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Perceptual Mapping of Key Telecom Operators in Mumbai
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1
WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH
SPECIALISATION PROJECT
ON
Perceptual Mapping of Key Mobile telecom operators:
A study on telecom subscribers in Mumbai
BY
Anup Pawaskar
PGDM e-Biz 2011 – 13 (Marketing)
ROLL NO: - 14
PROJECT FACULTY GUIDE
PROF. Prof. Jyoti Kulkarni
2
PROJECT COMPLETION CERTIFICATE
This is to certify that project titled “Perceptual Mapping of Key Mobile telecom operators:
A study on telecom subscribers in Mumbai” has been successfully completed by Mr. Anup A.
Pawaskar in partial fulfillment of his two years full time course ‘Post Graduation Diploma in
Management’ recognized by AICTE through the Print. L. N. Welingkar Institute of Management
Development & Research, Matunga, Mumbai.
This project in general is done under my guidance.
(Signature of Faculty Guide)
Name: ______________________
Date: ______________________
3
ACKNOWLEDGEMENT
Any successful project is a teamwork that reflects the contribution of many people. I would like to
thank everyone who has contributed to this effort by sharing their time and taking interest in my project
and encouraging me all the way through.
In particular, I would like to thank my Project Guide Prof. Ms. Jyoti Kulkarni for her immense
guidance and support towards the project. I would also like to express my gratitude to Group Director
Prof. Dr. Uday Salunkhe and the Dean of E-biz program Prof. Dr.Pradeep Pendse .
Finally, I would like to thank my classmates, family and friends who have contributed to this research
project in their own special way.
4
Abstract
The title of my project was Perceptual Mapping of Key Mobile telecom operators: A study on telecom
subscribers in Mumbai .The purpose of this project was to find the market space occupied by different
mobile-operators brands in the minds of telecom subscribers in Mumbai in a visual format i.e. by
drawing perceptual maps. It also aimed to find out what are the top important factors that consumers
consider while making a choice of selecting a mobile operator. Finally the project intended to explore
possible positioning strategies for telecom players. By finding visible voids (or empty spaces) in the
perceptual mapping results. A statistical technique called Discriminant analysis method was used to
draw the perceptual maps.
Attributes, like cheap-Tariff, transparency in billing, network-quality, customer-service, easy
availability and customized plans/offerings were selected for comparing the mobile operators and
drawing the perceptual maps. An online questionnaire was administered to collect the responses.
The operators seem to differ significantly on perceived network coverage. Also none of the operators
seem to fit well with the attribute of fair and transparent billing and deductions.
5
6
Table of Contents
Appendix .................................................................................................................................................. 1
Acknowledgement .................................................................................................................................... 3
Abstract .................................................................................................................................................... 4
Appendix B (Synopsis) ............................................................................................................................... 4
Introduction ............................................................................................................................................. 6
Literature Review ..................................................................................................................................... 7
Work done by researchers on this topic ..................................................................................................... 7
Problem Definition .................................................................................................................................... 9
Research Methodology ............................................................................................................................. 9
Questionnaire ......................................................................................................................................... 10
Analysis .................................................................................................................................................. 12
Management Implications of the Study ................................................................................................... 23
References .............................................................................................................................................. 24
7
Perceptual Mapping of Key Mobile telecom operators: A study on telecom
subscribers in Mumbai
A. Introduction
The Indian telecom sector has seen phenomenal growth over the past decade. With around 89.55 crore
telephone connections (86.42 cr. mobile and 30.79 cr. fixed lines), India, today, is the second largest
telecom market in the world. The sector has also been the driver of Foreign Direct Investment and FII
flows into our country. The total revenue of the Telecom Services Sector was US$ 34,344 million (
171,719 crore) in 2010-11, with a y-o-y growth of 8.69%.
However, the Indian telecom market is considered to be one of the toughest one in the world to operate
in. The last decade has seen the emergence of 12 to 13 mobile telecom players in India. The dominant
players are Airtel, Reliance-Telecom, Vodafone, Idea cellular and BSNL/MTNL. Besides these, there
are many smaller players like Tata Indicom and Aircel, MTS and Videocon with operations in only a
few states. The launch of per second billing has further intensified the competition in the market. It has
even lead to structural defects in the industry with abnormally high rotational churn. This indicates the
'use and throw' phenomenon prevailing in the market, which leads to excessive payouts by the telecom
firms for SIMs and rotational churn. The monthly churn over a three-year period has nearly doubled to
12 to 13 per cent levels. Resources are being pumped in for customer acquisition and they are being
serviced at unsustainable price points. The other natural fallout of the hypercompetitive market
has been the free fall in tariffs over the last three years, dropping by over 40 per cent. Tariffs in India
are now among the lowest in the world. In fact, such a market has created unsustainable models where
some telecom players are offering services at prices that do not even justify their marginal costs.
Since the mobile telecommunication market in India has reached its maturity stage, the net return on
investments in mature markets could be much higher for retention strategies than to attract new
customer’s strategies particularly, for companies with an established customer base (Zeithaml, Berry
and Parasuraman, 1998). With increase in supply of mobile services, there is an improvement in
quality, which has resulted in mobile service being treated as commodity like Fast Moving Consumer
Good (FMCG). The Indian mobile service market is very price sensitive so the, service operators trying
for customization and inventing new pricing models to attract all segments of customers. Operators
have to develop well-woven network for retailing the mobile services through company branded shops,
distributors, dealers, retailers and direct sales agents. The customers are well educated and make
conscious decisions. They are vocal about the deficiencies and are asking for more freebees. So, focus
on branding strategies services by cellular operators especially become relevant in the present context.
B. Literature Review
Perceptual Mapping is a marketing research technique in which consumer's views about a product are
traced or plotted (mapped) on a chart. Respondents are asked questions about their experience with the
8
product in terms of its performance, packaging, price, size, etc. Theses qualitative answers are
transferred to a chart (called a perceptual map) using a suitable scale (such as the Likert scale), and the
results are employed in improving the product or in developing a new one. It has been used as a
strategic management tool for about thirty last three decades (Green and Wind, 1975). Perceptual
mapping offers a unique ability to understand market structure, analyzing the complex relationships
among marketplace competitors and the criteria used by buyers in making purchase decisions and
recommendations. Its powerful graphic simplicity appeals to senior management and can stimulate
discussion and strategic thinking at all levels of all types of organizations. Perceptual mapping is a tool
that helps market researchers visually represents customers’ perceptions of products, attributes, brands,
promotions or services (Jawarharlal and Kumar, 2004). It is used to satisfy marketing and advertising
information needs related to product positioning (DeSarbo and Rao, 1984; Wind, 1982), competitive
market structure (Srivastava et al., 1984).
There are two approaches to perceptual mapping: Attribute based and Non-Attribute based. This study
was conducted using the attribute based approach. The respondents were asked to evaluate brands
based on attributes perceived by them when selecting a telecom operator. (Lonergan, 1999) stated that
customer churn remains a major challenge for cellular operators. Most common cause of churn among
cellular customers is switching to another service/tariff plan offered by different cellular operators.
C. Work done by researchers on this topic
1. For years perceptual maps on analgesics showed a big hole where strength (effectiveness) was paired
with gentleness. The strong/gentle part of the map was always empty, and everyone knew why—an
over-the-counter analgesic could not be made that was potent yet didn't irritate the stomach. The launch
of Extra-Strength Tylenol in 1975-76 proved everyone wrong by filling this gap
9
2. Chadha and Kapoor 2008 had conducted perceptual mapping of selected insurance companies
in the Insurance sector and justified the importance of perceptual tools for the marketers. The
resultant perceptual map along with some of the key findings of that study are given below:
Both, ICICI Prudential and BAJAJ Allianz life seemed to be stronger on dimension 1 comprising of
CRM practices and having good advertisement and promotional campaigns.
Customers identify HDFC Standard life insurance brand by Transparency in contracts, CRM practices
and Promotional campaigns. However, the products quality and services of intermediaries’ vectors are
in the opposite direction thus, representing lower association with HDFC Standard life insurance.
Birla Sunlife insurance and Max New York life insurance brands count more on product quality and
services of intermediaries.
The perceptual map shows that customers do not associate Birla Sun life insurance brand and Max New
York life insurance brand with good advertisement and promotional campaigns.
3. A similar study of plotting perceptual maps for telecom operators was conducted in Haryana
among management graduates. (2011, Ashutosh Nigam and Rajiv Kaushik).It had made use of
six attributes namely availability, quality of customer service, price, network quality and
fidelity. Convenience and customer perception of quality emerged as the most important factor
in shaping consumer perception. It made sense to apply such a study in the city of Mumbai,
which is perhaps the most important market in India for telecom players. It has the highest
Average Revenue per User (ARPU) in the country of Rs. 460 per month.
10
D. Problem Definition
With the help of existing research papers that were studied for the current research it was that
perceptual mapping for the Indian telecom brands can provide marketers with insights as to where their
brands stand from the customer’s point of view with respect to different parameters. So, the main
objective of this study is to draw a perceptual map of key mobile telecom operators in Mumbai using
attribute based perceptual mapping technique. The study was aimed to understand the following:
1.) The market space occupied by different Mobile-operators brands in the minds of telecom
subscribers in Mumbai
2.) What factors do consumers consider while making a choice of selecting a mobile operator and
their relative importance of these factors?
3.) Possible Positioning strategies for new and existing telecom players.i.e are there any visible
voids (or empty spaces) seen in the perceptual mapping results?
E. Attributes considered for the study User of a service have predetermined and usually well-defined expectations. These expectations
mainly focus on usability, ease of interaction and performance of the system. This results in what is
termed as the Quality of Experience (QoE).It can be simply defined as the overall acceptability of an
application or service, as perceived subjectively by the end-user. For the user to be satisfied with the
experience, his or her expectations must be met. As per a white paper released by Nokia on QoE ,
attributes such as cost, reliability of network , availability, customer-service, usability, utility and
fidelity are identified to be critical for determining QoE of mobile networks.
F. Research Methodology The top eight telecom service providers in Mumbai were selected for the project based on the number
of subscribers. A total of 131 respondents were selected from the city of Mumbai. Convenience
sampling method was used for selecting the sample of respondents. A quantitative questionnaire was
prepared keeping in mind the objectives of the study. The data was collected through online medium
such as email and social media websites.
In order to achieve the objective of the study, discriminant analysis was used to identify the attributes
that are best associated with the particular telecom brand. Then Perceptual maps were drawn to identify
the market space occupied by each of the brands along these attributes. There was an investigation to
see if there exists any “void spaces” in the perceptual map along which a new or existing brand can be
positioned. Also, the importance of various factors considered by consumers while selecting a telecom
service provider was evaluated. The study used Microsoft Excel 2010 and IBM SPSS v.20 for purpose
of data analysis
G. Questionnaire
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1. Name :___________________
2. Age:_______ years
Gender
o Male
o Female
3. Which of the following telecom operator do you currently use? *
o Airtel
o Vodafone
o Reliance
o Idea
o Tata DoCoMo
o Aircel
o MTNL Trump
o Other: ________
4. How much do you spend monthly on your mobile bill/recharges? *
o Less than Rs.100
o Rs. 100 to Rs.200
o Rs. 200 to Rs. 300
o Rs.300 to Rs.400
o Rs. 400 to Rs. 500
o Rs. 500+
5. How much do you spend monthly on your data packs (2G/3G) recharges? *
o I don’t use Internet on mobile
o Less than Rs.100
o Rs. 100 to Rs.200
o Rs. 200 to Rs. 300
o Rs.300 to Rs.400
o Rs. 400 to Rs. 500
o Rs. 500+
7. The call tariff charged by my telecom operator are cheap and competitive compared to other telecom players *
1 2 3 4 5 6 7
Strongly Disagree Strongly Agree
8. The billing and deduction of balance done by my telecom operator is always fair and transparent *
1 2 3 4 5 6 7
Strongly Disagree Strongly Agree
9. My telecom operator allows me to have a clear conversation without interruptions, call drops etc. wherever I
go *
1 2 3 4 5 6 7
Strongly Disagree Strongly Agree
10. I can proudly say that my telecom operator has the "Best National Coverage in India"
1 2 3 4 5 6 7
Strongly Disagree Strongly Agree
11. On calling/visiting the customer service center of my telecom operator, my query is resolved in quick time &
in a proper manner *
1 2 3 4 5 6 7
12
Strongly Disagree Strongly Agree
12. The customer service staff of my telecom operator is very knowledgeable *
1 2 3 4 5 6 7
Strongly Disagree Strongly Agree
13. Based on the experience with my current mobile operator, I don't think I will be changing my existing telecom
operator in coming 6 months *
1 2 3 4 5 6 7
Strongly Disagree Strongly Agree
14. I would definitely recommend my friends to use the data services (2G/3G) offered by my telecom operator *
1 2 3 4 5 6 7
Strongly Disagree Strongly Agree
15. The recharge packs for my telecom operator are available almost everywhere in Mumbai quite easily *
1 2 3 4 5 6 7
Strongly Disagree Strongly Agree
16. My telecom provider provides a wide range of tariff plans (for calls/data etc.) suitable to my every need *
1 2 3 4 5 6 7
Strongly Disagree Strongly Agree
17. While choosing a mobile telecom operator...rate your level of agreement/disagreement w.r.t. the importance
given to following factors *
Strongly
Disagree
Disagree Neutral
Agree
Strongly
Agree
Easy Availability of
Recharge Packs
Low/Cost effective Tariff
plans
Level-of-Customer
Service
Network Coverage
Customization of calling
and data plan
Value added services like
(Caller-Tunes,Ring-
Tones,
Cricket updates)
13
ANALYSIS
14
Analysis of Primary Data
A total of 131 responses were collected by administering an online questionnaire. The respondents
were from the city of Mumbai and adjoining areas. The primary data collected was analyzed through a
series of validated tools and procedures. The sample respondents were in the age group of 18-40 years.
Close to 55% of the respondents were employed professionals while around 39% were students
studying in either undergraduate or post-graduate courses.
1.) Demographic Characteristics of Respondents
Table 1. (a) Gender
Table 1. (b) Age Group
Age Group Frequency Percentage
18-24 80 61.07
25-29 43 32.82
30+ 8 6.11
Total 131 100
Table 1. (c) Occupation
Occupation Frequency Percentage
Student 51 38.93
Employed 72 54.96
Housewife 8 6.11
Total 131 100
Gender Frequency Percentage
Male 87 66.41
Female 44 33.59
Total 131 100
15
The respondents were asked about the brand of cellular operator they currently use, the amount spent
monthly on voice and text and also the amount spent on data services like 2G/3G.
2.) Mobile Cellular Brands used by the sample respondents and monthly spending
Table 2. (a) Brands used by Respondents
Table 2. (b) Spending on Voice and Text SMS
Table 2. (c) Spending on Data Services (2G/3G)
Monthly Spend on 2G/3G Frequency Percentage
Don’t use Internet on
mobile
23 17.56
Less than Rs.100 35 26.72
Rs. 100 to Rs.200 45 34.35
Rs. 200 to Rs. 300 12 9.16
Rs.300 to Rs.400 8 6.11
Rs. 400 to Rs. 500 3 2.29
Rs. 500+ 5 3.82
Total 131 100
Brand Frequency Percentage
Vodafone 48 37.40
Airtel 25 19.08
Tata DoCoMo 15 11.45
Aircel 10 7.63
Idea 10 7.63
Reliance 9 6.87
MTNL Trump 7 5.34
Loop Mobile 7 4.58
Total 131 100.00
Monthly Spending(Voice
and Text)
Frequency Percentage
Less than Rs.100 14 10.69
Rs. 100 to Rs.200 33 25.19
Rs. 200 to Rs. 300 25 19.08
Rs.300 to Rs.400 18 13.74
Rs. 400 to Rs. 500 19 14.50
Rs. 500+ 22 16.79
Total 131 100
16
The respondents were asked to indicate the importance of certain factors while selecting a mobile
cellular operator. These factors were 1.) Easy availability of Recharge Packs 2.) Low/Cost Effective
Tariff plans 3.)Level of Customer Service 4.) Network Coverage 5.) Customized Calling and Data
Plans and 6.) Value Added Services (viz. Caller tunes, Ringtones etc.).
Table 3. Importance of factors considered by consumers while selecting a Mobile Operator
Weights 5 4 3 2 1
Factor/Importance
Very
Important
Important Moderately
Important
Of Little
importance
Unimportant Weighted
Score
Rank
Easy Availability
of Recharge Packs
25 50 18 23 15 440 5
Low/Cost effective
Tariff plans
63 37 15 9 7 533 2
Level of Customer
Service
46 46 24 8 7 509 3
Network Coverage 96 22 2 7 4 592 1
Customization of
calling and data plan
34 54 21 16 6 487 4
VAS like(Caller-
Tunes,Ring-Tones,
Cricket updates)
7 10 18 39 57 264 6
As seen in the Table 3. above, Network Coverage ranked as the top-most factor in selecting a mobile
operator brand, followed by Low/Cost-effective Tariff Plans and Level of Customer Service. Also,
interestingly a majority of respondents indicated VAS as being unimportant while selecting a mobile
operator. The table also shows that a majority of respondents felt that Customization of calling and
data plans and Easy availability of recharge packs was an important factor for them.
17
4. Perceptual Mapping
To draw the perceptual maps, respondents were asked to rate their mobile operators on six attributes,
namely Cheap Tariff, Transparency in Billing, Network Quality, Customer Service, Easy Availability
of Recharge Packs and Customized Plans and offerings .The attributes were measured using a 7-
point Likert Scale (1- Strongly Disagree to 7- Strongly Agree). Discriminant Analysis was used with
the help of IBM SPSS software. The results have been tabulated in Table 4 given below.
SPSS output
Table 4. (a) Group Statistics
Brand Mean Std. Deviation Valid N (listwise)
Unweighted Weighted
Vodafone
Cheap Tariff 3.9375 1.58995 48 48.000
Transparency in billing 4.5625 1.58324 48 48.000
Network Quality 5.2565 1.06790 48 48.000
Customer Service 4.6146 1.43379 48 48.000
Easy availability 5.9375 1.32739 48 48.000
Customized plans/offerings 5.1667 1.11724 48 48.000
Airtel
Cheap Tariff 4.0000 1.68325 25 25.000
Transparency in billing 3.7600 1.83212 25 25.000
Network Quality 4.6132 1.48959 25 25.000
Customer Service 3.8800 1.45974 25 25.000
Easy availability 6.3200 1.31403 25 25.000
Customized plans/offerings 5.1600 1.14310 25 25.000
Tata DoCoMo
Cheap Tariff 4.4667 1.99523 15 15.000
Transparency in billing 4.3333 1.79947 15 15.000
Network Quality 4.1107 1.76650 15 15.000
Customer Service 3.7333 1.86956 15 15.000
Easy availability 5.4667 1.40746 15 15.000
Customized plans/offerings 5.2667 1.43759 15 15.000
Aircel
Cheap Tariff 4.8000 1.54919 10 10.000
Transparency in billing 4.0000 1.69967 10 10.000
Network Quality 4.3680 1.37433 10 10.000
Customer Service 4.1500 1.05541 10 10.000
Easy availability 5.3000 1.41814 10 10.000
Customized plans/offerings 5.4000 1.34990 10 10.000
Idea
Cheap Tariff 3.9000 1.28668 10 10.000
Transparency in billing 4.7000 2.00278 10 10.000
Network Quality 5.1010 1.15471 10 10.000
Customer Service 4.0500 1.86264 10 10.000
18
Easy availability 5.8000 1.98886 10 10.000
Customized plans/offerings 5.1000 2.13177 10 10.000
Reliance
Cheap Tariff 3.8889 1.83333 9 9.000
Transparency in billing 4.7778 2.22361 9 9.000
Network Quality 5.2589 1.43193 9 9.000
Customer Service 4.6111 1.91667 9 9.000
Easy availability 6.1111 1.16667 9 9.000
Customized plans/offerings 4.8889 1.36423 9 9.000
MTNL Trump
Cheap Tariff 4.4286 1.81265 7 7.000
Transparency in billing 4.5714 1.71825 7 7.000
Network Quality 3.9043 1.38566 7 7.000
Customer Service 3.7143 1.82248 7 7.000
Easy availability 4.8571 1.95180 7 7.000
Customized plans/offerings 4.2857 1.60357 7 7.000
Loop Mobile
Cheap Tariff 5.5714 1.27242 7 7.000
Transparency in billing 3.8571 1.86445 7 7.000
Network Quality 3.6657 1.24722 7 7.000
Customer Service 4.0000 1.91485 7 7.000
Easy availability 5.1429 2.19306 7 7.000
Customized plans/offerings 5.2857 1.70434 7 7.000
Total
Cheap Tariff 4.1832 1.66318 131 131.000
Transparency in billing 4.3282 1.75606 131 131.000
Network Quality 4.7657 1.39762 131 131.000
Customer Service 4.2137 1.58603 131 131.000
Easy availability 5.8092 1.49417 131 131.000
Customized plans/offerings 5.1298 1.33242 131 131.000
Table 4. (b) Univariate ANOVA test
Tests of Equality of Group Means
Wilks' Lambda F df1 df2 Sig.
Cheap Tariff .933 1.270 7 123 .271
Transparency in billing .958 .776 7 123 .609
Network Quality .854 3.010 7 123 .006
Customer Service .946 1.009 7 123 .428
Easy availability .924 1.437 7 123 .196
Customized plans/offerings .971 .532 7 123 .809
High values of Wilk’s Lambda in the table 5 indicate lower group differences. Similarly a higher value
of degree of significance indicates that selected mobile telecom operators do not vary significantly
19
across various attributes. However the importance of Network Quality in distinguishing the mobile
telecom operators was found to be high (significant value of 0.006).
Table 4.(c) Pooled Within-Groups Matrices
Cheap Tariff Transparency in
billing
Network Quality Customer
Service
Easy
availability
Customized
plans/offerings
Correlation
Cheap Tariff 1.000 .113 .067 .222 .050 .352
Transparency
in billing .113 1.000 .250 .350 .298 .127
Network Quality .067 .250 1.000 .428 .432 .325
Customer Service .222 .350 .428 1.000 .149 .215
Easy availability .050 .298 .432 .149 1.000 .361
Customized
plans/offerings .352 .127 .325 .215 .361 1.000
The pooled within group matrix in table 4.(c) indicates low correlation (<0.50) among independent
variables. This implies the attributes chosen for analyzing the mobile telecom operator brands are
distinct.
Table 4.(d) Eigenvalues
Function Eigenvalue % of Variance Cumulative % Canonical
Correlation
1 .251a 59.9 59.9 .448
2 .105a 24.9 84.8 .308
3 .037a 8.7 93.6 .188
4 .021a 5.0 98.6 .144
5 .004a .8 99.4 .059
6 .002a .6 100.0 .049
a. First 6 canonical discriminant functions were used in the analysis.
The Eigen Values in table 4.(d) show that the first two functions explain most of the variance
(cumulative variance 84.8%) in the input data. Hence these two dimensions have been used for further
interpretation.
20
Table 4.(e) Standardized Canonical Discriminant Function Coefficients
Function
1 2 3 4 5 6
Cheap Tariff -.526 .115 .150 .471 -.183 .794
Transparency in billing .027 .719 -.385 -.373 .596 .264
Network Quality .772 .352 .116 -.109 -.723 .504
Customer Service .156 -.040 .547 .713 .476 -.583
Easy availability .126 -.944 -.292 .324 .469 .311
Customized plans/offerings -.165 -.095 .680 -.889 .215 -.206
As seen in table 4.(e) the first six canonical discriminates were used in the analysis. The perceptual
maps were drawn using SPSS output of the discriminant analysis and Excel worksheet. The figure 2
shows the perceptual map of selected mobile operators and different attributes. The Mobile cellular
operators were plotted on the basis of value of group centroids on function 1 and 2 using Table 4.(g).
All the 8 brands have a unique position on the map.
Table 4. (f) Structure Matrix
Function
1 2 3 4 5 6
Network Quality .811* .083 .359 -.014 -.109 .441
Easy availability .405 -.612* -.023 -.025 .474 .485
Customized plans/offerings -.017 -.198 .733* -.536 .264 .257
Customer Service .362 .226 .598* .497 .451 -.096
Transparency in billing .231 .513 -.148 -.114 .729* .343
Cheap Tariff -.489 .131 .460 .283 .041 .671*
Pooled within-groups correlations between discriminating variables and standardized canonical discriminant functions
Variables ordered by absolute size of correlation within function.
*. Largest absolute correlation between each variable and any discriminant function
21
Table 4. (g) Functions at Group Centroids
Brand Function
1 2 3 4 5 6
Vodafone .413 .113 .101 .024 .006 -.023
Airtel -.032 -.605 -.107 .022 -.021 -.006
Tata DoCoMo -.564 .070 -.062 -.248 .096 -.028
Aircel -.516 .112 .308 -.041 -.101 -.028
Idea .278 .233 -.147 -.243 -.083 .110
Reliance .482 .107 -.126 .184 .093 .067
MTNL Trump -.602 .568 -.515 .212 -.063 -.060
Loop Mobile -1.186 .034 .270 .241 .035 .094
Unstandardized canonical discriminant functions evaluated at group means
Figure 1. Canonical Discriminant Functions
22
Figure 2: Perceptual Map of Key telecom operator brands and attributes: Drawn using Excel, from
SPSS output
Mobile Operators and their association with Attributes/Dimensions
The position of different brands have been plotted with respect to different influencing attributes as perceived
by the consumers.
It appears that Idea, Reliance and Vodafone are strongly represented by Network Quality
Airtel is strongly represented by Easy availability of Recharge Packs indicating a well woven
distribution network and intermediaries.
Customers identify Tata DoCoMo, Aircel and also MTNL Trump with cheaper tariff rates. However,
the customer service attribute is in the opposite direction indicating a lower association with the brand
with the later.
Vodafone, Idea and Reliance and Airtel are not perceived with cheap tariff by consumers.
None of the brands score well on transparency in billing and deduction of talk-time balance. In fact
presence of Airtel being in diagonally opposite direction indicates that the brand is perceived poorly on
this factor.
Cheap Tariff
Transparency in Billing
Network quality
Customer Service
Easy Availabilty of Recharge Packs
Customized Plans
Vodafone
Airtel
Tata DoCoMo
Aircel
Idea
Reliance
MTNL Trump
Loop Mobile
-1.2
-1.0
-0.8
-0.6
-0.4
-0.2
0.0
0.2
0.4
0.6
0.8
1.0
-1.5 -1.0 -0.5 0.0 0.5 1.0
Perceptual Mapping of Key Telecom Operators
23
A few other two-dimensional perceptual maps
The correlation between the various attributes were examined and following perceptual maps
were drawn. Figure 3:
As seen in figure 3. Vodafone, Reliance and Idea score high on Network Quality. Loop Mobile,
Tata DoCoMo, MTNL Trump and Aircel score well on cheaper tariffs
Figure 4.
The figure 4 shows that Vodafone and Reliance are perceived to be the best providers in terms of Customer Service while Aircel, Loop and Tata DoCoMo fare a bit better on Customization of plans
Aircel
Airtel
Idea
Loop Mobile
MTNL Trump
Reliance
Tata DoCoMo
Vodafone
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
4.77 4.78 4.79 4.80 4.81 4.82 4.83 4.84
Ch
eap
Ta
riff
Rat
es
Ch
eap
est
Low Network Quality High
Quality of Network v/s Cheap-Tariffs
AircelAirtel
Idea Loop Mobile
MTNL Trump
Reliance
Tata DoCoMo
Vodafone
4.00
4.10
4.20
4.30
4.40
4.50
4.60
4.70
0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00
Customization in Plans V/s Customer Service
Low Customization in Plans High
Low
C
ust
om
er S
ervi
ce
Hig
h
24
Managerial Implication of the study
The research conducted pointed out a number of interesting things that can aid a manager in a
telecommunication firm. Consumers perceive Network Coverage as an important factor while selecting
a mobile telecom brand and that different brands seem to be varying in perceived network coverage.
Telecom companies apart from providing low-cost tariff plans, should also focus on providing
customers a superior level of customer service. The study also hints that consumers are less likely to
select a mobile network operator solely on the basis of VAS like Caller Tunes and Ringtones and
Cricket. Finally ‘transparency in billing and deductions’ is an attribute on which brand managers can
position their telecom brand to achieve differentiation in this hypercompetitive market.
25
References
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3. (Page 6)TRAI :Press Release on Telecom Subscription Data as on 31st December 2012
http://www.trai.gov.in/Content/PressDetails.aspx?PRESS_REL_ID=2025&pg=0
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in the Delivery of Service Quality”. Journal of Marketing, April, pp. 35-48.
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http://www.businessdictionary.com/definition/perceptual-mapping.html
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Chronicle, October, pp15-18
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Presswire, Coventry, May 17.
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Review.,53:107-117.
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9. (Page 7) Wind, Y., 1982. Product Policy: Concepts, Methods and Strategy. Addison-Wesley Publishing,
Reading, MA. ISBN: 10: 0201083434
10. (Page 8)Attribute Based Perceptual Mapping of Prepaid Mobile Cellular Operators: An Empirical
Investigation Among Management Graduates in Central Haryana.(IJCEM International Journal of
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