Service quality perception of Indian Telecom Consumers


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Service quality perception of Indian Telecom Consumers

  1. 1. Authors:Aprajita RanaDr. Kapil Arora
  2. 2. Service Quality Bitner, Booms and Mohr -‘the consumer’s overall impression of the relative inferiority / superiority of the organisation and its services’ Parasuraman, Zeithaml and Berry- ‘a function of the differences between expectation and performance along the quality dimensions’
  3. 3. Indian telecom Industry  960.90 million subscribers  929.37 Million wireless  Mobile Number Portability (MNP) launched on 20th January, 2011  Mobile Number Portability requests from 50.16 Million wireless subscribers  Declining Average Revenue Per User (ARPU)  MP Consumer Base–Idea highest 143,30,482, then Reliance, Airtel, BSNL, Tata (TRAI May 12)
  4. 4. Objectives To compare the consumer perception of service quality of the five popular telecom service providers – Airtel, BSNL, Idea, Tata Docomo and Reliance Compare the service quality of the five service providers along five dimensions: reliability, responsiveness, responsiveness, assurance, empathy, and tangibles
  5. 5. Literature Review Parasuraman, et. al (1988) conducted empirical studies in several industry sectors to develop and refine SERVQUAL, a multiple-item instrument to quantify customers’ assessment of a company’s SQ Van-der-Wal, et. Al (2002) used SERVQUAL to investigate service quality in mobile telecommunication in South Africa. They concluded that the instrument was reliable and could be used to assess service quality in telecommunication industry. Stafford (1999)- critical to the improvement of service quality is the determination of those service quality characteristics considered important by customers. Bolton and Drew (1991)- customer-perceived service quality is an important success factors of business competition.
  6. 6. SERVQUAL Multiple-item instrument to quantify customers’ assessment of a company’s SQ. Measures SQ along five dimensions:  Tangibles: Physical facilities, equipment and appearance of personnel.  Reliability: Ability to perform the promised service dependably and accurately.  Responsiveness: Willingness to help customers and provide prompt service.  Assurance: Knowledge and courtesy of employees and their ability to inspire trust and confidence.  Empathy: Caring, individualised attention the firm provides its customers.
  7. 7. Research Methodology SERVQUAL: 22-item scale was employed 147 respondents Cronbach alpha: 0.888, indicating good consistency among the items Consumers of Airtel, BSNL, TATA, Reliance and Idea surveyed One-way ANOVA used to compare SQ of these service providers
  8. 8. Distribution of RespondentsServiceProviders No. of respondents Percent Bharti Airtel 41 27.9 Idea Cellular 33 22.4 Tata Docomo 20 13.6 Reliance Communication 27 18.4 BSNL 26 17.7 Total 147 100.0
  9. 9. Airtel 26 41 Idea27 Tata Docomo 33 Reliance 20 BSNL
  10. 10. Demographic characteristics Gender No. of respondents Percent Male 79 53.7 Female 68 46.3 Total 147 100.0 No. of Education respondents Percent Under graduate 55 37.4 Graduate 28 19.0 Post Graduate 64 43.5 Total 147 100.0
  11. 11. No. of Respondents 68 79 Male Female 64 55 Under graduate-55 Graduate-28 Post Graduate-64 28
  12. 12. Results Service Service Quality Mean Providers Score Bharti Airtel 110.2195 Idea 106.4242 Tata Docomo 104.1000 BSNL 87.8462Reliance Comm. 86.6296
  13. 13. Results:120 Airtel10080 Idea6040 Tata20 Docomo 0 BSNL Service Quality Mean Reliance Score
  14. 14. Results No significant difference in the quality perception of Airtel, Idea and Tata Docomo consumers. (Group A) No significant difference in SQ perception of BSNL and Reliance consumers. (Group B) Significant difference in SQ perception between Airtel, Idea, Tata (Group A) and BSNL, Reliance (Group B) consumers.
  15. 15. Results Tangibles: Similar result, Idea had highest values, BSNL the lowest Reliability: Similar result, Airtel –best and BSNL worst Responsiveness: Tata Docomo-best and Reliance worst Assurance: Airtel and Idea- Better, Reliance provides least assurance (Airtel, Idea, BSNL and Tata Docomo significantly differ from Reliance) Empathy: Airtel –best and Reliance worst
  16. 16. Conclusion Airtel, Idea and Tata Docomo customers perceive better service quality than BSNL and Reliance customers. BSNL and Reliance need to focus on customer- oriented services. MNP provides a way out to customers perceiving poor service quality Declining Average Revenue Per User (ARPU) and increase in MNP requests are threats to the providers which can only be overcome by efforts to improve the service quality perceptions
  17. 17. Thank you