costumer satisfaction and preferences towards vodafone and bsnl

7/30/2019 costumer satisfaction and preferences towards vodafone and bsnl

1/32

1

1. INTRODUCTION

Telecommunication is the transmission of information over significant distances to

communicate. In earlier times, telecommunications involved the use of visual signals, such

as beacons, smoke signals, semaphore telegraphs, signal flags, and optical heliographs, or

audio messages via coded drumbeats, lung-blown horns, or sent by loud whistles, for

example. In the modern age of electricity and electronics, telecommunications now also

includes the use of electrical devices such as telegraphs, telephones, and teleprinters, the

use of radio and microwave communications, as well as fibres optics and their associated

electronics, plus the use of the orbiting satellites and the Internet. A revolution in

wireless telecommunications began in the first decade of the 20th century with

pioneering developments in wireless radio communications by Nikola Tesla and

Guglielmo Marconi.

Marconi won the Nobel Prize in Physics in 1909 for his efforts. Other highly notable

pioneering inventors and developers in the field of electrical and electronic

telecommunications include Charles Wheatstone and Samuel Morse (telegraph),

Alexander Graham Bell (telephone), Edwin Armstrong, and Lee de Forest (radio), as well as

John Logie Baird and Philo Farnsworth (television). The world's effective capacity to

exchange information through two-way telecommunication networks grew from 281

petabytes of (optimally compressed) information in 1986, to 471 petabytes in 1993, to 2.2

(optimally compressed) exabytes in 2000, and to 65 (optimally compressed) exabytes

in 2007. This is the informational equivalent of 2 newspaper pages per person per day in

1986, and 6 entire newspapers per person per day by 2007. Given this growth,

telecommunications play an increasingly important role in the world economy and theworldwide telecommunication industrys revenue was estimated to be $3.85 trillion in 2008.

The service revenue of the global telecommunications industry was estimated to be $1.7

trillion in 2008, and is expected to touch $2.7 trillion by 2013.

The telecom sector reforms were undertaken in three phases. The first phase began in the

80s, when private manufacturing of customer promise equipment was given a go-ahead in

1984. A proliferation of individual STD/ISD/PCO network also took place throughout the

country by way of private individual franchises. Maharashtra Telephone Nigam Limited


2/32

2

(MTNL) was created out of the department of telecommunication (DOT) to handle the

sectors of Mumbai and Delhi respectively. A high powered telecom commission was set up

in 1989. Later Videsh Sanchar Nigam (VSNL) became the international service provider

catering to telecom services originating from India. The second phase of reforms

commenced in 1991 with the announcement of new economic policy. The government

delivered the manufacturer of telecom equipment in 1991. It also ahead up radio services in

1992. In 1994, basic telephony was opened to the private sector by granting operating

licenses to six companies. Also part of the second phase was the introduction of the National

Telecom Policy 1994. It emphasized universal service and qualitative improvement in

telecom services among other objectives. An independent statutory regulatory was

established in 1997, Internet services were opened up in 1998.

The third phase & reforms began with the announcement of the new telecom policy in 1999.

The theme of NTP was to usher in full competition through a restricted entry of private

players in all service sectors. The policy favoured the migration of existing operators from

the era of fixed license fee regime to that of revenue sharing. The policy further

declined the strengthen of the regulator opening up of international long distance (ILD) and

National Long Distance (NLD) services to the private sector and corporation of telecom

services. The year 2001 witnessed the entry of private operators in offering basic telephony

and NLD services.

The telecom sector began witnessing a trend of growth with these reforms basic

services were opened for unlimited competition more licenses were issued to the private

sector for cellular services. There has also been a considerable increase in the rate of tale

density. The telecom sector has thus completely changed both in terms of coverage and

efficiency of services. Provision of landlines a demand, digital telephone, exchanges and

the acceptability of optic fibre and wireless technology are a few instances of the

change that took instances of the change that took place in the industry.

Cellular telephone services have achieved great commercial success; because users

recognize the mobile telephone access can improve productivity and enhance safety. A new

subscriber is opting for cellular services for personal security, safety and convenience.

Mobile service providers will be benefited from the research, the ways to improve their

quality of service and to support more users in their system.


3/32

3

1.1 History

Started in 1851 when the first operational land lines were laid by the government near

Calcutta (seat of British power). Telephone services were introduced in India in 1881. In

1883 telephone services were merged with the postal system. Indian Radio Telegraph

Company (IRT) was formed in 1923. After independence in 1947, all the foreign

telecommunication companies were nationalized to form the Posts, Telephone and Telegraph

(PTT), a monopoly run by the government's Ministry of Communications. Telecom sector

was considered as a strategic service and the government considered it best to bring under

state's control. The first wind of reforms in telecommunications sector began to flow in

1980s when the private sector was allowed in telecommunications equipment manufacturing.

In 1985, Department of Telecommunications (DOT) was established. It was an exclusiveprovider of domestic and long-distance service that would be its own regulator (separate from

the postal system). In 1986, two wholly government-owned companies were created: the

Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and

Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas.

In 1990s, telecommunications sector benefited from the general opening up of the economy.

Also, examples of telecom revolution in many other countries, which resulted in better

quality of service and lower tariffs, led Indian policy makers to initiate a change process

finally resulting in opening up of telecom services sector for the private sector. National

Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive roadmap for the

Indian telecommunications sector. In 1997, Telecom Regulatory Authority of India (TRAI)

was created. TRAI was formed to act as a regulator to facilitate the growth of the telecom

sector. New National Telecom Policy was adopted in 1999 and cellular services were also

launched in the same year.

Telecommunication sector in India can be divided into two segments: Fixed Service Provider

(FSPs), and Cellular Services. Fixed line services consist of basic services, national or

domestic long distance and international long distance services. The state operators (BSNL

and MTNL), account for almost 90 per cent of revenues from basic services. Private sector

services are presently available in selective urban areas, and collectively account for less than

5 per cent of subscriptions. Cellular services can be further divided into two categories:

Global System for Mobile Communications (GSM) and Code Division Multiple Access


4/32

4

(CDMA). The GSM sector is dominated by Airtel, Vodafone, and Idea Cellular, while the

CDMA sector is dominated by Reliance and Tata Indicom. Opening up of international and

domestic long distance telephony services are the major growth drivers for cellular industry.

Cellular operators get substantial revenue from these services, and compensate them for

reduction in tariffs on airtime, which along with rental was the main source of revenue.

1.2 Growth of Indian Telecommunication Industry

The breathtaking growth of the telecommunication companies in India over the last twenty

years has made a history. The economic resurgence affected in the early 1990s brought

around a paradigm shift on the overall business scenario of India. With the arrival of private

telecommunication companies in India, the industry observed introduction of mobile phones

into the Indian market and it became extremely popular amongst the Indian masses.

India's telecom sector has shown huge expansion in the recent years in all respects of

industrial growth due to liberalization in Government policies after 1991. Removal of

restrictions on foreign capital investment and industrial de-licensing has allowed various

private players to enter into the Indian telecommunication market.

Today, The Indian telecommunication industry is the worlds fastest growing industry with

791.38 million mobile phone subscribers as of February 2011 according to Telecom

Regulatory Authority of India (TRAI). It is also the second largest telecommunication

network in the world in terms of number of telecommunications industry in the world. It is

projected that India will have 1.159 billion mobile subscribers by 2014. India has nearly 200

million telephone lines making it the third largest network in the world after China and USA.Furthermore, projections by several leading global consultancies indicate that the total

number of subscribers in India will exceed the total subscriber count in the China by 2014.

With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world.

The industry is expected to reach a size of344,921crore rupees (US$76.57 billion) by 2014 at

a growth rate of over 26 per cent, and generate employment opportunities for about 10

million people during the same period. According to analysts, the sector would create direct

employment for 2.8 million people and for 7 million indirectly.


5/32

5

1.3 About The Topic

This minor project has been carried out to study the customer (here the students) satisfaction

and preferences towards VODAFONE and BSNL in RGSC, BHU. Research activities with

the help of well-structured questionnaire have been carried out to interact with the customers

for their feedback and also concentrated on a comparative study between VODAFONE and

BSNL through direct interview method.

The study at hand will throw light on the customer satisfaction status on various service

offerings offered by VODAFONE and BSNL in RGSC, BHU.

Consumer PreferencesConsumer preferences is used primarily to mean to select an option that has the

greatest anticipated value among a number of options by the consumer in order tosatisfy his/her needs or desires. Preferences indicate choices among neutral or more

valued options available. The preference of the consumer is the result of their

behaviour they show during searching, purchasing and disposing the products.

Consumer SatisfactionEvery human being is a consumer of different produces. If there is no consumer, there

is no business. Therefore, consumer satisfaction is very important to every business

person. The consumer satisfaction after purchase depends on the product performancein relation to his/her expectations.

Consumer satisfaction is the level of a person's felt state resulting from comparing a

product's perceived performance (outcome) in relation to the person's expectations.

This satisfaction level is a function of difference between perceived performance and

expectations. If the product's performance exceeds expectation, the customer is highly

satisfied or delighted. If the performance matches the expectations, the customer is

satisfied. If the products performance falls short of expectations, the customer is

dissatisfied.

Consumer satisfaction or dissatisfaction is the feeling derived by the consumer when

he /she compares the product's actual performance with the performance that he

expects out of it. Consumers make their expectations from the service quality, service,

delivery, communications, past experiences and references.


6/32

6

2. INDUSTRY PROFILE: VODAFONE AND BSNL

2.1 VODAFONE

Vodafone India

Type Private

Industry Telecommunications

Predecessor(s) Hutchison Essar

Founded 1994

Headquarters Mumbai,Maharashtra,India

Products Mobile telephony&Wirelessbroadbandservices

Owner(s) Vodafone Group

Parent Vodafone International Holdings

BV (VIH)

Website www.vodafone.inwww.vodafone.com

Vodafone India, formerly Vodafone Essar and Hutchison Essar, is the third largest mobile

network operator in India after Airtel by subscriber base. It is based in Mumbai,

Maharashtra. It has approximately 140.84 million customers as of November 2011. On July

2011, Vodafone Group agreed terms for the buy-out of its partner Essar from its Indian
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Privately_held_companyhttp://en.wikipedia.org/wiki/Privately_held_companyhttp://en.wikipedia.org/wiki/Telecommunicationhttp://en.wikipedia.org/wiki/Telecommunicationhttp://en.wikipedia.org/wiki/Hutchison_Telecommunications_International_Limited#Hutchison_Indiahttp://en.wikipedia.org/wiki/Hutchison_Telecommunications_International_Limited#Hutchison_Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mobile_telephonyhttp://en.wikipedia.org/wiki/Mobile_telephonyhttp://en.wikipedia.org/wiki/Wireless_broadbandhttp://en.wikipedia.org/wiki/Wireless_broadbandhttp://en.wikipedia.org/wiki/Wireless_broadbandhttp://en.wikipedia.org/wiki/Wireless_broadbandhttp://en.wikipedia.org/wiki/Vodafone_Grouphttp://en.wikipedia.org/wiki/Vodafone_Grouphttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Vodafone_Group_Plchttp://en.wikipedia.org/wiki/Vodafone_Group_Plchttp://en.wikipedia.org/wiki/Vodafone_Group_Plchttp://en.wikipedia.org/wiki/Vodafone_Group_Plchttp://www.vodafone.in/http://www.vodafone.com/http://en.wikipedia.org/wiki/File:Vodafone_logo.svghttp://www.vodafone.com/http://www.vodafone.in/http://en.wikipedia.org/wiki/Vodafone_Group_Plchttp://en.wikipedia.org/wiki/Vodafone_Group_Plchttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Vodafone_Grouphttp://en.wikipedia.org/wiki/Wireless_broadbandhttp://en.wikipedia.org/wiki/Wireless_broadbandhttp://en.wikipedia.org/wiki/Mobile_telephonyhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Hutchison_Telecommunications_International_Limited#Hutchison_Indiahttp://en.wikipedia.org/wiki/Telecommunicationhttp://en.wikipedia.org/wiki/Privately_held_companyhttp://en.wikipedia.org/wiki/Types_of_business_entity


7/32

7

mobile phone business. The UK firm paid $5.46 billion to its Indian counterpart to take Essar

out of its 33% stake in the Indian subsidiary. It will leave Vodafone owning 74% of the

Indian business, while the other 26% will be owned by Indian investors, in compliance with

Indian law. On 11 February, 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 8 May,

2007. It offers both prepaid and post-paid GSM cellular phone coverage throughout India

with good presence in the metros.

Vodafone India provides 2.75G services based on 900 MHz and 1800 MHz digital GSM

technology. Vodafone India launched 3G services in the country in the January-March quarter

of 2011 and plans to spend up to $500 million within two years on its 3G networks . he brand

trust report 2011 published by Trust Research Advisory has ranked Vodafone as the 16th

most trusted brand in India.

Timeline

1992: Hutchison Whampoa and MAX group establish Hutchison Max.

2000: Acquisition of Delhi operations and entry into Calcutta (now Kolkata) and Gujarat

markets through Essar acquisition.

2001: Won auction for licences to operate GSM services in Karnataka, Andhra Pradesh and

Chennai.

2003: Acquired AirCel Digilink (ADILESSAR Subsidiary) which operated in Rajasthan,

Uttar Pradesh East and Haryana telecom circles and rebranded it 'Hutch'

2004: Launched in three additional telecom circles of India namely Punjab, Uttar Pradesh(West) and West Bengal.

2007: Vodafone acquires a 67% stake in Hutchison Essar for $10.7 billion. The company is

renamed Vodafone Essar. 'Hutch' is rebranded to 'Vodafone'.

2008: Vodafone acquires the licences in remaining 7 circles and has starts its pending

operations in Madhya Pradesh circle, as well as in Orissa, Assam, North East and Bihar.

2011: Vodafone Group buys out its partner Essar from its Indian mobile phone business. It

paid $5.46 billion to take Essar out of its 33% stake in the Indian subsidiary. It left Vodafone

owning 74% of the Indian business.


8/32

8

2.2 BSNL

Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation

Limited) is a public sector communications company in India. It is the India's largesttelecommunication company with 25.14% market share as on December 31, 2007. Its

headquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New

Delhi. It has the status of Mini-Ratna - a status assigned to reputed Public Sectorcompanies

in India.

BSNL is India's oldest and largest Communication Service Provider (CSP). Currently BSNL

has a customer base of 68.5 million (Basic & Mobile telephony). It has footprints throughout

Type State-owned enterprise

Industry Telecommunications

Founded 19th century, incorporated 2000

Headquarters New Delhi, India

Key people R.K.Upadhyay (Chairman & MD)

Products Fixed lineandmobile telephony,Internetservices

Revenue 279.33 billion (US$5.1 billion)(2011-12)

Net income 88.51billion (US$1.6 billion)(201112)

Total assets 1176.32 billion (US$22 billion)

(201112)

Owner(s) Government of India

Employees 254,499 (as on 27 February 2013)

Website www.bsnl.co.in
https://en.wikipedia.org/wiki/Types_of_business_entityhttps://en.wikipedia.org/wiki/Government-owned_corporationhttps://en.wikipedia.org/wiki/Government-owned_corporationhttps://en.wikipedia.org/wiki/Telecommunicationshttps://en.wikipedia.org/wiki/Telecommunicationshttps://en.wikipedia.org/wiki/New_Delhihttps://en.wikipedia.org/wiki/New_Delhihttps://en.wikipedia.org/wiki/Landlinehttps://en.wikipedia.org/wiki/Landlinehttps://en.wikipedia.org/wiki/Mobile_phonehttps://en.wikipedia.org/wiki/Mobile_phonehttps://en.wikipedia.org/wiki/Mobile_phonehttps://en.wikipedia.org/wiki/Internethttps://en.wikipedia.org/wiki/Internethttps://en.wikipedia.org/wiki/Net_incomehttps://en.wikipedia.org/wiki/Net_incomehttps://en.wikipedia.org/wiki/Assethttps://en.wikipedia.org/wiki/Government_of_Indiahttps://en.wikipedia.org/wiki/Government_of_Indiahttp://www.bsnl.co.in/http://www.bsnl.co.in/http://www.bsnl.co.in/https://en.wikipedia.org/wiki/Government_of_Indiahttps://en.wikipedia.org/wiki/Assethttps://en.wikipedia.org/wiki/Net_incomehttps://en.wikipedia.org/wiki/Internethttps://en.wikipedia.org/wiki/Mobile_phonehttps://en.wikipedia.org/wiki/Landlinehttps://en.wikipedia.org/wiki/New_Delhihttps://en.wikipedia.org/wiki/Telecommunicationshttps://en.wikipedia.org/wiki/Government-owned_corporationhttps://en.wikipedia.org/wiki/Types_of_business_entity


9/32

9

India except for the metropolitan cities of Mumbai and New Delhi which are managed by

MTNL. As on December 31, 2007 BSNL commanded a customer base of 31.7 million Wire

line, 4.1 million CDMA-WLL and 32.7 million GSM Mobile subscribers. BSNL's earnings

for the Financial Year ending March 31, 2007 stood at INR 397.15b (US$ 9.67 b) with net

profit of INR 78.06b (US$ 1.90 billion). Today, BSNL is India's largest Telco and one of the

largest Public Sector Undertaking with estimated market value of $ 100 Billion.

Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest

Telecommunications Company providing comprehensive range of telecom services in India:

Wire line, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service etc. Within a

span of five years it has become one of the largest public sector units in India.

BSNL has installed Quality Telecom Network in the country and now focusing on improving

it, expanding the network, introducing new telecom services with ICT applications in villages

and wining customer's confidence. Today, it has about 47.3 million line basic telephone

capacity, 4 million WLL capacity, 20.1 Million GSM Capacity, more than 37382 fixed

exchanges, 18000 BTS, 287 Satellite Stations, 480196 Rkm of OFC Cable, 63730 Rkm of

Microwave Network connecting 602 Districts, 7330 cities/towns and 5.5 lakhs villages.

BSNL is the only service provider, making focused efforts and planned initiatives to bridge

the Rural-Urban Digital Divide ICT sector. In fact there is no telecom operator in the country

to beat its reach with its wide network giving services in every nook & corner of country and

operates across India.

BSNL cellular service, Cell One, has more than 17.8 million cellular customers, garnering 24

percent of all mobile users as its subscribers. That means that almost every fourth mobile user

in the country has a BSNL connection. In basic services, BSNL is miles ahead of its rivals,

with 35.1 million Basic Phone subscribers i.e. 85 per cent share of the subscriber base and 92

percent share in revenue terms.

The company has vast experience in Planning, Installation, network integration and

Maintenance of Switching & Transmission Networks and also has a world class ISO 9000

certified Telecom Training Institute.


10/32

10

3. REVIEW OF LITERATURE

The references for the literature review used for the problem in hand are as follows:-

Leonard L. BerryandA. Parasuraman (1991) showed that inspired leadership, acustomer-centered corporate culture, exceptional service-system design and perfect

use of information and technology are vital for attaining superior service quality and

service marketing.

Ruth M. Boltonand James H. Drew (1991) developed a model of how customerswith prior experiences and expectations assess service performance levels, overall

service quality and service value.

Pratibha A. Dabholkar (1993) stated that customer satisfaction and service qualityare both important tools for creating competitive advantage. However, there is a lack

of consensus on whether the two are separate constructs and how they should be

measured.

Bepko (2000) says that among the areas which need to be addressed in service qualityresearch is the nature of consumer expectations across the range of intangibility .

Carsten Fink et al. (2001) examined the liberalization of the basictelecommunications sector in Asian countries in their research paper for World Bank,

with a view to identify the elements of good policy and examine how it can be

promoted through multilateral negotiations.

Nandhini (2001) examined that attitude of the respondents using cell phones were notinfluenced by either education or occupation and income.

Liu (2002) found that the choice of a cellular phone is characterized by two attitudes:attitude towards the mobile phone brand on one hand and attitude towards the

network on the other.

Samuvel (2002) observed that most of the respondents consider size, quality, price,instrument servicing as an important factors for selecting the handset while majority

of the respondents are satisfied over the payment system, quality of services, coverage

area and the process of attending the complaints regarding their mobile service

provider.

Maran et al. (2004) studied the consumer perceptions about fixed telephone lines inChennai. The objectives of the study was (1) to find the most influencing factor in


11/32

11

selection of service provider, and (2) to measure customer perception and satisfaction

as regards the service provided.

Shanthi (2005) throws light on the telecommunication market of India in the scenarioof falling prices, hyper competition and increasing attrition rates. The author provides

a provides a predictive churn model for telecom segment, to allow a qualitative

insight for understanding the structure and methodology of churn management in the

Indian telecom sector, and also discusses the level of applicability of such models in

the Indian context.

Kalpana and Chinnadurai (2006) found that advertisement play a dominant role ininfluencing the customers but most of the customers are of opinion that promotional

strategies of cellular companies are more sale oriented rather than customer oriented.

Haque et al (2007) suggested that price, service quality, product quality &availability, and promotional offer play a main and crucial role during the time to

choose telecommunication service provider.

Seth et al (2008) analyzed that there is relative importance of service qualityattributes and showed that responsiveness is the most importance dimension followed

by reliability, customer perceived network quality, assurance, convenience, empathy

and tangibles.

Customer satisfaction is a personal feeling of either pleasure or disappointment resulting from

the evaluation of services provided by an organization to an individual in relation to

expectations. Service providers frequently place a higher priority on customer satisfaction,

because it has been seen as a prerequisite to customer retention. As a positive outcome of

marketing activities, high customer satisfaction leads to repeat visitation to stores, repeat

product purchases, and word-of-mouth promotion to friends, while low customer satisfaction

has been associated with complaining behaviour. A satisfied customer often stays loyal

longer, and is likely to patronize the firm in future. Customer satisfaction can be

conceptualized as either transaction-specific satisfaction or cumulative satisfaction.

Transaction-specific satisfaction is a customers evaluation of his or her experience and

reactions to a specific company encounter. Cumulative satisfaction refers to customers

overall evaluation of patronage experience from inception to date.


12/32

12

4. RESEARCH METHODOLOGY

Research is a common parlance refers to a search for knowledge. Here the research

methodology followed is descriptive research. It includes surveys and fact-finding enquiries.

The descriptive research design must make enough provision for protection against bias and

must maximize reliability.

The sample size for the study is 50. The sample unit of the study included students of RGSC,

BHU. For the study in hand, both the primary and secondary data is collected. The primary

data for the study is collected directly from respondents through structured questionnaire. The

secondary data for the study is collected from different sources such as journals, articles,

magazines, internet, books & reports related to mobile phone service providers. With the help

of the questionnaire I have collected the data through simple random sampling. Then I

analyzed the outcomes by the answers provided by the respondents and based on the result I

have made the analysis report. I have used the Percentage Analysis Method with proper

charts/diagrams and average method to complete the analysis report successfully.

Percentage Analysis Method: Simple percentage analysis method refers to special kind of

ratio. With the help of absolute figures, it will be difficult to interpret any meaning from the

collected data, but when percentages are found out, and then it becomes easy to find the

relative difference between two or more attributes.

Percentage = No. of Respondents/Total No. of Respondents x 100

Research design- Comparative Research tools- Questionnaire survey Research technique- Interpretation is based on percentage analysis. Sampling technique- Random Sampling. Elements- Students of RGSC Source of data- Primary & Secondary Sampling size- 50


13/32

13

4.1 PROJECT OBJECTIVES

The key objectives of the project are:-

To ascertain the attributes that customer prefers in selecting VODAFONE & BSNLservice provider.

To study the consumers satisfaction level towards various services offered byVODAFONE & BSNL.

Sample size

For carrying out any research or study on any subject it is very difficult to cover even 10% of

the total population. Therefore the sample size has to be decided for a meaningful conclusion.

For designing the sample size, it was thought proper to cover a very small percentage of

population.

The sampling technique, which is used in the project, is Random Sampling. For the survey,

the students from the hostels of RGSC, BHU were randomly chosen. The sample size is 50.

4.2 RESEARCH DESIGN

The study conducted is a descriptive statistical study as the research is used to obtain

information concerning the current satisfaction and preference level of the students and the

result obtained is precise and rational. The methods involved the questionnaire survey which

describes the present status and tries to bring out the comparison between mobile phone

providers. In this study the information is collected without changing the environment (i.e.,

nothing is manipulated). The study brings out the attitude and behaviour of a particular group

towards the mobile phone provider. The study involved interaction with the participants

through surveys or interviews to collect the necessary information so that proper analysis can

be done regarding the research problem.

The study is statistical because throughout the study all the similar samples are selected and

group together. All the similar responses are taken together as one and their percentages are

calculated.

Thus, this, descriptive statistical study is the best study for this purpose as it provides the

necessary information which is utilize to arrive at a concrete decision.


14/32

14

4.3 DATA COLLECTION

Data, facts, figures, other relevant material of past and present and surveying are the basis for

study and analysis. Without an analysis of factual data no specific inferences can be drawn on

the questions under study. Inferences based on imagination or guesses cannot provide correct

answer to research questions. The relevance adequacy and reliability of data determine the

quality of the findings of a study.

For the purpose of the present study, data from two sources has been collected namely

primary and secondary data.

Primary Data: It is source from which the researcher collects the data. It is a firsthand data,

which is used directly for the analysis purposes. Primary data always gives the researcher afairer picture. In the present study primary data has been collected using questionnaires. For

the purpose of collecting the same, 50 respondents have been randomly selected. Even the

response of the respondents was taken into consideration. In this study, primary data plays a

vital role for analysis, interpretation, conclusion and suggestions.

In this method questionnaire were distributed to the respondents and they were asked to

answer the questions in the questionnaire. The questionnaires were structured non-disguised

questionnaire because the questions, which the questionnaire contained, were arranged in

a specific order besides every question asked were logical for the study, no question can

be termed as irrelevant. The questionnaire, were non-disguised because the questionnaire

were constructed so that the objective is clear to the respondent. The respondents were aware

of the objective. They knew why they asked to fill the questionnaire.

Secondary Data: Secondary data is collected and compiled for other purposes. Secondary

data also plays a key role in providing various other data which will influence the conclusion.

The secondary data for the study is collected from different sources such as journals, articles,

internet, books and reports related to mobile phone service providers.

Secondary data helps to make primary data collection more specific since with the help of

secondary data we are able to make out what are the gaps and deficiencies and what

additional information needs to be collected. It helps to improve the understanding of the

problem.


15/32

15

4.4 DATA TABULATION AND ANALYSIS

1. Which mobile phone service do you use?

Options Number of Respondents Percentage of Respondents

1.Vodafone 38 76%

2. BSNL 8 16%

3. Others 4 8%

Total 50 100%

Analysis: - From the survey I found that most popular brand in RGSC, BHU is Vodafone.

2. Reasons for selecting the particular service:-

a. Vodafone


1. Price - -

2. Brand Name - -

3. Network Coverage 31 81.57%

4. Tariff - -

5. Easy Documentation - -

6. Call Rate - -

7. Voice Clarity - -

8. Internet Facility 7 18.43%

Total 38 100%

76%

16%

8%

VODAFONE

BSNL

OTHERS


16/32

16

b. BSNL


1. Price - -

2. Brand Name 3 37.5%

3. Network Coverage - -

4. Tariff 1 12.5%

5. Easy Documentation - -

6. Call Rate 4 50%

7. Internet Facility - -

Total 8 100%

Analysis: - From the survey it has been found that majority customers have selected

Vodafone due to its network coverage while few have considered it for its internet facility.

Whereas the main purpose of selecting BSNL as mobile phone service provider is due to its

brand name and call rate.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

Brand Name Network

Coverage

Tariff Call Rate Internet

Facility

81.57%

0.00% 0.00%

18.43%

37.50%

0.00%

12.50%

50.00%

0.00%

VodafoneBSNL


17/32

17

3. Who influence you to use a particular mobile phone service?

Analysis: - Consumers himself are mostly taking decision at the time of buying the mobile

operator and also they are influenced by their friends to some extent.

4. Are you aware of the following services provided by mobile service provider?

Awareness

Towards

Various

Services

Number of Respondents

Aware Unaware Neutral Total

No. % No. % No. % No. %

1. PeriodicalOffers

26 52% 10 20% 14 28% 50 100%

2. Call Charges 35 70% 11 22% 4 8% 50 100%

3. NetworkCoverage

39 78% 6 12% 5 10% 50 100%

4. Value AddedServices 22 44% 15 30% 13 26% 50 100%

62%

18%

12%

8%

Self

Friends

Dealers

Advertisement


1 .Se 31 62%

2. Friends 9 18%

3. Colleagues 0 0%

4. Dealers 6 12%

5. Advertisements 4 8%

Total 50 100%


18/32

18

Analysis: - According to the survey majority customers are aware about the call charges,

network coverage, periodical offers and value added services.

5. What do you prefer towards mobile phone service provider on the basis of purpose?

Options Number of Respondents Percentage of RespondentsIncoming & Outgoing Calls 40 80%

SMS - -

Internet 10 20%

Total 50 100%

Analysis: - According to the survey while selecting the mobile phone operator on the basis of

52.00%

70.00%

78.00%

42.00%

20.00%22.00%

12.00%

32.00%28.00%

8.00% 10.00%

26.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

Periodical Offers Call Charges Network Coverage Value Added

Services

Aware

Unaware

Neutral

80%

20%

Incoming &Outgoing Calls

Internet


19/32

19

purpose customers preferred incoming and outgoing calls the most.

6. Tell me about your experience of getting, owning and using a mobile service

operator?

a. Vodafone


1. Exce ent 4 10.52%

2.Good 19 50%

3. Fair 10 26.33%

4. Poor 5 13.15%

Total 38 100%

b. BSNL


1. Excellent - -

2.Good 2 25%

3. Fair 3 37.5%

4. Poor 3 37.5%

Tota 8 100%

Analysis: - It has been found that most of the customers consider their experience of getting,

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

Excellent Good Fair Poor

10.52%

50.00%

26.33%

13.15%

0.00%

25.00%

37.50% 37.50%

Vodafone

BSNL


20/32

20

owning & using the Vodafone as good while in case of BSNL majority consider their

experience as fair.

7. Have you switched between any operators?


1. Yes 25 50%

2. No 25 50%

Total 50 100%

Analysis: - According to the surveyapproximately majority of the customers have switchedthe operator

8. Reason for switching another operator.


1. Cost 5 20%

2. Poor Network 13 52%

3. Poor Service 2 8%

4. Expensive Tariff 5 20%5. Others - -

Total 25 100%

50%50%Yes No


21/32


22/32

22

Analysis:- According to the survey majority customers are satisfied in terms of service

provision, call tariffs and network coverage of Vodafone where as few respondents are

dissatisfied in terms of periodical offers and customer care services.

b. BSNL

Satisfaction

TowardsTheServices

Number of Respondents

Highly

Satisfied

Satisfied Dissatisfied Highly

Dissatisfied

Cant Say Total

No. % No. % No. % No. % No. % No. %

1. ServiceProvision

1 12.5% 5 62.5% 2 25% - - 8 100%

2. Call Tariffs 2 25% 6 75% - - 8 100%

3. Periodical

Offers

2 25% 5 62.5% 1 12.5% - - - - 8 100%

18.60%21.07%

23.68%

10.52% 10.52%

2.62%

65.70%

44.73%

57.89%

76.32%

63.15%

76.33%

52.66%

15.70%

21.05%

28.96%

18.60%

7.95%

15.70%13.15%

5.20% 5.20%7.95%

13.15%

2.62%

21.07%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

Service

Provision

Call Tariffs Periodical

Offers

Network

Coverage

Customer

Care

Services

Internet

Facilities

Value

Added

Services

Highly Satisfied

Satisfied

Dissatisfied

Highly

Dissatisfied

Cant Say


23/32

23

4. NetworkCoverage

- - 2 25% 4 50% 2 25% - - 8 100%

5. CustomerCare Services

- - 6 75% 1 12.5% - - 1 12.5% 8 100%

6. InternetFacilities

- - 1 12.5% 5 62.5% 2 25% 8 100%

7. ValueAddedServices

2 25% 4 50% - - - - 2 25% 8 100%

Analysis: - It can be clearly seen that majority customers are very much disappointed

regarding the network coverage of BSNL though most customers are satisfied with the

customer care services.

12.50%

25.00%25.00% 25.00%

62.50%

75.00%

62.50%

25.00%

75.00%

12.50%

50.00%

25.00%

12.50%

50.00%

12.50%

62.50%

25.00% 25.00%

12.50%

25.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Service

Provision

Call Tariffs Periodical

Offers

Network

Coverage

Customer

Care

Services

Internet

Facilities

Value

Added

Services

Highly Satisfied

Satisfied

Dissatisfied

Highly

Dissatisfied

Cant Say


24/32

24

10. What do you expect from the mobile phone service provider?

a. Vodafone


1. Economical Call Rate 24 63.17%

2. Good Network 2 5.26%

3. Attractive Tariff 9 23.68%

4. No Hidden Cost 3 7.89%

Total 38 100%

b. BSNL


1. Econom ca Ca Rate - -

2. Good Network 7 87.5%

3. Attractive Tariff - -

4. No Hidden Cost 1 12.5%

Total 8 100%

Analysis: - From the survey it has been found that majority customers expected good

network from the BSNL and economical call rate from Vodafone.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

Economical Call

Rate

Good Network Attractive Tariff No Hidden Cost

63.17%

5.26%

23.68%

7.89%

87.50%

12.50%

Vodafone

BSNL


25/32

25

5. FINDINGS

76% of respondents are using the Vodafone services, which is the highest percentageof users of cellular phone in RGSC, BHU. 16% of respondents are using BSNL and

the remaining 8% are using other services such as Uninor &Airtel.

Around 82% of respondents have selected Vodafone due to its network coveragewhile 18% preferred internet for selecting Vodafone whereas 50% respondents have

selected BSNL due to its call rate and around 37.5% have been influenced by its

brand name. The remaining 12.5% respondents have selected BSNL for its tariff.

62% of respondents have taken the decisions on their own while selecting particularservice while 18% respondents have been influenced by friends. 12% respondents are

influenced by dealers and the remaining 8% respondents chosen the particular service

as they were influenced by advertisements.

In case of periodical offers, only 52% respondents are aware and 20%respondents areunaware. Majority of respondents (70%) are aware of the call charges whereas only

12% respondents are unaware about the same. 78% respondents are aware about the

network coverage of their mobile phone service provider while 12% respondents are

unaware & 10% are neutral about the same. Only 44% respondents are aware of the

value added services provided by their mobile phone service provider while 30%

respondents are unaware and 26% are neutral.

Majority of the respondents i.e. 80% respondents prefer mobile phone serviceprovider on the basis of purpose while 20% prefer internet facility on the basis of

purpose.

50% customers of Vodafone consider their experience of getting, owning and usingVodafone as good while according to 11% their experience is excellent. Around 26%

consider their experience as fair and the rest 13% as poor.25% customers of BSNL consider their experience of getting, owning and using

BSNL as good and the 37.5% as fair. According to the remaining 37.5% their

experience is poor.

50% of the respondents have switched the operator due to some reason while the 50%of the respondents have not switched any operator.

Poor network has been considered as the major reason for shifting the operator. Evencost and expensive tariffs are the reasons for changing the operators.


26/32

26

CustomerSatisfaction in case of following services provided by Vodafone:-a. Service provision

18.6% of the respondents are highly satisfied

66% of the respondents are satisfied

15.7% of the respondents are dissatisfied

b. Call Tariffs


44.73% of the respondents are satisfied


13.15% of the respondents are highly dissatisfied

c. Periodical Offers



13.15% of the respondents are neutral or cant say

d. Network Coverage



e. Customer Care Services





f. Internet Facilities





g. Value Added Services





21.07%of the respondents can say


27/32

27

CustomerSatisfaction in case of following services provided by BSNL:-a. Service provision



25% of the respondents are dissatisfied

b. Call Tariffs

25% of the respondents are highly satisfied


c. Periodical Offers




d. Network Coverage


50% of the respondents are dissatisfied

25$ of the respondents are highly dissatisfied

e. Customer Care Services


f. Internet Facilities



25% of the respondents are highly dissatisfied

g. Value Added Services



25%of the respondents can say

Around 63% customers of the Vodafone expect economical call rate while 24%expect attractive tariff. Few (8%) customers expect no hidden cost in any plan.

In case of BSNL expectations for network coverage and no hidden cost account for

87.50% & 12.5% respectively.


28/32

28

6. CONCLUSIONS

In India, a number of cellular companies competing to provide efficient and quality services

to their customers. Government and private operators are competing at close margin and are

trying to provide multiple value added services to people. Hence the cellular operators should

strive to provide cost effective quality equipments, affordable and competitive call tariffs for

connectivity at various levels and customized services in order to satisfy and delight their

consumers.

The study in hand reveals that consumers prefer a particular mobile phone service provider

on the basis of network coverage, call tariffs and value added services. The consumers are

influenced by friends, dealers and advertisement while selecting or buying a mobile phone

service provider. They generally prefer their mobile phone operator for fulfilling the purpose

of both incoming and outgoing calls as well as for internet. The study reveals that Vodafone

is the most preferred mobile phone service providers among consumers followed by BSNL. It

is concluded from the study that majority of consumers are aware about the services offered

by their mobile phone operators in terms of network coverage and call charges. The study

reveals that the customers experience regarding owning and using Vodafone is up to the mark

while BSNL is slowly losing ground due to its network coverage. The study indicates that

consumers are overall satisfied with the various services offered by Vodafone except they are

dissatisfied with the periodical charges and call tariffs. Majority customers are very much

disappointed regarding the network coverage of BSNL though most customers are satisfied

with the customer care services.

The study says that consumers are satisfied with the process of solution of their problems and

queries. The significance development in this field in the past ten years shows that there is a

very bright scope for expansion and modernization in cellular area with a very short span of

time. Thus, mobile phone service providers have to understand the ever changing preferencesand the behaviour of consumers constantly in order to serve them better and satisfy them. In

this age of ever increasing competition, it is very important for mobile phone operators to

keep a constant eye on preferences and behaviour of their consumers in order to capture the

large untapped market both in rural and urban areas of India.


29/32

29

7. SUGGESTIONS

The following suggestions can be given after detailed and careful investigation of the

research problem. These suggestions would definitely help the mobile phone serviceproviders to enhance their subscriber base by delivering consumer satisfying services:

Advertising campaigns should be aggressively aired so that they can create newcustomers for the company among their family members, relatives and friends.

Use of SMS &Voice mail among subscribers is very less and therefore, the use andfeatures of these services should be promoted among subscribers through

advertisements.

Network Coverage is the most influencing factor which induced consumers to buy aparticular mobile phone operator. Therefore, BSNL should focus to improve their

network coverage in order to increase their market share. Network has been a key

factor for customer dissatisfaction; majority of the respondents suggested to increase

the number of network towers, widens the coverage area and reduce the network

congestion.

Have Good plan, schemes, and packages in order to provide the customer with a widechoice. Keep the subscriber well informed about any deductions or any change in the

plan and provide value for what the customer is paying for. Customer grievances

should be dealt more seriously and action has to be taken.

Mobile phone service provider should provide subsidized rates for calling ormessaging to one or few number of our choice.

Vodafone especially should revise their call rates as per the competition prevailingbecause their call rates are still very high in comparison to other mobile phone

operators.

As most of the consumers are unaware of the value added services offered by mobilephone service providers, aggressive advertisements and schemes should be launched

to create awareness and promote the use of these services.

All the mobile phone operators should launch more and more periodical offers fromtime to time especially by BSNL.

Customer care services play an important role in retaining consumers. Therefore,customer care services should be improved and there should be provisions of taking

feedback from consumers so that necessary steps can be taken in this direction.


30/32

30

8. LIMITATIONS

Accuracy of data depends upon the ability & willingness of the respondents. The study is limited to only in RGSC, BHU. Secondary data are available in the scattered manner due to which problem

arises in data summarization.

Limitation of the time.

9. BIBLIOGRAPHY

Berry, T.E (2001) "Marketing: An Integrated Approach", CBS International Editors,Japan.

Kothari (2001) Research Methodology, Vikas Publishing House Pvt. Ltd, NewDelhi.

Jim Blythe (2002) "The Essence of Consumer Behaviour", Pearson Education Inc.,Singapore.

Pratibha B. Munot (2002) Study Of Telecommunications Structure In India,Oklahoma State University, M.S. in Telecommunication Management Program.

Rajan Saxena (2003) Marketing Management, Tata McGraw-Hill PublishingCompany Limited, New Delhi

Maran K., Madhavi C. and Thilagavathi K. (2004) Customer's Perception onTelephone: A Study with Special Reference to Chennai City, Journal of Marketing

Management, ICFAI Press.

Ravi Shanker (2007) "Services Marketing: The Indian Perspective", Excel Books,

New Delhi

Philip Kotler (2008) "Marketing Management" (Eleventh Edition), PearsonEducation Inc., Singapore.

Donald S. Tull & Del I. Hawkins (2008) "Marketing Research: Measurement &Methods" (Twelfth Edition), Prentice Hall of India Pvt. Ltd., New Delhi.

C. R. Kothari (2009) "Research Methodology: Methods & Techniques" (SecondRevised Edition), New Age International Publishers, New Delhi.

Journal of Management Research


31/32

31

Indian Journal of MarketingWeb Resources:

www.google.com www.wikipedia.com www.trai.gov.in www.vodafone.in www.bsnl.co.in

9. ANNEXURE

Questionnaire

1. Which mobile phone service do you use?

Vodafone BSNL Others

2. Reasons for selecting the particular service:-

Price Brand name Network Coverage Tariff Easy documentation process Call rate Internet facility

3. Who influence you to use a particular mobile service phone service?

Self

Friends Colleagues Dealers Advertisements

4. Are you aware of the following services provided by mobile service provider?

Periodical offers aware unaware neutralCall charges aware unaware neutralNetwork coverage aware unaware neutralValue added services aware unaware neutral


32/32

5. What do you prefer towards mobile phone service provider on the basis of purpose?

Incoming & outgoing calls SMS Internet

6. Tell me about your experience of getting, owning and using a mobile service operator?

Excellent Good Fair Poor

7. Have you switched between any operators in the past?

Yes No

8. Reasons for switching another operator?

Cost Poor network Poor service Expensive Tariff

9. Are you satisfied of the following services provided by the mobile service operator?

1. Service

Provision

HS S D HD CantSay

2. Call tariffs HS S D HD CantSay

3. Periodical

offers

HS S D HD CantSay

4. Network

Coverage

HS S D HD CantSay

5. Customer

Care

Services

HS S D HD CantSay

6. InternetFacilities

HS S D HD CantSay

7.Values Added

Services

HS S D HD CantSay

*HS - Highly Satisfied, S - Satisfied, DDissatisfied and HD - Highly dissatisfied

10. What do you expect from the mobile phone service provider?

Economical call rate Attractive tariff Good Network No hidden cost

costumer satisfaction and preferences towards vodafone and bsnl

Documents