007) conducted a study on “customers’ perception towards mobile service providers”. An analytical study aims to deduce the factors that customers perceive to be the most important while utilizing the services of a mobile service provider.

Kalpana and Chinnadurai (2006) in their study titled “Promotional Strategies of Cellular Services: A Customer Perspective analyzed that the increasing competition and changing taste and preferences of the customer’s all over the world are forcing companies to change their targeting strategies. The study revealed the customer attitude and their satisfaction towards the cellular services in Coimbatore city.

Seth et al (2008) in their study titled “Managing the Customer Perceived Service Quality for Cellular Mobile Telephone: an Empirical Investigation” analyzed that there is relative importance of service quality attributes and showed that responsiveness is the most importance dimension followed by reliability, customer perceived network quality, assurance, convenience, empathy and tangibles. This would enable the service providers to focus their resources in the areas of importance. The research resulted in the development of a reliable and valid instrument for assessing customer perceived service quality for cellular mobile

services.

Requelme (2001) examined how much self knowledge consumers have when choosing between different telecom service brands. The study was built upon six key attributes (service features, connection fee, access cost, cell to cell phone rates, call rates and free calls )related to mobile. The 97 research showed that consumers with prior experience about a product can predict their choices relatively well , although respondents tended to overestimate the importance of features, call rates and free calls and underestimate the importance of a monthly access fee , mobile to mobile phones rates and the connection fee. Mobile phone choice and use has also been found to be related to prior consumption style.

Rick (2008): In his study found that companies with sound customer strategies can use that ultimate loyalty program as a differentiator in a 95 increasingly muddled market. In an increasingly competitive market, customer loyalty efforts can play a major part in the attraction of new customers and the retention of current ones. As consumers' choices expand, the importance of a sound customer relationship strategy becomes more and more important for the success of the company.

Kushan Mitra (2005) analyses various factors contributing to competition to Indian Telecom Industry. Besides lowering of prices, increased efficiency, 80 greater innovations,

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highly tech industry better quality services are some of the reasons which are boosting competition amongst various telecom service providers.

Aisha Khan and Ruche Chaturvedi (2005) explain that as the competition in telecom area intensified, service providers took new initiatives to customers. Prominent among them were celebrity endorsements, loyalty rewards, discount coupons, business solutions and talk time schemes. The most important consumer segments in the cellular market were the youth segment and business class segment. The youth segment at the inaugural session of cellular summit, 2005, the Union Minister for Communications and Information Technology, Dayanidhi Maran had proudly stated that Indian telecom had reached the landmark of 100 million telecom subscribers of which 50% were mobile phone users. Whereas in African countries like Togo and Cape Verde have a coverage of 90% while India manages a merely mobile coverage of 20%.

Maran et al. (2004) studied the consumer perceptions about fixed telephone lines in Chennai. The objectives of the study was (1) to find the most influencing factor in selection of service provider, and (2) to measure customer perception and satisfaction as regards the service provided. The study on a sample of 550 telephone users indicated that some problems exist that deserve the attention of the company. The company needs to bridge the gap between the services promised and services offered. And to conclude, “Delivering service without measuring the impact on the customer is like driving a car without a windshield”.

Bepko (2000) says that among the areas which need to be addressed in quality research is the nature of consumer expectations across the range of intangibility. Previous research had compared consumers‟ service quality expectations across services, but different groups of subjects were evaluated for each different service. The problem with using different subjects for each service is that the subject’s demographic characteristics may be responsible for the significant differences in expectations of quality. The paper used a controlled, repeated measures design where subjects were each asked to evaluate three services, varying in their degree of intangibility, over a ten week period.

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3. METHODOLOGY

3.1 OBJECTIVE

Important objectives of the study are:-

To find out why people prefer a particular brand in telecom sector? Do the heavily promoted corporate names affect the customer’s decision? Importance of the various factors that affect the buying decision. Do the customers often switch over to other brands? To analyse the various preferences of the customers regarding their buying decision.

3.2 RESEARCH METHOD

The research is descriptive in nature. The primary source of data has been used. It is done with the help of a structured questionnaire.

3.3 SAMPLE DESIGN

Sampling Geography: UWSB campus and some areas of Ahmedabad

Sampling Frame: people who are using mobile phones

Sample Size: 50

Sampling Type: Convenience Sampling

3.4 TOOLS FOR DATA ANALYSIS

Computer software Statistical Package for social science (SPSS 12.0) is used to analyse the data. Chi –square method is also used to analyse the data.

3.5 SCOPE OF THE STUDY

The study helps to understand the consumer psychology on choosing the brand in telecom sector. It assesses the preference of choosing a particular brand by the respondents. It also helps to assess the real opinion and mindset of consumers and aids to meet out their expectation in future in turn that will increase the volume of sales. It helps to understand the efficiency of existing service providers to the consumers so that it can create the root for further improvement.

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3.6 LIMITATIONS

Research method that was applied was questionnaire and so all the limitations related to the questionnaire also accompanied the study. Some of the limitations of the study are:

Due to the constraint of the demographics the analysis for the potential prospects from each of the area of Ahmedabad couldn’t be reached through.

The method that we have used for the analysis is not the expert analysis. It is on the basis of our academic knowledge. There can be other methods too for analysing.

The number of respondents was limited to 50 only. Some of the respondents were not open in giving in their opinions. This is normal in

any field study.

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4. UNIVARIATE DATA ANALYSIS

4.1. USE OF MOBILE NETWORK OPERATOR

Operator Frequency PercentVodafone 16 32.0

Airtel 11 22.0Idea 12 24.0

Others 11 22.0Total 50 100.0

Table 4. 1

The above output depicts that 16 respondents out of 50 uses Vodafone and it represents 32% of the total sample. 11 respondents use Airtel, representing 22% of the total sample. Idea holds second position, 12 people use it, representing 24% of the total sample. 11 respondents choose other network operator (Docomo, Reliance, Videocon etc.), representing 22% of the total sample.

32%

22%

24%

22%

Network Operator

vodafoneairtelideaothers

Figure 4.1

The chart clearly depicts that 32% of the surveyed customers use Vodafone, 22% use Airtel, 24% use Idea and 22% prefer other network operators. It shows that the largest segment has been captured by Vodafone. Others include Docomo, Reliance, Videocon etc.

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4.2. MORE USEFUL SERVICES FOR CONSUMERS

Services Frequency Percentcall rates 23 46.0

sms service 3 6.0network 20 40.0

value added service 4 8.0Total 50 100.0

Table 4. 2

The above output depicts that 23 respondents find call rates as the most useful services, representing 46% of the total sample. Only 3 respondents find SMS service as more useful than other services, representing 6% of the total sample. 20 respondents rated network as more useful service, representing 40% of the total sample. 4 respondents find value added services as more useful service, representing 8% of the total sample.

46%

6%

40%

8%

Useful Services

call ratessms servicenetworkvalue added service

Figure 4.2

The above chart clearly depicts that the most useful service is call rates which affects the most in purchase decision with 46%. The next influencing factor is network with 40% of total segment. SMS service and Value Added Services are less effective with 6% and 8% respectively.

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4.3. MOST INFLUENCING FACTOR IN CHOOSING A NETWORK OPERATOR

Factors Frequency Percentbrand image 13 26.0

advertisement 3 6.0offers 25 50.0

value added service 9 18.0Total 50 100.0

Table4.3

The above output depicts that 13 respondents find brand image as the most influencing factor, representing 26% of the total sample. Only 3 respondents find advertisement as the most influencing factor, representing 6% of the total sample. Various offers are the most influencing factor. 25 respondents find it as most influencing factor for choosing a telecom operator, representing 50% of the total sample. 9 respondents find value added services as the most influencing factor representing 18% of the total sample.

26%

6%

50%

18%

Influencing Factors

brand imageadvertisementoffersvalue added service

Figure4.3

The above chart clearly depicts that the most influencing factor in choosing a telecom brand is various offers and schemes with 50% of the total segment. The next influencing factors are brand image and value added services with 26% and 18% respectively. Advertisement with 6% shows that the consumers are less affected by the highly promoted brands.

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4.4. MOBILE BROADBAND COVERAGE OF NETWORK OPERATOR

Broadband Coverage Frequency Percentpoor 2 4.0

average 17 34.0good 20 40.0

excellent 11 22.0Total 50 100.0

Table4.4

The above output shows that only 2 respondents find the broadband coverage of their network operator poor, representing 4% of the total sample. 17 respondents have rated it as average, representing 34% of the total sample. 20 respondents find the broadband coverage good, representing 40% of the total sample. 11 respondents are highly satisfied as they have rated it as excellent, representing 22% of the total sample.

4%

34%

40%

22%

Broadband Coveragepoor average good excellent

Figure 4.4

The above chart depicts that most of the consumers have rated broadband coverage of their telecom operator as good i.e. 40%. Some consumers have rated as average i.e. 34%. Consumers who are highly satisfied have rated as excellent i.e. 22% of the total segment. 4% consumers are highly dissatisfied and they have rated the broadband coverage of their network operator as poor.

4.5. MOBILE BROADBAND SPEED OF NETWORK OPERATOR

 Broadband Speed Frequency Percent

10

poor 1 2.0average 17 34.0

good 25 50.0excellent 7 14.0

Total 50 100.0Table 4.5

The above output shows that only 1 respondent has rated the broadband speed of the operator as poor, representing 2% of the total sample. 17 respondents find it as average, representing 34% of the total sample. 25 respondents have rated it as good, representing 50% of the total sample. 7 respondents are highly satisfied as they have rated it as excellent, representing 14% of the total sample.

2%

34%

50%

14%

Broadband Speed

pooraveragegoodexcellent

Figure 4.5

The above chart depicts that most of the consumers have rated the broadband speed of their network operator as good i.e. 50%. The percentages of consumers who are neither satisfied nor dissatisfied have rated as average i.e. 34%. Some consumers are highly satisfied and those have rated as excellent i.e. 14%. Some are highly dissatisfied with the broadband speed i.e. 2%.

4.6. TECHNICAL SUPPORT FROM NETWORK OPERATOR

Technical Support Frequency Percentpoor 2 4.0

11

average 25 50.0good 21 42.0

excellent 2 4.0Total 50 100.0

Table 4.6

The above output shows that only 2 respondents have rated the technical support of their network operator as poor, representing 4% of the total sample. 25 respondents have rated it as average, representing 50% of the total sample. 21 respondents find it as good, representing 42% of the total sample. Only 2 respondents have rated the technical support as excellent, representing 4% of the total sample. It shows they are highly satisfied with the technical support.

4%

50%

42%

4%

Technical Support

pooraveragegoodexcellent

Figure 4.6

The above chart depicts that 50% consumers have rated the technical support provided by their network operator as average i.e. they are neither satisfied nor dissatisfied. 42% consumers have rated as good. Highly satisfied consumers have rated as excellent and highly dissatisfied have rated as poor i.e. 4% and 4% respectively.

4.7. WAITING TIME BEFORE SPEAKING TO A REPRESENTATIVE

12

Waiting Time Frequency PercentI was taken care of immediately 16 32.0

within 5 minutes 26 52.0within 5-10 minutes 7 14.0

more than 10 minutes 1 2.0Total 50 100.0

Table 4.7

The above output shows that 16 respondents do not have to wait before speaking to a representative. They are taken care of immediately. It represents 32% of the total sample. 26 respondents are taken care of within 5 minutes, representing 52% of the total sample. 7 respondents have to wait for 5-10 minutes, representing 14% of the total sample. Only 1 respondent has responded that it takes more than 10 minutes, representing 1% of the total sample.

32%

52%

14%

2%

Waiting Time

I was taken care of im-mediatelywithin 5 minuteswithin 5-10 minutesmore than 10 minutes

Figure 4.7

The above chart depicts that the 52% of the consumers have to wait for approximately 5 minutes before talking to a representative. 32% consumers have responded that they are taken care of immediately. 14% consumers are made to wait for 5-10 minutes. Only 2% have responded that they have to wait for more than 10 minutes.

4.8. TIME TAKEN TO SOLVE THE PROBLEM

Solving Time Frequency Percentimmediate resolution 10 20.0

less than a day 19 38.0

13

between 2-5 days 18 36.0more than 7 days 2 4.0

problem was not solved 1 2.0Total 50 100.0

Table 4.8

The above output shows that 10 respondents get immediate resolution for the problem, representing 20% of the total sample. 19 respondents have responded that it takes less than a day to get the problem solved, representing 38% of the total sample. 18 people responded that it takes 2-5 days to get the problem solved, representing 36% of the total sample. Only 2 people responded that it takes more than 7 days to get the problem resolved, representing 4% of total sample. Only 1 responded that the problem was not solved, representing 2% of the total sample.

20%

38%

36%

4%

2%

Solving Time

immediate resolutionless than a daybetween 2-5 daysmore than 7 daysproblem was not solved

Figure 4.8

The above chart depicts that 20% of the consumers get immediate resolution for their problem. 38% of the consumers got their problems fixed up in within a day. The problem solving time for 36% consumers is between 2-5 days. 4% consumers have responded that it take more than 7 days to get their problem solved. Only 2% have responded that their problem was not solved.

4.9. FREQUENCY OF CONTACT FOR CORRECTION OF PROBLEM

Frequency of Contact Frequency Percentonce 24 48.0

14

twice 17 34.03 times 8 16.0

more than 3 times 1 2.0Total 50 100.0

Table 4.9

The above output shows that 24 respondents have to contact once to get the problem solved, representing 48% of the total sample. 17 people responded that they have to contact twice, representing 34% of the sample. 8 people responded that they have to contact thrice for solution. Only 1 respondent responded that he needs to contact more than 3 times to get the problem solved, representing 2% of the total population.

48%

34%

16%

2%

Correction Of Problem

oncetwice3 timesmore than 3 times

Figure 4.9

The above chart shows that 48% consumers have responded that they have to contact once to get their problem solved. 34% consumers have to contact two times to fix up the problem. 16% have responded that they have to contact 3 times to get their problem solved. Only 2% have responded that they have to contact more than 3 times to fix up the problem.

4.10. OVERALL SATISFACTION FROM THE CURRENT TELECOM OPERATOR

15

 Satisfaction Frequency Percentvery dissatisfied 2 4.0

dissatisfied 4 8.0neutral 18 36.0

satisfied 19 38.0very satisfied 7 14.0

Total 50 100.0

Table 4.10

The above output shows that 2 consumers are highly dissatisfied with their current operator, representing 4% of the total sample size. 4 consumers are dissatisfied with their current operator, representing 8% of the total sample. 18 consumers are neutral, representing 36% of the total sample. 19 consumers are satisfied with the current operator, representing 38% of the total sample. 7 consumers are highly satisfied, representing 14% of the total sample.

4%8%

36%38%

14%

Overall Satisfaction

very dissatisfieddissatisfiedneutralsatisfiedvery satisfied

Figure 4.10

The above chart depicts that 4% consumers are highly dissatisfied with their network operator and so that they can switch over to other brands. 8% consumers are dissatisfied. 36% are neither satisfied nor dissatisfied i.e. neutral. 38% consumers are highly satisfied with the services and values provided by their network operator. 14% consumers are highly satisfied with their network operator i.e. they are getting high quality services and cannot switch over to other brands.

4.11. FIRST PREFERENCE AMONG THE TELECOM OPERATORS

Preference Frequency PercentVodafone 28 56.0

Idea 5 10.0

16

Airtel 11 22.0Other 6 12.0Total 50 100.0

Table 4.11

The above output shows that 28 respondents out of 50 use Vodafone, representing 56% of the total sample size. 5 respondents use idea, representing 10% of the total population. 11 respondents use Airtel, representing 22% of the total sample. 6 respondents use other network operators (Docomo, Reliance etc.), representing 12% of the total sample size.

56%

10%

22%

12%

First Preference

VodafoneIdeaAirtelOther

Figure 4.11

The above chart depicts that 56% of the consumers choose Vodafone as their first preference. It means it provides highly satisfying services to its customers. Idea is capturing 10% of the total consumers. Comparatively, Airtel holds good position with 22% consumers. Others (Docomo, Videocon, Reliance etc.) hold 12% of the total consumers.

4.12 AGE

Age Group Frequency Percent

17

15 t0 25 34 68.025 to40 8 16.0

40 & above 8 16.0Total 50 100.0

Table 4.12

15 t0 25 25 to40 40 & above0

10

20

30

40

50

60

70

80

Age

FrequencyPercent

Figure 4.12

The above output shows that 34 respondents are between the ages of 15 to 25, representing 68% of the total sample size. 8 respondents are between the ages of 25 to 40, representing 16% of the total sample. 8 respondents are above 40, representing 16% of the sample.

4.13. GENDER

18

Gender Frequency Percentmale 26 52.0

female 24 48.0Total 50 100.0

Table 4.13

52%48%

Gendermale female

Figure 4.13

The above output shows that there are 26 male among the total respondents, representing 52% of the total sample. There are 24 females, representing 48% of the total sample.

5. BIVARIATE DATA ANALYSIS

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5.1 CROSSTABULATION OF USE OF NETWORK OPERATOR AND GENDER

Operator Gendermale Female

vodafone 23.1% 41.7%airtel 26.9% 16.7%idea 26.9% 20.8%

others 23.1% 20.8%100.0% 100.0%Table 5.1

vodafone airtel idea others0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Network Operator and Gender

malefemale

Figure 5.1

The above output shows that the percentage of females using Vodafone i.e. 41.7% is higher than the percentage of males i.e. 23.1%. The percentage of males using Airtel is 26.9% which is higher than the percentage of females i.e. 16.7%. The percentage of males using Idea is 26.9% which is higher than the percentage of females i.e. 20.8%. The percentage of females using other network operator is 20.8% which is lower than the percentage of male i.e. 23.1%.

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5.2 CROSSTABULATION OF INFLUENCING FACTORS AND GENDER

Influencing Factors Gendermale Female

brand image 30.8% 20.8%advertisement 7.7% 4.2%

offers 53.8% 45.8%value added service 7.7% 29.2%

100.0% 100.0%Table 5.2

brand image advertisement offers value added service0.0%

10.0%20.0%30.0%40.0%50.0%60.0%

Influencing Factors and Gender

Gender maleGender female

Figure 5.2

The above output shows that 30.8% males are influenced by the brand image whereas 20.8% females are influenced by the brand image. The percentage of males influenced by advertisement is 7.7% whereas percentage of females is 4.2%. Males are more influenced by the offers i.e. 53.8% which is higher than the percentage of females i.e. 45.8%. Females are more influenced by value added services i.e. 29.2% whereas males are less influenced by this factor i.e. 7.7%.

5.3. CROSSTABULATION OF FIRST PREFERENCE AND GENDER

Preference Gendermale Female

21

Vodafone 46.2% 66.7%Idea 15.4% 4.2%

Airtel 23.1% 20.8%Other 15.4% 8.3%

100.0% 100.0%Table 5.3

Vodafone Idea Airtel Other0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

First Preference and Gender

Gender maleGender female

Figure 5.3

The above output shows that the percentage of female respondents choosing Vodafone as first preference is more i.e.66.7% than the percentage of male respondents’ i.e.46.2%. The percentage of male respondents choosing Idea and Airtel as their first preference is more than the percentage of females. The percentage of male respondents choosing other brands as their first preference is more i.e. 15.4% than the female respondents i.e. 8.3%.

6. HYPOTHESIS TESTING:

6.1 NETWORK OPERATOR AND GENDER

22

Operator Gender TotalMale female

Vodafone 12 16 28Airtel 4 1 5Idea 6 5 11

Others 4 2 6Total 26 24 50

Table 6.1

STEP 1:

H0: Gender and preference for brands are independent.

H1: Gender and preference for brands are not independent.

STEP 2:

The appropriate statistical test for this problem is

χ 2=∑ (fo−fe )2

fe

STEP 3:

Alpha is .05

STEP 4:

Degree of freedom = (r-1) (c-1) = (4-1) (2-1) =3

For ∝ = .05, the critical table value is 7.815

STEP 5:

NO. O.F E.F O-E (O-E)^2 (O-E)^2/E1 12 14.56 -2.56 6.55 0.452 4 2.6 1.4 1.96 0.753 6 5.72 0.28 0.08 0.014 4 3.12 0.88 0.77 0.255 16 13.44 2.56 6.55 0.496 1 2.4 -1.4 1.96 0.827 5 5.28 -0.28 0.08 0.018 2 2.88 -0.88 0.77 0.27

3.05Table 6.1.1

STEP 6: Since the calculated value of χ 2 is 3.05 which is less than the tabulated value i.e. 7.815. Hence, null hypothesis is accepted and it is concluded that gender and preference for brands are independent.

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6.2. SERVICES AND GENDER

Service Gender Totalmale female

call rates 12 11 23sms service 0 3 3

Network 11 9 20value added service 3 1 4

26 24 50Table 6.2

H0: Gender and services provided by brands are independent.

H1:Gender and services provided by brands are not independent.

Value df Asymp. Sig. (2-sided)Pearson Chi-Square 4.170 3 0.244

Likelihood Ratio 5.369 3 0.147Linear-by-Linear Association 0.387 1 0.534

N of Valid Cases 50Table 6.2.1

Calculated value of chi-square (d.f. =3, significance level=0.244) =4.170

Tabulated value of chi-square (d.f. =3, significance level=0.05) =7.815

Since the calculated value of χ 2 is 4.170 which is less than the tabulated value i.e. 7.815. Hence, null hypothesis is accepted. It can be concluded that gender and services provided are independent.

6.3. FACTORS AND GENDER

Factors Gender Totalmale female

brand image 8 5 13advertisement 2 1 3

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Offers 14 11 25value added service 2 7 9

26 24 50Table 6.3

H0: Gender and factors for choosing a telecom operator are independent.

H1: Gender and factors for choosing a telecom operator are not independent.

Value df Asymp. Sig. (2-sided)Pearson Chi-Square 4.090 3 0.252

Likelihood Ratio 4.261 3 0.235Linear-by-Linear Association 2.199 1 0.138

N of Valid Cases 50Table6.3.1

Calculated value for chi-square (d.f. = 3, level of significance=0.252) =4.090

Tabulated value for chi-square (d.f. =3, level of significance=0.05 ) =7.815

Since the calculated value for χ 2 is 4.090 which is less than the tabulated value i.e. 7.815. Hence, the null hypothesis is accepted. It can be concluded that gender and factors for choosing a telecom operator are independent.

6.4. OVERALL SATISFACTION AND GENDER

Satisfaction Gender Totalmale female

very dissatisfied 1 1 2Dissatisfied 1 3 4

Neutral 9 9 18Satisfied 10 9 19

very satisfied 5 2 726 24 50

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Table 6.4

H0: Gender and overall satisfaction are independent.

H1: Gender and overall satisfaction are not independent.

Value df Asymp. Sig. (2-sided)Pearson Chi-Square 2.262 4 0.688

Likelihood Ratio 2.347 4 0.672Linear-by-Linear Association 1.351 1 0.245

N of Valid Cases 50Table 7.4.1

Calculated value of chi-square (d.f. = 4, level of significance = 0.688) = 2.262

Tabulated value of chi-square (d.f. = 4, level of significance = 0.05) = 9.488

Since the calculated value of χ 2 is 2.262 which is less than the tabulated value i.e. 9.488. Hence, the null hypothesis is accepted. It can be concluded that gender and overall satisfaction derived from different network operators are independent.

7. FINDINGSFrom the analysis of the questionnaire we find that most of the consumers use Vodafone. It captures the biggest market share by providing quality services, good network coverage, value added service and various offers. Airtel and Idea hold the second and third position respectively. Other network operators come in the last category with small market share.

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The most influencing service for the consumers is cheaper call rates. Network coverage also affects the mindset of consumers while choosing a brand. SMS services and value added service are less effective.

The most influencing factor while choosing a particular network operator is various offers and schemes. Brand image also affects the customers. Value added services affect to a certain extent. Advertisements are less effective in influencing the customers.

Most of the consumers find the broadband coverage and speed of their telecom operator as good and average. Some respondents find it excellent. Very few respondents find it poor.

Most of the consumers find the technical support provided by their network operator as average and good. Some respondents find it excellent. Very few respondents find it poor.

Most of the consumers responded that waiting time before speaking to a representative is average. Some respondents are taken care of immediately. Only few have to wait for more than average time.

Most of the consumers responded that the problem solving time is less than a day. Some respondents get immediate resolution. Few people responded that it takes longer time to get the problem solved.

Most of the people responded that they have to contact once for the correction of problem. Some respondents have to contact twice or thrice. There are few consumers who have to contact repeatedly for getting the problem solved.

Most of the consumers are satisfied with their current telecom network operator. There are few respondents who have neutral opinion. The number of respondents for dissatisfied and highly satisfied is less.

Vodafone holds first position for preference among consumers. Airtel and Idea hold second and third position respectively. Other network operators are less preferred.

The number of females using Vodafone is more than the males whereas the number of males using Airtel, Idea and other network operator is more than the females.

Male respondents are more influenced by brand image, advertisements and offers as compared to females whereas females are more influenced by value added services.

The number of female respondents choosing Vodafone as their first preference is more than the number of males whereas the number of males choosing Airtel, Idea and other network operator is more than the number of females.

The use of a particular network operator, services provided, various influencing factors and overall satisfaction all are independent of gender.

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8. CONCLUSIONThe study was undertaken to examine and understand consumers’ perception for choosing a particular network operator in the telecom sector. Consumer’s preference widely varies in accordance with various offers, value added services, advertisement, network coverage, technical support, broadband speed etc. hence from the result of our study we can conclude that various offers, value added services and network coverage have significant positive impact on consumers while choosing a brand.

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The outcome of this research shows a comprehensively integrated framework for us to understand the vibrant relationships among several dimensions of service quality, price, advertisement and value added services that affect the consumers most while choosing a brand.

Customer satisfaction is established when the brands fulfil the needs and desires of customers. The service providers should focus on the quality of service provided rather than high promotion to make a distinct image in customers mind. The study revealed that very few respondents are influenced by advertisement; all are concerned about the quality of services.

9. BIBLIOGRAPHY

www.ijmtpublication.com www.iiste.org www.jgateplus.com www.academicjournals.org

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www.ssrn.com www.ccsent.org www.scholarly-journals.com www.vsrdjournals.com

10 . REFERENCES

1. Seth et al (2008), “Managing customer perceived service quality for cellular mobile

telephony; an empirical investigation” Vikalp.2008. 2. Kalpana and Chinnadurai (2006), “Promotional strategies of cellular services: A customer perspective”, Indian Journal of marketing, may-2006.pp.29.

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3. Kalavani (2006), “To study the gap between service promised and service offered by service provider”.

4. Shikha Oja (2009), “Customer awareness of VAS of telecom sector of India”, The ICFAI University, Journal of Infrastructure,pp;1-14

5. Ganguli Shirshendu (2008),” changing face of relationship marketing; Evaluation of CRM to EMM “, Effective executive, april-pp.54.

6. Girish Taneja and Neeraj Kaushik (2007) “customer perception towards mobile service providers; An analytical overview”, The IUP Journal of services marketing,pp.14.

7. Anita Seth (2007), “quality of service parameters in cellular mobile communication”, international journal of mobile communications, vol-5, issue 1, jan-2007.

8. Swadeshkumar Samanta (2007), “Impact of price on mobile subscription and revenue”, Dept. of computing and electronic systems, University of Essex, Colchester, UK.

9. Wilska (2001), “New technology and young people’s consumer identities; A comparative study between Finland and Brazil” – senior researcher in economic sociology at the Turku School of economics, Finland.

10. Heman Requelme (2001), “Do consumers know what they want? “, Journal of consumer marketing, Vol.18, Iss-5,pp 437- 448.

11. J.D.Power and associate reports; Exceptional service satisfaction enhances dealer and manufacturer profitability through improved customer retention.

12. Kushan Mitra (2005), Business Today, 5 June 2005.

13. Bepko and Charlene Pleger (2002), „Service Intangibility and Its impact on Consumer Expectations of Service Quality‟, Journal of Service Marketing, Vol. 14, No. 2, pp. 9-26.

14. Rick Kazman (2008). “The Affective and Cognitive Impacts of Perceived Touch on Online Customers‟ Intention to Return in the Web-based eCRM environment,” Chapter 5.19 in S. A. Backer ed., Electronic Commerce: Concepts, Methodologies, Tools and Applications, Information Science Reference, 2008.

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15. Aisha Khan (2005), „Effectiveness of Predictive Churn Models for sustaining market share in telecom industry –An Appraisal‟, ICFAI Journal of Services Marketing, September 2005.

18. ANNEXURE

"CONSUMER PREFERENCES FOR A PARTICULAR BRAND IN TELECOM SECTOR"

Name _______________

Gender ______________

Age ________________

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Which mobile network operator do you use?

 Vodafone

 Airtel

 Idea

 Docomo

 Other: 

Which services are more helpful to you while using your telecom service?

 Call rates

 SMS service

 Network

 Value added service

Which factor influence you the most in deciding the telecom service?

 Brand image

 Advertisement

 Offers 

 Value added services

How do you rate the mobile broadband coverage from your network operator?

 Poor 

 Average

 Good

 Excellent

How do you rate the mobile broadband speed from your network operator?

 Poor 

 Average

 Good 

 Excellent

About how long do you have to wait before speaking to a representative?

 I was taken care of immediately

 Within 5 minutes

 Within 5-10 minutes

 More than 10 minutes

About how long does it take to get the problem solved?

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 Immediate resolution

 Less than a day

 Between 2-5 days

 More than a week

 Problem was not solved

How many times do you have to contact customer service before the problem is corrected?

 Once

 Twice

 3 times

 More than 3 times

How do you rate the technical support from your network operator?

 Poor 

 Average

 Good

 Excellent

Overall how much you are satisfied or dissatisfied with your current telecom operator?

 Very dissatisfied

 Dissatisfied

 Neutral

 Satisfied

 Very satisfied

 Other: 

If you were asked to choose among the following as first preference which would you choose?

 Vodafone 

 Airtel

 Reliance

 BSNL

 Other: 

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