INTRODUCTION

Customer satisfaction is the degree of satisfaction provided by the goods or services of a

company as measured by the number of repeat customers. Customer satisfaction survey is
a process of discovering whether or not a company's customers are happy or satisfied
with the products or services received from the company. It may be conducted face to
face, over the phone, via email or internet, or on handwritten forms. Customer answers to
questions are then used to analyze whether or not changes need to be made in business
operations to increase overall satisfaction of customers. It is defined as "the number of
customers, or percentage of total customers, whose reported experience with a firm, its
products, or its services exceeds specified satisfaction goals. 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. The
purpose of this study is to compare customer satisfaction towards Airtel and Vodafone
services. More specifically, the focus is on examining the grouped impact of the factors
on customer satisfaction.

India has the second largest and fastest growing mobile telephone market in the
world (www.trai.gov.in). The mobile phone communication became a boon to many
vocational industries. One such example is the success story in the Kerala’s fisheries
sector. The espousal of mobile phones by fishermen and traders was associated with an
astonishing reduction in price diffusion, the entire elimination of waste, and embracing
the economic principle of the Law of One Price. This episode is indeed presenting us
with the significance of mobile phone and its reach in the uplift of the economic
development of one of the main occupational sectors in Kerala. Thus it became all the
more important to learn about customer satisfaction of mobile phone subscribers who
rely on various mobile phone network service providers.

In today’s dynamic technological outburst consumers are provided with a plethora of

alternatives. In this epoch, marketers have an enormous challenge of retaining their
existing customers as well as recruiting new clients. The services sector contributes the
most to the Indian GDP. The growth rate of the services sector in Indian GDP has risen
due to several reasons and it has also given a major boost to the Indian economy. This is
due to the fact that India has a large pool of highly skilled, low cost, and educated.
The booming revolution in Information Technology sector has pushed the India’s
telecom market significantly. India has shown tremendous growth in past few years in
terms of cellular services. Since past few years consumers prefer wireless mode of
telephone services to wire line services. As per the survey report conducted by voice &
Data by the end of Feb 2008 the mobile subscribers number has reached to 246.6 mn
compared to wire line services, which is only 40 mn. in number1 . Cell phones are a vast
improvement over the telecommunications technology of the past, and now become an
important asset in today’s busy life. Cell phones have become the necessity in today’s
competitive environment to meet the emerging global economy.

Cell phones, also known as mobile phones or wireless phones, are hand-held phones
with built-in antennas2 . They can be carried out anywhere any time. Cell phones are
actually two-way radios, much like the walkie-talkies of the past, When some one talk
into cell phone receiver, it registers voice and converts the sound waves into radio
waves. These waves travel through the air & reaches to a receiver, which is usually
found at a base station. This base station will then send your call through a telephone
network to the actual destination. & vice versa. The first public commercial mobile
phone network was started in Finland in 1971. In the first generation mobile phones. In
1990 the second generation mobile phones were introduced with the introduction of
GSM (Global System for Mobile Communications), TDMA(Time Division Multiple
Access) & CDMA (Code Division Multiple Access) technologies. The third generation
mobile phone was not standardize on a technology, but based on some requirements
like 2 Mbit/s maximum data rate for indoors, & 384 kbit/s outdoors. India has shown
tremendous growth in mobile services in past few years. The survey shows that India
has 65,396,109 CDMA subscriber base and 184,678,957 GSM subscribers by February
20081 & 3 .

The third objective is to rate the service providers against the services provided by them
based on the RATER scale which includes the five dimensions of SERVQUAL model
like reliability, assurance, tangibility, empathy, and responsiveness workers in the
country. The sector of services in India has the biggest share in the country’s GDP for it
accounts for around 59% in 2012. (http://planningcommission.nic.in/
data/datatable/0904/tab_5.pdf) The uniqueness of the product/service provided by any
service provider is the quality of the service that they offer to their customers. This study
uses Berry’s SERVQUAL model to analyze the quality of the service provided with in
the mobile telecommunication industry. The study concludes with the comparative
analysis of the customer ratings for the services provided by the major mobile phone
service providers in Kerala. This is carried out based on the RATER scale provided by
SERVQUAL model. Customer satisfaction is one of the main factors which influence
customer retention as well as customer recruitment.

The Bharti AIRTEL landline and broadband services has there in the market of KARUR
couple of years and made there own identity in the market as a landline and broadband
service provider with a good number of high pulsing customers. Among those good
pulsing customers the SME customers are also one of them. AIRTEL mainly focus on
the customers of SME customers who pays the average monthly bill amount of above
Rs.2500/-. I am doing my thesis on this particular topic due to the reason that I believe it
will help me know more about the marketing strategy, competitiveness and also about
the customer behavior. My thesis will help the company to know more about their
strength, customers and the area where they have to concentrate more and also about
their competitor’s strategy. This will also help the company to build a good relationship
with the customers.

CUSTOMER

A customer is someone who makes use of the paid products of an individual or

organization. This is typically through purchasing or renting goods or services.

The word historically derives from “custom”, meaning “habit”; a customer was someone
who frequented a particular shop, who made it a habit to purchase goods of the sort the
shop sold there rather than elsewhere, and with whom the shopkeeper had to maintain a
relationship to keep his or her “custom”, meaning expected purchases in the future. The
shopkeeper remembered the sizes and preferences of his or her customers, for example.
The word did not refer to those who purchased things at a fair or bazaar, or from a street
vendor.

Types of customers
 Customers can be classified into two main groups: internal and external. Internal
customers work for the organization, possibly in another department or another branch.
External customers are essentially the general public.

Internal customers

People working in different departments of the vendor’s organization.

People working in different branches of the vendor’s organization.

External customers

 Individuals
 Businesses or business people, including suppliers, bankers and competitors.

Needs and Expectations

Customer needs may be defined as the facilities or services a customer requires to

achieve specific goals or objectives. Needs are generally no-negotiable, but may be
optional or of varying importance to the customer. In any transaction, customers seek
value-for-money, and will often consider a range of vendors’ offers before settling on a
purchase.

Customer expectations are based n perceived values of facilities or services as applied to

specific needs. Expectations are influenced by cultural values, advertising, marketing,
and other communications, both with the supplier and with other sources. Expectations
are negotiable and modifiable.

Both customer needs and expectations may be determined through interviews, surveys,
conversations or other methods of collecting information. Customers at times do not
have a clear understanding of their needs. Assisting in determining needs is a valuable
service to the customer, the process, expectations may be set or adjusted to correspond to
known product capabilities or service levels.

A Customer can be defined on a businessman’s or Sellers’s point of view as:-

 A customer is the most important person in any business.

 A customer is not dependent upon business. Business is dependent upon him.
 A customer is an essential part of the business- not an outsider
 A customer is not just money in the cash register. He is a human being with feelings and
deserves t be treated with respect.
 A customer is a person who comes to sellers with his needs and his wants. It is seller’s
job to fill them.
 A customer deserves the most courteous attention the businessmen can give him.
 He is the lifeblood of every business. He pays the salary. Without him business would
have to close the doors. As marketers we must never forget int.
 Thus customer is treated as the most important fundamental aspect of marketing other
than competitor and values.
CUSTOMER SATISFACTION

is a business term which is used to capture the idea of measuring how satisfied an enterprise’s
customers are with the organization’s efforts in a market place.

Every organization has customers of some kind. The organization provides products (goods
and/or services) of some kind to its customers through the mechanism of a marketplace. The
products that organization provides are subject to competition whether by similar product6s
or by substitution products.

The reason an organization is interested in the satisfaction of its customers is because

customers purchase the organization’s products. Te organization is interested in retaining its
existing customers and increasing the number of its customers.

Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of
the state of satisfaction will vary from person to person. The state of satisfaction depends on a
number of both psychological and physical variables.

The level of satisfaction can also vary depending on other options the customer may have and
other products against which the customer can compare the organization’s products.

Because satisfaction is basically a psychological state, it is a difficult thing to measure

quantitatively. In other words, there are no units of satisfaction that have been defined

Service quality refers to an attitude formed by a long-term overall evaluation of a firm’s

performance. A successful relationship between businesses and a customer is centered on
mutually satisfying goals. These goals tend to evolve with time, technology and financial and
political environment. In their book of ‘Principles of Marketing’ Armstrong and Kotler
(1996) described customer satisfaction as an emotion resulting from the evaluation of the
balance between the services described and provided against the felt needs that motivated the
purchase decision. Bitner and Zeithaml (2003) identified that satisfaction is the customers’
evaluation of the fulfillment of their requirements and expectations from a product or service.
As said by Boselie, Hesselink, and Wiele (2002) satisfaction is a positive, affective state
resulting from the review of all aspects of an organisation’s working relationship with
another Value of economy has constantly been a core reflection in a decision making action
by the management. Value for money can be defined as customers’ perception of a service in
terms of its economy, efficiency and effectiveness in relation to the cost of the service. Thus,
value of money for a service delineates that if an organisation achieves maximum benefit
from the goods and services it attains compared to the resources available to it. It looks into
the cost of goods and services as well as the quality, price, usage of resources, suitability,
fitness for purpose, and convenience to judge whether they form good value. Kotler and
Keller (2006) explained that customer value could be articulated as a ratio of the perception
of benefits to the total cost of ownership. Thus for any business to enhance the value of its
services it has to improve ways of perceived benefits or reduce the total cost of ownership.

The World Wide Web has grown incredibly since its inception in 1990 and by 1991 it was
opened for commercial use. The internet explosion has opened doors to a new electronic
world, which facilitated in taking business to another level. The lever-increasing penetration
of internet and social media, the purchasing behavior of Indian consumers has change
dramatically. The Indian consumer market has higher disposable income the development of
modern urban lifestyles and an increase in consumer awareness have affected buyer behavior
in cities, towns and even rural areas. Online shopping is a form of electronic commerce
whereby consumers directly buy goods and services from a seller over the internet without any
intermediary services. Customer satisfaction is eminent topic in several fields like marketing,
consumer research and psychology. The satisfactions a feeling which is a consequence of the
assessing process which notifies what has been received against what was expected,
including the purchase decision and needs associated with the purchase. Internet has been
constantly gaining importance nowadays. The number of people preferring internet for their
day to day activities also keeps on increasing. People today are doing most of their domestic
works online. Internet and online shopping is been a boon to people to manage their shopping
and work equally. Online shopping allows the consumers to directly buy goods from the
seller through internet. It is also called as web-store, e-shop or online store. Online customers
must have access to the internet to buy goods form online. People can look at these websites
of online stores and purchase products in comfort form home. Until recently, the consumers
were mainly visiting online to reserve hotel rooms, buy air, rail or movie tickets for buying
books and electronic gadgets, but now more and more offline product like apparels for all
segments, cosmetics, accessories, shoes and consumer durables are now being purchased
online.

Women are most powerful consumers in the world as they control almost 80 percent of the
household spending. And no longer can the women’s spending powers and influence be
neglected. The role of women in the society and their effects has changed. A marketer cannot
ignore her role as a mom and talk to her as a girl or women, and similarly a girl cannot be
approached like a woman. Purchases are emotionally significant and communication is
important throughout the buying decision. Women are great influencers when it comes to
buying decision of the family. No doubt that when it comes to individual buying, women are
the sole decision makers in the decision.

Generally speaking the trend of e-commerce has been increased rapidly in the recent years
with the development of internet and due to the easy accessibility of internet usage the
introduction and implementation of internet technologies has created new market for
manufacturers and service providers and also has provided new arena for innovative
marketing strategies by the professionals. There are various reasons of shifting the customers
buying patterns towards online retail shops. The facility of comparing product with
competitive products on the basis of price, colour, size and quality is one of the biggest
benefits of online shopping. Moreover the product remains at its place even it purchased.

Retail is the sale of goods to end users, not for resale. The word retail is derived from the
French word retailer, meaning to cut a piece off or to break bulk. In simple terms, it implies a
first hand transaction with the customer. Retailing can be defined as the buying and selling of
goods and services. It can also be defined as the timely delivery of goods and services
demanded by consumers at prices that are competitive and affordable. (Ms.VidushiHanda,
Mr.Navneet Grover) e-Commerce in India is booming now a days. According to a study
conducted by Google India, there were 35 million online shoppers in India in 2014 and is
expected to cross 100 million mark by the end of year 2016. Broadband internet and
explosive growth of mobile phones are fuelling this growth further.

Companies like Flipkart have already crossed billion dollar valuation. If any one has a
product to sell, this is perhaps the best time to start selling it through online. Here is an
ultimate guide to teach the person how to sell online in India.

Competing in a high-pressure business scenario has become a challenge for retailers. As an

effective alternative sales channel sellers are looking at the internet, which gives them direct
access to target customers. Online retailing (also known as e-retail) is a web-enabled interface
between a retailer and its target consumers for selling products and services on the web with
the facility of ecommerce. These kinds of retailers are also known as e-market. Almost all big
retailers are now electronically present on the World Wide Web. The online shopping
environment has gone through a lot of transformation and today it is still developing in a
much diversified way. It has become very popular in the areas of apparel, arts and
handicrafts, books, car rentals, computers and electronics, cosmetics, financial services, gifts
and novelties, etc. Some of the major advantages of e-retailing which makes it popular among
the retailers are: low investment cost, direct access to target customers, quick return on
investment This kind of retail format helps the retailers to serve their customer quickly and
more efficiently by offering them a detailed portfolio of products and services. On the other
hand, availability of the point of transaction data helps the retailers to analyze and interpret
their target customers. It has become the most efficient way to offer valuable information
It takes time for individuals to build up confidence to shop online. Initially shoppers may
restrict themselves to searching for information or using e-mail. As their confidence grows
their use of the Internet for purchase is likely to increase with a move to higher value items
and more frequent purchases.

Online shopping is the process whereby consumers directly buy goods, services etc. from a
seller interactively in real-time without an intermediary service over the internet. Online
shopping is the process of buying goods and services from merchants who sell on the
Internet. Since the emergence of the World Wide Web, merchants have sought to sell their
products to people who surf the Internet. Shoppers can visit web stores from the comfort of
their homes and shop as they sit in front of the computer. Consumers buy a variety of items
from online stores
Nowadays, online shopping is a fast growing phenomenon. Growing numbers of consumers
shop online to purchase goods and services, gather product information or even browse for
enjoyment. Online shopping environment are therefore playing an increasing role in the
overall relationship between markets and their consumers (look et al., 2008). That is,
consumer-purchases are mainly based on the cyberspace appearance such as pictures, image,
quality information, and video clips of the product, not on the actual experience. As the
internet has now become a truly global phenomenon, the number of internet users worldwide
is expected to reach 1.8 billion by 2010 according to the survey of clickz stats, this growing
and diverse internet population means the people having diverse taste and purposes are now
going to web for information and to buy products and services.

The wide use of internet and the rapid growth of technology have created a new market for
both the customers and business. Now day’s internet is not just another medium to get in
touch with customers, but it is an important channel to find potential customers as well as
channel to continue relationship with existing customers.

Essentially, the idea of online shopping is to lead customers to a convenient way of shopping.
Customers will be able to save their time and money, plus retrieve all the product information
with just few clicks in few minutes. Plus, purchasing can be done anywhere, anytime
according to their preferences.

In the era of high technology, the use of internet was growing tremendously around the
world. According to the Internet World Stats, the internet users in Asia are highest rather than
other region by year 2015. The region of Asia contributes 48% of internet users in the world
while Europe is only 18% of internet users. In addition, Malaysia was listed under top 10 of
Asian internet countries with the rank 10. As well as 20.6 millions of internet users are in
Malaysia in year 2015. The use of internet increase rapidly.

The growing of internet usage around the world has opened new marketplace and
revolutionized the process of buying and selling goods. Therefore the prospect for online
shopping was developed. Online shopping create new opportunity for both customer and
organization where it changing the way of doing business all over the world. Online shopping
is one of the forms of electronic commerce. In other words online shopping can defined as
purchasing of goods via internet by using electronic devices such as smart phone, laptop, and
many more. In short, the tagline more suit for online shopping is “anything, anytime,
anywhere. Customers can purchasing any kind of product and services with the availability of
24 hours and wherever there are located by access to internet. Basically, customer using three
types of payment methods for completes their online shopping, there are credit or debit card,
e-wallet and cash on delivery. Today, internet probably is a key contributor to the expansion
of online shopping where most of customer prefers to shop through online. By the way,
shopping through online shopping were build easier and convenience life for the customers.
Online shopping be the best for the shopping since nowadays customers are more
materialistic and running for their life and career with the limited of time. Online shopping
was totally dissimilar with the physical retail store where it save the time and cost of the
customers. For instance, customers who are going to consume goods through physical retail
store must have to set up a time for shopping, need to prepare transportation fee other than
the payment for the goods, search for the parking lot in conventional store, then stressed with
crowded environment and lastly wait in the long queue for end the shopping process.
However, online shopping is too easy and more efficient where customers can purchase
goods whenever they free and wherever they are and they can enjoy window shopping
without any buying pressure. In short online shopping enhance the life of customer by
formulate easier simpler and happier life of shopping.

 Department wise capability of the supplier.

 Technological and engineering or re-engineering aspects of products and services.

 Type and quality of response provided by the supplier.

 Supplier’s capability to commit on deadlines and how efficiently they are met.

 Customer service provided by the supplier.

 Complaint management.

 Cost, quality, performance and efficiency of the product.

 Supplier’s personal facets like etiquettes and friendliness.

 Supplier’s ability to manage whole customer life cycle.

 Service quality defines the future of customer loyalty.

 The key for success of organization depends on how well it makes customer to feel good
about being with.
  Compatible and hassle free functions and operations.

Measures of Service Quality Measuring service quality and customer satisfaction are difficult due to
its unique characteristics: Intangibility, heterogeneity, inseparability and perishability (Bateson,
1995). Service quality is linked to the concepts of perceptions and expectations (Parasuraman et al.,
1985, 1988; Lewis and Mitchell, 1990). Customers’ perceptions of service quality result from a
comparison of their before-service expectations with their actualservice experience. The service will
be considered excellent, if perceptions exceed expectations; it will be regarded as good or adequate,
if it only equals the expectations; the service will be classed as bad, poor or deficient, if it does not
meet them (Vázquez et al., 2001). Based on this perspective, Parasuraman et al. developed a scale
for measuring service quality, which is mostly popular known as SERVQUAL. This scale
operationalizes service quality by calculating the difference between expectations and perceptions,
evaluating both in relation to the 22 items that represent five service quality dimensions known as
‘tangibles’, ‘reliability’, ‘responsiveness’, ‘assurance’ and ‘empathy

Factors affecting customer satisfaction

The counterparts of satisfaction are always expectations and experiences. Level of

expectations level will create a basis and comparison base for experiences. For example, if
you have two hotels, one a five star hotel and the other just a two star hotel, of course your
expectations for the five star hotel are much higher than for the other one. If the service level
in both is equal, when a customer has high expectations like with the five star hotel he might
feel disappointed and with the two star hotel with which the customer had lower expectations
he would be positively surprised. In customer satisfaction leadership when creating
satisfaction, it is important that you can affect both expectations and experiences. Still the
expectations are always a starting point