This document presents the results of a conjoint analysis marketing study on consumer preferences for 3G mobile services. The study identified the key attributes that influence consumer choice as connectivity, speed, tariff, company and customer service. The conjoint analysis found that connectivity has the strongest influence on preferences. While tariff is less important than connectivity and speed, customer service has the lowest impact. The utilities scores show that Airtel has the highest utility even with poor customer service due to its strength in other attributes. For competitors to gain market share, the summary suggests improving customer service, lowering tariffs, or enhancing speed.

1. Marketing Research on – 3G Preference A Conjoint Analysis ALOK PRATAP SINGH Ph. 9266351033 E-mail:alokpratap347@gmail.com

2. Plan of the Presentation Defining the marketing objective. Identify marketing problem and research problem The business model Marketing research methodology Tabulation and Analysis

4. The question which is baffling the service operators, how consumers are going to choose them?

6. Marketing research problem Our marketing research problem “To Determine criterion which weigh heavily in choosing among different service providers?” “To determine the price elasticity of demand and its impact on sales” “What combination of variable would gives us maximum sale and the optimum output?”

7. Business Model Road Map of our marketing research A review of trade articles related to 3G and secondary data from IMRB, Neilson were used in further understanding the market. An exploratory research was conducted among the students of MDI to find out the variables that plays important role in deciding the price. After zeroing down on variables, another pilot study was conducted among the student community to determine the relative importance consumer attach to these variables. Stimuli : Combination of attribute levels Respondents : Evaluation of attributes in terms of desirability

8. The Research Methodology Objective/Theoretical Framework Mathematical Model Y = ∑ ax Where Y = degree of preference a = model parameter to be estimated statistically x = attribute of service operator that constitute the choice criteria

9. The Research Methodology Survey Personal In Home Interviews Structured Questionnaire Ordinal Scale Sampling Design Process Target Population Elements – Male or Female above 16 years to 60 years of age. Sampling Units – Mobile phone users with data usage(SMS) Extent – Gurgaon Time – 2011 Sampling Frame All the students of MDI, Gurgaon

10. The Research Methodology Sampling Technique Sample with replacement and non probability sampling i.e. Convenience Sampling. Sample Size A sample size of 32 has been chosen. Data Preparation & Analysis Conjoint Analysis

11. Conjoint Analysis -Attribute Detail Speed : 0.5-1 Mbps 1-3 Mbps 3-5 Mbps >5 Mbps Company : Reliance, Vodafone Airtel Customer Service: Excellent, Poor Connectivity : Uninterrupted Breaking Tariff for unlimited Data Uses : <999 1000-1499 1500-1799 >1800

12. Conjoint Analysis - Constructing the Stimuli Full Approach: The respondents rank the cards according to their preferences. Each profile describes a complete services and consists of a different combination of factor levels for all factor of interest. An orthogonal Array: A resulting set of 16 orthogonal array is designed with the help of SPSS to capture the main effect for each factor level. Experimental Stimuli: Each set of orthogonal design represents a different version of the product under study.

13. Conjoint Analysis - Card Design COMPANY : Airtel Customer Service : Poor Connectivity : Breaking Tariff for Unlimited Uses : 1500-1799/- Speed : 0.5 – 1 Mbps 1500-1799/- 0.5 -1 Mbps

14. Conjoint Analysis - Running the Analysis For analyzing the data command syntax – specifically CONJOINT Command. Conjoint PLAN='C:ocuments and SettingslokesktopelecomonjointRTHO.sav'/DATA='C:ocuments and SettingslokesktopelecomonjointankingSPSS.sav'/RANK=RankCard1 TO RankCard16/SUBJECT=Respondent / PRINT=SUMMARYONLY/PLOT=ALL/UTILITY=RUGUTILL.

15. Conjoint Analysis - Interpreting the Results Relative Importance 29% 22% 19% 15% 15%

16. Conjoint Analysis - Interpreting the Results Relative Importance The result shows that connectivity has the most influence in overall preference. Tariff is coming at third position and therefore it is not as important as Connectivity and Speed. Surprisingly Customer Service has the least importance role in determining customer preference.

17. Conjoint Analysis - Interpreting the Results

18. Conjoint Analysis - Interpreting the Results Utility Score : Since the utilities are all expressed in common unit, they can be added together to give the total utility of any combination. 1= .895 Utility (Airtel) + Utility (Customer Service) + Utility (Connectivity) + Utility (Tariff) + Utility (Speed) = (0.895)+(-1.156)+(2.102) +(-3.033)+(3.225) =2.033 2=-1.156 Airtel 2.033 5=3.22 3= 2.102 Airtel even with Poor customer Service and High Tariffs i.e. 1500 -1799/- scoring total utility of 2.033 4=-3.03

19. Conjoint Analysis -Interpreting the Results Utility Score : Utility (Vodafone) + Utility (Customer Service) + Utility (Connectivity) + Utility (Tariff) + Utility (Speed) = (-.328)+(-1.156)+(2.102) +(-3.033)+(3.225) =0.81 1= .328 2=-1.156 Vodafone 0.81 With similar utilty like Airtel, Vodafone would loose market share. To gain an edge over Airtel, it needs to Improve Customer service OR Lowering the tariff from 1500-1799/- to 1000-1499/- and improving the speed beyond 5 Mbps 5=3.22 3= 2.102 4=-3.03

20. Conjoint Analysis - Interpreting the Results Utility Score : Utility (Vodafone) + Utility (Customer Service) + Utility (Connectivity) + Utility (Tariff) + Utility (Speed) = (-.566)+(-1.156)+(2.102) +(-3.033)+(3.225) =0.572 1= .328 2=-1.156 Reliance 0.572 Reliance is at a very precarious situation, it can compete only if, Improve Brand Image & Customer service OR Lowering the tariff from 1500-1799/- to 1000-1499/- and improving the speed beyond 5 Mbps 5=3.22 3= 2.102 4=-3.03

21. Conjoint Analysis - Interpreting the Results Utility Score: It’s obvious increasing Speed is technically not feasible for the Companies. Therefore they will either resort to Connectivity, Customer Service or Lowering the tariff. In case of Reliance, which has a low Brand Image, it should concentrate on uninterrupted connectivity and following it up with Brand Building exercise. Third option for them is improving the Customer Service.

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