CUSTOMER SATISFACTION TOWARDS VI COMMUNICATION AT KOLAR

Synopsis report submitted in partial fulfillment of the requirements for the

award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

of
BENGALURU CITY UNIVERSITY

By
Chiranjeevi K V
MB190828
Under the guidance of

Ms.Ashwini

Assistant Professor

ADARSH INSTITUTE OF MANAGEMENT AND INFORMATION

TECHNOLOGY
Bengaluru City University

2019-2021

DECLARATION BY THE STUDENT

I hereby declare that “Customer satisfaction towards VI Communication at Kolar” is the result of
the project work carried out by me under the guidance of Assistant Prof. Ms. Ashwini (if any) in
partial fulfillment for the award of Master’s Degree in Business Administration by Bengaluru
City University.

I also declare that this project is the outcome of my own efforts and that it has not been
submitted to any other University or Institute for the award of any other degree or Diploma or
Certificate.

Place: Bangalore Name: Chiranjeevi K V

Date: Register Number: MB190828

 GUIDE CERTIFICATE

This is to certify that the Project Report title “Customer satisfaction towards VI Communication
at Kolar” Submitted by Chiranjeevi K V Reg. No MB190828 to Bengaluru City University,
Bangalore for the award of Degree of MASTER OF BUSINESS ADMINISTRATION is a
record of work carried out by him/her under my guidance.

Place: Bangalore
Date: Signature
 ACKNOWLEDGEMENT

It gives me a great pleasure to acknowledge with thanks the assistance and the contribution of
many individuals who have been actively involved at various stages of this project to make it a
success. I express my sense of gratitude to Dr.Venkataraman R, Director and Principal, and
Mrs. SumangalaTalur, Co-ordinator Department of MBA of Adarsh Institute of Management
and Information Technology, Bangalore, for giving me this precious opportunity to execute the
project work. I would also like to express my heart full thanks and gratitude to my mentor guide
Ms. Ashwini Assistant Professor, Adarsh Institute of Management and Information Technology
for their inspiring guidance and generous help given to me throughout the preparation of the
project. I cannot conclude this acknowledgement without mentioning the affection of various
professors with their constant support and helped me, patted me for this venture. I whole
heartedly thank them.

Place: Bangalore Name: Chiranjeevi K V

Date: Register Number: MB190828

 CERTIFICATE OF ORIGINALITY
(To be given by the Institution on its letterhead)

Date:
This is to certify that the dissertation titled”------------------------------------------------------------
------------“is an original work of Mr./Ms. ; bearing University Register Number
and is being submitted in partial fulfillment for the award of the Master’s Degree in Business
Administration of Bengaluru City University. The report has not been submitted earlier either to
this University /Institution for the fulfillment of the requirement of a course of study
.Mr./Ms………………… is guided by Mr./Ms. /Dr………………………..
who is the Faculty Guide as per the regulations of Bengaluru City University.

TABLE OF CONTENTS
 Chapter No. Particulars Page No.

Abstract

1 Introduction

2 Review of literature and Research design

3 Profile of the Selected Organization and Respondents

4 Data Analysis and Interpretation

5 Findings, conclusions and Suggestions

Abstract
In this competitive era, Mergers and Acquisitions have become an integral growth strategy. Over
the last two decades, due to the introduction of major reforms by the government in innovation
and technology, the scenario of telecom industry of India has changed drastically. In the telecom
sector, mergers and acquisitions have been increasing to a great extent and companies are using
it as a strategic tool for improving their revenue and efficiency. In the past ten years, Indian
telecom sector has restructuring of the big shot players like Vodafone-Hutchison Essar,
Reliance- Aircel etc. The country is again now ready to observe the two major prospective
mergers in telecom sector, that is, merger of Airtel with Telenor and Idea with Vodafone. This
paper is an attempt to analyze the strategic reasons for the forthcoming mergers of the giant
players in telecommunication and its impact on market revenue share, stock price and
profitability of the merged company. The impact of these prospective mergers on the other
leading mobile operators is studied to examine the challenges and synergies involved in these
mergers. The study is based on analysis of secondary data collected from various authentic
sources.

Keywords: Mergers, Acquisitions, Telecom, Synergy, Valuation

Chapter1
Introduction
Explore some of the ways in which modern telecommunications are have transformed the world
in which we live. They have had a huge impact on government, business, commerce, transport,
culture and relationship-changes that seems to be accelerating.

As we stand at the beginning of the 21 st century, there are four main trends that are shaping the
world of telecommunications, media and entertainment. Those trends are digitalization,
convergence, fragmenting audiences and the growth of the internet.

Today communication has been modernized, from the telegraphic communication into pocket
sized mobile communications. This communication plays very crucial role to connect the people
from the different places within seconds at any time, at any place in the world. In this 21 st
century people are taking any marketing decisions by mobile communication.

It also helps the company to advertise their products and services within less time. Reaching
more people, with cost. It helps not only in business; it covers all the other activity, which take
place. So no person can live without communication in the present competitive world.

Telephone system in India

India’s telephone system, like many other aspects of telecommunications, is in
government sector, under the control of the ministry of information and
broadcasting. The modernization of the telephone system in India has been under
way since 1986 when mahanagar telephone Nigam, a government corporation
was established to operate system in Bombay and New Delhi and
videshsancharnigam, also government owned, was set up as the overseas carrier.
Progress was slow, however the rest of the department of telecommunications
until 1994 when basic telephone services were open to private-sector
competition.

This work is done basically to understand the Kolar Customer’s behavior towards
Idea service in the cellular communication network and to know the factors when
compared it with competitor’s networks. This study enables us to know the
Customer preference, behavior and satisfaction towards Idea at Kolar.

NEED FOR THE STUDY:

Customer behavior is to do with the activities of individuals in braining and using
the goods and services. The victory of any business until depends (or) rests on the
Customers who are willing to pay for the product / services offered by that
company. The firm must be aware of the market, Customer wants well in advance
of production and the Customer wants must be monitored continuously for the
success over competitors. The study of Customer behavior is must to adjust the 4
P’s (PRODUCT, PRICE, PLACE and PROMOTIO) of marketing mix in the light of
changing nature of Customer behavior.

OBJECTIVES OF THE STUDY:

 To study the existing market share of the Idea service
in the cellular communication network.
 To know the various influencing factors, this made
them to hold this Idea.
 To know the Customer opinion on the various features
provided by Idea.
 To suggest for the better prospects in the market.
THEORETICAL BACKGOUND

PART-B: ABOUT SUBJECT

CUSTOMER SATISFACTION

Meaning:
 Customer satisfaction is a term frequently used in marketing. It is a measure of
how products and services supplied by a company meet customer expectation.

Definitions:

Customer satisfaction is the number of customers, or percentage of total

customers, whose reported experience with a firm, its products, or its services
(ratings) exceeds specified satisfaction goals.

-Farris, Paul W

Customer satisfaction is the extent to which a company's business efforts

matches or exceeds the expectations of the consumer.

-Neil T. Bendle

The degree of satisfaction provided by the goods or services of a company as

measured by the number of repeat customers.

-Phillip E. Pfeifer

Customer satisfaction is a measurement of how pleased customers are with a

particular product or service.

-John L. Giese

“Customer satisfaction, a business term, is a measure of how products and

services supplied by a company meet or surpass customer expectation”.

-David.J.Reibstein

MARKETING:

Definitions of Marketing:

“Marketing is defined as a social and management process by which individual

and groups obtain what they need and want through creating, offering and
exchanging products of value with others”.
 -PETER DRUCKER

“Marketing is the process of determining customer demands for a product or

service motivating its sales and distributing it into ultimate consumption at a
profit.”

-PHILIP KOTLER

American Marketing Association, “Marketing as performance of business

activities that direct the flow of goods and activities from producers to
Customer or user”.

“Marketing consists of those efforts which effect transfer in ownership of goods

and case for their Physical distribution.”

-CLARK & CLARK

According to traditional view, Marketing is a many physical process or set of

activities connected with the exchange of goods and services. The process of
marketing starts after the goods have been produced. It is product oriented or
sales oriented and producer concentrates on what they produce and sell, the
needs of the Customers are not taken into account.

Marketing is a very broad based activity and consequently it calls for a broad
Definition. Now the essence of marketing is a transaction- an exchange-
intends to satisfy human needs and wants. Marketing consists of all activities
designed to generate and facilitate any exchange intended to satisfy human
needs and wants.
 Marketing is defined as a social & managerial process by which individuals
and group obtain what they need and want through creating and exchanging
products and value with others.

IMPORTANCE OF CUSTOMER SATISFACTION

1. Understanding the needs of the customer is critical.

2. Customer satisfaction is the foundation of a good business.
3. Enhance Successful Strategies.
4. By inviting customers to talk to you and through careful design of your
survey you can effectively inform your customers about things they may not
know or remind them of important changes or innovations in your
organization.
5. Satisfied customers are those who do not have outstanding negative issues
concerning you on their mind.

OTHER RELEVANT ASPECTS OF THE SUBJECT

Evaluation of markets:

The need for market evolved as a historical process in the early stages of
civilisation. Each person produced whatever he needed for himself. He made
his own clothes, killed animals for his food in general, looked after his own and
his immediate family requirements. Later came age of specialisation and each
person made a set of item and then exchanged the excess with the other for
items, which he needed. This was he needed. This was the better stage. Thus,
a person who looked after cows, had more milk, and then he could use for
himself. So, he sold the excess to others who had no milk. In return, he got
 from them, clothes, footwear, food which he did not have, but which the
others produced in large quantities.

From there, civilisation moved to the stage of markets that is local market,
where people brought their produce to a particular spot and exchanged their
goods there. In India, in remote villages, local bazaars are the meeting points
where commodities, the temporary bazaar have evolved into a permanent
feature with stall some shops.

Classification of markets:

Markets can be classified in many ways. Generally markets are classified on

the following basis.

a) On the basis of area

 Local market
 National market
 World market

b) On the basis of time

 Short period market
 Long period market

c) On the basis of transactions

 Spot market
 Future market
 d) On the basis of volume business
 Wholesale market
 Retail market

e) On the basis of regulations

 Regulated market
 Unregulated market

f) On the basis of goods

 Commodity market
 Capital market
g) On the basis of nature of competition
 Perfect market
 Imperfect market
Evolution of marketing

Marketing is a comparatively new field, but strangely enough, it has also

been of the world’s oldest professions. The formal study of ‘exchange process and
relationship – which is called marketing’ started in 1920s.

With the industrial revolution, which gave a fillip to the means of

production of goods, the speed of selling could not keep pace with speed of
manufacturer and a solution had to be found. Thus, arouse the need for
marketing knowing what the customer wants before planning to make it, offering
products which the customer wants to buy, not to produce which we find
convenient to manufacture, organising distribution system which matches
customer’s habit- not the habits of our industry, and taking production and
distribution decision on the basis of the feedback from the market place. Since
1920, the situation was reverted and the supply generally exceeds the demand.
Thus, the stage has set to shift the spot light from production to marketing.

The ultimate purpose of production is the satisfaction of human wants.

Production of goods has no meaning unless they are distributed to Customers.
The goods produced should be transferred to Customers at a time when they
needed them. Marketing helps in doing so.

Importance of marketing in today’s world:

Marketing is considered to be the sole of modern business and society.

Marketing is the connecting link between the producer and Customers.

Marketing process bring new and improved quality goods to Customers,
marketing raises the standard of living of the people by satisfying varied and
innumerable needs and wants of Customers. Marketing facilities mass production
it will lower the cost of production and prices to Customers. Lower price to
Customers means a real rise in the national income.

Marketing provides employment continuous production and continuous

marketing offers wide employment and income to about 30% - 40% of the total
population.

Marketing generates revenue to the firm. It is the art of earning profit

through profitable sales, it gives up to date information to the top management
about nature and character of demand. All management decisions are taken on
the basis of marketing information.

Tremendous changed have taken place around us. The taste, preference,
and attitude of Customer are ever changing. Therefore it becomes essential to
introduce new products, to make necessary changes in the product and to find
new uses for the existing product. Marketing is the channel of communicating the
changing fashion, changing preference, changing styles, etc, to the top
management.

Even countries like Great Britain, Italy, Sweden, etc, are looking to modern
marketing practices as a way to improve their economic health. Communist
countries are advertising, pricing and other marketing activities to improve their
domestic distribution system and to compete more effectively in international
trade.

Marketing concept:

As business has come to know that marketing is virtually important to the

success of a firm, an entirely new way of thinking in a new philosophy has
evolved, which is known as marketing concept. The concept is based on three
fundamental benefits. They are:-

 All company planning and operation should be Customer oriented.

 The goal of the firm should be profitable sales and not volume for the sake
of volumes alone.
 All marketing activities of the firm should be organizationally co-oriented.

In its fullest sense concept is a philosophy of business that states that the
Customer’s want satisfaction is the economic and social justification for a
firm’s existence. Consequently, all the company activities must be devoted to
finding out what the consumer wants and then satisfying those wants, while
still making profit over a long run.

Opportunities for marketing success:

 1. Opportunities to provide customer satisfaction, which is of paramount
importance. It is ultimate justification for marketing. It represents discovery
of Customer wants yet to be satisfaction.

2. Opportunity to innovate to develop new product, to device, to find new

ways of distributing products to discover new and creative means of
promotion. This can be regarded as best opportunity for developing
meaningful marketing action.

3. Opportunity to improve marketing efficiency is also challenging.

4. Opportunity to create competitive difference is big challenge in all means of

promotion. It gives individual status.

5. Opportunity market, which is based on market segmentation and extremely

useful and important device in modern marketing.

CUSTOMER SATISFACTION CHART

Customer adaption process:

The following are the stages in the customer adoption process, when a
customer buys a product are:

1. Awareness:
The Customer in this stage becomes aware the product but he is not
equipped are furnished the information.
2. Interest:
The awareness creates interest and paves way to seek information about
the product.
3. Evaluation:
The Customer considers the merit of trying the product.
4. Trail:
The Customer tries the product to judge its value and benefit.
5. Adoption:
Satisfied with the trail of the product the Customer becomes regular
user and an over a period of time a brand loyal customer.
Factors:

 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.
 Complaint management.
 Cost, quality, performance and efficiency of the product.
 Supplier’s ability to manage whole customer life cycle.
 Supplier’s personal facts like etiquettes and friendliness.

Definition of Marketing:
A social definition shows role of marketing society. One marketer said that
marketing’s role is to “Deliver a higher standard of living”. Here is a social
definition serves our purpose: Marketing is a social process by which individuals
and groups obtain what they need and that through creating, offering and freely
exchanging products and services of value with other. A managerial definition
says that, marketing has often been described as: The art of selling products, but
the people are surprised when they that the most important part of the
marketing is to selling! Selling is the only tip of marketing iceberg. According to
peter ducker a leading management theorist puts in this way:

There will always one can assume, be need for some selling. But the aim of
marketing is to make selling superfluous. The aim of marketing is to know and
understands the customer so well that the product or service fits him and sell
itself. Ideally, marketing should result in a customer who is ready to buy. All that
should be needed then is to make the product or service available.

When Sony designed its walkman, when Nintendo designed a superior video
game, When Toyota introduced its Lexus automobile; these manufactures were
swapped with orders because they had designed the “right” product based on
careful marketing homework.

MARKETING STRATEGY OR MARKETING MIX

Meaning:

The marketing mix is the set of marketing tools is the firm uses to pursue its
marketing objectives in the target market.

A successful marketing strategy must have marketing mix as well as large

market for which the marketing mix prepared, Combination of a number of
devices or types of marketing activities that the co-ordinates into a single
marketing program to reach particular target.

The combination of these marketing methods or devices is known as marketing

mix.

MC Carthy classified these groups into four broad groups that he called for p’s
marketing mixes are:

1. product

2. price
 3. promotion

4. place

 Product :
A tangible object or an intangible service that is mass produced or manufactured
on a large scale with a specific volume of units. Intangible products are service
based like the tourism industry& the hotel industry or codes-based products like
cell phone load and credits. Typical examples of a mass produced tangible object
are the motor car and the disposable razor. A less obvious but ubiquitous mass
produced service is a computer operating system. Packaging also needs to be
taken into consideration.

 Price :
The price is the amount a customer pays for the product. It is determined by a
number of factors including market share, competition, material costs, product
identity and the customer's perceived value of the product. The business may
increase or decrease the price of product if other stores have the same product.

 Place :
Place represents the location where a product can be purchased. It is often referred
to as the distribution channel. It can include any physical store as well as virtual
stores on the Internet.

 Promotion:
It represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements: advertising, public relations,
 word of mouth and point of sale. A certain amount of crossover occurs when
promotion uses the four principal elements together, which is common in film
promotion. Advertising covers any communication that is paid for, from cinema
commercials, radio and Internet through print media and billboards. Public
relations are where the communication is not directly paid for and includes press
releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and
events. Word of mouth is any apparently informal communication about the
product by ordinary individuals, satisfied customers or people specifically engaged
to create word of mouth momentum. Sales staff often plays an important role in
word of mouth and Public Relations (see Product above).

Broadly defined, optimizing the marketing mix is the primary responsibility of

marketing. By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness. Making small
changes in the marketing mix is typically considered to be a tactical change.
ParmBains says making large changes in any of the four Ps can be considered
strategic. For example, a large change in the price, say from $19.00 to $39.00
would be considered a strategic change in the position of the product. However a
change of $130 to $129.99 would be considered a tactical change, potentially
related to a promotional offer.

The term 'marketing mix' however, does not imply that the 4P elements represent
options. They are not trade-offs but are fundamental marketing issues that always
need to be addressed. They are the fundamental actions that marketing requires
whether determined explicitly or by default.
 A figure showing marketing mix

Product Variety, Quality Price

Designer, Quality
Feauters, Brand Name, List Price Discounts
Packaging sizes, Services Allowances,
Warranties, Returns Payment, Period,
Credit period
 Target
Customer
Intended
Positioning

Promotion:
Advertising, Personal Place: Channels, Coverage
Selling, Sales, Promotion, PublicAssortments,
relation Locations, Inventory, Transportation, Logistics

Customer Satisfaction:
Whether the buyer is satisfied after purchaser depends on the offer’s
performance in relation to the buyer’s expectations. In general, satisfaction is a
person’s feeling of pleasure of disappointment resulting relation to his or her
expectations, If the performance falls short of expectations, the customers
dissatisfied. If the performance matches the expectations, the customer is
satisfied. If the performance exceeds expectations, the customer is highly satisfied
or delighted.

The link between customer satisfaction and customer loyalty is not proportional.
Suppose customer satisfaction is rated on a scale from one to five. At a very low
level of customer satisfaction (level one), customers are likely to abandon the
company and even bad-mouth it. At levels two to four, customers are fairly
satisfied but still find it easy to switch when a better offers comes along. At level
five, the customer is very likely to repurchase and repurchase and even spread
good work of mouth about the company. High satisfaction or delight creates an
ambitioned bond with the brand or company, not just a rational preference.

A formal approach to this customer-focused marketing mix is known as Four

Cs (Commodity, Cost, Channel, Communication).

Koichi Shimizu proposed a four Cs classification in 1973.

The four elements are:
1. Commodity:
The product for the consumers or citizens. Not product out.

2. Cost :
Producing cost, selling cost, purchasing cost and social cost.

3. Channel:
Flow of commodity: marketing channels.

4. Communication :
Marketing communication: It doesn't promote the sales.
The Four Cs can be compared to the Four Ps. This system is basically the four Ps
renamed and reworded to provide a customer focus. The four Cs Model provides a
demand/customer centric version alternative to the well-known four Ps supply side
model (product, price, place, promotion) of marketing management. This is a part
of 7Cs Compass Model.

Robert F. Lauterborn proposed a four Cs classification in 1993. The Four Cs model

is more Customer-oriented and attempts to better fit the movement from mass
marketing to niche marketing. The Product part of the Four Ps model is replaced
by Customer or Customer Models, shifting the focus to satisfying the consumer
needs. Another C replacement for Product is Capable. By defining offerings as
individual capabilities that when combined and focused to a specific industry,
creates a custom solution rather than pigeon-holing a customer into a product.
Pricing is replaced by Cost reflecting the total cost of ownership. Many factors
affect Cost, including but not limited to the customer's cost to change or implement
the new product or service and the customer's cost for not selecting a competitor's
product or service. Placement is replaced by Convenience. With the rise of
internet and hybrid models of purchasing, Place is becoming less relevant.
Convenience takes into account the ease of buying the product, finding the
product, finding information about the product, and several other factors. Finally,
the Promotions feature is replaced by Communication which represents a broader
focus than simply Promotions. Communications can include advertising, public
relations, personal selling, viral advertising, and any form of communication
between the firm and the consumer.
The Four Cs model has been criticized for simply being nothing more than the
Four Ps with different points of emphasis. In particular, the Four Cs inclusion of
customers in the marketing mix is criticized, since customers are a target of
 marketing, while the other elements of the marketing mix are tactics. The Four Cs
also excludes numerous strategies for product development, distribution, and
pricing, while assuming that consumers want two-way communications with
companies.

Characteristics affecting Customer behavior

Culture
The set of basic values, perceptions, wants, and behavior learned by a member of
society from family and other important institution.

Subculture
A group of people with shared value systems based on common life experiences
and situation.

Social classes
Relatively permanent and ordered divisions in the society whose members share
similar values, interest and behaviors.

Reference group
Two or more people who interact to accomplish individual or mutual goals.
 Family buying decision
Depending on the production and situation, individual family members different
amount of influence.

Role of status
A person belongs to many groups-families, clubs, organization. The person
position in each group can be defined in terms of both role and status.

Age and life cycle stage

People change the goods and services,They buy over their life times.

Occupation
A person’s occupation affects the goods and services bought.

Economics situation
A person’s economic situation will affect product choice.

Life style
People coming from the same subculture, social class, and occupation may here
quite different lifestyle. Life style is the person’s pattern of living as expressed in
his or her psycho graphics.

Personality and self-concepts

A person’s distinguishing psychological characteristics that lead to relatively
consistent and lasting responses to his or her own environmental.
Motivation
Motivator’s researchers collect in depth information from small samples of Customer
to uncover the deeper motives for their product choice.

Perception
The process by which people select, organize, interpret information to form a
meaningful picture of the world.

Learning
Changes in individual behavior arising from experience.

Belief
A descriptive thought that a person holds about something.