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Exploration of Value Phenomenon in Service Industry:A Case of Telecom Sector By Group 10 & 3
The Indian telecom industry  The Indian telecom network: the third largest in the world and the second largest among the emerging economies of Asia.  It is the second largest in terms of number of wireless connections.  Huge subscriber base with 525 million connections. There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country.
Major players... There are three types of players in telecom services: State owned companies (BSNL and MTNL) Private Indian owned companies (Reliance Infocomm, TataTeleservices,) Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications)
Objectives of our research.. To understand the meaning of value, and how it is perceived by the customers of telecom services. To analyse the differences between the past and present perceptions of consumers as far as the concept of value is concerned.   To compare the customer’s present satisfaction level with the help of various variables.   To perform a comparative analysis of all major telecom players in India.   To perform a gap analysis between the perception of telecom service managers and customers expectation with respect to value creation.
Hypothesis for research... H01 = There is no significant difference between the past and the present perceptions of the consumers regarding value from telecom services H02 = There is no significant difference in the perception of telecom service managers and 	customers with respect to value creation H03= There is no linear relation between the dependent variable i.e. customer satisfaction and independent variables
Test variables... Network Call Rates SMS Rates Roaming Charges Voice Quality Easy Availability Brand Image Flexible Plans Customer care services 3G facilities Internet services VAS CDMA/GSM
Consumer’s Perceptions in the Past Reliability test: (Cronbach Alpha) Cronbach Alpha = 0.75 Call rates and SMS rates are two variables for which the Cronbach alpha value increases if any of these item is deleted
What was important in the past...
Consumer’s Perceptions in the Present... ,[object Object]
Cronbach Alpha = 0.783
CDMA/GSM Preference is the variable for which the Cronbach alpha value  increases if it is deleted ,[object Object]
What is important in the present...
Results of paired sample t-test for difference in customer perception of value in the past and in the present scenario: Network/Connectivity
Brand Call rates SMS Rates Flexibility of plans
Factor Analysis				-past perception KMO and Bartlett's Test	 Kaiser-Meyer-Olkin Measure of Sampling Adequacy.	.711	 Bartlett's Test of Sphericity	Approx. Chi-Square	395.961	 df	78	 	Sig.	.000
Regression Analysis... To determine whether the independent variables (various attributes) explain a significant variation in the dependent variable overall satisfaction level. To determine how much of the variation in the dependent variable can be explained by the independent variables To determine the mathematical equation relating the independent and dependent variables
Results... Network, call rates, SMS rates and schemes offered are the variables which have the most significant correlation with overall satisfaction The R-Square value 0.670 depicts that the 67% proportion of variation in the dependent variable is explained by the independent variables. Cust_sat = -0.487 + 0.451*(Network) + 0.266*(Call_Rates) + 0.182*(SMS_Rates) +  0.228*(Schemes_Offered) + 0.654
Regression analysis between customers’ satisfaction level and the time duration of using telecom service (Mobile services): The correlation between the satisfaction level and the service use period is -0.088 The ANOVA test is also significant which shows that the null hypothesis is not rejected, which means that the association between the two variables is not significant.
A comparative analysis of the major service providers...
Gap Analysis of the Managers’ and Customers’ perception... There exists a significant difference of 57.1% between the managers’ and customers’ perception on network connectivity. There exists a significant difference of 51.0% between the managers’ and customers’ perception on call rates. There exists a significant difference of 76.7% between the managers’ and customers’ perception on SMS rates.
There is no significant difference in the managers’ and customers’ perception on Roaming. There is no significant difference in the managers’ and customers’ perception on Ease of availability. There exists a significant difference of 131.2% between the managers’ and customers’ perception on value added services.
Conclusion of the study... Customers are giving importance to network, call rates and sms rates with the call rates being given the highest priority.  Schemes and offers are going to affect the future telecom industry.  Though brand image is important but voice quality will be given preference over the brand image.  But in the past, connectivity was not as important as the call rates.
Roaming services were not important as mobile telephony wasn’t a wide phenomenon. However, it is gaining a lot of importance now-a-days. Customer care services and internet services were important factors  in the past and continue to be in the present. 3G technology is yet to make a mark. Most of the customers that we surveyed weren’t influenced by services like the ringtones, caller tunes and it was found that these were unimportant.

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Exploration Of Value Phenomenon In Service Industry

  • 1. Exploration of Value Phenomenon in Service Industry:A Case of Telecom Sector By Group 10 & 3
  • 2. The Indian telecom industry The Indian telecom network: the third largest in the world and the second largest among the emerging economies of Asia. It is the second largest in terms of number of wireless connections. Huge subscriber base with 525 million connections. There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country.
  • 3. Major players... There are three types of players in telecom services: State owned companies (BSNL and MTNL) Private Indian owned companies (Reliance Infocomm, TataTeleservices,) Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications)
  • 4. Objectives of our research.. To understand the meaning of value, and how it is perceived by the customers of telecom services. To analyse the differences between the past and present perceptions of consumers as far as the concept of value is concerned.   To compare the customer’s present satisfaction level with the help of various variables.   To perform a comparative analysis of all major telecom players in India.   To perform a gap analysis between the perception of telecom service managers and customers expectation with respect to value creation.
  • 5. Hypothesis for research... H01 = There is no significant difference between the past and the present perceptions of the consumers regarding value from telecom services H02 = There is no significant difference in the perception of telecom service managers and customers with respect to value creation H03= There is no linear relation between the dependent variable i.e. customer satisfaction and independent variables
  • 6. Test variables... Network Call Rates SMS Rates Roaming Charges Voice Quality Easy Availability Brand Image Flexible Plans Customer care services 3G facilities Internet services VAS CDMA/GSM
  • 7. Consumer’s Perceptions in the Past Reliability test: (Cronbach Alpha) Cronbach Alpha = 0.75 Call rates and SMS rates are two variables for which the Cronbach alpha value increases if any of these item is deleted
  • 8.
  • 9. What was important in the past...
  • 10.
  • 12.
  • 13. What is important in the present...
  • 14. Results of paired sample t-test for difference in customer perception of value in the past and in the present scenario: Network/Connectivity
  • 15. Brand Call rates SMS Rates Flexibility of plans
  • 16. Factor Analysis -past perception KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .711 Bartlett's Test of Sphericity Approx. Chi-Square 395.961 df 78 Sig. .000
  • 17.
  • 18.
  • 19.
  • 20. Regression Analysis... To determine whether the independent variables (various attributes) explain a significant variation in the dependent variable overall satisfaction level. To determine how much of the variation in the dependent variable can be explained by the independent variables To determine the mathematical equation relating the independent and dependent variables
  • 21.
  • 22.
  • 23. Results... Network, call rates, SMS rates and schemes offered are the variables which have the most significant correlation with overall satisfaction The R-Square value 0.670 depicts that the 67% proportion of variation in the dependent variable is explained by the independent variables. Cust_sat = -0.487 + 0.451*(Network) + 0.266*(Call_Rates) + 0.182*(SMS_Rates) + 0.228*(Schemes_Offered) + 0.654
  • 24. Regression analysis between customers’ satisfaction level and the time duration of using telecom service (Mobile services): The correlation between the satisfaction level and the service use period is -0.088 The ANOVA test is also significant which shows that the null hypothesis is not rejected, which means that the association between the two variables is not significant.
  • 25. A comparative analysis of the major service providers...
  • 26. Gap Analysis of the Managers’ and Customers’ perception... There exists a significant difference of 57.1% between the managers’ and customers’ perception on network connectivity. There exists a significant difference of 51.0% between the managers’ and customers’ perception on call rates. There exists a significant difference of 76.7% between the managers’ and customers’ perception on SMS rates.
  • 27. There is no significant difference in the managers’ and customers’ perception on Roaming. There is no significant difference in the managers’ and customers’ perception on Ease of availability. There exists a significant difference of 131.2% between the managers’ and customers’ perception on value added services.
  • 28.
  • 29.
  • 30. Conclusion of the study... Customers are giving importance to network, call rates and sms rates with the call rates being given the highest priority. Schemes and offers are going to affect the future telecom industry. Though brand image is important but voice quality will be given preference over the brand image. But in the past, connectivity was not as important as the call rates.
  • 31. Roaming services were not important as mobile telephony wasn’t a wide phenomenon. However, it is gaining a lot of importance now-a-days. Customer care services and internet services were important factors in the past and continue to be in the present. 3G technology is yet to make a mark. Most of the customers that we surveyed weren’t influenced by services like the ringtones, caller tunes and it was found that these were unimportant.