Garima Singh

8/6/2019 Garima Singh

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Bangalore

A study on customer satisfaction and loyalty towards

Airtel prepaid service provider in Gurgaon

In partial fulfillment of the Course: Dissertation

In Term VIII of the Post Graduate Program in Management

(Batch: Aug. 2009 2011)

Prepared by: Garima Singh

Registration No: 09PG200

Under the Guidance of Prof. Jacob Alexander


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Bangalore

Post Graduate Program in Management

Aug. 2009 2011 (Term VIII)

Declaration

This is to declare that the report entitled A study on customer satisfaction and

loyalty towards Airtel prepaid service provider in Gurgaon is prepared for the

partial fulfillment of the course: Dissertation in Term VIII (Batch: Aug 2009-

2011) of the Post Graduate Program in Management by me under the guidance of

Prof Jacob Alexander.

I confirm that this dissertation truly represents my work. This work is not a

replication of work done previously by any other person. I also confirm that the

contents of the report and the views contained therein have been discussed and

deliberated with the Faculty Guide.

Signature of the Student :

Name of the Student (in Capital Letters) : GARIMA SINGH

Registration No : 09PG200


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Post Graduate Program in Management

Certificate

This is to certify that Ms. Garima Singh, Regn. No. 09PG200 has completed the

dissertation entitled A study on customer satisfaction and loyalty towards

Airtel prepaid service provider in Gurgaon under my guidance for the partial

fulfillment of the Course: Dissertation in Term VIII of the Post Graduate

Program in Management (Batch: Aug. 2009 2011).

Signature of Faculty Guide:

Name of the Faculty Guide: Prof. Jacob Alexander


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EXECUTIVE SUMMARY

The Indian Mobile telecommunications service sector, in spite of providing high service quality

and striving for Customer satisfaction, is characterized by dynamic Customer activities and

provider switching. By 2012, the prepaid subscriber base will cross 683 million and post-paid

subscriber base will exceed 53 million subscribers. The mobile phones are progressively

becoming cheaper and affordable for people in the country with the increase in disposable

income that improves the quality of life in India. People are showing interest in new technologies

like the option to access internet using a mobile phone. Besides, mobile service providers arealso adding new schemes, offers and technology advancement in their services. This has resulted

in more and more consumers are buying mobile phones and switching between different service

providers. By using the consumption system perspective on mobile services and mobile phone, I

have provided the explanation on the factors of Customer switching. The project aims at

understanding the Marketing strategies at Airtel and its impact on the perception of Airtel

Cellular Services. It has been seen that it is far more costly to win a new customer than it is to

maintain an existing one. And there is no better way to retain a customer than to exceed his

expectations. For this purpose it is essential to know the level of customer satisfaction. So this

study is a one of a kind study where an attempt has been made to know the consumer preferences

and behavior they show towards a particular operators product and services and their level of

satisfaction while dealing with those. The focus of my research was the measurement of

customer satisfaction level for the services provided by Bharti Airtel. The research was done for

the customers of Bharti Airtel. There can be no better opportunity to interact with the customers

of an organization. Finally the results of the research verify the fact that keeping the customer

satisfied is the best strategy not only to retain the existing customers but also to expand the

business to new horizons.


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TABLE OF CONTENTS

S.NO CHAPTER NAME PAGE NO

1. INTRODUCTION 6

2 INDUSTRY PROFILE 14

3. COMPANY PROFILE 29

4 LITERATURE REVIEW 38

5. RESEARCH ANALYSIS 41

6. DATA ANALYSIS 45

7. FINDINGS AND DICUSSIONS 58

8. RECOMMENDATIONS 61

9. CONCLUSION 63

10. REFERENCES 65

11. ANNEXURE 67


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1. INTRODUCTION


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Customer satisfaction, a term frequently used in marketing, is a measure of how products and

services supplied by a company meet or surpass customer expectation. Customer satisfaction is

defined as "the number of customers, or percentage of total customers, whose reported

experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals."

It is seen as a key performance indicator within business and is often part of a Balanced

Scorecard. In a competitive marketplace where businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasingly has become a key element of business

strategy.

Within organizations, customer satisfaction ratings can have powerful effects. They focus

employees on the importance of fulfilling customers expectations. Furthermore, when these

ratings dip, they warn of problems that can affect sales and profitability. These metrics quantify

an important dynamic. When a brand has loyal customers, it gains positive word-of-mouth

marketing, which is both free and highly effective.

Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able

do this, firms need reliable and representative measures of satisfaction.

In researching satisfaction, firms generally ask customers whether their product or service has

met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When

customers have high expectations and the reality falls short, they will be disappointed and will

likely rate their experience as less than satisfying. For this reason, a luxury resort, for example,

might receive a lower satisfaction rating than a budget moteleven though its facilities and

service would be deemed superior in absolute terms.


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Purpose:

Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty.

Customer satisfaction data are among the most frequently collected indicators of market

perceptions. Their principal use is twofold:

1. Within organizations, the collection, analysis and dissemination of these data send a

message about the importance of tending to customers and ensuring that they have a

positive experience with the companys goods and service.

2. Although sales or market share can indicate how well a firm is performing currently,

satisfaction is an indicator of how likely it is that the firms customers will make further

purchases in the future. Much research has focused on the relationship between customer

satisfaction and retention. Studies indicate that the ramifications of satisfaction are most

strongly realized at the extremes. On a five-point scale, individuals who rate their

satisfaction level as 5 are likely to become return customers and might even evangelize

for the firm. (A second important metric related to satisfaction is willingness to

recommend. This metric is defined as "The percentage of surveyed customers who

indicate that they would recommend a brand to friends." When a customer is satisfied

with a product, he or she might recommend it to friends, relatives and colleagues. This

can be a powerful marketing advantage.) Individuals who rate their satisfaction level as

1, by contrast, are unlikely to return. Further, they can hurt the firm by making

negative comments about it to prospective customers. Willingness to recommend is a key

metric relating to customer satisfaction.


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Measuring Customer Satisfaction:

Organizations need to retain existing customers while targeting non-customers. Measuring

customer satisfaction provides an indication of how successful the organization is at providing

products and/or services to the marketplace.

Customer satisfaction is measured at the individual level, but it is almost always reported at an

aggregate level. It can be, and often is, measured along various dimensions. A hotel, for

example, might ask customers to rate their experience with its front desk and check-in service,

with the room, with the amenities in the room, with the restaurants, and so on. Additionally, in a

holistic sense, the hotel might ask about overall satisfaction with your stay.

As research on consumption experiences grows, evidence suggests that consumers purchase

goods and services for a combination of two types of benefits: hedonic and utilitarian. Hedonic

benefits are associated with the sensory and experiential attributes of the product. Utilitarian

benefits of a product are associated with the more instrumental and functional attributes of the

product (Batra and Athola 1990).

Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the

state of satisfaction will vary from person to person and product/service to product/service. The

state of satisfaction depends on a number of both psychological and physical variables which

correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction

can also vary depending on other options the customer may have and other products against

which the customer can compare the organization's products.

Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 provides

the basis for the measurement of customer satisfaction with a service by using the gap between

the customer's expectation of performance and their perceived experience of performance. This

provides the measurer with a satisfaction "gap" which is objective and quantitative in nature.

Work done by Cronin and Taylor propose the "confirmation/disconfirmation" theory of

combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures

(perception and expectation of performance) into a single measurement of performance

according to expectation.


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The usual measures of customer satisfaction involve a survey with a set of statements using

a Likert Technique or scale. The customer is asked to evaluate each statement and in term of

their perception and expectation of performance of the organization being measured. Their

satisfaction is generally measured on a five-point scale.

Customer satisfaction data can also be collected on a 10-point scale.

Regardless of the scale used, the objective is to measure customers perceived satisfaction with

their experience of a firms offerings. It is essential for firms to effectively manage customer

satisfaction. To be able do this, we need accurate measurement of satisfaction.

Good quality measures need to have high satisfaction loadings, good reliability, and low error

variances. In an empirical study comparing commonly used satisfaction measures it was found

that two multi-item semantic differential scales performed best across both hedonic and

utilitarian service consumption contexts. According to studies by Wirtz & Lee (2003), they

identified a six-item 7-point semanticdifferential scale (e.g., Oliver and Swan 1983), which is a

six-item 7-point bipolar scale, that consistently performed best across both hedonic and

utilitarian services. It loaded most highly on satisfaction, had the highest item reliability, and had

by far the lowest error variance across both studies. In the study, the six items asked respondents

evaluation of their most recent experience with ATM services and ice cream restaurant, along

seven points within these six items: please me to displeased me, contented with to disgusted

with, very satisfied with to very dissatisfied with, did a good job for me to did a poor job for

me, wise choice topoor choice and happy with to unhappy with.

A semanticdifferential (4 items) scale (e.g., Eroglu and Machleit 1990), which is a four-item 7-

point bipolar scale, was the second best performing measure, which was again consistent across

both contexts. In the study, respondents were asked to evaluate their experience with both

products, along seven points within these four items: satisfiedto dissatisfied,


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favorable to unfavorable, pleasantto unpleasant and I like it very much toI didnt like it at

all.

The third best scale was single-item percentage measure, a one-item 7-point bipolar scale (e.g.,

Westbrook 1980). Again, the respondents were asked to evaluate their experience on both ATMservices and ice cream restaurants, along seven points within delightedto terrible.

It seems that dependent on a trade-off between length of the questionnaire and quality of

satisfaction measure, these scales seem to be good options for measuring customer satisfaction in

academic and applied studies research alike. All other measures tested consistently performed

worse than the top three measures, and/or their performance varied significantly across the two

service contexts in their study. These results suggest that more careful pretesting would be

prudent should these measures be used.

Finally, all measures captured both affective and cognitive aspects of satisfaction, independent of

their scale anchors. Affective measures capture a consumers attitude (liking/disliking) towards a

product, which can result from any product information or experience. On the other hand,

cognitive element is defined as an appraisal or conclusion on how the products performance

compared against expectations (or exceeded or fell short of expectations), was useful (or not

useful), fit the situation (or did not fit), exceeded the requirements of the situation (or did not

exceed).


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long-term customers tend to be less inclined to switch, and also tend to be less price sensitive

long-term customers may introduce new customers via word of mouth

long-term customers are more likely to purchase add-ons

satisfaction breeds habit, meaning that long-term customers are less likely to switch to

competitors, making it less likely for competitors to enter the market or gain market share

long-term customers are less expensive to service because they are familiar with the process

and require less active familiarization

loyal customers are more consistent in their buying behavior

high levels of repeat customers makes employees jobs easier, which feeds back into improved

customer service

It is also important that marketing departments assess as best they can the profitability of each

customer or business segment, whether in a business-to-consumer (B2C) or business-to-business

(B2B) context. Not all customers are profitable and striving to maintain the loyalty of

unprofitable customers or partners is not always commercially viable. Analyzing customers

relationship costs with revenue can demonstrate this and it is best business practice to terminatethose relationships, which are found not to be profitable.


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INTRODUCTION

The Indian telecommunications industry is one of the fastest growing in the world. The industry

has witnessed consistent growth during the last year on the back of rollout of newer circles by

operators, successful auction of third-generation (3G) and broadband wireless access (BWA)

spectrum, network rollout in semi-rural areas and increased focus on the value added services

(VAS) market.

According to the Telecom Regulatory Authority of India (TRAI), the number of telephone

subscriber base in the country reached 742.12 million as on October 31, 2010, an increase of

2.61 per cent from 723.28 million in September 2010. With this the overall tele-density

(telephones per 100 people) has touched 62.51. The wireless subscriber base has increased to

706.69 million at the end of October 2010 from 687.71 million in September 2010, registering a

growth of 2.76 per cent.

Meanwhile, Indian Global System of Mobile Communication (GSM) telecom operators added

17.45 million new subscribers in November 2010, taking the all-India GSM cellular subscriber

base to 526.18 million, according to the Cellular Operators Association of India (COAI). The

GSM subscriber base stood at 508.72 million at the end of October 2010.

HISTORY

History of Indian Telecommunications started in 1851 when the first operational land lines were

laid by the government near Calcutta (seat of British power). Telephone services were introduced

in India in 1881. In 1883 telephone services were merged with the postal system. Indian Radio

Telegraph Company (IRT) was formed in 1923. After independence in 1947, all the foreign

telecommunication companies were nationalized to form the Posts, Telephone and Telegraph

(PTT), a monopoly run by the government's Ministry of Communications. Telecom sector wasconsidered as a strategic service and the government considered it best to bring under state's

control.

The first wind of reforms in telecommunications sector began to flow in 1980s when the private

sector was allowed in telecommunications equipment manufacturing. In 1985, Department of


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Telecommunications (DOT) was established. It was an exclusive provider of domestic and long-

distance service that would be its own regulator (separate from the postal system). In 1986, two

wholly government-owned companies were created: the Videsh Sanchar Nigam Limited (VSNL)

for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for

service in metropolitan areas. In 1990s, telecommunications sector benefited from the general

opening up of the economy. Also, examples of telecom revolution in many other countries,

which resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a

change process finally resulting in opening up of telecom services sector for the private sector.

National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive roadmap for

the Indian telecommunications sector. In 1997, Telecom Regulatory Authority of India (TRAI)

was created. TRAI was formed to act as a regulator to facilitate the growth of the telecom sector.

New National Telecom Policy was adopted in 1999 and cellular services were also launched in

the same year. Telecommunication sector in India can be divided into two segments: Fixed

Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic services,

national or domestic long distance and international long distance services.

The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic

services. Private sector services are presently available in selective urban areas, and collectively

account for less than 5 per cent of subscriptions. However, private services focus on the

business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN,

closed user group and videoconferencing.

Major services and market potentiality of Telecom industry in India

Telecommunication sector in India is primarily subdivided into two segments, which are Fixed

Service Provider (FSPs) and Cellular Services. Telecom industry in India constitutes some

essential telecom services like telephone, radio, television and Internet. Telecom industry in

India is specifically emphasizing on latest technologies like GSM ( Global System for Mobile

Communications), CDMA(Code Division Multiple Access), PMRTS(Public Mobile Radio


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Trunking Services), Fixed Line and WLL(Wireless Local Loop ). India has a prospering market

specifically in GSM mobile service and the number of subscribers is growing very fast.

Cellular services can be further divided into two categories: Global System for Mobile

Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector is

dominated by Airtel, Vodafone-Hutch, and Idea Cellular, while the CDMA sector is dominated

by Reliance and Tata Indicom. Opening up of international and domestic long distance telephony

services are the major growth drivers for cellular industry. Cellular operators get substantial

revenue from these services, and compensate them for reduction in tariffs on airtime, which

along with rental was the main source of revenue. The reduction in tariffs for airtime, national

long distance, international long distance, and handset prices has driven demand.

Customer Centricity

Telecommunications companies recognize that becoming customer centric is the key to their

long term competitive advantage, as many players offer similar features. Customer centricity

depends on having a single view of the customer data that gives clear insight into the customer

behavior, purchasing patterns, and segmentation. Telecom organizations need access to data that

is accurate, reusable, and productive, so that they can create a holistic, real-time view of theircustomers.

Opportunities

With the arrival of 3G, various operators in India are particular about providing faster and more

robust Internet, better access of data services including e-commerce, social networking, audio-

video conferencing, and many other broadband applications with very high speed. The

deployment of 3G services is also likely to help the emergence of new VAS. The demand for

value added services is likely to surge given that 'Gen Y' are more inclined to use the

smartphones and adopt the VAS services. Moreover, with the implementation of mobile number

portability, the service providers need to focus more on developing VAS as a service

differentiator to retain their existing customers besides attracting the new ones.


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Convergence, Consolidation, and Competition

Today, numerous industry challenges are forcing telecom companies to streamline operations

and increase competitive agility. These challenges include:

Convergence of Services: Telecom companies are bundling broadband, voice, wireless,

video and other emerging technologies together, as well as a variety of value added

content, in an effort to remain competitive, offer seamless services and attract more

customers.

Industry Consolidation: Ongoing mergers and acquisitions have resulted in duplicate

systems and applications across the organization, which have made it difficult to integrate

data, realize cost benefits and capitalize on new revenue opportunities.

Increased Competition and Diminishing Revenue Streams: With new players entering

the market, telecommunications companies are competing strongly and selling products

and services beyond their core offerings and at much cheaper prices. This is resulting in

less revenue from traditional sources, more pressure on profit margins, and an urgency to

find new revenue streams by investing in new technologies such as VoIP or fixed/mobile

convergence.

To combat these challenges and improve operational efficiency, telecom organizations are

investing in new IT applications that support product and service bundles, enhancing or replacing

their existing operational support systems (OSS) and business support systems (BSS),

consolidating redundant systems, implementing automated service provisioning and customer

self service, etc.


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Value-Added Services (VAS) Market

Mobile value added services (VAS) include text or SMS, menu-based services, downloading of

music or ring tones, mobile TV, videos and sophisticated m-commerce applications. As per a

report, India Telecom 2010 released by KPMG in December 2010, currently, the VAS market

is worth US$ 2.45 billion-US$ 2.67 billion, which is around 10 per cent of the total revenue of

the wireless industry. The share of VAS in wireless revenue is likely to increase to 12-13 per

cent by 2011, on the back of increased operator focus on VAS due to continuous fall in voice

tariffs, increasing penetration of feature rich handsets, availability of vernacular content and

increased user adoption of VAS applications.

Major Investments

The booming domestic telecom market has been attracting huge amounts of investment which is

likely to accelerate with the entry of new players and launch of new services. According to the

Department of Industrial Policy and Promotion (DIPP), the telecommunications sector which

includes radio paging, mobile services and basic telephone services attracted foreign direct

investment (FDI) worth US$ 1,062 million during April-October 2010-11. The cumulative flow

of FDI in the sector during April 2000 and October 2010 is US$ 9,993 million.

As per an industry report the telecom industry witnessed merger and acquisition (M&A) deals

worth US$ 16.60 billion during April-December 2010, which represented 28.26 per cent of the

total valuation of the deals across all the sectors during the period analysed. There were 10

inbound, outbound and domestic M&A deals in the telecom sector during the first nine months

of the current fiscal. The biggest M&A deal in the sector was made by telecommunications

service provider Bharti Airtel through the acquisition of Zains African mobile services

operations in 15 countries. The deal involved a transaction of US$ 10.7 billion. In another deal,

Bharti Airtel acquired 100 per cent stake of Telecom Seychelles Ltd for US$ 62 million.

Other major M&A deals included the acquisition of 95 per cent stake in Infotel Broadband for

US$ 1,032.26 million by Reliance Industries and 26 per cent stake of US-based mobile

chipmaker Qualcomms Indian arm for US$ 57.72 million by Indias Tulip Telecom and Global


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Holding. Further, India-based GTL Infrastructure Ltd has bought 17,500 telecom towers of

Aircel Ltd. for US$ 1,702.95 million.

Going Global

In March 2010, Bharti Airtel bought the African operations of Kuwait-based Zain Telecom for

US$ 10.7 billion, driving the Indian player into the league of top ten telecom players globally.

The Reserve Bank of India (RBI) has liberalized the investment norms for Indian telecom

companies by allowing them to invest in international submarine cable consortia through the

automatic route. In April 2010, RBI issued a notification stating As a measure of further

liberalization, it has now been decided to allow Indian companies to participate in a

consortium with other international operators to construct and maintain submarine cable systemson co-ownership basis under the automatic route. The notification further added, Accordingly,

banks may allow remittances by Indian companies for overseas direct investment.

Tele-medicine

With increase in cell phone users to around 700 million and introduction of 3G services soon in

the country, remote treatment and diagnosis of patients through mobile phones would become a

reality in the near future. In fact, a few telecom operators and value-added service developers are

planning to use mobile phones for diagnostic and treatment support, remote disease monitoring,

health awareness and communication.

The Gujarat health department plans to connect all villages through its telemedicine network.

The state government has so far expanded the reach of telemedicine services from 53 villages in

2008 to 453, and hopes to cross 500 villages soon. Jay Narayan Vyas, state health minister, said

First thing we plan to do is to start the 104 service over the phone. People can call up and talk to

paramedics in call centers who can suggest the primary action to be taken in case of any healthemergency. Also, they would be able to suggest generic and over the counter drugs.

3G Services

The Department of Telecom has taken the pioneering decision of launching of 3G services by

BSNL and MTNL and initiation of process for auction of spectrum for 3G services to private


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provide an impetus to the industry. Exports increased from US$ 89.24 million in 2002-03 to US$

3 billion in 2009-10 accounting for 26 per cent of the total equipment produced in the country

and it is expected to increase to US$ 3.33 billion in 2010-11.

Meanwhile, telecom regulator TRAI has released a consultation paper on Encouraging Telecom

Equipment Manufacturing in India seeking views of stakeholders for promoting research and

development (R&D) and manufacturing of telecom equipment in the country. The consultation

paper issued on December 28, 2010 aims at discussing, debating and finalizing measures for

promotion of R&D and creation of intellectual property as well as manufacture of telecom

equipment and electronic components in India.

Further, the Indian mobile handsets market continued to grow in the third quarter 2010 as well to

record a quarter-on-quarter growth of 3.6 per cent to touch 40.08 million units in the quarter,

according to market intelligence firm IDCs India Quarterly Mobile Handsets Tracker. The year

2010 is expected to end with total mobile handset sales of 155.9 million units.

The study further showed that the Finnish handset maker Nokia had the largest share of 31.5 per

cent in terms of units shipped during the third quarter of 2010. Nokia was followed by the

Chinese brand GFive in terms of unit shipments market share and Korean handset manufacturer

Samsung occupied the third slot.

According to a report by technology researcher Gartner Inc, India ranks fourth in manufacturing

telecom equipment in the Asia-Pacific (Apac) region. The country has a 5.7 per cent share of the

regions total telecom equipment production revenue of US$ 180 billion in 2009.

We expect India to move up to the third spot (after China and South Korea) with a share of 8.5

per cent of the total (estimated) Apac telecom equipment production revenue of US$ 277 billion

by 2014, Gartner said. The firm estimates Indias telecom equipment production revenue to

grow at a CAGR of 17.1 per cent to reach US$ 22.6 billion in fiscal 2014. India will be the

fastest growing telecom equipment production market in the Apac region over the next five

years, it predicts.

Rural Telephony


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The rural Telephone connections have gone up from 3.6 million in 1999 to 12.3 million in March

2004 and further to 200.77 million in March 2010. Their share in the total telephones has

constantly increased from around 14 per cent in 2005 to 32.75 per cent at the end of October

2010. The rural subscribers have grown to 243.04 million at the end of October 2010. The

wireless connections have contributed substantially to total rural telephone connections; it stands

at 233.95 million in October 2010. During 2010-11, the growth rate of rural telephones was

21.05 per cent as against 18.69 per cent of urban telephones.

The private sector has contributed to the growth of rural telephones as it provided about 84.27

per cent of rural telephones during October 2010.

The government plans to connect all revenue villages in India either through landline, mobile or

WLL by February 2011. We have already connected about 96 per cent of the revenue villages.

The remaining 25,000 villages will have connectivity by February 2011, stated Mr Sachin Pilot,

Minister of State for Communications and IT.

Further, the Government, under Bharat Nirman II Programme, has envisaged providing

broadband coverage to all 250,000 Gram Panchayats by 2012.

Policy Initiatives

The government plans to formulate a comprehensive National Telecom Policy 2011 including

the recognition of Telecom as infrastructure and as an essential service, encouraging Green

Telecom, steps to accelerate migration from IPv4 to IPv6 at the earliest, release of IPv6

standards by Telecom Engineering Centre for implementation in the country, etc., as per a press

release by the Ministry of Communications & Information Technology.

Further, the government plans to take concrete steps towards finalization of National Broadband

Plan including strategy for implementation and initiation of steps for roll out of optical fiber.

The government has taken many proactive initiatives to facilitate the rapid growth of the Indian

telecom industry.

In the area of telecom equipment manufacturing and provision of IT-enabled services, 100 per

cent FDI is permitted


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No cap on the number of access providers in any service area. In 2008, 122 new Unified Access

Service (UAS) licenses were granted to 17 companies in 22 services areas of the country

Revised subscriber based criteria for allocation of Global System of Mobile Communication

(GSM) and Code Division Multiple Access (CDMA) spectra were issued in January 2008

To provide infrastructure support for mobile services a scheme has been launched to provide

support for setting up and managing 7,436 infrastructure sites spread over 500 districts in 27

states. As on December 31, 2009, about 6,956 towers had been set up under the scheme

According to the Consolidated Foreign Direct Investment (FDI) Policy document, the FDI limit

in telecom services is 74 per cent subject to the following conditions:

This is applicable in case of Basic, Cellular, Unified Access Services, National/ International

Long Distance, V-Sat, Public Mobile Radio Trunked Services (PMRTS), Global Mobile

Personal Communications Services (GMPCS) and other value added Services

Both direct and indirect foreign investment in the licensee company shall be counted for the

purpose of FDI ceiling. Foreign Investment shall include investment by Foreign Institutional

Investors (FIIs), Non-resident Indians (NRIs), Foreign Currency Convertible Bonds (FCCBs),

American Depository Receipts (ADRs), Global Depository Receipts (GDRs) and convertible

preference shares held by foreign entity. In any case, the Indian shareholding will not be less

than 26 per cent

FDI up to 49 per cent is on the automatic route and beyond that on the government route. FDI in

the licensee company/Indian promoters/investment companies including their holding companies

shall require approval of the Foreign Investment Promotion Board (FIPB) if it has a bearing on

the overall ceiling of 74 per cent. While approving the investment proposals, FIPB shall take

note that investment is not coming from countries of concern and/or unfriendly entities

The investment approval by FIPB shall envisage the conditionality that the Company would

adhere to license Agreement

FDI shall be subject to laws of India and not the laws of the foreign country/countries


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The Road Ahead

According to a report published by Gartner Inc in June 2009, the total mobile services revenue in

India is projected to grow at a compound annual growth rate (CAGR) of 12.5 per cent from

2009-2013 to exceed US$ 30 billion. The India mobile subscriber base is set to exceed 771

million connections by 2013, growing at a CAGR of 14.3 per cent in the same period from 452

million in 2009. This growth is poised to continue through the forecast period, and India is

expected to remain the worlds second largest wireless market after China in terms of mobile

connections.

The Indian mobile industry has now moved out of its hyper growth mode, but it will continue to

grow at double-digit rates for next three years as operators focus on rural parts of the country,

said Madhusudan Gupta, senior research analyst at Gartner. Growth will also be triggered by

increased adoption of value-added services, which are relevant to both rural and urban markets.

Mobile market penetration is projected to increase from 38.7 per cent in 2009 to 63.5 per cent in

2013, according to Gartner.

The much-awaited mobile number portability was launched on November 25, 2010 in Haryana

and will be available to more than 700 million subscribers from January 20, 2011 across the

country. As continued efforts of the Government to increase competition in the market and to

provide wider choice to customer, Mobile Number Portability will be an important step.


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MAJOR PLAYERS:

1) Reliance Communications Limited

Established in 2002, Reliance communication is the wholly owned subsidiary of Anil DhirubhaiAmbani Group of Companies providing the telecommunication services.

2) Bharti Airtel Limited

Established in 1995 by Sunil Mittal as a Public Limited Company, Airtel is the largest telecom

service provider in Indian telecom sector. With market capitalization of over Rs. 1,360 billion,

Airtel has 31% of total market share of GSM service providers.

3) BSNL

Founded in 2000, Bharat Sanchar Nigam Ltd. is India's largest public sector

Telecommunications Company providing a wide variety of telecom services. Its service range

covers Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-

VPN, VSAT, VoIP services, IN Services, etc.

4) MTNL

MTNL has successfully converted its telephone exchange network to the digital mode systems.

Having a customer base of more than 6 million, MTNL has showed a growth of over 30% during

financial year 2005-06.

5) Ericsson

Ericsson has a wide network of more than 140 countries and more than 30% market share.

Ericsson's parent company Teleonsktiebolaget L M Ericsson was established in 1876.


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6) Nokia

Nokia is one of the leaders in the Indian market providing telecom equipments. Its product range

starts from a handset of Rs. 2000-3000 and goes to N series, which amounts to more than Rs.

25000-30000.

7) Siemens Communications

Siemens is one of world's largest companies providing electrical engineering products and

services. Siemens covers a wide range of services in the electronic arena, such as energy,

construction, transportation, lighting, information and communication.

8) Idea Cellular Limited

Aditya Birla Group and Tata Group as joint venture, Idea Cellular, is a part of Aditya Birla

Nuvo, a flagship company of the Aditya Birla Group, Idea is growing its network in 11 circles.

9) Tata Teleservices

Tata Teleservices, one of the 96 companies of Tata Group, has its network in 20 circles. It is the

first company to launch CDMA mobile services in India.


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3. COMPANY PROFILE


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Bharti Airtel Limited commonly known as Airtel, is an Indian telecommunications company

that operates in 19 countries across South Asia, Africa and the Channel Islands. It operates a

GSM network in all countries, providing 2G or 3G services depending upon the country of

operation. Airtel is the fifth largest telecom operator in the world with over 207.8 million

subscribers across 19 countries at the end of 2010. It is the largest cellular service provider in

India, with over 152.5 million subscribers at the end of 2010. Airtel is the 3rd largest in-country

mobile operator by subscriber base, behind China Mobile and China Unicom.

Airtel also offers fixed line services and broadband services. It offers its telecom services under

the Airtel brand and is headed by Sunil Bharti Mittal. Bharti Airtel is the first Indian telecom

service provider to achieve this Cisco Gold Certification. To earn Gold Certification, Bharti

Airtel had to meet rigorous standards for networking competency, service, support and customersatisfaction set forth by Cisco. The company also provides land-line telephone services and

broadband Internet access (DSL) in over 96 cities in India. It also acts as a carrier for national

and international long distance communication services. The company has a submarine cable

landing station at Chennai, which connects the submarine cable connecting Chennai and

Singapore.

It is known for being the first mobile phone company in the world to outsource everything except

marketing and sales and finance. Its network (base stations, microwave links, etc.) are

maintained by Ericsson, Nokia Siemens Network and Hawaii, business support by IBM and

transmission towers by another company (Bharti Infratel Ltd. in India).

CORE BUSINESS DIVISIONS

Mobile Services: They offer mobile services using GSM technology on 900MHz and 1800MHz

bands, and are the largest wireless service provider in the country, based on the Number of

customers: Their 85,650,733 mobile customers accounted for a market share of 24.7% ofwireless market, as on December 31, 2008. They offer post-paid, pre-paid, roaming and value

added services through our extensive sales and distribution channel covering 1,069,706 outlets.

Their network is present in 5,057 census towns and 401,882 non-census towns and villages in

India, thus covering approximately 79% of the countrys population.


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Telemedia Services :They provide broadband (DSL) and telephone services (fixed line) in 95

cities with growing focus on new media and entertainment solutions such as DTH and IPTV.

They had 2,619,461 customers as on December 31, 2008 of which 37.9% were subscribing to

broadband/internet services. Their product offerings in this segment include supply and

installation of fixed-line telephones providing local, national and international long distance

voice connectivity and broadband Internet access through DSL. The strategy of their Telemedia

business is to focus on cities with high revenue potential, except for DTH which is an all- India

offering. Airtel digital TV is available to customers through 23,200 retail points in 120 cities

across the country.

Enterprise Services: Enterprise Services provides a broad portfolio of services to large

Enterprise and Carrier customers. This division comprises the Carrier and Corporate business

units. Enterprise Services is regarded as the trusted communications partner to India's leading

organizations, helping them to meet the challenges of growth.

Carriers: Carrier business unit provides long distance wholesale voice and data services to

carrier customers as well as to other business units of Airtel. It also offers virtual calling card

services in the overseas markets. The business unit owns a state of the art national and

international long distance network infrastructure enabling it to provide connectivity services

both within India and connecting India to the world. The national long distance infrastructurecomprises of 90,205 kms of optical fiber, over 1,500 MPLS and SDH POPs and over 1,250 POIs

with the local exchanges, providing a pan India reach. The international infrastructure includes

ownership of the i2i submarine cable system connecting Chennai to Singapore, consortium

ownership of the SMW4 submarine cable system and investment in capacities across a number

of diverse submarine cable systems across transatlantic and transpacific routes. In recent past we

have announced investments in new cable systems such as Asia America Gateway (AAG), India

Middle East and Western Europe (IMEWE), Unity North, EIG (Europe India Gateway) and

Eastern Africa Submarine Cable System (EASCS).

Corporate: This business unit delivers end to end telecom solutions to Indias large corporate. It

serves as the single point of contact for all telecommunication needs for corporate customers in

India by providing full suite of communication services across data, voice and managed services.


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It specializes in providing customized solutions to address unique requirements of different

industry verticals; BFSI, IT, ITeS, Manufacturing and distribution, media, education, telecom,

Government and PSUs and retail among others. Backed by the alliances with leading technology

companies worldwide and state of the art infrastructure, it offers complete range of telecom

solutions. These solutions enable corporate to network their offices within India and across the

globe, provide them infrastructure to run business critical applications and provide them means

to connect with their customers, vendors and employees.

Products of Airtel

SIM (Security Identification Module)

The base product of company, required for new subscriber. Now Airtel provides this simwith 64kb memory.

The cost of sim to company is Rs 40/- with life time option. The sim is provided to the

company at free of cost which the retailer can sale at maximum Rs 100/- .

LAPU:

A SIM is provided to retailers from the company at free of cost for providing easy recharge

service. Only regular retailers have this facility. This SIM has a memory of 128kb and specially

designed for easy recharge purpose. A retailer has minimum 5 easy recharge customers per

month.

Recharge voucher:

In Every 1000 rupees of easy recharge the retailer must have to keep 33% of paper voucher

where the distributor has to keep 35%.

Recharge vouchers are available at different costs from Rs 10/- on words and easy recharges

are available from Rs 30/- on words.

Paper voucher is maximum available up to Rs 120/- where easy recharge is available up to RS

10,000/-.


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Airtel PCO & iBox:

Airtel provide PCO facility in two ways.

1. iBox (Coin Box)

2. PCO (like BSNL land line facility)

Airtel Vision

To provide global telecom services and delight customers

By 2010, we want Airtel to be the most admired brand in India.

Loved by more customers

Targeted by top talent

Benchmarked by more business

Airtel Mission

We will meet the mobile communication needs of our customers through:

Error-free service delivery

Innovate products and services

Cost efficiency

Unified messaging solutions

Values


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We will always put our customers first. We will always trust and respect each other. We will

respect our associates as we respect each other. We will work together through a process of

continuous improvement.


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7 Ps of Airtel

1. PRODUCT

Airtel Pre-paid

Airtel Post-paid

Blackberry Wireless Handheld

Value Added Services (VAS)

The different value added services provided by Airtel are-

Instant Balance Enquiry

24Hr recharge Facility

Caller line identification

Call divert, Call wait & Call Hold

Multimedia messaging service (MMS)

Airtel Live Portal

SMS based Information Service

Hello Tunes & Ring Tones

GPRS

2. PRICE

Customer based pricing strategies.


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Flexible pricing mechanism

3. PLACE

Airtel Customer Care Touch Points

Distributors

Retailers like E.g. Paan shops, grocery stores, chemists, outlet etc.

4. PROMOTION

Large scale print and video advertising.

Big celebrities like SRK and Sachin are roped in to endorse the product.

In 2002 Airtel got its Signature tune from A.R. Rehman.

5. PEOPLE

Total Employees 25616

Dedicate and passionate workforce

One of the best customer support

6. PROCESS

Process for services is very easy and customer can avail it very easily.

121 is the customer support no. which can be dialed from anywhere in India


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7. PHYSICAL EVIDENCE


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3. LITERATURE REVIEW


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Several studies on Customer satisfaction and loyalty are reported in the context of Banking

Sector. A brief overview is presented below.

1. As per ( Dick and Basu , 1994).Customer loyalty is viewed as the strength of the relationship

between an individuals relative attitude and repeat patronage. The relationship is seen as

mediated by social norms and situational factors. Cognitive, affective, and conative

antecedents of relative attitude are identified as contributing to loyalty, along with

motivational, perceptual, and behavioural consequences

2. (Aaker, 1991) stated that in the customer centred business, survival remains to the degree that

customer satisfaction is met. Previous research studies have shows that the repurchase intent

was the main benefit of customer retention. However, some had identified multiple benefits

like repurchase intent, price tolerance, willingness to recommend etc. In reaching retention,

vendors should manage satisfaction and consequences of Customer Loyalty (Naranyandas,

1998). Loyalty too has a pyramid effect that suggests of having hierarchy in loyalty levels

between customer and vendor. Change in loyalty level will manifest itself in the presence of

specific attitude and behaviour

3. Based on a study by (Cooil et al., 2007) Customer loyalty and satisfaction are integral part of

customer retention process. Customer Retention is a primary measure of loyalty. There is a

positive relationship between changes in satisfaction and share of wallet. In particular, the

initial satisfaction level and the conditional percentage of change in satisfaction significantly

correspond to changes in share of wallet. Income and length of the relationship negatively

moderate this relationship. Loyalty and retention although positively moderate with share of

wallet it is necessary to examine the cost of maintaining the particular customer. It is not

guaranteed that every customer retention generates contribution. Therefore the concept of

Customer lifetime Value (CLV) plays an important role.


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4. (Rundel Thiele, 2005)In creating loyalty and thereby CLV, it would be prudent to explore

qualities of loyalty. Two types of primary loyalty qualities had been identified in the previous

researches, i.e. Attitudinal Loyalty and Behavioural Loyalty, out of which attitudinal loyalty

could be the most important dimension for marketers to monitor

5. Rust et al., (1999) discuss the Customer Perceived Quality and Role of Customer

Expectation Distribution. According to them exceeding customer expectation will still be

required if the company seeks to delight customer. In the event of having low expectation of

service quality and meeting it, researchers had found, had raised preference. Given the option

to general customers two equally priced options, the customer will choose the one with

higher expected quality, the research had established. They argued that a company should

always focus on its most loyal customers. Retention point of view, less loyal customers

tendency to defection is grater hence that sector should be defended with force. This research

further suggested greater the experience a customer with a service provider greater the

chances of meeting expectation in perceived value, hence retention.

6. Services Quality is considered as a major determinant in customer retention and building

value relationship (Venetis and Ghauri, 2004). The quality of the service has various

elements namely ; a)Reliability b) Responsiveness c) Assurance d) Empathy e)

Tangibles. as identified by Parasuraman et al.(1985).

7. According to Lovelock and Wright (2001), marketing managers in service organizations

make decisions regarding 8Ps i.e. Product, Place, Promotion and Education, Price and

other user outlays, Process, Productivity and Quality, People and Physical evidence.


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4. RESEARCH ANALYSIS


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PROJECT TITLE:

A study on customer satisfaction and loyalty towards Airtel prepaid service provider in

Gurgaon

RESEARCH PROBLEM

To study the different factors affecting customer satisfaction and loyalty towards Airtel prepaid

service provider because of Mobile Number Portability, because of which consumers have less

switching cost and competitors innovative and attractive services.

OBJECTIVES

To identify the factors affecting the customer satisfaction in Airtel service provider

To identify the factors affecting the customer loyalty in Airtel service provider

HYPOTHESIS

H0: Mobile users do not perceive any difference in the services of different providers

H1: Mobile users do perceive differences in the services of different providers

H0: There is no significant difference in level of customer satisfaction towards different

service providers.

H1: There is a significant difference in level of customer satisfaction towards different

service providers.

H0: Mobile number portability does not impact customer loyalty

H1: Mobile Number portability does impact customer loyalty.


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RESEARCH METHODOLOGY

RESEARCH DESIGN

The study will be descriptive in nature which will include both primary and secondary data

analysis. As a part of a sample study a survey will be conducted on the customers of Gurgaon to

prove or disprove the observed hypothesis and satisfy the mentioned objectives.

SOURCES OF DATA

Primary data will be collected with the help of a Questionnaire survey which will be conducted

on customers of different Gurgaon regions. Secondary data will be collected from various

published sources like websites, books, studies and reports.

SAMPLE DESIGN

A Sample survey will be conducted with respondents from various strata of society to make the

study more accurate & meaningful. Respondents include people from service background,

students, housewives, businessmen etc.

SAMPLE SIZE

A sample size of 150 was selected for comparative analyses of AirTel prepaid service provider

with other service providers in Gurgaon City. The methods used in conducting this Marketing

Research were Personal Interviews aided with Questionnaires.

SAMPLING PROCEDURE


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Primarily samples will be selected through Convenience Sampling technique wherein the

respondents were selected as per the convenience of the researcher.

DATA GATHERING

Research data will be gathered through questionnaires circulated online through emails & social

networking sites and in personal too. The feedback will be consolidated in a excel spreadsheet

for further statistical processing.


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5.DATA ANALYSIS


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For analysis of the collected data the following tools will be used so that we can suggest the most

statistically correct CRM initiatives:

1) Graphs will be used to plot the demographics of the respondents and study the

frequencies.

2) Discriminant analysis will be used to classify the respondents into different groups

based on their demographic profiles. The main purpose of a discriminant function

analysis is to predict group membership based on a linear combination of the interval

variables. The procedure begins with a set of observations where both group membership

and the values of the interval variables are known. The end result of the procedure is a

model that allows prediction of group membership when only the interval variables areknown. A second purpose of discriminant function analysis is an understanding of the

data set, as a careful examination of the prediction model that results from the procedure

can give insight into the relationship between group membership and the variables used

to predict group membership.

3) Friedman Rank Test will be used for knowing the perception of the respondents

towards different prepaid service providers.

4) Independent sample T Test will be used for testing the validity of the research

hypothesis.

5) Factor analysis will be conducted in order to find out the important factors affecting

their choice of a bank as per definition of the American statistical association Factor

analysis is a data reduction technique for identifying the internal structure of a set of

variables. Unlike other techniques like Regression analysis or ANOVA, factor analysis

does not require that predictor and criterion variables be defined. Factor analysis attemptsto identify the relationship between all variables included in the analysis set. Factor

analysis is decomposition in nature in that it identifies the underlying relationships that

exist within a set of variables. Factor analysis creates groups of metric variables (interval

or ratio scaled) called factors. A factor is an underlying quality found to be characteristic

of the original variables. Two types of factors exist. Common factors have effects shared


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in common with more than one observed variable. Unique factors have effects that are

unique to a specific variable.

6) Regression analysis will be used to find out the most effective strategies in that lead to

higher level of Customer Satisfaction. Regression analysis includes any techniques for

modeling and analyzing several variables, when the focus is on the relationship between a

dependent variable and one or more independent variables. More specifically, regression

analysis helps us understand how the typical value of the dependent variable changes

when any one of the independent variables is varied, while the other independent

variables are held fixed.


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Demographic profile of the respondents

1.Age ratio of the respondents:

As per the research, the above graph shows that the majority of the respondents were from the

age group of 19 to 25 years, mostly belonging to the youth group.

0

5

10

15

20

25

30

45

No. of respondents

No. of respondents


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2.Gender profile mix:

From the above graph, we can see that there is almost an equal distribution of Male and Female

among the respondents.

3. Occupation Profile of the respondents:

From the above graph, most of the respondents were either students or were into service

Male

54%

Female

46%

Gender

0

10

20

30

40

Student Service Self employed Housewife Others

Occupation

No. of Respondents


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Consumer behavior and preferences

1.Ranking of preferred service provider:

With the data collected through the survey, a Friedman rank test was conducted to find out the

most proffered network provider. The respondents were asked to rank their favorite service

providers in order of preference and they where accordingly analyzed to find out the most

preferred brands.

In the report the following hypothesis was also considered which will be accepted or rejected

using this test.

H0: Mobile users do not perceive any difference in the services of different providers

Friedman Rank test

Ranks

Mean Rank

Airtel 2.43

Vodafone 2.36

BSNL 2.24

Tata 4.48

Reliance 3.50

The above table shows that Vodafone is the most favored brand followed by BSNL and Airtel.

Test Statisticsa

N 100

Chi-Square 150.211

Df 4

Asymp. Sig. .000

a. Friedman Test


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The above test shows that there is a significant difference among the groups hence showing that

the test is statistically significant.

Hence we can reject the null hypothesis that mobile users do not perceive a difference between

different service providers. Thus we can state that there is a significant difference in the

preferences towards different service providers.

2.Customer satisfaction towards different service providers:

In order to know the customer satisfaction level towards different service providers first be

needed to whether there is a significant amount of difference in the level of customer satisfaction

towards different service providers. For this we tested the following Hypothesis using a One

sample T-test.

Ho: There is no significant difference in level of customer satisfaction towards different

service providers

H1: There is significant difference in level of customer satisfaction towards different

service providers

One-Sample Statistics:

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

Airtel 100 2.2800 .86550 .08655

Vodafone 100 2.9400 1.15312 .11531

BSNL 100 2.6800 1.29396 .12940

TataDocomo 100 3.1700 1.12864 .11286

Reliance 100 2.9900 1.15027 .11503


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One-Sample Test

Test Value = 0

95% Confidence Interval of the

Difference

t df Sig. (2-tailed) Mean Difference Lower Upper

Airtel 26.343 99 .000 2.28000 2.1083 2.4517

Vodafone 25.496 99 .000 2.94000 2.7112 3.1688

BSNL 20.712 99 .000 2.68000 2.4232 2.9368

TataDocomo 28.087 99 .000 3.17000 2.9461 3.3939

Reliance 25.994 99 .000 2.99000 2.7618 3.2182

The significance value is 0.00 hence there is a significant difference between the groups at

confidence level 95% (The significance is less than 0.05)

Hence we can reject the null Hypothesis and accept the alternate hypothesis that there is a

difference in the level of consumer satisfaction towards different service providers.

3. Weighted Average Analysis:

As we know that there is a difference in the level of customer satisfaction towards differentservice providers we can calculate the weighted average score and plot a graph to know which

brand has a higher level of customer satisfaction.


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From the above Graph we can observe that Vodafone enjoys the highest level of customer satisfaction

followed by BSNL and Airtel.

4.Factors affecting the choice of a particular service provider:Form the data collected from the respondent a Factor analysis was conducted to find out the most

important factors affecting the choice of a particular service provider.

From the above table we can observe the KMO Score which shows the relevance of the data for

the test. The score of 0.587 shows that though the data is not excellent but it can be considered as

it is more than 0.50.

0

50

100

150

200

250

300

350

400

Airtel Vodafone BSNL Tata

Docomo

Reliance

Wieghted Average Score

Score

KMO and Bartlett's Testa

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .587

Bartlett's Test of Sphericity Approx. Chi-Square 67.165

df 15

Sig. .000

a. Based on correlations


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Total Variance Explained

Compon

ent

Initial Eigenvalues Rotation Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative %

1 1.954 32.561 32.561 1.865 31.083 31.083

2 1.273 21.212 53.772 1.361 22.689 53.772

3 .905 15.076 68.848

4 .844 14.061 82.909

5 .540 9.008 91.917

6 .485 8.083 100.000

Extraction Method: Principal Component Analysis.

From the above table it can be observed that two components explain the variance up to 53% the

rest is unexplained by the given factors.

Rotated Component Matrixa

Component

1 2

Advertisement -.457 .289

BrandName .145 .822

Network .610 -.085

Tarrifplan .835 .072

CustomerService -.273 .767

Familynfriends -.701 .021

From the rotated component matrix by the method of factor loading we can see that the

following are the major factors affecting the choice of the service provider by the customers.

Factor 1: Tariff plan & family and friends

Factor 2: Brand name & Customer service


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5.Factors affecting the customer satisfaction in Airtel users:

A regression analysis was conducted to find out the significant factors affecting the level of

customer satisfaction among Airtel users.

Regression Analysis

Model Summary

Model R R Square Adjusted R Square

Std. Error of the

Estimate

1 .931a .868 .836 .55277

a. Predictors: (Constant), Call Rates, New Schems & Offers, Network, Valueadded services, SMS Rates, Roaming , Customers Service, Recharge outlets

The above R Square Value we can infer that the independent variables explain the changes in the

dependent variable upto 86.8% which is a good figure.

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.

95.0% Confidence Interval for

B Std. Error Beta Lower Bound Upper Boun

1(Constant) -2.826 1.391 -2.033 .050 -5.652 .0

Network .271 .111 .180 2.446 .020 .046 .4

Customers Service -.019 .136 -.013 -.140 .889 -.295 .2

New Schems & Offers .846 .087 .805 9.670 .000 .668 1.0

Value added services .481 .167 .248 2.881 .007 .142 .8

Roaming .031 .105 .023 .292 .772 -.183 .2

Recharge outlets .008 .142 .005 .054 .957 -.281 .2

SMS Rates .130 .117 .092 1.115 .273 -.107 .3

Call Rates .122 .170 .072 .716 .479 -.224 .4

a. Dependent Variable: Customer Satisfaction


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The above table shows that Network, New Schemes & offers and Customer service are the

significant factors affecting customer satisfaction among Airtel users as their significance value

is below 0.05 at 95% confidence interval.

6.Factors affecting customer loyalty among Airtel users

A regression analysis was conducted to find out the significant factors affecting customer

loyalty. The test was conducted by taking the level of customer loyalty as the dependent variable.

In the study the following Hypothesis was considered which will also be tested.

H0: Mobile number portability does not impact customer loyalty

H1: Mobile Number portability does impact customer loyalty.

Regression Analysis

Model Summary

Model R R Square Adjusted R Square

Std. Error of the

Estimate

1 .921a .849 .828 .55922

a. Predictors: (Constant), Mobile Number Portability, Network Coverage,

Switching Cost, Customer Service, Tariff Plan

The above R Square Value we can infer that the independent variables explain the changes in thedependent variable upto 84.9% which is a good level of explanation.


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Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig.

95.0% Confidence Interval fo

B

B Std. Error Beta Lower Bound Upper Boun

1(Constant) -.104 .859 -.121 .904 -1.845 1.63

Network Coverage .409 .133 .296 3.077 .004 .140 .67

Tariff Plan .352 .140 .273 2.508 .017 .068 .63

Customer Service .539 .132 .435 4.082 .000 .272 .80

Switching Cost -.175 .127 -.091 -1.380 .176 -.431 .08

Mobile Number Portability .019 .134 .010 .138 .891 -.254 .29

a. Dependent Variable: Customer Loyalty

From the above table we can observe that Network coverage, Tariff Plans and Customer Service

are the significant factors affecting customer loyalty towards Airtel.

From the above test we can also accept the null hypothesis that mobile no. portability does not

impact the level of customer loyalty as its the significance value is 0.891 which is more than 0.05

in 95% confidence level hence it is not a significant variable


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6. FINDINGS AND

DISCUSSIONS


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We can summarize the findings from the above analysis in the following points:

Most of the respondents for the survey were within the age group of 19-25 though the

there were respondents from all the age groups hence ensuring a proper mix of opinion.

There was an equal composition of gender among the respondents hence ensuring that the

research was free from any gender bias.

The occupational profile of the respondents show that most of the respondents were

either students or into service.

From the Friedman rank test we can observe that Vodafone is the most preferred brand

closely followed by BSNL and Airtel. The test also proved the hypothesis that Mobile

users do perceive differences in the services of different providers.

The weighted Average analysis also shows that the overall satisfaction level towards the

services of Vodafone, BSNL and Airtel are higher as compared to other service

providers.

A One sample T-test was conducted to find out that there is significant difference in level

of customer satisfaction towards different service providers.

With the help of a factor analysis we were able to find out the major factors affecting the

choice of a particular service provider as follows:

o Factor 1: Tariff plan & family and friends

o Factor 2: Brand name & Customer service

With a regression analysis we were able to identify the major Factors affecting the

customer satisfaction in Airtel users as:

o Network

o New Schemes & offers

o Customer service


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With a regression analysis we were able to identify the major factors affecting customer

loyalty among Airtel users as:

o Network coverage

o Tariff Plans

o Customer Service


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7. RECOMMENDATIONS


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To catalyze the sales of Airtel Pre-paid services and capture maximum market share,

Airtel should focus on the following points:

From the study, it is abundantly clear that Call rates lead the consumers to switch the

service provider. So, mobile service providers need to satisfy the Consumer with

minimum call rates.

Mobile service providers should invest more on improving their network coverage in

order to retain their consumers and dominate the market in future too.

Mobile service providers have to provide more offers for family and friends. Enticing

offers still hold a major sway, to decrease customer diversification and to maintain the

brand name of the company.

Mobile service provider should satisfy their current consumers by providing them

innovative offers which are attractive for the customers, because high customer

demand will help in capturing large market share.

Mobile service provider should accept valid feedbacks from consumers regularly and

make sure that they satisfy the consumers.


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8. CONCLUSION


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9. REFERENCES


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Websites

www. marketresearchworld.net

www.airtel.in

www.rcom.co.in

www.oppapers.com

www.docstoc.com

www.tatadocomo.com

www.airtelworld.com

Research Papers

Developing Motivational and Coaching Skills in Telecom Companies, Sayed Kadhem[2009].

A Study on Consumer Switching Behavior in Cellular Service Provider, M.Sathish,

Far East Journal of Psychology [2011].

Books

Marketing Management, Philip Kotler, Kevin lane Keller, Abraham Koshy &

Mithileshwar Jha, 13th edition.

Consumers are looking for good relationship: Consumer service initiatives should mean

business, Allossery, Patrick (2000).

Service Marketing, Christopher Lovelock and Jochen Wirtz


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QUESTIONNAIRE

Customer Satisfaction Survey for Airtel

1 .Name

2. Age

3. Gender

Male

Female

4. Occupation

Student

Service

Self employed

Housewife

Others

5. Are you a mobile user?

YES

NO

6. Rank the following mobile service providers based on your order of prefferencePlease assign only aunique rank against each service provider

1 2 3 4 5

Airtel

Vodafone

BSNL

TataDocomo


69/71

69

1 2 3 4 5

Reliance

7. Which Mobile service provider are you currently using?

Airtel

BSNL

Vodafone

Idea

Spice

Reliance

Docomo

Others

8. What are the important factors affecting your choice of a particular service provider?

1.VeryImportant

2. 3 4.5.Least

Important

Advertisements

Brand Name

Network

Tariff Plan

CustomerService

Family & friends

9. Mark the level of satisfaction towards your current service provider?

1 2 3 4 5

Highly Satisfied Highly Dissatisfied

For Airtel Users Only


70/71


71/71

Other:

14. If Yes, What are the factors that encourage you to discontinue with Airtel?

Poor Network Coverage

Better Tariff plans by other service providers

Poor Customer service

Mobile Number portability

Other:

Documents

Garima Singh