CONSUMER PREFERENCE TOWARDS

ON TATA TELICOM SERVICE

COMPARISON TO ANOTHER
TELICOM SERVICES

SUBMITTED BY:

LAVKUSH PATHAK

M.B.A.(MARKETING)

1
CHAPTER I

2
 1.1 INTRODUCTION

Communication has been one of the most important aspects of the growth of human society

and culture. Telecommunications, the transmission of signals over a distance for a purpose

of communication, is also very important. It provides business, money and market stability

in the world. The telecom sector is one of the leading contributors to India's flourishing

economy. Telecommunication Sector Opportunities in India assures a transparent, safe, and

secured ambiance for the telecom market. It include introduction of Internet telephony

services, privatization of VSNL, and introduction of a number of international long distance

services sector. The opportunities in the Indian telecom sector is increasing at a massive

pace with the introduction of newer and innovative schemes in various sectors and at present

the telecom sector in India is claimed to be one of the major contributors in India's

flourishing economy.

TATA is a rapidly growing business group based in India with significant international

operations. The TATA name is a unique asset representing leadership with trust. TATA

Teleservices spearheads the Group’s presence in the telecom sector. Incorporated in 1996,

TATA Teleservices was the first to launch CDMA mobile services in India with the Andhra

Pradesh circle. TATA Teleservices has established a robust and reliable 3G ready telecom

infrastructure that ensures quality in its services.

3
Customer satisfaction in telecommunications will reflect the service delivery process as

experienced by customers. The interaction between customers and the delivery system is

effected via alternative contact points; each one of them will be investigated for its impact

on the overall customer satisfaction. That is, the service delivery system can be decomposed

into alternative customer contact points that shape customers' overall judgment about the

organization. Each contact point may retain a relative independence concerning criteria of

customer satisfaction such as personnel, speed, reliability, and pricing.

The objectives of this study are to find the customer’s attitudes towards the TATA Indicom

services and to know the reasons for cancellation of the services. This study helps to find

out the factors affecting purchasing behavior of telecom products and to know customer’s

opinion to the services offered by the TATA Indicom.

4
 1.2 Objectives of the study

Primary objective:

To study the customer evaluation of TATA Indicom services at Agra Cicle market.

Secondary objectives:

 To find out the telecommunication users in the Agra Circle market.

 To know the age and gender wise classification for usage of telecommunication

facility.

 To find out which all services have been tried by the respondents so far

 To know the customer’s opinion about the competitors of TATA Indicom

 To know the factors affecting the purchasing behavior of telecommunication

customers.

 To find out the attributes that affects the buying behavior of the TATA indicom

service

 To find the customer’s attitude towards TATA Indicom services

 To find out the customer’s opinion about the hand set which provide by TATA

Indicom.

 To know the satisfaction level of recharge vouchers offered by the company.

 To find the reasons for cancellation of TATA Indicom connection.

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 1.3 Problem statement

Do the customer of TATA indicom services such as

 Price

 Coverage

 Sales promotion

 Offers

 Customer service

 Staff response

 Advertisements have a significant role in customer decision.

1.4 Significance of the study

Consumer feedback is providing the market reflections to the marketer. This enables them to

gain awareness about their market performance and customer preference. The conducted

study examined the customer satisfaction status on various service offerings by TATA

Indicom and the major focus has given to draw the reasons behind cancellation of services.

The results related to the said area are an eye opener to the marketer for identifying his gaps

and fix it at the earliest.

The ruling factors of today’s market is having a common axis named ‘consumer’, who is

deciding the destiny of any firm in the market. Hence the study on related area is having

significance to the selected telecom operator and since it is common to other operators in the

same and related field, the problems that had drawn through the survey may be a reference

for other marketers also. The researcher had gained familiarity and practical exposure to the

6
real market world through the conducted study. This can also be a secondary source for

other people who plan or are conducting studies in the similar area.

CHAPTER II

Profiles
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 2.1 INDUSTRY PROFILE

Introduction

The Indian Telecommunications network with 110.01 million connections is the fifth largest

in the world and the second largest among the emerging economies of Asia. Today, it is the

fastest growing market in the world and represents unique opportunities for U.S. companies

in the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005,

is expected to reach 250 million in 2007. According to Broadband Policy 2004, Government

of India aims at 9 million broadband connections and 18 million internet connections by

2007. The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million

in FY2004- 2005. In the last 3 years, two out of every three new telephone subscribers were

wireless subscribers. Consequently, wireless now accounts for 54.6% of the total telephone

subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expected

to bypass 2.5 million new subscribers per month by 2007. The wireless technologies

currently in use are Global System for Mobile Communications (GSM) and Code Division

Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing

mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the

country.

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Evolution of the industry-Important Milestones

Year

1851 First operational land lines were laid by the government near Calcutta (seat
of British power)

1881 Telephone service introduced in India

1883 Merger with the postal system

1923 Formation of Indian Radio Telegraph Company (IRT)

1932 Merger of ETC and IRT into the Indian Radio and Cable Communication
Company (IRCC)

1947 Nationalization of all foreign telecommunication companies to form the

Posts, Telephone and Telegraph (PTT), a monopoly run by the
government's Ministry of Communications

1985 Department of Telecommunications (DOT) established, an exclusive

provider of domestic and long-distance service that would be its own
regulator (separate from the postal system)

1986 Conversion of DOT into two wholly government-owned companies: the

Videsh Sanchar Nigam Limited (VSNL) for international
telecommunications
and Mahanagar Telephone Nigam Limited (MTNL) for service in
metropolitan areas.

1997 Telecom Regulatory Authority of India created.

1999 Cellular Services are launched in India. New National Telecom Policy is
adopted.

2000 DoT becomes a corporation, BSNL

9
A large population, low telephony penetration levels, and a rise in consumers' income and

spending owing to strong economic growth have helped make India the fastest-growing

telecom market in the world. The first and largest operator is the state-owned incumbent

BSNL, which is also the 7th largest telecom company in the world in terms of its number of

subscribers. BSNL was created by corporatization of the erstwhile DTS (Department of

Telecommunication Services), a government unit responsible for provision of telephony

services. Subsequently, after the telecommunication policies were revised to allow private

operators, companies such as Bharti Telecom, TATA Indicom, Vodafone, MTNL,

Idea,Vodafone and BPL have entered the space. major operators in India. However, rural

India still lacks strong infrastructure.

In 2007, an article by Businessweek magazine reported that India's mobile phone market is

the fastest growing in the world, with companies adding some 6 million new customers a

month.

The total number of telephones in the country crossed the 300 million mark on June 18

2008The overall tele-density has increased to 36.98% in March 2009 In the wireless

segment, 15.87 million subscribers have been added in March 2009. The total wireless

subscribers (GSM, CDMA & WLL (F)) base is more than 391.76 million now. The wireline

segment subscriber base stood at 38.22 million with a decline of 0.13 million in October

2008.

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Market shares of public and Private Players

Both fixed line and mobile segments serve the basic needs of local calls, long distance calls

and the international calls, with the provision of broadband services in the fixed line

segment and

GPRS in the mobile arena. Traditional telephones have been replaced by the codeless and

the wireless instruments. Mobile phone providers have also come up with GPRS-enabled

multimedia messaging, Internet surfing, and mobile-commerce. The much-awaited 3G

mobile technology is soon going to enter the Indian telecom market. The GSM, CDMA,

WLL service providers are all upgrading them to provide 3G mobile services.

Along with improvement in telecom services, there is also an improvement in

manufacturing. In the beginning, there were only the Siemens handsets in India but now a

whole series of new handsets, such as Nokia's latest N-series, Sony Ericsson's W-series,

Motorola's PDA phones, etc. have come up. Touch screen and advanced technological

handsets are gaining popularity. Radio services have also been incorporated in the mobile

handsets, along with other applications like high storage memory, multimedia applications,

multimedia games, MP3 Players, video generators, Camera's, etc. The value added services

provided by the mobile service operators contribute more than 10% of the total revenue.

Global telecom sector

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Earnings visibility

Earnings growth is being driven by improving pricing conditions, stabilizing operating

trends, aggressive cost cutting initiatives, a positive regulatory environment, strong wireless

growth, and new market opportunities. This has translated into greater visibility of forward

earnings as evidenced by recent increased analyst upgrades within the sector.

Merger synergies

Given the substantial amount of excess capital available in the sector and in private equity

we expect to see additional merger and acquisition activity, albeit at a slower pace than

recently witnessed. Global telecom M&A deals over the past two years have reflected

market expansion but have also had a positive effect on the buyers’ balance sheets.

Partnering companies have begun realizing their synergies through cost reductions and

economies of scale. In the US, the largest three companies now account for over 70% of the

sector market cap; this compares to 34% in 1990. Trends in bundled services are also paving

the way for additional M&A activity. Sector consolidation will further increase the

importance of stock selection.

Growth

While cost-cutting has been a major source of earnings growth, we have seen top-line

pressures decreasing which will help revenues become a larger driver of earnings growth

again. We see growth within the sector coming from a number of areas including:

broadband, 3G (third generation) technology, expansion in emerging markets. Broadband

penetration has been accelerating as internet customers are seeking faster downloads for

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audio and video files. 3G services, which facilitate the simultaneous transfer of both voice

and non-voice (i.e. video, downloads, SMS, etc.) data are providing mobile users with a

much more robust communication platform and should finally begin to realize their growth

potential in 2007. Emerging market companies benefit from low penetration rates and also

tend to have lower leverage, higher margins and higher growth than most developed markets

telecom companies.

Global opportunities

It has become less difficult to find attractive telecom investment opportunities globally than

it was a year ago. As the fog has lifted from the sector, there are increased opportunities

within both the growth and value spaces. In the US, improved clarity in the regulatory

environment has opened the door for a number of players. Within Europe the risk of

negative news flow remains a potential detractor but there is valuation support from

attractively priced stocks. There is little difference between the European and US integrated

carriers making it more of a stock call than a regional call. Within Asia we see high revenue

growth and return on assets. Overall, emerging markets continue to be the fastest growing

region within the sector and offer the largest valuation discount. Additionally, the healthy

macro environment in emerging markets coupled with increasing domestic wealth is

creating a positive consumer environment in the local markets.

Fortis Investments: Telecom sector strategy

Our strategy is to create a more focused portfolio of diversified high conviction ideas. In the

current environment we continue to be sensitive to relative valuations and positive earnings

momentum. Our portfolio is largely levered to growth. We have positioned ourselves in

13
companies that will provide synergies as well as margin expansion through wireless

exposure. We recognize the sensitivity of the regulatory environment in some markets and

have minimized our exposure to those markets. We also continue to overweight our

exposure to

niche players within developed markets as well as to emerging markets which have low

penetration rates and more growth opportunities.

tre2.2 COMPANY PROFILE

TATA GROUP

TATA is a rapidly growing business group based in India with significant international

operations. Revenues in 2007-08 are estimated at $62.5 billion (around Rs251,543 crore) of

which 61 per cent is from business outside India. The Group employs around 350,000

people worldwide. The TATA name has been respected in India for 140 years for its

adherence to strong values and business ethics.

The business operations of the TATA Group currently encompass seven business sectors:

communications and information technology, engineering, materials, services, energy,

consumer products and chemicals. The Group’s 27 publicly listed enterprises have a

combined market capitalisation of some $60 billion, among the highest among Indian

business houses, and a shareholder base of 3.2 million. The major companies in the Group

include TATA Steel, TATA Motors, TATA Consultancy Services (TCS), TATA Power,

TATA Chemicals, TATA Tea, Indian Hotels and TATA Communications.

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The Group’s major companies are beginning to be counted globally. TATA Steel became

the sixth largest steel maker in the world after it acquired Corus. TATA Motors is among

the top five commercial vehicle manufacturers in the world and has recently acquired Jaguar

and Land Rover. TCS is a leading global software company, with delivery cen s in the US,

UK, Hungary, Brazil, Uruguay and China, besides India. TATA Tea is the second largest

branded tea company in the world, through its UK-based subsidiary Tetley. TATA

Chemicals is the world.s second largest manufacturer of soda ash. TATA Communications

is one of the world.s largest wholesale voice carriers.

In tandem with the increasing international footprint of its companies, the Group is also

gaining international recognition. Brand Finance, a UK-based consultancy firm, recently

valued the TATA brand at $11.4 billion and ranked it 57th amongst the Top 100 brands in

11 the world. Businessweek ranked the Group sixth amongst the .World.s Most Innovative

Companies. and the Reputation Institute, USA, recently rated it as the .World.s Sixth Most

Reputed Firm.

Founded by Jamsetji TATA in 1868, the TATA Group.s early years were inspired by the

spirit of nationalism. The Group pioneered several industries of national importance in

India: steel, power, hospitality and airlines. In more recent times, the TATA Group.s

pioneering spirit has been showcased by companies like TATA Consultancy Services,

India.s first software company, which pioneered the international delivery model, and

TATA Motors, which made India.s first indigenously developed car, the Indica, in 1998 and

recently unveiled the world.s lowest-cost car, the TATA Nano, for commercial launch by

end of 2008.

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The TATA Group has always believed in returning wealth to the society it serves. Two

thirds of the equity of TATA Sons, the TATA Group’s promoter company, is held by

philanthropic trusts which have created national institutions in science and technology,

medical research, social studies and the performing arts. The trusts also provide aid and

assistance to NGOs in the areas of education, healthcare and livelihoods. TATA companies

also extend social welfare activities to communities around their industrial units. The

combined development-related expenditure of the Trusts and the companies amounts to

around 4 per cent of the Group.s net profits.

Going forward, the Group is focusing on new technologies and innovation to drive its

business in India and internationally. The Nano car is one example, as is the Eka

supercomputer (developed by another TATA company), which in 2008 is ranked the world.s

fourth fastest. The Group aims to build a series of world class, world scale businesses in

select sectors. Anchored in India and wedded to its traditional values and strong ethics, the

Group is building a multinational business which will achieve growth through excellence

and innovation, while balancing the interests of its shareholders, its employees and wider

society.

CORE VALUES OF TATA

Purpose

At the TATA Group “ our purpose is to improve the quality of life of the communities we

serve. We do this through leadership in sectors of national economic significance, to which

the Group brings a unique set of capabilities. This requires us to grow aggressively in

focused areas of business. Our heritage of returning to society what we earn evokes trust

among consumers, employees, shareholders and the community. This heritage is being

16
continuously enriched by the formalization of the high standards of behaviour expected

from employees and companies”. The TATA name is a unique asset representing leadership

with trust. Leveraging this asset to enhance Group synergy and becoming globally

competitive is the route to sustained growth and long-term success.

FIVE CORE VALUES

The TATA Group has always sought to be a value-driven organization. These values

continue to direct the Group’s growth and businesses. The five core TATA values

underpinning the way we do business are:

Integrity: We must conduct our business fairly, with honesty and transparency. Everything

we do must stand the test of public scrutiny.

Understanding: We must be caring, show respect, compassion and humanity for our

colleagues and customers around the world, and always work for the benefit of the

communities we serve.

Excellence: We must constantly strive to achieve the highest possible standards in our day-

to-day work and in the quality of the goods and services we provide.

Unity: We must work cohesively with our colleagues across the Group and with our

customers and partners around the world, building strong relationships based on tolerance,

understanding and mutual cooperation.

Responsibility: We must continue to be responsible, sensitive to the countries, communities

and environments in which we work, always ensuring that what comes from the people goes

back to the people many times over.

TATA INDICOM - PROFILE

• Brand Name: TATA Indicom

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• Network: CDMA 2000-1x

• Network Coverage: 20 Telecom circles

• Subscriber base: > 2 million

• Market Share: 8 . 10%

• Subscriptions: Post Paid, Pre Paid , internet facility

TATA Teleservices is part of the INR Rs. 2,51,543 Crore (US$ 62.5 billion) TATA Group,

that has over 80 companies, over 3,30,000 employees and more than 3.2 million

shareholders. With a committed investment of INR 36,000 Crore (US$ 7.5 billion) in

Telecom (FY 2006), the Group has a formidable presence across the telecom value chain.

TATA Teleservices spearheads the Group’s presence in the telecom sector. Incorporated in

1996, TATA Teleservices was the first to launch CDMA mobile services in India with the

Andhra Pradesh circle.

Starting with the major acquisition of Hughes Tele.com (India) Limited [now renamed

TATA Teleservices (Maharashtra) Limited] in December 2002 the company swung into an

expansion mode. With the total Investment of Rs 19,924 Crore, TATA Teleservices has

created a Pan India presence spread across 19 circles that includes Andhra Pradesh, Gujarat,

Karnataka, Delhi, Maharashtra, Mumbai, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab,

Haryana,

Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata, Madhya Pradesh

and RoWB.

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Having pioneered the CDMA 1X technology platform in India, TATA Teleservices has

established a robust and reliable 3G ready telecom infrastructure that ensures quality in its

services. It has partnered with Motorola, Ericsson, Lucent and ECI Telecom for the

deployment of a reliable, technologically advanced network.

The company, which heralded convergence technologies in the Indian telecom sector, is

today the market leader in the fixed wireless telephony market with a total customer base of

over 3.8 million.

TATA Teleservices bouquet of telephony services includes Mobile services, Wireless

Desktop Phones, Public Booth Telephony and Wireline services. Other services include

value added services like voice portal, roaming, post-paid Internet services, 3-way

conferencing, group calling, Wi-Fi Internet, USB Modem, data cards, calling card services

and enterprise services.

Some of the other products launched by the company include prepaid wireless desktop

phones, public phone booths, new mobile handsets and new voice & data services such as

BREW games, Voice Portal, picture messaging, polyphonic ring tones, interactive

applications like news, cricket, astrology, etc.

TATA Indicom redefined the existing prepaid mobile market in India, by unveiling their

offering . TATA Indicom .Non Stop Mobile. which allows customers to receive free

incoming calls. TATA Teleservices today has India.s largest branded telecom retail chain

and is the first service provider in the country to offer an online channel

Http://www.ichoose.in to offer postpaid mobile connections in the country.

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TATA Teleservices has a strong workforce of 6000. In addition, TTSL has created more

than 20,000 jobs, which will include 10,000 indirect jobs through outsourcing of its

manpower needs.

Today, TATA Teleservices Limited along with TATA Teleservices (Maharashtra) Limited

serves over 27 million customers in more than 6000 towns. With an ambitious rollout plan

both within existing circles and across new circles, TATA Teleservices offers worldclass

technology and user-friendly services in 19 circles.

TATA Indicom Product Profile

TATA Indicom has three services Dial up internet, mobile connection, landline connection.

Products / Services

Internet Mobile service Landline

service

Dial up internet Prepaid mobile Wireless phones

Mobile internet Post paid mobile Landline phones
Wireless internet Mobile mobile

Dial-up Internet through

landline from TATA Indicom, provides bundled dialup internet access along with Landline

connection. This dialup internet service is activated by default for on customer’s phone, no

separate subscription is required. Customers have to purchase an external modem or use

PC/Laptop’s internal modem to connect to internet. After creating the dialer on

computer,intenet facility will activate.

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Mobile internet:- TATA Indicom offers world-class internet service through the CDMA

network.. Just connect TATA Indicom mobile phone, using a data cable to PC or Laptop &

get started.TATA Indicom Internet through mobile service offers world-class standards for

wireless Internet access. The benefits are:

• High speed Internet access.

• No need to buy an external modem since your existing TATA Indicom mobile phone

has one.

• User can receive and make voice calls when no active data transfer takes place.

Wireless internet it is used with a USB modem, so we can use where ever we go. It provides

high speed connection and free downloading.

Prepaid mobile: In Prepaid service we make an advance payment for the usage i.e. to make

calls and use data services. There are no deposits to be made for STD/ISD. These features

are pre-activated. Also, need not wait for a bill to be generated to know the usage & then

pay accordingly.

Features

• Free SMS

• Roaming in over 2400 cities

• STD & ISD Facility

Postpaid mobile: In Postpaid service, the company itself generate the monthly bill to the

customers. TATA Indicom postpaid mobile phone STD call charges are amongst the lowest

in India for distances over 500 km with absolutely no additional-airtime charges Most

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importantly, TATA Indicom postpaid mobile phone offers superior voice clarity,

congestion-free networks, high speed data access, and coverage in over 1000 cities.

Mobile handset: TATA Indicom has the widest range of CDMA Handsets to choose from a

range of the top CDMA mobile handsets from Nokia, Samsung, Motorola, Huawei and

Haier with low price.

Currently available CDMA Mobile Phones:

Samsung

 Samsung Duos Touch

 Samsung Mpower Muzik

 Samsung Guru muzik

 Samsung Hero B189

 Samsung Super Hero mobile phones

 Mpower 309 mobile phones

 Mpower 569 mobile phones

Huawei

 Huawei C2206 mobile phones

 Huawei C2806 mobile phones

 Huawei C2809 mobile phones

 Huawei C5100 mobile phones

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Haier

 Haier CG100

 Haier C2030 mobile phones

 Haier C200 mobile phones

 Indicom

Aurum

 Radio Phone mobile phones

 Sumukha mobile phones

BlackBerry

 BlackBerry 8830 Smartphone

 ZTE

 ZTE- CS130

Wireless phones: TATA introduced Walky Talky, are highly economical and easy to use.

Features of Walky Fixed Wireless Phones

• Get Missed Call details

• Send and receive SMS

• Store family and friends numbers in the in-built phone book

• Get Receiver Off-hook Alarm

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 • Receive calls when receiver off-hook (after the alarm period)

• Avail Hotline with timer facility

• Select from 10 in-built ring tones

• Get alerts for unread messages

• Talk more with 2 hours talk time & 24 hours standby time

• Set Alarm and Reminder Alerts

• Speed dial from Phone Book

• Track calls with the Call Log Register

• Dial frequently called numbers from memory and save time

• Make an emergency call, even if your phone is disconnected

• Install the phone without disfiguring your walls

• Control cost with per minute alerts

• Speaker Phone

Walky Wireless Service

• Savings on monthly bills by paying just landline rates

• Roam at home

• Retain your number even when you change home or office

• Get a quick connection

• Save using Group Call across wireline, mobile and wireless phones

• Enjoy voice based Infotainment services*

24
 • Avoid suffering dead phones or irritating linesmen

• Book a connection from the comfort of your home

Security Features

• Bar all calls except to select numbers

• Prevent misuse with the Key Pad Lock

• Enjoy enhanced privacy with CDMA technology

• Dial up through an in-built modem

• Surf the Internet at high speeds

• Receive calls when on the Internet

Landline phones: TATA Indicom offers instant phone connections. TATA Indicom

Landline Phone services based on the state of the art Optical Fibre Cable-based backbone.

TATA Indicom Phone Connections Advantage

 Superior voice clarity

 Instant and hassle - free connections

 Accurate billing

 Secure and tamper - proof lines

 Responsive and friendly service

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TATA indicom have more than 10000 retail outlets in a district. TATA have their own

retail business unit located at all cities. These are: -

 HNI

 BRBU

 EBS

 CMBU

HNI ( High network individuals)

HNI network is used for selling only postpaid products of TATA Indicom like data cards,

walky talky, mobile phones. It provides after sales service also.

EBS (Enterprise Business Service)

The Enterprise Business Service function drives business growth & customer centricity by

providing telecom related solutions to Corporate Entities. The EBS function also undertakes

customer relationship management and retention along with revenue enhancement and

channel management.

BRBU(Branded Retail Business Unit)

The Branded Retail Business Unit looks after the retail chain of the TATA Indicom

Exclusive stores. Branded retail has a national presence with over 3100 outlets comprising

of 600 TTSL (Company) owned stores and more than 2500 stores in the Franchisee

26
format Branded Retail outlets have become the touch points for its customers in more than

top 1000 towns in India.

CMBU(Consumer Market Business Unit)

The Consumer Market Business Unit (CMBU) deals with the large and dynamic pre-paid

segment of the telecom sector. CMBU has always offered to its customers with innovative

offers like Non Stop Mobile (Lifetime Validity) attractive bundled packages (handsets +

connections), cheapest tariff plans, etc.

TATA Indicom has many promotional programs like

 Television advertisement

 Calls free with special recharge offer

 Free downloading for internet facility

 Handset Upgrade program for all the individual post paid customers.

 Seasonal discount with purchase of handset etc…

TATA Indicom products have different pricing strategies. There are two types of pricing

strategies. They are market skimming and market penetration. Skimming means fixing at

high price and selling to those customers who are less price sensitive. Penetration means

fixing at low price initially. TATA Indicom follows their product by fixing the price at

high.ie; market skimming. The price include the hand set and connection charge

Competitors

Competitors Pulse Price Incoming Local STD ISD rates

27
 rate calls rates rates

Reliance 60 sec Rs . Free for .99 Rs. Rs.6

195 life long price/min 2.75 USA,Canada,Europe,
Australia, Singapore,
Hongkong, Malaysia

BSNL 60 sec Rs.495 Free for Rs . 1 Rs. 7.20

like long 2.75 USA,Canada,Europe
,Australia, Singapore,
Hongkong,

TATA 60 sec Rs Free for 1.50 2.75 17.20

Indicom .489 life long USA,Canada,Europe
,Australia, Singapore,
Hongkong,New Zealand

CHAPTER III
Research methodology
28
 RESEARCH METHODOLOGY

According to Clifford Woody Research comprises defining and redefining problems

formulating hypothesis or suggested solutions; collecting organizing and evaluating data;

making deductions and reaching conclusions; and at last carefully testing the conclusions to

determine whether they fir the formulating hypothesis.

4.1 Research approaches

 Descriptive research :-

The research study is conducted through descriptive research. Descriptive research design is

a scientific method which involves observing and describing the behavior of a subject

without influencing it in any way or to identify the cause of something that is happening.

For instance, this research could be used in order to find out what age group is buying a

particular Brand of the product, where a company’s market share differs between

geographical region or to discover how many competitors a company has in their

conducting the research must comply with strict research requirement in order to obtain the

most accurate figures / results possible.

29
4.2 Research design

A research design is the determination and statement of the general research approach or

strategy adopted for the particular project.

 Sample size

The number of sample is 110 from agra city, which fulfills the requirement. Each

respondent is treated as a case of detailed analysis

 Sampling design

Convenience sampling is used for this study. Convenience sampling is used in exploratory

research where the researcher is interested in getting an inexpensive approximation of the

truth. As the name implies, the sample is selected because they are convenient. This non

probability method is often used during preliminary research efforts to get a gross estimate

of the results, without incurring the cost or time required to select a random sample.

4.3 Data collection method

For the accumulation of data the sources were primary and secondary data.

 Primary Data:

These data are raw material. They are the measurement observed and recorded as a part of

original study. They are original in character. The investigator or researcher directly collects

this data. The basic form of obtaining this data is by observing and questioning.

30
The Primary data was a detailed interview schedule with the help of a detailed

questionnaire. The samples were drawn purposively from various areas for the relevance of

the study. Discussions were held with the general, branch manager and executives of the

company to design and execute the research

 Secondary Data:

They are not originally drawn by the researcher as fresh data. These are collected by some

other person for this purpose and published. These types of data can be collected through

various sources.

For this study the secondary data were collected from magazines ,journals , references and

websites and manuals of the TATA Indicom.

4.4 Tools and techniques of analysis

Percentage analysis and statistical tools were used in the study. The statistical tools used for

data analysis are Rank correlation and hypothesis testing. ANOVA and t – test had applied

for hypothesis testing.

Rank Correlation =

If Rank Correlation is negative we can say that there is no correlation between the variable,

if rank correlation is positive we can say that there is a relation between the variable, if the

Rank correlation is less than.06 we can say that there is a low degree of relation between the

variable, if rank correlation greater than .06 we can say that there is high degree of relation

betweeRESE n the variables and if Rank Correlation is very nearer to 1 such as .99 we can

say that there is very high degree of relation between the variable.

op

31
4.5 Location and Duration of the study

The study was conducted among the consumers of agra District. The duration of the project

study was two months( May 25th - July25th 2009)

4.6 Scope of the study

• The study gives the information about the telecom market

• This will helps to identify the customer’s preferences and their complaints towards

the company.

• The study will helps to the company for identifying the customer’s needs and wants.

4.7 Limitations of the study

• Lack of Universal application: - since the study had been conducted only in a

selected region and only in telecom consumers, the applicability of the study in different

region and consumer products are restricted.

• Probability based study: - Study is being done with the aid of Convenience

sampling. Hence the entire customers had not been considered for their feedback and the

inference drawn on the basis of selected sampling.

• Business of the respondents: - Walk in respondents were busy with their schedule

and hesitate to cooperate with the researcher and because of their rushing to home or office,

they had completed the questionnaire quickly which may yield some inherent errors.

32
CHAPTER IV

33
 Data Analysis And
Interpretation

Table 5.1

Personal details

male female Total Percentage

Age Married unmarried Married Unmarried
group
Below 9 0 9 0 18 19.8
25
25 – 35 8 10 8 12 48 52.8

Above 2 23 4 25 54 59.4
35
Total 19 33 21 37 110

Interpretation

Majority of the respondents who participated in the survey are unmarried and above 35 age

category. The conducted study had ensured equal participation of males and females.

34
Chart 5.1

Gender

35
Chart 5.1.

Age group

36
 Chart 5.1

Marital status

37
 Table 5.2

Employment status

male female Total Percentage

38
Age group Employed self empl un emp Employed self empl unemp

Below 25 2 6 1 0 6 3 18 19.8%

25 – 35 7 9 2 4 13 3 38 41.8%

Above 35 8 12 5 8 17 4 54 59.4%

Total 17 27 8 12 36 10 110

Interpretation

Majority of the respondents are self employed and above 35 age category. An equal
proportion of male female respondents of different age groups had participated in the
survey.

Chart 5.2

Employment status

39
40
 Table 5.3

Availability of telecommunication facility

Responses No of respondents Percentage

110 100%
Yes

No 0 0

Interpretation

From the above data exhibits that the entire participants drawn randomly for survey is

having telecommunication facility and hence the study is giving evidence for 100%

telecommunication facility subscription by the agra residential area.

Chart 5.3

41
 Table 5.4

Mobile services tried out by the respondents

Services No : of Percentage
respondents

42
 Airtel 31 34%

Aircel 10 11%

TATA
indicom 110 100%

Bsnl 55 60.5%

Idea 21 23%

Vodafone 18 19.8%

Reliance 11 12.1%

Interpretation

Since the survey had been conducted at the TATA Indicom outlet, all the

respondents are TATA customers. Among the selected 110 customers,

majority ie; 55(60.5%) had tried BSNL service, 31(34%) had tried Airtel,

21(23%) had tried Idea, 18(19.8%) had tried Vodafone , 11(12.1%) had tried

Reliance and 10 had tried Aircel.

Chart 5.4

43
 Table 5.5

Factors affecting buying behavior of the telecommunication

Factors affecting strongly Agree Neutral disagree strongly

buying behavior of
agree disagree
the
telecommunication

Offers 34 39 14 19 4

44
 brand image 12 35 24 22 17
Coverage 109 1

Ads 9 20 25 28 28

advice by friends 11 13 18 42 26

customer service 14 28 28 29 11

Interpretation

The major criteria for deciding the purchase of mobile service for most of the customers

who had surveyed through the questionnaire is maximum network coverage. 67% of the

respondents are looking for offers given by the service provider. Nearly 38% select the

service provider upon the customer service given by them.42% of the respondents select the

service provider upon the company’s brand image. 26% of them choose their service

provider by the advertisement.

Chart 5.5

45
 Table 5.6

Factors affecting buying behavior of the TATA indicom service

Factors no of Percentage

respondents
offers 32 35.2%
brand image 18 19.8%
Coverage 110 100%
Advertisement 15 16.5%
advice by friends and 19 21%

family
influence of sales 22 24.2%

promotion 46
customer service 16 17.6%
Interpretation

100% of the respondents are considering coverage as the main factor for buying TATA

Indicom service. 32 (35.2%) of them are considering offers for the selection of the service

provider. 22 (24.2%) of them are interested in sales promotion tools like lucky draw contest,

coupons etc by the company. 19(21%) depends on friend’s suggestions.18 (19.8%) of them

are considering brand image of the company. 17% of them are choose the service of TATA

Indicom by seeing their advertisement

Chart 5.6

47
.

Table 5.7

User status of TATA Indicom services

Services No of respondents Percentage

Mobile connection 36 39.6%

Landline connection 49 54%

Internet facility 25 27.5%

Interpretation

48
Majority (54%) of the respondents had tried TATA Indicom landline connection because of

the less call rates offered by them. 39.6% of them had tried TATA Indicom Mobile

connection. It includes both prepaid and postpaid services. There are not much users for

internet facility. Only 27.5% of the respondents had tried internet facility.

Chart 5.7

49
 Table 5.8

Satisfaction level of recharge coupons of TATA Indicom

50
 Opinion Highly Satisfied Neutral Dissatisfied Not at all

satisfied satisfied
no of

respondents 17 32 19 23 19

Percentage 15% 29% 17% 21% 17%

Interpretation

49 (45%) respondents are satisfied with the recharge coupons offered by the TATA
Indicom. (38%) of the respondents are not at all satisfied with the recharge coupons offered
by TATA Indicom. So we can say that most of the customers had preferred more offers and
other value added services like SMS offers, less call rates etc.

Chart 5.8

51
 Table 5.9

Opinion about the services offered by the TATA Indicom

52
 Services highly Satisfied neutral Dissatisfied not at all
satisfied satisfied

after sales 21 24 17 42 6
service

Coverage 22 33 25 24 6

Offers 5 20 17 35 33

staff response 8 23 24 30 25

customer 18 21 18 22 31
support

Availability 15 27 28 29 11

Price 11 15 19 39 26

Interpretation

From the study we found that, 48 (44% ) of them are dissatisfied with the after sales services
of the company. 45 (41 %) of the respondents are satisfied with the after sales services of
TATA Indicom. 17 (15 %) of them are neutral in their decision and 55 (50%) are satisfied
with the network coverage of the company and 30 (27%) of them are dissatisfied with the
coverage. Majority of them 68(62%) are not at all satisfied with the offers Only 23 (28%) of
them are satisfied with the offers given by the company. Since the TATA Indicom
customers are not getting the information regarding recharge offers and other value added
services, most of them 55(50%) are not satisfied with the staff response of the company
employees.31(28%) are satisfied with staff response and majority of the respondents.
53(48%) of them are dissatisfied with the customer support. 40(36%) of them are
dissatisfied with the availability of the TATA Indicom services.65(60%) of them are
dissatisfied with the price of the product. The suggestions given by the respondents for
solving their problems are: provide adequate information about offers and other related
services, provide tower to all centers, give adequate training to the employees and provide
recharge vouchers to all retail stores.

53
Chart 5.9

54
 Table 5.10

Cancellation of the TATA Indicom services

55
 Responses No of respondents Percentage

Yes 110 100%

No 0 0%

Interpretation

Since the survey had been conducted among the customers who are cancelled the TATA

Indicom services, all of the respondents had cancelled the service. Because of the various

problems like hand set complaint, billing problem, less offers etc.

56
Chart 5.10

Table 5.11

57
 Cancelled services

Products No of respondents Percentage

Mobile phone 41 37%

Landline 45 41%
Internet facilty 24 22%

Interpretation

The survey found that majority ie; 45 (41%) of the customers had cancelled their landline

connection because of various problems like phone set complaints, excess bill amount, after

sales service. And out of 110 customers 41 (37%) of them had cancelled or migrate their

connection from postpaid to prepaid service. 24 (22 %) of them had cancelled internet

facility because of less coverage, low speed of the server, high price for downloading.

Hence we can say that most of the services provided by the TATA is having customer

complaints, which have to be addressed properly for customer retainment.

58
Chart 5.11

59
 Table 5.12

Reasons for canceling

Reasons No of respondents Percentage

Customer service 16 15%
Not getting the bill on time 41 37%

due to address change

Coverage 37 34%
Other 16 15%

Interpretation

The above table shows that 41 (37% ) of the respondents are having the problem of not

getting the bill on time. This is because of either the address change or technical problem.37

(34% ) of them are not having enough coverage in their residential area.16 (15%) of them

are not satisfied with customer service. This is because of the customers are not satisfied

with the employees behavior when they approach for asking any doubts regarding the offers

or other complaints.

60
Chart 5.12

Table 5.13

61
 Customer preferred mobile network service for roaming facility

Services No of respondents Percentage

BSNL 29 26%
Airtel 30 28%
Vodafone 25 23%
Idea 15 14%
TATA indicom 7 7%
Reliance 4 4%

Interpretation

The above table reveals that 30 (28%) of the respondents prefer Airtel service when they are

going outside kerala because they are attracting to the Airtel offers, coverage etc. 29(26% )

of them are prefer BSNL service. This is because of the wide coverage, customer service

and offers.25 (23%) of them are prefer Vodafone services.15 (14%) of them are prefer Idea

service. Least preferred services for roaming are TATA Indicom (7%) and Reliance 4 (4%).

Chart 5.13

62
 Table 5.14

Hand set complaints

63
 Complaint to hand set No of respondents Percentage

Yes 63 57%

No 47 43%

Interpretation

More than half i.e.,57% of the TATA Indicom customers registered hand set complaint.

Because of the battery complaint, key pad complaint, charger complaint. Only 47 (43% ) of

them are not having the problem in hand set.

Chart 5.14

64
 Table 5.15

Responses of customers for a dissatisfied TATA Indicom service

65
 Responses Strongly Agree Neutral Disagree Strongly
agree disagree

Cancellation of the 30 31 24 17 8
service

Put the complaint and 28 28 25 23 6

continue

Put complaint and cancel 17 17 9 36 31

Discourage others to buy 20 13 6 36 35

Interpretation

This survey found that more than half of the respondents 61 (55%) reacted in such a way

that they will cancel the services without giving any complaint to the company. 25 (23%) of

them disagreed to the decision of cancelling the services.56 (51%) plan to continue the

TATA Indicom’s service after registering their complaints to the company and 29 (26%) of

them are registered that they will cancel the service after giving the complaint to the

company and 67 (61%) of them disagree to that decision. 33 (30% ) of them responded that

they will discourage others from buying the TATA Indicom’s service.

Chart 5.15

66
 5.16 STATISTICAL ANALYSIS AND HYPOTHESIS TESTING

5.16.1 Opinion of customers of different age groups against the satisfaction of cost of

recharge coupons offered by TATA Indicom.

HYPOTHESIS

67
H0= There is no significant difference between customers of different age group regarding

their opinion about the satisfaction of cost of recharge coupons.

H1= There is a significant difference between customers of different age group regarding

their opinion about the satisfaction of cost of recharge coupons.

Age Group N F Sig

Below 25 18 .733 .571
25 – 35 38
Above 35 54

Table Value 2.45

Since the calculated F – value ( .733 ) is less than table value 2.45 and p – value .571 is

greater sthan .05, the analysis of result is accepting the null hypothesis. I.e.:There is no

significant difference among different age groups regarding their satisfaction of cost of

recharge coupons offered by TATA Indicom.

5.16.2 Opinion of different gender category regarding cancellation of phone

connection on dissatisfaction of service.

HYPOTHESIS

H0= There is no significant difference between different gender category of customers

regarding cancellation of TATA Indicom connection on dissatisfaction service.

H1= There is significant difference between different gender category of customers

regarding cancellation of TATA Indicom connection dissatisfaction service.

t – test for equality of Means

68
 T P values

Sig. (2-tailed)

Equal variances assumed .854 .395

Equal variances not assumed .856 .394

Male (N) = 52 Female (N) = 58

t (.854 & .856) < 1.6 p (.395 & .394) > .05

Since the ‘t’ values are less than 1.6 (standard table value at 5% significance ) and p values

are greater than .05 ( level of significance ) we accept null hypothesis. Ie: There is no

significant difference between different gender category of customers regarding cancellation

of TATA Indicom connection on dissatisfaction service.

RANK CORRELATION

5.16.3 Relationship between Coverage and image

Brands Coverage Rank Image Rank

Airtel 40 2 73 1
Aircel 29 5 37 6
Vodafone 38 3 64 3
TATA 30 4 48 5

Indicom
BSNL 75 1 68 2
Reliance 28 6 59 4

Calculated Rank Correlation is 0.99

Since the calculated value is greater than 0.6 and very near to 1, there is high degree of

correlation between coverage and image of the company.

69
5.16.4 Relationship between Connection charge and image of the company.

Brands Connection Rank Image Rank

charge
Airtel 58 3 73 1
Aircel 35 6 37 6
Vodafone 38 5 64 3
TATA 69 1 48 5

Indicom
BSNL 62 2 68 2
Reliance 46 4 59 4

Calculated Rank Correlation is 0.9998

Since the calculated value is greater than 0.6 and it is very near to 1, there is High Degree of

correlation between connection charge and image of the company.

70
5.16.5 Relationship between quality and image of the company.

Brands Quality Rank Image Rank

Airtel 77 1 73 1
Aircel 30 5 37 6
Vodafone 60 2 64 3
TATA 29 6 48 5

Indicom
BSNL 58 3 68 2
Reliance 49 4 59 4

Calculated Rank Correlation is 0.9999

Since the calculated value is greater than 0.6 and it is very near to 1, there is High Degree

of correlation between quality and image of the company.

5.16.6 Relationship between Customer support and image of the company.

71
Brands Customer Rank Image Rank

support
Airtel 77 1 73 1
Aircel 29 5 37 6
Vodafone 56 3 64 3
TATA 49 4 48 5

Indicom
BSNL 68 2 68 2
Reliance 38 5 59 4

Calculated Rank Correlation is 0.98

Since the calculated value is greater than 0.6 and it is very near to 1, there is High Degree of

correlation between customer support and image of the company.

5.16.7 Relationship between Availability and image of the company.

Brands Availability Rank Image Rank

Airtel 74 1 73 1
Aircel 33 5 37 6
Vodafone 61 2 64 3
TATA 39 4 48 5

Indicom
BSNL 45 3 68 2
Reliance 29 6 59 4

72
Calculated Rank Correlation is 0.9996

Since the calculated value is greater than 0.6 and it is very near to 1, there is High Degree of

correlation between customer support and image of the company.

73
 CHAPTER V

Findings And
Recommendations

74
 6.1 FINDINGS

1. 100% of the respondents are having telecommunication facility

2. Majority of the customers had tried BSNL 55(60.5%) service and Airtel 31(34%).

3. According to the survey, the main elements of buying behavior of TATA Indicom

telecommunication service are :

 100% of the respondents are considering coverage

 39(43%) respondents are looking for offers

 35 (38.5%) of them looking for the company brand image

 28 (31%) looking for customer service of the company

 20 (22%) respondents are noticing sales promotion like advertisement.

4. Majority (54%) of the respondents had tried TATA Indicom landline connection

39.6% of them had tried Mobile connection, only 27.5% of the respondents were

tried internet facility.

5. 46.2% of the respondents are not at all satisfied with the recharge coupons offered

by TATA Indicom. 49 (53.9%) respondents are satisfied with the recharge coupons

offered by the TATA Indicom.

6. Since the customer service is low,most of them are 48 (52.8% )dissatisfied with the

after sales services of the company.

7. 55 (61%) are satisfied with the network coverage of the company,30 (33%) of them

are dissatisfied with the coverage,

8. 68(74%) are not at all satisfied with the offers.

75
9. Most of the customers are not getting the vouchers nearby stores

10. 45 or 50% of the customers are cancelled their landline connection ,41 (45.1%) of

them are cancelled or migrate their connection from postpaid to prepaid service, 24

(26.4 %) of them are cancelled internet facility

11. Reasons for cancellation

 41 (45.1% ) of the respondents are having the problem of not getting the bill on

time.

 37 (40.7% ) of them are not having enough coverage in their residential area.

 16 (17.6%) of them are not satisfied with customer service

 62(69%) of the respondents are having hand set complaint.

12. Responses towards the company

 61 (67.1%) of the respondents are cancelled the services without giving any

complaint to the company.

 56 (61.6%) are continue the TATA Indicom’s service after they are complained to

the company

 34(35.3%) of them feels like to cancel the service after giving the complaint to the

company

 33 (36.3% ) of them are discourage others to buy the TATA Indicom’s service.

76
 6.2 SUGGESTIONS

1. Company can decrease call rates to other subscribers for attracting youngsters

2. Voucher card can provide all the retail shops on time for customer convenience.

3. Better quality batteries may be provided with the set.

4. Sales promotion can be more intense, like television ad showing the price, quality, and other
product related details.

5. Even though the company has some offers or other value added services, it can be well
known by the sales people. So it is better to provide adequate training to the sales people.

6. Provide the tower to all centers for avoiding the network problem.

7. To ensure better customer satisfaction & maintain higher level of Customer relationship
management, the billing department has to be more effective & efficient.

8. User manuals and the plan’s pamphlets should be given to the staff for clearing the doubts
of the customers.

77
9. The cancellation mainly occurs in landline connection. So the company can take care of the

following services

 Billing activities

 After sales service

 On time delivery of the product after complaint has to be recovered.

10. Company can appoint more technicians to all TATA retail True Value hubs to

recover on time land line service compliant.

11. The employees can call back to customers atleast once in a month for getting the

feedback of the services offered.

12. Customers are demanding for affordable price for product and gifts with purchasing.

13. Majority of the customers are not satisfied with the recharge coupons offering by the

company. So the company can increase the talk time to all recharge coupons.

14. Customer relationship managers can keep the records of update details regarding the

customer’s address change for sending the postpaid billing charges to avoid delay of

payment.

15. All the TATA Indicom retail hubs can have the complaint grievance box for customers.

16. Employees can inform customer complaint on time to the head of the department.

78
 CONCLUSION

India has a mere 1.2 telephones for every 100 of its people. This is way below international

standards and is not becoming of a country aspiring to be major player in the global

economy of the 21st century. This means that opportunities for investment in this sector are

immense. Basic voice service is the biggest market. Installation of around 25 million direct

lines by the year 2001 will require an investment of US$ 22 billion.

Due to the growing need for mobile phones, it’s no wonder that service providers are going

all out to capture, as much market space as they can. As the number of mobile phone users

are estimated to rise to about 120 million by 2008,it’s not surprising that most of the leading

service providers in India have started branding and marketing their services more

aggressively.

The conducted study try to examine the market mindset towards one of the major player in

the telecom sector. The selected company for the study is TATA indicom which is having a

reputation in the market. This study had examined customer evaluation about the tele

services provided by the company. It also investigates the major reasons behind cancellation

of services by the customers. The major findings are

79
  The customers are not satisfied with services because of the low quality; high price,

poor after sales services, less network coverage etc.

 The main reasons for cancellation of the services were: - coverage problem,

customer service, billing complaint shows the negative impressions to the company.

The researcher got an exposure to the real situations of telecom market world and reactions

to the customers and enable to understand the customer reactions while they are undergoing

dissatisfaction of services. To the marketer, the present study is a market reflection about the

services offered. This will give him an insight into the customer problems, he has to settle at

the earliest, which will help him to expand his market and improve his image.

80
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