3G War: Who will be the winner?

Marketing Research on – 3G Preference A Conjoint Analysis ALOK PRATAP SINGH

Ph. 9266351033E-mail:alokpratap347@gmail.com

Plan of the Presentation

1. Defining the marketing objective.

2. Identify marketing problem and research problem

3. The business model4. Marketing research

methodology5. Tabulation and Analysis

Defining the marketing objective?

Current Situation 3G services are being launched across the country by major service

operators. The question which is baffling the service operators, how consumers

are going to choose them? Whether 3G would follow a similar fate like 2G, and the battle would

be decided on tariff front? Or the road to market penetration would be different this time?

Marketing problem

“How the customers are going to choose 3G services? Is pricing going to be deciding factor? How can service operator increase their market share?”

Our marketing problem

Marketing research problem

“To Determine criterion which weigh heavily in choosing among different service providers?”

“To determine the price elasticity of demand and its impact on sales”

“What combination of variable would gives us maximum sale and the optimum output?”

Our marketing research problem

Business Model

Road Map of our marketing researcho A review of trade articles related to 3G and secondary data from IMRB,

Neilson were used in further understanding the market.

o An exploratory research was conducted among the students of MDI to

find out the variables that plays important role in deciding the price.

o After zeroing down on variables, another pilot study was conducted

among the student community to determine the relative importance

consumer attach to these variables.

Stimuli : Combination of attribute levels

Respondents : Evaluation of attributes in

terms of desirability

The Research Methodology

Objective/Theoretical Framework

oMathematical Model

Y = ∑ axWhere

Y = degree of preference

a = model parameter to be estimated statistically

x = attribute of service operator that constitute the choice

criteria

The Research Methodology

SurveyoPersonal In Home Interviews

o Structured Questionnaire Ordinal Scale

Sampling Design ProcessoTarget Population

• Elements – Male or Female above 16 years to 60 years of age.

• Sampling Units – Mobile phone users with data usage(SMS)

• Extent – Gurgaon

• Time – 2011

o Sampling Frame• All the students of MDI, Gurgaon

The Research Methodology

oSampling Technique• Sample with replacement and non probability

sampling i.e. Convenience Sampling.

oSample Size• A sample size of 32 has been chosen.

oData Preparation & Analysis• Conjoint Analysis

Tariff for unlimited Data Uses : 1. <9992. 1000-

14993. 1500-

17994. >1800

Connectivity :1. Uninterrupte

d2. Breaking

Company : 1. Reliance, 2. Vodafone 3. Airtel

Speed : 1. 0.5-1

Mbps2. 1-3 Mbps3. 3-5 Mbps4. >5 Mbps

Customer Service:1. Excellent,2. Poor

Conjoint Analysis -Attribute Detail

Conjoint Analysis - Constructing the Stimuli

o Full Approach: The respondents rank the cards

according to their preferences. Each profile describes a

complete services and consists of a different combination

of factor levels for all factor of interest.

o An orthogonal Array: A resulting set of 16 orthogonal

array is designed with the help of SPSS to capture the

main effect for each factor level.

o Experimental Stimuli: Each set of orthogonal design

represents a different version of the product under study.

COMPANY : Airtel

Customer Service : Poor

Connectivity : Breaking

Tariff for Unlimited Uses : 1500-1799/-

Speed : 0.5 – 1 Mbps

Conjoint Analysis - Card Design

1500-1799/-1500-1799/-

0.5 -1 Mbps0.5 -1 Mbps

Conjoint Analysis - Running the Analysis

For analyzing the data command syntax – specifically

CONJOINT Command.

Conjoint PLAN='C:\Documents and Settings\Alok\Desktop\

Telecom\Conjoint\ORTHO.sav'/DATA='C:\Documents and

Settings\Alok\Desktop\Telecom\Conjoint\

RankingSPSS.sav'/RANK=RankCard1 TO

RankCard16/SUBJECT=Respondent

/ PRINT=SUMMARYONLY/PLOT=ALL/UTILITY=RUGUTILL.

29% 22%

Conjoint Analysis - Interpreting the ResultsRelative Importance

19%

15%

15%

Connectivity

Speed

Tariff

Brand

Customer Service

Conjoint Analysis - Interpreting the Results

1. The result shows that connectivity has the most influence

in overall preference.

2. Tariff is coming at third position and therefore it is not as

important as Connectivity and Speed.

3. Surprisingly Customer Service has the least importance

role in determining customer preference.

Relative Importance

Conjoint Analysis - Interpreting the Results

Conjoint Analysis - Interpreting the Results

1= .8952=-1.156

3= 2

.102

4=-3.03

5=3.

22Utility Score :

Since the utilities are all expressed in common unit, they can be

added together to give the total utility of any combination.

Airtel 2.033

Utility (Airtel) + Utility (Customer Service) + Utility (Connectivity) + Utility (Tariff) + Utility (Speed)= (0.895)+(-1.156)+(2.102)+(-3.033)+(3.225)=2.033

Airtel even with Poor customer Service and High Tariffs i.e. 1500 -1799/- scoring total utility of 2.033

Conjoint Analysis -Interpreting the Results

1= .3282=-1.156

3= 2

.102

4=-3.03

5=3.

22Utility Score :

Vodafone 0.81

Utility (Vodafone) + Utility (Customer Service) + Utility (Connectivity) + Utility (Tariff) + Utility (Speed)= (-.328)+(-1.156)+(2.102)+(-3.033)+(3.225)=0.81

With similar utilty like Airtel, Vodafone would loose market share. To gain an edge over Airtel, it needs to 1. Improve Customer service OR 2. Lowering the tariff from 1500-

1799/- to 1000-1499/- and improving the speed beyond 5 Mbps

Conjoint Analysis - Interpreting the Results

1= .3282=-1.156

3= 2

.102

4=-3.03

5=3.

22Utility Score :

Reliance

0.572

Utility (Vodafone) + Utility (Customer Service) + Utility (Connectivity) + Utility (Tariff) + Utility (Speed)= (-.566)+(-1.156)+(2.102)+(-3.033)+(3.225)=0.572

Reliance is at a very precarious situation, it can compete only if,1. Improve Brand Image &

Customer service OR 2. Lowering the tariff from 1500-

1799/- to 1000-1499/- and improving the speed beyond 5 Mbps

Conjoint Analysis - Interpreting the Results

It’s obvious increasing Speed is technically not feasible for

the Companies. Therefore they will either resort to

Connectivity, Customer Service or Lowering the tariff. In

case of Reliance, which has a low Brand Image, it should

concentrate on uninterrupted connectivity and following

it up with Brand Building exercise. Third option for them

is improving the Customer Service.

Utility Score:

THANK YOU