Chapter-I: PROJECT REPORT 2014-2015

PROJECT REPORT 2014-2015
CHAPTER-I
INTRODUCTION
YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 1

INTRODUCTION
Customer satisfaction
According to Philip Kotler, satisfaction is a persons feelings of pressure or

disappointment resulting from products perceived performance (outcome) in relation to
his or her expectations. Customer satisfaction is the level of a persons felt state resulting
from comparing a products perceived performance (outcome) in relation to the persons
expectations.
This satisfaction level is a function of difference between perceived performance and

expectations. If the products performance, exceed expectation the customer highly
satisfied or delighted. If the performance matches the expectations the customer is
satisfied. If the products performance fall shorts of expectations the customer is
dissatisfied.
Many companies are aiming for high satisfaction because customers who are just
satisfied still find it easy to switch when a better offer comes along. High
satisfaction or delight creates an emotional affinity with brand.
Variety of factors that affect customer satisfaction includes product quality, product
availability and after sales support such as warranties and services. Customer
satisfaction is seen as a proof of delivering a quality product or service. It is
believed that customer satisfaction brings sales growth, and market share. A
company can always increase customer satisfaction by lowering its price or
increasing its services but this may result in lower profits. Thus the purpose of
marketing is to generate customer value profitability.
India is on the threshold of a new millennium. India chose for global economy,
exposing her to winds of change in the market place, which has expanded vastly
become fiercely competitive. In the changed environment, decision makers view
the marketing concept as the key to success. Marketing in practice has to manage
products, pricing, promotion and distribution.

A successful product can be developed by exploding these opportunities. While

delivering the value of the consumer we make use of marketing support. This
support is based on the knowledge of consumers and distribution. Marketing
support both at the introduction of products and maturing is considered.
IMPORTANCE OF STUDY
This study is mainly for academic purpose. It is important in many other fields. This type
of study and report will spread some light on some positive and negative aspect of
various business enterprises selected for report. Only a serious attempt has been made to
understand this industry. The study is concentrated on major areas like marketing aspects.
OBJECTIVES OF THE STUDY
Objectives of the study: This project aims at studying the present market scenario. The
major players in the market today are airtel, Vodafone, BSNL, Tata docomo, reliance,
and idea. All the companies want to capture the market study concerns with evaluating
fast developing area and so all the service providers were taken to measure the
satisfaction of customer.
1. To study the customer satisfaction towards mobile service providers.

2. To evaluate the major service provider satisfied the customer.

3. To understand the performance of different brands in the market on various

parameters like product quality, performance of the customer relationship
officer(CRO), service quality, range and selection of products available.
4. To know the needs, requirements and expectations of the customers and also
to know their current satisfaction level.
SCOPE OF THE STUDY

The present study is taken with special reference to Palakkad region and it is about
A STUDY ON CUSTOMER SATISFACTION TOWARDS MOBILE NETWORK
SERVICE PROVIDERS
. This research can help service providers to develop a more guided approaching
communicating with the targeted consumers.
Though the main objective of the study is to analyze the consumer satisfaction,
scope of the study extends to the following related aspects like, sources of information
and level of awareness, factors influenced to selecting the network providers, level of
satisfaction, the services rendered by the distributers and problems faced by consumers
regarding the different service providers.

SOURCES OF DATA
Data plays a vital role for the successful completion of any study. Since, every
possible source are needed to tap information required for the study, two sources to
collect data i.e., primary and secondary sources have been used in this study.
PRIMARY DATA
Primary data are the data directly collected from the respondents by using any
structured methodology. The primary data is collected using a structured questionnaire.
SECONDARY DATA
Secondary data are the data which are already collected by someone else, secondary
data is collected through brochure and catalogues, newspapers, magazines, web sites, etc.
SAMPLE DESIGN
A sample design is a definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure the researcher would adopt in selecting items for
the sample. Sampling design in this research includes the sampling method, sampling
units, and sampling size.
SAMPLING METHOD
For the purpose of sampling, Convenience Sampling was used, which belongs to the
category of non probability sampling.
SAMPLE UNITS
Sample units taken for the STUDY OF CUSTOMER SATISFACTION TOWARDS

MOBILE NETWORK SERVICE PROVIDERS in the Palakkad region.

SAMPLE SIZE
The sample size taken for this research was 100.
METHOD OF DATA COLLECTION
The data is collected through personally administered questionnaire. The questionnaire

was prepared and supplied to the respondents. Direct interview method is also used to get
information from some respondents. The first part of the questionnaire contains personal
details of the respondents and the second part of the questionnaire deals with consumer
preference, satisfaction and post purchase behavior.
LIMITATIONS OF THE STUDY
Carrying the survey was a general learning experience for us but we also faced
some problems, which are listed her:
The market of telecommunication is too vast and it is not possible to cover each and
every dealer, manufacturer and seller in the available short span of time.
Generally the responders were busy in their work and were not interested in
responding rightly.
Most respondents were not maintaining proper knowledge various services provided
by their company, so they were unable to provide exact information.
Most of the respondents dont want to disclose the information about the various
other companies which they have experienced before.
Some of the respondents were using the service first of their company and they
were not able to properly differentiate among their product.
Due to human behavior information may be biased. Mainly in BSNL case.

RESEARCH DEFINITION
The word research is derived from the Latin word meaning to know. It is a systematic
and a replicable process, which identifies and defines problems, within specified
boundaries. It employs well-designed method to collect the data and analyses the
results. It disseminates the findings to contribute to generalize able knowledge. The
main characteristics of research presented below are:
Systematic problem solving which identifies variables and tests relationships

between them,
Collecting, organizing and evaluating data.
Logical, so procedures can be duplicated or understood by others
Empirical, so decisions are based on data collected
Reductive, so it investigates a small sample which can be generalized to a
larger population
Replicable, so others may test the findings by repeating it.
Discovering new facts or verify and test old facts.
Developing new scientific tools, concepts and theories, this would facilitate to
take decision.
For the proper analysis of data simple statistical techniques such as percentage were use.
It helps in making more generalization from the data available. The data which will be
collected from a sample of population was assumed to be representing entire population
was interest. Demographic factors like age, income and educational background was used
for the classification purpose.

CHAPTER-II
REVIEW OF LITERATURE

Review of literature
1. Robins (2008) this paper is about marketing the next generation of mobile phones.
The study is about third generation of cell phone technology, what is usually known
as 3G for short. There are various issues about that new innovative. One is how to
price 3G handsets and services at a level which will enable telephone operating
companies to recoup the high prices they have already paid to governments for
operating licenses. Second the technology is not yet complete, there are no agreed
international standards and companies do not yet know what new services the
technology will prove capable of delivering effectively. All variants of 3G remain
dependent on largely unproven technology. Marketing 3G is going to be about
services which are new and in many cases, yet to be designed. At the same time, it
will involve services which can also be obtained by computer and other means. It
follows that the marketing task will be high risk. First, 3G has no obviously unique
selling proposition to build on except, perhaps the combination of live video and easy
portability. Second, the potential customers have not yet had adequate opportunity to
signal their service likes and dislikes. Third, the cost complexities of service provision
leave doubt about the markets reaction to price.
2. Debnath (2008), this study explain that the prime focus of the service providers is to
create a loyal customer base by benchmarking their performances and retaining
existing customers in order to benefit from their loyalty. With the commencement of
the economic liberalization in 1991, and with a view to expand and improve telecom
infrastructure through the participation of the private sector, the Government of India
permitted foreign holding 52 percent equity stake in joint ventures to manufacture
telecom equipment in India. The Indian Government has announced a new policy,
which allows private firms to provide basic telephone services. There had been a
monopoly of the state owned department of telecommunications. However, several
companies are expected to benefit from the policy change.

3. Bhatt (2008), in his study titled A Study of Mobile Phone Usage Among the Post
Graduate Students analyzed that it is important for mobile carriers, service providers,
content developers, equipment manufacturers, as well as for parents and young people
alike that the key characteristics of mobile technology is well understood so that the
risks associated with its potentially damaging or disruptive aspects can be mitigated.
This paper has tried to compare the usage difference by gender with respect to the
difference manufacturing and service provider companies.
4. Jain (2008), in his study analyzed that it is the youth which is the real growth driver of
the telecom industry in India. Considering this fact, the paper is an attempt to give a
snapshot of how frequently young people use their mobile phones for several
embodied functions of the cell phones. Data was collected from a sample of 208
mobile phone owners, aged between 20 and 29. The study sheds light on how gender,
monthly voucher amount and years of owning mobile phones influence the usage
pattern of this device. Findings of the study would be helpful for the telecom service
providers and handset manufacturers to formulate a marketing strategy for different
market segments.
5. Kumar (2008), in their study titled Customer Satisfaction and Discontentment vis--
vis BSNL Landline Service: A Study analyzed that at present, services marketing
plays a major role in the national economy. In the service sector, telecom industry is
the most active and attractive. Though the telecom industry is growing rapidly, Indias
market is yet to be covered. This attracts private operators to enter into the Indian
telecom industry, which makes the Bharat Sanchar Nigam Limited (BSNL) more alert
to run its business and survive in the market.
6. Fernandez (2007) in their study titled Understanding Dynamics in an Evolving

Industry: Case of Mobile VAS in India analyzed that Mobile Value Added Services

(VAS) is a rising star in the fast growing wireless business. In the paper, attempt is
made at understanding the strategic dynamics of the evolving environment within
which the Indian players are operating, the challenges and structure of the same. Our
literature and industry review indicates that while the value chain of industry is
complicated yet one can observe the bipolar nature of bargaining powers between
mobile network operators and content aggregators.
7. Bismut (2006) in his study titled Competition in European Telecom Markets

analyzed that in recent years the European telecommunication market has witnessed
major developments, with rapid expansion in access to telecommunication networks
and a surge in the number of available services and applications. While many factors
have contributed to the transformation of the telecommunications industry,
competition has played a key role in driving telecom players to invest in new
technologies, to innovate and to offer new services.
8. Fredric (2008) analyzed the importance of yield management and discrimination

pricing in telecommunication sector. Yield management is the process of allocating
the right type of capacity or inventory unit to the right kind of customers at the right
price so as to maximize revenue or yield. Yield management and dynamic pricing
strategies could be usefully applied to preserve and increase profitability. Yield
management techniques can help telecom operators and similar companies to
optimize the benefits they can derive from a subtle management of information
networks and partnerships. However, such an approach is more difficult to implement
in the telecommunication industry than in the airlines sector because of the difficulty
to control (and sometimes to refuse) network access to customers.
9. Chris (2003) has analyzed Telecom advertising in print media. This research
attempted to investigate why telecom theme are used in advertisement, and the
motives that lead companies and advertisers to use sport celebrities and sport concept

in advertisements. From study it has been revealed that the appearance of sport
celebrities in advertising endorsement occurred more often in Telecom magazines
than in other magazines, because their target group is more acquainted with athletes.
The sport celebrities that dominated each printed media are related with their target
group characteristics.
10. Kalavani (2006) in their study analyzed that majority of the respondents have given
favorable opinion towards the services but some problems exist that deserve the
attention of the service providers. They need to bridge the gap between the services
promised and services offered. The overall customers attitude towards cell phone
services is that they are satisfied with the existing services but still they want more
services to be provided.
DEFINITION
Parker and Mathew (2001) expressed that there are two basic definitional approaches of
the concept of customer satisfaction. The first approach defines satisfaction as a process
and the second approach defines satisfaction as an outcome of a consumption experience.
These two approaches are complementary, as often one depends on the other.
Customer satisfaction as a process is defined as an evaluation between what was received

and what was expected (Oliver, 1977, 1981; Olson and Dover, 1979; Tse and Wilton,
1988), emphasizing the perceptual, evaluative and psychological processes that
contribute to customer satisfaction (Vavra, 1997, p. 4).
Parker and Mathews (2001) however noted that the process of satisfaction definitions
concentrates on the antecedents to satisfaction rather than satisfaction itself.

Satisfaction as a process is the most widely adopted description of customer satisfaction

and a lot of research efforts have been directed at understanding the process approach of
satisfaction evaluations (Parker and Mathews, 2001). This approach has its origin in the
discrepancy theory (Porter, 1961), which argued that satisfaction is determined by the
perception of a difference between some standard and actual performance.
.According to Parker and Mathews (2001), the most popular descendant of the
discrepancy theories is the expectation disconfirmation theory (Oliver, 1977, 1981),
which stated that the result of customers perceptions of the difference between their
perceptions of performance and their expectations of performance. Positive
disconfirmation leads to increased satisfaction, with negative disconfirmation having the
opposite effect. Yi (1990) expressed that customers buy products or services with pre-
purchase expectations about anticipated performance, once the bought product or service
has been used, outcomes are compared against expectations. If the outcome matches
expectations, the result is confirmation. When there are differences between expectations
and outcomes, disconfirmation occurs. Positive disconfirmation occurs when product or
service performance exceeds expectations. Therefore, satisfaction is caused by positive
disconfirmation or confirmation of customer expectations, and dissatisfaction is the
negative disconfirmation of customer expectations (Yi, 1990).
While several studies support the disconfirmation paradigm, others do not. For instance,
Churchill and Surprenant (1982) found that neither disconfirmation nor expectations had
any effect on customer satisfaction with durable products.
Weiner (1980, and 1985); and Folkes (1984) proposed the attribution theory, which stated
that when a customer purchases a product or service, if the consumption is below
expectation, the customer is convinced that the supplier causes the dissatisfaction. The
complaining customer is focused on restoring justice and the satisfaction outcome is
driven by perceived fairness of the outcome of complaining.

Westbrook and Reilly (1983) proposed the value-percept theory, which defines
satisfaction as an emotional response caused by a cognitive-evaluative process, which is
the comparison of the product or service to one's values rather than an expectation. So,
satisfaction is a discrepancy between the observed and the desired.
Hoyer and MacInnis (2001) said that satisfaction can be associated with feelings of
acceptance, happiness, relief, excitement, and delight. There are many factors that
affect customer satisfaction.
According to Hokanson (1995) these factors include friendly employees, courteous

employees, knowledgeable employees, helpful employees, accuracy of billing, billing
timeliness, competitive pricing, service quality, good value, billing clarity and quick
service.
Fisk and Young (1985); Swan and Oliver (1985) proposed the equity theory, which stated
that individuals compare their input and output ratios with those of others and feel
equitable treated. Equity judgement is based on two steps; first, the customer compares
the outcome to the input and secondly, performs a relative comparison of the outcome to
the other party.

CHAPTER- III
INDUSTRY PROFILE

Introduction to telecom industry
Indias telecommunication network is the second largest in the world based on the total
number of telephone users (both fixed and mobile phone). It has one of the lowest call
tariffs in the world enabled by the mega telephone networks and hyper-competition
among them. It has the world's third-largest Internet user-base. According to the Internet
and Mobile Association of India (IAMAI), the Internet user base in the country stood at
190 million at the end of June, 2013. Major sectors of the Indian telecommunication
industry are telephony, internet and television broadcast Industry in the country which is
in an ongoing process of transforming into next generation network, employs an
extensive system of modern network elements such as digital telephone
exchanges, mobile switching centre, media gateways and signaling gateways at the core,
interconnected by a wide variety of transmission systems using fiber-optics or
Microwave networks. The access network, which connects the subscriber to the core, is
highly diversified with different copper-pair, optic-fiber and wireless technologies. DTH,
a relatively new broadcasting technology has attained significant popularity in the
Television segment. The introduction of private FM has given a fillip to the radio
broadcasting in India. Telecommunication in India has greatly been supported by
the INSAT system of the country, one of the largest domestic satellite systems in the
world. India possesses a diversified communications system, which links all parts of the
country by telephone, Internet, radio, television and satellite.
Indian telecom industry underwent a high pace of market liberalization and growth since
the 1990s and now has become the world's most competitive and one of the fastest
growing telecom markets. The Industry has grown over twenty times in just ten years,
from under 37 million subscribers in the year 2001 to over 846 million subscribers in the
year 2011.India has the world's second-largest mobile phone user base with over 929.37
million users as of May 2012.It has the world's third-largest Internet user-base with over
137 million as of June 2012.

The total revenue of the Indian telecom sector grew by 7% to 2832

billion (US$44 billion) for 201011 financial year, while revenues from telecom
equipment segment stood at 1170 billion (US$18 billion).
Telecommunication has supported the socioeconomic development of India and has

played a significant role to narrow down the rural-urban digital divide to some extent. It
also has helped to increase the transparency of governance with the introduction
of governance in India. The government has pragmatically used modern
telecommunication facilities to deliver mass education programmes for the rural folk of
India.
Evolution of the industry-important milestones
1. Pre-1902 Cable telegraph
2. 1902 First wireless telegraph station established between Sagar
Island and Sandhead.
3. 1907 First Central Battery of telephones introduced in Kanpur.
4. 19131914 First Automatic Exchange installed in Shimla.
5. 1927 Radio-telegraph system between the UK and India, with Imperial Wireless
Chain beam stations at Khadki and Daund. Inaugurated by Lord Irwin on 23 July by
exchanging greetings with King George V.
6. 1933 Radiotelephone system inaugurated between the UK and India.
7. 1953 12 channel carrier system introduced.

8. 1960 First subscriber trunk dialing route commissioned
between Lucknow and Kanpur.
9. 1975 First PCM system commissioned between Mumbai City
and Andheri telephone exchanges.
10. 1976 First digital microwave junction.
11. 1979 First optical fibre system for local junction commissioned at Pune.
12. 1980 First satellite earth station for domestic communications established
at Sikandarabad, [Uttar Pradesh|U.P.] Noida Sector 62SCMS].
13. 1983 First analogue Stored Programme Control exchange for trunk
lines commissioned at Mumbai.
14. 1984 C-DOT established for indigenous development and production
of digital exchanges.
15. 1995 First mobile telephone service started on non-commercial basis on 15 August
1995 in Delhi.
16. 1995 Internet Introduced in India starting with laxmi nagar delhi on 15 August
1995
17. In 1997, the government set up TRAI (Telecom Regulatory Authority of India)
which reduced the interference of Government in deciding tariffs and policy making.
The political powers changed in 1999 and the new government under the leadership
of Atal Bihari Vajpayee was more pro-reforms and introduced better liberalization
policies. In 2000, the Vajpayee constituted the Telecom Disputes Settlement and
Appellate Tribunal (TDSAT) through an amendment of the TRAI Act, 1997.The
primary objective of TDSAT's establishment was to release TRAI from adjudicatory

and dispute settlement functions in order to strengthen the regulatory framework. Any
dispute involving parties like licensor, licensee, service provider and consumers are
resolved by TDSAT. Moreover, any direction, order or decision of TRAI can be
challenged by appealing in TDSAT.The government corporatized the operations wing
of Dot on 1 October 2000 and named it as Department of Telecommunication
Services (DTS) which was later named as Bharat Sanchar Nigam Limited (BSNL).
The proposal of raising the stake of foreign investors from 49% to 74% was rejected
by the opposite political parties and leftist thinkers. Domestic business groups wanted
the government to privatize VSNL. Finally in April 2002, the government decided to
cut its stake of 53% to 26% in VSNL and to throw it open for sale to private
enterprises. TATA finally took 25% stake in VSNL.
18. This was a gateway to many foreign investors to get entry into the Indian Telecom
Markets. After March 2000, the government became more liberal in making policies
and issuing licenses to private operators. The government further reduced license fees
for cellular service providers and increased the allowable stake to 74% for foreign
companies. Because of all these factors, the service fees finally reduced and the call
costs were cut greatly enabling every common middle-class family in India to afford a
cell phone. Nearly 32 million handsets were sold in India. The data reveals the real
potential for growth of the Indian mobile market. Many private operators, such
as Reliance Communications, Tata Indicom, Vodafone, Loop
Mobile, Airtel, Idea etc., successfully entered the high potential Indian telecom
market.
19. In March 2008 the total GSM and CDMA mobile subscriber base in the country was
375 million, which represented a nearly 50% growth when compared with previous
year. As the unbranded Chinese cell phones which do not have International Mobile
Equipment Identity (IMEI) numbers pose a serious security risk to the
country, Mobile network operators therefore suspended the usage of around 30
million mobile phones (about 8% of all mobiles in the country) by 30 April. Phones
without valid IMEI cannot be connected to cellular operators.56 years the average

monthly subscribers additions were around 0.05 to 0.1 million only and the total
mobile subscribers base in December 2002 stood at 10.5 millions. However, after a
number of proactive initiatives taken by regulators and licensors, the total number of
mobile subscribers has increased rapidly to over 929 million subscribers as of May
2012.
20. India has opted for the use of both the GSM (global system for mobile
communications) and CDMA (code-division multiple access) technologies in
the mobile sector. In addition to landline and mobile phones, some of the companies
also provide the WLL service. The mobile tariffs in India have also become lowest in
the world. A new mobile connection can be activated with a monthly commitment of
US$0.15 only. In 2005 alone additions increased to around 2 million per month in
200304 and 200405

Market share of public and private industry

After the Government of India gave up its monopoly in the telecom sector in 1992 the
growth of the telecom industry was slow due to lack of roust policy. However, with the
change in the policy and licensing regime in the 1999, it is evident from the above graph
that the telecom industry recorded a phenomenal growth. There was 35 per cent growth
in the compounded annual growth rate (CAGR).
Wireless
The pie chart clearly shows that currently the private sector dominates the cellular
market. However, this was not the case in the beginning. The changes in the market
structure were due to the changes in telecom policy in 1999. The growth rate of number
of wireless subscribers from 1996-2011, we can clearly depicts the growth in wireless

subscribers after the change in policy in 1999. Currently, the three main players in the
mobile services sector are Vodafone, Reliance and Bharti -airtel.
The Global Cellular Mobile Industry
Global telecom sector
Earnings visibility
Earnings growth is being driven my improving pricing conditions, stabilizing operating

trends, aggressive cost cutting initiatives, a positive regulatory environment, strong

wireless growth, and new market opportunities. This has translated into greater visibility
of forward earnings as evidenced by recent increased analyst upgrades within the sector.
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 compare 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 technology, expansion in emerging markets. Broadband penetration has
been accelerating as internet customers are seeking faster downloads for audio and video
file, 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 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
It has become less difficult to find attractive telecom investment opportunities globally
than it was a year ago. As the fog has lifted from the sector, there are increased
opportunities within both the growth and value spaces.
Definition of cellular/mobile phone
The cellular telephone (commonly mobile phone or hand phone) is a long- range,
portable electronic device used for mobile communication. In addition to the standard
voice function of a telephone,
THE GLOBAL CELLULAR INDUSTRY
The global mobile phone industry is based on many different manufacturers and
operators. The industry is based on advanced technology and many of the manufacturers
are operating in different industries, where they use their technological skills, distribution
network, market knowledge and brand name. Four large manufacturers of mobile phones
are today dominating the global mobile phone industry & networks; Nokia, Sony,
Samsung, LG. Airtel, BSNL, Idea, Vodafone and others. In addition to these companies
there are many manufacturers that operate globally and locally.

Skills of Marketers
Marketers have 4 main skill sets that they bring to an enterprise:
1. Opportunity identification: Marketing begins before there is a product to sell.

Many people think marketing is just selling whatever comes out of the
manufacturing plant. Its the job of marketing to decide WHAT comes out of the
manufacturing plant in the first place. Before a business can make money there
must be opportunities for money to be made and its marketings job to define what
those opportunities are. Marketers analyze markets, market gaps, trends, products,
competition, and distribution channels to come up with opportunities to make
money.
2. Competitive strategy/positioning:
Markets consist of groups of competitors competing for a customers business.
The job of marketing is to decide how to create a defensible sustainable
competitive advantage against competitors. Marketers conceive strategies, tactics,
and business models to make it hard if not impossible for competition to take
customers from their business.
3. Demand generation/management:
Its the job of marketing to create and sustain demand for a companys products.
Marketers manage demand for a companys products by influencing the probability and
frequency of their customers purchase behavior.
4. Sales:
The ultimate goal of marketing is to make money for a business. In most companys sales
is a different discipline and department from marketing. But in order for sales people to

have any lone term success in a company they must be led by marketing. The better job a
company does of identifying opportunities, creating a differential sustainable competitive
advantage, and generating demand for their products the easier it will be for sales people
to make sales.
Method to measure customer satisfaction
Companies use the following methods to measure customer satisfaction.

1. Complaints and suggestion system: companies obtaining complaints through their
customer service center, and further suggestions were given by customers to
satisfy their desire.
2. Customer satisfactory surveys
Responsive companies obtain a direct measure of customer satisfaction by

periodic surveys. They send questionnaire to random sample of their customers
to find out how they feel about various aspects of the companys performance
and also solicit views on their competitors performance. It is useful to
measure the customers willingness to recommend the company and brand to
other persons.
3. Lost customer analysis.
Companies should contact customers who have stopped buying or who have
switched to another supplier to learn why this happened.
4. Consumer behavior Vs consumption behavior

Consumer behavior refers to the manner in which an individual reaches

decision related to the selection, purchase and use of goods and services.
Walters and Paul says that, consumer behavior is the process whereby the
individual decides what, when, how and from whom to purchase goods and
services.
Consumer behavior relates to an individual person (micro behavior) where as
consumption behavior relates to and to the mass or aggregate of individuals
(macro behavior) consumers behavior as a study focuses on the decision
process of the individual consumer or consuming unit such as the family.
In contrast the consumption behavior as a study is to do with the explanation of

the behavior of the aggregate of consumers or the consuming unit. Consumer is
a pivot, around which the entire system of marketing revolves. The study of
buyer behavior is one of the most important keys to successful mark.

Telecom industry in India
Telecom is one of the fastest-growing industries in India. Today India stands as the
second-largest telecommunications market in the world. The mobile phone industry in
India would contribute US$ 400 billion in terms of gross domestic product (GDP) of the
country in 2014. This sector which is growing exponentially is expected to generate
about 4.1 million additional jobs by 2020, as per Groupe Speciale Mobile Association
(GSMA).
In the period April 2000 to January 2014, the telecom industry has got in foreign direct
investments (FDI) of about US$ 59,796 million, which is an increase of 6 per cent to the
total FDI inflows in terms of US$, as per report published by Department of Industrial
Policy and Promotion (DIPP).
Indias global system for mobile (GSM) operators had 4.14 million rural subscribers as of
January 2014, bringing the total to 285.35 million.
Data traffic powered by third generation (3G) services grew at 146 per cent in India
during 2013, higher than the global average that saw usage double, according to an M Bit
Index study by Nokia Siemens Networks (NSN).
India's Smartphone market grew by 171 per cent in 2013, to 44 million devices from 16.2
million in 2012, as per research firm IDC India. The increasing popularity of bring-your-
own-device (BYOD) in the workplace is further adding momentum to the Smartphone
market.

Indian telecom industry has grown from a tele-density of 3.58% in March 2001 to 74% in
June 2013. This great leap in both numbers of consumers as well as revenues from
telecom services has not only provided sufficient contribution in Indian GDP growth but
also provided much needed employment to India youth.
History of Indian Telecommunication
The history of Indian telecom can be started with the introduction of telegraph. The
Indian postal and telecom sectors are one of the worlds oldest. In 1850, the first
experimental electric telegraph line was started in West Bengal. In 1851, it was opened
for the use of the British. The Posts and Telegraphs department occupied a small corner
of the Public Works Department at that time.
The construction of 4,000 miles (6,400 km) of telegraph lines was started in November
1853. These connected Kolkata (then Calcutta) and Peshawar in the
north; Agra, Mumbai (then Bombay) through Sindwa Ghats, and Chennai (then Madras)
in the south; Ootacamund and Bangalore. William O'Shaughnessy, who pioneered
the telegraph and telephone in India, belonged to the Public Works Department, and
worked towards the development of telecom throughout this period. A separate
department was opened in 1854 when telegraph facilities were opened to the public.
In 1880, two telephone companies namely The Oriental Telephone Company Ltd. and
The Anglo-Indian Telephone Company Ltd. approached the Government of India to
establish telephone exchanges in India. The permission was refused on the grounds that
the establishment of telephones was a Government monopoly and that the Government
itself would undertake the work. In 1881, the Government later reversed its earlier
decision and a license was granted to the Oriental Telephone Company Limited of
England for opening telephone exchanges

at Calcutta, Bombay, Madras and Ahmadabad and the first formal telephone service was
established in the country. On 28 January 1882, Major E. Baring, Member of
the Governor General of India's Council declared open the Telephone Exchanges in
Calcutta, Bombay and Madras. The exchange in Calcutta named the "Central Exchange"
had a total of 93 subscribers in its early stage. Later that year, Bombay also witnessed the
opening of a telephone exchange.
In 1985, the Department of Telecom (DOT) was separated from Indian Post &
Telecommunication Department. DOT was responsible for telecom services in entire
country until 1986 when Mahanagar Telephone Nigam Limited (MTNL) and Videsh
Sanchar Nigam Limited (VSNL) were carved out of DOT to run the telecom services of
metro cities (Delhi and Mumbai) and international long distance operations respectively.
In 1997, the government set up TRAI (Telecom Regulatory Authority of India) which
reduced the interference of Government in deciding tariffs and policy making. The
political powers changed in 1999 and the new government under the leadership of Atal
Bihari Vajpayee was more pro-reforms and introduced better liberalization policies. In
2000, the Vajpayee constituted the Telecom Disputes Settlement and Appellate
Tribunal (TDSAT) through an amendment of the TRAI Act, 1997.The primary objective
of TDSAT's establishment was to release TRAI from adjudicatory and dispute settlement
functions in order to strengthen the regulatory framework. Any dispute involving parties
like licensor, licensee, service provider and consumers are resolved by TDSAT.
Moreover, any direction, order or decision of TRAI can be challenged by appealing in
TDSAT.The government corporatized the operations wing of Dot on 1 October 2000 and
named it as Department of Telecommunication Services (DTS) which was later named
as Bharat Sanchar Nigam Limited (BSNL). The proposal of raising the stake of foreign
investors from 49% to 74% was rejected by the opposite political parties and leftist
thinkers. Domestic business groups wanted the government to privatize VSNL. Finally in
April 2002, the government decided to cut its stake of 53% to 26% in VSNL and to throw
it open for sale to private enterprises. TATA finally took 25% stake in VSNL.

This was a gateway to many foreign investors to get entry into the Indian Telecom
Markets. After March 2000, the government became more liberal in making policies and
issuing licenses to private operators. The government further reduced license fees
for cellular service providers and increased the allowable stake to 74% for foreign
companies. Because of all these factors, the service fees finally reduced and the call costs
were cut greatly enabling every common middle-class family in India to afford a cell
phone. Nearly 32 million handsets were sold in India. The data reveals the real potential
for growth of the Indian mobile market. Many private operators, such as Reliance
Communications, Tata Indicom, Vodafone, Loop Mobile, Airtel, Idea etc.,
The telephony segment is dominated by private-sector and two state-run businesses. Most
companies were formed by a recent revolution and restructuring launched within a
decade, directed by Ministry of Communications and IT, Department of
Telecommunications and Minister of Finance. Since then, most companies
gained 2G, 3G and 4G licenses and engaged fixed-line, mobile and internet business in
India. On landlines, intra-circle calls are considered local calls while inter-circle are
considered long distance calls. Foreign Direct Investment policy which increased the
foreign ownership cap from 49% to 74%.Now it is 100%. The Government is working to
integrate the whole country in one telecom circle. For long distance calls, the area code
prefixed with a zero is dialed first which is then followed by the number (i.e., to
call Delhi, 011 would be dialed first followed by the phone number). For international
calls, "00" must be dialed first followed by the country code, area code and local phone
number. The country code for India is 91. Several international fibre-optic links include
those to Japan, South Korea, Hong Kong, Russia, and Germany. Some major telecom
operators in India include Airtel, Vodafone, Idea, Aircel, BSNL, MTNL, Reliance
Communications, TATA Teleservices, Infotel, MTS, Uninor, Tata docomo, Videocon,
Augere, and Tikona Digital.

CHAPTER-IV
DATA ANALYSIS
&
INTERPRETATION

Customer satisfaction: gap between consumer expectation and companies

performance of telecommunication.
Q1. Which mobile connection do you have?
Particular No. of respondents
IDEA 40
VODAFONE 32
AIRTEL 16
BSNL 12
(Table No: 4.1)

45
40
40
35 32
30
25
20 NO.OF RESPONDENTS
16
15 12
10
5
0
IDEA VODAFONE AIRTEL BSNL
(Figure: 4.1)
Interpretation: - As the area of the study in the Palakkad region, where the market
leader is Idea. Thats why majority of the questionnaire I got filled by Idea. Above data
analysis shows the majority of the market that is approximately 50% is covered by two
market leaders Idea and Vodafone. Minor is BSNL.

Q2. What kind of service you have?
Pre-paid 84
Post-paid 16
(Table No: 4.2)
NO. OF RESPONDENTS
16
PRE-PAID
POST-PAID
86
(Figure: 4.2)
Interpretation: - Above data shows that most of the respondents in the area have pre-
paid connections and I got only 16% questionnaire filled by post-paid users.

Q3. Overall, how would you rate your service provider?
Brands Excellent Good Average Poor Terrible Not sure
Idea 10 20 10 0 0 0
Vodafone 5 15 12 0 0 0
Airtel 1 06 06 03 0 0
BSNL 1 2 4 05 0 0
(Table No: 4.3)
25
20
15 IDEA
VODAFONE
10 AIRTEL
BSNL
5
0
EXCELLENT GOOD AVERAGE POOR TERRIBLE NOT SURE
(Figure: 4.3)
Interpretation: - From the graph it depict that Idea is the most excellent and good
service provider as 10 out of 40 responded believes that the service of the company is
excellent. Then Vodafone has also good rate of excellence and also Vodafone rated as a
good service provider. But the airtel and BSNL are not under good ratings. 5 respondents
of BSNL and 3 of airtel have rated their service provider as poor. BSNL is found to be
worst service provider from all above 12 respondents it should be clear that it is a below
average service provid

Q4- Rank the following VAS which attracted you the most to buy or retain the
mobile service:
Particulars Idea Vodafone Airtel BSNL
SMS Pack 20 9 4 2
Concession call rates 10 15 6 5
Internet service 6 1 4 0
Full Talk time 4 7 2 5

(Table.No:4.4)
25
20
15
SMS pack
Concession call rates
10 Internet service
Full talk time
5
0
IDEA VODAFONE AIRTEL BSNL
(Figure: 4.4)
Interpretation: - Above data analysis shows that Idea is being preferred because of its
internet service. And Vodafone because of its concession call rates and full talk-time
VAS. Where Airtel the most because of its concession call rates and internet service. But
BSNL because of its SMS pack mainly and then concession call rates also.

Q5- How long have you used the service of that company?
Brands >1Month 1-6Month 6M-1Year >1Year >3Year
Idea 2 12 7 13 6
Vodafone 1 3 11 13 4
Airtel 2 3 7 3 1
BSNL 2 2 3 3 2
(Table No: 4.5)
14
12
10
IDEA
8
VODAFONE
6 AIRTEL
4 BSNL
0
>1Month 1-6Month 6M-1Year >1Year >3Year
(Figure: 4.5)
Interpretation: - Above table analysis depicts that most of the users are using their
telecom service from last 1 year. Some of the users are also using it from last 3 year,
where majority of the users are Idea connection holders. Most of the Vodafone users are
using it from last 6 months. Very few respondents are new users of their services.

Q6- Overall, how much satisfied are you, with network service of your
company?
Brands Highly Satisfied Neutral Dissatisfy Highly

satisfied dissatisfy
Idea 10 30 0 0 0
Vodafone 5 22 5 0 0
Airtel 2 12 2 0 0
BSNL 2 2 2 6 0
(Table No: 4.6)
35
30
25
Idea
20
Vodafone
15 Airtel
10 BSNL
0
Highly satisfied Satisfied Neutral Dissatisfy Highly dissatisfy
(Figure: 4.6)
Interpretation: - above table data analysis shows that the satisfaction rate of network
service is leaded by Idea as not a single user of service is neutral or dissatisfy. And
Vodafone network service satisfaction rate is also good. And it can be also found that
BSNL network service is not good as compare with other competitors as 6 respondents
are found to be not satisfied with the company network service.

Q7- How would you rate the services value for money?
Brands Excellent Good Fair Poor Not sure
Idea 9 24 7 0 0
Vodafone 6 20 6 0 0
Airtel 2 10 4 0 0
BSNL 3 7 2 0 0
(Table No: 4.7)
30
25
20
Idea
15 Vodafone
Airtel
10 BSNL
0
Excellent Good Fair Poor Not sure
(Figure: 4.7)
Interpretation: - Above data and chart analysis depicts that Idea has the highest rating of
value for money. Most of them rated it as excellent and good service provider. Then
Vodafone is also following Idea for the best service provider for value for money. Other
two players Airtel and BSNL have similar performance approximately.

Q8- How satisfied are you with the process of getting your queries resolved?
Brands Highly Satisfied Neutral Dissatisfy Highly

satisfied dissatisfied
Idea 22 18 0 0 0
Airtel 1 1 8 4 2
BSNL 0 2 1 4 5
(Table No: 4.8)
25
20
15 Idea
Vodafone
10
Airtel
BSNL
5
0
Highly satisfied Satisfied Neutral Dissatisfy Highly
dissatisfied
(Figure: 4.8)
Interpretation: - From above data analysis we can say that most of the users, who are
satisfied with their customer care service, and also satisfied with the process of getting
their queries resolved. Idea again has been rated as the best service provider for getting
queries resolved. BSNL is the worst service provider. Results are similar to that of the 10
question analysis.

Q9- The customer care representative was very courteous?
Brands Strongly Somewhat Neutral Somewhat Strongly

disagree disagree agree agree
Idea 0 0 0 17 23
Airtel 0 0 2 6 8
BSNL 8 0 2 2 0
(Table No: 4.9)
25
20
15 Idea
Vodafone
10
Airtel
BSNL
5
0
Strongly Somewhat Neutral Somewhat agree Strongly agree
disagree disagree
(Figure: 4.9)
Interpretation: - Above data analysis shows that most of the users of all companies
found their customer service representatives are courteous. But the result of BSNL is not
good as the users say that they have not talked to their customer care representatives even
for a single time. Some of them have talk but after a lot waiting time. So they are found
not satisfied and rated this question also as dissatisfied. So after studying their views with
a personal discussion we cannot say that the customer care representatives of BSNL are
not courteous.

Q10- The customer care representative was very knowledgeable?
Brands Strongly Somewhat Neutral Somewhat Strongly

disagree disagree agree agree
Idea 0 0 0 12 28
Airtel 0 0 6 5 5
BSNL 8 0 2 2 0
(Table No. 4.10)
30
25
20
Idea
15 Vodafone
10 Airtel
BSNL
5
0
Strongly Somewhat Neutral Somewhat Strongly agree
disagree disagree agree
(Figure: 4.10)
Interpretation: - Above data analysis shows that most of the users of all companies
found their customer service representatives are knowledgeable. But the results of BSNL,
is again not good while comparing to the other competitors. The users were dissatisfied
with the customer care services. So the users cannot to say their customer care
representative is knowledgeable or not. There is a one more finding that is Airtel users 6
of them marked this question as neutral.

Q11- The post-paid connection or pre-paid connection is comfortable for your

usage?
Post-paid 35
Pre-paid 65
(Table No: 4.11)
No.of respondents
Post-paid
Pre-paid
(Figure: 4.11)
Interpretation: - In this data we can see the most of them prefer pre-paid connections
because we can know about the usage. So most of them are prefer the pre-paid
connection but some of them required the post-paid connections to avoid the daily
recharges. The business peoples mostly prefer the post-paid connections.

CHAPTER- V
FINDINGS
SUGGESTIONS
&
CONCLUSION

FINDINGS
From the study based on 100 samples following observations are made.
The study was helpful to figure out the leading operators in the Palakkad region.
It also helped to find the, operators which provides poor services.
Most of the customers preferring prepaid connection that of the postpaid
connection.
Price and network services were the most driving factors for opting a particular
service.
SUGGESTIONS
A good service provider should satisfy the needs of the customer in all means, i.e.,
provide good services for the money we pay.
Service providers should ensure that the new plans and offers reach the customer
in time.
Customer care services should be improved, so as to get information and to clear
queries as soon as possible.
Advertisements in the form of leaflets and palm lets should not be cumbersome.
These should be designed in such way that it will give a easy and better
understanding about the operator.
When the customer will satisfy with the service provider, then only the service
provider get stability in market.

CONCLUSION

ANNEXURE

BIBLIOGRAPHY
References
1. Jallet, Fredric,Yield management, dynamic pricing and CRM in

telecommunications.
2. Debnath, Roma mitra, Benchmarking telecommunication service in India, 2008
3. Robins, fread, The marketing of 3G , 2008
4. Kalwani, Banumathy, customers attitude towards cell phone services, 2006
5. Fernandez, Fronnie, understanding dynamics in an evolving industry: case of
mobile VAS in India,2007
6. Kumar, Kaliyanmoorthy, influence of demographic variables on marketing
strategies in the competitive scenario,2007
7. Seth et,etal, managing the customer perceived service quality for cellular mobile
telephone: an empirical investigation, 2008
8. Tecor,jain, understanding mobile phone usage pattern among college-goers,2008
9. Bhatt, Andre, a study of mobile phone usage among the post graduate
students,2008
10. Chris, Kambitsis, telecom advertising in print media, 2003

APPENDIX
Questionnaire
o Name :
o Age:
o Mobile phone model:
o Occupation:
Q1 - Which mobile connections do you have?
a) Airtel b) Vodafone c)Idea d) BSNL
Q2 - What kind of service you have?
a) Pre-paid b) Post-paid
Q3 Overall, how would you rate your service provider?
a) Excellent b) good c) average d) poor e) terrible f) not sure

Q4 Rank the following VAS which attracted you the most to buy or retain the mobile
service:
a) SMS pack
b) Concession call rates
c) Internet service
d) Full talk time
Q5 How long have you used the service of that company?
a) Less than one month

b) 1 to 6 months
c) 6 months to a year
d) 1 to 3years
e) Over 3 years
Q6 Overall, how much satisfied are you, with network service of your company?
a) Highly satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
e) Highly dissatisfied
Q7 How would you rate the services value for money?
a)Excellent
b) Good
c)Fair

d) Poor
e)Not sure
Q8 How much satisfied are you with the process of getting your queries resolved?
a)Highly satisfied
b) Satisfied
c)Neutral
d) Dissatisfied
e)Highly dissatisfied
Q9 The customer service representative was very courteous?
a)Strongly disagree
b) Somewhat disagree
c)Neutral
d) Somewhat agree
e)Strongly agree
Q10 The customer service representative was knowledgeable?
a)Strongly disagree
b) Somewhat disagree
c)Neutral
d) Somewhat agree
e)Strongly agree

Q11 The post-paid connection or pre-paid connection is most suitable for your usage?
a)Post-paid
b) Pre-paid
If you were not totally satisfied with the customer service, will you please describe the
reasons for your dissatisfaction?
Thank you for spending your precious time on filling the questionnaire for me!

Chapter-I: PROJECT REPORT 2014-2015

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PROJECT REPORT 2014-2015

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 1

According to Philip Kotler, satisfaction is a persons feelings of pressure or

This satisfaction level is a function of difference between perceived performance and

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 2

A successful product can be developed by exploding these opportunities. While

OBJECTIVES OF THE STUDY

1. To study the customer satisfaction towards mobile service providers.

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 3

3. To understand the performance of different brands in the market on various

SCOPE OF THE STUDY

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 4

Sample units taken for the STUDY OF CUSTOMER SATISFACTION TOWARDS

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 5

The sample size taken for this research was 100.

METHOD OF DATA COLLECTION

The data is collected through personally administered questionnaire. The questionnaire

LIMITATIONS OF THE STUDY

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 6

Systematic problem solving which identifies variables and tests relationships

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 7

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 8

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 9

6. Fernandez (2007) in their study titled Understanding Dynamics in an Evolving

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 10

7. Bismut (2006) in his study titled Competition in European Telecom Markets

8. Fredric (2008) analyzed the importance of yield management and discrimination

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 11

Customer satisfaction as a process is defined as an evaluation between what was received

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 12

Satisfaction as a process is the most widely adopted description of customer satisfaction

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 13

According to Hokanson (1995) these factors include friendly employees, courteous

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 14

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 15

Introduction to telecom industry

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 16

The total revenue of the Indian telecom sector grew by 7% to 2832

Telecommunication has supported the socioeconomic development of India and has

Evolution of the industry-important milestones

1. Pre-1902 Cable telegraph

2. 1902 First wireless telegraph station established between Sagar

Island and Sandhead.

3. 1907 First Central Battery of telephones introduced in Kanpur.

4. 19131914 First Automatic Exchange installed in Shimla.

exchanging greetings with King George V.

6. 1933 Radiotelephone system inaugurated between the UK and India.

7. 1953 12 channel carrier system introduced.

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 17

8. 1960 First subscriber trunk dialing route commissioned

between Lucknow and Kanpur.

9. 1975 First PCM system commissioned between Mumbai City

and Andheri telephone exchanges.

10. 1976 First digital microwave junction.

at Sikandarabad, [Uttar Pradesh|U.P.] Noida Sector 62SCMS].

lines commissioned at Mumbai.

14. 1984 C-DOT established for indigenous development and production

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 18

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 19

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 20

Market share of public and private industry

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 21

The Global Cellular Mobile Industry