LOVELY PROFESSIONAL UNIVERSITY

SYNOPSIS OF CONSUMER BEHAVIOUR

TOPIC: TO MEASURE BRAND LOYALTY OF

STUDENTS’ TOWARDS BSNL

SUBMITTED BY: SUBMITTED TO:

AMIT JHA MR. AMIT LAL
ROLL- B40
SEC- T1901
INTRODUCTION
BSNL
Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest Telecommunications
Company providing comprehensive range of telecom services in India: Wireline, CDMA mobile,
GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN
Services etc. Presently it is one of the largest & leading public sector unit in India.

BSNL has installed Quality Telecom Network in the country and now focusing on improving it,
expanding the network, introducing new telecom services with ICT applications in villages and
wining customer's confidence. Today, it has about 46 million line basic telephone capacity, 8
million WLL capacity, 52 Million GSM Capacity, more than 38302 fixed exchanges, 46565
BTS, 3895 Node B ( 3G BTS), 287 Satellite Stations, 614755 Rkm of OFC Cable, 50430 Rkm
of Microwave Network connecting 602 Districts, 7330 cities/towns and 5.6 Lakhs villages.

BSNL is the only service provider, making focused efforts and planned initiatives to bridge the
Rural-Urban Digital Divide ICT sector. In fact there is no telecom operator in the country to beat
its reach with its wide network giving services in every nook & corner of country and operates
across India except Delhi & Mumbai. Whether it is inaccessible areas of Siachen glacier and
North-eastern region of the country. BSNL serves its customers with its wide bouquet of telecom
services.

BSNL is numero uno operator of India in all services in its license area. The company offers vide
ranging & most transparent tariff schemes designed to suite every customer.
BSNL cellular service, CellOne, has 55,140,282 2G cellular customers and 88,493 3Gcustomers
as on 30.11.2009. In basic services, BSNL is miles ahead of its rivals, with 35.1 million Basic
Phone subscribers i.e. 85 per cent share of the subscriber base and 92 percent share in
revenue terms.

BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet Customers who
access Internet through various modes viz. Dial-up, Leased Line, DIAS, Account Less
Internet(CLI). BSNL has been adjudged as the NUMBER ONE ISP in the country.

BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure that
provides convergent services like voice, data and video through the same Backbone and
Broadband Access Network. At present there are 0.6 million DataOne broadband customers.
The company has vast experience in Planning, Installation, network integration and Maintenance
of Switching & Transmission Networks and also has a world class ISO 9000 certified Telecom
Training Institute.

Scaling new heights of success, the present turnover of BSNL is more than Rs.351,820
million (US $ 8 billion) with net profit to the tune of Rs.99,390 million (US $ 2.26 billion) for
last financial year. The infrastructure asset on telephone alone is worth about Rs.630,000
million(US$14.37billion).

The turnover, nationwide coverage, reach, comprehensive range of telecom services and the
desire to excel has made BSNL the No. 1 Telecom Company of India.

REVIEW OF LITERATURE
Rachel WY Yee, Andy CL Yeung, TC Edwin Cheng(March 2010) Taking an operational
perspective on the relations between employee loyalty and business performance, we examine
the relationships among employee loyalty, service quality, customer satisfaction, customer
loyalty and firm profitability, and the contextual factors influencing these relationships. We
developed a research model grounded in the service-profit chain notion of Heskett et al. (1994)
and empirically tested the model by conducting a survey of 210 high-contact service shops in
Hong Kong. Using structural equation modeling (SEM), we observed that employee loyalty is
significantly related to service quality, which in turn impacts customer satisfaction and
customer loyalty, ultimately leading to firm profitability in high-contact service industries.
Using multiple-group analysis of SEM, we found that the effect of employee loyalty on firm
profitability through service quality, customer satisfaction and customer loyalty is robust
under different scenarios of employee-customer contact level, market competitiveness, and
switching cost in the sampled shops. This finding supports the generalizability of the observed
relationships in various operating contexts. Roland Kantsperger, Werner H. Kunz(2010)
The concept of "trust" has gained considerable importance in the field of marketing during the
last decades and is seen as a key mediator of customer relationship marketing. But upon a closer
look at the literature, the construct "trust" is conceptualized and measured very differently. Based
on a literature review and theoretical work, the purpose of this paper is to develop a conceptual
model of consumer trust in a service company, which distinguishes two fundamental dimensions.
Using these dimensions, it is possible to detect different mediating effects of trust in the
customer relationship to the service company. The empirical data support the two-dimensional
model of trust. Further, the two dimensions of trust are mediating the effect of customer
satisfaction (CS) differently. In particular, it is shown that "benevolence" has a significantly
greater influence on customer loyalty than "credibility." Finally, beside CS, the customer's
propensity to trust also influences trust. Tim Jones, Gavin L. Fox, Shirley F. Taylor,
Leandre R. Fabrigar(2010) This paper aims to examine the role of three forms of customer
commitment (normative, affective, and continuance) on a variety of loyalty-related customer
responses. Results of structural equation modeling analyses indicate that affective commitment is
the primary driver of the customer responses and mediates the effects of normative and
continuance commitments. These effects are contingent upon the type of service. S K Chadha,
Deepa Kapoor ( 2009) As the current market place becomes more competitive, consumers tend
to become more and more demanding. Mobile telecommunication service sector in India has been
experiencing the highest growth rate in terms of subscribers and revenues. With the increasing
competition in cellular services, the consumers are demanding more. The main condition for
protecting the subscriber base is to win customer loyalty. This study attempts to examine the
effect of switching cost, service quality and customer satisfaction on customer loyalty in the
mobile telecommunication services. As many as 220 users of GSM services were surveyed in two
cities in India. The data was analyzed by regression analysis. The study shows that the switching
cost, service quality and customer satisfaction have positive association with customer loyalty.
However, the customer satisfaction was found to be the best predictor of customer loyalty.
Jessica Sandin(2009) I sometimes wonder whether product and service departments have any
idea what consumers' brand perceptions are. I have a feeling this sort of research often stays in
brand and marketing teams rather than being more widely shared. This isn't too surprising, as you
can't be aware of everything, and no doubt I've been as guilty as anyone of being a bit brand-
blinkered in the past. The point, though, is that product or service launches can fall down not
because they're bad but because consumers don't relate them to the personality they've assigned
in their minds to the provider. So without having that joined-up knowledge, it's hard to see how
you can make the most of your product development. Andres Kuusik, Urmas Varblane(2009)
The purpose of this paper is to show that the major factors affecting loyalty are dependant on the
level of loyalty of customers. The findings of the study revealed that it is not accurate to treat all
customers equally in terms of methods of increasing their loyalty. The results reveal that four
analysed factors affecting customer loyalty (satisfaction, trustworthiness, image and importance
of relationship) are playing different roles in the different levels of customer loyalty. The overall
satisfaction and importance of a relationship build the foundation of any kind of loyalty. The
reliability of products or trustworthiness of the vendor is most critical for behavioural loyalists
and the image creation is the main tool for getting committed customers. Ponirin, Donald
Robert Scott, Tania Von der Heidt( 2009) This paper examines the relationship between
performance assessed electronic store (e-store) service quality and e-store customer loyalty in an
electronic retailing environment. The research was carried out using a web-based survey method
involving 3 e-stores and 324 e-customers. The survey data was then used to test models of e-store
service quality and e-store customer loyalty and to assess the relationship between them. Six
determinants of performance based service quality for an e-store were tested for validity and
reliability. These determinants were “ease of use”. “empathy”, “merchandise”, “security”,
“product delivery”, and “purchase option”. Customer loyalty determinants that were identified
were “word-of-mouth communication”, “purchase intention” and “complaining behaviour.” A
strong positive association between e-store service quality and e-store customer loyalty was
found.The paper integrates previous literature on service quality and customer loyalty and
develops valid and reliable measures of performance based e-store customer service quality and
e-store customer loyalty. Rosalind McMullan, Audrey Gilmore(2008) The purpose of this
paper is to focus on establishing individuals' levels of loyalty and what sustains and develops
their customer loyalty. This paper recognises the importance customer loyalty has for many
competitive organisations and industries. However there has been less focus on what value
customer's attach to customer loyalty in this context. A two-stage study is presented, establishing
individual levels of loyalty and then identifying the role of mediating effects in loyalty
development. The first stage involved a postal survey, including a 28-item scale, designed to
measure customer loyalty, and its sustainers and vulnerabilities (mediating effects). The second
stage, and the main focus of this paper, uses scores from the loyalty scale (high, medium and low
levels of loyalty) to examine what sustains and develops loyalty amongst differing levels of
development. The findings highlight the importance of identifying, understanding and managing
mediating effects, in the context of loyalty development. The research emphasises the importance
of a differentiated approach to developing and managing customer loyalty by appropriately
rewarding customers at different levels. The findings highlight the need to acknowledge the
importance of reciprocity in terms of which aspects of service customers value. The main
contribution of this paper is that it uniquely identifies an approach to understanding the sustaining
and vulnerability effects mediating customer loyalty development going beyond previous
categorisation attempts. Understanding this approach should lead to effective customer loyalty
management and greater awareness of managing recognition, reciprocity and rewards. Robert
Gee, Graham Coates, Mike Nicholson(2008) The purpose of the paper is to draw together the
salient issues surrounding customer loyalty and customer relationship management (CRM) into a
single coherent discussion. Various schools of academic thought are examined. The paper
concludes with practical implications for managers. The need for businesses to retain customers
is an important issue in today's global marketplace. To retain customers, a business must forge
loyal and long-term relationships with profitable customers. Reasons why customers leave a
company are discussed, and preventative strategies are considered. Loyalty schemes are
considered and their relative merits examined. Inger Roos, Margareta Friman(2008) This study
aims at deepening understanding of the role of emotion in customer switching processes and
identifying the relative frequency of negative discrete emotions in terms of different triggers. The
main finding was that the identified emotions were located in the trigger part of the relationship,
and was expressed by the respondents during the switching process in form of annoyance,
anxiety, disappointment, dissatisfaction, distress, depression, rage, stress and tension.

OBJECTIVES

Primary Objective :

1. To measure brand loyalty of students’ to BSNL.

Seconday Objective:

1. To know the brand image of BSNL

2. To know the factors on which the brand loyalty depends.

3. To open new vistas for further research.

 RESEARCH METHODOLOGY

INTRODUCTION TO RESEARCH METHODOLOGY

Marketing research plays an important role in the process of marketing starting with market
component of the total marketing talks. It helps the firm to acquire a better understanding of the
consumers, the competition and the marketing environment.

THE STUDY

The study is descriptive in nature because I have to measure the brand loyalty of the students
towards BSNL

SAMPLING DESIGN

POPULATION

The population will be the students of Lovely Professional University because of time and money
constraints.

SAMPLING ELEMENT

Individual respondent will be my sampling element.

SAMPLING TECHNIQUE

Judgemental Sampling will be used because of time and money constraint.

SAMPLE SIZE

Sample size will be 100 respondents.

TOOLS FOR DATA COLLECTION

A self-designed questionnaire having structured and unstructured questions will be used to

measure the brand loyalty of students towards BSNL
QUALITATIVE AND QUANTITATIVE RESEARCH AND DATA GATHERING

Primary data will be collected by means of preparing a questionnaire and getting it filled by a
large sample space. These questionnaires will help in drawing conclusions about the case.
Secondary data will be gathered from the books, internet sites, articles and journals on
advertisement. Any new information that could be a source of good learning will be given prime
importance.

DATA ANALYSIS

The primary data mainly collected from the questionnaires helps in reaching a consensus about
the case. The questions have been framed with the primary motive of leading to the case.

Primary and secondary data so collected will be analyzed with the help of various statistical tools.
These tools will be of two basic forms: tabular and graphical presentation. Under the graphical
presentation, tools such as pie-charts, histograms, line graphs, bar diagrams etc. will prove
to be handy.

With the help of the primary and secondary data so collected, along with the various statistical
tools, an analysis will be performed. A conclusion will be drawn based on this analysis. These
tools will thus provide a conclusion for the case so framed.

The options so framed helped in capturing a broad and self sufficient view of all the individuals.
The main motive was to collect the data in an unbiased fashion, analyze the data so collected and
draw a conclusion.

STATISTICAL TOOLS

SPSS AND MS- EXCEL will be used to find out the results.

QUESTIONNAIRE

1. For how long are you using BSNL?

Less than 6 months 6Months to 1 Year

1 Year to 3 Years More than 3 Years

2. Do you use any connection other than BSNL?

 Yes No

3. Are you ready to switch to other telecom provider if they give you a lucrative offer?

Yes No

4. Do you feel that CDMA service is more lucrative than GSM?

Yes No

5. Rate the following factors on a scale of 1-5 (1- Highly Satisfied, 2- Satisfied, 3- Average,
4- Dissatisfied, 5-Highly Dissatisfied)

Call charges

Schemes

Network

Customer Care Service

Value added service

6. Will you recommend anyone else to use BSNL?

Yes No

7. Rate the following telecom providers on a scale of 1-5(1- Very Good, 2- Good, 3-
Average, 4-Bad, 5- Very Bad)

BSNL

Reliance

Tata Docomo

Airtel

Idea
 Vodafone

Aircel

Videocon

8. Is there any suggestion that you would like to give?

________________________________________________________________________
_______________________________________________________________________

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