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A Game of Consolidations
Sprint PCS improved its growth by focusing on the improved wireless services and leasing its network to other carriers. Virgin Mobile Sprint PCS Quest
In 2004, Cingular acquired AT & T wireless. In 2006, AT & T acquired Bellsouth to become the largest telecom giant. Verizon Wireless was formed by the union of Bell Atlantic Mobile, Air Touch Cellular, Prime Co and GTE Wireless. Vodafone has 45% stake in Verizon. On Aug, 12, 2005 Sprint & Nextel completed their merger to become the 3rd largest telecom giant.
T Mobile, 12
AT & T, 30
Sprint Nextel, 23
Key USPs: Verizon, 28 Price and Quality 2 year contract renewals Unlimited Plans and handset subsidies Upgrades to enhanced data networks with 3rd generation handsets. New data services: Photos, videos and other multimedia applications transferred through wifi.
Research Problem: To find the reasons why customers are leaving AT & T.
Data Analysis
Recoding: Lets Recode year of birth into Age Quartiles:
Year of Birth 1970 and later 1960 to 1969 1950 to 1959 1940 and earlier Code 1 2 3 4
101
111
90
100
402
Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 7.338a 7.315 7.110 402 df 3 3 1 Asymp. Sig. (2-sided) .062 .063 .008
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 35.15.
Value
Pearson Chi-Square Likelihood Ratio 32 11 26 21 23 54 33 32 57 26 87 Linear-by-Linear Association N of Valid Cases 24.318a 24.824 7.884 402
df
a. 1 cells (4.5%) have expected count less than 5. The minimum expected count is 4.30.
Total
245
157
402
Inferential Statistics
Do the respondents evaluate AT & T more favorably on high Customer Satisfaction as compared to that of Low Prices?
Paired Samples Statistics Mean Pair 1 Cingular provides high-quality customer service Cingular has lower prices 7.53 N 402 Std. Std. Error Deviation Mean 2.741 .137
5.48
402
2.640
.132
Paired Samples Test Paired Differences 95% Confidence Interval of the Difference Lower 1.751 Upper 2.354 t 13.391 df 401
Mean Pair 1 Cingular provides high-quality customer service Cingular has lower prices 2.052
Inferential Statistics
Derive a Model of the factors determining that AT & T has plans that meet your needs?
Sr. No 1 2 3 4 5 6 Consumer is able to make or receive calls Consumer gets few dropped calls Voice Quality of the calls is very good Cingular has favorable contract requirements Cingular has calling plans that meet consumers' needs Cingular has selection of phones that meet consumers' needs Cingular has error-free billing statement Cingular provides high-quality customer service Cingular has conveniently-located stores Cingular has lower prices .611** .341** .411** .235** .341** .288** .000 .000 .000 .000 .000 .000 Factor Correlation Coeff Sig
7 8 9 10
Regression Model
Model Summary Model 1 R .662a R Square .438 Adjusted R Square .424 Std. Error of the Estimate 2.429
Model
Unstandardized Coefficients B Std. Error .566 .048 .046 .061 .059 .053 .050 .059 .058 .062 .058
Standardized Coefficients Beta .534 .043 -.007 -.078 .218 .076 .000 .054 .036 .020
(Constant) Consumer is able to make or receive calls where he/she lives and travels Consumer gets few dropped calls Voice Quality of the calls is very good Cingular has favorable contract requirements Cingular has calling plans that meet consumers' needs Cingular has selection of phones that meet consumers' needs Cingular has error-free billing statement Cingular provides high-quality customer service Cingular has conveniently-located stores Cingular has lower prices
-.105 .538 .044 -.009 -.092 .248 .089 .000 .064 .051 .025
Initial Eigenvalues % of Cumulative Variance % 37.115 37.115 13.705 9.018 7.585 6.675 6.217 50.819 59.837 67.422 74.096 80.313
Total Variance Explained Extraction Sums of Squared Loadings Total 4.083 1.508 % of Cumulative Variance % 37.115 37.115 13.705 50.819
Rotation Sums of Squared Loadings Total 3.031 2.559 % of Cumulative Variance % 27.557 27.557 23.263 50.819
7
8 9 10 11
.511
.494 .467 .390 .303
4.648
4.494 4.245 3.548 2.752
84.961
89.455 93.700 97.248 100.000
Factor Analysis
Eigen value: The standardized variance associate with a particular factor.
Factor Analysis
Factor 1: Cost and Customer needs centric factors Factor 2: Network Related factors
Rotated Component Matrixa Component 1 Cingular's coverage are meets your needs Consumer is able to make or receive calls where he/she lives and travels Consumer gets few dropped calls Voice Quality of the calls is very good Cingular has favorable contract requirements Cingular has calling plans that meet consumers' needs Cingular has selection of phones that meet consumers' needs Cingular has error-free billing statement Cingular provides high-quality customer service Cingular has conveniently-located stores Cingular has lower prices Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 3 iterations. .223 .086 .167 .221 .775 .719 .479 .619 .668 .432 .730 2 .693 .850 .682 .768 .085 .048 .270 .282 .254 .257 .094
Factor Analysis
Component Transformation Matrix Component 1 1 .769 2 -.639 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. 2 -.639 .769