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  • Growth of India’s Telecom Services(1991-2007)
  • BSNL (Bharat Sanchar Nigam Ltd) :
  • Technical Capability of the Backbone
  • IDEA:
  • Our Service Areas
  • Established Service Areas

INTRODUCTION Brand loyalty is a highly sought after goal in the market place and building loyalty is seen by some

as the “central task for the marketing manager”. The importance given to brand loyalty is not surprising considering the many advantages that accrue on account of it. The presence of Brand loyalty customers has a beneficial impact on sales, costs and profit. Brand loyal customers even represent a barrier to entry for competitors because enticing such customers is very expensive. Marketing managers should therefore know which of the strategic alternatives at their disposal give the best results vis-à-vis brand loyalty. Branding and brand preference have gained importance only in the recent past. Earlier consumers were not able to differentiate / compare the features of the goods / services due to the lack of brand names available in the market. Many of the companies have started highlighting the product features with specific brand names in the goods / services market helping the consumers differentiate and choose the products / services which best suited their requirements. Consumers are now able to compare many features in the goods / services like quality, price and value for money, service, durability and brand image, etc., to decide which goods / services they want to buy for their need satisfaction. Once customers are satisfied with a particular product / brand, they purchase the product repeatedly. When a customer repeatedly purchases a product / service, showing favorable attitude towards the brand, he will be a loyal customer to the brand. Meaning / Definition of Brand loyalty:Loyalty: - A combination of Attitudinal and Behavioural factor. Brand loyalty has been defined in many terms by many eminent personalities. Jacoby and Chestnut defined it as, “ the biased, behavioural response, expressed over time, by some decision making unit, with respect to one or more alternative brands out of a set of such brand and is a function of psychological (decision making evaluative ) process”. (Jacoby and Chestnut, 1978)



2. Tellis defined it as, repeat purchasing frequency or relative volume of samebrand purchasing. ( Tellis, 1988) 3. Newman and Werbel, defined loyal customers are those who are bought a brand, considered only that brand and did no brand – related information seeking”. ( Newman and Werbel 1973) 4. Oliver defined loyalty as “ a deeply held commitment to re buy or repatronize a preferred product / service consistently in the future, thereby causing repetitive same – brand or same brand set purchasing, despite situational influences and marketing efforts having the potential to cause switching behaviour. (Oliver,1997) Need for Brand loyalty Many marketers have started highlighting the product features with specific brand names in the market helping the consumers differentiate and choose the products which best suited their requirement. Consumers are now able to compare many features in the products / services like quality, price, and value for money, durability and brand image, etc., to decide which product they want to buy for their need satisfaction. A customer would be loyal to a commodity brand, if the person repetitiously chooses one brand over the sheer infinite choice of others over a period of time. Understanding and building this kind of loyalty is an important task for the marketer, especially at the times of fierce competition. A loyal customer base helps the brands withstand the pressure from competitors in the market. MODELS OF BRAND LOYALTY A model is a theoretical representation of reality, which one uses as a thinking aid in the study of some system too complex to be understood by direct references from observed data. 1. Brand infused casual loyalty model. Moving from left to right in the figure given below, the model hypothesizes the


customer experiences with our touch point shape brand essence: the salient images, personality and feelings-associations that customers have for the brand. Those brand associations, in turn, activate both rational and emotional motivation and these two combine to influence customer loyalty.

2. Conceptual model of Brand Loyalty with respect to Brand Personality.


Experien ces Competence points Brand Essence
Rational motivation Emotional

Loyalt y

Business results


Brand loyalty


Relationship length

Operationalizing the findings


2. Product-level controls Utilitarian value Hedonic value H1a H1b H2a H2b H3 Brand Trust Brand Affect Brand level controls Differentiation Share of voice Purchase Loyalty Attitudinal Loyalty Market Share H3 Relative Price H4 The model includes certain product-level category related control variables (hedonic and utilitarian value) and certain brand level control variables. A model of Brand Loyalty and Brand Performance. Brand loyalty includes both purchase loyalty and attitudinal loyalty. people form categories of the stimuli around them. competence. and new stimuli (e. According to categorization theory (sujan 1985). brands) are understood according to how they fit into these categories.+ + + + The figure presents the conceptual model of determinants of brand loyalty. 4 .g. and ruggedness with which the customer relates himself – impact brand loyalty. Thus. excitement. The brand personality traits sincerity. prior knowledge of the product category determines the type of evaluation that a brand stimulus will make. The relationship characteristics such as length of relationship ( period for which customer has been associated with the brand) enhance brand loyalty.

favourable brand attitude shall be more willing to pay premium prices for the brand.Purchase loyalty is defined as the willingness of the average consumer to repurchase the brand. (Jones 1990) Furthermore brand differentiation may justify higher relative price. commitment) tends to reflect the level of positive affect generated by that brand.e. the brand’s share of voice had also tended to account for market share. share of voice may reflect differences in advertising expenditures and therefore may also lead to affect relative price. Brand trust and brand affect are each related to both purchase and attitudinal loyalty. They appear to serve as key determinants of brand loyalty. Smith and park (1992) found that the degree of brand differentiation is significantly related to market share with some exceptions. Also. A model of trust worthy behaviour and practices. 3. (Because of higher levels of repeat purchases by the brand users) H3: Market share increases as purchase loyalty increases. Therefore H2: Brand affect is positively related to both a) Purchase loyalty b) Attitudinal loyalty The given figure further suggests that the variables of purchase loyalty and attitudinal loyalty contribute to brand outcomes such as market share and relative price. H1: Brand trust is positively related to both a) Purchase loyalty b) Attitudinal loyalty Berschird (1983) isolates two critical aspects of a close emotional relationship namely. consistent with the concept of one-to-one marketing relationships. 5 . value and loyalty. the magnitude of the affect (intensity) and its hedonic sign (+ve / -ve) The close relationship of a brand with its consumers (i. Therefore H4: Relative price increases as attitudinal loyalty increases. Attitudinal loyalty is the level of commitment of the average consumer towards the brand. trust. Consumer with a strong.

Defined as the consumers evaluation of FLE and management motivations to anticipate and satisfactorily resolve problems that may arise during and after a service exchange.Operational competence Dimensions of FLE & Benevolence Trustworthiness Problem solving orientation Trust in FLE Behaviours Value Loyalty Operational competence Dimensions of FLE & Benevolence Trustworthiness Problem solving orientation Trust in MPP The model is based on the works of Michele paulin et al. DIMENSIONS: Operational Competence: . Julian and B. trust in MPP and FLE that linked with satisfaction. 6 . Deepak sirdeshmukh. FLE’s and MPP’s. Problem solving orientation: .The expectation of competent performance from an exchange partner has been noted as a precursor to the development of trust in a variety of business relationship contents. (1998). these facets are structurally distinct nodes around which the consumer is likely to make independent judgements during the course of a service exchange. Operational benevolence: Defined as behaviour that reflect an underlying motivation to place the consumers interest ahead of self interest.Ramaseshan (1994). Jagdip singh and Barry Sabol (2002) which focused on dimension on MPP (Management Policies and Practices) and FLE ( Front Line Employees) . In most service contexts. Consumer’s trust in the service provider focused on to develop around two distinct facets. Craig C. “Competence” is defined as an ability of a marketer to meet his promise to the best satisfaction of his customers.

The forces that impel such action are called motives.Value and Loyalty: . A motive is a need that is EXTERNAL FACTORS (Outside consumers skin) -. value. learning and beliefs and attitudes. * Prices * Income * Assets 7 . Holbrook (1994) goes as far as to note that customer value and loyalty are the fundamental basis for all marketing activity. Each factor influences the buyer to purchase and repurchase or to become brand loyals. MOTIVATION There is general agreement that consumer is goal oriented. The buying choices of the consumers are influenced by four major factors such as motivation. A person has many needs at any given time. Motivation is the driving force within individuals that impels them to action. This driving force is produced by a state of tension.Zeithams (1998) defines value as the consumers perception of the benefits minus the costs of maintaining an ongoing relationship with the service provider. which exists as a result of and unfulfilled need. Kolter (2000) says as value maximizes consumers are thought to consume exchanges with providers that provide max. perception. Consumers are motivated to seek ways to satisfy specific goals. FACTORS INFLUENCING BRAND LOYALTY INTERNAL FACTORS (Mental constructs) --Internal to the consumer * Pre-dispositions * Opinions * Images * Attitudes * Motivations * Personality traits * Alternatives * Perception * Learning Internal factor refers to all those factors within a consumer or inner or intrinsic qualities of the individual consumer.external to the consumer.

Consumers selections of stimuli from the environment are based on the interaction of their expectation and motives with stimulus itself. the purposes of understanding how consumers learn are to teach them that their brand is best. because consumers make decisions based on what they perceive rather than on the basis of objective reality.e. LEARNING: Consumer learning is a process by which individuals acquire the purchase and consumer knowledge and experience they apply to future related behavior. A person acts because he is motivated i. Thus. responses and reinforcement. Although some learning is intentional. Motivation is a driving force or a necessity to reduce a state of tension. Perception has strategy implications for marketers. Two persons in the same motivated state and objective situation may act quite differently because they perceive the situation differently. For marketers. and to develop brand loyalty. set into motion to take action to fulfill the need or want. its symbolic meaning is probably more important to its success than are its physical characteristics. learning experiences of consumers affect their buying behavior. Thus motivation will also have its influence on consumer behaviour. much learning is incidental. Therefore understanding of motivation help marketers to develop insight into the needs motivates and tension of consumers to know its influence on consumer purchase and repurchase decision making.e. Products and services that are perceived favorably have a much better chance of being purchased than products or services with unfavorable or neutral images. Perception is the process by which individuals select. ATTITUDES AND BELIEFS: - 8 . The perceived image of the product or service i. cues. Thus perception of a consumer influences his buying behaviour. stimuli. organize and interpret stimuli into a meaningful and coherent picture of the world. PERCEPTION: How a motivated person acts is influenced by his perception of the situation. A persons learning is the result of interplay of drives.sufficiently pressing to direct that person to seek satisfaction of the need. Learning enables a person to recognize differences in sets of similar stimuli and to adjust his responses accordingly.

then there will be a tendency to spend less and save more in the present. The importance of attitudes in the study of marketing and consumer behaviour is due largely to the fact that they are learned tendencies to both perceived and act a linkage of perceptions ( beliefs. A belief is a descriptive thought that a person holds about something. expenditures and assets. and assessment of something that is another person. The changes in disposable personal income are relevant to consumer buying decisions. Income available for spending is the amount available for personal consumption. A consumer’s economic circumstance will greatly affect his product choice. If expectations of future income are strong. moving towards or away from it. Economic circumstances of the consumer consist of their disposable income. debt installments etc. Disposable personal income represents the amount of income that a consumer possesses to be used for spending or saving after having paid the taxes. most of the consumers are 9 . Since. and attitude towards spending versus saving and price. The beliefs make up product and brand images. belief consists of very large no. Attitudes put the individual into a frame of mind of liking or disliking an object.Attitudes play a major role in both consumer research and marketing attempts to affect consumer behavior. there will be a tendency to spend more and save less. emotional feelings and action tendencies towards some object or idea. opinions. of mental or verbal statements. The consumer is not only influenced by his current income. perhaps a product. The beliefs refer to the accumulated feelings and priorities that individuals have about ‘things’. An attitude describes an individual’s enduring favorable or unfavorable cognitive evaluation.. The expectations of future income will determine the level of future expenditure. a store. which reflect a person’s particular knowledge. assets borrowing power. and people act on their beliefs. More precisely. Attitudes and beliefs are strong and direct forces affecting consumer’s perceptions and buying behavior. whereas if expectations are weak.) and actual consumer behavior. images. EXTERNAL FACTORS:All those factors outside the consumer constitute external factors influencing brand loyalty. but also by the future income. etc. a brand.

not having sufficient disposable income; they are not in a position to fulfill all their wants. Consequently, they give priority to certain wants and satisfy them by purchasing the suitable products. Thus the consumer’s loyalty towards the brand will be influenced by the economic circumstances i.e. external factors of the consumers. LOYALTY PHASES:Oliver (1997) has given cognition-affect-conation pattern. Consumers are theorized to become loyal in a cognitive sense first, then later in an affective sense, still later in a Conative manner and finally in a behavioral manner, which is described as “action inertia”. Cognitive loyalty:- In the first loyalty phase, the brand attribute information available to the consumer indicates that one brand is preferable to its alternatives. Cognition can be based on prior or vicarious knowledge or on recent experience-based information. Loyalty at this phase is directed toward the brand because of this “information”. This consumer state, however, is of a shallow nature. So the transaction is routine so that satisfaction is not processed, the depth of loyalty is no deeper than mere performance. If satisfaction is processed, it becomes part of the consumer’s experience and begins to take on affective overtones. 2. Affective loyalty: - At the second phase of loyalty development, a liking or attitude toward the brand develops on the basis of cumulative satisfying usage occasions. This reflects the pleasure dimension of the satisfaction definitionpleasurable fulfillment. Commitment at this phase is referred to as affective loyalty and is encoded in the consumer’s mind as cognition and affect. 3. Conative loyalty: - The next phase of loyalty development is the conative (behavioral intention) stage, as influenced by repeated episodes of positive affect toward the brand. Conation, by definition, implies a brand-specific commitment to repurchase. Conative loyalty, then, is a loyalty state that contains what at first, appears to be the deeply held commitment to buy. However, this commitment is to the intention to rebuy the brand and is more akin to motivation. In effect, the consumer desires to repurchase, but similar to any “good intention”, this desire may be an anticipated but unrealized action. 4. Action loyalty: - Study of the mechanism by which intentions are converted to actions is referred to as “action control” (Kuhe and Beckmann 1985). In the action control sequence, the motivated intention in the previous loyalty state is transformed into readiness to act. The action control paradigm proposes that this



is accompanied by an additional desire to overcome obstacles that might prevent the act. Action is perceived as a necessary result of engaging both these states. If this engagement is repeated, an action inertia develops, thereby facilitating repurchase. Loyalty phases with corresponding vulnerabilities

Stage Cognitive

Identifying Marker Loyalty to information such as price, features, so forth.

Vulnerabilities Actual or imagined better competitive features or price through communication and Vicarious or Personal experience. Deterioration in brand features or price variety seeking and voluntary trial. Cognitively induced dissatisfaction. Enhanced imagery seeking liking and and for competitive Variety trial. brands. Perhaps conveyed through association. voluntary


Loyalty to a liking “I buy it because I like it”.








Deteriorating performance. Persuasive counter argumentative competitive messages. Induced trial (eg. Coupons, sampling, point of purchase promotions.) Deteriorating

committed to buying it”.


Loyalty to action inertia coupled with the overcoming of obstacles.

performance Induced unavailability



lifts-purchasing the entire inventory of a competitor’s product from a merchant). Increased obstacles generally deteriorating performance.

OBSTACLES TO LOYALTY:Consumer idiosyncrasies: - Some aspects of consumer consumption are antithetical to loyalty. For example, variety seeking frequently has been cited as a trait that will not permit loyalty to develop until there is no variety. This will be particularly true at the cognitive and even at Conative level. Until the variety seeking consumer reaches action inertia, the lure of new experience will be too tempting to ignore. Many product and service provider fall into this pattern and find that even their regular clientele will try new and different alternatives.


Other reasons for apparent consumer disloyalty include multibrand loyalty, withdrawal from the product category and changes in need. Switching incentives: - Competitors can (and do) take advantage of irrational behavior of consumers, engaging them through persuasive messages and incentives with the purpose of attempting to lure them away from their preferred offering. Measurement of Brand Loyalty:Brand Management, the value and loyalty of the brand, is largely determined by four key elements. • • • • Brand Awareness Brand Attributes and Associations Perceived quality and Brand loyalty.

Brand Awareness:- According to David Aaker, brand awareness involves a continuum ranging form a hazy, uncertain feeling that the brand is recognized to a belief that it is the only one in its product class. Most brands, when they make an entry into the market are not known to consumers. Planned marketing communications like ads, promos, publicity and personnel selling take the brand up the awareness ladder. Further advertising / promotional efforts help to move the brand up to the higher awareness level termed as the Brand Recall level (the unaided recall level, a level superior to brand recognition). More persuasive, frequent advertising / promotions can take the brand higher up the awareness ladder to the top of the mind. Aaker introduces a further level in the continuum, which goes beyond the “Top of the Mind” level – Dominant. This is a stage where the brand name itself stands for that product category. Efforts in developing brand awareness can lead to trial or first time buying and even repeat purchase which in turn make some consumers loyal to their brands.

Brand Awareness
David Aasker’s Awareness Pyramid Dominant Top Of the Mind High


It can be measured using both aided and unaided recall items such as the following • • • • • • • Which single company comes to mind first in the cellular services market? Which company do you view as the leader in cellular service provider? Which other companies come to mind? Which factors led you to mention your preferred brand as the leader? Are you aware of offers in cellular services market? If so to what extent? Please list the types of services that you know that your brand offer in the market? Based on your understanding of schemes. strategy and execution. packaging. history. Branding is probably more important for service providers than for consumer product business because a strong company brand helps to retain customer loyalty. defined brand as the intangible sum of a product’s attributes. It’s name. and the way its advertised (1987). its values and then keep introducing new The following questions measure different aspects of aided awareness and perceptions:- 13 . provided by your service provider. price. they emboss a set of positive values on the product. Each product becomes a reflection of the company. When marketers create a brand. Awareness equates to traffic and prospective buyers showing up at the store without awareness. David Ogilvy. even when a company keeps introducing new generations of products. reputation. little happens.Promotion Brand Recall Awareness Brand Recognition Hazy Low Brand awareness research is the key to creating brand equity / loyalty. how do you view its market position a year from now? BRAND ATTITUDES AND ASSOCIATIONS:Advertising guru.

Congruence and compatibility. as many researchers perceive. Self esteem and success. a uni-dimensional construct. Dependability and freedom. These brand evaluation attributes may be functional. Their services has features I’m looking for in cellular services market. Associations include such areas as how the customer thinks and feels about the product / service and personal view points about the product / service class. Its measures include product features and attribute measures.products that reinforce the brand. Power and control Psychological and psychographic associations with the product / service. branding’s true power becomes evident. Brand attributes and associations provides the fabric of loyalty and equity research. financial. such as quality and craftsmanship are the focal point of in depth elaboration techniques to find out what makes quality and what quality improvements can be made 14 . • • • • • • • • Safety and security. physical. The key areas of quality. Their services are of high quality. Trust and confidence. Loyalty and equity are largely the result of the associations and attributes of the brand. Quality effects are the consequences of attribute performance. Personal image congruence measures:• • • • • • Their services are reliable and trouble free. Their services are less expensive than most of the cellular service providers. Peace of mind and calm. as well as more advanced attribute. Quality is not. Their schemes are attractive. As customers begin to associate a company with the quality products it makes. They provide a good value for the money. social or psychological in nature. PERCEIVED QUALITY:Quality is king and such is a key component of all loyalty and equity measures.

quality. From the reevaluation of a fledging product(s) to the extension of a mature brand.to enhance brand loyalty and brand equity. TRUST IN THE BRAND • • I always trust my service provider. effective marketing strategies depend on a thorough understanding of the core brand loyalty. If a problem arises. They always deliver what they promise. 3. SAMPLE MEASURES FOR BRAND LOYALTY:1. I can always count on my service provider to reach a fair and satisfactory resolution. how satisfied you are with your service provider? How likely are you to continue to choose or repurchase your service provider? How likely are you to recommend your satisfied service provider to a friend / associate? 2. pride of association and identification with the brand’s concept and image influence loyalty and what customers buy. • • • Customer care service. Trust. CUSTOMER LOYALTY • • • Overall. CUSTOMER BRAND LOYALTY MEASURES:Brand loyalty has been examined at great length by academicians and practitioners alike as one of the most important factor influencing a brand’s success or failure in the market place. Honesty. Innovativeness. The brand loyalty programs can have a dynamic impact on the success of a brand. 15 . The loyalty tracking program provides an ongoing measures of loyalty of products / services to guide any business. QUALITY OF BRAND RELATIONSHIP • • They always treat me fairly.

It is displayed when consumers have high regard for a company or brand. colleagues. Circumstantial loyalty. SUSTAINABLE LOYALTY: . Thus sustainable (true loyalty) loyalty occurs when there is repeat patronage. which is the result of a conscious decision by the consumer.It exists when a customer repeatedly buys only one particular brand or when he recommends it to friends. copyrights. LATENT LOYALTY: . Review of literature:. family. The consumer in such cases shows only temporary display of loyalty as he is open to competing offers and will shift the moment he gets a better deal. CIRCUMSTANTIAL LOYALTY: . Latent loyalty and Sustainable loyalty. Dick and Basu (1994). etc. This can be due to inconvenient store locations out-of-stock situations. IDENTIFICATION WITH THE BRAND • • My service provider’s company is the perfect company for people like me .4. (Bilal – 2004) classified brand loyalty into four groups termed as Spurious loyalty. behavioral data suggests loyalty. I can’t imagine a world without my d service provider. but they don’t necessarily buy it. They always treat the customer with respect. 5. PRIDE OF ASSOCIATION • • I feel proud to be my service provider customer. SPURIOUS LOYALTY :observed when despite (Low relative attitude and high relative patronage) can be consumer perception that the choices available are undifferentiated. and trademarks. etc.Prior research on the relationship of brand loyalty with various elements of marketing strategy was examined. CLASSIFICATION OF BRAND LOYALTY.It includes cases where temporary monopoly is achieved due to patents. Brand loyalty & Market: 16 .

Raj believes that his is the first empirical investigation into the relationship between brand user share and brand loyalty. Since then a number of researchers have examined this relationship. Most of them have found that high market share brands get more brand loyalty than the other brands. Ehrenberg it all finds that simple parameters such as penetration, purchase frequency and market share are consumer behaviour, including brand loyalty. Ehrenberg’s views as paraphrased by Baldinger and Rubinson are that “Marketing efforts in general and advertising in particular, have relatively limited effectiveness since nothing truly important, like market share, or penetration, is likely to be effected by the marketer’s efforts is a predictable way. The various reasons advanced for this phenomenon of high brand loyalty for high market share brands include better distribution, bigger advertising budget, more in store promotion, letter advertising budget, more in store promotion, letter social acceptability, better social acceptability, better suitability as the raw material for social interaction etc. While the majority view is that high market share brands reap higher brand loyalty than do the other brands there does exist research that gives the exception to this Barnard et al use empirical date to demonstrate, that loyalty. Bhattacharya finds that low market share brands following the niche strategy and brands bought in large quantities also enjoy high brand loyalty, and that excess loyalty for high share brands is more occasional than general. Brand loyalty and Price: Previous research shows that those whose are brand loyal differ from those who are not brand loyal with respect to their response to various aspects of pricing. Krishna murthy and Raj found that those who are brand loyal are less price sensitive than those who are not brand loyal. They also found that these two categories of buyers respond differently to a price reduction. While a price reduction can induce those who are not brand loyal to switch brands, it induces those who are brand loyal to buy more whereas the brand loyal customers respond to price increase or to price decrease with the same sensitivity, the consumers who are not loyal to any brand respond more strongly to price decrease than to price increase. Krishna Murthy et al, and Upshaw felt that the advent of value pricing was making ‘Switehers’ out of many local customers as they went looking for the right deal. What sort of pricing strategy gets higher brand loyalty? Some answers are provided by Bhattacharya it al who found that higher price brands seem to have lower loyalty levels compared to other brands. This happens because high price brands have higher penetration. Consumers who normally purchase low priced brands switch to high price brands but the reverse of this will not happens. While such behaviour of the


consumer increases penetrations of the brand this increase in penetration is not accompanied by a commensurate increase in respect buying. In addition to authors found that brands that go in for price promotions have less loyalty than the either brands. The authors see a different between ‘buying’ loyalty and ‘earning’ it. BRAND LOYALTY AND SALES PROMOTION: Does sales promotion increases brand loyalty or reduce it? While reviewing previous research, Papatte and Krishna murty found that there was evidence for both positive and negative effects of promotional activity (mainly coupons) on repeat purchase probability. However, their own empirical research as well as that conducted by mela et al shows that affect of promotions on brand loyalty is ‘bad’ and tends to increase price sensitivity of consumers. Agarwal sought to understand the role of brand loyalty in the optional promotional mix for manufacturers. He explains that advertising is a ‘defensive’ strategy used to build brand loyal as it helps in retaining the loyal customers. On the other hand, price promotions are an offensive strategy used to attract customers away from the rival brand. The stronger brand plays ‘offensive’ by using more trade promotions and the weaker plays ‘defensive’ by emphasizing advertising. Singh found that a majority of the people would continue to stick to their favorite brand. Only about 12% of the households would switch over to the brand offering the deal or adopt it for trial. It is significant that many of these households were from the lower income group. BRAND LOYALTY AND ADVERTISING: Bhattacharya reports contradictory research findings on the

relationship between advertising and brand loyalty, based on reviews of earlier literature. There are researchers who propose that advertising’s main role is to sustain repeat buying among existing customers. On the other hand, there are those who find that advertising largely induces brand switching and not repeat purchase. Bhattacharya own findings are that the effects of advertising are in contrast to the effects of the promotional variables and price cuts. Perhaps advertising induces brand switching that is not purely price related. The Indian study on the subject does not support the hypothesis that advertising influences brand loyalty.


Mela et al assess the medium and long term impact of promotion and advertising on two types of customers. The loyal (or relatively less price sensitive consumers ) and the non-loyal ( or price sensitive consumers ). They found that advertising had a powerful role in reinforcing consumer preferences for brands. A reduction in advertising makes consumers more price sensitive and affects the non-loyal customers more, increasing the size of the non-loyal segment. BRAND LOYALTY AND DISTRIBUTION: That brand loyalty is related to store loyalty is borne out by research. Earlier research has examined the linkages between trust in a salesperson, trust in the store, and repeat purchase intension. The findings reveal that those having an interpersonal relationship with the salesperson are directly linked with purchase intention as well as indirectly linked through store attitude. For customers not having relations with a salesperson, trust in the store leads to loyalty only indirectly through store attitude, but it does not have a direct impact on purchase intention. Other studies: To explain the satisfaction loyalty conundrum, Richard Oliver investigated what aspect of the consumer satisfaction response had implications for loyalty and what portion of the loyalty response is due to satisfaction component. He (concluded) that satisfaction is a necessary step in loyalty formation but becomes less significant as loyalty begins to set through other mechanisms. These mechanisms include the roles of personal determinism (“fortitude”) and social bonding at the institutional and personal level. When these additional factors are brought into account ultimate loyalty emerges as a combination of perceived product synergistic effects. As each fails to be attained or is attainable by individual firms that serve consumer markets the potential for loyalty erodes. A disgusting conclusion had gave is that loyalty cannot be achieved or pursued as a reasonable goal by many provides because of the nature of the product category or consumer disinterest for some firms satisfaction is the only feasible goal for which they should strive ; thus satisfaction remains a community. The disparity between the pursuit of satisfaction versus loyalty as well as the fundamental content of the loyalty response, poses several investigate directions for the next wave of post consumptions research Arjun Chaudhuri and Morris B. Holbreok examined two aspects of brand loyalty purchase loyalty and attitudinal loyalty as linking variables in the chain of effects from brand trust & brand affect to brand performance (market share & relative price ) . The study includes product level, category- related controls & brand level controls. The Researchers compiled an aggregate date set for 107 brands from three separate surveys of consumers and brand managers. The results indicated that when the product and


Abdul Waheed and Neeti Yadav examine the relationships between brand personality dimensions and brand loyalty. recommendations and word of mouth. K. Subhasis Ray and Avishek Sarkar analyzed the influence of brand vis-à-vis price in Indian mobile industry and concluded that though the schemes and offers help to attract customers. It was also found that relationship length of does not have any impact on consumer loyalty a customer buys a company’s doesn’t have any other options. Brand is an element of any firm that helps it to build intangible and emotional association with its customers. Ravichandran.brand-level variables are controlled for brand trust and brand affect combine to determine purchase loyalty and attitudinal loyalty. but it is upto the commodity marketer to adapt to the customer requirememts over time and deliver value in a consistent manner. shetty studied Brand Awareness and Brand Loyalty in branded commodity product. it is the brand that ultimately reigns in decision-making.e. K. C. It was found that the company having a brand image of sincerity and ruggedness wins customers loyalty. M. and attitudinal loyalty leads to a higher relative price for the brand. The marketer with the help of proper application of marketing mix can convert a basic commodity into brands which are perceived by customers as offering total satisfaction in fulfilling the customer’s needs. The examinations of brand personality will advance the research in marketing especially the growing area of the brand-consumer relationships. The researchers found that Brandingh the commodities is not the end of the road. Purchase loyalty in turn leads to greater market share. Therefore activities like sales promotion and economizing the product should be backed up with efficient brand building activities. Mohan Raj and N.K. A company can leverage this association when a customer makes a choice or helps others to make a choice i. The marketers must build their brands based on key factors like quality of product and favorable brand image so that a strong long-term loyal customer base can be created. Prasanna. Anandan. product for many years it doesn’t means that he/she is loyal to the company it may also be because he/she NEED OF THE STUDY: 20 .

BSNL. To make an analysis of consumer profile in relation to demographic variables to identify the broad features of the cellular service providers. RELIANCE. TATA INDICOM INDICOM AND VODAFONE in particular. To make an analysis of various influencing factors of brand loyalty for cellular service providers to highlight the relative importance and influence of those factors. Further the sub objectives are as follows:1. 2. to know about cellular service providers operating in Andhra Pradesh in general and AIRTEL. IDEA. 3. 4.OBJECTIVES OF THE STUDY: The basic objective of the study is to assess brand loyalty is cellular services in Andhra Pradesh. To make an analysis of four key elements of brand loyalty: 21 .

PERIOD OF STUDY The primary data for the study was collected between the years 2006 and 2008 DATA SOURCES AND METHODOLOGY For the purpose of the research study. TATA INDICOM INDICOM AND VODAFONE. TATA INDICOM INDICOM AND VODAFONE. To draw conclusions based on the analysis made in the study on different aspects. published reports and published and unpublished literature related to the above mentioned service providers. Perceived quality and Brand loyalty for cellular service providers. Secondary data is collected from the various research publications. IDEA. pamphlets. RELIANCE.P. PRE – TESTING OF QUESTIONNAIRE The questionnaire was pre-tested on a sample of 30 customers of cellular service providers in A.• • • Brand Awareness. SCOPE OF THE STUDY The scope of the study is related to the services rendered by different service providers in the state namely AIRTEL. The final (modified) questionnaires 22 . magazines. The pre-testing of questionnaire has helped the researchers to modify some questions and alternative answers. Primary data is collected through comprehensive questionnaire administered to the customers of selected enterprises namely AIRTEL. Some of the respondents were happy to reveal their experiences and asked the researcher to make provision for other alternative answers which were duly done. IDEA. This study is conducted to know brand loyalty of selected cellular companies in selected districts of Andhra Pradesh. 5. journals. RELIANCE. both the primary and secondary data is collected. • Brand Attributes and Association. BSNL. daily newspapers. BSNL.

As most of the questions.after pre-testing were used for collecting the data. Adilabad. All 300 respondents have been interviewed with a structured questionnaire for the purpose of the study. The classified raw data had to be displayed in compact form for analysis. Hyderabad and Secunderabad. LIMITATIONS OF THE STUDY:- 23 . diagrams. The area of the study is restricted to mobile service providers operating in A. graphs. The customer sample is based on randomized cluster sampling technique. EDITING. CLASSIFICATION. percentage. In addition to this. The tabulation has been done by hand using excel sheet in the computer. Warangal. All the tables were prepared from the questionnaire using SPSS package specially designed software cross-tabulation has also been doe for the sake of analysis.P. The computer system was used for classification of data. TABULATION AND ANALYSIS The filled in questionnaires were checked to see that the respondents answered all the questions. included in the questionnaire were close-ended. while editing the data the following points were kept in mind as suggested by paten to see that the data were ♦ ♦ ♦ ♦ ♦ ♦ As accurate as possible Consistent with other facts secured Uniformly entered As complete as possible Acceptable for tabulation & Arranged to facilitate tabulation The classification of raw data was essential for analysis & interpretation. For the data analysis various statistical techniques such as average. etc. standard deviation and other appropriate test i. Karimnagar. SAMPLE OF THE STUDY The customer sample size is taken as three hundred. Tirupathi. The selection of the respondents was randomly made from the districts like Vijaywada. This was done through tabulation.e chi-square test has been employed depending upon the requirements. classification was not complex.

Sample of the study. it is 24 . The process of Socio-Economic emancipation is now considerably governed by the quality of information technologies. Data sources & methodology pre-testing of Questionnaire. Since the sample is represented by various strata of the universe. Measurement of Brand loyalty. Need for Brand loyalty.Every care is taken to study the foregone objectives in detail. Scope of the study. the information technologies have been successful in building a super highway for communication knowledge is supposed to be the power generating force. Limitations of the study & chapter layout. Information management is an integral part of the decision making process. Classification. which are as follows:1. In spite of the above limitations. Review of literature. however the study is subjected to the following limitations. Classification of Brand loyalty. The information technologies will continue to play an important role in the decision making process.  The conclusion may or may not be generalized since the study is confined to Andhra Pradesh only  The numbers which are approximated may or may not convey the exact results. Models of Brand loyalty. editing. CHAPTER II: 1. Loyalty phases. it is hope to have the way for further research in the area. Factors influencing brand loyalty. Need for the study. CHAPTER LAYOUT: The study is presented in chapters. CHAPTER I : “INTRODUCTION”.    A deep study was not undertaken due to time constraint. the study should throw some light on the understanding of brand loyalty in cellular services. this chapter will comprise of conceptual overview of Brand loyalty. 2. they may be biased in certain responses. The areas selected were few & as such the scope of the study is limited. Period of the study.1 INTRODUCTION: In the present day world. Tabulation & analysis. Since this is an exploratory study. Meaning & Definitions. Objectives of the study. Communication Technologies is found to be contributing substantially to the development process. Obstacles to loyalty.

The telephone lines at the heart of the communication revolution. The world will change as a result of the communication revolution. The telephone was invented in 1876. change has been slow. every user of the network can communicate with every other part. to receive a personalized communication channels. decisions about where people work and what kind of work they do. But the death of distance is only one of the astonishing changes taking place as communication and computers are combined in new ways. and the second from the steep fall in the cost of computing power. They result. so that.an astonishing increase in the carrying capacity of much of the long distance network and the development of mobility. and this one will be no exception. In its existence of a century and a bit. are the patterns of international trade. the first television transmission was in 1926. rather than near its market. Technological change has the power to revolutionize the way people live. concepts of national borders and sovereignty.2 THE ROOTS OF REVOLUTION: It is easy to forget how recently the communications revolution began. a revolution has taken place since the late 1980's. The death of distance as a determinant of the cost of communicating will probably be the single most important force shaping society in the century. in the first case. unlike with television. 1. TV & Interactive today's fast changing communication technologies have existed for more than half a century.e. Once a connection was made people in the branch will stay on the phone reading books and news papers all day just to keep the line open until it was needed. Networks are being developed that are (a) like the telephone. All three of i. and the electronic computer was invented in the mid 1940's.found sophistication in the process of communication technologies getting an important place on the development agenda of almost all the countries. high capacity or "broad band" so that they can carry moving pictures and (c) Interactive. The telephone network has had the least capacity for its most useful service long distance communication. the Telephone Since the 1980's. the telephone has already transformed social and economic The death of distance loosens the grip of geography companies will have more freedom to Mobile telephones now account for almost half of all new telephone connections world wide and few millions of people are just using electronic 25 . "switched" so that they can used by many subscribers. For much of that time. Fiber . but in each case. Telephone. (b) like television. locate a service where it can best be produce.optic networks and digital compression will allow many families. the oldest of the three technologies has undergone two big transformations . mails. In ways that are only dimly imaginable. from the use of glass fibers to carry digital signals.

Mobile telephones More than one in seven of the world's telephone subscriptions are for mobile telephones. Because the telephone is so versatile and so widely used. The forces for changes are not just technological. too. and the wiring of the world. In addition.life beyond anything that Alexander Graham Bell dream of back 1876. the line between a mobile and a fixed telephone will blur. the increase in the number of things a phone can do. That rate has now fallen 26 . The richer countries of the European Union have pledged to open their market to competition at the start of 1998 and world trade organizations (WTO) agreement reached in early 1997. In 1992. It has brought innovations of three kinds. mobile service tariffs were. known as "wireless local loop". there will be three key trends. These changes will reshape the telephone business from being dominated by monopolies a single state owned giant or a few big regional monopolies.link tariffs. and mobile telephones will acquire many of the attributes of portable computers. As the use of mobile telephones continues to grow. the wireless link to a fixed point. The shift from fixed to mobile telephony will be hastened by the falling price of actually making calls over mobile telephones. Business customers will benefit first and most. but today's big telephone companies will find them selves facing unprecedented commercial pressures. Most voice conversations will be received on and sent from wireless telephone. for the first time. employment and information to millions. It has brought companionship. and the tracking of moving objects. This familiar instrument has become the gate way to new world. there changes will have profound effects. It will retain its tendency to concentration. on average. the collapse in the cost of providing a long distance calls. but individuals. The revolution now taking place has three aspects. Wireless Telecommunication Most striking change in telecommunications since the early 1980's has been the development of wireless services. The mobile telephone. The mobile telephone is now the competitor for the telephone companies core business of voice conversations. have number of other countries. Telecommunication is becoming more like other fast-changing industries full of new comers. including new comers from other countries and from other industries. Competition will be good for customers new services emerge more often where competition is lively. three and a half times higher than fixed . Mobile telephones will capture a growing share of voice traffic. will eventually enjoy most of the concession that companies receive. privatization and deregulation are bringing competition into the telephone industry in many countries.

a fixed antenna can be permanently tuned precisely to the correct base station. truck. The fusion of fixed and mobile telephone will take place on many fronts. Electronic tags that track stolen automobiles or roaming Systems used to monitor the position of electronically agged containers.2000 27 . Most faults arise at one end or the other of the network. "wireless local loop" offers a cheap alternative. Mobile telephones will become available that are not tied to one service (and tariff). A mobile telephone uses a great deal of spectrum to switch from one base station to another. • Inventory control system: shelves. Wireless Local Loop A local telephone network is expensive. Locating moving objects. The main cost is that of transmission spectrum must be allocated. for instance or to check stock on super market elephants or probes that monitor that state of a patients heart to warm of an Competent Copper Cost per connection ($) 200 . "Personal Communication Services". moving objects can be tracked. and voice calls from mobile services will start to overtake those from fixed services. Tracking moving objects Mobile communications have another set of applications just as radical as the mobile telephone. with the help of global positioning satellites. Including the following. or military targets or that help a hiker find atrack or a farmer to work out which parts of a field to spray. General.1: Representative costs of local loop technologies. • Toll Payment System: Systems for automatically assessing tolls against automobiles passing through an electronic check point. • Table No.1.to a point where the overall cost of using some mobile services is becoming competitive with that of fixed services. • Altering System: impending attack. a huge range of uses is developed. a new generation of wireless telephone. • Navigation System: Electronic maps that pin point the location of an automobile. making them easier to repair than those in the part between exchange and customer. a position on the globe can be pin pointed with extra-ordinary precision and with land based wireless. a mass market will reached. will be combined in all sorts of flexible ways with cord less and fixed-wire telephones. But maintenance costs are low. From such technologies.

Good telephone services are especially important for poor countries because they bind the poorest. This is partly because city dwellers have more political clout than rural dwellers and partly be cause it cost up to five times Information Infrastructure: Regulatory requirements OECD 28 . but they have only 10% of the lines. Privatisation.Developing countries can also move to mobile telephones more rapidly that can rich countries. unlike those in the rich countries which now require upgrading. In Chile the first Latin American company to privatize there proportion of people with access to a telephone doubled within three years and waiting time fell from nearly ten years to just one.Fixed wireless Coaxial cable * Fiber to Curb Fiber to Home 500 500 1050 upward 2000 upward * Does not include additional cost to upgrade for interactive capability. Cost saving technologies can reduce the cost and increase the reliability of services. a perennial problem in poor countries. and Australia Telstra is installing pay phones in Phnom Penh. Deutsche Telecom is building a fixed link system in Indonesia. most distant regions into the rest of the country and they allow developing countries to compete on the same footing as richer rivals. 1. . Peru sold a 35% stake in its telephone system to telefonica de Espana in 1994. AT & T is building a mobile network in Argentina. many new technologies reduce the cost of installing new networks and newly installed networks will be state-of-the art. poor countries have two advantages. thus US west is building a network in Southern India. competition and open markets assure more important in developing countries than in rich ones. In building telecommunications network. Mobile operators do not need to compete against a massive installed based of fixed wire telephone which has long been amortized. In India 74% of the population lives in villages. Source: 1997. a rare instance of a country ceding effective control of its system in exchange for a large investment in it.3 BENEFITS OF TELEPHONE SERVICE TO RURAL AREAS: People who live in the country are less than half as likely to have access to a telephone as people who have live in cities. Some times the discrepancy in much worse. Several developing countries have accepted bids from foreign firms to build parts of their network. and their spectrum is frequently less heavily used than in the rich world. but for an even more important reason. Such policies make sense not only because they will allow users access to in expensive telephone services.

It is important to connect cities to the rural areas and as it is to connect cities to the rest of the world. They also provide a disincentive to move to the city. raising aspirations and transforming patterns of consumption. are now on track to become the telecommunications power houses of the next century. health care. Today emerging economics account for more than 25% of global telephone traffic in the year 2005. countries with good communication will be indistinguishable. rich country may find it less expensive to reverse the direction of a call to exploit low telecommunications costs in the developing world. Even those close to an innovation may fail to spot its significance. especially in Asia.as much to install a fixed line in a rural area as in a town and obviously to install wireless links -"mobile or even less expensive. education. Moreover rural telephone services frequently. Some of the advantages of urban life are available to those who stay. Country dwellers make and attract many more long distance calls than do city people. technological information. Developing countries may be a low-cost location for telecommunications services. the benefits of persuading people to stay in the country are immense. Since around 1990.4 They will have access to services of first - world quality. as they now provide a low cost. health care. to the rich countries 2%). In few years it is likely to see the increasing integration of the internet with both the telephone and the 29 . In expensive telecommunications services will narrow the advantage of the first world over the developing countries. Benefits of telephone services to competitiveness one of the powerful effects of the enormous investment in telecommunications now under way will be to reduce some of the gaps between developed and developing countries. and political information which will faster the spread of democracy and open to public affairs. 1. by then China will be one of the top three sources of international traffic and India will be close behind. Indeed. education and a host of other services. each much larger revenue than those in cities. commercial information. which can allow developing countries to catch "up with the rest of the world in industry. The benefits from plugging developing countries into the vast global telephone network will be enormous. international call charges in the two have been converging as developing countries cut tariffs at a faster rate than rich countries (by roughly 3% year. fixed. In rural areas. SIGNIFICANCE OF THE TELEPHONE SERVICE: The way demand for a technology will evolve is a game with a high failure rate. good communication can bring news. education and technical information. the ITU predicts that will rise to more than 50%. The telephone brings access to information from other parts of the world. The fast growing developing countries. medical and agricultural advice.

Commerce. It will also vary enormously from one country to the other. culture. including many kinds of retailing. Some of the developing countries with their young population and fewer pre conceptions. The most immediate effect of the communications revolution will be to allow familiar objects and be used in new unfamiliar ways. convenience and cost. Cost: Demand will be boosted when new technologies cut costs. largely free from debt. The barriers. may thus be quicker than older west to spot and take advantage of new possibilities. There will be new opportunities to integrate customers and suppliers using the corporate communications network. a growing share of the cost is carried by companies. Employees in different countries or regions will be able to work in teams on the same project. will become increasingly international. the way people adopt new technologies will be influenced by culture. All kinds of services will be brought in communication improve it will become easier for companies to hunt for spare capacity and low prices. The broadest impacts of new communication have been the effect will be felt in four main areas. The services whose costs will be mostly affected can be electronically distributed from computer software and video's to financial services and information. the government and the political process. especially. The following factors will be among those that determine how each technology is used in the future. society. like one-fifth of the rich world's population they are over 65. Such global retailing will allow many niche markets to emerge. delivery costs and different rules of consumer protection. Culture: People are doing things one way. the telephone companies have the muscle and ubiquity to exert enormous influence over the future of communication. It takes time for a new technology to find its true market. In the short and medium term. Technologies such as 30 . at least in the short run. with powerful national brands. Suppliers will tap into their customer electronic data base to work out what the customer need and to supply it. such as customs formalities. business models to emerge.television. The most powerful corporate role will be played by the telephone companies. Commerce and the shape of the company. will gradually decline. Convenience: Some technologies can be readily used in one situation but not in another. with toll-free calls. A knowledge based company can buy in much more of what it needs. It takes time too for new People are paying directly for telephone services although. they may be slow to change. Companies: Companies will be able to build new links not just with customers but with employees in different parts of the country or around the world. the economy. design or marketing or packaging than a traditional company.

exports and as a destination for foreign direct 31 . lunch. namely. More people will work from their homes or from purpose built small offices. Economic will benefit from the vast increase in the diffusion of knowledge and information. In fact. it is the sector that is increasingly contributing to the high growth rate recorded in the country. cotton textiles and Pharmaceuticals are showing much dynamism in terms of exports. People who live under dictorial regimes will find it easier to communicative with the rest of the world. Society: Society too will change with the disappearance of the old demarcation between work and home. Despite showing a goad growth performance over the last three years or four years. The service sector in general has come to occupy preeminent position in India's economy in terms of its contribution to overall GDP . auto parts. and individuals to spot opportunities.electronic mail and computerized billing will reduce the costs of dealing with suppliers at arm's length. The introduction of new production methods. The office may become the place for the social aspects of work such as networking. But this competitiveness is restricted to the services sector. Growth of India’s Telecom Services(1991-2007) The phenomenal growth of the information technology (IT) industry in India has brought to the fore the growing importance of the country as a knowledge powerhouse. thus inverting the familiar roles of home and office. changing the balance of power between governments and their citizens. and catching up on gossip. new products and new kinds of industrial organization is the main force driving growth and living standard. However India's exports have now diversified to encompass services. The communication revolution speeds up the diffusion of innovation. productivity and waste reduction. Information is also essential to make markets to work well. Political and government will be transformed by free communication. The result of intensified competition will be greater emphasis a performance. It will thus allow new competitors to spring up companies to react quickly. People will be able to communicate their views to their government leaders and representatives more easily. This revolution is especially important because of innovation. the basic building block of economic growth. the manufacturing sector is still a relative non-performer although three industries.

The sector accounts for about 4 per cent of overall GDP and the recent high rate of growth has contributed to about 11 per cent of the growth in GDP of the country. Telecoms and India's Growth Communications is the fastest growing sector in India's economy. In the context.investments (Table 1). the purpose of the present paper is understand the technological implications of the phenomenal growth of this industry. spending developed by World Information Technology and Services Alliance (2006).02 per cent per annum since the turn of this millennium (Table 2). And an industry where it is very clearly visible is telecommunication where a revolution of sorts is taking place [Mani 2007]. Manufactured exports are still •dominated by low and medium technology products although. there are indications that this capability is slowly percolating into hi-tech manufacturing. it is ICT again communications that is more important. pharmaceutical and certain types of machine tools have crept into India’s export basket. With some fluctuations. This is evident from a dataset on the total spending on by India. aerospace. about 63 per cent was in communications. An interesting dimension. but it accounts for only about 15 per cent of the total telecoms industry. of high technology production in India is that this capability is largely in the realm of services. of ICT The communication sector comprises both services and equipment manufacturing. in %) 32 . The average compound rate of growth of the economy works out to 24. is enabling India to be in the' league of high technology producers from the developing world. although in the above characterisation the data refers only to the services segment. 1. the equipment sector is slowly seeing a decrease in its share in the total revenues of the telecommunications industry (Figure 1). But the growth of IT exports and the evidence of moving up the value chain in IT . Table 1: Relative share of the service sector in India’s Economy (1990-91-2006-07. earlier some hi-tech products such as. The domestic production of telecom equipments has shown some impressive increases during the period since 2001. The recent growth of research and development (R&D) outsourcing is yet/another illustration of the country's prowess in high technology activities. No other sector of the economy has clocked such a rate of growth. etc. However. In information and communications technology (ICT). the emergence of other high technology industries such as biotechnology. Introduction 2.

As at the end of July 2007.8 Exports 20 39 FDI Not available 81 Table 2: Contribution of communication sector to India’s Growth Performance (1990-91-2006-07. other than China. No other country in the world.6 7.04 18.6 25.8 23.8 8.2 2.04 0. an average annual growth rate of over 27 per cent per annum.9 4.4 22.60 17. there were 233 million subscribers.1 Dimensions of Growth In 1991.07 5.67 0.77 0. in %) Share of communications in GDP 19992000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 1.03 9.9 19.6 1.16 10.47 7.09 22. Tele density too which was below one telephone per 100 population has now risen sharply to about 20. has shown such high rates of growth (see Table 3). telecommunications is the only one that has shown significant improvements over the reform period. There are at least seven dimensions of this growth performance that merit our attention.1 12.81 6. it is generally opined that a revolution of sorts is taking place in the Indian telecoms industry.8 33 .64 10.6 61.1 3.6 3.66 19. Consequently.89 1.03 9.8 5.81 6.4 8.Real GDP 1990-91 2006-07 40.5 25. India had just five million telephone subscribers.07 5.5 9.5 4 26.1 5. Among the infrastructure industries.07 Ratio of mobile to fixed 1991 1992 1993 1994 1995 5.6 14. Table 3: Trends in Number of Telecom Subscribers and Tele density (1991-2007) Number of Telecom Subscribers Fixed Mobile (inmillion) Total Growth (%) Teledensity 0.9 2.8 8.51 Growth sector GDP Growth Contribution (%) 2.58 9.6 3.

34 0. a huge domestic market for telecom equipment has suddenly emerged in the country spawning the creation of a significant manufacturing base.02 0.11 1.48 76.64 0.79 24.81 6.52 0.48 42. almost the entire increase in the availability of telephones has been contributed by wireless technologies.58 1.27 2007 6.44 41.58 13 33.04 10. Consequently.55 3.6 2005 1.54 22.58 50 76 149.51 32.5 million new subscribers were added to the existing stock.39 36.98 14.88 3.14 11.4 million until September 2007. (ii) Growing Market for Telecom Handsets: As a corollary of the above.3 5.88 18.58 45 49 40. This point will be discussed at some depth in the fourth section.5 217.25 39. the wireline services have started falling.43 39. on an average 1.28 Dominated by wireless technologies. which has now become a worldwide trend. Table 4: Monthly Additions to Mobile Subscribers (2002-07.00 24. In fact. This will be analysed in some detail in one of the subsequent sections.56 1. In fact what is interesting is that since 2005.98 14.86 3.66 17.22 34 .26 1. has some implications for the diffusion of the internet in the country.57 26.21 25. in million) 2002 January February 2003 0.5 5 22.6 2004 1.88 1.06 0.58 51.67 2006 4. A number of factors explain this decrease in the popularity of fixed telephones.31 0.11 0.79 28.68 22. it is seen that there has been a steady increase in the average number of mobile subscribers per month since 2003 (Table 4).2007) 11.33 2.94 2.58 4.1 7.24 24.94 1.70 5.9 3 256. which include cellular mobile and fixed wireless technologies. These large increases in the number of mobile handsets have strong positive implications for the telecom equipment industry and specifically the mobile handsets industry. which means that close to six million handsets are being sold every month.02 54.41 0. while extremely positive from the availability point of view.76 1.79 1.8 21.16 95 125 189. Chennai has become a thriving cluster for mobile handsets manufacturing and this has important implications for the downstream industries such as the semiconductor industry. India has one of the highest ratios of wireless to wireline services.05 0.59 26. This heavy reliance of wireless technologies.07 0.1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007(as on October 31.16 22.54 17.74 31.2 1. In 2003. This increased to 6. which is now almost five (Table 3).69 4.88 51.

32 1. In fact it was only in the late 1990s.72 0.March April May June July August September October November December Average 0.33 1. 2007) Public Private Total Wireline 91 9 100 Wireless 19 81 100 (iv) Competition .46 2. (2) long distance or national telecom services.8 6.8 8.35 0. This again is due to the fact that the public sector is more dominant in wireline (or fixed) and the private sector is dominant in the wireless (mobile) segment (Table 5).53 6. it is competition between various service providers.36 0.49 0.42 2.74 1. Table 5: Telecommunications Services according to ownership (Percentage shares as on May 31.64 2.63 0.79 1.03 3.74 2.46 1. They are: (i) the local telephone market.31 7.35 3.07 6.95 1.9 1. while the private sector was able to dominate the new wireless technology.37 1.88 (iii) Increasing Privatisation: The share of the private sector in the overall telecoms industry has been rising (Figure 2) and the ratio of private to public actually crossed unity in 2006.71 6.51 1. it has suddenly become very competitive. There are essentially three types of markets based on the geographic coverage of the service.78 5.46 2.51 4.67 1.56 1. We 35 .28 0.9 6.78 1.84 1.57 7. The two public sector service providers (BSNL and MTNL) dominated the wireline sector.46 0.67 1. early 2000s that the government allowed the public sector entities to provide wireless communication services.25 4. it is competition between two standards or technologies. although this competition was restricted to public policy designed spaces or markets known as telecom circles.61 1. namely.53 0.Fixed vs Mobile and GSM vs CDMA: An interesting feature of the industry is that after a very long time.37 0. This sort of a structure is largely the product of historical reasons.88 4. First. There are three dimensions to this competition.34 8.33 5.39 5.46 1.69 1.9 3.96 0.29 0.93 1.72 1.26 1. A yet another dimension is the type of market.48 2. Second.06 8.05 6.11 6. and (3) foreign or the overseas market.43 1.97 2. the Global System for Mobile Communications (GSM) VS Code Division Multiple Access ( CDMA ) standards.8 0.4 5.

one of the few non-oil public sector enterprises (PSES) in the top 10 profit-making PSES in the country. Competition in Fixed and Mobile Technologies: The markets for mobile services are much more competitive than the one for fixed line services. 2007). this does not mean that the market for fixed telecom services is not competitive. Instead what one sees is a significant improvement in the performance of BSNL during this period. from charging high prices. There are two dimensions to this level of competition for fixed services. so the fixed service providers face intense competition from mobile services. Three areas where the firm has made performance improvements are: (i) considerable reductions in the number of consumers on the waiting list for a connection.1592. 36 . and (iii) number of personnel per 1. Chennai. the consumers are increasingly substituting mobile for fixed services. Delhi-NCR. the market for fixed telephone services is much more concentrated than the one for mobile services. although in seven of them. Madhya Pradesh. Of course. BSNL is one of the leading profit-making central public sector enterprises in the country: in 2005-06 it made a net profit of Rs 8. Mumbai. (b) Competition in Mobile Services Industry: Compared to the fixed services. Bharat Sanchar Nigam (BSNL). Second.focus here on all the three dimensions of competition between the service providers.8.940 crore . the H-Index has a value less than 0. On all the three indicators BSNL has made substantial progress [Department of Telecommunications 2007] and I argue that this is entirely due to the force of competition leading to efficiency gains for this rather monopolistic firm which has had a previous history of being completely impervious to the demands of consumers. the Herfindhal Index (H-Index) for fixed services for the nation as a whole works out to 0. Punjab and Karnataka. For instance (as on May 31.000 subscribers. The market for fixed telecom services is highly concentrated in all the telecom circles. the incumbent service provider. (ii) reductions in the number of faults per subscriber. This national level picture hides the level of competition that exists at the sub-national level. BSNL continues to have the lion's share of the market. the existence of mobile communication services has made the market for fixed line services contestable and as a result despite high concentration.1 First of all.6899 while the one for mobile services work out to 0. In the latter. the existence of the telecom regulator too has acted as a check on the dominant service provider. (a) Competition in Fixed Telephone Services: If one goes by overall summary measures of domestic competition. First. However. namely. the prices of fixed telecom services kept falling or kept under check over the last five years or so.

1370 in 2002 to 0. Second.1593 in 2007. However. If one computes the H-Index for the industry. 37 . the mobile communications industry. Mumbai and Chennai for instance. on various occasions. the industry started as one dominated by private sector enterprises and the government religiously followed a policy of "managed competition" by licensing more than one service provider in a telecom circle. at the national level (which is not exactly a meaningful as some of the providers are only at specific telecom circles). the private sector providers have positioned themselves in the most revenue earning circles. In other words. right through inception the government envisaged an oligopolistic form of competition. Seventh. by the regulator. it is the rapid growth of this industry that has catapulted the communications sector into one of the major growth-contributing sector of India's economy. more regulated by the newly created independent regulatory agency. Most of the service providers have focused on specific regional markets. In short. it shows a mild increase: the H-Index for the industry increases from 0. Fifth. Also it is seen that it is the circles with high revenue earning potential where there has been an increase in the intensity of competition . with the exception of Bharti (the largest mobile service provider). Sixth. the Telecom Regulatory Authority of India (TRAI). It is also interesting to see that the circles where BSNL has a monopoly position are also those with very low revenue potential. there are only four service providers who have a presence in at least 20 of the 29 circles. their competition was more in terms of price and conditions of sale and of late these two aspects are much in public scrutiny thanks to the timely intervention. In fact majority of the 28 circles have at least four services providers and in a number of cases there are six service providers well. most of these private sector enterprises had some of foreign equity holding of sorts.in the metros of Delhi. this increase hides considerable variations at the circle level (Table 6). Since all the services providers were new and had the same vintage of technology. Third all of them are based on new technologies that were state-of-the art. In fact.the mobile services industry has a number of distinguishing features. Fourth. The early part of the industry was of course riddled with much controversy pertaining to the terms and conditions under which the licenses were issued and the spectrum allocated between various kinds of service providers [Desai 2006]. the conduct of the industry was. especially the equipment part of the industry is the second largest in the world (next to China) and therefore has attracted considerable FDI in the manufacture of handsets leading to the employment of skilled manpower. India is supposed to be having the cheapest mobile telecom tariffs in the world. First. relatively speaking.

49 0.20 0.21 . GSM .20 0.25 0.23 0. Most Indian consumers are unaware of the nitty-gritty of the two technologies.23 0.45 1 0.21 0. Ever since that year and until the end of 2002.20 0. ease of obtaining a new connection and whether a handset is available at a reduced price as part of the deal.19 1 0.28 1 0.22 0. 38 .30 0. the market was dominated by just one technology. So the deciding factor between the two technologies is often based on price and other conditions of offer such as the coverage of the service.0.18 0.29 0.24 0.18 1 0. namely.24 0. has since been growing faster than although there are some year-to-year variations (see Figure 3).22 0.20 0. a Reliance Info-comm launched CDMA services across 17 circles on a countrywide basis.19 0.Telecom circle 1 Andaman and Nicobar 2 Andhra Pradesh 3 Assam 4 Bihar 5 Chennai 6 Chhattisgarh 7 Delhi-NCR 8 Gujarat 9 Haryana 10 Himachal Pradesh 11 JandK 12Jharkhand 13Karnataka 14 Kerala 15 Kolkata 16M P 17 Maharashtra 18M um bai 19 North-east-1 20 North-east-ll 21 Orissa 22 Punjab 23 Rajasthan 24Tamil Nadu 25 UP (east) 26 UP (west) 27 Uttaranchal 28 West Bengal India as a whole Number of 3 service 4 4 5 6 1 6 6 6 6 4 1 6 6 5 5 6 6 4 1 5 7 7 6 6 6 1 6 12 Herfindha l index 0. CDMA GSM.28 0.18 0.16 Dominent Bharti (42) Reliance (59) Aircel(31) Bharti (38) Aircel (26) BSNL(IOO) Suplier (with Market) share in % ) Hutchison Essar (21) Hutchison Essar (38) Reliance (27) B5NL(30) BSNL(55) BSNL(IOO) Bharti 329) B5NL(29) Hutchison Essar (25) Reliance (32) Idea (23) Hutchison Essar (25) BSNL(35) BSNL(IOO) Bharti (31) Bharti (30) BSNLC7) Aircel (28) Hutchison Essar (22) 'Hutchison Essar (22) BSNL(IOO) Hutchison Essar (29) Bharti (23) Competition between Mobile Standards: It was seen above that mobile phones were introduced in the country towards the latter half of the 1990s and specifically in 1997. But in December 2002.

Given this sort of a possibility of perfect substitution between the two types of technologies. Although charges for both the calls have come down. Before the deregulation of the telecom services industry and indeed the entry of mobile service providers. service providers have to compete with the CDMA GSM CDMA CDMA service providers and this has prevented service providers from wielding any excessive market power. This is plotted for both fixed and mobile services as well. while retaining the same number. But it was only in October 2007 that the DOT finally announced the introduction of GSM number portability from April 2008. TRAI had recommended in March 2006 to the Department of Telecommunications (DOT) that mobile number portability be introduced by April 2007. (v) Price of Telecom Services: One of the more direct effects of this competition is lower prices. This is because of the relative advantages which mobile technology can bestow on its user. both in the case of fixed and mobile services: first an activation charge followed by a charge for each type of calls. This has now been effectively checked. If one were to plot the price of telecom services and the number of subscribers. The price of telecom services basically follows a two-part tariff. the existence of the two standards has made both the markets for and CDMA GSM CDMA services very competitive. one can see an inverse relationship in the case of mobile services although in the case of fixed services such an inverse relationship is not visible. Table 7: Cost of mobile calls in India compared to other countries (As of June 2004) 39 . What is being argued here is that despite being highly concentrated. This is further indicated by the higher Herfindhal Index for services. In fact. One of the most important institutional requirements for competition to emerge and sustain is the introduction of number portability. a higher reduction is noticed in the case of mobile services. telecom consumers were periodically subjected to increases in the tariff. This is especially so when the market for services is highly concentrated with just two service providers accounting for almost the entire output. and also between and CDMA. but this was strongly opposed by the players. Number portability allows a customer to move from one mobile service to another within GSM GSM. For mobile communication consumers then there is the additional cost of calls according to whether it is post or prepaid. Based on estimates made by TRAI (2006). I have obtained the minimum effective charge derived out of an outgoing usage of 250 minutes per month per quarter during 2003 through 2005. India now has one of the cheapest mobile tariffs in the world (Table 7) and this can give an additional fillip to the growth of ICT industry in the country.

in my view. when considerable amendments TRAI TRAI'S functioning has been marred by a number of bitter disputes between it.03* 159 per month 92 261 119 156 309 (vi) Institutional Support: An interesting feature of the growth of telecommunications industry in the 1990s and beyond. although in more recent times (especially since 2001) it has been rather effective in shaping the conduct of the industry in terms of pricing behaviour and indeed in quality of service. On the whole.007) rates per minute mobile subscriber Australia Brazil China Switzerland Japan India 0. compared to the earlier period is the strong public policy support that the industry has received. Of these four main policies. The 10-year history of telecommunications regulation in India can be divided into two phases: the first covering the period 1997-2000. the and the service providers.33 0. TRAI'S functions can be broadly categorised into two: recommendatory 40 .163(0. DO'T TRAI had just been established and the second covering the period 2000 onward. (In late 2007.022) 0.010) 0.) I do not attempt here to provide a detailed review of operations since its inception. (iii) New Telecom Policy of 1999. when were made to the original Act. and (iv) Broadband Policy of 2004. It was manifested in the form of the following policies: (i) National Telecom Policy of 1994.45 0.025(0.11 0.04 0.Country Callcharges per minute Minutes usage of per Average revenue per user($) 43 11 10 59 63 11 Termination ($) 0. The purpose is essentially to illustrate the need for a more independent regulator that can effectively oversee the functioning of an almost completely deregulated industry.020) 0. TRAI found itself once more in controversy over spectrum allocation and TRAI'S pricing.130(0.24 0.080(0.O16)" 0. (ii) Telecom Regulatory Authority Act of 1997. the most important piece of legislation that is determining the growth performance of • the industry is the establishment of the regulatory agency TRAI. considerable improvements in both the price and quality of services and the existence of a watchdog of the industry. The actual benefits that the consumers have received from this regulation have been discussed in detail elsewhere in the paper in terms of increased easy access to telecom services.017) 0.007(0.152(. but a quick survey of its place in telecom regulation in India.

it failed to ensure that private operators adhered to their license conditions. it effectively reduced the power of the regulator. the pronouncements of TRAI are merely recommendatory and the final decision is to be taken by the government. TRAI'S recommendations to the government are binding only with respect to the non- compliance and efficient use of the spectrum. Its authority and credibility were undermined by court rulings that clearly exposed its lack of power. On the crucial issues of timing and licensing 41 . phone service operators. At the same time. namely the power to settle disputes between the various stakeholders. and it was and generally viewed as driven by the well-organised and vociferous lobby of private TRAI did little to hide its pronounced contempt for the BSNL DOT the state-owned providers. this was followed up with a strengthening of TRAI'S role in a number of other areas. TRAI' S TRAI as a "muddled regulator". In short. However. Mani (2002) referred to the because during this phase. The governmental admission of the ineffectiveness of in TRAI'S TRAI resulted in the reinvention of the regulator and a redefinition of its functions. This function was vested in a newly created Telecom Dispute Settlement and Appellate Tribunal (TDSAT). This is functions were poorly articulated. and MTNL. The mandatory powers of TRAI are restricted to a number of technical issues such as fixing the terms and conditions of inter-connectivity between the service providers. This shows that the effective space that is available for the TRAI in terms of asserting its real power is very limited. It is seen that in most of the important conduct variables such as the promotion of competition. Its reputation suffered even more when it allowed the private operators to fight its court battles. laying down the standards of quality of service and to ensuring that these conditions are actually met by the service providers and ensuring the effective compliance of the Universal Service Obligation. technology and quality of service and in the efficient use of spectrum. After a detailed review of its functioning during the earlier period (1997-2000). This fact has to be borne in mind while one assess the contribution of this regulatory agency towards improving the conduct of the industry even post 2000 than that actually prevailed in the previous period. it would not be incorrect to state that there was "regulatory capture" during this first and initial phase of its operations. etc.and mandatory. But it can be shown that although the amendment clarified the precise role of the regulator by considerably reducing the grey areas. This takes us to the second phase history and this thinking manifested itself in the form of the issuance of an TRAI ordinance to replace with an appellate tribunal with judicial powers and a reconstituted regulator that lacked one of the most important functions of any telecom regulator. pricing.

number of patients) Multiplexing 2001 2002 2003 2004 2005 0 2 3 6 7 Pulse or Digital 1 1 1 2 2 Telephonic 0 0 0 1 1 Telecommunications 0 1 1 0 3 Total 1 4 5 9 13 (vii) Growing R&D Outsourcing: It is generally held that India has emerged as a major R&D hub. this growth has also been with some disquieting features. significant reductions in the waiting time to get a telephone connection and indeed in the price of telecom services. The Technology Information and Forecasting Assessment Council (TIFAC) (2007) study confirmed this commonly held proposition: R&D investment worth of $ 1. Telecom along with the pharmaceutical industry is a major recipient of these investments. And on these two and especially on the tariff issue. the TRAI has been reduced to a tariff-setting body empowered only to fix tariffs and inter-connection charges and to set norms on quality of service. p 1355]. All these were positive features -the phenomenal growth of the industry. However. Three such disquieting features of the growth of the industry 42 . The innovative performance of this segment can be gauged from the fact the number of the us patents issued to Inventors from India (including MNCS having operations in India) in the area of telecom technologies has increased from just one in 2001 to 13 in 2005 (Table 8).of new service providers. 3 Three Disquieting Features In the previous section I have outlined several dimensions of the growth of the industry. In sum. TRAI'S recommendations are not binding.13 billion has flowed into India during the five-year period 1998-2003. TRAI'S role is generally considered to be very satisfactory Table 8: patents issued to Indian inventors in the US (2001-05. The total receipts of R&D services have doubled from $ 221 million in 2004-05 to $ 519 million in 2005-06 [Reserve Bank of India 2006.

notably Desai (2006). The Universal Service Support Policy for Implementation of USO took effect from April 1. This growing digital divide. It is administered by the DOT and it has three major components: (1) providing public shared access. and (3) the relatively low penetration of the internet in India.dot.have been identified. while Uttar Pradesh. The ratio of urban to rural tele-density. which was falling until 2002 has started rising again since 2003 and in 2005 was much higher than what was in 1996. Bihar and Assam have the highest digital divides. as cumulatively speaking only about a third of the funds accumulated have actually been disbursed (DOT. The overall performance of the uso fund is far from satisfactory. The urban divide within each of the telecom circles is presented in Table 9.in/uso/implementationstatus. Specifically. This confirms the oft-expressed view that the telecom revolution spearheaded by the mobile phones has remained largely an urban phenomenon. Tamil Nadu (excluding Chennai) and Punjab have one of the lowest urban-rural divides. The government has put in place an institutional arrangement for bridging the digital divide. remote areas and non-remunerative areas. (i) The Growing Digital Divide: Several commentators. To illustrate. It shows that Kerala. 2002. (2) increased dependence on imports as far as the equipment are considered. This fund is raised through an "universal access levy". They are: (1) the growing digital divide. The latter policy is on the anvil and is yet to take shape. This is so severe that the national picture that I presented above is only representative of the urban areas of some of the states. when the mobile revolution was just about to begin. (2) providing individual access. as it is usually referred to. had referred to the growing inequalities in the availability of telephones especially between states and indeed between the rural and urban areas within a state. is of course a reflection of the growing divides within the country as far as income and wealth is considered. and (3) infrastructure support for mobile service providers. the ratio of urban to rural tele density increased from 14 in 1996 to nearly 20 by the end of 2005 [Department of Telecommunications 2006]. http://www. Tele density (in 2005) ranged from as high as 60 per 100 people in the national capital region to just two in the backward state of Chhattisgarh. A yet another dimension of the digital divide is the variation in tele density across the various telecom circles (Table 9).gov. which is 5 per cent of the adjusted gross revenue earned by the service providers under various licenses. 43 . the National Telecom Policy of 1999 envisaged implementation of the Universal Service Obligation (USO) Fund to provide telecom services in rural.htm). The table also shows that rural tele density is significantly below the urban one across all the circles and even for the nation as whole it has remained at a very low level.

57 29. it makes a lot of sense to extend the uso funds to provide mobile services in rural areas as increasingly much of the growth in mobile communications have emerged from 'B' and 'c' circles. In fact.61 23.1 51. which is discussed below.12 78.The service providers.82 44 .15 10. and (iv) induction of new technological developments in the telecom sector in rural and remote areas.03 R u ra l 9.68 2.45 Ratio of LJ to R 2.05 27.18 22.61 15.45 11.46 4.15 9. However.34 2. Hitherto.3 The following additional four items were included: (i) Creation of infrastructure for provision of mobile services in rural and remote areas. (ii) provision of broadband connectivity to villages in a phased manner.55 12.21 2. Only the first of four are in the form of some implementation.26 30.59 2. Table 9: Digital Divide within Telecom Circle (as on March 31.07 10. However. Such increases in tele-density through mobile phones also have some negative consequences.9 1.09 45. it is prudent to involve mobile service providers too. the uso funds have been utilised only for provision of fixed line connections.82 1.21 17.21 31.49 47. excepting for the state-owned BSNL. are rather reluctant to provide shared access.94 25. the private providers are keen to participate in the provision of individual access in rural areas as it is more profitable than providing shared access [Department of Telecommunications 2007].86 5.46 1.19 15.93 7.74 2.08 9.85 15.81 48.74 12.71 30.45 11. Given the fact that the future is in mobile communications.89 8.74 12.24 0. 2006) Urban Andaman and Nicobar Kerala Tamil Nadu (-) Chennai Punjab Haryana Uttaranchal Maharashtra (-)Mumbai Gujarat Himachal Pradesh North-East-ll Karnataka Andhra Pradesh North-East-I Chhattisgarh Rajasthan Kolkata Mumbai Chennai 22.70 11. (iii) creation of general infrastructure in rural and remote areas for development of telecommunication facilities.66 10.63 6. Some amendments made to the utilisation of uso funds have expanded the scope of the funds to include more items. Encouraging the growth of mobile communications in the other circles and the rural areas within the circles can increase tele-density in the country.11 14.49 2. the four metros have ceased to be the major force behind the growth of the mobile connections in the country.37 1.

67 0. the liberalisation of the economy.14 8. Two variants of the rate.60 27.52 16.87 17.78 20. A self-sufficiency rate (SSR) is defined as the ratio of domestic production to total availability.DOT is credited with the DOT.32 16. when in that year certain customer premises equipments like the Electronic Private Automatic Branch Exchanges (EPABX) were thrown open to the private sector. Centre for Development of Telematics (c-DOT) to develop a family of digital switching technologies.22 19.Delhi National Average West Bengal (-) Kolkata Jharkhand Orisa Jammu and Kashmir Madhya Pradesh Assam Bihar Uttar Pradesh 52.35 19.47 25. In 1985. Until 1985 or so.25 17.71 18.51 1. Mani (2005) had argued that the C .74 1. The government's policy of public technology procurement practiced through its contributed to the emergence and sustenance of a domestic manufacturing industry in telecom equipment which fitted very well with the overall policy of import substitution that was being followed.15 18. the demand for such equipment had to be increasingly met through imports.58 36.19 34.78 0. the manufacture of telecom equipment was exclusively reserved for the public sector. Indian Telephone Industries (ITI) was devoted to the manufacture of telephone switching and terminal equipment. which it licensed to both government and private sector enterprises. This is because both the research and production components of the industry focused only on fixed telephone technologies and with the mobile communications becoming very important.56 21.33 25. the government established the standalone laboratory.67 0.24 16.05 0. In fact. the very first public sector enterprise established in independent India. SSRI which was the only telecom service provider for a very long time until the late 1980s also and SSR2 have been computed (Figure 4): SSRI is based on net availability data from the World Telecom Indicators 2006 of the International 45 .89 1. the virtual abandoning of the public technology procurement policy and above all the growth of the mobile communications industry put a leash on the growth of a domestic manufacturing industry. The deregulation of both the equipment and services industries.57 0. In fact. transmission and terminal equipment. where total availability is the sum of domestic production and net imports.05 0. namely in switching. establishment of a modern telecom equipment industry in the country.33 (ii) Import Dependence for Telecom Equipment: The country had earlier assiduously built up a domestic telecom equipment manufacturing industry in all the three segments of the industry.09 28.

Suffice to say that the industry. the domestic mobile service providers are depending on foreign vendors. the direction of movement is roughly the same although shows a much steeper fall in the self-sufficiency rate. which was more or less self-sufficient. To date there are 389 ISP licensees. According to a recent study on internet in the country by the internet and Mobile Association of India (2006). the government recognised the need for encouraging the spread of the internet in the country and opened the sector for provisioning of services by private operators. In November 1998. Although the level of as indicated by the two series is slightly at variance with SSRI UN SSR each other.000. The new telecom policy of 1999 had envisaged making the country a leading centre for the manufacture of telecom equipment. (iii) Low Penetration of the Internet: Internet services in India were launched in 1995 by Videsh Sanchar Nigam (VSNL). Even for IT solutions such as for software requirement. almost 76 per cent of PC TRAI estimates (Table 10. Although India is a leading exporter of computer software and indeed telecom software. According to million broadband subscribers. But as to be discussed below. http://comtrade. but its diffusion remains low. this is being achieved by opening up the market to domestic investments by MNCS. the number of subscribers had barely reached 1. its own telecom service providers are depending on foreign sources. but only 135 are operational.34 users have and 46 taken internet connections. Five account for 83 per cent of the market with the leading provider alone accounting for 42 per cent. there were 9.org/db/ ). Approximately 60 per cent of the users still use dial-up internet access. Public sector providers dominate with ISPS 56 per cent of the market (2006). is now increasingly dependent on equipment imports. P 43).40.Telecommunications Union and SSR2 is based on data on net availability of telecom Commodity Trade Statistics equipment developed by us on the basis of data on exports and imports of telecom equipment from India contained in the online database. the phenomenal increase in the growth of services has not really benefited the local Indian manufacturers as most of them do not have the technological capability to service the new technology based equipment demanded by the service industry.un. Broadband access was introduced in October 2004. Only about a quarter of the internet subscribers have changed over to broadband access technologies. (UN Comtrade. This means that the two technical reasons militating against the higher internet diffusion in the country is the lack of ownership of PCS . In other words.27 million internet subscribers as of end March 2007 and 2. By the end of March 1998. Majority of the subscribers use the older dial-up technologies for accessing the internet.

55 5. Table 10: Diffusion of Internet in India (1995-2007.04 3.01 0. it is generally held that whenever the country moves over to 3G phones.95 3. So the low internet diffusion in the country is a direct consequence of the country becoming too reliant on mobile phones. all the players are expected to be policy in 2007.27 of internet Numbers of Broadband subscribers 0. Of course. the current generation of mobile technology that is common in the country is 2 G and 2.18 1.04 0.14 0.5 G.05 0.55 6. Although it is possible to access internet over a mobile phone. The government responded to this prospect by announcing a semiconductor 47 .5 But for a long time this MNCS as no local companies are available as of now.42 3. and this increased demand can catalyse the domestic manufacturing of semiconductor devices. like for instance Digital Signal Processors (DSP). (i) India emerging as a Manufacturing Hub: The New Telecom Policy of 1999 had envisaged the country becoming a major manufacturing and export hub for telecom equipment. However.34 4 The Silver Lining The silver lining is that India is becoming a major manufacturing hub especially for mobile handsets. This has the potential of increased demand for semiconductor devices.28 0.64 4. numbers in millions) Number August 1995 March 1996 March 1997 March 1998 March 1999 March 2000 March 2001 March 2002 March 2003 March 2004 March 2005 March 2006 March 2007 subscribers 0.09 0.not having a fixed telephone for accessing the internet.95 9. it is not very likely that its diffusion will be high in the initial years. accessing the internet over mobile phones is easier. But given the much higher prices of 3G handsets.35 2.

the country was depending heavily on imports. With a monthly sale of over five million pieces since July 2006. However. Consequent to this thinking. Also. although fluctuating. increasingly (since 2001). Domestic output of telecom equipment. the import dependence of the industry will in all probability continue to be high for a few more years as the local manufacturing of mobile equipment is at present based largely on fully knocked down (FKD) and semi-knocked down (SKD) kits. But as the domestic manufacturing of electronic components and semiconductor devices increase. Although much of these investments (over 50 per cent) are in the services segment. The more proximate cause of this change is the large size of the domestic market for mobile communication. This growth of the manufacturing sector has several spillover effects besides direct employment. Further. One of the more important of these is the demand for electronic components and specifically semiconductor devices. However.sounded more like an empty statement not backed by reality where. the industry is going to be dominated by affiliates of fact. the equipment sector has ' received about a quarter of the total investment. India has now become the second largest market for mobile handsets in the world. which are used in the manufacture of these equipment.91 billion to over $ 16 billion by 2015. According to estimates by the Indian Semiconductor Association (formed in 2004). In this way the experience on this count will be similar to the Indian automotive industry. This was reflected in the rates of selfsufficiency presented earlier showing a declining trend. as noted above. although the numbers of data points are few. India will soon be safely in 48 . this situation has been changing very rapidly. My argument is that this correlation is bound to become more significant in the future. the telecom industry has been one of the major recipients of FDI MNCS. one can see an almost perfect positive correlation between the growth of the services sector and the equipment sector (Table 11. Mobile handsets and equipment will be one of the larger markets. In in the country since 1991 (Table 12). In short the domestic manufacturing industry will be dominated by foreign enterprises (Table 13). has shown some significant increases over the last two years (Figure 5). specifically since 2006.).6 If all the projects announced materialize. a number of proposals and projects for the semiconductor manufacturing industry have been announced. the import dependence is sure to come down. which all the major mobile handsets and other equipment manufacturers have begun manufacturing locally since 2006 (Table 13). the total available market (after taking into account imports) is bound to increase from $ 0. given the present trends.

9 178. In addition the units are also exempted from countervailing duties. The incentives are in the form of capital subsidies to the tune of 20 per cent of the total investment expenditure incurred by a fab or eco-systems units during the first 10 years. the Indian telecom industry is an excellent example of the growth of the services leading to the emergence of an attendant manufacturing industry as well. 2010. but also the electronic components and semiconductor devices that are required for the manufacture of these equipments. Thus.320 Share of FDI in Total FDI 4. in Rs billion) Telecom Equipment 2002-03 2003-04 2004-05 2005-06 144 140 160.96 49 . In response to this incentive package. in Rs million) Total FDI Inflow FDI Inflow in Telecom Industry 20031.170 5. The government has responded to these private initiatives by announcing on March 21.the "bus" that it had missed several years ago as far as electronic hardware is concerned.600 Cumulative FDI Cumulative FDI Telecom Industry 107. Table 11: Growth of services and Equipment Segments (2002-03 to 2005-06. 2007 a special financial incentive package to attract investments for setting up semiconductor fabrication and other micro and nanotechnology manufacturing industries in the country. provided that these units are located within a special economic zone (SEZ) and 25 per cent if they are located outside a established before March 31. It remains to be seen whether or not such an investment will fructify.21.000 SEZ.250 for Share FDI of in Telecom Total FDI 8.33 Telecom services 480 610 800 1.96.39 11. Further they will have to be Table 12: FDI Inflows into India’s Telecom Industry (1991-2007. Such an incentive-induced investment strategy is sometimes criticised as the government is essentially taxing the citizens of a country and passing on the benefits to a few private sector individuals. the growth of the telecom services industry seems to be leading to the emergence of not just the telecom equipment industry. the government is expecting $ 10 billion worth of investment. Overall.

46.230 23.410 1. There are a plethora of estimates widely diverging from each other.130 1.43.910 8. So the performance of BSNL depends to a large extent the way it manages fixed telephone services although with the growth of mobile services the relative importance of fixed telephone services is likely to come down over time.380 2. an Act has been passed on December 29.360 16. (accessed on August 25 2007) 9 ITI 50 . China at Bangalore NOTES BSNL's sales revenue emanate from two major segments: basic services and cellular services. 1885.pdf In working out the ideas contained in this subsection.6.co.43 12. its share was over 80 per cent of the total.71. 2006 as the Indian Telegraph (Amendment) Ordinance 2006 to amend the Indian Telegraph Act.110 23. Of the two. although the share of basic services has gone down even in 2005-06.300 5.980 7. see Chandrasekhar (2006).28 3033 13. For a detailed account of these various estimates.880 30. See the Annual Report 2005-06 of BSNL at http://www.27 8. 2006 as the Indian Telegraph (Amendment) Act 2006 to amend the Indian Telegraph Act. It may be pointed out that there is no consensus on the number of internet and indeed broadband subscribers in the country.550 3. I have relied on my own writings on the topic in Mani (2002) and also Desai (2006) and TRAI (2007c).14.13. Subsequently.88 7.in/company/results2oo5-o6/resultcomplete_o6.bsnl.04 200405 200506 200607 1.19 Table 13: India as a Manufacturing Hub for Mobile Telecom Equipment (2007) Name of manufacturer 1 Ericsson 2 Elcoteq 3 Nokia 4 LG Electronics 5 Flextronics 6 Foxconn 7 Motorola 8 Sony Ericsson Facility and location GSM Radio base station facility-Jaipur R&D centre in Chennai Contract manufacturer-Bangalore Mobile handsets-Chennai Mobile handsets-Pune Contract manufacturer-Chennai Contract manufacturer-Chennai Mobile handsets R&D centres Mobile handsets through Flextronics and Foxconn GSM facility with Alcatel at Nainital and Manakapuri UP CDMA with ZTE. 1885 in order to enable support for mobile services and broadband connectivity in rural and remote areas of the country. An Ordinance was promulgated on October 30.

(vii) The Indian Semiconductor Association has close to 100 members (2007). Chandrasekhar. including suitable incentives to the service providers utilising indigenous equipment". Delhi. International Telecommunications Union (2006): World Telecom Indicators 2006 on CD-ROM.$ 3 billion (12" fab) at Hyderabad. (ii) NANO-TECH Silicon India (NSTI) promoted by Jun Min .5 billion (8 fab) . New 51 . (2007): Annual Report 2006-07. Department of Telecommunications (2006): Annual Report 2005-06.gov. C P (2006): 'India Is Online but Most Indians Are Not'. Desai.dot. Mapping the Indian Internet Space. Sunil (2002): 'Private Financing Initiatives in India's Telecom Sector' in Sanford V Berg.35-micron map in the foreseeable future. Geneva.location to be confirmed. (vi) The state-owned semiconductor complex at Chandigarh (which has been taken over by the the department of space). Internet and Mobile Association of India (2006): Internet in India 2006. http://www. IMRB International and IAMAI. Government of India.0 billion (12 fab) .$ 3. (v) A number of chip companies from around the world have established research centres in India.in/ntp/ ntp1999.com/cur/sepo6/cur 26o9o6India_Online. Government of India. 2007) These proposals are: Semlndia promoted by Vinod Agarwal . New Delhi.$ 0. the largest chip design house by revenue and a major US mobile chip company. Ministry of Statistics and Programme Implementation. New Delhi. New Delhi.location to be confirmed.htm (accessed on August 27. Macroscan. "With a view to promoting indigenous telecom equipment manufacture for both domestic use and export. has also opened a software and chip development lab in India. Ashok (2006): India's Telecommunications Industry. is drawing up a road map for a new project.macroscan. Bangalore. International Telecommunications Union. the government would provide the necessary support and encouragement to the sector. (iii) Hindustan Semiconductor Manufacturing Co.$ 4. Qualcomm Inc. Sage Publications. Private Initiatives in Infrastructure. Analysis. Indian Semiconductor Association. The company uses it as a base for research and development as well as a place from which to promote its CDMA according to its web site. (HSMC) promoted by Deven Mehta . Mani.htm.The policy had stated. (iv) India Electronics Manufacturing Corp IEMC promoted by Rajendra Agarwal . M G Pollitt and Masatsugu Tsuji (eds). REFERENCES: Central Statistical Organisation (2007): National Accounts Statistics 2007. New Delhi. See the New Telecom Policy of 1999 at the DoT web site: http://www. Indian Semiconductor Association (2006): Summary of the Frost and Sullivan Report on Indian Semiconductor Industry and Its Eco System. It expects to rejuvenate SCL and put India on the 0.6 billion (8 fab) at Hyderabad. Diagnosis. Edward Elgar. History. September 25.

New Delhi. 1. Study Paper No 2/2005. New Delhi. But has become a powerful economic engine where the jobs are created and the energy for gaining acceleration for economic growth is provided. (2007): 'Revolution in India's Telecommunications Industry’. New Delhi. New Delhi. New Delhi. Approximately 70% of the GNP is from the services. pp 1339-74. thus in then leads to expansion of market for special products & services. service marketing plays a critical role in the creation and delivery of customer focused services. New Delhi. (2007a): Annual Report 2005-06. Consultation No: 19/2006'. VA. VolXLII. pp 265-322. pp 578-80. New Delhi. (2007): Annual Report 2006-07.Cheltenham. Services act as catalyst in the generation of income and employment. Reserve Bank of India Bulletin.AN OVER VIEW: Services dominate the development of any economy. (2005): Innovation Capability in India's Telecommunications Equipment Industry' in A Saith and M Vijayabaskar (eds). World Markets Research Centre (2006): WMC Country Reports: India (Telecoms). The history of developed economies show that services played major role in their economic development. Telecom Regulatory Authority of India. Mumbai. World Information Technology and Services Alliance (2006): Digital Planet 2006. (2007c): A Journey towards Excellence in Telecommunications'.5 SERVICES MARKETING . Arlington. UK. Telecom Regulatory Authority of India. Reserve Bank of India (2006): 'Invisibles in India's Balance of Payments. Telecom Regulatory Authority of India. pp 118-39. Study of Its Pattern 1998-2003. November. Telecom Regulatory Authority of India. US. Economic & Political Weekly. Telecom Regulatory Authority of India (TRAI) (2005): 'Study Paper on Indicators for Telecom Growth'. Telecom Regulatory Authority of India. Reserve Bank of India. Organizations which are engaged in any line of business including specialized services have to lay major emphasizes on 'Consultation Paper Paper on the Review of Internet Services'. (2007b): 'Draft Recommendations on Growth of Broadband'. ICT's and Indian Economic Development. Technology Information and Forecasting Assessment Council (TIFAC 2007): FDI in the R&D Sector. (Various issues): Press releases dealing with monthly additions to subscriber base. Services are no longer an industrial by product. TIFAC. 52 . No 7. Sage Publications. Northampton. (2006): New Delhi. Marketing orientation for services is a need of present day business. Telecom Regulatory Authority of India. The Global Information Economy.

supply chain management (SCM). post sales services and a set of interactive customer care services. not necessarily. In 1963 proposed by Regan suggested that services represent either intangibles yielding satisfactions directly or intangibles yielding satisfactions jointly when purchased either with commodities or other services. As the services are hidden and invisible. they can gain confidence and good will through economic. in the growing dominance of consumer movement. Its production may or may not be tied to a physical product". Customer services assume vital important in the marketing programs of all modern organization including service organizations. pre-sales services. In the present day context no organization can think of surviving without emphasizes on services. personal care services and a whole gamout of services which are not linked to the product but to the customer needs. all business decision in organizations are to be based on consumer orientation. Insurance product services. Concepts of Services: The American Marketing Association defines services as "activities. In 1990 Gronross proposed working definitions: According to him " A service is an activity or services of activities of more or less intangible that normally. According to this concept. benefits or satisfaction which are offered for sale or provided in connection with the sales of goods. money management services. As such marketing of services. which are provided as solution to customer problems". much more so. It is only by satisfying the customer needs that an organization can survive and prosper in this competitive world. Gummension defined "services as something which can be bought and sold which you can't drop on your foot".services marketing. prompt customer services only. Kotler and bloom in 1984 defined services as "Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Such as financial services. Customer Services: The modern marketing concept mainly emphasizes on customer services. play a strategic role in the survival and success of business entities. take place in the interactions between the customer and service employees and / or physical resources or goods and / or system of the service provider. efficient and Customer is the most important person under modern 53 . A major shift from product orientation to customer orientation compiled organization to set into customer relationship management (CRM). Service marketing requires that service organizations should devote much of their attention on offering efficient services to the customer. Lehtinen in 1983 defined services as "an activity or a service of activities which takes place in interaction with a contact person or a physical machine and which provides consumer satisfaction". Also a major shift in the life styles necessitated the business to offer specialized services.

The general trends in business organization in India consider customer relation as an additional attempt to keep customer in good humour.marketing. Therefore service orientation is an imperative of its policies and operations. explaining various policies and systems answering each and every query with balancing judgments and opinions giving due importance and respect to him. the practices and strategies vary to a significant extent. With the introduction of improved technologies and high degree of competitiveness. Telecommunication services are more a public and private utility service and a commercial organization. Though same marketing principles and concepts are to be followed for marketing of tangible goods and services. The main philosophy of any business organization is the treatment to be given to customer is rightly described by Mahatma Gandhi as " A customer is the most important visitor on our premises. The Indian Telecommunication is under going significant transformation with regard to its network and technological up gradation. the management expects are constantly engaged in finding ways and means for maximizing customer satisfaction. 1. Seminars research has been initiated to find how an organization can render. The customer service broadly includes giving expeditions assistance. Telecom services taken an edge over its competitive organizations in achieving higher growth rates. to take competitive advantage by providing better services to With proliferation of organization involved in the same line of business. Customer relationship is necessity. This is mainly due to the unique nature and characteristics of services as compared to the products which are tangible and verifiable. satisfying the needs of a customer at the right time and in the right manner. The very objective of the service marketing requires that the service organization should devote more attention offering efficient service to the customer. telecommunications services are largest with the widest network. more and more customers are becoming alert about the competitive quality of the product and services marketed by organizations. not a luxury for business success. Service Marketing: In modern times service marketing is gaining vital importance particularly in view of the role of tertiary sector in economic development of a country. Customer services means. He is the central figure and axis around which all business activities revolve. He is not dependent on us.6 NATURE AND CHARACTERISTICS OF SERVICES: 54 . we are not doing him a favour by serving him. As services are invisible they can gain confidence and goodwill through efficient and prompt customer service only. it has become more important for any organization customers. Among the services organizations. particularly in United States of America. He is doing us a favour by giving us an opportunity to do so". And possibly this thinking comes in the way of development of true and professional relationship with customers. In the west.

refrigerator or car.A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of any thing. because it is easy to staff the services in advance. book. While a car can be kept in inventory until it is sold the revenue on an un occupied theater seat is lost for ever. (v) Ownership: When one buy a product one becomes the owner be it a pencil. production and consumption occur simultaneously with services. a customer can see the evening film show in the local cinema theatre. felt. Its very act of being created requires the source. but only for the use or access to or for hire of items or facilities. Services have a number of unique characteristics that make them so different from products some of the most commonly accepted characteristics are2 (i) In tangibility: Services are intangible. to be present. and even when it is being provided. whether a person or machine. seeing a mental health counselor and attending any place for recreation . (iii) Variability: A service can be highly variable. service firms have difficult problems. but paying wages one can hire the services of a chauffeur who will drive his car. In fact. heard of smelled before they are brought. In case of service. Another step for the service providers is to develop adequate customer satisfaction monitoring system. In the care of a service.all of them involve receiving a service. 55 . purchase requires having a confidence in the service provider. The perishability of services is not a problem when demand is steady. one may pay for its use but one never own it. By buying a ticket. Service firms should make an effort to deliver high and consistent quality in their service offers. depending on who is providing it. unlike physical products they cannot be seen. the offer can range from a pure "good" on the one hand to a pure service on the other hand. Its production may or may not be tied to a physical product1. (iv) Perish ability: Services cannot be stored. Thus. tasted. a patient getting plastic surgery cannot seen the result before the purchase and prosper cannot experience the service before he bought the life insurance under these circumstances. (ii) Inseparability: A service is inseparable from the source that provides it. customer surveys and comparison shopping. Offer of Services: The service component can be minor or a major part of the total offer. When demand fluctuates heavily. traveling on public transportation. Purchasers of services are aware of their high variability and engage in normal risk reducing behaviour by talking to others and trying to learn who the best provider is. This is in contrast to a product which exists whether or not its source is present. Attending a play. calling the police for assistance. The major step is to develop a good personal selection and training program. Four categories of offer can be distinguished. The main tools for this are suggestion and complaint systems. shirt. In other words. the payment is not for purchase.

Service providers typically develop different marketing programs for personal and business markets. People based services also vary by whether they are provided by unskilled. public profit and public non- 56 . Thus beauty shop operators will invest in their shop's decor. Display rooms.i) A Pure tangible good: Here the offer consists primarily of a tangible good such as Soap. services vary as to whether they are people based or equipment . operator training.based. however the trip includes some tangibles such as food and drinks. private non-profit. the more dependent are its sales on the quality and availability of its accompanying customer services (Ex. but a car repair does not. produced four quite different types as private profit. Finally. Thus brain surgery involves the client's presence. repairs and maintenance. the service provider has to consider his or her needs.based services vary in turn depending on whether they are automated or monitored by unskilled or skilled operators. Equipment . For example an automobile manufacturer sells an automobile with a warrant. For example. Services differ as to whether they meet a personal need (Personal Services) or a Business need (Business Services). and engage in light conversation with the client. First. No services accompany the product. The service requires a capital intensive goods called an aero plane for its realization. and an air line magazine. But the primary item is a service. They arrive at their destinations with out anything tangible to show for their expenditure. The psychoanalyst gives a pure service. to generalize about services unless some further destinations are made. service providers differ in their objectives (Profit or non-profit) and ownership (private or public) there two characteristics. application aids. with any tangible elements consisting of an office and couch. ii) A tangible good with accompanying services: Here the offer consists of a tangible good accompanied by one or more services to enhance its consumer appeal. Levitt observes that "the more technically sophisticated the generic product (Ex: Cars and computers). warrants fulfillment)4 iii) A major service with accompanying minor goods and services: Here the offer consists or a major service along with some additional services and / or supporting goods. services and maintenance instructions. Physicians will price physical examination differently for private patients versus company employees on a retainer. installation advice. and so on. it is difficult. skilled or professional workers. a ticket stub. tooth paste or salt. Some of the services required the client's presence. delivery. when crossed. air line passengers are buying transportation services. play background music. As a consequence of this varying goods to service mix. If the client must be present. iv) A pure service: Here the offer consists primarily of a service examples include psychotherapy and messages.

law. There are several reasons for the negligence of marketing. and service quality goes down. George and Barksdale surveyed four hundred service and manufacturing firms and arrived at following conclusions. difficulty of differentiating their services from those of competitors. transportation. we will examine each separately. (i) Managing Differentiation: of several major service Services marketers frequently complain about the communication. insurance. 1. energy. Many service organizations are small and do not use management techniques such as marketing which they think would be expensive. productivity stagnates. f) Less likely to use marketing research firms and marketing consultants and g) Less likely to spend as much on marketing when expressed as a percentage of gross sales. lodging. service firms appears to be a) Less likely to have marketing mix activities carried marketing department. b) Less likely to perform analysis in the offering area. Although there interact and to some extent compete. The deregulation industries banking precipitated intense price competition. 1. c) More likely to handle their advertising internally rather than go to outside agencies. an increasing number of services organizations are taking an interest in marketing.profit organizations. telecommunications and accounting.8 TASK OF SERVICE ORGANIZATION: Service companies face three tasks. unevenly. they care less about the provider than the price. Today. Many professional and non-profit organizations are antagonistic to the idea of marketing believing that it is unprofessional to apply any marketing planning to their services and even prohibiting it in their codes of ethics. the marketing concept have come out in the 57 . as competition intensifier.7 APPLICATION OF MARKETING FOR MANUFACTURING AND SERVICE FIRMS: Service based organizations typically lag behind manufacturing firms in their development and use of marketing. d) Less lively to have an overall sales plan. In comparison to manufacturing firms. To the extent that customers view a service as fairly homogeneous. those of increasing their (i) Competitive differentiation (ii) Service Quality and (iii) productivity. Some service organizations had so much demand for years that they had no need for marketing until recently. The In service industries such as stock brokerages. costs rise. e) Less likely to develop sales training programs.

the service providers need to know customer expectations in order to design effective services. The only problem is that most service innovations are easily copied. and service firm advertising. The key is to meet or exceed the target customer's service quality expectations. personnel and Communication strategies. Service companies can also work on differentiating their image. specially through symbols and branding. Berry and Parasuraman suggested five general dimensions that influence customer's assessment of service quality. The appearance of physical facilities equipment. word of mouth. After receiving the service. knowledgeable and accurate. The service company can add innovative features to distinguish its offer. a bank customer / or a telecom customer may expect on a trip to a bank or to a customer service center that they will not wait in line more than five minutes. They are Reliability Tangibles : : The ability to perform the promised service dependably and accurately. the service provider needs to identify target customers. wants in the way of service quality unfortunately. Still. Thus. (ii) Managing Service Quality: One of the major ways to differentiate a service firm is to deliver consistently higher quality service than competitors. Their expectations are formed by their past experiences. the service company that regularly researches and develops service innovations will gain a succession of temporary advantages over its competitors and through earning an innovative reputation.solution to price competition is to develop a differentiated offer and image. 58 . they compare the perceived services with the expected service. If the perceived service falls below the expected service. and to this can be added secondary service features. when they want it. Responsiveness: Assurance Empathy : : The willingness to help customer and to provide prompt service. Therefore. that the feller or the clerk will be courteous. customers will be satisfied if they get what they want. Few of them are pre-emptive in the long run. it is necessary to research the specific customer criteria for any specific service. The customers choose providers on this basis. customers lose interest in the provider. service quality is harder to get agreement on the quality of a haircut than on the quality of a hair dryer yet. Still. they are apt to use the provider again. may retain customers who want to go with the best. The provision for caring individual attention to customers. The knowledge and courtesy of employees and their ability to Convey trust and confidence. customers will make judgments about service quality. and how they want it. If the perceived service meets or exceeds their expectations. where they want it. What the customer expects is called the primary service package. Clearly.

The fifth is to design a more effective service. (iii) Managing Productivity: Services firms are under great pressure to increase productivity.unit motion picture theatres . Business firms that sort their own mail before delivering it to the post office pay lower postal charges. What is important is that the service provider clearly defines and communicates the service level that will be provided. so that the employees know that they must deliver and the attracted customers know what they will get. and certain antibiotics reduced the need for tuberculosis sanitariums. Companies must avoid pushing productivity so hard that it reduces perceived quality. multiple . must creatively marshal all his marketing activities to advance. For example. Working harder is not a likely solution. other productivity steps lead to too much standardization and not the customer of customized services. The crux of any marketing strategy is to bring about the desired operations in the light of prevailing circumstances. Levitt recommended that companies adopt a "manufacturing attitude" towards producing services as represented by Me Donald's assembly . television substituted for out-of-home entertainment. The sixth is to give customers incentives to substitute company labour with their own labour for example. increase customer satisfaction. The fourth is to reduce or make absolute the need for a service by inventing a product solution. the washand-wear shirt reduced the need for commercial laundry.line approach to fast food retailing culminating in the "Technological Hamburger 7" commercial dishwashing.off s between customer satisfaction and company profitability.all represent technological expansion of services.9 MARKETING MIX IN THE CASE OF SERVICE MARKETING: Marketing is an art. service providers must do their best to identify the expectations of their target customers with respect to each specific services. but working more skillfully can occur through better selection and training programs. Since the service business is highly labour intensive.and that the computer will not break down. The second is to increase the quantity of service by surrendering some quality. There are six approaches to improve service productivity. The service provider faces trade . 1. Hiring paralegal workers reduces the need for expensive legal professionals. as a head. by standardizing quality. both the short and the long run interests of his firm8. This does not mean that the service provider will be able to meet the customer's wishes. costs have been rising rapidly. The strategy basically involves the utilization of the available 59 . Some productivity steps. How to-quit-smoking clinics and jogging may reduce the need for expensive medical services later on. In essence. and the marketing manager. jumbo jets. a marketer is a "mixer of ingredients' who blends various marketing activities in a manner that further the interests of the firm. The third is to "Industrialize the service" by adding equipment and standardizing production. The first is to have service provider work harder or more skillfully for the same pay.

publicity. quality management. Advertising. Since the marketing mix tools originated from the study of the manufacturers i. Process: Activity sequence. promotion. a seven P's frame work for services has been proposed9. service provider. training culture. The most regular 4 Ps' frame work is suggested by McCarthy with the marketing mix variables . Given the service characteristics and activities in service firms. The service marketing MD is as follows Service core. However. place. the conventional marketing mix needs to be modified and broadened. Therefore. The additional prescribed Ps in this framework refer to activities that are essential to meet the challenges posed by intangibility. levels. 60 . skills. the organization engaged in production and marketing of goods — it is more oriented to deal with goods marketing situations. Price discounts. The phrase "Marketing mix" was first used by Neil H. customer interaction and customer involvement in service consumption and production.. and so are the challenges in their marketing. Customer . physical facilities. and attitudes. and their planned manipulation to get optimum results in a limiting environment.e.tools. equipment machines. additional services branding. customer participation. Location channels of distribution. coverage.provider.product. Borden. Physical Evidence: Ambience. buildings. appearance. relationship. service characteristics are significantly different from goods. promotion and price. delivery process. terms of payment.

Ltd. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the B&T business offers' broadband & telephone services in 94 cities. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU's) .Bharti Airtel Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. under a MolJ with Wal-Mart for the cash & carry business. With Landlinc services in 94 cities & help to stay in touch with friends & family and the world. The group offers high speed broadband internet with a best in class network. India's largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. based on the number of customers.016 route kilometers of optic fibre on its national long distance network. national and international long distance and data connectivity services to corporate. the Company is a member of the South East Asia-Middle East-Western Europe -4 (SEA-MEWE-4) consortium along with 1 5 other global telecom operators. Bharti has recently forayed into retail business as Bharti Retail Pvt. The Bharti Group has a diverse business portfolio and has created global brands in the telecommunication sector. 61 . Bharti Airtel offers GSM mobile services in a l l the 23-telecom circles of India and is the largest mobile service provider in the country. world leader in financial protection and wealth management. All these services are provided under the Airtel brand. it has a submarine cable landing station at. broadband & telephone. The group focuses on delivering telecommunications services as an integrated offering including mobile. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. For international connectivity to east. The Company compliments its mobile and broadband & telephone services with national and international long distance services. It has successfully launched an international' venture with EL Rothschild Group to export fresh agri products exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA. small and medium scale enterprises. broadband & telephone services (B&T) & enterprise services. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. Airtel comes to you from Bharti Airtel Limited.mobile services. For international connectivity to the west. It has over 35.

56 times.340. All these services are provided under the Airtel brand. Vlumbai (BSE) and The National Slock Exchange of I n d i a Eimitcd (NSE). The investment made by SingTel is one of the largest investments made in the world outside Singapore. consisting of 53. Bharli Airtel established certain important landmarks in the history of the Indian capital market. equipment suppliers include Siemens. Partners The company has a strategic alliance with SingTel. Company shares are listed on The Stock Exchange. Nortel. (BSE).700 customers as on October 31. Tcletcch & Mphasis. while the B&T business group provides broadband & telephone services in 94 cities. 2007. In the case of the broadband and telephone services and enterprise services (carriers). Together with being the first 100% book building process that this 62 .122 broadband & telephone customers. The shares were over subscribed 2. Shares The equity shares of Bharti Airtel are currently listed on National Stock Exchange of India Limited (NSE) and The Stock Exchange. llinduja TMT. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU's) . among others. Bharti Airtel offered 185. Corning.15 million through this process.014. The Company also has an information technology alliance with IBM for its group-wide information technology requirements and with Nortel for call center technology requirements. broadband & telephone services (B&T) & enterprise services. The call center ■operations for the mobile services have been outsourced to TBM Daksh.336. The enterprise services group has two sub-units .carriers (long distance services) and services lo corporates. With t h i s IPO. Mumbai. The company's mobile network equipment partners include Ericsson and Nokia.mobile services. in the company.106. The mobile services group provides GSM mobile services across India in 23 telecom circles.950.758 GSM mobile and 2.700 equity shares in the initial public offering (IPO) and raised Rs 8.Profile Bharti Airtel is one of India's leading private sector providers of telecommunications services based on an aggregate of 50.

Moreover the process of allotment and issue of shares was also completed within one day of the last day of pay-in.country has seen. of the close of the issue. The book running lead managers for the IPO were JM Morgan Stanley and DSP Merrill Lvnch and the registrars to the issue was Karvv Consultants Limited. 63 . the listing was completed within a record time often working days.

That means that almost every fourth mobile user in the country has a BSNL connection. VoIP services. multi-protocol convergent IP infrastructure that provides convergent services like voice. • Sanchar Nigam Ltd. VSAT. has more than 17. 85 per cent share of the subscriber base and 92 percent share in revenue terms. Internet. BSNL serves its customers with its wide bouquet of telecom services. BSNL is the only service provider. operates across India except Delhi & Mumbai. Dial-up. data and video through the same Backbone 64 .5 Lakhs villages. is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in BSNL is numero uno operator of India in all services in its license area. BSNL cellular service. Within a span of five years it has become one of the largest public sector unit in India.8 million cellular customers.5 million WLL subscribers and 2. Carrier service. BSNL is miles ahead of its rivals.1 Million GSM Capacity. expanding the network. Broadband.e. The company offers vide ranging & most transparent tariff schemes designed to suite every customer. 4 million WLL capacity. garnering 24 percent of a l l mobile users as its subscribers. Leased Line. 63730 Rkrn of Microwave Network connecting 602 Districts. 18000 BTS. CellOne.BSNL (Bharat Sanchar Nigam Ltd) : Bharat India: Wireline. making focused efforts and planned initiatives to bridge the Rural-Urban Digital Divide ICT sector. 20. BSNL has set up a world class multi-gigabit. with 35. 480196 Rkm of OFC Cable.1 million Basic Phone subscribers i. GSM Mobile. BSNL has installed Quality Telecom Network in the country and now focusing on improving it. more than 37382 fixed exchanges. In basic services. Whether it is inaccessible areas of Siachen glacier and North-eastern region of the country. DIAS. In fact there is no telecom operator in the country to beat its reach with its wide network giving services in every nook & corner of country and . BSNL has more than 2. formed in October. introducing new telecom services with ICT applications in villages and wining customer's confidence. BSNL has been adjudged as the NUMBER ONE ISP in the country. it has about 47. 7330 cities/towns and 5. MPLS-VPN. CDMA mobile. Today. 2000. Account Less internct(CLl). 287 Satellite Stations.3 million line basic telephone capacity. IN Services etc.5 million Internet Customers who access Internet through various modes viz.

BSNL plans to expand its customer base from present 47 millions lines to 125 million lines by December 2007 and infrastructure investment plan to the tune of Rs. The No. OBJECTIVES To be a Lead Telecom Services Provider. MISSION I.390 million (US S 2. 65 . The turnover. Scaling new heights of success. II. 1 GSM operator in its area of operation. Installation.99. To provide world class State-of-art technology telecom services to its customers on demand at competitive prices.820 million (US $ 8 billion) with net profit to the tune of Rs. network integration and Maintenance of Switching & Transmission Networks and also has a world class ISO 9000 ■ certified Telecom Training Institute. The infrastructure asset on telephone alone is worth about Rs. To provide point of interconnection to other service provider as per their requirement promptly. 733 cores (US$ 16. To Provide world class telecom infrastructure in its area of operation and to contribute to the growth of the country's economy.37 billion).351. To provide quality and reliable fixed telecom service to our customer and there by increase customer's confidence.000 million (US $ 14. comprehensive range of telecom services and the Desire to excel has made BSNI.6 million DataOne broadband customers. nationwide coverage. The company has vast experience in Planning. 1 Telecom Company of India. To provide mobile telephone service of high quality and become no.and Broadband Access Network.630.26 billion) for last financial year. reach. At present there are 0.67 million) in the next three years. VISION To become the largest telecom Service Provider in Asia. the present turnover of BSNL is more than Rs.

Implementation of Triple play as a regular commercial proposition. through innovative technology and strategic pricing. Contribute towards: i. to provide better communication to millions across India. along with postpaid and prepaid services brings cellular telephony to the masses. Customers have reposed tremendous faith in BSNL and it has enrolled over 30 Lakh Cellular customers within ten months of launch of Cellular service. BSNL Service_Plus. Providing telephone connection in villages as per government proposition. Their entry into this sector has brought GSM cellular service at an affordable cost to the common man. CeliOne provides a number of global connectivity at doorstep.  Voice Mail Service  Value Added Services S|M_Based_sffirvi ££. This ambitious service uses state-of-the-art GSM technology to attain global excellence and leadership in business. Broadband customers base of 20 million in India by 2010 as per 2004. iv. iii. All serving a single objective. an unprecedented mark in Indian Cellular Market. These services helps BSNL serve you better & enhance the ease & quality of communication thus bringing  Short Message Service (SMS) 66 . Broadband Policy Cellular Service Overview India's fastest growing cellular service .SyviSjtassd Services Value Added Services.To facilitate R & D activity in the country. National Plan Target of 500 million subscriber base for the country by December 2010. ii.

text to voice services on your mobile phone. that w ill provide convergent services through the same backbone and broadband access network.  Wireless Application Protocol (WAP): Internet using this service. multi-gigabit. Telephone BSNL is the largest telecom operator in Basic Telephony Services for over India and is known to everybody for Surf WAP enabled websites on 100 years. countrywide telephone service is being provided through 32. BSNL is in the process of commissioning of a world class. 326 Digital Trunk Automatic Exchanges (TAX). multi-protocol. e-mail. So stay in touch with your nears and dears by means you like the most. on a countrywide basis spanning 198 cities. with a host of network Phone Plus value additions to our valued Customers.4 lakh km of Optical Fiber Cable. 67 expands throughout the vast expanses of the country reaching to the remotest part .000 electronic exchanges. Presently the Plain old. Digitalized Public Switched Telephone Network (PSTN) all interlinked by over 2. Group Messaging  National & International tariffs  Call forwarding  Corporate Virtual Private Network  Call conferencing  Friend and Family Talk  Call waiting and Call holding facility  Minified Messaging Services: This provides Voice mail. FAX. BSNL's telephony of the country. The Broadband service will be available on DSL technology (on the same copper cable that is used for connecting telephone). convergent IP infrastructure through National Internet Backbone-II (NIB-II).

Distance learning. Video-on-demand and Interactive gaming. Content based services. For example a customer with 256kbps can change to Mbps during the video Conferencing session.In terms of infrastructure for broadband services NIB-II would put India at par with more advanced nations. through the Broadband Remote Access Server (BRAS). Layer 1 of the network will consist of a high speed Backbone comprising of 24 powerful Core Routers connected with high speed 2. etc. ♦ Bandwidth on Demand : This will facilitate customer to change band width as per his / her requirement.5 Gbps (STM-16) links. telemedicine etc ♦ Dial VPN Service : This service allows remote users to access their 68 . IP Telephony. messaging: plain and feature rich. which is designed to provide reliable routes to cover all possible destinations within and outside the country. The routers are located on the national DWDM network interfacing at STM-16 optical level to provide for high transmission speeds. ** Services available through Broadband ♦ High speed Internet Access : This is the-always-on Internet access service with speed ranging from 256 kbps to 8 Mbps. Key Objectives • • • • • • • To provide high speed Internet connectivity (upto 8 Mbps) To provide Virtual Private Network (VPN) service to the broadband customers To provide dial VPN service to MPLS VPN customers. The subscribe will be able to access the above services through Subscriber Service Selection System (SSSS) portal. ♦ Multicasting : This is to provide video multicast services for application in distance education. The services that would be supported include always-on broadband access to the Internet for residential and business customers. To provide multicast video services. video-on-demand. Audio and Video conferencing. Multi-site MPLS VPNs with Quality of Service (QoS) guarantees.-Video multicasting. It shall provide the customer with the option to select the services through web server To provide both pre-paid and post paid broadband services Technical Capability of the Backbone The Broadband Service will be given through the state of the art Multi Protocol Label Switching (MPLS) based IP Infrastructure. To provide a means to bill for the aforesaid services by either time-based or Volume-based billing.

Like Video on Demand. BSNL has also started D1AS and Account free internet access (CLI based) facility on few select cities recently. CDMA is popular with more than 100 million subscribers worldwide. Internet BSNL is India's no. using the same access code (172233) and user ID from any where in the Country. ♦ Video and Audio Conferencing: ♦ Content based Services: Live and line shifted TV The Broadband Service has been launched in Bangalore. providing Internet service throughout the entire country (except in New Delhi and Mumbai) under the brand name of "Sancharnet". Interactive Gaming. Sancharnet provides free all India roaming and enables.private network securely over the NIB-II infrastructure. Chennai. Hyderabad and Kolkata from 14th January 2005. for the full or part connection between the subscriber and the exchange this comes with superior voice quality and high speed data capabilities. © BSNL has launched "SANCHARNET CARD" recently. In order to make Internet available through out the length and breadth of the Country Internet Dhabas are being commissioned at all the Block Headquarters. Soon. The Sancharnet Card " prepaid Internet Access Card with following features for customers: Is a Self-register for internet access with your choice of userid Renew your existing Sancharnet Account Wide Range of Internet Access Packages 69 . 1 Internet service provider with more than 17 lakh subscribers. it will be extended to more than 200 cities. Wireless in Local Loop (WLL) Mobile Telephone Connections: BSNL WLL-M is a communication system that connects customers to the BSNL Landline network using radio frequency signals instead of conventional copper wires. it's users to access their accounts. and the number keeps on increasing exponentially.

000 employees belonging to 25 different nationalities. a US$ 24 billion corporation with a market cap of US$ 31. Madhya Pradesh. The combined holding of the Aditya Birla Group companies in IDEA stands at around 57 percent. Haryana. Chattisgarh. IDEA Cellular has licenses to operate in all 22 Service Areas. Our Service Areas The Indian telecommunications market for mobile services is divided into 22 "Service Areas" classified into "Metropolitan". These classifications are based principally on a Service Area’s revenue generating potential. IDEA Cellular is part of the Aditya Birla Group. Anchored by an extraordinary force of over 100. Idea operational 11 Service Areas are broken up into Established and New Service Areas. Category "B and Category "C "service areas by the Government of India. Himachal Pradesh. Presently. the company is poised for rapid growth across the whole country. . for the first time in India in an increasingly segmented market. Category "A". Customer Service and Innovation are the drivers of this Cellular Brand. Maharashtra. Idea has received international recognition for its path-breaking innovations when it won the GSM Association Award for "Best Billing and Customer Care Solution" for 2 consecutive years. IDEA Cellular has the distinction of offering the most customer friendly and competitive Pre Paid offerings. UP-West. A brand known for their many firsts. Uttaranchal. having listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in March 2007. The Group has been adjudged ‘The Best Employer in India and among the Top 20 in Asia' by the HewittEconomic Times and Wall Street Journal Study 2007. With a customer base of over 26 million. operations exist in 11 Service Areas covering Delhi. Idea is only operator to launch GPRS and EDGE in the country. over 50% of its revenues flow from its overseas operations. Gujarat. IDEA Cellular's footprint currently covers approximately 60% of India's telecom population. As India's leading GSM Mobile Services operator. A frontrunner in introducing revolutionary tariff plans. Andhra Pradesh. Goa.IDEA: IDEA Cellular is a publicly listed company. With ambitious future plans.5 billion and in the league of Fortune 500. UP-East. Rajasthan and Kerala.

Uttar Pradesh (West) and Kerala. Stimulate. 2006.. .. Madhya Pradesh and Uttar Pradesh (West). amounting to approximately Rs.. Andhra Pradesh. Haryana.. Following significant investment in the roll-out of network in the New Service Areas. Escotel Mobile Communications Private Limited ("Escotel"). Brand Information The brand Idea. 4. the license for Delhi Service Area was acquired during the fourth mobile license auction. Liberate .. Gujarat and Maharashtra. Brand values are the company values and vise versa.Brand Values Innovate. In January 2001 the mobile operations in Andhra Pradesh Service Area were integrated with IDEA through a merger with Tata Indicom Cellular Limited. Rajasthan and Himachal Pradesh. Licenses for the Maharashtra and Gujarat Service Areas were awarded in December 1995... New Service Areas The New Service Areas are Uttar Pradesh (East).. All these Service Areas were re-branded and integrated with IDEA in June 2004. Kerala. Brand Vision: It goes without saying that the brand vision of idea mirrors the company’s vision. a full commercial launch of mobile services was achieved in the New Service Areas between September and November 2006 in a manner which also met the network roll-out requirements of the licenses in 2007. continuously innovating to help liberate our customers from the shackles of time & space. with network rollout and commercial launch achieved in 1997. To be the most customer-focused mobile service brand. In June 2001. IDEA .Established Service Areas The established service areas are Delhi. In October 2001. The brand mission statement is. It is almost impossible to disintegrate brand Idea from the corporate Idea. was acquired with its original licenses in the Service Areas of Haryana. the mobile operations in Madhya Pradesh Service Area were fully integrated with IDEA through an acquisition of RPG Cellcom Limited. with network rollout and commercial launch in November 2002. Licenses for these New Service Areas were acquired through the acquisition of Escotel (Escorts Telecommunications Limited). In January 2004.678 million upto September 30.

where we seek strategic Idea brand coverage in various formats. This is what we strive for. which have made us a formidable player in the telecom industry. a marketing consultant engaged by us to evaluate our brand using face-to-face interviews on a random sample of mobile users a well as those intending to purchase mobiles within the next three months. The Technology Advantage Idea Tomorrow's technology to enrich today. This process is followed up with extensive briefing of call . Brand Initiatives Our aim. we believe. we have commissioned a Brand Track Index Study to evaluate the health of our brand. nothing else. from major celebrity fashion shows to small local events timed to coincide with new product offerings. We seek engagement with subscribers on a variety of levels. customized for specific regional preferences to communicate effectively at the local level. The Employee Focus Idea Nurture the roots that nurture our ideas. Innovations that stimulate the customer and liberate him from the shackles of time and space are the core of our brand. The Customer Focus Idea Make a single interaction a lasting relationship. more. With the objective of strengthening our brand. through media buying and planning. We also use other mass communication media such as the press and radio to communicate price plans and other tactical and customer information. IDEA . All our key initiatives are subjected to a rigorous testing and launch process to ensure accountability for all advertising spend and improve the chances of success of a new product. Billboards and hoardings are used as a secondary medium. “Idea Star Singer” and “Idea Andhra Idol”. The Brand Track Index Study is a monthly study conducted by TNS.Brand Mission The India footprint Idea Any where connectivity-bringing India closer. According to the study our brand is perceived as “reliable/trustworthy” and one that “offers cheaper and good promotional offers”. the growing strength of our brand. The main communication medium for the Idea brand is television. nothing less. Nothing.It is these brand values. We have improved our rating in the Brand Track Index calculated by the study in the past year reflecting. Since August 2003. we work with strategic communication partners on campaigns like sponsorship of the Idea International Indian Film Academy awards and the television programs “Idea Rocks India”. is to create year round impact.

000 route kilometres of a pan-India fibre optic backbone. the auspicious occasion of Dhirubhai's 70th birthday." It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started laying 60. though sadly after h i s unexpected demise on 6 July 2002. had stated as early as 1999: "Make the tools of information and communication available to people at an affordable cost. This backbone was commissioned on 28 December 2002. They w i l l overcome the handicaps of illiteracy and lack of mobility. who single-handedly built India's largest private sector company virtually from scratch. Dhirubhai.center agents and sales personnel and real-time tracking of the impact of the communication and feedback from subscribers. . Reliance A dream come true The Late Dhirubhai Ambani dream of a digital India an India where the common man would have access to affordable means of information and communication.

data and video) digital network. As with all great pioneers. including infrastructure and services for enterprises as well as individuals. Today. When Dhirubhai embarked on his first business venture.Reliance Communications has a reliable. Sh. India's largest private sector enterprise. Dhirubhai H Ambani. the proud patriot. It is capable of delivering a ranee of services spanning the entire infocomm (information and communication) value chain. Fewer still have left behind a legacy that is more enduring and timeless. Few men in history have made as dramatic a contribution to their country's economic • fortunes as did the founder of Reliance. integrated (both wireless and wireline) and convergent (voice. high-capacity. when Reliance Textile Industries Limited first went public. the Indian stock market was a place patronised by a small club of elite investors which dabbled in a handful of stocks. the first ever Indian private company to do so. In 1977. Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO.000 crorc colossus—an achievement which earned Reliance a place on the global Fortune 500 list. Dhirubhai is widely regarded as the father of I n d i a ' s capital markets. In one lifetime. Over the next three and a half decades. applications. Undaunted. he built. the unmatched strategist. and consulting. he had a seed capital of barely US$ 300 (around Rs 14. But the role Dhirubhai cherished most was perhaps that of India's greatest wealth creator. there is more than one unique way of describing the true Genius of Dhirubhai: The corporate visionary. the architect of India's capital markets. Reliance Communications is revolutionizing the way India communicates and networks.000). promising them. substantial return on their investments. It was to be the start of one of great stories . the champion of shareholder interest. The leader of men. truly bringing about a new way of life. he converted this fledgling enterprise into a Rs 60. in exchange for their trust. starting from the proverbial scratch.

Dhirubhai always kept the interests of the ordinary shareholder uppermost in mind. Reliance Mobile (formerly Reliance India Mobile). and creating one of the world's largest shareholder families. It marked the auspicious beginning of Dhirubhai's dream of ushering in a digital revolution in India. was among the i n i t i a l iniiiatives ofRelianee Communications. We will offer unparalleled value to create customer delight and enhance business productivity. VISION "We will leverage our strengths to execute complex global-scale projects to facilitate leading-edge information and communication services affordable to all individual consumers and businesses in India.of mutual respect and reciprocal gain in the Indian markets. Today. and went on to become India's largest private sector enterprise." BUSINESS India "s leading integrated telecom company Reliance Communications is the flagship company of the Anil Dhirubhai Ambani Group (A DAG) of companies. We will also generate value for our capabilities beyond Indian borders and enable millions of India's knowledge workers to deliver their services globally. we can proudly c l a i m that we were instrumental in harnessing the true power . Through out t h i s amazing journey. it is India's leading integrated telecommunication company with over 38 m i l l i o n customers. in the process making millionaires out of many of the initial investors in the Reliance stock. coinciding with the joyous occasion of the late Dhirubhai Ambani's 70th birthday. national and international long distance services and data services along with an exhaustive range of value-added services and applications. Under Dhirubhai's extraordinary vision and leadership. launched on 28 December 2002. Our constant endeavour is to achieve customer delight by enhancing the productivity of the enterprises and individuals we serve. It includes broadband. Listed on the National Stock Exchange and the Bombay Stock Exchange. Reliance scripted one of the greatest growth stories in corporate history anywhere in the world. Our business encompasses a complete range of telecom services covering mobile and fixed line telephony.

Shri Anil D Ambani. convergent (voice. an offshoot of the Reliance Group founded by Shri Dhirubhai H Ambani (1932-2002).500 worth of free talk-time as part of its prepaid promotional offer for an undecided span. Reliance Capital. namely. Reliance Communications.500-Rs 4. high-capacity. The group has business interests that range from telecommunications (Reliance Communications Limited) to financial services (Reliance Energy Ltd). integrated (wireless and wireline). Reliance Communications is India's largest private sector information and communications company. Infocomm is l i k e l y to offer a minimum Rs 1. Ambani of the regarded Reliance as one of the foremost corporate leaders of contemporary India. The free prepaid talk-time options ( i n the Rs 1. It has established a pan-India. To give the GSM operators a run for their money. Reliance ADA Group's flagship company. We endeavour to further extend our efforts beyond the traditional value chain by developing and deploying complete telecom solutions for the entire spectrum of society. Reliance Energy and Reliance Natural Resources limited. data and video) digital network. by bestowing it in the hands of the common man at affordable rates. 48. looking forward Reliance Anil Dhirubhai Ambani Group.of information and communication. Looking back.000 range) will be bundled . Anil D. with over 38 m i l l i o n subscribers. Free talk time with Reliance prepaid Reliance Infocomm is slated to nationally launch its prepaid mobile service between January 15 and 18. Other major group companies Reliance Capital and Reliance Energy are • Capital Ltd) and the generation and distribution of power (Reliance widely acknowledged as the market leaders in their respective areas of operation. ranks among India's top three private sector business houses in terms of net worth. to offer services spanning the entire infocomm value chain. is the chairman of all listed companies ADA Group.

" sources close to the developments said. the R I M prepaid connections will be available nationally at the 250odd Reliance Web Worlds. They will be unable to make ISD calls with such free talk-time. Nokia 2280 and Samsung 1 9 1 . Rs 500 and Rs 1000.500 of talk-time. Information available suggests the RIM prepaid recharge vouchers w i l l come in three denominations . I n i t i a l l y . Takers for Motorola 1 3 1 will pay Rs 4. Under Infocomm's right-to-use handset offer. top sources at Reliance Infocomm said: "BSNL has just opened up the Access Level 93 to facilitate the launch of Reliance Infocomm prepaid service nationally. Which means. LG.500 base quota. national and international SMS will cost a flat 50 paise per message. LG 2030. Reliance Infocomm w i l l offer a l l R I M prepaid customers a selection of Motorola. it is learnt.Rs 250. will be allowed to use their free talk-time to make local and STD calls besides sending SMS. prepaid customers will be i n i t i a l l y given four handset options. TATA INDICOM .with multiple CDMA handset offers. a l l Infocomm prepaid customers will have to pay upfront the full price of the handset of their choice to activate their connections.200odd Reliance Web World Express outlets to be shortly rolled out nationally. We expect to formalise the prepaid launch date by January 15. When contacted. l i c l d t r i a l s are under way on a war-footing. Motorola 1 3 1 . R I M prepaid users opting for these high-end models will enjoy talk-time in excess of the Rs 1. "Local and inter-circle STD calls will be priced at Rs 2 per minute while local. Reliance prepaid customers.500 range.500 for the phone to earn Rs 1. The high-end LG 2030." Details of Infocomm’s upcoming prepaid package remain shrouded in secrecy. they will also be sold at the 1. Nokia 2280 and Samsung 191 models will be priced higher in the Rs 6. Indications are 'Motorola 1 3 1 ' will be the entry-level CDMA mobile phone in Infocomm's prepaid menu. Nokia and Samsung CDMA handsets on "a right to use basis". To start with. but here's a hint of the shape of things to come.300-6. Subsequently.

technologically advanced network. The company. Rajasthan. Lucent and ECI Telecom for the deployment of a reliable. Ericsson. With a committed investment of INR 36. Maharashtra. Chennai. . roaming. Delhi. Tata Indicom Tele services has established a robust and reliable 3G ready telecom infrastructure that ensures quality in its services. Himachal Pradesh.924 Crore. group calling. Tata Indicom Tele services' bouquet of telephony services includes Mobile services. that has over 96 companies. calling card services and enterprise services. data cards. Kolkata.5 billion) in Telecom (FY 2006). USB Modem. Mumbai. Karnataka.000 Crore (US$ 7. Tamil Nadu. over 250. 3-way conferencing.Tata Indicom Tele services is part of the INR 76. which heralded convergence technologies in the Indian telecom sector.929 Crore (US$17.000 Crore (US$ 7. Other services include value added services l i k e voice portal. It has partnered with Motorola. Public Booth Telephony and Wire line services. Orissa. post-paid Internet services.000 employees and more than 2. is today the market leader in the fixed wireless telephony market with a total customer base of over 3. The Group has a formidable presence across the telecom value chain. 96723 Crore (US$ 22 billion) Tata Indicom Group.8 million shareholders.8 million. Punjab.000 employees and more than 2. Bihar. over 220. A Tata Indicom Tele service spearheads the Group's presence in the telecom sector. With a committed investment of INR 36. Uttar Pradesh (VV). Having pioneered the CDMA 3Glx technology platform in India. With the total Investment of Rs 19.8 b i l l i o n ) Tata Indicom Group. that has over 90 companies.8 m i l l i o n shareholders. Haryana. Incorporated in 1996. Wireless Desktop Phones. Kerala. a Tata Indicom Tele service was the first to launch CDMA mobile services in India with the Andhra Pradesh circle. Wi-Fi Internet. Madhya Pradesh and West Bengal. Starting with ihe major acquisition of Hughes Telecom (India) Limited [now renamed Tata Indicom Tele services (Maharashtra) Limited] in December 2002 the company swung into an expansion mode. TATA INDICOM TELESERVICES Tata Indicom Tele services is part of the INR Rs. the Group has a formidable presence across the telecom value chain.5 b i l l i o n ) in Telecom (FY 2006). Uttar Pradesh (E). Gujarat. Tata Indicom Tele services has created a Pan India presence spread across 20 circles that includes Andhra Pradesh.

Some of the other products launched by the company include prepaid wireless desktop phones. Today. A Tata Indicom Tele service has a strong workforce of 6000. tata Tele services today has India's largest branded telecom retail chain and is the first service provider in the country to offer an online channel www. licensed to provide services in Maharashtra (including Mumbai) and Goa. etc.000 indirect jobs through outsourcing of its manpower needs. by unveiling their offering Tata Indicom 'Non Stop Mobile' which allows customers to receive free incoming calls. public telephone booths & wireline services. Wi-Fi. The company has deployed the latest 3G IX CDMA technology in the state to offer .000 jobs. TTML's bouquet of telephony services include mobile. which will include 10. Tata Indicom redefined the existing prepaid mobile market in India. Tata Indicom Teleservices offers world-class technology and user-friendly services in 20 circles. Tata Indicom Tele services Limited along with Tata Indicom Tele services (Maharashtra) Limited serves over 19 million customers in over 3400 towns. TTSL has created more than 20. In addition.in to offer postpaid mobile connections in the country. Its suite of broadband Data Network & Application services include Leased Lines. With an ambitious rollout plan both within existing circles and across new circles. polyphonic ring tones. cricket. Managed Gateway services & Web Conferencing services. DSL. fixed wireless phones (FWP). TTML Organization Tata Teleservices Maharashtra Limited (TTML) spearheads the Tata Indicom Group's presence in the Indian telecom sector by being the premier telecommunication service provider. picture messaging. interactive applications l i k e news. Tata Indicom Tele services (Maharashtra) Limited (TTML) spearheads the fata Group's presence in the Indian telecom sector by being the premier telecommunication service provider. Ethernet. Voice Portal. public phone booths.i-choose. licensed to provide services in Maharashtra (including Mumbai) and Goa. astrology. new mobile handsets and new voice & data services such as BREW games.

Power. The Group's mobile subsidiaries operate under the brand name . Vodafone Hssar. It now has operations in 25 countries across 5 continents and 40 partner networks with over 200 m i l l i o n customers worldwide. under the Hutch brand. Vodafone Essar now has operations in 16 circles covering 86% of India's mobile customer base. Shipping & Egoistic and Construction.400 b i l l i o n (US$ 10 billion) and employs over 20000 people. The Essar Group is a diversified business corporation with interests spanning the manufacturing and service sectors like Steel. joint ventures. the 'Best Mobile Service in the country' and the 'Most Creative and Most Effective Advertiser of the Year'. Tins siaie-of-ihe-ari technology caters to the needs of all market segments i. Vodafone Essar Vodafone Essar in I n d i a is a subsidiary of Vodafone Group Pic and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. Vodafone is the world's leading international mobile communications company. The company's shares are traded on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). the Middle East. reliable service and comprehensive as well as customeroriented value-added services.e. in a very short span. Energy. Communications.6 m i l l i o n customers*.com (India) Ltd. TTML. with over 35. has also emerged as the market leader in FWP services in Maharashtra circle. Asia Pacific and the United States through the Company's subsidiary undertakings. commercial.. Over the years. Formerly Hughes Felc. high voice quality.wireless communication services like mobile & Fixed Wireless phones to its customers. Vodafone has partnered with the Essar Group as its principal joint venture partner for the Indian market. with a significant presence in Europe. associated undertakings and investments. Vodafone Group Pic is the world's leading mobile telecommunications company. residential and PCO facilitates the company's aim to provide good network coverage. The Group has an asset base of over Rs. Africa. has been named the 'Most Respected Telecom Company'.83% equity shareholding by TATA INDICOM Group in December 2002. the company was renamed to Tata Indicom services Maharashtra Ltd subsequent to the acquisition of 70.

the Group had 241 m i l l i o n customers. In the United States the Group's associated undertaking operates as Verizon Wireless. During the last two financial years. Following its merger with Air Touch Communications. the Group has also entered into arrangements with network operators in countries where the Group does not hold an equity stake. Newbury. Berkshire. Its registered office is Vodafone House. calculated on a proportionate basis in accordance with the Company's percentage interest in these ventures. approximately 20% of the company's capital was offered to the public in October 1988. The Company's ordinary shares are listed on the London Stock Exchange and the Company's American Depositary Shares ('ADSs') are listed on the New York Stock Exchange. It was fully demerged from Racial Electronics Pic and became an independent company in September 1991. Vodafone over the years Vodafone was formed in 1984 as a subsidiary of Racal Electronics Pic. Network Agreements. on 28 July 2000. Inc. based on the registered customers of mobile telecommunications ventures in which it had ownership interests at that date. following approval by the shareholders in General Meeting. The Connection. England. the Group and its partner networks co-operate in the development and marketing of global services under dual brand logos. Under the terms of these Partner. Then known as Racal Telecom Limited. milestones in the development of Vodafone in the year 2007 Vodafone agrees to acquire Tele2 Italia SpA and Tele2 Telecommunication Services SLU from Telc2 AB Group. (Air Touch). reverted to their former name. The Company had a total market capitalisation of approximately £88 billion at 3 July 2007.'Vodafone'. Vodafone Group Pic. Vodafone Group Pic is a public limited company incorporated in England under registered number 1833679. At 30 September 2007. excluding paging customers. they changed their name to Vodafone Air Touch Pic on 29 June 1999 and. at which time it changed its name to Vodafone Group Pic. RG14 2FN. (October) Vodafone announces completion of the acquisition of Hutch Essar from .

need for information. YouTube agrees to offer Vodafone customers specially rendered YouTube pages on their mobile phones. better. Vodafone announces its intention to develop a location-based version of Goggle Maps for. As a first area for in-depth study of consumer behaviour. (February) Vodafone agrees to buy a controlling interest in 1 Hutchison Essar Limited.Hutchison Telecommunications International Limited. therefore. (May) Safari. where they live. With Goggle. The demographic characteristics. with ability to buy and willingness to do so. such as age. . a leading operator in the fast growing Indian mobile market. it is essential to sub-divide the buyers into different meaningful groups with those having similar characteristics in order to serve them A broad understanding about the consumers is. (February) Vodafone announces agreements with both Microsoft and Yahoo! to bring seamless Instant Messaging (IM) services to the mobile which can be accessed from both the PC and mobile handsets. (February) Vodafone signs a series of ground-breaking agreements which w i l l lead to the mobilising of the internet. an innovative new mobile payment solution that enables customers to complete simple financial transactions by mobile phone. required to study their characteristics.. Vodafone reaches 200 m i l l i o n customers (January). Different groups of buyers are likely to respond in different ways to price.com. buying attitudes. With eBay. Consumers are quite different from each other because their ways and means of buying differ considerably. Vodafone announces it is to offer the new eBay mobile service to customers. Therefore. it is appropriate to talk about people in quantitative terms like how many. Economic and demographic factors may have their greatest influence in determining the types of products people need and can purchase but have important influences on brand choice and supplier patronage as well. how old. sex. Vodafone's partner in Kenya announces the launch of M-PESA. A market is usually defined as people. (February). promotional appeals etc. product features. With MySpace.com Vodafone announces an exclusive partnership to offer Vodafone customers a MySpace experience via their mobile phones. because they differ in their wants and resources. therefore. and their ability to buy or income 1 .

location. influence on CHAPTER III . family size. will have i t s consumer. etc. income.. occupation.

Economic and demographic factors may have their greatest influence in determining the types of products people need and can purchase but have important influences on brand choice and supplier patronage as well.. and their ability to buy or income 1 . occupational status. promotional appeals etc. Hence. with ability to buy and willingness to do so. how old. Gender. which comprises 300 possessors of cellular services. on the basis of age. it is essential to sub-divide the buyers into different meaningful groups with those having similar characteristics in order to serve them better.CONSUMER PROFILE & INFLUENCES ON MOBILE SERVICE USERS Consumers are quite different from each other because their ways and means of buying differ considerably. buying attitudes. income. Different groups of buyers are likely to respond in different ways to price. will have i t s influence on consumer Behavior to purchase or repurchase.. income. where they live. A broad understanding about the consumers is. location. sex. educational qualifications. such as age. The analysis is made by segmenting the sample. to group the sample under different sub-groups and to study their impact on consumer behavior to purchase or repurchase. product features. The knowledge of consumers' demographic variables helps in knowing the consumer purchasing and repurchasing behavior and also in identifying the potential buyers. Therefore. AGE LEVEL & GENDER WISE CLASSIFICATION: . it is appropriate to talk about people in quantitative terms like how many. therefore. A market is usually defined as people. it is appropriate to analyse the consumers' characteristics before making an in-depth analysis of brand loyalty. therefore. etc. In this chapter a discussion is made on consumer profile with a view to provide an insight into the various demographic variables of the respondents. occupation.. need for information. As a first area for in-depth study of brand loyalty. family size. etc. The demographic characteristics. required to study their characteristics. because they differ in their wants and resources.

33 31-40 40 (13.e.69 13. The age of the respondents is classified into five groups that is below 20 years.e. also.00) 70 AGE GROUP % 41-50 24.67) 15 (5. 31-40 years.As the behavior of consumers differs among gender categories and different age groups.33) 30 (10. an attempt is made to analyse the consumer profile by classifying the consumers on the basis of their gender and age. Since. The female respondents are 11 percent in the age group of below 20 years and 22 percent of respondents are in 21-30 years and 31-40 years age group.33 TOTAL 166 134 44.86 12.19 11.00) 55 % 15.33 >50 23 (7.33) 30 (10. The classification reveals that majority of respondents is in the age group of 4 1 -5 0 years.67 300 100. The percentages of male respondents in the age group of below 20 years is 12. personality.34 33.67 21-30 25 (8. The influence of the gender in selecting a brand of service provider may differ from gender to gender. Similarly age of the gender will. 21-30 years.06 22.67) 17 (5.67) 40 % 13.00 % 55.33) 22.33 100 % 34.39 18.05 11. But 31 and 13 . in the age group of 21-30 years is 15.1 AGE & GENDERWISE CLASSIFICATION GENDER MALE FEMALE TOTAL < 20 20 (6.33 Source: Questionnaire Table-3. evaluate criteria.00) 35 % 12. which accounted for approximately 33 percent and 35 percent of male respondents are in this age group only.1 shows the data relating to gender wise. Table -3. almost all the members now a days utilize cellular services they may have their own interest in selecting the brand of the service provider which they want to purchase.33 percent and 134 i.10 58 (19. in 31-40 years is 24 and in above 50 years group is 14 percent.39 42 (14. In the sample selected the male and female respondents are approximately 166 i. attitudes and other behavioral patterns. 55. classification in different age groups of the respondents. 45 percent respectively. Gender shape and influence the individual consumer's selfconcept.00) 23. have its impact on consumption pattern of the consumers of a service provider because the life of a service provider depends upon the usage by the number of members and usage frequency. an attempt is made to analyze age and gender. Therefore. 41-50 years and above 50 years on the assumption that the consumer behavior for cellular services differ in these five age groups.94 31.

INTREPRETATION: It is noted that 58 male members are in the age group of 41-50 years followed by 40 members in the age group of 31-40 years and 25 members are in the age group of 21-30 years. REASONS: It is seen that majority of male members are using mobile phones.3. Graduation. It may be due to high male population compared to female members in Andhra Pradesh. and in choosing the best among the available brands. The data reveals that approximately 55 percent of total are male respondents and remaining 45 percent are female respondents. it is very clear from the data that majority of male members are from age 21 years to 50 years. Up to Secondary. Higher Secondary. It is then followed by 30 each between age groups 21-30 years and 31-40 years. the educational level helps them in collecting. the market is flooded with a variety of brands. The educational level of the respondents is cross analysed with age. processing the service related information. It is also seen that 42 female members are in the age group of 41-50 years as in the case of male members. Therefore. Moreover.. In case of Cellular Service Providers. The educational level of all the selected respondents is classified under five categories viz. the highest age group of 41-50 years among male members is using mobile phone. female members are also more in number between age groups 21 years to 50 years. It may be to have contacts with their relatives and friends as they cannot travel much. Therefore it is clear that as in the case of male members. Therefore.2 AGE & EDUCATION LEVEL CLASSIFICATION . AGE AND EDUCATIONAL LEVEL CLASSIFICATION: Educational level of a consumer helps in evaluating various alternatives available in the market for making a rational purchase decision with available resources. Postgraduation and Professional Qualification. Table .percent are in the age groups of 41-50 years and above 50 years respectively.

33 % 0. Interpretation and Reasons: Below 20 years of age.00) 21-30 31-40 41-50 > 50 TOTAL 11 (3.33) 5 (1.64 21.00 40 13.33 23.29 14. and divorced and widow. single. MARITAL STATUS AND AGE LEVEL CLASSIFICATION: Marital status of the consumers will have an influence on consumer behavior as it decides the purchasing and repurchasing decision based on their requirements. 21 percent are graduates. None.33) 80 26. separated.P. For the purpose of analysis. are neither graduates nor post graduates and professionals.67) 30 10.67) 18.43 30.33) 10 (3.29 27.55 WIDOW 0 (0.50 21.33) 15 (5.57 14.67) 20 (6.67) 11 % 57.67 25.67 % < 20 Source: Questionnaire Analysis made in the Table-3. married.33) 12 (4.00 28.55 % 48. TABLE .64 55 18.00) 5 (1.00 25.67) 63 EDUCATION % 0.67) 18 (6.67 . This might be because of low fee structure during their study period.00 100 33.00 4. are classified into five groups i.00) 30 (10.00) 13 (4.67) 75 25.00 20. Post-graduates are 17 percent.00 POST GRADUATION 0 (0.00) 52 17.00) 9 (3.43 HIGHER SECONDARY 17 (5.00) 10 (3. Majority of them are educated and fall in the age group 41-50 years (100 and 70 respondents) and 31-40 years respectively.00 20.67) 10 MARITAL % DIVORCED 14.50 21.00 23.18 % 0. ALIGN KAR BHAGATH NEECHAY In the age group 31-40 and 41-50 years. on the basis of their marital status.00 20.00 % 51.00 25.33 22.14 18.67) 4 (1.00 MARRIED 5 (1. majority of them are graduates followed by respondents with higher secondary qualification.27 SEPARATED 5 (1.3 AGE & MARITAL LEVEL CLASSIFICATION AGE < 20 21-30 SINGLE 20 (6.00) 11 % 0.33 100. It may be because of many dropouts amongst low income group and low literacy rate in A.33) 8 (2.67) 15 % 14.14 70 23.00 TOTAL 35 55 % 11.2 reveals that the educational qualification of majority of the respondents is higher secondary. which accounted for 27 percent.00 17.00 PROFESS IONAL 0 (0.e.18 8 % 14.00 300 20.00 TOTAL 35 11. 35 members have educational qualification up to higher secondary only.00) 13 (4.3. 10 percent are with professional qualifications and 25 percent are with educational qualifications of up to secondary.33 7.00) 20 (6.00 12.67) 8 (2.67) 8 (2.AGE SECOND ARY 18 (6.14 20.57 GRADUA TION 0 (0.29 5 (1. in this age group.71 20. all the respondents.67) 25 (8.00) 21 (7.

00) 0 (0.00) 9 (3.33) 12 (4. The phenomena of either being single or separated may be due to the thinking of being independent especially between 31 – 50 years.29 0.00 5 (1.67) 68 25.00 4.00 22.33) 8 (2.14 16.64 % OCCUPATION STUDENT % SERVICE % OTHERS % TOTAL % < 20 21-30 31-40 41-50 > 50 TOTAL 0 (0.33) 10 (3.00 26.67) 4 (1.33 100 33.67) 8 (2.00 12.00 Source: Questionnaire Interpretation and Reasons: 100 respondents in the age group of 41 -50 years and 70 respondents in the age group of 31-40 years are separated (30 & 20 respectively) followed by married (25 & 18 respectively) and single (20 & 14 respectively).33) 5 (1.00 25.86 10.00 0.67) 73 20.33) 18 (6. but 5 respondents are divorcees at this young age and 5 others are separated.00) 37 57.67) 14 (4. kabadi walas.00 35 55 70 100 40 300 11. All the respondents. professionals. These rare phenomena in this age group might be due to illiteracy . executives.50 18. it is clear that majority of the respondents are separated i.50 24.31-40 41-50 > 50 TOTAL (3.00 21. 25 percent followed by single i. 24 percent.67 (2.14 28.3.67) 9 (3.33 (5.67) 7 (2.00) 8 (2.00) 74 28.43 14.00 24.67) 8 (2.67) 43 18.67) 4 (1.00 20.00) 10 (3.67) 20 (6.33 12.67) 30 10.33 5 (1.00 20.36 11. OCCUPATIONAL STATUS AND AGE LEVEL CLASSIFICATION: The Occupational status of all the respondents is classified in six categories viz.00 7.50 22.33) 10 (3. religious places and Government service and others are rickshaw walas. student.00) 13 (4.50 26. unemployed. 14 percent each are widow and divorced.33) 20 (6.00) 26 (8.00 20 (6.67) 0 (0.00 20. 23.33 8 (2.33 300 100.67) 9 (3.4 AGE & OCCUPATION LEVEL CLASSIFICATION AGE EXECUTIVE % UNEMPLO YED 5 (1.14 23.00) 10 (3.71 25.33) 78 14. 33.67) 12 (4. from the table 3.00 12. Hence.3.57 30.00) 15 (5. None are widow in the age group of below 20 years.67) 30 (10.33) 42 14.00 32.29 14. vegetable vendors etc.00 12.00 25.00 (3.00) 25 (8.71 35.00) 18 (6.00 14. whose occupation is not covered under starting five categories that is executives.67) 15 (5. social or psychological problems. 23 percent are married. Professional.33) 5 (1.33) 58 19.00) 7 (2..67) 18.e.86 15.33) 5 (1.e.. 13. Table . service and others.33 10.00 20. student and service are categorized under last group that is Others.43 0.00) 28 (9.00 14.67) 13 (4.55 % PROFESSION NAL 0 (0.67) 9 (3.33) 42 12.33 70 23.29 12. 100 .55 17. 18.67 (3..73 25.14 7. unemployed.18 17.33 40 13. Service category include persons rendering services in charitable institutions.00) 8 (2.00 14.00 14.00) 35 (11.67) 55 0.

12.Source: Questionnaire The occupational status of the consumers will have an impact on their consumption pattern. 58 are unemployed.4 to study the impact of these factors on consumer behaviour to purchase or repurchase a brand. 30 are professionals. The consumption pattern differs from occupation to occupation. directly. In the occupational category of others. 24 percent of the professionals are in the age group of 21-30 years. the age level and occupational status of the respondents are analysed in the Table-3. 17 percent in the age group of 41-50 years. 55 respondents are executive employees. Out of 300 respondents. 17 per cent are in 31-40 years and 13 per cent are above 50 years. which accounted for 28 per cent. It is clear that majority of executive employees are between the age group 41-50 years.35 percent. So. 37 are students. The least number of respondents are professionals with 30 in all in 300 respondents accounting for 10 percent. 17 percent are in the age group of 31-40 years. which accounted for approximately 18. have an influence on consumer behaviour as it decides the purchasing and repurchasing power of the consumers. 26 and 14 percent respectively. the highest in number in the age group of 41-50 years. lack of diet control and exercises. Among the executive 18 per cent are in the age group of 21-30 years. AGE LEVEL AND INCOME LEVEL CLASSIFICATION: The income of consumers will.e. 10. as the needs of different occupations are not same. . This may be due to that majority in this age group would like to spend their time with their family members or spend time in religious matters as average life span has decreased because of pollution. there are 25 percent in the age group of above 50 years. 19. 78 are service and remaining 42 respondents are others. 15 percent are in the age group of 21-30 years and just 14 per cent below 20 years. Interpretation and reasons: It is noted that majority in the age group of 41-50 years is rendering services (35) followed by executives (28) and unemployed (26). The respondents rendering service are 35 i.

67) 5 (1. and divorced and widow. separated. For the purpose of analysis.00) 8 (2.67) 15 (5. 5000.67) 20 (6.00) 9 (3.29 27.33) 10 (3. all the respondents.67 55 18. interest on their savings and mutual funds.5 to study the impact of these factors on consumer behavior.33) 3 (1.00 % Source: Questionnaire So.57 16. 5001-10.29 11.00) 10 (3.67) 13 (4.000. 15.14 18.For the purposes of analysis.33 70 23.00) 9 (3. 10.36 11.55 18.14 14.00 20.5 AGE & INCOME LEVEL CLASSIFICATION AGE < 5000 < 20 21-30 31-40 41-50 > 50 TOTAL 5 (1.18 14.43 9.00 18.00 15. 20. 25.00 1500120000 3 (1.67) 11 (3. the income group and age level of the respondents are analyzed in the Table-3.000.33) 5 (1. Hence they make alternative arrangements like income from rent. are classified into five groups i.00 1000115000 0 (0.50 10.67) 30 % 0. mutual funds etc.29 16. all the respondents.67) 48 % 8.3.50 22.00) 49 INCOME % 14.57 14. This may be due to lack of opportunities in employment and that they are bound to work for less pay.00) 18 (6.33 100 33. MARITAL STATUS AND EDUCATIONAL LEVEL CLASSIFICATION: Marital status of the consumers will have an influence on consumer behavior as it decides the purchasing and repurchasing decision based on their requirements.00 > 25001 11 (3.00) 66 % 17.09 24.27 14. The age group of 21 – 30 years are earning below Rs. INTERPRETATION AND REASONS: In the age group 31-40 years and 41-50 years majority of the respondents are earning above Rs.00) 53 % 31.00 7. Table . 25000 respectively. This is because they may have other sources of income like rent. single.15001 and above Rs.00 12.00 2000125000 6 (2. are classified into six income groups they are below Rs. on the basis of their income. on the basis of their marital status.67) 5 (1.001-25. ..33) 16 (5.57 30.001-20.000. interest on deposits. 5000.50 16.33) 8 (2.00) 6 (2.43 20. as these age groups start thinking about future as their age might not support them to earn by working.33 300 100.67) 12 (4. 15001 and below Rs.67) 9 (3.33 500110000 10 (3.67) 17 (5.50 17.00 16.00 22.00 18.33 40 13.33) 30 (10.00) 8 (2.001-15.000.29 5.67) 8 (2.e.55 17.000 and above Rs.00) 54 % 28.67 TOTAL 35 11.00 22. married.25000 and Rs.00) 10 (3.

67) 42 14.67 15.67) 9 (3.00) 8 (2.87 28.67) 10 (3.87 23.67) 8 (2.33) 12 (4.33 5. the market is flooded with a variety of brands.00 % 10.00 52 17.00) 6 (2.33) 10 (3.00 12 (4.67 MARITAL % DIVORCED 18.08 15.33) 73 24.33) 4 (1. majority .6.00 23.33 % 41. Higher Secondary.67) 43 14.67) 4 (1.85 7.33) 12 (4. The educational level of all the selected respondents is classified under five categories viz.50 TOTAL 75 80 26.00 41. Graduation. Among respondents with educational qualification up to secondary.67) 28 (9.33 20.31 13.67) 5 (1.33 300 % 10.00) 7 (2. the educational level and marital status helps them in collecting.00) 68 22.67 32. processing the service related information.3. Therefore. Table .33) 26 (8.67 19.67) 26 (8. 33 percent are married and 15 percent are divorcees.00 MARRIED 14 (4. Postgraduation and Professional Qualification.67 % 18.33 26. INTERPRETATION AND REASONS: Most of the respondents are higher secondary accounting for 27 percent and about 35 percent are separated having higher secondary qualification.94 17.38 15.05 15.67 12.38 63 21.67) 35. The educational level of the respondents is cross analysed with age.67 8 (2. In case of Cellular Service Providers.33) 15 (5.00) 5 (1.6 EDUCATION & MARITAL LEVEL CLASSIFICATION EDUCATION SECONDARY HIGHER SECONDARY GRADUATION POST GRADUATION POFESSIONAL QUALIFICATION TOTAL Source: Questionnaire SINGLE 31 (10.00 100.27 15.67 30 10.00 WIDOW 8 (2.00 % 25.Educational level of a consumer helps in evaluating various alternatives available in the market for making a rational purchase decision with available resources..67 In table 3. This may be due to lack of understanding between couples as their educational status is very low.00) 8 (2.33) 74 24. an attempt is made to analyze education and marital status of the respondents as both attributes decides the behavior of consumers to purchase or repurchase.50 SEPARATED 14 (4. Up to Secondary.33 16. and in choosing the best suitable to their needs among the available brands.67) 10 (3.

Higher Secondary. majority of them are divorcees may be because that they do not give much time to each other. The educational level of the respondents is cross analysed with education.. EDUCATIONAL STATUS AND OCCUPATIONAL LEVEL CLASSIFICATION: Educational level of a consumer helps in evaluating various alternatives available in the market for making a rational purchase decision with available resources. Service category include persons rendering services in charitable institutions. Postgraduation and Professional Qualification. service and others. poverty etc. This may be because that the majority prefer high qualified partners these days.. The Occupational status of all the respondents is classified in six categories viz. student.. All the respondents. Up to Secondary.. Professional. professionals. executives. The educational level of all the selected respondents is classified under five categories viz. unemployed. whose occupation is not covered under starting five categories that is executives.. Graduation. Therefore.7 . Table . student and service are categorized under last group that is Others. vegetable vendors etc. kabadi walas.of them are single. the educational level and marital status helps them in collecting. Among graduates. and in choosing the best suitable to their needs among the available brands. unemployed. domestic harassment. majority of them are single as they may be searching for jobs or other opportunities to earn followed by 12 being widows which may be due to natural cause like death for which cause can be anything like accidents.3. Among respondents with professional qualification. the market is flooded with a variety of brands. processing the service related information. religious places and Government service and others are rickshaw walas. majority of them are separated may be because of egoism and lack of understanding among partners as it is commonly seen among people these days. Among post graduates. In case of Cellular Service Providers..

33) 0 (0.75 25. 5001-10.00) 27 (9.00) 0 (0. all the respondents.3 0.33 58 19.00) 0 (0. The educational level of all the selected respondents is classified under five categories viz.0 17.00 75 80 25.69 0.00) 5 (1.33) 0 (0.0 14. This may be because that they find no employment.00) 13 (4.00) 20 (6.7 clearly reveals majority of the respondents are rendering services that possess the educational qualification of higher secondary certificate followed by 18 executives.87 32.33) 10 (3.33) 12 (4. the educational level and marital status helps them in collecting.00) 17 (5.50 18 (6. The income of consumers will. are classified into six income groups they are below Rs.00 0.67) 0 (0.50 18 (6.00 21.00 0.33 15.98 19. Therefore.33 22.67) 10 (3. processing the service related information. and in choosing the best suitable to their needs among the available brands.25 0 (0.000.52 9. Majority of them with secondary qualification are unemployed and rendering services as they might have seen no opportunities.0 Source: Questionnaire INTERPRETATION AND REASONS: Table 3.00 0. directly.62 31.00 16.001- .00 16 (5.33 78 26.00 42 100.00 10.00 0. Postgraduation and Professional Qualification. Up to Secondary.00) 0.00) 24. Graduation. the market is flooded with a variety of brands.00 300 18.00) 10 (3. on the basis of their income.33) 6 (2.33) 17 (5.75 13 (4. 5000.23 15.00 100.0 26. Higher Secondary..67) 13 (4.00 9.00) 17. For the purposes of analysis.00) 0 (0. The educational level of the respondents is cross analysed with income category.87 13.33) 7 (2. EDUCATIONAL STATUS AND INCOME LEVEL CLASSIFICATION: Educational level of a consumer helps in evaluating various alternatives available in the market for making a rational purchase decision with available resources. In case of Cellular Service Providers.33) 10 (3.0 0 10.33) 0 (0.00) 55 13.00) 24. have an influence on consumer behaviour as it decides the purchasing and repurchasing power of the consumers.00) 21.00 0.67) 0 (0.6 15.33 12.EDUCATION & OCCUPATION LEVEL CLASSIFICATION EDUCATION EXECUT IVE SECONDARY HIGHER SECONDARY GRADUATION POST GRADUATION POFESSIONAL QUALIFICATION TOTAL % UNEMPLO YED % PROFESSI ONAL % OCCUPATION STUDE NT % SERVICE % OTHERS % TOTAL % 10 (3.00 30 0.33 30 37 12.00 33.00) 30 (10.46 63 52 26. 10.33) 18 (6.

33 30 13.33) 16 (5. 20.00) 4 (1.33) 8 (2.000 and above Rs.67 15. 15001 to above Rs. 25. all the respondents. are classified into five groups i. service and others. For the purpose of analysis.000.15000 only).77 12.00) 7 (2.00) 66 22. on the basis of their marital status.001-25.33) 3 (1. 25001.33) 8 (2.33) 12 (4. interest on deposits etc.08 15.00 17. All the .8 EDUCATIONAL STATUS & INCOME LEVEL CLASSIFICATION EDUCATION < 5000 SECONDARY HIGHER SECONDARY GRADUATION POST GRADUATION POFESSIONAL QUALIFICATION TOTAL Source: Questionnaire 15 (5.33 10.e.00 20.50 TOTAL 75 80 % 25.33 26.08 63 52 15.00) 15 (5.67) 8 (2.67) 2 (0.67) 3 (1.67) 10 (3.001-20.00) 10 (3. married.000.00 % 5.00 100.77 15. unemployed.00) 20 25.3.67) 54 18.00 INTERPRETATION AND REASONS: An analysis is made from table 3.00 (6.00) 8 (2. MARITAL STATUS AND OCCUPATIONAL LEVEL CLASSIFICATION: Marital status of the consumers will have an influence on consumer behavior as it decides the purchasing and repurchasing decision based on their requirements.67 15.00 % 26. which shows that majority of them with secondary qualification and higher secondary qualification earn between Rs.00 10.67) 10 (3.67) 30 10.33 17. professionals. 15.67 22. single. Table .81 13. executives.33) 49 16.87 23.00 1000115000 4 (1.00 2000125000 20 (6.00 500110000 8 (2.00) 4 (1. The Occupational status of all the respondents is classified in six categories viz.00) 48 16.00 (5.50 > 25001 13 (4.00 10. The respondents with higher educational qualifications like graduation.85 23.67 16.00 26.70 3.33) 12 (4.67) 10 (3. This may be due to hereditary property inherited by them or from income from other sources like rent.67) 18 (6.87 30. and divorced and widow.33 % 20.67 300 % 17. separated.15.67) 12 (4.33 13.000.67 10.33) 53 17.00 % 10.46 21. post graduation and professional qualification are earning less than those with just secondary and higher secondary qualification (below RS 5000 to Rs.87 23.00) 5 (1. The reason may be competition among many jobs and hesitation to do low profile jobs due to their high level qualifications.87 5. student..33) 6 (2.8.00 INCOME 15001% 20000 15 20.33) 14 (4.

67) 6 (2.33) 2 (0. The consumption pattern differs from occupation to occupation.00) 55 18. whose occupation is not covered under starting five categories that is executives.33) 12 (4.33) 8 (2.76 % 13.11 11.33 27.92 17.00 300 0.67) MARRIED SEPARATED DIVORCE WIDOW TOTAL 9 (3.33) 0 (0.00) 12 (4.33) 5 (1..67 18.67 23.00) 19 (6. This may be due to that they can devote their much time in the occupation chosen by them.33) 16 (5.67) 10 (3.67 42 14.3.33 11.70 OCCUPATION STUDENT 18 (6. student and service are categorized under last group that is Others.23 16. as the needs of different occupations are not same.00 Source: Questionnaire INTERPRETATION AND REASONS: It is very clear from cross tabulation between marital and occupation in table 3. unemployed.22 74 24.00 43 14.52 8.33) 58 19.9 to study the impact of these factors on consumer behaviour to purchase or repurchase a brand. Professional.11 5.00 4. So.33) 10 (3. kabadi walas.00 25.44 PROFESSI ONAL 10 (3.33) 11 (3. are students (18) and are unemployed (12).63 9.59 TOTAL 73 24.62 13.66 SERVICE 18 (6. vegetable vendors etc.53 68 22.33) 12 (4. The less responsibility and independence nature are the features of being single which might be the reason for them to either go for service or be a student or search for jobs and other opportunities.00) 7 (2.94 % 24. Those who are single are rendering service (18). Service category include persons rendering services in charitable institutions.58 23.67) 78 26.33 30.65 % 16. The occupational status of the consumers will have an impact on their consumption pattern. the marital status and occupational level of the respondents are analysed in the Table-3.33 % SINGLE 100.33) 6 (2..33) 13 (4. The married respondents are also doing service (19) followed by other .00) 16 (5.52 8. religious places and Government service and others are rickshaw walas.67) 7 (2.9 MARITAL STATUS & OCCUPATION LEVEL CLASSIFICATION MARITAL EXECUT IVE 8 (2.81 27.66 OTHERS 7 (2.67) 37 12.respondents.88 % 24.00) 42 14.00) 4 (1.00) 4 (1.91 23.33) 20 (6.81 21.00) 14 (4.65 9.9 that majority of the respondents who fall in the category of separated under marital status are rendering services(20) followed by executive occupation(16).24 % 10.00 16.00) 4 (1.67 % 9.67) 30 10.33 16.03 27. Table .96 UNEMPLO YED 12 (4.

82 13.57 21.65 10.18 17.00) 5 (1.67 42 14.26 (3.43 11. separated.90 23.22 11.67) 12 (4.24 (3.67) 49 % 13.92 23.00) 14 (4. 5000.67) 66 % 26. married.33) 5 (1.67) 6 (2.63 22. For the purpose of analysis.33) 18 (6.52 4. 15. The reason may be that the single may be spending more time to earn for their . are classified into six income groups they are below Rs.00 > 25001 14 (4.33) 48 16.00) 10 (3. MARITAL STATUS AND INCOME LEVEL CLASSIFICATION: Marital status of the consumers will have an influence on consumer behavior as it decides the purchasing and repurchasing decision based on their requirements. single.33) 2 (0. The income of consumers will. For the purposes of analysis.29 25.86 (3.33) 54 % 16.00 2000125000 19 (6.000.10 it is clear that majority of the respondents who fall in the category of single.occupations like rickshaw pulling etc (16) and 12 are unemployed.00) 11 (3. Hence.00 % Source: Questionnaire INTERPRETATION AND REASONS: From table 3.67) 6 (2. and divorced and widow.70 (3.000 and above Rs.00 43 14. all the respondents.65 17. 10.33) 9 (3. have an influence on consumer behaviour as it decides the purchasing and repurchasing power of the consumers. 15001 to above Rs. all the respondents.67) 14 (4.00 INCOME 15001% 20000 10 13.33 68 22. directly.00) 13 (4.44 22.10 MARITAL STATUS & INCOME LEVEL CLASSIFICATION MARITAL < 5000 SINGLE MARRIED SEPARATED DIVORCE WIDOW TOTAL 10 (3.67) 10 (3.33) 9 13.67 74 24. 5001-10.26 18.67) 53 % 19.33 500110000 12 (4.e. Table .51 9.67) 10 23. separated and divorce categories if marital status are earning between Rs.70 11.00115.00) 15 (5.58 16. married.06 16.67 TOTAL 73 24.001-25.47 18.000. 25. an attempt is made to analyze by cross tabulation between marital status and income level of the respondents.67) 8 19. on the basis of their marital status.00 1000115000 8 (2. This may be due to lack of employment opportunities and lack of vocational training.00) 11 14.000.63 17. 25000. 20.92 14.76 18.000.05 (2.81 11.33) 4 (1.3.67) 30 % 10.00) 5 (1.33 300 100. on the basis of their income. are classified into five groups i.67) 10 (3.00) 12 (4.96 8.03 26.33) 8 (2.001-20.

001-25.. professionals.00) 8 % 10. 5001-10.001-15.000.00) 13 % 21. 5000.000 and above Rs. 10. Below 5000 and Rs 15000.00) 11 % 21. The Occupational status of all the respondents is classified in six categories viz. 25. the married to keep their family happy. For the purposes of analysis.better future. whose occupation is not covered under starting five categories that is executives.000.001-20.33 58 % .55 8. The consumption pattern differs from occupation to occupation. as the needs of different occupations are not same. the income level and occupational level of the respondents are analysed in the Table-3. Service category include persons rendering services in charitable institutions. 15. unemployed.33) 12 % 18. student and service are categorized under last group that is Others. service and others.79 500110000 10 (3.82 18. student. 20.11 to study the impact of these factors on consumer behaviour to purchase or repurchase a brand.69 1000115000 8 (2...000. kabadi walas. executives.000. Professional.82 22.91 13. have an influence on consumer behaviour as it decides the purchasing and repurchasing power of the consumers.67) 5 % 14.18 20. Table . unemployed. The reason may be that they may not know that they can claim more alumni from their exhusbands and that they should rely on their own earning capacity by doing jobs or service. The income of consumers will.41 > 25001 12 (4.3. all the respondents.11 OCCUPATION & INCOME LEVEL CLASSIFICATION OCCUPATION < 5000 EXECUTIVE UNEMPLOYEE 6 (2.62 INCOME 15001% 20000 7 12.33) 9 15. The occupational status of the consumers will have an impact on their consumption pattern.73 (2.52 2000125000 12 (4. vegetable vendors etc.97 TOTAL 55 18. are classified into six income groups they are below Rs. So. and the separated and divorcees earn more may be to keep their future safe and secured but the income of widow category is more between Rs. directly. religious places and Government service and others are rickshaw walas. on the basis of their income. All the respondents.

00) 5 (1.33) 57 % 22.67 30 10.11 deals with cross tabulation between occupation and income level of the respondents. .00) 17 (5.67) 50 % 18.67) 44 % 16.47 19.00 (3.95 16.41 4.14 17.00 21.41 12.18 19.89 14.33) 16 (5.33) 8 (2.e.67 RELIANCE 29 (9.33) 2 (0.67) 5 (1.00) 4 (1.67 24. 15001 to Rs.91 13.10 16.33) 13 (4. There is a peculiar feature observed from the table that even unemployed are having more income i.33 5.67 30.67) 10 (3.00) 8 (2.40 18.PROFESSIONAL STUDENT SERVICE OTHERS TOTAL (2. The respondents rendering service are earning between Rs.33) 24 (8.00 IDEA 30 (10.69 14.13 which shows that male members 166 in number(55%) use more number of mobile services than female members (134 accounting to 45%).33) 48 13.67) 28 (9. 38 male members have Airtel connection followed by Idea (30). With loyalty come additional revenue streams. The reason may that they may get many offerings and those in government service are getting good remuneration after fifth pay commission.67 TOTAL 166 134 300 % 55. It is found that 10% difference is there between male & female members which is negligible.00 (4.62 20.08 14.67) 16 (5.00) 20 (6.67) 54 20.51 7. 25000.93 16.32 23.67) 26 (8.62 20.00 (3.81 16.33 16. interest from deposits etc and it is followed by executives and professionals as their earning capacity itself fetches them such a huge income.33) 13 (4.51 4.00) 53 19.67) 9 (3.33 TATA INDICOM 16 (5.67) 55 BRAND % 17.67) 2 (0.27 12.33) 3 (1. Reliance (29).33) 2 (0.00 Source: Questionnaire INTERPRETATION AND REASONS: Table 3.07 14.90 18.67) 3 (1.67) 4 (1.00 300 100.67) 19 (6.76 10. The set of satisfied customers build communities around the brand and use their associations as a platform to build permanent loyalty. The brand propagates building a set of satisfied customers.29 22. Brands bring loyalty.64 17.67) 16 (5. 44.00 21.00) 8 (2.67 10. 25000. The reason could be that they get income from rent.00) 40 % 9.00) 6 (2. GENDER AIRTEL MALE FEMALE TOTAL 38 (12.00) 6 (2.00 (1.33 (4.33 VODAFONE 27 (9.22 6.76 18.33) 6 (2.66 20.33 10.00) 66 26.00 37 12.82 38. 100 Source: Questionnaire An analysis between gender & brand is made from the table 3. 15001 to above Rs.00 42 14.33) 49 16.33 78 26.67) 4 (1.67) 30 13.33) 54 % 15.00 BSNL 26 (8. between Rs.00) 18 (6.

BSNL (26) and Tata Indicom least with 16.67) 35 (11.14 BRAND & TYPE OF CONNECTION CLASSIFICATION CONNECTION AIRTEL PREPAID POSTPAID TOTAL 30 (10.33) 54 18.00) 27 (9. The reason may be that the respondents might have felt the benefits derived from postpaid connection are more than that of benefits from prepaid connection.98 % 21.00 % 14.18 IDEA 28 (9.14 which shows that majority of them have chosen post paid connection.38 % 14.00 Source: Questionnaire INTERPRETATION AND REASONS: To know the association between type of connection and brand possession Cross tabulation between brand and type of connection is done in table 3.33) 22 (7.00 % 100.18 TATA INDICOM 22 (7.00 16.15 BRAND & EDUCATIONAL STATUS CLASSIFICATION .e (28) opted for BSNL services followed by Reliance (26).00) 57 19. Reliance (34) and Airtel (27) whereas prepaid connection is more popular amongst Airtel.67) 44 14. Tata Indicom (24).89 TOTAL 141 47. Idea (20).32 % 15.00 21.67 300 14.67) 55 18. Many female member i. Idea and Tata Indicom.60 VODAFONE 21 (7.84 % 19. Table 3. When comparing with the prepaid and post paid mobiles most of the customers prefer post paid phones than pre paid phones as it suits to their requirements. On an aggregate BSNL is dominating in post paid connection and Airtel is dominating in prepaid connection.33) 18 (6.67) 34 (11. Table 3.67 13. The post paid connection is more popular amongst BSNL (34).01 BRAND % 14.33 22.00) 40 13.86 RELIANCE 20 (6.47 159 53.Vodafone (27).33) 50 16.28 BSNL 20 (6. The post paid customers are more when compared to pre paid customers.00) 23 (7.33 11. Airtel (19) and Vodafone (17).

00) 2 (0.67) 44 14.33) 9 (3.67) 5 (1. BSNL and Idea are very popular amongst customers who have Secondary certificates as it suits to their requirements.67) 16 (5.0 26. the brands Reliance.52 17. It is clear from the table that majority i. It may be due to low tariff plans and their ability as graduate to compare and contrast among all the available brands in the market which may lack with people up to higher secondary level as they just rely on their friends or relatives to choose a brand.54 15.00) 8 (2.15 depicts brand & educational status of the customers is analyzed to know the association between them i. Idea (15) and BSNL (14) are very popular amongst customers who possess higher secondary certificates.67) 6 (2. Table 3.00 10. Among graduates.00 IDEA 19 (6.3 10.00) 55 18.00) 11 (3. It is been said by them that they have chosen those brands because of many offers and schemes and low tariff plan as it suits to their requirements.08 22.67 3.33 RELIANCE 11 (3.00) 10 (3. People with post graduation have 13 BSNL connection and just 2 Idea connections.0 17. Tata Indicom indicom (4).67) 12 (4.00 % 18.67 300 16.00 TOTAL 75 % 25.00 23.67) 50 16.67 6.50 80 % 8.00) 14 (4.EDUCATIONAL STATUS SECONDARY HIGHER SECONDARY GRADUATION POST GRADUATION PROFESSIONAL QUALIFICATION TOTAL BRAND AIRTEL 14 (4. Tata Indicom and Vodafone are very popular.00) 4 (1. Tata Indicom (13).33 13.e.33) 6 (2.00) 54 18. BSNL (3) and Idea (2).6 21.15 52 19. Amongst Graduates.00 33.05 18.05 63 12. BSNL (14). 80 have higher secondary certificate of which 16 have Airtel services followed by Idea (15).67) 12 (4. Therefore.29 20.33) 10 (3.00) 12 (4.00) 6 (2.00 9.00 25. Source: Questionnaire Table 3. Those with professional qualification have in descending order the following connections.0 100.67 BSNL 18 (6.16 BRAND & MARITAL STATUS CLASSIFICATION MARITAL BRAND .67 TATA INDICOM 7 (2. Reliance (6).85 19.33 11.33) 15 (5.00) 13 (4. Reliance (14) being highest to BSNL being lowest (5).33 15.25 % 9.38 14. Those with secondary qualification have Idea (19) at the top & Vodafone at the bottom with just 6.87 16.33 20. brand possession and education.67) 2 (0. Airtel (10).e.67 30 21.75 % 25.33) 13 (4.33) 3 (1.00) 14 (4.00 % 14.67) 10 (3. It is also seen that the brands Airtel.50 % 24. Reliance (12) & Vodafone (10).33) 40 13.33) 57 19. Vodafone (5).33) 12 (4.33 VODAFONE 6 (2. it is clear that Airtel (16).22 15.

33) 3 (1. Those separated have 16 Airtel. many have Airtel connection and very few have Idea connection.67) 5 (1.57 18. Airtel.67 RELIANCE 14 (4.33) 8 (2.67) 40 % 12.00 Source: Questionnaire Brand & marital status are cross tabulated in table 3.22 14. On an aggregate.67 74 24.00 43 14.71 16.67) 55 % 19.18 10. their schemes and plans suits to all the categories of customers.62 28.00) 54 % 16.67) 15 (5. BSNL.17 BRAND & OCCUPATIONAL STATUS CLASSIFICATION .28 14.67) 18 (6.67) 11 (3. Reliance and Vodafone are very popular among those customers who are separated. recharge cards with lowest denominations etc. Almost all the brands are popular among those customers who are single but Airtel.33) 12 (4.24 16.00) 14 (4.33) 6 (2.86 9.27 16.00 IDEA 14 (4.00) 10 (3.00) 50 % 19.60 19.18 14.29 21. So. Airtel and BSNL are popular in almost all the categories of customers with different marital status i.18 26. recharge cards with lowest denominations etc. The reason could be same as what the separated have stated. The reason may be that these brands are providing those schemes suited to their different classes of customers like low tariff plans.95 18.52 6.59 20.05 25.22 19.58 18.67) 57 % 19.67 42 14.44 20.90 18. Table 3.67) 4 (1.67) 7 (2.70 13.71 10. Those who are married have more number of idea providers (18) and least number of airtel (7).33) 16 (5. Idea and Reliance are most popular.00) 8 (2.33 VODAFONE 10 (3.33 14.33) 12 (4.33 68 22.29 16. low tariff plans.00) 7 (2.AIRTEL SINGLE MARRIED SEPARATED DIVORCED WIDOW TOTAL 14 (4. BSNL. Among divorced group.00) 11 (3.33 TATA INDICOM 9 (3.47 14.00) 8 (2.33) 44 % 13.98 16.67 TOTAL 73 % 24.16 which shows that those single have more number of connection (14) and less number of Tata Indicom connection (9).00) 6 (2.67) 10 (3.00) 7 (2.81 11.67) 8 (2. 11 Idea and just 8 Tata Indicom indicom connections.e. it is clear that Airtel.33 300 100.00 BSNL 12 (4.33) 9 (3. Reliance and Vodafone are very popular brands among those customers whose marital status is separated. Idea and Tata Indicom indicom are very popular amongst married customers and Airtel is very popular amongst divorced and widow category of customers. 12 Reliance & Vodafone.00) 12 (4.60 13. 15 BSNL.67 13. That widow group has more number of Reliance connections (11) & least number of Idea connections.

33) 6 (2.23 21.41 BSNL 12 % 24.33) 5 (1.22 10.67 16.00 10.OCCUPATION AIRTEL EXECUTIVE UNEMPLOYEE PROFESSIONAL STUDENT SERVICE OTHERS TOTAL 16 (5.33) 6 (2.62 26.24 % 14.00) 11 (3.33 17.00) 11 (3.18 BRAND & INCOME LEVEL CLASSIFICATION INCOME AIRTEL < 5000 10 % 20.00) 4 (1.67 18.33 13.95 14.14 % 10.33 30 10.33) 50 16.55 TATA INDICOM 6 (2.67) 13 (4.00 14.05 42 14.32 13.33 % Source: Questionnaire To understand the association between the occupational status and brand possession data presented in table 3.38 16.33) 4 (1.00) 12 (4. Airtel is very popular amongst the respondents who are executives and who are in service category.00) 3 (1.33) 40 13.00) 11 (3.67) 8 (2. Table 3.82 IDEA 9 (3. Reliance is seen popular amongst others category which includes rickshaw walas.33 30.67) 6 (2.34 % 29.33 RELIANCE 7 BRAND % 14.17 is analyzed.67) 8 (2.29 20.27 TOTAL 55 18.67 15.33) 6 (2.33 % 7.97 % 16.00) 6 (2.36 BRAND RELIANCE 8 (2.49 IDEA 8 % 16.33) 55 18.00 100.67) 6 (2.29 TATA INDICOM 9 % 18.97 % 21.37 VODAFONE 3 % 6.51 8. The reason may be that the brands and their schemes suits to their requirements.91 VODAFONE 4 (1.00) 14 (4.00) 7 (2.00 13.97 16.10 24.22 16.67 10.79 78 26.67) 15 (5.11 20.67) 17 (5.33) 4 (1.33 9.51 37 12.00 18.67) 5 (1.00) 7 (2.67) 10 (3. vegetable vendors etc. Tata Indicom is popular amongst unemployed category and Vodafone is popular amongst service category. Idea seems too popular amongst those who are in service category followed by unemployed category.00 21.09 BSNL 12 (4.33) 9 (3.52 19.00) 16 (5. BSNL seems to be equally popular among all the categories of occupations.34 58 19. It is found that almost all the brands are popular in respondents who are in service category followed by unemployed category.12 TOTAL 49 % .00) 54 18.00 24.00) 4 (1.67) 44 14.52 8.67) 3 (1.67 300 19.00) 8 (2.33) 57 19.00 9.

21 6. Those respondents whose income is between Rs. Those respondents.67 19.19 which shows that . BSNL seems to be equally popular in all the income categories.67 53 17.93 (2.33) 7 (2.3.67 300 100.33) 4 (1. 10.33) 6 (2.33) 13 (4.58 16.33 10.18 19.00) 8 (2.00) 5 (1.67) 40 9.22 (4. 25. BSNL is best suited to all the respondents of all income groups followed by Airtel.53 18.000.33) 55 11. 5000 income level have more BSNL (12) brand and least i.00) 13 (4.83 16.96 (2.67) 7 (2.33) 54 25.00 26. 15.00 % 55.67) 13 (4.33) 3 (1.55 18.26 (1.00 15. 20.00 18. whose income is between Rs.67 20.67) 70 52. 10.67) 12 (4.75 14.33) 57 22.33) 10 (3.001 to Rs.19 NATURE OF SCHEME & GENDER LEVEL CLASSIFICATION GENDER MALE FEMALE TOTAL PREPAID 77 (25.70 21.00) 9 (3.61 (29.33) 141 % 46.33) 50 12. have more Airtel brand and least Vodafone brand.00) 10 (3.67) 7 (2.000 have Reliance at the top and Idea at the bottom.67) 44 16.67) 4 (1.87 16.33) 11 (3.33 18.39 47.20001 to Rs 25000. Those respondents whose income is between Rs.00 16.5001 to Rs.00) 14 (4.09 13. Those respondents whose income is between Rs.67) 10 (3.67) 64 (21.00 12.00 20. Reliance brand is found more and Tata Indicom the least and those above Rs.67 13.67 24.67) 6 (2.001 to Rs 20.000 also have more BSNL brand and least Tata Indicom indicom brand (5).50 48 16.00 13.00) 8 (2.33) 159 53.75 14.00 NATURE OF SCHEME POSTPAID % 89 53.33 Source: Questionnaire The nature of scheme & gender is cross tabulated in table 3.33) 8 (2.33 15. Table .33) 8 (2.000.00) 10 (3.70 18.33) 6 (2.52 54 18. it is seen that those with less than Rs.24 (23.67) 4 (1.06 13.33) 12 (4. Reliance and Vodafone are popular in the income group of Rs. Idea.67 300 100.001 to Rs. 3 Vodafone brand.00 7.33) 14 (4.001 have more Tata Indicom brand and least BSNL brand.25. It is clear that Airtel.76 47.15 66 22.00) 5 (1.18.21 19.500110000 1000115000 1500120000 2000125000 > 25001 TOTAL (3.00 TOTAL 166 134 44.00) 4 (1.33 Source: Questionnaire From the table 3.e. 15. Tata Indicom indicom is popular among those respondents whose income is below Rs 5000.33 30 10.00 20.67 18.11 (3.

00 1000115000 12 (4.02 15.67) 42 14.3.33 500110000 32 (10.32 10.00) 25 (8.00 >30000 16 (5.00 INCOME 1500120000 24 (8.67) 58 19.00) 19 (6.00 % Source: Questionnaire Table 3.00) 49 % 17.84 18. Table -3.33 11.00) 48 % 17.64 STUDE NT 18 (6.00) 24 (8. It is clear from the table that post paid is dominating among both the genders i.00 100.67) 22 (7. Amongst students and others category.00) 48 (16.51 11.67) 34 (11.00 Source: Questionnaire To find the association between nature of scheme and the income level of . Table .70 13.00 53. unemployed and service category of occupation.48 TOTAL 141 47.33) 55 18.33) 37 12.00 % 13.24 % 20. The pre paid and post paid connection are very popular amongst executives.09 16.33) 66 % 22.27 TOTAL 141 159 300 % 47. On an aggregate post paid scheme is popular in almost all the occupational level of the respondents as it suits to their requirements.70 21.43 % 10.00) 78 26.33 15.33) 37 (12.00) 30 10.00) 30 % 8. male and female respondents whereas prepaid connection is more popular among male gender than female gender.20 NATURE OF SCHEME & OCCUPATION LEVEL CLASSIFICATION NATURE OF SCHEME PREPAID POST PAID TOTAL OCCUPATION EXECUT IVE 30 (10.28 OTHERS 19 (6.33) 54 % 22.00 2000125000 32 (10. The post paid connection is dominating among male and female genders.33) 24 (8.38 22.00 9. On an aggregate pre paid and post paid are popular among both the genders.09 16.00 30.57 PROFESSI ONAL 15 (5. The reason may be that they have selected according to their requirements.33) 53 % 11. post paid is dominating.95 % 12.54 percent male & 52 percent female members have post paid connection whereas 48 percent female & 46 percent male have prepaid connection respectively.00) 15 (5.47 159 53.00 100.20 depicts the association between nature of scheme and occupational level of the respondents.28 UNEMPLO YED 29 (9.73 15.19 % 21.33 18.21 NATURE OF SCHEME & INCOME LEVEL CLASSIFICATION Bhagath 25001 – 3000 ka column nahi hai NATURE OF SCHEME <5000 PREPAID POST PAID TOTAL 25 (8.00 300 14.67) 29 (9.33) 23 (7.35 23.e.77 SERVICE 30 (10.00) 18 (6.72 % 21.

Table 3.00 53.e.18 13.50 15.26 23. 10000 and Rs.27 14.67) 22 (7. 5001 to Rs. It is found that pre paid connection is popular amongst those respondents whose income is between Rs. 20001 to Rs. 25000 and above Rs.33) 68 % 30.31 TOTAL 141 % . It is also seen that there is no much difference in selecting the nature of connection/ scheme among all the categories of marital status.11 25.00 WIDOW 6 (2.24 NATURE OF SCHEME & EDUCATION LEVEL CLASSIFICATION NATURE OF SCHEME SECONDARY PREPAID 40 % 28. The reason could be that they have selected as per their requirements.20001 to Rs.33) 40 (13.00) 37 (12.33 TOTAL 141 159 % 47.30000. 25000 whereas post paid connection is popular among high income group i.37 HIGHER SECONDARY 30 % 21.23 NATURE OF SCHEME & MARITAL STATUS CLASSIFICATION NATURE OF SCHEME PREPAID POST PAID TOTAL Source: Questionnaire SINGLE 38 (12.33 MARRIED 43 (14.67 SEPARATED 34 (11.73 PROFESSIONAL QUALIFICATION 23 % 16.67 MARITAL DIVORCE 20 (6.84 14.67) 73 % 26.28 EDUCATION GRADUATION 23 % 16. separated and single.72 22.33) 43 % 4.00 300 100. cross tabulation is done to analyze. Therefore it is clear that pre paid and post paid connections are popular among those who are single and those who are separated.31 POST GRADUATION 25 % 17.01 24.3. Therefore marital status does not effect much to the respondents to choose between pre paid and post paid connections (6% difference between post paid and pre paid which is negligible).33) 74 % 24.95 22.67) 35 (11.00 To know the association between nature of scheme and the marital status.33) 42 % 14. between Rs. Table .the respondents data presented in the form of cross tabulation is analyzed.33) 25 (8. married and separated whereas post paid connection is popular amongst those respondents who are widow.16 24. It is observed from the table that the pre paid connection is very popular amongst those respondents who are single.

The calculated value is less than the table value. On an aggregate pre paid and post paid connection are popular among all the categories of educational level as seen from the negligible difference of 6 per cent between them.25 Source of variation Between Brands Within nature of scheme Total ANOVA BETWEEN BRAND & NATURE OF SCHEME Sum of df Mean F Sig. cross tabulation between them is drawn.16 (8. They have chosen the connection as per their requirements.00 22.33) 30 10.45 (7.731 To test the hypothesis that.67 31.00 25.67) 7 (2. The table value of F at 5% level of significance is 4. . there is no association between brands and type of connection. It is seen that pre paid connection is popular among those respondents who completed secondary connection schooling is and higher secondary education whereas post as paid as popular among higher secondary respondents well graduates.33) 27 (9.67) 40 (13.00 Source: Questionnaire In order to analyze the association between nature of scheme and education level of the respondents. It can be concluded that the effects of the different types of connection which cause variation in selection of a brand are the same.e. TABLE 3.000 243.00 100.600 40. Those with professional qualification certificates preferred pre paid to post paid may be due to have control over their monthly bills. The calculated value of F at 5% level of significance for (5.(13.00) 50 (16.500 .558.33) POST PAID TOTAL 35 (11. “there is no association between brands and type of connection”.67) 75 25.00 53.00 300 4.558 .33) 63 21.01 (10. Therefore the hypothesis is accepted i. Squares Square 113.00) 52 17.000 356.39.98 (7.000 5 6 11 22.40 159 47.33 16. Those respondents who possess post graduation certificates preferred post paid to pre paid so as to enjoy the services of having a mobile phone. 6) degrees of freedom is 0.67) 80 26. One-way analysis of variance (ANOVA) is used.

28 ANOVA BETWEEN BRAND & EDUCATION Sum of df Mean F Sig. 6) degrees of freedom is 0.000 df 5 6 11 Mean Square 22.345. The table value of F at 5% level of significance is 4. Therefore the hypothesis is accepted i.425 Sig.345 Sig. The calculated value of F at 5% level of significance for (5. The calculated value is less than the table value.62. One-way analysis of variance (ANOVA) is used.27 ANOVA BETWEEN BRAND & AGE Source of variation Between Brands Within Age groups Total Source: Questionnaire Sum of Squares 45. there is no association between brands and age.000 df 5 24 29 Mean Square 9.425. TABLE 3.600 53.TABLE 3.200 F .040 26. The table value of F at 5% level of significance is 2. It can be concluded that the effects of the different genders which cause variation in selection of a brand are the same.e. The calculated value is less than the table value. TABLE 3.817 To test the hypothesis that. Therefore the hypothesis is accepted i. “there is no association between brands and age”. “there is no association between brands and gender”. .167 F .39.200 628.800 674.000 432.e.26 ANOVA BETWEEN BRAND & GENDER Source of variation Between Brands Within Gender Total Source: Questionnaire Sum of Squares 113. 24) degrees of freedom is 0. Squares Square Source of variation .000 319. The calculated value of F at 5% level of significance for (5. One-way analysis of variance (ANOVA) is used.880 To test the hypothesis that. there is no association between brands and gender. It can be concluded that the effects of the different age groups which cause variation in selection of a brand are the same. .

It can be concluded that the effects of the different education level which cause variation in selection of a brand are the same.831 Source of variation Between Brands Within Occupation Total Source: Questionnaire To test the hypothesis that. “there is no association between brands and education”. Table 3.Between Brands Within Education Total Source: Questionnaire 45.533 .387 .910 5 30 35 7.e. there is no association between brands and marital status.200 348.420 .684 Source of variation Between Groups Within Groups Total Source: Questionnaire To test the hypothesis that.622 . Therefore the hypothesis is accepted i.30 ANOVA BETWEEN BRAND & OCCUPATION Sum of df Mean F Sig. One-way analysis of variance (ANOVA) is used. “there is no association between brands and marital status”. “there is no association between brands and occupation”. The calculated value is less than the table value.62.674 18.542 585.800 606. The calculated value of F at 5% level of significance for (5. . 24) degrees of freedom is 0. It can be concluded that the effects of the different marital status groups which cause variation in selection of a brand are the same.800 394.853 To test the hypothesis that. Table 3. The calculated value of F at 5% level of significance for (5. One-way analysis of variance (ANOVA) is used. The calculated value is less than the table value.200 560.368 547.040 14. there is no association between brands and education.622.387.367 . 24) degrees of freedom is 0. The table value of F at 5% level of significance is 2.251 . Squares Square 38. The table value of F at 5% level of significance is 2.040 23.62. Therefore the hypothesis is accepted i.29 ANOVA BETWEEN BRAND & MARITAL STATUS Sum of df Mean F Sig. Squares Square 45.000 5 24 29 9.e.000 5 24 29 9.

53.078 370. The calculated value of F at 5% level of significance for (5. 30) degrees of freedom is 0. The table value of F at 5% level of significance is 2.One-way analysis of variance (ANOVA) is used.680. Table 3.680 Sig .642 To test the hypothesis that. there is no association between brands and occupation. there is no association between brands and income.53.000 35 Source of variation Between Brand Within Income Total Source: Questionnaire F . It can be concluded that the effects of the different occupation groups which cause variation in selection of a brand are the same. The calculated value is less than the table value.31 ANOVA BETWEEN BRAND & INCOME Sum of df Mean Square squares 37.667 5 7.e. Therefore the hypothesis is accepted i.420.533 332. The table value of F at 5% level of significance is 2. . The calculated value is less than the table value. It can be concluded that the effects of the different income groups which cause variation in selection of a brand are the same. “there is no association between brands and income”.e. The calculated value of F at 5% level of significance for (5.333 30 11. 30) degrees of freedom is 0. One-way analysis of variance (ANOVA) is used. Therefore the hypothesis is accepted i.

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