Understanding Service Quality of ‘Mobile Telecom Service Provider’ in India Using A. Parasuraman Model

1. UNDERSTANDING SERVICE QUALITY OF
‘MOBILE TELECOM SERVICE PROVIDER’
USING A. PARASURAMAN MODEL
DR. HARISINGH GOUR UNIVERSITY, SAGAR
(A CENTRAL UNIVERSITY)
PRESENTED BY
SHUBHAM AHIRWAR
(Y151805335)
1
DEPARTMENT OF BUSINESS MANAGEMENT

2. TABLE OF CONTENT
S. No. Content Slide No.
1. Executive Summary 03-08
2. Service Industry Analysis 09-16
3. Market Survey 17-18
4. Data Analysis & Interpretation 19-28
5. Findings 29-30
6. Conclusion 31
7. Reference 32-33
2

3. I. EXECUTIVE SUMMARY
● Second Largest Subscriber Base:
With a subscriber base of nearly 1,210.71 million, as of July 2017,
India accounted for the 2nd largest telecom network in the world.
● Third Highest Number of Internet Users:
With 422.19 million internet subscriber, as of March 2017, India
stands 3rd highest in terms of total internet users.
● Rising Penetration Rate:
As of July 2017, urban tele-density stood at 173.21 per cent and
rural tele-density at 57.45 percent.
A. Introduction
3

4. ● Most of the Internet Accessed through Mobile Phones:
Mobile based Internet is a key component of Indian Internet usage,
with 7 out of 8 users accessing internet from their mobile phones.
Since 2012, the share of time spent on watching videos on mobile
devices has grown by 200 hours a year.
● Affordability and Lower Rates:
Availability of affordable smart phones and lower rates are expected
to drive growth in the Indian telecom industry.
Cont……
4

5. B. Investment
● Reliance Industries Ltd, plans to invest an additional sum of Rs.
18,000 crore (US$ 2.79 billion) during April - June 2017 on its
telecom arm, Reliance Jio, to expand its fibre network, thereby
raising the total amount invested in the business to more than Rs 1.9
trillion (US$ 29.50 billion).
● Nettle Infrastructure Investment Ltd, a wholly owned subsidiary
of Bharti Airtel, plans to acquire 21.63% stake in Bharti Infratel Ltd
for an estimated sum of Rs 12,400 crore (US$ 1.93 billion).
● Ortel Communications, Odisha’s largest multi-system operator,
plans to invest around Rs 300 crore (US$ 45 million) over the next
two years, for upgrading its infrastructure, along with strengthening
its reach, efficiency and competitiveness in the market. 5

6. C. Government Initiatives
● The Telecom Regulatory Authority of India (TRAI) focuses on
identifying issues that make it difficult to do telecom business in
India like license acquisition and spectrum allotment among others,
and review them in order to simply these processes to the
maximum possible extent.
● The Government of India plans to auction the 5G spectrum in
bands like 3,300 MHz and 3,400 MHz to promote initiatives like
Internet of Things (IoT), machine to machine communications,
instant high definition video transfer as well as its Smart Cities
initiative.
Some of the major initiatives taken by the government are as follows:
6

7. Cont……
● The Government of India has launched a Phased Manufacturing
Programme (PMP) aimed at adding more smartphone components
under the Make in India initiative thereby giving a push to the
domestic manufacturing of mobile handsets.
● The Government of India has allocated Rs 10,000 crore (US$ 1.5
billion) for rolling out optical fibre-based broadband network
across 150,000 cumulative Gram Panchayats (GP) and Rs 3,000
crore (US$ 450 million) for laying optical fibre cable (OFC) and
procuring equipment for the Network For Spectrum (NFS) project
in 2017-18.
7

8. D. Road Ahead
● India will emerge as a leading player in the virtual world by having
700 million internet users of the 4.7 billion global users by 2025, as
per a Microsoft report.
● Internet economy expected to touch Rs 10 trillion (US$ 155 billion)
by 2018, contributing around 5 per cent to the country’s GDP.
● With the government’s favorable regulation policies and 4G
services hitting the market, the Indian telecommunication sector is
expected to witness fast growth in the next few years.
8

9. II. SERVICE INDUSTRYANALYSIS
● The mobile industry is expected to create a total economic value of
Rs 14 trillion (US$ 217.37 billion) by the year 2020. It would
generate around 3 million direct job opportunities and 2 million
indirect jobs during this period.
● The total number of telephone subscribers in the country rose by
11.13 per cent year-on-year to 1,151.78 million in the September to
December quarter of 2016. According to a report by leading
research firm Market Research Store, the Indian telecommunication
services market will likely grow by 10.3 per cent year-on-year to
reach US$ 103.9 billion by 2020.
A. Market Analysis
9

10. Cont……
● The revenue of mobile handset industry rose 22 per cent to Rs 1.36
trillion (US$ 21.12 billion) in 2016.
● In 2017, around 200 million mobile handsets will be made out of
India out of the 270 million mobile handsets to be shipped.
● According to the Ericsson Mobility Report India, smartphone
subscriptions in India is expected to increase four fold to 810
million users by 2021, while the total smartphone traffic is
expected to grow seventeen fold to 4.2 Exa Bytes (EB) per month
by 2021.
10

11. B. Growth Prospects and Trends
1. Integration with content service providers: Being connected
continues to become cheaper. Connectivity is capturing a smaller
proportion of the information value chain while content, service,
and product deliverers capture more. By 2020, it is likely that one
or more major telecom companies will be acquired by a content
company.
2. IoT: The next major trend that will impact is the explosion of
connected devices. This will add billions of new connected data
sources globally by 2020. The upswing of all of these devices will
be an astronomical growth in data volumes; we will quickly push
through exabyte volumes and enter the world of zettabytes per year.
11

12. Cont……
3. Mobility: Growth of mobile connectivity is far outpacing fixed line
connectivity. This makes sense, as most growth is occurring in the
developing world and amongst poorer populations. For these
people, mobile are cheaper, convenient, and more useful, even
when landline connectivity is an option.
4. Market Saturation: Elder population as they retire will enter
retirement communities and assisted living facilities which are fully
digitized in order to be as efficient as possible. Older population
will be forced into using these technologies by the world around
them and will likely consume vastly more bandwidth than they, or
their carriers, ever imagined.
12

13. 5. Security: As custodians of the networks, carriers play a pivotal role
in fighting the new threats that are emerging. Customers will begin
to expect, then demand, more proactive protection from the entire
internet value chain, and carriers will be expected to support these
expectations with a range of technical and operational innovations.
The desire for greater security may be a boon for carriers, if they
embrace the need.
Cont……
13

14. C. Understanding Service Marketing Model of Parasuraman
● ‘Parasuraman et al. (1985) identified 97 attributes which were
found to have an impact on service quality. These 97 attributes
were the criteria that are important in assessing customer’s
expectations and perceptions on delivered service’ (Kumar et al.,
2009, p.214).
● These attributes were categorized into ten dimensions
(Parasuraman et al., 1985) and later subjected the proposed 97 item
instruments for assessing service quality through two stages in
order to purify the instruments and select those with significant
influences (Parasuraman et al., 1988, p.13).
14

15. 15
● The first purification stage came up with ten dimensions for
assessing service quality which were; tangibles, reliability,
responsiveness, communication, credibility, security, competence,
courtesy, understanding, knowing, customers, and access. They
went into the second purification stage and in this stage they
concentrated on condensing scale dimensionality and reliability.
● They further reduced the ten dimensions to five which were;
1. Tangibility
2. Reliability
3. Responsiveness
4. Assurance
5. Empathy
Cont……

16. 16
Cont……

17. III. MARKET SURVEY
● Purpose of the Study: As the major purpose of the study is to
understand the consumers perceptions in the selection of cellular
mobile telecommunication service provider in Sagar City, India.
● Sample Size: I have selected 45 sample units from market and
individual customers.
Based on the SERVQUAL model, 30 questions were developed. A
Likert scale was used to question the respondents on the five point
scale. The respondents were asked to rate on the scale between
Strongly Agree and Strongly Disagree. The data were collected from
the friends and university students of the Sagar city, India who are
using mobile phones of different operators.
17

18. Cont……
● Sampling Technique: I have used conveyed convenient sampling
survey in this research.
● Data Collection Method:
o Primary Data: The primary data is collected through
questionnaire. The questionnaires are distributed among 45 peoples
and their view is recorded and used in analyzing the data
Secondary sources.
o Secondary Data: Secondary data was collected through online
sites (www.google.com, www.ibef.com), govt. reports, published
articles, research papers, different research work done previously,
relevant papers or journals, and newspapers (Times of India). etc.
18

19. S. No. Gender No. of Respondents Percentage
1. Male 31 68.88%
2. Female 14 31.11%
S. No. Age No. of Respondents Percentage
1. Under 18 9 20%
2. 19 to 25 27 60%
3. 26 to 35 7 15.55%
4. Above 36 2 4.44%
Table-2: Showing Different Age Group of the Respondents:
Table-1: Showing Gender of the Respondents:
IV. DATAANALYSIS & INTERPRETATION
A. Analysis of Demographic Profile of Respondents
19

20. Table-3: Showing Education Qualification of the Respondents:
Table-4: Showing Different Occupation of the Respondents:
S. No. Education Qualification No. of Respondents Percentage
1. 10 or 10+2 11 24.44%
2. Under Graduate 25 55.55%
3. Post Graduate 9 20%
4. Other Qualification 0 0%
S. No. Occupation No. of Respondents Percentage
1. Student 39 86.66%
2. Self Employee 1 2.22%
3. Private Employee 2 4.44%
4. Government Employee 3 6.66%
Cont……
20

21. Table-5: Showing Monthly Family Income (Rs.) of the Respondents:
Table-6: Showing Type of Service Preferred by the Respondents:
S. No. Type of Service No. of Respondents Percentage
1. Prepaid 39 86.66%
2. Postpaid 6 13.33%
S. No. Monthly Income (Rs.) No. of Respondents Percentage
1. Under 20000 10 22.22%
2. 20001 to 40000 13 28.88%
3. 40001 to 60000 13 28.88%
4. Above 60001 9 20%
Cont……
21

22. S. No. Telecom Service Provider No. of Respondents Percentage
1. Reliance Jio 21 46.66%
2. Airtel 6 13.33%
3. Idea 7 15.55%
4. Vodafone 4 8.88%
5. Tata Docomo 3 6.66%
6. BSNL 2 4.44%
7. Reliance Smart 2 4.44%
8. Aircel 0 0%
9. Telenor 0 0%
10. Others 0 0%
Table-7: Showing Mobile Telecom Service Provider of Respondents:
Cont……
22

23. S. No. Items Mean S.D.
1. My mobile telecom service provider has up-to-date
equipment.
3.644 0.773
2. My mobile telecom service provider’s physical
facilities are visually appealing.
3.244 0.883
3. My mobile telecom service provider’s employees
are well dressed and appear neat.
3.333 0.977
4. The appearance of the physical facilities of my
mobile telecom service provider’s is in keeping
with the type of services provided.
3.244 1.131
 On the Basis of Tangibility
B. Interpretation of Mean & Standard Deviation
23

24.  On the Basis of Reliability
Cont……
S. No. Items Mean S.D.
5. When my mobile telecom service provider promise
to do something by a certain time, it does so.
4.022 0.783
6. When I have problems, my mobile telecom service
provider is sympathetic and reassuring.
3.888 0.858
7. My mobile telecom service provider is dependable. 3.666 0.825
8. My mobile telecom service provider, providing its
services at the time it promises to do so.
4.044 0.705
9. My mobile telecom service provider keeps its
records accurately.
3.533 0.660
24

25.  On the Basis of Responsiveness
Cont……
S. No. Items Mean S.D.
10. My mobile telecom service provider doesn’t tell
customers exactly when services will be performed.
3.111 1.049
11. I don’t receive prompt service from my mobile
telecom service provider’s employees.
3.111 1.027
12. Employees of my mobile telecom service provider
are not always willing to help customers.
3.088 0.874
13. Employees of my mobile telecom service provider
are too busy to respond to customer requests
promptly.
3.577 1.076
25

26.  On the Basis of Assurance
Cont……
S. No. Items Mean S.D.
14. I can trust the employees of my mobile telecom
service provider.
4.133 0.814
15. I feel safe in my transaction with my mobile
telecom service provider’s employees.
2.777 1.084
16. Employees of my mobile telecom service provider
are polite.
3.600 0.579
17. Employees get adequate support from my mobile
telecom service provider to do their jobs well.
3.511 0.842
26

27.  On the Basis of Empathy
Cont……
S. No. Items Mean S.D.
18. My mobile telecom service provider doesn’t give an
individual attention.
2.488 1.100
19. Employees of my mobile telecom service provider
don’t give personal attention.
3.466 0.943
20. Employees of my mobile telecom service provider
don’t know what my needs are.
2.711 1.014
21. My mobile telecom service provider doesn’t have
best interests at heart.
2.533 0.842
22. My mobile telecom service provider doesn’t have
operating hours convenient to all its customers.
3.422 1.011
27

28.  On the Basis of Satisfaction
Cont……
S. No. Items Mean S.D.
23. I am satisfied with Calling Services. 4.400 0.579
24. I am satisfied with Data Services. 4.177 0.860
25. I am satisfied with the Network. Coverage. 3.244 1.111
26. I am satisfied with Value Added Services. 3.000 0.768
27. I am satisfied with New Schemes & Offers. 2.711 0.991
28. I am satisfied with Customer Care Services. 3.200 0.756
29. I am satisfied with Mobile Applications Service. 3.155 0.824
30. I am overall satisfied with my mobile telecom
service provider.
3.355 0.743
28

29. V. FINDINGS
● It is found from the study that the majority of the respondents have
given top preference to Reliance Jio, Airtel, Idea and Vodafone and
least preference to Tata Docomo, BSNL, Reliance Smart and
Others in preferring the network service providers.
● It is found from the study that the majority of the respondents have
given top preference to the Prepaid Service as compression of the
Postpaid Service.
● Most of the respondents say’s our service provider provide service
at the time when it promises and they keeps our records accurately.
● Most of the respondents say’s our service provider doesn’t give an
individual attention or personal attention.
29

30. ● Most of the respondents say’s our service provider has modern up-
to-date equipment, physical facilities are visually appealing and
employees are well dressed and appear neat.
● Most of the respondents say’s employees of service provider are
not always willing to help customers and they are too busy to
respond to customer requests promptly.
● Most of the respondents are not satisfied with our mobile telecom
service provider because still they have network problem in some
areas.
● Most of the respondents are satisfied with the call rate service and
data services provided by the telecom service provider.
Cont……
30

31. VI. CONCLUSION
● The Indian mobile telecommunication market has grown at a rapid
speed in the last few years. The number of players as well as the
level of competition is continuously increasing. Declining the call
tariffs and favorable regulatory policies has led to a tremendous
increase in the subscribers’ base.
● Proper identification of the Customer preferences will facilitate the
favorableness towards the various mobile service providers.
Continuous research on consumers will enhance the customer
satisfaction.
● The present research focuses on the study of customer preferences
with the special reference to the mobile network users in Sagar city.
31

32. REFERENCE
● Labbi, Z. (2015, Aug 10). Looking at Telecom industry trends by 2020
and beyond. Retrieved Oct 09, 2017, from www.capgemini.com:
https://www.capgemini.com/ 2015/08/looking at telecom industry trends
by 2020 and beyond/
● Telecom Industry in India. (2017, Oct 03). Retrieved 10 Sep, 2017, from
www.ibef.org:https://www.ibef.org/industry/telecommunications.aspx
● Telecom sector share in GDP marginally up at 1.94% in FY15 - Latest
News & Updates at Daily News & Analysis. 23 December 2015.
● Ahluwalia, Harveen (9 August 2017). Govt grants nine new TV channel
licences. http://www.livemint.com/. Retrieved 9 October 2017.
● Dharmakumar, Rohin (19 October 2011). "India Telcos: Battle of the
Titans". Forbes. Retrieved 19 August 2011.
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33. ● Dash, Kishore. "Veto Players and the Deregulation of State-Owned
Enterprises: The Case of Telecommunications in India" (PDF). Retrieved
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Cont……
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34. THANK YOU!
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