GUIDE’S CERTIFICATE

This is to certify that Project titled “THE MARKET POTENTIAL

ANALYSIS AND CUSTOMER SATISFACTION OF AIRTEL TELEPHONE

SERVICES IN SOUTH BANGALORE” has been prepared by MR.

RAJKUMAR, registration number 04XQCM6068 under the

guidance of Dr. N.S VISWANATH, Resident Director, Bhavan -

Marshall MBA program.

This has not formed a basis for the award of any

Degrees/Diploma by any other University

Date:
Place: Bangalore Dr.N.S. VISWANATH

M P Birla Institute of Management 1

 PRINCIPAL CERTIFICATE

This is to certify that Project titled “THE MARKET POTENTIAL

ANALYSIS AND CUSTOMER SATISFACTION OF AIRTEL TELEPHONE

SERVICES IN SOUTH BANGALORE” has been prepared by MR.

RAJKUMAR registration number 04XQCM6068 under the

guidance of Dr. N.S VISWANATH Resident Director, Bhavan -

Marshall MBA program.

This has not formed a basis for the award of any

Degrees/Diploma by any other University

Date:
Place: Bangalore Dr.NAGESH MALAVALLI

M P Birla Institute of Management 2

 PREFACE
The present challenge of professional education is to cope up with fierce
competition with the curriculum transaction and empowerment of a student to enable
them to function effectively in a world that is going to be increasingly market driven.
In order “to learn to learn” and “how to learn” the students must assist and achieve its
practical knowledge and experience of technical nature, which is very important and
helpful for especially those who are aspiring for Masters of Business Administration
(Marketing).

As aspect of management education, which is receiving attention the

evaluation of the practical training, is to bring actual environment in touch of business
management. It is rigidly accepted that the theory widens one’s thinking viz. concepts
of marketing philosophies, but practice indicates the modern marketing and used in
wide variety of setting of products. The training provides me immense opportunity
not only to implement the management to but also to conceptualize them to practical
aspects.

The project report is based on the findings of overall service marketing

activities of Bharti Broadband and Telephone Services, Bangalore.

The report gives true picture of the practical activities done by me in

pursuance of formulated strategy of organization.

RAJKUMAR

M P Birla Institute of Management 3

 DECLARATION

I undersigned, Rajkumar do hereby declare that the project entitled

“ASSESSMENT OF SERVICE QUALITY OF AIRTEL STD AND CCB
CONNECTION SERVICESES IN SOUTH BANGALORE CITY"" is a research work
made for BHARTI TELE-VENTURES LTD. BANGALORE is a genuine and
bonafide research work prepared by me under guidance of my internal project guide.
The matter presented in this project report is prepared and implemented by my self.
This work is submitted to Bangalore University as a partial fulfillment of the
course Master Degree in Business Administration learned and completed at M P Birla
Institute of Management Bangalore.

Place:

Date: Rajkumar

M P Birla Institute of Management 4

 ACKNOWLEDGEMENT
The process of carrying out the customer satisfaction survey has been a great
learning experience in terms of providing value addition both at professional and
personal value.
I am particularly grateful to Mr. G. Srinivas Rao, Zonal Manager, for giving
me an opportunity to undertake a project in AirTel. My short experience with AirTel
has enabled me to appreciate better, the nuances of marketing, the supreme authority
of the customer, thus making it a complete all-inclusive assignment. I extend my
special thanks to Mr. Devi Prashanth & Mr. Hari Prasad, Asst. Manager, for his
cooperation and valuable suggestions. I am immensely grateful to them.
I express my sincere and heartfelt gratitude to my faculty guide
Dr.N S .Vishwanath for his encouragement and insightful comments which has been
always been source of inspiration throughout the course of project.
I also extend my special thanks to all the teaching staff of our college for their
help and cooperation. I express my gratitude to other countless people who have been
generous with time, their support and encouragement.

RAJKUMAR

M P Birla Institute of Management 5

Table of Content

Sr. No. Particulars Page

1 Acknowledgement
2 Declaration
3 Preface
4 Executive Summary 1
5 Introduction Regarding the Project 2
6 Industry Profile 4
7 Company Profile 8
8 Bharti in Karnataka 11
9 Theoretical Background 12
10 Research Design 16
11 Objectives of the Study 16
12 Scope of the Study 17
13 Limitation of the study 17
14 Analysis and Interpretation of the Data 18
15 Hypothesis Testing 39
16 Findings 41
17 Conclusions 44
18 Suggestions and Recommendations 45
19 Annexure 46
20 Bibliography 49

M P Birla Institute of Management 6

 EXECUTIVE SUMMARY

The present Indian telephone sector involves very high competition between
the national players including government and private players. Because of the tough
competition between the service providers the quality of the service also gradually
increases and client shifting from the one service to other services is also very high. In
India the government sector BSNL is the market leader in this sector and it has the
large network. But now private player like Airtel, Reliance Infocom, Tata Indicom etc
are trying to capture the market from BSNL because of their low cost and good
service quality. To keep up while maintaining their service standards successful
players must constantly evaluate the service they offer.

The survey describes the service quality of the Airtel STD and Coin box(CCB)
connection in south Bangalore city. This research work is focused on analyzing the
quality services provide by the Airtel with regarding to STD and CCB connections.
This research study is restricted to the assessment of quality service in STD and CCB
service connections; it cannot concentrate on Airtel mobile services. The project
employs simple random sampling and sampling size for the survey is 200. The study
is based on the data collected through structured questionnaire and informal interview
with the key personnel. Since it is primary research to make data more easily
understanding various statistical tables, charts used to interpret and the final answer
has also tested by the hypothesis. The most important findings of the research work
were the factors that have been identified to assess the pre process service quality and
market awareness of the Airtel STD and CCB connection. The crucial
recommendations and conclusion provided after interpreting and analyzing the
collected data through primary sources for the further research.

M P Birla Institute of Management 7

 INTRODUCTION

BACKGROUND OF THE STUDY

The Indian telecommunications sector is one of the largest and fastest

growing sectors. It also witness one of the fastest market growth rates globally with a
compounded annual growth rate (CAGR) of around 19 percent up to 2006.

Marketing of the service is very difficult compare to the marketing of product.

Because the service is intangible in nature and customer only feel it but cannot touch
it. The quality of services takes a important role in selling the telephone services. The
service quality include good error free network coverage, handling the customer
quarries, attractive promotion strategies, billing accuracy and easy understanding.

This study is undertaken keeping in mind, the accomplishment of the various

planned goals and objectives that have been set by respective researcher. Many
theories have been formulated and simultaneously various books have been written on
various aspect of assessment of service quality study. These theories and books have
been compiled keeping in mind various factors that affect the service quality prior to
purchase and after purchase situation. Taking these theories into consideration
business concern has been involved in studying service quality assessment in a very
detailed manner in order to keep a check on their business.

Private operators have a low market share in STD and CCB connections and
government player BSNL is the market leader in this market. Airtel is second largest
in this STD and CCB market. So, it has the good opportunity to capture the market
from the BSNL.
Airtel is the well known telecommunication service in Bangalore city and it is
the second largest telephone services provider in Karnataka. Presently Airtel,
Reliance, Tata Indicom etc are rapidly entering into STD and CCB market with their
own different marketing strategy. Three main private groups- Bharti, Tata and

M P Birla Institute of Management 8

Reliance are braving the hazards of competing with the private sector incumbents.
This is boom time for the consumers, who have been paying among the world’s
highest tariffs so far.

STATEMENT OF THE PROBLEM

Problem Question:
The problem is to assess the service quality of Airtel STD and CCB connection
services in south Bangalore city?

Objectives
 To study the market awareness of Airtel STD and CCB service.
 To analyze service quality pre process customer satisfaction of Airtel STD and
CCB connections in south Bangalore city.

M P Birla Institute of Management 9

INDUSTRY PROFILE

STD and CCB segment is very profitable for any telecom operator. For this reason
operators give additional importance to STD and CCB services by the operators in
Bangalore city. BSNL was the only telecom operator, which was running the
STD/ISD PCO segment. But recently private operators like Touchtel from
BHARATHI TELENET Limited and TATA Indicom from TATA Tele services and
Reliance entered in this business. The study is conducted to assess the service quality
of Airtel STD and CCB connections in south Bangalore city.

MAIN COMPETITORS
The competition varies across the segments but the current players include the state-
owned operators as well as private operators, operating on the basis of ‘level playing
field’.

In the public sector the main players are:

 Bharat Sanchar Nigam Ltd. (BSNL)
 Mahanager Telephone Nigam Ltd. (MTNL)
 Videsh Sanchar Nigam Ltd. (VSNL)
 Gas Authority of India Ltd.- ( fourth coming projects)

In the private sector the main players are:
 Bharti Tele net Ltd.
 Reliance Telecom Ltd.
 Tata Tele services Ltd.
 Hughes Tele.com (I) Ltd.
 Birla Group, BPL, Hutchison, RPG, Sterling etc.

M P Birla Institute of Management 10

Private Telephony Subscribers overtakes PSU Nos.

As per the data received from operators and their associations, the subscriber base of
private operators have reached 53.76 million whereas that of PSU operators (BSNL &
MTNL) is 53.24 million. The percentage market share of private operators has
become 50.24% as compared to 49.76% of PSU operators.

Subscriber Base as on 31st July 2005 ( in millions)

Market share
Fixed Mobile Total
(%age)
Private Operators 6.43 47.33 53.76 50.24
PSU Operators 40.74 12.50 53.24 49.76
Total 47.17 59.83 107.00 100

The growth pattern of mobile and fixed subscribers of PSUs and private operators
for the last seven years is shown below:

S u b s c r ib e r b a s e o f P S U & P r iv a t e s e c t o r o p e r a t o r s

60

50

40

Tot al P vt.
30

Tot al P S U
20

10

0
M a r c h ,9 8 M a r c h ,9 9 M a r c h ,0 0 M a r c h ,0 1 M a r c h ,0 2 M a r c h ,0 3 M a r c h ,0 4 M a r c h ,0 5 J u l y ,0 5

Ye a r En d i n g

M P Birla Institute of Management 11

The operator wise subscriber base of fixed services & their market share is tabulated
below:

S.No. Service Providers Subscribers Market Share

(in millions) (% age)
1 BSNL 36.8 78.02
2 MTNL 3.94 8.35
3 Tata 3.23 6.85
4 Reliance 1.86 3.94
5 Bharti 0.97 2.06
6 HFCL 0.21 0.44
7 Shyam 0.16 0.34
All India 47.17 100

The operator wise total subscriber base of mobile and fixed telecom services and their
market share as on July 2005 is tabulated below:
S.No. Service Providers Subscribers Market
(in millions) Share
(% age)
1 BSNL 47.96 44.82
2 Reliance 14.01 13.09
3 Bharti 13.76 12.86
4 Hutch 8.85 8.27
5 IDEA 5.73 5.36
6 MTNL 5.27 4.93
7 Tata 4.84 4.52
8 BPL 2.7 2.52
9 Aircel 1.94 1.82
10 Spice 1.49 1.39
11 HFCL 0.27 0.25
12 Shyam 0.18 0.17
Total 107 100
(Source: www.Bharatitele.com for the above tables)

M P Birla Institute of Management 12

The substantial higher investments in the case of PSUs are due the fact that they have
a very large network of fixed lines, which requires considerably greater investment
than the mobile networks. In March 2005 the subscriber number has crossed a figure
of 98 million.

M P Birla Institute of Management 13

Company Profile

AirTel service is operated by the Bharti Cellular Limited is part of the biggest private
integrated telecom conglomerate Bharti Enterprises. Bharti provides a range of
telecom services like Cellular, Basic Internet and recently introduced National Log
Distance Bharti. Bharti also manufacturers and exports telephone terminals and
cordless phones. Apart from being largest manufacturer of telephone instrument in
India, it is the first company to export its products to the USA.

Bharti Tele-Ventures

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

Vision:

TO BE GLOBALLY ADMIRED FOR TELECOM SERVICES THAT

DELIGHT CUSTOMER.

Mission:

We will meet global standards for telecom services that delight customers through:
Customer Service Focus
Empowered Employees
Innovative Services
Cost Efficiency

M P Birla Institute of Management 14

Company History

Bharti Tele-Ventures is one of India’s leading private sector providers of Tele-

communications services with an aggregate of 10.63 million customers as of end of
December ’04 consisting of approximately 9.83 million mobile customers. The
company today offers mobile services in 21 out of 23 circles in India. The company
also provides fixed - line services and Internet access over DSL in 5 circles. The
company complements its mobile and fixed-line services with national and
international long distance services. The company also has a submarine cable landing
station at Chennai, which connects the submarine cable connecting Chennai and
Singapore. The company provides reliable end-to-end data and enterprise services to
the corporate customers by leveraging its nationwide fiber optic backbone, last mile
connectivity in fixed-line and mobile circles.

Sunil Bharti Mittal, Chairman & Managing Director, Bharti Enterprises gets 'The
Best Asian Telecom CEO' award. Bharti Tele-Ventures is Asia's 'Best GSM Carrier'.

BHARTI TAKES TOP HONOURS AT TELECOM ASIA AWARDS ‘2005

Bharti is the only Indian telecom to figure in this year’s Telecom Asia Awards.
Awards decided on the financial, marketing and technological prowess of the
telecoms Telecom Asia Awards 2005 - one of the most prestigious awards in the
telecom sector and Recognized as a ‘Asian Telecom Powerhouse’

Bharti Tele-Ventures has also been adjudged the ‘Best GSM Carrier’ in Asia. It also
won the ‘Best Indian Carrier’ awards. Eight carriers from seven different markets
around the region were presented with their trophies at a glittering ceremony at the
Intercontinental Resort.

M P Birla Institute of Management 15

Bharti is the only Indian company to figure in the merit list at Telecom Asia 2005.
According to Mr. Sunil Bharti Mittal, Chairman & Group Managing Director, Bharti
Enterprises, “The awards mark a great beginning to the Year 2005 and follow a series
of prestigious awards won by Bharti last year. It is heartening to note that Bharti’s
efforts in creating world-class telecom infrastructure are being recognized across the
world. I take this opportunity to thank all the stakeholders including our valued
customers, channel partners and our employees for making Bharti emerge as Asia’s
finest telecom company.”

Airtel Becomes The First GSM Operator In The Country To Cross The 10
Million-Customer Milestone

One in Every Four GSM Mobile Users in the Country Is An AirTel Customer. It
celebrates by launching the AirTel mobile service in Bihar, the 21st telecom circle to
be launched. With the mobile service launches planned for Assam & North East by
the end of this fiscal, AirTel well on course to acquire an All India Footprint. It also
the first Indian GSM operator to join the international club of mobile companies
having 10 million plus customers.

To celebrate the milestone of the first GSM operator in India cross the 10 million
customer mark and to celebrate the milestone AirTel launches of its mobile services
in Bihar. t is clearly the fastest growth achieved by any GSM service provider in the
country. The milestone is also a celebration for the entire Indian mobile industry,
which has shown tremendous resilience over the last decade.
(Source: www.Bharatitele.com)

M P Birla Institute of Management 16

BHARTI IN KARNATAKA

Bharti cellular limited is a part of the mobile services of Bharti Tele Venture and it is
the leading private sector provider of the telecommunication services in Karnataka
covering 280 towns and would soon be present in 355 towns. Mobile services
constitute the largest portion of Bharti’s business both in terms of total revenues and
total customers. The company is also engaged in fixed-line, long distance, group data
and enterprise services. Indian cellular industry and redefined the business through
marketing innovations, introduction of new generation value-added services and the
highest standard of customer delivery. Today, Airtel offers its customers choice and
superior value for money with a range of innovative value-added services backed by
excellent customer service. Airtel Karnataka has been Ranked BEST Cellular Service
Provider in the country & is also the first operator to be bestowed the ISO
certification for quality standards

M P Birla Institute of Management 17

THEORETICAL BACKGROUND

Consumer Research:

It is the process and tools used to study consumer behavior. Consumer behavior refers
to the behavior that display by him/ her in searching for purchasing, using, evaluating
and disposing of product or services that they expect.

Market Exclusivity:

It refers to single means monopoly market. Where the company wants to have full
market control. So, exclusivity in service like telecommunication refers to have only
the company’s services and full control over the intermediaries and customer. Airtel
wants to have exclusive in STD and CCB connections, but it has lot of competition
line like BSNL, Reliance and Tata Indicom etc.

Market:

A market is the set of all actual and potential buyers of a market offer. The size of a
market depends on the number of buyers who might exist for a particular market.

Potential Market:

The potential market is the set of consumers who show a sufficient level of interest in
a market. Potential consumers access to the product offer. The available market is the
set of consumers who have interest, income and access to a particular type. The
potential market for Airtel STD and CCB connection are medical shops, general store,
CD shops, and telephone booth etc who have income and access to particular type.

M P Birla Institute of Management 18

CUSTOMER SATISFACTION

Customer satisfaction is the individual’s perception of the performance of the product

or service in relation to his or her expectations. Customer expectations are the
reference points for performance against which service experiences are compared
Among the various benefits of customer satisfaction, the most important benefit is
that the customer satisfaction creates loyal customer.

TYPES OF CUSTOMERS

SATISFIED CUSTOMERS

Whose experience exceeds the expectations and who provide very positive word of
mouth about the company to the others

NEUTRAL CUSTOMERS

Who are neutral or merely satisfied and are likely to stop doing business with the
company.

DISSATISFIED CUSTOMERS

Who have had negative experience with the company and who spread negative word
of mouth? Who are unhappy customers and who stay with the company because of a
monopolistic environment or low prices and who are difficult and costly to deal with
because of their frequent complaints.

M P Birla Institute of Management 19

Literature survey

The first step of any research study is literature study. Based on the study objective
during the literature study the specific areas and issue up on which data gathering will
be decided. It is a paramount importance because it equips the researcher with macro
view of micro issues.

It gives exhaustive information to the researcher in the area and provides diversified
view on particular subject. Academic journals, conference proceedings, report books
etc are must e tapped depending on the nature of the problem.

It is the process that one source would lead to another. Te literature review
encompasses different kinds of information sources concerning the identification of
various reason behind the assessment if service quality. It started with search in
internet and textbooks and other relevant magazines. The earlier studies, if any which
are similar to the study, concerning the problem at hand must necessarily be surveyed
and examined before a definition of the research problem is given. This is done to find
out what data and other materials, if any are available for optional purpose. All this
will enable a researcher to take new strides in the field for furtherance for knowledge,
i.e., he can move up starting from the existing premise.

The central idea in review of literature is data gathering. So, review of literature is
carried on. A researcher should carefully scrutinize the available information and use
discretion, to find out whether the gathered data is adequate and sufficient for the
problem.

The references were made and extracts were drawn from old project reports and
ICFAI journals. The summary, questionnaire design etc are made with the reference
from those reports.

M P Birla Institute of Management 20

STATEMENT OF THE PROBLEM

Problem Question:

To assess the service quality of Airtel STD and CCB connection services in south
Bangalore city?
Purpose of the study:

The purpose of the study is to examine the assessment of service quality of Airtel
STD and CCB connections in south Bangalore.

Objectives:

 To study the market awareness of Airtel STD and CCB service.

 To analyses service quality pre process customer satisfaction of Airtel STD
and CCB connections in south Bangalore city.
Types of Research:

It is a survey done to know the service quality with regard to Airtel STD and CCB
connections. This includes the questionnaire to know the service quality.

Sampling Technique:

The sampling technique used for this research is Simple Random sampling.

Sample Size

The chosen sample size is 200.The sample is derived from the respondents within
Bangalore city covering about 65 lakh households.

Sample Description:
The subjects for the sampling were picked at random covering a spectrum of
telephone booths, medical shops, general store, CD shops etc. and on the geographical
basis samples are selected.

M P Birla Institute of Management 21

RESEARCH DESIGN:

Marketing research is the systematic collection of information from the primary

sources. Gathered data is subsequently analyzed to determine it usefulness in
marketing decision-making.
Research has being undertaken through following steps.
 Development of Objectives
 Collection of Secondary Data
 Preparation of Questionnaire.
 Design of Sample
 Collection of Primary Data
 Tabulation & Analysis of Data
 Preparation of Report.

COLLECTION OF DATA

Primary Data:

Primary data regarding service quality are collected with the help of questionnaire,
through direct contact with the STD and CCB connection users.

Secondary Data:

Secondary data is the information that already exist somewhere, which has been
collected for another purpose. In this study, secondary data has been collected from
the following sources:
Company Website

Methodology:

A structured questionnaire for the purpose of collecting necessary data has been used.
A non probability, simple random consisted of 200 respondents across south
Bangalore city.

M P Birla Institute of Management 22

Data collection Instrument:

The Questionnaire method of data collection is quite popular, particularly

incase of big enquiries. Questions related to objectives of the study, form major
portion of the questionnaire. It mainly consists of multiple choice questions so that
respondent can mark one of the several choices of answers. Questionnaire is formed
based on the ideas obtained from researcher’s discussion of the problem guide. The
survey has conducted in the areas of Jaynagar, J.P Nagar and Bangalore south region
during the business hours.

Scope of the Study:

The result obtained cannot be generalized to the whole population as the methods for
arriving at the sample size and selecting the sample were unempirical. The findings
are restricted to the particular shop, as there exists a Difference in target customers
and attributes among all the shops.
The study will help the company to identify which Sections need to improve so that it
can provide customers with a better shopping expert. The study will also help the
management to decide how and where to better allocate the resources, such as
technology.

Limitations of the study:

 Study is restricted to only South Bangalore

M P Birla Institute of Management 23

 Data analysis and Interpretation
Table 1:
The table shows about how many STD connections our respondents have
Sr. No. No. of Connections No. Of Respondents Percentage
1 Only One 156 78%
2 Two 16 8%
3 Three 12 6%
4 More than Three 16 8%
Total 200 100%
Source: Field Study
The chart show about how many STD connections our respondents have

180
156
160
140
120
100
80
60
40
16 12 16
20
0
One Tw o Three Three+

The above chart shows that,

78% of respondents have only one STD connection, 8% of respondents have two
connections, 6%of respondents have three connections and 8%of respondents have
more than three connections.

M P Birla Institute of Management 24

Table 2:
The table shows from how many years our Respondents have associated with this
Airtel STD business

Sr. No. Time Duration No. Of Respondents Percentage

1 One to Six Months 28 14%
2 Six to Twelve Months 76 38%
3 1-2 Year 60 30%
4 More than 2 Year 36 18%
Total 200 100%
Source: Field Study

The chart show from how many years our Respondents have associated with this STD
business

80 76
70 60
60
50
40 36
28
30
20
10
0
1-6Months 6-12Months 1-2Year 2Year+

It is depicted from the chart that 14% of respondents are associated with this STD
business from last 1-6 months, 38%of the respondents are associated with this
business from last 6-12months, 30%of the respondents are associated with this
business from last 1-2 years, and 18% of the respondents are associated with this
business from last more than 2 years.
It means the recent STD connections of Airtel are in increasing trend. It gradually
captures the market.

M P Birla Institute of Management 25

Table 3:
The table show about respondent’s average business from the AirTel STD
connections (every month).

Sr. No. Monthly Revenue No. Of Respondents Percentage

1 Less than Rs.3000 112 56%
2 Rs. 3000- Rs. 6000 60 30%
3 Rs. 6000- Rs. 12000 16 8%
4 More than Rs. 12000 12 6%
Total 200 100%
Source: Field Study

The chart show about respondent’s average business from the AirTel STD
connections (every month).

120 112
100
80
60
60
40
16 12
20
0
Less than 3000 3000-6000 6000-12000 More than 12000

The chart depicts that, 56% respondents make business below Rs. 3000 for every
month, 30% of the respondents make business within Rs. 3000-6000 for every month,
8% of the respondents make business within 6000-12000 for every month and 6% of
the respondents make business more than 12000\- for every month.

M P Birla Institute of Management 26

Table 4:

The following tables and charts show how strongly respondents agree or disagree with
each of these statements.

The table shows customer opinion regarding services of sales executive’s to handling
customer quarries.

Sr. No. Customer’s Perception No. of Respondents Percentage

1 Strongly Agree 36 18%
2 Agree 156 78%
3 Neutral 8 4%
4 Disagree 0 0%
5 Strongly Disagree 0 0%
Total 200 100%
Source: Field Study

The chart shows customer opinion regarding services of sales executive’s ability to
answer their quarries.

200 156

150

100
36
50 8 0 0

0
S.Agree Agre e Neutral Dis agre e S.Disagree

The above chart depicts that 18% of respondents were strongly agreed, 78% of
respondents were agreed and 4% of respondents were neutral to that, AirTel service
executives have knowledge to answer their queries.
It means the Airtel customer service in handling service quarries is good and they
have the good knowledge to convince customer.

M P Birla Institute of Management 27

Table 5:
The table shows customer care executives quick responses to customer’s quarries.

Sr. No. Customer’s Perception No. of Respondents Percentage

1 Strongly Agree 28 14%%
2 Agree 80 40%
3 Neutral 64 32%
4 Disagree 24 12%
5 Strongly Disagree 4 2%
Total 200 100%
Source: Field Study

The chart shows customer care executives quick responses to customer’s quarries.

80
64
80

60
28
24
40
4
20

0
S.Agree Agree Neutral Disagree S.Disagree

The above chart depicts that 14% of respondents were strongly agreed, 40% of
respondents were agreed,32% of respondents were neutral,12% of respondents were
disagree and 2% of respondents were strongly disagree to that, AirTel service
executives were never busy to respond.

It means Airtel people are never busy to handle the customer quarries and whenever
customer wants to clarify their doubts they get it.

M P Birla Institute of Management 28

Table 6:

The table shows Airtel service executives pay the individual attention to handling the
customer quarries.

Sr. No. Customer’s Perception No. of Respondents Percentage

1 Strongly Agree 76 38%%
2 Agree 72 36%
3 Neutral 40 20%
4 Disagree 12 06%
5 Strongly Disagree 00 00%
Total 200 100%
Source: Field Study

The charts shows Airtel service executives pay the individual attention to handling the
customer quarries.

76 72
80

60 40

40
12
20 0

0
S.Agree Agree Neutral Disagree S.Disagree

The above chart depicts that 38% of respondents were strongly agreed, 36% of
respondents were agreed, 20% of respondents were neutral, 6% of respondents were
disagreed to that, AirTel service executives pay individual customer attention.
It means the customer Airtel individual customer attention is very good. The more
than 50% respondent satisfied with the Airtel individual attention.

M P Birla Institute of Management 29

Table 7:
The table shows customer view about Airtel error free network.

Sr. No. Customer’s Perception No. of Respondents Percentage

1 Strongly Agree 30 15%
2 Agree 48 24%
3 Neutral 60 30%
4 Disagree 42 21%
5 Strongly Disagree 20 10%
Total 200 100%
Source: Field Study

The chart shows customer view about Airtel error free network.

Strongly
Disagree Strongly Agree
10% 15%
Disagree
21%

Agree
24%

Neutral
30%

The above chart depicts that 15% of respondents were strongly agreed, 24% of
respondents were agreed, 30% of respondents were neutral, 21% of respondents were
disagreed to that and 10% of respondent strongly disagree about the Airtel error free
network. Because customer facing some problem in network like line jumping.

M P Birla Institute of Management 30

Table 8:

The Table shows Airtel service to get resolved the customer problem soon.

Sr. No. Customer’s Perception No. of Respondents Percentage

1 Strongly Agree 40 20%%
2 Agree 96 48%
3 Neutral 48 24%
4 Disagree 16 08%
5 Strongly Disagree 00 00%
Total 200 100%
Source: Field Study

The chart shows Airtel service to get resolved the customer problem soon.

96

100
80 48
40
60
40 16
0
20
0
S.Agree Agree Neutral Disagree S.Disagree

The above chart depicts that 20% of respondents were strongly agreed, 48% of
respondents were agreed, 24% of respondents were neutral, 8% of respondents were
disagreed to that, their problems were resolved very soon.

M P Birla Institute of Management 31

Table 9:

The table shows attractiveness of Airtel displays.

Sr. No. Customer’s Perception No. of Respondents Percentage

1 Strongly Agree 44 22%%
2 Agree 68 34%
3 Neutral 72 36%
4 Disagree 08 04%
5 Strongly Disagree 08 04%
Total 200 100%
Source: Field Study

The chart shows attractiveness of AirTel displays.

68 72
80
44
60

40
8 8
20

0
S.Agree Agree Neutral Disagree S.Disagree

The above chart depicts that 22% of respondents were strongly agreed, 34% of
respondents were agreed, 36% of respondents were neutral, 4% of respondents were
disagree
And 4% of respondents were strongly disagree to that, AirTel displays are very
attractive.

M P Birla Institute of Management 32

Table 10:
Table shows that the customer awareness level of Airtel service guaranty scheme.

Sr. No. Response No. Of Respondents Percentage

1 Yes 96 48%
2 No 104 52%
Total 200 100%
Source: Field Study

The following graph shows that the customer awareness level of Airtel service
guaranty scheme.

Aw a re ne ss of se rvice gua ra nte e sche m e

Ye s
No 48%
52%

Telecom is essential to any modern business, so AirTel telephone services makes sure
to its customers enjoy faultless services. In fact it is one of the few service providers
anywhere to guarantee a minimum level of service to its subscribers.
Under this scheme Rs 100 is paid to subscribers if, AirTel failed to provide the
guaranteed services, which are,
1. Repair of dead line within 4 hours
2. Error free billing
The chart showing you that out of 200 respondents 52% were aware o this scheme
and 48% of subscribers were unaware of this service.

M P Birla Institute of Management 33

The below table and charts showing Airtel service quality with
regards to billing system

Table 11:
Table shows that the Airtel the billing system.

Sr. No. Customer Perception No. Of Respondents Percentage

1 Very Clear 24 12%

2 Ok 48 24%
3 Adjustable 76 38%
4 Difficult 52 26%
5 Very Difficult 16 8%
Total 200 100%
Source: Field Study

Graph shows that the Airtel billing system.

76
80 52
48
60
24
16
40

20

0
Very Clear Ok AdjustableDifficult Very
Difficult

The above chart depicts that 34% of respondents opinioned it is very clear, 56% of
respondents said it is ok, 6% of respondents were adjustable and 6% of respondents
were felt difficult about the AirTel billing system.

M P Birla Institute of Management 34

Table 12:
Table shows that the Airtel billing system Accuracy.

Sr. No. Customer Perception No. Of Respondents Percentage

1 Totally Accurate 64 32%

2 Highly Accurate 116 58%
3 Somewhat 20 20%
4 Not Exactly 00 00%
5 Not Very Accurate 00 00%
Total 200 100%
Source: Field Study

The Chart shows that the Airtel billing system Accuracy.

116
120
100
64
80
60
40 20

20 0 0

0
Totally Highly Somew hat Not Exactly Not Very
Accurate Accurate Accurate

The above chart depicts that 72% of respondents are satisfied for it’s always
regularity and 28% of respondents said it is sometimes regular about the AirTel
billing system.

M P Birla Institute of Management 35

Table 13:
Table shows that the Airtel billing system Regularity.

Sr. No. Customer Perception No. Of Respondents Percentage

1 Always 144 72%

2 Some Times 56 28%
3 Delayed by a week 00 00%
4 Not Regular 00 00%
5 Never Regular 00 00%
Total 200 100%
Source: Field Study

The Chart shows that the Airtel billing system Regularity

144
160

140

120

100
56
80

60

40
0 0 0
20

0
Always SomeTime Delayed by a Nor regular Never Regular
Regular Regular week

The above chart depicts that 72% of respondents are satisfied for it’s always
regularity and 28% of respondents said it is sometimes regular about the AirTel
billing system.

M P Birla Institute of Management 36

Table 14:
The Table shows Airtel respondent how often faced the billing problems

Sr. No. Responses No. of Respondents Percentage

1 Each Billing 00 00%

2 Some Billing 90 45%

3 Not at All 110 55%

Total 200 100%

Source: Field Study

The chart shows Airtel respondent how often faced the billing problems

Not at All 55%

110

Some 45%
Billing 90

Each 0%
Billing 0

Out of 200 respondents 55% of the subscribers have not faced any billing problems
and only 45% of the subscribers had faced the billing problems.
This happens because of understanding the Airtel billing system is bit difficult.

M P Birla Institute of Management 37

Table 15:

The Table shows Airtel executives time taken to clear queries of respondents.

Sr. No. Responses No. of Respondents Percentage

1 Immediate 164 82%

2 About a week 28 14%

3 Not Clarified 8 04%

Total 200 100%

Source: Field Study

The chart shows Airtel executives time taken to clear queries of respondents.

4%
14%

82%

Immediate About a w eek Not Clarified

Out of 200 respondents, 82% of the respondents are very happy So that their
problems get resolved immediately, 14% respondents’ service problems were
resolved within a week and 4% problems of subscriber’s problems are not yet
resolved.

M P Birla Institute of Management 38

Table 16:
The Table shows do all respondents get the needed information from Airtel service
Customer Care center.

Sr. No. Responses No. of Respondents Percentage

1 Yes 184 92%

2 No 16 08%

Total 200 100%

Source: Field Study

The chart shows do all respondents get the needed information from Airtel service
Customer Care center.

No
8%

Yes
92%

AirTel subscribers are very happy regarding the services of customer care center.
Customer care center is struggling hard to provide all information in order to serve
then better. Out of 200 respondents 92% are very satisfied with the services and 8%
are not satisfied with the services of customer care center.

M P Birla Institute of Management 39

Table 17:
The Table shows respondent reason behind dials up to Airtel service customer care
center.

Sr. No. Customer Perception No. Of Respondents Percentage

(Out of 200 Each)
1 Billing Related Enquiries 64 32%
2 To Give Complaint 104 52%
3 Product Related 8 4%
4 Tariff Related 24 12%
Source: Field Study

The chart shows respondent reason behind dials up to Airtel service customer care
center.

Product Related Tarif f Related Billing Related

4% 12% Enquiries
32%

To Give
Complaint
52%

The customers dial up to customer care center for the following reasons.
 32% customer dial up for billing related enquiries
 52% customers dial up to complaint regarding the network problems and services.
 4% customers dial up to make enquiries regarding product and services
 12% customers dial up to make enquiries regarding tariffs and new schemes.

M P Birla Institute of Management 40

Table 18:
The Table shows respondent responses about the AirTel services is good compared to
others.

Sr. No. Customer Perception No. Of Respondents Percentage

1 Strongly Agree 52 26%

2 Agree 116 58%
3 Neutral 20 10%
4 Disagree 08 04%
5 Strongly Disagree 04 02%
Total 200 100%
Source: Field Study
The Table shows respondent responses about the AirTel services is good compared to
others.

D is a g r e e S .D is a g r e e
N e u tr a l 4% 2% S .A g r e e
10% 26%

Agre e
58%

AirTel subscribers believed that the service of AirTel is good as compare to other
service providers like, BSNL, RELIENCE and TATA INDICOM.
 26% customers strongly agree for providing best service than the others.
 58% of customers agrees to the statement that, AirTel services are good compared
to other services.
 10% customers are neutral to express their views regarding best services
provisions.
 4% customers disagree with the above expressed statement.
 2% customers strongly disagree with the above expressed statement.

M P Birla Institute of Management 41

Table 19:
The Table shows Customers rate about quality service by Air Tel as they feel.

Sr. No. Customer Perception No. Of Respondents Percentage

1 Delighted 16 08%
2 Pleased 68 34%
3 Satisfied 108 52%
4 Un Satisfied 08 04%
5 Terrible 00 00%
Total 200 100%
Source: Field Study
The chart shows Customers rate about quality service by Air Tel as they feel.

Terrible
Un Satisf ied 0% Delighted
4% 8%

Pleased
Satisf ied 34%
54%

AirTel customers believed that the service is like this,

 8% customers delighted about the AirTel services.
 34% of customer satisfied about the AirTel services.
 54% of customers are satisfied means neutral about the AirTel services.
 4% of customers are Unsatisfied with AirTel services.
 And no one respondent is having terrible experience with this service means the
respondents are satisfied but not delighted from the service. It means these
satisfied customers very quickly switch to competitor service, because they are not
delighted from present service.

M P Birla Institute of Management 42

Table 20:
Table shows respondent suggestion to new connection buyers like their friend,
relatives etc..

Sr. No. Customer Perception No. Of Respondents Percentage

1 Air Tel 192 96%

2 BSNL 08 04%
3 Tata Indicom 00 00%
4 Reliance 00 00%
Total 200 100%
Source: Field Study

Table shows respondent suggestion to new connection buyers like their friend,
relatives etc.

Tata Indicom
0

Reliance
0

BSNL
8

192

AirTel

0 50 100 150 200 250

Its very proud to state that all the AirTel subscribers are satisfied with AirTel
services and they are enjoying much with the new schemes.
 If any of their friends wants a new connection they proudly suggest to have the
AirTel connection.
 This buzz marketing will definitely helps to increase the sales and market share of
AirTel.
 And also this customer having planned to select Airtel services connection in near
future, if they want to expand their business.

M P Birla Institute of Management 43

Table 21:
Table shows the Response to the question would you like to go for new connection at
your premises.

Sr. No. Responses No. of Respondents Percentage

1 Yes 126 63%

2 No 74 37%

Total 200 100%

Source: Field Study

Chart showing the Response to the question would you like to go for new connection
at your premises.

No
37%

Yes
63%

 The above chart shows that there is good potential market is there for Airtel
services. Because the most of the existing customer having plan to take new
connection to their existing business. The data shows around 63 percentage of
people interested in taking new tele service connections for their own premises
only. It means there is a good opportunity is there to Airtel services to capture
the existing market.
 And most of the existing customer having preferred to take 2 more new
connections and few of them having planned to go for one more connections.
 And 40 percent of the customer having data about their friends, relatives and
neighbors those who are looking for new STD and CCB connections.
 And many of them initially prefer to go for one and two connections and no
one interested to go for three and four connections.

M P Birla Institute of Management 44

Statistical Test

KOLMOGOROV SMIRNOV TEST

This test is appropriate when the data are at least ordinal and the research
situation calls for a comparison of an observed sample distribution with a theoretical
distribution. Under these conditions the KOLMOGOROV SMIRNOV (KS) one
sample test is more powerful than the Chi-square test and can be used for small
samples when the Chi square test cannot. The KS is a test of goodness of fit in which
we specify the Cumulative frequency distribution that would occur under the
theoretical distribution and compare that with the observed Cumulative frequency
distribution. The theoretical distribution represent our expectation under Ho. we
determine the point of great divergence between the observed and theoretical
distribution and identify this value as D (maximum deviation). From a table of critical
values for D we determine whether such a large divergence is likely o the basis of
random sampling variations from the theoretical distribution. The value for D is
calculated as follows:
D=maximum |Fo(x)-Ft(x)|
In which
Fo(x) = the observed cumulative frequency distribution of a random sample of
n observation. Where X is any possible score, Fo(x)= k/n, where k=the number of
observation equal to or less than X.
Ft(X)= the theoretical frequency distribution under Ho.
The testing process is as follows:

M P Birla Institute of Management 45

Null hypothesis: Ho: = There is a significant quality service provide by
the Airtel STD and CCB connection services.
Alternative hypothesis: H1: = There is no such significant quality service provide by
the Airtel STD and CCB connection services..

Characteristic ServiceRating between campaigning

other Services
No.in each Character 70 42 48

Fo(x) 70/160 112/160 160/160

Ft(x) 53.3/160 106.6/160 160/160

|Fo(x)-Ft(x)| 16.7/160 5.4/160 0

D calculated 16.7/160 5.4/160 0

=0.1075 =0.03375

D critical value = 0.1075

Conclusion:
D calc is < D cv, so the null hypothesis is accepted. There is a significant quality
service provide by the Airtel STD and CCB connection services.

M P Birla Institute of Management 46

 FINDINGS

1) From the study we find 52% of the Airtel STD and CCB connection users are
the new users. These respondents are got the Airtel subscription from last one year.

2) The study found that 56% of respondent earning income bellows Rs.3000 for
every month and 30% of respondent having telephone turnover between Rs.3000 to
6000. And only 14% of respondent have telephone business turnover above Rs.6000
per month.

3) This study shows 18% of respondents are strongly agreed and 78% are agreed
to the Airtel service executives have well quarries handling ability and knowledge.

4) This study find outs 14% of respondents strongly agreed and 40% of the
respondents agreed to the Airtel service executive are never busy to respond. 32% of
respondents are neutral about this and 12% of respondents disagreed to this and 2% of
respondents having strong disagree to this.

5) This study finds that 38% of respondents are strongly and 36% of respondents
agreed to say that the Airtel service executives pay the individual attention handle the
quarries. 20% of respondent having neutral opinion about it and 6% of respondent
disagreed to this.

6) The study finds that 15% of respondents strongly agreed and 24% of
respondent agreed to say Airtel service is providing error free network. 30 of
respondents having neutral opinion and 21% of respondents disagree , 10% of
respondents strongly disagreed to this.

7) This study finds 20% of respondents were strongly agreed, 48% of

respondents were agreed, 24% of respondents were neutral, about the Airtel
executives are resolving problem very soon. And 8% of respondents are disagreed to
that.

M P Birla Institute of Management 47

8) It find 22% of respondents were strongly agreed, 34% of respondents are
agreed, 36% of respondents are neutral, responses about the Airtel display are very
attractive and 4% of respondents were disagree and 4% of respondents are strongly
disagree to that.

9) The study found that 12% of respondents are very clear about the billing is
easy to understand and 24% of respondents are ok with it and 38% of respondents are
responding understanding of billing is adjustable and 34% of respondents are felt it is
difficult and very difficult to understand..

10) Out of 200 respondents 55% of the subscribers has not at all faced any billing
problems and only 45% of the subscribers had faced the billing problems.

11) The study shows AirTel subscribers are very happy regarding the services of
customer care center. Customer care center is struggling hard to provide all
information in order to serve then better. Out of 200 respondents 92% are very
satisfied with the services and 8% are not satisfied with the services of customer care
center.

12) The customers dial up to customer care center for the following reasons.
 32% customer dial up for billing related enquiries
 52% customers dial up to complaint regarding the network problems and services.
 4% customers dial up to make enquiries regarding product and services
12% customers dial up to make enquiries regarding tariffs and new schemes

13) AirTel subscribers believed that the service of AirTel is good as compare to
other service providers like, BSNL, RELIENCE and TATA INDICOM.
 26% customers strongly agree for providing best service than the others.
 58% of customers agree to the statement that, AirTel services are good compared
to other services.
 10% customers are neutral to express their views regarding best services
provisions.
 4% customers disagree with the above expressed statement.
 2% customers strongly disagree with the above expressed statement.

M P Birla Institute of Management 48

14) Its very proud to state that all the AirTel subscribers are satisfied with AirTel
services and they are enjoying much with the new schemes.
 If any of their friends wants a new connection they proudly suggest having the
AirTel connection.
 This buzz marketing will definitely helps to increase the sales and market share of
AirTel.

15) AirTel customers believed that the service is like this,

 8% customers delighted about the AirTel services.
 34% of customer satisfied about the AirTel services.
 54% of customers are neutral about the AirTel services.
 4% of customers are dissatisfied with AirTel services.

16) The Air Tel is having good potentiality in Banglore South because 96% of the
respondents suggesting the AirTel service connection for their friends , elatives and
63% of existing customer are going for new connections.

M P Birla Institute of Management 49

CONCLUSIONS

AirTel is the first private company to come up in landline telecom business

and already having more than 5, 00,000 customers in its credit.

AirTel Company has got a good brand image in the market.

Its Internet connection given to residential users by this company is very

economical compared to its competitors.

Its STD/ISD, PCO business is very profitable business in the market.

People prefer AirTel mainly because of price effectiveness and other prize
benefits they get apart from the services render.

Apart from billing problem Air Tel’s service is excellent one in case of
complaint handling, quick connectivity, fault repairing and good networking.

It has provided various payment options in terms of bill payment, which is

very helpful to customers.

AirTel is also giving a very competitive profit margin for STD/ISD, PCO
owners also.

Market potentiality is very high as more than 30% subscribers of competitor’s

are interested to shift to AirTel.

M P Birla Institute of Management 50

SUGGESTIONS AND RECOMMENDATIONS

As it is clear from the respondent’s feedback that few respondents consider the
billing system should be improved, prompt and make the billing system easy
understand the customer to improve its service quality in billing system.

Few of the respondents were facing the network problems such as call
jumping. So AirTel should improve quality of network service to maintain
and build the goodwill among customers.

Company should device appropriate pricing strategy by improving

commission rate to generate good business STD/CCB connections holders to
increase their turnover and give a good quality services with competitive price.

Most of the respondents are feared with the mobile STD tariffs provided by
different service providers. So, to minimize this adverse impact. AirTel should
come up with new schemes and offers to build the confidence for its service.

Company should try to build up the confidence among the customers as for as
competition from various telecom service providers/operators especially in
connection to mobile/STD tariffs.

The company should plan appropriate promotion strategy to generate

awareness about service guarantee scheme among STD/CCB connection
holders.

M P Birla Institute of Management 51

 Questionnaire
Dear Customer,
We, AirTel, are constantly looking to improve the quality of services, as a
valued customer of AirTel how do you rate our services, for that we need certain
information which will help us to serve you better.
Thank you,
1. Name: ……………………………………………………………………………….
2. Business: ………………………………………………………………………….
3.AirTel STD Number: ……………………………………………………………….
4. How many connections you have?
a. Only one b. Two
c. Three d. More than 3
5. From how many years you are associated with this business?
a. 1 – 6 months b. 6 months – 1 year
c. 1 – 2 year d. More than 2 years
6. How much average business you make from this connection?
a. > 3000 b. 3000 – 6000
c. 6000 – 12000 d. more than 12000
7. Please tick the box that indicates how strongly you agree or disagree with each of
the following statements about the services of AirTel & with respect to Company’s
sales executives.
Statements Strongly Agree Neutral Disagree Strongly
Agree disagree
a. They have knowledge to
Answer my quarries.
b. They are never busy to
respond my requests
c.They pay individual
customer attention
d. our network is best &
its error free
e. The problems get
resolved very soon

M P Birla Institute of Management 52

8. Do you have any competition lines?
a. Yes b. No
9. If yes, who is that service provider and how much average business you make from
this connection.
Service Provider Telephone Number Amount
a. BSNL

b. Reliance

c. Tata Indicom

10. Do you know about our Service guarantee scheme?

a. Yes b. No
11. Please rate the billing system on the following attributes,
a. Easy to understand
a. Very clear b. Ok c. Adjustable d. Difficult
e. Very difficult
b. Accuracy
a. Totally accurate b. Highly Accurate c. Some what
d. Not exactly e. Not very accurate.
c. Regularity
a. Always b. Sometimes c. Delayed by a week
d. Not regular e. Never regular
12. How often you have faced billing problems?
a. Each billing b. Some billing c. Not at all
13. How long did it take to clear queries?
a. Immediate b. About a week c. Not clarified
14. Is our customer care center provides you all the needed information.
a. Yes b. No
15. For what reason you dial to our Customer care office
a. Billing related enquiries b. To complaint
c. Product related enquiries d. Tariff related enquiries

M P Birla Institute of Management 53

16. AirTel services are good compared to others
a. Strongly agree b. Agree c. Neutral
d. Disagree e. Strongly Disagree
17. How you rate about AirTel services, I feel.
a. Delighted b. Pleased c. Satisfied
d. Un-satisfied e. Terrible
18. If any of your friend wants a new connection then which service provider you
will suggest for him.
a. AirTel b. BSNL c. Reliance d. Tata Indicom
19. Would you like to have any new telephone connections at tour premises?
Yes No
20. If yes, how many connections will you prefer?
a. One b. Two c. Three d. Four e. Four +
21. Which service provider will you select?
a. AirTel b. BSNL c. Reliance d. Tata Indicom
22. Do you know any of your relatives, friends, neighbors and any others looking for
new STD and PCO connections?
Yes No
(If NO please goto Q No
23. If yes, please provide the following details
a. Name of the person…………………………………………………….
b. Contact No……………………………………………………………...
24. If they ask your advise, which service provider will you suggest for them?
a. AirTel b. BSNL c. Reliance d. Tata Indicom
25. How many new connection they may go for?
a. One b. Two c. Three d. Four e. Four +
26. When are they going to have the new connections?
a. within 15 days
b. 15 to 30 days
c. 30 to 45 days
d. 45 to 60 days
27. State all your suggestions to serve you better
__________________________________________________________________
__________________________________________________________________

M P Birla Institute of Management 54

 BIBILIOGRAPHY

Magazines and newspapers

www.AirTel.com
www.bhartiworld.com
(The company information is collected from these web sites)

Marketing Management by Philip Kotler.

Marketing Research by Cooper and Schindler.
Marketing Research by Donald Dull and Tull Hawkins
Principles of Management by Philip Kotler & Garry Armstrong.

M P Birla Institute of Management 55