1
1.1 INTRODUCTION
Communication has been one of the most important aspects of the growth of human society
and culture. Telecommunications, the transmission of signals over a distance for a purpose
of communication, is also very important. It provides business, money and market stability
in the world. The telecom sector is one of the leading contributors to India's flourishing
secured ambiance for the telecom market. It include introduction of Internet telephony
services sector. The opportunities in the Indian telecom sector is increasing at a massive
pace with the introduction of newer and innovative schemes in various sectors and at present
the telecom sector in India is claimed to be one of the major contributors in India's
flourishing economy.
TATA is a rapidly growing business group based in India with significant international
operations. The TATA name is a unique asset representing leadership with trust. TATA
Teleservices spearheads the Group’s presence in the telecom sector. Incorporated in 1996,
TATA Teleservices was the first to launch CDMA mobile services in India with the Andhra
Pradesh circle. TATA Teleservices has established a robust and reliable 3G ready telecom
experienced by customers. The interaction between customers and the delivery system is
effected via alternative contact points; each one of them will be investigated for its impact
on the overall customer satisfaction. That is, the service delivery system can be decomposed
into alternative customer contact points that shape customers' overall judgment about the
2
organization. Each contact point may retain a relative independence concerning criteria of
The objectives of this study are to find the customer’s attitudes towards the TATA Indicom
services and to know the reasons for cancellation of the services. This study helps to find
out the factors affecting purchasing behavior of telecom products and to know customer’s
3
1.2 Objectives of the study
Primary objective:
Secondary objectives:
To know the age and gender wise classification for usage of telecommunication facility.
To find out which all services have been tried by the respondents so far
To find out the attributes that affects the buying behavior of the TATA indicom service
To find out the customer’s opinion about the hand set which provide by TATA Indicom.
Price
Coverage
Sales promotion
Offers
Customer service
4
Staff response
Consumer feedback is providing the market reflections to the marketer. This enables them to
gain awareness about their market performance and customer preference. The conducted
study examined the customer satisfaction status on various service offerings by TATA
Indicom and the major focus has given to draw the reasons behind cancellation of services.
The results related to the said area are an eye opener to the marketer for identifying his gaps
The ruling factors of today’s market is having a common axis named ‘consumer’, who is
deciding the destiny of any firm in the market. Hence the study on related area is having
significance to the selected telecom operator and since it is common to other operators in the
same and related field, the problems that had drawn through the survey may be a reference
for other marketers also. The researcher had gained familiarity and practical exposure to the
real market world through the conducted study. This can also be a secondary source for
other people who plan or are conducting studies in the similar area.
5
CHAPTER II
Profiles
6
2.1 INDUSTRY PROFILE
Introduction
The Indian Telecommunications network with 110.01 million connections is the fifth largest
in the world and the second largest among the emerging economies of Asia. Today, it is the
fastest growing market in the world and represents unique opportunities for U.S. companies
in the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005,
is expected to reach 250 million in 2007. According to Broadband Policy 2004, Government
2007. The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million
in FY2004- 2005. In the last 3 years, two out of every three new telephone subscribers were
wireless subscribers. Consequently, wireless now accounts for 54.6% of the total telephone
subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expected
to bypass 2.5 million new subscribers per month by 2007. The wireless technologies
currently in use are Global System for Mobile Communications (GSM) and Code Division
Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing
mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the
country.
7
Evolution of the industry-Important Milestones
Year
1851 First operational land lines were laid by the government near Calcutta (seat
of British power)
1932 Merger of ETC and IRT into the Indian Radio and Cable Communication
Company (IRCC)
1999 Cellular Services are launched in India. New National Telecom Policy is
adopted.
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A large population, low telephony penetration levels, and a rise in consumers' income and
spending owing to strong economic growth have helped make India the fastest-growing
telecom market in the world. The first and largest operator is the state-owned incumbent
BSNL, which is also the 7th largest telecom company in the world in terms of its number of
services. Subsequently, after the telecommunication policies were revised to allow private
Idea,Vodafone and BPL have entered the space. major operators in India. However, rural
In 2007, an article by Businessweek magazine reported that India's mobile phone market is
the fastest growing in the world, with companies adding some 6 million new customers a
month.
The total number of telephones in the country crossed the 300 million mark on June 18
2008The overall tele-density has increased to 36.98% in March 2009 In the wireless
segment, 15.87 million subscribers have been added in March 2009. The total wireless
subscribers (GSM, CDMA & WLL (F)) base is more than 391.76 million now. The wireline
segment subscriber base stood at 38.22 million with a decline of 0.13 million in October
2008.
Both fixed line and mobile segments serve the basic needs of local calls, long distance calls
and the international calls, with the provision of broadband services in the fixed line
segment and
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GPRS in the mobile arena. Traditional telephones have been replaced by the codeless and
the wireless instruments. Mobile phone providers have also come up with GPRS-enabled
mobile technology is soon going to enter the Indian telecom market. The GSM, CDMA,
WLL service providers are all upgrading them to provide 3G mobile services.
manufacturing. In the beginning, there were only the Siemens handsets in India but now a
whole series of new handsets, such as Nokia's latest N-series, Sony Ericsson's W-series,
Motorola's PDA phones, etc. have come up. Touch screen and advanced technological
handsets are gaining popularity. Radio services have also been incorporated in the mobile
handsets, along with other applications like high storage memory, multimedia applications,
multimedia games, MP3 Players, video generators, Camera's, etc. The value added services
provided by the mobile service operators contribute more than 10% of the total revenue.
Earnings visibility
trends, aggressive cost cutting initiatives, a positive regulatory environment, strong wireless
growth, and new market opportunities. This has translated into greater visibility of forward
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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 compares to 34% in 1990. Trends in bundled services are also paving
the way for additional M&A activity. Sector consolidation will further increase the
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:
penetration has been accelerating as internet customers are seeking faster downloads for
audio and video files. 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.
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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. In the US, improved clarity in the regulatory
environment has opened the door for a number of players. Within Europe the risk of
negative news flow remains a potential detractor but there is valuation support from
attractively priced stocks. There is little difference between the European and US integrated
carriers making it more of a stock call than a regional call. Within Asia we see high revenue
growth and return on assets. Overall, emerging markets continue to be the fastest growing
region within the sector and offer the largest valuation discount. Additionally, the healthy
Our strategy is to create a more focused portfolio of diversified high conviction ideas. In the
companies that will provide synergies as well as margin expansion through wireless
exposure. We recognize the sensitivity of the regulatory environment in some markets and
have minimized our exposure to those markets. We also continue to overweight our
exposure to
niche players within developed markets as well as to emerging markets which have low
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2.2 COMPANY PROFILE
TATA GROUP
TATA is a rapidly growing business group based in India with significant international
operations. Revenues in 2007-08 are estimated at $62.5 billion (around Rs251,543 crore) of
which 61 per cent is from business outside India. The Group employs around 350,000
people worldwide. The TATA name has been respected in India for 140 years for its
The business operations of the TATA Group currently encompass seven business sectors:
consumer products and chemicals. The Group’s 27 publicly listed enterprises have a
combined market capitalisation of some $60 billion, among the highest among Indian
business houses, and a shareholder base of 3.2 million. The major companies in the Group
include TATA Steel, TATA Motors, TATA Consultancy Services (TCS), TATA Power, TATA
The Group’s major companies are beginning to be counted globally. TATA Steel became the
sixth largest steel maker in the world after it acquired Corus. TATA Motors is among the top
five commercial vehicle manufacturers in the world and has recently acquired Jaguar and
Land Rover. TCS is a leading global software company, with delivery centres in the US,
UK, Hungary, Brazil, Uruguay and China, besides India. TATA Tea is the second largest
branded tea company in the world, through its UK-based subsidiary Tetley. TATA Chemicals
is the world.s second largest manufacturer of soda ash. TATA Communications is one of the
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In tandem with the increasing international footprint of its companies, the Group is also
valued the TATA brand at $11.4 billion and ranked it 57th amongst the Top 100 brands in 11
the world. Businessweek ranked the Group sixth amongst the .World.s Most Innovative
Companies. and the Reputation Institute, USA, recently rated it as the .World.s Sixth Most
Reputed Firm.
Founded by Jamsetji TATA in 1868, the TATA Group.s early years were inspired by the
India: steel, power, hospitality and airlines. In more recent times, the TATA Group.s
pioneering spirit has been showcased by companies like TATA Consultancy Services, India.s
first software company, which pioneered the international delivery model, and TATA
Motors, which made India.s first indigenously developed car, the Indica, in 1998 and
recently unveiled the world.s lowest-cost car, the TATA Nano, for commercial launch by end
of 2008.
The TATA Group has always believed in returning wealth to the society it serves. Two thirds
of the equity of TATA Sons, the TATA Group’s promoter company, is held by philanthropic
trusts which have created national institutions in science and technology, medical research,
social studies and the performing arts. The trusts also provide aid and assistance to NGOs in
the areas of education, healthcare and livelihoods. TATA companies also extend social
welfare activities to communities around their industrial units. The combined development-
related expenditure of the Trusts and the companies amounts to around 4 per cent of the
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Going forward, the Group is focusing on new technologies and innovation to drive its
business in India and internationally. The Nano car is one example, as is the Eka
supercomputer (developed by another TATA company), which in 2008 is ranked the world.s
fourth fastest. The Group aims to build a series of world class, world scale businesses in
select sectors. Anchored in India and wedded to its traditional values and strong ethics, the
Group is building a multinational business which will achieve growth through excellence
and innovation, while balancing the interests of its shareholders, its employees and wider
society.
Purpose
At the TATA Group “ our purpose is to improve the quality of life of the communities we
the Group brings a unique set of capabilities. This requires us to grow aggressively in
focused areas of business. Our heritage of returning to society what we earn evokes trust
among consumers, employees, shareholders and the community. This heritage is being
from employees and companies”. The TATA name is a unique asset representing leadership
with trust. Leveraging this asset to enhance Group synergy and becoming globally
The TATA Group has always sought to be a value-driven organization. These values
continue to direct the Group’s growth and businesses. The five core TATA values
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Integrity: We must conduct our business fairly, with honesty and transparency. Everything
Understanding: We must be caring, show respect, compassion and humanity for our
colleagues and customers around the world, and always work for the benefit of the
communities we serve.
Excellence: We must constantly strive to achieve the highest possible standards in our day-
to-day work and in the quality of the goods and services we provide.
Unity: We must work cohesively with our colleagues across the Group and with our
customers and partners around the world, building strong relationships based on tolerance,
and environments in which we work, always ensuring that what comes from the people goes
TATA Teleservices is part of the INR Rs. 2,51,543 Crore (US$ 62.5 billion) TATA Group,
that has over 80 companies, over 3,30,000 employees and more than 3.2 million
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shareholders. With a committed investment of INR 36,000 Crore (US$ 7.5 billion) in
Telecom (FY 2006), the Group has a formidable presence across the telecom value chain.
TATA Teleservices spearheads the Group’s presence in the telecom sector. Incorporated in
1996, TATA Teleservices was the first to launch CDMA mobile services in India with the
Starting with the major acquisition of Hughes Tele.com (India) Limited [now renamed
TATA Teleservices (Maharashtra) Limited] in December 2002 the company swung into an
expansion mode. With the total Investment of Rs 19,924 Crore, TATA Teleservices has
created a Pan India presence spread across 19 circles that includes Andhra Pradesh, Gujarat,
Karnataka, Delhi, Maharashtra, Mumbai, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab,
Haryana,
Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata, Madhya Pradesh
and RoWB.
Having pioneered the CDMA 1X technology platform in India, TATA Teleservices has
established a robust and reliable 3G ready telecom infrastructure that ensures quality in its
services. It has partnered with Motorola, Ericsson, Lucent and ECI Telecom for the
The company, which heralded convergence technologies in the Indian telecom sector, is
today the market leader in the fixed wireless telephony market with a total customer base of
17
TATA Teleservices bouquet of telephony services includes Mobile services, Wireless
Desktop Phones, Public Booth Telephony and Wireline services. Other services include
value added services like voice portal, roaming, post-paid Internet services, 3-way
conferencing, group calling, Wi-Fi Internet, USB Modem, data cards, calling card services
Some of the other products launched by the company include prepaid wireless desktop
phones, public phone booths, new mobile handsets and new voice & data services such as
BREW games, Voice Portal, picture messaging, polyphonic ring tones, interactive
TATA Indicom redefined the existing prepaid mobile market in India, by unveiling their
offering . TATA Indicom .Non Stop Mobile. which allows customers to receive free
incoming calls. TATA Teleservices today has India.s largest branded telecom retail chain and
is the first service provider in the country to offer an online channel Http://www.ichoose.in
TATA Teleservices has a strong workforce of 6000. In addition, TTSL has created more than
20,000 jobs, which will include 10,000 indirect jobs through outsourcing of its manpower
needs.
Today, TATA Teleservices Limited along with TATA Teleservices (Maharashtra) Limited
serves over 27 million customers in more than 6000 towns. With an ambitious rollout plan
both within existing circles and across new circles, TATA Teleservices offers worldclass
Products / Services
landline from TATA Indicom, provides bundled dialup internet access along with Landline
connection. This dialup internet service is activated by default for on customer’s phone, no
Mobile internet:- TATA Indicom offers world-class internet service through the CDMA
network.. Just connect TATA Indicom mobile phone, using a data cable to PC or Laptop &
get started.TATA Indicom Internet through mobile service offers world-class standards for
• No need to buy an external modem since your existing TATA Indicom mobile phone has
one.
• User can receive and make voice calls when no active data transfer takes place.
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Wireless internet it is used with a USB modem, so we can use where ever we go. It provides
Prepaid mobile: In Prepaid service we make an advance payment for the usage i.e. to make
calls and use data services. There are no deposits to be made for STD/ISD. These features
are pre-activated. Also, need not wait for a bill to be generated to know the usage & then
pay accordingly.
Features
• Free SMS
Postpaid mobile: In Postpaid service, the company itself generate the monthly bill to the
customers. TATA Indicom postpaid mobile phone STD call charges are amongst the lowest
in India for distances over 500 km with absolutely no additional-airtime charges Most
importantly, TATA Indicom postpaid mobile phone offers superior voice clarity, congestion-
free networks, high speed data access, and coverage in over 1000 cities.
Mobile handset: TATA Indicom has the widest range of CDMA Handsets to choose from a
range of the top CDMA mobile handsets from Nokia, Samsung, Motorola, Huawei and
Samsung
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Samsung Mpower Muzik
Huawei
Haier
Haier CG100
Indicom
Aurum
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BlackBerry
ZTE
ZTE- CS130
Wireless phones: TATA introduced Walky Talky, are highly economical and easy to use.
• Talk more with 2 hours talk time & 24 hours standby time
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• Make an emergency call, even if your phone is disconnected
• Speaker Phone
• Roam at home
• Save using Group Call across wireline, mobile and wireless phones
Security Features
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• Dial up through an in-built modem
Landline phones: TATA Indicom offers instant phone connections. TATA Indicom Landline
Phone services based on the state of the art Optical Fibre Cable-based backbone.
Accurate billing
TATA indicom have more than 10000 retail outlets in a district. TATA have their own retail
HNI
BRBU
EBS
CMBU
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HNI network is used for selling only postpaid products of TATA Indicom like data cards,
The Enterprise Business Service function drives business growth & customer centricity by
providing telecom related solutions to Corporate Entities. The EBS function also undertakes
customer relationship management and retention along with revenue enhancement and
channel management.
The Branded Retail Business Unit looks after the retail chain of the TATA Indicom
Exclusive stores. Branded retail has a national presence with over 3100 outlets comprising
of 600 TTSL (Company) owned stores and more than 2500 stores in the Franchisee
format Branded Retail outlets have become the touch points for its customers in more than
The Consumer Market Business Unit (CMBU) deals with the large and dynamic pre-paid
segment of the telecom sector. CMBU has always offered to its customers with innovative
offers like Non Stop Mobile (Lifetime Validity) attractive bundled packages (handsets +
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TATA Indicom has many promotional programs like
Television advertisement
Handset Upgrade program for all the individual post paid customers.
TATA Indicom products have different pricing strategies. There are two types of pricing
strategies. They are market skimming and market penetration. Skimming means fixing at
high price and selling to those customers who are less price sensitive. Penetration means
fixing at low price initially. TATA Indicom follows their product by fixing the price at
high.ie; market skimming. The price include the hand set and connection charge
Competitors
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Indicom sec .489 life long USA,Canada,Europe
,Australia, Singapore,
Hongkong,New Zealand
CHAPTER III
27
Literature review And
Theoretical Framework
1) Brand selection
The research study tiltled “factors affecting the brand decision in the mobile phone
industry” in Asia by Liu 2002.This study found that the choice of a cellular phone is
characterized by two attitudes to brands : attitude towards the mobile phone brand on one
hand and attitude towards the network on the other. While price and regularity of service
were found to dominate choice between network providers, choices between mobile phone
brands were affected by new technology features such as memory capacity and SMS –
options, more than size. The brand will actually be not towards smaller phones but towards
2) Consumer satisfaction
encompassing quality of technical service, quality and operational aspects of gadgets and
social /psychological costs due to unsolicited promotional calls /SMS. The analysis in this
report shows that the consumption behavior of the mobile phone users in Delhi and covers
the aspects like usage pattern of the mobile phone services, assessment of the level of
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3) Consumer behavior
The titled named “consumer buying behavior” by Martin Tina; Sam Manaberi [2005]
discussed the industrial purchasing stands for more than half of the whole economic activity
buying activities. The telecommunication industry is a fast growing industry and therefore
interesting to investigate. The purpose of this study was to investigate the characteristics of
industrial buying behaviour in the telecommunication industry. The purpose has been further
developed in forms of research questions dealing with the buying process, buying center and
choice criteria. A case study was made with a customer, to the telecom supplier Ericsson,
from the company HI3G Access, also known as 3. A highly topical company in the third
generation telecom networks with Ericsson as one of their primary suppliers. The conducted
Additional findings involve a small buying center, which is mainly controlled by the
technical and procurement staff and the importance of price as a selection criteria as the
4) Consumer behavior
The article named “consumer buying behavior in mobile phone market in Finland” by
EMAC conference, Track : New Technologies and E – Marketing. The survey conducted
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with 397 consumers and looked at their motives to purchase new mobile phones on one
affecting operator choice on the other. The results indicate that while price and properties
were the most influencial factors affecting the purchase of a new mobile phone, price,
audibility and friends operator were regarded as the most important in the choice of the
mobile phone operator. This paper concludes with a discussion of contributions and
The project study titled “customer buying behavior of mobile phone brands” by Riquelme
(2001. She conducted an experiment with 94 consumers to identify the amount of self –
knowledge consumers have when choosing between mobile phone brands. The study was
build upon six key attributes like telephone features, connection fee , access cost , mobile to
mobile phone rates call rates and free calls related to mobile phone purchasing respondents
had to importance rate. The research shows that consumers with prior experience about a
product can predict their choices relatively well but customers tended to overestimate the
importance of features, call rates, and free call and underestimates the importance of a
monthly access fee, mobile to mobile phones rates and the connection fee.
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6) Consumer perception
The article titled “consumer perception and its choice mobile telecom service provider in
Ali Khatibi, Abdur Raquib, Shameem Al Mahmud. The study aims to find out what are
critical
factors those are playing an important role to select the telecommunication service provider.
Result provides a comprehensive analysis of the important factors for playing an important
role for the customer to select the telecommunication service provider. The analysis
confirms the significant positive relationship of price, service quality, product quality and
availability, and promotional offer for consumer perception. These factors are expected to
have a great role during the time to choose telecommunication service provider. In
conclusion, practitioners can be deriving a better understanding of the activities that are
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3.2 THEORETICAL FRAMEWORK
Consumer
An individual who buys products or services for personal use and not for manufacture or
resale. A consumer is someone who can make the decision whether or not to purchase an
item at the store, and someone who can be influenced by marketing and advertisements
Customer
A person, company, or other entity which buys goods and services produced by another
Customer service
level of customer satisfaction that is, the feeling that aproduct or service has met the
customer expectation.
The needs, wants and preconceived ideas of a customer about a product or service.
might expect to encounter efficiency, helpfulness, reliability, confidence in the staff and a
• Assess your communication style and use two – way communication skills to level with
• Identify specific problems in your customer service program and apply treatment.
Customer satisfaction
Customer satisfaction is a measure of how products and services supplied by the company
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• Have a clear defined customer service policy
• Attention to detail
• Anticipate your client’s needs and go out of your way to help them out
Kano's model of customer satisfaction distinguishes six categories of quality attributes, from
1. Basic Factors. (Dissatisfiers. Must have.) - The minimum requirements which will cause
dissatisfaction if they are not fulfilled, but do not cause customer satisfaction if they are
fulfilled (or are exceeded). The customer regards these as prerequisites and takes these
satisfaction if delivered but do not cause dissatisfaction if they are not delivered. These
factors surprise the customer and generate 'delight'. Using these factors, a company can
3. Performance Factors. The factors that cause satisfaction if the performance is high, and
they cause dissatisfaction if the performance is low. Here, the attribute performance-
overall satisfaction is linear and symmetric. Typically these factors are directly
connected to customers' explicit needs and desires and a company should try to be
competitive here.
4. Indifferent attributes. The customer does not care about this feature.
6. Reverse attributes. The reverse of this product feature was expected by the customer.
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• As senior managers, only know about the tip of the iceberg, a small fraction of all the
• Customer problems can cost not only an immediate lost sale, but also future purchases by
• We can and must quantify the expected payback from service and/or quality improvements.
• The market transaction (sale) often is not the key point of customer pain and lost revenue.
DOING THE JOB RIGHT THE FIRST TIME + EFFECTIVE CUSTOMER SERVICE =
In this pyramid shows customers will be the top most priority and next in importance are
front line people who meet, serve and satisfy customers ; under them are the middle
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managers, whose job is to support the front – line people so they can serve customers well
and at the base is top management, whose job is to hire and support good middle managers.
Customer behavior
Customer behavior is to know about the customer’s way to obtain, use and dispose products.
It's important for marketing to know the customer behavior by using different strategies.
There are so many different ways to influence customers like new products, promotions,
Customer behavior analysis is based on consumer buying behaviour, with the customer
playing the three distinct roles of user, payer and buyer. Relationship marketing is an
influential asset for customer behaviour analysis as it has a keen interest in the re-discovery
of the true meaning of marketing through the re-affirmation of the importance of the
Customer-Focused Marketing
All marketing is done with the customer in mind. Marketing can in fact be referred to as an
on-going conversation occuring between business and customer. It is therefore necessary for
businesses to gain in-depth knowledge of their relative customers so that the best marketing
strategies can be employed in order to attract these potential buyers. This can effectively be
36
retention. Listed below are a number of tips to aid businesses striving towards customer
1. Marketing as a Conversation:
Direct interaction with customers is necessary to essentially find out what it is that they are
wanting. This marketing conversation involves a process running from action - reaction -
feedback - repeat. Businesses need to be willing to take the time to listen to their customers
as this can ensure a business of putting something up for offer which is of great worth
amongst their targeted consumers, and is relative to their particular needs and desires. It is
required for businesses to constantly perform marketing promotion so that these customers
will come back for more. Giving satisfaction to first-time buyers can prove effective for a
business in the long-run for the reason that by giving customers what they desire the first
time round, customer retention is encouraged through this form of customer loyalty.
2. Active Customers:
Making customers feel as though they are in control is an effective strategy in customer-
focused marketing. This is done by transforming consumers into active customers who are
given the ability to make choices for themselves by actively engaging in promotions and,
hereby, deciding on the best possible products and services their money can buy. Customer
retention is encouraged through this interaction with customers which aids in customer
loyalty. Businesses need to make each and every one of their customers feel good about
37
something to do. Therefore, retaining customers means keeping them happy by keeping
them active.
This is most effectively done through an analysis of the actual behaviour of past and present
(which are implied consumer characteristics). Actual behaviour is, as such, better at
predicting the future which is done by keeping a watch over the actions customers perform
with regard to online purchases and the products they purchase over the Internet.
Businesses need to take their budget into consideration when allocating resources for
generate higher profits than others and data therefore needs to be created by interacting with
customers in order to consequentially identify the most profitable promotions, which will be
delivered to the right customer at the right time, without wasting time or money. Hereby,
effective
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marketing means avoiding unprofitable promotion which will as such mean not reaching the
Process by which individual search for select, purchase, use and dispose of goods and
Types
Minor new purchase – these purchases represent something new to a consumer but in the
customer’s mind is not a very important purchase in terms of need, money or other reason.
Minor re- purchase – these are the most routine of all purchase and often the consumer
returns to purchase the same product without giving much thought to other product options.
Major new purchase – these purchases are the most difficult of all purchase because the
product being purchased is important to the consumer but the consumer has little or no
previous experience making new decisions. The consumer’s lack of confidence in making
this type of decision often requires the consumer to engage in an extensive decision making
process
Major repurchase – the purchase decision are also important to the consumer feels confident
in making these decisions since they have previous experience purchasing the product
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Six Stages to the Consumer Buying Decision Process .
actual condition were deficient? I.E., see a commercial for a new pair of shoes, stimulates
2. Information search--
o External search if you need more information. Friends and relatives (word of mouth).
3. Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer wants
purchase etc.
5. Purchase--May differ from decision, time lapse between 4 & 5, product availability.
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6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance,
have you made the right decision. This can be reduced by warranties, after sales
communication etc.
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Maslow’s hierarchy of needs
following;
42
• Awareness
• Current usage
Customer loyalty
The term customer loyalty is used to describe the behavior of repeat customers, as well as
those that offer good ratings, reviews, or testimonials. Some customers do a particular
company a great service by offering favorable word of mouth publicity regarding a product,
telling friends and family, thus adding them to the number of loyal customers.
1. Communicate: - Whether it is an email newsletter, monthly flier, a reminder card for a tune
2. Customer Service: - Go the extra distance and meet customer needs. Train the staff to do
3. Employee Loyalty: - Loyalty works from the top down. If managers are loyal to the
employees, they will feel positively about their jobs and pass that loyalty along to
customers.
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4. Employee Training: - Train the employees and interact with customers. Empower
6. Product Awareness: - Know what y steady patrons purchase and keep those items in stock.
something goes wrong, let customers know immediately and compensate them for their
inconvenience.
9. People over Technology: - The harder it is for a customer to speak to a human being when
he or she has a problem, the less likely it is that you will see that customer again.
10. Know Their Names: - Remember the theme song to the television show Cheers? Get to
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This model is developed by Schelsinger and Heskett (1991). In this model explains that
effort spent in selecting and training employees and creating a corporate culture in which
they are empowered can lead to increased employee satisfaction and employee competence.
This will likely result in superior service delivery and customer satisfaction. This in turn
will create customer loyalty, improved sales levels and higher profit margins.
Train all relevant personnel how to answer and deal with telephone calls.
They should apologise, be sympathetic, listen, establish the facts, agree what to do and then
do it
Keep customers informed about any problems, and make it easy for them to contact
Use your website to give customers the services and information they want.
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A good database system can help you record, organise and plan your contact with
customers.
Make sure information from your website can be transferred to your main database.
Contact management software may be a useful tool if you have a lot of high-value customer
accounts.
Company will need to explain the advantages of the system to employees, and provide
If use computerised telephone systems, give customers the option of talking to an operator
at any time.
Customer retention
Customer Retention is the activity that a selling organization undertakes in order to reduce
customer defections. Successful customer retention starts with the first contact an
organization has with a customer and continues throughout the entire lifetime of a
relationship. A company’s ability to attract and retain new customers, is not only related to
its product or services, but strongly related to the way it services its existing customers and
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Customer retention rate: -- The customer retention rate refers to the number of customers
lost over a period of time. It is normally calculated by the percentage of lost customers
versus existing customers over a quarterly or annual period, without tallying new customer
acquisitions
Customer lifetime value enable an organization to calculate the net present value of the
profit an organization will realize on a customer over a given period of time. Retention Rate
is the percentage of the total number of customers retained in context to the customers that
Customer perception
produce meaning. IE we chose what info we pay attention to, organize it and interpret it.
Information inputs are the sensations received through sight, taste, hearing, smell and
touch.
to an event, satisfies current needs, intensity of input changes (sharp price drop).
beliefs.
• Selective Retention-Remember inputs that support beliefs, forgets those that don't.
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Factors influencing perception
Factors
Factors in the
Factors in the Factors in the
target
perceiver situation
48
CHAPTER IV
Research methodology
RESEARCH METHODOLOGY
making deductions and reaching conclusions; and at last carefully testing the conclusions to
Descriptive research :-
The research study is conducted through descriptive research. Descriptive research design is
a scientific method which involves observing and describing the behavior of a subject
without influencing it in any way or to identify the cause of something that is happening.
For instance, this research could be used in order to find out what age group is buying a
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particular Brand of the product, where a company’s market share differs between
conducting the research must comply with strict research requirement in order to obtain the
A research design is the determination and statement of the general research approach or
Sample size
The number of sample is 110 from kottayam city, which fulfills the requirement. Each
Sampling design
Convenience sampling is used for this study. Convenience sampling is used in exploratory
truth. As the name implies, the sample is selected because they are convenient. This non
probability method is often used during preliminary research efforts to get a gross estimate
of the results, without incurring the cost or time required to select a random sample.
For the accumulation of data the sources were primary and secondary data.
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Primary Data:
These data are raw material. They are the measurement observed and recorded as a part of
original study. They are original in character. The investigator or researcher directly collects
this data. The basic form of obtaining this data is by observing and questioning.
The Primary data was a detailed interview schedule with the help of a detailed
questionnaire. The samples were drawn purposively from various areas for the relevance of
the study. Discussions were held with the general, branch manager and executives of the
Secondary Data:
They are not originally drawn by the researcher as fresh data. These are collected by some
other person for this purpose and published. These types of data can be collected through
various sources.
For this study the secondary data were collected from magazines ,journals , references and
Percentage analysis and statistical tools were used in the study. The statistical tools used for
data analysis are Rank correlation and hypothesis testing. ANOVA and t – test had applied
Rank Correlation =
If Rank Correlation is negative we can say that there is no correlation between the variable,
if rank correlation is positive we can say that there is a relation between the variable, if the
Rank correlation is less than.06 we can say that there is a low degree of relation between the
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variable, if rank correlation greater than .06 we can say that there is high degree of relation
between the variables and if Rank Correlation is very nearer to 1 such as .99 we can say that
The study was conducted among the consumers of Kottayam District. The duration of the
• This will helps to identify the customer’s preferences and their complaints towards the
company.
• The study will helps to the company for identifying the customer’s needs and wants.
• Lack of Universal application: - since the study had been conducted only in a selected
region and only in telecom consumers, the applicability of the study in different region and
• Probability based study: - Study is being done with the aid of Convenience sampling. Hence
the entire customers had not been considered for their feedback and the inference drawn on
• Business of the respondents: - Walk in respondents were busy with their schedule and
hesitate to cooperate with the researcher and because of their rushing to home or office, they
had completed the questionnaire quickly which may yield some inherent errors.
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53
CHAPTER V
Table 5.1
Personal details
Above 2 23 4 25 54 59.4
35
Total 19 33 21 37 110
Interpretation
54
Majority of the respondents who participated in the survey are unmarried and above 35 age
category. The conducted study had ensured equal participation of males and females.
Chart 5.1
Gender
55
Chart 5.1.
Age group
56
Chart 5.1
Marital status
57
Table 5.2
Employment status
Age group Employed self empl un emp Employed self empl unemp
Below 25 2 6 1 0 6 3 18 19.8%
25 – 35 7 9 2 4 13 3 38 41.8%
Above 35 8 12 5 8 17 4 54 59.4%
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Total 17 27 8 12 36 10 110
Interpretation
Majority of the respondents are self employed and above 35 age category. An equal
proportion of male female respondents of different age groups had participated in the
survey.
Chart 5.2
Employment status
59
Table 5.3
60
110 100%
Yes
No 0 0
Interpretation
From the above data exhibits that the entire participants drawn randomly for survey is
having telecommunication facility and hence the study is giving evidence for 100%
Chart 5.3
61
Table 5.4
Services No : of Percentage
respondents
Airtel 31 34%
Aircel 10 11%
TATA
62
indicom 110 100%
Bsnl 55 60.5%
Idea 21 23%
Vodafone 18 19.8%
Reliance 11 12.1%
Interpretation
Since the survey had been conducted at the TATA Indicom outlet, all the
majority ie; 55(60.5%) had tried BSNL service, 31(34%) had tried Airtel,
21(23%) had tried Idea, 18(19.8%) had tried Vodafone , 11(12.1%) had tried
Chart 5.4
63
Table 5.5
Offers 34 39 14 19 4
64
brand image 12 35 24 22 17
Coverage 109 1
Ads 9 20 25 28 28
advice by friends 11 13 18 42 26
customer service 14 28 28 29 11
Interpretation
The major criteria for deciding the purchase of mobile service for most of the customers
who had surveyed through the questionnaire is maximum network coverage. 67% of the
respondents are looking for offers given by the service provider. Nearly 38% select the
service provider upon the customer service given by them.42% of the respondents select the
service provider upon the company’s brand image. 26% of them choose their service
Chart 5.5
65
Table 5.6
Factors no of Percentage
respondents
offers 32 35.2%
brand image 18 19.8%
Coverage 110 100%
Advertisement 15 16.5%
advice by friends and 19 21%
family
influence of sales 22 24.2%
promotion 66
customer service 16 17.6%
Interpretation
100% of the respondents are considering coverage as the main factor for buying TATA
Indicom service. 32 (35.2%) of them are considering offers for the selection of the service
provider. 22 (24.2%) of them are interested in sales promotion tools like lucky draw contest,
coupons etc by the company. 19(21%) depends on friend’s suggestions.18 (19.8%) of them
are considering brand image of the company. 17% of them are choose the service of TATA
Chart 5.6
67
.
Table 5.7
Interpretation
Majority (54%) of the respondents had tried TATA Indicom landline connection because of
the less call rates offered by them. 39.6% of them had tried TATA Indicom Mobile
connection. It includes both prepaid and postpaid services. There are not much users for
internet facility. Only 27.5% of the respondents had tried internet facility.
68
Chart 5.7
69
Table 5.8
satisfied satisfied
no of
respondents 17 32 19 23 19
Interpretation
49 (45%) respondents are satisfied with the recharge coupons offered by the TATA Indicom.
(38%) of the respondents are not at all satisfied with the recharge coupons offered by TATA
Indicom. So we can say that most of the customers had preferred more offers and other
value added services like SMS offers, less call rates etc.
Chart 5.8
70
Table 5.9
71
Services highly Satisfied neutral Dissatisfied not at all
satisfied satisfied
after sales 21 24 17 42 6
service
Coverage 22 33 25 24 6
Offers 5 20 17 35 33
staff response 8 23 24 30 25
customer 18 21 18 22 31
support
Availability 15 27 28 29 11
Price 11 15 19 39 26
Interpretation
From the study we found that, 48 (44% ) of them are dissatisfied with the after sales services
of the company. 45 (41 %) of the respondents are satisfied with the after sales services of
TATA Indicom. 17 (15 %) of them are neutral in their decision and 55 (50%) are satisfied
with the network coverage of the company and 30 (27%) of them are dissatisfied with the
coverage. Majority of them 68(62%) are not at all satisfied with the offers Only 23 (28%) of
them are satisfied with the offers given by the company. Since the TATA Indicom customers
are not getting the information regarding recharge offers and other value added services,
most of them 55(50%) are not satisfied with the staff response of the company
employees.31(28%) are satisfied with staff response and majority of the respondents.
53(48%) of them are dissatisfied with the customer support. 40(36%) of them are
dissatisfied with the availability of the TATA Indicom services.65(60%) of them are
dissatisfied with the price of the product. The suggestions given by the respondents for
solving their problems are: provide adequate information about offers and other related
services, provide tower to all centers, give adequate training to the employees and provide
recharge vouchers to all retail stores.
72
Chart 5.9
73
Table 5.10
74
Responses No of respondents Percentage
No 0 0%
Interpretation
Since the survey had been conducted among the customers who are cancelled the TATA
Indicom services, all of the respondents had cancelled the service. Because of the various
problems like hand set complaint, billing problem, less offers etc.
Chart 5.10
75
Table 5.11
Cancelled services
76
Products No of respondents Percentage
Interpretation
The survey found that majority ie; 45 (41%) of the customers had cancelled their landline
connection because of various problems like phone set complaints, excess bill amount, after
sales service. And out of 110 customers 41 (37%) of them had cancelled or migrate their
connection from postpaid to prepaid service. 24 (22 %) of them had cancelled internet
facility because of less coverage, low speed of the server, high price for downloading.
Hence we can say that most of the services provided by the TATA is having customer
77
Chart 5.11
Table 5.12
78
Reasons for canceling
Interpretation
The above table shows that 41 (37% ) of the respondents are having the problem of not
getting the bill on time. This is because of either the address change or technical problem.37
(34% ) of them are not having enough coverage in their residential area.16 (15%) of them
are not satisfied with customer service. This is because of the customers are not satisfied
with the employees behavior when they approach for asking any doubts regarding the offers
or other complaints.
Chart 5.12
79
Table 5.13
80
Reliance 4 4%
Interpretation
The above table reveals that 30 (28%) of the respondents prefer Airtel service when they are
going outside kerala because they are attracting to the Airtel offers, coverage etc. 29(26% )
of them are prefer BSNL service. This is because of the wide coverage, customer service
and offers.25 (23%) of them are prefer Vodafone services.15 (14%) of them are prefer Idea
service. Least preferred services for roaming are TATA Indicom (7%) and Reliance 4 (4%).
Chart 5.13
81
Table 5.14
82
Yes 63 57%
No 47 43%
Interpretation
More than half i.e.,57% of the TATA Indicom customers registered hand set complaint.
Because of the battery complaint, key pad complaint, charger complaint. Only 47 (43% ) of
Chart 5.14
83
Table 5.15
Cancellation of the 30 31 24 17 8
service
84
Put the complaint and 28 28 25 23 6
continue
Interpretation
This survey found that more than half of the respondents 61 (55%) reacted in such a way
that they will cancel the services without giving any complaint to the company. 25 (23%) of
them disagreed to the decision of cancelling the services.56 (51%) plan to continue the
TATA Indicom’s service after registering their complaints to the company and 29 (26%) of
them are registered that they will cancel the service after giving the complaint to the
company and 67 (61%) of them disagree to that decision. 33 (30% ) of them responded that
they will discourage others from buying the TATA Indicom’s service.
Chart 5.15
85
5.16 STATISTICAL ANALYSIS AND HYPOTHESIS TESTING
5.16.1 Opinion of customers of different age groups against the satisfaction of cost of
HYPOTHESIS
86
H0= There is no significant difference between customers of different age group regarding
H1= There is a significant difference between customers of different age group regarding
Since the calculated F – value ( .733 ) is less than table value 2.45 and p – value .571 is
greater sthan .05, the analysis of result is accepting the null hypothesis. I.e.:There is no
significant difference among different age groups regarding their satisfaction of cost of
HYPOTHESIS
87
t – test for equality of Means
T P values
Sig. (2-tailed)
t (.854 & .856) < 1.6 p (.395 & .394) > .05
Since the ‘t’ values are less than 1.6 (standard table value at 5% significance ) and p values
are greater than .05 ( level of significance ) we accept null hypothesis. Ie: There is no
RANK CORRELATION
Indicom
BSNL 75 1 68 2
Reliance 28 6 59 4
Since the calculated value is greater than 0.6 and very near to 1, there is high degree of
88
correlation between coverage and image of the company.
charge
Airtel 58 3 73 1
Aircel 35 6 37 6
Vodafone 38 5 64 3
TATA 69 1 48 5
Indicom
BSNL 62 2 68 2
Reliance 46 4 59 4
Since the calculated value is greater than 0.6 and it is very near to 1, there is High Degree of
89
5.16.5 Relationship between quality and image of the company.
Indicom
BSNL 58 3 68 2
Reliance 49 4 59 4
Since the calculated value is greater than 0.6 and it is very near to 1, there is High Degree
90
Brands Customer Rank Image Rank
support
Airtel 77 1 73 1
Aircel 29 5 37 6
Vodafone 56 3 64 3
TATA 49 4 48 5
Indicom
BSNL 68 2 68 2
Reliance 38 5 59 4
Since the calculated value is greater than 0.6 and it is very near to 1, there is High Degree of
Indicom
BSNL 45 3 68 2
91
Reliance 29 6 59 4
Since the calculated value is greater than 0.6 and it is very near to 1, there is High Degree of
92
CHAPTER VI
Findings And
Recommendations
93
6.1 FINDINGS
2. Majority of the customers had tried BSNL 55(60.5%) service and Airtel 31(34%).
3. According to the survey, the main elements of buying behavior of TATA Indicom
4. Majority (54%) of the respondents had tried TATA Indicom landline connection 39.6% of
them had tried Mobile connection, only 27.5% of the respondents were tried internet facility.
5. 46.2% of the respondents are not at all satisfied with the recharge coupons offered by TATA
Indicom. 49 (53.9%) respondents are satisfied with the recharge coupons offered by the
TATA Indicom.
6. Since the customer service is low,most of them are 48 (52.8% )dissatisfied with the after
7. 55 (61%) are satisfied with the network coverage of the company,30 (33%) of them are
9. Most of the customers are not getting the vouchers nearby stores
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10. 45 or 50% of the customers are cancelled their landline connection ,41 (45.1%) of them are
cancelled or migrate their connection from postpaid to prepaid service, 24 (26.4 %) of them
41 (45.1% ) of the respondents are having the problem of not getting the bill on time.
37 (40.7% ) of them are not having enough coverage in their residential area.
61 (67.1%) of the respondents are cancelled the services without giving any complaint to the
company.
56 (61.6%) are continue the TATA Indicom’s service after they are complained to the
company
34(35.3%) of them feels like to cancel the service after giving the complaint to the company
33 (36.3% ) of them are discourage others to buy the TATA Indicom’s service.
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6.2 SUGGESTIONS
1. Company can decrease call rates to other subscribers for attracting youngsters
2. Voucher card can provide all the retail shops on time for customer convenience.
4. Sales promotion can be more intense, like television ad showing the price, quality, and other
product related details.
5. Even though the company has some offers or other value added services, it can be well
known by the sales people. So it is better to provide adequate training to the sales people.
6. Provide the tower to all centers for avoiding the network problem.
7. To ensure better customer satisfaction & maintain higher level of Customer relationship
management, the billing department has to be more effective & efficient.
8. User manuals and the plan’s pamphlets should be given to the staff for clearing the doubts of
the customers.
9. The cancellation mainly occurs in landline connection. So the company can take care of the
following services
96
Billing activities
10. Company can appoint more technicians to all TATA retail True Value hubs to recover on
11. The employees can call back to customers atleast once in a month for getting the feedback
12. Customers are demanding for affordable price for product and gifts with purchasing.
13. Majority of the customers are not satisfied with the recharge coupons offering by the
company. So the company can increase the talk time to all recharge coupons.
14. Customer relationship managers can keep the records of update details regarding the
customer’s address change for sending the postpaid billing charges to avoid delay of
payment.
15. All the TATA Indicom retail hubs can have the complaint grievance box for customers.
16. Employees can inform customer complaint on time to the head of the department.
97
CONCLUSION
India has a mere 1.2 telephones for every 100 of its people. This is way below international
standards and is not becoming of a country aspiring to be major player in the global
economy of the 21st century. This means that opportunities for investment in this sector are
immense. Basic voice service is the biggest market. Installation of around 25 million direct
Due to the growing need for mobile phones, it’s no wonder that service providers are going
all out to capture, as much market space as they can. As the number of mobile phone users
are estimated to rise to about 120 million by 2008,it’s not surprising that most of the leading
service providers in India have started branding and marketing their services more
aggressively.
98
The conducted study try to examine the market mindset towards one of the major player in
the telecom sector. The selected company for the study is TATA indicom which is having a
reputation in the market. This study had examined customer evaluation about the tele
services provided by the company. It also investigates the major reasons behind cancellation
The customers are not satisfied with services because of the low quality; high price, poor
The main reasons for cancellation of the services were: - coverage problem, customer
The researcher got an exposure to the real situations of telecom market world and reactions
to the customers and enable to understand the customer reactions while they are undergoing
dissatisfaction of services. To the marketer, the present study is a market reflection about the
services offered. This will give him an insight into the customer problems, he has to settle at
the earliest, which will help him to expand his market and improve his image.
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Publishers ,Delhi
2. Philip Kotler and Kevin Lane Keller (2005), Marketing Management Twelfth Edition,
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5. Jim Blythe (1999) The Essence of Consumer Behaviour , Prentice Hall PTR
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Management.
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