Study of Consumer Buying Behaviour Towards Mobile Pre | Telecommunications | Internet

STUDY OF CONSUMER BUYING BEHAVIOUR TOWARDS MOBILE PRE-PAID PRODUCTS AND HANDSET MODELS

A REPORT SUBMITTED TO ACCURATE INSTITUTE OF MANAGEMENT AND TECHNOLOGY, GREATER NOIDA AS A MANDATORY PART OF PDGM CURRICULUM

SUBMITTED TO: PGP CELL AIMT, GREATER NOIDA

SUBMITTED BY: MANISH KUMAR SAHOO DM0847 2008-10

ACCURATE INSTITUTE OF MANAGEMENT & TECHNOLOGY 49, KNOWLEDGE PARK-III, GREATER NOIDA, (U.P.) 201308 E-MAIL: pgpcell@accurate.in

CERTIFICATE
This is to certify that the project report study of “CONSUMER BUYING BEHAVIOR TOWARDS MOBILE PRE-PAID PRODUCTS AND HANDSET MODELS” submitted to ACCURATE INSTITUTE OF MANAGEMENT & TECHNOLOGY, GREATER NOIDA by MANISH KUMAR SAHOO in partial fulfillment of the requirement for the award of post graduate diploma in management is an original work carried out by the below mentioned student under the guidance and supervision of the below mentioned guide. This work has not been submitted anywhere else for any degree/diploma under my signature. The original work was carried out during 1ST MAY TO 30TH JUNE 2009 in RELIANCE COMMUNICATION Signature of the student: _______________________________________ Name of the student: ___________________________________________ Dated: ______________________________ Signature of the Industry Guide: _____________________________________________ Name of the industry Guide: ________________________________________________ Designation of the Industry Guide: ___________________________________________ E-mail Address: __________________________________________________________ Mailing Address: _________________________________________________________

Dated: __________________

Seal/Stamp of the Organization

Signature of the faculty supervisor: ____________________________________________ Name of the faculty supervisor: _______________________________________________ Dated: ______________________________

ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of any task would be incomplete without the mention of the people who made it possible and constant guidance and encouragement of them heads all efforts with success If words are considered to be signs of gratitude, then let these words convey the very same my sincere gratitude to the entire team of RELIANCE COMMUNICATION for providing me with an opportunity to work with the organization and giving me necessary directions on doing this project to the best of my abilities. I wish to express my deep sense of gratitude to my project mentor Mr. Prasanjit Das Senior Manager at Reliance Communication and Mr. Abhishek Roy Marketing executive for guiding me through this whole project and also smoothened most hurdles that I faced during the course of the project. My special thanks to Mr. Latil Surin Marketing executive for his kind support to make this project successful. I would also like to express my thanks to my project guide Prof. Nidhi Khurana of Accurate Institute of Management and Technology Grt. Noida for guiding me throughout the project. Finally, yet importantly, I would like to express my heartfelt thanks to my beloved parents for their blessings, my friends/classmates for their help and wishes for the successful completion of this project.

And to God, who made all things possible.

DECLARATION

I, Manish Kumar Sahoo, do hereby declare that this report entitled: “CONSUMER BUYING BEHAVIOR TOWARDS MOBILE PRE-PAID PRODUCTS AND HANDSET MODELS” has been carried out by me under the guidance of “Prof. Nidhi Khurana”, professor in Marketing, at ACCURATE INSTITUTE OF MANAGEMENT & TECHNOLOGY, GREATER NOIDA. The project is completed as per the norms prescribed by the Accurate Management Centre and the same work has not been copied from any source directly without acknowledging for the part/section that has been adopted from published/non –published works. I further declare that the information presented in this project is true and original to the best of my knowledge.

Date: Place Manish Kumar Sahoo AIMT, Grt Noida

EXECUTIVE SUMMARY

The concept of “buying behavior” is of prime importance in marketing and has evolved over the years. It is important to understand consumer buying behavior as it plays a vital role in creating an impact on purchase of products. The human wants are unlimited and always expect more and more. Mobile pre-paid products and Mobile handsets are no exception to this behavior. This lead to constant modifications of Mobile pre-paid products and mobile handsets and today we see lots of pre-paid products and new handset coming into the market practically every month. In this research study my findings gave me a through insight of consumer buying behavior towards mobile pre-paid products and handset models. I found that consumers consider various parameters while buying a mobile operator and mobile handsets. Factors such as better connectivity, attractive tariff and low entry cost plays an important role in influencing a customer for opting any network similarly price, functions availing and long battery backup are considered very important factors for a customer before buying a handset model. The study also helps me to know what are the major factors of dissatisfaction among the people after using a mobile operator. On the whole, the market is a very important place to study the behavior of consumers and also Provide useful insights what a consumer requires in a product. It is only through research that an Company will be able to study the buying behavior of consumers.

INTRODUCTION

INDIAN TELECOM SCENARIO- AT A GLANCE The Indian Telecommunications network with 429.72 million for the quarter ending March 2009 is the fifth largest in the world taking the teledensity up to 36.98 and is the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for U.S. companies in the stagnant global scenario. The total subscriber base is expected to reach 500 million by next year. India had 109.7 million rural mobile subscribers at the end of the first quarter, up by 18 percent from 93.2 million users in the fourth quarter of last year. Despite the global economic slowdown India’s mobile phone market continues to be unaffected by the economic slowdown, with 11.9 million new mobile subscribers in April 2009. That’s a 45 percent greater increase than in the same month last year. The wireless technologies currently in use are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country. List of GSM operators operating in INDIA. 1 Bharti Airtel 2 Vodafone Essar 3 BSNL 4 IDEA 5 Aircel 6 Reliance Telecom 8 MTNL 9 BPL EVOLUTION OF THE INDUSTRY-IMPORTANT MILESTONES History of Indian Telecommunications List of CDMA operators operating in INDIA. 1. Tata teleservices 2. Reliance CDMA 3. Virgin

Year 1851 First operational land lines were laid by the government near Calcutta (seat of British power) 1881 1883 1923 1932 Telephone service introduced in India Merger with the postal system Formation of Indian Radio Telegraph Company (IRT) Merger of ETC and IRT into the Indian Radio and Cable Communication Company (IRCC) 1947 Nationalization of all foreign telecommunication companies to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications 1985 Department of Telecommunications (DOT) established, an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system) 1986 Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas. 1997 Telecom Regulatory Authority of India created.

1999

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

2000

DoT becomes a corporation, BSNL

Telecommunication market: TM and TAM revenue forecasts (India), 2003-2015

MAJOR PLAYERS IN TELECOM INDUSTRY BSNL: Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five years it has become one of the largest public sector unit in India. BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet Customers who access Internet through various modes viz. Dial-up, Leased Line, DIAS, Account Less Internet(CLI). BSNL has been adjudged as the NUMBER ONE ISP in the country. Scaling new heights of success, the present turnover of BSNL is more than Rs.351,820 million (US $ 8 billion) with net profit to the tune of Rs.99,390 million (US $ 2.26 billion) for last financial year. The infrastructure asset on telephone alone is worth about Rs.630,000 million (US $ 14.37 billion).

BHARTI AIRTEL: Established in 1985, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit, ranging from being the first mobile service in Delhi, first private basic telephone service provider in the country, first Indian company to provide comprehensive telecom services outside India in Seychelles and first private sector service provider to launch National Long Distance Services in India. Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti’s operations are broadly handled by two companies: the Mobility group, which handles the mobile services in 16 circles out of a total 23 circles across the country; and the Infotel group, which handles the NLD, ILD, fixed line, broadband, data, and satellite-based services. Together they have so far deployed around 23,000 km of optical fiber cables across the country, coupled with approximately 1,500 nodes, and presence in around 200 locations. Consolidate its position to be the leading integrated telecommunications services provider in key markets in India, with a focus on providing mobile services”.

TATA TELESERVICES: Tata Teleservices is part of the Tata Group. Tata Teleservices spearheads the Group’s presence in the telecom sector. Incorporated in 1996, Tata Teleservices was the first to launch CDMA mobile services in India with the Andhra Pradesh circle. The company acquired Hughes Telecom (India) Limited [now renamed Tata Teleservices (Maharashtra) Limited] in December 2002. With a total Investment of Rs 19,924 Crore, Tata Teleservices has created a Pan India presence spread across 20 circles that includes Andhra Pradesh, Chennai, Gujarat, J & K, Karnataka, Delhi, Maharashtra, Mumbai, North East, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar

Pradesh (W), Kerala, Kolkata, Madhya Pradesh and West Bengal. The company is the market leader in the fixed wireless telephony market with a total customer base of over 3.8 million.

RELIANCE COMMUNICATION: Reliance Communications (formerly Reliance Infocomm), along with Reliance Telecom and Flag Telecom, is part of Reliance Communications Ventures (RCoVL). It is an Indian telecommunications company. According to National Stock Exchange data, Anil Dhirubhai Ambani controls 66.77 per cent of the company, which accounts for more than 1.36 billion shares. It is the flagship company of the Reliance-Anil Dhirubhai Ambani Group, comprising of power (Reliance Energy), financial services (Reliance Capital) and telecom initiatives of the Reliance ADAG. It uses CDMA2000 1x technology for its

existing CDMA mobile services, and GSM-900/GSM-1800 technology for its existing/newly launched GSM services. RelCom is also into Wireline Business throughout India and has the largest optical fiber communication (OFC) backbone architecture [roughly 110,000 km] in the country. On the 30th December 2008, Reliance Communications became the first telecom operator in the history of Indian telecommunications to simultaneously launch its GSM services in 17 circles, namely Andhra Pradesh, Chennai, Delhi, Gujarat, Haryana, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh (excluding East Madhya Pradesh and Chhattisgarh ), Maharashtra, Mumbai, Punjab, Rajasthan, Sharjah, Tamil Nadu, Uttar Pradesh(East & West) thereby establishing itself as a pan-India operator.It already operates GSM services in 8 circles namely Assam, Bihar, Himachal Pradesh, Kolkata, Madhya Pradesh, North Eastern states, Orissa, West Bengal.

AIRCEL:

Aircel is a mobile phone service provider in India. It offer both prepaid and postpaid GSM cellular phone coverage throughout Tamil Nadu(including Chennai), Andhra Pradesh ,

Assam, North East India, Orissa, West Bengal (including Kolkata), Jammu and Kashmir, Bihar, Karnataka, Kerala, Himachal Pradesh & Mumbai. Aircel was founded by NRI businessman C Sivasankaran. Aircel is a joint venture between Maxis Communications

Berhad of Malaysia and Apollo Hospital Enterprise Ltd of India. It is India’s seventh largest GSM mobile service provider with a subscriber base of over 18 million. It has a market share of 6.3% among the GSM operators in the country. As on date, Aircel is present in 17 telecom circles (including Assam, Bihar, Himachal Pradesh, Jammu & Kashmir, Kerala, North East, Orissa, Tamil Nadu, Karnataka, West Bengal, Delhi) and with licences secured for the remaining 10 of the 23 telecom circles, the company plans to become a pan-India operator by 2009. Additionally, Aircel has also obtained permission from Department of Telecommunications (DoT) to provide International Long Distance (ILD) and National Long Distance (NLD) telephony services. It is also a category A ISP.

IDEA CELLULAR: Idea Cellular is a wireless telephony company operating in various states in India. It initially started in 1995 as a joint venture among the Tatas, Aditya Birla Group and AT&T by merging "'Wings Cellular'" operating in Madhya Pradesh, Uttar Pradesh (UP) West, Rajasthan and Tata Cellular as well as Birla AT&T Communications. Initially having a very limited footprint in the GSM arena, the acquisition of Escotel in 2004 gave Idea a truly pan-India presence covering Maharashtra, Goa, Gujarat, Andhra Pradesh (East and

Pradesh, Madhya

Pradesh, Chhattisgarh, Uttar

West), Haryana, Kerala, Rajasthan and Delhi (inclusive of NCR).

The company has its retail outlets under the "Idea n' U" banner. The company has also been the first to offer flexible tariff plans for prepaid customers. It also offers GPRS services in urban areas.

VODAFONE ESSAR: Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 23 telecom circles in India. Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India with good presence in the metros. Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 23 of the country's 23 license areas. It is among the top three GSM mobile operators of India. Vodafone Essar is owned by Vodafone 52%, Essar Group,33% and other Indian nationals, 15%.

VIRGIN MOBILE INDIA: Virgin Mobile India Limited is a cellular telephone service provider company which is a joint venture between Tata Teleservices and Richard Branson's Virgin Group. Currently, the company uses Tata's CDMA network to offer its services under the brand name Virgin Mobile, but it has also announced plans to foray into the GSM space as well. In May 2007, the Tata Group and the Virgin Group finalized plans to form a corporate vehicle through which the latter's mobile service could be launched in India. Since Mobile Virtual Network Operators are not permitted to operate in India due to the current regulations prevailing there, a 50:50 joint venture model was adopted.

Virgin Mobile was officially launched on March 2, 2008.

THE COMPANY
RELIANCE COMMUNICATIONS AT A GLANCE Reliance Communications is the flagship company of the Anil Dhirubhai Ambani Group (ADAG) of companies. It is listed on the National Stock Exchange and the Bombay Stock Exchange, and is India’s leading integrated telecommunication company with over 80 million customers. The business encompasses a complete range of telecom services covering mobile and fixed line telephony. It includes broadband, national and international long distance services and data services along with an exhaustive range of value-added services and applications wih a constant endeavour to achieve customer delight by enhancing the productivity of the enterprises and individuals. It is ranked among Asia's 6 Topmost Valuable Telecom Companies and is India's foremost truly integrated telecommunications service provider. The company's customer base of over 31 million including close to 1 million individual overseas retail customers, and is rated among the Top 10 Asian Telecom companies. Reliance Communications corporate clientele includes 600 Indian and 250 multinational corporations, and over 200 global carriers. The company has established a pan-India, next generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting best-of-class services spanning the entire Infocomm value chain, covering over 6000 towns and 3,00,000 villages. Reliance Communications owns and operates World's largest next generation IP enabled connectivity infrastructure, comprising over 150,000 kilometers of fibre optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region. The company's

subsidiary, FLAG Telecom owns World's largest private undersea cable system, spanning 65,000 kilometers connects the top business centers in developed and emerging markets across 6 continents. Reliance Communications has interests in Direct To Home (DTH) TV also, known as "Big TV". It plans to launch its DTH business by July 2008. Once launched, RelCom will have presence across all B2C communications channel in one of the fastest growing markets in the world. On the 30th December 2008, Reliance became the first telecom company in India to operate in both CDMA as well as GSM technologies. VISION “We will leverage our strengths to execute complex global-scale projects to facilitate leadingedge information and communication services affordable to all individual consumers and businesses in India. We will offer unparalleled value to create customer delight and enhance business productivity. We will also generate value for our capabilities beyond Indian borders and enable millions of India's knowledge workers to deliver their services globally.” MISSION: • To attain global best practices and become a world-class communication service provider guided by its purpose to move towards greater degree of sophistication and maturity. • To work with vigor, dedication and innovation to achieve excellence in service quality, reliability, safety and customer care as the ultimate goal. • • To consistently achieve high growth with the highest levels of productivity. To be a technology driven, efficient and financially sound organisation.

• •

To contribute towards community development and nation building. To be a responsible corporate citizen nurturing human values and concern for society, the environment and above all, the people.

To promote a work culture that fosters individual growth, team spirit and creativity to overcome challenge and attain goals.

• •

To encourage ideas, talents and value systems. To uphold the guiding principle of trust, integrity and transparency in all aspects ofinterpretation and dealings.

BROAD OF DIRECTORS • • • • • Shri Anil D. Ambani - Chairman Prof. J Ramachandran Shri S.P. Talwar Shri Deepak Shourie Shri A.K.Purwar

CHAIRMAN'S PROFILE: ANIL DHIRUBHAI AMBANI

Regarded as one of the foremost corporate leaders of contemporary India,Shri Anil D Ambani, 48, is the chairman of all listed companies of the Reliance ADA Group, namely, Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources limited. He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and Communication Technology, Gandhi Nagar, Gujarat.

Till recently, he also held the post of Vice Chairman and Managing Director of Reliance Industries Limited (RIL), India’s largest private sector enterprise. Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the company’s management over the next 22 years. He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital markets. He spearheaded the country’s first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company in January 1997.

RELIANCE COMMUNICATION: THE JOURNEY TO SUCCESS

1999 The Dream, 1999 "Make a phone call cheaper than a postcard and you will usher in a revolutionary transformation in the lives of millions of Indians" - Dhirubhai Ambani The Reality, November 15 Reliance Infocomm begins Project Planning 2000 10-May Optic fibre laying process commences in Gujarat, Andhra Pradesh & Maharashtra 2001 1-May First Media Convergence Node made "Ready for Electronics" at Jaipur 2002 15-Jan First Base Transceiver Station (BTS) made "Ready for Electronics" 25-Feb Obtains International Long Distance License from Govt. of India 22-Dec Commissions 1st Optic Fibre Backbone ring 24-Dec

Establishes 1st Point of Interconnect (POI) in New Delhi 27-Dec Hon'ble Prime Minister of India, Atal Behari Vajpayee e-inaugurates Reliance Infocomm Hon'ble Union Minister for Parliamentary Affairs, Information Technology and Communications, Pramod Mahajan, inaugurates NNOC 2003 15-Jan Introduces Dhirubhai Ambani Pioneer Offer for Reliance IndiaMobile service 14-Feb Launches Reliance WebWorld in top 16 cities 31-Mar Launches International Long Distance Services 3-Apr Commissions all backbone rings 25-Apr Introduces colour handsets 1-May Launches Reliance IndiaMobile Service commercially in top 92 cities with one million customers. 10-Jun Launches India's first wireless Point of Sale (POS) 1-Jul Introduces "Monsoon Hungama" Offer: Instant multimedia mobile phone and connection for just Rs 501. Sets world record - acquires one million customers in 10 days 3-Jul Launches R Connect Internet connection cable 26-Aug Introduces Reliance IndiaPhone Fixed Wireless Phone and Terminal 20-Sep "Navratri" a data service in R-World posts a world record of 10 million downloads on the first day of the launch. 30-Sep R World clocks a phenomenal 1 billion hits in 1 month 6-Oct Launches integrated broadband centre at Reliance WebWorld, Bangalore 24-Oct Deploys pilot of Home Netway in Mumbai 30-Oct Reliance becomes India's largest mobile service provider within 7 months of commercial launch

3-Nov Customer base touches 5 million 12-Nov Migrates to Unified License Regime 16-Nov Launches National Roaming 21-Nov Launches International SMS to 159 countries launched 19-Dec Adds 4500th Contact Centre Executive Contact Centre becomes the largest such facility deployed by any single Indian Service Provider 2004 12-Jan International wholesale telecommunications service provider, FLAG Telecom amalgamates with Reliance Gateway, a wholly owned subsidiary of Reliance Infocomm 9-Feb Launches RIM Prepaid with attractive offer - For Rs 3500 get a Motorola C131 mobile phone and Rs 3240 worth of re- charge vouchers instantly and stay connected for 1 year 17-Feb Reliance subsidiary Flag Telecom announces FALCON Project - a major new Middle East Loop Terabits Submarine Cable System with links to Egypt and Hong Kong via India 22-Mar Reliance Infocomm launches multi-player gaming on RIM handsets - a first in India 5-Apr Reliance IndiaMobile introduces International Roaming facility to 172 countries, 300 networks 23-Apr Reliance Infocomm introduces first ever auction facility on Mobile phones through R World. 27-May Reliance Infocomm receives the Most Promising Service Provider of the Year 2003 (Asia Pacific) award at the Asia Pacific Technology Awards instituted by Frost &

Sullivan. 8-Jun Reliance Infocomm introduces World Card - a Prepaid International calling card for affordable and convenient ISD calls from India. 29-Jul Announces India's First MPLS Global VPN Solution in partnership with MCI 5-Aug Launches the first regional Customer Contact Centre in Chennai 6-Sep Mukesh D. Ambani, Chairman, Reliance Infocomm, receives Voice & Data "Telecom Man of the Year" award 9-Sep Introduces Railway Ticket booking from R World data applications suite of Reliance IndiaMobile 12-Oct Mukesh Ambani voted the world’s most infuential telecom person by UK-based publication Total Telecom. 19-Oct Reliance Infocomm bags the CDMA Development Group's 3G CDMA Industry Achievement Award for International Leadership. 2005 4-Jan Reliance introduces first e-recharge facility in CDMA in India. 24-Jan Reliance IndiaMobile announces mega rural plan to cover 4 lakh villages and 65 crore Indians by December 2005. 26-Jun Anil Ambani appointed Chairman of Reliance Infocomm 30-Jul Air Deccan and Reliance WebWorld join hands to offer air ticket booking facility at Reliance WebWorld 11-Aug XLRI's Post-Graduate Certificate programme in Logistics Supply Chain Management (PGCLSCM) launched on Reliance WebWorld's virtual classroom platform. first of its kind e-learning programme in India. 18-Aug Reliance Infocomm rolls out international roaming facility across several countries

to become the first Indian CDMA operator to offer its customers such a service.

6-Sep Reliance Infocomm tied-up with the Bombay Stock Exchange to make available live stock quotes on its mobile phones. 15-Sep Reliance Communications, UK launched Reliance IndiaCall service in England and Wales enabling callers to make high-quality calls to India from any landline or mobile phone at economical rates. 21-Sep Apollo Hospital and Reliance Infocomm join hands to provide top class healthcare service to millions of Indians in over a hundred Indian cities. 13-Oct Reliance WebWorld wins Frost & Sullivan Market Leadership Award for Video Conferencing services. 12-Nov Reliance Infocomm hosts the 4th global CDMA Operators Summit. 22-Nov Reliance Infocomm joins hands with Indian Airlines to offer India's first mobile booking of domestic airline ticket. 30-Nov Reliance Infocomm introduces MOREbile, redefines customer rewarding with 33 % more talk time on prepaid recharges of Rs 315 denomination and above and much more. 12-Dec Reliance Infocomm and China Telecom sign agreement for telecom services to provide direct telecommunication service, including a global hubbing service, to subscribers in the two countries. 2006 1-Jan Reliance Infocomm launches "One Nation, One Tariff" to enable Reliance IndiaMobile prepaid users to call anywhere in India at Re one per minute. 19-Jan

Reliance Demerger adds record Rs.55, 000 Crore to shareholder wealth 23-Jan TIMES NOW launched on Reliance Mobile Phones, making it the world’s first TV channel to be launched on a mobile phone. 6-Mar Reliance Communications Ventures Ltd. (RCVL), India's leading integrated telecommunications company, a member of the Reliance - Anil Dhirubhai Ambani group, lists on the Bombay Stock Exchange and National Stock Exchange. 21-Mar Reliance Infocomm introduces R World in Hindi to become the world's first operator to offer mobile data services in more than one language on the same handset. This will make it possible for millions of Indians to access the popular R World with hundreds of every-day-use applications in the national language.

23-Mar Reliance-Anil Dhirubhai Ambani Group signs up Indian cricket's whiz kid and heartthrob of millions Mahendra Singh Dhoni as the brand ambassador for Reliance Communications Ventures Ltd. 29-Mar Reliance Infocomm becomes India’s first telecom operator to launch seamless interstandard international roaming service - 1World.1Number, with single number on international CDMA and GSM networks. 27-Apr Reliance Communications launches India’s first Talking Message Service (TMS) enabling its mobile users to send voice messages to not only other mobiles but also fixed wireless phones (FWP) and landlines. 22-Jun Reliance Communications ties up with Disney to offer on Reliance Mobile World India's first 3D animation on mobile. 3-Jul Reliance Communications launches 'Hello Capital Plan' to enable its subscribers in

19 state capitals to call each other at the local call rate of 40 paise per minute. 2007 January 10 Reliance Communications adds a record 1.4 million subscribers in December ‘06 January 18 Reliance Communication launches unique "Simply 2030" plan on Reliance Hello January 25 Reliance Communications promotes Roger Waters Music Concert January 29 RCOM shareholders approve tower business demerger with a 99.99% overwhelming majority January 30 Overwhelming response to Reliance World’s National Digital Elocution Competition January 30 Reliance joins Lenovo and Intel for "Internet on the Move" February 2 Reliance Communications’ market capitalization tops Rs 1 lakh crore ( 1 trillion rupees or 24.39 billion US dollars) on Bombay Stock Exchange February 16 Reliance Communications offers best value on roaming February 26 Search Jobs & Classified Ads from Reliance Mobile World - Reliance Communications ties up with Naukri.com March 6 Reliance Communications ushers in ‘Virtual Global Conference Network’ March 7 DHIRUBHAI AMBANI – THE MAN I KNEW By KOKILABEN Book on Founder Chairman launched. March 8 Reliance Communications launches ‘Roam Jamaica on Reliance Mobile

March 16 Reliance Mobile launches ' Suno Zee’ March 19 Demerger of Passive Infrastructure division Reliance Communications & Reliance Telecom approved by the Bombay High Court March 21 Reliance World Offers Program to Help Students ’Crack Admissions in Colleges Abroad’ March 23 Govt’s Rural Telephone Scheme(RDEL)through Reliance Communications successfully closes by March 31,2007 March 26 Booking train ticket from Reliance Mobile Phones becomes more easy now… with ITZ Cash Cards April 4 Reliance Communications unleashes the power of mobile advertising April 6 Reliance Communications acquires 1.2 million subscribers in March 2007. April 11 Sunny Days And Nights For Reliance Mobile Subscribers as Reliance Communications ties up with SUN TV to offer video streaming of all SUN TV programs online 24x7 April 11 Reliance World launches summer e camp for school kids April 30 RCOM first listed Indian telecom company to reward shareholders May 2 A Classic Bonanza – Reliance Communications unveils handsets @ Rs 777 May 9 RCOM bags West Bengal E-Governance Project May 10

Reliance sets a new record, one million Classic handsets sold in just one May 12 Reliance Communications slashes rate to US and Canada. It's now just Rs 1.99 per minute May 14 Reliance Communications launches Classic Color Bonanza - Color handsets @ Rs 1234 May 17 RCOM kick starts world's fastest and largest rural infrastructure rollout on World Telecom Day. May 18 Reliance Communications Launches Lifetime Validity Recharge @ Just Rs.499. May 22 RCOM slashes roaming rates by as much as 70 percent May 25 Reliance Communications launches unlimited calling June 5 RCOM hosts seminar on ‘Emerging Trends in Mobile Applications Development’ June 6 Reliance Communications adds 1.4 million new mobile subscribers in May2007 June 6 Reliance Classic' Makes Music - FM Radio Phones Launched at just Rs.1888 June 27 Reliance World, BIMTECH & Philadelphia University unveil Executive Program in Retail Management (EPRM) June 28 Reliance Communications ties up with Cisco to launch Business Internet Services for SMEs in Pune July 4 Bengali movie ‘Anuranan’ on Reliance Mobile World

July 7 RCOM and QUALCOMM Collaborate on CDMA2000 Expansion July 12 Reliance Communications awards Alcatel-Lucent a Next-Gen network expansion contract July 12 Reliance Communications awards Huawei all IP Next-Gen network expansion contract July 19 RCOM announces sale of equity stake in its Tower Company-Reliance Telecom Infrastructure Limited July 19 RCOM's AGM on Reliance Mobile World July 23 Reliance Communications launches Passport Calling Solutions July 25 RCOM join hands with Yatra.com for air and hotel bookings August 20 RCOM offers 'Live Mandi Prices' on Reliance Mobile World August 31 Reliance Communications , the official global partner for the first edition of ICC Twenty 20 World Cup Championship 2007 in South Africa unveils the coveted Trophy in Mumbai and announces Dhoni - Dhanadan Pack September 9 Reliance Communications launches Money Transfer on Reliance Mobile Phones September 10 RCOM launches BlackBerry 8830 World Edition Smartphone 'Bloomberg Professional' now on Reliance Mobile September 11 Reliance Communications ties up with Sulekha.com to offer local search on Reliance Mobile World

September 18 Strategic partnership with Vanco October 3 Reliance Communications announces Classic Celebrations- Classic Handset sales top 10 million- Color Handset @ Rs.999 October 20 Reliance Communications to launch nationwide GSM Services under existing Unified Access Service Licenses October 22 Reliance Communications brings 'Durgotsav Live' Videocast on mobile November 7 Reliance Communications Launches 'Diwali Dhamaka' November 15 RCOM launches Rural Mobile Application Contest November 16 Fair & Lovely Scholarship on Reliance Mobile World is winner at the MMA awards, USA November 27 FLAG and GlassHouse ink landmark partnership December 11 Reliance Communications adjudged World’s Top CDMA Operator at the Global CDMA Industry Achievements Awards Fete December 20 Reliance Communications completes Yipes’ acquisition December 24 RCOM announces special offers for Christmas and New Year. 200 January 12 8 Reliance Communications receives Start-up GSM Spectrum January 16 Yahoo partners with Reliance Communications to provide Yahoo One Search for its

CDMA and GSM customers. January 31 RCOM's Q 3 Net Profit increases by 48.5% and Revenues Up by 29.8 %. Remains the most profitable Telecom Company in India. February 4 Reliance Communications offers Lifetime Validity at Rs 199 RCOM’s subsidiary Infratel files Draft Red Herring Prospectus with SEBI February 5 Reliance Mobile strengthens its religious content portfolio on Mobile by tie-up with Sadhana TV February 14 RCOM in partnership with CanvasM, launches Mulitplayer Mobile Games February 19 HDFC Bank ties up with RCOM, turns every Reliance Mobile into a credit card February 27 Reliance Communications consolidates Global Telecom Business under “Business Globalcom” Reliance Communications forays into International Mobile Market with GSM License in Uganda. March 3 Reliance Communications drops prices of Internet Data Cards March 10 Reliance Communications announces ESOPs for over 20,000 employees March 20 Reliance Communications and HTC forge Strategic Alliance May 2 Reliance Communications’ Net Profit up by 70.8% to Rs 5,401 crore (US$ 1,350million), Revenues higher by 31.8% to Rs.19, 068 crore (US$ 4,765 million) and EBIDTA

increases by 43.3% to Rs.8, 199 crore (US$ 2049 million) May 12 Reliance Communications and Alcatel form Joint Venture to offer Managed Network Services to telcos across the globe May 26 Reliance Globalcom acquires UK based VANCO Group Limited June 24 Reliance Globalcom, Stealth Communications forge Strategic Alliance to extend VOIP Network across 50 countries July 12 CA Exam Results on Reliance Mobile July 22 Reliance Communications Mobile Subscriber base crosses 50 Million July 29 CA Professional Exam Results on Reliance Mobile July 31 Reliance Communications (RCOM) announces its financial results for the first quarter ended June 30, 2008. Net Profit up by 23.9% to Rs. 1,512 crore (US$ 352 million)

PRODUCTS

• • • • • • • • • • •

Classic Range of Handsets LG Range of Handsets BlackBerry World Roaming Range of Unlimited products: Rural Telephony Data Card Business Long distance voice services Global mobile services Global data services Broadband

LITERATURE REVIEW
GOVERNMENT POLICY AND GUIDELINES In 1994, the Government announced the National Telecom Policy which defined certain important objectives, including availability of telephone on demand, provision of world class services at reasonable prices, ensuring India's emergence as major manufacturing / export base of telecom equipment and universal availability of basic telecom services to all villages. It also announced a series of specific targets to be achieved by 1997. As against the NTP 1994 target of provision of 1 PCO per 500 urban population and coverage of all 6 lac villages, DoT has achieved an urban PCO penetration of 1 PCO per 522 and has been able to provide telephone coverage to only 3.1 lac villages. As regards provision of total telephone lines in the country, DoT has provided 8.73 million telephone lines against the eighth plan target of 7.5 million lines. In addition to some of the objectives of NTP 1994 not being fulfilled, there have also been far reaching developments in the recent past in the telecom, IT, consumer electronics and media industries world-wide. Convergence of both markets and technologies is a reality that is forcing realignment of the industry. At one level, telephone and broadcasting industries are entering each other's markets, while at another level, technology is blurring the difference between different conduit systems such as wireline and wireless. The new telecom policy framework is also required to facilitate India's vision of becoming an IT superpower and develop a world class telecom infrastructure in the country.

Access to telecommunications is of utmost importance for achievement of the country's social and economic goals. Availability of affordable and effective communications for the citizens is at the core of the vision and goal of the telecom policy. The objectives of the NTP 1999 are as under:

Access to telecommunications is of utmost importance for achievement of the country's social and economic goals. Availability of affordable and effective communications for the citizens is at the core of the vision and goal of the telecom policy.

Strive to provide a balance between the provision of universal service to all uncovered areas, including the rural areas, and the provision of high-level services capable of meeting the needs of the country's economy;

Encourage development of telecommunication facilities in remote, hilly and tribal areas of the country;

Create a modern and efficient telecommunications infrastructure taking into account the convergence of IT, media, telecom and consumer electronics and thereby propel India into becoming an IT superpower;

Convert PCO's, wherever justified, into Public Teleinfo centres having multimedia capability like ISDN services, remote database access, government and community information systems etc.

Transform in a time bound manner, the telecommunications sector to a greater competitive environment in both urban and rural areas providing equal opportunities and level playing field for all players;

Strengthen research and development efforts in the country and provide an impetus to build world-class manufacturing capabilities.

Achieve efficiency and transparency in spectrum management.

• •

Protect defence and security interests of the country. Enable Indian Telecom Companies to become truly global players.

The New Policy framework must focus on creating an environment, which enables continued attraction of investment in the sector and allows creation of communication infrastructure by leveraging on technological development.

REGULATORY ENVIRONMENT:

The Telecom Regulatory Authority of India (TRAI) was formed in January 1997 with a view to provide an effective regulatory framework and adequate safeguards to ensure fair competition and protection of consumer interests. The Government is committed to a strong and independent regulator with comprehensive powers and clear authority to effectively perform its functions. Towards this objective the following approach has been be adopted:

Section 13 of The TRAI Act gives adequate powers to TRAI to issue directions to service providers. Further, under Section 14 of the Act, the TRAI has full adjudicatory powers to resolve disputes between service providers.

TRAI will be assigned the arbitration function for resolution of disputes between Government (in its role as licensor) and any licensee.

The Government will invariably seek TRAI's recommendations on the number and timing of new licenses before taking decision on issue of new licenses in future.

The functions of licensor and policy maker would continue to be discharged by Government in its sovereign capacity. In respect of functions where TRAI has been

assigned a recommendatory role, it would not be statutorily mandatory for Government to seek TRAI's recommendations

MARKETING STRATEGIES OF RELIANCE COMMUNICATION:

To spend Rs 16,000 crore to expand and strengthen network coverage. After expansion, Reliance Communications will have the single largest wireless network in the world

• •
• •

Launched the lowest-cost classic brand handset at Rs 777 Will add 23,000 more towers Telecom services will be available in over 23,000 towns and 600,000 villages. To gave out lots of free minutes to users to create an existing user base. Reliance is cutting down on Capital Expenditure since it already has the network and now believes it also has the user base and will be able to generate good cash flows.

COMPETITORS:

AIRETL:

India's largest and world's third largest cellular service provider with more than 82 million subscribers –Bharti Airtel is a merger between Bharti Group and Airtel it’s a well know Ned brand in India as well as Asia . Owned by Mr. Sunil Bharti Mittal. Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group has a diverse business portfolio and has created global brands in the telecommunication sector. Vision of Airtel: By 2010 Airtel will be the most admired brand in India: Loved by more customers Targeted by top talent Benchmarked by more businesses. The total customer base of Airtel is 78,908,993 or 31.65% of the total 249,349,436 GSM mobile connections in India till November 2008. In 2009 Airtel is launched in Srilanka also.

OBJECTIVE OF THE STUDY
• The aim of study is to understand the behavior of mobile phone users in BHUBANESWAR and CUTTUCK and further capture their satisfaction level that is influenced by various technical and non technical factors. • To ascertain the attributes which influenced the customer’s in selecting a particular cell phone services provider and a particular hand-set. • To assess the problems faced by the cell phone users in BHUBANESWAR and CUTTUCK city. • To offer valuable suggestions to improve the services of the mobile phone network.

SCOPE OF STUDY

The present study is contained to twin city of BHUBANESWAR AND CUTTUCK and it is decided to consider all leading mobile operators like AIRTEL, AIRCEL, R-GSM, RCDMA, TATA-INDICOME, VIRGIN, IDEA, VODAFONE and BSNL for the survey.

For handset, there are more than 20 Brands of Mobile phones available in the market. Within each brand there are various models, each with different attributes and functions.

This research will open the doors of consumer buying behavior towards pre-paid products and handset models.

RESEARCH METHODOLOGY

DATA COLLECTION

The secondary data study gave us insights on understanding consumer buying behavior and various concepts on purchase of pre-paid products and handset models.

Primary data were collected from the respondents through the distribution of questionnaire.

AREA OF THE STUDY: This study covers the twin city of BHUBANESWAR and CUTTUCK.

SAMPLE SIZE: The sample size achieved is 200.

ANALYSIS

UNDERSTANDING CONSUMER BEHAVIOR

CUSTOMER BASE:

Out of 200 respondent interview BSNL has got maximum of 20% respondent followed closely by R-GSM and AIRTEL with a share of 17% each and 16% Respectively.

[Annexure 1] OPERATORS CONSIDERED BEFORE OPTING FOR THERE CURRENT OPERATOR: It has been observed that • Maximum number of Respondents had initially thought about taking R-GSM before switching to different network. • Followed by BSNL which comes second with 22 respondents.

[Annexure 2] OPERATORS CONSIDERED BEFORE OPTING FOR AIRTEL (33):
• •

14 respondents had only thought about AIRTEL and took AIRTEL. Maximum number of respondent had initially thought of having R-GSM before opting for AIRTEL mainly due to good connectivity and more establish brand name.

BSNL comes second

[Annexure 3]

OPERATORS CONSIDERED BEFORE OPTING FOR R-GSM (34): • Maximum of the respondents had initially thought about taking BSNL but later on switched to R-GSM mainly due to lower cost and free on-net calls. • Only 13 respondents had thought only about R-GSM

[Annexure 4] OPERATORS CONSIDERED BEFORE OPTING FOR BSNL (40): • • More than half of the respondent had only thought about BSNL. Some of the respondent had initially thought of having R-GSM mainly due to

word of mouth • [Annexure 5] OPERATORS CONSIDERED BEFORE OPTING FOR VODAFONE(22): • Maximum respondents had a thought about almost all operators before opting for VODAFONE mainly due to its : • • • Lower entry cost Free on-net calls Very economical tariff. AIRCEL comes second mainly due to same word of mouth.

[Annexure 6] OPERATORS CONSIDERED BEFORE OPTING FOR AIRCEL(21): •

More half of the respondents did not thought for any other operator. Many of the respondent had initially thought about BSNL because of word of mouth and good connectivity.

[Annexure 7] OPERATORS CONSIDERED BEFORE OPTING FOR TATA-INDICOM (13):

As both TATA-INDICOM and R-CDMA gives free STD on-net calls so respondents had thought about R-CDMA.

7 respondent took TATA-INDICOM without having any second thought.

[Annexure 8] OPERATORS CONSIDERED BEFORE OPTING FOR IDEA (7):

Only two respondent had initially thought of VODAFONE and VIRGIN before taking idea.

[Annexure 9] OPERATORS CONSIDERED BEFORE OPTING FOR VIRGIN (4):

Similarly two respondent had initially thought about taking TATA-INDICOM and RCDMA.

[Annexure 10] AGE WISE COMPOSITION OF THE SAMPLE: Out of 200 respondents interviews
• •

Maximum respondent are from age group of 22-30 Followed by the age group of 31-40.

[Annexure 11] AGE WISE PREFERENCE OF OPERATORS:

In the age group of 15-21 which mainly consists of students VODAFONE leads with 11 respondent opting for it mainly because of free on-net calls and low entry cost which is followed by R-GSM with 7 respondents.

In the age group of 22-30 AIRTEL leads with 16 respondents mainly because of good connectivity and better brand strength, closely followed by R-GSM with 15 respondents.

In the age group of 31-40 R-CDMA leads mainly due to better connectivity and free STD on-net calls which is followed by BSNL.

While in the age group of 41-50 BSNL has emerge as a clear winner with 18 respondent opting for it mainly because of Govt. owned company, good connectivity and better voice clarity.

[Annexure 12] OCCUPATION WISE COMPOSITION OF SAMPLE: Out of 200 respondents interviewed consists of Student

, Service Personnel (govt. /public sector), Service Personnel (private sector), Business Person , Retired Person and Other’s. • Maximum respondent are from student with 30% followed by business person with 28%.

[Annexure 13] OCCUPATION WISE OPERATOR PREFERANCE (STUDENT-60): It shows that Vodafone enjoy a good lead over its competitors among the student mainly due to: • • •

Low entry cost Free on-net calls Strong brand name Word of mouth Vodafone is followed by R-GSM as most popular among students

[Annexure 14]

OCCUPATION WISE OPERATOR PREFERANCE (SERVICE PERSONNEL(GOVT)-26 Both BSNL & R-GSM leads over their competitors mainly due to: • • Established Company Loyalty towards one particular operator.

Aircel comes second with 5 respondents. [Annexure 15] OCCUPATION WISE OPERATOR PREFERANCE SERVICE PERSONNEL(PVT)-47

AIRTEL leads in this segment mainly due to better connectivity, good voice clarity and strong brand name.

Followed by R-GSM and BSNL because of establish brand name.

[Annexure 16] OCCUPATION WISE OPERATOR PREFERANCE BUSINESS PERSON-56:

BSNL leads in this segment followed by R-CDMA.

[Annexure 17] OCCUPATION WISE OPERATOR PREFERANCE RETIRED PERSON- 5: • Out of 6 respondent 4 are Home makers who were using connections given to them by others.

Rest 2 respondents have their own choose of operator.

[Annexure 18] MOBILE PHONE USED FOR VARIOUS PURPOSE BY THE RESPONDENT: Maximum usage is for personal purpose, followed by business and official purposes. • • STUDENTS use mobile phone only for their personal purpose. While in case of service personnel (pvt.) the use of mobile phone is been nearly equally distributed in all categories. • But in case of service personnel (govt.) mobile phone is used mostly for personal use followed by official use.

In case of business person maximum usage of mobile phone is for business purpose.

Respondents were asked to reveal various reasons for which they opt for the operator. [Annexure 19] FACTORS BEHIND OPTING FOR AIRTEL (33): • • • [Annexure 20] FACTORS BEHIND OPTING FOR R-GSM (34): •
• •

Better connectivity Strong brand Good customer care service help AIRTEL in attracting more of its customers.

Attractive tariff is the main motivation factor. Brand strength Good customer care service.

[Annexure 21]

FACTORS BEHIND OPTING FOR R-CDMA (26): •
• •

Good connectivity Attractive tariff like free on-net STD calls. And good customer care service is the main motivating network.

[Annexure 22] FACTORS BEHIND OPTING FOR AIRCEL (21):

Good customer care service. Economical tariff rates and, Word of mouth comes as driving force for the respondent to opt for the network.


[Annexure 23] FACTORS BEHIND OPTING FOR BSNL (40):

Connectivity plays a very important role in influencing the respondent to go for this network.


Govt. owned brand Good customer care service motivates the respondent to go for this operator.

[Annexure 24] FACTORS BEHIND OPTING FOR VODAFONE (22):

Free on-net local calls are a major factor behind opting VODAFONE.

• •

Very low entry cost. And word of mouth also helps the respondent in opting for VODAFONE.

[Annexure 25] FACTORS BEHIND OPTING FOR TATA-INDICOM (13): • • • Good Connectivity brand strength And free on-net STD calls.

[Annexure 26] FACTORS BEHIND OPTING FOR IDEA (7) • •

Low entry cost Attractive and economical tariff and Word of mouth plays an important role in motivating the respondents.

[Annexure 27] FACTORS BEHIND OPTING FOR VIRGIN MOBILE (4) • • • Word of mouth Better connectivity and Attractive tariff plays a very important role in motivating respondents for opting the network. [Annexure 28] TOP 3 STV’S USED BY THE RESPONDENT

Respondents were asked to name top 3 STV’S they used for the operator they are currently using. [Annexure 29]

TOP 3 TOP-UP’S USED BY THE RESPONDENT Respondents were asked to name top 3 TOP-UP’S they used for the operator they are currently using. [Annexure 30] TOP 3 SMS PACKS USED BY THE RESPONDENT Similarly Respondents were asked to name top 3 SMS PACKS they used for the operator they are currently using. [Annexure 31]

MARKET SHARE OF VARIOUS BRANDS OF MOBILE PHONE HANDSETS Out of total 200 sampled consumers, 89 consumers own a Nokia mobile handset which comes to 44 percent share of the market. This is followed by Samsung (15%), Motorola (14%), Sony Erickson (11%), LG (9%) and others (7%). [Annexure 32]

INFLUENCING FACTORS TO PURCHASE THE HANDSETS Consumers were asked to reveal their likings for various attributes of the mobile phone instrument.

Maximum respondent see long battery backup as the most influencing factor for deciding any cell phone.

• •

Followed by the brand name And looks

[Annexure 33] CONSUMER’S SATISFACTION LEVEL AFTER USING THE OPERATOR: The satisfaction level of users was analyzed on a five point scale ranging from ‘very much satisfied’ to ‘very much dissatisfied’. A major group of consumers either say that they are ‘almost satisfied’ (48%) or ‘average satisfied’ (28%). While taking consumer’s satisfaction level as operator wise BSNL leads with maximum of 26 respondents followed by AIRTEL with 19 respondents as very much satisfied customers. • BSNL has got the maximum very much satisfied users mainly due to good connectivity and Govt undertaking brand.

Then comes AIRTEL which has got second maximum very much satisfied users from its competitors mainly due to good connectivity and strong brand name.

[Annexure 34] REASONS FOR DISSATISFACTION (AIRTEL (33): • Higher cost in tariffs is the major reason for dissatisfaction among the respondent as they think its bit on higher side compared with its competitors.

Also poor customer care service is another factor.

[Annexure 35] REASONS FOR DISSATISFACTION R-GSM (34): • Majority of the respondents are not happy with the quality of network and voice clarity provided by the R-GSM. • • Call conjunction during peak time. Customer care service is not that good

[Annexure 36] REASONS FOR DISSATISFACTION R-CDMA (26):

Higher entry cost is one of the major reasons for dissatisfaction among the users. Also the cost of CDMA handset is much more than GSM handset Another reason is that call conference system is not available in the pre-paid of RCDMA.

• •

[Annexure 37] REASON FOR DISSATISFACTION BSNL (40):
• •

Higher cost is one of the major reasons for dissatisfaction among the users of BSNL. Also they think customer care service is not up to the mark.

[Annexure 38] REASON FOR DISSATISFACTION VODAFONE (22):

Vodafone has got least number of dissatisfied customers mainly because it’s been in operation for last 10 months only.

[Annexure 39] REASON FOR DISSATISFACTION AIRCEL (21): • Poor network in remote areas is one of the major reasons for dissatisfaction among the users. • Also voice clarity is not good during the peak time.

[Annexure 40] REASON FOR DISSATISFACTION TATA-INDICOM (13): • • Higher entry cost is the main reason for dissatisfaction. Also the cost of CDMA handset is much more than GSM handset.

[Annexure 41]

REASON FOR DISSATISFACTION VIRGIN MOBILE (4): • Entry cost is much higher as users need to buy a handset for getting the connection.

[Annexure 42]

REASON FOR DISSATISFACTION IDEA (7):

Few respondent come up with poor voice clarity as one reason.

[Annexure 43] RESPONDENTS INTENDING TO CHANGE THEIR OPERATOR: The respondents intend level was capture on a five point scale ranging from “Highly Intend” to “Definitely Not” with maximum respondents 52% opt for “Definitely Not”. That means they will definitely not change their operator followed by “Do Not Intend” with 22%. While if we see operator wise:

It is clear that maximum of R-GSM respondent wants to change their operator is near future. Followed by BSNL

Similarly BSNL have got maximum number of respondent who are every much satisfied with their operator and they don’t want to switch to any other operator. Followed by AIRTEL.

[Annexure 44]

OPERATORS

RECOMMEND

MOST

BY

THE

RESPONDENT

TO

THEIR

FRIENDS/RELATIVES • BSNL leads mainly because of good network, attractive tariff and Govt. undertaking brand. • Followed by VODAFONE which is more popular among the students mainly due to very low entry cost, free on-net calls and a strong international brand. • Then comes AIRTEL which rides on its good connectivity and brand image.

After that both R-GSM and R-CDMA comes.

[Annexure 45] SOURCES FROM WHICH RESPONDENT GET TO KNOW ABOUT DIFFERENT PREPAID PRODUCTS AND HANDSET MODELS

As it is expected RETAILER leads as the major source from which respondents get to know about different pre-paid products and handset models.

Followed by FRIENDS/RELTIVES who give vital information and also motivates the respondent to use the said product.

[Annexure 46] NEWSPAPER READ BY THE RESPONDENT THE MOST: Maximum of the respondents read TIMES OF INDIA followed by DHARITRI. [Annexure 47]

MOST PREFFERED RADIO CHANNEL AMONG THE RESPONDENT: • • Maximum of the respondent don’t have time to listen to any of the FM channels. Between the age group of 15-21 and 22-30 maximum of the respondent listen to FM channels • Radio chocolate comes first among the respondent followed by Big FM.

[Annexure 48]

PROBLEM AREAS FOR R-GSM:

Poor connectivity and voice clarity is the major factors as almost all the respondents are telling. Poor connectivity means unavailability of signals, call failure, call drop downs etc.

Higher entry cost than its competitors that why maximum student respondents are opting for Vodafone or idea due to lower entry cost.

Free on-net calls tariffs are not that attractive compare to its competitors.

 Brand visibility is poor compared to its competitors.

FOR R-CDMA:  Higher entry cost as it comes with a handset.  Handset available with R-CDMA is much costlier than handset available for GSM.  No tie ups with NOKIA or SAMSUNG for R-CDMA.

RECOMMEDATION
The survey and analysis that we have conducted has brought out certain interesting facts and given insights into the buyer behavior in case of mobile pre-paid products and handset models.

FOR R-GSM:
Focus On Good Connectivity And Low Entry Cost:

In the analysis it has been found that the major influential factors that motivates a customer are good connectivity and Low entry cost.

 More than 50% of respondents mention it as one of the major influential factors.

Also an economical on-net call is one of the major motivating factors among student.

ANNEXURE
Annexure 1

OPE AT R OR Aircel Airtel B NL S R M -GS T AIndicom AT Vodafdone R MA -CD Virg in Idea T AL OT

B E AS 2 1 3 3 4 0 3 4 1 3 2 2 2 6 4 7 20 0

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Annexure 21

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Annexure 14 Annexure 14

Annexure 14 Annexure 14

Annexure 14 Annexure 14 Annexure 14 Annexure 14 Annexure 14 Annexure 14 Annexure 14 Annexure 14 Annexure 14 Annexure 14

Annexure 14

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