Perception of B School students about various CRM activities

of Mobile Service Providers

Deepan M, Kaushalya R, Ramesh V M, Shanmuga Sundaram A, Suganprabhu R

Team 6A, PGP 1

Abstract

India is a developing country and communication technologies play a major role in its

development especially mobile phone industry has come a long way. This research paper focuses on the

consumer usage behavior of mobile phones and their perception about customer relationship

management (CRM) activities of their service providers. Some of the most frequently used CRM activities

are selected and a survey was conducted to 119 people pursuing MBA at various colleges across Tamil

Nadu. The research focuses on the customer satisfaction level and also suggests some improvements

that are needed to make by the existing players in the market to stay more competitive.

Keywords: Mobile phone, Service provider, Customer usage behavior, CRM activities, Perception.

Research Objective:-

To find the usage behavior and compare the perception of CRM activities of various mobile

service providers among B School students across Tamil Nadu

Hypothesis Considered:-

Hypothesis 1- The Mobile Service Provider Changing Behavior is independent of the locality in

which the respondent is residing

Hypothesis 2- There is no significant difference between the perception levels of customers

regarding CRM activities over service providers

RESEARCH METHODOLOGY:-

A Self reporting questionnaire was prepared using Google docs by using various tools like Likert

Scale, Numerical Scale and shared with various B-School students using e-Mail & Social Networking

Sites. The respondent filled the survey by accessing the online link of the questionnaire.

The data was collected & consolidated first and they are categorized on the basis of service

providers and based on the analysis of the categorized data the customer perception about the various

mobile service providers were determined.

Sample Size:-

Total Number of Respondents: 119

Total Number of Male Respondents: 89

Total Number of Female Respondents: 30

Literature Review

Service quality and customer satisfaction

The proven relationship between customer satisfaction level and service quality provides a base

to explore the subject in the mobile phone segment. Generally customers expect more than what is

actually being offered to them. From the analysis of various factors, it was proved that tariff and

network coverage are the most preferred one[1]

. The study made by Gunjan et al proved this. This made

us to consider these factors to our study to find customer usage behavior.

The studies made by Ramin Vataparast also suggest that customer adoption to mobile service

provider is more important for these service providers to come up with many customized applications [2]

.

Among the various variables chosen perceived expressiveness and enjoyment have strong influences on

the adoption of the mobile service.

The Findings from Greek mobile telephony sector shows [3]

that relationships between service quality

and customers repurchase intention in mobile telephony industry. The influence of perceived price on

customers repurchase intention was examined in this research.

The American Customer Satisfaction Index (ACSI) model is used as the framework to examine the causal

relationships among customer expectations, quality, value, satisfaction and loyalty. The results from

structural equation modeling show that perceived quality is an important predictor to

customer satisfaction, which ultimately results in trust, price tolerance and customer loyalty. The

findings provide valuable managerial insights for managing customer satisfaction and loyalty [4].

The Research by Tripathi Shalini[5] article purports that service providers could try to gain valuable

insight into consumer preferences, and design mobile service packages accordingly, the objective being

determination of the relative importance of attributes in consumer choice processes related to service

packages. Conjoint Analysis was used to analyze how customers’ trade off among various salient factors

in selecting a package. Further, conjoint models have been suggested for different demographic

subgroups. This provides implicit opportunities to mobile service providers for deploying benefit

segmentation as a strategy and developing customized mobile service packages for

different customer segments.

Wahab Samsudin in his article shows the results of CRM performance are repeat purchase, word of

mouth, retention, cross buying, brand loyalty and customer satisfaction [6]

. The keen competitive in the

communication and mobile phone service market place and the increasing numbers of mobile phone

users all over the world has influence the researchers to investigate ease of use and e-service quality as

antecedents of electronic customer relationship management performance in mobile phone services

industry. From Research it is also shown that Mobile messaging technology can be used as an

integrated marketing endeavor to strengthen the brand and cultivate customer acquisition and loyalty

[7].

The Article by Wahab Al Momani presents us the analysis which shows that e- service quality, and ease

of use was positively significant towards CRM performance. This paper [8]

makes a theoretical and

methodological contribution and suggestion for the managers in improving their CRM performance in

mobile phone service industry. Jukka Riivari explains in this research why financial organizations across

Europe are beginning to take advantage of mobile services and in particular mobile banking as a

powerful new marketing tool to build long-lasting and mutually rewarding relationships with new and

existing customers. Examples show how European financial organizations are using mobile banking to

improve their customer service and relationships, to reinforce their brand by literally placing it in their

customer's pocket and to reduce their costs[9]

.

The Study[10]

by Y Sawhng comprehensively concerned with mobile service marketing related issues,

considers both factors influencing consumers' usage behavior and also technical aspects of services.

Factors influencing the behavior of mobile service consumers are investigated empirically, by examining

them in a real-world context.

Factors considered

The major factors that affect any customer in determining his/her satisfaction levels about their

network provider are very basic but important. Firstly, how the customer care personnel is responding

politely, clearly and informatively to our queries affects the customer’s conscious greatly. If a customer

care personnel answers in an ambiguous manner or if his language is not so clear, it will lead to added

confusions and may misguide the customer. Another important factor is the time taken to connect to

the customer care.

Many network providers follow a procedure of letting computer voices clarify most of the

commonly faced queries, but in case if a person wants to talk to the CC personnel directly because of

reasons like he is in hurry or the problem is a bit different one, it will be irritating for him to cross all

those multiple stages of computer voices. Even if it connects, the CC personnel take their own time to

respond.

Secondly, the way how they handle the queries.

• Customer care response

• Ease of contact

• Time taken to connect

• Feedback

• Tariff

• Information about latest schemes

• Grievance handling

• Speed of processing

• Dealer behaviour

• Getting service messages even after deactivating

Research Instrument: The research uses a questionnaire consisting of 24 closed ended questions

designed to capture the experiences of the target population about the Customer Relationship

Management of their mobile phone services.

Questionnaire was divided into various parts namely -Demographic profile of the respondents.

Consumer's behavior towards existing mobile phone service providers. General factors used by

consumers for selection of mobile phone service provider. Other factors.

Sampling Plan

• Sampling Unit – Students in B-Schools in Tamil Nadu.

• Sample Size - The research considered a sample of 119 respondents.

• Sample Procedure - The research used simple random sample procedure in which every member of

the population has an equal chance of selection.

Contact Methods: An online questionnaire, developed in Google-Docs Spreadsheet was used in the

research.

Statistical Models Used: ANOVA, Correlation, Chi-Square and Cluster Analysis.

Sample composition: The data for the research were collected with respect to MBA students in Tamil

Nadu concerning about the CRM activities of various mobile service providers. Based on the analysis of

data, it was found that total of 42 percent of the respondents were customers of Airtel, 22 percent were

customers of Vodafone followed by 14 percent BSNL, 10 percent Aircel, 8 percent Docomo and 4

percent Idea customers. It is clear that Airtel and Vodafone subscribers constituted the majority of the

respondents. 75% of total respondents were male and rests 25% were female.

The classifications of respondents based on the mobile phone service they subscribe are presented in

figure 1.

Figure 1

Data Analysis

Chi Square Tests

It is very well known that all latest technologies and schemes will be introduced first only in

major cities. Hence it would be common for people dwelling in cities to often change their service

providers as they have got many opportunities. In this part of research, the customer’s behavior of

changing the service provider is compared with their location to find whether the changing behavior is

dependent on the locality. Chi square was the test used to find the dependency.

Table 1 Chi square results (Location and changing behavior)

Value df Asymp sig (2 sided)

Pearson Chi square

Likelihood ratio

N of valid cases

11.015

11.695

119

8

8

.201

.165

From the table it is clear that the chosen factors are independent of each other. Hence Null

hypothesis is not rejected. Thus the service provider changing behavior is independent of location.

Chi square tests were also performed to find the dependency of gender and amount of bill paid.

This would help to find the amount of usage between male and female.

Table 2 Chi square results (Gender and Bill paid)

Value df Asymp sig (2 sided)

Pearson Chi square

Likelihood ratio

N of valid cases

2.966

2.878

119

3

3

.397

.411

From the table it is clear that the chosen factors are independent of each other. Hence Null

hypothesis is not rejected. Thus the amount of bill paid is independent of gender.

ANOVA Results

Analysis of Variance (ANOVA) was performed to find whether there is any significant difference

between the customer perception levels about their service provider. The customers were grouped

based on the service provider they use and then the studied factors are incorporated in ANOVA to find

whether there is any significant difference or not.

Table 3 ANOVA Table

.

From the table it is clear that for all other factors other than grievances handling there is no significant

difference between the service providers. Hence Null hypothesis was not rejected for all other factors.

SSQ df Mean Square F Sig.

Cuscare_resp Between Groups 8.861 5 1.772 1.895 .101

Within Groups 105.694 113 .935

Total 114.555 118

Schemes Between Groups 1.788 5 .358 .236 .946

Within Groups 171.203 113 1.515

Total 172.992 118

Tariff Between Groups 5.502 5 1.100 1.087 .371

Within Groups 114.347 113 1.012

Total 119.849 118

Griev Between Groups 10.947 5 2.189 2.429 .039

Within Groups 101.843 113 .901

Total 112.790 118

Speed Between Groups 10.086 5 2.017 1.739 .131

Within Groups 131.073 113 1.160

Total 141.160 118

Deact Between Groups 7.076 5 1.415 .982 .432

Within Groups 162.789 113 1.441

Total 169.866 118

Ease Between Groups 1.691 5 .338 .739 .596

Within Groups 51.721 113 .458

Total 53.412 118

Feedback Between Groups 2.044 5 .409 .857 .513

Within Groups 53.922 113 .477

Total 55.966 118

Dealer Between Groups 8.682 5 1.736 .903 .482

Within Groups 217.301 113 1.923

Total 225.983 118

Time Between Groups 10.950 5 2.190 1.053 .390

Within Groups 235.033 113 2.080

Total 245.983 118

Charge Between Groups 1.218 5 .244 .965 .442

Within Groups 28.529 113 .252

Total 29.748 118

Cluster Analysis

A cluster analysis was made to group the respondents into groups based on their perception

level. This helped to find the number of people who had a good perception about their current service

provider.

Table 4 Cluster Results

From the table it is clear that the cluster 2 consists of respondents who have good perception about

their service provider. Cluster 3 has moderate perception while cluster 1 has poor perception.

Perception Level

Since there is no significant difference between the perceptions various service providers

regarding every factors other than grievance handling, it can be considered that the variation is only due

to chance causes. Vodafone performs well in grievance handling when compared to others since the

customers of Vodafone perceive it to be good.

Fig 1 Rating Vs Factors

Improvement

Respondents were asked about the area that needed improvement. From the analysis it was

evident that all the respondents were much more concerned only about network coverage. Only BSNL

customers found network to be good and they needed improvement in the process of operating. They

needed to simplify the existing procedures.

Fig 2 Areas needed improvement

Conclusion:

HYPOTHESIS 1

“Changing behavior is independent of locality “

Null Hypothesis not rejected.

HYPOTHESIS 2

No significant difference between the perception levels of customers regarding CRM activities over

service providers

Null Hypothesis not rejected.

Other Findings

Apart from the above discussions there are few other significant findings from research. Vodafone

customers perceive it to be better when compared to others. From the responses total average rating of

Vodafone is higher (3.03) than the other mobile service providers. Aircel and BSNL come in joint second

position. Idea scores the least overall rating.

Respondents % Total Average

Vodafone 22% 3.03

Airtel 42% 2.77

Aircel 10% 2.88

BSNL 14% 2.88

Docomo 8% 2.75

Idea 4% 2.58

Network Coverage is the major problem for most of the respondents. Out of the total 119 respondents,

49 have voted for Network coverage. High Tariff comes in second place with 27 respondents voting for

it. BSNL should focus on simplifying the procedures. Out of people who voted for “Simplify Procedures”,

BSNL customers are the maximum.

Service providers can focus on the most frequently used applications so that it helps increasing

customer satisfaction level i.e. the value added services. From the total responses nearly 59 people (50%

approximately) have said they are using GPRS. 29 (25%) people have said to use Missed call alert service.

References

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Behavior towards Mobile Phone Service Provider - An Empirical Research on Mobile Number Portability

in India”, Journal of Advances in Management, Vol. 4(6), pp. 44 – 49

[2] Ramin Vatanparast, 2010, “Mobile service adoption Optimization: A Case Study”, IJMM, Vol. 5,

pp. 55 – 74

[3] Evangelia Blery, Nick Batistatos, Efstathia Papstratou, 2008,“Service quality and customer retention

In mobile telephony.

[4] Makam S Balaji,2009, “Customer Satisfaction with Indian Mobile Services”.

[5] Shalini N. Tripathi, Masood H. Siddiqui,2009, “An empirical investigation of customer preferences in

mobile services”.

[6] Wahab, Samsudin; Al-Momani, Kaled; Noor, Nor Azila Mohd, 2010, “The Relationship between E-

Service Quality and Ease of Use On Customer Relationship Management CRM) Performance: An

Empirical Investigation In Jordan Mobile Phone Services “. Pp 1-15

[7]Ashok Khuran, Vikas Chaudhar, "Customers' Attitude Towards Mobile Messaging Technology in

Promoting CRM: A Study".

[8] Wahab, Al-Momani, Noor, Nor Azila Mohd, The Relationship between E- Service Quality and Ease of

Use On Customer Relationship Management (CRM) Performance: An Empirical Investigation In Jordan

Mobile Phone Services, pp1-15.

[9] Jukka Riivari , 2005,"Mobile banking: A powerful new marketing and CRM tool for financial services

companies all over Europe".

[10] Sawng, Y.-W.; Kim, S.-H.; Lee, J.; Oh, Y. S. 2011. "Mobile service usage bebavior in Korea: an

empirical study on consumer acceptance of innovative technologies." Technological and Economic

Development of Economy 17(1): pp 151- 173.