Survey On Mobile Phones And Their Defects(Indian Context)
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Survey On Mobile Phones And Their Defects(Indian Context)

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Hello Everyone, ...

Hello Everyone,

We would like to take the internet medium to share with you the work done by Me and my friend. We belong ot the MBA(Tech.) course from NMIMS, bacth of 2004-09, telecom, 5th year.

In the period from Nov'07-Feb'08, we did a survey on the defects in the handsets circulating in the indian mobile market and the levles of customer satifsfaction prvaling. The survey was of 309 samples among college going students from various parts of the city. We got some shocking results:
1. 28% of all phones circulating in the market are defective as these defects have occured due to internal problem of the phone and they have occure within 1 year of purchase.
2. It takes an average of 7 days to 22 days to get a phone repaired and 38 days to 88 days to get the phones replaced.
3. If asked would you like to buy the phone from the same company again: 11% of the population said that they would not like to buy the phone from the same company again. 35% is unsure on the decesion, while the remaining 54% would like to buy the phone from the same company again.

The survey included Nokia, Sony Ericsson, Motorla, Samsung, LG, O2, the distribution is as given in the report.

We would happy if the media wishes to publish this report. All the data is well documented and we have the real data supporting it.

For any enquiries, We can be reached at
jai.awatramani@gmail.com
aliasgaryn@yahoo.com

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Survey On Mobile Phones And Their Defects(Indian Context) Survey On Mobile Phones And Their Defects(Indian Context) Presentation Transcript

  • Survey on Mobile Phones and their defects JAI AWATRAMANI & ALIASGAR NAVAGHARWALA MBA(Tech.), Telecom, Class of 2004-09 NMIMS University The study result is intended to give understanding of the Indian Mobile Phone Market in terms of the defects that occur in Mobile Phones, Customer Satisfaction to complaint handling and Customer Loyalty.
  • Executive Summary India and the Indian Telecommunications Market Mobile phone production growth •The Second fastest growing economy. estimation in India •The fastest growing telecom sector of the • CAGR of 28.3 per cent from 2006 to 2011, world. Teledensity of more than 28%. totalling 107 million handsets by 2010. •300 million mobile connections • Revenues CAGR of 26.6 per cent from 2006 The Stretch of Mobile Phone to 2011, touching US$ 13.6 billion Teenager to 75 year old • Urban to Rural • Multimedia Rich to Plain • vanilla Rs.1500 to Rs.50,000 • More than 10 brands for • options More than 150 options • Available Everywhere • Highly Marketed • Prices Declining by the day • Niche Players also starting to • gain increasing market share
  • Executive Summary The Survey • Need for the Research • In the Month of October-November a spate of incidents among friends with regard to defects occurring with their Mobile Phones prompted us to discuss the issue • A deeper observation revealed that there are many defects and there is a decreasing level customer care by service centers to defects complaints, leading to frustrations among the user • The two researchers being from the field of telecom further generated huge curiosity to do a sample survey study and see the actual statistics prevalent. What did we measure? Survey Details • The Mobile Phone Manufacturer • Sample Size – 309 • The Price of Mobile Phone • Duration – Nov’07 – February’08 • The Type of Defect • Total Cost of phones measured – • Rectification of Defect? 30 lakhs • Days required for Rectification • Location of Rectification • Customer Satisfaction to Complaint handling • Satisfaction to Current working of Phone • Changeover Chance
  • 28% of Phones sold in market have The Results manufacturing defect Proportion of Defective Phones Due to Internal Problem occuring within 1 year from the date of Purchase from the total sample Average time To get phone repaired – 16 days Average time To get phone replaced –>30 days 87, 28% 38% of the Yes people who visited 23, 38% No authorized service center were not satisfied with the way their 38, 62% 222, 72% complaint was handled 20% are of total respondents are not satisfied with current Would you like working of their Phone to purchase the phone from the 61, 20% same company again 108, 35% Maybe No 166, 54% Yes 35, 11% 248, 80%
  • Mobile Phones and their Defects Research problem • A study of defects in Mobile Phones, the rectification process and its effect on Customer Loyalty. OBJECTIVE • To study the percentage of defective phones in the market • To study the time taken for rectification. • To study customer satisfaction towards rectification process and Customer loyalty towards the handset manufactures.
  • VARIABLE CLASSIFICATION • Dependent Variable: Defects • Intermediate Variable: Rectification Process • Independent Variable: Customer Satisfaction & Customer Loyalty
  • Operational Definitions • Defect in Phone: - Malfunctioning of the Handset in certain identified areas • Multiple occurrence of Defect: - Defect occurring more than once (whether same or a different defect) in the phone lifetime. • Software • Keypad • Hearing • Type of Defect: • Headphones/ • Display • External Body Attachments • Speakers • Joystick • Network • Cause of defect: - Whether the defect is within the phone or cause by some mistake from the user • Rectification of Defect: - A defect can either be rectified or replaced.
  • Operational Definitions • Place of Rectification: - Defective phones are rectified at any Provate Shop or Authorized Service Center • Time required for rectification: - No. of Days • Satisfaction for complaint handling: - Are the customer satisfied or unsatisfied with the way their complaints are handled • Customer Satisfaction for current working of Phone: - Regardless of defect or no defects • Customer Loyalty occurring from various factors: - How many users would like to purchase from the same manufacturer again.
  • HYPOTHESIS Hypothesis framed based on possible manufacturing standards and service levels timing given to solving customer complaints Hypothesis 1. 99% phones do not have manufacturing defect 2. 90% is the service level of complaints. 90% of all phones need repairing should be repaired within 2 days. 3. 99% of the people will always be loyal to manufacturer of the current handset they are using
  • Scope of the Research • Majorly College going students • Convenience method of random sampling was adopted
  • Research Tools • Checklist with 4 parts • Part 1: Customer Demographics • Part2:Defect occurrence in Mobile & Defect detailing • Part3:Customer Satisfaction to the way the Complaint was handled • Part4: Satisfaction towards the current working conditions of phone and loyalty towards company.
  • Sampling Design – How was the sampling done The population consists of every college student owning a Mobile Phone. Colleges are chosen because in Mumbai, colleges have students coming from every part of Mumbai. The population estimation of this sample covers all age groups as fundamentally the different mobile phones used in al age groups remains the same.
  • Information Flow Chart
  • Objective 1 To find out the percentage of defective mobile phones circulating in the market, the type of defect, cause of defect and occurrence of defect. Hypothesis 1: - 99% phones do not have manufacturing defect • • Question 1: How many mobile • Question 2: Cause of defect? handsets in the market are User Mistake or Internal defective? Problem? – Total defect - 129 No Yes 26, 20% 129, 42% Your Mistake Internal Problem of the Phone 180, 58% 103, 80%
  • Objective 1 To find out the percentage of defective mobile phones circulating in the market, the type of defect, cause of defect and occurrence of defect. • Question 4: Out of the total 4: • Question 3: When did the sample how many were defective defect occur from the date of due to internal problem of the purchase? phone within the first year from the date of purchase of the phone? 120 100 Proportion of Defective Phones Due to Internal Problem 100 occuring within 1 year from the date of Purchase from the total 84 sample 80 71 87, 28% 60 Yes 47 No 40 22 20 222, 72% 0 1) Within 1 2) Within 3 3) Within 6 4) Within 12 5) More months months months months than 1 yr Percentage Cumulative Percentage
  • FINDINGS OF OBJECTIVE 1 • 42% phones sampled are defective • 28% are visibly due to internal problem of the phone as the defect has occurred within 1 year from the date of purchase and it is due to internal problem. • 71% of the defects take place with 6 months of purchase
  • TESTING OF HYPOTHESIS 1 • Null Hypothesis: - 99% phones do not have manufacturing defect • The data shows that 28% of the Mobile Phones have inherent manufacturing defect when they are sold • Hence • Null Hypothesis is “Rejected”
  • Objective 2: To find out where did the customer rectify his handset and in how many days Hypothesis 2: - 90% is the service level of complaints. 90% of all 2: • phones need repairing should be repaired within 2 days. Question 6: What was the • Question 7: Of the phones which • number of phones that were were repaired/replaced where the user repaired replaced or were not did got it repaired from i.e. Authorized rectified by the user? Service Centre or Private Shop? Authorized Service Centre 12, 9% 18, 14% Private Shop Not Rectified Repaired Replacement 50, 45% 61, 55% 99, 77%
  • Objective 2: To find out where did the customer rectify his handset and in how many days • Question 8: Of the total number of the phones which were repaired/replaced where did the user got it repaired from i.e. Authorized Service Centre or Private Shop? Replacement Authorized Service Centre Replacement Private Shop 3, 25% 47, 47% 52, 53% 9, 75% Repaired Authorized Service Centre Repaired Private Shop
  • Objective 2: To find out where did the customer rectify his handset and in how many days • Question 9: How many days it took for the Authorized Service Centre and the Private Shop to get the defect rectified? Replacement (days) Repaired (days) N 12 N 99 Average 55 Average 16 Upper Limit 76 Upper Limit 21 Lower Limit 33 Lower Limit 10 Replacement Repaired Authorized Private Shop Authorized Private Shop N 52 47 N 9 3 Average 15 17 Average 63 30 Median 6.5 5 Upper Limit 88 103 Mode 1 2 Lower Limit 38 -42 Upper Limit 22 25 Lower Limit 7 8
  • FINDINGS OF OBJECTIVE 2 • Defects were rectified in the following manner – 45% in Private shop, 55% in ASC • Average time to get phone repaired from either an authorized service centre or private shop is 16 days and time taken to get replaced is 55 days.
  • TESTING OF HYPOTHESIS 2 • Null Hypothesis: - 90% is the service level of complaints. 90% of all phones need repairing should be repaired within 2 days. • The data shows that population average time taken for repairing a phone takes 7days to 22 days whereas for replacement takes 38 days to 88 days this leads us to reject the null hypothesis. This shows us the significant amount of time taken to get a defective handset sold by the manufacturer to repair or replace it. • Null Hypothesis is “Rejected”
  • Objective 3 To study customer satisfaction towards rectification process and current working of phone and Customer loyalty towards the handset manufactures. • Hypothesis 3: - 99% of the people will always be loyal to manufacturer of the current handset they are using • Question 10: What was the satisfaction level of the people who visited the Authorized Service Centre/ Private Shop to get their phone rectified (replaced/repaired)? No Private Shop Yes 23, 38% 23, 44% 29, 56% 38, 62% No Authorized Service Yes Center (ASC)
  • Objective 3 To study customer satisfaction towards rectification process and current working of phone and Customer loyalty towards the handset manufactures. • Question 11: How many • Question 12: What is the12: respondents of the total sample Brand Loyalty of the users? are currently satisfied with the working of their phone? Would you like to purchase the phone from the same company again? 61, 20% 108, 35% Maybe No 166, 54% Yes 35, 11% 248, 80% No Yes
  • Objective 3 To study customer satisfaction towards rectification process and current working of phone and Customer loyalty towards the handset manufactures. • Question 13: What is the relationship between the performance of the phone and loyalty towards company? 160 Are You Satisifed with working of Your Phone = Yes, Would You Purchase from the Same company Again? - YES/NO/MayBe 140 120 85, 34% Maybe 100 Count No Yes 80 152 152, 62% 60 11, 4% 85 40 Are you satisfied with the working of your Phone now = No, 20 Would you Purchase from the same company Again? - YES/NO/MayBe 24 23 14 11 23, 38% 14, 23% 0 Yes No Maybe Yes No Maybe Yes No Maybe Are you Satisfied with Working of Phone and No Would You Purchase from the same company Again Yes 24, 39%
  • Objective 3 To study customer satisfaction towards rectification process and current working of phone and Customer loyalty towards the handset manufactures. • Question 14: What is the relationship between defect occurrence of phone and satisfaction with current working of the phone? Did The Phone ever had a defect = No Are You satsified with the working of your Phone Now -YES/NO Did The Phone ever had a defect = Yes Are You satsified with the working of your Phone Now -YES/NO 61, 20% 52, 40% No No Yes Yes 77, 60% 248, 80%
  • Objective 3 To study customer satisfaction towards rectification process and current working of phone and Customer loyalty towards the handset manufactures. Question 14: What is the percentage of respondents who have • faced a defect within 1 year from the date of purchase and the loyalty towards the company to buy from the same manufacturer? Defect occured within the warranty period, and loyalty towards brand 45, 41% 46, 42% Maybe No Yes 18, 17%
  • Objective 3 To study customer satisfaction towards rectification process and current working of phone and Customer loyalty towards the handset manufactures. • Question 14: To find the relationship between a defective piece and its effect on customer loyalty
  • FINDINGS OF OBJECTIVE 3 • Of the entire sample, 54% would like to buy the phone from the same company again, while 11% would not and 35% are unsure. •When a phone does not has a defect 62% would like to buy the phone from the same company again, while when the phone has a defect only 43% would like to buy the phone from the same Loyalty company again. Defect YES NO MAYBE Defective Phone 43 16 41 No defects 62 8 30 • Customers having a defective handset: - 38% were unsatisfied with complaint handling. • Phone Rectified to a Private Shop Centre, “44%” were not satisfied with the way their complaint was Handled.
  • TESTING OF HYPOTHESIS 3 • Null Hypothesis: - 99% of the people will always be loyal to manufacturer of the current handset they are using • The above data shows us 11% of the population would not like to buy the phone from the same company again, whereas 35% is unsure. This leads us to reject the null hypothesis. Our analysis also shows us the relationship between defective handsets and loyalty. If defects were to be zeroed customer loyalty would increase to 62% directly affecting the cost of marketing. gives us a clear results whether to accept or reject the null hypothesis, while point 2 gives us ways to improve loyalty by having defect free handsets. • Null Hypothesis is “Rejected”
  • Recommendations • Lower Defects increase loyalty • Lower customer dissatisfaction towards complaints handling increase loyalty • Regulator should set quality benchmarks • The Price paid should be worth the service.
  • Following was the share of various phones surveyed Nokia – 213 • Sony Ericsson – 47 • Motorola – 24 • Samsung – 11 • LG – 7 • O2 – 3 • Others- 4 • • Total - 309 samples. • Based on purely random sampling
  • For any further enquiries contact jai.awatramani@gmail.com aliasgaryn@yahoo.com