A RESEARCH PROJECT

On
CUSTOMER PERCEPTION AND SATISFACTION (A COMPARATIVE STUDY OF CELLULAR SERVICES BSNL, AIRTEL. VODAFONE, IDEA) IN CHANDIGARH.
A research project submitted in partial fulfillment of the Requirement of MBA program of Punjab Technical University, Jalandhar.

Submitted by:
Ravinder Vikram Chandel MBA IV Semester Roll No: 80911317044

Aryans Business School (ABS)

Nepra (Banur), Chandigarh-Patiala Highway Near Chandigarh

DECLARATION
Certified that I Ravinder vikram chandel of Master of Business Administration (MBA) have prepared report titled Customer Perception and Satisfaction (A comparative study of cellular services BSNL, AIRTEL, VODAFONE, IDEA in Chandigarh under the guidance of Ms. Varinder Kaur , in the partial fulfillment of the requirements for the degree of Master of Business Administration. There by certify that no part of this report has been submitted for any other degree.

Ravinder vikram chandel. Roll No: 80911317044 MBA 4th Sem

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ACKNOWLEDGEMENT
I am thankful to Almighty who is most merciful & express my deep sense of gratitude to my esteemed guide Ms. Varinder who helped me throughout the course of study.I express thanks to other lecturers of Management Dept. especially Mr.Duggal, who helped me in my endeavour and clarifying my doubts.I am also thankful to my Parents who supported me, encouraged me and helped in preparation of this report. Thanks to my friends with whom I discussed my problems regarding preparation of report. Last but not least, I can say that much, that all are not be mentioned but none is forgotten.

Ravinder vikram chandel Roll No: 80911317044 MBA 4th Sem.

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PREFACE

The Most motivating aspect associated with pursuing a course in management or Business studies is the dynamism associated with it. Dynamism of adding a new perspective to ones personality and vision by accumulating wider knowledge, developing analytical skill not only by traditional ways of teaching and learning but by observing thongs at works . The project gives a considerable exposure to students and provides them with an opportunity to see the practical aspects of corporate world. The project is an opportunity to see the application part of what we study or learn in classroom. Management is that function of an enterprise, which concerns itself with the direction, and control of the various activities to attain business objectives. It is the science and art of preparing,

organizing and directing human efforts to control the force and utilize the materials of nature for the benefits of men. As a matter of fact, the management thereby provides the scientific technique to deal with the various problems in the areas of management and the manager mixes some art to it tries to shorten the gap of ignorance. It provides a chain of solution to critical problems of a manager.

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I have been given by final project on the topic Customer Perception and Satisfaction A Comparative Study of Cellular Services (Vodafone, Airtel, BSNL, Idea) in Chandigarh. The Technology that gives a person the power to communicate anytime, anywhere has spawned an entire industry is mobile telecommunication. Mobile telephones have become an integral part of the growth, success and efficiency of any business / economy. It is critical not only for the development of the information technology industry but also has widespread ramifications on the entire economy of the country.

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CONTENTS

CHAPTER 1 1.2 Introduction Introduction

DESCRIPTION

PAGE NO. 9

to

Cellular

Service

14

(Telephone) Industry 1.3 Introduction About Four Cellular Services providers (BSNL,AIRTEL, VODAFONE, IDEA) 1.4 Introduction About the Customer 36 24

Perception and Satisfaction 2 3 3.1 3.2 3.3 3.4 3.5 Review of Literature Research Methodology Objectives of the study Scope of the study Need & Significance Research Design Limitations Results & Discussions Findings of the Survey Suggestions for cellular service providers 41 41 41 42 44 46 61 65 39

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Conclusion Bibliography Annexure

66 67 68

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1.1 The Indian Telecom Industry

The telecom network in India is the fifth largest network in the world Meeting up with global standards. Presently, the Indian telecom industry is currently slated to an estimated contribution of nearly 1% to Indias GDP.

Introduction
The Indian Telecommunications network with 110.01 million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for U.S. companies in the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005, is expected to reach 250 million in 2009. According to Broadband Policy 2004, Government of India aims at 9 million broadband connections and 18 million internet connections by 2009. The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY2004-2005. In the last 3 years, two out of every three new telephone subscribers were wireless subscribers. Consequently, wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expected to bypass 2.5 million new subscribers per

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month by 2009. The wireless technologies currently in use are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom

FIRST STEPS

The individual parts of the telephone were discovered and developed by different people at different times. Someone needed to take all those connections and draw them together into one working instrument. In the end that someone was Alexander Graham Bell - but he only just won the race

Reis's telephone (1860) : the diaphragm man

Reis began work on the telephone in 1860, inspired by a French investigator named Bourseul. ARYANS BUSINESS SCHOOL
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Gray's telephone (1876) :

liquid transmitter of the microphone type developed by Gray.

The first telephonic sound (1875) : that elusive twang

One summer afternoon, as Bell was working in his workshop in Boston, he heard an almost inaudible twanging sound from his prototype telephone - a sort of crude harmonica with a clock-spring reed, a magnet and a wire. This was connected to a similar device in another room where his assistant Thomas Watson was working.

The first telephone call (1876) : "Mr. Watson, come

here, I want you"

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After hearing their telephone first transmit a sound in June 1875, Bell and Watson spent the next 40 weeks making their telephone actually speak. Finally, on March 10, 1876, Watson heard Bell's voice distinctly in the receiver saying: "Mr Watson, come here, I want you.

The first telephones arrive in Britain (1877) : 'greatest by far

of all the marvels'

first pair of practical telephones seen in Great Britain arrived in July 1877, brought here by William Preece, Chief Electrician of the Post Office. A few months later, Bell's 'perfected' type of telephone was exhibited at another meeting of the British Association in Plymouth.

Bell forms his company (1877) : but sales are slow ...

Within a year of making the first telephone call, Bell and his financial backers - Thomas Sanders and Gardiner G Hubbard - had formed the Bell ARYANS BUSINESS SCHOOL
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Telephone Company in the United States.

Bell's British company is founded (1878) : from south to

north

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1.2 INTRODUCTION TO CELLULAR SERVICES INDUSTRY

Cellular Telephony / Service: The technology that gives a person the power to communicate anytime, anywhere has spawned an entire industry in mobile telecommunication. Mobile telephones have become an integral part of the growth, success and efficiency of any business / economy. The most prevalent wireless standard in the world today, is GSM. The GSM Association (Global System for Mobile Communications) Was instituted in 1987 to promote and expedite the adoption, development and deployment and evolution of the GSM stander for digital wireless communications. The GSM Association was formed as a result of a European Community agreement on the need to common standards suitable for cross border European mobile communications. Starting off primarily as a European standard, the Grouped Special Mobile as it was then called, soon came to represent the Global System for Mobile Communications as it achieved the status of a world-wide standard. GSM is today, the worlds leading digital standard accounting for 68.5% of the global digital wireless market.

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The Indian Government when considering the introduction of cellular services into the country, made a landmark decision to introduce the GSM standard, leapfrogging obsolescent technologies / standards. Although cellular licenses were made technology neutral in September 1999, all the private operators are presently offering only GSM based Mobile services. The new licensees for the 4th cellular licenses that were awarded in July 2001 too, have opted for GSM technology to offer their mobile services. Cellular Industry in India

The Government of India recognizes that the provision of a worldclass telecommunications infrastructure and information is the key to rapid Economic and social development of the country .It is critical not only for the development of the Information Technology Industry, but also has widespread ramifications on the entire economy of the country. It is also anticipated that going forward, a major part of the GDP of the country would be contributed by this sector. Accordingly, it is of vital importance to the country that there be a comprehensive and forward looking

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telecommunications policy which creates an enabling framework for development of this industry.

New Telephone Policy 1999

Telecommunications is now universally recognized as one of the prime movers of the modem economy; hence its vital importance for a developing country like India. The availability of adequate Infrastructure facilities are critical for acceleration of the economic development of any country. In fact international studies have established That for every 1 % increase in tele-density, there is a 3 % increase in the growth of GDP. Accordingly, the Government of India has accorded the highest priority to investment and development of the Telecommunications Sector. Telecom requires very heavy investment and it was not possible for the Indian Government to organize public funding of this sector on such a massive scale. In fact the national telecom Policy 1994, Estimated a resource gap of Rs. 23,000 crores to meet telecom Targets of the eighth fiveyear plan of the Government of India (1992-1997). It was for this reason to bridge the resource gap between Government funding and the total projected funds requirement and to provide the ARYANS BUSINESS SCHOOL
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additional resources to achieve the nations telecom targets that the telecommunications sector was liberalized in 1992 And the Government invited private sector participation in Telecommunications. Cellular mobile services were one of the first areas to be opened unto private competition. The whole country was divided into the 4 metropolitan cities and 19 telecom circles, which were roughly analogous with the States of India Cellular Licenses were awarded to the private sector first in the metropolitan cities of Delhi, Mumbai, Kolkata and Chennai in 1994 And then in the 19- telecom circles in 1995. The first metro cellular network started operating in August 1995 in Calcutta. When cellular mobile services were first introduced in 1994 it was as a duopoly (that is a maximum of two cellular mobile operators could be licensed in each telecom circle), under a fixed license fee Regime and for a license period of 10 years. The initial response of the privates sector was very encouraging. The attractiveness of the Indian market the low tele density. The high Latent demand and a burgeoning middle class brought in some of the largest global telecom players, foreign institutional investors and the major Indian industrial houses to invest in telecom, especially the Indian cellular industry.

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Telecom proved to be a powerful attractor of foreign investment. The cumulative FDI inflow into telecom since 1993 has exceeded Rs. 43,000 Million. Within telecom, the cellular industry has attracted most of the foreign investment since 1993, accounting for Almost 50% of the FDI inflow into telecom representing amongst the biggest investments in any one sector in India. Annual foreign Investment in telecom increased steadily from insignificant Rs. 20.6 Million in 1993 to Rs. 17,756.4 million in 1998. However, the attractiveness of the Indian market did not last for very long, as by 1997-98, the private cellular operators were confronted with a series of problems that threatened their very viability and survival. As a result of this, FDI inflow into telecom dropped sharply, declining by almost 90 % to Rs. 2126.7 Million in 1999. This dropped further in Year 2000 as until June 2000, only Rs. 918 Million had flown into the country. One of the key responsible for the critical state of the Telecom sector & consequently also the cellular industry was that liberalization / deregulation was undertaken in an inverted manner vis--vis international practices and generally accepted norms. Usually, tariff rebalancing, institution of precedes deregulation a strong and independent regulator and only then is private sector participation invited.

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In India, private sector participation was invited in 1992, the Regulatory Authority was set up in 1997 and the tariff rebalancing Exercise commenced in 1999 and is still far from complete. Further, even when the regulatory authority was set up, there was considerable ambiguity on its powers, which resulted in virtually each and every order of the Authority being challenged by the Licensor / incumbent. The ambiguities in the jurisdiction of TRAI Resulted in a limbo in the industry. Another important factor was the basic approach of the Government towards liberalization Consumer benefit was given the go-by and the telecom sector was viewed as a revenue generator / cash cow for the Government exchequer.NTP 94 was basically a good policy. It clearly identified that the primary objective of the policy was to make available affordable telecom services. However, in actual policy implementation, this key / fundamental objective was disregarded. Licenses were granted through an auction process and the enthusiastic private sector deluded by the seemingly huge potential of the Indian market were lured into bidding exorbitant sums of many for cellular licenses.. The huge licenses fees paid by the private operators resulted in a high cost structure leading to un-affordable tariffs and lower growth of the market. By end 1998 the cellular industry was on the verge of bankruptcy ARYANS BUSINESS SCHOOL
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and at that time it appeared that the liberalization dream was over & the nightmare had begun. It was under the above circumstances that the Government undertook a review of telecom policy & the role of the regulatory authority. The result was NTP 99, which was announced in March 1999 & the amendment of the TRAI Act in January 2000. NTP 99 is an extremely forward-looking policy. It significantly changed the dynamics of the Indian telecom industry as it not only replaced the high cost fixed licensing regime with a lower cost licensing structure through revenue sharing, but also provides for greater degree of competition and more flexibility in choice of technologies. The amendments in the TRAI Act resulted in a considerable strengthening of the Regulator & greater clarity on its role and powers. It also put in place a separate dispute settlement mechanism in the form of the Telecom Dispute Settlement and Appellate Tribunal to expeditiously deal with and resolve issues relating to the telecom sector. Existing private cellular operators migrated to the new telecom policy regime with from August 1999. There can be no doubt that migration to a more beneficial regime translated into tangible consumer benefits lower tariffs, greater subscriber uptake & increased coverage.

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Cellular tariffs have dropped by over 90% since May 1999 a feat unparalleled by any other sector or industry in India. The average airtime tariff in Year 2001 was prevailing around Rs. 2 per minute as against the peak ceiling tariff of Rs. 16.80 per minute when NTP 99 was announced. Parallely, there has also been a significant drop in the cost of mobile handsets. Cellular handsets that was available for around Rs. 25-30,000 in the initial days of cellular have now dropped significantly, with a base level handsets being available for as little as Rs. 2,000 upwards . This has come about as a result of increases volumes and some degree of rationalization of government levies. As a result of improved affordability, there is an increased take-up of the service and the cellular operators were able to venture into more and more cities & towns of the country. In fact cellular services are now available in almost 1400 cities & towns of India. With the lower tariffs and increased coverage, there was also a resultant increase in the number of cellular subscribers. The point of inflexion for subscriber take- off is clearly post NTP 99. From 1.2 Million subscribers in April 1999, almost 2 million by April 2000 the number of cellular subscribers has now grown to almost 6.5 million By the end of March 2002.

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By March 2001, the industry had invested nearly Rs.16,000 crores in cellular infrastructure and it is estimated that these investments will grow to Rs. 20,000 crores in the next 4-5 years. The year 2001 also saw the entry of BSNL and MTNL as the third cellular operators as had been mandated in NTP 99. Further, in July 2001, cellular licenses were awarded to the 4th cellular operators in different telecom circles. With this the number of cellular operators has gone up to 89 licenses. As of March 2002, the Indian cellular mobile industry had 42 networks on air, serving over 1400 towns and cities and covering thousands of villages and serving almost 6.5 million subscribers across the country. The quality of the services is widely accepted to be of international standards and till date there has been no waiting period involved in availing of these service. The cellular industry has been growing at an average rate of 85% per annum and it is hoped that the industry will be able to sustain this growth in the coming years. The Working Group on the Telecom Sector set up by the Government of India for the tenth five year plan, has estimated that over the next five years, around 31.55 million cellular subscribers would be added all over India. To achieve this growth; the Working Group has also estimated that resources to the tune of about Rs.25, 240 crores will be required over the next five years. ARYANS BUSINESS SCHOOL
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However, to attract foreign investments into India, it is imperative to ensure the predictability and stability of the policy and regulatory regime of the country. Policy flip-flops & regulatory ambiguity have plagued the Indian telecom sector since the introduction of privatization. This has had the unhappy result of putting the entire sector into a state of limbo as investors both foreign & domestic await clarity on the final direction that the policy will take. In the meantime, foreign investors, who have not committed themselves to the Indian market, will divert their interest & investment to competing and more attractive FDI destinations. Further for the industry to attract the requisite investment and to reach the growth targets set for the tenth five-year plan, it is imperative that a few crucial industry issues that have been plaguing the industry be resolved on an urgent footing. This includes most importantly:The early resolution of the dispute relating to the recent permission granted to fixed operators to offer WLL based mobile services without a mobile license and under the more advantageous terms of their fixed service license and the institution of a formal interconnection agreement between the Cellular operators and the fixed service providers especially the incumbent fixed service operators BSNL and MTNL.

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1.3INTRODUCTION ABOUT FOUR CELLULAR SERVICE PROVIDERS (BSNL, AIRTEL, VODAFONE, IDEA

BSNL BSNL is a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL). On October 1, 2000 the Department of Telecom Operations, Government of India became now Indias leading telecommunications company and the largest public sector undertaking. It has a network of over 45 million lines covering 5000 towns with over 35 million telephone connections. The statecontrolled BSNL operates basic, cellular (GSM and CDMA) mobile, Internet and long distance services throughout India (except Delhi and Mumbai). BSNL will be expanding the network in line with the Tenth FiveYear Plan (1992-97). The aim is to provide a telephone density of 9.9 per hundred by March 2007. BSNL, which became the third operator of GSM mobile services in most circles, is now planning to overtake Bharti to become the largest GSM operator in the country. BSNL is also the largest operator in the Internet market, with a share of 21 per cent of the entire ARYANS BUSINESS SCHOOL
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subscriber base.

VISION
To become the largest telecom Service Provider in South east Asia. MISSION 1. To provide world class State-of-art technology telecom services on demand at affordable price. 2. To Provide world class telecom infrastructure to develop country's economy value added services are also available at very economical charges: Voice Mail Service Short Message Service (SMS) Group Messaging National and International Roaming Call forwarding Corporate Virtual Private Network Call conferencing Friend and Family Talk Call waiting and Call holding facility

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In services like Prepaid cards, Universal Access No. split charging, VPN etc Wireless Application Protocol(WAP): Surf WAP enabled websites on Internet using this service. Unified Messaging Services: Integrate your Mobile phone with the Internet and access your e-mails, faxes, voice mail etc on your mobile phone.

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VODAFONE
Vodafone's 1992 entry into the market, which at the time was an exclusive monopoly of a public operator, radically changed the prevailing perception of the cellular phone, up until then considered a status symbol or a tool reserved for an elite with high purchasing power. Opposing that image, Vodafone introduced the concept of useful, accessible and adequate service for the various Customers' communication needs. Vodafone was the main development and growth engine of the Portuguese cellular market, profoundly changing the mobile telecommunications' scene in Portugal. Vodafone clearly stand out as the second national Telecommunications operator. service Vodafone maintain their differentiation as the most innovative and Customer oriented operator in Portugal developing useful and competitive services, making available the best offer in the market. Vodafone aim at creating a quality and value service offer of recognized excellence. Vodafone position themselves as a communication, information and entertainment operator, offering Customers a wide and complete range

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of services which help them to make the most of each moment. Vodafone also provide complementary fixed services & also provide fixed and Internet services aiming to meet their customers total communication needs. Vodafone have an enlarged offer for all the market segments perceived by Customers as the most valuable. With a core business in cellular communications services, their vision is to be recognized as the best Portuguese company leading the mobile communications development, thus contributing to the well being of people, companies and the society in general. Vodafone is the worlds leading international mobile communications company. It currently has equity interests in 27 countries across 5 continents and 40 partner networks with over 289 million proportionate customers worldwide. Vodafone has partnered with the Essar Group for the Indian market.

Services VOICE BASED Voice mail Dial in services (Dial a Pizza etc.) Voice Response SMS BASED ARYANS BUSINESS SCHOOL
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 Info messages SMS Chat Yahoo Email & Messenger access via SMS M-Banking Ring Tones and Logo downloads Instant Messenger BBC News GPRS MSN & Yahoo email Content Portal OTHERS MMS Fax & Data, CLIP, Call forward, CLIR, Prepaid Roaming, Itemized billing, Location based services Unified messaging (UMS) Content and Data Downloads Offers News, Java games, logos, ringtones over GPRS in partnership with MSN Also in agreement with Yahoo India for basic content download ARYANS BUSINESS SCHOOL
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 SMS Polls on TV Users can vote through SMS for polls organized by Channels Revenue sharing agreements with TV channels

Business Model and Revenue Sources Mobile Banking HDFC and Bank of Punjab customers can access their accounts by SMS E-Mail and communications Users can access their office emails through GPRS or SMS Hotmail and MSN Messenger Yahoo email and Messenger PUSH TO TALK over GPRS IDEA Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand designs to become a national player, but in doing so is likely to become a thorn in the side of Reliance Communications Ltd. IDEA operates in eight telecom circles, or regions, in Western India, and has received ARYANS BUSINESS SCHOOL
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additional GSM licenses to expand its network into three circles in Eastern India -- the first phase of a major expansion plan that it intends to fund through IPO, according to parent company Aditya Birla Group . IDEA Services

VOICE BASED Voice mail (Voice Courier) Voice response Dial and Buy SMS BASED Info messages Chat SMS, GPRS and PC Web and POP3 Email access M-Banking Ringtones and Logo downloads Global and Group SMS Language SMS City Guide GPRS Surfing ARYANS BUSINESS SCHOOL
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 Content Downloads OTHERS MMS Fax & Data, CLIP, Call forward, CLIR, Prepaid Roaming, Itemised billing, Content and Data Downloads Offers News, Java games, logos, ringtones over GPRS Also in agreement with Yahoo India for basic content download SMS Polls on TV Users can vote through SMS for polls organized by TV Channels Revenue sharing agreements with TV channels Business Model and Revenue Sources Mobile Banking Missing E-Mail and communications Web Mail and POP3 Access through SMS Prepaid recharging In agreement with Banks for Prepaid recharging through ATMs or through SMS (account debit)

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AIRTEL

AIRTEL A vibrant new world of unlimited opportunities. Where AIR symbolizes a world of unlimited freedom to think to dream. and achieve. Where TEL connotes new innovative yet simple ways to communicate spontaneously, not just through the words but ideas, emotions and feelings. Together they represent a sensitive, confident, symbol for those who believe in true leadership. Building Telecom... Building Relationships. Bharti Tele-Ventures Limited, a part of Bharti Enterprises , is India's leading provider of telecommunications services. The businesses at Bharti Tele-Ventures have been structured into two main strategic business groups - the Mobility Leaders business group and the Infotel Leaders business group. The Mobility business group provides GSM mobile services across India in twenty three telecom circles, while the Infotel business group

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provides broadband & telephone services, long distance services and enterprise services. All these services are provided under the Airtel brand.

GSM OPERATOR- BHARTI Brand Name: Network: Network Coverage: Subscriber base: Market Share: ARPU (Mar. 03-04): Subscriptions:

AIRTEL GSM 900, 1800, GPRS, EDGE 17 Telecom circles 7,062,443 (May 2004) 26% 8,4 Post Paid, Pre Paid

Bharti was the first mobile operator operational in India. Indias first GSM based Phone call was made on Airtel network. BHARTIServices VOICE BASED Voice mail Dial a service SMS BASED Info messages SMS Chat Email access via SMS Ringtones and Logo downloads Instant Messenger GPRS ARYANS BUSINESS SCHOOL
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 Mobile office Content Portal OTHERS MMS Fax & Data, CLIR, Prepaid Roaming, Itemised billing, Location based services Content and Data Downloads Offers Java games, logos, ring tones through their content portal Also in agreement with Yahoo India for basic content download Advertising Campaigns Latest movie ringtones, wallpapers available at their content portal Hosting third party campaigns like Coke and Master Card SMS Polls on TV Users can vote through SMS for polls organized by TV Channels Revenue sharing agreements with TV channels Prepaid Recharging Subscribers can recharge either at ATMs using their ATM cards Or Direct debit facility with the subscribers bank account (SMS based service)

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1.4 INRODUCTION ABOUT CUSTOMER PERCEPTION AND SATISFACTION

(A) Customer Perception: Customer perception can be described as how we see the world around us. Two individuals may be subject to the same stimulus under the same conditions, but how each person recognizes them, selects them, organizes them and interprets them is a highly individual process based on each persons own needs, values and expectations. This variable has influence on the perceptual process and the concept of perception has great relevance to marketing. In other words, perception is defined as the process by which an individual selects, organizes and interprets stimuli into a meaningful and coherent picture of the world. A stimulus is any unit of input to of our senses. Examples of stimuli include products, packages, brand names, advertisements and commercials. Sensory receptors are the human organs (i.e. eyes, nose, ears, mouth, and skin) that receive sensory inputs. Their sensory functions are to see, hear, smell, taste and feel. All of these functions are called into play either singly or in combination in the evaluation and use of most consumer products. The study of perception is

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largely the study of what we subconsciously add to or subtract from raw sensory inputs to produce our own private picture of the world

(B)

Customer Satisfaction Satisfaction is a persons feeling of pleasure or disappointment

resulting from comparing a products perceived performance (or outcome) in relation to his or her expectations. Satisfaction is a function of perceived performance and expectations. If the performance falls short of expectations. If the performance matches the expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted. Many organizations are aiming for high satisfaction because customers who are just satisfied still find it easy to switch when a better comes along. Those who are higly satisfied are much less ready to switch. High satisfaction or delight creates an emotional bond with the brand not just a rational preference. The result is high consumer loyalty.

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2.1 REVIEW

OF LITERATURE

1. There are five private service operators in each area, and an incumbent state operator. Almost 80% of the cellular subscriber base belongs to the pre-paid segment. The DoT has allowed cellular companies to buy rivals within the same operating circle provided their combined market share did not exceed 67 per cent. Previously, they were only allowed to buy companies outside their circle. The Key players in the Telecom Market are BSNL, Airtel,Vodafone and Idea. Few years back mobile connections were not common among the people. But with the mobile revolution now we can find almost every one with mobile phone. Most of the population prefer prepaid connections than postpaid connections. Most preferred cellular company is Airtel. 2. Lowered call tariffs are a major industry growth driver. Wireless Subscriber growth will continue around 10m users/year. India is primarily a low priced handset market (100-150 Euro). Prepaid will continue to

dominate in both GSM and CDMA segments. Operators are experiencing low ARPU because of lowered call tariffs, thus they are focusing upon content aspect. Games and content should to be developed keeping local trends and tastes in mind.GPRS and MMS are here, but fail to gain subscribers as compatible handsets are expensive. SMS based applications, services are most successful so far. Internet penetration is low but the industry is growing at a rapid pace. Broadband & Wi-Fi are here, but too expensive for general public. Dial-in is the most preferred mode for internet access. To sell services to Indian companies, you need a local contact.
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3.1 OBJECTIVES OF THE STUDY

The following are the objectives of the study: To know the popularity of various cellular services & why? To study the factors influencing the customers while purchasing a particular service To know the status of availability of services to the customers. To study the present customers need of using cellular services. To know the future customers shift from their service provider to some other service provider.

3.2 SCOPE OF THE STUDY

The study is confined to Chandigarh and 200 persons were included in the research including both who are using mobiles and who are not using. And under the categories that are using mobiles, both types of customers i.e. Post-Paid & Pre-Paid customers will be included.

3.3 NEED AND SIGNIFICANCE

The Telecom Industry has been growing since few years with the entry of many new players in the market Consumer can choose from a number of service providers. The need of the study is to find out who are the major service providers, which provider is preferred by the customers & also to get awareness about various prospectus of the Telecom Companies. The study will help the service provider to improve the quality of their service. ARYANS BUSINESS SCHOOL
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RESEARCH METHODOLOGY
Research Methodology is the way to systematically solve a problem. The methodology adopted in this study is explained below:

3.4 RESEARCH DESIGN Research Design specifies the procedure for conducting & controlling the research projects.

a) PROBLEM DEFINITION In a competitive situation with multiple Cellular Services in the market, it is necessary to know the customers stand & their preference towards various Cellular Services.

b) TYPE OF RESEARCH This research is descriptive in nature. A descriptive research is one in which state of affair is described as it exists at present. The researcher has no control over variables.

3.5 RESEARCH PLAN

Research planning is the process of developing the most efficient plan for gathering the needed information.

DATA SOURCE The major source of data is Primary data.

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Primary data was collected with the help of questionnaires, which were filled by personally visiting the customers.

QUESTIONNAIRE STRUCTURE For the research multiple choice type & open ended type questions were prepared to collect primary data from respondents.

SAMPLING PLAN The plan includes the following:

1. SAMPLING UNITS: Sampling units consists of all the customers who are using the services of various Telecom Companies. 2. SAMPLE SIZE: A sample size of 200 customers was considered. 3. SAMPLING TECHNIQUE: Convenience sampling was used.

4. ANALYTICAL TOOLS The various tools which were used in preparation of the project include following; Percentage Pie charts Ranking

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3.5 LIMITATIONS:
In spite of my full efforts, I faced following limitations: a) b) The time span was small/less so the sample size has to be limited. Some customers were not ready to co-operate in a proper way to give required information. Efforts were done to conceive them c) Some bias information from customers could also be expected.

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RESULTS AND DISCUSSIONS

The Cellular Services for comparison are: 1. 2. 3. 4. BSNL AIRTEL VODAFONE IDEA

1: Are you using Cellular Phone?

a) Yes

b) No

Fig. 1.1
23%

Yes No

77%

Analysis: ARYANS BUSINESS SCHOOL

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The above chart shows from the sample the division of customers using and not using cellular phones. It has been found majority of people have liking towards cellular services.

2: If yes, from the following service providers whose service is being used by you? 1. BSNL 2. 3. 4. AIRTEL VODAFONE IDEA
Fig 1.2

20% 32% BSNL AIRTEL VODAFONE 23% 25% IDEA

Analysis: The above chart shows that out of the customers using cellular

service large number of people have faith and liking towards BSNL followed by Airtel while Vodafone and Idea are slowly but surely making there mark in the market. ARYANS BUSINESS SCHOOL
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3: Are you a postpaid or prepaid user? a) Prepaid b) Postpaid

Fig. 1.3

POSTPAID

Series1 ., PREPAID

0%

20%

40%

60%

80%

Analysis: The above BAR DIAGRAM shows the division of customers using pre-paid card and post-paid billing connection for different cellular services. It has been found from the above small sample that amongst all these cellular operators people like prepaid service more than its postpaid counterpart. Specific points of people that why they prefer to choose the prepaid to the postpaid connection. The majority of them answered two things: ARYANS BUSINESS SCHOOL
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1. That postpaid involves more file work and the getting connection is involves paying security. 2. In prepaid customers know how much they have used after each and every call.

4:

If you are a prepaid user, is recharge card easily available to you? a) Yes b) No

Fig. 1.4
27%

No
YES NO

73%

ANALYSIS Customers with the majority of 73% get easily their recharge cards while 23% customers are not satisfied.
5:

Which of the following problems are you facing in case of your Prepaid connection? a) Uninformed deduction from the balance b) Any other problem c) No problem at all

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Fig.2.1

160 140 120 100 80 60 40 20 0

150

23

27

UNINFORMED DEDUCTION

OTHER PROBLEM

NO PROBLEM AT ALL

ANALYSIS: It was analysed that 75% customers have their complaints regarding the uninformed balance deduction,11.5% are facing the other problems like regular calls from the call centers, sms like know about your partner,will you get marry with your partner or not & 13.5% customers said that thay are not facing any problem at all. 6: Which of the following problems are you facing in case of your post-paid billing connection? a) Bills not received at proper time/ proper address b) Unawareness regarding extra/hidden charges included in bill c) Any other problem d) No problem at all

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Fig. 2.2
17%

12%

44%

Bills not received Unawareness Any other problem No problem at all

27%

ANALYSIS From the above pie chart it is clear that customers who are using post-paid connection are facing the major problem of not receiving the bills in time & proper address who are 44 %, followed by 27% of customers who have the complaints of extra/hidden charges in the bill,12% people are facing other problems but apart from it 17% customers are there who are not facing any problem at all. 7: In case of home(non-roaming) connection, who provides the better service? a) BSNL b) Vodafone c) Airtel d) Idea

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Fig.2.3

13% 44% 27% 16% N,M.

BSNL AIRTEL VODA IDEA

Analysis: The network level in case of home / non-roaming connection is best in BSNL followed by Airtel, Vodafone & Idea. The network level of BSNL in rural areas is appreciable. 8: In case you are also availing the roaming facility, then which service provider you prefer? a) b) c) d) BSNL Airtel Vodafone Idea

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Fig. 2.4
69 70 60 50 40 30 20 10 0 BSNL AIRTEL VODA IDEA 55 42 34

Analysis: The network level in case of roaming connection is best in Airtel followed by BSNL, Vodafone & Idea respectively. 9: Are the Value Added Service charges nominal? Airtel Yes No BSNL Vodafone Idea

Fig. 3.1

13% 39% 24% 24%

BSNL AIRTEL VODA IDEA

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Analysis: The overhead charges are considered as nominal by 39 % of the customers in case of BSNL, by 24 % in case of Airtel, by 24% in case of Vodafone and by 13% in case of IDEA. It shows that customers consider overhead charges the most nominal one. 10: Do you get proper customer care support from your service provider? a) Yes b) No If no, mention the problem _____________________________________________

Fig. 3.2

25%

YES NO

75%

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Fig. 3.3

24% Keep on waiting Rude behaviour 52% 24% Donot fullfill promises

ANALYSIS: 25% Customers denied that they are not getting proper customer care support from their service provider but 75% customers were satisfied. Those customers who were not satisfied majority of them were having the complaint that the customer care keep them on waiting for a long time, followed by the customers who were dissatisfied because of the rude behaviour of the customer care and said they never fulfill their promises. 11: What amount of recharge card do you normally use? a) 300 c) 1000 b) 500 d) > 1000

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70 60 50 40
Series1

30 20 10 0 300 500 1000 >1000

Fig. 3.4

ANALYSIS: Majority of the customers prefer the recharge cards of amount Rs.300 followed by Rs.500,Rs. >100 & Rs. 1000 respectively. 12: Will you shift from existing cellular service provider to some other one? a) Yes b) No If Yes, From: To:

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Fig.4.1

19% 16% 24%

22% 19%

BSNL VODAFONE IDEA AIRTEL NO CHANGE

ANALYSIS 22% Customers who are using the services from BSNL want to shift some other service provider as they think std call rates are very high,19% Vodafone customers want to shift as they think local call charges are high, 23% customers of idea cellular using want to shift as they think value added services are not good, 16% Airtel users want to shift as they think that the schemes are not good,, apart from this 20% customers are their who are satisfied & are not going to shift. 13: How do you rank the following cellular service providers?

Excellent BSNL 23 VODAFONE 12 Idea 14 Airtel 25

Good 15 15 06 12

Average 12 20 10 10

Not satisfactory 05 11 05 10
57

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ANALYSIS: Majority of the customers are in the favour of AIRTEL as excellent followed by BSNL,IDEA & VODAFONE respectively, BSNL & VODAFONE has been ranked as good followed by AIRTEL & IDEA. In Average case more customers ranked Vodafone as the average service provider followed by BSNL, IDEA & AIRTEL. Maximum customers are not satisfied in case of Vodafone, followed by Airtel, Vodafone & Idea. 14) Among the following factors, which influence you while Purchasing a particular cellular service. a) b) c) d) Cost/ Price Free talk time Value added schemes Free SMS

Fig. 4.2

10% 15%

15% 60%

cost/price Free talk time value added service Free sms

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ANALYSIS While studying the various factors affecting the purchase of particular cellular service, 60% of customers are giving cost/price the top priority , 15% to free talk time, 15% & 10% to free sms & value added services respectively. 15: What suggestions would you like to give to the cellular service provider whose connection you are using?
___________________________________________ ___________________________________________ ___________________________________________ ___________________________________________

Fig. 4.3

30% 17%

16% 37%

Remove the network problem Less Std charges Free roaming facility Avoid unnecessary calling

ANALYSIS: The suggestions which were given 16% people were saying that the network problem should get removed,36% customers were in favour of std charges as the charges should be minimum, 18% customers were suggesting for free roaming service & 30% customers were saying that the unnecessary calling from customer care should be avoided.

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FINDINGS OF THE SURVEY

Regarding the preference for the recharge cards of different denominations in case of prepaid card connections, it has been found that the customers in case of all the cellular services mostly prefer recharge cards of 300, 500 & >1000 . It has also been observed that 33 % customers have preference to 300 denomination cards, 27 % have preference to 500 denomination cards, 14% have preference to 1000 denomination cards & 26% have preference to >1000 denomination cards. In case of recharge cards 73% customers are satisfied while the 27% customers has been responded they do not get their recharge cards easily and recharging of these cards takes long time in case of BSNL prepaid card connections. 17% of the customers in case of post paid billing connection are not facing any problems. The major problem which rest of the customers face is lack of detailed billing and there are many hidden charges in the bill about which customers are not aware. The network level in case of home / non-roaming connection is best in BSNL followed by Airtel, Vodafone & Idea. The network level of BSNL in rural areas is appreciable.

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The network level in case of roaming connection is best in Airtel followed by Bsnl , Vodafone & Idea respectively. The overhead charges are considered as nominal by 39 % of the customers in case of BSNL, by 24% in case of Airtel, by 24% in case of Vodafone and by 13% in case of IDEA. It shows that customers consider overhead charges the most nominal one. Majority of the customers responded that they are getting the proper customer care support while others were dissatisfied because of the rude behaviour of the call attendants, they do not keep their promises and keep on long waiting for their advertisement as what facilities they are providing, some respondents also said that clearity of voice is not there while communication.A large no of customers, which is 23% shifted in case of IDEA and in case of BSNL which is 22% ,only 16% customers want to shift in case of AIRTEL And in case of other service provider. The reason for shifting from BSNL was due to non-VODAFONE 19% customer want to shift to some availability of recharge cards and billing problems. And in case of Airtel it was found that reason for shifting is overhead charges. And in case of Hutch and IDEA it was due to coverage range.

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When survey was done of 200 peoples than out of 200,23% people were not using mobile phones. When asked from them that in future if they have to use Mobile service then which company the will choose then it was found that 7% persons will purchase BSNL connection,10% will get their connection from AIRTEL,4% gave their choice towards VODAFONE and 2% shows their intention to purchase the IDEA connection. Majority of the customers are price sensitive so the cellular service providers should provide the services at low rates.

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SUGGESTIONS FOR CELLULAR SERVICE PROVIDERS

1)

More detailed billing should be provided to the customers in case of BSNL.

2)

When customers go to some dealer or service provider to get the billing connection, he should be made aware about various types of additional charges; he has to pay in future.

3)

Network should be improved and made better in case of all the cellular service provides.

4)

Recharging of recharge cards in case of BSNL prepaid card connection should be more quick

5)

New connection should be made easily available as there is a lot of

demand in case of BSNL Subscribers

6) Customers should be not kept in long waiting, customers should not be treated rudely and the promises made should be kept. 7) Std charges should get reduced and there should be no charges for roaming.

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CONCLUSION
The Cellular Services are blooming day by day & the more competitors are entering in this market continuously. So the existing players has to take care of it as the customers are very sensitive to the better services. As per the study done on the four major players of the cellular players( BSNL, VODAFONE,AIRTEL,IDEA) in the chandigarh showed that many customers are going to shift from the existing cellular service to some other service provider as they are not satisfied with the service they are using. Some customers are facing the network problem, some are not satisfied with the facilities of the service provider and the other customers want free roaming service & less Std charges. The recharge cards are not easily available to some customers & most of the customers keep price factor in consideration while purchasing a service. From the study it was clear that maximum customers are satisfied with the Airtel & Bsnl.

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BIBLIOGRAPHY
BOOKS:

1.

KOTLER PHILIP ,MARKETING MANAGEMENT Prentice Hall of India Pvt Ltd, Millenium edition.

2.

SHIFFMAN LEON G. CONSUMER BEHAVIOUR' Prentice Hall of India 6th Edition

WEB SITES:

1. 2. 3. 4. 5.

www.google.com www. airetworld . com www.bsnl. co. in www.idea. com www. vodafone . com

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ANNEXURE I am Ravinder vikram chandel pursuing MBA from ABS. I am doing a project on CUSTOMER PERCEPTION AND SATISFACTION (A COMPARATIVE STUDY OF CELLULAR SERVICES BSNL, AIRTEL. HUTCH, IDEA) IN CHANDIGARH Please help me while filling this questionnaire & providing me the required information. Name__________________ Designation_____________ Phone no:_______________ 1: Are you using Cellular Phone? a) Yes b) No

2: If yes, from the following service providers whose service is being used by you? a) BSNL b) Vodafone c) Idea d) Airtel 3 : Are you a postpaid or prepaid user? a) Prepaid b) Postpaid 4: If you are a prepaid user, is recharge card easily available to you? c) Yes ARYANS BUSINESS SCHOOL
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d) No 5: Which of the following problems are you facing in case of your prepaid connection? d) Uninformed deduction from the balance e) Any other problem f) No problem at all

6: Which of the following problems are you facing in case of your postpaid billing connection? d) Bills not received at proper time/ proper address e) Unawareness regarding extra/hidden charges included in bill f) Any other problem d) No problem at all 7: In case of home(non-roaming) connection, who provides the better service? e) BSNL f) Vodafone g) Airtel h) Idea 8: In case you are also availing the roaming facility, then which service provider you prefer? e) BSNL f) Airtel g) Vodafone h) Idea

9: Are the Value Added Service charges nominal? Airtel Yes No BSNL Vodafone Idea

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10: Do you get proper customer care support from your service provider? c) Yes d) No If no, mention the problem _____________________________________________ _____________________________________________ 11: What amount of recharge card do you normally use? a) 300 b) 500 c) 1000 d) > 1000 12: Will you shift from existing cellular service provider to some other one? c) Yes d) No If From: To:

13: How do you rank the following cellular service providers?

Excellent BSNL Vodafone Idea Airtel

Good

Average

Not satisfactory

14: Among the following factors, which influence you while Purchasing a particular cellular service. e) f) g) h) Cost/ Price Free talk time Value added schemes Free SMS

15: What suggestions would you like to give to the cellular service provider whose connection you are using? ARYANS BUSINESS SCHOOL
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