You are on page 1of 14


What is consumer behaviour?

Consumer behaviour is the study of when, why, how, and where

people do or do not buy product. It blends elements from
psychology, sociology, social anthropology and economics. It
attempts to understand the buyer decision making process,
both individually and in groups. It studies characteristics of
individual consumers such as demographics and behavioral
variables in an attempt to understand people's wants. It also
tries to assess influences on the consumer from groups such as
family, friends, reference groups, and society in general.

Customer behaviour study is based on consumer buying

behaviour, with the customer playing the three distinct roles of
user, payer and buyer.

As this project focuses on the buying behavior of consumers on

the basis of perception it is important to know the definition of
the same.

What is Perception?

Perception is the process of attaining awareness or

understanding of sensory information.

In general psychological terms, perception is our ability to

make some kind of sense of reality from the external sensory
stimuli to which we are exposed. Several factors can influence
our perception, causing it to change in certain ways. For
example, repeated exposure to one kind of stimuli can either
make us oversensitive or desensitized to it. Additionally, the
amount of attention we focus on something can cause a
change in our perception of it.
About Project:
As part of our subject Global Consumer behaviour, we the
students of AMA have been assigned the project of
understanding the consumer behaviour based on perception of
a particular product. As DTH service is a hot topic nowadays &
threatening the local Cable/Satellite providers, we have
selected DTH services as our product to understand the
consumer’s perception. DTH is a growing market and with the
introduction of High definition clarity, it is set to take over the
television market & beat the cable operators. It is estimated
that India’s DTH market will become the largest market by the
year 2012 overtaking the United States of America.

Objective of Study:

1. To understand the consumer perception for DTH services

in India.

2. To compare DTH Services with Cable Services.

3. To know how consumer perception about different brands

of DTH affect their buying behaviour.

4. To understand the reasons for shifting from Cable

connections to DTH service.

5. To know which are the major factors taken into

consideration by consumers while buying DTH service

Direct to home
India has about 130 million TV homes of which, Cable &
Satellite (C&S) services are present in 97 million (74%) of the
homes. The DTH market in India comprises 11% of the total
market with almost 15 million homes. The DTH industry growth
lagged to 10.3% in 2008 from 16.7% a year earlier. However,
industry estimates DTH to touch 35-40 million subscribers by
2012, and that’s the number that every DTH brand has set its
sights on. By 2015, DTH will enjoy a market share of 40%,
digital cable 40% and analog cable will follow with only 20%
market share. The DTH service market in India has emerged as
one of the most lucrative markets which have successfully
resisted the impacts of the current economic slowdown. The
slowdown has certainly proved a boon for the Indian DTH
industry as people have now started to cut on their
entertainment expenditure and instead of viewing movies at
theatres, they are preferring to stay at home with their
television sets.

The industry is anticipated to add nearly 5 Lakh subscribers per

month during 2009 and the numbers are forecasted to surge
further at around 30% through 2012. So apart from Tata Sky,
Dish TV, Airtel Digital and Reliance BIG, southern heavyweight
Sun TV has entered the fray with Direct, while Videocon has
entered the market in June 2009.
While Indian consumers were not completely satisfied with their
cable services, they did not feel the need to switch over to any
other means of entertainment. It was therefore imperative for
companies such as Tata Sky, Dish TV, and Reliance BIG TV to
educate the consumers about the advantages of the service
and in turn create an urge to invest in it.

Population and TV sets:

In March 2009, the number of cable connections across the city

was 84,908, while in March 2010; the number had come down
to 74,908, a decrease of 10,000 connections. The decrease in
the number of cable connections has been attributed to people
shifting to DTH services. However, these figures are a far cry
from the actual numbers if we go by the number of households
with TV sets.

As per the last Census in 2001, of the almost 12 lakh

households in the city, around 8 lakh households had television
sets. If we go by rough estimates, the recent census suggests
that around 13 lakh households and 2 lakh office buildings have
TV sets. However, official figures show that only 74,000
households in the city have cable connections. An indication
that the remaining, roughly 12 lakh, households either did not
have cable connections or had DTH (direct to home)


Dish TV is India’s first direct to home entertainment service

started in 2004. It is an Essel Group initiative using MPEG-2
digital compression technology. Dish TV provides 240 digital
channels and 40 services.


Urban and Rural:

Dish TV has equal distribution of subscribers in urban and rural
markets. The cable-dry rural markets had been their strength
when they launched their services first in these markets. In
rural areas, Dish TV runs fleet of vans for demos, installation as
well as selling hardware and pre-paid vouchers.

Region and States:

It has come up with special offers for the southern region where
regional and sports channels are viewed the most. Like
Ultimate sports bonanza offer - Rs 1890 with 3 Months of South
Silver subscription available in Tamil Nadu, Kerala, Karnataka &
Pondicherry only. Ultimate sports bonanza offer - Rs 2490 with
12 Months of Silver subscription available in Andhra Pradesh
only. Dish TV has structured a basic bouquet of customized
package of channels which are in demand in a particular state
at a very affordable price pack like North diamond pack and
South diamond pack. Dishtv also added two more Marathi
channels namely Star Pravah and Star Majha on its platform for
its Marathi speaking customers. Besides all this Dish TV has
also launched Rest of India and South pack in scheme of new
packages, targeting north and south India consumers


As the market gets fragmented, niche channels will become

more and more desirable. The increased interest in unique
content channels is in line with the international trend, where
once the market matures, consumer needs come into focus.
Thus channels on Education, Women, Gardening, a variety of
Sports, Wellness and Religion, etc. make their appearance. Dish
tv will be launching several of these niche channels to create a
unique and exciting offering for its viewers of every age and
gender segment. Dish TV recently launched ‘Children Films
Festival’ with a bouquet of over 25 super-hit films across
various categories priced at Rs. 25/- per movie thus targeting
the children segment. Besides this value added services like
Games Active, Bhakti active services etc carters to needs of
customers from various age groups and gender.


Recognizing the vast differences in tastes and pocket sizes of

different consumer segments, content has been aggregated
and classified into 4 different packages namely MAXI,
WELCOME, FREEDOM PLUS and FREEDOM packages .While the
Maxi and Welcome packs are price drivers and target high
ARPU consumers, the value pack offerings in Freedom and
Freedom Plus packages are volume drivers that inspire new
subscribers to come on board through a low price point and
basic channel offering. The strategy is to gradually upgrade the
low ARPU subscriber too, through tailor made add on packs on
a-la-carte like movies, business, and etc basis for specific
entertainment needs. Keeping income levels of consumers in
mind, Dishtv apprises the consumer of its three-tier pricing. It
gives a choice to the consumer to select from a three level flexi
plan that bundle three, six or 12 months of subscription along
with the initial box.


Dish TV came out with the “HAPPY HOME” pack offering Dish
TV with 12 months for Rs 1990 aimed at families where the
number of viewers is less and watch only niche channels.
Happy Home pack caters to entertainment needs of all the
members of the family in all age groups.



Dish TV comes out with new offers of channels or new buyer

schemes at relatively cheaper rates on occasions of festivals or
major sports events. In the past Dish TV has come with
schemes like Pay for Welcome and Watch Maxi (October 2006),
‘Diwali Double Dhamaka’ (November 2007), the IPL Pack (April
2008), 'Summer Sports Bonanza' (June 2008), Special Onam
Offer for Kerela (August 2007), World cup offer (March 2007).

Dish TV offers benefits to customers like:

•In a cricket match choosing the language of the commentary,

camera angles, know player statistics and watch match
highlights at our will.

•Surf through hundreds of channels using a mosaic screen

showcasing all channels of a single genre.


•Subscribers can order and watch Hollywood, Bollywood and

Regional blockbusters whenever they want, with no ad breaks
and the subscriber can watch it multiple times within 24 hours.

•Using EPG, one gets an easy and friendly display of the

program schedule on all channels and is loaded with amazing
features such as programme alert, parental lock, channel
sorting, and creating lists of favorites and so on.

•Unique feature where subscribers can choose from multiple

languages on select channels.


Every product has its non users, ex-users, potential users, first
time users and regular users. In order to attract the non users
and potential users Dishtv with a finger on the consumer pulse
has time and again brought innovative and exciting consumer
promotion offers into the market. Schemes like World Cup Free
Offer, Free bhi Zyaada bhi, Ab Sab Sikandar, and the landmark
Set Top Box Free Offer, have not only added to the pace of
acquisitions but attracted specific consumer audiences like
sports lovers and kids into its fold.

Dish TV has successfully segmented the market through an
expanded product range at appropriate price points. By offering
packages like cinema active, khel active, movie active, music
active is targeting people with specific lifestyles. Premiering
new movies within weeks of their releases is targeted at people
who want to see latest movies at affordable prices. Dish TV
premiered movies like Delhi-6 and Aa Dekhen Zara within
weeks of their release. Dish TV has also targeted the youth
segment with offers like “Michael Jackson Live in Bucharest
tour” for just Rs 25, Microsoft Xbox 360 Arcade.


“Dish Karo, Wish Karo

Thoda aur wish karo

Dish karo”

With this Dishtv made a very confident entry into the psyche of
every Indian viewer by asserting itself as the clear DTH
champion. Moreover it positioned itself as a far better and a
smarter option to cable TV which apparently is enjoying a
relatively a larger viewership. The brand ambassador of Dish
TV, Shah Rukh Khan urges the viewers not to be complacent
with the smudgy and faulty cable service. A simple
line,“Santusht with your cable TV? Thoda aur wish karo, dish
kar” inspired millions of Indians to shed their inhibitions and
move up in life. The entire nation wished with dishtv, through a
breakthrough campaign that not only amplified dishtv's image,
but revamped the entire DTH category as a whole. It
questioned the attitude of our countrymen who are ever
satisfied with sub optimal services. It further encouraged them
to switch from poor service of cable TV and start wishing for
much better quality entertainment with dishtv. But Dish TV has
repositioned itself with a new tag line which says “Sabse
Zyaada” means:

” Dishtv Offers Sabse Zyaada Entertainment

Sabse Zyaada - Number of Channels

Sabse Zyaada – Regional Channels

Sabse Zyaada Genre

Sabse Zyaada - Value at Every Price Point”

The reason for this being two years back, when Dishtv launched
the Wish karo campaign, they were competing with cable
operators and the poor quality of delivered content but now
with rising competition among DTH players, there was a need
to re-establish their brand as the largest content provider.
“Sabse Zyaada” is a positioning that clearly brings together the
differentiation of Maximum Entertainment and Maximum no. of
Channels and Maximum Value offered by Dishtv in a powerful

Research Methodology:

The methodology that we will follow in this research is

quantitative and the model that we will follow is exploratory
which will be in the form of questionnaire that will be done on a
sample size of 10 who are already using DTH connection and
cable connection at their home. The source of data will be both
primary and secondary. The secondary data is collected to
know the population size of Ahmedabad and also the current
status of the DTH services in India. The primary data which is
collected from the questionnaire is used for the analysis of the
consumer behavior and their perception towards DTH.

Current Players:

The current players in DTH industry are:

1. Dish TV - Zee group

Dish TV is a venture by the Essel Group and was launched in
2004. Dish TV is India’s first private player in DTH industry with
a presence in 19 states. It has a subscriber base of 5.07 million
(March2009). It has a bouquet of over 240 channels to choose
from. Recently Dish TV has launched an entry-level subscription
at Rs. 99 per month with the largest offering of 110 channels

2. TATA Sky – Joint venture between Tata Group and UK-based

British Sky

Tata Sky was incorporated in 2004. TATA is one of India's

largest and most respected business conglomerates and the
SKY brand, owned by the UK-based British Sky Broadcasting
Group which has over 20 years of experience in satellite
broadcasting. It launched its services pan-India in August
2006.Within a short span of time it garnered a subscriber base
of nearly 4 million (Aug 2009). It has over 168 channels to
choose from. Tata Sky has launched an entry-level subscription
plan called ‘Super Hit Pack’ at Rs. 99 per month with a bouquet
of 53 channels. Tata Sky recently launched Tata Sky Plus which
uses the personal video recording (PVR) technology that allows
consumers to record live.

3. DD-Direct + -- Owned by parent company Doordarshan

DD Direct Plus was launched in December 2004 by

Doordarshan. It was India’s first DTH service offering about 59
TV channels and 21 radio stations. DD DTH is a free service and
has acquired a subscriber base of 60–70 lakh connections (July

4. Sun Direct - Rs 1000-crore Indian DTH television network

based in Chennai from Sun group.

Sun Direct is a DTH service in India headquartered in Chennai,

Tamil. Sun Direct is an 80:20 joint venture between the Maran
family and Astro Group of Malaysia. With 170+ TV channels and
31 Radio channels, Sun Direct has a subscriber base of 3 million
(April 2009). Sun Direct has a basic pack of Rs 75 monthly
subscription which is the lowest price-point compared to the
other service providers

5. Reliance BIG TV Limited – a part of Reliance Anil Dhirubhai

Ambani Group.

Reliance Communication a more recent entrant in the DTH

space has the brand name ‘Big TV’. It has aggressively priced
packages as low as Rs. 1490 with an offering of 64 channels
and a three month free subscription in addition to 20 video-on-
demand movie channels. Within a short span of time it
garnered a subscriber base of nearly 1.8 million (Aug2009). Big
TV currently offers 202 channels. BIG TV focuses on VAS and
claims to have a next generation user guide which is indexed.

6. Airtel DTH - Bharti Airtel Limited

The recent and much talked about player in the market is

Bharti- Airtel. A teaser campaign ‘See you at home’ was
followed up by a multi-starrer campaign with celebrities like
Saif Ali Khan and Kareena, Vidya Balan and Madhavan and
Indian cricketers Gautam Gambhir etc. It has a subscriber base
of 1 million (June 2009) and has a bouquet of over 138
channels and world space satellite radio to choose from. Airtel
Digital has a basic pack of Rs 99 monthly for South and Rs 125
monthly for north.

7. Videocon D2H

Videocon – the big Indian consumer durable player launched

itself in the DTH market in June 2009 through its media arm
Bharat Business Channel (BBCL). Right now it has offered
services in Punjab, J&K, Chandigarh, Haryana and Himachal
Pradesh with packages as low as 150 per month. Advantage
over other players is that Videocon already makes analog set
top box hence they are likely to manufacture Set Top Box for
their DTH service as well.


The current Market Share is:

• Dish TV – 32.56%

• Tata Sky – 25.69

• Sun Direct – 19.27%

• Big TV – 11.56%

• Airtel Digital TV – 6.42%

• Others – 4.5%
Consumer Behaviour Pattern based on Perception:

> Price

> Customer Service

> Reception

> Program choices

> New Technology and

> Technical Support