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.

 


INTRODUCTION:

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.

 

REFERENCES:

(1)     Ja-Shen Chen, Russell K.H. Ching (2007) The Effects of Mobile Customer Relationship Management on Customer loyalty: Brand Image Does Matter, Proceedings of the 40th Hawaii International Conference on System Sciences - 2007 ISBN:0-7695-2755-8, pages 151.

(2)     Mohammad Aamir, Waseem Ikram, Khalid Zaman, (2010) “Customers’ Switching in Mobile Phone Service Providers in Pakistan”, Int.J.Buss.Mgt.Eco.Res. Vol 1(1), 2010, 34-40.

(3)     Moon-KooKima, Myeong-Cheol Park, Dong-Heon Jeonga, (2004) “The effects of customer Satisfaction and switching barrier on customer loyalty in Korean mobile telecommunication services”, Telecommunications Policy 28, pp 145–159.

(4)     Naman shah, (2008) “Critically analyze the customer preference and satisfaction measurement in Indian Telecom Industry”, The Indian institute of planning and management – Ahmadabad, 2008, pp 117- 118.

(5)     D. J. Petzer and C. F. De Meyer, (2011) “The perceived service quality, satisfaction and behavioural intent towards cell phone network service providers: A generational perspective”, African Journal of Business Management Vol. 5(17), pp. 7461-7473, 4 September, 2011, ISSN 1993-8233 ©2011 Academic Journals.

(6)     Sukumar, “A study of consumer’s preference and satisfaction towards various cell phone Service provides” http://www.scribd.com/doc/13489869/.

(7)     Zulfqar Ahmad, Ishfaq Ahmed, Muhammad Musarrat Nawaz, Ahmad Usman, Muhammad Zeeshan Shaukat, Naveed Ahmad, (2010) Impact of Service Quality of Short Messaging Service on Customers Retention; an Empirical Study of Cellular Companies of Pakistan, International Journal of Business and Management, Vol. 5, No. 6; June 2010, pp 154-160.

 

 

 

WEBSITES

Communications in India in Wikipedia, The free encyclopedia, Retrieved Feb 15, 2012 from http://en.wikipedia.org/wiki/ Communications_in_India.

 

Dion Global Solutions Limited, Retrieved Feb 15, 2012 from http:// www.money control.com/company-facts/bhartiairtel / history/BA08.

 

Dion Global Solutions Limited, Retrieved Feb 15, 2012 from http:// www.money control .com/company-facts/idea cellular/ history/IC8.

 

DusanBelic, Into Mobile, India’s Bharti Airtel rebrands, crosses 200 million customers Sunday, January 2nd, 2011, Retrieved Feb 15, 2012 from http://www.intomobile.com/2011/01/02/bharti-airtel-rebrands/.

 

Telecom Industry in India, updated on Aug, 28, 2010, Retireved Feb 14, 2012 from http://www.iloveindia.com/economy-of-india/telecom-industry.html.

 

 

 

 

 

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