Professional Documents
Culture Documents
ACKNOWLEDGEMENT
We would like to thank Mr. Akhil Mathur, our project mentor for giving us
invaluable guidelines and moral support. He, being very enthusiastic and genial, gave
us orientation and motivation to gain more hands-on experience and hence get an
edge over.
We would also like to thank all our colleagues in Tata Teleservices (M) Ltd. who
provided us their priceless time and companionship during the entire training period.
We are most thankful to our institute, International Business School for providing us
this opportunity and platform to explore our horizons in the practical field and gain
professionalism and etiquettes along with technical abilities in the corporate culture.
Rameez Lakdawala
Enrollment No: EIILMU/08/F0401
INDEX
1
1. Introduction of TATA TELESERVICE (M)
LTD.
2. Company Profile.
4. Research methodology.
Tata Indicom
A
PROJECT REPORT
2
On
COMPARITIVE STUDY BASED ON CUSTOMER
SERVICE FOR THE CELLULAR COMPANY IN
MUMBAI
At
TATA INDICOM. TURBHE, NAVI MUMBAI
FOR THE PARTIAL FULFILLMENT OF
THE REQUIREMENT
OF
MASTER OF BUSINESS ADMINISTRATION
(INDUSTRY INTEGRATED)
To
INTERNATIONAL BUSINESS SCHOOL (IBS)
Affiliated To
EIILM UNIVERSITY, JORETHANG SIKKIM
BY
RAMEEZ LAKDAWALA
Enrollment No.EIILM/08/F0401
3
I hereby declare that the documented Project Report
titled “COMPARITIVE STUDY BASED ON
CUSTOMER SERVICE FOR THE CELLULAR
COMPANY IN MUMBAI”
is an authentic work done by me. Under The
Guidance of
Mr. Akhil Mathur
Submitted in Partial Fulfillment of the requirement
for the
Degree of MASTER OF BUSINESS
ADMINISTRATION
(INDUSTRY INTEGRATED)
TO
EIILM UNIVERSITY, JORETHANG SIKKIM
And has not been submitted else for the award of any
other Degree/ Diploma/ Examination.
CERTIFICATE
4
Submitted By
RAMEEZ LAKDAWALA
5
TO WHOM SO EVER IT MAY CONCERN
Authorized Signatory
6
CHAPTER I
1.1 INTRODUCTION
Communication has been one of the most important aspects of the growth of human
society and culture. Telecommunications, the transmission of signals over a distance
for a purpose of communication, is also very important. It provides business, money
and market stability in the world. The telecom sector is one of the leading contributors
to India's flourishing economy. Telecommunication Sector Opportunities in India
assures a transparent, safe, and secured ambiance for the telecom market. It includes
7
introduction of Internet telephony services, privatization of VSNL, and introduction
of a number of international long distance services sector. The opportunities in the
Indian telecom sector is increasing at a massive pace with the introduction of newer
and innovative schemes in various sectors and at present the telecom sector in India is
claimed to be one of the major contributors in India's flourishing economy.
The objectives of this study are to find the customer’s attitudes towards the TATA
Indicom services and to know the reasons for cancellation of the services. This study
helps to find out the factors affecting purchasing behavior of telecom products and to
know customer’s opinion to the services offered by the TATA Indicom.
Primary objective:
To study the customer evaluation of TATA Indicom services at Maharashtra market.
Secondary objectives:
8
To find out the telecommunication users in the Mumbai market.
To know the age and gender wise classification for usage of
telecommunication facility.
To find out which all services have been tried by the respondents so far
To know the customer’s opinion about the competitors of TATA Indicom
To know the factors affecting the purchasing behavior of telecommunication
customers.
To find out the attributes that affects the buying behavior of the TATA
Indicom service
To find the customer’s attitude towards TATA Indicom services
To find out the customer’s opinion about the hand set which provide by TATA
Indicom.
To know the satisfaction level of recharge vouchers offered by the company.
To find the reasons for cancellation of TATA Indicom connection.
9
Consumer feedback is providing the market reflections to the marketer. This enables
them to gain awareness about their market performance and customer preference. The
conducted study examined the customer satisfaction status on various service
offerings by TATA Indicom and the major focus has given to draw the reasons behind
cancellation of services. The results related to the said area are an eye opener to the
marketer for identifying his gaps and fix it at the earliest.
The ruling factors of today’s market are having a common axis named ‘consumer’,
who is deciding the destiny of any firm in the market. Hence the study on related area
is having significance to the selected telecom operator and since it is common to other
operators in the same and related field, the problems that had drawn through the
survey may be a reference for other marketers also. The researcher had gained
familiarity and practical exposure to the real market world through the conducted
study. This can also be a secondary source for other people who plan or are
conducting studies in the similar area.
10
CHAPTER II
Profiles
Introduction
The Indian Telecommunications network with 110.01 million 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
11
opportunities for U.S. companies in the stagnant global scenario. The total subscriber
base, which has grown by 40% in 2009, is expected to reach 350 million in 2010.
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 FY2007-
2008. 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 is 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.
12
1883 Merger with the postal system
1932 Merger of ETC and IRT into the Indian Radio and Cable Communication
Company (IRCC)
1999 Cellular Services are launched in India. New National Telecom Policy is
Adopted.
A large population, low telephony penetration levels, and a rise in consumers' income
and spending owing to strong economic growth have helped make India the fastest-
growing telecom market in the world. The first and largest operator is the state-owned
incumbent BSNL, which is also the 7th largest telecom company in the world in terms
of its number of subscribers. BSNL was created by corporatization of the erstwhile
DTS (Department of Telecommunication Services), a government unit responsible for
provision of telephony services. Subsequently, after the telecommunication policies
13
were revised to allow private operators, companies such as Bharti Telecom, TATA
Indicom, Vodafone, MTNL, Idea, Vodafone and BPL have entered the space. major
operators in India. However, rural India still lacks strong infrastructure.
In 2009, an article by Business week magazine reported that India's mobile phone
market is the fastest growing in the world, with companies adding some 6 million new
customers a month.
The total number of telephones in the country crossed the 300 million mark on June
18 2008 the overall tele-density has increased to 36.98% in March 2009 in the
wireless segment; 15.87 million subscribers have been added in March 2009. The
total wireless subscribers (GSM, CDMA & WLL (F)) base is more than 391.76
million now. The wireline segment subscriber base stood at 38.22 million with a
decline of 0.13 million in October 2009.
Both fixed line and mobile segments serve the basic needs of local calls, long distance
calls and the international calls, with the provision of broadband services in the fixed
line segment and GPRS in the mobile arena. Traditional telephones have been
replaced by the codeless and the wireless instruments. Mobile phone providers have
also come up with GPRS-enabled multimedia messaging, Internet surfing, and
mobile-commerce. The much-awaited 3G mobile technology is soon going to enter
the Indian telecom market. The GSM, CDMA, WLL service providers are all
upgrading them to provide 3G mobile services.
Along with improvement in telecom services, there is also an improvement in
manufacturing. In the beginning, there were only the Siemens handsets in India but
now a whole series of new handsets, such as Nokia's latest N-series, Sony Ericsson's
W-series, Motorola's PDA phones, etc. have come up. Touch screen and advanced
technological handsets are gaining popularity. Radio services have also been
incorporated in the mobile handsets, along with other applications like high storage
memory, multimedia applications, multimedia games, MP3 Players, video generators,
Camera's, etc. The value added services provided by the mobile service operators
contribute more than 10% of the total revenue.
14
Global telecom sector
Earnings visibility
Merger synergies
Given the substantial amount of excess capital available in the sector and in private
equity we expect to see additional merger and acquisition activity, albeit at a slower
pace than recently witnessed. Global telecom M&A deals over the past two years
have reflected market expansion but have also had a positive effect on the buyers’
balance sheets. Partnering companies have begun realizing their synergies through
cost reductions and economies of scale. In the US, the largest three companies now
account for over 70% of the sector market cap; this compares to 34% in 1990. Trends
in bundled services are also paving the way for additional M&A activity. Sector
consolidation will further increase the importance of stock selection.
Growth
While cost-cutting has been a major source of earnings growth, we have seen top-line
pressures decreasing which will help revenues become a larger driver of earnings
growth again. We see growth within the sector coming from a number of areas
including: broadband, 3G (third generation) technology, expansion in emerging
markets. Broadband penetration has been accelerating as internet customers are
seeking faster downloads for audio and video files. 3G services, which facilitate the
simultaneous transfer of both voice and non-voice (i.e. video, downloads, SMS, etc.)
data are providing mobile users with a much more robust communication platform
and should finally begin to realize their growth potential in 2007. Emerging market
15
companies benefit from low penetration rates and also tend to have lower leverage,
higher margins and higher growth than most developed markets telecom companies.
Global opportunities
Our strategy is to create a more focused portfolio of diversified high conviction ideas.
In the current environment we continue to be sensitive to relative valuations and
positive earnings momentum. Our portfolio is largely levered to growth. We have
positioned ourselves in companies that will provide synergies as well as margin
expansion through wireless exposure. We recognize the sensitivity of the regulatory
environment in some markets and have minimized our exposure to those markets. We
also continue to overweight our exposure to niche players within developed markets
as well as to emerging markets which have low penetration rates and more growth
opportunities.
16
2.2 COMPANY PROFILE
TATA GROUP
TATA is a rapidly growing business group based in India with significant
international operations. Revenues in 2008-09 are estimated at $62.5 billion (around
Rs251, 543 crores) of which 61 per cent is from business outside India. The Group
employs around 350,000 people worldwide. The TATA name has been respected in
India for 140 years for its adherence to strong values and business ethics.
The business operations of the TATA Group currently encompass seven business
sectors: communications and information technology, engineering, materials,
17
services, energy, consumer products and chemicals. The Group’s 27 publicly listed
enterprises have a combined market capitalisation of some $60 billion, among the
highest among Indian business houses, and a shareholder base of 3.2 million. The
major companies in the Group include TATA Steel, TATA Motors, TATA
Consultancy Services (TCS), TATA Power, TATA Chemicals, TATA Tea, Indian
Hotels and TATA Communications.
The Group’s major companies are beginning to be counted globally. TATA Steel
became the sixth largest steel maker in the world after it acquired Corus. TATA
Motors is among the top five commercial vehicle manufacturers in the world and has
recently acquired Jaguar and Land Rover. TCS is a leading global software company,
with delivery centres in the US, UK, Hungary, Brazil, Uruguay and China, besides
India. TATA Tea is the second largest branded tea company in the world, through its
UK-based subsidiary Tetley. TATA Chemicals is the world’s second largest
manufacturer of soda ash. TATA Communications is one of the world’s largest
wholesale voice carriers.
In tandem with the increasing international footprint of its companies, the Group is
also gaining international recognition. Brand Finance, a UK-based consultancy firm,
recently valued the TATA brand at $11.4 billion and ranked it 57th amongst the Top
100 brands in 11 the world. Business week ranked the Group sixth amongst the
.World’s Most Innovative Companies. And the Reputation Institute, USA, recently
rated it as the .World’s Sixth Most Reputed Firm.
Founded by Jamsetji TATA in 1868, the TATA Group’s early years were inspired by
the spirit of nationalism. The Group pioneered several industries of national
importance in India: steel, power, hospitality and airlines. In more recent times, the
TATA Group’s pioneering spirit has been showcased by companies like TATA
Consultancy Services, India’s first software company, which pioneered the
international delivery model, and TATA Motors, which made India’s first
indigenously developed car, the India, in 1998 and recently unveiled the world’s
lowest-cost car, the TATA Nano, for commercial launch by end of 2008.
18
The TATA Group has always believed in returning wealth to the society it serves.
Two thirds of the equity of TATA Sons, the TATA Group’s promoter company, is
held by philanthropic trusts which have created national institutions in science and
technology, medical research, social studies and the performing arts. The trusts also
provide aid and assistance to NGOs in the areas of education, healthcare and
livelihoods. TATA companies also extend social welfare activities to communities
around their industrial units. The combined development-related expenditure of the
Trusts and the companies amounts to around 4 per cent of the Group’s net profits.
Going forward, the Group is focusing on new technologies and innovation to drive its
business in India and internationally. The Nano car is one example, as is the Eka
supercomputer (developed by another TATA company), which in 2008 is ranked the
world’s fourth fastest. The Group aims to build a series of world class, world scale
businesses in select sectors. Anchored in India and wedded to its traditional values
and strong ethics, the Group is building a multinational business which will achieve
growth through excellence and innovation, while balancing the interests of its
shareholders, its employees and wider society.
20
• Subscriptions: Post Paid, Pre Paid , internet facility
TATA Teleservices is part of the INR Rs. 2,51,543 Crore (US$ 62.5 billion) TATA
Group, that has over 80 companies, over 3,30,000 employees and more than 3.2
million shareholders. With a committed investment of INR 36,000 Crore (US$ 7.5
billion) in Telecom (FY 2008), the Group has a formidable presence across the
telecom value chain.
Starting with the major acquisition of Hughes Tele.com (India) Limited [now
renamed TATA Teleservices (Maharashtra) Limited] in December 2002 the company
swung into an expansion mode. With the total Investment of Rs 19,924 Crore, TATA
Teleservices has created a Pan India presence spread across 19 circles that include
Andhra Pradesh, Gujarat, Karnataka, Delhi, Maharashtra, Mumbai, Tamil Nadu,
Orissa, Bihar, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh (E),
Uttar Pradesh (W), Kerala, Kolkata, Madhya Pradesh and RoWB.
21
Some of the other products launched by the company include prepaid wireless
desktop phones, public phone booths, new mobile handsets and new voice & data
services such as BREW games, Voice Portal, picture messaging, polyphonic ring
tones, interactive applications like news, cricket, astrology, etc.
TATA Indicom redefined the existing prepaid mobile market in India, by unveiling
their offering. TATA Indicom .Non Stop Mobile. Which allows customers to receive
free incoming calls? TATA Teleservices today has India’s largest branded telecom
retail chain and is the first service provider in the country to offer an online channel
Http://www.ichoose.in to offer post-paid mobile connections in the country.
TATA Teleservices has a strong workforce of 6000. In addition, TTSL has created
more than 20,000 jobs, which will include 10,000 indirect jobs through outsourcing of
its manpower needs.
Today, TATA Teleservices Limited along with TATA Teleservices (Maharashtra)
Limited serves over 37 million customers in more than 6500 towns. With an
ambitious rollout plan both within existing circles and across new circles, TATA
Teleservices offers world-class technology and user-friendly services in 19 circles.
TATA Indicom has three services Dial up internet, mobile connection, landline
connection.
Products / Services
22
Internet Mobile service
Landline
service
Mobile internet: - TATA Indicom offers world-class internet service through the
CDMA network... Just connect TATA Indicom mobile phone, using a data cable to
PC or Laptop & get started. TATA Indicom Internet through mobile service offers
world-class standards for wireless Internet access. The benefits are:
23
Wireless internet it is used with a USB modem, so we can use where ever we go. It
provides high speed connection and free downloading.
Prepaid mobile: In Prepaid service we make an advance payment for the usage i.e. to
make calls and use data services. There are no deposits to be made for STD/ISD.
These features are pre-activated. Also, need not wait for a bill to be generated to know
the usage & then pay accordingly.
Features
• Free SMS
• Roaming in over 2400 cities
• STD & ISD Facility
Postpaid mobile: In Postpaid service, the company itself generates the monthly bill to
the customers. TATA Indicom postpaid mobile phone STD call charges are amongst
the lowest in India for distances over 500 km with absolutely no additional-airtime
charges Most importantly, TATA Indicom postpaid mobile phone offers superior
voice clarity, congestion-free networks, high speed data access, and coverage in over
1000 cities.
Mobile handset: TATA Indicom has the widest range of CDMA Handsets to choose
from a range of the top CDMA mobile handsets from Nokia, Samsung, Motorola,
Huawei and Haier with low price.
Samsung
24
Samsung Super Hero mobile phones
Mpower 309 mobile phones
Mpower 569 mobile phones
Huawei
Haier
Haier CG100
Haier C2030 mobile phones
Haier C200 mobile phones
Indicom
BlackBerry
Wireless phones: TATA introduced Walky Talky, are highly economical and easy to
use.
25
• Store family and friends numbers in the in-built phone book
• Talk more with 2 hours talk time & 24 hours standby time
• Speaker Phone
26
• Roam at home
• Retain your number even when you change home or office
• Get a quick connection
• Save using Group Call across wireline, mobile and wireless phones
• Enjoy voice based Infotainment services*
• Avoid suffering dead phones or irritating linesmen
• Book a connection from the comfort of your home
Security Features
Landline phones: TATA Indicom offers instant phone connections. TATA Indicom
Landline Phone services based on the state of the art Optical Fiber Cable-based
backbone.
27
TATA Indicom has more than 10000 retail outlets in a district. TATA have their own
retail business unit located at all cities. These are: -
HNI
BRBU
EBS
CMBU
HNI network is used for selling only postpaid products of TATA Indicom like data
cards, Walky talky, mobile phones. It provides after sales service also.
The Enterprise Business Service function drives business growth & customer
centricity by providing telecom related solutions to Corporate Entities. The EBS
function also undertakes customer relationship management and retention along with
revenue enhancement and channel management.
The Branded Retail Business Unit looks after the retail chain of the TATA Indicom
Exclusive stores. Branded retail has a national presence with over 3100 outlets
comprising of 600 TTSL (Company) owned stores and more than 2500 stores in the
Franchisee format Branded Retail outlets have become the touch points for its
customers in more than top 1000 towns in India.
The Consumer Market Business Unit (CMBU) deals with the large and dynamic pre-
paid segment of the telecom sector. CMBU has always offered to its customers with
innovative offers like Non Stop Mobile (Lifetime Validity) attractive bundled
packages (handsets + connections), cheapest tariff plans, etc.
28
TATA Indicom has many promotional programs like
Television advertisement
Calls free with special recharge offer
Free downloading for internet facility
Handset Upgrade program for all the individual post paid customers.
Seasonal discount with purchase of handset etc…
TATA Indicom products have different pricing strategies. There are two types of
pricing strategies. They are market skimming and market penetration. Skimming
means fixing at high price and selling to those customers who are fewer prices
sensitive. Penetration means fixing at low price initially. TATA Indicom follows their
product by fixing the price at high.ie; market skimming. The price include the hand
set and connection charge
29
CHAPTER III
30
3.1 LITERATURE REVIEW
1) Brand selection
The research study titled “factors affecting the brand decision in the mobile phone
industry” in Asia by Liu 2002.This study found that the choice of a cellular phone is
characterized by two attitudes to brands: attitude towards the mobile phone brand on
one hand and attitude towards the network on the other. While price and regularity of
service were found to dominate choice between network providers, choices between
mobile phone brands were affected by new technology features such as memory
capacity and SMS – options, more than size. The brand will actually be not towards
smaller phones but towards phones with better capability and larger screen.
\
2) Consumer satisfaction
3) Consumer behavior
The titled named “consumer buying behavior” by Martin Tina; Sam Manaberi [2005]
discussed the industrial purchasing stands for more than half of the whole economic
activity in industrialized countries. Therefore it is important to understand how
industries perform buying activities. The telecommunication industry is a fast
growing industry and therefore interesting to investigate. The purpose of this study
was to investigate the characteristics of industrial buying behavior in the
telecommunication industry. The purpose has been further developed in forms of
31
research questions dealing with the buying process, buying center and choice criteria.
A case study was made with a customer, to the telecom supplier Ericsson, from the
company HI3G Access, also known as 3. A highly topical company in the third
generation telecom networks with Ericsson as one of their primary suppliers. The
conducted telephone interview indicates a swift buying process, influenced by word
of mouth. Additional findings involve a small buying center, which is mainly
controlled by the technical and procurement staff and the importance of price as
selection criteria as the product is becoming a commodity.
4) Consumer behavior
The article named “consumer buying behavior in mobile phone market in Finland” by
EMAC conference, Track: New Technologies and E – Marketing. The survey
conducted with 397 consumers and looked at their motives to purchase new mobile
phones on one hand and factors affecting operator choice on the other. The results
indicate that while price and properties were the most influential factors affecting the
purchase of a new mobile phone, price, audibility and friend’s operator were regarded
as the most important in the choice of the mobile phone operator. This paper
concludes with a discussion of contributions and purposes ideas for future studies in
this under researched area.
The project study titled “customer buying behavior of mobile phone brands” by
Riquelme (2001. She conducted an experiment with 94 consumers to identify the
amount of self – knowledge consumers have when choosing between mobile phone
brands. The study was build upon six key attributes like telephone features,
connection fee, access cost, mobile to mobile phone rates call rates and free calls
related to mobile phone purchasing respondents had to importance rate. The research
shows that consumers with prior experience about a product can predict their choices
relatively well but customers tended to overestimate the importance of features, call
rates, and free call and underestimates the importance of a monthly access fee, mobile
to mobile phones rates and the connection fee.
32
6) Consumer perception
The article titled “consumer perception and its choice mobile telecom service
provider in Malaysia,Journal of International Business and Economics, May,
2007 by Ahasanul Haque, Ali Khatibi, Abdur Raquib, Shameem Al Mahmud.
The study aims to find out what are critical factors those are playing an important
role to select the telecommunication service provider. Result provides a
comprehensive analysis of the important factors for playing an important role for
the customer to select the telecommunication service provider. The analysis
confirms the significant positive relationship of price, service quality, product
quality and availability, and promotional offer for consumer perception. These
factors are expected to have a great role during the time to choose
telecommunication service provider. In conclusion, practitioners can be deriving
a better understanding of the activities that are being played a vital role for the
consumer perception.
33
3.2 THEORETICAL FRAMEWORK
Consumer
An individual who buys products or services for personal use and not for manufacture
or resale. A consumer is someone who can make the decision whether or not to
purchase an item at the store, and someone who can be influenced by marketing and
advertisements
Customer
A person, company, or other entity which buys goods and services produced by
another person, company, or other entity.
Customer service
According to Turban et al “customer service is a series of activities designed to
enhance the level of customer satisfaction that is, the feeling that product or service
has met the customer expectation.
The needs, wants and preconceived ideas of a customer about a product or service.
Customer expectation will be influenced by a customer’s perception of the product or
service and can be created by previous experience, advertising, hearsay, awareness of
competitors and brand image. The level of customer service is also a factor and a
customer might expect to encounter efficiency, helpfulness, reliability, confidence in
the staff and a personal interest in his / her patronage.
34
• Identify specific problems in your customer service program and apply
treatment.
Customer satisfaction
Customer satisfaction is a measure of how products and services supplied by the
company meet or surpass customer expectation. Satisfaction is a person’s feelings of
pleasure or disappointment resulting from comparing a product’s perceived
performance in relation to his or her expectation.
• Encourage face to face dealing
• Attention to detail
• Anticipate your client’s needs and go out of your way to help them out
35
Typically these factors are directly connected to customers' explicit needs and
desires and a company should try to be competitive here.
4. Indifferent attributes. The customer does not care about this feature.
5. Questionable attributes. It is unclear whether this attribute is expected by the
customer.
6. Reverse attributes. The reverse of this product feature was expected by the
customer.
• As senior managers, only know about the tip of the iceberg, a small fraction of
all the problems your customers encounter.
• Service can be a major marketing tool
• Customer problems can cost not only an immediate lost sale, but also future
purchases by that customer and by other customers as a result of negative word-of-
mouth behavior.
• We can and must quantify the expected payback from service and/or quality
improvements.
• The market transaction (sale) often is not the key point of customer pain and
lost revenue.
DOING THE JOB RIGHT THE FIRST TIME + EFFECTIVE CUSTOMER SERVICE
= MAXIMUM CUSTOMER SATISFACTION/LOYALTY
36
In this pyramid shows customers will be the top most priority and next in importance
are front line people who meet, serve and satisfy customers; under them are the
middle managers, whose job is to support the front – line people so they can serve
customers well and at the base is top management, whose job is to hire and support
good middle managers.
Customer behavior
Customer behavior is to know about the customer’s way to obtain, use and dispose
products. It's important for marketing to know the customer behavior by using
different strategies. There are so many different ways to influence customers like new
products, promotions, advertisement, good quality and price etc.
Customer behavior analysis is based on consumer buying behavior, with the customer
playing the three distinct roles of user, payer and buyer. Relationship marketing is an
influential asset for customer behavior analysis as it has a keen interest in the re-
discovery of the true meaning of marketing through the re-affirmation of the
importance of the customer or buyer. Customer behavior analysis aims to ultimately
37
improve business performance through an understanding of past and present
customers so as to determine and identify future customers and their behavior.
Customer-Focused Marketing
All marketing is done with the customer in mind. Marketing can in fact be referred to
as an on-going conversation occurring between business and customer. It is therefore
necessary for businesses to gain in-depth knowledge of their relative customers so that
the best marketing strategies can be employed in order to attract these potential
buyers. This can effectively be done by performing activities such as customer
behaviors analysis to ensure customer retention. Listed below are a number of tips to
aid businesses striving towards customer retention through marketing efforts:
1. Marketing as a Conversation:
Direct interaction with customers is necessary to essentially find out what it is that
they are wanting. This marketing conversation involves a process running from action
- reaction - feedback - repeat. Businesses need to be willing to take the time to listen
to their customers as this can ensure a business of putting something up for offer
which is of great worth amongst their targeted consumers, and is relative to their
particular needs and desires. It is required for businesses to constantly perform
marketing promotion so that these customers will come back for more. Giving
satisfaction to first-time buyers can prove effective for a business in the long-run for
the reason that by giving customers what they desire the first time round, customer
retention is encouraged through this form of customer loyalty.
2. Active Customers:
Making customers feel as though they are in control is an effective strategy in
customer-focused marketing. This is done by transforming consumers into
active customers who are given the ability to make choices for themselves by
actively engaging in promotions and, hereby, deciding on the best possible
products and services their money can buy. Customer retention is encouraged
through this interaction with customers which aids in customer loyalty.
38
Businesses need to make each and every one of their customers feel good
about them by giving them something to do. Therefore, retaining customer’s
means keeping them happy by keeping them active.
39
Customer buying behavior
Process by which individual search for select, purchase, use and dispose of goods and
services, in satisfaction of their needs and wants.
Types
Minor new purchase – these purchases represent something new to a
consumer but in the customer’s mind is not a very important purchase in terms of
need, money or other reason.
Minor re- purchase – these are the most routine of all purchase and often the
consumer returns to purchase the same product without giving much thought to other
product options.
Major new purchase – these purchases are the most difficult of all purchase
because the product being purchased is important to the consumer but the consumer
has little or no previous experience making new decisions. The consumer’s lack of
confidence in making this type of decision often requires the consumer to engage in
an extensive decision making process
40
Major repurchase – the purchase decision are also important to the consumer
feels confident in making these decisions since they have previous experience
purchasing the product
41
4. Purchase decision--Choose buying alternative, includes product, package,
store, method of purchase etc.
5. Purchase--May differ from decision, time lapse between 4 & 5, product
availability.
6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction.
Cognitive Dissonance, have you made the right decision. This can be reduced
by warranties, after sales communication etc.
Customer loyalty
The term customer loyalty is used to describe the behavior of repeat customers, as
well as those that offer good ratings, reviews, or testimonials. Some customers do a
particular company a great service by offering favorable word of mouth publicity
regarding a product, telling friends and family, thus adding them to the number of
loyal customers.
2. Customer Service: - Go the extra distance and meet customer needs. Train the
staff to do the same. Customers remember being treated well.
3. Employee Loyalty: - Loyalty works from the top down. If managers are loyal
to the employees, they will feel positively about their jobs and pass that
loyalty along to customers.
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5. Customer Incentives: - Give customers a reason to return to business.
6. Product Awareness: - Know what y steady patrons purchase and keep those
items in stock.
10. Know Their Names: - Remember the theme song to the television show
Cheers? Get to know the names of regular customers or at least recognize their
faces.
This model is developed by Schlesinger and Heskett (1991). In this model explains
that effort spent in selecting and training employees and creating a corporate culture
in which they are empowered can lead to increased employee satisfaction and
employee competence. This will likely result in superior service delivery and
44
customer satisfaction. This in turn will create customer loyalty, improved sales levels
and higher profit margins.
45
Personalise all communication.
Personalise the email addresses of customer-facing employees
If use computerized telephone systems, give customers the option of talking to
an operator at any time.
Customer retention
Customer retention rate: -- The customer retention rate refers to the number of
customers lost over a period of time. It is normally calculated by the percentage of
lost customers versus existing customers over a quarterly or annual period, without
tallying new customer acquisitions
Customer lifetime value enable an organization to calculate the net present value of
the profit an organization will realize on a customer over a given period of time.
Retention Rate is the percentage of the total number of customers retained in context
to the customers that approached for cancellation.
Customer perception
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• Selective Retention-Remember inputs that support beliefs, forgets those that
don't.
Factors
Factors in the
Factors in the Factors in the
target
perceiver situation
Attitudes Novelty
Motives Motions
Time
Interest Sounds
Work setting
Size
Social setting
Experience
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CHAPTER IV
Research methodology
RESEARCH METHODOLOGY
Descriptive research :-
The research study is conducted through descriptive research. Descriptive research
design is a scientific method which involves observing and describing the behavior of
a subject without influencing it in any way or to identify the cause of something that
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is happening. For instance, this research could be used in order to find out what age
group is buying a particular Brand of the product, where a company’s market share
differs between geographical region or to discover how many competitors a company
has in their conducting the research must comply with strict research requirement in
order to obtain the most accurate figures / results possible.
Sampling design
Convenience sampling is used for this study. Convenience sampling is used in
exploratory research where the researcher is interested in getting an inexpensive
approximation of the truth. As the name implies, the sample is selected because they
are convenient. This non probability method is often used during preliminary research
efforts to get a gross estimate of the results, without incurring the cost or time
required to select a random sample.
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Secondary Data:
They are not originally drawn by the researcher as fresh data. These are collected by
some other person for this purpose and published. These types of data can be
collected through various sources.For this study the secondary data were collected
from magazines ,journals , references and websites and manuals of the TATA
Indicom.
Rank Correlation =
If Rank Correlation is negative we can say that there is no correlation between the
variable, if rank correlation is positive we can say that there is a relation between the
variable, if the Rank correlation is less than.06 we can say that there is a low degree
of relation between the variable, if rank correlation greater than .06 we can say that
there is high degree of relation between the variables and if Rank Correlation is very
nearer to 1 such as .99 we can say that there is very high degree of relation between
the variable.
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• Lack of Universal application: - since the study had been conducted only in a
selected region and only in telecom consumers, the applicability of the study in
different region and consumer products are restricted.
• Probability based study: - Study is being done with the aid of Convenience
sampling. Hence the entire customers had not been considered for their feedback and
the inference drawn on the basis of selected sampling.
• Business of the respondents: - Walk in respondents were busy with their
schedule and hesitate to cooperate with the researcher and because of their rushing to
home or office, they had completed the questionnaire quickly which may yield some
inherent errors.
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CHAPTER V
Table 5.1
Personal details
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group unmarried
Below 9 0 9 0 18 19.8
25
25 – 35 8 10 8 12 48 52.8
Above 2 23 4 25 54 59.4
35
Total 19 33 21 37 110
Interpretation
Majority of the respondents who participated in the survey are unmarried and above
35 age category. The conducted study had ensured equal participation of males and
females.
Chart 5.1
Gender
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Chart 5.1.
Age group
54
Chart 5.1
Marital status
55
Table 5.2
Employment status
56
Interpretation
Majority of the respondents are self employed and above 35 age category. An equal
proportion of male female respondents of different age groups had participated in the
survey.
Chart 5.2
Employment status
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Table 5.3
58
110 100%
Yes
No 0 0
Interpretation
From the above data exhibits that the entire participants drawn randomly for survey is
having telecommunication facility and hence the study is giving evidence for 100%
telecommunication facility subscription by the Kottayam residential area.
Chart 5.3
59
Table 5.4
Services No : of Percentage
60
respondents
Airtel 31 34%
Aircel 10 11%
TATA
indicom 110 100%
Bsnl 55 60.5%
Idea 21 23%
Vodafone 18 19.8%
Reliance 11 12.1%
Interpretation
Since the survey had been conducted at the TATA Indicom outlet, all
the respondents are TATA customers. Among the selected 110
customers, majority ie; 55(60.5%) had tried BSNL service, 31(34%)
had tried Airtel, 21(23%) had tried Idea, 18(19.8%) had tried Vodafone
, 11(12.1%) had tried Reliance and 10 had tried Aircel.
Chart 5.4
61
Table 5.5
62
Factors affecting strongly Agree Neutral disagree strongly
buying behavior of agree disagree
the
telecommunication
Offers 34 39 14 19 4
brand image 12 35 24 22 17
Coverage 109 1
Ads 9 20 25 28 28
advice by friends 11 13 18 42 26
customer service 14 28 28 29 11
Interpretation
The major criteria for deciding the purchase of mobile service for most of the
customers who had surveyed through the questionnaire is maximum network
coverage. 67% of the respondents are looking for offers given by the service provider.
Nearly 38% select the service provider upon the customer service given by them.42%
of the respondents select the service provider upon the company’s brand image. 26%
of them choose their service provider by the advertisement.
Chart 5.5
63
Table 5.6
64
Factors no of Percentage
respondents
offers 32 35.2%
brand image 18 19.8%
Coverage 110 100%
Advertisement 15 16.5%
advice by friends and 19 21%
family
influence of sales 22 24.2%
promotion
customer service 16 17.6%
Interpretation
100% of the respondents are considering coverage as the main factor for buying
TATA Indicom service. 32 (35.2%) of them are considering offers for the selection of
the service provider. 22 (24.2%) of them are interested in sales promotion tools like
lucky draw contest, coupons etc by the company. 19(21%) depends on friend’s
suggestions.18 (19.8%) of them are considering brand image of the company. 17% of
them are choose the service of TATA Indicom by seeing their advertisement
Chart 5.6
65
.
Table 5.7
66
Services No of respondents Percentage
Interpretation
Majority (54%) of the respondents had tried TATA Indicom landline connection
because of the less call rates offered by them. 39.6% of them had tried TATA
Indicom Mobile connection. It includes both prepaid and postpaid services. There are
not much users for internet facility. Only 27.5% of the respondents had tried internet
facility.
Chart 5.7
67
Table 5.8
68
Opinion Highly Satisfied Neutral Dissatisfied Not at all
satisfied satisfied
no of
respondents 17 32 19 23 19
Interpretation
49 (45%) respondents are satisfied with the recharge coupons offered by the TATA
Indicom. (38%) of the respondents are not at all satisfied with the recharge coupons
offered by TATA Indicom. So we can say that most of the customers had preferred
more offers and other value added services like SMS offers, less call rates etc.
Chart 5.8
69
Table 5.9
70
Services highly Satisfied neutral Dissatisfied not at all
satisfied satisfied
after sales 21 24 17 42 6
service
Coverage 22 33 25 24 6
Offers 5 20 17 35 33
staff response 8 23 24 30 25
customer support 18 21 18 22 31
Availability 15 27 28 29 11
Price 11 15 19 39 26
Interpretation
From the study we found that, 48 (44% ) of them are dissatisfied with the after sales
services of the company. 45 (41 %) of the respondents are satisfied with the after sales
services of TATA Indicom. 17 (15 %) of them are neutral in their decision and 55
(50%) are satisfied with the network coverage of the company and 30 (27%) of them
are dissatisfied with the coverage. Majority of them 68(62%) are not at all satisfied
with the offers Only 23 (28%) of them are satisfied with the offers given by the
company. Since the TATA Indicom customers are not getting the information
regarding recharge offers and other value added services, most of them 55(50%) are
not satisfied with the staff response of the company employees.31(28%) are satisfied
with staff response and majority of the respondents. 53(48%) of them are dissatisfied
with the customer support. 40(36%) of them are dissatisfied with the availability of
the TATA Indicom services.65(60%) of them are dissatisfied with the price of the
product. The suggestions given by the respondents for solving their problems are:
provide adequate information about offers and other related services, provide tower to
all centers, give adequate training to the employees and provide recharge vouchers to
all retail stores.
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Chart 5.9
Table 5.10
72
Responses No of respondents Percentage
No 0 0%
Interpretation
Since the survey had been conducted among the customers who are cancelled the
TATA Indicom services, all of the respondents had cancelled the service. Because of
the various problems like hand set complaint, billing problem, less offers etc.
73
Chart 5.10
74
Table 5.11
Cancelled services
Interpretation
The survey found that majority ie; 45 (41%) of the customers had cancelled their
landline connection because of various problems like phone set complaints, excess
bill amount, after sales service. And out of 110 customers 41 (37%) of them had
cancelled or migrate their connection from postpaid to prepaid service. 24 (22 %) of
them had cancelled internet facility because of less coverage, low speed of the server,
high price for downloading. Hence we can say that most of the services provided by
the TATA is having customer complaints, which have to be addressed properly for
customer retainment.
Chart 5.11
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Table 5.12
76
Reasons for canceling
Interpretation
The above table shows that 41 (37% ) of the respondents are having the problem of
not getting the bill on time. This is because of either the address change or technical
problem.37 (34% ) of them are not having enough coverage in their residential
area.16 (15%) of them are not satisfied with customer service. This is because of the
customers are not satisfied with the employees behavior when they approach for
asking any doubts regarding the offers or other complaints.
Chart 5.12
77
Table 5.13
78
Services No of respondents Percentage
BSNL 29 26%
Airtel 30 28%
Vodafone 25 23%
Idea 15 14%
TATA indicom 7 7%
Reliance 4 4%
Interpretation
The above table reveals that 30 (28%) of the respondents prefer Airtel service when
they are going outside kerala because they are attracting to the Airtel offers, coverage
etc. 29(26% ) of them are prefer BSNL service. This is because of the wide coverage,
customer service and offers.25 (23%) of them are prefer Vodafone services.15 (14%)
of them are prefer Idea service. Least preferred services for roaming are TATA
Indicom (7%) and Reliance 4 (4%).
Chart 5.13
79
Table 5.14
80
Complaint to hand No of respondents Percentage
set
Yes 63 57%
No 47 43%
Interpretation
More than half i.e.,57% of the TATA Indicom customers registered hand set
complaint. Because of the battery complaint, key pad complaint, charger complaint.
Only 47 (43% ) of them are not having the problem in hand set.
Chart 5.14
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Table 5.15
82
Cancellation of the 30 31 24 17 8
service
Interpretation
This survey found that more than half of the respondents 61 (55%) reacted in such a
way that they will cancel the services without giving any complaint to the company.
25 (23%) of them disagreed to the decision of cancelling the services.56 (51%) plan
to continue the TATA Indicom’s service after registering their complaints to the
company and 29 (26%) of them are registered that they will cancel the service after
giving the complaint to the company and 67 (61%) of them disagree to that decision.
33 (30% ) of them responded that they will discourage others from buying the TATA
Indicom’s service.
Chart 5.15
83
5.16 STATISTICAL ANALYSIS AND HYPOTHESIS TESTING
HYPOTHESIS
84
H0= There is no significant difference between customers of different age group
regarding their opinion about the satisfaction of cost of recharge coupons.
H1= There is a significant difference between customers of different age group
regarding their opinion about the satisfaction of cost of recharge coupons.
HYPOTHESIS
H0= There is no significant difference between different gender category of
customers regarding cancellation of TATA Indicom connection on dissatisfaction
service.
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H1= There is significant difference between different gender category of customers
regarding cancellation of TATA Indicom connection dissatisfaction service.
T P values
Sig. (2-tailed)
RANK CORRELATION
86
TATA 30 4 48 5
Indicom
BSNL 75 1 68 2
Reliance 28 6 59 4
87
5.16.6 Relationship between Customer support and image of the company.
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CHAPTER VI
Findings And
Recommendations
89
6.1 FINDINGS
1. 100% of the respondents are having telecommunication facility
2. Majority of the customers had tried BSNL 55(60.5%) service and Airtel
31(34%).
3. According to the survey, the main elements of buying behavior of TATA
Indicom telecommunication service are :
100% of the respondents are considering coverage
39(43%) respondents are looking for offers
35 (38.5%) of them looking for the company brand image
28 (31%) looking for customer service of the company
20 (22%) respondents are noticing sales promotion like
advertisement.
4. Majority (54%) of the respondents had tried TATA Indicom landline
connection 39.6% of them had tried Mobile connection, only 27.5% of the
respondents were tried internet facility.
5. 46.2% of the respondents are not at all satisfied with the recharge coupons
offered by TATA Indicom. 49 (53.9%) respondents are satisfied with the
recharge coupons offered by the TATA Indicom.
6. Since the customer service is low,most of them are 48 (52.8% )dissatisfied
with the after sales services of the company.
7. 55 (61%) are satisfied with the network coverage of the company,30 (33%) of
them are dissatisfied with the coverage,
8. 68(74%) are not at all satisfied with the offers.
9. Most of the customers are not getting the vouchers nearby stores
10. 45 or 50% of the customers are cancelled their landline connection ,41
(45.1%) of them are cancelled or migrate their connection from postpaid to
prepaid service, 24 (26.4 %) of them are cancelled internet facility
11. Reasons for cancellation
41 (45.1% ) of the respondents are having the problem of not getting the bill
on time.
37 (40.7% ) of them are not having enough coverage in their residential area.
16 (17.6%) of them are not satisfied with customer service
62(69%) of the respondents are having hand set complaint.
12. Responses towards the company
61 (67.1%) of the respondents are cancelled the services without giving any
complaint to the company.
56 (61.6%) are continue the TATA Indicom’s service after they are
complained to the company
34(35.3%) of them feels like to cancel the service after giving the complaint to
the company
90
33 (36.3% ) of them are discourage others to buy the TATA Indicom’s
service.
6.2 SUGGESTIONS
1. Company can decrease call rates to other subscribers for attracting youngsters
2. Voucher card can provide all the retail shops on time for customer convenience.
4. Sales promotion can be more intense, like television ad showing the price, quality,
and other product related details.
5. Even though the company has some offers or other value added services, it can be
well known by the sales people. So it is better to provide adequate training to the sales
people.
6. Provide the tower to all centers for avoiding the network problem.
8. User manuals and the plan’s pamphlets should be given to the staff for clearing the
doubts of the customers.
9. The cancellation mainly occurs in landline connection. So the company can take care
of the following services
Billing activities
After sales service
On time delivery of the product after complaint has to be recovered.
10. Company can appoint more technicians to all TATA retail True Value hubs to
recover on time land line service compliant.
11. The employees can call back to customers atleast once in a month for getting
the feedback of the services offered.
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12. Customers are demanding for affordable price for product and gifts with
purchasing.
13. Majority of the customers are not satisfied with the recharge coupons offering by
the company. So the company can increase the talk time to all recharge coupons.
14. Customer relationship managers can keep the records of update details regarding
the customer’s address change for sending the postpaid billing charges to avoid
delay of payment.
CONCLUSION
India has a mere 1.2 telephones for every 100 of its people. This is way below
international standards and is not becoming of a country aspiring to be major player in
the global economy of the 21st century. This means that opportunities for investment
in this sector are immense. Basic voice service is the biggest market. Installation of
around 25 million direct lines by the year 2001 will require an investment of US$ 22
billion.
Due to the growing need for mobile phones, it’s no wonder that service providers are
going all out to capture, as much market space as they can. As the number of mobile
phone users are estimated to rise to about 180 million by 2010,it’s not surprising that
most of the leading service providers in India have started branding and marketing
their services more aggressively.
The conducted study try to examine the market mindset towards one of the major
player in the telecom sector. The selected company for the study is TATA indicom
which is having a reputation in the market. This study had examined customer
evaluation about the tele services provided by the company. It also investigates the
major reasons behind cancellation of services by the customers. The major findings
are
The customers are not satisfied with services because of the low quality; high
price, poor after sales services, less network coverage etc.
The main reasons for cancellation of the services were: - coverage problem,
customer service, billing complaint shows the negative impressions to the
company.
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The researcher got an exposure to the real situations of telecom market world and
reactions to the customers and enable to understand the customer reactions while they
are undergoing dissatisfaction of services. To the marketer, the present study is a
market reflection about the services offered. This will give him an insight into the
customer problems, he has to settle at the earliest, which will help him to expand his
market and improve his image.
BIBILIOGRAPHY
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