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CHAPTER -2
Table of Contents
Telecom Services
2.7.1 Promotion 93-96
2.7.2 Service Quality
2.7.3 User Friendly
2.7.4 Relative Benefit
2.7.5 Enjoyment
2.8 An Introduction to Consumer Satisfaction 97
2.9 Success Factors 102
2.9.1 Shall have Factors 102-104
2.9.2 Must have Factors
Steps taken by Telecom service Providers in order to 106
2.10
provide quality services
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when, where and how people prefer or prefer not to buy a particular
product. It takes into consideration and mix together the basics of their
on the buyer from their close group such as friends, reference groups,
learned values, customs and beliefs that serve to direct the members of a
with the use, buying and disposal of services and products including the
going to make. Consumer behaviour is the method which starts with the
stimuli a consumer gains from his surroundings and ends with buying
transaction.
process whereby individuals decide whether what, when, where, how and
these acts”.
why they purchase, what they purchase, when they purchase, how often
future, how they calculate it after the purchase and how they regulate it.
products. Therefore the efforts of marketing focus on the ideas, tasks and
groups and the processes they use to choose, use, dispose and protect
This view of consumer behaviour is wider than the traditional one which
and antecedents of the buying process (Hawkins, 2008)32 this view will
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the individual sets out to predict ways to fulfill the requirement he has
and thoughts. When the process is finished the customer is faced with
satisfaction.
both reception (like the book) and production (like the Kodak camera)‟,
our lives have been greatly affected in both positive and negative ways.
Mobile phones are viewed with scorn as an intrusion in society, yet these
2004)36.
calendaring, etc.
concluded that due to price war among the cellular operators, the
structure from 1991 with special focus on the Asia-Pacific region. It was
discussed that the Indian telecom sector had grown rapidly over the last
ten years but still lagged behind China and other Asian countries in the
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context of investment and tariff rates. The author had further discussed
suggested the scope of future growth in this sector without changing the
existing regime.
Kim et. al. (2004)40 concluded that service providers must focus on
the switching cost in order to increase the customer life time value and
customer retention.
and wireless solutions in today‟s business world as they enable the sales
help of mobile and wireless solutions. They concluded that mobile and
using both pre-paid and post-paid schemes of Airtel network had been
taken for the purpose of the study. Chi-square test had been applied to
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The study revealed that clarity of signals, availability of plan options, call
phones, based on the annual report from J.D. Power and Associates-It
service, service plan options, brand image, cost of services and billing
was further stated that overall customer satisfaction in the American cell
cellular companies.
durable goods or industrial goods (Mellott, 1993)43 What the people are
buying, how they are buying, where and when they are buying, how
much quantity they prefer to buy are all depends on their self-concept,
and many other factors. Those factors may be classifies as internal and
that they can buy the product or not and they also use to think where to
buy the product. Lot of richness will be there in some societies and
people from these types of societies are able to afford in large quantities
and also in shorter intervals. In the poor societies, the consumer can
barely meet their basic needs. Therefore the marketers‟ needs in-depth
study of the internal and external environment and they try to identify
psychological, social and physical actions when people buy, use and
dispose products, ideas, services and practices (Peter and Oslon, 2008)46.
buyers‟ decision process is the vital point that companies and marketers
researchers has to go in depth and also they should ask people how and
this Peter and Olson (2008)49, defined the term as „overt consumer
al.2004)50. The process of buying the goods or services starts first in the
minds of the consumer and then this will lead to the finding of the
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product has been bought or acquired with their relative and pros and
cons. This leads to the internal and external research. Then the process
is followed by the process of decision making for the purchase and using
of the purchased goods. After that, the most important thing is the post
important by the marketers because this gives a clue that whether their
process and all marketing decision are taken based on the assumptions
get benefits for the cost paid by them. The difference between the total
benefit and the total cost constitutes the consumer value. The
superior customer value and that is the basic idea of the marketers
(Radmann, 2005)52. The entire process starts with the analysis of the
market, and this analysis will be done about the consumers, company,
competition and condition which lead to the target market selection. The
similar need sets, to describe each group and to select the target market.
that a total product is offered. This total process creates an image about
the product in the minds of the consumers, and then they will undergo a
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reflect in the sales of the product and in the image of the product or
brand (Michelsen et al., eds. 1999)53. Marketers take efforts and in turn
the consumers are influenced by those efforts. All these lead to the
and then evaluation of that product. After all this process, the outcomes
become familiar with the commodity and what the market may
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(Familiarity→Outlook→Deed)
familiar about the product. Finally, they perform the deed, their
(Deed→Familiarity→Outlook)
(Deed→Outlook→Familiarity)
which the consumers have been brought up. As per (Liefeld, 2004)58,
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there are more than mere cultural aspects which impact consumer
aspects.
The Societal aspects are the reference facets of the consumers, the
The Individual aspects include the age and lifecycle status of the
perspective on items, service, use value and ideas (Hoyer, Macinnis and
simply the manner in consumers buy items such as soap bars, music
establishing how consumers will behave. The era of publicity has brought
about the need for forging a variety of consumer profiles. As per Sammie,
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and outside. They said the consumer‟s brains were a black box that
could agree or reject. This formulation forms the premise for the stimuli
reaction mechanism.
Over the years, the marketing has shifted its dependence on other
aggregated behaviour of market (Evans, 2003)64. This gives the way for
marketing. Even though the marketing kept its focus on the individual
customers but started to borrow more from the behavioral sciences. More
recently, marketing has started to shift its attention away from the
customer.
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consumers have.
the brand.
explore for data. The data can be collected from various sources:
purchase is just one phase of the procedure (Vida, and Reardon, 2008)67.
Even if a buy is not the outcome of the choice making procedure, most
choice does not have to encompass each of the six phases and is usually
as hunger brings about the desire to consume. Similarly the trader can
rouses the consciousness of a lack. For example, if one spots a new pair
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footwear.
data search facilitates the consumer with a lot of choices which can be
continue looking.
ranks at the top. In case the available choices are not enough, the hunt
could vary from the original choice on the basis of the duration that has
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passed from the moment of choice and real time of buying and if the item
is available.
After consuming Indian cuisine one may think that Chinese food could
the data to assess and grade the substitute brands. Here it is significant
cost and quality. Consumers also search for prominent aspects, which
are the ideas that the consumer considers while assessing the brand.
ones which follow. The late majority adjust to the new commodity only
after a majority of individuals have tested it. Ultimately, the laggards are
the final ones that adjust to the new commodity. They are ties to custom
and adjust to new commodities only after it has become a custom itself.
The innovators or pioneers are risky. They like to test new items and are
keener to tolerate perils. They are usually young and well erudite.
This is known as the „black box‟ model since very less is known
about how the human mind functions. It is not possible to see what
occurs in the mind and nobody actually knows what transpires there,
and the primary stages in the decision-taking process which are used by
the clients, but there is no real information related to how clients will
response.
the midst of the consumer taking up the three dissimilar parts such as of
Culture Perception
Subculture Learning
Demographics Memory
Social status Motives
Reference groups Personality
Family Emotions
Marketing activities Attitudes
Source – Jcmc.indiana.edu
with consumer needs in the direction of satisfying the need that leads to
functions can be done into welfare functions and social choice (Adler, Lee
level, to the end of the cycle, and the consumer (Kioumarsi et al., 2011)74
That take account of what they purchase, why they purchase, where they
purchase, how repeatedly they buy, how frequently they utilize, how they
the long run, on the other hand, it is probable that the insights increased
elements that play a role while purchasing an item. Currently the choice
are in the midst of advertisements, news stories, emails which carry a lot
expanded the scope for the consumer to choose. These factors have made
make- this has been stated by Sproles and Kendall. Largely speaking,
procedures.
buyers for leisure, shoppers looking for easy methods of selection, those
college women students in two groups at the Arizona University and used
Meticulousness
Worth recognition
for leisure.
procedure, can help the buyers in identifying the kind of consumers they
are and can also assist the family in organizing their finances better.
Korean students make their choices. Of the eight criteria, seven were
Consciousness about new style was the only criteria that could not
Five of the eight criteria could be relied on and used with reference
to the Chinese example -this was evident when Hiuetc used CSI on 387
1982)82.
& Xiao. Knowledge about various makes, awareness about duration, cost
savvy, standards stressing and data availability were five attributes of the
consumer choice that they identified (Young and Faber, 2000)83. With
available, leisure and luxury, randomness and being on the lookout for
choice that has the largest expected value among many choices by
and goods offered for sale by the institutions of market to satisfy the
are offering quality products which customer‟s values the most. The
customers are satisfied when they get quality products worth the money
the consumers but also affect and cognition. Although a person likes a
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product she/he may not buy it. All consumers are exposed to social
objects; their behaviour, affect and cognition and environment and their
relations between each other. Every single element can affect the other
cultural factors consist of values and culture, social class and subculture
way.
customers‟ family, social roles, small groups, status and reference group
members.
the family life cycle and the age, gender and number of people in
Values
Consumer
Behaviour
Personality Perception
Beliefs Attitude
2.5.1.1. Values:
Values are the consumer's standards set about conduct that arise
specific lifestyle, such as exercise and healthful diet” (Bagozzi & Dholakia
2006)96.
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2.5.1.2. Perception:
by interpretation of an individual.
2.5.1.3. Attitude:
perceptions. The consumer must be first aware of the product and then
view the beliefs and values onto the product and make a decision to
knowledge.
2.5.1.4. Beliefs:
2.5.1.5. Personality:
individual's internal traits and outlooks. Traits mean the usual manner
behaviour.
decide on an choice that has the utmost predictable worth in the midst of
best ever on the increase zone keeping suitable speed in the company of
with the National Vision of 2020. The expansion tempo in the utilization
1993 (Bansal, Voyer 2000)102. As per Lee (2001)103, “The fixed line
penetration ratio had risen to 16.6 per 100 population and 21.0 per 100
Aircel, Vodafone, Idea, Tata, Reliance and many more have gone in the
course of a market assessment stating that they have two options either
through probable bankruptcies. This clearly puts light on the fact that
how the market is being flooded and penetrated by the challengers and
mostly and basically in two areas such as: Fixed line service and cellular
Services. In fixed line MTNL and BSNL have captured most important
divided into two different parts: Code division Multiple Access (CDMA)
None other than Bharat Sanchar Limited (BSNL), with its BSNL
the business. BSNL has been ranked as one of the most important
been operating in India namely Airtel, Aircel and Vodafone. These three
Services (TGS).
TELECOM SERVICES:
2.7.1. Promotion
activities has major target to set a new service or product in the market
products.
bring much developments if these are supplied from time to time and
supplying those services and products whose customers are not wishing
to agree it.
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firm through better system of service delivery. Berry & Seiders (2008)111,
has mentioned that the attributes of product plays a considerable role for
Consumer will not prefer less service or price product at the cost of
conducted. This must not be regarded as the 1st impression fact. Service
and one dimension is taken to seize the idea. There is huge number of
Customers are always asked for quality services and products which in
customers set up an idea for ease of use they are more feasible to agree
the product. It is a similar sense that people prefer that services which
are useful and provides several benefits. The user friendly service and
services. Hence easy to use services will be obtained easily. The common
provider provides its customers. Every day exists with 100s of new
whom services they must adopt and use. The phenomenon is referred as
to adopt and understand new service better than the service it replaces
services adoption.
2.7.5. Enjoyment
services may also need enormous number of data to process and develop.
the supplier on money value basis and how well the rescued products
match all the needs. The services of supplier‟s never reduce after the
which could support them to customize and use the delivered product
business.
retention. The below figure shows the factors influencing the satisfaction
of consumers:
Helpful Employees
Knowledgeable Employees
Billing Timeliness
Billing Clarity
Service quality
service quality, competitive pricing, clarity billing, better value and rapid
culture.
that, there are duo types of features for these companies: (1) shall have
Success Factors
User Acceptance
Successful Application
Fig. 2.10: Success Factors
during niche times, for instance, when waiting for public transport.
or gaming console.
there can‟t be at all treatment done in any case of post – paid bills
applications last for less than one and half minutes on normal. The
example services like caller tunes, GPRS etc. Hence the usability
saving.
fact that the consumer cannot evidently judge the additional profit
a novel application give in. This is for all intents and purposes
advertising has become a trend now in India for fast recognition of the
encouraged, reduced or redefined. Even though there are many media for
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innovative plans are being engaged, models are hired to capture the
for certain value codes which will serve their interests and create more
Grove and Fisk (1997)131 describes that there are 3 major reasons
to help create the image which the marketers desire. The public relations
are gained. Finally Personal selling is also one of the effective form of
distinctive features of the plan along with dropping down the rentals on
monthly basis making it easily accessible and safer. Lessening the plans
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they can draw in more and more new consumers amidst the circle of
services and introduction of new novel and more up gradation in the field
of VAS for the betterment of the user. Besides, the network, both urban
customers to pay money for a mobile phone operator. For that reason,
call rates ought to be designed for more affordable and competitive crowd
periodical basis as per the choice and usage of the upcoming generation.
consumers are specific about telecom services quality and hence service