Exploration Of Value Phenomenon In Service Industry

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Market Research Project on Exploration of Value Phenomena in the Indian Telecom Industry

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Exploration Of Value Phenomenon In Service Industry

  1. 1. Exploration of Value Phenomenon in Service Industry:A Case of Telecom Sector<br />By Group 10 & 3<br />
  2. 2. The Indian telecom industry <br />The Indian telecom network: the third largest in the world and the second largest among the emerging economies of Asia. <br />It is the second largest in terms of number of wireless connections. <br />Huge subscriber base with 525 million connections.<br />There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country.<br />
  3. 3. Major players...<br />There are three types of players in telecom services:<br />State owned companies (BSNL and MTNL)<br />Private Indian owned companies (Reliance Infocomm, TataTeleservices,)<br />Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications)<br />
  4. 4. Objectives of our research..<br />To understand the meaning of value, and how it is perceived by the customers of telecom services.<br />To analyse the differences between the past and present perceptions of consumers as far as the concept of value is concerned.<br /> <br />To compare the customer’s present satisfaction level with the help of various variables.<br /> <br />To perform a comparative analysis of all major telecom players in India.<br /> <br />To perform a gap analysis between the perception of telecom service managers and customers expectation with respect to value creation.<br />
  5. 5. Hypothesis for research...<br />H01 = There is no significant difference between the past and the present perceptions of the consumers regarding value from telecom services<br />H02 = There is no significant difference in the perception of telecom service managers and<br /> customers with respect to value creation<br />H03= There is no linear relation between the dependent variable i.e. customer satisfaction and independent variables<br />
  6. 6. Test variables...<br />Network<br />Call Rates<br />SMS Rates<br />Roaming Charges<br />Voice Quality<br />Easy Availability<br />Brand Image<br />Flexible Plans<br />Customer care services<br />3G facilities<br />Internet services<br />VAS<br />CDMA/GSM<br />
  7. 7. Consumer’s Perceptions in the Past<br />Reliability test: (Cronbach Alpha)<br />Cronbach Alpha = 0.75<br />Call rates and SMS rates are two variables for which the Cronbach alpha value increases if any of these item is deleted<br />
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  9. 9. What was important in the past...<br />
  10. 10. Consumer’s Perceptions in the Present...<br /><ul><li>Reliability test: (Cronbach Alpha)
  11. 11. Cronbach Alpha = 0.783
  12. 12. CDMA/GSM Preference is the variable for which the Cronbach alpha value increases if it is deleted </li></li></ul><li>
  13. 13. What is important in the present...<br />
  14. 14. Results of paired sample t-test for difference in customer perception of value in the past and in the present scenario:<br />Network/Connectivity<br />
  15. 15. Brand<br />Call rates<br />SMS Rates<br />Flexibility of plans<br />
  16. 16. Factor Analysis -past perception<br />KMO and Bartlett's Test <br />Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .711 <br />Bartlett's Test of Sphericity Approx. Chi-Square 395.961 <br />df 78 <br /> Sig. .000 <br />
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  20. 20. Regression Analysis...<br />To determine whether the independent variables (various attributes) explain a significant variation in the dependent variable overall satisfaction level.<br />To determine how much of the variation in the dependent variable can be explained by the independent variables<br />To determine the mathematical equation relating the independent and dependent variables<br />
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  23. 23. Results...<br />Network, call rates, SMS rates and schemes offered are the variables which have the most significant correlation with overall satisfaction<br />The R-Square value 0.670 depicts that the 67% proportion of variation in the dependent variable is explained by the independent variables.<br />Cust_sat = -0.487 + 0.451*(Network) + 0.266*(Call_Rates) + 0.182*(SMS_Rates) + <br />0.228*(Schemes_Offered) + 0.654<br />
  24. 24. Regression analysis between customers’ satisfaction level and the time duration of using telecom service (Mobile services):<br />The correlation between the satisfaction level and the service use period is -0.088<br />The ANOVA test is also significant which shows that the null hypothesis is not rejected, which means that the association between the two variables is not significant.<br />
  25. 25. A comparative analysis of the major service providers...<br />
  26. 26. Gap Analysis of the Managers’ and Customers’ perception...<br />There exists a significant difference of 57.1% between the managers’ and customers’ perception on network connectivity.<br />There exists a significant difference of 51.0% between the managers’ and customers’ perception on call rates.<br />There exists a significant difference of 76.7% between the managers’ and customers’ perception on SMS rates.<br />
  27. 27. There is no significant difference in the managers’ and customers’ perception on Roaming.<br />There is no significant difference in the managers’ and customers’ perception on Ease of availability.<br />There exists a significant difference of 131.2% between the managers’ and customers’ perception on value added services.<br />
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  30. 30. Conclusion of the study...<br />Customers are giving importance to network, call rates and sms rates with the call rates being given the highest priority.<br /> Schemes and offers are going to affect the future telecom industry. <br />Though brand image is important but voice quality will be given preference over the brand image.<br /> But in the past, connectivity was not as important as the call rates.<br />
  31. 31. Roaming services were not important as mobile telephony wasn’t a wide phenomenon. However, it is gaining a lot of importance now-a-days.<br />Customer care services and internet services were important factors in the past and continue to be in the present.<br />3G technology is yet to make a mark.<br />Most of the customers that we surveyed weren’t influenced by services like the ringtones, caller tunes and it was found that these were unimportant.<br />
  32. 32. THANK YOU!!!<br />

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