Perceptual mapping of key telecom operators in mumbai
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Perceptual Mapping of Key Telecom Operators in Mumbai

Perceptual Mapping of Key Telecom Operators in Mumbai

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  • 1. 1WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCHSPECIALISATION PROJECTONPerceptual Mapping of Key Mobile telecom operators:A study on telecom subscribers in MumbaiBYAnup PawaskarPGDM e-Biz 2011 – 13 (Marketing)ROLL NO: - 14PROJECT FACULTY GUIDEPROF. Prof. Jyoti Kulkarni
  • 2. 2PROJECT COMPLETION CERTIFICATEThis is to certify that project titled “Perceptual Mapping of Key Mobile telecom operators:A study on telecom subscribers in Mumbai” has been successfully completed by Mr. Anup A.Pawaskar in partial fulfillment of his two years full time course ‘Post Graduation Diploma inManagement’ recognized by AICTE through the Print. L. N. Welingkar Institute of ManagementDevelopment & Research, Matunga, Mumbai.This project in general is done under my guidance.(Signature of Faculty Guide)Name: ______________________Date: ______________________
  • 3. 3ACKNOWLEDGEMENTAny successful project is a teamwork that reflects the contribution of many people. I would like tothank everyone who has contributed to this effort by sharing their time and taking interest in my projectand encouraging me all the way through.In particular, I would like to thank my Project Guide Prof. Ms. Jyoti Kulkarni for her immenseguidance and support towards the project. I would also like to express my gratitude to Group DirectorProf. Dr. Uday Salunkhe and the Dean of E-biz program Prof. Dr.Pradeep Pendse .Finally, I would like to thank my classmates, family and friends who have contributed to this researchproject in their own special way.
  • 4. 4AbstractThe title of my project was Perceptual Mapping of Key Mobile telecom operators: A study on telecomsubscribers in Mumbai .The purpose of this project was to find the market space occupied by differentmobile-operators brands in the minds of telecom subscribers in Mumbai in a visual format i.e. bydrawing perceptual maps. It also aimed to find out what are the top important factors that consumersconsider while making a choice of selecting a mobile operator. Finally the project intended to explorepossible positioning strategies for telecom players. By finding visible voids (or empty spaces) in theperceptual mapping results. A statistical technique called Discriminant analysis method was used todraw the perceptual maps.Attributes, like cheap-Tariff, transparency in billing, network-quality, customer-service, easyavailability and customized plans/offerings were selected for comparing the mobile operators anddrawing the perceptual maps. An online questionnaire was administered to collect the responses.The operators seem to differ significantly on perceived network coverage. Also none of the operatorsseem to fit well with the attribute of fair and transparent billing and deductions.
  • 5. 5
  • 6. 6Table of ContentsAppendix.................................................................................................................................................. 1Acknowledgement.................................................................................................................................... 3Abstract.................................................................................................................................................... 4Appendix B (Synopsis)............................................................................................................................... 4Introduction ............................................................................................................................................. 6Literature Review ..................................................................................................................................... 7Work done by researchers on this topic..................................................................................................... 7Problem Definition.................................................................................................................................... 9Research Methodology ............................................................................................................................. 9Questionnaire......................................................................................................................................... 10Analysis.................................................................................................................................................. 12Management Implications of the Study ................................................................................................... 23References.............................................................................................................................................. 24
  • 7. 7Perceptual Mapping of Key Mobile telecom operators: A study on telecomsubscribers in MumbaiA. IntroductionThe Indian telecom sector has seen phenomenal growth over the past decade. With around 89.55 croretelephone connections (86.42 cr. mobile and 30.79 cr. fixed lines), India, today, is the second largesttelecom market in the world. The sector has also been the driver of Foreign Direct Investment and FIIflows into our country. The total revenue of the Telecom Services Sector was US$ 34,344 million (171,719 crore) in 2010-11, with a y-o-y growth of 8.69%.However, the Indian telecom market is considered to be one of the toughest one in the world to operatein. The last decade has seen the emergence of 12 to 13 mobile telecom players in India. The dominantplayers are Airtel, Reliance-Telecom, Vodafone, Idea cellular and BSNL/MTNL. Besides these, thereare many smaller players like Tata Indicom and Aircel, MTS and Videocon with operations in only afew states. The launch of per second billing has further intensified the competition in the market. It haseven lead to structural defects in the industry with abnormally high rotational churn. This indicates theuse and throw phenomenon prevailing in the market, which leads to excessive payouts by the telecomfirms for SIMs and rotational churn. The monthly churn over a three-year period has nearly doubled to12 to 13 per cent levels. Resources are being pumped in for customer acquisition and they are beingserviced at unsustainable price points. The other natural fallout of the hypercompetitive markethas been the free fall in tariffs over the last three years, dropping by over 40 per cent. Tariffs in Indiaare now among the lowest in the world. In fact, such a market has created unsustainable models wheresome telecom players are offering services at prices that do not even justify their marginal costs.Since the mobile telecommunication market in India has reached its maturity stage, the net return oninvestments in mature markets could be much higher for retention strategies than to attract newcustomer’s strategies particularly, for companies with an established customer base (Zeithaml, Berryand Parasuraman, 1998). With increase in supply of mobile services, there is an improvement inquality, which has resulted in mobile service being treated as commodity like Fast Moving ConsumerGood (FMCG). The Indian mobile service market is very price sensitive so the, service operators tryingfor customization and inventing new pricing models to attract all segments of customers. Operatorshave to develop well-woven network for retailing the mobile services through company branded shops,distributors, dealers, retailers and direct sales agents. The customers are well educated and makeconscious decisions. They are vocal about the deficiencies and are asking for more freebees. So, focuson branding strategies services by cellular operators especially become relevant in the present context.B.Literature ReviewPerceptual Mapping is a marketing research technique in which consumers views about a product aretraced or plotted (mapped) on a chart. Respondents are asked questions about their experience with the
  • 8. 8product in terms of its performance, packaging, price, size, etc. Theses qualitative answers aretransferred to a chart (called a perceptual map) using a suitable scale (such as the Likert scale), and theresults are employed in improving the product or in developing a new one. It has been used as astrategic management tool for about thirty last three decades (Green and Wind, 1975). Perceptualmapping offers a unique ability to understand market structure, analyzing the complex relationshipsamong marketplace competitors and the criteria used by buyers in making purchase decisions andrecommendations. Its powerful graphic simplicity appeals to senior management and can stimulatediscussion and strategic thinking at all levels of all types of organizations. Perceptual mapping is a toolthat helps market researchers visually represents customers’ perceptions of products, attributes, brands,promotions or services (Jawarharlal and Kumar, 2004). It is used to satisfy marketing and advertisinginformation needs related to product positioning (DeSarbo and Rao, 1984; Wind, 1982), competitivemarket structure (Srivastava et al., 1984).There are two approaches to perceptual mapping: Attribute based and Non-Attribute based. This studywas conducted using the attribute based approach. The respondents were asked to evaluate brandsbased on attributes perceived by them when selecting a telecom operator. (Lonergan, 1999) stated thatcustomer churn remains a major challenge for cellular operators. Most common cause of churn amongcellular customers is switching to another service/tariff plan offered by different cellular operators.C. Work done by researchers on this topic1. For years perceptual maps on analgesics showed a big hole where strength (effectiveness) was pairedwith gentleness. The strong/gentle part of the map was always empty, and everyone knew why—anover-the-counter analgesic could not be made that was potent yet didnt irritate the stomach. The launchof Extra-Strength Tylenol in 1975-76 proved everyone wrong by filling this gap
  • 9. 92. Chadha and Kapoor 2008 had conducted perceptual mapping of selected insurance companiesin the Insurance sector and justified the importance of perceptual tools for the marketers. Theresultant perceptual map along with some of the key findings of that study are given below: Both, ICICI Prudential and BAJAJ Allianz life seemed to be stronger on dimension 1 comprising ofCRM practices and having good advertisement and promotional campaigns. Customers identify HDFC Standard life insurance brand by Transparency in contracts, CRM practicesand Promotional campaigns. However, the products quality and services of intermediaries’ vectors arein the opposite direction thus, representing lower association with HDFC Standard life insurance. Birla Sunlife insurance and Max New York life insurance brands count more on product quality andservices of intermediaries. The perceptual map shows that customers do not associate Birla Sun life insurance brand and Max NewYork life insurance brand with good advertisement and promotional campaigns.3. A similar study of plotting perceptual maps for telecom operators was conducted in Haryanaamong management graduates. (2011, Ashutosh Nigam and Rajiv Kaushik).It had made use ofsix attributes namely availability, quality of customer service, price, network quality andfidelity. Convenience and customer perception of quality emerged as the most important factorin shaping consumer perception. It made sense to apply such a study in the city of Mumbai,which is perhaps the most important market in India for telecom players. It has the highestAverage Revenue per User (ARPU) in the country of Rs. 460 per month.
  • 10. 10D. Problem DefinitionWith the help of existing research papers that were studied for the current research it was thatperceptual mapping for the Indian telecom brands can provide marketers with insights as to where theirbrands stand from the customer’s point of view with respect to different parameters. So, the mainobjective of this study is to draw a perceptual map of key mobile telecom operators in Mumbai usingattribute based perceptual mapping technique. The study was aimed to understand the following:1.) The market space occupied by different Mobile-operators brands in the minds of telecomsubscribers in Mumbai2.) What factors do consumers consider while making a choice of selecting a mobile operator andtheir relative importance of these factors?3.) Possible Positioning strategies for new and existing telecom players.i.e are there any visiblevoids (or empty spaces) seen in the perceptual mapping results?E. Attributes considered for the studyUser of a service have predetermined and usually well-defined expectations. These expectationsmainly focus on usability, ease of interaction and performance of the system. This results in what istermed as the Quality of Experience (QoE).It can be simply defined as the overall acceptability of anapplication or service, as perceived subjectively by the end-user. For the user to be satisfied with theexperience, his or her expectations must be met. As per a white paper released by Nokia on QoE ,attributes such as cost, reliability of network , availability, customer-service, usability, utility andfidelity are identified to be critical for determining QoE of mobile networks.F. Research MethodologyThe top eight telecom service providers in Mumbai were selected for the project based on the numberof subscribers. A total of 131 respondents were selected from the city of Mumbai. Conveniencesampling method was used for selecting the sample of respondents. A quantitative questionnaire wasprepared keeping in mind the objectives of the study. The data was collected through online mediumsuch as email and social media websites.In order to achieve the objective of the study, discriminant analysis was used to identify the attributesthat are best associated with the particular telecom brand. Then Perceptual maps were drawn to identifythe market space occupied by each of the brands along these attributes. There was an investigation tosee if there exists any “void spaces” in the perceptual map along which a new or existing brand can bepositioned. Also, the importance of various factors considered by consumers while selecting a telecomservice provider was evaluated. The study used Microsoft Excel 2010 and IBM SPSS v.20 for purposeof data analysisG. Questionnaire
  • 11. 111. Name :___________________2. Age:_______ yearsGendero Maleo Female3. Which of the following telecom operator do you currently use? *o Airtelo Vodafoneo Relianceo Ideao Tata DoCoMoo Aircelo MTNL Trumpo Other: ________4. How much do you spend monthly on your mobile bill/recharges? *o Less than Rs.100o Rs. 100 to Rs.200o Rs. 200 to Rs. 300o Rs.300 to Rs.400o Rs. 400 to Rs. 500o Rs. 500+5. How much do you spend monthly on your data packs (2G/3G) recharges? *o I don’t use Internet on mobileo Less than Rs.100o Rs. 100 to Rs.200o Rs. 200 to Rs. 300o Rs.300 to Rs.400o Rs. 400 to Rs. 500o Rs. 500+7. The call tariff charged by my telecom operator are cheap and competitive compared to other telecom players *1 2 3 4 5 6 7Strongly Disagree Strongly Agree8. The billing and deduction of balance done by my telecom operator is always fair and transparent *1 2 3 4 5 6 7Strongly Disagree Strongly Agree9. My telecom operator allows me to have a clear conversation without interruptions, call drops etc. wherever Igo *1 2 3 4 5 6 7Strongly Disagree Strongly Agree10. I can proudly say that my telecom operator has the "Best National Coverage in India"1 2 3 4 5 6 7Strongly Disagree Strongly Agree11. On calling/visiting the customer service center of my telecom operator, my query is resolved in quick time &in a proper manner *1 2 3 4 5 6 7
  • 12. 12Strongly Disagree Strongly Agree12. The customer service staff of my telecom operator is very knowledgeable *1 2 3 4 5 6 7Strongly Disagree Strongly Agree13. Based on the experience with my current mobile operator, I dont think I will be changing my existing telecomoperator in coming 6 months *1 2 3 4 5 6 7Strongly Disagree Strongly Agree14. I would definitely recommend my friends to use the data services (2G/3G) offered by my telecom operator *1 2 3 4 5 6 7Strongly Disagree Strongly Agree15. The recharge packs for my telecom operator are available almost everywhere in Mumbai quite easily *1 2 3 4 5 6 7Strongly Disagree Strongly Agree16. My telecom provider provides a wide range of tariff plans (for calls/data etc.) suitable to my every need *1 2 3 4 5 6 7Strongly Disagree Strongly Agree17. While choosing a mobile telecom operator...rate your level of agreement/disagreement w.r.t. the importancegiven to following factors *StronglyDisagreeDisagree Neutral Agree StronglyAgreeEasy Availability ofRecharge PacksLow/Cost effective TariffplansLevel-of-CustomerServiceNetwork CoverageCustomization of callingand data planValue added services like(Caller-Tunes,Ring-Tones,Cricket updates)
  • 13. 13ANALYSIS
  • 14. 14Analysis of Primary DataA total of 131 responses were collected by administering an online questionnaire. The respondentswere from the city of Mumbai and adjoining areas. The primary data collected was analyzed through aseries of validated tools and procedures. The sample respondents were in the age group of 18-40 years.Close to 55% of the respondents were employed professionals while around 39% were studentsstudying in either undergraduate or post-graduate courses.1.) Demographic Characteristics of RespondentsTable 1. (a) GenderTable 1. (b) Age GroupAge Group Frequency Percentage18-24 80 61.0725-29 43 32.8230+ 8 6.11Total 131 100Table 1. (c) OccupationOccupation Frequency PercentageStudent 51 38.93Employed 72 54.96Housewife 8 6.11Total 131 100Gender Frequency PercentageMale 87 66.41Female 44 33.59Total 131 100
  • 15. 15The respondents were asked about the brand of cellular operator they currently use, the amount spentmonthly on voice and text and also the amount spent on data services like 2G/3G.2.) Mobile Cellular Brands used by the sample respondents and monthly spendingTable 2. (a) Brands used by RespondentsTable 2. (b) Spending on Voice and Text SMSTable 2. (c) Spending on Data Services (2G/3G)Monthly Spend on 2G/3G Frequency PercentageDon’t use Internet onmobile23 17.56Less than Rs.100 35 26.72Rs. 100 to Rs.200 45 34.35Rs. 200 to Rs. 300 12 9.16Rs.300 to Rs.400 8 6.11Rs. 400 to Rs. 500 3 2.29Rs. 500+ 5 3.82Total 131 100Brand Frequency PercentageVodafone 48 37.40Airtel 25 19.08Tata DoCoMo 15 11.45Aircel 10 7.63Idea 10 7.63Reliance 9 6.87MTNL Trump 7 5.34Loop Mobile 7 4.58Total 131 100.00Monthly Spending(Voiceand Text)Frequency PercentageLess than Rs.100 14 10.69Rs. 100 to Rs.200 33 25.19Rs. 200 to Rs. 300 25 19.08Rs.300 to Rs.400 18 13.74Rs. 400 to Rs. 500 19 14.50Rs. 500+ 22 16.79Total 131 100
  • 16. 16The respondents were asked to indicate the importance of certain factors while selecting a mobilecellular operator. These factors were 1.) Easy availability of Recharge Packs 2.) Low/Cost EffectiveTariff plans 3.)Level of Customer Service 4.) Network Coverage 5.) Customized Calling and DataPlans and 6.) Value Added Services (viz. Caller tunes, Ringtones etc.).Table 3. Importance of factors considered by consumers while selecting a Mobile OperatorWeights 5 4 3 2 1Factor/Importance VeryImportantImportant ModeratelyImportantOf LittleimportanceUnimportant WeightedScoreRankEasy Availabilityof Recharge Packs25 50 18 23 15 440 5Low/Cost effectiveTariff plans63 37 15 9 7 533 2Level of CustomerService46 46 24 8 7 509 3Network Coverage 96 22 2 7 4 592 1Customization ofcalling and data plan34 54 21 16 6 487 4VAS like(Caller-Tunes,Ring-Tones,Cricket updates)7 10 18 39 57 264 6As seen in the Table 3. above, Network Coverage ranked as the top-most factor in selecting a mobileoperator brand, followed by Low/Cost-effective Tariff Plans and Level of Customer Service. Also,interestingly a majority of respondents indicated VAS as being unimportant while selecting a mobileoperator. The table also shows that a majority of respondents felt that Customization of calling anddata plans and Easy availability of recharge packs was an important factor for them.
  • 17. 174. Perceptual MappingTo draw the perceptual maps, respondents were asked to rate their mobile operators on six attributes,namely Cheap Tariff, Transparency in Billing, Network Quality, Customer Service, Easy Availabilityof Recharge Packs and Customized Plans and offerings .The attributes were measured using a 7-point Likert Scale (1- Strongly Disagree to 7- Strongly Agree). Discriminant Analysis was used withthe help of IBM SPSS software. The results have been tabulated in Table 4 given below.SPSS outputTable 4. (a) Group StatisticsBrand Mean Std. Deviation Valid N (listwise)Unweighted WeightedVodafoneCheap Tariff 3.9375 1.58995 48 48.000Transparency in billing 4.5625 1.58324 48 48.000Network Quality 5.2565 1.06790 48 48.000Customer Service 4.6146 1.43379 48 48.000Easy availability 5.9375 1.32739 48 48.000Customized plans/offerings 5.1667 1.11724 48 48.000AirtelCheap Tariff 4.0000 1.68325 25 25.000Transparency in billing 3.7600 1.83212 25 25.000Network Quality 4.6132 1.48959 25 25.000Customer Service 3.8800 1.45974 25 25.000Easy availability 6.3200 1.31403 25 25.000Customized plans/offerings 5.1600 1.14310 25 25.000Tata DoCoMoCheap Tariff 4.4667 1.99523 15 15.000Transparency in billing 4.3333 1.79947 15 15.000Network Quality 4.1107 1.76650 15 15.000Customer Service 3.7333 1.86956 15 15.000Easy availability 5.4667 1.40746 15 15.000Customized plans/offerings 5.2667 1.43759 15 15.000AircelCheap Tariff 4.8000 1.54919 10 10.000Transparency in billing 4.0000 1.69967 10 10.000Network Quality 4.3680 1.37433 10 10.000Customer Service 4.1500 1.05541 10 10.000Easy availability 5.3000 1.41814 10 10.000Customized plans/offerings 5.4000 1.34990 10 10.000IdeaCheap Tariff 3.9000 1.28668 10 10.000Transparency in billing 4.7000 2.00278 10 10.000Network Quality 5.1010 1.15471 10 10.000Customer Service 4.0500 1.86264 10 10.000
  • 18. 18Easy availability 5.8000 1.98886 10 10.000Customized plans/offerings 5.1000 2.13177 10 10.000RelianceCheap Tariff 3.8889 1.83333 9 9.000Transparency in billing 4.7778 2.22361 9 9.000Network Quality 5.2589 1.43193 9 9.000Customer Service 4.6111 1.91667 9 9.000Easy availability 6.1111 1.16667 9 9.000Customized plans/offerings 4.8889 1.36423 9 9.000MTNL TrumpCheap Tariff 4.4286 1.81265 7 7.000Transparency in billing 4.5714 1.71825 7 7.000Network Quality 3.9043 1.38566 7 7.000Customer Service 3.7143 1.82248 7 7.000Easy availability 4.8571 1.95180 7 7.000Customized plans/offerings 4.2857 1.60357 7 7.000Loop MobileCheap Tariff 5.5714 1.27242 7 7.000Transparency in billing 3.8571 1.86445 7 7.000Network Quality 3.6657 1.24722 7 7.000Customer Service 4.0000 1.91485 7 7.000Easy availability 5.1429 2.19306 7 7.000Customized plans/offerings 5.2857 1.70434 7 7.000TotalCheap Tariff 4.1832 1.66318 131 131.000Transparency in billing 4.3282 1.75606 131 131.000Network Quality 4.7657 1.39762 131 131.000Customer Service 4.2137 1.58603 131 131.000Easy availability 5.8092 1.49417 131 131.000Customized plans/offerings 5.1298 1.33242 131 131.000Table 4. (b) Univariate ANOVA testTests of Equality of Group MeansWilks Lambda F df1 df2 Sig.Cheap Tariff .933 1.270 7 123 .271Transparency in billing .958 .776 7 123 .609Network Quality .854 3.010 7 123 .006Customer Service .946 1.009 7 123 .428Easy availability .924 1.437 7 123 .196Customized plans/offerings .971 .532 7 123 .809High values of Wilk’s Lambda in the table 5 indicate lower group differences. Similarly a higher valueof degree of significance indicates that selected mobile telecom operators do not vary significantly
  • 19. 19across various attributes. However the importance of Network Quality in distinguishing the mobiletelecom operators was found to be high (significant value of 0.006).Table 4.(c) Pooled Within-Groups MatricesCheap Tariff Transparency inbillingNetwork Quality CustomerServiceEasyavailabilityCustomizedplans/offeringsCorrelationCheap Tariff 1.000 .113 .067 .222 .050 .352Transparencyin billing.113 1.000 .250 .350 .298 .127Network Quality .067 .250 1.000 .428 .432 .325Customer Service .222 .350 .428 1.000 .149 .215Easy availability .050 .298 .432 .149 1.000 .361Customizedplans/offerings.352 .127 .325 .215 .361 1.000The pooled within group matrix in table 4.(c) indicates low correlation (<0.50) among independentvariables. This implies the attributes chosen for analyzing the mobile telecom operator brands aredistinct.Table 4.(d) EigenvaluesFunction Eigenvalue % of Variance Cumulative % CanonicalCorrelation1 .251a59.9 59.9 .4482 .105a24.9 84.8 .3083 .037a8.7 93.6 .1884 .021a5.0 98.6 .1445 .004a.8 99.4 .0596 .002a.6 100.0 .049a. First 6 canonical discriminant functions were used in the analysis.The Eigen Values in table 4.(d) show that the first two functions explain most of the variance(cumulative variance 84.8%) in the input data. Hence these two dimensions have been used for furtherinterpretation.
  • 20. 20Table 4.(e) Standardized Canonical Discriminant Function CoefficientsFunction1 2 3 4 5 6Cheap Tariff -.526 .115 .150 .471 -.183 .794Transparency in billing .027 .719 -.385 -.373 .596 .264Network Quality .772 .352 .116 -.109 -.723 .504Customer Service .156 -.040 .547 .713 .476 -.583Easy availability .126 -.944 -.292 .324 .469 .311Customized plans/offerings -.165 -.095 .680 -.889 .215 -.206As seen in table 4.(e) the first six canonical discriminates were used in the analysis. The perceptualmaps were drawn using SPSS output of the discriminant analysis and Excel worksheet. The figure 2shows the perceptual map of selected mobile operators and different attributes. The Mobile cellularoperators were plotted on the basis of value of group centroids on function 1 and 2 using Table 4.(g).All the 8 brands have a unique position on the map.Table 4. (f) Structure MatrixFunction1 2 3 4 5 6Network Quality .811*.083 .359 -.014 -.109 .441Easy availability .405 -.612*-.023 -.025 .474 .485Customized plans/offerings -.017 -.198 .733*-.536 .264 .257Customer Service .362 .226 .598*.497 .451 -.096Transparency in billing .231 .513 -.148 -.114 .729*.343Cheap Tariff -.489 .131 .460 .283 .041 .671*Pooled within-groups correlations between discriminating variables and standardized canonical discriminant functionsVariables ordered by absolute size of correlation within function.*. Largest absolute correlation between each variable and any discriminant function
  • 21. 21Table 4. (g) Functions at Group CentroidsBrand Function1 2 3 4 5 6Vodafone .413 .113 .101 .024 .006 -.023Airtel -.032 -.605 -.107 .022 -.021 -.006Tata DoCoMo -.564 .070 -.062 -.248 .096 -.028Aircel -.516 .112 .308 -.041 -.101 -.028Idea .278 .233 -.147 -.243 -.083 .110Reliance .482 .107 -.126 .184 .093 .067MTNL Trump -.602 .568 -.515 .212 -.063 -.060Loop Mobile -1.186 .034 .270 .241 .035 .094Unstandardized canonical discriminant functions evaluated at group meansFigure 1. Canonical Discriminant Functions
  • 22. 22Figure 2: Perceptual Map of Key telecom operator brands and attributes: Drawn using Excel, fromSPSS outputMobile Operators and their association with Attributes/DimensionsThe position of different brands have been plotted with respect to different influencing attributes as perceivedby the consumers. It appears that Idea, Reliance and Vodafone are strongly represented by Network Quality Airtel is strongly represented by Easy availability of Recharge Packs indicating a well wovendistribution network and intermediaries. Customers identify Tata DoCoMo, Aircel and also MTNL Trump with cheaper tariff rates. However,the customer service attribute is in the opposite direction indicating a lower association with the brandwith the later. Vodafone, Idea and Reliance and Airtel are not perceived with cheap tariff by consumers. None of the brands score well on transparency in billing and deduction of talk-time balance. In factpresence of Airtel being in diagonally opposite direction indicates that the brand is perceived poorly onthis factor.Cheap TariffTransparency in BillingNetwork qualityCustomer ServiceEasy Availabilty of Recharge PacksCustomized PlansVodafoneAirtelTata DoCoMoAircelIdeaRelianceMTNL TrumpLoop Mobile-1.2-1.0-0.8-0.6-0.4-0.20.00.20.40.60.81.0-1.5 -1.0 -0.5 0.0 0.5 1.0Perceptual Mapping of Key Telecom Operators
  • 23. 23A few other two-dimensional perceptual mapsThe correlation between the various attributes were examined and following perceptual mapswere drawn. Figure 3:As seen in figure 3. Vodafone, Reliance and Idea score high on Network Quality. Loop Mobile,Tata DoCoMo, MTNL Trump and Aircel score well on cheaper tariffsFigure 4.The figure 4 shows that Vodafone and Reliance are perceived to be the best providers in termsof Customer Service while Aircel, Loop and Tata DoCoMo fare a bit better on Customization ofplansAircelAirtelIdeaLoop MobileMTNL TrumpRelianceTata DoCoMoVodafone0.001.002.003.004.005.006.007.004.77 4.78 4.79 4.80 4.81 4.82 4.83 4.84CheapTariffRatesCheapestLow Network Quality HighQuality of Network v/s Cheap-TariffsAircelAirtelIdea Loop MobileMTNL TrumpRelianceTata DoCoMoVodafone4.004.104.204.304.404.504.604.700.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00Customization in Plans V/s Customer ServiceLow Customization in Plans HighLowCustomerServiceHigh
  • 24. 24Managerial Implication of the studyThe research conducted pointed out a number of interesting things that can aid a manager in atelecommunication firm. Consumers perceive Network Coverage as an important factor while selectinga mobile telecom brand and that different brands seem to be varying in perceived network coverage.Telecom companies apart from providing low-cost tariff plans, should also focus on providingcustomers a superior level of customer service. The study also hints that consumers are less likely toselect a mobile network operator solely on the basis of VAS like Caller Tunes and Ringtones andCricket. Finally ‘transparency in billing and deductions’ is an attribute on which brand managers canposition their telecom brand to achieve differentiation in this hypercompetitive market.
  • 25. 25References1. (Page 6)Telecom India: Executive Summary,http://www.imaginmor.com/telecom-india2. (Page 6)Business Today: Too many cooks article dt. Oct 14-2012http://businesstoday.intoday.in/story/hypercompetition-to-ruin-indian-mobile-market/1/188477.html3. (Page 6)TRAI :Press Release on Telecom Subscription Data as on 31st December 2012http://www.trai.gov.in/Content/PressDetails.aspx?PRESS_REL_ID=2025&pg=04. (Page 6) Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1988), “Communication and Control Processesin the Delivery of Service Quality”. Journal of Marketing, April, pp. 35-48.5. (Page 7)Business-Dictionary: Definition of Perceptual mapping,http://www.businessdictionary.com/definition/perceptual-mapping.html6. (Page 7) Jawarharlal and KBS Kumar (2004),” Branding Insurance: An Indian Prospective”, InsuranceChronicle, October, pp15-187. (Page 7)Lonergan, Declan (1999). “90% of New Cellular Users Spend Less Than $50 per month”, M2Presswire, Coventry, May 17.8. (Page 7) Green, P.E. and Y. Wind (1975), New way to measure consumers’ judgments”, Harvard-Business-Review.,53:107-117.http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=3867280&site=ehost-live9. (Page 7) Wind, Y., 1982. Product Policy: Concepts, Methods and Strategy. Addison-Wesley Publishing,Reading, MA. ISBN: 10: 020108343410. (Page 8)Attribute Based Perceptual Mapping of Prepaid Mobile Cellular Operators: An EmpiricalInvestigation Among Management Graduates in Central Haryana.(IJCEM International Journal ofComputational Engineering & Management, Vol. 11, January 2011)11. (Page 8) Chadha S.K. and Kapoor D. ( 2008) ,“An Attribute Based Perceptual mapping of the SelectedPrivate Life Insurance Companies: An Empirical Study in Ludhina ” , Vision, vol 12, No3 , July- September,pp53-59.