Consumers buying Preference of
Mobile Network Service Providers with Special Reference to Salem City, Tamil
Nadu
P. Vijay1, Dr. R.
Sakthivel2
1Research Scholar, Karpagam
University, Coimbatore – 641021 Tamil Nadu, India
2Assist
Professor- Business Management, Government Arts College, Coimbatore -641018
Tamil Nadu,
*Corresponding Author E-mail: girisshvijay@gamil.com,
sakthi19_69@yahoo.co.in
ABSTRACT:
The
implementation of LPG developed the India by the foreign company’s entry. In
India the mobile telecommunication network service increased considerably and
it plays second largest network role in the world. In the competition market
the Mobile network service providers grow and survive only through service
quality and fulfilling the several highly developed features at cheapest price.
The mobile network customers giving more importance to several factors before
subscribing the network to get the best one so the study aims to examine the
customer’s satisfaction towards mobile network service providers.
KEYWORDS: Consumer buying preference,
Mobile network service, Satisfaction level.
Telecommunication service liberalized in 1992 to bridge the gap in
India to make available of telecom in nation as an additional resource. In 1993
Rs 20.6 million got by the telecom industry as yearly foreign investment. In
1994 Government of India granted license to operate mobile cellular service in
Delhi, Mumbai, Kolkata, and Chennai. In 1995 the first mobile network service
is inaugurated by Modi Telstra's Mobile Net service
in Calcutta. The mobile network service. In the global interaction the
communication technology plays an important role. India also plays the vital
role in network communication by the subscriber’s growth from 1million to
881million as on October 2011. The growth of network communication increased by
dropping the call tariff rates form Rs 14 to Re1. The 70 billion universal
service obligation funds are utilized by the government to make innovative
policy to manufacture equipments by spectrum operators. The 3rd
generation, value added service, mobile number portability created the tougher competition between the
different networks service
providers and mean time the competition
created a health benefit to the subscribers by getting maximum advanced
features and facilities from the service providers.
Mobile Telecom Companies in
India Bharat
Sanchar Nigam Limited
Bharat Sanchar Nigam is established in the year 2000 to provide the
telecom service in India. The policy of telecommunication is framed and
implemented by BSNL and its functioning under the security of ministry of
communication and department of telecommunication government of India. In the
telecom sector it place the 7th largest place in the world.
BHARTI AIRTEL
In 1995 bharti televentures
incorporated the network service and commenced the business in the year 18th
July 1996 and launched the network service in Delhi in the Brand name Airtel. The Business week magazine ranked the performance
as best company in 2007. In its operation 200million customers crossed by this
network.
RELIANCE COMMUNICATION
In December 2002 the reliance communication is incorporated in
Delhi. A major role in telecommunication played by the reliance. In 2006 the
reliance commenced the one nation one tariff plan in India.
VODAFONE
Joint venture between Racal Electronics plc's subsidiary Racal
Strategic Radio Ltd along with Millicom and the
Hambros Technology incorporated Vodafone in 1982. The Racal electronics, Millicom,
Hambros owned the joint venture in the ratio 80%, 15% and 5%. In 2007 the
company owned 11.1 billion stakes in Hutchison Essar
and renamed as Vodafone Essar.
VARIOUS MOBILE NETWORK SERVICE
PROVIDERS IN SALEM CITY
BSNL, Airtel, Vodafone, Reliance
communication, etc.
REVIEW OF LITERATURE
Ja-Shen Chen, Russell K.H. Ching (2007) the mobile
commerce holds opportunities for mobile service providers. The loyal customer base is build by the
mobile service provider by differentiating its service by appealing the
customer individuality through CRM, mobile service and brand image. The all add
the customer loyalty. The customer loyalty is achieved by directing CRM and
mobile service. On the other hand the brand image holds back the customer loyalty by the
effect of customer service, customization and mobile usage.
Zulfqar Ahmad et al., (2010) with the help of the Questionnaire 331 respondents were surveyed.
The study only focuses on sms service provided by the
telecom organization. The service quality and customer retention is measured by
using 5 dimensions tangibles, empathy, assurance, responsiveness and
reliability. The result of the shows to some extent the customers are satisfied
from the SMS service provider. The tangible and assurance scored highest and
the empathy scored lowest than other dimensions. The correlation shows related
with satisfaction the empathy is negative and remaining dimensions tangibles,
assurance, responsiveness and reliability are positive. The regression point
out 15% change in retention expected by service quality mean time the 5
dimensions tangibles, empathy, assurance, responsiveness and reliability have
important relation with customer satisfaction.
Mohammad Aamir et al,(2010) with the help of structured questionnaire the 292 students were
selected randomly from the university between the age category 18-25 years to
know the loyalty and satisfaction level of five major mobile service provider
in Pakistan. The study reveals customers are number one so the companies
practically exercise customer relationship management. The evaluation of major
thing creates benefit from the fashionable feature to act as main relationship
with customers for long period. The companies by giving a special promise build
a customer trust and increasing the switching cost limits the boundary of the
customers.
D. J. Petzer,
et al (2011) In his research by using
Non probability convenience sampling
2339 respondents who hold cell
phone in Gauteng province of south Africa were
younger or age of 64 years are
examined for the study. The
study resulted the young generation awareness about service quality towards
existing service offered by network service providers is considerably lower
than other generation and towards network service providers the generation’s
behavioral intention is very low and creating risk in customer loyalty. It
shows the major existing relationship identifying service quality level,
satisfaction level and behavioral intention between dissimilar generations. The
study point outs the cell phone network service providers in South Africa by
using different marketing strategies must provide service quality level beyond
customer expectation for different generation to stay away from service
failure.
OBJECTIVES OF THE STUDY:
PRIMARY OBJECTIVES
To study the factors expected
while purchasing mobile network.
SECONDARY OBJECTIVES
To study the fulfillment of
expected factors.
To study the time consumption to
connect customer care.
To analyze the response of
customer care staff.
To know the additional service
expected.
RESEARCH METHODOLOGY:
Redman et al (1923) defines by regulates attempt the new
information are gathered. 200 mobile
network subscribers were selected as samples. It includes both male and female,
respondents from different occupation. The Primary data and secondary was used
to collect the information. The primary data is collected from mobile network
subscribers in Salem city and the secondary data is collected by referring
related books, journals, magazines and websites. The non probability convenient
sampling is used to collect the primary data.
HYPOTHESIS
The following hypothesis is created to test the variables
H1: There is no significant relationship between Factors expected
while purchasing and fulfilling expectation
H2: There is no significant relationship between expected
additional service and satisfaction level of additional service
TOOLS FOR ANALYSIS AND
INTERPRETATION
The data were analyzed with help of statistical tools like
Percentage analysis, and weighted average method
The above table shows 33% of them the age group of
20-30, 26% of them in the age group of <20, 25.5% of them
from the age group of 30-40, 15.5% of them from above 40. 59% of the respondents are males and 41% of
them are females. The income is offered by occupation.34% of them running their
own business, 27%of them occupied in private sector, 15% of them are scholars,
13% of them occupied in government, 11% of them are retired persons. 61% of
them using prepaid connection, 39%of them using postpaid connection. In creating
awareness advertisement plays a major part i.e. 29%, 26% of them got the
awareness through friends, 24% of them through relatives, 21% of them got the
awareness through dealers suggestions.
26.5% of them prefer airtel network, 19% of
hem prefer reliance, 18.5% of them prefer Vodafone, 14% of them prefer Tata,
11.5% of them prefer BSNL, and 10.5% of them prefer other networks.
Table 1- Demographic Data
|
Particulars |
No of Respondents |
Percentage |
|
|
Age |
<20 |
52 |
26 |
|
20- 30 |
66 |
33 |
|
|
30-40 |
51 |
25.5 |
|
|
Above 40 |
31 |
15.5 |
|
|
Gender |
Male |
118 |
59 |
|
Female |
82 |
41 |
|
|
Occupation |
Government |
26 |
13 |
|
Private |
54 |
27 |
|
|
Business |
68 |
34 |
|
|
Retired persons |
22 |
11 |
|
|
scholars |
30 |
15 |
|
|
Type of connection |
Post paid |
78 |
39 |
|
Prepaid |
122 |
61 |
|
|
Sources of awareness |
Friends |
52 |
26 |
|
Relatives |
48 |
24 |
|
|
Advertisement |
58 |
29 |
|
|
Dealers suggestions |
42 |
21 |
|
|
Preference of mobile network company service |
BSNL |
23 |
11.5 |
|
Vodafone |
37 |
18.5 |
|
|
Airtel |
53 |
26.5 |
|
|
Reliance |
38 |
19 |
|
|
Tata |
28 |
14 |
|
|
Others |
21 |
10.5 |
|
Table 2 - Factors Expected While
Purchasing and Fulfilling Expectation
|
Particulars |
No of Respondents |
Percent-age |
|
|
Factors expected while
purchasing |
Network coverage |
41 |
20.5 |
|
Low tariff |
26 |
13 |
|
|
Brand image |
42 |
21 |
|
|
Customer service |
30 |
15 |
|
|
Offering new schemes |
61 |
30.5 |
|
|
Fulfillment of expectation |
Poor than expected |
47 |
23.5 |
|
Fulfilling is up to the level |
82 |
41 |
|
|
Fulfilling more than expected |
71 |
35.5 |
|
The table shows the factors expected while purchasing. 30.5% of
them expecting offering new schemes, 21% of them expect Brand image, 20.5% of
them expect Network coverage, 15% of them expect customer service, and 13% of
them expect Low tariff rates. In fulfilling the expectation 41% of them says
the expectation fulfillment is up to the
level, 35.5 % of them says the expectation is fulfilled more than expected by
them,23.5% of them says the fulfillment is poor than expected by network
service provider.
Table3 – Time Consuming to
Connect with Customer Care and Response of Customer Care Staff
|
Particulars |
No of Respondents |
Percent-age |
|
|
Connection with customer care |
Less than 1 minute |
50 |
25 |
|
2 minutes |
58 |
29 |
|
|
5 minutes |
61 |
30.5 |
|
|
More than 5 minutes |
31 |
15.5 |
|
|
Response of customer care
staff |
Highly Satisfied |
28 |
14 |
|
Satisfied |
69 |
34.5 |
|
|
Netural |
53 |
26.5 |
|
|
Dissatisfied |
33 |
16.5 |
|
|
Highly dissatisfied |
17 |
8.5 |
|
The above table shows the time consuming to connect with customer
care to get the customer care service and the response of customer care staff.
30.5% of them feels time consuming is 5minutes, 29% of them feels the time
consuming is 2minutes, 25% of them feels
time consuming is Less than 1
minutes, 15.5% of them feels time consuming is more than five minutes to
connect with customer care. 34.5% of them feels highly satisfied, 26.5% of them
feels Neutral, 16.5 % of them feels dissatisfied, 8.5% of them feels highly
dissatisfied about the response of customer care staff.
Table 4 – Expected Additional
Service And Satisfaction Level Of Additional Service
|
Particulars |
No of Respondents |
Percentage |
|
|
Expected additional service |
Internet services |
63 |
31.5 |
|
Innovation of service |
70 |
35 |
|
|
Time frequency |
42 |
21 |
|
|
Others |
25 |
12.5 |
|
|
Satisfaction level of additional
service |
Highly satisfied |
37 |
18.5 |
|
Satisfied |
67 |
33.5 |
|
|
Netural |
36 |
18 |
|
|
Dissatisfied |
35 |
17.5 |
|
|
Highly dissatisfied |
25 |
12.5 |
|
The above table shows the additional service expected and the satisfaction
level of the additional service provided. 35% of them expect innovation in
service, 31.5% of them expect internet service, 21% of them expect time
frequency, 12.5% of them expect other service. In the level of satisfaction
33.5% of them satisfied, 18.5% of them highly satisfied, 18% of them neutrally
satisfied, 17.5% of them dissatisfied and remaining 12.5% of them are highly
dissatisfied.
Table 5: H1: There is no
Significant Relationship Between Factors Expected While Purchasing and Fulfilling
Expectation
|
Factors expected while purchasing/Fulfilling expectation |
Poor than expected |
Fulfilling is up to the level |
Fulfilling more than expected |
Total |
||||
|
Network coverage |
10 |
12 |
23 |
45 |
||||
|
Low tariff |
11 |
23 |
11 |
45 |
||||
|
Brand image |
8 |
21 |
9 |
38 |
||||
|
Customer service |
7 |
8 |
10 |
25 |
||||
|
Offering new schemes |
11 |
18 |
18 |
47 |
||||
|
Total |
47 |
82 |
71 |
200 |
||||
|
Factor |
Calculated chi square value |
Table value |
Degree of freedom |
Remarks |
||||
|
Chi square |
12.564 |
15.507 |
8 |
Significance at 5% level |
||||
Table 6: H2: There is no
Significant Relationship Between Expected Additional Service And Satisfaction
Level of Additional Service
|
Expected additional service/ Satisfaction level of additional
service |
Highly satisfied |
Satisfied |
Neutral |
Dissatisfied |
Highly Dissatisfied |
Total |
||||
|
Internet services |
12 |
23 |
9 |
7 |
9 |
60 |
||||
|
Frequency of service |
11 |
16 |
11 |
6 |
12 |
56 |
||||
|
Time frequency |
8 |
13 |
7 |
7 |
6 |
41 |
||||
|
Others |
6 |
15 |
9 |
5 |
8 |
43 |
||||
|
Total |
37 |
67 |
36 |
25 |
35 |
200 |
||||
|
Factor |
Calculated chi square value |
Table value |
Degree of freedom |
Remarks |
||||||
|
Chi square |
4.15 |
21.026 |
12 |
Significance at 5% level |
||||||
Table 7: Most Important Factor
And Least Important Factor Considered By Respondents During Purchase Weighted
average
|
Sl. No. |
Factors |
Weight [x] |
7 |
6 |
5 |
4 |
3 |
2 |
1 |
Total |
Weighted Average ∑fx / ∑x |
Rank |
|
1. |
Network coverage |
Frequency [f] |
20 |
38 |
34 |
23 |
28 |
15 |
42 |
200 |
28.07 |
II |
|
fx |
140 |
228 |
170 |
92 |
84 |
30 |
42 |
786 |
||||
|
2. |
Low tariff |
Frequency [f] |
12 |
28 |
22 |
26 |
18 |
29 |
65 |
200 |
22.96 |
IV |
|
fx |
84 |
168 |
110 |
104 |
54 |
58 |
65 |
643 |
||||
|
3. |
Brand image |
Frequency [f] |
17 |
21 |
25 |
23 |
28 |
35 |
51 |
200 |
23.82 |
III |
|
fx |
119 |
126 |
125 |
92 |
84 |
70 |
51 |
667 |
||||
|
4. |
Customer service |
Frequency [f] |
12 |
17 |
21 |
23 |
32 |
20 |
75 |
200 |
21.21 |
V |
|
fx |
84 |
102 |
105 |
92 |
96 |
40 |
75 |
594 |
||||
|
5. |
Offering new schemes |
Frequency [f] |
28 |
38 |
23 |
25 |
19 |
31 |
36 |
200 |
28.35 |
I |
|
fx |
196 |
228 |
115 |
100 |
57 |
62 |
36 |
794 |
The calculated value (12.564) is less than tabulated value (15.507)
therefore Null hypothesis is accepted and there is no significant difference
between Factors expected while purchasing and fulfilling expectation The
calculated value (4.15) is less than tabulated value (21.026) therefore Null
hypothesis is accepted and there is no significant difference between Expected
additional service and Satisfaction level of additional service. The above
table shows that the respondents consider offering new schemes (28.35) as a
most important factor and customer service (21.21) as a least important one.
FINDINGS
Ø
25.5% of the respondents
are from the age group of 30 – 40.
Ø
59% of the respondents are male.
Ø
Majority of the respondents i.e. (34%) of the running the business
prefer more usage of network service.
Ø
61% of the respondents prefer paid connection because of
convenient to recharge anywhere else.
Ø
Majority of the
respondents got awareness through advertisement i.e. 29%.
Ø
26.5% of the respondents using Airtel.
Ø
30.5% of the respondents expect
mew scheme offers.
Ø
41% of the respondents say fulfilling the expectation is up to the
level.
Ø
Majority of the respondents say (30.5%) 5 minutes consumed to
connect with customer care.
Ø
34.5% of the respondents satisfied with customer care staff.
Ø
35% of the respondents additionally expect innovation service.
Ø
33.5% of the respondents satisfied with the additional service.
SUGGESTIONS
Ø
The majority of the users are from the age category 20-30 the
network service provider must concentrate on all age category to increase the
usage of all aged category by introducing new offers.
Ø
The male subscribers are the majority users by giving special
service package to females the service provider increase the usage of the
network service.
Ø
The occupation leads to the usage. The business peoples get more
income through their business and it leads to more usage of network. The
service providers by giving business offer package can promote the usage of
network service.
Ø
Most of the customers prefer prepaid. So the service provider must
implement easiest method to recharge and by charging low service charge and
activation charge increase the usage of network.
Ø
The advertisement attracts the customers very easily. The wide
area is covered by advertisement by giving innovative and creativity
advertisement the service provider can increase the usage.
Ø
Most of the customers prefer airtel
network. The network service must take necessary steps to retain the customers
by acceptable service quality.
Ø
The new schemes offered by the service provider is expected by the
majority of the customers by fulfilling the expectation level more than
expected the service provider can retain existing customer and get new
customers.
Ø
The time consuming to connect with customer care must be reduced
by the service provider by operating more service care lines and the way of
handling the customer with good enthusiasm and responding to the complaints and
quires promote the good will between the customers and even make the highly
dissatisfied customer as highly satisfied.
Ø
Innovation in service expected by most of the customers even the
service provider offering many services. So the service provider must offer
innovation in service by considering feature needs make majority customers to
feel the satisfaction level is high and the service provider can get continuous
support from customers.
CONCLUSION:
The study indicates the network service providers facing tight
competition so it is very essential for the entire network service provider to
study the consumer buying preference. The network service providers by offering
attractive schemes, value added service at cheapest cost assist the network
provider to generate the profit. The entire service providers offering
attractive schemes at cheapest cost making the consumers feel difficult to
select the network service provider and creating unstable situation to use the
same network service for long time so
some network service providers getting benefit and some of them losing their business. The
network service providers can retain their consumer by mutual agreement between
them by introducing and implementing same sort of schemes, value added service
and by avoiding new services to the switching consumer from other network
service promote the equal consumers network subscribing to the entire network
service providers and it is more benefit able to retain their consumers with
them by the network service providers.
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Received on 27.07.2012 Accepted on 22.08.2012
©A&V Publications all right reserved
Asian J. Management 3(3): July-Sept., 2012 page 158-162