Tata Indicom Customer Satisfaction Study
Tata Indicom Customer Satisfaction Study
The main objective of the study is to analyse the factors which are considered
as important by the customers for feeling satisfied, to find out whether the Tata Indicom
is providing satisfactory services to their customers by meeting the identified factors, to
find out the satisfaction level of competitors customers and to identify the positive
factors and to suggest the improvements needed in tat Indicom services.
The research design used for the study is descriptive research. Primary data
were collected through direct person interview with the respondents.
The data were tabulated and analysed for logical statements using simple
statistical methods like simple percentage analysis and chi-square test.
The study reveals that the respondents faced problem in billing section and
Tata stands only next to BSNL.
1.1 INTRODUCTION
Communication has been one of the most important aspects of the growth of human society
and culture. Telecommunications, the transmission of signals over a distance for a purpose of
communication, is also very important. It provides business, money and market stability in the
world. The telecom sector is one of the leading contributors to India's flourishing economy.
Telecommunication Sector Opportunities in India assures a transparent, safe, and secured
ambiance for the telecom market. It include introduction of Internet telephony services,
privatization of VSNL, and introduction of a number of international long distance services
sector. The opportunities in the Indian telecom sector is increasing at a massive pace with the
introduction of newer and innovative schemes in various sectors and at present the telecom
sector in India is claimed to be one of the major contributors in India's flourishing economy.
TATA is a rapidly growing business group based in India with significant international
operations. The TATA name is a unique asset representing leadership with trust. TATA
Teleservices spearheads the Group’s presence in the telecom sector. Incorporated in 1996, TATA
Teleservices was the first to launch CDMA mobile services in India with the Andhra Pradesh
circle. TATA Teleservices has established a robust and reliable 3G ready telecom infrastructure
that ensures quality in its services.
The objectives of this study are to find the customer’s attitudes towards the TATA Indicom
services and to know the reasons for cancellation of the services. This study helps to find out the
factors affecting purchasing behavior of telecom products and to know customer’s opinion to the
services offered by the TATA Indicom.
Tata Group is Serving the Indian population for about last 126 years, with 91
diversified companies across seven business segments. Revenue of Tata group is about
Rs.67,000 crores. Tata group is pioneers in
Tata tele services is currently functional in 414 towns in 8 circles. Tata is first to
launch.
Tata Subscribers
* Capacity
Continuity in speech.
Cost
Compatibility
Coverage
To study the factors which are considered as important by the customers for
feeling satisfied.
To suggest improvements needed in Tata Indicom service.
CHAPTER II
2.1 INDUSTRY PROFILE
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 2007. According to Broadband Policy 2004, Government of
India aims at 9 million broadband connections and 18 million internet connections by 2007. 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 month by 2007. 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 circles and 4 metro cities, covering 2000 towns across the country.
Evolution of the industry-Important Milestones
Year
1851 First operational land lines were laid by the government near Calcutta (seat
of British power)
1932 Merger of ETC and IRT into the Indian Radio and Cable Communication
Company (IRCC)
1999 Cellular Services are launched in India. New National Telecom Policy is
adopted.
The total number of telephones in the country crossed the 300 million mark on June 18
2008The overall tele-density has increased to 36.98% in March 2009 In the wireless
segment, 15.87 million subscribers have been added in March 2009. The total wireless
subscribers (GSM, CDMA & WLL (F)) base is more than 391.76 million now. The
wireline segment subscriber base stood at 38.22 million with a decline of 0.13 million in
October 2008.
Both fixed line and mobile segments serve the basic needs of local calls, long distance
calls and the international calls, with the provision of broadband services in the fixed line
segment and
GPRS in the mobile arena. Traditional telephones have been replaced by the codeless
and the wireless instruments. Mobile phone providers have also come up with GPRS-
enabled multimedia messaging, Internet surfing, and mobile-commerce. The much-
awaited 3G mobile technology is soon going to enter the Indian telecom market. The
GSM, CDMA, WLL service providers are all upgradingthemto provide
3Gmobile services.
Merger synergies
Given the substantial amount of excess capital available in the sector and in private equity we
expect to see additional merger and acquisition activity, albeit at a slower pace than recently
witnessed. Global telecom M&A deals over the past two years have reflected market expansion
but have also had a positive effect on the buyers’ balance sheets. Partnering companies have
begun realizing their synergies through cost reductions and economies of scale. In the US, the
largest three companies now account for over 70% of the sector market cap; this compares to
34% in 1990. Trends in bundled services are also paving the way for additional M&A activity.
Sector consolidation will further increase the importance of stock selection.
Growth
While cost-cutting has been a major source of earnings growth, we have seen top-line pressures
decreasing which will help revenues become a larger driver of earnings growth again. We see
growth within the sector coming from a number of areas including: broadband, 3G (third
generation) technology, expansion in emerging markets. Broadband penetration has been
accelerating as internet customers are seeking faster downloads for audio and video files. 3G
services, which facilitate the simultaneous transfer of both voice and non-voice (i.e. video,
downloads, SMS, etc.) data are providing mobile users with a much more robust communication
platform and should finally begin to realize their growth potential in 2007. Emerging market
companies benefit from low penetration rates and also tend to have lower leverage, higher
margins and higher growth than most developed markets telecom companies.
Global opportunities
It has become less difficult to find attractive telecom investment opportunities globally than it
was a year ago. As the fog has lifted from the sector, there are increased opportunities within
both the growth and value spaces. In the US, improved clarity in the regulatory environment has
opened the door for a number of players. Within Europe the risk of negative news flow remains a
potential detractor but there is valuation support from attractively priced stocks. There is little
difference between the European and US integrated carriers making it more of a stock call than a
regional call. Within Asia we see high revenue growth and return on assets. Overall, emerging
markets continue to be the fastest growing region within the sector and offer the largest valuation
discount. Additionally, the healthy macro environment in emerging markets coupled with
increasing domestic wealth is creating a positive consumer environment in the local markets.
Fortis Investments: Telecom sector strategy
Our strategy is to create a more focused portfolio of diversified high conviction ideas. In the
current environment we continue to be sensitive to relative valuations and positive earnings
momentum. Our portfolio is largely levered to growth. We have positioned ourselves in
companies that will provide synergies as well as margin expansion through wireless exposure.
We recognize the sensitivity of the regulatory environment in some markets and have minimized
our exposure to those markets. We also continue to overweight our exposure to
niche players within developed markets as well as to emerging markets which have low
penetration rates and more growth opportunities.
The Group’s major companies are beginning to be counted globally. TATA Steel became the
sixth largest steel maker in the world after it acquired Corus. TATA Motors is among the top five
commercial vehicle manufacturers in the world and has recently acquired Jaguar and Land
Rover. TCS is a leading global software company, with delivery centres in the US, UK,
Hungary, Brazil, Uruguay and China, besides India. TATA Tea is the second largest branded tea
company in the world, through its UK-based subsidiary Tetley. TATA Chemicals is the world.s
second largest manufacturer of soda ash. TATA Communications is one of the world.s largest
wholesale voice carriers.
In tandem with the increasing international footprint of its companies, the Group is also gaining
international recognition. Brand Finance, a UK-based consultancy firm, recently valued the
TATA brand at $11.4 billion and ranked it 57th amongst the Top 100 brands in 11 the world.
Businessweek ranked the Group sixth amongst the .World.s Most Innovative Companies. and the
Reputation Institute, USA, recently rated it as the .World.s Sixth Most Reputed Firm.
Founded by Jamsetji TATA in 1868, the TATA Group.s early years were inspired by the spirit of
nationalism. The Group pioneered several industries of national importance in India: steel,
power, hospitality and airlines. In more recent times, the TATA Group.s pioneering spirit has
been showcased by companies like TATA Consultancy Services, India.s first software company,
which pioneered the international delivery model, and TATA Motors, which made India.s first
indigenously developed car, the Indica, in 1998 and recently unveiled the world.s lowest-cost
car, the TATA Nano, for commercial launch by end of 2008.
The TATA Group has always believed in returning wealth to the society it serves. Two thirds of
the equity of TATA Sons, the TATA Group’s promoter company, is held by philanthropic trusts
which have created national institutions in science and technology, medical research, social
studies and the performing arts. The trusts also provide aid and assistance to NGOs in the areas
of education, healthcare and livelihoods. TATA companies also extend social welfare activities
to communities around their industrial units. The combined development-related expenditure of
the Trusts and the companies amounts to around 4 per cent of the Group.s net profits.
Going forward, the Group is focusing on new technologies and innovation to drive its business in
India and internationally. The Nano car is one example, as is the Eka supercomputer (developed
by another TATA company), which in 2008 is ranked the world.s fourth fastest. The Group aims
to build a series of world class, world scale businesses in select sectors. Anchored in India and
wedded to its traditional values and strong ethics, the Group is building a multinational business
which will achieve growth through excellence and innovation, while balancing the interests of its
shareholders, its employees and wider society.
TATA Teleservices spearheads the Group’s presence in the telecom sector. Incorporated in 1996,
TATA Teleservices was the first to launch CDMA mobile services in India with the Andhra
Pradesh circle.
Starting with the major acquisition of Hughes Tele.com (India) Limited [now renamed TATA
Teleservices (Maharashtra) Limited] in December 2002 the company swung into an expansion
mode. With the total Investment of Rs 19,924 Crore, TATA Teleservices has created a Pan India
presence spread across 19 circles that includes Andhra Pradesh, Gujarat, Karnataka, Delhi,
Maharashtra, Mumbai, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana,
Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata, Madhya Pradesh and
RoWB.
Having pioneered the CDMA 1X technology platform in India, TATA Teleservices has
established a robust and reliable 3G ready telecom infrastructure that ensures quality in its
services. It has partnered with Motorola, Ericsson, Lucent and ECI Telecom for the deployment
of a reliable, technologically advanced network.
The company, which heralded convergence technologies in the Indian telecom sector, is today
the market leader in the fixed wireless telephony market with a total customer base of over 3.8
million.
TATA Teleservices bouquet of telephony services includes Mobile services, Wireless Desktop
Phones, Public Booth Telephony and Wireline services. Other services include value added
services like voice portal, roaming, post-paid Internet services, 3-way conferencing, group
calling, Wi-Fi Internet, USB Modem, data cards, calling card services and enterprise services.
Landline service
TATA Indicom redefined the existing prepaid mobile market in India, by unveiling their offering
. TATA Indicom .Non Stop Mobile. which allows customers to receive free incoming calls.
TATA Teleservices today has India.s largest branded telecom retail chain and is the first service
provider in the country to offer an online channel Http://www.ichoose.in to offer postpaid mobile
connections in the country.
TATA Teleservices has a strong workforce of 6000. In addition, TTSL has created more than
20,000 jobs, which will include 10,000 indirect jobs through outsourcing of its manpower needs.
Today, TATA Teleservices Limited along with TATA Teleservices (Maharashtra) Limited
serves over 27 million customers in more than 6000 towns. With an ambitious rollout plan both
within existing circles and across new circles, TATA Teleservices offers worldclass technology
and user-friendly services in 19 circles.
TATA Indicom has three services Dial up internet, mobile connection, landline connection.
Products / Services
Mobile internet:- TATA Indicom offers world-class internet service through the CDMA
network.. Just connect TATA Indicom mobile phone, using a data cable to PC or Laptop & get
started.TATA Indicom Internet through mobile service offers world-class standards for wireless
Internet access. The benefits are:
• No need to buy an external modem since your existing TATA Indicom mobile phone has
one.
• User can receive and make voice calls when no active data transfer takes place.
Wireless internet it is used with a USB modem, so we can use where ever we go. It provides high
speed connection and free downloading.
Prepaid mobile: In Prepaid service we make an advance payment for the usage i.e. to make calls
and use data services. There are no deposits to be made for STD/ISD. These features are pre-
activated. Also, need not wait for a bill to be generated to know the usage & then pay
accordingly.
Features
• Free SMS
• Roaming in over 2400 cities
Postpaid mobile: In Postpaid service, the company itself generate the monthly bill to the
customers. TATA Indicom postpaid mobile phone STD call charges are amongst the lowest in
India for distances over 500 km with absolutely no additional-airtime charges Most importantly,
TATA Indicom postpaid mobile phone offers superior voice clarity, congestion-free networks,
high speed data access, and coverage in over 1000 cities.
Mobile handset: TATA Indicom has the widest range of CDMA Handsets to choose from a
range of the top CDMA mobile handsets from Nokia, Samsung, Motorola, Huawei and Haier
with low price.
Samsung
Haier CG100
Indicom
ZTE
ZTE- CS130
Wireless phones: TATA introduced Walky Talky, are highly economical and easy to use.
• Speaker Phone
• Roam at home
• Save using Group Call across wireline, mobile and wireless phones
Security Features
Landline phones: TATA Indicom offers instant phone connections. TATA Indicom Landline
Phone services based on the state of the art Optical Fibre Cable-based backbone.
Accurate billing
TATA indicom have more than 10000 retail outlets in a district. TATA have their own retail
business unit located at all cities. These are: -
HNI
BRBU
EBS
CMBU
The Enterprise Business Service function drives business growth & customer centricity by
providing telecom related solutions to Corporate Entities. The EBS function also undertakes
customer relationship management and retention along with revenue enhancement and channel
management.
The Branded Retail Business Unit looks after the retail chain of the TATA Indicom
Exclusive stores. Branded retail has a national presence with over 3100 outlets
comprising of 600 TTSL (Company) owned stores and more than 2500 stores in the
Franchisee format Branded Retail outlets have become the touch points for its
customers in more than top 1000 towns in India.
The Consumer Market Business Unit (CMBU) deals with the large and dynamic pre-
paid segment of the telecom sector. CMBU has always offered to its customers with
innovative
offers like Non Stop Mobile (Lifetime Validity) attractive bundled packages (handsets +
connections), cheapest tariff plans, etc.
Television advertisement
TATA Indicom products have different pricing strategies. There are two types of pricing
strategies. They are market skimming and market penetration. Skimming means fixing
at high price and selling to those customers who are less price sensitive. Penetration
means fixing at low price initially. TATA Indicom follows their product by fixing the price
at high.ie; market skimming. The price include the hand set and connection charge
Competitors
To study whether the services provided by Tata Indicom is significantly superior to that
of its competitors and whether there is any scope for improving the quality of service further.
1To study the factors which are considered as important by the customers for feeling
satisfied.
2To find out whether the Tata indicom is providing satisfactory services to their
customers by meeting the identified factors.
3To find out the satisfaction level of competitors customers and to identify the positive
factors.
4To suggest improvements needed in Tata Indicom services.
1.4 LIMITATIONS OF THE STUDY
Time pressure The respondents who initially were reluctant to participate because
they were busy. However, when they were persuaded they sometimes were
anxious to complete the questionnaire fast which might reduce the quality of data.
The survey is limited to Chennai town alone and the study cannot be generalized
to other geographical locations.
CHAPTER III
1)Brand selection
The research study tiltled “factors affecting the brand decision in the mobile phone industry” in
Asia by Liu 2002.This study found that the choice of a cellular phone is characterized by two
attitudes to brands : attitude towards the mobile phone brand on one hand and attitude towards
the network on the other. While price and regularity of service were found to dominate choice
between network providers, choices between mobile phone brands were affected by new
technology features such as memory capacity and SMS – options, more than size. The brand will
actually be not towards smaller phones but towards phones with better capability and larger
screen.
2) Consumer satisfaction
3) Consumer behavior
The titled named “consumer buying behavior” by Martin Tina; Sam Manaberi [2005] discussed
the industrial purchasing stands for more than half of the whole economic activity in
industrialized countries. Therefore it is important to understand how industries perform buying
activities. The telecommunication industry is a fast growing industry and therefore interesting to
investigate. The purpose of this study was to investigate the characteristics of industrial buying
behaviour in the telecommunication industry. The purpose has been further developed in forms
of research questions dealing with the buying process, buying center and choice criteria. A case
study was made with a customer, to the telecom supplier Ericsson, from the company HI3G
Access, also known as 3. A highly topical company in the third generation telecom networks
with Ericsson as one of their primary suppliers. The conducted telephone interview indicates a
swift buying process, influenced by word of mouth. Additional findings involve a small buying
center, which is mainly controlled by the technical and procurement staff and the importance of
price as a selection criteria as the product is becoming a commodity.
4) Consumer behavior
The article named “consumer buying behavior in mobile phone market in Finland” by EMAC
conference, Track : New Technologies and E – Marketing. The survey conducted with 397
consumers and looked at their motives to purchase new mobile phones on one hand and factors
affecting operator choice on the other. The results indicate that while price and properties were
the most influencial factors affecting the purchase of a new mobile phone, price, audibility and
friends operator were regarded as the most important in the choice of the mobile phone operator.
This paper concludes with a discussion of contributions and purposes ideas for future studies in
this under researched area.
The project study titled “customer buying behavior of mobile phone brands” by Riquelme
(2001. She conducted an experiment with 94 consumers to identify the amount of self –
knowledge consumers have when choosing between mobile phone brands. The study was build
upon six key attributes like telephone features, connection fee , access cost , mobile to mobile
phone rates call rates and free calls related to mobile phone purchasing respondents had to
importance rate. The research shows that consumers with prior experience about a product can
predict their choices relatively well but customers tended to overestimate the importance of
features, call rates, and free call and underestimates the importance of a monthly access fee,
mobile to mobile phones rates and the connection fee.
6) Consumer perception
The article titled “consumer perception and its choice mobile telecom service provider in
Malaysia,Journal of International Business and Economics, May, 2007 by Ahasanul Haque, Ali
Khatibi, Abdur Raquib, Shameem Al Mahmud. The study aims to find out what are critical
factors those are playing an important role to select the telecommunication service provider.
Result provides a comprehensive analysis of the important factors for playing an important role
for the customer to select the telecommunication service provider. The analysis confirms the
significant positive relationship of price, service quality, product quality and availability, and
promotional offer for consumer perception. These factors are expected to have a great role
during the time to choose telecommunication service provider. In conclusion, practitioners can
be deriving a better understanding of the activities that are being played a vital role for the
consumer perception.
Consumer
An individual who buys products or services for personal use and not for manufacture or resale.
A consumer is someone who can make the decision whether or not to purchase an item at the
store, and someone who can be influenced by marketing and advertisements
Customer
A person, company, or other entity which buys goods and services produced by another person,
company, or other entity.
Customer service
According to Turban et al “customer service is a series of activities designed to enhance the level
of customer satisfaction that is, the feeling that aproduct or service has met the customer
expectation.
The needs, wants and preconceived ideas of a customer about a product or service. Customer
expectation will be influenced by a customer’s perception of the product or service and can be
created by previous experience, advertising , hearsay, awareness of competitors and brand image.
The level of customer service is also a factor and a customer might expect to encounter
efficiency, helpfulness, reliability, confidence in the staff and a personal interest in his / her
patronage.
Customer satisfaction
Customer satisfaction is a measure of how products and services supplied by the company meet
or surpass customer expectation. Satisfaction is a person’s feelings of pleasure or disappointment
resulting from comparing a product’s perceived performance in relation to his or her expectation.
• Anticipate your client’s needs and go out of your way to help them out
Kano's model of customer satisfaction distinguishes six categories of quality attributes, from
which the first three actually influence customer satisfaction:
1. Basic Factors. (Dissatisfiers. Must have.) - The minimum requirements which will cause
dissatisfaction if they are not fulfilled, but do not cause customer satisfaction if they are
fulfilled (or are exceeded). The customer regards these as prerequisites and takes these
for granted. Basic factors establish a market entry 'threshold'.
2. Excitement Factors. (Satisfiers. Attractive.) - The factors that increase customer
satisfaction if delivered but do not cause dissatisfaction if they are not delivered. These
factors surprise the customer and generate 'delight'. Using these factors, a company can
really distinguish itself from its competitors in a positive way.
3. Performance Factors. The factors that cause satisfaction if the performance is high, and
they cause dissatisfaction if the performance is low. Here, the attribute performance-
overall satisfaction is linear and symmetric. Typically these factors are directly connected
to customers' explicit needs and desires and a company should try to be competitive here.
4. Indifferent attributes. The customer does not care about this feature.
5. Questionable attributes. It is unclear whether this attribute is expected by the customer.
6. Reverse attributes. The reverse of this product feature was expected by the customer.
• As senior managers, only know about the tip of the iceberg, a small fraction of all the
problems your customers encounter.
• The market transaction (sale) often is not the key point of customer pain and lost
revenue.
DOING THE JOB RIGHT THE FIRST TIME + EFFECTIVE CUSTOMER SERVICE =
MAXIMUM CUSTOMER SATISFACTION/LOYALTY
In
this pyramid shows customers will be the top most priority and next in importance are front line
people who meet, serve and satisfy customers ; under them are the middle managers, whose job
is to support the front – line people so they can serve customers well and at the base is top
management, whose job is to hire and support good middle managers.
Customer behavior
Customer behavior is to know about the customer’s way to obtain, use and dispose products. It's
important for marketing to know the customer behavior by using different strategies. There are
so many different ways to influence customers like new products, promotions, advertisement,
good quality and price etc.
Customer behavior analysis is based on consumer buying behaviour, with the customer playing
the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for
customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of
marketing through the re-affirmation of the importance of the customer or buyer. Customer
behaviour analysis aims to ultimately improve business performance through an understanding
of past and present customers so as to determine and identify future customers and their
behaviour.
Customer-Focused Marketing
All marketing is done with the customer in mind. Marketing can in fact be referred to as
an on-going conversation occuring between business and customer. It is therefore
necessary for businesses to gain in-depth knowledge of their relative customers so that
the best marketing strategies can be employed in order to attract these potential buyers.
This can effectively be done by performing activities such as customer behaviors
analysis to ensure customer retention. Listed below are a number of tips to aid
businesses striving towards customer retention through marketing efforts:
1.Marketing as a Conversation:
Direct interaction with customers is necessary to essentially find out what it is that they are
wanting. This marketing conversation involves a process running from action - reaction -
feedback - repeat. Businesses need to be willing to take the time to listen to their customers as
this can ensure a business of putting something up for offer which is of great worth amongst their
targeted consumers, and is relative to their particular needs and desires. It is required for
businesses to constantly perform marketing promotion so that these customers will come back
for more. Giving satisfaction to first-time buyers can prove effective for a business in the long-
run for the reason that by giving customers what they desire the first time round, customer
retention is encouraged through this form of customer loyalty.
1. Active Customers:
Making customers feel as though they are in control is an effective strategy in customer-focused
marketing. This is done by transforming consumers into active customers who are given the
ability to make choices for themselves by actively engaging in promotions and, hereby, deciding
on the best possible products and services their money can buy. Customer retention is
encouraged through this interaction with customers which aids in customer loyalty. Businesses
need to make each and every one of their customers feel good about themselves by giving
themsomething to do. Therefore, retaining customers means keeping them happy by keeping
them active.
This is most effectively done through an analysis of the actual behaviour of past and present
customers. Actual behaviour needs to be differentiated from demographic behaviours (which are
implied consumer characteristics). Actual behaviour is, as such, better at predicting the future
which is done by keeping a watch over the actions customers perform with regard to online
purchases and the products they purchase over the Internet.
Businesses need to take their budget into consideration when allocating resources for
promotions. It is well-known amongst businesses that some marketing activities will generate
higher profits than others and data therefore needs to be created by interacting with customers in
order to consequentially identify the most profitable promotions, which will be delivered to the
right customer at the right time, without wasting time or money. Hereby, effectivemarketing
means avoiding unprofitable promotion which will as such mean not reaching the right
customers and wasting money.
Minor re- purchase – these are the most routine of all purchase and often the
consumer returns to purchase the same product without giving much thought to
other product options.
Major new purchase – these purchases are the most difficult of all purchase
because the product being purchased is important to the consumer but the
consumer has little or no previous experience making new decisions. The
consumer’s lack of confidence in making this type of decision often requires the
consumer to engage in an extensive decision making process
Major repurchase – the purchase decision are also important to the consumer feels
confident in making these decisions since they have previous experience purchasing
the product
2. Information search--
o External search if you need more information. Friends and relatives (word of mouth).
Marketer dominated sources; comparison shopping; public sources etc.
3. Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer wants
or does not want.
5. Purchase--May differ from decision, time lapse between 4 & 5, product availability.
6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance,
have you made the right decision. This can be reduced by warranties, after sales
communication etc.
• Awareness
• Reasons for buying
• Current usage
Customer loyalty
The term customer loyalty is used to describe the behavior of repeat customers, as well as those
that offer good ratings, reviews, or testimonials. Some customers do a particular company a great
service by offering favorable word of mouth publicity regarding a product, telling friends and
family, thus adding them to the number of loyal customers.
1. Communicate: - Whether it is an email newsletter, monthly flier, a reminder card for a tune
up, or a holiday greeting card, reach out to the customers.
2. Customer Service: - Go the extra distance and meet customer needs. Train the staff to do the
same. Customers remember being treated well.
3. Employee Loyalty: - Loyalty works from the top down. If managers are loyal to the
employees, they will feel positively about their jobs and pass that loyalty along to customers.
4. Employee Training: - Train the employees and interact with customers. Empower employees
to make decisions that benefit the customer.
9. People over Technology: - The harder it is for a customer to speak to a human being when he
or she has a problem, the less likely it is that you will see that customer again.
10. Know Their Names: - Remember the theme song to the television show Cheers? Get to
know the names of regular customers or at least recognize their faces.
This model is developed by Schelsinger and Heskett (1991). In this model explains that effort
spent in selecting and training employees and creating a corporate culture in which they are
empowered can lead to increased employee satisfaction and employee competence. This will
likely result in superior service delivery and customer satisfaction. This in turn will create
customer loyalty, improved sales levels and higher profit margins.
Essentials of customer care
They should apologise, be sympathetic, listen, establish the facts, agree what to do and then
do it
If use computerised telephone systems, give customers the option of talking to an operator at
any time.
Customer retention
Customer retention rate: -- The customer retention rate refers to the number of
customers lost over a period of time. It is normally calculated by the percentage of lost
customers versus existing customers over a quarterly or annual period, without tallying
new customer acquisitions
Customer lifetime value enable an organization to calculate the net present value of the
profit an organization will realize on a customer over a given period of time. Retention
Rate is the percentage of the total number of customers retained in context to the
customers that approached for cancellation.
Customer perception
Perception is the process of selecting, organizing and interpreting information inputs to produce
meaning. IE we chose what info we pay attention to, organize it and interpret it.
Information inputs are the sensations received through sight, taste, hearing, smell and touch.
• Selective Exposure-select inputs to be exposed to our awareness. More likely if it is linked to
an event, satisfies current needs, intensity of input changes (sharp price drop).
• Selective Distortion-Changing/twisting current received information, inconsistent with
beliefs.
• Selective Retention-Remember inputs that support beliefs, forgets those that don't.
The survey is limited to Chennai town alone and the study cannot be generalized
to other geographical locations.
CHAPTER – 3
RESEARCH METHODOLOGY
3.1 METHODOLOGY
3.2 SAMPLING
A sample is a smaller representation of a larger whole. When some of the elements are
selected with the intention of finding out something about the population from which they are
taken, that group of elements is referred as a sample, and the process of selection is called
Sampling.
“A sample design is the theoretical basis and practical means by which we infer the
characteristics of some population by generalizing from the sample of relatively few of the units
comprising the population”.
When population elements are selected for inclusion in the sample based on the ease or
access it can be called as convenience sampling.
The sampling design of the study is based on stratified random sampling. The researcher
has selected 300 respondents randomly in Chennai.
The Chennai was divided into three stratas, namely north, south and central. Various
places like shopping mall, theatres, banks were chosen to draw sample. 100 respondents were
surveyed from each strata accounting to a total of 300.
The Primary data are those which are collected afresh for the first time, and thus happens
to be original in character.
Among the various methods, which can be used to collect the primary data, the researcher
has adopted two methods which are Personal Interview method and Structural Questionnaire
method. The researcher prepared structured questionnaires, which contained predominantly
multiple choice questions. The respondent’s opinions are gathered with regard to the problem
with the help of the questionnaires.
The Secondary data are those which have already been collected by someone else and
which have already passed through the statistical process.
Structured Questionnaire.
Personal Interviewing.
The various statistical techniques which are applied for analysis are:
Percentage Analysis
Chi-Square test.
CHAPTER 4
INFERENCE
From the above table it can be observed that out of 300 respondents, 67% of the
respondents are males and 33% of the respondents are females.
TABLE NO. 4.1.2
AGE OF THE RESPONDENTS
No. of
S.No. Age Percentage
Respondents
1 Below 30 years 61 20.3
2 31-35 years 93 31.0
3 Above 35 years 146 48.7
Total 300 100.0
From the above table it is observed that 48.7% of the respondents belong to above 35
years category, 31.0% of the respondents belong to 31-35 years category, 20.3% of the
respondents belong to below 30 years category.
TABLE NO. 4.1.3
EDUCATIONAL QUALIFICATION OF THE RESPONDENTS
No. of
S.No. Educational Qualification Percentage
Respondents
1. Undergraduate 149 49.7
2. Postgraduate 74 24.6
3. Professional 77 25.7
Total 300 100.0
INFERENCE
It is observed from the above table that 49.7% of the respondents are undergraduates,
25.7% of the respondents are professionally qualified and 24.6% of the respondents are qualified
post graduates.
TABLE NO. 4.1.4
EMPLOYMENT STATUS OF THE RESPONDENTS
No. of
S.No. Employment Details Percentage
Respondents
1 Salaried 170 56.6
2 Professional 42 14.0
3 Business 38 12.7
4 Retired 50 16.7
Total 300 100.0
INFERENCE
It is observed from the above table that 56.6% of the respondents belong to salaried
class, 16.7% of them are retired people, 14% of them are professional and 12.7% of the
respondents are doing business.
TABLE NO. 4.1.5
OWNING OF TATA INDICOM PRODUCT
No. of
S.No. Period Percentage
Respondents
1. <6 months 115 38.3
2. 6-12 months 119 39.7
3. > 1 year 66 22.0
Total 300 100.0
INFERENCE
From the above table it is found that 39.7% of the respondents use Tata Indicom landline
phone for a period which is 6-12 months, 38.3% of the respondents using the product for less
than 6 months and 22.0% of them using it for a period above 1 year.
No. of
S.No. Opinion Percentage
Respondents
1. Plan 240 125 41.7
2. Plan 499 175 58.3
Total 300 100.0
INFERENCE
From the above table it is observed that 58.3% of the respondents are using plan 499 and
41.7% of the respondents are using plan 240.
INFERENCE
It is observed from the above table that 37.7% of the respondents were billed between
Rs.500-Rs.1000 followed by 28.0% of the respondents who were billed below Rs.500, 21.6% of
the respondents paid in the range of Rs.1000 -Rs.2000 and 12.7% of the respondents paid an
amount which is above Rs.2000.
No. of
S.No. Opinion Percentage
Respondents
1. Yes 193 64.3
2. No 107 35.7
Total 300 100.0
INFERENCE
From the above table it is observed that 64.3% of the respondents are happy that their
bills were delivered in time and 35.7% of them reported that their bills were not delivered in
time.
INFERENCE
From the above table it is observed that 63.6% of the respondents are satisfied to
some extent with the quality of monthly bill, 15% of the respondents are neither satisfied nor
dissatisfied, 11.7% of the respondents are dissatisfied to some extent with the level of quality of
monthly bill and 9.7% of the respondents are highly satisfied.
TABLE NO. 4.1.10
PAYMENTS AT CUSTOMER CARE
No. of
S.No. Opinion Percentage
Respondents
1. Made at customer care 221 73.7
2. Made elsewhere 79 26.3
Total 300 100.0
From the above table it is observed that 73.7% of the respondents made the payments
at customer care and 26.3% of the respondents made the payments elsewhere.
No. of
S.No. Opinion Percentage
Respondents
1. Highly Satisfied 55 18.3
2. Satisfied 193 64.4
3. Neutral 28 9.3
4. Dissatisfied 24 8.0
Total 300 100.0
INFERENCE
From the above table it is observed that 18.3% of the respondents are highly satisfied
with the level of customer service, 64.4% of the respondents are satisfied some what, 9.3% of the
respondents are neither satisfied nor dissatisfied and 8.0% of the respondents are dissatisfied
some what with the level of customer service.
From the above table it is observed that 49.3% of the respondents are highly satisfied
with the level of free calls and pulse duration followed by 38.3% of the respondents belonging
to category satisfied some what, 10% of the respondents are neither satisfied nor dissatisfied and
2.3% of the respondents are dissatisfied some what.
TABLE NO. 4.1.13
SATISFACTION LEVEL WITH REGARD TO COVERAGE - TATA INDICOM
No. of
S.No. Opinion Percentage
Respondents
1. Highly Satisfied 100 33.3
2. Satisfied 141 47.0
3. Neutral 55 18.3
4. Dissatisfied 4 1.3
5. Highly dissatisfied 0 0
Total 300 100.0
No. of
S.No. Opinion Percentage
Respondents
1. Highly Satisfied 108 36.0
2. Satisfied 122 40.7
3. Neutral 43 14.3
4. Dissatisfied 27 9.0
Total 300 100.0
No. of
S.No. Opinion Percentage
Respondents
1. Highly Satisfied 60 20.00
2. Satisfied 123 41.00
3. Neutral 80 26.67
4. Dissatisfied 37 12.33
Total 300 100.0
No. of
S.No. Opinion Percentage
Respondents
1. BSNL 143 47.7
2. Reliance 53 17.7
3. Airtel 104 34.6
Total 300 100.0
INFERENCE
From the above table it is observed that 47.7% of the respondents are using the BSNL
connections, 34.6% of the respondents are using Airtel connections and.
INFERENCE
From the above table it is observed that 26% of the respondents are using the Airtel
phone line for a period of 1-3 years, 5.3% of the respondents are using the Airtel connection for a
period of over 3 years and 3.3% of the respondents are using the facility for a period below 1
year.
INFERENCE
From the above table it is observed that 26% of the respondents are using the BSNL
phone line for period of above 3 years, 17.7% of the respondents are using the BSNL connection
for a period between 1-3 years and 4% of the respondents are using the facility for a period of
below 1 year.
No. of Percentage
S.No. Usage Period
Respondents
1. <1 year 31 10.3
2. 1-3 years 10 3.3
3. >3 years 12 4.0
Total 53 17.6
INFERENCE
From the above table it is observed that 10.3% of the respondents are using the
Reliance phone line for a period below 1 year, 4% of the respondents are using the Reliance
connection for a period above 3 years and 3.3% of the respondents are using the facility for a
period of 1-3 years.
TABLE NO. 4.1.20
FLEXIBILITY AND EASE OF THE PAYMENT
No. of
S.No. Opinion Percentage
Respondents
1. BSNL 34 11.3
2. Reliance 21 7.0
3. Airtel 32 10.7
4. Tata Indicom 213 71.0
Total 300 100.0
TABLE NO.4.1.20
FLEXIBILITY AND EASE OF THE PAYMENT
INFERENCE
From the above table it is observed that 71% of the respondents opined that Tata
Indicom offers more flexible and ease mode of payment, 11.3% of them prefer BSNL, which
10.7% of them prefer Airtel and 7% of them prefer Reliance.
No. of
S.No. Opinion Percentage
Respondents
1. BSNL 62 20.7
2. Reliance 14 4.7
3. Airtel 57 19.0
4. Tata Indicom 167 55.7
Total 300 100.0
TABLE NO.4.1.21
INFORMATION ABOUT PRODUCT AND PLAN CHANGE
INFERENCE
From the above table it is observed that 55.7% of the respondents feel that product
and plan change are informed to the customer first by Tata Indicom, 20.7% of them feel the same
with BSNL, 19% of them says it is Airtel and 4.7% of them with Reliance.
1. Highly Satisfied 29 9 10 3 12
2. Satisfied 191 56 36 42 134
3. Neutral 45 50 3 40 93
4. Dissatisfied 35 16 12 11 39
5. Highly Dissatisfied 0 12 2 8 22
Total 300 143 53 104 300
Chi-square Contingency Table Test for Independence
1. Hypothesis:
4. Degrees of Freedom :8
6. Critical-value : 15.5
INTERPRETATION:
Since the calculated value is greater than the tabulated value, the null hypothesis is
rejected. Therefore the preference level of various BSNLof the respondent and various Reliance
are not independent
INFERENCE
44.67% of total respondents surveyed felt that the quality of monthly bill generated
by the various service providers were satisfactory.
However the satisfactory level was more pronounced by the users of Reliance than
BSNL & Airtel.
1. Highly Satisfied 55 6 0 3 9
2. Satisfied 193 54 25 43 122
3. Neutral 28 79 25 48 152
4. Dissatisfied 24 4 3 10 17
5. Highly Dissatisfied 0 0 0 0 0
Total 300 143 53 104 300
1. Hypothesis:
4. Degrees of Freedom :8
INTERPRETATION:
Since the calculated value is greater than the tabulated value, the null hypothesis is
rejected. Therefore the preference level of various tax saving sources of the respondent and
various tax savings are not independent
INFERENCE
50.7% of total respondents surveyed felt that the customer service provided by the
various service providers were neither satisfied nor dissatisfied.
However the satisfactory level was more pronounce by the users of Reliance than
BSNL & Airtel.
1. Hypothesis:
4. Degrees of Freedom :8
6. Critical-value : 15.5
INTERPRETATION:
Since the calculated value is greater than the tabulated value, the null hypothesis is
rejected. Therefore the preference level of various tax saving sources of the respondent and
various tax savings are not independent
INFERENCE
55.33% of total respondents surveyed felt that the features of the phone provider were
neither satisfied nor dissatisfied.
However the satisfactory level was more pronounced by the users of Reliance than
BSNL and Airtel.
Row 1 Observed 18 48 66
Row 2 Observed 44 33 77
Row 4 Observed 18 34 52
Row 5 Observed 2 9 11
1. Hypothesis:
Null Hypothesis (H0) : The preference level of various tax
4. Degrees of Freedom :4
6. Critical-value : 9.49
INTERPRETATION:
Since the calculated value is greater than the tabulated value, the null
hypothesis is rejected. Therefore the preference level of various tax saving sources of
the respondent and various tax savings are not independent
INFERENCE
36% of total respondents surveyed felt that the free calls provided by the various
service providers were satisfied.
However the satisfactory was pronounced by the user of BSNL than Reliance and
Airtel.
1. Hypothesis:
4. Degrees of Freedom :8
6. Critical-value : 15.5
INTERPRETATION:
Since the calculated value is greater than the tabulated value, the null hypothesis is
rejected. Therefore the preference level of various tax saving sources of the respondent and
various tax savings are not independent
INFERENCE
43.3% of total respondents surveyed felt that the coverage provided by the various
service providers were satisfied.
However the satisfactory was pronounced by the user of Airtel than BSNL &
Reliance.
Reliance&Airte
BSNL Total
l
Row 1 Observed 18 48 66
Row 2 Observed 44 33 77
Row 4 Observed 18 34 52
Row 5 Observed 2 9 11
4. Degrees of Freedom :4
6. Critical-value : 9.49
INTERPRETATION:
Since the calculated value is greater than the tabulated value, the null
hypothesis is rejected. Therefore the preference level of various tax saving sources of
the respondent and various tax savings are not independent
INTERPRETATION:
Since the calculated value is greater than the tabulated value, the null hypothesis is
rejected. Therefore the preference level of various tax saving sources of the respondent and
various tax savings are not independent
INFERENCE
42.33% of total respondents surveyed felt that the overall service provided by the
various service providers were satisfied.
However the satisfactory was pronounced by the users of Airtel than BSNL &
Reliance.
Customer Service
Highly
Satisfied Neutral Dissatisfied
Satisfied
UG Level 42 88 11 8 149
PG Level 6 52 10 6 74
Professional 7 53 7 10 77
Total 55 193 28 24 300
Level of Significance = 5%
Degree of Freedom = 6
Calculated 2 value = 22.674
Table value = 12.592
INFERENCE
It is found from the above table that calculated value is greater than the table value at
5% level of significance with 6 degree of freedom. So, Null hypothesis (H0) is rejected. Hence,
it is concluded that, there is a significant relationship between educational qualification and
customer service.
TABLE 4.2.2
EDUCATIONAL QUALIFICATION OF THE RESPONDENTS AND
SATISFACTION LEVEL WITH REGARD TO THE
FEATURES OF TATA INDICOM
TABLE 4.2.4
INFERENCE
It is found from the above table that calculated value is greater than the table value at
5% level of significance with 6 degree of freedom. So, Null hypothesis (H0) is rejected. Hence,
it is concluded that, there is a significant relationship between occupational status and period of
usage of Tata Indicom.
TABLE 4.2.5
Level of significance = 5%
Degree of Freedom = 3
Calculated 2 value = 8.519
Table value = 7.815
INFERENCE
It is found from the above table that calculated value is greater than the table value at
5% level of significance with 3 degree of freedom. So, Null hypothesis (H 0) is rejected. Hence,
it is concluded that, there is a significant relationship between occupational status and use of
different plan of Tata Indicom.
TABLE 4.2.6
AVERAGE PHONE BILL AND
SATISFACTION LEVEL WITH THEIR BILL AMOUNT OF TATA INDICOM
Null Hypothesis (H0) : There is no significant relationship between using plan and
satisfaction level with regard to free calls and pulse
duration of Tata Indicom.
Alternative Hypothesis (H1) : There is a significant relationship between using plan and
satisfaction level with regard to free calls and pulse
duration of Tata Indicom.
Plan
Plan 224 Plan 450
Highly Satisfied 78 70 148
Satisfied 26 89 115
Neutral 16 21 37
Total 120 180 300
INFERENCE
It is found from the above table that calculated value is greater than the table value at
5% level of significance with 2 degree of freedom. So, Null hypothesis (H0) is rejected. Hence,
it is concluded that, there is a significant relationship between using plan and satisfaction level
with regard to free calls and pulse duration of Tata Indicom.
CHAPTER – 5
5.1 FINDINGS
4Most (59.3%) of the respondents are salaried class; while only 14% of them are professional..
5Most (42.7%) of the respondents possess TATA indicom phone for the past 6-12 months.
6Most (60%) of the respondents are using plan 450.
8Most (64.3%) of the respondents say that their bills are delivered in time.
9Most (68%) of the respondents are satisfied some what with the quality of monthly bill.
11Majority (66%) of the respondents are satisfied some what with the level of customer service.
12Most (49.3%) of the respondents are highly satisfied with the level of free calls and pulse
duration.
13Most (47%) of the respondents are satisfied some what with the level of coverage.
14Most (45%) of the respondents are satisfied some what with the various features of phone line.
1626% of the respondents are using the Airtel phone line during the last 1-3 years.
1726% of the respondents are using the BSNL phone line above 3 years.
1810.3% of the respondents are using the Reliance phone line below 1 year.
19Most (71%) of the respondents opined that payment of the dues of Tata Indicom is more
flexible and easy.
20Most (55.7%) of the respondents say that the product and plan change are informed first by
Tata Indicom.
22There is a significant relationship between educational qualification and satisfaction level with
regard to the features of Tata Indicom.
23There is a significant relationship between occupational status and satisfaction level with
regard to the features of Tata Indicom.
24There is a significant relationship between occupational status and period of usage of Tata
Indicom.
25There is a significant relationship between occupational status and use of different plan of
Tata Indicom.
26There is a significant relationship between average phone bill and satisfaction level with their
Bill amount of Tata Indicom.
27There is a significant relationship between using plan and satisfaction level with regard to free
calls and pulse duration of Tata Indicom.
To sum it,
providers
Overall Satisfaction 61% 48% (Airtel)
Coverage 80% 57% (Reliance)
Free calls & pulse duration 89% 60% (Reliance)
Features 76% 41.3% (Airtel)
Customer service 82.7% 47.2% (Reliance)
Monthly Bill 68.3% 67.3% (Reliance)
The above given table shows that the satisfaction level for the various parameters for
TATA Indicom vis-à-vis its competitors.
The table above shows that TATA Indicom is an edge above the other operators in
the Chennai Zone.
5.2 SUGGESTIONS AND RECOMMENDATIONS
The study has reveled that TATA indicom has scored high on every parameter of
satisfaction.
The telecom service providers today are facing a ‘customer charm’ namely customer
defection. Customer defection is like adding water to a leaking bucket because, today, many
customers switch operators. Often the smallest amount of dissatisfaction leads to defection
because there is plenty of choice at the market lace. Hence the loyalty of customer should be
enhanced and sustained. Some of the ways in which this loyalty can be enhanced are to build a
strong relationship with customers :
a)The sales person can phone to the customer to check whether the product is meeting
expectations and can ask the customer for any product (or) service improvement
suggestions and any specific disappointments (Accountable marketing).
b)The sales person can contact the customer from time to time with suggestions about
improved product uses / new product features. (Proactive marketing).
5.3 CONCLUSION
TATA Indicom customer base is increasing rapidly in the Chennai Zone, and the
customer satisfaction survey has also yielded positive results on every parameter ranging from
coverage, billing to overall satisfaction. Hence the study can be concluded by saying that the
franchisee has to build a strong customer relationship cell and maintain its pride.
A STUDY ON SATISFACTION LEVEL OF SERVICE PROVIDED
BY
TATA INDICOM VIS-A-VIS ITS COMPETITORS
1. Name :
2. Address :
3. Phone Number :
4. Age :
5. Educational Qualification
6. Employment Details
a) Salaried b) Professional
c) Business d) Retired
e) Others
a) Yes b) No
8. How long have you been owning Tata Indicom?
a) Yes b) No
13. Does Tata Indicom customer care remind you about your payments?
a) Yes b) No
14. What is your satisfaction level regarding customer service?
15. What is your satisfaction level regarding the free calls and pulse duration?
16. What is your satisfaction level regarding the coverage of Tata Indicom?
17. What is your satisfaction level regarding the features of the phone?
18. What are the connections you use other than Tata Indicom?
20. Which service provider’s mode of payment do you think is more flexible and easy to pay
21. Which service provider gives the most information about the product and plan change in
time
22. What is your satisfaction level regarding monthly bill among the four service providers?
(Tick where ever applicable)
Highly Satified Neutral Dissatified Highly
satisfied dissatisfied
Airtel
BSNL
Reliance
Tata
indicom
23. What is you satisfaction level regarding customer service among the four service
providers? (Tick where ever applicable)
Highly Satified Neutral Dissatified Highly
satisfied dissatisfied
Airtel
BSNL
Reliance
Tata
indicom
24. What is your satisfaction level regarding features of the phone among the four service
providers? (Tick where ever applicable)
Highly Satified Neutral Dissatified Highly
satisfied dissatisfied
Airtel
BSNL
Reliance
Tata
indicom
25. What is your satisfaction level regarding free calls and pulse duration among the four
service providers? (Tick where ever applicable)
Highly Satified Neutral Dissatified Highly
satisfied dissatisfied
Airtel
BSNL
Reliance
Tata
indicom
26. What is your satisfaction level regarding the coverage among the four service providers?
(Tick where ever applicable)
Highly Satified Neutral Dissatified Highly
satisfied dissatisfied
Airtel
BSNL
Reliance
Tata
indicom
27. What is your overall satisfaction level among the four service providers? (Tick where
ever applicable)
___________________________________________________________
Thanking you
REFERENCES
BIBILIOGRAPHY
2. Philip Kotler and Kevin Lane Keller (2005), Marketing Management Twelfth Edition,
3. Liu, Vol 4, (2002) Factors affecting the brand decision in the mobile phone industry
5. The ICFAI Journals of Service Marketing (March 2008) Vol. 6,No.1, pp. 40 – 50,
India.
of Marketing Management.
WEBSITES
www.tataindicom.com
wwwr.trai.com
www.coai.com
www.telecomindustries.com