Chapter 6 Findings, Conclusions and Managerial Implicationsshodhganga.inflibnet.ac.in/bitstream/10603/16006/14/14_chapter6.pdf · 6.4 Managerial Implications 6.5 References . 257

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Chapter 6 Findings, Conclusions and Managerial Implications

6.1 Summary of Findings and Conclusions

6.2 Suggestions

6.3 Further Scope of the Research

6.4 Managerial Implications

6.5 References

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6.1 Summary of Findings and Conclusions

From the calculated Spearman’s statistics it is summarized that there is significant

relationship between brand image and consumer perception about quality of services

in case of BSNL and that Brand Image and Consumer Perception about Quality of

Services are positively correlated.

Also it is found from the calculated Spearman’s statistics that there is no significant

relationship between brand image and company market performance and there is no

correlation between brand image and company market performance in case of BSNL.

From the Spearman’s statistics it can be summed up that there is no significant

relationship between consumer perception about quality of services and company

market performance and there is no correlation between consumer perception about

quality of services and company market performance in case of BSNL.

It is also concluded from Spearman’s statistics that there is no significant relationship

of brand image and consumer perception about quality of services with company

market performance and there is no joint correlation of brand image and consumer

perception about quality of services with company market performance in case of

BSNL.

In case of Vodafone, from Spearman’s statistics it is summarized that there is

significant relationship between brand image and consumer perception about quality

of services and that Brand Image and Consumer Perception about Quality of Services

are positively correlated.

From the Spearman’s statistics it is also found that there is no significant relationship

between brand image and company market performance and that brand image and

company market performance are not correlated in case of Vodafone.

It is also concluded from Spearman’s statistics that there is no significant relationship

between consumer perception about quality of services and company market

258

performance and there is no correlation between consumer perception about quality

of services and company market performance in case of Vodafone.

It is found from Spearman’s statistics that there is no significant relationship of brand

image and consumer perception about quality of services with company market

performance and there is no combined correlation of brand image and consumer

perception about quality of services with company market performance in case of

Vodafone.

In case of Airtel, from the calculated Spearman’s statistics it can be summarized that

there is significant relationship between brand image and consumer perception about

quality of services and that Brand Image and Consumer Perception about Quality of

Services are positively correlated.

It is also summarized that there is no significant relationship between brand image

and company market performance and there is no correlation between brand image

and company market performance in case of Airtel.

It is concluded from Spearman’s statistics that there is no significant relationship


performance and there is no correlation between consumer perception about

quality of services and company market performance in case of Airtel.

It can be summed up from calculated Spearman’s statistics that there is no significant

relationship of brand image and consumer perception about quality of services with

company market performance and there is no combined correlation of brand image

and consumer perception about quality of services with company market performance

in case of Airtel.

In case of Idea from Spearman’s statistics it can be summarized that there is no

significant relationship between brand image and consumer perception about quality

of services and there is no correlation between Brand Image and Consumer Perception

about Quality of Services.

259

It is found from Spearman’s statistics that there is significant relationship between

brand image and company market performance and that brand image and company

market performance are positively correlated in case of Idea.

It is concluded from Spearman’s statistics that as there is no significant relationship


performance and that there is no correlation between consumer perception about

quality of services and company market performance in case of Idea.

In case of Idea it can also be summed up from Spearman’s statistics that there is no

significant relationship of brand image and consumer perception about quality of

services with company market performance and there is no joint correlation of brand

image and consumer perception about quality of services with company market

performance.

From the factor analysis conducted on BSNL respondents’ data Kaiser-Meyer-Olkin

measure of sampling adequacy (MSA) was found to be 0.703 which indicates that the

sample was good enough and that factor analysis can be carried out. Bartlett’s test of

sphericity showed statistically significant number of correlations among the variables

(Approx. Chi square = 548.341, df = 136, Sig. = 0.000). Reliability of the service has

been accounted for highest 86.2% variance.

Principal component analysis is employed for extracting factors. Wherein, first factor

accounted for 21.065% of the variance, the second 12.559% and the third 10.925%.

The Scree plot graphs the Eigen value against the component number. From the

seventh factor on, the line is found to become flat, meaning that each successive

factor is accounting for smaller and smaller amounts of the total variance.

The component matrix showed the loadings of the 17 variables on the 6 factors

extracted. Rotated component matrix shows further reduced no. of variables.

260

Variables such as Reliability, Response Time, Network Strength, Voice Clarity,

Coverage, Customer Care, Advertisement and Subscriber Share are found to be vital

in case of BSNL.

From the factor analysis conducted on Vodafone respondents’ data Kaiser-Meyer-

Olkin measure of sampling adequacy (MSA) was found to be 0.732 which indicates

that the sample was good enough and that factor analysis can be carried out. Bartlett’s

test of sphericity showed statistically significant number of correlations among the

variables (Approx. Chi square = 506.248, df = 136, Sig. = 0.000). Call Drop Rate of

the service has been accounted for highest 85.5% variance.

Principal component analysis is employed for extracting factors. Wherein, the first

factor accounted for 19.760% of the variance, the second 10.902% and the third

10.238%.


eighth factor on, the line is found to become flat, meaning that each successive factor

is accounting for smaller and smaller amounts of the total variance.

The component matrix shows the loadings of the 17 variables on the 7 factors


Variables such as Voice Clarity, Customer Care, Network Strength, Reliability, User

Friendliness, Coverage and Consumer Forums are found to be important in case of

Vodafone.

From the factor analysis conducted on Airtel respondents’ data Kaiser-Meyer-Olkin




(Approx. Chi square = 466.844, df = 136, Sig. = 0.000). Voice Clarity of the service

has been accounted for highest 85.3% variance.

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11.676%.






Variables such as Recharge Facility, Consumer Forums, Word of Mouth, Customer

Care, Call Drop Rate, Network Strength, ARPU and VAS are found to be important

in case of Airtel.

From the factor analysis conducted on Idea respondents’ data Kaiser-Meyer-Olkin




(Approx. Chi square = 302.339, df = 136, Sig. = 0.000). User Friendliness of the

service has been accounted for highest 82.6% variance.



9.710%.






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Variables such as Voice Clarity, User Friendliness, Word of Mouth, ARPU, Billing

Transparency and Reliability are found to be vital in case of Idea.

From the factor analysis conducted on other service provider respondents’ data

Kaiser-Meyer-Olkin measure of sampling adequacy (MSA) was found to be 0.707

which indicates that the sample was good enough and that factor analysis can be

carried out. Bartlett’s test of sphericity showed statistically significant number of

correlations among the variables (Approx. Chi square = 657.622, df = 136, Sig. =

0.000). Coverage of the service has been accounted for highest 85.8% variance.



13.237%.






Variables such as Subscriber Share, Response Time, Word of Mouth, Call Drop Rate,

ARPU, Coverage and Recharge Facility important in case of other service providers.

From the Chi-Square statistics it can be summarized that current service provider is

not independent of brand image and that consumers take into consideration brand

image before opting the mobile service provider. Also, it can be summarized that as

Current Service Provider is independent of Consumer Perception about Quality of

Services.

It is summarized from the Chi-Square statistics that current service provider is not

independent of company market performance and that consumers give consideration

to the company market performance. And also that current service provider is not

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independent of consumer’s association with the service provider and that consumer’s

satisfaction leads to longer association with the service provider.

It is found from calculated Chi-Square statistics that current service provider is not

independent of technology of service and that consumers take into consideration to

technology of interest before choosing the service provider. Also that current service

provider is not independent of type of service used by consumers and that consumer’s

choice of prepaid or postpaid service is related to the current service provider.

It is concluded from the Chi-Square statistics that current service provider is not

independent of different age groups of consumers and that different age groups of

consumers may carefully associate with service providers. Also that current service

provider is not independent of gender difference of consumers and that male and

female consumers may have differences of opinion in choosing service providers.

It can be summed up from the Chi-Square statistics that current service provider is not

independent of education of consumers and that education of consumers does play

role in their selection of service providers. Also that current service provider is not

independent of occupation of consumers and that occupation of consumers does play

role in their selection of service providers.

From the Chi-Square statistics it can be summarized that current service provider is

not independent of marital status of consumers and that marital status of consumers

does affect their selection of service providers.

It is concluded from the Chi-Square statistics that current service provider is not

independent of time spent by consumers on mobile phone using the services of the

service providers and that consumers’ amount of time spent on mobile has association

with their choice of service provider.

It can be summarized from Kruskal Wallis Test that there is significant difference

between different age groups and selected services offered by the service providers

and that service providers should design selected services to match the requirements

of different age groups.

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It is also found from the test statistics of Kruskal Wallis Test that for all the selected

services except for SMS, receiving Updates, Applications and Game downloading and

Payment using mobile phones, is less than 0.05 and hence it can be said that the

service providers should give special consideration to Calling, Call Management, E-

mailing, MMS, Internet Access, Caller tunes and Ringtones to suit the requirements

of different gender.

It can be summarized from the test statistics of Kruskal Wallis Test that there is

significant difference between different education levels and selected services offered

by the service providers. The service providers should design selected services

considering the education level of the subscribers.

It is concluded from the test statistics of Kruskal Wallis Test that there is significant

difference between different occupations and selected services offered by the service

providers. Occupations do play an important role in use of different selected services

offered by the service providers.

It can also be summarized from Kruskal Wallis Test that there is significant difference

between different monthly income groups and selected services offered by the service

providers except internet access which may be dependent on other factors and not

only on monthly income. Monthly income is a vital factor in choice and use of

different selected services. And also that there is significant difference between

marital status and selected services offered by the service providers.

265

6.2 Suggestions

Examining the results in case of BSNL, Vodafone and Airtel it can be inferred that

brand image and consumer perception about quality of services share positive

relationship with each other that is good quality of service would lead to

strengthening of brand image which is very much essential for any company

competing in the market. Whereas the findings do not support direct relationship

between brand image and company market performance and between consumer

perception about quality of services and company market performance and brand

image and consumer perception about quality of services taken together with

company market performance that is company market performance may be depending

on other parameters as well. BSNL, Vodafone and Airtel should work on other

parameters other than building up of brand image and improvement quality of

services as well to further perform well in the market.

In case of Idea, brand image and consumer perception about quality of services do not

share positive relationship with each other that is only improving brand image would

not lead to satisfaction about perceived service quality and that company should give

special attention to improvement in services provided by them. Also brand image and

company market performance share positive relationship and campaigns run by Idea

are aiding to the market performance of the company and they should be continued.

However direct relationship is not supported between consumer perception about

quality of services and company market performance and brand image and consumer

perception about quality of services taken together with company market performance

that is other parameters may also be taken into consideration to improve market

performance.

BSNL should give attention to reliability of the services due consideration at the same

time shortening response time, lessen network congestion to improve network

strength in city area, voice clarity, coverage and improving customer care are the

target areas for company to improve the performance. Advertising of the services is

also necessary to create awareness in order to lure more users to come under BSNL

fold to increase subscriber share.

266

For Vodafone voice clarity, customer care, network strength, reliability, user

friendliness and coverage have been very strong and should keep that up. Creation of

consumer forums should be done in order to build up strong feedback mechanism.

In case of Airtel, recharge facility availability, consumer forums, word of mouth,

customer care, call drop rate, network strength and value added services have been

found as strong points. Whereas decreasing average revenue per user is a matter of

prime concern for all providers which can be improved by increasing the spread of

value added services.

Idea is found good with voice clarity, user friendliness, word of mouth and billing

transparency whereas needs to work on other parameters to improve its position in the

market.

Overall all the providers may strengthen their core part that is service to build up the

brand image and improve market performance as well.

Consumers take into consideration brand image before opting for service provider

whereas perception of service quality is developed only while using the service. So,

reinforcing the image is vital for the providers whereas growing subscriber share leads

to good market performance. Longer association of consumer with the service

provider reflects loyalty of the consumer towards service provider. Consumers

carefully choose prepaid or postpaid service and GSM or CDMA service according to

their requirements.

Demographics such as age groups, gender, education level of consumers, occupation

of the consumers, marital status do affect consumers’ choice of service providers and

services provided by them. Service providers should carefully design the services

considering demographics in order to have better synchronization between their needs

and services provided to win consumer’s trust and long association.

Various services provided by the providers should be revisited again and again for

constant improvements to match the consumer requirements keeping in mind policy

267

changes, market dynamics and technological advancements to keep the consumer

experience with the service provider pleasing and pulsating.

6.3 Further Research Scope

The present research work is carried out for Indian telecom industry mobile service

providers to explore the relationship among brand image, consumer perception about

quality of services and company market performance in Gujarat area. The research

can be conducted at National level as well.

The research can be done Industry-wide rather than for limited service providers.

Other variables can be added to the study and other relationships can be investigated.

The research can be further extended to study factors responsible to understand

switching behavior of the consumers due to mobile number portability. In order to

develop strategies to guard consumer churn and retain them to have firm grip on the

market share.

The study can also be conducted for data services given the boom with the advent of

smart phones and increasing reliance on data services as it is important for increasing

per user revenue as well.

The variables studied in the present work can be studied for other allied industries as

well so as to understand and see that whether these relationships hold true for them or

change over different industries.

268

6.4 Managerial Implications

The progress and the changes in telecom have been astronomical, with new and

cheaper technologies taking birth almost each year. Driven by wireless

communication, the telecommunications industry is recognized as a key to the rapid

growth and modernization of the economy and an important tool for socio-economic

development of a nation. Considering the findings and conclusions following

inferences can be made from the study:

Major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition. The growth of Indian telecommunication

sector is highly driven by supportive government policies, emerging new technologies

and changing consumer behavior.

Telecom tariffs have been on a long-term downward trend. Changing consumption

patterns and market conditions, as well as, competitive pressure from peers and new

entrants, substantiate the need for managers to be creative and innovative in whatever

they do.

Innovative tariff plans of voice and data services are one of the best ways for

managers to differentiate themselves from the competition. Tariff plans, which

provide flexibility to connect multiple devices, differentiated pricing at off-peak hours

and seamless connectivity via 2G, 3G, 4G and Wi-Fi are likely to attract customers.

Segmentation of customers and targeted marketing of different service offerings

would be crucial for success.

With subscriber base heading towards saturation, the operators need to focus on

retaining the customers. Hence, getting the most out of customer data and consistently

managing customer experience are likely to be the key differentiators for managers.

Managers need to add new data and video services to their offerings as they cannot

afford to depend on revenues from voice and SMS in times when ARPU is constantly

decreasing. Most of these offerings will need close cooperation between technology,

content and service providers along with handset manufacturers.

269

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Chapter 6 Findings, Conclusions and Managerial Implicationsshodhganga.inflibnet.ac.in/bitstream/10603/16006/14/14_chapter6.pdf · 6.4 Managerial Implications 6.5 References . 257