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AT
RELIANCE COMMUNICATION BROADBAND DIVISION NASHIK SUBMITTED TO UNIVERSITY OF PUNE IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR DEGREE OF M.B.A
BY Mr. PANKAJ ASHOK KAPSE MBA-II MARKETING INDIRA INSTITUTE OF MANAGEMENT PUNE 2009-2010
Certificate
This is to certify that Mr. Pankaj Ashok Kapse (MBA Marketing II) is a bonafide student of this institute and has completed his summer project in Reliance communications Nasik during the academic year 2008-2010 in partial fulfillment of Masters Degree in Business Administration in Marketing during the period from 1st June 2009 to 31th July 2009. The topic of his project was A study on customer satisfaction of Reliance broadband customers in Nasik city. and was supervised by the undersigned Internal Project Guide. We wish him all the best for his future endeavors.
Prof. Mr. Surinder Singh. Project Guide Indira Institute of Management, Pune
ACKNOWLEDGMENT
I take this opportunity to express my deep sense of gratitude to Management of Reliance communication broadband division Nashik for giving me opportunity to undergo summer training in their organization and extending me full support and cooperation for undertaking and completing this project. I am extremely grateful to Mr. Virendra Bachchav (Cluster sales manager Nashik), whose dynamic guidance made the study possible. Their knowledge experience disciplined approach, constructive criticism and valuable suggestions have been a source of inspiration to me in my studies. I am extremely indebted to him for his guidance, encouragement for completing this project on A study on customer satisfaction of Reliance broadband customers in nashik city. I would also like to thank Mr. Tushar Patil (sales co coordinator) and Mr. Yogesh Tajanpure for their valuable inputs regarding my project work from time to time. I also take this opportunity to express my deepest gratitude to Dr. Prachi Jawadekar ,Director, Indira Institute of Management, Pune and to thank my Internal guide Prof. Surinder Singh for their guidance and encouragement. I am also like to express my gratitude to my colleagues, parents & other who have directly & indirectly help me in many ways to make this project possible.
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Title of the project: - A study on customer satisfaction of Reliance broadband customers in Nasik city. Industry: Telecom Company: Reliance communication. Product: Broadband connection NEED FOR THE STUDY . The broadband market is increasing with leap and bound and there are so many competitors in the market which are trying to capture the market share. R-COM is trying to broaden the customer base in Nasik city. To suggest possible ways to increase the market share and giving better service to customers need a feedback process so that company can analyze the remedy required to prevent the switching phenomenon. There is obviously a strong link between customer satisfaction and customer retention. Customer's perception of Service and Quality of product will determine the success of the product or service in the market. This project is thus aimed to find out the satisfaction level of R-com broadband customers in Nasik city so that appropriate steps can be taken by the company to prevent the customer dissatisfaction if any and to increase the customer base in long term perspective. .
OBJECTIVES OF PROJECT PRIMARY OBJECTIVES To find out customer satisfaction level of R-COM broadband customers in Nasik city. To find out reasons of dissatisfaction of broadband customers. To understand the gap between companys offerings and customers requirements.
SECONDARY OBJECTIVES To study switching habits of R-coms customers. To find out new promotional strategies for R-com. 5
RESEARCH DESIGN
Success of any formal research project is a sound research design. A good research design has characteristics like problem identification, problem definition, research objectives, developing the research plan, sourcing data, collection of data, analyzing data and information, presenting the findings. Research type Descriptive
Research approach-
Population-
Nasik
Sample frame-
Sample size-
Data collection
Primary data was collected by structured questionnaires, interviews and observations made during the visits on field. Secondary data was collected from literature, magazines and internet.
STATUS Average
Promotional activities
Satisfactory
More intense advertising would help to boost sales and to increase awareness in potential customers.
Query solving
Average-not satisfactory
satisfactory satisfactory
Average
Time Duration: The time duration for conducting the research was very short; due to this one could not do justice to the Market Survey. Sample Size: The sample size does not cover maximum number of SME customers of Nasik city. The sample size was restricted to certain number 80 customers. Response from interviewer: Some of the respondents were hesitant to provide proper information, or to entertain such person, activity. City Coverage: The project is restricted to only little sample area coverage only because of the less duration of the project. 7
INDEX
SR.NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 CHAPTER PARTICULARS Certificate of institute Acknowledgment Introduction Indian Telecom industry profile Company profile PAGE.NO Ii Iii 11 13 26 41 46 48 58 75 77 79 81 82
Literature survey Objectives and scope of study Research methodology Data analysis Findings and observation. Conclusion Recommendations
References Annexure
List of Tables
Sr.no. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Particulars Key findings ,observations and suggestions Major milestones of Indian telecom industry Number of broadband subscribers as on 31st march 2008 Financial result summary Customer satisfaction parameters Bifurcation based on period of usage Bifurcation on promotional basis Customers who have used R-com before Satisfaction compared to old service provider Frequency of problems faced by R-com customers Time taken to solve a technical problem Satisfaction regarding problem solving Delivery of bills on time Time provided to pay bills Satisfaction regarding billing system of R-com Satisfaction regarding speed system of R-com Satisfaction regarding connectivity system of R-com Overall customer satisfaction level with R-com Pages no Vii 16 22 37 56 59 61 63 64 65 66 67 68 69 70 71 72 73
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CHAPTER NO 1
INTRODUCTION
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CHAPTER NO 1
INTRODUCTION The telecom services have been recognized the world-over as an important tool for socio-economic development of a nation. Telecommunication is one of the prime support services needed for rapid growth and modernization of various sectors of the economy. It has become especially important in recent years because of enormous growth of information technology and its significant potential for the impact on the rest of the economy. Measurement of Customer Satisfaction is a new significant addition to the new ISO9000: 2000 standard. Organizations certified to this standard are now required to identify parameters that cause customer satisfaction or dissatisfaction and consciously measure them. So there is a clear need to measure the customer satisfaction Rationale of the study Reliance communication broadband division Nasik has a wide range of customers In Nasik city. They generally deal in wireline connection of landline phone and broadband connections. Researcher after consulting with company external guide Mr. Virendra Bachhav sir & internal guide Mr. Surinder Singh sir decided to undertake a study to find out customer satisfaction level of broadband customers who are small and medium size enterprise customers. Broadband users in Nasik city are increasing day by day because of growing need of todays technological advancements in every sector of every industry. In Nasik city banking, fmcg, IT, engineering works, telecom, manufacturing, finance are some sectors which are expanding rapidly. That is why there is a need to find out customer satisfaction level of existing customers so that they can formulate strategy to expand their customer base because if existing customers are not satisfied new customers are also hard to convince and it projects a negative image of company in market. Objectives of project were targeted towards finding out customers satisfaction level and causes of dissatisfaction to take remedial actions and in turn increase market share of R-COM in Nasik city. Competitors analysis and switching tendencies of customers were also an outcome of study. 12
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The Indian Telecommunications network with 233.62million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for U.S. companies in the stagnant global scenario. The total subscriber base is expected to reach 300 million in 2009. According to Broadband Policy 2004, Government of India aims at 9 million broadband connections and 18 million internet connections by 2007. The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY2004-2005. In the last 3 years, two out of every three new telephone subscribers were wireless subscribers. Consequently, wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber growth was expected to bypass 2.5 million new subscribers per month by 2007. The wireless technologies currently in use are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country.
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April 2009 February 2008 October 2007 February 2006 January 2006
Wireless Subscriber base crosses 400 million mark Licenses issued to New Telecom Service Providers .DOT allows CDMA players to enter GSM mobile service using Dual Technology platform One India tariff plan announced by BSNL & MTNL One Nation-One Rupee tariff plan introduced by Reliance Infocomm Tele density target of 12% in 2010 as per NTP 99 met ahead of schedule. Lifetime Tariff Plans launched. Non-stop Mobile [two year plan] introduced by Tata Teleservices Broadband policy announced. TRAI announces the Telecommunications Interconnection Usage Charges (IUC), Regulations, 2003 Reliance Infocomm Ltd launches services across 17 circles on a country wide basis in a phased manner Tata Teleservices Ltd acquires Hughes Tele.com (I) Ltd providing basic services in Maharashtra circle. TRAI issues Telecommunications Interconnection (Reference Interconnect Offer) Regulations, 2002 ILD sector opened up
January 2006 December 2005 October 2005 October 2004 Jan -2003
Dec -2002
Nov - 2002
July - 2002
April - 2002
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Dec -2001
Dec - 2001
TRAI issues Telecommunication Interconnection (Charges & Revenue Sharing) Regulations, 2001 TRAI announces cost based rentals for WLL (M) services. Limited Mobility Service Introduced. DTS corporatized and Bharat Sanchar Nigam Ltd incorporated. TRAI issues Telecommunication Interconnection (Charges & Revenue Sharing) Regulations, 1999. New Telecom Policy 1999 (NTP'99) announced. First private sector Basic Telecom network launched in Indore, Madhya Pradesh. AUSPI constituted. TRAI established Six licenses awarded to private sector for provision of Basic Telecom Services Tenders for Basic and Cellular service (circles) invited. National Telecom Policy 1994 announced
May - 2001 January 2001 Oct - 2000 May - 1999 March - 1999 June - 1998 Nov - 1997 January, 1997 1997 1995 1994
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2.1.3 GROWTH OF INDIAN TELECOM INDUSTRY IN LAST DECADE AN OVERVIEW India became the second largest wireless network in the world, overtaking the USA and second only to China, with addition of about 8 million subscribers every month in the recent times Subscriber base reached 300.49 million as on 31st March 2008 as compared to 14.88 million for the same period in 1997 Teledensity of 26.22 as on 31st March 2008 as compared to 2.30 for the same period in 1998 much ahead of the teledensity target set under NTP, 1999 of 15 by the year 2010. Rural teledensity at the end of March 2008 was 9.20 as compared to 0.40 for the same period in 1998 which too is much ahead of the NTP, 1999 target of 4 by the year 2010. Decline in Tariffs: Local call tariff for mobile @ Rs. 15.00 is now less than Re. 1.00One minute STD call between Delhi and Mumbai at the rate of Rs.37.00 now cost Re. 1.00 i.e. at the rate of local call ISD call to American continent @ Rs. 75.00 now costs less than Rs. 7.00 Subscriber base of internet reached 11.09 million on 31st March 2008 as compared to 0.09 million in1997 Putting in place Interconnection and Cost Based Interconnection Usage Charges regime Introduction, continuation and phasing out of Access Deficit Charges regime Introduction of Calling Party Pay regime Introduction of Mobile Termination Charges, which is lowest in the world Putting in place Tariff Order regime with the issue of Telecom Tariff Order 1999 and shift to a regime of tariff de-regulation in gradual manner
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Graph no 2: Internet Subscribers growth. Broadband Subscriber The total Broadband subscriber base has reached 3.87 million by the end of March, 2008 as compared to 2.34 million by the end of March 2007 thereby registering a net addition of 1.56 million broadband subscribers during the financial year 2007-08.
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Table no 3
The number of Broadband subscribers (with a download speed of 256 kbps or more) was 3.87Million on 31st March 2008 as compared to 2.34Million subscribers on 31st March 2007 registering an annual growth of 65.38%. The distribution of Broadband subscribers among Government ISPs and Private ISPs as on 31st March 2008 is as below:
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2.1.7 Major Players There are three types of players in telecom services:
State owned companies (BSNL and MTNL) Private Indian owned companies (Reliance Info COM, Tata Teleservices,) Foreign invested companies (e.g. Vodafone-Essar, Bharti TeleVentures,Escotel, Idea Cellular, BPL Mobile, Spice Communications) BRIEF PROFILE OF COMETTORS OF RELIANCE COMMUNICATIONS 1_) BSNL
BSNL Broadband is a broadband internet service from state owned BSNL in India since 14th January 2005. Until September 30 2007 it was known as 'Data One. BSNL is in the process of commissioning of a world class multi-gigabit multi-protocol convergent IP infrastructure through Internet backbone-II (NIB-II) that will provide convergent services through the same backbone and broadband access network. The Broadband service will be available on DSL technology (on the same copper wire that is used for connecting telephone) on a countrywide basis spanning 198 cities. In terms of infrastructure for broadband services NIB-II would put India at par with more advanced nations. The services that would be supported includes always-on broadband access to the Internet for residential and business customers Content based services Video multicasting Video-on-demand and Interactive gaming Audio and Video conferencing IP Telephony Distance learning. The Broadband Service is available throughout India in all cities towns and even in main villages. 23
Key people Chairman: Mr. Ratan N. Tata, Managing Director: Anil Kumar Sardana Industry Products Employees Website Telecommunications CDMA service, GSM service, Broadband Internet Service 3,30,000 [Tata Group] Tata Indicom
3) SIFY TECHNOLOGIES LTD. Sify Technologies Limited (formerly Sify Limited and Satyam Info way Limited) NASDAQ: SIFY) is an, established in 1998, based in Chennai, India. Sify is one of the largest Internet service providers in India. Almost 75 percent of the 1.6 million visitors in 2008 to the web site sify.com hail from India. It was rated as one of "The ten top technology companies world-wide recommended for investment" by Fortune in 1999. When internet access was opened to private sector (until then the state run VSNL had a monopoly in providing internet access), Sify became the first private sector player to offer internet access. It leased international bandwidth from global vendors, domestic connectivity from telecom players and set up last mile connectivity by multiple methods: Wi-Fi 24
connections using roof top antennae, copper connections using phone lines or cable TV connections. Sify also started providing internet network connectivity for business enterprises in India. Sify took internet to the masses in India by setting up a chain of franchised internet cafes (today a network of over 3,300+ cybercafs) becoming the largest chain of cybercafs in India. 4) BHARTI TELEVENTURES LTD.
Public, Listed on BSE 1985 New Delhi, India Sunil Mittal (Chairman and CEO) Telecommunication Mobile and Fixed-Line Telecommunication operator $6 Billion Bharti Group Airtel
5) IDEA CELLULAR: Idea Cellular is a wireless telephony company operating in various states in India. It initially started in 1995 as a joint venture between the Tatas, Aditya Birla Group and AT&T by merging "'Wings Cellular'" operating in Madhya Pradesh, UP West, Rajasthan and Tata Cellular as well as Birla AT&T Communication. 25
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Public (BSE: RCOM) 2004 Navi Mumbai, India Anil Ambani Chairman and Managing Director ,Vice-Chairman Reliance-ADA Group Telecommunications CDMA service, GSM service, Broadband Internet Service US$ 4 Billion 33,000 http://www.rcom.co.in/
Key people
Broadband business information The successful rolling out of real broadband services across the nation marks the second chapter of Reliance Communications commitment to usher in a digital revolution in India. Reliance Communications is setting new standards for the world to follow through inventive use of cutting-edge technologies in the field of fiber optics, Ethernet, microwave radios, switching, routing, digital compression and encoding. The mass roll out of broadband being carried out by Reliance Communications across the length and breadth of the country, offering speeds of up to 100 Mbps to millions of users, in itself is a technological marvel. 28
The uniqueness of Reliance Communications broadband initiative lies in the fact that our entire nationwide network is being conceptualized and built from ground zero. Our network is designed to deliver affordable quality education, drive governance, transform healthcare, enhance efficiency in business and, finally, generate new job opportunities for millions of unemployed Indians. Reliance Communications broadband service is set to revolutionize Indian society by removing the traditional bottlenecks of development including a lack of capital and a weak infrastructure, and help tide over the challenges of distribution in a vast country like India.
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Shri Anil D Ambani, 48, is the chairman of all listed companies of the Reliance ADA Group, namely, Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources.He is also the president of the Dhirubhai Ambani Institute of Information and Communications Technology, Gandhinagar An MBA from the Wharton School of the University of Pennsylvania, Shri Ambani is credited with pioneering several financial innovations in the Indian capital markets. He spearheaded the countrys first forays into overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Under his chairmanship, the constituent companies of the Reliance ADA group have raised nearly US$ 3 billion from global financial markets in a period of less than 15 months. Shri Ambani has been associated with a number of prestigious academic institutions in India and abroad. He is currently a member of: Wharton Board of Overseers, The Wharton School, USA Board of Governors, Indian Institute of Management (IIM), Ahmadabad Board of Governors, Indian Institute of Technology (IIT), Kanpur Executive Board, Indian School of Business (ISB), Hyderabad In June 2004, Shri Ambani was elected as an Independent member of the Rajya Sabha Upper House, Parliament of India, a position he chose to resign voluntarily on March 25, 2006. 30
The Reliance Anil Dhirubhai Ambani Group is among Indias top three private sector business houses on all major financial parameters, with a market capitalization of Rs 100,000 crore (US$ 22 billion), net assets in excess of Rs 31,500 crore (US$ 7 billion), and net worth to the tune of Rs 27,500 crore (US$ 6 billion) Across different companies, the group has a customer base of over 50 million, the largest in India, and a shareholder base of over 8 million, among the largest in the world. Through its products and services, the Reliance - ADA Group touches the life of 1 in 10 Indians every single day. It has a business presence that extends to over 4,500 towns and 300,000 villages in India, and 5 continents across the world. The interests of the Group range from communications (Reliance Communications) and financial services (Reliance Capital Ltd), to generation, transmission and distribution of power (Reliance Energy), infrastructure and entertainment.
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clock, both in the virtual world and in the physical world. It will make available television programs, movies and news capsules on demand. It will unfurl new simulated virtual worlds with exhilarating experiences behind the screens of computers and televisions. Reliance Communications will transform thousands of villages and hundreds of towns and cities across the country. Above all, Reliance Communications will pave the way to make India a global leader in the knowledge age.
MISSION OF R-COM:To create an integrated infrastructure with the state of art digital technology provided innovative, cost effective and world class convergent service to air customer. We will be Indias defining service provider and most preferred one. We will achieve dominant market in India and will rank among worlds top ten carriers by 2010. Reliance Communications will offer a complete range of telecom services. Reliance Communications is the first company in India to introduce wireless point of sale terminals it covers a spectacularly wide range, wire line, wireless national and international long distance, data services, data hosting, enterprise broadband and consumer.
MANAGEMENT PHILOSOHY World scale operations and the ability to implement complex, multi-billion dollar project in record time frames Leading edge state-of-art technologies Global competitiveness and the ability to create world class assets at a 30%-50% capital cost advantage compared to the global peer group Fully integrated operations capturing the entire value chain and market leadership in all product categories.
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Table no 4
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VARIOUS PLANS A) POSTPAID PLANS Plan 500 Plan 1000 Plan 1500 Plan 2000 Super One India 299 Super One India 130 Mobile Special Plan 500 + 75
Plan name
Plan 250
Monthly plan charges (Rs.) Free Calls Worth (Rs.) Domestic call rates (Rs. / call unit)
250
500
1000
1500
2000
500
1000
1500
2000
200
500
1.10
1.00
0.90
0.85
1.00
1.00
1.20
B) Prepaid plans :
Startup voucher: Get started by loading the Startup voucher towards installation and activation charges. It comes at an MRP of Rs.500 (inclusive of service tax) and a validity of 60 days. Get free usage worth Rs.500 on loading the Startup voucher, so effectively you pay zero installation charges for the Reliance Landline service
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Refill vouchers with 30 days validity : MRP inclusive of Service Tax (Rs.) Usage value (Rs.) 333 225 555 550 1,122 1,200 1,666 2,000
Enjoy additional validity of 30 days on above vouchers by loading them along with Startup voucher Refill vouchers with more than 30 days validity: MRP inclusive of service Tax (Rs.) Usage value (Rs.) Voucher validity (Days) 1,020 2,040 5,555
1,050 60
2,200 75
6,000 180
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Service Plan 900 Plan 1199 Plan 1999 Plan 2999 Plan 4999 Plan 8999 Plan 10000
Monthly Rental (Rs.) 900 1199 1999 2999 4999 8999 10000
Bundled Usage 2 GB 8 GB 12 GB 20 GB 35 GB 75 GB 75 GB
Additional Usage / MB Rs. 0.8 Rs. 0.8 Rs. 0.8 Rs. 0.5 Rs. 0.5 Rs. 0.5 Rs. 0.5
Internet. Download Speeds * 150 Kbps 300 Kbps 600 Kbps 1 Mbps Monthly Rental (Rs.) 1100 1500 2700 4500 Additional Usage / MB Not Applicable Not Applicable Not Applicable Not Applicable
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CUSTOMER SATISFACTION:
"If you cannot measure it, you cannot improve it." - Lord William Thomson Kelvin (1824-1907) Measurement of Customer Satisfaction is a new significant addition to the new ISO9000: 2000 standard. Organizations certified to this standard are now required to identify parameters that cause customer satisfaction or dissatisfaction and consciously measure them. Whether the buyer is satisfied after purchase depends on the offers performance in relation to the buyers expectation. In general: Satisfaction is a persons feeling of pleasure or disappointment resulting from comparing a products perceived performance in relation to his or her expectation. There is obviously a strong link between customer satisfaction and customer retention. Customer's perception of Service and Quality of product will determine the success of the product or service in the market. With better understanding of customers' perceptions, companies can determine the actions required to meet the customers' needs. They can identify their own strengths and weaknesses, where they stand in comparison to their competitors, chart out path future progress and improvement. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company. There is a lot of debate and confusion about what exactly is required and how to go about it. Customer satisfaction is quite a complex issue and this is an attempt to review the necessary 42
requirements, and discuss the steps that need to be taken in order to measure and track customer satisfaction. What do Customers Want? Before we begin to create tools to measure the level of satisfaction, it is important to develop a clear understanding of what exactly the customer wants. We need to know what our customers expect from the products and services we provide. Customer Expectations are of two types - Expressed and Implied. Expressed Customer Expectations are those requirements that are written down in the contract and agreed upon by both parties, for example, product specifications and delivery requirements. Supplier's performance against these requirements is most of the times directly measurable. Implied Customer Expectations are not written or spoken but are the ones the customer would 'expect' the supplier to meet nevertheless. For example, a customer would expect the service representative who calls on him to be knowledgeable and competent to solve a problem on the spot. There are many reasons why customer expectations are likely to change over time. Process improvements, advent of new technology, changes in customer's priorities, improved quality of service provided by competitors are just a few examples. The customer is always right. Supplier's job is to provide the Customer what he wants, when he wants it. Customer Satisfaction is customers' perception that a supplier has met or exceeded their expectations. What constitutes Satisfaction? We cannot create customer satisfaction just by meeting customer's requirements fully because these HAVE to be met in any case. However falling short is certain to create dissatisfaction. Major attributes of customer satisfaction can be summarized as: 43
Product Quality Product Packaging Keeping delivery commitments Price Responsiveness and ability to resolve complaints and reject reports Overall communication, accessibility and attitude
We cannot begin to address the customer satisfaction issue we define the parameters and measures clearly. It may be easier to track supplier's performance against stated requirements of quality and timeliness because there is documentary evidence. Some indication of whether a supplier is meeting the requirements can also be obtained from data on scrap rates, PPM, complaints database, sales improvements, repeat orders, customer audit reports etc. It is far more difficult to measure the level of performance and satisfaction when it comes to the intangible expectations. What are the Tools? Customer expectations can be identified using various methods such as
Periodic Contract Reviews Market research Telephonic Interviews Personal visits Informal discussions Satisfaction Surveys
Depending upon the customer base and available resources, we can choose a method that is most effective in measuring the customers' perceptions. The purpose of the exercise is to identify priorities for improvement. We must develop a method or combination of methods that helps to continually improve service. Customer Satisfaction Surveys 44
Formal survey has emerged as by far the best method of periodically assessing the customer satisfaction. The surveys are not marketing tools but an information-gaining tool. Enough homework needs to be done before embarking on the actual survey. This includes:
Defining Objectives of the survey Design Survey Approach Develop Questionnaires and forms Administer survey (email, telephone, or post) Method of Compiling data and analyzing the findings Format of the Report to present the findings
There is no point in asking irrelevant questions on a customer satisfaction questionnaire. The basic purpose is to find out what we are doing right or wrong, where is the scope for improvement, where do we stand vis--vis other suppliers, how can we serve the customer better?A Customer satisfaction Measurement Survey should at least identify the following objectives Importance to Customers (Customers' Priorities). Customers' perception of supplier's performance. Your performance relative to customers' priorities. Priorities for Improvement. (Quality & Productivity Journal: February 2002 Issue Source: - http://www.symphonytech.com.
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CHAPTER NO 5
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CHAPTER NO 5
5.1
Successful decision-making depends not on any principles but on the skill and judgments of the individuals. However skill and judgment by itself cannot lead to good decisions but are the inherent tools through which data collected or available can be converted into proper information thus for this purpose of having proper decision making it is very essential to collect relevant and accurate information. Hence to collect proper information certain objectives were set which would lead to the process of research in the designed direction based on the priority and need of the organization the objectives of the research were segregated in to primary and secondary objectives.
PRIMARY OBJECTIVES To find out customer satisfaction level of R-COM broadband customers in Nasik city. To find out reasons of dissatisfaction of broadband customers. To understand the gap between companys offerings and customers requirements.
SECONDARY OBJECTIVES To study switching habits of customers. To find out new promotional strategies for R-COM.
Scope of the study Place: Project work was completed in various parts of Nashik city namely College road, Sharanpur road, Dwarka area, Gangapur road, Nashik road. Sample size: Project covered a sample size of 80 SME customers in above mentioned area. Product: study covered the customer satisfaction regarding the product Reliance broadband connection. 47
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This approach is followed when there is need to map the quantifiable factors like number of customers who are using services of the company, market share analysis for the company, competitors analysis etc.
In this research study researcher have used quantitative approach in order to find out
number of customers who are using R-com services since last one year, two years etc.Quantitative approach was also helpful in finding out the number of customers who were using services of other service providers.
2) Qualitative research approach Qualitative research approach refers to that research approach by which researcher tries to map out the unquantifiable aspects related to research problem e.g. customers perception about product or services provided by the company, overall experience of the customer with respect to the company etc. these factors cannot be measured by quantitative terms so to measure them qualitative checks are done with various types of grades like satisfied, dissatisfied, average etc. These scales are to chosen respective of the attitude or behavior we want to study. For this study researcher have used qualitative research approach in order to find out the customers perception and satisfaction about R-com related to problem solving, billing issues, speed and connectivity promised, overall satisfaction level with R-com services etc.
For this study purpose researcher have thus used Qualitative as well as Quantitative research approach.
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Nashik city. Reliance broadband users in Nashik city 80 SME customers of Reliance communications. Non- probability sampling
Non probability sampling is that sampling procedure which does not afford any basis for estimating probability that each item in population has of being included in the sample. Non probability sampling is also known by different names such as deliberate sampling, purposive sampling, judgments sampling in other words , under non probability sampling organizers of enquiry purposely particular unit of universe for constituting a sample on the basis that the small mass that they so select out of huge one will be typical or representative of the whole. Probability sampling Also known as random sampling or chance sampling, under these sampling design, every item of universe has an equal chance of inclusion in sample. It is so to say, a lottery method in which individual units are picked up from whole group not deliberately but by some mechanical process. Random sampling ensure low of statistical regularity which state that if on an average sampling chosen is a random one, the sample will have same composition characteristic as universe random sampling from a finite population refers to this method of sample selection which gives each possible sample combination an equal probability of being picked up & each item in entire population to have an equal chance of being included in sample. Sampling technique usedRandom sampling from major areas like College road
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There are several methods of collecting primary data, particularly in surveys &descriptive researches. Important ones are: (i) observation method, (ii) interview method, (iii) through questionnaires, (iv) through schedule, (v) other methods For this particular study customers were needed to contact personally so researcher decided to use following primary data collection tools 1) Structured questionnaire 2) Personal informal interviews
Questionnaire process From basic aspect of measurements & meaning, we proceed to their application in designing the instruments for seeking & recording data. Data may be obtained by either observing or asking for them, & form are needed for field use n both observation & 52
interviewing. All this media for communication with respondents personal, telephone& mail relay data collection form known as questionnaires. Steps for developing questionnaires:1) 2) 3) 4) 5) 6) 7) 8) determine specific data to be sort determine interviewing process evaluating question content determine response format determine wording in question determine questionnaire structure determine physical characteristics of form pretest-> revise -> final draft
A questionnaire is a simple formalized schedule to obtain & record specified & relevant information with tolerable accuracy & competitiveness. In other word it directs the questioning process & promote clear & proper recording.
Secondary data means data are already available that is they refers to data which have already been collected & analyzed by someone else. When researcher utilizes secondary data, then he has to look into various sources from where he can obtain them. In this case researcher certainly not confronted with problems that are usually associated with collection of original data. Secondary data may either be published data or unpublished data. Various published data Books Report & publications of regulatory bodies of telecom sector e.g. DOT, TRAI etc.
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Customer loyalty Query solving Promotional activities Speed and connectivity Billing issues Overall experience with R-com Table no 5: customer satisfaction parameters Tools for survey1. Structured questionnaire 2. Informal discussions 3. Personal visit Data is collected mainly by questionnaire designed to avail the information on following aspects of customers response about R-com services.
1 2 3 4
Customer loyalty with R-com Query solving by R-com Promotional activities of R-com Speed and connectivity provided
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5 6
After collection of data it was tabulated to know the frequencies of various responses given by customers. By plotting the graphs and by computing percentage of the respondents for various parameters discussed above conclusions are drawn and some suggestions based on these conclusions are given to bridge the gap between customers expectations and companys offerings.
Time Duration: The time duration for conducting the research was very short; due to this one could not do justice to the Market Survey. Sample Size: The sample size does not cover maximum number of SME customers of Nasik city. The sample size was restricted to certain number 80 customers. Response from interviewer: Some of the respondents were hesitant to provide proper information, or to entertain such person, activity. City Coverage: The project is restricted to only few sample area coverage only because of the less duration of the project
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Q 1) Since how long are you using R com broadband service ? Period of usage Less than one year One two years Two- three years More than three years No of customers 45 31 04 00 % To total customers 56.25% 38.75% 5% 0%
Data analysis and Interpretation Customer loyalty with R-com is average as 38.75% customers are retained in second year but in third year and onwards this % tends to lower down. Company should try to improve % in third year and onwards.
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Q 2) How do you got to know about R com broadband service? MEDIUM Through sales force of R -com Friends Advertisements Local cable operator NO OF CUSTOMERS 37 19 06 18 % OF CUSTOMERS 46.25% 23.75% 07.50% 22.50%
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GRAPH NO 7.2.1 % OF PROMOTIONAL ACTIVITIES IFFECTIVENESS Interpretations Sales force of company is observed to be effective as 46.25% customers have joined R-com after promotional efforts of sales force. Advertisements contribution in promotional activities is found to be very low i.e. 7.50% Sales force and local cable operators can be utilized more effectively by promotional activities like telecalling, arranging information camps, prom let distribution etc.
Q 3) Have you ever used any other service before using R-com service?
Yes 10 12%
No 70 88%
Q 4) How will you state your experience with R-com as compared to old service provider? PARAMETER Better than previous service At par with previous service Poor than previous service NO OF CUSTOMERS 1 4 5 % 10% 40% 50%
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GRAPH NO 7.4 SATISFACTION COMPARED TO OLD SERVICE PROVIDER Interpretations 50% customers are not satisfied with R- com as compared to their old service provider. Service standard need to be increased to avoid brand switching from these customers.
QUERY SOLVING FACTOR Q 5) In a month how many times you find query / technical problem in service? PARAMETER Never 0-5 times 5-10 times More than 10 times NO OF CUSTOMERS 02 52 26 00 % 02% 65% 33% 00%
GRAPH NO 7.5 FREQUENCY OF TECHNICAL PROBLEMS FACED BY R-COM CUSTOMERS Interpretations 0-5 times frequency can be treated normally and is 65% which is satisfactory. Efforts should be taken to reduce the no in 5-10 time segment which is considerable i.e. 33% through prompt query solving and technological up gradation.
PARAMETER One day Two days Three says More than three days
NO OF CUSTOMERS 02 25 45 08
GRAPH NO 7.6 TIME TAKEN TO SOLVE A TCHNICHAL PROBLEM Interpretations Percentage of ideal time for query solving (one day) is very low i.e. 2% only. This time needs to be followed strictly otherwise customer dissatisfaction might tend to increase sharply.
Q 7) How will you state your satisfaction level with respect to problem solving by R-com? PARAMETER Totally satisfied Satisfied Average Not satisfied Extremely dissatisfied NO OF CUSTOMERS 00 08 53 19 00 % 00% 10% 66.25% 23.75% 00%
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Interpretations Average and not satisfied customers form a large portion of total sample i.e. 90% which will increase customer dissatisfaction towards companys image so serious efforts are required to improve problem solving procedures and timing.
BILLING FACTOR
PARAMETER Yes No
% 95% 05%
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Q 9) Do you get sufficient time to pay the bills? PARAMETER Yes No NO OF CUSTOMERS 77 03 Table no 7.9 : sufficient time to pay bill. % 96% 4%
GRAPH NO7.9 TIME PROVIDED TO PAY BILLS Q 10) Are you satisfied with R- com billing system? Table no 7.10: satisfaction regarding billing PARAMETER Totally satisfied Satisfied Average Not satisfied Extremely dissatisfied 67 NO OF CUSTOMERS 00 52 28 00 00 % 00% 65% 35% 00% 00%
Interpretations Billing system of R-com is found to be much efficient and prompt. Customers are satisfied with billing system.
PARAMETER Yes No
NO OF CUSTOMERS 70 10
% 87% 13%
GRAPH NO 7.11. SATISFACTION REGARDING SPEED OF R-COM Interpretations Customers are satisfied with speed provided. 69
PARAMETER Yes No
NO OF CUSTOMERS 69 11
% 86% 14%
GRAPH NO 7.12 SATISFACTION REGARDING CONNECTIVITY OF R-COM Interpretations Customers are satisfied with connectivity aspect of R-com.
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Q 13) How would you rate your overall experience with R- com? PARAMETER Totally satisfactory Satisfactory Average Not satisfactory Totally dissatisfactory NO OF CUSTOMERS 00 24 50 06 00 % 00% 30% 62.5% 07.5% 00%
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Interpretations-
Overall satisfied customers with r-com are found to be 30% which needs to be increased. Large portion of customers i.e. 62.5% rate overall R-com service as average. These customers can be retained and converted to satisfied customers category by ensuring prompt maintenance and technological advancement
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CHAPTER NO 9 CONCLUSION
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CHAPTERNO 9 CONCLUSION Query solving is the main weak link in R-com service. The maintenance team is unable to solve the queries on time. This creates a bad impression about the company in customers mind. R-com is not able to retain customers in long term perspective due to inability to give proper after sales service. Sales force is efficient and has good reach in market. Customers are satisfied with the speed, billing procedures and connectivity of R-COM due to solid technical base of R-com and proper co-ordination between billing channels of R-COM. Customers are not satisfied with R-com query solving team because promises regarding query solving are not fulfilled. Brand name RELIANCE can be used for advertising purpose. Main area of concern seems to be dissatisfaction due to poor service after sales.
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CHAPTER NO 10 Suggestions/Recommendations
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CHAPTER NO 10 Suggestions/Recommendations
Customers require long time to get a complaint solved. This leads to irritation among the customers. So care should be taken to reduce the query solving time by recruiting more technologically sound, soft skill equipped technical staff and by making necessary technological up gradations. Product should be made more customer need oriented i.e. specially catered package according to customers usage. Price factor can be taken care of by designing new price packages for loyal customers, customers paying bills on time should be encouraged by giving discounts and bonuses to create goodwill for company. Particular areas like college road can be given special discounts if they accept higher mbps packages this will help in price differentiation and will help in gaining edge over competitors. Place factor is ignored somewhat by R-com because in areas like Nasik road, jail road service is poor and local cable operators are mostly trusted in these areas to expand the business which has not paid off for company due to inability of cable operators in these areas. Company should try to utilize sales force effectively in these areas and make necessary technological changes to tap the potential in these areas. Promotional activities need to be taken care more seriously to increase customer awareness and to get benefit of high market acquisition by mouth publicity by customers. For that advertising efforts should be more like print advertises, prom let distribution, free information camps in city utilizing sales force, proper utilization of local cable operators to promote the product more effectively.
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CHAPTER NO 11 REFERANCES
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REFERANCES
Books
Kotler, Philip (1999) Marketing Management Millennium Edition, Prentice Hall, New York. Kothari, C (2005) Research Methodology New age publisher, New Delhi. Manual provided by Reliance Communications
Magazines
Business Today and India Today
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ANNEXURE
2) Address-
3) Contact number
4) From how much period are you using Reliance broadband service?
b) 1- 2 years
C) 2- 3 years
B) Friends
C) Advertisement
6) Have you ever used any other Broadband service before using Reliance broadband service?
A) Yes
B)No
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8) How will you state your experience with Reliance communications as compared to old service provider?
Plan details -
Plan details
10) How many times in a month you find technical problem / query in service?
A) Never (
) )
B) 0-5 times (
) )
C) 5-10 times (
) )
B) Two days (
) )
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12) How will you state your satisfaction level with respect to problem solving by Reliance communication?
A) Totally satisfied (
B) Satisfied
C) Average
D) Not satisfied
E) Extremely dissatisfied
A) Yes (
B) No
A) Yes (
B) No
15) How satisfied are you with Reliance communication billing system?
A) Totally satisfied (
B) Satisfied
C) Average
D) Not satisfied
E) Extremely dissatisfied
A) Yes (
B) No
) 83
A) Yes (
B) No
20) How would you rate your overall experience with Reliance communication?
A) Totally satisfactory (
B) Satisfactory
C) Average
D) Not satisfactory
E) Extremely dissatisfactory (
Customer signature
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