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Implications of Discri Analysis PDF
Implications of Discri Analysis PDF
Abstract
A comparison of consumer’s perception regarding magnificent growth in the sector standing at second
cellular mobile operators was done on five cellular position after China. This sector is crucial in
operators in the prepaid segment. The paper spurring the growth especially industrial and
focuses on how management students associate service sector of any economy. Historically,
selected brands of mobile cellular operators. telecommunication has been state controlled sector
Discriminant analysis is used to map selected but opening of Indian economy resulted in to
mobile cellular operators along with their privatization and intensification of competition
attributes. Study investigates how consumers among operators in a particular circle. There are
associate the attributes in different dimensions with more than five cellular operators in each circle
reference to leading service providers. Operators making them difficult for them to retain their
do not differ significantly with regard to attributes. market share.
However, they vary in their promotional Customers value hierarchy for competing brands in
campaigning and years of existence in the market. cellular services space suggests that desired value
is composed of a preference for specific and
Keywords: Perceptual Mapping, Brand, Sevice measurable attribute performances and
Quality, Quality of Experience. consequently linked to goals for user requirements.
Present scenario does not allow consolidation but
Introduction with expansion of customer data base would
promote scaling of there operations. Call charges in
telecommunication have seen the downward trend
With liberalization and internationalization in in the last decade because of advances in
telecommunication, service quality has become technology and increased data base of mobile
important means of differentiation of the brand to service users. The launch of per second billing
achieve business success. For last two decades the have further intensified the competition in the
Indian cellular services is experiencing highest market. Customer relationship is the key in today's
growth in terms of subscribers and revenue. competitive environment (lovelock, 2001). The
Despite this, most of the cellular mobile services dynamic change in the business environment of
providers in India are primarily focusing on cellular operators compelling them to improve
expanding their customer base tends to overlook on services along with decreasing price of call rates
brand building. There is proven relationship and compelling the companies to shift there
between service quality and customer satisfaction revenue models and business processes to cop up
(Danher and Mattssor, 1994). According to with the changing need and expectations of the
economic survey 2009-10, the number of phone customers. Customers do not want congestion in
connections increased from 12.3 million in 2004 to the network and want to access internet on there
174.6 million by December 2009, representing mobile handset in minimum possible time (Danher
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and Mattssor, 1994). Another complex dimension realigning operational plans to line up with the
to the competitive trend in the Indian business processes. Perceptual mapping is the
telecommunication industry is the ease of imitation graphical technique used to display the perceptions
of products and services in the industry. This trend of potential customers. This will enable a company
fosters a scenario of continuous fight for customers to understand and gain sustainable edge over the
share (Mendzela, 1999). A number of objectives competitors. It is an analytical tool to understand
are set by customers in selecting different operators customers. Perceptual mapping enables firms to
plans on the basis of their past experiences with preserve there existing customers and their loyalty,
respect to making an evaluation in desired value which is taken as an incentive by the management
(Spreng et al., 1996). Quality of experience plays of any cellular operators to measure customer
critical role in determining the services of the awareness for marketing stimuli. According to
service provider. The factors influencing the (Anderson and Srinivasan, 2003) without customer
perceived service quality for enhancing the loyalty, even the best-designed business model will
experiential platform is shown in figure 1 soon fall apart. In their quest to develop a loyal
customer base, most companies are trying their
Figure 1 best to satisfy their customers and in process of
Factors Determining Perceived Quality of developing long run relationship with them.
Mobile Cellular Operators
Review of literature
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service/tariff plan offered by different cellular well educated and make conscious decisions. They
operators. (Chadha and Kapoor, 2008) has are vocal about the deficiencies and are asking for
conducted perceptual mapping of selected more freebees. So, focus on branding strategies
insurance companies in the Insurance and justified services by cellular operators especially become
the importance of perceptual tools importance for relevant in the present context.
the marketers.
Research Objectives
Need of Branding in Cellular Services: The basic objective of this study is to draw
An Indian prospective perceptual map using attribute based perceptual
mapping regarding cellular operators companies
Branding has become relevant in mobile cellular and understand the various factors which students
service providers with the fierce competition of the give due importance when they make choice
different cellular operators in the same circle. The among the mobile cellular operators.
customers are offered wide variety of options for
product plans depending on the suitability of the 1 To draw out the perceptual mapping of
customers. The mobile service operators are facing management students regarding different
boiling frog syndrome where frog immediately cellular operators using attribute based
hops out when thrown in boiling water. However procedure of consumer perceptions.
when placed in pot of cold water which is heated 2 To study the factors influencing sales of
gradually, the frog fails to notice the rising prepaid product and potential
temperature eventually boils to death. Boiling frog subscribers related to buying prepaid
syndrome reason become more relevant with cellular service connection.
stiffening of the competition and stringent rules 3 To draw out strategies for mobile
and policy formulation of TRAI for the mobile operators with changing pattern of student
operators and moving to operators portability in requirements.
future. Vibrancy in the cellular service providers
has infused branding in the different players in the Methodology
mobile cellular services market. In India, the
mobile services are gaining momentum with the An exploratory study was conducted to understand
advent of private players like Airtel, Reliance, Tata that which mobile cellular service operators are
etc in the field. Previously telecom sector was perceived to have an edge in terms of convenience,
monopolized by government controlled BSNL. perceived network quality problematic measures in
The brand building of cellular services providers the network like congestion, call drops, and
have to be focused like product companies for network quality. Effort had been made to study
purchase of services. The mobile management student’s perceptions and
telecommunication market has reached its maturity expectations regarding different cellular operators
stage, as the net return on investments in mature operating in the same circle. A questionnaire was
markets could be much higher for retention study the responses of management graduates
strategies than to attract new customers strategies using leading five cellular operator services were
particularly, for companies with an established selected in central Haryana. The cellular survives
customer base (Zeithaml, Berry and Parasuraman, operators considered are namely: Airtel, Reliance,
1998). With increase in supply of mobile services, BSNL, Tata and Idea. Total 140 management
there is an improvement in quality, which has students using prepaid services of cellular
resulted in mobile service being treated as operators from different management institutions
commodity like Fast Moving Consumer Good running full time two year MBA course under the
(FMCG). The Indian mobile service market is very university system were considered. A convenient
price sensitive so the, service operators trying for sampling method was followed for the study. This
customization and inventing new pricing models to segment of students is important as they are aware
attract all segments of customers. Operators have about the latest plans offered by different mobile
to develop well-woven network for retailing the cellular companies in the market and are very price
mobile services through company branded shops, conscious segment. Perception of only those
distributors, dealers, retailers and direct sales students was considered who were having there
agents. The prices of mobile services can be own personal prepaid cellular connection. The data
compared at the click of mouse. The customers are was collected through trained investigators who are
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Table 3 shows factors influencing the services, cost, plan customization, promptness of
customers while purchasing the mobile phone customer services, fidelity and reliability of
connection. The result shows that price, quality of network heavily dependent on dimension 1. Longer
service and degree of customization of plan are arrows pointing closely than the given group
important criterion for selecting the product. The centroids. The vector pointing in the opposite gives
mobile service recharge coupons are generally sold low degree of association.
through intermediaries and plays critical role in
influencing purchase behavior of the customers. To Mobile Cellular Operators and Their
draw perceptual map, students were asked to rate Association with Attributes /Dimensions
selected mobile operators on six attributes namely:
availability of the recharge coupons and operator
services, cost, plan customization, promptness of The position of different brands of cellular
customer services, fidelity and reliability of operators are plotter with respect to different
network table 5. All attributes were measured using influencing attribute to customers shown in figure
five point rating scale (1 -Strongly Agree to 5- 3 . Five brands of cellular services are Idea, BSNL,
Strongly Disagree). Discriminant analysis was used Idea, Reliance and Airtel are having unique
with the help of SPSS software and results have positions in figure 3.
been tabulated from to table 10. Pooled with the It appears Idea is strongly represented by
group statistics in table 6 indicates high variation in availability of the recharge coupons
the standard deviation implies the attributes chosen representing well woven network of
for analyzing different cellular operators are marketing intermediaries in the circle.
distinct. The eigen values in table 7 shows that first Customers identify BSNL brand on low
two functions represent 87.5% of the cumulative cost and availability of network attributes
variance. Hence these two functions have been coupons .However plan customization
used for further interpretation .First four canonical attribute is in opposite direction
discriminates were used in the analysis. Perceptual representing lower degree of association
map was drawn using SPSS output of the representing lesser plans are offered in
discriminant analysis and excel work sheet. Figure respect to peer companies.
3 shows the perceptual map of the selected mobile Tata brand is valued more on the
operators and different attributes. . Mobile cellular customization of plans as per user
operators plotted on the map are on the basis of requirements
value of group centroids on function 1 and 2 using Reliance focus on the reliability of the
table10. All five mobile cellular service brands network. This brand represent less on cost
have their unique position on the map. Using the , customer service and fidelity attributes.
standardized coefficients of attributes on function 1 Airtel brand is perceived on attribute of
and 2 are incorporated in figure 3 using table 8., customer service and fidelity over the
the plot of different brands has been plotted in competitors in the same circle.
figure 2 using canonical discriminant functions and The perceptual map shows that customers
the same has been incorporated in figure 3. do not consider TATA Idea and Reliance. As low
Unstandardized canonical discriminant functions cost provider of services.
are evaluated by group means. Based on the
attribute vectors from the axis, it can be concluded
that availability of the recharge coupons and
Table 4
The Number Assigned to Different Brand of the Cellular Operators
Coding Name of the operator
1 Airtel
2 Reliance
3 BSNL
4 Idea
5 Tata
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Table 5
Group Statistics
Mean Std. Deviation Valid N (listwise)
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Table 6
Pooled Within-Groups Matrices
Table 7
Eigenvalues
Table 8
Standardized Canonical Discriminant Function Coefficients
Function
1 2 3 4
Availability .901 .010 -.091 -.216
Cost .893 -.134 .626 .322
Plan Customization .589 .608 .204 .083
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Table 9
Structure Matrix
Function
1 2 3 4
Avalability .330 -.126 -.103 -.188
Cost -.104 .778 .091 .113
Plan Customization .111 .759 .109 .175
Customer Service -.316 -.191 .708 -.078
Fidelity -.034 -.227 -.265 .851
Reliability .363 -.181 .543 .544
Source : Output generated by SPSS
Note :Pooled within-groups correlations between discriminating variables and standardized canonical
discriminant functions Variables ordered by absolute size of correlation within function.
Table 10
Functions at Group Centroids
Function
Brand 1 2 3 4
1.0 -1.794 -.919 -9.269E-02 -.231
2.0 -.887 .561 -.113 .386
3.0 .737 -.404 -.194 5.911E-02
4.0 .174 -4.788E-02 .600 8.091E-03
5.0 9.841E-02 .793 -.130 -.285
Source : Output generated by SPSS
Note: Unstandardized canonical discriminant functions evaluated at group means
Figure 2
Plot of Five Brands on Discriminant Function1 and2: Treating functions as Dimensions
2
BRAND
Group Centroids
1 5
2
Ungrouped Cases
4 5
0
3
4
1
Function 2
-1 3
-2 1
-3 -2 -1 0 1 2
Function 1
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Coding 1 2 3 4 5
Name of the operator Airtel Reliance BSNL Idea Tata
Figure 3
Perceptual Map of Mobile Cellular Operator Brands and Attributes: Drawn using Excel, from SPSS
Output
0.7
X Tata
Reliability
Plan Customization
0.6
0.5
X Reliance
0.4
0.3
0.2
0.1
Availability
0
-1 -0.5 0 0.5 X Idea 1
Customer Service
-0.1
Fidelity Cost
X Airtel. X BSNL
-0.2
Note: X Represent different brand of mobile service providers
♦ Represent attributes on the bais of which customer evaluate different
brands
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DeSarbo, W.S. and V.R. Rao (1984). GENFOLD2: Zeithaml, V. A., Berry, L. L., & Parasuraman, A.
A set of models and algorithms for the general (1988), “Communication and Control
unfolding analysis of preference/dominance data. J. Processes in the Delivery of Service Quality”.
Classif., 1: 147-186. DOI: 10.1007/BF01890122 Journal of Marketing, April, pp. 35-48.
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