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CHAPTER I

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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.

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

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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.

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1.2 Objectives of the study

Primary objective:

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

Secondary objectives:

 To find out the telecommunication users in the Kottayam 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.

1.3 Problem statement

Do the customer of TATA indicom services such as

 Price

 Coverage

 Sales promotion

 Offers

 Customer service

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 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

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.

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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

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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.

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
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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

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.

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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

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.

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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

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.

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2.2 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.

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 centres 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.

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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.

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.

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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

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:

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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

• 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

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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.

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.

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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.

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


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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.

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.

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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

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

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 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

Haier

 Haier CG100

 Haier C2030 mobile phones

 Haier C200 mobile phones

 Indicom

Aurum

 Radio Phone mobile phones

 Sumukha mobile phones

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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

• 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

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• 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*

• 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

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• 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

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)

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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

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.

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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

Competitor Puls Price Incomin Local ST ISD rates


s e g calls rates D
rate rate
s

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


sec .195 life long price/mi 2.75 USA,Canada,Europe,Australia
n , Singapore, Hongkong,
Malaysia

BSNL 60 Rs.49 Free for Rs . 1 Rs. 7.20


sec 5 like long 2.75 USA,Canada,Europe
,Australia, Singapore,
Hongkong,

TATA 60 Rs Free for 1.50 2.75 17.20

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

CHAPTER III

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Literature review And
Theoretical Framework

3.1 LITERATURE REVIEW

1) Brand selection

The research study tiltled “factors affecting the brand decision in the mobile phone

industry” in Asia by Liu 2002.This study found that the choice of a cellular phone is

characterized by two attitudes to brands : attitude towards the mobile phone brand on one

hand and attitude towards the network on the other. While price and regularity of service

were found to dominate choice between network providers, choices between mobile phone

brands were affected by new technology features such as memory capacity and SMS –

options, more than size. The brand will actually be not towards smaller phones but towards

phones with better capability and larger screen.

2) Consumer satisfaction

This study is conducted by TRAI. It assesses the satisfaction level of consumers

encompassing quality of technical service, quality and operational aspects of gadgets and

social /psychological costs due to unsolicited promotional calls /SMS. The analysis in this

report shows that the consumption behavior of the mobile phone users in Delhi and covers

the aspects like usage pattern of the mobile phone services, assessment of the level of

satisfaction, preference for various attributes and functionalities of gadgets .

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3) Consumer behavior

The titled named “consumer buying behavior” by Martin Tina; Sam Manaberi [2005]

discussed the industrial purchasing stands for more than half of the whole economic activity

in industrialized countries. Therefore it is important to understand how industries perform

buying activities. The telecommunication industry is a fast growing industry and therefore

interesting to investigate. The purpose of this study was to investigate the characteristics of

industrial buying behaviour in the telecommunication industry. The purpose has been further

developed in forms of research questions dealing with the buying process, buying center and

choice criteria. A case study was made with a customer, to the telecom supplier Ericsson,

from the company HI3G Access, also known as 3. A highly topical company in the third

generation telecom networks with Ericsson as one of their primary suppliers. The conducted

telephone interview indicates a swift buying process, influenced by word of mouth.

Additional findings involve a small buying center, which is mainly controlled by the

technical and procurement staff and the importance of price as a selection criteria as the

product is becoming a commodity.

4) Consumer behavior

The article named “consumer buying behavior in mobile phone market in Finland” by

EMAC conference, Track : New Technologies and E – Marketing. The survey conducted

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with 397 consumers and looked at their motives to purchase new mobile phones on one

hand and factors

affecting operator choice on the other. The results indicate that while price and properties

were the most influencial factors affecting the purchase of a new mobile phone, price,

audibility and friends operator were regarded as the most important in the choice of the

mobile phone operator. This paper concludes with a discussion of contributions and

purposes ideas for future studies in this under researched area.

5) Customer buying behavior

The project study titled “customer buying behavior of mobile phone brands” by Riquelme

(2001. She conducted an experiment with 94 consumers to identify the amount of self –

knowledge consumers have when choosing between mobile phone brands. The study was

build upon six key attributes like telephone features, connection fee , access cost , mobile to

mobile phone rates call rates and free calls related to mobile phone purchasing respondents

had to importance rate. The research shows that consumers with prior experience about a

product can predict their choices relatively well but customers tended to overestimate the

importance of features, call rates, and free call and underestimates the importance of a

monthly access fee, mobile to mobile phones rates and the connection fee.

30
6) Consumer perception

The article titled “consumer perception and its choice mobile telecom service provider in

Malaysia,Journal of International Business and Economics, May, 2007 by Ahasanul Haque,

Ali Khatibi, Abdur Raquib, Shameem Al Mahmud. The study aims to find out what are

critical

factors those are playing an important role to select the telecommunication service provider.

Result provides a comprehensive analysis of the important factors for playing an important

role for the customer to select the telecommunication service provider. The analysis

confirms the significant positive relationship of price, service quality, product quality and

availability, and promotional offer for consumer perception. These factors are expected to

have a great role during the time to choose telecommunication service provider. In

conclusion, practitioners can be deriving a better understanding of the activities that are

being played a vital role for the consumer perception.

31
3.2 THEORETICAL FRAMEWORK

Consumer

An individual who buys products or services for personal use and not for manufacture or

resale. A consumer is someone who can make the decision whether or not to purchase an

item at the store, and someone who can be influenced by marketing and advertisements

Customer

A person, company, or other entity which buys goods and services produced by another

person, company, or other entity.

Customer service

According to Turban et al “customer service is a series of activities designed to enhance the

level of customer satisfaction that is, the feeling that aproduct or service has met the

customer expectation.

The needs, wants and preconceived ideas of a customer about a product or service.

Customer expectation will be influenced by a customer’s perception of the product or

service and can be created by previous experience, advertising , hearsay, awareness of


32
competitors and brand image. The level of customer service is also a factor and a customer

might expect to encounter efficiency, helpfulness, reliability, confidence in the staff and a

personal interest in his / her patronage.

The main objectives of customer services are : -

• Learn to identify and analyze customer needs and problems

• Recognize the most common reasons for customer complaints

• Discover techniques to cultivate and maintain special customer relationships

• Assess your communication style and use two – way communication skills to level with

people, to accept feedback from them, and to discuss problems

• Identify specific problems in your customer service program and apply treatment.

Customer satisfaction

Customer satisfaction is a measure of how products and services supplied by the company

meet or surpass customer expectation. Satisfaction is a person’s feelings of pleasure or

disappointment resulting from comparing a product’s perceived performance in relation to

his or her expectation.

• Encourage face to face dealing

• Be friendly and approachable

• Respond to messages promptly and keep your client informed

33
• Have a clear defined customer service policy

• Attention to detail

• Anticipate your client’s needs and go out of your way to help them out

• Honour your promises

Kano's model of customer satisfaction distinguishes six categories of quality attributes, from

which the first three actually influence customer satisfaction:

1. Basic Factors. (Dissatisfiers. Must have.) - The minimum requirements which will cause

dissatisfaction if they are not fulfilled, but do not cause customer satisfaction if they are

fulfilled (or are exceeded). The customer regards these as prerequisites and takes these

for granted. Basic factors establish a market entry 'threshold'.

2. Excitement Factors. (Satisfiers. Attractive.) - The factors that increase customer

satisfaction if delivered but do not cause dissatisfaction if they are not delivered. These

factors surprise the customer and generate 'delight'. Using these factors, a company can

really distinguish itself from its competitors in a positive way.

3. Performance Factors. The factors that cause satisfaction if the performance is high, and

they cause dissatisfaction if the performance is low. Here, the attribute performance-

overall satisfaction is linear and symmetric. Typically these factors are directly

connected to customers' explicit needs and desires and a company should try to be

competitive here.

4. Indifferent attributes. The customer does not care about this feature.

5. Questionable attributes. It is unclear whether this attribute is expected by the customer.

6. Reverse attributes. The reverse of this product feature was expected by the customer.

Five facts for improving productivity

34
• As senior managers, only know about the tip of the iceberg, a small fraction of all the

problems your customers encounter.

• Service can be a major marketing tool

• Customer problems can cost not only an immediate lost sale, but also future purchases by

that customer and by other customers as a result of negative word-of-mouth behavior.

• We can and must quantify the expected payback from service and/or quality improvements.

• The market transaction (sale) often is not the key point of customer pain and lost revenue.

DOING THE JOB RIGHT THE FIRST TIME + EFFECTIVE CUSTOMER SERVICE =

MAXIMUM CUSTOMER SATISFACTION/LOYALTY

Customer oriented organization chart

In this pyramid shows customers will be the top most priority and next in importance are

front line people who meet, serve and satisfy customers ; under them are the middle

35
managers, whose job is to support the front – line people so they can serve customers well

and at the base is top management, whose job is to hire and support good middle managers.

Customer behavior

Customer behavior is to know about the customer’s way to obtain, use and dispose products.

It's important for marketing to know the customer behavior by using different strategies.

There are so many different ways to influence customers like new products, promotions,

advertisement, good quality and price etc.

Customer behavior analysis is based on consumer buying behaviour, with the customer

playing the three distinct roles of user, payer and buyer. Relationship marketing is an

influential asset for customer behaviour analysis as it has a keen interest in the re-discovery

of the true meaning of marketing through the re-affirmation of the importance of the

customer or buyer. Customer behaviour analysis aims to ultimately improve business

performance through an understanding of past and present customers so as to determine and

identify future customers and their behaviour.

Customer-Focused Marketing

All marketing is done with the customer in mind. Marketing can in fact be referred to as an

on-going conversation occuring between business and customer. It is therefore necessary for

businesses to gain in-depth knowledge of their relative customers so that the best marketing

strategies can be employed in order to attract these potential buyers. This can effectively be

done by performing activities such as customer behaviors analysis to ensure customer

36
retention. Listed below are a number of tips to aid businesses striving towards customer

retention through marketing efforts:

1. Marketing as a Conversation:

Direct interaction with customers is necessary to essentially find out what it is that they are

wanting. This marketing conversation involves a process running from action - reaction -

feedback - repeat. Businesses need to be willing to take the time to listen to their customers

as this can ensure a business of putting something up for offer which is of great worth

amongst their targeted consumers, and is relative to their particular needs and desires. It is

required for businesses to constantly perform marketing promotion so that these customers

will come back for more. Giving satisfaction to first-time buyers can prove effective for a

business in the long-run for the reason that by giving customers what they desire the first

time round, customer retention is encouraged through this form of customer loyalty.

2. Active Customers:

Making customers feel as though they are in control is an effective strategy in customer-

focused marketing. This is done by transforming consumers into active customers who are

given the ability to make choices for themselves by actively engaging in promotions and,

hereby, deciding on the best possible products and services their money can buy. Customer

retention is encouraged through this interaction with customers which aids in customer

loyalty. Businesses need to make each and every one of their customers feel good about

themselves by giving them

37
something to do. Therefore, retaining customers means keeping them happy by keeping

them active.

3. Determining Future Customer Behaviour:

This is most effectively done through an analysis of the actual behaviour of past and present

customers. Actual behaviour needs to be differentiated from demographic behaviours

(which are implied consumer characteristics). Actual behaviour is, as such, better at

predicting the future which is done by keeping a watch over the actions customers perform

with regard to online purchases and the products they purchase over the Internet.

4. Allocating Resources for Marketing:

Businesses need to take their budget into consideration when allocating resources for

promotions. It is well-known amongst businesses that some marketing activities will

generate higher profits than others and data therefore needs to be created by interacting with

customers in order to consequentially identify the most profitable promotions, which will be

delivered to the right customer at the right time, without wasting time or money. Hereby,

effective

38
marketing means avoiding unprofitable promotion which will as such mean not reaching the

right customers and wasting money.

Customer buying behaviour

Process by which individual search for select, purchase, use and dispose of goods and

services, in satisfaction of their needs and wants.

Types

 Minor new purchase – these purchases represent something new to a consumer but in the

customer’s mind is not a very important purchase in terms of need, money or other reason.

 Minor re- purchase – these are the most routine of all purchase and often the consumer

returns to purchase the same product without giving much thought to other product options.

 Major new purchase – these purchases are the most difficult of all purchase because the

product being purchased is important to the consumer but the consumer has little or no

previous experience making new decisions. The consumer’s lack of confidence in making

this type of decision often requires the consumer to engage in an extensive decision making

process

 Major repurchase – the purchase decision are also important to the consumer feels confident

in making these decisions since they have previous experience purchasing the product

Stages of the Consumer Buying Process

39
Six Stages to the Consumer Buying Decision Process .

1. Problem Recognition(awareness of need)--difference between the desired state and the

actual condition were deficient? I.E., see a commercial for a new pair of shoes, stimulates

your recognition that you need a new pair of shoes.

2. Information search--

o Internal search, memory.

o External search if you need more information. Friends and relatives (word of mouth).

Marketer dominated sources; comparison shopping; public sources etc.

3. Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer wants

or does not want.

4. Purchase decision--Choose buying alternative, includes product, package, store, method of

purchase etc.

5. Purchase--May differ from decision, time lapse between 4 & 5, product availability.

40
6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance,

have you made the right decision. This can be reduced by warranties, after sales

communication etc.

Buying behavior model

41
Maslow’s hierarchy of needs

Gaining a better understanding of customers buying behaviour is based on knowing the

following;

42
• Awareness

• Reasons for buying

• How often do they buy

• Current usage

• Reasons for usage

• What do they buy?

• Where do they like to buy?

• Where do they gather their buying information

• Are they an exclusive customer?

Customer loyalty

The term customer loyalty is used to describe the behavior of repeat customers, as well as

those that offer good ratings, reviews, or testimonials. Some customers do a particular

company a great service by offering favorable word of mouth publicity regarding a product,

telling friends and family, thus adding them to the number of loyal customers.

Ten ways to build customer loyalty:

1. Communicate: - Whether it is an email newsletter, monthly flier, a reminder card for a tune

up, or a holiday greeting card, reach out to the customers.

2. Customer Service: - Go the extra distance and meet customer needs. Train the staff to do

the same. Customers remember being treated well.

3. Employee Loyalty: - Loyalty works from the top down. If managers are loyal to the

employees, they will feel positively about their jobs and pass that loyalty along to

customers.

43
4. Employee Training: - Train the employees and interact with customers. Empower

employees to make decisions that benefit the customer.

5. Customer Incentives: - Give customers a reason to return to business.

6. Product Awareness: - Know what y steady patrons purchase and keep those items in stock.

7. Reliability: - If a purchase will arrive on Wednesday, deliver it on Wednesday. Be reliable. If

something goes wrong, let customers know immediately and compensate them for their

inconvenience.

8. Be Flexible: - Try to solve customer problems or complaints to the best of ability.

9. People over Technology: - The harder it is for a customer to speak to a human being when

he or she has a problem, the less likely it is that you will see that customer again.

10. Know Their Names: - Remember the theme song to the television show Cheers? Get to

know the names of regular customers or at least recognize their faces.

Customer loyalty model

44
This model is developed by Schelsinger and Heskett (1991). In this model explains that

effort spent in selecting and training employees and creating a corporate culture in which

they are empowered can lead to increased employee satisfaction and employee competence.

This will likely result in superior service delivery and customer satisfaction. This in turn

will create customer loyalty, improved sales levels and higher profit margins.

Essentials of customer care

1) Encourage employees to deliver high-quality customer care.

 Make sure employees have good basic communication skills.

 Train employees in job-specific skills.

 Train all relevant personnel how to answer and deal with telephone calls.

 Make sure employees can handle complaints effectively.

 They should apologise, be sympathetic, listen, establish the facts, agree what to do and then

do it

2) Think of ways to make life easier for customers.

 Try to save the customer inconvenience.

 Exceed your customers’ expectations.

 Keep customers informed about any problems, and make it easy for them to contact

 Use your website to give customers the services and information they want.

3) Use appropriate technology.

45
 A good database system can help you record, organise and plan your contact with

customers.

 Make sure information from your website can be transferred to your main database.

 Contact management software may be a useful tool if you have a lot of high-value customer

accounts.

 Company will need to explain the advantages of the system to employees, and provide

training and incentives for use.

4) Give customers a personalised service.

 A common way to achieve this is by giving each customer an account manager.

 Personalise all communication.

 Personalise the email addresses of customer-facing employees

 If use computerised telephone systems, give customers the option of talking to an operator

at any time.

Customer retention

Customer Retention is the activity that a selling organization undertakes in order to reduce

customer defections. Successful customer retention starts with the first contact an

organization has with a customer and continues throughout the entire lifetime of a

relationship. A company’s ability to attract and retain new customers, is not only related to

its product or services, but strongly related to the way it services its existing customers and

the reputation it creates within and across the marketplace.

46
Customer retention rate: -- The customer retention rate refers to the number of customers

lost over a period of time. It is normally calculated by the percentage of lost customers

versus existing customers over a quarterly or annual period, without tallying new customer

acquisitions

Customer life time value

Customer lifetime value enable an organization to calculate the net present value of the

profit an organization will realize on a customer over a given period of time. Retention Rate

is the percentage of the total number of customers retained in context to the customers that

approached for cancellation.

Customer perception

Perception is the process of selecting, organizing and interpreting information inputs to

produce meaning. IE we chose what info we pay attention to, organize it and interpret it.

Information inputs are the sensations received through sight, taste, hearing, smell and

touch.

• Selective Exposure-select inputs to be exposed to our awareness. More likely if it is linked

to an event, satisfies current needs, intensity of input changes (sharp price drop).

• Selective Distortion-Changing/twisting current received information, inconsistent with

beliefs.

• Selective Retention-Remember inputs that support beliefs, forgets those that don't.

47
Factors influencing perception

Factors

Factors in the
Factors in the Factors in the
target
perceiver situation

Attitudes Time Novelty


Motives Work setting Motions
Sounds
Interest Social setting
Size

48
CHAPTER IV

Research methodology

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
49
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.

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 kottayam 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.

50
 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.

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

51
variable, if rank correlation greater than .06 we can say that there is high degree of relation

between 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.

4.5 Location and Duration of the study

The study was conducted among the consumers of Kottayam 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.

52
53
CHAPTER V

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

54
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.

Chart 5.1

Gender

55
Chart 5.1.

Age group

56
Chart 5.1

Marital status

57
Table 5.2

Employment status

male female Total Percentage

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%

58
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

59
Table 5.3

Availability of telecommunication facility

Responses No of respondents Percentage

60
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 Kottayam residential area.

Chart 5.3

61
Table 5.4

Mobile services tried out by the respondents

Services No : of Percentage
respondents

Airtel 31 34%

Aircel 10 11%

TATA

62
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

63
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

64
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

65
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 66
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

67
.

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

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.

68
Chart 5.7

69
Table 5.8

Satisfaction level of recharge coupons of TATA Indicom

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

70
Table 5.9

Opinion about the services offered by the TATA Indicom

71
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.

72
Chart 5.9

73
Table 5.10

Cancellation of the TATA Indicom services

74
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.

Chart 5.10

75
Table 5.11

Cancelled services

76
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.

77
Chart 5.11

Table 5.12

78
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.

Chart 5.12

79
Table 5.13

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%

80
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

81
Table 5.14

Hand set complaints

Complaint to hand set No of respondents Percentage

82
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

83
Table 5.15

Responses of customers for a dissatisfied TATA Indicom service

Responses Strongly Agree Neutral Disagree Strongly


agree disagree

Cancellation of the 30 31 24 17 8
service

84
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

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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

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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.

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t – test for equality of Means

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
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correlation between coverage and image of the company.

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.

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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.

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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

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Reliance 29 6 59 4

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.

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CHAPTER VI

Findings And
Recommendations

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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.

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

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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.

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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.

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

following services

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 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.

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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.

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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

 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.

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