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A project report on consumer buying behaviour with a focus on perception towards internet data card with special reference to vodafone
 

A project report on consumer buying behaviour with a focus on perception towards internet data card with special reference to vodafone

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A project report on consumer buying behaviour with a focus on perception towards internet data card with special reference to vodafone

A project report on consumer buying behaviour with a focus on perception towards internet data card with special reference to vodafone

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  • Full Name Full Name Comment goes here.
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  • Please contact us through www.projectsformba.blogspot.com/p/feedback.html so that one of our team mate will get back to you at the earliest. Thank You!
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  • I am doing MBA from NMIMS and I am doing a similar research on 'buying behavior for internet dongle'
    Can u please mail me your report for better reference..
    E-mail id: akashmodi.nmims@gmail.com

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  • am doing MBA final semester project on the similar topic based on food industry can u mail me ur report for my better reference ... my mail id is hitesh08mca03@gmail.com thank u!!
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  • i am doing MBA my FRP topic is Tablet pc's study of consumer perception buying behavior please mail me idea of this project in monikayadav682@gmail.com.......
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    A project report on consumer buying behaviour with a focus on perception towards internet data card with special reference to vodafone A project report on consumer buying behaviour with a focus on perception towards internet data card with special reference to vodafone Document Transcript

    • WEST BENGAL UNIVERSITY OF TECHNOLOGY A SUMMER TRAINING REPORT ON CONSUMER BUYING BEHAVIOUR WITH A FOCUS ON PERCEPTION TOWARDS INTERNET DATA CARD WITH SPECIAL REFERENCE TO VODAFONE FROM, (20th June,2009-5thAugust, 2009) SUBMITTED BY WBUT Regn no. WBUT Roll no. Major: Marketing Management Minor: Human Resource Management MANAGEMENT INSTITUTE OF DURGAPUR RAJBANDH 1
    • ACKNOWLEDGEMENTSFirst of all I would like to thank the Management at Vodafone for giving me theopportunity to do my two month project training in their esteemed organization. Iam highly obliged to the marketing manager at vodafone. I would like to expressmy gratitude to area Sales Manager, who has provided me with guidance,inspiration, perspective and stimulating discussion, throughout the writing of thisreport. His constant review and excellent suggestions throughout the project arehighly commendable. A study like this cannot be completed without help of otherpersons. And therefore I would like to express my gratitude to provide me crucialguidance in the analytical part of this Project. My heartfelt thanks goes to Mr.…………. (sales manager) and to all the executives who helped me gainknowledge about the actual working and the processes involved in variousdepartments. I would like to express my heartfelt thanks to the director of MID,Dr. ……………. & also to our principal, …………….. I would like to express mygratitude towards our H.O.D. …………. who had helped me lot in preparing thisproject report. I would like to forward my gratitude to my internal guide Mr. ……..………… & to all the marketing faculties of MID, …………. . Finally, I wouldlike to convey my gratitude to my friends & family members & other facultymembers who always endured me and stood with me and without whom I couldnot have envisaged the completion of my project. 2
    • Students’ DeclarationI, …………………. hereby declare that the Project Work titled Consumer BuyingBehavior with a focus on perception towards internet data card is the original workdone by me and submitted to the MID, …………., Durgapur in partial fulfillmentof requirements for the award of Masters in Business Administration with majorSubject as Marketing Management and Minor subject as Human ResourceManagement is a record of original work done by me under the supervision of………………………… (MID faculty).Date: Signature of the student 3
    • EXECUTIVE SUMMARYGrowth on the Data Cards. Especially happen when business travelers,academicians as well as other professionals need to access emails and corporateapplications as well as personal requirements during urgent trips and travels. Now,what kind of a company enters an industry with competitors already entrenched?Which ones actually succeed? The answer to both the questions is VODAFONEESSAR, which is now known as VODAFONE. It is a confident and smartcompany that was able to enter a saturated and highly competitive industry, andemerge at the top. The project aims to identify the problems faced by Vodafone inthe internet data card market. Customers often feel that service providers do notdeliver what they promise. They feel players should present the terms andconditions and tariff plans/schemes in clear terms. The research we conducted alsosupports this fact. We have suggested a marketing plan for Vodafone data cardalong with other suggestions for VODAFONE to face the competition in the nearfuture and the long run. 4
    • 5
    • Contents Pg. no.1. About Vodafone……………………………………………………..2. Introduction of project………………………………………………3. Litrature Survey……………………………………………………….. Chapter 1: Experts views on Indian Telecom Sector…………………. Chapter 2: An overview of internet and wireless connectivity……….. Chapter 3: Telecom Sector-An Outlook………………………………. 3.1 Industry Analysis…………………………………………… 3.2 About Internet Data Cards…………………………………. 3.2.1 Vodafone……………………………................ 3.2.2 Bharat Sanchar Nigam Limited (BSNL)………. 3.2.3 Tata Indicom…………………………………… 3.2.4 Reliance Communication……………………….. 3.2.5 Airtel……………………………………………. Chapter 4: Consumer behavior towards Internet data Card…………….4. Research Methodology……………………………………………….....5. Data Analysis…………………………………………………………… Chapter 1: Brand Recall………………………………………………… Chapter 2: Development of Hypothesis and Testing……………………. Chapter 3: Graphs and Charts……………………………………………6. Recommendation and Conclusion……………………………………….7. Annexure…………………………………………………………………8. Bibliography……………………………………………………………… 6
    • 7
    • About VodafoneVodafone Essar in India is a subsidiary of Vodafone Group Plc and commencedoperations in 1994 when its predecessor Hutchison Telecom acquired the cellularlicense for Mumbai. Vodafone Essar now has operations in 22 circles with over65.92 million customers. The company is a joint venture of Essar CommunicationHoldings Ltd and the UK-based Vodafone Group. Vodafone has partnered with theEssar Group as their principal joint venture partner for the Indian market. They arein the business of cellular telephony. Over the years, Vodafone Essar, under theHutch brand, has been named the ‘Most Respected Telecom Company’, the ‘BestMobile Service in the country’ and the ‘Most Creative and Most EffectiveAdvertiser of the Year’. Vodafone is the world’s leading international mobilecommunications company. It currently has equity interests in 27 countries across 5continents and 40 partner networks with over 303 million proportionate customersworldwide. Vodafone has partnered with the Essar Group as its principal jointventure partner for the Indian market. Essar Global Limited (EGL) is a diversifiedbusiness group spanning the manufacturing and services sectors of Steel, Energy,Power, Communications, Shipping & Logistics, and Projects. The group hasoperations and investments in India, Canada, USA, Africa, the Middle East, theCaribbean and South East Asia and employs 30,000 people worldwide. VodafoneEssar Ltd provides services like 3G, which are based on 1800 MHz and 900MhzGSM digital technology. They offers voice and data services. In addition, theyoffers postpaid connections activation, prepaid SIM cards and recharge couponssale, service activation/deactivation, postpaid tariff plan change, customer queryresolution, prepaid/postpaid SIM card replacement and up gradation, mobilenumber change, and information on and subscription of value added servicesthrough stores. The Essar Group is Vodafone’s principle partner in India. The 8
    • Essar Group is a diversified business corporation with a balaned portfolio of assetsin manufacturing and service sectors of Steel, Energy, Power, Communications,Shipping prots & Logistics and Projects.About Hutchison-Essar Vodafone NegotiationsThe name Vodafone comes from “Voice data fone” HQ in Berkshire, England, isthe world’s leading international mobile communications group with 29Millionrevenues 27 countries, 303 million customers, 40 partner networks. Advancedmobile telecommunications services provided by vodafone are 3G, data relatedservices. The Joint venture - 67% stake by HTIL and 33% owned by Essar.HTIL –Li Ka-Shing , Essar – Ruia Family.HTIL is HK Based Telecom Company andEssar is India based diversified corporation 4th largest cellular operator in India74.08 million customer.Vodafone’s Objective • To venture into the world’s most lucrative cellular market • Strengthen its operation worldwide • To obtain the majority stake of Hutchison 9
    • Introduction of ProjectThe objective of the study is to understand the consumer’s pre, post behavior,during perception of data card and consumer buying behavior and attitude forVodafone data card. To understand the former part, the researcher created aquestionnaire and conducted a survey. The researcher analyzed the questionnaireand the survey to create an extensive questionnaire understanding the buyingbehavior of consumers of Vodafone data card and other brands. The researcher hadan analysis done on the 600 respondents from Durgapur, Asansol & Burdwan toidentify how much of buying intension is due to attributes and how much due toinfluence by referrals.The research analysis had revealed that the consumers are satisfied with the brandVodafone data card and its attributes. However, Vodafone has not performed wellwith the customers who are considerably concerned about internet connection withits cost and tariff plans. This following detailed analysis is presented in the projectreport. 10
    • LITERATURE SURVEY 11
    • Chapter 1: Experts views on Indian Telecom SectorGirija (1998), in its article “Socioeconomic Implications of TelecommunicationsLiberalization: India in the International Context” says that Telecommunicationsrestructuring have evolved differently in Asia and Latin America. While Asiangovernments have moved, cautiously in bringing changes to the sector, LatinAmerican Nations have implemented radical ownership and markettransformations. The Indian telecommunications reform falls in between these twogeneral regional trends. The choice of a high component of competition, increasedprivate participation, and no privatization of the national carrier set conditions thatwill trigger unique socioeconomic effects. This article identifies and highlights thelikely implications of the Indian reform on key economic and social issues, such asthe cost of services, cross-subsidies, network interconnection, private investments,universal services, employment, and the possible rise of an information-intensiveeconomy. It does so by comparing and contrasting the Indian experience withdominant reform strategies elsewhere in the developing world.Chowdary (1999) discusses how Telecom reform, or demonopolization, in Indiahas been bungled. Shaped by legislation dating back to the colonial era and postSecond World War socialist policies, by the mid-1980s India realized that its poortelecommunications infrastructure and service needed reform. At the heart of theproblem lay the monopoly by the government’s Department ofTelecommunications (DOT) in equipment, networks and services. The NationalTelecom Policy 1994 spelt out decent objectives for reform but tragically itsimplementation was entrusted to the DOT. This created an untenable situation inwhich the DOT became policymaker, licenser, regulator, operator and also 12
    • arbitrator in disputes between itself and licensed competitors. He discusses thequestion: ‘Why did India get it so wrong? and What India should do now?Anand (1999), in his article named “Indias economic policy reforms” says thatIndia was embarked on economic reforms in July 1991, in the wake of a balance ofpayments crisis. In this article, an attempt is made to review two books and a set ofWorld Bank reports concerning the progress of these reforms. Issues concerningeconomic policy, impact of the reforms on poverty, sectoral issues relating toagriculture, industry and infrastructure are briefly discussed. As reforms enter amore difficult phase, several challenges remain. Some of this fall under the“economic agenda of measures needed to maintain economic growth; others canbe termed the “development agenda - of improving human development. Progresswith regard to the former is not sufficient to produce results concerning the latter.Bhattacharya (2000) constructs a vision of the Indian telecommunication sectorfor the year 2020. The paper aims at isolating agents of change based oninternational experiences and situates India in the development continuum. Theagents of change have been broadly categorized into economic structure,competition policy and technology.Das (2000), in her paper described the Liberalization of the Indiantelecommunications services which started in mid nineties with no change in theexisting public monopoly structure, entirely controlled by Department ofTelecommunications (DoT). In order to evaluate any proposed industry structure, itis essential to analyze the production technology of DoT so as to determine therationale of liberalization and sustainability of competition. Accordingly, theresearcher estimates a frontier multi-product cost function for DoT, where the cost 13
    • function has been duly modified to account for the production technology of apublic monopoly. The study finds that although DoT displays high allocationinefficiency, it is still a natural monopoly with very high degree of sub additivelyof cost of production. This study implies that the choice of any reform policyshould consider the trade-off between the loss of scale and scope economies andcost saving from the reduction in inefficiency of the incumbent monopoly in theevent of competition.Rao (2000), in her article named “Internet service providers in India”, provides abroad view of the role of an Internet service provider (ISP) and the factors to beconsidered before entering the ISP market. Describes the Internet/ISP scene withinIndia and discusses the configuration of local, regional and national level ISPs, andthe supporting infrastructure. She also identifies the various success factors. Theglobal Internet scenario is discussed regarding the phases of the Internet in India,i.e. pre and post commercialization. The main players are described: ERNET,NICNET, STPI, VSNL,MTNL, Satyam Infoway and Bharti-BT. The financial andlegal implications are highlighted in the Indian context. Many companies enteredthe nascent ISP business in India due to deregulation. Building local content,foreknowledge of new Internet technologies, connecting issues, competitiveness,etc. would help in their sustainability. She concludes that though many companiesentered the nascent ISP businesses in India due to deregulation, many of them areunlikely to survive in the longer term.Vrmani (2000) estimates the contribution of telecommunication (or telecom)services to aggregate economic growth in India. Estimated contribution isdistinguished between public and private sectors to highlight the impact of telecomprivatization on economic growth. Knowledge of policy determinants of demand 14
    • of telecom services is shown to be essential to enhance growth contribution oftelecom services. Using a recent sample survey data from Karnataka State in SouthIndia, price and income determinants of demand for telecom services are estimatedby capacity of telephone exchanges Estimation results offer evidence forsignificant negative own price elasticity and positive income elasticity of demandfor telecom services.Narinder (2004), in his article “Enhancing Developmental Opportunities byPromoting ICT Use: Vision for Rural India” talks about the foremost benefits ofInformation and Communication Technologies (ICTs) in developing countries thatcan be helpful in improving governance including public safety and eradication ofilliteracy. The benefits of ICTs have not reached the masses in India due to lack ofICT infrastructure, particularly in rural areas, where two-third of the population ofthe country lives. Even in cities and suburban areas, use of ICTs is not popular dueto lack of awareness to its use,computer illiteracy, and absence of practicalapplications. India is the largest country in South Asia, with a population of overone billion people and its telecom sector is presently experiencing fast growthphases. However telephony penetration in villages is less than two percent of therural population and about 15 percent of the villages are still without any telephonyservice. Universal access to ICTs in rural areas has been planned and is beingimplemented through Public Tele Info Centers having voice data and video,asmajority of villagers in India cannot afford a separate home connection. Illiteracyin rural areas is as high as 40 percent and in some tribal belts hardly about 20percent people are literate. There are 35 million children in age group of 6–11years, who are out of school and one out of four drops out during primary classes.Education and training, therefore, must be given the top priority if advantages ofICTs are to be harnessed. Indian economy is agriculture based and employs 15
    • maximum workforce. Improvement in agriculture productivity can help inreducing rural poverty. Adoption of ICT in agriculture will play an increasinglyimportant role in crop production and natural resource management. The othercritical factor is technological challenges for universal access to ICTs to bringdown the network access cost.Nikam, Ganesh, Tamizhchelvan (2004), analyses that changing face of India inbridging the digital device. He reiterated - “India lives in villages” said the Fatherof the Nation, Mahatma Gandhi. With 1,000 million people and 180 millionhouseholds, India is one of the biggest growing economies in the world. With theadvent of the Information, Communication and Technology (ICT) revolution, Indiaand its villages are slowly but steadily getting connected to the cities of the nationand the world beyond. Owing to the late Rajiv Gandhi, India is now a powerfulknowledge economy, and though India may have been slow to start, it certainly hascaught up with the West and is ahead in important respects. The Government, thecorporate sector, NGOs and educational institutions have supported ruraldevelopment by encouraging digital libraries, e-business, e-learning and e-governance. The aim of this paper is to touch upon and highlight some of the areaswhere, by using ICT, the masses have been reached in this way. A follow-up paperwill outline collections of significant cultural material which, once national ITstrategies are fully achieved, could form part of a digitally preserved nationalheritage collection.Dey (2004), in her article talks about the discussions between the FederalCommunications Commission (FCC) and communications policy makers andregulators in other countries and how they have gleaned several clusters of issueswhere further research would directly benefit them. Recently, there have been two 16
    • notable shifts. First, as the acceptance of the competition model over the monopolymodel for telecommunications markets takes deep effect in regulators all over theworld, questions regarding process and procedure for regulation are becoming evermore urgent. This paper discusses current questions regarding decision making,enforcement, and understanding consumer issues that arise often in the FCCsdiscussions with other regulators. Second, technological change is potentiallyshifting market definitions. In the FCCs discussion with other regulators over thelast two years, the overlap of wireline telecom, wireless telecom and cabletelevision has become more pronounced.Singh (2005), in his article “The role of technology in the emergence of theinformation society in India” describes the role that information andcommunication technologies are playing for Indian society to educate themformally or informally which is ultimately helping India to emerge as aninformation society. Though India has a huge population, the illiteracy rate is alsohuge in this country. The paper has taken an approach to find the historicalsituation and present the prevailing scenario as well as the change that are takingplace with the application of ICT to the advantage of the society in different areasincluding daily life. India is making all out efforts to be counted among thedeveloped nations of the world. The article also describes the considerableattention India is taking for application of technology, development ofinfrastructure and human resource for meeting national needs. Basically India isbuilding an information society. Technology has helped society to cut across thetraditional boundaries for getting converted into an emerging information society.The study concludes that The Indian software and services industry hassignificantly helped to boost the Indian economy. In IT-enabled services too, Indiahas been clearly perceived to be the dominant hub. The Indian software sector is 17
    • being recognized as the single largest contributor to incremental marketcapitalization in India but the sector is still small in terms of contribution to GDP,especially when compared to other large sectors in the economy like agricultureand manufacturing. Similarly, the telecommunication sector has contributed a lotbut still has a considerable way to go. The paper also enforces that comparisons ofIndia’s telecommunication statistics with those of developed and other emergingeconomies show that the country is still far behind its contemporaries.Banka (2006) gives an overview of the mergers and acquisitions in thetelecommunication industry. According to him Governments decision to raise theforeign investment limit to 74% is expected to spur fresh rounds of mergers andtakeovers in India. He foresees a sector that represents humongous opportunitywaiting to be tapped by Indian and foreign conglomerates.Thomas (2007), in his article describes the contribution made bytelecommunications in India by the state and civil society to public service, thisarticle aims to identify the state’s initial reluctance to recognizetelecommunications provision as a basic need as against the robust tradition ofpublic service aligned to the postal services and finds hope in the renewal of publicservice telecommunications via the Right to Information movement. The articlefollows the methodology of studying the history of telecommunications approachthat is conversant with the political economy tradition. It uses archival sources,personal correspondence, and published information as its research material. Thefindings of the paper suggests that public service in telecommunication is arelatively ‘‘new’’ concept in the annals of Indian telecommunications and that aderegulated environment along with the Right to Information movement holdssignificant hope for making public service telecommunications a real alternative. 18
    • The article provides a reflexive, critical account of public servicetelecommunications in India and suggests that it can be strengthened by learninggained from the continual renewal of public service ideals and action by the postalservices and a people-based demand model linked to the Right to InformationMovement. All studies done by the researcher suggests that the right to informationmovement has contributed to the re-vitalisation of participatory democracy in Indiaand to a strengthening of public service telecommunications.Cygnus Business Consulting & Research Pvt. Ltd. (2008), in its “QuarterlyPerformance Analysis of Companies (April-June 2008)” has analysed the Indiantelecom industry in the awake of recent global recession and its overall impact onthe Indian economy. The analysis is done in the background of wake of globalrecession and rising inflation. Cygnus estimates, the Indian telecom industry isexpected to maintain the growth trajectory in the next quarter as well. With almost5-6m subscribers are being added every month, and the country is witnessing wildmomentum in the telecom industry.Maheshwari (July-September 2008), in her report analysed the Indian telecomindustry and ascertain that Indian telecommunications has been zooming up thegrowth curve at an mounting pace, and India is has surpassed US to become thesecond largest wireless network in the world. This growing subscriber base isbasically created by tapping into rural India, which is an emerging market for theindustry. The estimate for the next five to ten years is that the rural market willform 40 % of the subscriber base. The study has analysed the human resourcemanagement process of the industry, and specially the latest trends of recruitmentof this massively growing industry. 19
    • Anderson (2008), in his single executive interview titled “Developing a route tomarket strategy for mobile communications in rural India An interview withGurdeep Singh, Operations Director, Uttar Pradesh, Hutch India”suggests thatmanagers need to go beyond traditional approaches to serving the poor, andinnovate by taking into account the unique institutional context of developingmarkets. His practical implication says thatthe experience of Hutchison Essar in India provides some important lessons formobile network operators (MNOs) and other firms in other developing marketswho are hoping to serve the rural poor: Hutchison has recognized the value ofcorporate and noncorporate partners. The company has proactively establishedrelationships with individual entrepreneurs, and has provided has provideddevelopment support to other partners such as distributors. The company hasrecognized the value of leveraging existing local institutions, and has seen gaps inlocal infrastructure or missing services as potential opportunities rather thanbarriers to growth. The company has seen the rural market as an opportunity – notjust an obligation to be served because of universal service obligations. Also thisarticle demonstrates that MNOs can deliver availability and affordability toachieve increased individual or household penetration through business modelinnovation.Mani (2008) addresses a number of issues arising from the growth of telecomservices in India since the mid-1990s. It also discusses a number of spillovereffects for the rest of the economy and one of the more important effects is thepotential to develop a major manufacturing hub in the country for telecomequipment and for downstream industries such as semiconductor devices. Thetelecom industry in India could slowly become an example of the service sectoracting as a fillip to the growth of the manufacturing sector. A beginning towards 20
    • this has been made. The formation of a Telecom Equipment Export Forum and theannouncement of the Indian Semiconductor Policy 2007 are steps in this direction.Success crucially depends on the response of the private sector to these incentives.Given the importance that a regulatory agency can play in this crafting, no effortshould be lost in strengthening the powers of the TRAI. The benefits to the Indianeconomy from having both a strong services and manufacturing segments in thetelecom sector cannot be undermined.Narayana (2008) estimates the contribution of telecommunication (or telecom)services to aggregate economic growth in India. Estimated contribution isdistinguished between public and private sectors to highlight the impact of telecomprivatization on economic growth. Knowledge of policy determinants of demandof telecom services is shown to be essential to enhance growth contribution oftelecom services. Using a recent sample survey data from Karnataka State in SouthIndia, price and income determinants of demand for telecom services are estimatedby capacity of telephone exchanges. Estimation results offer evidence forsignificant negative own price elasticity and positive income elasticity of demandfor telecom services.Sharma (2009) deals with the major challenges faced by India’s telecomequipment manufacturing sector, which lags behind telecom services. Only 35% ofthe total demand for telecom equipment in the country is met by domesticproduction. This is not favourable to long-term sustained growth of the telecomsector. The country is also far behind in R&D spending when compared to otherleading countries. India needs to see an increase in R&D investment, industry-academia-government partnership, better quality doctoral education and incentivesto entrepreneurs for start-ups in telecom equipment manufacturing. In 2006-07, 21
    • 65% of the total consumption of equipment was met through imports. This trendhas far-reaching implications for the economy and should not be allowed tocontinue for long. In a country like India which has a problem of massiveunemployment, the manufacturing sector should be promoted to create moreemployment opportunities.Shah (February, 2009), has analysed Indian telecom industry and studied thesector keeping in mind three companies; namely Bharti, R.Comm and idea in thebackground of recent global meltdown. The study suggests that though there is nosign of slowdown in this sector, but surely a strong turmoil is going on in theindustry. The study states that the sector is fairly immune from the currenteconomic downturn & does provide a good defensive bet in medium term. Withthe help of newer technologies, wireless penetration is expected to increase in thenear future, which is basically fuelling the growth of the sector. While the 3G /Broadband adoption would ensure long term growth momentum,the article hasthoroughly investigated about the intense competitive scenario, pricing pressure,high capital intensity & substantial regulatory uncertainties currently faced by theindustry. The article has also described the cause of being relatively safe of thisindustry. The causes described by Shah are increasing rural coverage, risingaffordability, declining handset/subscription costs, substantially low tariffs &established brand/distribution. However, the study also cautions the telecomindustry that a steeper economic slowdown could start impacting the subscriberusage patterns as well as operator capital investments & thereby could substantiallyrestrict revenue growth rate. 22
    • Chapter 2: An overview of internet and wireless connectivityDefinition of internetThe Internet is a worldwide, publicly accessible series of interconnected computernetworks that transmit data by packet switching using the standard InternetProtocol (IP). It is a "network of networks" that consists of millions of smallerdomestic, academic, business, and government networks, which together carryvarious information and services, such as electronic mail, online chat, file transfer,and the interlinked web pages and other resources of the World Wide Web(WWW).Common uses of the InternetE-mailWorld Wide WebRemote AccessCollaborationStreaming MediaFile SharingVoice TelephonyDRIVING GROWTH OF INTERNET DATA CARDGrowing business in all segments, necessity to access emails and corporateapplications during urgent business trips and the urge for some entertainmentWhile on the move are some drivers increasing the demand for data card usage.Apart from these factors, as the name of Tata Indicom’s data card,’Plug 2 surf’,Suggests, ease of use with plug and play factor is also a driver for growth, S PShukla, president, Personal Buisness, Reliance Communations, says that fastersurfing and higher download speeds, convenience of surfing the Internet while on 23
    • the move, simple to use, and affordable tariff are among the key reasons for thedata card growth, in both the laptop and desktop segments. While broadbandconnections are yet to penetrate the vast semi-urban and rural parts of the countrywhere entrepreneurs , officials, students, etc. have the need to surf the internet forvarious purposes. Though the laptop penetration in these areas has not made asignificant mark, desktop penetration is comparatively more. with data cardsoffering convenient access to the Internet, a number of companies have started totie up with service providers to avail bulk network connections for their employeeson the go and allow them to utilize their time during business travels. Since datacards can be used with desktop also, it cuts down the office infrastructure costs aswell. With the data card segment witnessing steady growth, affordability will goup, which, in turn, will drive growth.” As the data card growth increases, speedevolves and prices come down, affordability will go up and more users can beginto think of data card as an affordable solution,” says an Airtel spokesperson. Andgrowth of mobile telephony in India has created users with specific needs like m-commerce that require wireless Internet, driving the wireless data card growth.Once the concept of mobile wallet and its applications hit the market in India in thenear future, the wireless data card segment is also expected to witness anexponential growth. Apart from this, Internet charges in costly hotels are very high.With the availability of data cards and USB modems, frequent business travelerswho stay in costly star hotels can access the internet and corporate applications ontheir laptops and avoid using the Internet facility at hotels, savings on high Internetcharges.The DeterrentsAll players are competing with each other to give affordable tariff rates for theirdata cards. But still the rates are very high when compared to countries like the 24
    • UK. In the UK, wireless broadband connection through 3G technology costs about£10 per month and that too with a data download speed faster than 256Kbps.International travelers who have used data cards with faster speed are not satisfiedwith data cards and USB modems services offered in India. So, in India, data cardsmean accessing a bare minimum net connectivity only for a sizable population.That is why it is said that data cards have not exactly taken off in India. 25
    • Chapter 3: Telecom Sector-An Outlook3.1 Industry AnalysisIndian Telecom industry is one of the fastest growing telecom markets in theworld. In telecom industry, service providers are the main drivers; whereasequipment manufacturers are witnessing growth and decline in successive quartersas sales is dependent on order undertaken by the companies. Airtel, Reliance, Tataand Vodafone are some of the companies that are expected to spur the growth inAMJ08, as compared to AMJ07. According to Cygnus estimates, telecom industryis expected to grow by 25% in AMJ 09 as compared to AMJ 08, in terms of sales.EBDITA and PAT are expected to grow by 32% and 34% respectively in AMJ09as cost expenses are being control by major companies like Airtel and Reliance.The major booster is the wireless mobile subscriber base; crossing over 261m inMarch 2009. Other services like Internet subscriber base has also providedsignificant impetus with its subscriber base reaching over 11m in March 2009. 26
    • 3.2 About Internet Data CardsAn Internet Data card is a modem which can be connected to the PCs or Laptopsany where any time to get connected with the internet. A data card comes withdifferent verities and models, some of the models of data cards of different serviceproviders are mentioned below.3.2.1 VodAfonEVodafone has few models in the data card category, these are: i. Vodafone Mobile Connect EDGE data cardConnect to Internet, the wireless way with Vodafone Mobile Connect EDGE DataCard in India. Get quick, simple and secure access to the Internet. And yourcompany server.Features of this Vodafone Data Card: 27
    •  Gives us high-speed connectivity through the Vodafone EDGE network in India and abroad.  Easy VPN connectivity, to give us secure access to our company server and intranet  Keeps us connected even while travelling – in India or abroad  Saves our from high internet charges on your hotel bills  Is easy to install & simple to use – no wires, phones lines or cable connections required  Comes with a choice of tariff plans, so one can pick the one that suits you best  Supports SMSCharges & Price For Mumbai and Maharashtra except Goa Rs 7799 For rest circles including Goa Rs 6499Tariff Plans Monthly 499 699 rental (Rs) Free data 500MB 1GB 28
    • Usage 5p / 5p / 10KB charges 10KBii. Vodafone Mobile Connect USB ModemGives wireless Internet – anywhere, anytime. With the Vodafone MobileConnect USB Modem you get real-time access to information. Plus, theVodafone Internet USB stick comes without any installation hassles. Just plugthe Vodafone USB modem into our laptop and get connected to the internet andeven your company server, at a speed that’s three times faster than our wireddial-up connection. That’s not all – this Vodafone USB Modem gives us 3GBroadband speeds while roaming abroad.Features:  High-speed connectivity through the Vodafone EDGE network  Works with your preferred VPN software, to give us secure access to our company server and intranet 29
    •  Keeps us connected even while travelling – in India or abroad  Saves us from high internet charges on your hotel bills  Easy to install & simple to use – no wires, phones lines or cable connections required  Comes with a choice of tariff plans, so we can pick the one that suits best  Supports SMSChargesVodafone Mobile Connect USB Stick costs: Rs 2599Tariff Plans Monthly 499 699 rental (Rs) Free data 500MB 1GB Usage 5p / 5p / 10KB charges 10KBiii. Vodafone Mobile Connect 3G USB Stick 30
    • Now you can make the most of a mobile internet connection for our laptop ordesktop. With the Vodafone Mobile Connect 3G USB Stick one can work fromanywhere with real-time access to information. Without any installation hassles.Just plug it into your laptop and get connected to the internet and even yourcompany server, at a speed thats faster than our traditional dial up connection.That’s not all – the Vodafone Mobile Connect 3G USB Stick also gives us 3GBroadband speeds while roaming abroad. Gets us high-speed connectivity to the internet through the Vodafone EDGE network. Is easy to install – just plug in and is ready, no CDs required. Gives 3G Broadband speeds when we travel abroad. Works with your preferred VPN software, to give us secure access to your company server and intranet. Has many different tariff plans, so we can choose the one that meets our requirements. 31
    •  Saves from high internet charges on our hotel bills.  Supports SMS  Supports Micro SD card upto 2 GB.Price For Mumbai and Maharashtra except Goa Rs 6599 For rest circles including Goa Rs 5499 3.2.2 BhARAT SAnchAR nIgAm LImITEd (BSnL) 3.2.2.1 Why BSNL? i. First thing is the tariff? While other service providers charge Rs.1500 + tax for the same service, BSNL charge only Rs.400+tax that also including voice rental!! And it is truly unlimited. No caps at all. No hidden charges, no strings attached nothing. Now isnt it a cool reason? ii. The subscriber need not buy the card ! No other service provider allows you to take the data card on rental basis. Bharat Sanchar Nigam, Limited - BSNL - has option to take the card on rental, that also just Rs.150 a month. iii. Unmatched Coverage 32
    • The user is never away from a BSNL CDMA tower. If the subsriber have WLLcoverage or FWT coverage in your area, the data card will work perfectly.iv. Internet in rural areasAs only Bharat Sanchar Nigam, Limited - BSNL - has coverage in lot of placeswhich are very remote and rural areas, this service is best suited for peoplethere. A very affordable internet facility for the people there.v. Discontinue when there is no need of itAll other service providers ask us to purchase the data card and we do not haveany alternatives if you wish to discontinue. There is no way one can return thedata card to get your money. But for BSNL one can give the data card backafter the minimum rental period and will get the security deposit back.vi. Truely Unlimited InternetNo caps, no limits. we can go online 24x7. Need not worry on the bills and weknow how much to pay every month as it is NOT based on the monthly trafficor hourly usage. No confusing tariff tables and nothing complicated. Simple andaffordable.vii. Cutting Edge TechnologyThe BSNL data card is Huawei - EC 321 which is the latest one and supportROMSIM/R-UIM card. It is CDMA2000 1X RTT, compatible with IS-95 A/B. 33
    • It support Voice and SMS, Incoming Calling Display, ring prompt, call receiving while data service online (for this function Call Waiting service must be activated) and it has a large-capacity phone book.Tariff / Other Security deposit - Rs. 1000 Activation charges - Rs. 250 Security deposit (voice- Rs.500 no STD) - Advance rental for 3 Rs. 450 months - Service tax - Rs. 87.00 Total initial charge - Rs. 2287.00 Monthly charges of BSNL data card Rs.400 - if you buy the card and Rs.550 if you take the card on rental basis. Rate of BSNL data card for purchase Rs.2800 if you purchase it form BSNL. Minimum hire period: Three months The actual speed The speed is mainly depend on the distance from the BSNL CDMA tower. If we are near the tower we may get speed of 120 kbps, if we are away from the tower it will go down to 80 or 60 kbps. BSNL EVDO is a Wireless Based Broadband Service on CDMA network. 34
    • It offers Internet at 2.4 Mbps data rate. EVDO (Evolution Data Optimize, 3Gservice in CDMA) is a technology for providing high Speed Internet on CDMAnetwork (Latest version of EVDO provides up to 7.2 Mbps Internet, but its notavailable with BSNL now). As 3G is officially launched, BSNL is providingthis service on testing and unofficial basis like Reliance’s and Tata’s WIMAX.BSNL EVDO comes as both USB Modem (Pen Drive like) and PCMCIA Cardform factor. BSNL started this service from small towns and some rural placesin South India and gradually expanding to all major cities in India. As BSNL iscurrently in upgrading phase of its CDMA towers to EVDO enabled. Theavailability of 2.4 EVDO connections depends on the city and the area in thecity where EVDO tower is present. Depending on the availability of the towerin your area or your wish, you could choose between two speeds. Either EVDO(2.4 Mbps) or CDMA 1x (144Kbps). Please note whatever you choose, the cardor modem will require to be pre configured at BSNL exchange for that. Theservice totally depends on the area of availability and the signal you are getting.The maximum practical speed is 1.5 Mbps (which I consider is very good). 35
    • However if the tower (in your area or the area you move) is not EVDOenabled, the connection automatically switches to the CDMA 1x and providesspeed of 144 Kbps. BSNL EVDO provides roaming also however it’s availablein the state only, nationwide will be soon launched.Rate and Tariff Plans:EV-DO Device cost Rs 7,500 , Either USB Modem or PCMCIA card cost Rs.3500 on out right purchase. For rental basis, you will have to give Rs. 1500deposit (Rs. 1000 refundable) and the monthly modem rent will be Rs. 200.Minimum commitment is 3 months. 250 Rs / Month (only if u buy the devicefor 7,500 Rs at the Begining) 600 Rs / Month (On rental for device) Tariff forEVDO (2.4 Mbps) is Rs. 550 + Tax/month unlimited download Tariff forCDMA 1x (144 Kbps) is Rs. 250(reduced from 350) + Tax/month unlimiteddownload. Only above two tariff plans are available and Yes it’s too cheap thanInternet offered by other companies. So at starting, for Outright Purchase wewill have to pay 3500 + 550 or 250 plus tax. For Rental Basis we will have topay 1500 + 550 or 250 plus tax.3.2.3 TATA IndIcom“STAY CONNECTED WHEREVER YOU ARE”Now, stay connected to the internet from the comfort of your homes, offices, orwherever you are with Tata Indicom. Presenting Vdata Card & Plug 2 Surf 36
    • (USB Modem), 2 innovative solutions that function as a wireless networkconnection, a mobile phone and a modem. All in one and that too, withattractive tariff plans.ITS FAST. ITS EASY. ITS CONVENIENT. Easy Installation & maintenance. Now Surf the internet, intranet or the extranet with consistent & high speeds. Send/Receive SMS or use voice capabilities. (Plug2Surf Whiz does not support Voice calls) Stay connected across the Tata indicom network 20 circles & 3500 citiesActual internet speed will be dependent on multiple factors like time of the day,number of simultaneous users, web page accessed etc.THE 3-IN-1 ADVANTAGEThe Internet Advantage The Plug 2 Surf / Vdata card offers data transfer and access at high speeds. Just switch on your PC / laptop and get connected, so dont miss out on any critical information even while we are on the move. 37
    •  Connects directly to the Tata Indicom network with the minimal user steps and fastest network registration.The Voice Advantage Now you can make and receive voice calls without any hassles. All you need to do is connect the earphone jack provided with the Plug 2 Surf / Vdata card. (Plug2Surf Whiz does not support Voice calls) Provision of caller Id. Voice calls at attractive call rates.The SMS Advantage Two way messaging facility available on both devices. Send messages while we are connected on our voice call or internet mode. Useful for being online, and being able to send and receive message. Plug 2 Surf - Unparalleled FeaturesFeatures Data-for Photon for Photon Whiz Laptops PCs & for PCs & Laptops LaptopsSpeeds Upto 153.6kbps Upto 153.6kbps Upto 153.6kbps 38
    • Antenna External Internal Internal retractableSMS Capacity 1000 msgs in 1000 msgs in 10 msgs in inbox and inbox and inbox and outbox outbox outboxPhonebook 1000 entries 1000 entries 250 entrieCapacityType T-SIM Based T-SIM Based T-SIM BasedInterface PCMCIA USB USBSupported OS Windows 2000/ Windows 2000/ Windows 2000/ Windows XP/ Windows XP/ Windows XP/ Windows Vista Windows Vista Redhat Enterprise Linux 3 & 4/ Fedora Core 5 & 6/ SUSE Desktop Linux 9 & 10/ Debian Linux 5 & 6/ Ubuntu Linux 5 &6Price Rs 2499/- Rs 2499/- Rs 2249/- 39
    • Photon & Photon Whiz – Tariffs Plan Fixed Free Usage Additional Name Charges usage charg Budget Rs.150/mt 300 Mins (5 50p/min Time 150 h Hrs) 50p/25p Based Value Rs.325/mt 1800Mins 50p/25p 325 h (30 Hrs) Value Rs.525/mt 3600Mins 525 h (60 Hrs) Data ME Rs.500/mt 1 GB Based Economy h Rs.2/MB ME Rs.650/mt 1.5GB Jumbo h Rs.2/MB Unlimite Unlimite Rs Unlimited d Plan d Data 799/mth data usage Plan 799 Tata Photon+ USB Modem Tata Photon Plus is a new Mobile Broadband Service. Tata Photon+ - the next generation technology offers a great mobile internet connectivity solution. With Tata Photon Plus we now have access to the internet at never before speeds . Never before speeds: 40
    • With Tata Photon+ - Mobile Broadband Service you now have access tointernet at super fast speeds using the new USB modem.Internet on the go:With the new USB Modem we also now have the convenience of being able toaccess Tata Photon+ service ( Mobile Broadband Service) from wherever weare.Plug and Play:All we now need to do is just plug the USB Modem into your Laptop/DesktopPC and we are ready to access a whole new world of High speed internetconnectivity.Style statement:With Tata Photon+s new sleek and stylish USB Modem , you are nowcompletely free from wires.USB interface:With the USB port interface one can now simply plug the USB Modem deviceinto either a Laptop or your Desktop PC & get ready to access high speedinternet connectivity. 41
    • Feature Specifications Speed Upto 3.1 Mbps Downlink speed . Actual internet speed will depend on multiple factors like time of the day, number of simultaneous users, web page accessed, etc. NON-RUIM Non-RUIM based programmed device is provided to customers. OS Win 2000, Win XP, Win Vista Antenna ExternalPrice: Rs 3500/- for the device.3.2.4 RELIAncE commUnIcATIon“The magic of mobile surfing”Reliance Net connect Data and Voice CardNow we don’t need to frantically search for a cyber café while on tour. RelianceNetconnect gives us the freedom of mobile surfing anywhere in the country. Slipthe Reliance Netconnect Data & Voice Card into your laptop and youre ready to 42
    • go. This pocket-size wonder packs quite a punch — it works both as a modem anda mobile phone, so you can surf at high speeds as well as make and receive callsand SMSes from our laptop.Reliances cutting edge CDMA2000 1X technology offers pan-India coverage,giving you wireless Internet access even from the remotest part of the country.Experience it all at a cost thats incredibly affordable.Reliance Netconnect Key Benefits:Working while travel has never been this simple. Reliance Netconnect offers youbenefits that make it easy to connect to work or catch up with friends, no matterwhere we go.CoverageSurf seamlessly across India in over 20,000 towns and 4.5 lakh villages andcounting.SpeedAccess files and download information at speeds up to 144kbpsEmailsStay in touch by accessing mail while were on the move.CallsMake and receive calls to any number in the world from our laptop. 43
    • SMSSend and receive SMS messages from our laptop. Even multiple SMS is possible.Address BookSynchronise your address book with Outlook Express.ConvenienceSay goodbye to bothersome copper wires and the problem of dial-up connectionslike timeouts, blackouts and frequent disconnections.Easy to InstallFollow simple instructions after installing the software from the CD provided .Unlimited Internet SurfingStay online always at just Rs 650 per month (up to 1 GB data transfer) withoutbothering about running up huge phone bills. i. Reliance Netconnect MG880 USB Modem 44
    • A revolutionary product from Reliance Netconnect that lets one access the Internetanytime anywhere. This product is an unique sleek modem which can be attachedto the USB port directly and helps one to do the Internet, talk and send SMS.Features: Connectivity  Wireless Internet access across 20000 towns and 4.5 lakh villages and counting  Enhanced download & surfing speed with cutting-edge CDMA 1X technology  Internet browsing and download speed upto 153.6 kbps  Compatible with Windows 2000, Windows XP & Vista  High-speed wireless data access for laptop or tablet PC.Voice and SMS Compatible:  Make and receive voice calls  Send and receive SMS.Price : Rs 2490/- for the deviceii. Huawei EC-121 USB ModemFirst time in India a revolutionary product from Reliance Netconnect that lets oneto access the internet anytime anywhere. This product is a unique modem which 45
    • can be attached to the USB port directly and helps to do the internet, talk and sendSMS.Features: Connectivity  CDMA 1x RTT 800Mhz.  Inner Antenna.  Auto Installation.Voice Supported.  Packet Data Service supported.  Supports Incoming and Outgoing SMS.  Laptop/PC Speaker & Mic / Head Jack can be used for voice calls.  Windows 2000 (SP4), Windows XP (SP2), Windows Vista32/64bits, MAC OSPrice: Rs 2500/- for the device 46
    • iii. PCMCIA card (Personal Computer Memory Card International Association)A revolutionary product from Reliance Netconnect that lets us access the Internetanytime anywhere.Price: Rs. 2500/- for the card.Tariff PlansPostpaid PlansTariff Plan Monthly Rental Free Usage Usage Charges Rs. Beyond Free UsagePay as you go 174 Nil 60 p/min day 30 p/min nightSwift 30 300 40 hrs day 50 p/ min 40 hrs nighSwift 40 Plus 400 Night unlimited 50 p/ minFreedom 650 1 GB/ month Rs. 2.00/ MBFreedom plus 900 1.5 GB/ month Rs. 2.00/ MBPlatinum 1500 Unlimited 47
    • Netconnect Prepaid Data Vouchers 5 Hour Pack 10 Hour Pack 25 Hour Pack Unlimited PackPrepaid Data Rs. 111/- Rs. 202/- Rs. 404/- Rs. 1099/-RCV (in Rs.)Validity (in 0 0 30 30Days)Free SMS 50 100 300 300Minutes of 300 600 1500 unlimitedusage (Ifentire usage isin PeakHours)Minutes of 600 1200 3000 unlimitedusage (Ifentire usage isin Off PeakHours) iv. Netconnect Broadband Plus 48
    • Features  Wireless Broadband for laptops & desktops  20 times faster with speed upto 3.1 Mbps  Simply plug & play  Fastest uploads at a speeds of upto 1.8 Mbps  Seamless network across 20,000 towns and 4.5 lac villagesReliance Communications has launched the Netconnect Broadband+ (Plus) servicewhich they call the “Fastest” internet broadband service and that alsowireless.According to Reliance Communications, the Netconnect Broadband+(Plus) service will offer up to 3.1 Mbps download and up to 1.8 Mbps uploadspeed.Netconnect Broadband Plus service will be available in 35 cities withseamless handover to high speed 1x (CDMA Datacard) service covering 20,000towns and 4.5 lakh villages.Charges : Rs 3500/-Tariff PlansPlan Name Monthly Bundled Usage Roaming Rental Usag Charges beyond Free UsagePay As you Go Rs. 299/- Nil Rs. 2/- per Nationwide* 49
    • MBBroadband+ Rs. 499/- 10GB@ 50 paise per Nationwide*10GB @Night Night minute during dayBroadband+ 1 GB Rs. 650/- 1 GB Rs. 2/- per Nationwide*Plan MBBroadband+ 2.5 Rs. 850/- 2.5 GB Rs. 2/- per Nationwide*GB Plan MBBroadband+ 5 GB Rs. 1099/- 5 GB Rs. 2/- per Nationwide*Plan MBBroadband+ Rs. 1099/- 10GB Rs. 2/- per CitywideCitywide 10GB MBPlanBroadband+ Rs. 1750/- 10GB Rs. 2/- per10GB Plan MB NationwideBroadband+10GB Rs. 199/- 10GB Rs. 2/- per As per PlanNight Add-on MB chosenPack**Day Usage : 6 AM to 10 PM ; Night Usage : 10 PM to 6 AM3.2.5 AIRTELAirtel USB Modem 50
    • Airtel USB Modem can be inserted along with a SIM card in your laptop/desktop(in USB Slot). It works on GPRS/EDGE and gives you Anytime AnywhereConnectivity through internet WIRELESSLY.Airtel USB Modem advantages are:  Large International Roaming GPRS coverage  Technical Call Centre Support  Customized for Airtel GPRS/EDGE usage (APN is customized to Airtel)  Pan India Presence of Airtel Network  Attractive plans to choose from  1 years warrantyFeatures  Quad band  EDGE  Plug & Play 51
    •  Data, SMS  FOR USB PORT  EDGE/ GPRS/GSM(SMS)  SMS facilities  For Notebooks and PCs  Fully Customized  International RoamingPrice: Rs 2,999/-Tariff Plans Standard Plan I Plan II Surf Plan UnlimitedAirtel Data Card Rental Rs.49 Rs. 350 Rs. 599 Rs. 999Free Bundled Usage NIL 500 MB 1 GB UnlimitedAdditional Data Usage (per MB) Re.0.10p/1 Rs. 5/- Rs. 3/- NA 0 KBFree SMS per Month NA Nil 100 100Voice Plan Additional Voice Voice Voice Any Plan Rental Rental Rental 52
    • Inclusive* Inclusive* Inclusive* Chapter 4: Consumer behavior towards Internet data CardWhen consumer purchase internet data card they still perform a similar sequenceof tasks: searching for information about different products, evaluating thesealternatives, and transacting the chosen alternative. However, the family andfriends has great impact on these activities.Problem recognition:The starting point is feeling the need or recognition of a problem. The need foraccessing internet at anywhere can trigger the recognition of a need or problem and 53
    • can have significant impact by encouraging customers to begin the informationsearch process (Breitenbach and van Doren, 1998).Information Search:Once customers identify the need they may seek information about retailers orproducts to help them satisfy. Customer search regarding internet data card couldbe limited because it’s a specialty product. Our analysis has shown that in terms ofinternet data card customer mostly refer to family and friend as reference group.These reference groups affect buying decision offering information like price, tariffplan availability and so forth. Providing rewards for specific purchasing behaviorsfor instance friends could appreciate that you could access internet at anywhere ifyou are carrying a laptop. By identifying and affiliating with reference groups,consumers create, enhance, and maintain their self-image. Customers who want tocreate an image of mobile, technologically updated person as well as want to beseen as members of a higher social class might buy internet data card fromReliance or other competitor’s products.Product Evaluation:During this stage, consumers process different product information and make afinal value judgment. The multi attribute model provides a useful way forsummarizing how customers use the information they have about alternativebrands of internet data card. From our consumer behaviour analysis we have found 54
    • out that on this stage customer evaluate data card on its several attributes like price,net speed, tariff plan which come along with, looks etc and they also decide whichattributes are most important for them. The multiattribute model shows that how aconsumer gives weights of importance to the various attributes of a data card. Asample multiattribute model which is actually has been taken from one of ourquestionnaire shown that how a consumer gives importance to different productattributes of data card.No. Attributes/Benefits Rating1. Price2. User friendly3. Net Speed4. Installation5. Durability6. Tariff plan7. After sales serviceTotal evaluation score for each attributes is 5.From the above sample table we cansee that consumer is giving more importance to net speed and signal strength. Somarketer should put more focus of highlighting these two attributesPurchase Activity: 55
    • Its not necessary that customer will always purchase a brand or data card withevaluation. The data card offering benefits (having the highest evaluation) may notbe available in the store, or the customer may feel that the risks outweigh thepotential. During purchasing customer also may feel that their data card might notbe able to meet their expectations. Therefore retailer should ensure that their salespersons are knowledgeable enough and they are also skilled presenter of theirproduct, otherwise it could raise confusion in customers’ mind during purchasingof data card. Reducing the actual and perceived time of purchasing.Post Purchase Activities:As we know buying process doesn’t end when a customer purchase a product.From focus group interviews we have come to know that after making a purchaseof data card, customer evaluate their experience on the basis of net speed, signalstrength amount of money they have spent. Customers often feel that serviceproviders do not deliver what they promise. They feel players should present theterms and conditions and tariff plans/schemes in clear terms. Mentioning everysmall detail regarding the tariff plans must be included in the bill. For example, if acompany intends to collect an advanced monthly rental from customers, then it hasto mention that in its tariff plan, so that customers are not shocked when they see a 56
    • bill that includes monthly advance rentals as well. This kind of practice might keepcustomers away from going for a particular brand.Perceived benefits of Internet data cardAmong the process there are various factors that might influence consumerspurchase during their purchasing process. Many of these factors also reflect theadvantages and disadvantages of Internet as a shopping medium. The advantagesor benefits currently conceived by people are described as the followings.Convenience:From our questionnaire survey and focus group discussion we have come to knowthat when a customer thinks to purchase a data card for accessing internet theymostly its convenient to access internet at any where at any time. Especially thosewho have to extensively traveling its quite convenient for them to get connectedwith World Wide Web!Time saving:Some time data card also proves time saving from the customers especially forbusiness executives who have to travel extensively due to their job purpose. If theyare using a data card for accessing internet they don’t have to find out a cyber caféat an unknown place.Economical: 57
    • From our secondary research we have found that for younger group of consumers(age group of 18-28) who generally spend a lot of time for downloading differentkind of materials like music, picture, data, due to availability of some attractivetariff plans offered by the different players along with their respective data cards,its seems a must have utility device for all young laptop users.DRAWBACKS.Perceived risk of Internet data cardPerceived risk can be defined as the uncertainty that consumers face when theycannot foresee the consequences of their purchase decision. Customer perceptionof risk varies depending on individuals, situation and product. The degree of riskthat consumers perceive and their own tolerance for risk taking,are factors thatinfluence their purchase strategy (Schiffman and Kanuk, 2000).Individuals tend toreduce perceived risk to some acceptable level in any given purchase situation.Risks of internet connection speed:Internet connection speed refers to the data transfer rate from the Internet to ourcomputer. Basically that means the amount of time it takes our computer todownload a given amount of data. Internet connection speeds are usually measuredin Kbps (kilobits per second, or thousands of bits per second) or KBps(kilobytesper second).According to our study, consumers already have a predisposition that 58
    • data card do not provide good internet connection speed, so during productsevaluations and purchasing activities they mostly think about product attributese.g. internet connection speed, signal strength. Therefore here implication formanagement is during product evaluation; purchase activities, retailers must takesome necessary measures to reduce the uncertainty in the customer mind byaggressive promotional strategies, especially focusing on innovating below the line(BTL) marketing activities, giving excellent product demonstrations duringpurchase and most importantly reducing the cognitive dissonance during postpurchase behaviour by giving enough assurance about product qualities, warrantyas well as excellent after sale service. Research Methodology Chapter 1: Data Collection There are two types of data; primary and secondary data.Primary dataIn this project work primary data has been collected by: • Interviews with employees working at Vodafone people for collecting of background information such as products explanation; market situation in asansol, durgapur and burdwan and contact information for distributors. 59
    • • Discussions have been done with Vodafone representatives in the investigated markets to apply information and further discussions after the questionnaires. • Questionnaires have been done on several respondents in the local area and perception about the data card were collected. Several tele-callings were done to gather information an about the data card after they had used it . The questionnaires are used to get exactly and comparable answers in questions.Primary data has given answer in following questions in each of the studiedmarkets: • Competitors name and position • Customers • Marketing methods used by different data card providers • Number of people having laptop or PC • Number of people using internet. • Average monthly usage of internet • Monthly expenditure of internet of the people. • Number of different occupation & age category using internet • Number of people aware about the data card • Number of data card users • Number of people favouring different categories of data card. • Number of people aware about the vodafone data card. • Purpose of using internet.Secondary data 60
    • • Review of literatures are used to get relevant theories . Printed literatures are articles and books in telecom sectors providing data card . • Homepages are used for information about competitors. The information about the different product launched by different players along with their tarrif plans, cost ,etc. were collected from different websites.Secondary data has given answer in following questions in each of the studiedmarkets: • Information about competitors • Information about marketing methodsDifferent statistical models used.Z TESTCHI-SQUARE. Data Analysis Chapter 1: Brand RecallA sample of customers, which is representative of the Durgapur, Asansol andBurdwan population, was surveyed and unaided recall of the brands by thesecustomers was recorded. It was observed that Reliance data cards had the highest 61
    • brand recall amongst all the brand of Internet data card. This can be attributed tovarious reasons like brand perception, usage pattern, advertisement expenditureetc. The survey administered had questions which measured the importance ofvarious attributes like price, net speed, signal strength, offers & discounts ofvarious data cards and specifically for Vodafone data card. Chapter 2: Development of Hypothesis and TestingDevelopment of Hypothesis 1. Hypothesis Price is an important factor that governs the buying behaviour of the customers while making purchase of data card. 62
    • Null Hypothesis H0: Price plays an insignificant role in purchase of datacard.Alternative Hypothesis H1 : Price plays a significant role in the purchase ofdata card.This hypothetical statement is drawn from question no. 12(in likert scale of1-5) from the questionnaire of annexure 1. To test this hypothesis theresearcher has done z-test (two-tailed test) and the inference drawn from thehypothesis is stated below.INFERENCE: The observed value of the test statistic Z is 10.55 but at thecritical region the value of Z at 5% level of significance is I Z I ≥ 1.96.Therefore, the observed value of Z does not lie in the critical region sotherefore we reject the null hypothesis and conclude that price plays asignificant role in the purchase of data card.Mathematically:z = x̄ ̄ - µ/S.E of x, where S.E of x̄ = σ/√nThe Null Hypothesis is H0 : µ = 3 (where the respondents are giving noresponse)Then the Alternative Hypothesis H1 : µ ≠ 3= 3.76 – 3/0.07 = 10.55Since I Z I = 10.55 > 1.96, hence H0 = Rejected.Price of the data card: In this research, it is discovered that price of theData card is playing an important role in the purchase decision of thecustomer; Data cards with high prices are less preferred. BSNL is the onlycompany in the market, which is providing Data cards on rental basis, and itis one of the main reasons behind BSNL’s success. RelianceCommunication and Tata Indicom is also providing data cards at cheaper 63
    • rates. Normal Data cards ranges from Rs 2000 to Rs 3000 and 3G, Broadband Data cards range starts from Rs 3500 onwards.2. Hypothesis: Installation of the data card plays an important role in the purchase decision of the data card. Null Hypothesis H0 = Installation of the data card plays an insignificant role in the purchase decision of data card. Alternative Hypothesis H1 = Installation of the data card plays a significant role in the purchase decision of data card. This hypothetical statement is drawn from question no. 12(in likert scale of 1-5) from the questionnaire of annexure 1. To test this hypothesis the researcher has done z-test (two-tailed test) and the inference drawn from the hypothesis is stated below. INFERENCE: The observed value of the test statistic Z is 10.81 but at the critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So, the observed value of Z does not lie in the critical region so therefore we reject the null hypothesis and conclude that price plays a significant role in the purchase of data card. Mathematically: z = x̄ ̄ - µ/S.E of x, where S.E of x̄ = σ/√n The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no response) 64
    • Then the Alternative Hypothesis H1 : µ ≠ 3 = 3.8 – 3/0.074 = 10.81 Since I Z I = 10.81 > 1.96, hence H0 = Rejected. Installation process: The installation process of data card should be simple and can be easily understood by the user, because the user is the one who is going to operate it with the machine, and if it is a complicated process then user might think for other options. A user wants simplest process to get connected with the internet, just plug in the data card and connect, if he/she needs to install some special software’s in the PC or Laptop for using the data card, it is not possible for everyone to handle this installation process, so installation process plays an pivotal role in the purchase decision.3. Hypothesis: Durability of the Data card plays influential role in the purchase decision of data card. Null Hypothesis H0 = Durability of the data card plays an insignificant role in the purchase of Data card. Alternative Hypothesis H1 = Durability of the Data card plays a significance role in the purchase of Data card. This hypothetical statement is drawn from question no. 12(in likert scale of 1-5) from the questionnaire of annexure 1. To test this hypothesis the researcher has done z-test (two-tailed test) and the inference drawn from the hypothesis is stated below. INFERENCE: The observed value of the test statistic Z is 12.32 but at the critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So, the observed value of Z does not lie in the critical region so therefore we 65
    • reject the null hypothesis and conclude that durability of the data card plays a significant role in the purchase of data card. Mathematically: z = x̄ ̄ - µ/S.E of x, where S.E of x̄ = σ/√n The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no response) Then the Alternative Hypothesis H1 : µ ≠ 3 = 3.9 – 3/0.073 = 12.32 Since I Z I = 12.32 > 1.96, hence H0 = Rejected. Durability: Purchasing a Data card is mostly a long-term investment, so a Data must have to be durable enough to meet the requirements of the user. A Data card should not get over heated while in use, should be made up of un- breakable plastic are some features of durable Data card.4. Hypothesis User friendliness of the data card plays an important role in the purchasing decision of data cards. Null Hypothesis H0 = User friendliness of the data card plays an insignificant role in the purchase of Data card. Alternative Hypothesis H1 = User friendliness of the data card plays a significance role in the purchase of Data card. This hypothetical statement is drawn from question no. 12(in likert scale of 1-5) from the questionnaire of annexure 1. To test this hypothesis the researcher has done z-test (two-tailed test) and the inference drawn from the hypothesis is stated below. 66
    • INFERENCE: The observed value of the test statistic Z is 18 but at the critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So, the observed value of Z does not lie in the critical region so therefore we reject the null hypothesis and conclude that user friendliness of the data card plays a significant role in the purchase of data card. Mathematically: z = x̄ ̄ - µ/S.E of x, where S.E of x̄ = σ/√n The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no response) Then the Alternative Hypothesis H1 : µ ≠ 3 = 4.8 – 3/0.6 = 18 Since I Z I = 18 > 1.96, hence H0 = Rejected. User Friendly: A Data should be user friendly in operations. Apart from connecting internet, Data cards comes with multiple features such as receiving and sending SMS, making and receiving voice calls, etc, so all these functions should be easy to operate, if it is little complicated it becomes a hassle for the user and ultimately affects the purchasing decision.5. Hypothesis Tarrif plans offered by the service providers of the data card play an influential role in the consumer buying behavior. Null Hypothesis H0 = Tariff plans of the data card plays an insignificant role in the purchase of Data card. Alternative Hypothesis H1 = Tarrif plans of the data card plays a significance role in the purchase of Data card. 67
    • This hypothetical statement is drawn from question no. 12(in likert scale of 1-5) from the questionnaire of annexure 1. To test this hypothesis the researcher has done z-test (two-tailed test) and the inference drawn from the hypothesis is stated below. INFERENCE: The observed value of the test statistic Z is 11.91 but at the critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So, the observed value of Z does not lie in the critical region so therefore we reject the null hypothesis and conclude that user friendliness of the data card plays a significant role in the purchase of data card. Mathematically: z = x̄ ̄ - µ/S.E of x, where S.E of x̄ = σ/√n The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no response) Then the Alternative Hypothesis H1 : µ ≠ 3 = 3.81 – 3/0.068 = 11.91 Since I Z I = 11.91 > 1.96, hence H0 = Rejected. Tariff Plans: Apart from the price of the Data, card how much the internet service is costing to the pocket of the user is very important factor in the purchase of any Data card. A internet user wants tariff plans which fits into his/her budget and fulfills all the other requirements. Again BSNL is the market leader in this segment with cheapest tariff plans and after that Reliance and Tata Indicom comes.6. Hypothesis Speed of the data card plays a pivotal role in the purchase decision of data card. 68
    • Null Hypothesis H0 = speed of the data card plays an insignificant role in the purchase of Data card. Alternative Hypothesis H1 = speed of the data card plays a significance role in the purchase of Data card. This hypothetical statement is drawn from question no. 12(in likert scale of 1-5) from the questionnaire of annexure 1. To test this hypothesis the researcher has done z-test (two-tailed test) and the inference drawn from the hypothesis is stated below. INFERENCE: The observed value of the test statistic Z is 18.66 but at the critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So, the observed value of Z does not lie in the critical region so therefore we reject the null hypothesis and conclude that speed of the data card plays a significant role in the purchase of data card. Mathematically: z = x̄ ̄ - µ/S.E of x, where S.E of x̄ = σ/√n The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no response) Then the Alternative Hypothesis H1 : µ ≠ 3 = 4.12 – 3/0.06 = 18.66 Since I Z I = 18.66 > 1.96, hence H0 = Rejected. Net Speed: The internet speed is very important for the users and slow internet is not at all preferred in our fast moving lives. With the introduction of Broadband and 3G in the market of Data cards, the competition has got even tougher. Customers prefers internet with good downloading speed.7. Hypothesis 69
    • After sales service provided by the service providers plays a significant rolein the purchase decision of data cards.Null Hypothesis H0 = After sales service of the data card plays aninsignificant role in the purchase of Data card.Alternative Hypothesis H1 = After sales service of the data card plays asignificance role in the purchase of Data card.This hypothetical statement is drawn from question no. 12(in likert scale of1-5) from the questionnaire of annexure 1. To test this hypothesis theresearcher has done z-test (two-tailed test) and the inference drawn from thehypothesis is stated below.INFERENCE: The observed value of the test statistic Z is 6.25 but at thecritical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So,the observed value of Z does not lie in the critical region so therefore wereject the null hypothesis and conclude that after sales service of the datacard plays a significant role in the purchase of data card.Mathematically:z = x̄ ̄ - µ/S.E of x, where S.E of x̄ = σ/√nThe Null Hypothesis is H0 : µ = 3 (where the respondents are giving noresponse)Then the Alternative Hypothesis H1 : µ ≠ 3= 3.50 – 3/0.08 = 6.25Since I Z I = 6.25 > 1.96, hence H0 = Rejected.After Sale Service: After sales service like sending bills on time, keep thecustomers updated with the new developments in different areas etcimproves the chances of increasing the sale of data card, and plays animportant role in the purchase decision of the customer also. 70
    • 8. Hypothesis Image of the company in the minds of the customers plays a vital role in the purchase decision of data card. Null Hypothesis H0 = mage of the company of the data card plays an insignificant role in the purchase of Data card. Alternative Hypothesis H1 = Image of the company of the data card plays a significance role in the purchase of Data card. This hypothetical statement is drawn from question no. 12(in likert scale of 1-5) from the questionnaire of annexure 1. To test this hypothesis the researcher has done z-test (two-tailed test) and the inference drawn from the hypothesis is stated below. INFERENCE: The observed value of the test statistic Z is but 3.87 at the critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So, the observed value of Z does not lie in the critical region so therefore we reject the null hypothesis and conclude that image of the company of the data card plays a significant role in the purchase of data card. Mathematically: z = x̄ ̄ - µ/S.E of x, where S.E of x̄ = σ/√n The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no response) Then the Alternative Hypothesis H1 : µ ≠ 3 = 3.31 – 3/0.08 = 3.87 Since I Z I = 3.87 > 1.96, hence H0 = Rejected. 71
    • Image of the company: The goodwill created in the market through years of providing superior service quality helps the company to sale its products, because it’s the image of the company in the minds of the customer who is going to purchase the data card. If the brand is trusted in the market, it makes a positive impact on the purchase decision.Analysis of the factors affecting the buying behaviour of DATA CARDSIGNIFICANT TEST [ASYMMETRY TWO TAILED]Statement of Sample Standard Test statistic. Zcritical HypothesisHypothesis mean deviation Applied Z α=0.05 Status Of the TEST( two Sample tailed) (x̄) (Zobserved) (σ x̄)H1 = Price plays a 3.76 0.07 10.55 1.96 H0pivotal role in the REJECTEpurchase of data card DH2= Installation of the 3.8 0.074 10.81 1.96data card is an important H0factor in the purchasing REJECTEDof datacardH3= Durability of the 3.9 0.073 12.32 1.96data card plays an H0influencial role in the REJECTEDbuying of data cardH4 = User friendliness 4.08 0.06 18 1.96 H0of the data card plays an REJECTEDimportant role in thepurchasing of data cardH5 = Tarrif plans of the 3.81 0.068 11.91 1.96 H0data card plays an REJECTEDinfuencial role in theconsumer buyingbehaviourH6 =Speed of the data 4.12 0.06 18.66 1.96 H0card plays an important REJECTED 72
    • role in the purchase ofdata cardH7 =After sales service 3.50 0.08 6.25 1.96 H0plays an significant role REJECTEDin the purchase of datacardH8 =Image of the 3.31 0.08 3.87 1.96 H0company plays a vital REJECTEDrole in the purchase ofdata card. 9. Hypothesis: High phone book memory in data cards is an essential feature of the Data card for the consumers purchasing descision. Null Hypothesis H0 = High phone book memory makes a heavy influence in the buying behaviour of the data card. Alternative Hypothesis H1 = High phone book memory does makes any influence in the buying behaviour of Data card. This hypothetical statement is drawn from question no. 14(in likert scale of 1-5) from the questionnaire of annexure 1. To test this hypothesis the researcher has done z-test (two-tailed test) and the inference drawn from the hypothesis is stated below. INFERENCE: The observed value of the test statistic Z is 0.09. At the critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So, the observed value of Z lie in the critical region so therefore we accept the null hypothesis and conclude that high phone book memory is an essential feature in the buying behaviour of Data card. Mathematically: z = x̄ ̄ - µ/S.E of x, where S.E of x̄ = σ/√n The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no response) 73
    • Then the Alternative Hypothesis H1 : µ ≠ 3 = 3.02 – 3/0.22 = 0.09 Since I Z I = 0.09 < 1.96, hence H0 = Accepted.10. Hypothesis Micro SD card slot in the data card is an essential feature of data card, which makes an influence in purchase of Data card. Null Hypothesis H0 = Miro SD card slot plays a significance role in the purchase of the data card. Alternative Hypothesis H1 = Micro SD card slot plays an insignificant role in the purchase of Data card. This hypothetical statement is drawn from question no. 14(in likert scale of 1-5) from the questionnaire of annexure 1. To test this hypothesis the researcher has done z-test (two-tailed test) and the inference drawn from the hypothesis is stated below. INFERENCE: The observed value of the test statistic Z is 1.06 .At the critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So, the observed value of Z lies in the critical region so therefore we accept the null hypothesis and conclude that Micro SD card slot plays a significance role in the purchase of the data card. Mathematically: z = x̄ ̄ - µ/S.E of x, where S.E of x̄ = σ/√n The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no response) Then the Alternative Hypothesis H1 : µ ≠ 3 = 3.18 – 3/0.169 = 1.06 Since I Z I = 1.06 < 1.96, hence H0 = Accepted. 74
    • 11. Hypothesis High storage capacity & supporting SMS facility in a data card plays an important role in the purchase of Data card. Null Hypothesis H0 = High storage capacity & supporting SMS plays a significance role in the purchase of the data card. Alternative Hypothesis H1 = High storage capacity & supporting SMS plays a insignificant role in the purchase of Data card. This hypothetical statement is drawn from question no. 14(in likert scale of 1-5) from the questionnaire of annexure 1. To test this hypothesis the researcher has done z-test (two-tailed test) and the inference drawn from the hypothesis is stated below. INFERENCE: The observed value of the test statistic Z is 1.41. At the critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So, the observed value of Z lie in the critical region so therefore we accept the null hypothesis and conclude that High storage capacity & supporting SMS facility is an essential feature which plays an essential role in the purchase of Data card. Mathematically: z = x̄ ̄ - µ/S.E of x, where S.E of x̄ = σ/√n The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no response) Then the Alternative Hypothesis H1 : µ ≠ 3 = 3.24 – 3/0.17 = 1.41 Since I Z I = 1.41 < 1.96, hence H0 = Accepted.12.Hypothesis 75
    • Making calls & receiving calls is an essential feature of the Data card andplays an important role in the purchase of the Data card.Null Hypothesis H0 = Making calls & receiving calls feature of the Data cardplays a significance role in the purchase of the data card.Alternative Hypothesis H1 = Making calls & receiving calls feature of theData card plays an insignificant role in the purchase of Data card.This hypothetical statement is drawn from question no. 14(in likert scale of1-5) from the questionnaire of annexure 1. To test this hypothesis theresearcher has done z-test (two-tailed test) and the inference drawn from thehypothesis is stated below.INFERENCE: The observed value of the test statistic Z is 1.59. At thecritical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So,the observed value of Z lie in the critical region so therefore we accept thenull hypothesis and conclude that Making calls & receiving calls feature ofthe Data card plays a significance role in the purchase of the data card.Mathematically:z = x̄ ̄ - µ/S.E of x, where S.E of x̄ = σ/√nThe Null Hypothesis is H0 : µ = 3 (where the respondents are giving noresponse)Then the Alternative Hypothesis H1 : µ ≠ 3= 3.35 – 3/0.22 = 1.59Since I Z I = 1.59 < 1.96, hence H0 = AcceptedAnalysis of the factors affecting the buying behaviour of DATA CARDSIGNIFICANT TEST [ASYMMETRY TWO TAILED] 76
    • Statement of Sample Standard Test statistic. Zcritical HypothesisHypothesis deviation Applied Z α=0.05 Status Of the TEST( two mean (x̄) Sample (σ tailed) (Zobserved) x̄)H9= High phone book 3.02 0.22 0.09 1.9 H0memory is an 6 ACCEPTEDessential feature of theData card in theconsumer buyingbehaviour of DatacardH10 = .Micro SD 3.18 0.169 1.06 1.9 H0card slot is an 6 ACCEPTEDessential feature in thepurchase of Data card. H11= High storage 3.24 0.17 1.41 1.9 H0capacity & supporting 6 ACCEPTEDSMS facility is anessential featurewhich plays anessential role in thepurchase of Data cardH12= Making calls & 3.35 0.22 1.59 1.9 H0receiving calls feature 6 ACCEPTEDof the Data card playsan essential role in thepurchase of the Datacard. 13. Hypothesis 77
    • A significant relationship exists between the average monthly usage of internet with the occupation category. Null Hypothesis H0 = Average monthly usage of internet are independent of occupation category. Alternative Hypothesis H1 = Average monthly usage of internet are dependent of occupation. This hypothetical statement is drawn from question no. 8 of the questionnaire in annexure 1. To test this hypothesis the researcher has used Chi-Square test for independence of attribute. The inference drawn from the test is stated below. INFERENCE: The observed value of the test statistic Х2 = 1.34 < 12.592 at 5% level of significance with 6 d.f., i.e., calculated value of Х2 is less then the tabulated value. Hence, we accept the Null Hypothesis and conclude that average monthly usage of internet is independent of occupation. n = 220Observed Degrees of Level of Tabulated Hypothesisvalue freedom significance value status 1.34 6 5% 12.59 H0 ACCEPTED 14. Hypothesis A significant difference lies in the awareness of all the brands available in the market. Null Hypothesis H0 = peoples are equally aware of all the brands available in the market. 78
    • Alternative Hypothesis H1 = peoples are not equally aware of all the brands available in the market. This hypothetical statement is drawn from question no. 18 from the questionnaire of annexure 1. To test this hypothesis Chi-Square test for goodness of fit is done. The inference drawn from the test is show below. INFERENCE: The observed value of the test statistic Х2 = 81.4 > 9.49 at 5% level of significance with 4 d.f., i.e., calculated value of Х2 is more then the tabulated value. Hence we reject the null hypothesis and conclude that the awareness of all the brands available in the market are not equal. n = 250Observed Degrees of Level of Tabulated Hypothesisvalue freedom significance value status 81.4 4 5% 9.49 H0 Rejected 79
    • Chapter 3: Graphs and Charts 1. Have internet connection or not ? total = 340If the avalability of the computer is low, then the probability of having an internetconnection connected to it getting more less, this fact shows that only 64% out of340 are connected to the internet and maximum of them are through GPRS orGSM connections or through landlines. 2. Aware of data card or not? total = 600The awareness about the data card is also low in the market, only 39% ofrespondents out of 600 were aware of data cards, inspite of random advertismentthere is a lot more to be done, we need to educate our potential customers moreabout the product. 80
    • 3. Awareness of Vodafone’s Data card. total = 600The awareness of Vodafones data card is very low in the market, its only 9.5% ofthe total sample, the main reason behind this was because Vodafone doesnotpromote its products actively like others. Vodafone is having world class poducts,but due to lack of promotion the awareness is very low. 81
    • Recommendation And ConclusionPLAYING WITH THE PLC:Vodafone has one of the widest internet data cards range and the deepest productline in internet data card market, its also has broadband business as well as internetconnection GPRS .This is a double edged sword because of the variety Vodafoneoffer and the cannibalization that can occur. The segments thus formed and thecomponents extracted indicate that different buyer groups have different decisionvariables, use data card for accessing internet for different purposes and havevaried perceptions about brands. All the segments require different pricingstrategies and hence Vodafone should come out with different plans specificallytargeting different groups. Vodafone having several types of tariff plan but itwould have improved network connectivity along with aggressive promotionalstrategies can be an unbeatable advantage in upgrading the consumer throughouthis lifetime and also making him brand loyal in the process. From the research, itcomes out that Vodafone is not a user friendly service provider. Users have takento Vodafone essentially because of high recommendation from friends and familyand its image in the market. According to our research high price of data cards andcostly tariff plans could be a deterrent for Vodafone data cards. Hence, Vodafoneshould aim to providing data cards at a competitive price, cost effective tariffplans, and more efficient response to requests.Our analysis indicates clearly reliance is popular among the youth because of lowusage rate. These users use data card mostly for entertainments. This targetsegment can be attracted by advertising in Television and internet. Also, word ofmouth publicity clearly scores above all forms of information search, primarily 82
    • because of its convenience and source credibility. Everybody whom we surveyedbelieved in consulting their “circle” for opinions while buying connectionsRecommendations 4 P’s1. Product:The products launched should focus on improving service response i.e. bettercustomer service and greater network connectivity.2. Price:It should keep focus on reducing usage rates and be a price leader for pricesensitive heavy usage segments.3. Promotions:One important finding of our Consumer Survey was that very low number ofconsumer were aware of the fact that Vodafone has Data cards and different tariffplans. This can be attributed to one or more of the following reasons:The consumers have low involvement and do not search for information. Thisimplies that wireless data card is becoming a commodity. Reliance has spentmostly on advertisements for the mobile business, not on internet data cards.Hence the information available to public is limited. To discommodities thecategory, to increase customer loyalty and repeat purchase, promotions have to bedone on a bigger scale. The promotions should have more of a pull effect in theadvertisements that communicate not just the price and offers/discounts but alsothe values, attributes which the consumer can relate to. In short, more informationhas to be communicated to the consumer through ads, To lift the sales of internetdata card Vodafone can think to adopt of innovative give away strategy, forinstance design laptops with manufactures in such a way that there will be a builtin Vodafone internet data card. It should focus on Television advertising andInternet ads primarily. Print ads do not seem to have that effective influence in 83
    • purchase decisions of the sample. Our analysis has shown that word of mouth(WOM) marketing has a excellent effect on the consumer purchasing decision ofinternet data card. So promotional strategies could be given focus on viralmarketing campaign like on SMS, e-letters or blogs and so forth.4. Place:Vodafone should strengthen its distribution network and also focus on creatingmore Vodafone stores with easy accessibility outside cities as they are perceived tobe authentic by consumers.Note: The recommendations have limitations of a small sample size and a simplesampling.CONTINUE WITH UPGRADATIONVodafone has been very successful in its strategy of upgrading the consumer in themobile business segment. Vodafone has made sure that it makes its consumersmove up the product chain by introducing new, technologically superior productsand phasing their PLC very well. But sadly, this approach is missing in thewireless data card segment. Though there are 3 variants, there has been no effortmade to communicate to the consumer of the superior quality and attributes.Hence, we suggest that Vodafone should adopt its “upgrading the consumer”strategy for the internet data card segment also. This up gradation has 2 mainadvantages : Vodafone can fully leverage the Product life cycle and the individualphases of the products in different markets and Vodafone can make the consumerloyal to the brand over his lifetime.Future challenges 84
    • Introduce a product which would be designed specifically for Indian consumer andsatisfy aspiration of youths. To match the increased demand patterns in thecountry. Launching of innovative products in regular and short intervals Vodafoneproducts are descending the customer value hierarchy from that of a potentialproduct towards an expected product. Competitors like Tata-Indicom, Reliancecommunication, are moving up the hierarchy. So, Vodafone will find it tough tocharge the moderately high price it has tilled now charge. It is also highly likelythat Vodafone may not fully absorb the consumers who upgrade from slow speedinternet connection device USB modem to broadband. Hence, Vodafone’s marketshare might not grow as good as their competitor Tata-Indicom, RelianceCommunication or BSNL. Vodafone’s major challenge lies in entering thepremium market through an upgraded version of wireless data card the way it didin mobile business.Store Centric RecommendationsIn order to increase the Vodafone wireless data card sales in exclusive Vodafonestores and other franchisees across the country management has to take someaggressive steps to ensure that customers who are evaluating alternatives arecoming in store for purchasing a Vodafone data card. According to our researchoutcomes some following measures can be taken: • Management has to ensure that Customer service executives especially those who are dealing with internet connections and data cards and also other telecom products, have exhaustive knowledge about their own products. • Customer service executives should be given special behavioral training to recognize the customers’ expectations and convey the all benefits of the product accordingly. 85
    • • Management has to ensure that their sales persons are updated with new schemes regarding product. • Product knowledge as well as sales techniques of the sales personnel should be reviewed frequently by the senior management. • Customer service executives should be remained motivated through various incentives which are only proportionate to their target achievements.SegmentationIn the wireless data card market there exist different categories of customers whohave different needs and are willing to pay different amount for the product thatmeets their demand. Introduction of upgraded version of wireless data card forinstance Vodafone recently launched wireless data card specially meant for thosewho frequently travel abroad would help Vodafone identify the needs of thecustomers and take advantage of the segment which has not yet been targeted bythe company. Price sensitivity, importance of attributes, point of purchase decisionmakers and customers influenced by additional features are the factors on whichwe will segment the upgraded internet data card market.Segment one- is most prices sensitive and values additional feature the least. AsVodafone is not an economic brand which focuses on differentiating its productsfrom the competitors and upgrading the customers in the value chain, targeting thissegment will be a strategically appropriate decision.Segment two- is more influenced by attributes of the products and is not a pricesensitive segment. Vodafone through its wireless data card is currently catering tothis segment. 86
    • Segment three- is concerned about the attributes, additional features as well asprice. 87
    • Annexure 1 QUESTIONNAIRE1. What is your Age?_______________________2. Your occupation? a. Student b. Service holder c. Business men2. Do you use PCs of Laptop? a. Yes b. No3. If you have a PC or Laptop then, do you have an internet connection on it? a. Yes b. No4. Are you aware of internet data cards? a. Yes b. No5. If you have an internet connection, then what kind of connection do you have? a. Data card b. Use mobile phone to connect to the internet c. Use landline connection to connect to the internet d. Other types of connections6. If you have an internet connection, then which service provider is providing you this service? a. BSNL b. Reliance Communication c. Tata indicom d. Vodafone e. Airtel 88
    • f. Others7. In a month, on an average how many hours do you use internet? a. 10 hrs to 15 hrs or >500 MB b. 15 hrs to 30 hrs or 500 MB to 1 GB c. 30 hrs to 45 hrs or 1 GB to 2.5 GB d. 45 hrs & above or 2.5 GB and above8. If you use internet regularly, then what is your average monthly expenditure? a. Between Rs 300 to Rs 350 b. Between Rs 350 to Rs 500 c. Between Rs 500 to Rs 800 d. Rs 800 and above9. If you are using internet, then what is your purpose behind using it? a. For work purpose b. For entertainment c. For business d. To collect information10. What is your initial setup cost? a. Below Rs 1500 b. Between Rs 1500 to Rs 2500 c. Between Rs 2500 to Rs 3500 d. Rs 3500 and above11. Suppose you want to purchase an internet data card, please rate the importance of the following factors in selecting a data card. Factor Not Less No Importan Very Importan Importan respons t Important t t e 89
    • Price of Data card 1 2 3 4 5 Installation process 1 2 3 4 5 Durability 1 2 3 4 5 User friendly 1 2 3 4 5 Tariff plans 1 2 3 4 5 Speed 1 2 3 4 5 After sale service 1 2 3 4 5 Image of the company 1 2 3 4 513. Are you aware of Vodafone data card? a. Yes b. No14. Which of the following features do you rate as important at the time of making purchase of data card?Please rate the following 1- as least important and 5- as more important. Feature Not Less No Importan Very Importan important respons t Important t e High phone book memory 1 2 3 4 5 Micro SD card slot (expandable 1 2 3 4 5 memory)Supports SMS(High storage 1 2 3 4 5capacity)Make and receive voice calls 1 2 3 4 516.Which company’s data card do you use? a . BSNL c. Tata Indicom d. Airtel 90
    • e. Reliance f. Vodafone 17. At the time of purchasing a data card of Vodafone which factors do you consider ismore important and less important? Please rate the following as 1 to 5. Factor Not Less No important Very Importan Importan respons Important t t e Cost of Data card 1 2 3 4 5 Installation process 1 2 3 4 5 Durability 1 2 3 4 5 User friendly 1 2 3 4 5 Tariff plans 1 2 3 4 5 Speed 1 2 3 4 5 After sale service 1 2 3 4 5 Image of the company 1 2 3 4 5Q.18 . From where did you get the information about datacard? a. Friends b. Family c. Advertisement(television) d. Advertisement(other sources)Q.19. Which brands Data Card are you aware off? a. Reliance b. Tata Indicom c. Vodafone d. Bsnl e. Airtel BibliographyInformation has been sourced from namely, books, newspapers, journals, industry portals,government agencies, industry news and developments and through access to database.  http://www.capitaline.com/ 91
    •  http://www.wikipedia.org/ http://www.oecd.org/ http://www.legalserviceindia.com/ http://www.dot.gov.in/ http://www.economictimes.indiatimes.com/ http://www.ibef.org/ http://www.domain-b.com/ http://www.trai.gov.in/ http://www.perry4law.wordpress.com/ http://www.financialexpress.com http://www.pib.nic.in/ http://www.emeraldinsight.com/ http://www.search.epnet.com/ http://www.rcom.co.in http://www.airtelworld.com http://www.vodafone.in http://www.airtel.in http://www.tataindicom.com http://bsnl.co.in http://www.ibef.org/industry/telecommunications.aspx http://economictimes.indiatimes.com/News/News-By-Industry/Telecom/GSM-CDMA- players-maintain-subscriber-growth-momentum/articleshow/4281903.cms http://in.news.yahoo.com/139/20090404/868/ttc-dot-directs-ban-on-usage-of- chinese.html http://www.netweavermagazine.com/archive/Volume_02_(2006)/Issue_02_(Spring)/v2i2 a09.cfm 92
    •  Frost & Sullivan (2007), “Telecom – Catalyzing India’s New Economy” Marketing Research “An Applied Orientation”- Naresh K. Malhotra Banka Sanjoy (2006), “Mergers and Acquisitions in Indian Telecom Industry-A Study” Jain Rekha (2001), “A review of The Indian Telecom Sector” Fortis Investments (2006),”Global Telecom Sector” Sharma Seema and Lokesh Singla (2009), “Telecom equipment Industry: Challenges and Prospects” Bhattacharya Manas (2000), “Telecom Sector in India: Vision 2020 Levy & Weitz, Tata McGraw-Hill Publishing Company Limited, 2006. Daft, Richard L. Organization Theory & Design. Thomson/ South-Western, 2007. Miller, Chris. SAP NetWeaver Magazine. 2006. Marketing Management – Philip Kotler 2001. 93