Académique Documents
Professionnel Documents
Culture Documents
Acknowledgements
I would like to thank my supervisor Prof. Sanjay Bhushan who has given me opportunity to work
under his guidance on this difficult project. I would also like to thanks my other well-wisher like
Teachers, Prof Akshay satsangi for his guidance. Both of them have provided me their support
and vital guidance during the whole work, which enabled me to complete this challenging
project.
I would also like to dedicate this project to my Parents who have guided me in every field of life.
Their support was indeed very important for my studies.
Abstract
2 | Page
The research has been conducted in order to examine the factors influencing brand switching in
telecommunication industry of Agra region of Uttar Pradesh (India). Triangulation methodology
has been adopted for this purpose. Qualitative and quantitative methods have developed a strong
base of research. Literature review has discussed all important factors that can influence brand
switching in telecommunication sector. Primary data for research has been collected through a
questionnaire survey from a sample of 100 mobile subscribers. The results of research have been
presented in systematic manner. The findings have been discussed descriptively. The results of
research suggest that price is the most influential factor on brand switching in
telecommunication sector. Other factors that have been found influential on brand switching
were quality service, brand image, coverage area of service and trust on service provider. It has
been found that switching cost minimizes brand switching activity. Brands with higher switching
cost have low rates of customer switching and vice versa. Results of research are limited to the
telecommunication sector of India only. Future researchers can expand the scope of the
research.
Contents
Acknowledgements.................................................................................................... 2
Chapter One
Introduction................................................................................................................ 7
1.0
Introduction...................................................................................................... 7
1.1
Background....................................................................................................... 7
1.1.1
1.1.2
1.1.3
1.1.4
3 | Page
1.2
Rationale of Study............................................................................................ 9
1.3
1.4
Research Questions........................................................................................ 10
1.5
Chapter Two
Literature Review..................................................................................................... 11
2.0
2.0.1
Switching Cost.......................................................................................... 11
2.0.2
Price......................................................................................................... 12
2.0.3
Service Quality......................................................................................... 13
2.0.4
Trust........................................................................................................ 14
2.0.5
Other Factors......................................................................................... 15
2.1
2.2
2.3
Chapter Three
Research Methodology............................................................................................. 18
3.1
Research Philosophy....................................................................................... 18
3.2
Research Approach......................................................................................... 19
3.4
Research Methods.......................................................................................... 19
3.5
3.5.1
Types of Data........................................................................................... 20
3.5.2
3.5.2.1 Surveys.................................................................................................. 20
3.5.3
3.5.4
3.5.5
Questionnaire Design............................................................................... 21
3.6
3.7
3.8
3.9
Research Ethics.............................................................................................. 23
Chapter Four
Data Presentation.................................................................................................... 24
4.1
General Information........................................................................................ 24
4.2.1
4.2.2
4.2.3
4.2.4
4.2.5
4.3.2
Chapter Five
Data Interpretation and Analysis.............................................................................. 49
5.1
Analysis of Findings........................................................................................ 49
5.1.1
5.1.2
Chapter Six
Conclusion................................................................................................................ 52
6.1
Introduction.................................................................................................... 52
6.2
Conclusion...................................................................................................... 52
6.3
Recommendations.......................................................................................... 54
References............................................................................................................... 55
Questionnaire
..................57
Chapter One
Introduction
1.0 Introduction
Customers have very important place for the companies. Market conditions have become very
competitive and companies are trying to capture share of each other. Due to intense competition
5 | Page
in telecommunication industry customers of this industry frequently switch over from one brand
to another. This research is going to investigate brand switching phenomenon in perspective of
telecommunication industry. In this particular chapter background of study has been explained.
1.1 Background
1.1.1 Defining Brand Switching
Customers are very important players of the market. Success of organizations depends on the
satisfaction level of customers. Originations look forward for achieving long term success in the
market. Long-term success can be achieved if companies go side by side with all of their
stakeholders. In all stakeholders, customers have most important place. Customers have
different perceptions, attitudes, and behaviors towards different brands. Customers often switch
over from one brand to the other depending upon various factors. Brand switching occurs when
customers switch their loyalties from one product to the other one. Customers shift from one
product to another product of similar nature is called brand switching behavior of customers.
1.1.2 Types of Brand switching
Brand switching can be of two types i.e. temporary and permanent. If cigarette A is not
available at a shop customer can shift to cigarette B, this is temporary brand switching. It can
be long lasting if customers shift to particular brand permanently. Permanent brand switching is
harder to change. Brand switching is basically a process by which customers choose to switch
from a product or brand of routine use to another product or brand of similar nature.
Brand switching can be aggressive or defensive. Aggressive brand switching is that type of
switching in which customers are induced by advertisement of promotions to buy a brand
different from the brand purchased previously. On the other hand defensive brand switching is a
type of switching in which advertisement of promotions of company induce customers to buy
again previously purchased brand. Defensive brand switching is a strategy of companies in
order to induce loyalty in customers.
1.1.3 Brief View of Factors Inducing Brand Switching
Advertisement plays very important role in brand switching. It basically persuades customers to
switch brands. Companies use different tactics in advertisement in order to attract customers of
6 | Page
competitors. Advertisement induces customers to switch their brands and improve sales of
companies. Other firms in the market also advertise and attract customers. In this way total
effect of advertisement can be offset. It is suggests that advertisement is motivational factor for
brand switching. It also suggests that companies must advertise in order to persuade
competitors customers to switch towards their brands.
A number of factors induce switching of brands in customers. If companies do not meet needs
and wants of customers, customers can switch to competitors brands. Market has become very
competitive and all the companies strive for taking market share. In order to build market share
companies attract customers by providing different incentives like low price, high quality,
discounts or promotions. In todays competitive market success of companies depends on the
repeat purchase intentions of customers. If companies fail to manage switching behavior of
customers . Competitive prices also play their part in inducing brand switching. A number of
costs are also associated with the switching behavior of customers. Companies that have lower
switching cost exhibit higher rate of brand switching. Switching cost is basically the cost
associated with switching from one product to another one.
reach at US $37 billion. It has been forecasted that innovations and technological advancements
will penetrate telecommunication sector in the same period.
7 | Page
Due to intense competition in telecommunication industry customers frequently switch from one
service provider to another. It has become very important for service providers to investigate the
switching behavior of customers. The study is focused on telecommunication industry of India.
Major players of telecommunication industry of India are TATA, RELIANCE, AIRTEL, BSNL
IDEA TELENOR and VODAFONE. Major market share of Indian telecommunication industry
has been captured by these players.
8 | Page
What are the factors that influence customers to switch mobile service providers in
India?
How can mobile service providers stop their customers to switch over the other brands?
Chapter Two
Literature Review
Customer is the most important player of market. All the efforts of companies are directed
towards customers. Customer can either remain loyal with a particular brand or switch to
another one. This particular study is going to evaluate the factors influencing customers to
switch brands. This chapter presents work of previous researchers regarding brand switching.
Factors influencing brand switching have been critically analyzed in the light of previous
researches on brand switching.
9 | Page
Transactional cost
Contractual cost
Learning cost.
Transactional cost is the cost which is required by customers in order to start new relationship
with a new service provider and it also includes the cost required to terminate relationship with
existing service provider.
Learning cost refers to the cost which is required by the customers in order to gain equivalent
familiarity and ease of using the new product or service. Learning cost is non transferable cost
and each time customer switches over a particular product or service, learning cost incurs.
Contractual cost is the cost which is induced by the firms directly for panelizing the customers
for switching brands. These costs may include rewards, discounts, repeat purchase and other
circular programs. These costs incur when customers promise for being loyal or when they show
signs of switching over other brands.
10 | P a g e
Customers can easily switch from one service provider to the other if switching cost is low and
vice versa.
2.0.2 Price
In all markets including telecommunication market price is the main factor that encourages
brand switching. They have presented three variables related to price which can affect switching
behavior of customers.
These three variables are:
1) Pricing structure,
2) Pricing scheme,
3) Additional fee.
In telecommunication industry call charges determine the pricing structure of companies. Price
scheme is basically the availability of a variety of price lists. Additional fee is basically the fee of
additional services such as activation charges, termination charges and charges of value added
services. His findings suggested that reduction in price of mobile services attract customers. In
other words price changes influence brand switching in telecommunication industry.
The
Their findings
suggested that price is the most important factor that persuades customers to change their
commitments to other mobile service providers. Sathish also suggest that call rates are the most
influencing factor for brand switching in telecommunication industry.
Literature review discussed about influence of price on brand switching suggests that price is
major influencer for brand switching. It is not necessary that price always affects brand
switching. Customers with low income are more influenced by changes in price to switch service
providers whereas quality conscious customers are less influenced by changes in price to switch
brands.
Service is intangible in nature and it is practiced by the customers simultaneously at the time of
production and consumption. Contact of customers and service providers delivers service to the
ultimate customers. Five characteristics have been identified by Gronroos which distinguish
services from goods. These characteristics are as follows:
The interaction between customers and service providers provide opportunity to the customers to
assess the service quality. Bitner & Hubbert define service quality as the impression of
customers about the inferiority or superiority of the service providers and their provided
services. Service quality measurement model has been presented by Parasuraman in which they
have identified five dimensions of service quality. These five dimensions are: Tangibles,
reliability, assurance, empathy and responsiveness. These five dimensions can be categorized in
two groups. Tangibles refer to the physical facility, materials of personal communication and
equipment. The other four dimensions refer to the human interaction or involvement during
service delivery. These five dimensions are elaborated as follows:
Tangibility: physical outlook, facilities, equipments and physical appearance of personnel
providing services
Reliability: It refers to the ability of service providers to provide promised services accurately
and consistently
Responsiveness: It refers to the willingness of service providers to assist customers and promote
services
Assurance: It refers to the awareness and politeness of personnel providing services in order to
establish trust
Empathy: It refers to the individual attention of employees on customers.
12 | P a g e
Two important factors that determine the direction of customer behavior are price and quality. It
has been found that there is swapping effect between these two factors. Customers can sacrifice
low prices for high quality. They also found that line clarity, customer services and coverage
area also effect service quality. All these factors influence customer switching decision.
The above literature discussed about service quality has shown the dimensions that measure the
level of service quality. Previous researchers have shown that customer decision is influenced by
service quality. It can be deduced that if customers are provided with high service quality they
can be retained with the company or in other words switching rate of customers can be reduced.
2.0.4 Trust
Trust has been very important topic studied in various disciplines. It has been defined by many
researchers in different perspectives. It is characteristic of human personality and is defined as
the assessment of others about the motives and behaviors. To develop trust among individuals
expectation of trustor and perceptions of trustee are involved. Trust among different individuals
is different depending upon the personality traits and decision making ability of individuals.
Relationship is build whenever there is trust or distrust among individuals. Service providers
must convey a message to the customers that they can be trusted. They must depict that they can
sacrifice for the satisfaction of needs of customers.
In order to build long term relationship among individuals trust has been the most important
factor. Researchers have also suggested that trust is important factor in determining customer
loyalty. In order to build trust one party must assures the other one that it will come true at the
expectations of the other party. It is also suggest that building trust is a process in which one
party must be capable of fulfilling the expectations of other party regarding cost and benefits. It
is an important factor in affecting commitment of customers to the company.
And it also suggest that in order to build customer loyalty, trust among parties has been the key
element. Trust assists customers in making decision about purchase and it also gives customers
a sense of confidence on the service providers. For studying the effect of brand switching I have
studied effect of trust on customer loyalty in perspective of telecommunication industry. They
found four elements of trust i.e. experience, communication, brand loyalty and relation contact
of partners. Trust among service providers and customers act like a relationship preserving
13 | P a g e
force. If customers have trust on service providers, short term alternatives cannot affect the
customer loyalty. It can be said that trust has positive relationship with customer loyalty. It
suggest that trust reduces perceived risk and it also reflects credibility of companies. He suggests
that trust on service providers reduces uncertainty in todays competitive and uncertain
environment. In other words customers switching behavior is affected by the level of trust on
service providers.
Literature review discussed about trust suggests that customers are less likely to switch brands
on which they have trust. If service providers assure their customers about the fulfillment of their
expectations, brand switching can be minimized. On the other hand if service providers fail to
establish trust between customers and themselves, customers are more likely to switch over
competitors brands.
2.0.5 Other Factors
Above mentioned factors are critical to the customer switching behavior. Besides these factors
there are many other factors identified by other researchers that influence customer switching
behavior. Customer switching decision is not a static and fixed decision rather it is a process
which is described in terms of three stages i.e. trigger, process and outcome (Inger and Frimen,
2008). Process refers to the reasons for switching whereas trigger refers to the factors that
influence customers for brand switching. It suggests that these are the triggers (Factors) which
influence customers to switch over brands. Brand switching behavior of customers is also
affected by subscriber lock in. Subscriber lick in is a kind of behavior in which subscribers lock
their customers only to their network. If customers want to change their service providers they
have to change their mobile sets. This function can also be related to switching cost. Subscriber
lock- in raises switching cost and makes customers to stay with the brand with which they are
attached (Dong and Won) suggests that corporate image effects decisions of customers
regarding loyalty. Corporate image is basically the physical and behavioral traits of a company
such as business category, business name, and assortment of products and services and idea of
communicating quality of products and services. All these factors are somewhere represented
above but under corporate image these are aggregated. It has been found by many researchers
that corporate image is positively associated with customer loyalty
14 | P a g e
Employees of companies create a bridge between companies and customers. If employees are
loyal with the company, they aim at delivering best services to the customers. In this way loyal
employees can become source of creating brand loyalty and preventing brand switching
If above factors are managed effectively brand switching can be avoided and long term relations
can be established with customers. Employees are the most important component of companies
and they have long lasting effects on performance of companies. Corporate image has also
found to be influential factor regarding brand switching.
2.1
Brand switching is the behavior of customers to change their usual products and switch over the
others. Loyalty is basically the behavior of customers to continue purchasing a particular
product or service.
Customer loyalty is defined as positive attitude of customers towards repurchasing and
continued commitment to a particular brand in future. Loyal customers are continued source of
revenues for the companies even in the time of financial crisis. Loyal customers are less expected
to change their loyalties to competitors brands even if there is decrease in price of competitors
brands. Loyal customers are very important assets for the companies so it is very important for
them to retain loyal customers and to stop them to switch over competitors brands. Profitability
is driven by the customer loyalty. Loyal customers are also essential to be retained by the
companies because they are source of long term profits for the companies Reverse of customer
loyalty is customer switching. Mobile service providers are focusing on increasing customer
loyalty by stopping customers to switch over other brands
2.2
Advertisement plays important role to make customers of competitors brands to switch over the
advertised brands. It can be said that advertisement plays double role for loyal and non loyal
customers of company. It influences attitudes, preferences, and decision making process and
purchase intensions of customers.
2.3
Brand switching is a process in which customers tend to end relationship with a particular
company and start relationship with a new one. All industries have experience brand switching
but telecommunication industry is more exposed to it. There are many factors that influence
brand switching. On one end they persuade customers to switch over other company and on the
other hand they prevent brand switching. Price has been found most influential factor in brand
switching in telecom sector. Besides price there have been many factors that enhance brand
switching like quality service, coverage area, trust, advertisement, and brand image. All these
factors have been critically analyzed in the literature review in the light of work of previous
researchers.
Chapter Three
Research Methodology
Methodology of research has been considered very important for the whole result because it can
actually impact the results of research. This chapter presents detailed methodology of research
including philosophy, approach, methods, and data collection tools. Researcher has justified the
choices in accordance with the aims and objectives of research.
For this particular research, researcher has four options of research philosophies. The first
option for the researcher is realism which believes that reality is product of humanizing different
social factors. Realists suggest that what is happening in laboratory is not necessarily a reality.
It researches a phenomenon on the basis of researchers point of
Second option available for the researcher is positivism which deals with the development of
research hypothesis on the basis of existing theories of previous researchers. Positivists rely on
the validity of the previous researchers. Statistical tools of analysis are used in order to test the
hypothesis under positivism.
Third option available to the researcher is interpretivism or socialism which deals with the
evaluation of different social factors from researchers viewpoint. Socialists are basically against
positivists in their viewpoint.
Last option available to the researcher is phenomenology which deals with the experiences of
individuals. These experiences result from beliefs, perceptions and previous knowledge about a
particular thing.
Research under consideration is conducted by a combination of interpretivism and positivism.
The reason behind choosing this philosophy is that interpretivism deals with the attitudes and
experiences which are critical for brand switching and positivism deals with the existing theories
which are studied to explore research topic. Other two research philosophies do not align with
the aims and objectives of research so they are avoided in this particular research. Factors
influencing brand switching are explored with the help of previous researches and also on the
basis of experiences and perceptions of customers.
To investigate the factors influencing brand switching both approaches are used. Deductive
approach explores existing theories and models of brand switching whereas inductive approach
examines the factors which influence customers of India to switch over other mobile service
providers. Use of both approaches in research makes easy for the researcher to produce logical
and correct reasoning (Saunders et al, 2007). Deductive approach is related to interpretivism
whereas inductive approach is related to positivism. Researcher has related both approaches in
research in order to produce correct results.
secondary data in the form of words has been used whereas in quantitative part numeric data in
the form of percentages has been used. Data collected through both approaches is linked
together in order to make a flow in the research. In the analysis section of research findings of
primary research i.e. quantitative data has been related to the literature review which is
qualitative data. In this way coherence has been achieved in the findings of research.
Primary data can be collected through observations, interviews, surveys and focus groups. Here
is a detailed description and pros and cons of primary data collection tools:
3.5.2.1 Surveys
Surveys are used to ascertain characteristics of a large population in short time duration. A
single survey can collect data from a large population with limited sources and time. Researcher
interacts with the respondents to a small extent. Questionnaires are used for conducting surveys.
Respondents are asked to fill the questionnaire according to their knowledge and perceptions.
Due to limited interaction of researcher with respondents, problems in understanding questions
can arise. This can lead to ambiguous responses which create problems in analysis of data.
Surveys are flexible tool of primary data collection and require less time and money.
21 | P a g e
Chapter Four
Data Presentation
4.1 General Information
Respondents were asked to mention their age and gender in questionnaire. Different age
categories possess different preferences regarding mobile services. Same is true for gender of
mobile service subscribers. Mobile service providers can analyze the needs and wants of
different genders and that of age categories in order to design better services for different
customer groups.
4.2.1 Frequency Distribution of Age of Sample
Five age ranges were given in the questionnaire. Frequency distribution of age of respondents is
shown in the following table.
Age of Respondents
Age
Respondents
Less than 20 Years
13
21 - 30 Years
35
31 - 40 Years
31
41 - 50 Years
13
Above 50 Years
8
22 | P a g e
Total
100
Frequency distribution of sample shows that 13 respondents were less than 20 years old, 35
respondents were between 21 30 years of age. 31 respondents were in the age category of 31
40 years of age, 13 respondents were in the age category of 41 50 years. Only 8 respondents
were above 50 years of age. The data shows that most of the respondents were in the middle age
category. Graphical representation of frequency distribution of age of respondents is shown in
the following table:
Gender of Respondents
Gender
Respondents
Male
52
Female
48
Total
100
23 | P a g e
The results show that there were 52 males and 48 females in the sample. Two deductions can be
made from results. The first is that more males use telephonic services and the second is that
more males have shown their intentions to fill the questionnaire. Graphical representation of
frequency distribution of age of respondents is shown in the following table:
23 respondents said that they use land line telephonic services. 52 respondents use mobile
services only. There were 25 respondents who use combination of fixed line and mobile services.
This suggests that mobile telephony is popular as compared to fixed line telephony. The results
are presented in the following graph:
24 | P a g e
4.2.4
25 | P a g e
Above table presents clear picture about results of switching behavior of respondents. There
were 13 respondents who have never switched mobile service provider. 35 respondents have
switched mobile service providers once in the life. There were 26 respondents who have changed
mobile service provider twice in their life. 17 respondents have switched mobile service provider
thrice in their life. There were only 9 respondents who have switched mobile service providers
for more than thrice. The results suggest that 87 respondents have experienced switching mobile
service providers. Majority has done this only for one time. Graphical representation of results is
as follows:
26 | P a g e
For how many times you have changed mobile service provider in
response to changes in call charges?
Suggestions
Respondents
Not at all
9
Once
31
Twice
36
Thrice
15
More than Thrice
9
Total
100
There were 9 respondents who have never changed mobile service provider because of changes
in price. 31 respondents have changed mobile providers once in their life in response to change
in prices. There were 36 respondents who have switched mobile service providers twice in their
life in response to changes in price. 15 respondents have switched mobile service providers
thrice in their life in response to changes in price. 9 respondents have switched mobile service
providers for more than three times in their life in response to changes in prices of mobile
services. Graphical representation of results is as follows:
28 | P a g e
Question 2:
Respondents were asked that whether the customer service of previous mobile service operator
was poor or not. Customer service has taken an important place in the decision making process
of customers. It has considered equally important as a product. The results of this question are
summarized in the following table:
Do you think customer care service of previous operator was
poor?
Suggestions
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
Respondents
21
35
9
20
15
100
There were 21 respondents who strongly agreed that customer service of previous operator was
poor. 35 respondents agreed to the fact that customer service of previous operator was poor. 9
respondents remained neutral in their opinion. 20 respondents disagreed to the fact that
customer service of previous operator was poor. 15 respondents strongly disagreed with this
opinion. Graphical representation of results is as follows:
Question 3:
29 | P a g e
Respondents were asked whether better service quality of new service provider has encouraged
them for switching. Service quality is determined by a number of factors which include tangible
as well as intangible aspects. The results of this question are summarized in the following table:
Better service quality has persuaded you to switch over current
service provider?
Suggestions
Respondents
Strongly Agree
24
Agree
37
Neutral
8
Disagree
19
Strongly Disagree
12
Total
100
The results suggest that 24 respondents strongly agreed to the fact that better service quality has
encouraged them to switch over new service provider. 37 respondents agreed to the fact that
better service quality of new operator has encouraged them for brand switching. 8 respondents
remained neutral in their opinion. 19 respondents disagreed to the fact that better service quality
of new service provider has encouraged brand switching. 12 respondents strongly disagreed with
this opinion. Graphical representation of results is as follows:
Question 4:
Respondents were asked that whether value added services have encouraged them for brand
switching or not. The results of this question are summarized in the following table:
30 | P a g e
The above table suggests that 18 respondents strongly agreed to the fact that value added
services have encouraged them to switch over new service provider. 31 respondents agreed to the
fact that value added services of new operator have encouraged them for brand switching. 13
respondents remained neutral in their opinion. 23 respondents disagreed to the fact that value
added services of new service provider have encouraged brand switching. 15 respondents
strongly disagreed with this opinion. Graphical representation of results is as follows:
Question 5:
Respondents were
asked about the trust on previous service providers. Trust is very important for maintaining or
discarding relationship with the service providers. The results of this question are summarized
in the following table:
You cannot trust previous mobile service provider
Suggestions
Respondents
31 | P a g e
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
17
29
15
25
14
100
The above table suggests that 17 respondents strongly agreed to the fact that they cannot trust
previous mobile service providers. 29 respondents agreed to the fact that they cannot trust
previous service providers. 15 respondents remained neutral in their opinion. 25 respondents
disagreed that they cannot trust previous mobile service providers. 14 respondents strongly
disagreed with this opinion. Graphical representation of results is as follows:
Question
6:
Innovations in mobile services are very attractive tool for encouraging customers to switch
brands. Innovative services can provide customers more convenience.
question are summarized in the following table:
Current mobile service provider is innovative
Suggestions
Respondents
Strongly Agree
21
Agree
31
Neutral
17
Disagree
19
32 | P a g e
Strongly Disagree
12
Total
100
The results suggest that there were 21 respondents who strongly agreed that current mobile
service provider is innovative. 31 respondents just agreed that new mobile service provider is
innovative. 17 respondents remained neutral in their opinion. 19 respondents disagreed that
current mobile service provider is innovative. 12 respondents strongly disagreed with this
opinion. Graphical representation of results is as follows:
Question 7:
It has been discussed in the literature review that advertisement attracts new as well as existing
customers. Companies advertise their services in order to attract new customers and also in
order to retain existing ones. The results of this question are summarized in the following table:
Advertisement of current mobile service provider has attracted you
Suggestions
Respondents
Strongly Agree
21
Agree
37
Neutral
8
Disagree
23
Strongly Disagree
11
Total
100
33 | P a g e
The results suggest that there were 21 respondents who strongly agreed that advertisement has
attracted them towards new operator.
attracted them towards new operator. 8 respondents remained neutral in their opinion. 23
respondents disagreed that advertisement has attracted them towards new operator. 11
respondents strongly disagreed with this opinion. Graphical representation of results is as
follows:
Question 8:
Availability of service is very important factor that can create satisfaction or dissatisfaction in
customers. Respondents were asked that whether better service availability of current mobile
service provider has made them to switching or not. The results of this question are summarized
in the following table:
Better service availability of current mobile service provider has made you to
switch over it
Suggestions
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
34 | P a g e
Respondents
24
35
14
17
10
100
The results suggest that 24 respondents have strongly agreed that better service quality has made
them switching towards current mobile service provider. 35 respondents agreed, 14 remained
neutral, 17 disagreed and 10 respondents strongly disagreed to this fact. Graphical
representation of results is as follows:
Question 9:
Literature review has discussed in detail that brand image has influence on brand switching.
Respondents were asked that whether brand image or current service provider has persuaded
them to switch over this brand. The results of this question are summarized in the following
table:
Brand Image has persuaded you to switch over the current mobile
service provider
Suggestions
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
35 | P a g e
Respondents
20
33
9
21
17
100
The results show that 20 respondents strongly agreed to that fact that brand image has
influenced them to switching towards current service provider. 33 respondents agreed, 9
remained neutral, 21 disagreed and 17 respondents strongly disagreed with the opinion.
Graphical representation of results is as follows:
Suggestions
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
36 | P a g e
Respondents
19
27
15
22
17
Total
100
Results show that 19 respondents strongly agreed that they have been restricted by personal or
professional reason to remain stayed with the current service providers. 27 respondents agreed,
15 remained neutral, 22 disagreed and 17 respondents strongly disagreed to the fact. Graphical
representation of results is as follows:
Question 2:
Switching cost plays important role in restricting customers with their current service providers.
Respondents were asked that whether switching cost is high for them or not. The results of this
question are summarized in the following table:
Switching to other mobile service provider is costly
Suggestions
% of Respondents
Strongly Agree
21
Agree
35
Neutral
14
Disagree
11
Strongly Disagree
19
Total
100
37 | P a g e
Results show that there were 21 respondents who strongly agreed that switching cost is high and
restricts them to stay with current service providers. 35 respondents agreed, 14 remained
neutral, 11 disagreed and 19 strongly disagreed with the opinion. Graphical representation of
results is as follows:
Question 3:
Respondents were asked about trusting other mobile service providers. Trust on mobile service
providers influences customers to either stay with or to switch over other service providers. The
results of this question are summarized in the following table
You cannot trust other mobile service providers
Suggestions
Respondents
Strongly Agree
22
Agree
30
Neutral
12
Disagree
19
Strongly Disagree
17
Total
100
38 | P a g e
22 strongly agreed that they cannot trust other service providers. 30 respondents agreed, 12
remained neutral, 19 disagreed and 17 respondents strongly disagreed to the fact that they
cannot trust other service providers. Graphical representation of results is as follows:
Question 4:
Respondents were asked that whether better service quality of current service provider resist in
switching. Results are displayed in the following table.
Service quality of current mobile service provider is better
which resists in switching
Suggestions
Respondents
Strongly Agree
21
Agree
29
Neutral
16
Disagree
19
Strongly Disagree
15
Total
100
39 | P a g e
Results show that there were 21 respondents who strongly agreed that better service quality
resists them to switch towards a particular service provider.
29 respondents agreed, 16
remained neutral, 19 disagreed and 15 strongly disagreed to the fact that better service quality
resists them for switching. Graphical representation of results is as follows:
Question 5:
Low charges of services can be a technique for service providers to restrict customers with them.
Respondents were asked their perception about low charges and staying with current service
provider. Results are displayed in the following table.
Charges of current mobile service provider are low
Suggestions
Respondents
Strongly Agree
28
Agree
37
Neutral
9
Disagree
16
Strongly Disagree
10
Total
100
40 | P a g e
28 respondents strongly agreed that low charges of current service providers persuade them to
stay with them 37 respondents agreed, 9 remained neutral, 16 disagreed and 10 strongly
disagreed to the opinion. Graphical representation of results is as follows:
Question 6:
Respondents were asked that whether coverage service of current mobile service provider is
better than other service providers. Results are displayed in the following table.
Coverage service of current mobile service provider is better than
other service providers
Suggestions
Respondents
Strongly Agree
11
Agree
29
Neutral
17
Disagree
28
Strongly Disagree
15
Total
100
Results
suggest that
41 | P a g e
11 respondents strongly agreed that better coverage service of current operator restricts them
not to switch. 29 respondents agreed, 17 remained neutral, 28 disagreed and 15 respondents
strongly disagreed to the fact that they are restricted by better coverage service of current
operator. Graphical representation of results is as follows:
Question7:
Respondents were asked about trusting advertisement of other service providers. Sometimes
advertisements are not mentioned about hidden charges of service. This can create distrust in
customers. Results are displayed in the following table.
Trusting advertisement of other service providers is costly as
they include hidden charges
Suggestions
Respondents
Strongly Agree
20
Agree
33
Neutral
11
Disagree
19
Strongly Disagree
17
Total
100
42 | P a g e
20 respondents said that trusting advertisement on other service providers is costly because it
includes hidden charges. There were 33 respondents who agreed, 11 remained neutral, 19
disagreed, and 17 strongly disagreed to the opinion. Graphical representation of results is as
follows:
Question 8:
Customer services play important role is satisfying or dissatisfying customers. Respondents were
asked that whether better customer services of current service provider resist in switching or not.
Results are displayed in following table:
Customer care services of current mobile service provider are of
high quality which resist in switching
Suggestions
Respondents
Strongly Agree
12
Agree
32
Neutral
9
Disagree
28
Strongly Disagree
19
Total
100
43 | P a g e
12 respondents strongly agreed that they are resisted by better customer services of current
service providers for not switching brand. 32 agreed, 9 remained neutral, 28 disagreed and 19
respondents strongly disagreed to the opinion. Graphical representation of results is as follows:
Question 9:
Brand image has influence on brand switching as discussed by literature review. Respondents
were asked that whether brand image of current service providers has resisted them to switching
or not. Results are displayed in following table:
Brand Image has persuaded you to stay with the current mobile
service provider
Suggestions
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
44 | P a g e
Respondents
21
35
7
22
15
100
The results show that 21 respondents strongly agreed that brand image of current service
providers has resisted them to switching. 35 respondents agreed, 7 remained neutral, 22
disagreed and 15 respondents strongly disagreed to the opinion. Graphical representation of
results is as follows:
Chapter Five
Data Interpretation and Analysis
5.1 Analysis of Findings
In the sample most of the respondents belonged to middle age category. There was less
percentage of respondents of more than 50 years of age. Needs of communication of individuals
of different age categories vary. Individuals who are younger in age and have not started their
career yet use mobile telecommunication for contacting their friends and relatives. They do not
have any restrictions related to profession. These individuals also have limited budget so they
used to switch their mobile service providers frequently in response to different offers of service
providers. It has been found that respondents who were older used fixed line only whereas
respondents who were young used mobile telecommunication only. Some of the respondents have
also said that they use both types of telecommunication. It is very important to mention that
mobile telecommunication is comparatively new technology and is characterized by a number of
innovations. Young individuals are more attracted to innovations rather than older ones who
45 | P a g e
want to remain in their traditional frame of mind. This is the reason young and middle age
respondents have been found using mobile telecommunication more.
It has been found that majority of the respondents use Vodafone following by Airtel. Idea has
been recognized as an innovative telecommunication company in India. Most of the young and
professional have been using Idea because it provides them innovations that can provide them
entertainment as well as solution of their problems. BSNL has also been found as one of the
major market share holder. There was very less percentage of respondents who have been using
other mobile service providers.
Respondents who were young have been found very frequent in switching mobile service
providers. It has been found that respondents who are older in age have never switching mobile
service providers. It can be deduced that these respondents might have some personal or
professional reason for changing mobile service providers. It has been found that respondents
who are young have switched for more than 3 times since they are using mobile
telecommunication.
Questionnaire has been divided into two parts. One part relates to switchers and the other one is
related to non switchers. There were 87 respondents who have experienced switching mobile
service provider in their life whereas 13 respondents have never experienced brand switching of
mobile service providers. It has been found that most of customers of Vodafone have been found
non switchers.
5.1.1 Analysis of Factors Influencing Brand Switching
Majority of respondents have been found switching mobile service providers in response to
changes in call charges. Call charges relate to price variable which has been found very
influential factors for brand switching according to literature review.
respondents who might have limited budget have been found more frequent switchers in response
to changes in price. It can be said that price changes affect those customers who have limited
budgets
Customer care service has also been an influential factor for brand switching. It has been found
that most of the respondents have agreed that better customer service of current operator has
46 | P a g e
made them to switch towards them. Quality of service refers to tangible as well as intangible
components of service. Tangible service refers to better voice quality, voice clarity, service
availability etc. On the other hand intangible component refers to customer care. Both are very
important for satisfying and attracting customers.
Quality conscious customers tend to have value added services provided by the mobile service
providers. It has been found that most of respondents have switched mobile service providers
because current service provider grants them more value added services. Quality of a service is
also recognized by the provision of value added services.
Trust is very important factor in establishing long term relationship between any two units. It has
been found that customers who have experienced brand switching say they cannot trust their
previous service providers. Trust conveys a message to the customers that service provider can
do anything in order to satisfy their needs. If this does not happen, customers can switch over
other service providers.
Results show that respondents who were quality conscious value brand image. These
respondents have switched old mobile service provider because image of current service
provider is more attractive. Brand image affects decision making process of customers.
5.1.2 Analysis of Factors Resisting Brand Switching
It has been found that most of respondents have some personal or professional commitments due
to which they do not switch mobile service providers. The results have revealed that respondents
who were in middle age category have given this reason for not switching mobile service
providers.
Switching cost plays very important role in determining switching attitude of customers. It has
been found that most of the respondents who have personal or professional commitments also
said that switching to new service providers can become costly so they prefer to remain attach
with existing service provider.
Another factors preventing brand switching is Trust. In the above section this factor has been
recognized as an important factor influencing brand switching. Majority of respondents have
47 | P a g e
said that they cannot trust other service providers so they remain attached with existing service
providers.
It has been found from results that better service quality of current mobile service providers has
resisted respondents to switch over other brands. Better service quality puts an impression of
superior services in the minds of customers. Due to this impression they do not switch over other
brands. Service quality also refers to coverage of service provided b the service providers. Price
has been the most important factor in the decisions of customers for staying with existing brand
or switching to the other one.
It has been proved that advertisement has played important role in attracting customers to new
service providers in the previous section. The results of this section suggest that non switchers do
not trust advertisement of other service providers because they include hidden charges which are
not displayed in advertisements. Brand image has also been found an important factor that has
influenced respondents to remain attached with current service provider.
Chapter Six
Conclusion
The conclusion of the whole research is all the findings have been concluded here. On the basis
of results of primary data and that of secondary data some recommendations have been
proposed to the telecommunication companies of India in order to stop their customers for brand
switching. Future prospects of research have also been presented in this chapter.
6.2 Conclusion
This particular research aimed at examining the factors influencing brand switching in
telecommunication industry of India. In order to examine the factors triangulation methodology
has been adopted. Questionnaire strategy has been used by the researcher for collecting primary
data. There were 87 respondents who have experienced brand switching of service providers at
any stage in their life. 13 respondents have never switched mobile service providers. The
findings of research suggest that there price has been most influential factor in decisions of
customers regarding brand switching. The results have shown that most of respondents switch
48 | P a g e
mobile service providers in response to changes in prices. On the other hand service providers
charging low call rates have been succeeded in stopping their customers to switch over other
service providers. All customers do not value reduction in prices of calls but they value quality of
services. So companies need to maintain a balance in high quality and reasonable price in order
to retain customers.
High quality services have also been found an important factor for encouraging customers for
brand switching as well as for retaining customers. Mobile service providers with attractive and
high quality services (customer care, coverage area) have made customers of other companies to
switch over them. On the other hand customers have been stopped by companies for brand
switching by providing them quality services. Quality services satisfy customers and ultimately
enhance performance of companies.
Switching cost has been found very important factor in stopping customers for brand switching.
Suggest that companies need to raise switching cost in order to retain their customers. High
switching cost prevents customers to switch over others. It can ultimately increase customer
loyalty. Service providers that have low switching cost face frequent switching of their customers
towards other service providers.
The factor is Trust which is base of establishing long term relationship with the companies. If
companies fail to maintain trust with customers they cannot start relationship with customers on
long term basis. The results have revealed that customers who do not trust service providers
switch over other service providers. On the other hand customers who do not trust other service
providers tend to remain with their current service providers.
Brand image has also been found an influential factor in determining the final decision of
customers regarding brand switching. Brands that have appealing image attract customers of
other service providers and retain their own customers for long time period.
Finally the objectives of research are reviewed as follows:
49 | P a g e
Price has been the most important factor that influences brand switching. Other factors
that have been found encouraging for brand switching in telecommunication industry of
India are: Service quality, Customer care, value added services and brand image.
Most important factor that prevents brand switching is switching cost. High switching
cost prohibits customers to switch over other service providers. Other factors that stop
customers for brands switching are: personal or professional commitments regarding
changing number, low service charges, high quality and appealing brand image of
6.3 Recommendations
On the basis of findings of primary and secondary research some recommendations have been
proposed to the mobile service providers in order to stop their customers for brand switching.
These recommendations are as follows:
Raise switching cost associated with the services so that because of high cost customers
avoid brand switching and remain loyal with existing service provider.
Provide high quality services to customers that must be accompanied by quality customer
care services and large coverage area so that customers do not get any reason for
brand.
Assure customers that company will take stand in order to satisfy their needs so that
trustworthy relationship can be maintained on long term basis which ultimately
References
50 | P a g e
Business Wire 2011. Telecom Sector in India - Trends and Opportunities (2011-2015)
Available
online:
http://www.researchandmarkets.com/research/7587f0/telecom_sector_in
Bitner, M.J., & Hubbert, A.R. (1994). Encounter satisfaction versus overall
satisfaction versus quality.
The Construction Model of Customer Trust, Perceived Value and Customer Loyalty,
51 | P a g e
Estimating
Switching
Costs
in
the
Mobile
Johnson Michael D and Claes Fornell. 1991. A framework for comparing customer
satisfaction across individuals and product categories,
Jun Xue and Bin Liang 2005, An empirical study of customer loyalty in
telecommunication industry
Roos, I., Gustafsson, A. & B. Edvardsson "The Role of Customer Clubs in Recent
Telecom Relationships".
Rajkumar. R .Dr. LJ. Chaarlas, 2011. Brand Switching In Cellular Phone Service
Industry Because Of Bill-Related Issues Faced By Clients
Simon, J.L. & Arndt, J. (1980). The Shape of the Advertising Response Function
Saunders, M., Lewis, P. and Thornhill, A. 2007, Research Methods for Business
Students, 4th ed, Prentice Hall Financial Times, Harlow.
52 | P a g e
Questionnaire
Hi, this is Abhishek Rajput BBM III (hons) assure you all that this collected information is for research work
only and it will not be disclose In front of anyone.
General Information
Name :..... Age:
1.
2.
Gender:..
If you have ever switched mobile service provider, then answer part A. If you have never switched mobile
service provider, then answer part B of questionnaire.
Part A:
Questions
Strongly
Disagree
neutral
agree
Disa
Strongly
Agree
gree
1.
2.
3.
4.
5.
6.
53 | P a g e
>3
7.
8.
9.
Advertisement
of
current
mobile
service
Questions
1.
2.
3.
4.
54 | P a g e
Strongly
disagree
disagree
Neutral
Agree
Strongly
agree
5.
6.
7.
8.
55 | P a g e