Attitude of Customers towards the Mobile Service Providers: A Study on Kolkata City

 

Dr. Sunil Kumar Pradhan1, Dr. Suman Kalyan Chaudhury2

1Lecturer, Dept. of Business Administration, Berhampur University, Berhampur, Odisha.

2Placement Officer, Business Administration, Berhampur University, Berhampur, Odisha.

*Corresponding Author E-mail: sumankalyan72@gmail.com

ABSTRACT:

Mobile services in India have uplifted the standard of living of the people.  It has touched the heart of millions of people. Today without mobile services customers felt they are helpless. After opening up of the economy in India, mobile services have grown exponentially. As a result it becomes imperative for the mobile services provider to understand the needs and preferences of customers to upgrade the services in the future. In present scenario, it is not only confined to the selling of products, advertisement and sales promotion but it includes consumer satisfaction as a whole. Mobile service providers are always concerned about the up gradation of the services for their consumers. As it is a service, which is intangible in nature, it is imperative for the service providers to know about the perception of the customers. This becomes a challenge for the service providers to convince the customer to avail the services. This paper tries to explore the perception of the customers towards the mobile service providers in Kolkata city.

 

KEYWORDS: Economy, Customer Satisfaction, Perception, Attitude.

 


INTRODUCTION:

Now-a-days, mobile phones have grown into a product of necessity for the people from all walks of life. An individual can get in touch with his family, friends and business associates anytime and anywhere at a affordable cost. We know India is one of the fastest growing telecommunication markets in the world. The key driver for the growth of the Indian telecom market is that the cellular phone becomes an essential item in the hands of every individual.

 

Indian telecommunications industry1 is the world’s fastest growing industry, with 846.32 million mobile phone subscribers2 as on March 2011. It has thereby registered growth rate of 2.43% as compared to Feb. 2011. It is also the second3 largest telecommunication network in the world in terms of no. of wireless connections after China. The Mobile service is one of the fastest growing industries in India. With the economy opening up, competition in this sector is increasing. The entry of private companies promoted the use of cellular phones in the country. There are 25 private companies providing mobile services in 19 telecom circles and four metro cities, covering 1500 towns across the country. The lists3 of mobile network operators in India are given on next page.

 

Presently the Indian mobile industry is witnessing a stiff competition. The mobile services providers are providing various kinds of services to the customers to attract the attention of the new customers and retain the existing customers. As a result, key players are trying to know the attitude of the customers towards the mobile services providers. This helps them to develop good strategy for the better satisfaction of the customers.

 

NEED FOR THE STUDY:

Way back in 1995, Kolkata was the first city6 in the country to get the mobile services from the Mobile Net provider. The then Chief Minister of west Bengal had inaugurated Modi Telstra’s Mobile Net services in Kolkata. The company a joint venture between India’s Modi Group and Australian Telecom giant Telstra was one of the eight organizations who were given license to provide cellular services, two for each of the Indian’s major cities. However Kolkata was ranked the last amongst the four metros in terms of consumer satisfaction. That was the outcome of the survey conducted during September and December 2006 by Telecom Regulatory Authority of India.

 

This was being conducted to gauge the customer satisfaction and evaluate performance of the cellular service providers. This outcome was not a surprise to   3.2 million mobile subscribers in the city. Basically they were very much dissatisfied about the billing services for prepaid and postpaid connections, network performance and availability and helpline services.

 

S No.

Operator

Technology

Ownership

1

Airtel

GSM, EDGE, HSPA

Bharti Enterprises (64.76%) Singapore Telecommunications (32%) Vodafone (4.4%)

2

Vodafone

GSM, EDGE, HSPA

Vodafone (67%) and Essar Group (33%)

3

Reliance Communication

CdmaOne, EVDOGSM, HSPA,

WiMAX

Reliance (67%) and Public (26%)

4

Idea

GSM, EDGE, HSDPA

Aditya Birla Group
Axiata Group Berhad (19.1%)

5

BSNL

CdmaOne, EVDO
GSM, HSDPA
WiMAX, UMTS, EDGE, WiFi.

State-Owned

6

Tata

DoCoMo
Tata Indicom
Virgin Mobile (CDMA)
Virgin Mobile (GSM)

CDMA, EVDO, WiMAX
GSM, EDGE, HSPA+

Tata-Teleservices

7

Aircel

GSM, EDGE, HSDPA

Maxis Communications (74%)
Apollo Hospital (26%)

8

Uninor

GSM, EDGE

Unitech Wireless
Telenor (67.25%)
Unitech Group (32.75%)

9

Videocon

GSM, EDGE, GPRS

Videocon

10

MTNL

GSM, HSDPA [WLL/EVDO]

State-owned

11

Loop Mobile

GSM, GPRS

Essar Group (8.0%)
Santa Trading Pvt Ltd (85.75%)

12

MTS

CDMA EVDO

Sistema (73.71%) and Shyam Group (23.79%)

13

S Tel

GSM, GPRS

Siva Group (51%)
Batelco (49%)

14

Ping Mobile

GSM,CDMA

HFCL Infotel Limited

15

Cheers Mobile

GSM, GPRS

Etisalat
Dynamix Balwas Group

Source : Telecom industry, Govt. of India.

 

 

This has prompted to undertake the study on the attitude of the customers towards the mobile services providers in Kolkata city.

 

REVIEW OF LITERATURE:

Research suggests that cognitive factors of service quality and perceived value and affective enjoyment may determine customer loyalty towards mobile service providers4 (Gerpott; Rams and Schindler, 2001; Lee Murphy and Swilley, 2007). Another researcher has suggested that consumers may perceive products as serving hedonics and instrumental functions5 (Chaudhuri and Holbrook, 2002; Childer, et.al’2001). Seth et al (2008) analyzed that there is relative importance of service quality attributes and showed that responsiveness is the most importance dimension followed by reliability, customer perceived network quality,  assurance,  convenience,  empathy and tangibles. 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 are 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. Nandhini (2001) examined that attitude of the respondents using cell phones was not influenced by either education or occupation and income. Kalpana and Chinnadurai (2006) found that advertisement play a dominant role in influencing 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 and availability, and promotional offer play a main role during the time to choose telecommunication service provider.

 

OBJECTIVES OF THE STUDY:

The broad objective of the study is to know the attitude of the customers towards the mobile service providers in Kolkata city.

 

The specific objectives of the study are as follows.

1.      To explore the attitude of customers towards the customer care services provided by the mobile services providers;

2.      To study the services provider’s service in activating the SIM   purchased by the customers;

3.      To know the network performance of the service providers;

4.      To understand the availability of the plans provided by the service providers for the customers ;

5.      To find the billing services provided by the service provider.

 

LIMITATION OF THE STUDY:

The study as reported here is unavoidably limited by certain constraints. The small sample size i. e. 50 respondents of Kolkata city put restriction on the generalizability of the findings. The limitations of the study are as follows:

1.      Availability of time posed a major constraint

2.      Sample size was   small

3.      Wide coverage is not there, as it is restricted to a particular   area due to constraint of time.

 

 

METHODOLOGY:

A convenience survey in Kolkata yielded a cleaned sample of 50 observations. There were 32 males versus 18 females. Respondents ranged in age from 20 to 40 years and with a mean age of 35years. All respondents owned a mobile phone and had active connection with local service providers. Respondents indicated on a 5-point Likert scale, the extent that they used mobile service for their own purpose. In nutshell, the research methodology has been given below. This study is based on the primary data as well as secondary data obtained from the various published sources.

 

Data sources- Primary data – basically data collected in the Salt Lake City, Kolkata.

 

Research instruments- Questionnaires–close ended questions.

 

Sampling method- Convenience Sampling.

Sample size- 50.

 

Data Analysis and interpretation

1. A. Age wise distribution of the respondents using mobile phones 

 

TABLE - 1

AGE

No. of customers

% of customers

< 20

1

2

20-30

14

28

30-40

35

70

 

Table-1 shows that 35% of the total respondents is in the age group of 35-40years and 14% of the people are in the age group of 20-30years. In other words people belonging to the upper age group are using mobile phone more as compared to the people in younger age group.

 

B .Relationship between the ages of respondents and Mobile service      Providers

 

TABLE-2

 

Mobile service providers

Total

 

Vodafone

Airtel

Others

 

 

Ages of respondents

less than 20

1

 

 

1

     MARITAL         STATUS

   No. of customers

    % of customers

20-30

8

4

2

14

SINGLE

31

62

30-40

14

11

10

35

MARRIED

19

38

Total

 

23

15

12

50

 

 

Table-2 shows that 14 respondents in the age group of 30-40 have   chosen Vodafone, 11 respondents have chosen Airtel.

 

2. A. Education wise distribution of the sample

Table-3 shows that 72% of the customers have completed their graduation and 26% of customers have completed their post-graduation.

 

TABLE-3

EDUCATION

No. of customers

% of customers

10TH

1

2

GRADUATE

36

72

POSTGRADUATE

13

26

 

B.  Relationship between Education and Mobile service providers

 

TABLE-4

 

Mobile service providers

Total

Vodafone

Airtel

Others

 

 

Education

10th pass

1

 

 

1

Graduate

15

11

10

36

Post-graduate

7

4

2

13

Total

 

23

15

12

50

 

3. A.  Income Wise Distribution of the Sample

Table -5 shows that 84% of customers are getting the incomes of above Rs.20000/month and 14% of customers are getting the incomes in the range of Rs.10001-20000.

 

TABLE - 5

INCOME /MONTH

No. of customers

% of customers

<5000

1

2

10001-20000

7

14

ABOVE 20001

42

84

 

B. Relationship between Income and Mobile service providers

 

TABLE-6

 

Ph Brand User

Total

Vodafone

Airtel

Others

 

 

 

Income

<5000

1

 

 

1

10001-20000

3

4

 

7

above 20001

19

11

12

42

Total

 

23

15

12

50

 

4.A. Marital Status Wise Distribution of Sample

Table-7 shows that 62% of customers are unmarried/Single whereas 38% of customers are married.

 

TABLE - 7

MARITAL   STATUS

No. of customers

% of customers

SINGLE

31

62

MARRIED

19

38

 

5.A. Profession Wise Distribution of Sample

Table-8 shows that 78% of customers are in the service industry  and 20% of customers are in the business.

 

 

TABLE – 8

PROFESSION

No. of customers

% of customers

STUDENT

0

0

SERVICE

39

78

BUSINESSMAN

10

20

SELF EMPLOYED

1

2

 

Relationship between the Mobile Service Provider and  Profession

 

TABLE-9

 

 

Profession

Total

Service

Business man

self employed

 

Service Provider

 

Vodafone

21

1

1

23

Airtel

12

3

 

15

Others

6

6

 

12

Total

 

39

10

1

50

 

6. Connection Wise Distribution of the Sample

Table-10 shows that 74% of customers are having the post-paid connections whereas 37% of customers are having the pre-paid connections.

 

TABLE-10

TYPE OF CONNECTION

No. of customers

% of customers

PREPAID

13

26

POST PAID

37

74

 

7. Distribution of Mobile Users among Different Service Providers

Table-11 shows that 46% of customers are using Vodafone, 30% of customers are using Airtel, 14% of customers are using Tata Indicom and 10% of customers are using BSNL.

 

TABLE-11

MOBILE SERVICE PROVIDERS USING

No. of customers

% of customers

AIRTEL

15

30

BSNL

5

10

RELIANCE

0

0

VODAFONE

23

46

TATA INDICOM

7

14

AIRCEL

0

0

ANY OTHER

0

0

8. Comparative Analysis of Vodafone and Airtel

Table-12 is prepared by analyzing the data sheet, for the   comparison of  Vodafone and Airtel services with reference to the different factors.

 

From the table-12, we can say that 52% of Vodafone customers have given highest rating of 5 whereas the 53% of Airtel customers have given highest ratings of 4 with reference to the C1 factor.

 

With reference to the C2 factor, 78% of Vodafone customers have given highest rating of 4 whereas 67% of Airtel customers have given the highest rating of 4.

 

With reference to the C3 factor, 70% of Vodafone customers have given the highest rating of 4 whereas 80% of Airtel customers have given the highest rating of 4.

 

With reference to the C4 factor, 83% of Vodafone customers rated 4 as compared to 47% of Airtel customers.

With reference to C5 factor, 52% of Vodafone customers rated 4 as compared to 53% of Airtel customers.

 

9. Comparison of Age Group, Income and Post Paid Connection with Mobile Service Providers

Table-13 shows that in the age group of 30-40, 47% are having Vodafone, 37%are having Airtel, 17% are having BSNL and 5% are having Tata Indicom.

 

Out of the income group of above Rs.20000, 45% are having Vodafone,26% are having Airtel,17% are having Tata Indicom and 12% are having BSNL.

 

From the table, it also shows that among the postpaid connections, 43% customers are having Vodafone, 29% of customers are having Airtel ,14% of customers are having BSNL and 14% of customers are having Tata Indicom.

 


 

TABLE-12

 

C1

 

C2

 

C3

 

C4

 

C5

 

Mobile service providers

% of customer

Highest Ratings

% of customers

Highest rating

% of customers

Highest rating

% of customers

Highest             rating

% of customers

Highest rating

Vodafone

52

5

78

4

70

4

83

4

52

4

Airtel

53

4

67

4

80

4

47

4

53

4

Where C1, C2, C3, C4 and C5 refers to the following table.

CUSTOMER CARE IS ABLE TO HANDLE CUSTOMER COMPLAINTS DIRECTLY OR IMMEDIATELY (C 1)

SERVICE PROVIDERS IN ACTIVATING THE SIM ( C2)

QUALITY OF SERVICE NETWORK(C3)

AVAILABILITY OF PLAN OPTIONS(C4)

BILLING SERVICES(C5)

 

TABLE-13

                Mobile service providers

 

VARIABLES

VODAFONE

AIRTEL

BSNL

TATA INDICOM

AGE GROUPS-30-40

14(47%)

11(37%)

5(17%)

5(17%)

ABOVE 20000

19(45%)

11(26%)

5(12%)

7(17%)

POST PAID CONNECTION

15(43%)

10(29%)

5(14%)

5(14%)


 

 

 

 

10. STATISTICAL ANALYSIS

(A)   To test the association between Marital status and types of connection

H0: There is no association between Marital Status and types of connection

Level of Significance: 0.10

Marital Status * Types of Connection Cross tabulation

 

 

Types of Connection

Total

 

 

Pre-paid

Post-Paid

 

Marital Status

Single

12

19

31

Married

1

18

19

Total

 

13

37

50

 

 

Exact Sig. (1-sided)

Fisher's Exact Test

0.008

 

Conclusion: Null hypothesis is rejected at 10% level of significance. There is association between Types of connection and Marital Status.

 

(B) To test the association between income and types of connection:

H0: There is no association between income and types of connection

Level of Significance: 0.10

Income group

Types of Connection

Pre Paid

Post Paid

Less than Rs 20000

6

2

Above Rs 20000

7

35

 

 

Exact Sig. (1-sided)

Fisher's Exact Test

0.002

 

Conclusion: Null hypothesis is rejected at 10% level of significance. Therefore, there is association between income and types of connection

 

(C) To test the association between types of connection and profession

H0: There is no association between income and types of connection

 

Types of Connection

Total

Pre-paid

Post-Paid

 

Salaried

10

29

39

Non-salaried

3

8

10

 

13

37

50

 

Fisher’s exact test shows, P = 0.60

Conclusion: Null hypothesis is accepted at 10% level of significance. Therefore there is no association between Profession and types of connection.

 

(D) To test the association ages of respondents and types of connection.

H0: There is no association between ages of respondents and types of connection

 

 

Types of Connection

 

Total

Pre-paid

Post-Paid

Ages of respondent

less than 30

9

6

15

30-40

4

31

35

Total

 

13

37

50

Using Fisher’s exact test Calculated P < 0.10

Conclusion: We reject the null hypothesis and conclude that there is association between ages of respondents and types of connection.

 

(E) Multiple correlations:

Predictors: (Constant), Billing Service, Sim Activation, Plan Availability, Customer Care

Dependent Variable: Service Quality

 

R

R Square

Adjusted R Square

0.747

0.557

0.518

 

Conclusion: 56% of the variance of Service Quality is explained by the independent variables Billing Service, Sim Activation, Plan Availability and Customer Care.

Null Hypothesis, H0: R Square = 0

 

ANOVA

 

Sum of Squares

df

Mean Square

F

Sig.

Regression

10.581

4

2.645

14.173

0.000

Residual

8.399

45

.187

 

 

Total

18.980

49

 

 

 

 

a  Predictors: (Constant), Billing Service, Sim Activation, Plan Availability, Customer Care

 

b  Dependent Variable: Service Quality

Conclusion: The value of R Square is Significant. There is significant correlation between the dependent variable Service quality and independent variables Billing Service, Sim Activation, Plan Availability and Customer Care.

 

(F) Discriminant analysis:

Dependent Variable: Types of Connection

Independent Variables: Ages of Respondents and Income of Respondents

Canonical Discriminant Function Coefficients

 

 

Function

1

Ages of respondents

1.494

Income

1.381

(Constant)

-7.898

 

Types of connection = - 7.898+ 1.494* Ages of respondents +1.381* Income

 

Classification Results

 

Predicted Group Membership

Total

 

Types of Connection

Pre-paid

Post-Paid

 

 

Count

Pre-paid

10

3

13

Post-Paid

7

30

37

 

%

Pre-paid

76.9

23.1

100.0

Post-Paid

18.9

81.1

100.0

 

Conclusion:  80.0% of original grouped cases correctly classified.

 

 

CONCLUSION:

The study in hand reveals that consumers prefer a particular mobile phone service provider on the basis of call tariffs, network coverage and value added services. It is concluded from the study that consumers prefer prepaid plans and all most every consumer treat their mobile phone as a necessity. It is concluded from the study that majority of consumers are aware about the services offered by their mobile phone operators. The study also reveals that consumers are satisfied with the services offered by their mobile by their mobile phone operators. Sometimes, consumers face problems of poor clarity, call drop and poor network but overall they are satisfied with the services offered to them. The study says that consumers are satisfied with the process of solution of their problems and queries. Vodafone is providing good service to the customers as compared to the other service providers. With reference to the customer care service, Vodafone provides good services than the other mobile service providers. Vodafone also provides good service in activating the SIM of the customers. Airtel provides good network connectivity as compared to the other service providers. With reference to the availability of the plan options, Vodafone provides lot of options for the customers as compared to the other service providers. Both the service providers namely Airtel and Vodafone, provides good billing services to their customers.

 

SCOPE FOR FURTHER STUDY:

By taking into account of more samples, we can better understand the attitude of customers towards the mobile service providers with reference to the customer care services, network connectivity, availability of plan options and billing services. This study can further be spread over the whole city of Kolkata.

 

REFERENCES:

1.       http://news.bbc.co.uk/2/hi/business/8607866.stm India's 3G licence bidders bank on big changes

2.       Telecom Regulatory Authority of India(13 June 2011). "Highlights of Telecom Subscription Data as on 30th April 2011" (PDF). Press release. Retrieved 13 June 2011

3.       http://business.mapsofindia.com/india-industry/telecom.htmlTelecom Industry India

4.       Gerpott, T. J., Rams, W., and Schindler, A., 2001. Customer retention, loyalty, and satisfaction in the German mobile cellular telecommunications market. Telecommunications Policy 25, 249-269

5.       Chaudhuri, A., and Holbrook, M. B., 2002. Product-Class Effects on Brand Commitment and Brand Outcomes: The Role of Brand Trust and Brand Affect. Journal of Brand Management 10 (1), 33-58

6.       http://dxm.org/techonomist/news/cellcal.html 5 Years Ago, India made its First Cellular Call on this Date

7.       http://www.vikalpa.com/pdf/articles/2008/V33102_019_034.pdf

8.       Liu, C.M. (2002). The effects of promotional activities on brand decision in the cellular telephone industry. The Journal of Product & Brand Management, Vol. 11, No. 1, pp. 42-51.

 

 

APPENDIX -1 QUESTIONNAIRE

Instruction : - Please put a tick mark ۷) ) where required.

1.       Name-

 

2.       Gender-

 

 

3.       Age- i.  <20         ii.20-30      iii.30-40     iv.40-60     v. Above 60

          (in years)

 

4.       Educational Level :    i. Upto 10th           ii.  + 2                                                                              iii. Graduate        iv. Post-graduate.

 

5.       Income/Month – i. Below  Rs 5000.     ii. Rs 5000-10000,      

                          iii.  Rs.10001-20000.      iv. Above Rs. 20000.

 

6.       Marital status:          Single/Married.

 

7.       Occupation  :    i. Student                         ii. Service  

                              iii. Businessman           iv. Self-employed.

 

8.       What type of connection are you using?  

i. Pre-paid                               ii. Post-paid.

 

9.       Which of the mobile service providers are you using?

        i. Airtel                   ii. BSNL            iii.  Reliance     iv. Vodafone.

        v.  Tata Indicom.      vi. Aircel                   vii. Any other. (Specify)

 

10.     Rate the following factors from 5 to 1.

Tick the value (from 5 to 1) which you will think appropriate.

 

a.       Customer care is able to handle the customer complaints directly and   immediately.-

5                            4                  3                  2                                      1

Very good           Good          Average     Not good                Poor

 

b.         Service provided in activating the SIM.

5                            4                  3                  2                                      1

Very good           Good          Average     Not good                Poor

                   

c.       Quality of service network.(Range, connectivity )

5                            4                  3                  2                                      1

Very good           Good          Average     Not good                Poor

 

d.       Availability of Plan options

5                            4                  3                  2                                      1

Very good           Good          Average     Not good                Poor

 

v.      Billing services (in case of post paid) and deduction of prepaid balance (in case of prepaid)    (Whichever is applicable?)

5                            4                  3                  2                                      1

Very good           Good          Average     Not good                Poor

 

 

 

 

Received on 24.03.2012                    Accepted on 06.05.2012        

©A&V Publications all right reserved

Asian J. Management 3(2): April-June, 2012 page 80-85