Professional Documents
Culture Documents
Measures of
Cell-phone service providers (GSM)
– An empirical study
Abstract
Indian mobile phone industry has witnessed a remarkable growth, in the recent years.
Cheap mobile handsets, availability of services at affordable rates, low initial cost and reasonable
recurring charges have motivated several million people to become the customers of leading
service providers. Let it be business people, professionals, employed, housewives, senior
citizens, youth population including the students, or any other category, everyone considers cell-
phone to be an integral part of their day to day life.
In this context, it would be necessary and interesting too, to analyze whether the mobile
service providers are successful in managing and retaining the overwhelming customer strength,
what are the strategies they adopt to retain the existing customers and to attract the new
customers, and how do their CRM strategies work out.
Keyword: CRM, Customer-in-absentia, Attitude, Grievance-handling, Accessibility,
Alpha-testing
1. To analyze various CRM measures adopted by the leading GSM service providers.
This is an empirical study which is based on the fresh/first-hand data collected from the
customers of the GSM service providers, at Kasargod , Kerala
Sampling technique
A combination of ‘Quota sampling’ and ‘purposive sampling’ was adopted for the
purpose of data collection. The population was divided into the strata like ‘College Students’,
‘employed’ and ‘others’. A tool, designed and standardized for the purpose of this study was
used for data collection.
The sampling unit is consisting of two colleges in Pollachi and the general public. The
sample size is limited to 120 respondents.
Conceptual framework
The organizations can motivate and retain the existing customers by various retention
strategies and selling techniques. One of those strategies is Customer Relationship Management.
The attitude of the customer is formed, based on the experience of the customer that he has had
from various aspects of the company’s operations. The attitude may be positive or negative.
The direction and the degree of attitude of the customers towards the CRM are normally
determined by the quality of CRM measures adopted by the companies. Here, the researcher has
taken some variables to measures the CRM and also the attitude of the customers.
Variables of the study
Two sets of variables ‘independent’ and ‘dependent’ are taken up for the purpose of this study.
The following diagram shows the variables in detail.
Independent Variables
(CRM components)
Schemes
Rationality in tariff
Offers
Response to complaints Dependent Variable
Value-added services
Updating services
Reachability
Accessibility
Technology
Tools of Analysis
The following statistical tools have been used for analyzing the data collected for the
purpose of this study.
1. Cronbach’s Alpha testing (Test for internal-consistency and reliability of data)
2. Correlation analysis
Implications of the Study
This study has brought out some interesting facts about the CRM concept that is practiced
by the GSM service providers. Though the study has been carried on only in Kasargod , kerala ,
some of the findings can be generalized to other areas also. This study would also give greater
scope for the similar research studies in the same line in future.
Cronbach's Alpha Testing
Cronbach's alpha will generally increase when the correlations between the items
increase. For this reason the coefficient is also called the internal consistency or the internal
consistency reliability of the test. Cronbach's alpha measures how well a set of items (or
variables) measures a single uni-dimensional latent construct. When data have a
multidimensional structure, Cronbach's alpha will usually be low. Technically speaking,
Cronbach's alpha is not a statistical test - it is a coefficient of reliability (or consistency).
Cronbach's alpha can be written as a function of the number of test items and the average inter-
correlation among the items.
α can take values between negative infinity and 1 (although only positive values make
sense). Some professionals, as a rule of thumb, require a reliability of 0.70 or higher (obtained on
a substantial sample) before they will use an instrument.
Excluded 0 .0 .700 14
As shown above, 14 variables leading to CRM were taken for the Cronbach’s Alpha
Testing. If the Cronbach’s alpha value is 0.7 and above, it will indicate a good amount of
internal consistency and reliability of data. Here, the alpha is exactly showing the highly
positive and encouraging value of “0.7”. It shows that the internal consistency and reliability of
data are good. If some of the items are reduced, the alpha value may further go higher.
Educational Qualification
Frequency Percent Valid Percent Cumulative Percent
Valid Below SSLC 32 26.7 26.7 26.7
SSLC 2 1.7 1.7 28.3
PUC/H.Sc./Diploma 10 8.3 8.3 36.7
Degree 58 48.3 48.3 85.0
PG 2 1.7 1.7 86.7
Professional Degree 16 13.3 13.3 100.0
Total 120 100.0 100.0
Source: Primary Data
It is to be noted that 76 respondents out of 120 are degree holders. Thus it is assumed that
majority of the respondents are capable of well understanding the requisites for a better CRM and they
have given most appropriate response.
Present Status
Frequency Percent Valid Percent Cumulative Percent
Valid Government Employee 4 3.3 3.3 3.3
Private Employee 23 19.2 19.2 22.5
Business 20 16.7 16.7 39.2
College Student 59 49.2 49.2 88.3
Retired Govt employee 2 1.7 1.7 90.0
House-Wife 12 10.0 10.0 100.0
Total 120 100.0 100.0
Source: Primary Data
It was earlier decided to have quota sampling consisting of three strata viz. the college
students (50%), employed (25%) and others (25%) which should have been leading to collect
data from 60, 30 and 30 respondents respectively. But, during the field work, the researcher
could collect data only from 59 and 27 respondents respectively from the first two categories.
So, the response was collected from 34 members of the third category.
Monthly Income
Frequency Percent Valid Percent Cumulative Percent
Valid Below 10000 80 66.7 66.7 66.7
10000 to 15000 27 22.5 22.5 89.2
15000 to 20000 4 3.3 3.3 92.5
30000 to 50000 9 7.5 7.5 100.0
Total 120 100.0 100.0 Source: Primary Data
As the researcher wanted to test whether there was any impact of level of income on the
perception of the respondents regarding CRM measures, it was included in the list of back-
ground variables. Exactly two-third of the respondents are in the ‘below 10000’ income
category.
Longevity of using mobile phone
Frequency Percent Valid Percent Cumulative Percent
Valid 1 to 3 years 47 39.2 39.2 39.2
3 to 5 years 34 28.3 28.3 67.5
More than 5 years 39 32.5 32.5 100.0
Total 120 100.0 100.0
Source: Primary Data
The longevity of the use of mobile phones by the respondents was also considered to be a
significant factor in deciding the satisfaction over the CRM measure. To test this aspect, it was
added as one of the variables. More than 60 percent of the users have been using mobiles for
more than 3 years. This period is adequate to understand and rate the CRM measures taken-up
for the study.
Net work used
Frequency Percent Valid Percent Cumulative Percent
Valid AIRCEL 80 66.7 66.7 66.7
AIRTEL 30 25.0 25.0 91.7
BSNL 10 8.3 8.3 100.0
Total 120 100.0 100.0
Source: Primary Data
There are three leading GSM operators considered for the study. Two-third of the
respondents taken up for this study, use AIRCEL. 25 percent of respondents use AIRTEL,
whereas BSNL mobile network is used by 10 out of 120 respondents.
The longevity of the use of network by the respondents was also considered to be a
significant factor in deciding the satisfaction over the CRM measure. To test this aspect, it was
added as one of the variables. More than 60 percent of the users have been using mobiles for
more than 3 years. This period is adequate to understand and rate the CRM measures of the
network.
Type of connection
Frequency Percent Valid Percent Cumulative Percent
Valid Pre-paid 109 90.8 90.8 90.8
Post-paid 11 9.2 9.2 100.0
Total 120 100.0 100.0
Source: Primary Data
The researcher had a hypothetical question whether the type of network connection
would have an impact on the perception of CRM measures. So, it was added in the list of
variables. It is interesting to note that 90.8 percent of the respondents use pre-paid connections.
If more number of business men had been taken for the study, the percentage of the post-paid
connection would have been suppose increased.
Frequency of recharging
Frequency Percent Valid Percent Cumulative Percent
Valid Twice in a month 29 24.2 24.2 24.2
Once in a month 29 24.2 24.2 48.3
Once in three months 4 3.3 3.3 51.7
Very frequently 58 48.3 48.3 100.0
Total 120 100.0 100.0
Source: Primary Data
Frequency of recharging is depending upon the important factors like usage, tariff, etc.
As the researcher wanted to test its relationship with the company’s interest in the customer
relationship, this was added to the variables-list. The table shows that nearly half of the
respondents recharge very frequently whenever required.
Purpose is served
Frequency Percent Valid Percent Cumulative Percent
Valid Disagree 2 1.7 1.7 1.7
Agree 59 49.2 49.2 50.8
Strongly Agree 59 49.2 49.2 100.0
Total 120 100.0 100.0
Source: Primary Data
The table shows that the network serves the purpose for which it was chosen. This is
endorsed by 98.4% of the respondents.
Consistency in charging tariff
Frequency Percent Valid Percent Cumulative Percent
Valid Strongly Disagree 6 5.0 5.0 5.0
Disagree 19 15.8 15.8 20.8
Neither Agree Nor Disagree 9 7.5 7.5 28.3
Agree 62 51.7 51.7 80.0
Strongly Agree 24 20.0 20.0 100.0
Total 120 100.0 100.0
Source: Primary Data
Consistency in charging tariff is one of the significant factors which help the networks to
retain their customers. 71.7 % of the respondents are happy with the consistency in tariff. But
20.8 % of the respondents are not happy with this. 20.8 % is considerably a big amount of
disagreement which the networks are to be really concerned about.
Offers satisfy the telecom needs
Frequency Percent Valid Percent Cumulative Percent
Valid Strongly Disagree 2 1.7 1.7 1.7
Disagree 1 .8 .8 2.5
Neither Agree Nor Disagree 10 8.3 8.3 10.8
Agree 74 61.7 61.7 72.5
Strongly Agree 33 27.5 27.5 100.0
Total 120 100.0 100.0
Source: Primary Data
‘Offers’ that are availed from the network by a customer after he has got the connection
is one of the factors that influence him in deciding whether to stick with the same network or to
switch over. Thus offers to certain extent retain the customers and enable the network to
maintain a good relation with them. Here, as per the data, 89.2 % of the respondents are satisfied
with the offers provided by their network.
Offers are properly communicated
Frequency Percent Valid Percent Cumulative Percent
Valid Strongly Disagree 2 1.7 1.7 1.7
Disagree 5 4.2 4.2 5.8
Neither Agree Nor Disagree 11 9.2 9.2 15.0
Agree 41 34.2 34.2 49.2
Strongly Agree 61 50.8 50.8 100.0
Total 120 100.0 100.0
Source: Primary Data
As well as the validity and attractiveness of the offers, how effectively they are
communicated is very much important. It shows to what extent the network is interested to
maintain the relationship with the customers and retain them. Here, as per the data, 85% of the
respondents are happy with the way the offers are communicated.
In maintaining good relations with the customers, the role of customer care officials is
vital. For ensuring the effective contribution of these officials, an effective mechanism for
having a prompt access to them is must. So, it has been added as a significant variable in this
study. Exactly 70% of the respondents endorse that they are able to have access to the customer-
care officials when ever needed.
Queries are answered in time
Frequency Percent Valid Percent Cumulative Percent
Valid Strongly Disagree 3 2.5 2.5 2.5
Disagree 19 15.8 15.8 18.3
Neither Agree Nor Disagree 21 17.5 17.5 35.8
Agree 50 41.7 41.7 77.5
Strongly Agree 27 22.5 22.5 100.0
Total 120 100.0 100.0
Source: Primary Data
Queries from the customers, on various aspects of the network services at any time are
quite common in the telecom industry. The satisfaction of the customers in this aspect mainly
depends on whether the queries are answered in time. Nearly 65% of the respondents are
satisfied in this regard. But, 18.3 % of the respondents are not happy with this. 18.3 % is
considerably a big amount of disagreement which the networks are to be really concerned about.
Immediately after the complaint-filing mechanism, the next question that arises in our
minds is whether there is a well evolved mechanism to sort and resolve the complaints.
According to 73.4% of the respondents, there are adequate mechanisms evolved and maintained
by the networks to resolve the complaints in time.
Complaints are resolved in time
Frequency Percent Valid Percent Cumulative Percent
Valid Strongly Disagree 3 2.5 2.5 2.5
Disagree 15 12.5 12.5 15.0
Neither Agree Nor Disagree 13 10.8 10.8 25.8
Agree 60 50.0 50.0 75.8
Strongly Agree 29 24.2 24.2 100.0
Total 120 100.0 100.0
Source: Primary Data
In spite of having the mechanisms for filing the complaints and resolving the same, the
networks may fail to gain the confidence of the customers, if those complaints are not resolved in
time. This part of the issue is mainly depending upon two things – number one: provision in the
system to monitor and ensure the complaint-resolution in time and number two: the work-force
that deals with the process. 74.2% of the respondents endorse the view that the complaints are
resolved in time, where as another 15% do not agree with this.
Suffering from grievances
Frequency Percent Valid Percent Cumulative Percent
Valid Strongly Disagree 4 3.3 3.3 3.3
Disagree 33 27.5 27.5 30.8
Neither Agree Nor Disagree 15 12.5 12.5 43.3
Agree 44 36.7 36.7 80.0
Strongly Agree 24 20.0 20.0 100.0
Total 120 100.0 100.0
Source: Primary Data
Unlike other factors, the number of people having negative attitude towards the networks
are more (56.7%) in case of “suffering from grievances”. Only 30.8% of the respondents have
denied the room for sufferings. This shows that grievances are common phenomena in the
telecommunications irrespective of the colourful offers, advanced technologies or other factors.
But it is a serious threat to the CRM efforts of the companies. So, it is inevitable for the
networks to systematically diagnose the causes of grievances and resolve them suitably.
Correlations
Offers
satisfy the Offers are Queries are Satisfied
telecom properly answered in with the
needs communicated time coverage
Offers satisfy the Pearson Correlation 1 .311** .475** .343**
telecom needs Sig. (2-tailed) .001 .000 .000
N 120 120 120 120
Satisfied with the Pearson Correlation .343** .488** .345** 1
coverage Sig. (2-tailed) .000 .000 .000
N 120 120 120 120
**. Correlation is significant at the 0.01 level (2-tailed).
The variable “offers satisfying the telecom needs” is positively correlating with another
variable “communication of offers” (.311**). This correlation indicates that offers communicated
in time serve the purpose and satisfy the customers. It also correlates with “answering queries in
time” (.475**). It indicates that the queries relating to various offers are answered in time and
thus the customers are enabled to avail the offers in time. It further correlates with “satisfaction
with coverage” (.343**). It shows that the perfect coverage of network is essential for availing
and enjoying any offer and it happens in case of the three networks taken up for this study.
The variable “satisfaction with coverage” positively correlates with another variable
“queries answered in time” (.345**). It shows that better coverage enables the answering of
queries in time. It also correlates with the “communication of offers” (.488**). It indicates that
the prompt communication of offer needs better coverage and this happens in case of all the three
networks taken up for this study.
Correlations
Satisfied Access to
with the Customer Complaints Queries are
overall care are resolved answered in
services officials in time time
Access to Pearson Correlation .363** 1 .237** .556**
Customer care Sig. (2-tailed) .000 .009 .000
officials
N 120 120 120 120
Complaints are Pearson Correlation .177 .237** 1 .269**
resolved in time Sig. (2-tailed) .053 .009 .003
N 120 120 120 120
Queries are Pearson Correlation .343** .556** .269** 1
answered in time Sig. (2-tailed) .000 .000 .003
N 120 120 120 120
**. Correlation is significant at the 0.01 level (2-tailed).
The variable “access to the customer care officials” is positively correlating with another
variable “resolving complaints in time” (.237**). This correlation indicates that the customers are
able to access the customer care officials in time, lodge the complaints and getting it resolved. It
also correlates with “answering queries in time” (.556**). It indicates that the customers are
enabled to access to the customer care officials in time and thus the queries relating to various
offers and issues are answered in time. It further correlates with “satisfaction with overall
services” (.363**). It shows that the perfect contribution and service of the customer care
officials are one among the important reasons for the overall satisfaction with the network.
Correlations
Satisfied with coverage Satisfied with the overall services
Satisfied with Pearson Correlation 1 .702**
the coverage Sig. (2-tailed) .000
N 120 120
Satisfied with Pearson Correlation .702** 1
the overall Sig. (2-tailed) .000
services
N 120 120
**. Correlation is significant at the 0.01 level (2-tailed).
The above correlation establishes that the “network-coverage” is one among the few
significant factors that lead to the “overall all satisfaction” of the customers with the network.
HYPOTHESIS TESTING
The following hypotheses were also formulated for the purpose of the study. One way
ANOVA was used to test the hypothesis.
1. Ho = There is no significant relationship between “Network chosen” and
“Access to customer care officials”.
ANOVA
Satisfied with the overall services
Sum of Squares df Mean Square F Sig.
Between Groups 6.005 3 2.002 1.881 .137
Within Groups 123.462 116 1.064
Total 129.467 119
The table value for the degree of freedom ‘3’ at 95% confidence level is 3.95 and the
calculated value is 1.881. As the table value is higher than the calculated value, the null-
hypothesis-4 is accepted. So, there is no significant relationship between the “Income-level” and
“Satisfaction with overall services”.
Conclusion
From all the above analysis, the researcher concludes that, in general, the customers
have a positive attitude towards various ‘Customer Relationship Management’ measures
practiced by the GSM service-providers. Except a very-few respondents, almost all feel that the
purpose for which they chose the particular network, has been served. Some of the areas like
“satisfying the customers through offers”, “communicating the offers promptly”, “providing
value added services”, “updating of services”, etc., are found well executed. These measures are
really helpful to the efforts made in retaining the customers and in enhancing the customer-
relationship.
But still lot of improvement is needed in some other areas like “grievance handling”,
“consistency in charging tariff”, “access to customer care officials”, “resolving the complaints in
time”, etc. Further, a little bit improvement is required in some areas like “answering queries in
time”, “provision for filing complaints”, “mechanism to resolve complaints”, etc.