SHRI RAMSWAROOP MEMORIAL

GROUP OF PROFESSIONAL COLLEGES

LUCKNOW

PROJECT REPORT
ON

Customer satisfaction towards services

of Vodafone
SUBMITED IN PARTIAL FULFILLMENT OF REQUIRMENT FOR THE
AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
TO
UTTAR PRADESH TECHNICAL UNIVERSITY, LUCKNOW
FOR THE SESSION
2014-15

Under the Guidance of

Dr. Priyanka Srivastava
Department of Management
SRMGPC, LUCKNOW
1

SUBMITTED BY:
Neeraj Kant Vishwakarma
Roll No.: 1312270036
MBA IIIrd Sem.

DECLERATION

ACKNOWLEDGEMENT

The present work is an effort to throw some light on Customer satisfaction towards
services of Vodafone. The work would not have been possible to come to the present
shape without the able guidance, supervision and help to me by number of people.

With deep sense of gratitude I acknowledge the encouragement and guidance received by
my organizational guide Dr. Priyanka Srivastava and other staff members.

I convey my heart full affection to all those people who helped and supported me during
the course, for completion of my Project Report.

(Neeraj Kant Vishwakarma)

Preface
The research project program is the integral part of MBA curriculum during the
course of management; the research is expected to use and apply their academic
knowledge and gain a valuable insight into corporate culture with all its environment
operational complexities.
The research offers a valuable opportunity to the researcher to meet their academic
knowledge to the real world situation. I have undertaken commercial department to study
about the various activities done in this department in the details, as the result of that I
came out with the project title Customer satisfaction towards services of Vodafone.
In this report I have put my finest efforts to compile the data with utmost accuracy and
hope this report will give complete satisfaction regarding the various aspects of
recruitment & selection activity.

(Neeraj Kant Vishwakarma)

TABLE OF CONTENT
1. Certificate

2. Declaration

3. Acknowledgement

4. Preface

5. Introduction

7-25

6. Company Profile

26-55

7. Research Methodology along with

56-65

objectives
8. Use and importance

66-67

9. Data Analysis

68-91

10. Findings
11. Recommendations
12. Conclusion
13. Limitation
14. Bibliography

92-94
95-96
97-98
99-100
101102

15. Annexure

103107

INTRODUCTIO
N

iNTRODUCTION
Customer satisfaction, as a construct, has been fundamental to marketing for over three
decades. As early as 1960, Keith (1960) defined marketing as satisfying the needs and
desires of the consumer. Hunt (1982) reported that by the 1970s, interest in customer
satisfaction had increase to such an extent that over 500 studies were published. This

trend continued and by 1992, Peterson and Wilson estimated the amount of academic and
trade articles on customer satisfaction to be over 15,000.
Several studies have shown that it costs about five times to gain a new customer as it
does to keep an existing customer (Naumann, 1995) and this results into more interest in
customer relationships. Thus, several companies are adopting customer satisfaction as
their operational goal with a carefully designed framework. Hill and Alexander (2000)
wrote in their book that companies now have big investment in database marketing,
relationship management and customer planning to move closer to their customers.
Jones and Sasser (1995) wrote that achieving customer satisfaction is the main goal for
most service firms today.
Increasing customer satisfaction has been shown to directly affect companies market
share, which leads to improved profits, positive recommendation, lower marketing
expenditures (Reichheld, 1996; Heskett et al., 1997), and greatly impact the corporate
image and survival (Pizam and Ellis, 1999).
Parker and Mathew (2001) expressed that there are two basic definitional approaches of
the concept of customer satisfaction. The first approach defines satisfaction as a process
and the second approach defines satisfaction as an outcome of a consumption experience.
These two approaches are complementary, as often one depends on the other.
Customer satisfaction as a process is defined as an evaluation between what was received
and what was expected (Oliver, 1977, 1981; Olson and Dover, 1979; Tse and Wilton,
1988), emphasizing the perceptual, evaluative and psychological processes that
contribute to customer satisfaction (Vavra, 1997, p. 4).

Parker and Mathews (2001) however noted that the process of satisfaction definitions
concentrates on the antecedents to satisfaction rather than satisfaction itself.
Satisfaction as a process is the most widely adopted description of customer satisfaction
and a lot of research efforts have been directed at understanding the process approach of
satisfaction evaluations (Parker and Mathews, 2001). This approach has its origin in the
discrepancy theory (Porter, 1961), which argued that satisfaction is determined by the
perception of a difference between some standard and actual performance.
Cardozo (1965); and Howard and Sheth (1969) developed the contrast theory, which
showed that consumers would exaggerate any contrasts between expectations and product
evaluations.
Olshavsky and Miller (1972); and Olson and Dover (1979) developed the assimilation
theory, which means that perceived quality is directly increasing with expectations.
Assimilation effects occur when the difference between expectations and quality is too
small to be perceived.
Anderson (1973) further developed this theory into assimilation-contrast theory, which
means if the discrepancy is too large to be assimilated then the contrast effects occur. The
assimilation-contrast effects occur when the difference between expectations and quality
is too large to be perceived and this difference is exaggerated by consumers.
According to Parker and Mathews (2001), the most popular descendant of the
discrepancy theories is the expectation disconfirmation theory (Oliver, 1977, 1981),
which stated that the result of customers perceptions of the difference between their
perceptions of performance and their expectations

10

of performance. Positive

disconfirmation leads to increased satisfaction, with negative disconfirmation having the

opposite effect. Yi (1990) expressed that customers buy products or services with prepurchase expectations about anticipated performance, once the bought product or service
has been used, outcomes are compared against expectations. If the outcome matches
expectations, the result is confirmation. When there are differences between expectations
and outcomes, disconfirmation occurs. Positive disconfirmation occurs when product or
service performance exceeds expectations. Therefore, satisfaction is caused by positive
disconfirmation or confirmation of customer expectations, and dissatisfaction is the
negative disconfirmation of customer expectations (Yi, 1990).
While several studies support the disconfirmation paradigm, others do not. For instance,
Churchill and Surprenant (1982) found that neither disconfirmation nor expectations had
any effect on customer satisfaction with durable products.
Weiner (1980, and 1985); and Folkes (1984) proposed the attribution theory, which stated
that when a customer purchases a product or service, if the consumption is below
expectation, the customer is convinced that the supplier causes the dissatisfaction. The
complaining customer is focused on restoring justice and the satisfaction outcome is
driven by perceived fairness of the outcome of complaining.
Westbrook and Reilly (1983) proposed the value-percept theory, which defines
satisfaction as an emotional response caused by a cognitive-evaluative process, which is
the comparison of the product or service to one's values rather than an expectation. So,
satisfaction is a discrepancy between the observed and the desired.

11

Fisk and Young (1985); Swan and Oliver (1985) proposed the equity theory, which stated
that individuals compare their input and output ratios with those of others and feel
equitable treated. Equity judgement is based on two steps; first, the customer compares
the outcome to the input and secondly, performs a relative comparison of the outcome to
the other party.
Pizam and Ellis (1999) reported that there are two additional distinct theories of customer
satisfaction apart from the seven aforementioned ones and these include:
1. Comparison-level
2. Generalized negativity; and
The outcome approach of the customer satisfaction is defined as the end-state satisfaction
resulting from the experience of consumption. This post- consumption state can be an
outcome that occurs without comparing expectations (Oliver, 1996); or may be a
cognitive state of reward, an emotional response that may occur as the result of
comparing expected and actual performance or a comparison of rewards and costs to the
anticipated consequences (Vavra, 1997, p. 4).
Furthermore, Parker and Mathews (2001) expressed that attention has been focused on
the nature of satisfaction of the outcome approach which include:
1. Emotion - Satisfaction is viewed as the surprise element of product or service purchase
and or consumption experiences (Oliver, 1981), or is an affective response to a specific
consumption experience (Westbrook and Reilly, 1983). This acknowledges the input of

12

comparative cognitive processes but goes further by stating that these may be just one of
the determinants of the affective state satisfaction (Park and Mathews, 2001).
2. Fulfillment The theories of motivation state that people are driven by the desire to
satisfy their needs (Maslow, 1943) or by their behaviour aimed at achieving the relevant
goals (Vroom, 1964). However, satisfaction can be either way viewed as the end-point in
the motivational process. Thus consumer satisfaction can be seen as the consumer's
fulfillment response (Rust and Oliver, 1994, p. 4).
3. State Oliver (1989) expressed that there are four framework of satisfaction, which
relates to reinforcement and arousal. Satisfaction-as-pleasure results from positive
reinforcement, where the product or service is adding to an aroused resting state, and
satisfaction-as-relief results from negative reinforcement .In relation to arousal, low
arousal fulfillment is defined as satisfaction-as contentment, a result of the product or
service performing adequately in an ongoing passive sense. High arousal satisfaction is
defined as satisfaction as either positive (delight) or negative surprise which could be
a shock (Rust and Oliver, 1994).
The other customer satisfaction definitions include: Satisfaction is the cognitive state of
the buyer about the appropriateness or inappropriateness of the reward received in
exchange for the service experienced (Howard and Seth, 1969, pp. 145); the evaluation
of emotions (Hunt, 1977, p. 460); the favorability of the individual's subjective evaluation
(Westbrook, 1980, p. 49); a positive outcome from the outlay of scarce resources
(Bearden and Teel, 1983a, p. 21); an overall customer attitude towards a service provider
(Levesque and McDougall, 1996, pp.14); is a judgment that a product or service feature,

13

or the product or service itself, provided (or is providing) a pleasurable level of

consumption-related fulfillment, included levels of under- or overfulfillment (Oliver,1997,
p. 13); is an experience-based assessment made by the customer of how far his own
expectations about the individual characteristics or the overall functionality of the
services obtained from the provider have been fulfilled (Homburg and Bruhn, 1998); the
fulfillment of some need, goal or desire (Oliver, 1999); an emotional reaction to the
difference between what customers anticipate and what they receive (Zineldin, 2000); is
based on a customers estimated experience of the extent to which a providers services
fulfill his or her expectations (Gerpott et al. 2001).
For this study, customer satisfaction definition used is that of Homburg and Bruhn (1998)
which is an experience-based assessment made by the customer of how far his own
expectations about the individual characteristics or the overall functionality of the
services obtained from the provider have been fulfilled.
The relevance of this definition to this study is that it indicates that customers assess the
mobile services based on experience of use and the rating is done in accordance with the
mobile services attributes. In this study, customer satisfaction with the Nigerian mobile
services will be evaluated based on customers experience of network quality, billing,
validity period and customer care support.

The Global System of Mobile Communications (GSM) is a second-generation digital

technology, which was originally developed in Europe and in less than ten years after the

14

commercial launch, it developed into worlds leading and fastest growing mobile
standard (GSM Assoc., 2006). Lonergan et al. (2004) reported that at the beginning of
2004, there were over 1.3 billion mobile phone users worldwide and by 2007, the demand
for mobile services would have grown at an average annual rate of 9.1%. The GSM
Association estimates that the GSM technology is used by more than one in five people
of the world's population, representing approximately 77% of the worlds cellular market
and is estimated to account for 73% of the worlds digital market and 72% of the worlds
wireless market (GSM Assoc., 2006). This growth principally results from the
establishment of new networks in developing countries rather than from an increase in
mobile access lines in developed countries (Serenko and Turel, 2006). African countries
are actively involved in the establishment of the mobile services and specifically, Nigeria
is the focus of this study.
Gerpott et al. (2001) wrote that since 1990s, the telecommunications sector has become
an important key in the development of the economy of developed countries. This results
from the saturated markets, de-regulation of telecommunications industry (removal of
monopoly rights, especially enjoyed by state-owned telecoms networks), increasing
number of mobile service providers, enormous technical development and intense market
competition. Szyperski & Loebbecke (1999) wrote that this increasing economic
importance and benefits of telecommunications firms motivated many management
scholars (especially marketing experts) to devote attention to this sector. Wilfert (1999);
Gerpott (1998); and Booz. Allen and Hamilton (1995) pointed out that marketing
strategies are very important in telecommunications services because once customers
have subscribed to a particular telecommunications service provider, their long-term link

15

with this provider is of greater importance to the success of the company than they are in
other industry sectors. Hence, service providers need to form a continous lasting
relationship with their customers to know them better and satisfy their needs adequately.
Studies conducted to explore factors affecting satisfaction, loyalty and retention in mobile
telecommunications industry include: Gerpott et al. (2001) investigated customer
satisfaction, loyalty and retention in the German mobile telecommunications among 684
respondents and reported that customer retention can not be equated with customer
loyalty and/or customer satisfaction, rather a two-stage causal link can be assumed in
which customer satisfaction drives customer loyalty which in turn has impacts on
customer retention. However, these three factors are important for superior economic
success among telecommunication service providers. Kim et al. (2004) investigated the
effects of customer satisfaction and switching barrier on customer loyalty among 350
respondents in Korea and reported that call quality, value-added services and customer
support have significant impact on customer satisfaction. Thus, to maximize customer
satisfaction, focus should be on service quality and customer-oriented services. Switching
barrier on the other hand is affected by switching costs (e.g. loss cost, move-in cost, and
interpersonal relationships) and was revealed to have an adjustment effect on customer
satisfaction and customer loyalty. Serenko and Turel (2006) investigated customer
satisfaction with mobiles services in Canada and reported that perceived quality and
perceived value are the key factors influencing satisfaction with mobile services.
Customer care is reported to be negatively related to customer satisfaction, which means
that a more satisfied customer is less prone to complain. Hence, they concluded that
customer satisfaction is the only single measure that better capture the range of services,

16

prices and quality and moreso, this measure is an important performance indicator useful
for both regulators and mobile service providers. In summary, these studies support the
theory that highly satisfied customers stay longer, buy more, less sensitive to price
increases from their providers or price decreases from competitors.
Nigeria, a developing country, in 1992 introduced its first mobile phone services, through
the

joint

venture

between

NITEL and DSL of Canada

to form

Mobile

Telecommunications Service (MTS), (Ndukwe, 2005, pp 26). In January 2001, the

regulatory body NCC, modernised and expanded the mobile telecommunications network
and services by granting GSM license to three service providers; MTN Nigeria, Econet
Wireless (now Vmobile), and the first national carrier, NITEL (initially MTS, privatised
to form Mtel). In 2002, the second national carrier, Globacom was also granted license to
commence operation. Since the launch of the GSM, the number of subscribers in Nigeria
has greatly increased. Ndukwe (2005, pp 37-38, 40) reported that between 1998 and
2000, the number of mobile lines was 35,000 but grew to over 11 million as of March
2005, with a growth rate of more than a million lines annually since 2002. This translated
to an increase from the total density of 0.4 lines per 100 inhabitants in 1998 to 9.47 lines
per 100 inhabitants currently. Additionally, this sector has attracted an investment of over
US $8 billion and has greatly increased the number of employed people directly (those
working with the GSM companies) or indirectly (this includes various levels of
dealerships, cell phone vendors, repair shops, suppliers of accessories, fixed and mobile
call shops and street recharge card hawkers) (Hoff, 2006). The number of the employed
people is reported to be over 300,000 Nigerians in 2005 (Ndukwe, 2005). Other benefits
include easy, affordable and quick access to phone by different categories of the

17

population, reduced frequency of travelling, etc (Adomi, 2003), and all these benefits
contribute to the socio- economic development of the country.
Based on the annual growth rate of the subscribers, and increasing teledensity, Nigeria is
one of the fastest growing telecoms market in Africa (Hoff, 2006). Additionally, the
population count of over 130 million people and GDP per capita and PPP valuation of US
$1,776 (estimated in 2005) (OECD, 2006) presents a massive growth potential for the
mobile telecoms sector and the customer base is estimated to reach 23 million subscribers
in 2007 and 32 million subscribers in 2009 (Hoff, 2006). This anticipated increase in the
customer base will translate into better social and economic development, resulting from
more financial investments from the service operators.
Despite the economic and social benefits of the mobile telecommunications to Nigerian
economy and market, unlike the developed countries, there is no marketing or
management research attention to this sector. However, it is probable that the mobile
operators conduct satisfaction surveys and other marketing research but contact with the
mobile operators for any useful information yielded no response 1. This limitation
affected this study in that there are currently no literature materials on customer
satisfaction of the Nigerian mobile telecoms industry to consult. The majority of literature
available (few in number) focuses on the study of the impact and development of the
telecommunications, mobile telephony, communications, etc.
This lack of adequate research in the mobile telecoms sector may prevent it from
acquiring knowledge useful for development. According to Serenko and Turel (2006),
customer satisfaction measurement addresses both users and public interests and such

18

studies can assist in economic and social development. Therefore, there is need to gain
more understanding in the area of customer satisfaction.
Jackson et al. (1996), Platow et al. (1997), and Homburg and Giering (2001) expressed
that customer behaviours and attitudes are greatly influenced by demographic, situational,
environmental and psychological factors and these factors can be used by companies and
policy makers to develop strategies to meet different needs of the different customer
segments. Hence, there is need to gain more understanding of the influence of these
factors on customer satisfaction.
Consumers normally implement preferences when they go for comparing different
alternatives and choices. Preference based on scientific evaluation is always a reasonable
one. Real-life marketing primarily revolves around the application of a great deal of
common-sense dealing with a limited number of factors, in an environment of flawed
information and limited resources complicated by vagueness. Use of traditional
marketing techniques, in these circumstances, is inevitably partial and unequal.Now a day
the role of marketing has becoming an essential part for any product. Marketing plays the
pivotal role after establishing target specifications, concept generation, and concept
selectionthrough concept screening matrix and concept scoring matrix, and finally testing
of concept selection. Marketing has been comprehensively classified into two categories
such as product selling and concept selling. The marketing of any product might be
reached only because of concept selling. The role of the concept selling is to sell the
concept to the customers after getting their feedbacks through face to face interactions,
Electronic mails, panel discussions, interaction with extreme users, end users, lead users,
written survey and word of mouth advertising. Above described methods might be

19

congruous and helpful for concept generation too. It will help the marketers to market the
product more gullible, notable and plausible.

Introduction:
The telecom network in India is the fifth largest network in the world meeting up with
global standards. Presently, the Indian telecom industry is currently slated to an estimated
contribution of nearly 1% to Indias GDP.
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 of India aims at 9 million broadband
connections and 18 million internet connections by 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.

20

Evolution of the Industry - Important Milestones:

Year

Description

1851

First operational land lines were laid by the govt. near Calcutta(seat of
British Power)

1881

Telephone Service introduced in India

1883

Merger with the postal system

1923

Formation of Indian Radio Telegraph Company (IRT)

1932

Merger of ETC and IRT into the Indian Radio and Communication
Company(IRCC)

1947

Nationalization of all foreign telecommunication companies to form the

Posts, Telephone and Telegraph(PTT), a monopoly run by the
governments Ministry of Communication

1985

Department of Telecommunications (DOT) established, an exclusive

provider of domestic and long-distance service that would be its own
regulator (separate from the postal system)

1986

Conversion of DOT into two wholly government-owned companies: the

Videsh

Sanchar

Nigam

Limited

(VSNL)

for

international

telecommunications and Mahanagar Telephone Nigam Limited (MTNL)

for service in metropolitan areas.
1997

Telecom Regulatory Authority of India created

1999

Cellular Services are launched in India. New National Telecom Policy is

adopted.

2000

DoT becomes a corporation, BSNL

21

(Source: The Indian Telecom Industry by consulting club, IIM Calcutta)

Major Players:
There are three types of players in telecom services:
State owned companies (BSNL and MTNL)
Private Indian owned companies (Reliance Infocomm, Tata Teleservices)
Foreign invested companies (Vodafone-Essar, Bharti Tele-Ventures, Escotel, Idea
Cellular, BPL Mobile, Spice Communications)
India's mobile telecom sector is one of the fastest growing sectors. Unlike in the 1990s
when the mobile phone was an elitist product, mobile operators now tap a mass market
with mass marketing techniques. "Unified licensing" rules allow basic and mobile
operators into each others territory, and have ushered in perhaps the final phase of
industry consolidation.

It seems that only companies with deep pockets can effectively compete as primary
operators mobile markets. Economies of scale, scope, and end-to-end presence in longdistance as well as local telecom, are desirable.

There are, besides, new challenges. Operators have to find new growth drivers for the

22

wire line business. There are problems of getting broadband to take off, of technology
choice, of when to introduce new technologies, and of developing a viable business
model in an era of convergence.

Growth of mobile technology:

India has the fastest growing mobile markets in the world. The mobile services were
commercially launched in August 1995 in India. In the initial 5-6 years the average
monthly subscribers additions were around 0.05 to 0.1 million only and the total mobile
subscribers base in December 2002 stood at 10.5 millions. However, after the number of
proactive initiatives taken by regulator and licensor, the monthly subscriber additions
increased to around 2 million per month in the year 2003-04 and 2004-05.

Although mobile telephones followed the New Telecom Policy 1994, growth was tardy in
the early years because of the high price of hand sets as well as the high tariff structure of
mobile telephones. The New Telecom Policy in 1999, the industry heralded several pro
consumer initiatives. Mobile subscriber additions started picking up. The number of

23

mobile phones added throughout the country in 2003 was 16 million, followed by 22
millions in 2004, 32 million in 2005 and 65 million in 2006. The only countries with
more mobile phones than India with 156.31 million mobile phones are China 408
million and USA 170 million.

India has opted for the use of both the GSM (global system for mobile communications)
and CDMA (code-division multiple access) technologies in the mobile sector.

The mobile tariffs in India have also become lowest in the world. A new mobile
connection can be activated with a monthly commitment of US$ 5 only. In 2005 alone 32
million handsets were sold in India. The data reveals the real potential for growth of the
Indian mobile market.

Cellular Service Providers:

As on Apr 2007 India has 167 million mobile phone subscribers. Out of this 125 million
are GSM users and 41 million CDMA users. BSNL, Bharti Airtel, Hutch, Idea, Aircel,
Spice and MTNL are the main GSM providers in India. Reliance Communications and
Tata Indicom are the main CDMA providers in India.

Bharti Airtel

24

Airtel is providing cellular services in Delhi, Mumbai, Kolkata, Chennai, Andhra

Pradesh, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Karnataka, Kerala,
Madhya Pradesh, Maharashtra, Goa, Orissa, Punjab, Rajasthan, Tamil Nadu, UP and West
Bengal. Airtel is the No.1 cellular service provider in India using GSM technology. Airtel
has 23% market share in India with a total subscriber base of 38 million.

Reliance Communications

Reliance has both CDMA and GSM networks and total subscriber base of 29 million or
17% market share. It has GSM network in Assam, Bihar, Himachal Pradesh, Kolkata,
North East, Madhya Pradesh, Orissa and West Bengal. Reliance has CDMA networks in
other states and cities.

Bharat Sanchar Nigam Limited (BSNL)

BSNL is a state owned telecom company which has GSM presence in almost every cities
and towns. BSNL has 27 million subscribers with a market share of 16%.

Vodafone

Vodafone is another emerging GSM provider in India with coverage in Kerala, Mumbai,
Delhi, Kolkata, Chennai, Gujarat, Andhra Pradesh, Karnataka and Punjab with a total
subscriber base of 27 million.

25

Tata Indicom
Tata Indicom is a main CDMA provider in India with 16 million subscribers all over
India. Tata Indicom has presence in almost every state and cities in India.

26

27

Introduction:
Vodafone is a mobile network operator headquartered in Berkshire, England, UK. It is
the largest mobile telecommunications network company in the world by turnover and
has a market value of about 75 billion (August 2008). Vodafone currently has operations
in 25 countries and partner networks in a further 42 countries.
The name Vodafone comes from Voice data fone, chosen by the company to "reflect the
provision of voice and data services over mobile phones."

28

As of 2006 Vodafone had an estimated 260 million customers in 25 markets across 5

continents. On this measure, it is the second largest mobile telecom group in the world
behind China Mobile.
In the United States, Vodafone owns 45% of Verizon Wireless.

Mission:
Vodafone is primarily a user of technology rather than a developer of it, and this fact is
reflected in the emphasis of our work program on enabling new applications of mobile
communications, using new technology for new services, research for improving
operational efficiency and quality of our networks, and providing technology vision and
leadership that can contribute directly to business decisions.

Vision:
Our Vision is to be the worlds mobile communication leader enriching customers
lives, helping individuals, businesses and Communities be more connected in a mobile
world.

History:
In 1982 Racal Electronics plc's subsidiary Racal Strategic Radio Ltd. won one of two UK
cellular telephone network licenses. The network, known as Racal Vodafone was 80%
owned by Racal, with Millicom and the Hambros Technology Trust owning 15% and 5%
respectively. Vodafone was launched on 1 January 1985. Racal Strategic Radio was
renamed Racal Telecommunications Group Limited in 1985. On 29 December 1986
Racal Electronics bought out the minority shareholders of Vodafone for GB110 million.
In September 1988 the company was again renamed Racal Telecom and on 26 October
1988 Racal Electronics floated 20% of the company. The flotation valued Racal Telecom
at GB1.7 billion On 16 September 1991 Racal Telecom was demerged from Racal
Electronics as Vodafone Group.

29

In July 1996 Vodafone acquired the two thirds of Talkland it did not already own for
30.6 million. On 19 November 1996, in a defensive move, Vodafone purchased Peoples
Phone for 77 million, a 181 store chain whose customers were overwhelmingly using
Vodafone's network. In a similar move the company acquired the 80% of Astec
Communications that it did not own, a service provider with 21 stores.
In 1997 Vodafone introduced its Speech mark logo, as it is a quotation mark in a circle;
the O's in the Vodafone logotype are opening and closing quotation marks, suggesting
conversation.
On 29 June 1999 Vodafone completed its purchase of AirTouch Communications, Inc.
and changed its name to Vodafone Airtouch plc. Trading of the new company
commenced on 30 June 1999. To approve the merger, Vodafone sold its 17.2% stake in EPlus Mobilfunk. The acquisition gave Vodafone a 35% share of Mannesmann, owner of
the largest German mobile network.

Vodafones original logo used until the introduction of the speech mark logo in 1998.

On 21 September 1999 Vodafone agreed to merge its U.S. wireless assets with those of
Bell Atlantic Corp to form Verizon Wireless. The merger was completed on 4 April 2000.
In November 1999 Vodafone made an unsolicited bid for Mannesmann, which was
rejected. Vodafone's interest in Mannesmann had been increased by the latter's purchase
of Orange, the UK mobile operator. Chris Gent would later say Mannesmann's move into
the UK broke a "gentleman's agreement" not to compete in each other's home territory.
The hostile takeover provoked strong protest in Germany and a "titanic struggle" which

30

saw Mannesmann resists Vodafone's efforts. However, on 3 February 2000 the

Mannesmann board agreed to an increased offer of 112bn, then the largest corporate
merger ever. The EU approved the merger in April 2000. The conglomerate was
subsequently broken up and all manufacturing related operations sold off.
On 28 July 2000 the Company reverted to its former name, Vodafone Group Plc. In April
2001 the first 3G voice call was made on Vodafone United Kingdom's 3G network. In
2001 the Company took over Eircell, then part of eircom in Ireland, and rebranded it as
Vodafone Ireland. It then went on to acquire Japan's third-largest mobile operator JPhone, which had introduced camera phones first in Japan.
On 17 December 2001 Vodafone introduced the concept of "Partner Networks" by
signing TDC Mobil of Denmark. The new concept involved the introduction of Vodafone
international services to the local market, without the need of investment by Vodafone.
The concept would be used to extend the Vodafone brand and services into markets
where it does not have stakes in local operators. Vodafone services would be marketed
under the dual-brand scheme, where the Vodafone brand is added at the end of the local
brand. (i.e., TDC Mobil-Vodafone etc.)
In February 2002 Finland was added into the mobile community, as Radiolinja is signed
as a Partner Network. Radiolinja later changed its named to Elisa. Later that year the
Company rebranded Japan's J-sky mobile internet service as Vodafone live! and on 3
December 2002 the Vodafone brand was introduced in the Estonian market with signing
of a Partner Network Agreement with Radiolinja (Eesti). Radiolinja (Eesti) later changed
its name to Elisa.
On 7 January 2003 the Company signed a group-wide Partner agreement with mobilkom
Austria. As a result, Austria, Croatia, and Slovenia were added to the community. In April
2003 Og Vodafone was introduced in the Icelandic market and in May 2003 Vodafone
Italy (Omnitel Pronto-Italia) was rebranded Vodafone Italy. On 21 July 2003 Lithuania
was added to the community, with the signing of a Partner Network agreement with Bit.

31

In February 2004 Vodafone signed a Partner Network Agreement with Luxembourg's

LuxGSM and a Partner Network Agreement with Cyta of Cyprus. Cyta agreed to rename
its mobile phone operations to Cytamobile-Vodafone. In April 2004 the Company
purchased Singlepoint airtime provider from John Caudwell (Caudwell Group) and
approx 1.5million customers onto its base for 405million, adding sites in Stoke on Trent
(England) to existing sites in Newbury (HQ), Birmingham, Warrington and Banbury. In
November 2004 Vodafone introduced 3G services into Europe.
In June 2005 the Company increased its participation in Romania's Connex to 99% and
also bought the Czech mobile operator Oskar. On 1 July 2005 Oskar of the Czech
Republic was rebranded as Oskar-Vodafone. Later that year on 17 October 2005
Vodafone Portugal launched a revised logo, using new text designed by Dalton Maag, and
a 3D version of the Speech mark logo, but still retaining a red background and white
writing (or vice versa). Also, various operating companies started to drop the use of the
SIM card pattern in the company logo. (The rebranding of Oskar-Vodafone and ConnexVodafone also does not use the SIM card pattern.) A custom typeface by Dalton Maag
(based on their font family InterFace) formed part of the new identity.
On 28 October 2005 Connex in Romania was rebranded as Connex-Vodafone and on 31
October 2005 the Company reached an agreement to sell Vodafone Sweden to Telenor for
approximately 1 billion. After the sale, Vodafone Sweden became a Partner Network. In
December 2005 Vodafone won an auction to buy Turkey's second-largest mobile phone
company, Telsim, for $4.5 billion. In December 2005 Vodafone Spain became the second
member of the group to adopt the revised logo: it was phased in over the following six
months in other countries.
In 2006 the Company rebranded its Stoke-on-Trent site as Stoke Premier Centre, a centre
of expertise for the company dealing with Customer Care for its higher value customers,
technical support, sales and credit control. All cancellations and upgrades started to be
dealt with by this call centre. On 5 January 2006 Vodafone announced the completion of
the sale of Vodafone Sweden to Telenor. On February 2006 the Company closed its
Birmingham Call Centre. In 1 February 2006 Oskar Vodafone became

32

Vodafone Czech Republic, adopting the revised logo and on 22 February 2006 the
Company announced that it was extending its footprint to Bulgaria with the signing of
Partner Network Agreement with Mobiltel, which is part of mobilkom Austria group.
On 12 March 2006 former chief, Sir Christopher Gent, who was appointed the honorary
post Chairman for Life in 2003, quits following rumours of boardroom rifts. In April
2006 the Company announced that it has signed an extension to its Partner Network
Agreement with BITE Group, enabling its Latvian subsidiary "BITE Latvija" to become
the latest member of Vodafone's global partner community. Also in April 2006 Vodafone
Sweden changed its name to Telenor Sverige AB and Connex-Vodafone became
Vodafone Romania, also adopting the new logo. On 30 May 2006 Vodafone announced
the biggest loss in British corporate history (14.9 billion) and plans to cut 400 jobs; it
reported one-off costs of 23.5 billion due to the revaluation of its Mannesmann
subsidiary. On 24 July 2006 the respected head of Vodafone Europe, Bill Morrow, quit
unexpectedly and on 25 August 2006 the Company announced the sale of its 25% stake
in Belgium's Proximus for 2 billion. After the deal, Proximus was still part of the
community as a Partner Network. On 5 October 2006 Vodafone announced the first
single brand partnership with Og Vodafone which would operate under the name
Vodafone Iceland and on 19 December 2006 the Company announced the sale of its 25%
stake in Switzerland's Swisscom for CHF4.25 billion (1.8 billion). After the deal,
Swisscom would still be part of the community as a Partner Network. Finally in
December 2006 the Company completed the acquisition of Aspective, an enterprise
applications systems integrator in the UK, signaling Vodafone's intent to grow a
significant presence and revenues in the ICT marketplace.
Early in January 2007 Telsim in Turkey adopted Vodafone dual branding as Telsim
Vodafone and on 1 April 2007 Telsim Vodafone Turkey dropped its original brand and
became Vodafone Turkey. On 1 May 2007 Vodafone added Jersey and Guernsey to the
community, as Airtel was signed as Partner Network in both crown dependencies. In June
2007 the Vodafone live! Mobile Internet portal in the UK was relaunched. Front page was
now charged for and previously "bundled" data allowance was removed from existing

33

contract terms. All users were given access to the "full" web rather than a Walled Garden
and Vodafone became the first mobile network to focus an entire media campaign on its
newly launched mobile Internet portal in the UK. On 1 August 2007 Vodafone Portugal
launched Vodafone Messenger, a service with Windows Live Messenger and Yahoo!
Messenger.
On 17 April 2008 Vodafone extended its footprint to Serbia as VIP mobile was added to
the community as a Partner Network and on 20 May 2008 the Company added VIP
Operator as a Partner Network thereby extending the global footprint to Macedonia. In
May 2008 Kall of the Faroe Islands rebranded as Vodafone Faroe Islands.
On 30 October 2008, the company announced a strategic, non-equity partnership with
MTS group of Russia. The agreement adds Russia, Armenia, Turkmenistan, Ukraine, and
Uzbekistan to the group footprint.

34

VODAFONE ESSAR

Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 21
telecom circles in India. Despite the official name being Vodafone Essar, its products are

35

simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone
coverage throughout India and is especially strong in the major metros.
Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM
technology, offering voice and data services in 22 of the country's 23 licence areas.

Ownership:
Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian
nationals, 15%.
On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held by
Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance
Communications, Hinduja Group, and Essar Group, which is the owner of the remaining
33%. The whole company was valued at USD 18.8 billion. The transaction closed on
May 8, 2007.

36

Previous brands:
In December 2006, Hutch Essar re-launched the "Hutch" brand nationwide, consolidating
its services under a single identity. The Company entered into agreement with NTT
DoCoMo to launch i-mode mobile Internet service in India during 2007.
The company used to be named Hutchison Essar, reflecting the name of its previous
owner, Hutchison. However, the brand was marketed as Hutch. After getting the
necessary government approvals with regards to the acquisition of a majority by the
Vodafone Group, the company was rebranded as Vodafone Essar. The marketing brand
was officially changed to Vodafone on 20 September 2007.
On September 20, 2007 Hutch becomes Vodafone in one of the biggest brand transition
exercises in recent times.

37

Vodafone Essar is spending somewhere in the region of Rs 250 crores on this high-profile
transition being unveiled today. Along with the transition, cheap cell phones have been
launched in the Indian market under the Vodafone brand. There are plans to launch cobranded handsets sourced from global vendors as well.
A popular daily quoted a Vodafone Essar director as saying that "the objective is to
leverage Vodafone Group's global scale in bringing millions of low-cost handsets from
across-the-world into India."
While there is no revealing the prices of the low-cost Vodafone handsets, the industry is
abuzz that prices might start at Rs 666, undercutting Reliance Communications' muchhyped 'Rang Barse' with cheap handsets beginning at Rs 777.
Meanwhile, Vodafone Essar sources said there would be no discounts or subsidized
handset offers -- rather handset-bundled schemes for customers.
Incidentally, China's ZTE, which is looking to set-up a manufacturing unit in the country,
is expected to provide several Vodafone handsets in India. Earlier this year, Vodafone
penned a global low-cost handset procurement deal with ZTE

"Telecommunications is the backbone of our future economy. International

competitiveness increasingly depends on the development of a telecommunications
infrastructure that is compatible with international standards"
The cellular industry all over the world has been witnessing very high
growth rates in subscriber base in recent years. For developing
countries in particular, cellular services are becoming a very significant
proportion of the overall telecom infrastructure. The mechanics of
competition within this market involve complex feedback effects

38

between

individual

service

providers

and

with

their

operating

environment, and these forces play an important role in governing the

growth of this industry.
The Indian telecommunications sector has undergone a major
process of transformation because of significant Government
policy reforms during the recent years. The New Telecom
Policy, 1999 focused on creating an ideal environment for
investment,
leveraging

establishing
on

communication

technological

infrastructure

development

and

by

providing

affordable telecom services to all. These objectives of the

policies have resulted in rapid growth of subscribers and lower
tariffs. We believe that with these major initiatives of the
Government, the mobile market in India will have a promising
future.
In a country like India which is not yet telephone-saturated and the ongoing changes in
related areas are resulting in a rapidly changing profile of users, providers and their
respective needs, continuous revision of the telecom policy is imperative. Given the
emerging new technologies and the integrating economies there must be fairness among
competitors.
The tele-density in India is about four per hundred people in respect of the fixed
telephones and a little less than one in respect of the mobile telephony. The low densities
are not because there is no need for a telephone but because of its high cost that many

39

cannot afford that one. The situation here is nothing but holding true of the law of
demand. Isnt it?

The cost for the companies can come down if the revenue share imposed on them as
a condition of license is abolished or drastically reduced. Today every telephone
company is bound to pay a share out of its revenue to the exchequer. These costs are,
however, not to be scheduled to take a step further in the development of the
telecom. In addition when we go through the telephone bill there is a 5 to 8% service
charge. This amount also does not go for the telecom development. If these external
cost are removed there can be seen a spurt in demand of not less then 40% as
expected.
While taking the side of suppliers a lot of new companies are coming into the battlefield
resulting in reduction of prices and hence a little less burdensome on to the customer. The
cost of interconnection with the incumbent is proving to be contributory to the high cost
of services provided by the competitors.
The delay in the interconnection disregards the quality of service and high cost will
detract from affordability. This is an area in which no consumer body can knowledgeably
contribute unless it has the assistant of experts or economists who alone can discover all
the relevant fact of all the contesting companies. It indicates the pre-eminent domain of
TRAI (Telecom Regulatory Authority of India).
As the driven down of the prices for long distance including international services
reduces the amount available for subsidizing the local service, the rental for local services

40

are being increased. Considering that about 90% of the long distance calls are made by
less than 20% of customers, 80% of customers are having to pay higher rental this
depresses the demand for telephones and affordability. The urban business subscribers
will be bearing the bond of the subsidies to be given to the rural private consumers.

History of Cellular Telephony in India:

The technology that gives a person the power to communicate anytime, anywhere - has
spawned an entire industry in mobile telecommunication. Mobile telephones have
become an integral part of the growth, success and efficiency of any business / economy.
The most prevalent wireless standard in the world today, is GSM. The GSM Association
(Global System for Mobile Communications) was instituted in 1987 to promote and
expedite the adoption, development and deployment and evolution of the GSM standard
for digital wireless communications.
The GSM Association was formed as a result of a European Community agreement on
the need to adopt common standards suitable for cross border European mobile
communications. Starting off primarily as a European standard, the Groupe Speciale
Mobile as it was then called, soon came to represent the Global System for Mobile
Communications as it achieved the status of a world-wide standard. GSM is today, the
world's leading digital standard accounting for 68.5% of the global digital wireless
market. The Indian Government when considering the introduction of cellular services
into the country, made a landmark decision to introduce the GSM standard, leapfrogging
obsolescent technologies / standards. Although cellular licenses were made technology
neutral in September 1999, all the private operators are presently offering only GSM

41

based mobile services. The new licensees for the 4th cellular licenses that were awarded
in July 2001 too, have opted for GSM technology to offer their mobile services.

Cellular Industry in India

The Government of India recognizes

that the provision of a world-class

telecommunications infrastructure and information is the key to rapid economic and

social development of the country. It is critical not only for the development of the
Information Technology industry, but also has widespread ramifications on the entire
economy of the country. It is also anticipated that going forward, a major part of the GDP
of the country would be contributed by this sector. Accordingly, it is of vital importance
to the country that there be a comprehensive and forward looking telecommunications
policy which creates an enabling framework for development of this industry.

Cellular Market Structure in India

As in other countries, in India, the Cellular Mobile Service Providers (CMSPs) are
licensed to operate in designated geographical operating areas. The service areas include
four metro areas and 18 circles categorized as A, B and C. (The categorization is based on
the revenue Proceedings of the 36th Hawaii International Conference on System
Sciences).
The potential with category C circles in the lower end of the scale. For example the
metros account for 40% of the subscriber population, with Category-A, B and C
accounting for 33%, 23% and 4% respectively. The CMSPs had to pay an entry fee and

42

subsequently annual license fee as a percentage of their revenue to the Department of

Telecommunications.
The entry and license fees varied according to the service area, highest for metros and
lowest for Category-C circles. Some of the CMSPs could not fulfill their licensing
obligations and their licenses were revoked leading to a monopoly situation in certain
areas. Apart from these charges, each CMSP has to share the revenue with the long
distance operators for carrying inter-service area calls.
In profitable metros and circles, the competition is severe and the market is split between
the two operators. In a price-cap regulated market, the operators use appropriate pricing
strategy to win customers and win market share.
In highly price-elastic markets, such as in India, as the service provider reduces the price,
the subscriber base increases considerably, and so is the network traffic. The increased
network traffic decreases the performance and the quality of service, inviting customers
to switch. Being a new entrant in a metro area, the government operator reduced the
airtime charges to such an extent that the subscriber base increased suddenly leading to
poor network performance. The operator did not have enough network capacity to handle
calls leading to blocking of calls, with frustrated customers switching over immediately
to competitors.
The operators also have to resort to non-pricing competition strategies to win customers.
In India, CMSPs offer a variety of service plans as a means to attract new customers.
Different service plans include: pre-paid calling card schemes, discounted airtime rates

43

for evening and night time calls, discounted roaming charges, no or minimum activation
fees, and reduced mobile to mobile long distance call rates.
The service providers incur additional advertising and infrastructure cost for
implementing these plans. Short Message Service (SMS) and Wireless Application
Protocol (WAP) service are fast catching up. For example, in India, about 500,000 SMS
messages are being carried by a service provider in one metro area alone. When the
sector moves over to an oligopoly market, the operators have to provide improved quality
of service and value added services in order to survive and gain market share.
Larger operators who have experience and infrastructure may be able to provide a higher
quality of service and other value-added service at a lower price. They also have access to
larger project financing for enlarging their networks and services. For example, a single
large operator now has license to operate in 14 service areas in the country with the
largest footprint to cover most of the areas of the country. Mergers and acquisitions are
commonplace as the operators are consolidating their revenues to survive in the market
places.
Cellular subscribers and those with a propensity to go mobile in Delhi have never had it
so good. They now have four service providers to choose from, each offering an array of
both pre- and post-paid schemes. More importantly, average tariffs across plans have, by
some reckoning, dropped by at least 50 per cent in the last six months. The entry of
Vodafone saw a further drop in tariffs and the operators have come out with new schemes
to retain their subscribers and attract fresh ones.

44

What does this mean for subscribers and for the cellular industry in Delhi? All the four
operators Essar Mobile Services Ltd., Bharti Celluar Ltd, MTNL and Idea Cellular
services are convinced that the market will only expand and the subscribers will benefit
even more. Their reasoning is that cellular penetration in Delhi, which traditionally
occupies the third position in other areas, is less than fifty per cent. Therefore, entry of
new players will only increase awareness about the facility, the companies say.
Moreover, the state-owned MTNL has also been playing with its cellular service for quite
some time. that, with the imminent launch of limited mobility using CDMA (code
division multiple access) technology by companies like Tata Tele Services will only add
to the subscriber base, probably result in further reduction of tariffs, and an even greater
widening of the cellular market, according to officials in four cellular companies now
servicing Delhi.
However, the companies also sound a note of caution any further drop in tariffs will be
harmful to the companies, points out one of the officials taking care of the Sales &
Marketing division of the, Essar Mobile Services Ltd, average tariffs in Delhi across
different plans have fallen by 30 per cent since December with launching of the CDMA
services.
Besides the fall in tariffs, what has really happened with the entry of CDMA is a
heightened awareness in the market. Mobile penetration in Delhi and its suburbs is
estimated to be less than twenty-five percent of the population and the cellular operators
believe that this number should definitely go up.

45

It is here that Vodafone decided to target the customers with what it believes are unique
products and features. Its emphasis has been on value proposition and brand building.
Mobility is not only about carrying voice, as per the reports from the marketing
department and adds that the unified messaging system for the post-paid customers of
(now Vodafone) is one such unique product.
Accordingly, Vodafone signed in its subscribers in lakhs from the year onwards it has
been launched in Delhi. Industry analysts say that a majority of them will be pre-paid
customers, whose loyalty to a particular brand is always in doubt. However, pre-paid for
the cellular is nothing but the engine for growth and there is always a possibility that
most of them will shift to post-paid once they are convinced of the quality of service
provided.
On the other hand the entry of a new operator lends more visibility to the service and
there is also increased trade activity that is the number of dealers will increase and
more people will be on the road trying to sell the service and product. There is also
greater consumer awareness of what cellular service can deliver and expectations go up
in terms of pricing or service standards or network availability.

The Churn in the Cellular Industry:

As like the other products Cellular industry has not been left untouched from the Churn
(switching over). During the survey this fact comes to the fore. According to the cellular
operators, there is a normal seven to eight percent churn in the customers, especially in
the pre-paid category. Among the post-paid customers, the Churn is much lower about
two-three percent.

46

They say that one significant change that has happened in the last few months, more so
since lowering of the tariffs, is that the bias in favour of incoming calls as far as call
charges are concerned incoming calls has been set free while they are charging
reasonably only for the outgoing ones has changed. A tariff re-balancing has definitely
taken place.
This means that the cellular operators are encouraging their subscribers to not just receive
calls, but also make calls increasing the usage of the service. With falling tariffs,
cellular operators are convinced that increasing usage is one way to ensure that average
revenue per user (ARPU) does not fall very low. The industry figure for ARPU is
believed to be about Rs.1,100 while it may vary from operator to operator. The operators
are also concentrating on introducing more value added services to the customers. Valueadded services have not really taken off. Only the SMS (short messaging service) has
really caught on, but operators like Bharti are bringing in services like music messaging
and concierge facility for its subscribers.

47

MOBILE SUBSCRIBER STATISTICS

Recently, mobile phone connections in India have crossed the 400-million mark, which
means over forty in 100 Indians have a phone. Adding on to this benevolent and happy
information, telecom companies are anticipating the number will nearly treble in the next
two years. According to a survey, by 2010, the cellular networks are expected to cover
4,50,000 (out of 6,07,000) villages, covering 550 million people.

Figure 1 Market Share of both mobile and wire line Service Providers in India

GSM Subscribers
The cumulative All India GSM subscriber base rose to 72.12 million in April 2006
from 69.19 million in March 2006 which is a growth of 4.23% for a month under review
[4]. Table I shows the subscribers growth rate for one month along with market share of
each provider with coverage

48

CDMA Mobile Subscribers

The total cumulative all India CDMA subscriber base rose by 0.97 million from 23.25
million in March 2009 to 24.22 million in April 2009, representing a growth of
4.2% in the month under review. A summary picture of the company wise
performance is given in Table II.

TELECOM IN RURAL INDIA

Table I. GSM Subscribers growth rate
Company
Bharti
BSNL
Vodafone
IDEA
Aircel
Reliance
Spice
MTNL
BPL
Total

No of Subscribers (in million)

March 2009
April 2009
19.57
17.16
15.36
7.37
20.61
1.90
1.93
1.94
1.34
69.19

20.68
17.59
16.06
7.64
2.83
2.01
1.98
2.02
1.31
72.12

%
Share
28.7%
24.4%
22.3%
10.6%
3.9%
2.8%
2.7%
2.8%
1.8%
100%

Market Service Areas

23
21
16
11
7
8
2.
2
1

India has an urban population of about 26.8% and rural population is about
73.2%. And there are over 600,000 villages in India. But a vast section of the rural sector
is still cut off from the benefits of telecom services. The rural population of around 700
million is waiting for its share of economic growth. Initially the big telephone companies
focused only on urban centres, which they felt were more profitable. However, this

49

mindset is gradually changing with the realisation that there is equal, if not bigger money
in rural areas.
Table II. CDMA Subscribers growth rate
Company

Reliance
TATA
HFCl
Shyam
Total

(No.of

(%

Subscribers,per

Market Areas

million)
March April

Share)

2009
18.307
4.851
0.062
0.027
69.19

2009
18.809
5.323
0.062
0.028
72.12

in Service

77.65%
21.98%
0.26%
0.11%
100%

20
20
1
1

It is estimated that a one per cent increase in rural connectivity can generate 0.5 per cent
economic growth. Thus a well-planned 10 per cent increase in rural connectivity can
propel India into double-digit growth and unprecedented prosperity.
Rural India possesses enormous potential in terms of economy and human resources.
Recent experiments have confirmed that ICT (information and communication
technology) helps improve the timeliness and efficiency of rural farm operations and
enhance income through producer-oriented markets. Hence the communication ministry
has requested the finance ministry for higher allocations from the USO Fund for
executing rural telephony network. The finance ministry has made a budgetary allocation
of 15 billion from the USO Fund. The rural telephony targets include, providing 50
million telephones by 2009(i.e. one phone per three rural households) and 80 million by

50

2012 (i.e. one phone per two rural households) and provisioning mobile access to all
villages with population more that 5,000 by 2009 and more than 1,000 by 2010.The
Government is confident that the Bharat Nirman Programme target of providing coverage
to remaining 41,000 villages would be met by March 2010 which will be much earlier
than a schedule of November 2010.
India plans to establish 0.25 million, village knowledge centres. The ICT industry can
establish rural call centres modelled on the Kisan Call Centre established by the Ministry
of Agriculture to provide domain knowledge in the services, agriculture and
manufacturing sectors. This spread will increase the volume of users and automatically
bring down bandwidth cost, with a spiralling effect on efficiency and economy. Advanced
telecom services are no longer considered a luxury but a necessity for all. Thus, providing
telecom services to every individual in a country like India is a huge challenge, and at the
same time holds immense opportunities for those in the telecom industry.

Customer satisfaction, a business term, is a measure of how products and services

supplied by a company meet or surpass customer expectation. It is seen as a key
performance indicator within business and is part of the four perspectives of a Balanced
Scorecard.
In a competitive marketplace where businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element of
business strategy.
There is a substantial body of empirical literature that establishes the benefits of customer
satisfaction for firms.

51

Measuring customer satisfaction

Organizations are increasingly interested in retaining existing customers while targeting
non-customers; measuring customer satisfaction provides an indication of how successful
the organization is at providing products and/or services to the marketplace.
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation
of the state of satisfaction will vary from person to person and product/service to
product/service. The state of satisfaction depends on a number of both psychological and
physical variables which correlate with satisfaction behaviors such as return and
recommend rate. The level of satisfaction can also vary depending on other options the
customer may have and other products against which the customer can compare the
organization's products.
Because satisfaction is basically a psychological state, care should be taken in the effort
of quantitative measurement, although a large quantity of research in this area has
recently been developed. Work done by Berry, Brodeur between 1990 and 1998 defined
ten 'Quality Values' which influence satisfaction behavior, further expanded by Berry in
2002 and known as the ten domains of satisfaction. These ten domains of satisfaction
include: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Interdepartmental Teamwork, Front line Service Behaviors, Commitment to the Customer and
Innovation. These factors are emphasized for continuous improvement and organizational
change measurement and are most often utilized to develop the architecture for
satisfaction measurement as an integrated model. Work done by Parasuraman, Zeithaml
and Berry between 1985 and 1988 provides the basis for the measurement of customer
satisfaction with a service by using the gap between the customer's expectation of
performance and their perceived experience of performance. This provides the measurer
with a satisfaction "gap" which is objective and quantitative in nature. Work done by
Cronin and Taylor propose the "confirmation/disconfirmation" theory of combining the
"gap" described by Parasuraman, Zeithaml and Berry as two different measures
(perception and expectation of performance) into a single measurement of performance

52

according to expectation. According to Garbrand, customer satisfaction equals perception

of performance divided by expectation of performance.
The usual measures of customer satisfaction involve a survey with a set of statements
using a Likert Technique or scale. The customer is asked to evaluate each statement and
in term of their perception and expectation of performance of the organization being
measured.

Vodafone had highest customer satisfaction index in 2007

Lisbon, 25 August 2008 - Vodafone obtained the highest customer satisfaction index in
the telecommunications sector in 2007, according to annual results published by Anacom.
Vodafone achieved a satisfaction index of 74.4 (on a scale of 0 to 100), the highest score
of all the companies in the Portuguese telecommunications market and considerably
above the sector average of 67.6.
In the report published by Anacom, Vodafone is ranked in first place in all the indicators
included in the survey: Satisfaction with the operator, Image that customers have of the
operator, Customer Expectations, Perceived Quality of the operator's network and
services, Perceived Value for Money, Complaints received and their handling, and
Loyalty of customers to their operator.
In the Perceived Quality indicator, Vodafone obtained a score of 8.3 points for overall
quality, way ahead of the scores of the other two operators (both obtained 7.7 points).
Vodafone comes top in all the indicators for perceived quality of network and services:
technical quality of the network (8.2 points); customer service and advice capability (7.6
points); quality (8.2 points), diversity (8.0 points) and reliability (7.9 points) of products
and services offered; clarity and transparency of information supplied (7.8 points);
network coverage (7.9 points) and clarity and transparency of price plans (7.9 points).
Similarly, in the indicators measuring the Image of mobile operators, Vodafone comes top
in the five categories analyzed (on a scale of 1 to 10): 'It is a reliable company in terms of

53

what it says and what it does' (8.1 points); 'It is stable and well established in the market'
(8.8 points); 'It contributes positively to society' (7.5 points); 'It cares about its customers'
(7.6 points); and 'It is innovative and forward looking' (8.5 points).
The methodology used in the ECSI Portugal 2007 survey (ECSI European Customer
Satisfaction Index) is similar to that used by the European Commission to survey
customer satisfaction in 25 Member States, enabling comparisons to be made between the
results obtained in each country.
The ECSI Portugal 2007 Communications survey was carried out by the Higher Institute
of Statistics and Information Management at Lisbon's New University in partnership with
the Portuguese Quality Institute and the Portuguese Quality Association, with
sponsorship from Anacom.

54

SWOT Analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It
involves specifying the objective of the business venture or project and identifying the
internal and external factors that are favorable and unfavorable to achieving that
objective. The technique is credited to Albert Humphrey, who led a research project at
Stanford University in the 1960s and 1970s using data from Fortune 500 companies.

Strengths
Leadership Position
Global Brand Strength

Internal

High Geographical reach

Weaknesses
Centralized Control Low
Flexibility
High Consumer churn rates

Opportunities

External

Expanding marketing boundaries

Increased Competition

Growth through 3G

Market saturation in Europe

Strategic Alliances

Emergencies of Low cost

Brands

SWOT analysis of Vodafone

55

Threats

Strengths:
The main strength of Vodafone within the telecommunications market lies in its
brand image and recognition. Vodafone, having established a global presence and having
invested highly in marketing a differentiated image by promoting a Vodafone life style,
currently enjoys a differentiating advantage that, if exploited properly, can offer a lead in
competition. The presence of Vodafone in numerous countries within Europe as well as in
all part of the world enhances this image. It allows customers to travel and enjoy easily
the services of their home country operator. In the few countries that Vodafone is not
physically present (e.g. Norway) it has well established strategic alliances which allow
for a better service of mobile clients.

Weaknesses:
The expansion of Vodafone has been completed at the expense of direct control of
its operations. The company grew through a process of acquisitions of national
telecommunications companies (e.g. the acquisition of the third biggest Czech mobile
phone operator, Cesky mobile) rather than organic growth. This increased its subscribers
base quickly, offering direct market knowledge and immediate additions of customer
bases at the expense of direct effective control of the subsidiaries. At the same time
though, it implicitly imposed a centralized operational structure for the group, nominating
the UK headquarters as the leading business unit running a much centralised marketing
and handset procurement at group level. This has resulted in the neglect of local markets
and local differences, allowing market share to be gained by smaller local competitors.
Due to the highly saturated Western European market this has resulted in an increase in
the price elasticity of demand, with consumers becoming continuously price oriented.
This has resulted in high customer churn rates reaching the level of 32.8% in the UK
compared to O2s 24%.

56

Opportunities:
The telecommunications market, even though highly saturated in some regions
offers great potential due to the ageing population and the sophistication of the
consumers. It offers great opportunities through a careful market segmentation and
exploitation of particular profitable segments. Different strategies should be pursued
simple phones and simplified pricing plans to the ageing population and more updated,
sophisticated solutions for younger generations. The expanding Boundaries of the market
could provide further opportunities by allowing Vodafone to enter more aggressively into
fixedline service and to better enjoy the benefits of its high investment in 3G technology.
Moreover the company has undertaken its first steps in establishing strategic alliances to
develop customized solutions for endusers: Vodafone recently announced two new
partnerships, one with supermarket group ASDA to launch an ASDA branded mobile
service in the UK, and another with electrical retailer DSG International to provide
mobile solutions to small businesses. This could further be enhanced to avoid being a
lateentrant in this new method of distribution which offers access to a wide potential
customer base.

4.4) Threats:
The European part of Vodafones market is characterized by existing high levels
of competition. Major brands such as O2 and TMobile are exploiting the price
sensitivity of customers and in this way they are building a stronger image and presence
in the market. Indirect competition is also increasing further, through the presence of
Skype and other related (not only voice) Internetbased services. This combined with the
upcoming European legislative measures is expected to limit further the tariffs for the
network providers imposing further need for price cuts which could harm the bottom line
profitability of the company.

57

58

Objective of Study:
Following are the main objective to study about the customer satisfaction on
Vodafone.
To study telecommunication industry.
To study the company profile of Vodafone.
To study customer satisfaction of Vodafone.
To study various Marketing activities provided by Vodafone.
To study the various services provided by Vodafone.
To know the expectation of Vodafone Customers.

59

Research Methodology
Marketing research means the systematic gathering, recording, analyzing of data
about problems relating to the marketing of goods and services
Marketing research has proved an essential tool to make all the need of marketing
management. Marketing research therefore is the scientific process of gathering and
analyzing of marketing information to meet the needs of marketing management. But
gathering of observation is must be systematic. The systematic conduct of research
requires:
Orderliness, in which the measurements are accurate.
Impartiality in analysis and interpretation.

All of research can be categorized into basic and applied.

1. BASIC RESEARCH: - Basic Research is that intended to expand the body of
knowledge for the use of others.
2. APPLIED RESEARCH: - Applied Research is one, which is carried out to find
the solution for a particular problem or for guiding a specific decision. It is
usually private in nature.
My research on Vodafone is carried on for guiding specific decisions and its
results are useful only to Vodafone for taking particular decision regarding product
quality, staff and security. Hence the nature of my research study is APPLIED
RESEARCH .

60

Benefits of study:
There are many benefits related to take this study. Some of the benefits of taking
this study are as follows:
By analyzing this information, the company would be able to better design
schemes & services & target right prospects needs & wants.
More people will get aware about Vodafone that will increase profit level of
Vodafone.
This study helps to identify the behavior of consumer when there are no offers &
schemes from Vodafone.

61

Process of Marketing Research:

The marketing research is done in systematic process. The Researcher has
pursued the below process of marketing for my study at Vodafone:

Problem Identification

Research Design

Data Collection

Data Analysis & Interpretation

Research Report & Presentation

62

Problem Identification:
The first and the most important step of marketing research is properly defining
the problem. In order to identify the research problem two categories of problem should
be carefully noticed.

Here the researchers problems are: A number of customers are not satisfied with services, new schemes and offers.
A number of customers are not satisfied with the network coverage.
A number of customers are not satisfied with the current call rates of Vodafone.
A number of customers are not satisfied with the Free SMS schemes.
A number of customers are not satisfied with the service of customer care of
Vodafone.

RESEARCH DESIGN:
Research design indicates the methods and procedure of conducting research
study. Research design can be done in following three types:1 Exploratory Research:Exploratory research focuses on the discovery of new ideas and is generally
based on secondary data.
2 Descriptive Research:Descriptive research is undertaken when the researcher want to know the
characteristics of certain groups.

63

3 Causal or Experimental Researches:An experimental research is undertaken to identify causes and effect relationship
between two variables.
The Research Design is: Descriptive Research Design

Data Collection and Sampling:

A) Sources of Data Collection:Basically there are two types of data i.e. secondary and primary:
I)

Primary Data Collection:-

Primary data collection contains the following four types of methods: 1 Observation Method:
It contains Causal observation, Systematic observation, direct observation and
contrived observation.
2 Survey Method:
It contains Personal Interview, Telephone Interview and Mail Interview.
3 Experimental Method.
4 Panel Method.

II)

Secondary Data Collection: It can be collected from internal as well as external sources

1 Internal Source:

64

Various internal sources like employee, books, sales activity, stock availability,
product cost, etc.
2 External Sources:
Libraries, trade publications, literatures, etc are some important sources of
external data.
The Researcher has used primary data for the core purpose of the project and this
primary data has been gathered by survey method. The researcher has also used
secondary data

B) Data collection Tools:

To conduct a survey, the Researcher has selected a structured questionnaire as an
instruction for gathering valuable information from the customers. Questionnaire, which
is used for the survey, is consisting of questions and checklist questions to check the
customer feedback.

C) Sampling Plan:
The researcher has design a sampling plan that is consist of five decisions.
I)

Sampling unit:

Who is to be surveyed?
The Researcher has selected youngsters, businessmen, and housewives, employees to
conduct survey and to measure satisfaction level.

II)

Sampling types:

65

There are two types of sampling i.e. Probability Sampling and Non probability
Sampling.
i)

Probability Sampling : -

Probability sampling means each unit of the universe has equal chance of getting
selected. The most frequently used probability sampling methods are as below:
a) Simple Random Sampling.
b) Stratified Random Sampling.
c) Multi-stage Random Sampling.
d) Cluster Sampling.
e) Multi phase Sampling.
f) Replicated Sampling.

ii)

Non Probability Sampling:Non Probability sampling contains following methods:-

a) Judgment Sampling.
b) Convenience Sampling.
c) Panel Sampling.
d) Quota Sampling
For this purpose the researcher has used non probability convenience sampling.

66

III)

Sample Size:
Sample size means limited numbers of respondents covered under the research

study from a population and the researcher has taken a survey of 100 respondents to
know the satisfaction level of customer.

IV)

Sampling Area:
The researchers area for survey was lucknow
Sampling Unit:
Here the researcher has randomly selected the respondents of the lucknow city.

Data Analysis and Interpretation

After all the above steps are completed now the important step is data analyzing
and interpretation. For this there are various analytical and statistical tools. Some of these
tools are Percentage, Average, Dispersion, Co-relation, Co-efficient, etc.

67

68

IMPORTANCE
The customer is always right. This is incontrovertible. Customer belongs at the
heart of every business because without them there is no business. Without their money,
there is no exchange. Therefore, for any company, the customer is the starting point that
influence very move.
Marketing is based on this logic. It is process by which a company finds out what
its customers want and need, and then delivery it in a way that that makes as much profit
as possible.
Because marketing focuses on customers, the heart of every business and sources
of all income, it follows logically that marketing as a mere function of business to be
performed intermittently.
By focusing on different customers, a marketing orientation gives a company an
edge over those who focus more on different products, selling and the production.
Marketing opportunity arise when customer wants and need arise. There is no point in
trying to sell something for which there is no demand. The production process must be
informed by customer demand. Customer will not often buy just because it is exist.
Customers are satisfied when offered what are needs. In practice, they are not
all that easy to please. Marketing is also about predicting what customer will want and
need in the future. It is native have to think that customers needs and want remain
constant, adopting the customer-centered approach to a business will involve change.

69

70

Q1) Do you have a mobile phone?

Purpose:
The main purpose of this question is to know how many respondents use mobile
phone.

Suggestions

Yes

No

No. of respondents

93

Interpretation:
93% of the respondents are have a mobile phone while 7% of the respondents do
not have a mobile phone.

71

Q2 Which operators service do you use?

Operators service name

No. of respondents

Vodafone

87

Airtel

29

Idea

17

Reliance

21

BSNL

Tata Indicom

Interpretation:
Major respondents using mobile are enjoying Vodafone services. 16% of the
respondents use Airtel, 6% respondents use Idea while 12%, 4% and 2% respondents use
Reliance, BSNL and Tata Indicom respectively.

72

Q3) Are you aware about Vodafone?

Purpose:
The purpose behind this question is to know about the awareness of Vodafone
among all the respondents.

Suggestions

Yes

No

No. of respondents

100

Interpretation:
Here 100% of respondents are aware about Vodafone Services.

73

Q4) From which source you came to know about Vodafone?

Purpose:
The purpose behind this question is to know from which source the respondents
came to know about Vodafone.

Sources

No. of respondents

Advertisements

63

Hoardings

52

Newspapers

35

Mouth Publicity

26

Interpretation:
36% of the respondents are aware about Vodafone through Advertisements, 29%
are aware because of Hoardings while 20% and 15% of the respondents are aware
because of Newspapers and Mouth Publicity respectively.

74

Q5) Since how long you are using Vodafone Services?

Purpose:
The purpose behind this question is to know about the usage time of Vodafone
customers i.e. since how long they are using Vodafone services.

Time period

No. of respondents

Less than 1 month

12

2-6 months

19

6-12 months

22

More than 1 year

34

Interpretation:
Major Respondents using Vodafone are old customers. 39% of the respondents
use Vodafone services from past more than 1 year while the lowest is 14% respondents
using Vodafone services less than 1 month.

75

Q6) Which of the following services do you use of Vodafone?

Purpose:
The purpose behind this question is to know which services do the Vodafone
customer use, Pre-Paid or Post-Paid.

Services

No. of respondents

Pre-Paid

73

Post-paid

14

Interpretation:
84% of the respondents use pre-paid services while only 16% of the respondents
use post-paid services.

76

Q7) Which services are more helpful to you while using Vodafone
Services?
Purpose:
The purpose behind this question is to know which services are more helpful to the
respondent while using Vodafone.

Services

No. of respondents

Call Rates

27

SMS Rates

48

Network

36

Value Added Services

19

Interpretation:
Here major Respondents are youngsters so they mainly use SMS services of
Vodafone. 37% of the respondents use Vodafone for SMS services while only 14% of the
respondents use Vodafone for Value Added Services.

77

Q8) Do you call at customer care?

Purpose:
The purpose of this question is to know how many times and how often the
respondents call at customer care of Vodafone.

Suggestions

Yes

No

No. of respondents

76

11

Interpretation:
87% of the respondent calls at customer care while 13% respondents do not call at
customer care.

78

If yes, how often you call at customer care?

Time Period

No. of respondents

Daily

Once a week

12

Once a month

24

Occasionally

35

Interpretation
Major respondents here call customer care occasionally. 31% respondents
respondents call customer care once a month while 16% and 7% of respondents call once
a week and daily respectively.

79

Q9) For what reason you call at customer care?

Purpose:
The main purpose of this question is to know the reason of the respondents
regarding calling at customer care.

Reasons
Value Added Services
Information regarding new schemes
Complaining
Other queries

No. of respondents
21
23
42
36

Interpretation:
34% of respondents call at customer care for complaining purpose while 30%,
19% and 17% of respondents call customer care for other queries, information regarding
new schemes and value added services respectively.

80

Q10) Rate the following on the basis of your satisfaction.

Services

Excellent Very Good

Fairly Good Average

Poor

Network

31

29

17

SMS Rates

19

35

24

schemes 3

14

27

33

10

New

and offers
Customer Care

32

29

15

Recharge

12

28

31

14

20

43

19

Added 9

24

29

19

Outlets
Call Rates
Value
Services

SMS Rates:
Purpose:
81

The purpose of this analysis is to know the perspective of the customers of

vodafone regarding Rates of SMS.

Service

Excellent Very Good

SMS Rates 6

19

Fairly Good

Average

Poor

35

24

Interpretation:
Here major respondents are not much satisfied with the SMS rates of Vodafone as
major respondents are youngsters. 7% of respondents rate it excellent, 22% rate it very
good, 40% rate it fairly good, 28% rate it average, 3% rate it poor.

New Schemes and Offers:

Purpose:
82

The main purpose of this analysis is to the respondents perspective related to the
new schemes and offers provided by Vodafone.

Service

Excellent

New schemes 3

Very Good

Fairly Good Average

Poor

14

27

10

33

and offers

Interpretation:
Here major respondents are not much satisfied with new schemes and offers of
Vodafone. 38% respondents rate new schemes and offers as average, 31% respondents
rate it as fairly good, 16% rate it as very good while 12% and 3% rate it as poor and
excellent respectively.

Customer Care:
Purpose:
83

The main purpose of this analysis is to know about the satisfaction of customer
care service provided by Vodafone to their customers.

Service

Excellent

Customer Care 6

Very Good

Fairly Good Average

Poor

32

29

15

Interpretation:
Customer care service of Vodafone is better compared to some of the other
services. 37% respondents rate it as very good, 33% rate it as fairly good, 17% rate it as
average, and 6% and 7% rate it as poor and excellent respectively.

84

Outlets:
Purpose:
The purpose behind this analysis is to know about the satisfaction of the Vodafone
customers regarding recharge outlets.

Service

Excellent

Very Good

Fairly Good Average

Poor

Recharge

12

28

31

14

Outlets

Interpretation:
Recharge outlets of Vodafone are majorly rated on fairly good and very good
basis. 36% of the respondents rate it as fairly good, 32% rate it as very good, 16% rate it
as average, 14% rate it excellent and 2% respondents rate it as poor.

85

Call Rates:
Purpose:
The purpose behind this analysis is to know about the perception of vodafone
customers regarding different call rates.

Service

Excellent

Very Good

Fairly Good Average

Poor

Call Rates

20

43

19

Interpretation:
Major percentage of respondents are not happy with the call rates of Vodafone.
49% of respondents rate call rates of vodafone as fairly good, 23% rate it as very good,
22% rate it as average while 4% and 2% respondent rate it as poor and excellent
respectively.

Value Added Services:

86

Purpose:
The purpose behind this analysis is to know about the perception of vodafone
customers regarding Value Added Services.

Service
Value

Excellent
Added 9

Very Good

Fairly Good Average

Poor

24

29

19

Services

Interpretation:
Value added services of Vodafone are quite feasible as compared to some of the
other services. 33% respondents rate it as fairly good, 28% rate it as very good, 22% rate
it as average while 10% and 7% rate it as excellent and poor respectively.

Q12) Why you are not using Vodafone Services?

Purpose:
87

The purpose of this question is to know why other respondents do not use Vodafone
services.

Reasons

No. of respondents

Lack of awareness

High Prices

Poor Services

Poor Network

Interpretation:
6 dont use Vodafone services because of high prices. 3 respondents dont use
Vodafone services because of poor services while 2 respondents each dont use vodafone
services because of lack of awareness and poor network.

Q13) Would you like to recommend Vodafone to others?

Purpose:
88

The purpose of this question is to know the recommendations of the respondents

towards Vodafone, whether they would like to recommend the Vodafone services to
others or not.

Suggestions

Yes

No

No. of respondents

78

Interpretation:
90% of the Vodafone customers would like to recommend Vodafone services to
others while 10% of the Vodafone Customers wont recommend to others.

89

Age analysis:
Purpose:
The main purpose of this analysis is to know how many respondents belong to a
particular age of group.

Age

Below 18

18-25

26-50

51 or above

Respondents

54

23

Interpretation:
Major respondents are youngsters i.e. 62% of the respondents belong to age group
of 18-25, 26% respondents belong to age group of 26-50, 7% of respondents belong to 51
or above age group while only 5% of the respondents belong to age group of below 18
years.

90

Age wise analysis(NETWORK):

Purpose:
The main purpose of this analysis is to know the perception of different
respondents of differnet age groups regarding network service.

Age
Ratings
Excellent
Very good
Fairly good
Average
Poor
Total

Below 18
1
2
0
1
0
4

18-25
19
18
10
5
2
54

26-50
9
7
6
1
0
23

51 or above
2
2
1
0
1
6

Total
31
29
17
7
3
87

Interpretation:
Here major respondents rating network as excellent are youngsters that include
the age group of 18-25, the same is the case with all the rating of this service.

91

Age wise analysis (SMS Rates):

Purpose:
The main purpose of this analysis is to know the perception of different
respondents of differnet age groups regarding rates of SMS.
Ratings
Excellent
Very good
Fairly good
Average
Poor
Total

Age
Below 18
0
1
1
2
0
4

18-25
1
12
27
11
3
54

26-50
3
5
5
10
0
23

51 or above
2
1
2
1
0
6

Total
6
19
35
24
3
87

Interpretation:
Major respondents are youngsters and they are not much satisfied with the SMS
rates of Vodafone.

Age wise analysis (Call Rates):

92

Purpose:
The main purpose of this analysis is to know the perception of different
respondents of differnet age groups regarding call rates.
Ratings

Age
Below 18
0
1
2
1
0
4

Excellent
Very good
Fairly good
Average
Poor
Total

18-25
2
11
26
13
2
54

26-50
0
6
12
4
1
23

51 or above
0
2
3
1
0
6

Total
2
20
43
19
3
87

Interpretation:
Major respondents rate charges of calls as fairly good. 26 respondents falling in
age group of 18-25 rate it as fairly good.

93

94

95

96

97

LIMITATIONS

1. Sample size was small for the research therefore there can be biasness in the
findings.

2. Unfavorable behavior of respondents.

3. Survey was conducted in restricted area.

4. Respondents were confused about their opinions.

98

99

Books:
Marketing Management Philip Kotler, Kevin Lane Keller.

Websites:
http://www.vodafone.com/start/media_relations/news/local_press_releases/por

tugal/portugal_press_release/vodafone_had_highest.html
http://en.wikipedia.org/wiki/Customer_satisfaction
http://en.wikipedia.org/wiki/Hutch_(Indian_cellular_company)
http://en.wikipedia.org/wiki/Vodafone
http://bora.nhh.no/bitstream/2330/1919/1/Saplitsa%202008.pdf
www.anacom.pt/render.jsp?contentId=606658
www.iimcal.ac.in/community/consclub/reports/telecom.pdf
www.scribd.com

100

101

Q1) Do you have a mobile phone?

o Yes
o No
Q2) Are you aware about telecommunications service?
o Yes
o No
If yes, then which operators Service do you use?
o Vodafone

(Multi-choice)

o Airtel
o Idea
o Reliance
o BSNL
o Tata Indicom ( If not Vodafone then go to Q12 )
Q3) Are you aware about Vodafone?
o Yes
o No

(If No, then go to Q11 )

Q4) From which source you came to know about Vodafone?

o Advertisement
o Hoardings
o Newspapers
o Mouth Publicity
Q5) Since how long you are using Vodafone services?
o Less than 1 month
o 2-6 months
o 6-12 months
o More than 1 year

102

(Multi-choice)

Q6) Which of the following services do you use of Vodafone?

o Pre-paid
o Post-paid
Q7) Which services are more helpful to you while using Vodafone services?
o Call rates

(Multi-choice)

o SMS service
o Network
o Value Added Services
Q8) Dou you call at customer care?
o Yes
o No
If yes, how often you call at customer care?
o Daily
o Once a week
o Once a month
o Occasionally
Q9) For what reason you call at customer care?
o Value added services
o Information regarding new schemes
o Other queries
o Complaining

103

(Multi-choice)

104

Q10) Rate the following services on the basis of your satisfaction.

Services

Excellent

Very Good

Fairly good

Average

Network
SMS rates
New schemes and offers
Customer Care
Recharge outlets
Call Rates
Value Added Services

Q11) What makes you unaware about Vodafone?

o Less Advertisements
o Less Publicity
o Others
(If others then mention ________________________)
Q12) Why you are not using Vodafone services?
o

Lack of awareness

High Prices

Poor Services

Poor network

Q13) Would you like to recommend Vodafone to others?

105

(Multi-choice)

Poor

o Yes
o No

Q14) Give your suggestions to help in serve you better.

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

Name: ________________
Age: ___ years
Sex: Male/Female
Contact no.: ___________
Signature: __________

106