Brm Project (2)

7/28/2019 Brm Project (2)

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A

N

E

R

R

R

N

N

GRACEPERIOD

ONLINEPAYMENT

TARIFF PLANS

COVERAGE

CELLULA

SERVICE

PROVIDE S

CONNECTIVITY

BILL PAYMENT ISD

EASYRECHAR

GE

SUBMITTED TO : Prof. TRILOCHAN TRIPATHY

SUBMITTED BY :

SUMEET

SINGH

GMM SUNIL KUMAR

MVK CHAITANYA

MUKESH KANDHOL

SECTION I

12THJan 09


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ACKNOWLEDGEMENTS

We extend our sincere gratitude to Prof. Trilochan Tripathy without whose support and

inspiration this project would not have been possible. We would like to take this opportunity to

thank our faculty for the genuine pieces of advice which he has given from time to time for the

completion of this project.

.

We would also like to thank all our project mates and fellow students who extended their help

and support whenever required. A special thanks to all who provided their knowledgeable insight

into things of complexity and made them simple and lucid for us.

A sincere thanks to our Professor who guided us to collect the primary data and even to all those

people who have added value to our project work through the questionnaire they had filled on

due course of the project work.

Last but not the least, my warm heartfelt thanks to IBS, Hyderabad for providing us with the

facilities required to do the adequate research and give the project its final shape.

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TABLEOF CONTENTS:

PARTICULARS PAGE NO.

EXECUTIVE SUMMARY 4

RATIONALE OF CHOOSING THE TOPIC 6

OBJECTIVE OF PROJECT 7

HYPOTHESIS 7

APPROACH TO THE PROBLEM 7

LITERATURE SURVEY 8

DATA COLLECTION METHODOLOGY 9

OVERALL MARKET SHARE 10

RESEARCH DESIGN 13

TOOLS USED 13

CLUSTER ANALYSIS 14

FACTOR ANALYSIS 19

CORRELATION 29

REFERENCES 30

QUESTIONNAIRE 31

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EXECUTIVESUMMARY

Satisfaction is a persons feelings of pleasure or disappointment resulting from comparing

a products perceived performance in relation to his/her expectations.

According to both marketing theory and practical experience, telecommunications firms should

improve their performance by satisfying their customers, so as to obtain and sustain advantage in

the intensely competitive environment. This is because customer satisfaction results in customer

loyalty and firms with a bigger share of loyal customers profit from increasing repurchase rate,

greater cross buying potential, higher price willingness, positive recommendation behavior

and lower switching tendency.

Here in this research we have tried to understand perceived value proposition and customer

satisfaction towards various cellular operators.

The study on customers was quantitative study of existing customers of all operators. Here in we

have tried to clarify certain factors related to customers satisfaction in current scenario.

Research Design Adopted:DESCRIPTIVE

Data Collection Approach: QUESTIONAIREDISTRIBUTION

SampleSpace: 70

Sampling Technique Used: RANDOMSAMPLING

Primary Data CollectionSource:

IBS, Hyderabad

TCS, Deccan Park

STPI , Madhapur

HSBC, Hyderabad


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This is because it was intended to find the market characteristics such as market size, attitude of

the customers towards the different aspects of the service and so on; we adopted questionnaire

approach as a primary data collection technique. Both open ended and closed ended questions

were used in the questionnaire to get better understanding of the problem.

To eliminate all kinds of bias in the research and to attain the true picture we adopted random

sampling in our research work.

Here in order to measure the perceived preference level of the customer and there deviation we

have applied multivariate analysis tools such as factor analysis and cluster analysis.

The outcome of the research work has helped us to identify the parameters that the customers

keep in mind while selecting a cellular service provider.

There are 25private companies operating in 23 telecom circles and four metro cities, covering

1500 towns across the country. There are two types of mobile service networks namely GSM

(Global System for Mobile) and CDMA (Code Division Multiple Access). The sector at present

is witnessing a fierce competition to acquire maximum number of new subscribers with various

price cuts and life time offers, as it is very difficult to make an existing subscriber switch

services.

With regular price cuts it becomes very difficult for existing players to offer premium quality

services to make their users happy, which then boils down to offering regular skeletal services

but with consistency and inbuilt quality which is the least the consumer expects.

Here in our study, we attempt to measure the satisfaction level of existing subscribers of three

service providers namely Idea, Tata Indicom, Reliance, Vodafone and Airtel in our campus, IBS

Hyderabad as well as in TCS Hyderabad (Deccan Office, Hi-Tec City)

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RATIONALEOFCHOOSINGTHETOPIC

The most uncertain things in the current competitive world is customers perception towards a

product or service. The most important objective from marketing point of view is to understand

the customer perception towards their product. Telecom Industry is booming, what we can say is

the period of telecom revolution. The number of cellular service providers is increasing and there

exists a wide variety of choice before the customers to choose a particular provider. So it

becomes a daunting task before the cellular players to provide best value proposition and

increased customer satisfaction towards their subscribers.

It is essential from business point of view to analyze the parameters which are essential for the

customers to choose a particular cellular operator. Moreover its important to understand the

factors which are responsible in getting increased revenues for the business and which has helped

in increasing the customer base of the cellular operator.

The Telecom Industry in India is still evolving and there are no signs of consolidation as of now.

Currently the industry is having a subscriber base of 230 million with an estimated 5-6 million

subscribers being added every month. Price war, subscriber base, decreasing ARPUs (Average

revenue per user), Technology issues, target market, value added services, network up gradation

are the issues of major concern to all the players. Government has already given green signals for

FDI participation to be raised to 74% and unified licensing regime is there. With government

decision to implement unified licensing Regime, CDMA players like Reliance, Tata have got

seamless mobility and would be at par with GSM players. GSM operators will be forced to

match the prices along with installing new capacities and upgrading the existing ones. This has

made the companies decrease the tariffs to the lowest in the world that is from the incoming and

outgoing call charges of Rs18/minute (0.45 USD) seven years ago to the present day when then

incoming calls are free and outgoing are charged as low as Rs 1/minute (0.02 USD). Under easy

payment plans you can get a lifetime incoming call for free!

There has been a tremendous growth in the telecom sector in India and doing a research project

to analyze the customer preference towards the cellular service providers is definitely a

knowledge gaining and it would help in understanding the sector much better.

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OBJECTIVEOFPROJECT

Here with the help of this research we are trying to determine the overall perceived value

proposition of the service and satisfaction levels of the customers of different mobile operators.

The major objectives behind this research project were:

To understand current satisfaction level of customers with regard to different attributes of

mobile services.

To determine the preferences of the customers for different mobile service providers.

To ascertain the improvements expected by the customers in services provided.

To find out the reason behind increasing customer base of a cellular service provider.

HYPOTHESIS

Null Hypothesis: There exists no relationship between the variables we surveyed and the overall

customer satisfaction towards a cellular service provider.

Alternative Hypothesis: There exists a relationship between the variables we surveyed and the

overall customer satisfaction towards a cellular service provider.

APPROACHTOTHEPROBLEM

The market research will be done in understanding perceived value proposition and customer

satisfaction of Indian mobile industry. The study on customers will be quantitative study of

existing customers of major operators, operating in Hyderabad. The research design adopted by

us will be descriptive design and we are following questionnaire approach as data collection

technique. Closed ended questions will be used in the questionnaire to get better understanding

of the problem.

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LITERATURESUR VEY

Level of satisfaction is a persons feeling of contentment or disappointment resulting from

comparing a products performance in relation to his/her expectations. The buying behaviorof the consumer starts with the search of information about the product based on his need. Then

after evaluating the set of option a consumer decided to purchase the product. In the end he

evaluates his decision which then decides his level of satisfaction. As per the insights by

different authors namely, (Philip Kotler, 2000).

According to both marketing theory and practical experience, telecommunications firms should

improve their performance by satisfying their customers, so as to obtain and sustainable

advantage in the intensely competitive environment to get heart and mind share. 4 As ofoperationalising customer centric marketing (Rajendra S Sisodia and Jagdesh Seth) can

help to meet this end. This is because customer satisfaction results in customer loyalty and firms

with a bigger share of loyal customers profit from increasing repurchase rate, greater cross

buying potential, higher price willingness, and lower switching tendency.

As stated in the case study by Fulbagh Singh and Reema Sharma in their research paper

Cellular services And Customer Buying Behavior in Amritsar City, There is a need to change

the image the product for status symbol to product of necessity to increase the clientele base. For

this the cellular company must further reduce the per minute charges and introduce more flexible

plan schemes.

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DATACOLLECTIO NMETHODOLOGY

PrimaryandSecondaryDataSources

Questionnaire Method was used containing Close Ended Questions.

Secondary Data Sources of Customer Satisfaction Report of CRISIL and other journal

and research papers were used to discern customer satisfaction factors of service

providers in the Hyderabad telecom circle.

Samplingtechniques

The sampling technique used in the study is Convenience sampling. More specifically

Judgmental sampling technique which lets the researcher judge whether the respondent will truly

give his response without any bias. Convenience Sampling has been administered on 100

respondents. Data was analyzed on the survey conducted on the ICFAI Hyderabad Campus.

ScalingTechniques

Likert scale to measure customer satisfaction. The scale is balance .and has responses

ranging from Not at all essential- 1, and if they feel the factor is Absolutely essential

mark 7

Multivariate Analysis tool using SPSS to measure perceived value proposition using tools

like

Factor Analysis

Cluster Analysis

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a

V

e

e

p

r

b

o

(

a

2

a

OVER ALLM ARKETSH ARE

Percent Share Of Service Providers

(National)Other

s3%

Aircel6.17%

Reliance3.84%

BhartiAirtel33.25

%

Idea

13.16%

Vodafone23.57%

BSNL16.24%

MTNL

1.5%

Source: CRISIL Report (below)

Gro u p Com pany w ise % m a rk e t share N ov'20 08

Sl. No. N me of Company Total Sub Figures % Market Share

1 Bharti Airtel 82920593 33.25

2 odafone Essar 58764164 3.57%

3 BSN 40487511 16.24

4 IDEA 32809720 3.16%

5 Airce 15375258 6.17%

6 Reliance Telecom 958269 3.84%

7 Spic 370589 1.49%


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1

0

8 MTNL 382127 1.53%

9 BPL 188232 0.75%

All 249349436 100.00%

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E

O

ANDHR A PRADESH SUBC RIBER B ASE DAT A

Player Subscriber Base

Vodafone Essar 343001

Bharti 809432

IDEA 446043

BSN 169612

VODAFON 112345

RELIANC 274133

9000000

SUBSCRIBERBASE AT

A.P

80000 0

7000000

60000 0

5000000

400000

Subscriber Base

3000000

20000 0

1000000

0

Vodafone BhartiAirt

Essar

l IDEAcellular

BSNL VODAFONE RELIANCE


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PRE AIDMARKET

HARE

8%

10%

14%

8%

25%

35%

Air el

Vodafon

e Idea

Tata

Rel ance

BSNL

Source: Crisil Research Telecom Services, Monthly Review Sep11

In the prepaid market Airtel is the market leader with 35% market share followed by Vodafone

with 25% share and others.

POS PAID MARKET SHARE

19%

5%

29%

3%

Airtel

Vodafon

e Ide

Tata

Reliance

24% BS L14%

7%

others

Source: Crisil Research Telecom Services, Monthly Review February 2008

The post-paid reveals Airtel to be the market leader with 28.8% with close competition from

Vodafone with 23.7% , followed by others.


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RESEARCHDESIGN

Descriptive Design

The research design chosen for the study was descriptive. This was because it was intended

to find the market characteristics such as market size, attitude of the customers towards the

different aspects of the service and so on.

.

Information Needed For the Research

Since the primary research was already conducted on customers, the information needs were

known well. The study required the following information to be extracted for doing the final

analysis.

What are the present satisfaction levels of the customers with respect to different

aspects of service provided?

What are the preferences of the customer with regard to the service provided?

Which aspects of the service have more predominant effect on the overall

Satisfaction levels of the customers?

TOOLSUSED

SPSS 13.0 for Windows

Microsoft Excel

Microsoft Word

The above mentioned tools were used in the completion of the project. Using SPSS 13.0 weanalysed the data through factor analysis and cluster analysis. Again using MS Excel we did the

required graphs to analyse the trend in the growth of prepaid or postpaid subscribers in the state

of Andhra Pradesh.

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CLUSTERANALYSIS

(Introduction of Cluster Analysis and Its Application InThis Survey)

Cluster analysis is an exploratory data analysis tool for solving classification problems. Its

object is to sort cases (people, things, events, etc) into groups, or clusters, so that the degree of

association is strong between members of the same cluster and weak between members of

different clusters. Each cluster thus describes, in terms of the data collected, the class to which

its members belong; and this description may be abstracted through use from the particular to the

general class or type.

Kmeansclustering

The K-means algorithm assigns each point to the cluster whose center (also called centroid) is

nearest. The center is the average of all the points in the cluster that is, its coordinates are the

arithmetic mean for each dimension separately over all the points in the cluster...

Example: The data set has three dimensions and the cluster has two points: X = (x1, x2, x3) andY = (y1, y2, y3). Then the centroid Z becomes Z = (z1, z2, z3), where z1 = (x1 + y1)/2 and z2 =

(x2 + y2)/2 and z3 = (x3 + y3)/2.

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ANALYS ISOFCLUSTERSINTHISSURVEY

Cluster Analysis was applied to this survey in order to segment our respondents base by service

usage patterns. If customers can be classified by usage, the company can offer more attractive

packages to its customers.

Iteration History(a)

Iteration Change in Cluster Centers

1 2

1 7.107 9.007

2 .813 .475

3 .025 .012

4 .001 .000

(a) Iterations stopped because the maximum number of iterations was performed. Iterations

failed to converge. The maximum absolute coordinate change for any center is .000. The current

iteration is 4. The minimum distance between initial centers is 20.664.

The iteration history shows the progress of the clustering process at each step. In early iterations,

the cluster centers shift quite a lot. By the 4th iteration, they have settled down to the general

area of their final location, and the last two iterations are minor adjustments.

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ANOVATAB LE

The ANOVA table indicates which variables contribute the most to your cluster solution.

Variables with large F values provide the greatest separation between clusters.

ANOVA

Cluster Error

F Sig.Mean Square df Mean Square df

Tariff Plan

Customer care

GPRS/Internet

Connectivity/congestion

Dealer Support

Easy Recharge/Bill

Payment

Grievance Handling

Roaming Facility

ISD

Grace Period

MMSSing tones &

Ringtones

Conferencing Facility

Missed Call Intimation

Closed User Group

Bundled Packages

Other Promotional

Schemes

Privacy AgreementCoverage

Online Payment

29.126

39.226

52.557

5.085

50.631

16.481

4.601

25.952

17.443

33.748

2.084

28.388

63.929

34.310

20.651

56.413

15.410

38.925

36.643

26.198

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

2.315

2.149

2.481

2.804

2.087

2.982

2.408

3.433

2.564

2.743

2.999

3.028

2.027

3.370

2.372

2.562

2.684

2.664

2.299

2.810

68

68

68

68

68

68

68

68

68

68

68

68

68

68

68

68

68

68

68

68

32.579

18.251

21.183

1.813

24.256

5.526

1.911

7.560

6.804

12.302

.695

9.376

31.537

10.180

8.706

22.017

5.741

14.612

15.938

9.323

.001

.000

.000

.183

.000

.022

.171

.008

.011

.001

.407

.003

.000

.002

.004

.000

.019

.000

.000

.003

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In our case, we see that Tariff Plan contributes the maximum to the cluster solution i.e. the

respondents have given utmost importance to the Tariff plan. Other important factors

contributing which are considerably contributing to the cluster are Customer Care, GPRS,

Bundled packages, Dealer Support, Conferencing.

The F test is used only for descriptive purposes because the clusters have been chosen to

maximize the differences among cases in different clusters. The observed significance levels are

not corrected for this and thus cannot be interpreted as tests of the hypothesis that the cluster

means are equal.

FINAL CLUSTER

CENTERS

The values in the table are the means for each variable within each finalcluster

Final Cluster Centers

Cluster

1 2

Tariff Plan

Customer care

GPRS/InternetConnectivity/congestionDealer SupportEasy Recharge/Bill Payment

Grievance Handling

Roaming Facility

ISD

Grace PeriodMMS

Sing tones & Ringtones


Missed Call IntimationClosed User GroupBundled Packages

Other Promotional Schemes

Privacy Agreement

Coverage

Online Payment

6

5

55

5

5

5

5

5

4

4

5

5

55

5

4

5

5

5

4

4

34

3

4

4

4

4

4

4

4

3

35

3

3

4

4

4

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It can be observed from the above table that the Tariff Plan has been given more importance by

the cluster 1 respondents rather than cluster 2.Similarly Customer care, Coverage, easy

Recharge, ISD, Conferencing have also been given more importance by Cluster 1 respondents

rather than Cluster 2 respondents.

Whereas variables like Grace Period, MMS, Closed User Group (CUG) is being equal

importance by customers belonging to both the clusters.

All in all the respondents of Cluster 1 can be viewed as more Tech Savvy and Sensitive towards

different services provided by mobile service providers. And the respondents of cluster 2 are not

as proactive towards using new technology and advanced communication services.

NUMBER OF CASES IN EACHCLUSTER

Number of Cases in each Cluster

Cluster 1 31.000

2 39.000

Valid 70.000

Missing .000

This table shows how many cases were assigned to each cluster. In this survey 31 respondents

belonged to Cluster 1 and 39 have been found to be in Cluster 2.

Limitat ions

The findings are based on a survey conducted in Hyderabad so the results obtained might be

different from the behavior displayed from a more general sample.

This result cannot be generalized to all geographical regions in which the telecom service

providers operate.

There may be a bias in furnishing information from the respondents.

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FACTORANALYSIS

The survey we conducted was on the customer satisfaction and preference level for various

mobile service providers.

The factors we considered for the same are :-

1. Tariff Plan

2. Customer Care

3. GPRS/Internet

4. Connectivity/Congestion

5. Dealer Support

6. Easy- Recharge/Bill Payment

7. Grievance Handling

8. Roaming Facility

9. ISD

10. Grace Period

11. MMS

12. Sing Tones & Ringtones

13. Conferencing Facility

14. Missed Call Information

15. Closed User Group

16. Bundled Packages

17. Other Promotional Schemes

18. Private Agreement

19. Coverage

20. Online Payment

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Bartlett's Test of Approx. Chi-Square 397.049

Sphericity Df 190

Sig. .000

We have performed factor analysis on these variables. The various outputs through SPSS is

mentioned below,

KMO ANDBARTLETT'S TEST

Table 1.3

Kaiser-Meyer-Olkin Measure of Sampling

Adequacy..708

Source: Output Sheet (appendix)

KMO test and Bartletts Test is basically the test of assumptions. The standard value for KMO

test is that it should be greater than 0.70 and is inadequate if less than .50. The underlying

assumptions behind the KMO test is that it indicates there is sufficient item for each factor. Here

in our test the value of KMO is .708 which shows that we have sufficient item for each factor.

The assumption of Bartletts test of sphericity is that it should be significant(less than .005)

indicating that correlation matrix is significantly different from identity matrix in which

correlations between the variables is zero. Here in our test significant value we have got is .000:

this means that the variables are correlated highly enough to provide a reasonable basis for factor

analysis. As per our analysis the approx chi square value is 397.049 and degree of freedom is 190.

This shows that data are fit for factor analysis.

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Table 1.4

Communalities

Initial Extraction

Tariff Plan

Customer care

GPRS/Internet


Dealer Support

Easy Recharge/Bill

Payment

Grievance Handling

Roaming Facility

ISD

Grace Period

MMS




Closed User Group

Bundled Packages

Other Promotional

Schemes

Privacy Agreement

Coverage

Online Payment

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

.688

.697

.646

.552

.488

.703

.749

.666

.796

.752

.663

.540

.672

.720

.744

.663

.673

.575

.677

.708

Extraction Method: Principal Component Analysis.

Source: Output Sheet (Appendix)

Communality, h2, is the squared multiple correlation for the variable as dependent using the

factors as predictors. The communality measures the percent of variance in a given variable

explained by all the factors jointly and may be interpreted as the reliability of the indicator.

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Communality for a variable is computed as the sum of squared factor loadings for that variable

(row). Recall r-squared is the percent of variance explained, and since factors are uncorrelated,

the squared loadings may be added to get the total percent explained, which is what communality

is. For full orthogonal PCA(the one used in our analysis), the initial communality will be 1.0 for

all variables and all of the variance in the variables will be explained by all of the factors, which

will be as many as there are variables. The "extracted" communality is the percent of variance in

a given variable explained by the factors which are extracted, which will usually be fewer than

all the possible factors, resulting in coefficients less than 1.0.

When an indicator variable has a low communality (>=.25), the factor model is not working well

for that indicator and possibly it should be removed from the model. Low communalities across

the set of variables indicate the variables are little related to each other. However, if the

communality exceeds 1.0, there is a spurious solution, which may reflect too small a sample or

the researcher has too many or too few factors.

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Table 1.5

Total Variance Explained

TotalVarianc

e

ComponeInitial Extraction Sums ofSquared Rotation Sums ofSquared

Total % of Cumulative Total % of Cumulative Total % of Cumulative

1.00 4.86 24.2 24.2 4.86 24.2 24.2 2.93 14.6 14.64

2.00 1.84 9.18 33.4 1.84 9.18 33.4 2.20 11.0 25.64

3.00 1.61 8.03 41.5 1.61 8.03 41.5 1.89 9.44 35.07

4.00 1.53 7.66 49.1 1.53 7.66 49.1 1.74 8.70 43.77

5.00 1.36 6.79 55.9 1.36 6.79 55.9 1.69 8.43 52.20

6.00 1.15 5.75 61.7 1.15 5.75 61.7 1.54 7.70 59.90

7.00 1.03 5.15 66.8 1.03 5.15 66.8 1.39 6.96 66.86

8.00 0.91 4.54 71.4

9.00 0.81 4.07 75.410.0 0.77 3.87 79.3

11.0 0.65 3.27 82.6

12.0 0.62 3.12 85.7

13.0 0.50 2.50 88.2

14.0 0.46 2.30 90.5

15.0 0.43 2.14 92.6

16.0 0.36 1.79 94.4

17.0 0.34 1.68 96.1

18.0 0.31 1.56 97.7

19.0 0.27 1.34 99.0

20.0 0.19 0.96 100.0

d: Principal Component Analysis.


Basically the total variance explained table tells about the variance explained by each factor.

Eigen values refer to the variance explained or accounted for. The % of variance shows the

percent of variance for each component before and after rotation. Cumulative variance basically

shows the percentage of variance shown by the variables whose Eigen value is greater than 1.

Here the Total Variance Explained table shows how the variance is divided among the 20

possible factors. We found seven factors have Eigen values (a measure of explained variance)

greater than 1.0 which is a common criterion for a factor to be useful. When the Eigen value is

less than 1.0, this means that the factor explains less information than a single item would have

explained. Here the first factor shows the highest variance i.e. it explained 24.291 % of the total

variance explained. If we sum up all the seven factors it basically explained 66.863 % of the total

variance. The computer would have looked for the best seven-factor solution by "rotating" seven

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factors. The remaining 13 factors are not showing any variance due to their weakly correlated

nature.

For this we will use an orthogonal rotation (varimax). This means that the final factors will be as

uncorrelated as possible with each other. As a result, we can assume that the Information

explained by one factor is independent of the information in the other factors. We rotate the

factors so that they are easier to interpret. Rotation makes it so that, as much as possible,

different items are explained or predicted by different underlying factors, and each factor

explains more than one item. This is a condition called simple structure. One thing to look for in

the Rotated Matrix of factor loadings is the extent to which simple structure is achieved.

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Eigenvalue

Scree Plot

5

4

3

2

1

0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Component Number

The Rotated Factor Matrix table, which contains these loadings, is key for understanding the

results of the analysis. Here the computer have sorted the 20 factors into seven overlapping

group of items each which has a loading of 0.40 or higher (without considering the sign).

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Table 1.6

Rotated Component Matrix (a)

Components

1 2 3 4 5 6 7

Grace Period

Customer care

GPRS/Internet

Tariff Plan

Bundled Packages

Online Payment

Privacy Agreement

Dealer Support


Grievance HandlingSing tones & Ringtones

Roaming Facility

Easy Recharge/Bill

Payment

Coverage

ISD

Other Promotional

Schemes MMS



Closed User Group

.792

.747

.741

.619

.450

.729

.718

.639

.456

.442

.777

.601

.566

.401

.478

.741

.639

.848

.761

.443

.806

.505

.451

.439

.741

-.518

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

Rotation converged in 9 iterations.


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Table 1.7

Critical Factors

Factor 1 Factor 2 Factor 3 Factor 4 Factor 5 Factor 6 Factor 7

Economic

Pack/Pricing

Customer

Friendliness

Customer

Support

Back

Accessibility Travel packEasy to

Connect

Add on

feature

Tariff PlanPrivacy

Agreement

Grievance

Handling

Easy

Recharge/Bill

Payment

ISD MMSMissed Call

Information

Grace PeriodOnline

Payment

SingTones

&Ring

Tones

Coverage

Other

Promotion

alSchemes

Connectivity/

Congestion

GPRS/InternetBundled

Packages

Roaming

Facility

Customer Care

Source: Data Analysis

Factor 1: Economic Pack/Pricing-

The rotated Matrix revealed that the respondents perceive this particular factor to be the most

important factor, with the highest explained variance of 14.64%. Four out of twenty service

features load on significantly to this factor. We have named this factor as economy pack as it

consists of various GPRS/Internet (free sms, free calls, grace period etc) along Grace Period

(Period after expiry of the validity). Tariff plan as per the convenience of customers and proper

connectivity, thus can be said to be the most crucial factors influencing the decision of mobile

service users while selecting particular service providers.

Factor 2: Customer Friendliness

This has come out as second most important factor with rotated explained variance of 11.00%.

Three types of feature were loaded on to this factor. Privacy Agreement, (No sharing of

Customer Data with other agencies), Online Payment (Payment of Post-Paid Bills through

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Internet in collaboration with various Banks) and Bundled Packages (various packages like

Closed User Group etc.)

Factor 3: Customer Support Back

Three types of featured are loaded on this factor. This factor consists of facilities like Grievance

Handling, Sing Tones & Ring Tones and Roaming Facility. The factor accounts for 9.44% of the

variance. Facilities like Sing Tones & Ring Tones are a boost for corporate and business

customers.

Factor 4: Accessibility

Two types of features are loaded on this factor and together they account for 8.70% of the

variance. Easy Re-charge/Bill Payment and Coverage has become one of the most crucial factors

to measure the accessibility of the customers. If a company is not able to handle the coverage of

customers then it is bound to lose the market share and its reputation in the market.

Factor 5: Travel Pack

It has been revealed that the fifth most important factor with explained variance of 8.43% the

various features which are loaded on this factor are ISD and Other Promotional Schemes. ISD

stands for International Subscriber Dialing, which is major source of Revenue for the company.

Other Promotional Schemes are very important factors for instant revenue for the company.

Factor 6: Easy to Connect

The rotated matrix reveals that the factor easy to connect accounts for 7.70% of the variance.

Two types of features are loaded on this factor. These features are MMS and

Connectivity/Congestion. This is verybeneficial forfrequently travelling customers.Connectivity is also loaded on this factor, which is one of the most important factor when it

comes to a place (Dontanapalli, ICFAI), which is outside city limits.

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CORRELATIO

Overall

Satisfaction

Tariff

Plan

Customer

care

GPRS/I

nt

ernet

Connectivity/

congestio

Dealer

Suppor

t

Easy

Rechar

g e/Bill

Pa men

Grievance

Handling

Roaming

Facility

ISDGrace

PeriodMMS

Singtones

&

Rington

Conferen

ci ngFacility

Misse

d Call

Intima

ti on

ClosedUserGrou

Bundled

Packages

Other

Promotion al

Scheme

s

Privacy

Agreement

Coverage

Online

Payme

n t

Overall 1.00 0.18 0.36 0.31 0.20 0.10 0.11 0.20 0.27 0.02 0.11 0.20 0.21 0.21 0 .42 0.20 0.21 0.24 0.34 0.10 0.07

0.13 0.00 0.01 0.10 0.40 0.38 0.10 0.02 0.87 0.38 0.10 0.08 0.08 0.00 0.11 0.08 0.05 0.00 0.42 0.58

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

Tariff Plan 0.18 1.00 0.43 0.31 0.10 0.42 0.29 0.19 0.36 0.10 0.30 (0.13 0.33 0.27 0 .20 (0.0 0.12 0.25 0.16 0.09 0.060.13 0.00 0.01 0.40 0 .00 0.01 0.12 0.00 0.40 0.01 0.27 0.01 0.02 0.10 0.72 0.30 0.04 0.18 0.44 0.65

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

Customercare 0.36 0.43 1.00 0.53 0.19 0.46 0.28 0.23 0.23 0.05 0.53 (0.00 0.16 0.45 0.19 0.18 0.26 0.13 0.43 0.16 0.24

0.00 0.00 0.00 0.11 0 .00 0.02 0.06 0.06 0.69 0.00 1.00 0.19 0.00 0.11 0.13 0.03 0.28 0.00 0.20 0.04

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

GPRS/Internet 0.31 0.31 0.53 1.00 0.24 0.29 0.36 0.12 0.28 0.01 0.49 0.10 0.21 0.30 0 .06 0.27 0.19 0.12 0.26 0.13 0.18

0.01 0.01 0.00 0.05 0 .01 0.00 0.32 0.02 0.95 0.00 0.42 0.08 0.01 0.63 0.02 0.12 0.33 0.03 0.29 0.14

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

Connectivity/congesti on

0.20 0. 10 0.19 0.24 1.00 (0.02)

(0.01)

0.08 (0.04)

0.05 0.12 0.13 0.03 (0. 03)

0.08 0.09 0.12 0.14 0.13 0.17 0. 07

0.10 0.40 0.11 0.05 0.90 0.95 0.49 0.76 0.65 0.34 0.27 0.83 0.82 0.51 0.47 0.34 0.24 0.28 0.16 0.57

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

Dealer Support 0.10 0. 42 0.46 0.29 (0.02 1.00 0.26 0.24 0.19 (0.00 0.29 0.05 0.19 0.36 0 .11 0.19 0.37 0.11 0.30 0.25 0. 23

0.40 0.00 0.00 0.01 0.90 0.03 0.05 0.12 1.00 0.01 0.71 0.12 0.00 0.36 0.11 0.00 0.36 0.01 0.04 0.05

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

y Recharge/Bill 0.11 0. 29 0.28 0.36 (0.01 0.26 1.00 (0.12 0.29 0.02 0.16 (0.11 0.19 0.20 0 .09 0.14 0.05 0.06 0.11 0.25 0. 180.38 0.01 0.02 0.00 0.95 0 .03 0.31 0.02 0.86 0.20 0.35 0.12 0.10 0.45 0.24 0.66 0.63 0.35 0.04 0.13

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

Grievance 0.20 0. 19 0.23 0.12 0.08 0.24 (0.12 1.00 0.30 0.08 0.09 0.02 0.35 0.32 0 .28 0.27 0.25 0.22 0.04 (0.03 0. 11

0.10 0.12 0.06 0.32 0.49 0 .05 0.31 0.01 0.53 0.48 0.89 0.00 0.01 0.02 0.03 0.04 0.06 0.72 0.83 0.34

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

Roaming 0.27 0. 36 0.23 0.28 (0.04 0.19 0.29 0.30 1.00 0.12 0.14 0.04 0.29 0.30 0 .22 0.29 (0.02 0.25 0.06 0.31 0. 11

0.02 0.00 0.06 0.02 0.76 0 .12 0.02 0.01 0.32 0.25 0.72 0.02 0.01 0.07 0.01 0.86 0.03 0.60 0.01 0.38

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

ISD 0.02 0.10 0.05 0.01 0.05 (0.00 0.02 0.08 0.12 1.00 0.34 0.12 0.24 0.17 (0.09 0.29 0.18 0.44 0.12 0.19 0.05

0.87 0.40 0.69 0.95 0.65 1 .00 0.86 0.53 0.32 0.00 0.34 0.04 0.16 0.48 0.01 0.13 0.00 0.32 0.12 0.71

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

Grace Period 0.11 0.30 0.53 0.49 0.12 0.29 0.16 0.09 0.14 0.34 1.00 0.08 0.05 0.27 0 .03 0.36 0.18 0.16 0.13 0.05 0.000.38 0.01 0.00 0.00 0.34 0 .01 0.20 0.48 0.25 0.00 0.51 0.68 0.02 0.78 0.00 0.13 0.17 0.28 0.67 1.00

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

MMS 0.20 (0.13 (0.00 0.10 0.13 0.05 (0.11 0.02 0.04 0.12 0.08 1.00 0.09 (0.00 0.13 0.30 0.22 0.11 0.02 0.24 0.09

0.10 0.27 1.00 0.42 0.27 0 .71 0.35 0.89 0.72 0.34 0.51 0.45 0.97 0.27 0.01 0.07 0.35 0.88 0.04 0.48

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

Sing tones & 0.21 0.33 0.16 0.21 0.03 0.19 0.19 0.35 0.29 0.24 0.05 0.09 1.00 0.29 0 .18 0.15 0.23 0.30 (0.0 0.18 0.23

0.08 0.01 0.19 0.08 0.83 0 .12 0.12 0.00 0.02 0.04 0.68 0.45 0.02 0.14 0.22 0.06 0.01 0.74 0.13 0.06

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

Conferencing 0.21 0. 27 0.45 0.30 (0.03 0.36 0.20 0.32 0.30 0.17 0.27 (0.00 0.29 1.00 0 .45 0.09 0.42 0.22 0.42 0.15 0. 23

0.08 0.02 0.00 0.01 0.82 0 .00 0.10 0.01 0.01 0.16 0.02 0.97 0.02 0.00 0.46 0.00 0.06 0.00 0.20 0.06

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

Missed Call 0.42 0.20 0.19 0.06 0.08 0.11 0.09 0.28 0.22 (0.09 0.03 0.13 0.18 0.45 1 .00 (0.0 0.24 0.11 0.19 0.18 0.16

0.00 0.10 0.11 0.63 0.51 0 .36 0.45 0.02 0.07 0.48 0.78 0.27 0.14 0.00 0.71 0.05 0.37 0.11 0.13 0.17

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

Closed User 0.20 ( 0.04 0.18 0.27 0.09 0.19 0.14 0.27 0.29 0.29 0.36 0.30 0.15 0.09 (0.04 1.00 0.25 0.16 0.16 0.25 0. 25

0.11 0.72 0.13 0.02 0.47 0 .11 0.24 0.03 0.01 0.01 0.00 0.01 0.22 0.46 0.71 0.03 0.18 0.18 0.04 0.04

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

Bundled 0.21 0.12 0.26 0.19 0.12 0.37 0.05 0.25 (0.02 0.18 0.18 0.22 0.23 0.42 0 .24 0.25 1.00 0.22 0.36 0.12 0.38

0.08 0.30 0.03 0.12 0.34 0 .00 0.66 0.04 0.86 0.13 0.13 0.07 0.06 0.00 0.05 0.03 0.07 0.00 0.31 0.00

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

her Promotional 0.24 0.25 0.13 0.12 0.14 0.11 0.06 0.22 0.25 0.44 0.16 0.11 0.30 0.22 0 .11 0.16 0.22 1.00 0.14 0.21 0.05

0.05 0.04 0.28 0.33 0.24 0 .36 0.63 0.06 0.03 0.00 0.17 0.35 0.01 0.06 0.37 0.18 0.07 0.25 0.07 0.68

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

Privacy 0.34 0.16 0.43 0.26 0.13 0.30 0.11 0.04 0.06 0.12 0.13 0.02 (0.04 0.42 0 .19 0.16 0.36 0.14 1.00 0.13 0.280.00 0.18 0.00 0.03 0.28 0 .01 0.35 0.72 0.60 0.32 0.28 0.88 0.74 0.00 0.11 0.18 0.00 0.25 0.29 0.02

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

Coverage 0.10 0.09 0.16 0.13 0.17 0.25 0.25 (0.03 0.31 0.19 0.05 0.24 0.18 0.15 0.18 0.25 0.12 0.21 0.13 1.00 0.30

0.42 0.44 0.20 0.29 0.16 0 .04 0.04 0.83 0.01 0.12 0.67 0.04 0.13 0.20 0.13 0.04 0.31 0.07 0.29 0.01

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

Online 0.07 0.06 0.24 0.18 0.07 0.23 0.18 0.11 0.11 0.05 0.00 0.09 0.23 0.23 0 .16 0.25 0.38 0.05 0.28 0.30 1.00

0.58 0.65 0.04 0.14 0.57 0.05 0.13 0.34 0.38 0.71 1.00 0.48 0.06 0.06 0.17 0.04 0.00 0.68 0.02 0.01

70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0 7 0.0 70.0 70.0 70.0 70.0 70.0 70.00

Factor 7: Add-on Feature

One type of feature is loaded on this factor. Missed Call Information, which accounts for 6.96%

of the variance. This is a new trend in the mobile service market. Service providers are making

huge revenue by providing this additional service, which is very popular in young generation as

well as business and professional class.

CORRELATION

s

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The above chart clearly shows that all the 20 different factors that

we have taken is positively correlated with the overall satisfaction level

of the customers.

So we can say that the Null Hypothesis which we have taken should berejected rather the

Alternative Hypothesis should beaccepted.

From the table we have found out that customer satisfaction

towards cellular

service providers depends mostly on the customer care provided by the

operators. This is because both customer satisfaction levels and customer

care are found to be highly correlated.

REFERENCES

www.googl e.com

www.crisil.c o m

www.auspi.in

www.coai.org

Rajendra S Sisodia and Jagdesh Seth (2004)4 As of operationalising customer centric

marketing.

Fulbagh Singh and Reema Sharma( Sep 2008) Cellular services And Customer Buying

Behavior in Amritsar City.
http://www.google.com/http://www.crisil.com/http://www.auspi.in/http://www.coai.org/http://www.crisil.com/http://www.auspi.in/http://www.coai.org/http://www.google.com/


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QUESTIONNAIRE

Custom e r Satisfaction & Pref e ren c e towards Mobile Service P roviders

Name of the Respondent: Gender: Age:

Annual Income : < 1 Lakh < 3 Lakh More than 3 Lakh

Q1.) How many mobile connections do you have?

One Two Three More than Three

Q2.) Which mobile service do you use?

Airtel Idea BSNL Reliance Vodafone

Q3.) Is the connection

Postpaid Pre-paid Both

Q4.) Which is the best quality service Provider you know?

Airtel Idea BSNL Reliance Vodafone

RATINGS: If you feel the factor is Not at all essential mark 1, and if you feel the factor isAbsolutely essential mark 7. If your feelings are less strong mark one of the numbers in the middle.

There isno right or wrong answer-all we are interested in is the number that truly reflects your feelings

regarding the weight-age given to the factor.

Q4.) How satisfied are you with your service provider

RATING 1 2 3 4 5 6 7

Satisfaction Level

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Q5.) Rate your operator on following features.

RATING 1 2 3 4 5 6 7

Tariff Plan

Customer care

GPRS/Internet


Dealer Support

Easy Recharge/Bill Payment

Grievance Handling

Roaming Facility

ISD

Grace Period

MMS



Missed Call Intimation (when mobile is switchedoff)

Closed User Group

Bundled Packages *

Other Promotional Schemes**

Privacy Agreement+

Coverage

Online Payment*Connection with a handset/1000 calls free etc.

**SMS /STD/LOCAL Pack

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+No promotional SMS/Calls coming from your service provider

Q6) How long have you been using the connection?

< 3 months < 6 months 1 year > 1 year

Q7) Are you attracted by features of other cellular service providers?

Yes No

Q8) Does your service connection has any tie ups with banks for easy monthly payments?

Yes No

Q9) Which Technology provides better connectivity and voice clarity?

GSM CDMA

Q10) Are you willing to continue with the existing cellular service provider?

Yes No Not Sure

Q11) When 3G services are launched would you switch over to a different cellular service

provider?

Yes No Not Sure

Q12) Would you recommend any of your colleagues or friends to use the current cellular service

provider that you are using?

Yes No Not Sure

Q13) Will you change your cellular service provider in-case of suggestions from your colleagues

or friends?

Yes No Not Sure

Q14) How many other members in your family use the connection provided by the cellular

provider as you are using?

Documents

Brm Project (2)