Market Research Report

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Market Research Report

  1. 1. [ MARKET RESEARCH REPORT] JAN 2010 - 2012 NEWGATE INDIA Hyderbad, Andhra Pradesh Pin- 500038 MARKET RESEARCH A study on satisfaction level of GSM customers Research Report Website: www.newgate.in Email: contact@newgate.in Slideshare URL :http://www.slideshare.net/newgateindia NEWGATE INDIA, Bangalore Page 1
  2. 2. [ MARKET RESEARCH REPORT] JAN 2010 - 2012 Dissertation Report onCause & affect relationship to measure satisfaction level of GSM customers.In partial fulfillment of the Course: Dissertation In Term – VIII of the Post Graduate Program in Management (Batch: Jan. 2010 – 2012) Prepared by SUNAM PAL Registration No: NEWGATE INDIA, Bangalore Page 2
  3. 3. [ MARKET RESEARCH REPORT] JAN 2010 - 2012 Table of ContentsExecutive Summary ............................................................................................................ 13Chapter - 1 Introduction .......................................................................................................... 141A Introduction about study .................................................................................................. 14 1A.1 Research Overview .................................................................................................................... 14 1A.2 Purpose of conducting research .............................................................................................. 15 1A.3 Research Motivation.................................................................................................................. 151B Research problem ................................................................................................................ 151C Research topic ...................................................................................................................... 151D Research objective .............................................................................................................. 16 1D.1 List of proposed objectives in synopsis ................................................................................ 16 1D.2 Proposed Hypothesis ................................................................................................................ 16 1D.3 Assumptions considered .......................................................................................................... 161E Need and Scope of study.................................................................................................... 17 1E.1 Need .............................................................................................................................................. 17 1E.2 Scope ............................................................................................................................................. 17 1E.3 Relevance to real world ............................................................................................................. 171F. Limitations of the study .................................................................................................... 181G Industry Overview ............................................................................................................. 18 1G.1 Industry Details ......................................................................................................................... 18 1G.1.1 Scope of Telecom sector in India ............................................................................................. 18 1G.1.2 Regulatory framework............................................................................................................. 19 1G.1.3 Evolution of Telecom sector in India...................................................................................... 19 1G.1.4 Role of Telecom sector in Indian Economy ............................................................................ 20 1G.1.5 GSM (Global System for Mobile Communications) .............................................................. 21 1G.1.6 Benefits of GSM over CDMA ............................................................................................. 21 1G.2 Global context ............................................................................................................................ 21 NEWGATE INDIA, Bangalore Page 3
  4. 4. [ MARKET RESEARCH REPORT] JAN 2010 - 2012 1G.2.1 World Telecom Sector ............................................................................................................. 22 1G.2.2 Growth of Telecom sector world wide ..................................................................................... 22 1G.3 Indian context ............................................................................................................................. 23 1G.3.1 Growth In Subscriber Base ..................................................................................................... 23 1G.3.2 Top Seven Operators – GSM + CDMA – Monthly Net Additions ....................................... 24 1G.3.3 All India Wire line Subscriber Base ........................................................................................ 25 1G.4 Current market scenario ........................................................................................................... 25 1G.4.1 Growth of subscriber base ....................................................................................................... 25 1G.4.2 Growth of Wire Line ............................................................................................................... 26 1G.4.3 Growth of Wireless Subscriber................................................................................................ 27 1G.4.4 Growth of Internet Subscriber ................................................................................................ 27 1G.4.5 Growth of Broadband subscriber............................................................................................. 28 1G.4.6 Growth of Tele density at India .............................................................................................. 28 1G.4.7 Growth of Wireless (GSM and CDMA) Services ................................................................... 29 1G.5 Future Projections ...................................................................................................................... 29 1G.5.1 Revenue & Market Share ........................................................................................................ 29 1G.5.2 GDP and Employment ............................................................................................................ 30 1G.5.3 Future Technology .................................................................................................................. 30 1G.6 Major Market players in world market ................................................................................. 31 1G.7 Major Market players in Indian market ................................................................................ 32 1G.8 Market Share ............................................................................................................................. 36 1G.8.1 Market Share of GSM service in India .................................................................................. 36 1G.8.2 Market Share regional basis in World .................................................................................... 37 1G.8.3 Market Share Regional basis in India ..................................................................................... 38Chapter - 2 Review of Literature ............................................................................................ 39 2A. Research papers published ........................................................................................................ 39 2B. Articles published ....................................................................................................................... 42 2C. Case Studies published............................................................................................................... 44 2B. Books published ........................................................................................................................... 45Chapter - 3 Research Methodology ....................................................................................... 46 3A Research Design ................................................................................................................ 46 3A.1 Research Framework ................................................................................................................ 46 NEWGATE INDIA, Bangalore Page 4
  5. 5. [ MARKET RESEARCH REPORT] JAN 2010 - 2012 3A.2 Research Approach ................................................................................................................... 47 3A.2.1 PHASE1:................................................................................................................................. 47 3A.2.2 PHASE2:................................................................................................................................. 47 3A.2.3 PHASE3:................................................................................................................................. 48 3A.3 Type of Research ........................................................................................................................ 483B Sources of data ..................................................................................................................... 48 3B.1 Primary data: ............................................................................................................................... 48 3B.2. Secondary data: .......................................................................................................................... 493C Sampling of data ................................................................................................................. 49 3C.1 Nature of Sampling ................................................................................................................... 49 3C.2 Sampling Type............................................................................................................................ 49 3C.3 Sample Size ................................................................................................................................. 50 3C. 4 Target Sample ............................................................................................................................ 503D. Primary scales used ........................................................................................................... 513E. Data Collection Methods .................................................................................................. 523F. Analysis tool used............................................................................................................... 523G. Overview of work .............................................................................................................. 53 3G.1 Tasks accomplished................................................................................................................... 53 3G.2 Software package/ tools used .................................................................................................. 54 3G.3 Meeting with target people. ..................................................................................................... 553H. Questionnaire & Interview Questions .......................................................................... 55 3H.1 Phase 1: Online survey questions ........................................................................................... 55 3H.1.1 Purpose of survey Questions: ................................................................................................ 61 3H.1.2 Primary scale applied: ............................................................................................................ 61 3H.2 Phase-2 Interview Questions ................................................................................................... 61 3H.2.1 Purpose of interview Questions .............................................................................................. 62 3H.2.2 Primary Scale applied ............................................................................................................. 63 3H.3 Phase 3 Online survey questions ............................................................................................ 63 3G.H.1 Purpose of interview Questions ............................................................................................. 68 3H.3.3 Primary Scale applied ............................................................................................................. 68 3H.4 Question distribution based on objectives ........................................................................... 69 3G.5 Question distribution based on analysis tool ...................................................................... 69 NEWGATE INDIA, Bangalore Page 5
  6. 6. [ MARKET RESEARCH REPORT] JAN 2010 - 2012Chapter – 4 Observation, Analysis & Interpretation ......................................................... 70 4A Observation during data collection ............................................................................... 70 4A.1 Key Observation during research ........................................................................................... 70 4A.2 Problems faced during survey ................................................................................................. 71 4A.3 Customer Survey response patterns ....................................................................................... 71 4A.3.1 Ideal Timings for Interview & online survey.......................................................................... 71 4A.3.2 Mode of communication for interviewers ............................................................................... 72 4A.3.3 Survey response barrier .......................................................................................................... 73 4A.3.4 Customer response chart ......................................................................................................... 74 4A.3.5 Customer response pyramid.................................................................................................... 75 4A.4 Common errors committed ...................................................................................................... 764B. Analysis & Interpretation of Data collected ................................................................. 76 4B.1 Phase:1 , Identification & Priortization of key Factor ........................................................ 76 4B.1.1 Factor Frequency Table ........................................................................................................... 77 4B.1.2 Factor Priority Matrix ............................................................................................................ 78 4B.3 Interpretation : ............................................................................................................................ 79 4B.4 Phase:1 Graphical Analysis ...................................................................................................... 79 4B.4 Interpretation of Graphical analysis:...................................................................................... 82 4B.5 Phase:2 Interview Analysis....................................................................................................... 83 4B.5.1 Interview Analysis Result ....................................................................................................... 83 4B.6 Interpretation of interview results .......................................................................................... 86 4B.7 Market share analysis ................................................................................................................ 87 4B.7.1 Market Share chart .................................................................................................................. 87 4B.7.1 Market share Frequency Table ................................................................................................ 87 4B.8 Interpretation on market players............................................................................................. 88 4B.9 Phase: 3 Survey graphical analysis ......................................................................................... 89 4B.10 Interpretation of graphical analysis ...................................................................................... 944C SPSS software output Analysis ........................................................................................ 94 4C.1 Reliability Test ........................................................................................................................... 94 4C.1.1 Sample Size ............................................................................................................................. 95 4C.1.2 SPSS output ........................................................................................................................... 95 4C.2 Interpretation .............................................................................................................................. 95 NEWGATE INDIA, Bangalore Page 6
  7. 7. [ MARKET RESEARCH REPORT] JAN 2010 - 2012 4C.3 Multiple Linear Regression Analysis..................................................................................... 96 4C.3.1 Independent Variable .............................................................................................................. 96 4C.3.2 Dependent variable.................................................................................................................. 96 4C.3.3 Sample Size ............................................................................................................................. 96 4C.3.4 SPSS OUTPUT ...................................................................................................................... 97 4C.3.5 Evaluation of output ............................................................................................................... 99 4.C.3.6 Derived Result........................................................................................................................ 99 Multiple Regression linear Equations .................................................................................... 99 4C.4 Interpretation of regression analysis ...................................................................................... 99 4C.6 Correlation Analysis ................................................................................................................ 100 4C.6.1 Correlation Variable .............................................................................................................. 100 4C.6.2 Sample Size ........................................................................................................................... 100 4C.6.3 Correlation Matrix XPSS OUTPUT.................................................................................... 101 4C.6.4 Evaluation of Output ............................................................................................................ 101 4C.6.5 Derived Result....................................................................................................................... 102 4C.7 Interpretation for Satisfaction level ..................................................................................... 103 4C.8 Descriptive Statistics ............................................................................................................... 103 4C.8.2 Sample Size ........................................................................................................................... 104 4C.8.1 SPSS Output......................................................................................................................... 105 4C.9 Interpretation for Sa : Satisfaction level .............................................................................. 106 4C.10 Linear Discriminant Analysis .............................................................................................. 106 4C.10.1 Grouping Variable............................................................................................................... 107 4C.10.2 Dependent variable .............................................................................................................. 107 4C.10.3 Sample Size ......................................................................................................................... 107 4C.10.4 SPSS output ....................................................................................................................... 107 4C.10. 5 Evaluation of output .......................................................................................................... 109 4C.10. 5 Discriminant equation ....................................................................................................... 110 4C.11 Interpretation of discriminant Analysis ............................................................................ 111 4C.12 . Cross Tabulation .................................................................................................................. 111 4C.11 Interpretation of cross tabulation ....................................................................................... 111Chapter - 5 Findings ............................................................................................................... 1145A Key findings from Analysis ........................................................................................... 114 NEWGATE INDIA, Bangalore Page 7
  8. 8. [ MARKET RESEARCH REPORT] JAN 2010 - 20125B Key findings from observation....................................................................................... 1155C Null hypothesis Acceptance............................................................................................ 1175D Findings on individual objectives proposed .............................................................. 118Chapter – 6 Recommendation ............................................................................................... 1196A. Key Suggestions .............................................................................................................. 1196B. Key Guidelines ................................................................................................................. 1196C. Do’s & Don’ts .................................................................................................................... 120 6C.1 Do’s ............................................................................................................................................. 120 6C.2 Don’ts ......................................................................................................................................... 120Chapter - 7 Conclusion ........................................................................................................... 121Chapter - 8 Learning Outcome ............................................................................................. 122Chapter - 9 Scope for further Research ............................................................................... 1239A. Uncovered areas of Research ......................................................................................... 1239B. How to explore this new areas ....................................................................................... 1239C. Future Scope ...................................................................................................................... 1249D. Formulation of new objectives...................................................................................... 124APPENDIX-A ........................................................................................................................... 126APPENDIX-B ........................................................................................................................... 130APPENDIX- C .......................................................................................................................... 131APPENDIX- D.......................................................................................................................... 132APPENDIX - E ......................................................................................................................... 133APPENDIX - F .......................................................................................................................... 134APPENDIX - G......................................................................................................................... 135APPENDIX - H......................................................................................................................... 136APPENDIX - I .......................................................................................................................... 137Abbreviation ............................................................................................................................ 138Glossary .................................................................................................................................... 140References................................................................................................................................. 145 NEWGATE INDIA, Bangalore Page 8
  9. 9. [ MARKET RESEARCH REPORT] JAN 2010 - 2012 List of Figures Figure No Title Page No.FIGURE : 1.1 Phases of telecom evolution 21FIGURE : 1.2 Role of telecom sector 28FIGURE : 3.1 Research Design 48FIGURE : 3.2 Research Approach 49FIGURE : 4.1 Mode of communication 74FIGURE : 4.2 Survey response barrier 75FIGURE : 4.3 Customer Response pyramid 77FIGURE : 4.4 Discriminant analysis Centroid 112 List of TablesTable No Title Page No.TABLE : 1.1 Research objectives proposed 18TABLE : 1.2 Research hypothesis proposed 18TABLE : 3.1 Software tool used 56TABLE : 3.2 Primary scale applied in Phase:1 Survey 63TABLE : 3.3 Primary scale applied in Phase:2 Survey 65TABLE : 3.4 Primary scale applied in Phase:3 Survey 70TABLE : 3.5 Question distribution based on objectives 71TABLE : 3.6 Question distribution based on analysis tool 71TABLE:4.1A Ideal Timings for conducting Interview 73TABLE:4.1B Ideal Timings for conducting online survey 74TABLE : 4.2 Factor frequency Table 79TABLE : 4.3 Factor priority matrix 80TABLE : 4.4 Market Share frequency table 89TABLE : 4.5 Cross tabulation Gender Vs. Place 113TABLE : 4.6 Cross tabulation Age Vs. Place 114TABLE : 5.1 Null hypothesis acceptance/rejection 119TABLE : 5.2 Findings on individual objectives 120 NEWGATE INDIA, Bangalore Page 9
  10. 10. [ MARKET RESEARCH REPORT] JAN 2010 - 2012 List of Charts : Series 1.1- 4.19Chart No Title Page No Chart 1.1 Worldwide Telecom Industry Revenue in billions 24 Chart 1.2 Growth in Subscriber Base in million 25 Chart 1.3 Top Seven Operators – GSM + CDMA – Monthly Net Additions 26 Chart 1.4 All India Wire line Subscriber Base 27 Chart 1.5 Growth of subscriber base in India 28 Chart 1.6 Growth of Wire Line in India 28 Chart 1.7 Growth of Wireless Subscriber in India 29 Chart 1.8 Growth of Internet Subscriber in India 29 Chart 1.9 Growth of Broadband subscriber in India 30Chart 1.10 Growth of Tele density in India 30Chart 1.11 Growth of Wireless (GSM and CDMA) Services 31Chart 1.12 Market Share of GSM service in India 38Chart 1.13 Market Share Region Wise in World 39Chart 1.14 Market Share Region Wise in India 40 Chart 4.1 Customer response chart survey phase:1 76 Chart 4.2 Customer response interview phase:2 76 Chart 4.3 Customer response chart survey phase:3 76 Chart 4.4 Phase:1 Gender Classification 81 Chart 4.5 Phase:1 Customers stay in India 81 Chart 4.6 Phase:1 Number of mobile operators SIM used 82 Chart 4.7 Phase:1 Mobile connection ( Prepaid/Postpaid) 82 Chart 4.8 Phase:1 Customer factor 82 Chart 4.9 Phase:1 Customer’s choice influence by Parents 82Chart 4.10 Phase:1 Customer’s choice influence by Spouse 82Chart 4.11 Phase:1 Customer’s choice influence by Girl/Boy Friend 83Chart 4.12 Phase:1 Customer’s choice influence by Friends 83Chart 4.13 Phase:1 Customer’s choice influence by Kids 83Chart 4.14 Phase:1 Customer’s choice influence by Siblings 83Chart 4.15 Phase:1 Customer’s choice influence by cousins 83Chart 4.16 Phase:1 Customer’s choice influence by relatives 83Chart 4.17 Phase:1 Customer’s choice influence by office peers 84Chart 4.18 Phase:1 Customer’s choice influenced by organization 84Chart 4.19 Phase:1 Customers willingness to contact further. 84 NEWGATE INDIA, Bangalore Page 10
  11. 11. [ MARKET RESEARCH REPORT] JAN 2010 - 2012 List of Charts : Series 4.20- 4.52Chart No Title Page NoChart 4.20 Percentage of GSM SIM depending upon company 85Chart 4.21 Percentage of Working professional using GSM service 85Chart 4.22 Choice of GSM SIM influenced by location 86Chart 4.23 percentage of people using dual SIM 86Chart 4.24 percentage of people think dual SIM is useful 86Chart 4.25 Percentage of people using GPRS & Internet 87Chart 4.26 Tariff rates 87Chart 4.27 Calculated market share 89Chart 4.28 Phase:3 Gender classification 91Chart 4.29 Phase:3 Age classification 91Chart 4.30 Phase:3 Geographical classification 91Chart 4.31 Ratings to favorite SIM 92Chart 4.32 Ratings to SIM people disliked the most 92Chart 4.33 Rating to Favorite GSM for Service Quality 92Chart 4.34 Rating to SIM they disliked the most for Service Quality 92Chart 4.35 Frequency vote for favorite GSM SIM 93Chart 4.36 Frequency vote for to SIM they disliked the most 93Chart 4.37 Rating to Favorite GSM for Benefit for Money 93Chart 4.38 Rating to SIM they disliked the most for Benefit for Money 93Chart 4.39 Rating to Favorite GSM for Price rates 94Chart 4.40 Rating to SIM they disliked the most for Price rates 94Chart 4.41 Rating to Favorite GSM for Network Busy 94Chart 4.42 Rating to SIM they disliked the most for Network Busy 94Chart 4.43 Rating to Favorite GSM for Additional Services 94Chart 4.44 Rating to SIM they disliked the most for Additional Services 94Chart 4.45 Rating to Favorite GSM for customer care service 95Chart 4.46 Rating to SIM they disliked the most for customer care service 95Chart 4.47 Rating to Favorite GSM for Sound clarity 95Chart 4.48 Rating to SIM they disliked the most for sound clarity 95Chart 4.49 Rating to Favorite GSM for customer operational Performance 95Chart 4.50 Rating to SIM they disliked the most for operational Performance 95Chart 4.51 Age vs. Place cross tabulation 114Chart 4.52 Gender vs. Place cross tabulation 115 NEWGATE INDIA, Bangalore Page 11
  12. 12. [ MARKET RESEARCH REPORT] JAN 2010 - 2012 Reader’s Note1. Any number marked within braces [ ] in italics; at the end of sentence or paragraph/ on heading/ below figure or chart, indicates that its source is mentioned in Reference section, with serial number as mentioned inside the braces. Example : [25], Refrerence[25]; Source [25] : Means it is refered from http://www.airtle.in whose serial number is 25 in Reference section , Page:1512. Any word marked within braces [ ] in italics; indicates that it is an abbreviation term, whose full form is mentioned in Abbreviation section. Example : [FDI] : Its full form is “ Foreign Direct Investment ” , which can be found in Page:141, at end of this report.3. Any word in italics starting with ‘*’ mark indicates that its meaning is defined in glossary of market research terms arranged alphabetically. Example : *Mean : It is defined as “an average found by summing all observations” in Glossary section, Page : 144, at end of this report.4. Any sentence quoted as “Note:” within braces [ ] in italics indicates that the above content is further extended to/ better clarified with details in, Appendix table, figure or chapter number as mentioned on the note. Example : “ [Note: Find list of respondents in Appendix : A] ” means it is mentioned in details in Apendix : A, Page : 128, at end of this report. NEWGATE INDIA, Bangalore Page 12
  13. 13. [ MARKET RESEARCH REPORT] JAN 2010 - 2012 Executive SummaryIn India telecommunication [GSM] service has played an important role in people’s lifesince early 2000. Telecomminication Industry is one of world’s fastest growingIndustry. GSM (Global System for Mobile Communication) technologies are used in theIndian mobile sector very extensively at current times. In India there are currently826.39 million mobile phone subscriber as on April-2011 reported by [TRAI] [37].Rising comptetition from various telecom operators in India due to privatization, [FDI] flow,liberazation of telecom industry, ease of tariff rates & bandwidth allocation by governtmenthave made telecom sector more prone for rapid innovation in market approach, to pick upthe gap in customers expectations. Now the companies are trying to retain theircustomers by providing various offers. They are trying to make their customer loyal to their existing brand. TheIndian consumers are enjoying wide range of services at the lowest possible tariffsrate in the world. Prices of teclecom services have started falling significantly due toprice wars . In India mobile operators keeps on coming with new offers, festivaldiscounts, free [sms] , [mms] ,unlimited basket offer, internet options, no roamingcharges which motivates customers to go for new operators and sometimes it alsocreates a lot of confusion while choosing operators due to ambiguity on personalpereferance. Various other alternatives like internet, [GPRS], [GPS], [3G], broadbandconnections have always attracted customers to go for new mobile operators. This research establishes a relationship between satisfaction level andvarious factors that would help in understanding the post purchase evaluationcriteria set by customers. The sector chosen is particularly [GSM] cellular service inIndia. It identifies various factors that influence consumer post purchase evaluation,prioritizes them and then finally demonstrates a relationship equation between thosefactors & customer satisfaction level. Research have also focused on understanding themarket share of various [GSM] operators, different tariff plans that customers prefer toavail, average call rates customers look for, extent to the usage of [GPRS]/Internet andother features like application download and ringtones subscription. It also throws light on people or factors influencing buying decision that makescustomer stick to any particular [GSM] operator over a period of time. This researchwill give a broad scope for marketers & product managers to promote & design [GSM]services in such a way that it has competitive edge over others. It will help indeveloping customer satisfaction level metrics that can can help in predictingcustomer response beforehand. It would support how customer loyalty can be gainedthrough effective [GSM] cellular service & which attributes needs to be given the topmost priorities. It will give deeper insight to marketers about how to modify servicefeatures on timely basis that can best fit to their target market and design the productin such a way that it is able to differentiate from rest of the market players. NEWGATE INDIA, Bangalore Page 13
  14. 14. [ MARKET RESEARCH REPORT] JAN 2010 - 2012 Chapter - 1 Introduction1A Introduction about studyThis is purely a cause affect research that has establish relationship betweensatisfaction level and various factors that would help in understanding the postpurchase evaluation criteria set by customers.1A.1 Research OverviewThe industry chosen is Telecom Industry & product is [GSM] cellular mobile SIM.This research other than just only setting 3 primary objectives as [Note: asmentioned in TABLE:1.1] , that is identifying the factors, prioritizing them and thendeveloping relationship equation to demonstrate cause effect relationship , havealso focused to understand the market share of various [GSM] operators, differenttariff plans that customers prefer to avail. What are the most important [STD] callrates , local call rates and roaming rates customers look for. What is the extent tousage of [GPRS] and internet and other features like application download, ringtonessubscription. It had cleared out whether customer care have any role in influencingcustomers buying. It has also focused on people who influence buying decision andwhen customer would stick to any particular [GSM] operator. This research alsofocuses on ratio quotient of prepaid versus postpaid services and gives a claritywhether factors like current location, current employer, current organization doplay any role in choice of a particular [GSM] operator. It will also help to understand that on what basis marketers evaluate aparticular [GSM] mobile operator in post purchase stage to decide whether they aresatisfied or not. Which factors consitute their satisfaction level & how those factorsare correlated with satisfaction level. This research will provide a deeper insight into various customer priortiesduring post purchase evaluation that sets a standard for service provider tounderstand that under what circumstances customers would respond positively ormay not revert back again [1][3]. NEWGATE INDIA, Bangalore Page 14
  15. 15. [ MARKET RESEARCH REPORT] JAN 2010 - 20121A.2 Purpose of conducting researchTo understand on what basis marketers evaluate a particular [GSM] mobileoperator on post purchase to decide whether they are satisfied or not. To knowwhat factors consitute their satisfaction level & how those factors are correlatedwith satisfaction level. Also to get a deeper insight into various customer priorties during postpurchase evaluation that sets a standard for service provider to understand whatare various customers preferances and under what circumstances customerswould respond positively or may not revert back again. [Note: All findings against each purpose is mentioned in Appendix-C/ Table 5.2 ]1A.3 Research MotivationBeing from telecommunication background with Bachelor of technology inElectronics telecommunication Engineering, it was very much important to know,how customer choose a particular [GSM] telecom operator . On what basis theyevaluate a particular operator after purchase. To know what factors consitutesatisfaction level & how those factors are correlated with satisfaction level. Also to get a deeper insight from marketers point of view that how exactlymarketing stratigies work in telecom industry. This research it would also help inacquiring bulk of information on current [GSM] market trading, tariffs plans,customer preferances, major market players, market shares and current businesstrends of [GSM] industry in India & also at global level.1B Research problemProblem Faced by Marketers: Difficulty in knowing the factors which makescustomer satisfied after post purchase evaluation of a particular GSM operator.Also on what circumstances or changes being made to each of those factors willimpact on rise or fall of satisfaction level. What attributes of services is utmostpriority to customer.1C Research topicTo identify & prioritize the factors that would make customer satisfied aftersubscription to any [GSM] operator in India & deriving a cause affect relationshipbetween those factors & customer satisfaction level. [Note: Customer priority matrix is mentioned in Appendix- F.1 ] NEWGATE INDIA, Bangalore Page 15
  16. 16. [ MARKET RESEARCH REPORT] JAN 2010 - 2012 1D Research objective 1D.1 List of proposed objectives in synopsis Table: 1.1 S.no Objectives Proposed 1. To identify the factors that would decide customers Objective:1 satisfaction level (Sa) after they subscribe to any GSM service. 2. To prioritize those identified factors based on their impact Objective:2 on satisfaction level of customer. 3. To design a cause affect relationship/X-Y/ statistical Objective:3 equation to prove relationship among those factors & customer satisfaction level. 1D.2 Proposed null hypothesis Table: 1.2 S.no Null Hypothesis Proposed There is a positive correlation between customer satisfaction Hypothesis : HA0 level (Sa) & quality of service (Q). There is a positive correlation between customer satisfaction Hypothesis : HB0 level (Sa) & Performance of service (R). There is a negative correlation between customer satisfaction Hypothesis : HC0 level (Sa) & price (P). There is a positive correlation between customer satisfaction Hypothesis : HD0 level (Sa) & Problem addressed by customers (P). There is a negative correlation between customer satisfaction Hypothesis : HE0 level (Sa) & Network traffic (N).[Note: Results of all above hypothese accepted/rejected is mentioned in Appendix-C / Table:5.1] NEWGATE INDIA, Bangalore Page 16
  17. 17. [ MARKET RESEARCH REPORT] JAN 2010 - 20121D.3 Assumptions consideredAssumption:1 All locations are considered to be equivalent while undergoing analysis.No distinction or emphasis was done based on different geographic locations.Assumption:2 This research didn’t include impact of gender , hence responses fromboth male & female were considered same.1E Need and Scope of study1E.1 Need It would help in effective designing of product based on the factors influencing customer satisfaction level as derived by the research and would support better understanding of consumer buying behavior and their preferences. The company which can adopt such initiative will gain competitive advantage over others and can have better understanding of consumer buying behavior. It will help in penetrating the market to a greater extent and will create a potential market to cater to customers1E.2 ScopeThis research will give a broad scope for marketers & product managers to promote& design [GSM] services in such a way that it will have competitive edge overothers. It will help in developing customer satisfaction level metrics that can beeasily measured for an average population and can help in predicting customerresponse beforehand. It would support a model equation to help marketers tomodify any selected factors for an existing service that will raise currentsatisfaction level . Research will also create a future scope to demonstrate howcustomer loyalty can be gained through effective [GSM] cellular service & whichattributes needs to be given the top most priorities.1E.3 Relevance to real world[GSM] cellular service has been one of the major fast growing consumer market inIndia and thus with increasing competition it would be necessary to establishmodels & equations that can be implemented in real time scenario to predict &calculate customers satisfaction level before hand and will help in understandingthat to what degree customers will be satisfied on post purchase evaluation.This will help marketers to modify its features & existing services on timely basisthat can best fit in to their target market and design product in such a way that it isable to differentiate from rest of the market players. NEWGATE INDIA, Bangalore Page 17
  18. 18. [ MARKET RESEARCH REPORT] JAN 2010 - 20121F. Limitations of the study This research doesn’t take into account how satisfaction level depends on demographic factors like age, culture & gender. It considers all geography locations & gender as same. The research focuses only on top most factors, eliminating other factors that may be influencing customer satisfaction level but their impact is less. This research itself may not conclude to solutions that will help in taking effective strategies, as the scope of this research generalizes the buying behavior of customers in India as a whole. To be able take effective decisions, a further extensive research has to be done *cluster wise based on age, gender, culture & locations of consumers.[Note: How to overcome this limitations, is mentioned in details in chapter-9, sections: 9A, 9B, 9C, 9D of this report]1G Industry OverviewThe vision of telecommunication in 2020 is a vision of information society built onan edifice where IT and telecommunication merge. They will be striving to spreadthe benefits to rural sector. More emphasis will be put on developing the humancapital, infrastructure and building capabilities and capacity for growth. The futureis visible with the advent of Web 2.0 and [MVNO] and strategies like developingstrong partnership skills, focusing on customer user groups, embracing internetservices will only enable the players to thrive well into the future.1G.1 Industry Details1G.1.1 Scope of Telecom sector in IndiaTelecommunication is important not only because of its role in bringing the benefitsof communication to every corner of India but also in serving the new policyobjectives of improving the global competitiveness of the Indian Economy andstimulating and attracting [FDI].Indian telecom is one of the fastest growing telecom markets in the world. Intelecom industry, service provider are the main drivers, whereas equipmentmanufacturers are witnessing growth and decline in successive quarters as sale isdependent on order undertaken by the companies. World telecom industry is goingto be a booming industry. NEWGATE INDIA, Bangalore Page 18
  19. 19. [ MARKET RESEARCH REPORT] JAN 2010 - 2012 1G.1.2 Regulatory frameworkThe Telecom Regulatory Authority of India [TRAI] was set up in March 1997 as aregulator for telecom sector. The TRAI’s functions are recommendatory,regulatory and tariff setting in telecom sector. Telecom Disputes settlement andAppellate Tribunal [TDSAT] came into existence in May 2000. [TDSAT] has beenempowered to adjudicate any dispute[34].  Between a licensor and a licensee  Between two or more service providers  Between a service provider and a group consumers  Hear and dispose of appeal against and direction, decision or order of [TRAI].1G.1.3 Evolution of Telecom sector in India Figure:1.1 PHASES OF EVOLUTION OF TELECOM SECTOR IN INDIA Source [49]: http://www.dbresearch.in NEWGATE INDIA, Bangalore Page 19
  20. 20. [ MARKET RESEARCH REPORT] JAN 2010 - 2012Private sector companies penetrated the telecommunication market in 1984.Various kindof equipment related to telecom sector started being manufactured. [MTNL] was formedto promote communication in the metro city Delhi and [VSNL] got started in 1986 toenable communicate abroad. In 1989 telecom commission was set up to regulate thetelecom sector [17] Liberalization of Indian economy and open competition was allowed. [TRAI]that’s is Telecom Regulatory Authority was established in 1997.New Telecom Policy[NTP] was announced in 1999 to regulate various companies and have control on Tariffsto meet Indian customer needs [17]. [BSNL] was established in 2000 to have [STD] connection all over India. It wasgreat initiative to connect whole India. National and International long distance servicescame into competition. License fees were reduced. Internet telephony and [CDMA]technology was initiated in 2000. In 2002 [VSNL] was privatized and [BSNL] launchedmobile services. Calling party pays was initiated in 2003 and broad band policy wasformulated in 2004. In 2005 [FDI] increased from 49% to 72%.Concept of numberportability was introduced in 2006 [17].1G.1.4 Role of Telecom sector in Indian Economy Figure:1.2 Source[49]: http://www.dbresearch.in NEWGATE INDIA, Bangalore Page 20
  21. 21. [ MARKET RESEARCH REPORT] JAN 2010 - 20121G.1.4.1 Direct Benefits  It contributes to Indian [GDP]  It generates revenue for nation thus increasing the national income  It provides employment1G.1.4.2 Indirect Benefits  It improves the existing flow of information system  Access of information in a simplified manner  Increases the speed of services  Increases productivity of business through voice and data services1G.1.5 GSM (Global System for Mobile Communications)  80% of the global market uses this standards.  It is used over 1.5 billion people across globe  Across 212 countries and territories have access to [GSM] services in India.  It differs from its predecessor technologies in both signaling and speech channels. It is a part of 2G (second generation) mobile system [18]1G.1.6 Benefits of GSM over CDMA Low cost in short message service [SMS] Wider network coverage at low cost Ability to roam and switch carriers without replacing phones[23].1G.2 Global contextThe telecom sector plays a vital role in the economic growth. In the beginning theU.S. telephone services was provided by American Telecom and Telegraph [AT&T].During the same period Great Britain’s national telephone company was sold toprivate investors as was Japan’s [NTT] telephone monopoly[22]. NEWGATE INDIA, Bangalore Page 21
  22. 22. [ MARKET RESEARCH REPORT] JAN 2010 - 20121G.2.1 World Telecom SectorLater [AT&T] was proving long distance connections to the other companies. In therecent year the world’s policy makers have recognized that telecom provides keyinputs for:  Economic Development  Contributes to global integration  Enhances public sector effectiveness  Efficiency and transparency [19]1G.2.2 Growth of Telecom sector world wideThe telecom industry has become a global combination industry. An industry iscalled combination industry when it combines the other industry’s product to serveits customers. The telecom industry is serving their customers by transportingelectronic communications which is combining with computers, media andpublishing products before being sold to its customers. Nippon Telegraph andTelephone [NTT] provides multimedia services as part of its global telecombusiness. Over the last decades the fixed line operators are affected as thecustomers are using email, online chat, and mobile text messaging instead oftraditional phone calls. [19] Chart:1.1 Worldwide Telecom Industry Revenue in billions Source[32]: http://www.3g.co.uk/PR/Dec2005/2388.htm NEWGATE INDIA, Bangalore Page 22
  23. 23. [ MARKET RESEARCH REPORT] JAN 2010 - 2012Next Generation Telecommunications has become very important for the emergingdigital economy. Some important services depend on [NGT] such as tele-health, e-education, e-business, digital media, e-government, environmental applications likesmart utility meters. [NGT] will take the form of wireless NGNs i.e. [WiMAX].1G.3 Indian context  MARCH 09-FEB 10, top 7 [GSM] + [CDMA] telecom have added more than 100 million sub base which near about 20% of total wireless sub-bases in India.  IDEA, TATA & AIRCEL were stable but all other like AIRTEl, VODAFONE, [BSNL] & RELIANCE were making loss of market share in last financial year(2009).  The growth of TATA Teleservices was quite high in terms of subscribers addition per month which was taken over by Vodafone in February 2010.1G.3.1 Growth In Subscriber Base Chart:1.2 Growth in Subscriber Base in million Source [38]: http://www.trai.gov.in/annualreportThis rapid growth has been possible due to various proactive and positivedecisions of the Government and contribution of both the public and private sector.The rapid strides in the telecom sector have been facilitated by liberal policies ofthe government that provides easy market access for telecom equipment and a fair NEWGATE INDIA, Bangalore Page 23
  24. 24. [ MARKET RESEARCH REPORT] JAN 2010 - 2012regulatory framework for offering telecom services to the Indian consumers ataffordable prices.1G.3.2 Top Seven Operators – GSM + CDMA – Monthly Net Additions Chart:1.3 Source[30]: http://telecomblogs.in/?p=776The chart shows the monthly net income addition of Top 7 operators in regards toaggregate of [GSM] and [CDMA] services in India. The maximum addition has beendone by AIRTEL followed by AIRCEL. Whereas RELIANCE,TATA & IDEA had lessermonthly income compared to Vodafone and [BSNL]. 1. TATA & AIRCEL showed a stable monthly addition over last year 2. Whereas Vodafone RELIANCE & IDEA were fluctuating a lot in the fiscal year. 3. The % monthly addition of [BSNL] and AIRTEL were quite stable NEWGATE INDIA, Bangalore Page 24
  25. 25. [ MARKET RESEARCH REPORT] JAN 2010 - 20121G.3.3 All India Wire line Subscriber Base Chart:1.4 Source [31]: http://telecomblogs.in/wp-content/uploads/2010/04/6.jpg  If we look at the charts above, we can find out how Tata (GSM+CDMA) has clearly dominated the sub addition scene in later half of year 2009.  In Broadband category, India has 80 lacks [BB] subscriber at the end of Feb- 10, as compared to 58 lacks in Mar-09. In implies only 2 million [BB] subscriber additions during one year period.1G.4 Current market scenarioThe telecom sector is growing very fast in India. It has become the second largesttelecom network in the world after China. [TRAI] has introduced significant policies.It let the telecom sector from monopolistic to open market for competition. TheIndian consumers are enjoying wide range of services at the lowest tariffs in theworld. The Indian telecom sector is growing by adding around 15 millionconnections per month. It has achieved its target of 500 million before the targeteddate.1G.4.1 Growth of subscriber base in India NEWGATE INDIA, Bangalore Page 25
  26. 26. [ MARKET RESEARCH REPORT] JAN 2010 - 2012 Chart:1.5 Growth of subscriber base from 1999 to 2009 (in million) 429.72 300.49 206.83 98.41 140.32 28.53 36.29 44.97 54.62 75.54 22.81 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source [38]: http://www.trai.gov.in/annualreportThere were 6.22 million broadband subscribers and 11.09 million internetsubscribers as on 31st 2009. The total subscriber base (both wireless and wire line)of telecom sector has achieved 429.72 million subscribers in India as on 31 st March2009.1G.4.2 Growth of Wire Line in India Chart:1.6 Wireline subscriber in million 41.43 41.54 40.75 40.09 39.42 37.96 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Source [38]: http://www.trai.gov.in/annualreportThe subscriber base was 37.96 million subscribers as on 31st March 2009. It wasdecreased by 1.46 million subscribers from the last year. The urban wire linesubscribers are 27.38 million out of 37.96 million. NEWGATE INDIA, Bangalore Page 26
  27. 27. [ MARKET RESEARCH REPORT] JAN 2010 - 20121G.4.3 Growth of Wireless Subscriber in India Chart:1.7 Wireless subscriber in million 391.76 261.07 165.11 90.14 52.22 33.69 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Source [38]: http://www.trai.gov.in/annualreportThe wireless subscriber base was 391.76 million at the end of March, 2008. 130.69million Subscribers are added over the last year. It shows 50 percent growth rate.1G.4.4 Growth of Internet Subscriber in India Chart:1.8 Internet subscriber in million 13.54 11.09 9.27 6.94 5.55 4.55 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Source [38]: http://www.trai.gov.in/annualreportThe internet subscriber base was 13.54 million as on 31st March 2009. The annualgrowth rate is around 22.09 percent over the last year. NEWGATE INDIA, Bangalore Page 27
  28. 28. [ MARKET RESEARCH REPORT] JAN 2010 - 20121G.4.5 Growth of Broadband subscriber in India Chart:1.9 Broadband subscribers 6.22 3.87 2.34 1.35 0.18 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Source [38]: http://www.trai.gov.in/annualreportThe total broadband subscriber was 6.22 million as on 31st March, 2009. It was 3.87million in the previous year. So the growth rate is 60.72 percent over the last year.1G.4.6 Growth of Tele density at India Chart:1.10 Growth of Teledensity in India 40 36.98 30 26.22 20 18.23 12.86 10 9.08 7.04 0 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Source[38]: http://www.trai.gov.in/annualreportThe tele density was 36.98 percent at the end of March, 2009. In the last year it was26.22 percent. It has been increased by 10.76 percent. NEWGATE INDIA, Bangalore Page 28
  29. 29. [ MARKET RESEARCH REPORT] JAN 2010 - 20121G.4.7 Growth of Wireless (GSM and CDMA) Services . Chart:1.11 300 250 200 Axis Title 150 GSM CDMA 100 50 0 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Axis Title Source[38]: http://www.trai.gov.in/annualreportThere were 297.26 (75.88%) million [GSM] and 94.50 (24.12%) millions of [CDMA]subscribers at the end of the financial year 2008-2009. Around 130.69 millionsubscribers were added during the financial year 2008-2009 and it shows thegrowth rate of 50.06 percent over the last year.1G.5 Future Projections1G.5.1 Revenue & Market Share  There would be a rise in worldwide Industry telecom Revenue to 5163.6 billion by 2020 which around an increase in 64%  There will be increase in Indian telecom revenue to 3742 billion by 2020 which will around increase in 116%  Growth of telecom industry is higher in case of India compared to growth at global level.  By 2020 India alone will constitute 72% of the shares in the telecom sector.  Tele density will substantially increase in exponential pattern with both increase in population and national income in India  Private sector will take over public sector in terms of number of subscribers. NEWGATE INDIA, Bangalore Page 29
  30. 30. [ MARKET RESEARCH REPORT] JAN 2010 - 2012 1G.5.2 GDP and Employment  Telecom sector will contribute to 3.65% of [GDP] by 2015  Direct Employment will substantially rise to 5,00,000 above in next 5 years  The major provider of telecom sector will be from Private companies 1G.5.3 Future TechnologyThe most common technology that will evolve will be  4G ( 4th generation of telecom sector)  Umbrella technology  Shorter Towers with wider coverage  Broad [GSM]  [RFID] & [GPRS] technology in lined with each other  3G is the abbreviation of Third Generation. It will be the next growth wave in the telecom sector. [WiMAX] provides seamless connectivity with a high speed more than 4 Mega bit per second . 4G is the abbreviation of Fourth Generation. It will be the future technology used in telecom sector. It is upgrade version of [3G]. It will have download speed at 100 Mega bit per second and 1 Giga bit per second for low mobility communication. It will provide all [IP] based mobile broad band solution to laptop, smartphones with high security[35]. Many companies have taken self-serving definition and distortions about 4G to suggest they have 4G already in existence today, such as several early trails and launches of [WiMAX]. Other companies have made prototype systems calling those 4G. It is possible that some current demonstrated technologies may become part of 4G, until 4G standards have been defined. The international telecommunication regulatory and standardization bodies are working for commercial deployment of 4G networks roughly in the 2012-15 time scale. At that point it is predicted that even with current evolutions of the 3G networks, these will tend to be congested [20][21]. NEWGATE INDIA, Bangalore Page 30
  31. 31. [ MARKET RESEARCH REPORT] JAN 2010 - 20121G.6 Major Market players in world marketAM StereoIn 1959 Petition was filled with [FCC] to adopt AM stereo standards. In 1970Magnavox,Motorala,Harris, Belar & Kaln started competing In 1980 Magnavox wasallowed In 1982FCC declared “let the market decide” .Later General MotorsElectronic division picked the Motorola AM stereo system.It was not cost effective.Digital Wireless PhoneEurope with a standard war in US. Europe adopted widely [GSM] (Global systemmobile communication.US adopted [GSM], [TDMA], [CDMA] Now some say that US is5 years behind Europe in wireless technology but some say [CDMA] technology wassuperior. Ericson: champion [TDMA].Qualcomm: Created [CDMA].Motorala haddisappeared: created [FDMA] .Switching to other technology needed to but newhandsets that was expensive Users of one system could make call to other systemthey could come up with handset where they could use both [GSM] & [CDMA]technology. [24]Rockwell LucentThe battle lines were drawn between Rockwell/Lucent & U.S. Robotics over theadvent of the path breaking 56k modem.56k modems was an epoch makinginnovation. The existing 28.8 kbps modem had been in place for long & observersbelieved that there can be no advancement in the near future. [ISDN] was not thesavior everyone expected it to be. The concept of asymmetric flow of information(downloading) lead to the advent of 56k.Consumers were unhappy with the limitedspeed offer by 28.8kAT&TIn 1913, telegraph was popular way of communication. [AT&T] commits to disposeits telegraph stocks and agreed to provide long distance connection toindependence telephone system.Bell System grew more under the name of [AT&T].Many of today’s companies face such issues as faced [AT&T] hundred years ago. In1956 the final judgment limited the BELL system to common carriercommunications and government projects but preserving the long-standingrelationship between the manufacturing, researches and operating arms of the Bellsystem. In this judgment [AT&T] retained bell laboratories and western ElectricCompany.[24] NEWGATE INDIA, Bangalore Page 31
  32. 32. [ MARKET RESEARCH REPORT] JAN 2010 - 20121G.7 Major Market players in Indian marketAirtel comes from Bharti Airtel Limited, one of Asia’s leading integrated telecomservices providers with operations in India and Sri Lanka. Bharti Airtel since itsinception, has been at the fore front of technology and has pioneered severalinnovations in the telecom sector. The company is structured into four strategicbusiness units – Mobile, Telemedia, Enterprise and Digital TV. The mobile businessoffers services in India and Sri Lanka. The Telemedia business provides broadband,[IPTV] and telephone services in 95 Indian cities. The Digital TV business providesDirect-to-Home TV services across India. The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international longdistance services to telcos [25].The Aircel group is a joint venture between Maxis Communications Berhad ofMalaysia and Sindya Securities & Investments Private Limited, whose currentshareholders are the Reddy family of Apollo Hospitals Group of India, with MaxisCommunications holding a majority stake of 74%. Aircel commenced operations in1999 and became the leading mobile operator in Tamil Nadu within 18 months. InDecember 2003, it launched commercially in Chennai and quickly established itselfas a market leader – a position it has held since[54].Vodafone Essar is the Indian subsidiary of Vodafone Group and commencedoperations in 1994 when its predecessor Hutchison Telecom acquired the cellularlicense for Mumbai. The company now has operations across the country with over85.82 million customers. Over the years, Vodafone Essar, under the Hutch brand,has been named the ‘Most Respected Telecom Company’, the ‘Best Mobile Service inthe country’ and the ‘Most Creative and Most Effective Advertiser of the Year’.Vodafone is the world’s leading international mobile communications group withpproximately 315 million proportionate customers as on 30 June 2009 [26]. NEWGATE INDIA, Bangalore Page 32
  33. 33. [ MARKET RESEARCH REPORT] JAN 2010 - 2012IDEA Cellular is a leading [GSM] mobile services operator in India with over 53million subscribers, under brand IDEA. It is a pan India integrated [GSM] operatorcovering the entire telephony landscape of the country. A front runner inintroducing revolutionary tariff plans, IDEA Cellular has the distinction of offeringthe most customer friendly and competitive Pre-Paid offerings, for the first time inIndia, in an increasingly segmented market. From basic voice & [SMS] services tohigh-end value added & [GPRS] services such as Blackberry, Data card, Mobile TV,Games etc. – IDEA is seen as an innovative, customer focused brand [29].BPL Mobile has had the privilege of serving the communications needs of thefinancial capital of India for the last 13 years. BPL Mobile has been rebranded asLoop Mobile in Mumbai. New identity, Loop Mobile, represents growth withcontinuity. While they constantly work towards giving their subscribers a betternetwork, innovative products and a superior mobile telephony experience.,Spice Telecom, the brand name of Spice Communications Limited is presentlyoperating Cellular Phone Services in the states of Punjab and Karnataka [53].A new mobile operator, with a localized approach to the Indian market. Theycombine the force of India’s second largest real estate company, Unitech Ltd andNorway-based Telenor, the 6th largest mobile communications group in the world.Now they are bringing their services and innovation in communications to India[55]. NEWGATE INDIA, Bangalore Page 33
  34. 34. [ MARKET RESEARCH REPORT] JAN 2010 - 2012Tata DOCOMO is Tata Teleservices Limited’s [TTSL] telecom service on the [GSM]platform-arising out of the Tata Group’s strategic alliance with Japanese telecommajor NTT DOCOMO in November 2008. Tata Teleservices has received a pan-Indialicense to operate [GSM] telecom services, under the brand .Tata DOCOMO and hasalso been allotted spectrum in 18 telecom Circles. [TTSL] and has already rolled outits services in various circles. The launch of the Tata DOCOMO brand marks asignificant milestone in the Indian telecom landscape, as it stands to redefine thevery face of telecoms in India [56].Reliance Communications is the flagship company of the Anil Dhirubhai AmbaniGroup [ADAG] of companies. Listed on the National Stock Exchange and the BombayStock Exchange, it is India’s leading integrated telecommunication company.Theirbusiness encompasses a complete range of telecom services covering mobiletelephony and data services along with an exhaustive range of value-added servicesand applications.RTL(Reliance Telecom Ltd.) is one of the oldest licensees ofCMSP.Its license dates back to 12.12.1995.[RTL] launched its [GSM] services duringOctober 1997.With the merger of RISL now [RTL] is operating in 8 Telecomcircles[50].Bharat Sanchar Nigam Ltd. formed in October, 2000, is World’s 7th largestTelecommunications Company providing comprehensive range of telecom servicesin India: Wire line, [CDMA] mobile, [GSM] Mobile, Internet, [BB], Carrier service,[MPLS]-[VPN], [VSAT], [VoIP] services etc. Presently it is one of the largest & leadingpublic sector unit in India. [BSNL] is the only service provider, making focusedefforts and planned initiatives to bridge the Rural-Urban Digital Divide [ICT] sector.In fact there is no telecom operator in the country to beat its reach with its widenetwork giving services in every nook & corner of country and operates across Indiaexcept Delhi & Mumbai. Whether it is inaccessible areas of Siachen glacier andNorth-eastern region of the country[27]. NEWGATE INDIA, Bangalore Page 34
  35. 35. [ MARKET RESEARCH REPORT] JAN 2010 - 2012Etisalat DB India Pvt. Ltd has been awarded the Unified Services Access License in15 circles including Andhra Pradesh, Delhi, Gujarat, Haryana, Karnataka, Kerala,Maharashtra, Mumbai, Punjab, Rajasthan, Tamil Nadu (including Chennai), UttarPradesh (East), Uttar Pradesh (West), Madhya Pradesh and Bihar.These licensesenable the Company to provide a full spectrum of telecom services covering apopulation of over 900 million across India. The services will include national &international long distance telephony solutions, full range of prepaid & postpaidproducts, national & international roaming and Value Added Services whichincludes Voice Mail, Audiotex services, Video Conferencing, Videotex, E-Mail, ClosedUser Group. Under the license the Company can also provide Internet Telephony,Internet Services and Broadband Services [56]Datacom Solutions Pvt Ltd. offers telecommunication services. The company isbased in India. Datacom Solutions Pvt Ltd. operates as a subsidiary of VideoconIndustries Ltd [56]India’s privately owned STel Ltd. is planning to roll out its mobile phone services inIndia. STel is in “final negotiations” to outsource its network and technologyrequirements and is also in talks with various tower companies to shareinfrastructure. New telecom service providers in India opt to share passiveinfrastructure such as telecom towers and outsource non-core activities such asnetwork and technology management, to reduce costs and roll out servicesfaster.STel has licenses to provide mobile phone services in the eastern states ofBihar and Orissa, the northern states of Jammu & Kashmir and Himachal Pradesh,India’s northeastern region and the state of Assam [52]. NEWGATE INDIA, Bangalore Page 35
  36. 36. [ MARKET RESEARCH REPORT] JAN 2010 - 20121G.8 Market Share1G.8.1 Market Share of GSM service in IndiaCurrently - Airtel, Reliance, Vodafone, Tata, [BSNL], Idea, Aircel stand in top 6. It isimportnat to see what happens after [MNP] - Mobile Number Portability. [MNP]analysis takes time for official release from Trai.Revenue Market share.. One goodstrategy about Airtel is Grow consolidate and then back to the Growth cycle and thespiral continues. Bharti Airtel has 24.3% customer market share and 33.8% revenue market share. Vodafone India has 18.8% customer market share and 20.7% revenue market share. Idea Cellular has 11.2% subscribers market share and 12.1% revenue market share [BSNL] has subscriber share of 12.7% and mere 10.2% of revenue share Reliance Communications is the worst performer with 18.9% customer market share and pathetic 11.5% revenue market share. Chart:1.12 Sources [48] : http://www.gobroadband.in NEWGATE INDIA, Bangalore Page 36
  37. 37. [ MARKET RESEARCH REPORT] JAN 2010 - 20121G.8.2 Market Share regional basis in WorldWorld telecom Industry is an uprising industry, proceeding towards a goal ofachieving two third of worlds telecom connections. Over the past few years’information and communications technology has changed in dramatic mannersand as a result of that world telecom industry is going to be a booming industry.Substantial economic growth and mounting population enable the rapid growthof this industry.  The world telecom industry is expected to grow by 11%  The total revenue earned from this industry is 3% of the gross world economy  16.9% of the world population has access to internet. Chart:1.13 Market Share Region Wise in World Source [48] : http://www.trai.gov.in/annualreport NEWGATE INDIA, Bangalore Page 37
  38. 38. [ MARKET RESEARCH REPORT] JAN 2010 - 2012 1G.8.3 Market Share Regional basis in IndiaThe Indian telecom services with 203 million connection is the 3 rd largest Telecomnetwork in the world & 2nd largest among the emerging economies of Asia. Today, itis one of the fastest growing markets in the world. The Telecommunication sectorcontinued to register significant success during the year and has emerged as one ofthe key sectors responsible for India’s economic growth  Telecom sector in India comprises 3% of India’s [GDP] alone. Likely to be double by 2012.  Telecom services contribute 30% of India’s Total Tax revenue.  Indian Telecom sector gives direct employment to more than 4, 00,000 people compared to 6, 00,000 people in china. Chart:1.14 Market Share Region Wise in India Source [48]: http://www.trai.gov.in/annualreport [Note: Market share calculated as per this research is mentioned in Appendix: F.2/ Chart 4.7 ; Table:4.4] NEWGATE INDIA, Bangalore Page 38
  39. 39. [ MARKET RESEARCH REPORT] JAN 2010 - 2012 Chapter - 2 Review of Literature2A. Research papers reviewedJeewon Choi, Hyeonjoo Seol, Sungjoo Lee, Hyunmyung Cho, Yongtae Park,(2008) . In their research paper they have said that the purpose of this paper is todistinguishes features of mobile-commerce from those of e-commerce and identifyfactors to influence customer satisfaction (mobile-satisfaction) and loyalty (mobile-loyalty) in mobile-commerce by empirically-based case study. The paper finds thatm-commerce is partially similar in factors like “transaction process” and“customization” which lead customer satisfaction after connecting an m-commercesite, but it has unique aspects of “content reliability”, “availability”, and “perceivedprice level of mobile Internet (m-Internet)” which build customers intention to them-commerce site. Through the m-satisfaction model, “content reliability”, and “transactionprocess” are proven to be significantly influential factors to m-satisfaction and m-loyalty. The paper meets the needs to focus on customer under the fiercercompetition in Korean m-commerce market. It can guide those who want to initiate,move or broaden their business to m-commerce from e-commerce. The paperdevelops a revised ACSI model to identify individual critical factors and the degree ofeffect.References [8]: Jeewon Choi, Hyeonjoo Seol, Sungjoo Lee, Hyunmyung Cho, YongtaePark, (2008) "Customer satisfaction factors of mobile commerce in Korea", InternetResearch, Vol. 18 Iss: 3, pp.313 – 335URL Link: http://www.emeraldinsight.com/journals.htm?issn=1066-243&volume=18&issue=3 &articleid= 1729308 & show=abstractHsin Hsin Chang, Hsin-Wei Wang, (2011) . The purpose of this research is toexamine the impact of e-service quality, customer perceived value, and customersatisfaction on customer loyalty in an online shopping environment. The studydemonstrated that e-service quality and customer perceived value influencecustomer satisfaction, and then influence customer loyalty. In addition this studyfound that customers with a high perceived value have a stronger NEWGATE INDIA, Bangalore Page 39
  40. 40. [ MARKET RESEARCH REPORT] JAN 2010 - 2012relationship.between satisfaction and customer loyalty than customers with a lowperceived value. there are emotional and rational routes influencing customer loyaltyin the online shopping process. This will contribute to other research that clarifiesthe influencing process of online shoppers motivation and behavior. In the pre-purchase stage, online retailers should focus on attracting consumers by the qualityof e-service. In the purchase stage, online retailers should address the emotionalfactors, such as customer satisfaction. In the post-purchase stage, rational factors – such as customer perceived valueplay important roles because they can strengthen the relationship betweensatisfaction and loyalty. In the pre-purchase stage, online retailers should focus onattracting consumers by the quality of e-service. In the purchase stage, onlineretailers should address the emotional factors, such as customer satisfaction. In thepost-purchase stage, rational factors – such as customer perceived value – playimportant roles because they can strengthen the relationship between satisfactionand loyalty.References [9]: Hsin Hsin Chang, Hsin-Wei Wang, (2011) "The moderating effect ofcustomer perceived value on online shopping behaviour", Online Information Review,Vol. 35 Iss: 3, pp.333 – 359URL Link: http://www.emeraldinsight.com/journals.htm?issn=0887-6045& volume=25&issue=1&articleid=1906302&show=abstractPaul Williams, Earl Naumann, (2011), This research study aims to examine therelationships between customer satisfaction and a variety of company performancemetrics at the firm-level of analysis. It was found that there are significant, andmoderate-to-strong associations between satisfaction levels and a firms financialand market performance. More specifically, there are strong links between customersatisfaction, and retention, revenue, earnings per share, stock price, and Tobins q.The main implication of this study is that the longitudinal findings demonstrate astrong consistent link between customer attitudes and financial performance at thefirm level. The study is clearly limited to one firm, from one industry sector, butoffers future researchers a wealth of replication opportunities. Numerous experts have noted that marketing needs to document the financialimpact of marketing activities. Unlike most studies in this area, this studyinvestigated these associations at the firm level, rather than at the aggregate orindustry level where some relationships are potentially masked. The study alsoinvestigated the links between satisfaction and financial performance in thebusiness-to-business services sector, rather than in business-to-customer services. NEWGATE INDIA, Bangalore Page 40
  41. 41. [ MARKET RESEARCH REPORT] JAN 2010 - 2012Finally, the firm provided access to large samples of real customer attitude data overa five-year period, rather than from a cross-sectional study.References [10]: Paul Williams, Earl Naumann, (2011) "Customer satisfaction andbusiness performance: a firm-level analysis", Journal of Services Marketing, Vol. 25 Iss:1, pp.20 - 32URL Link: http://www.emeraldinsight.com/journals.htm?issn=0954-478X&volume=1&issue=2&articleid=841345&show=abstractPingjun Jiang, Bert Rosenbloom, (2005), In his research paper Jiang says that thepurpose is to compare & emphasize that in service quality of online marketing,much less work has been done on the role of price perception, service attribute-levelperformance and satisfaction that unfolds over time, and their effects on customerretention. This paper seeks to fill this gap in the literature. The findings of this studyindicate that after-delivery satisfaction has a much stronger influence on bothoverall customer satisfaction and intention to return than at-checkout satisfaction,and that price perception, when measured on a comparative basis, has a direct andpositive effect on customer overall satisfaction and intention to return.This paperconcludes that excellence pre-sales service is not necessarily an advantage thatallows e-tailers to develop customer retention. In fact, e-tailers might commandhigher customer retention through providing good performance in after-deliveryservice and continuously generating favorable price perceptions among customersbecause both have a strong and positive influence on return intention. This researchconceptualizes and explores different aspects of satisfaction that unfold over time,regarding customers whole shopping experience with a particular e-retailer. It is apioneer work that empirically investigates the relative contribution of at-checkoutand after-delivery satisfaction in generating intention to return to an e-tailer.References [11]: Pingjun Jiang, Bert Rosenbloom, (2005) "Customer intention toreturn online: price perception, attribute-level performance, and satisfaction unfoldingover time", European Journal, Vol. 39 Iss: 1/2, pp.150 - 174URL Link: http://www.emeraldinsight.com/journals.htm?issn=0309-0566&volume=39&issue=1/2&articleid=1463187&show=abstract NEWGATE INDIA, Bangalore Page 41
  42. 42. [ MARKET RESEARCH REPORT] JAN 2010 - 2012Li-Wei Wu, (2011), Purpose of this research is empirically studying andinvestigating the antecedents of customer loyalty typically focusing on satisfaction.This study aims to develop and test a more comprehensive model of the antecedentsof customer loyalty, including satisfaction and inertia. In addition, this study alsoconsiders how the effects of satisfaction and inertia on customer loyalty vary withdiffering levels of the zone of tolerance (ZOT), and how these are likely to changedue to customers alternative attractiveness. The results show that a wider level ofthe ZOT strengthens the positive effect of inertia on customer loyalty, while alsoreducing the positive effect of satisfaction. The results also indicate that the negativemoderating effect of the ZOT on the relationship between satisfaction and customerloyalty will reduce as alternative attractiveness increases. In contrast, the positivemoderating effect of the ZOT on the relationship between inertia and customerloyalty will reduce as alternative attractiveness increases. This study is a first attempt to integrate the ZOT to determine the relativeimportance of satisfaction and inertia in determining customer loyalty. In addition,this study suggests that customers with higher perceptions of alternativeattractiveness are more likely to experience changes in the influence of the ZOT ontheir loyalty decisionsReferences [12]: Li-Wei Wu, (2011) "Satisfaction, inertia, and customer loyalty inthe varying levels of the zone of tolerance and alternative attractiveness", Journal ofServices Marketing, Vol. 25 Iss: 5, pp.310 – 322URL Link: http://www.emeraldinsight.com/journals.htm?issn=0887-6045&volume=25&issue=5&articleid=1941501&show=abstract2B. Articles reviewedMike Asher, (2006) , In his article Mike says that to maintain the competitive edge,organizations must move quickly to identify and then meet customer satisfaction.Examines methods of identifying customer satisfaction, measuring and using theresults to improve the quality of products and services. Sees customer satisfaction asthe end product. Advises on how to identify and implement a quality improvementprogramme. Contends that complete customer satisfaction is only possible whenthere is full information about customer requirements in the hands of all andeveryone who has influence on how they are met. Concludes that, by getting it rightfirst time, the whole customer/supplier chain focuses on meeting the needs of theexternal customer, and providing customer satisfaction NEWGATE INDIA, Bangalore Page 42
  43. 43. [ MARKET RESEARCH REPORT] JAN 2010 - 2012References [13]: Mike Asher, (2006) ,” Measuring Customer Satisfaction “,The TQMMagazine, Vol. 1, Issue: 2URL Link: http://www.emeraldinsight.com/journals.htm?issn=0887-6045&volume=25&issue=1&articleid=1906302&show=abstracRade B. Vukmir, (2006), This article paper seeks to present an analysis of theliterature examining objective information concerning the subject of customerservice, as it applies to the current medical practice. Hopefully, this information willbe synthesized to generate a cogent approach to correlate customer service withquality. There is a significant lack of objective data correlating customer serviceobjectives, patient satisfaction and quality of care. Patients present predominantlyfor the convenience of emergency department care. Specifics of satisfaction aredirected to the timing, and amount of “caring”. Demographic correlates includingsymptom presentation, practice style, location and physician issues directly impacton satisfaction. It is most helpful to develop a productive plan for the “difficultpatient”, emphasizing communication and empathy. Profiling of the customersatisfaction experience is best accomplished by examining the specifics ofsatisfaction, nature of the ED patient, demographic profile, symptom presentationand physician interventions emphasizing communication – especially with thedifficult patient. The current emergency medicine customer service dilemmas are a complexinteraction of both patient and physician factors specifically targeting both efficiencyand patient satisfaction. Awareness of these issues particular to the emergencypatient can help to maximize efficiency, minimize subsequent medicolegal risk andimprove patient care if a tailored management plan is formulated.References [14]: Rade B. Vukmir, (2006) "Customer satisfaction", InternationalJournal of Health Care Quality Assurance, Vol. 19 Iss: 1, pp.8 – 31URL Link: http://www.emeraldinsight.com/journals.htm?issn=0952-6862&volume=19&issue=1&articleid=1541773&show=abstract NEWGATE INDIA, Bangalore Page 43

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