Project On TATA-Indicom
Project On TATA-Indicom
Project On TATA-Indicom
Primary objective:
To study the customer evaluation of TATA Indicom services at N.C.R. market.
Secondary objectives:
To find out the telecommunication users in the N.C.R. market.
To know the age and gender wise classification for usage of telecommunication facility.
To find out which all services have been tried by the respondents so far
To know the customer’s opinion about the competitors of TATA Indicom
To know the factors affecting the purchasing behavior of telecommunication customers.
To find out the attributes that affects the buying behavior of the TATA indicom service
To find the customer’s attitude towards TATA Indicom services
To find out the customer’s opinion about the hand set which provide by TATA Indicom.
To know the satisfaction level of recharge vouchers offered by the company.
To find the reasons for cancellation of TATA Indicom connection.
Problem statement
Do the customer of TATA indicom services such as
Price
Coverage
Sales promotion
Offers
Customer service
Staff response
Advertisements have a significant role in customer decision.
1
Significance of the study
Consumer feedback is providing the market reflections to the marketer. This enables them to
gain awareness about their market performance and customer preference. The conducted
study examined the customer satisfaction status on various service offerings by TATA
Indicom and the major focus has given to draw the reasons behind cancellation of services.
The results related to the said area are an eye opener to the marketer for identifying his gaps
and fix it at the earliest.
The ruling factors of today’s market is having a common axis named ‘consumer’, who is
deciding the destiny of any firm in the market. Hence the study on related area is having
significance to the selected telecom operator and since it is common to other operators in the
same and related field, the problems that had drawn through the survey may be a reference
for other marketers also. The researcher had gained familiarity and practical exposure to the
real market world through the conducted study. This can also be a secondary source for
other people who plan or are conducting studies in the similar area.
2
RESEARCH METHODOLOGY
Descriptive research :-
The research study is conducted through descriptive research. Descriptive research design is
a scientific method which involves observing and describing the behavior of a subject
without influencing it in any way or to identify the cause of something that is happening.
For instance, this research could be used in order to find out what age group is buying a
particular Brand of the product, where a company’s market share differs between
geographical region or to discover how many competitors a company has in their
conducting the research must comply with strict research requirement in order to obtain the
most accurate figures / results possible.
Sample size
The number of sample is 110 from N.C.R. city, which fulfills the requirement. Each
respondent is treated as a case of detailed analysis
Sampling design
Convenience sampling is used for this study. Convenience sampling is used in exploratory
research where the researcher is interested in getting an inexpensive approximation of the
truth. As the name implies, the sample is selected because they are convenient. This non
probability method is often used during preliminary research efforts to get a gross estimate
of the results, without incurring the cost or time required to select a random sample.
3
4.3 Data collection method
For the accumulation of data the sources were primary and secondary data.
Primary Data:
These data are raw material. They are the measurement observed and recorded as a part of
original study. They are original in character. The investigator or researcher directly collects
this data. The basic form of obtaining this data is by observing and questioning.
The Primary data was a detailed interview schedule with the help of a detailed
questionnaire. The samples were drawn purposively from various areas for the relevance of
the study. Discussions were held with the general, branch manager and executives of the
company to design and execute the research
Secondary Data:
They are not originally drawn by the researcher as fresh data. These are collected by some
other person for this purpose and published. These types of data can be collected through
various sources.
For this study the secondary data were collected from magazines ,journals , references and
websites and manuals of the TATA Indicom.
Rank Correlation =
If Rank Correlation is negative we can say that there is no correlation between the variable,
if rank correlation is positive we can say that there is a relation between the variable, if the
Rank correlation is less than.06 we can say that there is a low degree of relation between the
variable, if rank correlation greater than .06 we can say that there is high degree of relation
between the variables and if Rank Correlation is very nearer to 1 such as .99 we can say that
there is very high degree of relation between the variable.
4
4.6 Scope of the study
The study gives the information about the telecom market
This will helps to identify the customer’s preferences and their complaints towards the
company.
The study will helps to the company for identifying the customer’s needs and wants.
Lack of Universal application: - since the study had been conducted only in a selected
region and only in telecom consumers, the applicability of the study in different region and
consumer products are restricted.
Probability based study: - Study is being done with the aid of Convenience sampling. Hence
the entire customers had not been considered for their feedback and the inference drawn on
the basis of selected sampling.
Business of the respondents: - Walk in respondents were busy with their schedule and
hesitate to cooperate with the researcher and because of their rushing to home or office, they
had completed the questionnaire quickly which may yield some inherent errors.
5
INTRODUCTION TO CUSTOMER SATISFACTION
Many companies are aiming for high satisfaction because customers who
are just satisfied still find it easy to switch when a better offer comes along.
Those who are highly satisfied are much less ready to switch. High satisfaction
or delight creates an emotional bond with the brand, not just a rational
preference. The result is high customer loyalty. Xerox’s senior management
believes that a very satisfied or delighted customer is worth 10 times as much
to the company as a satisfied customer. A very satisfied customer is likely to
stay with Xerox many more years and buy more than a satisfied customer will.
Saturn In the late 1980s, Saturn (General Motors’ newest car division) changed
the whole buyer – seller relationship with a New Deal for car buyers There
would be a fixed price (none of the traditional haggling); a 30-day guarantee or
money back; salespeople on salary, not on commission (none of the traditional
hard sell). Once a sale is made, the sales staff surrounds the new owner for
commemorative photo, with everyone smiling. The company’s fifth
anniversary celebration at the Tennessee headquarters was attended by more
than 4000 Saturn from all across the country. Said Saturn’s president: “Saturn
is more than a car it’s a whole new way of doing things, of working with our
customers and with one another.”
7
need to create a “branded customer experience”. Here’s how Canadian Pacific
Hotels, a chain with 27 properties, did just that.
"Those who enter to buy, support me. Those who come to flatter, please me.
Those who complain, teach me how I may please others so that more will
come. Only those who hurt me are displeased but do not complain. They refuse
me permission to correct my errors and thus improve my service." - Marshall
Field.
the customer as the person to whom you are responsible. Customers support
When your customers are happy, you are happy. When they complain, you are
unhappy, but you examine the complaint calmly and see it as an opportunity to
learn as well as satisfy their needs. The quote echoes the fear that customers
will not vocalize their dissatisfaction, but instead take their business elsewhere.
There's another quote that's even more important to salespeople and companies
immediately upon making a sale--
In the old days, It used to be, "The Sale Begins When the Customer
Says...NO," but that's a totally Inappropriate attitude to embrace in today's
customer-driven business environment.
8
1.2.2 Keeping Your Customers Happy
Since your first concern is customer satisfaction you should be aware of some
emotional stumbling blocks in your path: selective perception, user error and
buyer's remorse.
Selective perception is the process in which a person sees only selected details
from the entire picture. This attention to detail is sometimes petty. For
example, a customer may have a new copying machine that works like a
charm, but he is irritated by the sound of the motor. He focuses only on what is
wrong rather than what is right.
Many sales involve the installation of a new system or piece of equipment, and
the buyer or their employees must be trained to use it. Their successful use of
the equipment depends upon the effectiveness of the training, and it is
imperative that the salesperson follows through after the training period to
make sure the client uses the purchase properly.
It is not uncommon for people to forget 75 percent of what they hear after two
days. This can cause "user error", which will significantly affect the outcome
of your test and may prevent your client from reaching his success criteria.
9
Often a client will be unhappy about a purchase and not realize that it is due to
improper operation. The more complex something is, the more training it
requires using it properly. In the interest of implementing the product quickly,
users may settle for incomplete training or become sloppy in their application
of good training. In any case, look for user error whenever a success criterion
is not reached.
"Buyer's remorse" refers to the regret that a buyer feels after making a
purchase. It could be caused by selective perception, user error, or the client's
error. Whatever the reason, the full benefits of the product are not realized.
Buyer's remorse can also be caused by the economics of the purchase: until the
benefits prove themselves to be cost effective, a buyer regrets having made the
purchase. It is the responsibility of the salesperson to assuage these fears by
assuring the client that his investment is wise and sound. Reiterate some of the
selling points that convinced him to buy it originally, present data, and put him
at ease.
10
Often the problem is not as serious as it sounds. Some customers "read the riot
act" when they call about a complaint. A delay in responding will only irritate
your client more.
Just because you made the sale does not mean you can become defensive about
your company, product or service. Even the most reputable companies make
mistakes and have problems with their products. You may want to restate the
customer's complaint to show that you are listening and have an understanding
of the problem.
Whether the complaint proves to be true or false, show your customer that you
are concerned and will investigate the problem immediately. Help the customer
calm down by saying, "I can understand why you feel the way you do."
Talking will make him feel less anxious about it. Let your customer "vent" his
feelings before you react to the situation. Be sympathetic and encourage the
customer to "blow up." Afterward, he'll feel better; this means he'll be in a
better frame of mind.
5. Don't pass the buck to your company or someone else within it.
This may take the blame off you, but it undermines the integrity and
organization of the company, and your customer will lose confidence in your
firm.
11
1.2.4 Maintaining Customer Satisfaction
The philosophy behind maintaining your customers is simple; now that you
have them, maintain them. When you consider the amount of time and money
invested in them, you cannot afford to lose them. This investment goes beyond
your personal expenditures. It also includes your firm's advertising and
marketing costs to reach that particular market segment. Your customers,
therefore, should be treated as if the life of your business depended on them -
which it does!
2. Drop by to show them new products and brochures and offer additional
services.
Always make an appointment before making your call! Respect your clients'
time as you do your own.
See how they are utilizing your product or service and suggest other ways that
they can benefit from it. They may not be realizing its full potential.
12
5. When new employees are hired, offer to train them free of charge in the use
of your product.
7. Be personal.
Record details about your client's life and enter these in your file. It's so much
nicer to say to someone, "How is Bob?" rather than, "How's your husband?"
In the long run, they are much less expensive than finding a new customer.
10. Be ethical.
12. Show your appreciation for their referrals by reporting back to them on the
outcome.
13. If your company has a newsletter, obtain permission from your successful
clients to write about them in it.
13
Naturally, you would send them a copy.
14. Keep track of their results with your product and meet periodically to
review the entire picture (their business, industry, trends, competition, etc.)
What all of this comes down to is that you should be willing to "go the extra
mile" for your accounts. They extra effort you expend now will be repaid
handsomely in the future.
The bottom line in maintaining your clients is service, service and more
service. Be there for your customers and they'll want to stick with you. If you
meet their needs, they'll think twice before switching to another company, even
if they've voiced some serious concerns. "Make new clients, but keep the old.
One is silver and the other gold." Develop the "gold" you have and the silver
may take care of itself. END
In the final phase of the project, research findings will be used to build a model
of customer satisfaction management for each customer segment. Ultimately,
QIC will be able to give its members an objective measurement of the
industry's quality as perceived by the customer. That overall index will serve
as a benchmark on the state of quality for the P/C industry. Members will also
be able to use this information to determine which areas of product and service
performance have the greatest impact on overall quality, and will be able to
target improvement efforts in an informed and efficient manner. For the first
14
time, the industry as a whole will have addressed customer-perceived value, as
other sectors of the U.S. economy have done.
It's a well-known fact that no business can exist without customers. In the
business of Website design, it's important to work closely with your customers
to make sure the site or system you create for them is as close to their
requirements as you can manage. Because it's critical that you form a close
working relationship with your client, customer service is of vital importance.
What follows are a selection of tips that will make your clients feel valued,
wanted and loved.
This is the most daunting and downright scary part of interacting with a
customer. If you're not used to this sort of thing it can be a pretty nerve-
wracking experience. Rest assured, though, it does get easier over time. It's
15
important to meet your customers face to face at least once or even twice
during the course of a project.
My experience has shown that a client finds it easier to relate to and work with
someone they've actually met in person, rather than a voice on the phone or
someone typing into an email or messenger program. When you do meet them,
be calm, confident and above all, take time to ask them what they need. I
believe that if a potential client spends over half the meeting doing the talking,
you're well on your way to a sale.
This goes without saying really. We all know how annoying it is to wait days
for a response to an email or phone call. It might not always be practical to
deal with all customers' queries within the space of a few hours, but at least
email or call them back and let them know you've received their message and
you'll contact them about it as soon as possible. Even if you're not able to solve
a problem right away, let the customer know you're working on it.
A good example of this is my Web host. They've had some trouble with server
hardware which has caused a fair bit of downtime lately. At every step along
the way I was emailed and told exactly what was going on, why things were
going wrong, and how long it would be before they were working again. They
also apologies repeatedly, which was nice. Now if they server had just gone
down with no explanation I think I'd have been pretty annoyed and may have
moved my business elsewhere. But because they took time to keep me
informed, it didn't seem so bad, and I at least knew they were doing something
about the problems. That to me is a prime example of customer service.
16
3. Be Friendly and Approachable
A fellow Site Pointer once told me that you can hear a smile through the
phone. This is very true. It's very important to be friendly, courteous and to
make your clients feel like you're their friend and you're there to help them out.
There will be times when you want to beat your clients over the head
repeatedly with a blunt object - it happens to all of us. It's vital that you keep a
clear head, respond to your clients' wishes as best you can, and at all times
remain polite and courteous.
This may not be too important when you're just starting out, but a clearly
defined customer service policy is going to save you a lot of time and effort in
the long run. If a customer has a problem, what should they do? If the first
option doesn't work, then what? Should they contact different people for
billing and technical enquiries? If they're not satisfied with any aspect of your
customer service, whom should they tell?
There's nothing more annoying for a client than being passed from person to
person, or not knowing who to turn to. Making sure they know exactly what to
do at each stage of their enquiry should be of utmost importance. So make sure
your customer service policy is present on your site -- and anywhere else it
may be useful.
Have you ever received a Happy Birthday email or card from a company you
were a client of? Have you ever had a personalized sign-up confirmation email
for a service that you could tell was typed from scratch? These little niceties
17
can be time consuming and aren't always cost effective, but remember to do
them.
Even if it's as small as sending a Happy Holidays email to all your customers,
it's something. It shows you care; it shows there are real people on the other
end of that screen or telephone; and most importantly, it makes the customer
feel welcomed, wanted and valued.
6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out
Sometimes this is easier said than done! However, achieving this supreme
level of understanding with your clients will do wonders for your working
relationship.
Take this as an example: you're working on the front-end for your client's
exciting new ecommerce endeavor. You have all the images, originals and files
backed up on your desktop computer and the site is going really well. During a
meeting with your client he/she happens to mention a hard-copy brochure their
internal marketing people are developing. As if by magic, a couple of weeks
later a CD-ROM arrives on their doorstep complete with high-resolution
versions of all the images you've used on the site. A note accompanies it,
which reads:
"Hi, you mentioned a hard-copy brochure you were working on and I wanted
to provide you with large-scale copies of the graphics I've used on the site.
Hopefully you'll be able to make use of some in your brochure."
Your client is heartily impressed, and remarks to his colleagues and friends
how very helpful and considerate his Web designers are. Meanwhile, in your
office, you lay back in your chair drinking your 7th cup of coffee that morning,
18
safe in the knowledge this happy customer will send several referrals your
way.
It's possible this is the most important point in this article. The simple message:
when you promise something, deliver. The most common example here is
project delivery dates.
Clients don't like to be disappointed. Sometimes, something may not get done,
or you might miss a deadline through no fault of your own. Projects can be
late, technology can fail and sub-contractors don't always deliver on time. In
this case a quick apology and assurance it'll be ready ASAP wouldn't go amiss.
Conclusion
Customer service, like any aspect of business, is a practiced art that takes
time and effort to master. All you need to do to achieve this is to stop and
switch roles with the customer. What would you want from your business if
you were the client? How would you want to be treated? Treat your
19
FACTORS AFFECTING CUSTOMER DECISION
Brand selection
The choice of a cellular phone is characterized by two attitudes to brands : attitude towards
the mobile phone brand on one hand and attitude towards the network on the other. While
price and regularity of service were found to dominate choice between network providers,
choices between mobile phone brands were affected by new technology features such as
memory capacity and SMS – options, more than size. The brand will actually be not towards
smaller phones but towards phones with better capability and larger screen.
Consumer satisfaction
This study is conducted by TRAI. It assesses the satisfaction level of consumers
encompassing quality of technical service, quality and operational aspects of gadgets and
social /psychological costs due to unsolicited promotional calls /SMS. The analysis in this
report shows that the consumption behavior of the mobile phone users in Delhi and covers
the aspects like usage pattern of the mobile phone services, assessment of the level of
satisfaction, preference for various attributes and functionalities of gadgets .
Consumer behavior
The titled named “consumer buying behavior” by Martin Tina; Sam Manaberi [2005]
discussed the industrial purchasing stands for more than half of the whole economic activity
in industrialized countries. Therefore it is important to understand how industries perform
buying activities. The telecommunication industry is a fast growing industry and therefore
interesting to investigate. The purpose of this study was to investigate the characteristics of
industrial buying behaviour in the telecommunication industry. The purpose has been
further developed in forms of research questions dealing with the buying process, buying
center and choice criteria. A case study was made with a customer, to the telecom supplier
Ericsson, from the company HI3G Access, also known as 3. A highly topical company in
the third generation telecom networks with Ericsson as one of their primary suppliers. The
conducted telephone interview indicates a swift buying process, influenced by word of
mouth. Additional findings involve a small buying center, which is mainly controlled by the
technical and procurement staff and the importance of price as a selection criteria as the
product is becoming a commodity.
20
Consumer behavior
The article named “consumer buying behavior in mobile phone market in Finland” by
EMAC conference, Track : New Technologies and E – Marketing. The survey conducted
with 397 consumers and looked at their motives to purchase new mobile phones on one
hand and factors
affecting operator choice on the other. The results indicate that while price and properties
were the most influencial factors affecting the purchase of a new mobile phone, price,
audibility and friends operator were regarded as the most important in the choice of the
mobile phone operator. This paper concludes with a discussion of contributions and
purposes ideas for future studies in this under researched area.
Consumer perception
The article titled “consumer perception and its choice mobile telecom service provider in
Malaysia,Journal of International Business and Economics, May, 2007 by Ahasanul Haque,
Ali Khatibi, Abdur Raquib, Shameem Al Mahmud. The study aims to find out what are
critical factors those are playing an important role to select the telecommunication service
provider. Result provides a comprehensive analysis of the important factors for playing an
important role for the customer to select the telecommunication service provider. The
analysis confirms the significant positive relationship of price, service quality, product
quality and availability, and promotional offer for consumer perception. These factors are
expected to have a great role during the time to choose telecommunication service provider.
21
In conclusion, practitioners can be deriving a better understanding of the activities that are
being played a vital role for the consumer perception
Consumer
An individual who buys products or services for personal use and not for manufacture or
resale. A consumer is someone who can make the decision whether or not to purchase an
item at the store, and someone who can be influenced by marketing and advertisements
Customer
A person, company, or other entity which buys goods and services produced by another
person, company, or other entity.
Customer service
According to Turban et al “customer service is a series of activities designed to enhance the
level of customer satisfaction that is, the feeling that aproduct or service has met the
customer expectation.
The needs, wants and preconceived ideas of a customer about a product or service.
Customer expectation will be influenced by a customer’s perception of the product or
service and can be created by previous experience, advertising , hearsay, awareness of
competitors and brand image. The level of customer service is also a factor and a customer
might expect to encounter efficiency, helpfulness, reliability, confidence in the staff and a
personal interest in his / her patronage.
22
Customer satisfaction
Customer satisfaction is a measure of how products and services supplied by the company
meet or surpass customer expectation. Satisfaction is a person’s feelings of pleasure or
disappointment resulting from comparing a product’s perceived performance in relation to
his or her expectation.
Kano's model of customer satisfaction distinguishes six categories of quality attributes, from
which the first three actually influence customer satisfaction:
1. Basic Factors. (Dissatisfiers. Must have.) - The minimum requirements which will
cause dissatisfaction if they are not fulfilled, but do not cause customer satisfaction if they
are fulfilled (or are exceeded). The customer regards these as prerequisites and takes these
for granted. Basic factors establish a market entry 'threshold'.
2. Excitement Factors. (Satisfiers. Attractive.) - The factors that increase customer
satisfaction if delivered but do not cause dissatisfaction if they are not delivered. These
factors surprise the customer and generate 'delight'. Using these factors, a company can
really distinguish itself from its competitors in a positive way.
3. Performance Factors. The factors that cause satisfaction if the performance is high, and
they cause dissatisfaction if the performance is low. Here, the attribute performance-overall
satisfaction is linear and symmetric. Typically these factors are directly connected to
customers' explicit needs and desires and a company should try to be competitive here.
4. Indifferent attributes. The customer does not care about this feature.
5. Questionable attributes. It is unclear whether this attribute is expected by the
customer.
6. Reverse attributes. The reverse of this product feature was expected by the customer.
23
Five facts for improving productivity
As senior managers, only know about the tip of the iceberg, a small fraction of all the
problems your customers encounter.
Service can be a major marketing tool
Customer problems can cost not only an immediate lost sale, but also future purchases by
that customer and by other customers as a result of negative word-of-mouth behavior.
We can and must quantify the expected payback from service and/or quality improvements.
The market transaction (sale) often is not the key point of customer pain and lost revenue.
DOING THE JOB RIGHT THE FIRST TIME + EFFECTIVE CUSTOMER SERVICE =
MAXIMUM CUSTOMER SATISFACTION/LOYALTY
In this pyramid shows customers will be the top most priority and next in importance are
front line people who meet, serve and satisfy customers ; under them are the middle
managers, whose job is to support the front – line people so they can serve customers well
and at the base is top management, whose job is to hire and support good middle managers.
24
Customer behavior
Customer behavior is to know about the customer’s way to obtain, use and dispose products.
It's important for marketing to know the customer behavior by using different strategies.
There are so many different ways to influence customers like new products, promotions,
advertisement, good quality and price etc.
Customer behavior analysis is based on consumer buying behaviour, with the customer
playing the three distinct roles of user, payer and buyer. Relationship marketing is an
influential asset for customer behaviour analysis as it has a keen interest in the re-discovery
of the true meaning of marketing through the re-affirmation of the importance of the
customer or buyer. Customer behaviour analysis aims to ultimately improve business
performance through an understanding of past and present customers so as to determine and
identify future customers and their behaviour.
Customer-Focused Marketing
All marketing is done with the customer in mind. Marketing can in fact be referred to as an
on-going conversation occuring between business and customer. It is therefore necessary for
businesses to gain in-depth knowledge of their relative customers so that the best marketing
strategies can be employed in order to attract these potential buyers. This can effectively be
done by performing activities such as customer behaviors analysis to ensure customer
retention. Listed below are a number of tips to aid businesses striving towards customer
retention through marketing efforts:
1. Marketing as a Conversation:
Direct interaction with customers is necessary to essentially find out what it is that they are
wanting. This marketing conversation involves a process running from action - reaction -
feedback - repeat. Businesses need to be willing to take the time to listen to their customers
as this can ensure a business of putting something up for offer which is of great worth
amongst their targeted consumers, and is relative to their particular needs and desires. It is
required for businesses to constantly perform marketing promotion so that these customers
will come back for more. Giving satisfaction to first-time buyers can prove effective for a
business in the long-run for the reason that by giving customers what they desire the first
time round, customer retention is encouraged through this form of customer loyalty.
25
2. Active Customers:
Making customers feel as though they are in control is an effective strategy in customer-
focused marketing. This is done by transforming consumers into active customers who are
given the ability to make choices for themselves by actively engaging in promotions and,
hereby, deciding on the best possible products and services their money can buy. Customer
retention is encouraged through this interaction with customers which aids in customer
loyalty. Businesses need to make each and every one of their customers feel good about
themselves by giving them something to do. Therefore, retaining customers means keeping
them happy by keeping them active.
This is most effectively done through an analysis of the actual behaviour of past and present
customers. Actual behaviour needs to be differentiated from demographic behaviours
(which are implied consumer characteristics). Actual behaviour is, as such, better at
predicting the future which is done by keeping a watch over the actions customers perform
with regard to online purchases and the products they purchase over the Internet.
26
Customer buying behaviour
Process by which individual search for select, purchase, use and dispose of goods and
services, in satisfaction of their needs and wants.
Types
Minor new purchase – these purchases represent something new to a consumer but in the
customer’s mind is not a very important purchase in terms of need, money or other reason.
Minor re- purchase – these are the most routine of all purchase and often the consumer
returns to purchase the same product without giving much thought to other product options.
Major new purchase – these purchases are the most difficult of all purchase because the
product being purchased is important to the consumer but the consumer has little or no
previous experience making new decisions. The consumer’s lack of confidence in making
this type of decision often requires the consumer to engage in an extensive decision making
process
Major repurchase – the purchase decision are also important to the consumer feels
confident in making these decisions since they have previous experience purchasing the
product
Stages of the Consumer Buying Process
27
1. Problem Recognition(awareness of need)--difference between the desired state and the
actual condition were deficient? I.E., see a commercial for a new pair of shoes,
stimulates your recognition that you need a new pair of shoes.
2. Information search--
28
Buying behavior model
Awareness
Reasons for buying
How often do they buy
Current usage
Reasons for usage
What do they buy?
Where do they like to buy?
Where do they gather their buying information
Are they an exclusive customer?
29
Customer loyalty
The term customer loyalty is used to describe the behavior of repeat customers, as well as
those that offer good ratings, reviews, or testimonials. Some customers do a particular
company a great service by offering favorable word of mouth publicity regarding a product,
telling friends and family, thus adding them to the number of loyal customers.
2. Customer Service: - Go the extra distance and meet customer needs. Train the staff
to do the same. Customers remember being treated well.
3. Employee Loyalty: - Loyalty works from the top down. If managers are loyal to the
employees, they will feel positively about their jobs and pass that loyalty along to
customers.
4. Employee Training: - Train the employees and interact with customers. Empower
employees to make decisions that benefit the customer.
5. Customer Incentives: - Give customers a reason to return to business.
6. Product Awareness: - Know what y steady patrons purchase and keep those items in
stock.
7. Reliability: - If a purchase will arrive on Wednesday, deliver it on Wednesday. Be
reliable. If something goes wrong, let customers know immediately and compensate
them for their inconvenience.
8. Be Flexible: - Try to solve customer problems or complaints to the best of ability.
9. People over Technology: - The harder it is for a customer to speak to a human being
when he or she has a problem, the less likely it is that you will see that customer
again.
10. Know Their Names: - Remember the theme song to the television show Cheers? Get
to know the names of regular customers or at least recognize their faces.
30
This model is developed by Schelsinger and Heskett (1991). In this model explains that
effort spent in selecting and training employees and creating a corporate culture in which
they are empowered can lead to increased employee satisfaction and employee competence.
This will likely result in superior service delivery and customer satisfaction. This in turn
will create customer loyalty, improved sales levels and higher profit margins.
31
Try to save the customer inconvenience.
Exceed your customers’ expectations.
Keep customers informed about any problems, and make it easy for them to contact
Use your website to give customers the services and information they want.
Customer retention
Customer Retention is the activity that a selling organization undertakes in order to reduce
customer defections. Successful customer retention starts with the first contact an
organization has with a customer and continues throughout the entire lifetime of a
relationship. A company’s ability to attract and retain new customers, is not only related to
its product or services, but strongly related to the way it services its existing customers and
the reputation it creates within and across the marketplace.
32
The customer retention rate refers to the number of customers lost over a period of time. It is
normally calculated by the percentage of lost customers versus existing customers over a
quarterly or annual period, without tallying new customer acquisitions
Customer lifetime value enable an organization to calculate the net present value of the
profit an organization will realize on a customer over a given period of time. Retention Rate
is the percentage of the total number of customers retained in context to the customers that
approached for cancellation.
Customer perception
33
Factors
Factors in the
Factors in the Factors in the
target
perceiver situation
Attitudes Novelty
Motives Motions
Time
Interest Sounds
Work setting
Size
Social setting
Experience
34
INDUSTRY PROFILE
Introduction
The Indian Telecommunications network with 110.01 million connections is the fifth largest
in the world and the second largest among the emerging economies of Asia. Today, it is the
fastest growing market in the world and represents unique opportunities for U.S. companies
in the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005,
is expected to reach 250 million in 2007. According to Broadband Policy 2004, Government
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.
35
Evolution of the industry-Important Milestones
1851 First operational land lines were laid by the government near Calcutta (seat
of British power)
1881 Telephone service introduced in India
1932 Merger of ETC and IRT into the Indian Radio and Cable Communication
Company (IRCC)
1947 Nationalization of all foreign telecommunication companies to form the
Posts, Telephone and Telegraph (PTT), a monopoly run by the
government's Ministry of Communications
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
A large population, low telephony penetration levels, and a rise in consumers' income and
spending owing to strong economic growth have helped make India the fastest-growing
telecom market in the world. The first and largest operator is the state-owned incumbent
BSNL, which is also the 7th largest telecom company in the world in terms of its number of
subscribers. BSNL was created by corporatization of the erstwhile DTS (Department of
Telecommunication Services), a government unit responsible for provision of telephony
services. Subsequently, after the telecommunication policies were revised to allow private
operators, companies such as Bharti Telecom, TATA Indicom, Vodafone, MTNL,
36
Idea,Vodafone and BPL have entered the space. major operators in India. However, rural
India still lacks strong infrastructure.
In 2007, an article by Businessweek magazine reported that India's mobile phone market is
the fastest growing in the world, with companies adding some 6 million new customers a
month.
The total number of telephones in the country crossed the 300 million mark on June 18
2008The overall tele-density has increased to 36.98% in March 2009 In the wireless
segment, 15.87 million subscribers have been added in March 2009. The total wireless
subscribers (GSM, CDMA & WLL (F)) base is more than 391.76 million now. The wireline
segment subscriber base stood at 38.22 million with a decline of 0.13 million in October
2008.
Both fixed line and mobile segments serve the basic needs of local calls, long distance calls
and the international calls, with the provision of broadband services in the fixed line
segment and GPRS in the mobile arena. Traditional telephones have been replaced by the
codeless and the wireless instruments. Mobile phone providers have also come up with
GPRS-enabled multimedia messaging, Internet surfing, and mobile-commerce. The much-
awaited 3G mobile technology is soon going to enter the Indian telecom market. The GSM,
CDMA, WLL service providers are all upgrading them to provide 3G mobile services.
37
Global telecom sector
Earnings visibility
Merger synergies
Given the substantial amount of excess capital available in the sector and in private equity
we expect to see additional merger and acquisition activity, albeit at a slower pace than
recently witnessed. Global telecom M&A deals over the past two years have reflected
market expansion but have also had a positive effect on the buyers’ balance sheets.
Partnering companies have begun realizing their synergies through cost reductions and
economies of scale. In the US, the largest three companies now account for over 70% of the
sector market cap; this compares to 34% in 1990. Trends in bundled services are also paving
the way for additional M&A activity. Sector consolidation will further increase the
importance of stock selection.
Growth
While cost-cutting has been a major source of earnings growth, we have seen top-line
pressures decreasing which will help revenues become a larger driver of earnings growth
again. We see growth within the sector coming from a number of areas including:
broadband, 3G (third generation) technology, expansion in emerging markets. Broadband
penetration has been accelerating as internet customers are seeking faster downloads for
audio and video files. 3G services, which facilitate the simultaneous transfer of both voice
and non-voice (i.e. video, downloads, SMS, etc.) data are providing mobile users with a
much more robust communication platform and should finally begin to realize their growth
potential in 2007. Emerging market companies benefit from low penetration rates and also
tend to have lower leverage, higher margins and higher growth than most developed markets
telecom companies.
38
Global opportunities
It has become less difficult to find attractive telecom investment opportunities globally than
it was a year ago. As the fog has lifted from the sector, there are increased opportunities
within both the growth and value spaces. In the US, improved clarity in the regulatory
environment has opened the door for a number of players. Within Europe the risk of
negative news flow remains a potential detractor but there is valuation support from
attractively priced stocks. There is little difference between the European and US integrated
carriers making it more of a stock call than a regional call. Within Asia we see high revenue
growth and return on assets. Overall, emerging markets continue to be the fastest growing
region within the sector and offer the largest valuation discount. Additionally, the healthy
macro environment in emerging markets coupled with increasing domestic wealth is
creating a positive consumer environment in the local markets.
Our strategy is to create a more focused portfolio of diversified high conviction ideas. In the
current environment we continue to be sensitive to relative valuations and positive earnings
momentum. Our portfolio is largely levered to growth. We have positioned ourselves in
companies that will provide synergies as well as margin expansion through wireless
exposure. We recognize the sensitivity of the regulatory environment in some markets and
have minimized our exposure to those markets. We also continue to overweight our
exposure to niche players within developed markets as well as to emerging markets which
have low penetration rates and more growth opportunities.
39
COMPANY PROFILE
TATA GROUP
TATA is a rapidly growing business group based in India with significant international
operations. Revenues in 2007-08 are estimated at $62.5 billion (around Rs251,543 crore) of
which 61 per cent is from business outside India. The Group employs around 350,000
people worldwide. The TATA name has been respected in India for 140 years for its
adherence to strong values and business ethics.
The business operations of the TATA Group currently encompass seven business sectors:
communications and information technology, engineering, materials, services, energy,
consumer products and chemicals. The Group’s 27 publicly listed enterprises have a
combined market capitalisation of some $60 billion, among the highest among Indian
business houses, and a shareholder base of 3.2 million. The major companies in the Group
include TATA Steel, TATA Motors, TATA Consultancy Services (TCS), TATA Power,
TATA Chemicals, TATA Tea, Indian Hotels and TATA Communications.
The Group’s major companies are beginning to be counted globally. TATA Steel became
the sixth largest steel maker in the world after it acquired Corus. TATA Motors is among
the top five commercial vehicle manufacturers in the world and has recently acquired Jaguar
and Land Rover. TCS is a leading global software company, with delivery centres in the US,
UK, Hungary, Brazil, Uruguay and China, besides India. TATA Tea is the second largest
branded tea company in the world, through its UK-based subsidiary Tetley. TATA
Chemicals is the world.s second largest manufacturer of soda ash. TATA Communications
is one of the world.s largest wholesale voice carriers.
In tandem with the increasing international footprint of its companies, the Group is also
gaining international recognition. Brand Finance, a UK-based consultancy firm, recently
valued the TATA brand at $11.4 billion and ranked it 57th amongst the Top 100 brands in
11 the world. Businessweek ranked the Group sixth amongst the .World.s Most Innovative
Companies. and the Reputation Institute, USA, recently rated it as the .World.s Sixth Most
Reputed Firm.
Founded by Jamsetji TATA in 1868, the TATA Group.s early years were inspired by the
spirit of nationalism. The Group pioneered several industries of national importance in
40
India: steel, power, hospitality and airlines. In more recent times, the TATA Group.s
pioneering spirit has been showcased by companies like TATA Consultancy Services,
India.s first software company, which pioneered the international delivery model, and
TATA Motors, which made India.s first indigenously developed car, the Indica, in 1998 and
recently unveiled the world.s lowest-cost car, the TATA Nano, for commercial launch by
end of 2008.
The TATA Group has always believed in returning wealth to the society it serves. Two
thirds of the equity of TATA Sons, the TATA Group’s promoter company, is held by
philanthropic trusts which have created national institutions in science and technology,
medical research, social studies and the performing arts. The trusts also provide aid and
assistance to NGOs in the areas of education, healthcare and livelihoods. TATA companies
also extend social welfare activities to communities around their industrial units. The
combined development-related expenditure of the Trusts and the companies amounts to
around 4 per cent of the Group.s net profits.
Going forward, the Group is focusing on new technologies and innovation to drive its
business in India and internationally. The Nano car is one example, as is the Eka
supercomputer (developed by another TATA company), which in 2008 is ranked the world.s
fourth fastest. The Group aims to build a series of world class, world scale businesses in
select sectors. Anchored in India and wedded to its traditional values and strong ethics, the
Group is building a multinational business which will achieve growth through excellence
and innovation, while balancing the interests of its shareholders, its employees and wider
society.
42
TATA Teleservices spearheads the Group’s presence in the telecom sector. Incorporated in
1996, TATA Teleservices was the first to launch CDMA mobile services in India with the
Andhra Pradesh circle.
Starting with the major acquisition of Hughes Tele.com (India) Limited [now renamed
TATA Teleservices (Maharashtra) Limited] in December 2002 the company swung into an
expansion mode. With the total Investment of Rs 19,924 Crore, TATA Teleservices has
created a Pan India presence spread across 19 circles that includes Andhra Pradesh, Gujarat,
Karnataka, Delhi, Maharashtra, Mumbai, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab,
Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), N.C.R., Kolkata,
Madhya Pradesh and West Bengal.
Having pioneered the CDMA 1X technology platform in India, TATA Teleservices has
established a robust and reliable 3G ready telecom infrastructure that ensures quality in its
services. It has partnered with Motorola, Ericsson, Lucent and ECI Telecom for the
deployment of a reliable, technologically advanced network.
The company, which heralded convergence technologies in the Indian telecom sector, is
today the market leader in the fixed wireless telephony market with a total customer base of
over 3.8 million.
Some of the other products launched by the company include prepaid wireless desktop
phones, public phone booths, new mobile handsets and new voice & data services such as
BREW games, Voice Portal, picture messaging, polyphonic ring tones, interactive
applications like news, cricket, astrology, etc.
TATA Indicom redefined the existing prepaid mobile market in India, by unveiling their
offering . TATA Indicom .Non Stop Mobile. which allows customers to receive free
incoming calls. TATA Teleservices today has India.s largest branded telecom retail chain
43
and is the first service provider in the country to offer an online channel
Http://www.ichoose.in to offer postpaid mobile connections in the country.
TATA Teleservices has a strong workforce of 6000. In addition, TTSL has created more
than 20,000 jobs, which will include 10,000 indirect jobs through outsourcing of its
manpower needs.
Today, TATA Teleservices Limited along with TATA Teleservices (Maharashtra) Limited
serves over 27 million customers in more than 6000 towns. With an ambitious rollout plan
both within existing circles and across new circles, TATA Teleservices offers worldclass
technology and user-friendly services in 19 circles.
TATA Indicom has three services Dial up internet, mobile connection, landline connection.
Products / Services
44
PC/Laptop’s internal modem to connect to internet. After creating the dialer on
computer,intenet facility will activate.
Mobile internet:- TATA Indicom offers world-class internet service through the CDMA
network.. Just connect TATA Indicom mobile phone, using a data cable to PC or Laptop &
get started.TATA Indicom Internet through mobile service offers world-class standards for
wireless Internet access. The benefits are:
Wireless internet it is used with a USB modem, so we can use where ever we go. It provides
high speed connection and free downloading.
Prepaid mobile: In Prepaid service we make an advance payment for the usage i.e. to make
calls and use data services. There are no deposits to be made for STD/ISD. These features
are pre-activated. Also, need not wait for a bill to be generated to know the usage & then
pay accordingly.
Features
Free SMS
Roaming in over 2400 cities
STD & ISD Facility
Postpaid mobile: In Postpaid service, the company itself generate the monthly bill to the
customers. TATA Indicom postpaid mobile phone STD call charges are amongst the lowest
in India for distances over 500 km with absolutely no additional-airtime charges Most
importantly, TATA Indicom postpaid mobile phone offers superior voice clarity,
congestion-free networks, high speed data access, and coverage in over 1000 cities.
Mobile handset: TATA Indicom has the widest range of CDMA Handsets to choose from a
range of the top CDMA mobile handsets from Nokia, Samsung, Motorola, Huawei and
Haier with low price.
45
Currently available CDMA Mobile Phones:
Samsung
Huawei
Haier
Haier CG100
Haier C2030 mobile phones
Haier C200 mobile phones
Indicom
Aurum
BlackBerry
Wireless phones: TATA introduced Walky Talky, are highly economical and easy to use.
46
Features of Walky Fixed Wireless Phones
47
Enjoy voice based Infotainment services*
Avoid suffering dead phones or irritating linesmen
Book a connection from the comfort of your home
Security Features
Landline phones: TATA Indicom offers instant phone connections. TATA Indicom
Landline Phone services based on the state of the art Optical Fibre Cable-based backbone.
TATA indicom have more than 10000 retail outlets in a district. TATA have their own
retail business unit located at all cities. These are: -
HNI
BRBU
EBS
CMBU
48
HNI ( High network individuals)
HNI network is used for selling only postpaid products of TATA Indicom like data cards,
walky talky, mobile phones. It provides after sales service also.
The Enterprise Business Service function drives business growth & customer centricity by
providing telecom related solutions to Corporate Entities. The EBS function also undertakes
customer relationship management and retention along with revenue enhancement and
channel management.
The Branded Retail Business Unit looks after the retail chain of the TATA Indicom
Exclusive stores. Branded retail has a national presence with over 3100 outlets comprising
of 600 TTSL (Company) owned stores and more than 2500 stores in the Franchisee
format Branded Retail outlets have become the touch points for its customers in more than
top 1000 towns in India.
The Consumer Market Business Unit (CMBU) deals with the large and dynamic pre-paid
segment of the telecom sector. CMBU has always offered to its customers with innovative
offers like Non Stop Mobile (Lifetime Validity) attractive bundled packages (handsets +
connections), cheapest tariff plans, etc.
Television advertisement
Calls free with special recharge offer
Handset Upgrade program for all the individual post paid customers.
49
Seasonal discount with purchase of handset etc…
TATA Indicom products have different pricing strategies. There are two types of pricing
strategies. They are market skimming and market penetration. Skimming means fixing at
high price and selling to those customers who are less price sensitive. Penetration means
fixing at low price initially. TATA Indicom follows their product by fixing the price at
high.ie; market skimming. The price include the hand set and connection charge
Competitors
Employment status
male female Total Percentage
Age group Employed self empl un emp Employed self empl unemp
Below 25 2 6 1 0 6 3 18 19.8%
25 – 35 7 9 2 4 13 3 38 41.8%
50
Above 35 8 12 5 8 17 4 54 59.4%
Total 17 27 8 12 36 10 110
Interpretation
Majority of the respondents are self employed and above 35 age category. An equal
proportion of male female respondents of different age groups had participated in the
survey.
110 100%
Yes
51
No 0 0
Interpretation
From the above data exhibits that the entire participants drawn randomly for survey is
having telecommunication facility and hence the study is giving evidence for 100%
telecommunication facility subscription by the N.C.R. residential area.
Services No : of Percentage
respondents
Airtel 31 34%
Aircel 10 11%
52
TATA
indicom 110 100%
Bsnl 55 60.5%
Idea 21 23%
Vodafone 18 19.8%
Reliance 11 12.1%
Interpretation
Since the survey had been conducted at the TATA Indicom outlet, all the
respondents are TATA customers. Among the selected 110 customers,
majority ie; 55(60.5%) had tried BSNL service, 31(34%) had tried Airtel,
21(23%) had tried Idea, 18(19.8%) had tried Vodafone , 11(12.1%) had tried
Reliance and 10 had tried Aircel.
53
Factors affecting buying behavior of the telecommunication
Factors affecting strongly Agree Neutral disagree strongly
buying behavior of agree disagree
the
telecommunication
Offers 34 39 14 19 4
brand image 12 35 24 22 17
Coverage 109 1
54
Ads 9 20 25 28 28
advice by friends 11 13 18 42 26
customer service 14 28 28 29 11
Interpretation
The major criteria for deciding the purchase of mobile service for most of the customers
who had surveyed through the questionnaire is maximum network coverage. 67% of the
respondents are looking for offers given by the service provider. Nearly 38% select the
service provider upon the customer service given by them.42% of the respondents select the
service provider upon the company’s brand image. 26% of them choose their service
provider by the advertisement.
Factors affecting buying behavior of the TATA indicom service
Factors no of Percentage
respondents
offers 32 35.2%
brand image 18 19.8%
Coverage 110 100%
Advertisement 15 16.5%
advice by friends and 19 21%
family
influence of sales 22 24.2%
promotion
customer service 16 17.6%
55
Interpretation
100% of the respondents are considering coverage as the main factor for buying TATA
Indicom service. 32 (35.2%) of them are considering offers for the selection of the service
provider. 22 (24.2%) of them are interested in sales promotion tools like lucky draw contest,
coupons etc by the company. 19(21%) depends on friend’s suggestions.18 (19.8%) of them
are considering brand image of the company. 17% of them are choose the service of TATA
Indicom by seeing their advertisement
56
Interpretation
Majority (54%) of the respondents had tried TATA Indicom landline connection because of
the less call rates offered by them. 39.6% of them had tried TATA Indicom Mobile
connection. It includes both prepaid and postpaid services. There are not much users for
internet facility. Only 27.5% of the respondents had tried internet facility.
57
Interpretation
49 (45%) respondents are satisfied with the recharge coupons offered by the TATA
Indicom. (38%) of the respondents are not at all satisfied with the recharge coupons offered
by TATA Indicom. So we can say that most of the customers had preferred more offers and
other value added services like SMS offers, less call rates etc.
after sales 21 24 17 42 6
service
Coverage 22 33 25 24 6
Offers 5 20 17 35 33
staff response 8 23 24 30 25
customer 18 21 18 22 31
support
Availability 15 27 28 29 11
Price 11 15 19 39 26
58
Interpretation
From the study we found that, 48 (44% ) of them are dissatisfied with the after sales services
of the company. 45 (41 %) of the respondents are satisfied with the after sales services of
TATA Indicom. 17 (15 %) of them are neutral in their decision and 55 (50%) are satisfied
with the network coverage of the company and 30 (27%) of them are dissatisfied with the
coverage. Majority of them 68(62%) are not at all satisfied with the offers Only 23 (28%) of
them are satisfied with the offers given by the company. Since the TATA Indicom
customers are not getting the information regarding recharge offers and other value added
services, most of them 55(50%) are not satisfied with the staff response of the company
employees.31(28%) are satisfied with staff response and majority of the respondents.
53(48%) of them are dissatisfied with the customer support. 40(36%) of them are
dissatisfied with the availability of the TATA Indicom services.65(60%) of them are
59
dissatisfied with the price of the product. The suggestions given by the respondents for
solving their problems are: provide adequate information about offers and other related
services, provide tower to all centers, give adequate training to the employees and provide
recharge vouchers to all retail stores.
No 0 0%
60
Interpretation
Since the survey had been conducted among the customers who are cancelled the TATA
Indicom services, all of the respondents had cancelled the service. Because of the various
problems like hand set complaint, billing problem, less offers etc.
Cancelled services
61
The survey found that majority ie; 45 (41%) of the customers had cancelled their landline
connection because of various problems like phone set complaints, excess bill amount, after
sales service. And out of 110 customers 41 (37%) of them had cancelled or migrate their
connection from postpaid to prepaid service. 24 (22 %) of them had cancelled internet
facility because of less coverage, low speed of the server, high price for downloading.
Hence we can say that most of the services provided by the TATA is having customer
complaints, which have to be addressed properly for customer retainment.
62
Interpretation
The above table shows that 41 (37% ) of the respondents are having the problem of not
getting the bill on time. This is because of either the address change or technical problem.37
(34% ) of them are not having enough coverage in their residential area.16 (15%) of them
are not satisfied with customer service. This is because of the customers are not satisfied
with the employees behavior when they approach for asking any doubts regarding the offers
or other complaints.
Interpretation
The above table reveals that 30 (28%) of the respondents prefer Airtel service when they are
going outside N.C.R. because they are attracting to the Airtel offers, coverage etc. 29(26% )
of them are prefer BSNL service. This is because of the wide coverage, customer service
63
and offers.25 (23%) of them are prefer Vodafone services.15 (14%) of them are prefer Idea
service. Least preferred services for roaming are TATA Indicom (7%) and Reliance 4 (4%).
Yes 63 57%
No 47 43%
Interpretation
64
More than half i.e.,57% of the TATA Indicom customers registered hand set complaint.
Because of the battery complaint, key pad complaint, charger complaint. Only 47 (43% ) of
them are not having the problem in hand set.
Cancellation of the 30 31 24 17 8
service
65
Interpretation
This survey found that more than half of the respondents 61 (55%) reacted in such a way
that they will cancel the services without giving any complaint to the company. 25 (23%) of
them disagreed to the decision of cancelling the services.56 (51%) plan to continue the
TATA Indicom’s service after registering their complaints to the company and 29 (26%) of
them are registered that they will cancel the service after giving the complaint to the
company and 67 (61%) of them disagree to that decision. 33 (30% ) of them responded that
they will discourage others from buying the TATA Indicom’s service.
66
STATISTICAL ANALYSIS AND HYPOTHESIS TESTING
HYPOTHESIS
H0= There is no significant difference between customers of different age group regarding
their opinion about the satisfaction of cost of recharge coupons.
H1= There is a significant difference between customers of different age group regarding
their opinion about the satisfaction of cost of recharge coupons.
67
Age Group N F Sig
Below 25 18 .733 .571
25 – 35 38
Above 35 54
HYPOTHESIS
H0= There is no significant difference between different gender category of customers
regarding cancellation of TATA Indicom connection on dissatisfaction service.
H1= There is significant difference between different gender category of customers
regarding cancellation of TATA Indicom connection dissatisfaction service.
68
T P values
Sig. (2-tailed)
RANK CORRELATION
69
Calculated Rank Correlation is 0.99
Since the calculated value is greater than 0.6 and very near to 1, there is high degree of
correlation between coverage and image of the company.
70
Aircel 29 5 37 6
Vodafone 56 3 64 3
TATA 49 4 48 5
Indicom
BSNL 68 2 68 2
Reliance 38 5 59 4
71
FINDINGS
1. 100% of the respondents are having telecommunication facility
2. Majority of the customers had tried BSNL 55(60.5%) service and Airtel 31(34%).
3. According to the survey, the main elements of buying behavior of TATA Indicom
telecommunication service are :
100% of the respondents are considering coverage
39(43%) respondents are looking for offers
35 (38.5%) of them looking for the company brand image
28 (31%) looking for customer service of the company
20 (22%) respondents are noticing sales promotion like advertisement.
4. Majority (54%) of the respondents had tried TATA Indicom landline connection 39.6% of
them had tried Mobile connection, only 27.5% of the respondents were tried internet
facility.
5. 46.2% of the respondents are not at all satisfied with the recharge coupons offered by TATA
Indicom. 49 (53.9%) respondents are satisfied with the recharge coupons offered by the
TATA Indicom.
6. Since the customer service is low,most of them are 48 (52.8% )dissatisfied with the after
sales services of the company.
7. 55 (61%) are satisfied with the network coverage of the company,30 (33%) of them are
dissatisfied with the coverage,
9. Most of the customers are not getting the vouchers nearby stores
72
10. 45 or 50% of the customers are cancelled their landline connection ,41 (45.1%) of them are
cancelled or migrate their connection from postpaid to prepaid service, 24 (26.4 %) of them
are cancelled internet facility
73
SUGGESTIONS
1. Company can decrease call rates to other subscribers for attracting youngsters
2. Voucher card can provide all the retail shops on time for customer convenience.
4. Sales promotion can be more intense, like television ad showing the price, quality, and other
product related details.
5. Even though the company has some offers or other value added services, it can be well
known by the sales people. So it is better to provide adequate training to the sales people.
6. Provide the tower to all centers for avoiding the network problem.
7. To ensure better customer satisfaction & maintain higher level of Customer relationship
management, the billing department has to be more effective & efficient.
8. User manuals and the plan’s pamphlets should be given to the staff for clearing the doubts
of the customers.
9. The cancellation mainly occurs in landline connection. So the company can take care of the
following services
Billing activities
After sales service
On time delivery of the product after complaint has to be recovered.
10. Company can appoint more technicians to all TATA retail True Value hubs to recover on
time land line service compliant.
11. The employees can call back to customers atleast once in a month for getting the feedback
of the services offered.
74
12. Customers are demanding for affordable price for product and gifts with purchasing.
13. Majority of the customers are not satisfied with the recharge coupons offering by the
company. So the company can increase the talk time to all recharge coupons.
14. Customer relationship managers can keep the records of update details regarding the
customer’s address change for sending the postpaid billing charges to avoid delay of
payment.
15. All the TATA Indicom retail hubs can have the complaint grievance box for customers.
16. Employees can inform customer complaint on time to the head of the department.
75
CONCLUSION
India has a mere 1.2 telephones for every 100 of its people. This is way below international
standards and is not becoming of a country aspiring to be major player in the global
economy of the 21st century. This means that opportunities for investment in this sector are
immense. Basic voice service is the biggest market. Installation of around 25 million direct
lines by the year 2001 will require an investment of US$ 22 billion.
Due to the growing need for mobile phones, it’s no wonder that service providers are going
all out to capture, as much market space as they can. As the number of mobile phone users
are estimated to rise to about 120 million by 2008,it’s not surprising that most of the leading
service providers in India have started branding and marketing their services more
aggressively.
The conducted study try to examine the market mindset towards one of the major player in
the telecom sector. The selected company for the study is TATA indicom which is having a
reputation in the market. This study had examined customer evaluation about the tele
services provided by the company. It also investigates the major reasons behind cancellation
of services by the customers. The major findings are
The customers are not satisfied with services because of the low quality; high price, poor
after sales services, less network coverage etc.
The main reasons for cancellation of the services were: - coverage problem, customer
service, billing complaint shows the negative impressions to the company.
The researcher got an exposure to the real situations of telecom market world and reactions
to the customers and enable to understand the customer reactions while they are undergoing
dissatisfaction of services. To the marketer, the present study is a market reflection about the
services offered. This will give him an insight into the customer problems, he has to settle at
the earliest, which will help him to expand his market and improve his image.
76
CHAPTER VI
BIBILIOGRAPHY
77
BIBILIOGRAPHY
78
79
CHAPTER VII
APPENDICES
80
NAME:
AGE: GENDER:
ADDRESS:
CONTACT NO:
a. Yes b. No
a. YES b.NO
1 2 3 4
Better Good Equivalent Inferior
6. How many Calls do you make daily?
7. Rate your Importance OR priority (From 1To 5), while selecting a TATA INDICOM.
81
(Most Important -1, Important-2, Neutral-3, Not So Important-4 , Least
Important-5)
Priority
PRICE
QUALITY
COST
TECHNOLOGY
USED
AVAILABILITY
SERVICES
COMPANY NAME
Network clarity
9. Did you have any problem with your TATA INDICOM in recent past?
a. YES b. NO
10. IF YES,
82
a.YES b.NO
II) Did you get Onsite service?
a.YES b.NO
III) Did you get the solution to your problem?
a.YES b.NO
IV)Problem was repeated after the service?
.a.YES b.NO
V)After the service any other problem occurred?
.a.YES b.NO
11. Rate the satisfaction level of Value Added services received, on a scale of 1 to 5.
1 2 3 4 5
(Highly dissatisfied) (dissatisfied) (neutral) (satisfied)
(Delighted)
a.YES b. NO
a.YES b.NO
83