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-Introduction to Indian Telecom Industry -Conceptual framework -Review of literature -Objectives of research

-Research Methodology
- References


Given the growing competition in the global market, it is becoming increasingly important for companies to retain their existing customers, that is, to preempt frequent switching. A fruitful way of gaining knowledge about customers' switching behavior is to examine the role of various factors in their switching processes. This qualitative study, based on data from telecom operators, offers new insights by identifying and defining the role of prejudice in customers' rationale for leaving one telecom operator in favor of another. The research also identifies whether the customers are actively or passively engaged in the switching process, which seems to be important in terms of linking prejudice to frequent switching. The findings have important implications for the successful management of customer relationships because they point to instability in customer populations.

Introduction to Indian Telecom Industry
• The Indian Telecom sector is third largest network in the world. • Subscriber numbers have already crossed 250 million. • Average growth rate of over 40% in respect of subscribers. • Monthly additions of above 7 million phones. • Growth impetus from wireless segment with 84% wireless and 16% wired. • National tele-density at 26%.

• Rural tele-density stands at 7%, while the urban at 57%. • Further access is provided by 54 lakh PCOs and 5 lakh VPTs. • 9 million Internet and 2.5 million broadband subscribers. • More than a thousand cities have been provided with broadband connectivity out of a total of five thousand cities.

Conceptual framework
In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. It plays a vital role in every organization so that customers keep on allied with the organization. The purpose of study is basically to understand why customer change service provider of their mobile network. Customer satisfaction, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.[1] However, the importance of customer satisfaction diminishes when a firm has increased bargaining power. For example, cell phone plan providers, such as AT&T and Verizon, participate in an industry that is an oligopoly, where only a few suppliers of a certain product or service exist. As such, many cell phone plan contracts have a lot of fine print with provisions that they would never get away if there were, say, a hundred cell phone plan providers, because customer satisfaction would be way too low, and customers would easily have the option of leaving for a better contract offer.

Review of Literature
Switching had been investigated extensively in literature. It is argued that switching is related to poor service quality in banks (Benkenstein and Stuhlreier, 2004); reaction to high price (Gerrard and Cunnininggham, 2004); and customer satisfaction (Bowen and Chen, 2001).Some other researchers, however, had different argument. There is an argument in literature of the benefits of switching cost to prevent consumers from switching service providers (Ganesh, Arnold and Reynolds, 2000; Keaveney and Parthasarathy, 2001).

A consumer must be aware that he can switch service providers before he takes steps. The next step is to decide whether to search and then whether to switch. The effect of customers’ defection or switching could be significant on revenues and service continuity. Furthermore, a number of factors have been identified in literature as determinants of switching costs some of these are: poor service quality (Yavas, Benkenstein and Stuhldreier, 2004); price (Gerrard and Cunningham, 2004); customer dissatisfaction (Bowen and Chen, 2001). Research evidences indicate that customers can stay with a service provider when they

perceived the service quality to be high and behave conversely when the service is perceived to be low (Keaveney, 2001; Jones and Sasser, 1995). Roos, Edvardsson and Gustafsson (2004) and Gerrard and Cunningham (2004), however found that price has an overwhelming effect on switching cost in insurance and banking industries. Brand trust is also found to increase customers’ commitment and this makes customers’ propensity to switch weaker (Morgan and Hunt, 1994) investigation in cross- industry indicate that

switching cost such as monetary loss and uncertainties with the new service provider deter consumers from switching to other service providers despite dissatisfaction. Reference and peer group expectations, norms and pressure for conformity could also discourage customers from switching through peers, expectation, norms and conformity (Yi and Jeon, 2003).This present study is based on the subscription market. Consumers subscribe to mobile services with no initial intention to switch, and they are expected to remain loyal until some factors trigger them to switch. It appeals to reason to suggest that customers loyalty is should be highly influenced by customer satisfaction. This is because customers with higher satisfaction tend to use the service continuously. However, studies showed that customer satisfaction is not enough to explain customer retention despite the fact that it is an important factor in customer

retention (Anderson, 1994; Jones et al. 2002).Therefore, the transition from loyalty to switching is determined by changes in the numerous underlying factors. Based on the above the following is proposed:

Objectives of research
The subject matter for this research Project is to study the customer’s preference towards the various mobile service providers in Indore. This project consists of different objectives. They are as follows: 

To know about the customer preference level associated while switching to different mobile service providers.

  

To find out the customer satisfaction towards the various service providers.

To find out the obstacles while switching to different mobile service providers.

To find out the factors considered by customer while switching to different mobile service providers.

Research methodology
Survey design:
The study is a cross sectional study because the data shall be collected at a single point of time. For the purpose of present study a related sample of population was selected on the basis of convenience.

Sample Size and Design:
A sample of 102 people shall be taken on the basis of convenience. The actual customers shall be contacted on the basis of random sampling.

Research Period:
Research work shall be carried for about 4 weeks.

Area of the study:
This study covers Indore city only.

Research Instrument:
This work shall be carried out through self-administered questionnaires. The questions included were closed ended, dichotomous and multiple choices.

Data Collection:
The data, which shall be collected for the purpose of study, is divided into 2 bases:   Primary Source: The data shall be collected directly from respondent with the help of structured questionnaires. Secondary Source: The secondary data was collected from internet and references from Library.

Tools for analysis:
Along with the usual statistical tools such as tables, percentages, bar charts, pie charts , we shall be use for analyzing the data and arriving at the conclusion

Business Intelligence Journal - January, 2010 Vol.3 No.1(Page no-112 ,113) BY: Oyeniyi O. J., Abiodun A. J. - Switching Cost and Customers Loyalty in the Mobile Phone Market: The Nigerian Experience Anderson, R. E. (1973), ‘Consumer Dissatisfaction: The Effect of Disconfirmed Expectancy on Perceived Product Performance,’ Journal of Marketing Research,10(1):38-44 Berne, C., and Mugica, J. M. and Yague, M. J. (2001), ‘The Effect of Variety-seeking on Consumer Retention in Services,’ Journal of Retailing and Consumer Services, 8:335-345 Bowen, J. T, and Chen, S. L. (2001), ‘The Relationship Between Customer Loyalty and Customer Satisfaction,’ International Journal of Contemporary Hospitality Management, 13 (4/5):213-217 Ganesh, J., Arnold, M. J. and Reynolds, K.E. (2000), Understanding the Customer Base of Service Providers: An Examination of the Differences between Stayers and Switchers, Journal of Marketing,64(3):65-87 Gerrard, P. and Cunninham, J. B. (2004), ‘Consumer Switching Behaviour in the Asian Market,’ Journal of Services Marketing, 18(3): 215-223

Jackson, B. B. (1985), ‘Building Customer Relationship,’ That Last Harvard Business Review, Nov/Dec:120-121 Keaveney, S. M. (2001), ‘The Relationship between Customer Loyalty and Customer Satisfaction,’ Journal of Marketing, 13(2):71-82 Keaveney, S. M., and Parthasarathy, M. (2001), Customer Switching Behaviour in Online Services: An Exploratory Study of the Role of Selected Attitudinal, Behaviour, and Demographic Factors, Journal of Academy of Marketing Science, 29(4): 374-390 Morgan, R. M. and Hunt, S. D. (1994), ‘The Commitment-trust Theory of Relationship Marketing, Journal of Marketing, 58(3):20-38 Yavas, U., Benkenstein, M., and Stuhldreier, U. (2004), ‘Relationships between Service Quality and Behavioural Outcomes: A Study of Private Bank Customers in 2009 121 Germany,’ The International Journal of Bank Marketing: 22(2/3), 144-157 Yi, Y., and Jeon, H. (2003), ‘Effects of Loyalty Programmes on Value Perception, Programme Loyalty, and Brand Loyalty,’ Journal of the Academy of Marketing Science, 31(3):229-240

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1)Which cellular operator service are you using currently? o BSNL o IDEA o TATA INDICOM o RELIANCE o AIRTEL

2)Have you ever changed your cellular operator? o YES o NO

3)How frequently do you switch your cellular operator service? o Every few days o Every month o Once in 6 months o Once in a year o Never

4)Which factor lead you to switching from your previous cellular operator service to your current cellular operator service? o Bad network service o Bad value added services o Bad customer care service o Some other reason

5)Are you satisfied with the cellular Operator service you are currently using?

o Yes o No

6)Since how long have you been using your current cellular operator service? o Since a few days o A month o Since 6 months o Since a year o Don’t remember

7)Why do you find your current cellular operator service better than the one

you were using previously? o Better network service o Best/better value added services o Excellent customer care service o Some other reason

8)What facilities do you want your cellular service operator to provide you with? o Better network o More better value added services o Better customer care service o Any other facility

9)Does any one in your family/friends or colleagues also frequently switch their cellular operator services? o Yes o No 10)Are you going to switch to another cellular operator service again in some time? o Yes o No CONCEPTUAL FREMEWORK

In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. It plays a vital role in every organization so that customers keep on allied with the organization. The purpose of study is basically to understand why customer change service provider of their mobile network.

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