CONSUMER BEHAVIOR AND ATTITUDE TOWARDS

THE CELLULAR SERVICES.

(SESSION 2010-2013)

SUBMITTED TO:
.
Miss. SEEMA
.
.

SUBMITTED BY:
HARJEET SINGH
BBA (CAM)
nd
2 (4th Sem.) . .
08512401910

DELHI INSTITUTE OF RURAL DEVELOPMENT

NANGLI POONA DELHI-110042
(AFFILIATED BY GURU GOBIND SINGH INDRAPRASHTHA UNIVERSITY)

Contents
1

Chapter No.
No.

Page

Chapter 1--------------------------------------------------------------------------------------------1-5
INTRODUCTION TO CONSUMER BEHAVIOR AND ATTITUDE TOWARDS THE
CELLULAR SERVICES.
Chapter 2------------------------------------------------------------------------------------------06-26
Company Profile
Chapter 3------------------------------------------------------------------------------------------27-45
Research Methodology
Objectives----------------------------------------------------------------------------------------------28
Main steps involved in research-----------------------------------------------------------------28-30
Research Design-----------------------------------------------------------------------------------31-33
Sampling Methods--------------------------------------------------------------------------------34-45
Chapter 4------------------------------------------------------------------------------------------46-81
Analysis and Findings
Chapter 5------------------------------------------------------------------------------------------82-85
Conclusions & Recommendations
Chapter 6------------------------------------------------------------------------------------------86-87
Limitations
Chapter 7------------------------------------------------------------------------------------------88-89
Bibliography

Chapter 8------------------------------------------------------------------------------------------90-99
2

Annexure
Questionnaire--------------------------------------------------------------------------------------91-95
List of People contacted--------------------------------------------------------------------------96-99

CHAPTER-1
INTRODUCTION TO
CONSUMER BEHAVIOR
AND
ATTITUDE TOWARDS
THE CELLULAR
SERVICES

INTRODUCTION TO CONSUMER BEHAVIOR AND

ATTITUDE TOWARDS THE CELLULAR SERVICES

The deregulation in the INDIAN telecommunication markets since the beginning of the
1997s has brought about significant changes in the communication industry. The mobile
telephone market has changed dramatically over the past 5-6 years in INDIA.
Mobiles have become so popular that many people use their handset as their only phone and
rarely use a landline.
The study of consumer behaviour focuses on how individuals make decisions to spend their
available resources (time, money, efforts) on consumption related items. That includes what
they buy, why they buy it, when they buy it, where they buy it, how
often they buy it, and how often they use it.
There are a number of reasons for researching for consumer behavior like segmentation,
target market selection, positioning, and product/service decision, pricing decision,
distribution and promotion decision.
Model of consumer decision making process is helpful to understand the consumer
behaviour. It shows how the external and internal factors influence the consumer attitude
formation and attitude change. The model reflects cognitive (or problem solving) consumer
and, to some degree emotional consumer.
An attitude is a learned predisposition to behave in a consistently favourable or
unfavourable way with respect to a given object.
This study will identify the gap between consumer attitude and behaviour towards the cellular
services in INDIA.

PROBLEM STATEMENT
5

The company has more opportunity to capture the market. The cellular service industry is
more competitive then ever before.
There is a need to identify the gap between consumer behavior, attitude and company
practice. The findings of this study will be important to understand the consumer attitude,
habits, opinion and their beliefs towards the product, and the attitude towards
the company marketing efforts.
The result of the study will help to make a suitable recommendation for cover the gap
between consumer behavior and the company marketing efforts.
OBJECTIVES OF THE PROPOSED STUDY
Objective is to study the consumer attitude & behavior towards cellular service. This project
report has been formulated with specialty of behavioral analysis of consumer. By throwing
light on their need for communication, effort has been put on deriving there response towards
communication and its various standards. The aim of project has been to sort out basic things
that consumer seeks while asking new Telecom connection and promising things of Telecom
that makes them reliable consumer.
Since, I have done my internship in Delhi I have given my best in analysis and interpretation
to study chronological order working pattern of Telecom industry by working with ZONAL
and AREA sales manager, super-distributor, and retailer. The project title, which I have taken,
is Study of Consumer behavior and attitude towards cellular services with reference to
AIRCEL the objectives of study are:PRIMARY OBJECTIVE

To understand the consumer behavior and attitude regarding cellular market.

Identify the Potential customer in the corporate sector.

SECONDARY OBJECTIVE
6

To identify the action of the competition in the market.

Explore and crack new accounts.

NEED AND SIGNIFICANCE OF STUDY

Understanding consumer behavior and knowing customers is never simple. Customers may
say one thing but do another. They may not be in touch with their deeper motivations.
Consumers have more power then ever before.
Consumers have access more information than ever before.
There are a number of reasons for researching of consumer behaviour like segmentation,
target market selection, positioning, and product/service decision, pricing decision,
distribution and promotion decision.
The main significance and need of this research is to identify the consumers attitude &
behaviour towards Cellular services and analysis. The findings of this study will be helpful to
understand the consumer attitude and behaviour. According to the consumer attitude and their
behaviour company can make marketing strategy for attracting the larger customers for
future.

Scope of study
In recent year, adoption of mobile phone has been exceptionally rapid in many part of the
world and especially in INDIA; mobile phones are almost as common as wrist watch. The
INDIAN telecommunications market is characterized by a small number of large players and
a much more sizeable number of small companies. The mobile industry has become more
competitive.
It is necessary to identify the consumer attitude & behavior towards product and what do they
want or needed.
The study will be focused on the consumer attitude & behavior towards cellular services. The
findings of the research will be helpful to identifying the consumer attitude, behavior, habits
to buy a mobile phone and company practicing. This will be vital to
identify the gap between consumer attitude and company practicing. The result of the study
will be important to make a marketing strategy for the future customers to fulfill the company
objective.

CHAPTER-3
COMPANY
PROFILE

COMPANY PROFILE

On 29th April 2005, Maxis acquired 51% of PT Natrindo Telepon Seluler. Maxis is currently
in the middle of rolling out a Java wide network to establish the company as a national
operator. The initial launch phase encompasses 1,300 BTS, providing both 2G and 3G
services. NTS expects to have up to 480 employees by launch date and to increase
significantly upon launching. Maxis in India Maxis completed the acquisition of a 74% stake
in Aircel on March 21, 2006. Currently, Aircel has operations in 9 of the 23-telecom circles of
India - Chennai, Tamil Nadu, West Bengal, Orissa, Assam, North East, Jammu and Kashmir,
Himachal Pradesh and Delhi. Aircel launched its services in Delhi and
Himachal Pradesh in December 2006 and also recently received the licenses to operate in the
remaining 14- telecom circles of India giving it the ability to become a pan-India player.
Maxis expansion into Indonesia and India is another milestone in our aspiration to be the
regional communications leader of choice. The acquisition of a 51% stake in PT Natrindo
Telepon Seluler (NTS), Indonesia and a 74% equity interest in Aircel, India provides new
growth opportunities for Maxis. These acquisitions give Maxis a strong foothold in two of the
worlds most attractive high-growth, low-penetration markets. This marks the beginning of
the new world of Maxis a world beyond voice, and beyond borders. MAP Maxis in
Indonesia On 29th April 2005, Maxis acquired 51% of PT Natrindo Telepon Seluler. Maxis is
currently in the middle of rolling out a Java wide network to establish the company as a
national operator. The initial launch phase encompasses 1,300 BTS, providing both 2G and
3G services. NTS expects to have up to 480 employees by launch date and to increase
significantly upon launching. Maxis in India Maxis completed the acquisition of a 74% stake
in Aircel on March 21, 2006. Currently, Aircel has operations in 9 of the 23 telecom circles of
India - Chennai, Tamil Nadu, West Bengal, Orissa, Assam, North East, Jammu and Kashmir,
10

Himachal Pradesh and Delhi. Aircel launched its services in Delhi and Himachal Pradesh in
December 2006 and also recently received the licenses to operate in the remaining 14 telecom
circles of India giving it the ability to become a pan- India player. Aircel expects to
aggressively grow its subscriber base in India and is developing a broad range of new
propositions for its customers from branding, to increased network coverage, to innovative
product and service offerings, to refreshing customer experience. As of 31st December 2006,
Aircel serves more than 4.5 million subscribers with a network comprising of almost 4,000
BTS. Aircel continues to be the market leader in Tamil Nadu and Chennai circle. Aircels
network provides 2G and GPRS services, and is EDGE capable. Aircel is also currently in the
process of conducting 3G Trials across different cities in India. In addition, Aircel is the first
cellular operator in India to launch wireless Internet services using WiMAX technology. It
aims to immediately extend its WiMax coverage to over 20 cities to serve enterprise
broadband customers. Over the next few quarters, India is expected to add new subscribers at
the rate of 5 to 6 million per month. India offers huge opportunities for Aircel given the
current low mobile penetrations levels as well as challenges in terms of its geographic spread
and low ARPU levels. Aircel expects to aggressively grow its subscriber base in India and is
developing a broad range of new propositions for its customers from branding, to increased
network coverage, to innovative product and service offerings, to refreshing customer
experience.
As of 31st December 2006, Aircel serves more than 4.5 million subscribers with a network
comprising of almost 4,000 BTS. Aircel continues to be the market leader in Tamil Nadu and
Chennai circle. Aircels network provides 2G and GPRS services, and is EDGE capable.
Aircel is also currently in the process of conducting 3G Trials across different cities in India.
In addition, Aircel is the first cellular operator in India to launch wireless Internet services
using WiMAX technology. It aims to immediately extend its WiMax coverage to over 20
cities to serve enterprise broadband customers. Over the next few quarters, India is expected
to add new subscribers at the rate of 5 to 6 million per month. India offers huge opportunities
for Aircel given the current low mobile penetrations levels as well as challenges in terms of
its geographic spread and low ARPU levels Aircels current and proposed footprint is
illustrated below

11

MISSION STATEMENT : We are conditionally committed to exceeding our customers

expectations. We will provide network and services that are innovative and reliable, allowing
our customers any time anywhere communications. We will attract, develop and retain an
exceptional team of people. We are committed to enhancing the quality of real life in the
community in which we operate. We will meet the financial expectation of our shareholders.
OUR GOALS AND VALUES
CUSTOMERS : our customers are our most valued assets. We will strive to exceed their
expectations at all time by providing them with superior services that embody value,
innovation, quality and care.
PEOPLE : our people are our greatest resources. We will attract, train and retain the best. We
will challenge them to develop their full potential in the context of our company goals.
INTEGRITY : We will maintain and strive for the highest levels of personal and
professional integrity and honesty in all ours dealings. We will keep our promises.
RESPECT : We will treat with respect & dignity all people we deal with.
EXCELLENCE : We are committed to excellence in all what we do. There will be no place
for mediocrity.
WORK : We will promote a work environment that embraces creativity, promotes
empowerment, and encourages team work, innovation, prudent risk taking, honest and open
communication and respectful iconoclasm

12

QUALITY : the hallmark of our internal and external outputs and processes will be quality.
this will pervade every aspect of our functioning.
Subscription Base Of Different Service Provider in Delhi (May- 2009)

Firms marketing efforts

The firms marketing activities are a direct attempt to reach, inform, and persuade consumers
to buy and use its products/services. These activities are product related, promotion, price and
channel of distribution.
Product
Product related activities include new technology, brand name, features, design and
packaging. Brand name effect is the consumers perception of the role that brand name plays
in the decision making process of choosing the most preferred product/services.
According to information integration theory proposed by Bettman et al. (1975) in the context
of product evaluations, consumers assign importance weights and scale values (utilities) to
product attributes for which information is available at the time of decision making, and then
combine these weights and values according to some rule(e.g. adding, averaging) to come up
with an evaluation.
Consumer with low product knowledge might not be able to perform trade off contrasts
among brands because these comparisons are likely to require some minimal level of
knowledge and familiarity about brands .In contrast, consumers with high product category
knowledge might have sufficient familiarity and expertise with the product category to
13

perform inference and interpretation on brands as an enriched quality cue in implementing

customization process.
In the mobile phone market product plays an important role to purchasing the particular
mobile phone. This is actually due to new innovation. So consumers behaviour influenced
toward mobile phone products. Services are also important part for the mobile industry.
Services include price promise, Insurance, exchange offers, and other services like work
mobile abroad. There is also a range of fixed line telephones and other fixed line equipment
such as fax machines. The consumers can opt for payas- you-go or contract payments, as well
as wide choice of 'value packs' which offer bundles of text messages, picture messaging
services or airtime. The company claims that its expert sales staff can help you to select the
best value package depending on how much you use the phone, and how you prefer to pay.
Price
Prices efforts include promotional prices, discount, reduce the price of product/services and
competitor pricing. Commodity prices in the market play a relevant role in consumer decision
making; they influence what, when, where and how much consumer buy. Price promotion by
a retailer for a particular brand might adversely affect the sales level of competing retailer if
consumer actively switch store to take advantage of the deal. Consumer who perceive prices
more accurately are the ones who place a higher degree of importance on them its investigate
two potential subscribers decision, using the graphic device of a price/acceptance and a
charge/acceptance function towards mobile.
The study identified that most customers, who are willing to swap providers, will make their
decision on price first. Consumer knowledge of price plays an important role in pricing
management since it not only determines how prices are perceived and valued but also
influenced consumers purchase decision. Price is important factor which influence the
customer attitude towards mobile phone. At the point in time of purchase the customer faces,
first of all, initial financial, the purchase price for the set and the fixed charges for the
connection to the network.

14

Another aspect at the time of purchase is the consideration of the use charges, such as the
price per call minute.There are very competitive price in the market. Most of the mobile
phone companies are offering different network.
Promotion
Advertisement, sales promotion, public relations and direct marketing are the promotional
tools.
Sales promotion consists of a wide variety of short term tactical promotional tools aimed at
generating a desired response from customers. Sales promotion includes tools for consumer
promotion (sample, coupons, cash refund, offers, prices off, premium, prizes, patronage
rewards free trials, warranty, tie in promotions, cross promotions, point of purchase displays
and demonstration); trade promotion ( price off, advertising and display allowance, and free
goods).
Public relation involves a variety of programs designed to promote a companys image or its
individual product. The main tools of PR are publications, events, news, speeches,
publicservices activities, and identity media.
Direct marketing is an interactive marketing system that uses one or more media to affect a
measurable response or transaction at any location. Electronic marketing is a part of direct
marketing. Its media include television, press and radio advertisements.

15

Telecom Operator wise Market Share [May 2012]

While Bharti is way ahead with close 20% market share in India, Reliance (16.58%) and
Vodafone (16.41) are having a close battle. Reliance currently has 154 million subscribers as
compared to 152.5 million of Vodafone. Uninor, who is one of the late entrants in Indian
Telecom market now has over 45 million subscribers and accounts for close to 5 percent of
Indian mobile market share.

India Mobile Subscriber base reaches 929.4 Mln

Although, the growth in mobile subscriber base has slowed down considerably over past few
months, May 2012 saw a healthy growth after dismal April figures. According to the TRAI
16

report for May 2012, India added 8.35 million new subscribers taking the overall mobile
subscriber base in India to 929.37 million. Here is a look at monthly subscriber additions
since March 2011.

Indian Telecom Subscription Highlights Data May 2012

- 8.35 mln new subscribers added taking total tally to 929.37 mln
- Rural India (5.81 mln) added more than double the subscribers as compared to Urban India
(2.53 mln). Rural monthly growth rate was 1.78% as compared to 0.43% of Urban India.
- Urban Teledensity stands at 162.57 as compared to rural density of 39.35
- Rural mobile subscriber share was 64.24%
- 4.27 million new Mobile portability requests were made in month of May taking the total
tally of MNP requests since launch to 50.16 mln
- Out of total 929.37 million, 68.33 mln were active mobile subscribers in month of May.
- 3.6 lakh new Broadband subscribers were added in month of May taking total tally to 1.43
crore.

17

- Delhi (239.91) has 4 times the teledensity as compared to the National average (79.28).
Lowest teledensity was registered in Assam (47.7)
- India has a total telecom subscriber base (wireless+wireline) of 960.90 mln.
Operator wise Mobile Subscriber additions [May 12]

Bharti Airtel added 2 million new subscribers to its kitty accounting for 24% of all the new
additions in May. Their total base now stands at 185 million. Idea added 17.6 million taking
their tally to 116 million by end of May. After dismal last few months, where Tata was
continuously loosing subscribers, they managed to add 307k subscriber. Tatas total
subscriber base now stands at 81.5 million. The 2 PSU operators BSNL and MTNL were the
only operators who witnessed a negative growth in May 2012.

Top 10 mobile Countries:

18

CELLULAR NEWS:
19

Aircel signs tower sharing dear with BSNL:

Aircel has always emphasized upon building its brand satisfactory and reliable among
customer. Therefore, India's Aircel has announced a 10-year passive infrastructure sharing
agreement with state owned operator, Bharat Sanchar Nigam Ltd (BSNL). Aircel, which
already has around 32,000 base stations, says that it will now have access to approximately
45,000 BSNL towers across all its licensed circles. The financial terms of the agreement were
not disclosed.
"Aircel will now have access to strategically located sites across

BSNL's 21 circles

(excluding Mumbai and Delhi). Leveraging BSNL's passive infrastructure will help Aircel
meet its aggressive network roll out plans in addition to reducing operational cost," Aircel
Chief Operating Officer Gurdeep Singh said in a statement.
Kuldeep Goyal, CMD, BSNL added, "We are happy to partner with Aircel. BSNL has a
strong nationwide coverage and offers the best value proposition in the Indian telecom
market. Our objective is to provide quality and reliable service and thereby increase our
partner's confidence".
MOBILE WORLD
Aircel expanding its market base:
Figures from the Mobile World analysts report that Aircel had just under 22 million active
subscribers at the end of June.
Aircel is a joint venture between Malaysia's Maxis Communications (74%) and India's
Apollo Hospital Enterprise (26%).

INDIA INFOLINE
20

Aircel Leader of tomorrow:

Aircel, the market leader in Chennai, Tamil Nadu, North East and Assam Telecom Circles,
with more than 4.2mn customers. Aircel has announced the launch of its GSM services in
Delhi. This is the ninth circle across India in which Aircel will be providing their mobile
services and the seventh in North & East India.
This raises the competition for the existing companies. Aircel has decided to launch about
10,000 retail outlets all over Delhi to provide better service to its customers. Now, whether
this succeeds or not in its aim, will be said only by time.
"Aircel has obtained 14 new licenses to roll out its GSM cellular services besides getting the
license to provide International Long Distance (ILD) and National Long Distance (NLD)
telephony services" said Jagdish Kini, Group Chief Executive Officer, Aircel.
He further added, "With these new licenses, Aircel is poised to transform itself into a panIndia operator". Commenting on Delhi launch Kini said, "Delhi Telecom Circle with 5 %
penetration it offers Aircel an excellent opportunity to launch its growth plans in India."
MOBILE INDUSTRY IN INDIA
History of Indian Telecommunications
Started in 1851 when the first operational land lines were laid by the government near
Calcutta (seat of British power). Telephone services were introduced in India in 1881. In
1883 telephone
services were merged with the postal system. Indian Radio Telegraph Company (IRT) was
formed in 1923. After independence in 1947, all the foreign telecommunication companies
were nationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the
government's Ministry of Communications. Telecom sector was considered as a strategic
service and the government considered it best to bring under state's control.
The first wind of reforms in telecommunications sector began to flow in 1980s when the
private sector was allowed in telecommunications equipment manufacturing. In 1985,
Department of Telecommunications (DOT) was established. It was an exclusive provider of
21

domestic and long-distance service that would be its own regulator (separate from the postal
system). In 1986, two wholly government-owned companies were created: the Videsh
Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar
Telephone Nigam Limited (MTNL) for service in metropolitan areas.
In 1990s, telecommunications sector benefited from the general opening up of the economy.
Also, examples of telecom revolution in many other countries, which resulted in better
quality of
service and lower tariffs, led Indian policy makers to initiate a change process finally
resulting in opening up of telecom services sector for the private sector. National Telecom
Policy (NTP) 1994 was the first attempt to give a comprehensive roadmap for the Indian
telecommunications sector. In 1997, Telecom Regulatory Authority of India (TRAI) was
created. TRAI was formed to act as a regulator to facilitate the growth of the telecom sector.
New National Telecom Policy was adopted in 1999 and cellular services were also launched
in the same year.
Telecommunication sector in India can be divided into two segments: Fixed Service Provider
(FSPs), and Cellular Services. Fixed line services consist of basic services, national or
domestic
long distance and international long distance services. The state operators (BSNL and
MTNL), account for almost 90 per cent of revenues from basic services. Private sector
services are presently available in selective urban areas, and collectively account for less than
5 per cent of subscriptions. However, private services focus on the business/corporate sector,
and offer reliable, high- end services, such as leased lines, ISDN, closed user group and
videoconferencing.
Cellular services can be further divided into two categories: Global System for Mobile
Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector is
dominated by Airtel, Vodfone-Hutch, Idea Cellular and Aircel, while the CDMA sector is
dominated by Reliance and Tata Indicom. Opening up of international and domestic long
distance telephony services are the major growth drivers for cellular industry. Cellular
operators
22

get substantial revenue from these services, and compensate them for reduction in tariffs on
airtime, which along with rental was the main source of revenue. The reduction in tariffs for
airtime, national long distance, international long distance, and handset prices has driven
demand.
Issues and Challenges of telecom industry
There are various issues surrounding the telecom Industry which pose challenges for the
Industry. These issues arise out of various policy announcements by the regulator which has
resulted in increased competition between the players? If we take a closer look at the issues
and challenges , a majority of them revolve around the most important resource in the
telecom Industry- SPECTRUM. Spectrum is a range of electromagnetic radio frequencies
used for transmission of voice, data and images.
Telecom operators send and receive frequencies to enable communication between two
phones. Enhancement of subscriber criteria for allocation of additional 2G spectrum the
controversy began when TRAI and DOTs technical advisory board rose the bar on the
minimum subscriber norms for operators to qualify for additional spectrum. The new
subscriber norms were around
three times higher than the existing ones. This move was challenged by GSM operators in the
telecom tribunal. DoT then referred the matter to its technical arm, Telecom Engineering
Centre (TEC), which in its report recommended that the allocation norms should be hiked
between 2-15 times depending on the circle. The Cellular Operators Association Of India, the
body
representing all GSM players, said that it would fle yet another petition with the telecom
tribunal challenging the TEC report. Access licence made technology neutral the Govt also
permitted
existing universal access service licencees to offer wireless services using either GSM or
CDMA technology. This decision paved way for existing CDMA operators to provide GSMbased
services and vice-versa, subject to the availability of spectrum and payment of the prescribed
fees. 3G spectrum auction to be open to all in another move, the government announced that
3G
23

spectrum would be auctioned, which would be open to all. This means that both existing
operators and new entrants, whether owned by domestic entrepreneurs or foreign companies
such as AT&T and Deutsche Telekom, who currently do not have presence in India, would be
eligible to bid for 3G spectrum. This view is in contradiction with the Bharti Airtel Ltd and
others we expect the mobile subscriber base for the industry to reach 366 mn by 2012 from
166 mn as on 2007 Telecom Regulatory Authority of Indias (TRAI) recommendation of
allocating 3G spectrum only to existing service licencees. Mobile Number Portability (MNP)
from last quarter of 2008 furthermore, to reduce entry barriers and increase competition, the
Govt. has decided to implement Mobile Number Portability (MNP) in a phased manner. MNP
would give subscribers the freedom to change their existing wireless operator while retaining
the same number. To begin with, MNP would be implemented in the four metros of Mumbai,
Chennai, Delhi, and Kolkatta during the last quarter of 2008.
Threat from satellite telephony:
A satellite telephone is a mobile phone that communicates directly with orbiting
communications satellites. Depending on the architecture of a particular system, coverage
may include the entire Earth, or only specifc regions. These satellite phones provide
worldwide connectivity on a single number. The largest users of satellite phones in India as
well as worldwide, till date, are the government and defense forces. However these phones
can be used only after the No Objection Certifcate (NOC) is issued by DOT. If cost of these
handsets reduces, then they may pose a threat.
Classification of Telecommunication services:

Basic services
Cellular services
Internet Service Provider (ISP)

The telecom commission was set up by the government of INDIA& notification dated 11
Apirl 1989 with admistrative & financial power of government deal with various aspect of
telecommunication. The entry of private sector in the provision of telecom service a need was
full to have an independent regulatory body the above requirement was indicated in the
guideline issue for entry of private sector in basic telecom service. In 1997 telecom regulation
24

act India was established in pursuance which was act of parliaments to regulate the service or
it amended by act 2000. Mobiles have become so popular that many people use their handset
as their only phone and rarely use a landline. The de regulation in the INDIA
telecommunication markets since the beginning of the 1997s has brought about significant
changes in the communication industry. Price competition and newly created services the
telecommunication industry has become the largest industry. In recent year, adoption of
mobile phone has been exceptionally rapid in many part of the world and especially in
INDIA; mobile phones are Almost as common as wrist watch

MAJOR COMPETITOR
AIRTEL
Bharti Airtel formerly known as Bharti Tele-Ventures Limited (BTVL) is among India's
largest mobile phone and Fixed Network operators. With more than 60 million subscriptions
as of 13th February 2008. It offers its mobile services under the Airtel brand and is headed by
Sunil Mittal. The company also provides telephone services and Internet access over DSL in
14 circles.
The company complements its mobile, broadband & telephone 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-toend data and enterprise services to the corporate customers
by leveraging its nationwide fiber optic backbone, last mile connectivity in fixed-line and
mobile circles, VSATs, ISP and international bandwidth access through the gateways and
landing station.
Airtel is the largest cellular service provider in India in terms of number of subscribers.
Bharti Airtel owns the Airtel brand and provides the following services under the brand name
Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services (Fixed
line, Internet Connectivity (DSL) and Leased Line), Long Distance Services and Enterprise
Services

(Telecommunications

Consulting

for

corporates).

Leading

international

telecommunication companies such as Vodafone and SingTel held partial stakes in Bharti
Airtel.
25

IDEA
Idea Cellular is a part of Aditya Birla Nuvo, a flagship company of the Aditya Birla Group. It
is a wireless telephony company operating in various states in India. It initially started in
1995 as a joint venture among the Tatas, Aditya Birla Group and AT&T by merging "'Wings
Cellular'" operating in Madhya Pradesh, UP West, Rajasthan and Tata Cellular as well as
Birla AT&T Communications.Idea is a leading cellular operator, with a subscriber base of
over seven million across the country in its eight circle operation. It controls a portfolio of
India's most attractive and mainly contiguous properties including the 11 states of
Maharashtra (excluding Mumbai), Goa, Gujarat, Andhra Pradesh, Madhya Pradesh,
Chattisgarh, Uttar Pradesh (West), Uttaranchal, Haryana, Kerala and Delhi (inclusive of
NCR).
Having operations in four of the five largest cellular circles in India, Idea is the market leader
in the Maharashtra and Goa; Uttar Pradesh (West) and Madhya Pradesh and Chattisgarh
circles in terms of number of subscribers. Idea's Delhi circle is also the
fastest-growing fourth operator in the country, which is an achievement in itself and
showcases customer confidence of a high degree. Idea's footprint currently covers
approximately 45 per cent of India's population and over 50 per cent of the potential telecom
market. Idea covers over 1000 towns along with a total highway connectivity of over 10,000
kilometres. Today, there are over 350 direct customer service outlets and a well-entrenched
network of over 48,000 retailers and dealers across the country. Each circle with its own
dedicated call centre and a single call resolution approach towards the customer is a unique
effort provided by any operator.

26

Customer service and innovation are the drivers of this cellular brand. Idea was the first
company in the country to launch GPRS in November 2002. It showcased EDGE (Enhanced
Data Rates for GSM Evolution) in Delhi, in July 2004. With EDGE (a 3G technology),
subscribers can enjoy live television with a data download rate of over 160 kbps. GPRS is
available on all its networks, for both pre-paid and post-paid customers. Idea subscribers also
have a richer experience while watching movie previews, multimedia messages with video
attachments, webinfotainment, high-speed video downloads, java game downloads and other
Internet-based multi-media experiences on their EDGEenabled mobile phones.

BSNL (Bharat Sanchar Nigam Ltd)

Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest
Telecommunications Company providing comprehensive range of telecom services in India:
Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN,
VSAT, VoIP services, IN Services etc. Within a span of five years it has become one of the
largest public sector unit in India. BSNL has installed Quality Telecom Network in the
country and now focusing on improving it, expanding the network, introducing new telecom
27

services with ICT applications in villages and wining customer's confidence. Today, it has
about 47.3 million line basic telephone capacity, 4 million WLL capacity, 20.1 Million
GSM Capacity, more than 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations,
480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting 602
Districts, 7330 cities/towns and 5.5 Lakhs villages.
BSNL is the only service provider, making focused efforts and planned initiatives to bridge
the Rural-Urban Digital Divide ICT sector. In fact there is no telecom operator in the country
to beat its reach with its wide network giving services in every nook & corner of country and
operates across India except Delhi & Mumbai. Whether it is inaccessible areas of Siachen
glacier and Northeastern region of the country. BSNL serves its customers with its wide
bouquet of telecom services. BSNL is numero uno operator of India in all services in its
license area. The company offers vide ranging & most transparent tariff schemes designed to
suite every customer.
BSNL cellular service, CellOne, has more than 17.8 million cellular customers, garnering 24
percent of all mobile users as its subscribers. That means that almost every fourth mobile user
in the country has a BSNL connection. In basic services, BSNL is miles ahead of its rivals,
with 35.1 million Basic Phone subscribers i.e. 85 per cent share of the subscriber base and
percent share in revenue terms.BSNL has more than 2.5 million WLL subscribers and 2.5
million Internet Customers who access Internet through various modes viz. Dial-up, Leased
Line, DIAS, Account Less Internet(CLI). BSNL has been adjudged as the NUMBER ONE
ISP in the country. BSNL has set up a world class multi-gigabit, multi-protocol convergent IP
infrastructure that provides convergent services like voice, data and video through the same
Backbone and Broadband Access Network. At present there are 0.6 million Data
Onebroadband customers. The company has vast experience in Planning, Installation,
network integration and Maintenance of Switching & Transmission Networks and also has a
world class ISO 9000 certified Telecom Training Institute.

28

VODAFONE
Vodafone Essar is the Indian subsidiary of Vodafone Group and commenced operations in
1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. The
company now has operations across the country with over 74.08 million customers**. Over
the years, Vodafone Essar, under the Hutch brand, has been named the Most Respected
Telecom Company, the Best Mobile Service in the country and the Most Creative and
Most Effective Advertiser of the Year. Vodafone Group is the worlds leading international
mobile communications corporation. It currently has equity interests in 27 countries across 5
continents and 40 partner networks with over 303 million proportionate customers
worldwide. The Essar Group is Vodafones principal partner in India. The Essar Group is a
diversified business corporation with a balanced portfolio of assets in the manufacturing and
services sectors of Steel, Energy, Power, Communications, Shipping Ports & Logistics, and
Projects. Essar employs more than 50,000 people across offices in Asia, Africa, Europe and
the Americas.

RELIANCE
The Late Dhirubhai Ambani dreamt of a digital India an India mwhere the common man
would have access to affordable means of information and communication. Dhirubhai, who
singlehandedly built Indias largest private sector company virtually from scratch, had stated
as early as 1999: Make the tools of information and communication available to people at an
affordable cost. They will overcome the handicaps of illiteracy and lack of mobility.
It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm)
started laying 60,000 route kilometres of a pan-India fibre optic backbone. This backbone
was commissioned on 28 December 2002, the auspicious occasion of Dhirubhais 70th
birthday, though sadly after his unexpected demise on 6 July 2002.
Reliance Communications has a reliable, high-capacity, integrated (both wireless and
wireline) and convergent (voice, data and video) digital network. It is capable of delivering a
range of services spanning the entire infocomm (information and communication) value
chain, including infrastructure and services for enterprises as well as individuals,
applications, and consulting.
29

CHAPTER-3
RESEARCH
METHODOLOGY

30

Research Methodology

We will be conducting a PRIMARY research for our study. For which we will be designing
Questionnaires directed towards customers, which will give us the opinion of the customers
thus market potential of the product. Next step would be to analyze the data thus acquired.
Objective

Objective is to study the consumer attitude & behavior towards cellular service. This project
report has been formulated with specialty of behavioral analysis of consumer. By throwing
light on their need for communication, effort has been put on deriving there response towards
communication and its various standards. The aim of project has been to sort out basic things
that consumer seeks while asking new Telecom connection and promising things of Telecom
that makes them reliable consumer.

Main Steps Involved Research

Defining the Problem to be tackled and identifying the market research problem involved in
the task.
1)
2)
3)
4)
5)
6)
7)
8)

Define the problem and its objectives.

Identify the problem.
Determine the information needed.
Determine the sources of information.
Decide research methods.
Tabulate, Analyze and interpret the data.
Prepare research report.
Follow-up the study.

1) Define the problem and its objectives: -This includes an effective job in planning and
designing a research project that will provide the needed information. It also includes the
establishment of a general framework of major marketing elements such as the industry
elements, competitive elements, marketing elements and company elements.

31

2) Identify the problem: -Identifying the problem involves getting acquainted with the
company, its business its products and market environment, advertising by means of library
consultation and extensive interviewing of companys officials.
3) Determining the specific Information needed :-In general the producer, the
manufacturer, the whole seller and the retailer try to find out four things namely :(1) What to sell
(2) When to sell
(3) Where to sell
(4) How to sell
4) Determine the sources of information:(a) Primary Data: -Primary data are those which are gathered specially for the project at
hand, directly e.g. through questionnaires &interviews. Primary data sources include
company salesman, middleman, consumers, buyers, trade associations executives & other
businessman & even competitors.
(b) Secondary Data: -These are generally published sources, which have been collected
originally for some other purpose. Source are internal company records, government
publication, reports & publication, reports &journals, trade, professional and business
associations publications & reports.
4) Decide Research methods for collecting data:-If it is found that the secondary data
cannot be of much use collection of primary data become necessary.
Three widely used methods of gathering primary data are
A) Survey
B) Observation
C) Experimentation
A) Survey Method:-In this method, information gathered directly from individual
respondents, either through personal interviews or through mail questionnaires or telephone
interviews.

32

B) Observation Method:-The research data are gathered through observing and recording
their actions in a marketing situation. This technique is highly accurate. It is rather an
expensive technique.
C) Experimental Method:-This method involves carrying out a small scale trial solution to a
problem, while at the same time, attempting to control all factors relevant to the problem. The
main assumption here is that the test conditions are essentially the same as those that will be
encountered later when conclusions derived from the experiment are applied to a broader
marketing area.
D) The Panel Research:-In this technique the same group of respondents is contacted for
more then one occasion; and the information obtained to find out if there has been any in
their taste demand or they want any special quality, color, size, packing in the product.
a) Preparation of questionnaire
b) Presetting of questionnaire
c) Planning of the sample
5) Tabulate, Analysis and Interpret the Data:-The report must give/contain the following
information:a) The title of research
b) The name of the organization for which it has been Conducted
c) The objectives of research
d) The methodology used
e) Organization and the planning of the report
f) A table of contents along with charts and diagrams used in the reports
g) The main report containing the findings
h) Conclusion arrived at end recommendations suggested
i) Appendices (containing questionnaire / forms used sample design, instructions.)
6) Follow-up the study:-The researchers, in the last stage, should follow up this study to find
if his recommendation are being implemented and if not, why

33

RESEARCH DESIGN
RESEARCH PROBLEM

The company has more opportunity to capture the market. The cellular service
industry is more competitive then ever before.

There is a need to identify the gap between consumer behavior, attitude and company
practice. The findings of this study will be important to understand the consumer
attitude, habits, opinion and their beliefs towards the product, and the attitude towards
the company marketing efforts.

The result of the study will help to make a suitable recommendation for cover the gap
between consumer behavior and the company marketing efforts.

Choice of research design alternatives & choice

Despite the difficulty of establishing an entirely satisfactory classification system, it is helpful
to classify marketing research on the basis of the fundamental objectives of the research.
Consideration of the different types, their applicability, their strengths, and their weakness
will help the student to select the type best suited to a specific problem. The two general
types of research are:
EXPLORATORY RESEARCH
Exploratory research seeks to discover new relationship, emphasis on discovery of ideas.
Marketing researches devote a significant portion of their work on exploratory studies when
very little is known about the problem being examined.
a) CONCLUSIVE RESEARCH
Conclusive studies attempts to determine the frequency with which something occurs or the
relationship between two phenomenon. Usually conclusive studies assume certain under
underlying characteristics of the market or have some precise statement of research
questions/hypothesis.

34

RESEARCH INSTRUMENT USED - DETAILS & WHY?

If one wants to know what type of dentifrice people use, what they think of, television
commercials, or why they buy particular brands of cars, the natural procedure is to ask them.
Thus, the questionnaire method has come to be the more widely used of the two data
collection method. Many consumers are now familiar with the telephone caller who greets
them with We are making a survey, and then proceeds to ask a series of questions. Some
interviews are conducted in person, others by telephone, and others by mail. Each of these
has its special advantages and disadvantages and limitations. The questionnaire method in
general, however, has a number of pervasive advantages and disadvantages. Discussion of
particular variations will be more meaningful if these characteristics of the general methods
are brought out first. A questionnaire consists of list of questions to be asked from the
respondents and the space provided to record the answer / responses. Questionnaire can be
used for the personal interviews,
Focus groups, mails and telephonic interviews. The choice among these alternatives is largely
determined by the type of information to be obtained and by the type of respondents from
whom it is to be obtained.
The common factor in all varieties of the questionnaire method is this reliance on verbal
responses to question, written or oral.
Questionnaire in the project consists of:
a) Multiple choice questions
b) Open ended questions:
c) Dicthomus
MULTIPLE CHOICE QUESTIONS:
Questions of this type offer the respondents an alternative to choose the right answer among
others. It is faster, time saving and less biased. It also simplifies the tabulating process.

OPEN END QUESTIONS:

35

In this type respondents are free to answer in their own words and express the ideas they
think are relevant, such questions are good as first questions or opening questions. They
introduce the subject and obtain general reaction.
DICTHOMUS:
These are the questions which are Boolean in nature. These answers are straightforward and
respondents have to answer them in a straight way. That means the answer can only be either
Yes or No.
SAMPLING TECHNIQUE USED & SAMPLE SIZE - WHY?
Sample design is a definite plan of obtaining some items from the whole population. The
sample design used in this project is two state sampling i.e. Cluster and convenience. In the
probability sampling methods, each items in the sample is chosen one at a time from a
complete list of universe elements. In marketing research practice, it will sometimes be more
expedient to select clusters or groups of universe elements, rather than to choose sample
items individually. Sampling methods in which universe elements are chosen in groups ---rather than individually -- are called cluster-sampling methods. They are widely used in the
sampling of human populations. When no complete universe listing exists, a type of sampling
is called area sampling may be the only practically feasible form of probability sampling.
a) NONDISGUISED, STRUCTURED TECHNIQUES
The non structured techniques for attitude measurement are primarily of value in exploratory
studies, where the researcher is looking for the salient attributes of given products and the
important factors surrounding purchase decisions as seen by the consumer. Structured
techniques can provide a more objective measurement system, one which is more comparable
to a scale or a yardstick. The term scaling has been applied to the efforts to measure attitudes
objectively, and a number of useful scales have been developed.

Sampling Methods
36

CENSUS AND SAMPLE SURVEY

All items in any field of inquiry constitute a Universe or Population. A complete
enumeration of all items in the population is known as a census inquiry. It can be presumed
that in such an inquiry, when all items are covered, no element of chance is left and highest
accuracy is obtained. But in practice this may not be true. Even the slightest element of bias
in such an inquiry will get larger and larger as the number of observation increases.
Moreover, there is no way of checking the element of bias or its extent except through a
resurvey or use of sample checks. Besides, this type of inquiry involves a great deal of time,
money and energy. Therefore, when the field of inquiry is large, this method becomes
difficult to adopt because of the resources involved. At times, this method is practically
beyond the reach of ordinary researchers. Perhaps, government is the only institution which
can get the complete enumeration carried out. Even the government adopts this in very rare
cases such as population census conducted once in a decade. Further, many a time it is not
possible to examine every item in the population, and sometimes it is possible to obtain
sufficiently accurate results by studying only a part of total population. In such cases there is
no utility of census surveys. However, it needs to be emphasised that when the universe is a
small one, it is no use resorting to a sample survey. When field studies are undertaken in
practical life, considerations of time and cost almost invariably lead to a selection of
respondents i.e., selection of only a few items. The respondents selected should be as
representative of the total population as possible in order to produce a miniature crosssection. The selected respondents constitute what is technically called a sample and the
selection process is called sampling technique. The survey so conducted is known as
sample survey. Algebraically, let the population size be N and if a part of size n (which is <
N) of this population is selected according to some rule for studying some characteristic of
the population, the group consisting of these n units is known as sample. Researcher must
prepare a sample design for his study i.e., he must plan how a sample should be selected and
of what size such a sample would be.

IMPLICATIONS OF A SAMPLE DESIGN

37

A sample design is a definite plan for obtaining a sample from a given population. It refers to
the technique or the procedure the researcher would adopt in selecting items for the sample.
Sample design may as well lay down the number of items to be included in the sample i.e.,
the size of the sample. Sample design is determined before data are collected. There are many
sample designs from which a researcher can choose. Some designs are relatively more precise
and easier to apply than others. Researcher must select/prepare a sample design which should
be reliable and appropriate for his research study.

STEPS IN SAMPLE DESIGN

While developing a sampling design, the researcher must pay attention to the following
points:
(i) Type of universe: The first step in developing any sample design is to clearly define the
set of objects, technically called the Universe, to be studied. The universe can be finite or
infinite. In finite universe the number of items is certain, but in case of an infinite universe
the number of items is infinite, i.e., we cannot have any idea about the total number of items.
The population of a city, the number of workers in a factory and the like are examples of
finite universes, whereas the number of stars in the sky, listeners of a specific radio
programme, throwing of a dice etc. are examples of infinite universes.
(ii) Sampling unit: A decision has to be taken concerning a sampling unit before selecting
sample. Sampling unit may be a geographical one such as state, district, village, etc., or a
construction unit such as house, flat, etc., or it may be a social unit such as family, club,
school, etc., or it may be an individual. The researcher will have to decide one or more of
such units that he has to select for his study.
(iii) Source list: It is also known as sampling frame from which sample is to be drawn. It
contains the names of all items of a auniverse (in case of finite universe only). If source list is
not available, researcher has to prepare it. Such a list should be comprehensive, correct,
reliable and appropriate. It is extremely important for the source list to be as representative of
the population as possible.

38

(iv) Size of sample: This refers to the number of items to be selected from the universe to
constitute a sample. This a major problem before a researcher. The size of sample should
neither be excessively large, nor too small. It should be optimum. An optimum sample is one
which fulfills the requirements of efficiency, representativeness, reliability and flexibility.
While deciding the size of sample, researcher must determine the desired precision as also an
acceptable confidence level for the estimate. The size of population variance needs to be
considered as in case of larger variance usually a bigger sample is needed. The size of
population must be kept in view for this also limits the sample size. The parameters of
interest in a research study must be kept in view, while deciding the size of the sample. Costs
too dictate the size of sample that we can draw. As such, budgetary constraint must invariably
be taken into consideration when we decide the sample size.
(v) Parameters of interest: In determining the sample design, one must consider the
question of the specific population parameters which are of interest. For instance, we may be
interested in estimating the proportion of persons with some characteristic in the population,
or we may be interested in knowing some average or the other measure concerning the
population. There may also be important sub-groups in the population about whom we would
like to make estimates. All this has a strong impact upon the sample design we would accept.
(vi) Budgetary constraint: Cost considerations, from practical point of view, have a major
impact upon decisions relating to not only the size of the sample but also to the type of
sample. This fact can even lead to the use of a non-probability sample.
(vii) Sampling procedure: Finally, the researcher must decide the type of sample he will use
i.e., he must decide about the technique to be used in selecting the items for the sample. In
fact, this technique or procedure stands for the sample design itself. There are several sample
designs (explained in the pages that follow) out of which the researcher must choose one for
his study. Obviously, he must select that design which, for a given sample size and for a given
cost, has a smaller sampling error.
CRITERIA OF SELECTING A SAMPLING PROCEDURE
In this context one must remember that two costs are involved in a sampling analysis viz., the
cost of collecting the data and the cost of an incorrect inference resulting from the data.
39

Researcher must keep in view the two causes of incorrect inferences viz., systematic bias and
sampling error. A systematic bias results from errors in the sampling procedures, and it cannot
be reduced or eliminated by increasing the sample size. At best the causes responsible for
these errors can be detected and corrected. Usually a systematic bias is the result of one or
more of the following factors:
1. Inappropriate sampling frame: If the sampling frame is inappropriate i.e., a biased
representation of the universe, it will result in a systematic bias.
2. Defective measuring device: If the measuring device is constantly in error, it will result in
systematic bias. In survey work, systematic bias can result if the questionnaire or the
interviewer is biased. Similarly, if the physical measuring device is defective there will be
systematic bias in the data collected through such a measuring device.
3. Non-respondents: If we are unable to sample all the individuals initially included in the
sample, there may arise a systematic bias. The reason is that in such a situation the likelihood
of establishing contact or receiving a response from an individual is often correlated with the
measure of what is to be estimated.
4. Indeterminancy principle: Sometimes we find that individuals act differently when kept
under observation than what they do when kept in non-observed situations. For instance, if
workers are aware that somebody is observing them in course of a work study on the basis of
which the average length of time to complete a task will be determined and accordingly the
quota will be set for piece work, they generally tend to work slowly in comparison to the
speed with which they work if kept unobserved. Thus, the indeterminancy principle may also
be a cause of a systematic bias.
5. Natural bias in the reporting of data: Natural bias of respondents in the reporting of data
is often the cause of a systematic bias in many inquiries. There is usually a downward bias in
the income data collected by government taxation department, whereas we find an upward
bias in the income data collected by some social organisation. People in general understate
their incomes if asked about it for tax purposes, but they overstate the same if asked for social
40

status or their affluence. Generally in psychological surveys, people tend to give what they
think is the correct answer rather than revealing their true feelings.
Sampling errors are the random variations in the sample estimates around the true population
parameters. Since they occur randomly and are equally likely to be in either direction, their
nature happens to be of compensatory type and the expected value of such errors happens to
be equal to zero. Sampling error decreases with the increase in the size of the sample, and it
happens to be of a smaller magnitude in case of homogeneous population. Sampling error can
be measured for a given sample design and size. The measurement of sampling error is
usually called the precision of the sampling plan. If we increase the sample size, the
precision can be improved. But increasing the size of the sample has its own limitations viz.,
a large sized sample increases the cost of collecting data and also enhances the systematic
bias. Thus the effective way to increase precision is usually to select a better sampling design
which has a smaller sampling error for a given sample size at a given cost. In practice,
however, people prefer a less precise design because it is easier to adopt the same and also
because of the fact that systematic bias can be controlled in a better way in such a design. In
brief, while selecting a sampling procedure, researcher must ensure that the procedure
causes a relatively small sampling error and helps to control the systematic bias in a better
way.
CHARACTERISTICS OF A GOOD SAMPLE DESIGN
From what has been stated above, we can list down the characteristics of a good sample
design as under:
(a) Sample design must result in a truly representative sample.
(b) Sample design must be such which results in a small sampling error.
(c) Sample design must be viable in the context of funds available for the research study.
(d) Sample design must be such so that systematic bias can be controlled in a better way.
(e) Sample should be such that the results of the sample study can be applied, in general, for
the universe with a reasonable level of confidence.
DIFFERENT TYPES OF SAMPLE DESIGNS
There are different types of sample designs based on two factors viz., the representation basis
and the element selection technique. On the representation basis, the sample may be
41

probability sampling or it may be non-probability sampling. Probability sampling is based on

the concept of random selection, whereas non-probability sampling is non-random
sampling. On element selection basis, the sample may be either unrestricted or restricted.
When each sample element is drawn individually from the population at large, then the
sample so drawn is known as unrestricted sample, whereas all other forms of sampling are
covered under the term restricted sampling. The following chart exhibits the sample designs
as explained above. Thus, sample designs are basically of two types viz., non-probability
sampling and probability sampling. We take up these two designs separately.
Non-probability sampling: Non-probability sampling is that sampling procedure which does
not afford any basis for estimating the probability that each item in the population has of
being included in the sample. Non-probability sampling is also known by different names
such as deliberate sampling, purposive sampling and judgement sampling. In this type of
sampling, items for the sample are selected deliberately by the researcher; his choice
concerning the items remains supreme. In other words, under non-probability sampling the
organisers of the inquiry purposively choose the particular units of the universe for
constituting a sample on the basis that the small mass that they so select out of a huge one
will be typical or representative of the whole. For instance, if economic conditions of people
living in a state are to be studied, a few towns and villages may be purposively selected for
intensive study on the principle that they can be representative of the entire state. Thus, the
judgement of the organisers of the study plays an important part in this sampling design. In
such a design, personal element has a great chance of entering into the selection of the
sample. The investigator may select a sample which shall yield results favourable to his point
of view and if that happens, the entire inquiry may get vitiated. Thus, there is always the
danger of bias entering into this type of sampling technique. But in the investigators are
impartial, work without bias and have the necessary experience so as to take sound
judgement, the results obtained from an analysis of deliberately selected sample may be
tolerably reliable. However, in such a sampling, there is no assurance that every element has
some specifiable chance of being included. Sampling error in this type of sampling cannot be
estimated and the element of bias, great or small, is always there. As such this sampling
design in rarely adopted in large inquires of importance. However, in small inquiries and
researches by individuals, this design may be adopted because of the relative advantage of
42

time and money inherent in this method of sampling. Quota sampling is also an example of
non-probability sampling. Under quota sampling the interviewers are simply given quotas to
be filled from the different strata, with some restrictions on how they are to be filled. In other
words, the actual selection of the items for the sample is left to the interviewers discretion.
This type of sampling is very convenient and is relatively inexpensive. But the samples so
selected certainly do not possess the characteristic of random samples. Quota samples are
essentially judgement samples and inferences drawn on their basis are not amenable to
statistical treatment in a formal way.
Probability sampling: Probability sampling is also known as random sampling or chance
sampling. Under this sampling design, every item of the universe has an equal chance of
inclusion in the sample. It is, so to say, a lottery method in which individual units are picked
up from the whole group not deliberately but by some mechanical process. Here it is blind
chance alone that determines whether one item or the other is selected. The results obtained
from probability or random sampling can be assured in terms of probability i.e., we can
measure the errors of estimation or the significance of results obtained from a random
sample, and this fact brings out the superiority of random sampling design over the deliberate
sampling design. Random sampling ensures the law of Statistical Regularity which states that
if on an average the sample chosen is a random one, the sample will have the same
composition and characteristics as the universe. This is the reason why random sampling is
considered as the best technique of selecting a representative sample. Random sampling from
a finite population refers to that method of sample selection which gives each possible sample
combination an equal probability of being picked up and each item in the entire population to
have an equal chance of being included in the sample. This applies to sampling without
replacement i.e., once an item is selected for the sample, it cannot appear in the sample again
(Sampling with replacement is used less frequently in which procedure the element selected
for the sample is returned to the population before the next element is selected. In such a
situation the same element could appear twice in the same sample before the second element
is chosen).

43

COMPLEX RANDOM SAMPLING DESIGNS

Probability sampling under restricted sampling techniques, as stated above, may result in
complexrandom sampling designs. Such designs may as well be called mixed sampling
designs for many of such designs may represent a combination of probability and nonprobability sampling procedures in selecting a sample. Some of the popular complex random
sampling designs are as follows:
(i) Systematic sampling: In some instances, the most practical way of sampling is to select
every ith item on a list. Sampling of this type is known as systematic sampling. An element of
randomness is introduced into this kind of sampling by using random numbers to pick up the
unit with which to start. For instance, if a 4 per cent sample is desired, the first item would be
selected randomly from the first twenty-five and thereafter every 25th item would
automatically be included in the sample. Thus, in systematic sampling only the first unit is
selected randomly and the remaining units of the sample are selected at fixed intervals.
Although a systematic sample is not a random sample in the strict sense of the term, but it is
often considered reasonable to treat systematic sample as if it were a random sample.
Systematic sampling has certain plus points. It can be taken as an improvement over a simple
random sample in as much as the systematic sample is spread more evenly over the entire
population. It is an easier and less costlier method of sampling and can be conveniently used
even in case of large populations. But there are certain dangers too in using this type of
sampling. If there is a hidden periodicity in the population, systematic sampling will prove to
be an inefficient method of sampling. For instance, every 25th item produced by a certain
production process is defective. If we are to select a 4% sample of the items of this process in
a systematic manner, we would either get all defective items or all good items in our sample
depending upon the random starting position. If all elements of the universe are ordered in a
manner representative of the total population, i.e., the population list is in random order,
systematic sampling is considered equivalent to random sampling. But if this is not so, then
the results of such sampling may, at times, not be very reliable. In practice, systematic
sampling is used when lists of population are available and they are of considerable length.
(ii) Stratified sampling: If a population from which a sample is to be drawn does not
constitute a homogeneous group, stratified sampling technique is generally applied in order to
44

obtain a representative sample. Under stratified sampling the population is divided into
several sub-populations that are individually more homogeneous than the total population
(the different sub populations are called strata) and then we select items from each stratum
to constitute a sample. Since each stratum is more homogeneous than the total population, we
are able to get more precise estimates for each stratum and by estimating more accurately
each of the componentparts, we get a better estimate of the whole. In brief, stratified
sampling results in more reliable and detailed information. The following three questions are
highly relevant in the context of stratified sampling:
(a) How to form strata?
(b) How should items be selected from each stratum?
(c) How many items be selected from each stratum or how to allocate the sample size of each
stratum?
Regarding the first question, we can say that the strata be formed on the basis of common
characteristic(s) of the items to be put in each stratum. This means that various strata be
formed in such a way as to ensure elements being most homogeneous within each stratum
and most heterogeneous between the different strata. Thus, strata are purposively formed and
are usually based on past experience and personal judgement of the researcher. One should
always remember that careful consideration of the relationship between the characteristics of
the population and the characteristics to be estimated are normally used to define the strata.
At times, pilot study may be conducted for determining a more appropriate and efficient
stratification plan. We can do so by taking small samples of equal size from each of the
proposed strata and then examining the variances within and among the possible
stratifications, we can decide an appropriate stratification plan for our inquiry.
It is not necessary that stratification be done keeping in view a single characteristic.
Populations are often stratified according to several characteristics. For example, a systemwide survey designed to determine the attitude of students toward a new teaching plan, a state
college system with 20 colleges might stratify the students with respect to class, sec and
college. Stratification of this type is known as cross-stratification, and up to a point such
stratification increases the reliability of estimates and is much used in opinion surveys. From
what has been stated above in respect of stratified sampling, we can say that the sample so
constituted is the result of successive application of purposive (involved in stratification of
items) and random sampling methods. As such it is an example of mixed sampling. The
45

procedure wherein we first have stratification and then simple random sampling is known as
stratified random sampling.
(iii) Cluster sampling: If the total area of interest happens to be a big one, a convenient way
in which a sample can be taken is to divide the area into a number of smaller non-overlapping
areas and then to randomly select a number of these smaller areas (usually called clusters),
with the ultimate sample consisting of all (or samples of) units in these small areas or
clusters. Thus in cluster sampling the total population is divided into a number of relatively
small subdivisions which are themselves clusters of still smaller units and then some of these
clusters are randomly selected for inclusion in the overall sample. Suppose we want to
estimate the proportion of machineparts in an inventory which are defective. Also assume that
there are 20000 machine parts in the inventory at a given point of time, stored in 400 cases of
50 each. Now using a cluster sampling, we would consider the 400 cases as clusters and
randomly select n cases and examine all the machineparts in each randomly selected case.
Cluster sampling, no doubt, reduces cost by concentrating surveys in selected clusters. But
certainly it is less precise than random sampling. There is also not as much information in n
observations within a cluster as there happens to be in n randomly drawn observations.
Cluster sampling is used only because of the economic advantage it possesses; estimates
based on cluster samples are usually more reliable per unit cost.
(iv) Area sampling: If clusters happen to be some geographic subdivisions, in that case
cluster sampling is better known as area sampling. In other words, cluster designs, where the
primary sampling unit represents a cluster of units based on geographic area, are
distinguished as area sampling. The plus and minus points of cluster sampling are also
applicable to area sampling.
(v) Multi-stage sampling: Multi-stage sampling is a further development of the principle of
cluster sampling. Suppose we want to investigate the working efficiency of nationalised
banks in India and we want to take a sample of few banks for this purpose. The first stage is
to select large primary sampling unit such as states in a country. Then we may select certain
districts and interview all banks in the chosen districts. This would represent a two-stage
sampling design with the ultimate sampling units being clusters of districts. If instead of
46

taking a census of all banks within the selected districts, we select certain towns and
interview all banks in the chosen towns. This would represent a three-stage sampling design.
If instead of taking a census of all banks within the selected towns, we randomly sample
banks from each selected town, then it is a case of using a four-stage sampling plan. If we
select randomly at all stages, we will have what is known as multi-stage random sampling
design. Ordinarily multi-stage sampling is applied in big inquires extending to a
considerable large geographical area, say, the entire country. There are two advantages of this
sampling design viz., (a) It is easier to administer than most single stage designs mainly
because of the fact that sampling frame under multi-stage sampling is developed in partial
units. (b) A large number of units can be sampled for a given cost under multistage sampling
because of sequential clustering, whereas this is not possible in most of the simple designs.
(vi) Sampling with probability proportional to size: In case the cluster sampling units do
not have the same number or approximately the same number of elements, it is considered
appropriate to use a random selection process where the probability of each cluster being
included in the sample is proportional to the size of the cluster. For this purpose, we have to
list the number of elements in each cluster irrespective of the method of ordering the cluster.
Then we must sample systematically the appropriate number of elements from the cumulative
totals. The actual numbers selected in this way do not refer to individual elements, but
indicate which clusters and how many from the cluster are to be selected by simple random
sampling or by systematic sampling. The results of this type of sampling are equivalent to
those of a simple random sample and the method is less cumbersome and is also relatively
less expensive. We can illustrate this with the help of an example.
(vii) Sequential sampling: This sampling design is some what complex sample design. The
ultimate size of the sample under this technique is not fixed in advance, but is determined
according to mathematical decision rules on the basis of information yielded as survey
progresses. This is usually adopted in case of acceptance sampling plan in context of
statistical quality control. When a particular lot is to be accepted or rejected on the basis of a
single sample, it is known as single sampling; when the decision is to be taken on the basis of
two samples, it is known as double sampling and in case the decision rests on the basis of
more than two samples but the number of samples is certain and decided in advance, the
47

sampling is known as multiple sampling. But when the number of samples is more than two
but it is neither certain nor decided in advance, this type of system is often referred to as
sequential sampling. Thus, in brief, we can say that in sequential sampling, one can go on
taking samples one after another as long as one desires to do so.
SAMPLING
a) Sampling Technique: Non probability sampling (A non probability sampling technique is
that in which each element in the population does not have an equal chance of getting
selected)
b) Sample size: 100 respondents (Age ranging between 18 yrs. onwards.)
c) Method: Direct interview through questionnaire.
d) Data analysis method: Pie charts.
e) Area of survey: New Delhi.
f) Timing of survey: 9.00 am to 12.30 pm and 5.00 pm to 8.00 pm

FIELD WORK- METHOD USED FOR DATA COLLECTION

Questionnaire was prepared keeping the objective of research in mind.

The help of questionnaires conducted direct interviews, in order to get accurate

information.
In order to get correct information I had to approach consumers ranging from 18 yrs.

onwards.
It is really a Herculean task to understand Consumer Behavior, as the definition
suggest, Consumer behavioris a physical activity as well as decision
processindividual engaged in when evaluating, acquiring, usingand disposing

goods and services.

In order to collect accurate information I checked each and every question was filled

personally by therespondents and checked properly.

People were not willing to answer, when they were contacted between 9.00 am to
12.30 pm and 5.00 pm to 8.00 pm, the time when most of the people take rest during
the scorching heat.

48

CHAPTER-4
ANALYSIS AND
FINDINGS

49

Analysis & Findings

Customer Questionnaire:
Q.1. Which Prepaid Cellular services you are using?
(a) Aircel

(b) Airtel

(c) BSNL

(d) Idea

(e) MTS

(f) Reliance

(g) Vodafone

(h) Tata Indicom

PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

Aircel
Airtel
BSNL
Idea
MTS
Reliance
Vodafone
Tata Indicom
TOTAL

37
13
5
7
3
10
18
7
100

37
13
5
7
3
10
18
7
100

Aircel

Airtel

BSNL

Idea

MTS

Reliance

Vodafone

Tata Indicom

7%
18%

37%

10%
3%

7%

5%

13%

Interpretation:37% people are using the prepaid cellular services of Aircel.

50

18% people are using the prepaid cellular services of Vodafone.

13% people are using the prepaid cellular services of Airtel.
10% people are using the prepaid cellular services of Reliance.
7% people are using the prepaid cellular services of Idea.
7% people are using the prepaid cellular services of Tata Indicom.
5% people are using the prepaid cellular services of BSNL.
3% people are using the prepaid cellular services of MTS.

Q.2.Would you like to change your service provider?

(a) Yes

(b) No
51

PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

No
Yes
TOTAL

8
92
100

8
92
100

No

Yes

8%

92%

Interpretation:Out of 100 people, 92% people are in favour of changing their service provider.
Only 8% people are not in favour of changing their service provider.

Q.3. Why do you want to change your Mobile product/service?

(a) New technology

(b) Change Tariff

52

(c) Change network

(d) Lost

PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

New technology
Change Tariff
Change network
Lost
TOTAL

16
43
30
3
92

17
47
33
3
100

New technology

Change Tarif

Change network

Lost

3%

17%

33%

47%

Interpretation:47% people are wanted to change their service provider due to change in tariffs.
33% people are wanted to change their service provider due to change in networks.
17% people are wanted to change their service provider due to new technology.
3% people are wanted to change their service provider due to lost.

Q.4. To which Prepaid Cellular services you want to move on?

(a) Aircel

(b) Airtel

(c) BSNL

(d) Idea

(e) MTS

(f) Reliance

(g) Vodafone

(h) Tata Indicom

53

PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

Aircel
Airtel
BSNL
Idea
MTS
Reliance
Vodafone
Tata Indicom
TOTAL

36
12
4
6
2
9
17
6
92

39
13
4
7
2
10
18
7
100

Aircel

Airtel

BSNL

Idea

MTS

Reliance

Vodafone

Tata Indicom

7%
18%
10%
2%

7%

39%

4%

13%

Interpretation:39% people wanted to move on to Aircel services.

18% people wanted to move on to Vodafone services.
13% people wanted to move on to Airtel services.
10% people wanted to move on to Reliance services.
7% people wanted to move on to Idea services.
7% people wanted to move on to Tata Indicom services.
4% people wanted to move on to BSNL services.
2% people wanted to move on to MTS services.

54

Q.5.Which of the following do you use other then calling?

(a) SMS

(b) MMS

(d) Games

(e) Wall Paper

(c) Internet
(f) Downloading

(g) Others
PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

SMS
MMS
Internet

57
13
51

57
13
51
55

Games
Wall Paper
Downloading
Others

37
23
48
54

54

SMS

57

MMS

13

48
23

37
23
48
54

Internet
Games

51

Wall Paper

37

Downloading
Others

Interpretation :57% people use mobile services for SMS other than calling.
54% people use mobile services for Other work rather than calling.
51% people use mobile services for Internet other than calling.
48% people use mobile services for Downloading other than calling.
37% people use mobile services for Games other than calling.
23% people use mobile services for Wallpaper other than calling.
13% people use mobile services for MMS other than calling.
Q.6. From where you Get your recharge done or buy recharge coupons.
(a) Retailer

(b) Online

PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

Retailer
Online
TOTAL

87
13
100

87
13
100

56

Retailer

Online

13%

87%

Interpretation:87% people get their recharge done through retailers.

13% people get their recharge done through online.

Q.7. you prefer to have easy recharge or buy recharge coupons?

(a) Easy recharge

(b) Recharge coupon

PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

Easy recharge
Recharge coupon
TOTAL

71
16
87

82
18
100

57

Easy recharge

Recharge coupon

18%

82%

Interpretation:71% people have to prefer easy recharge.

16% people have to prefer recharge through recharge coupon.

Q.8. Where did you get the information about the product/service?
(a) News paper

(b) Magazine

(c) TV Ad

(d) Friends

(e) Colleagues

(f) online

(g) Leaflet

(h) Retailer

(i) Others

PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

News paper
Magazine

34
12

34
12
58

TV Ad
Friends
Colleagues
online
Leaflet
Retailer
Others

56
32
6
23
9
37
13

56
32
6
23
9
37
13

News paper
37

13

34

Magazine
12

TV Ad
Friends

23
6

56
32

Colleagues
online
Leaflet
Retailer
Others

Interpretation:56% people get the information about product/service through TV Ad.

37% people get the information about product/service through Retailer.
34% people get the information about product/service through Newapaper.
32% people get the information about product/service through Friends.
23% people get the information about product/service through Online.
13% people get the information about product/service through Others.
12% people get the information about product/service through Magazine.
9% people get the information about product/service through Leaflet.
6% people get the information about product/service through Colleagues.

59

Q.9.Why has you chosen your service provider?

(a) Reference

(b) Prior experience

(c) Network

(d) Provide clear voice

(e) Excellent service

(f) Price promise

(g) Availability

(h) others

PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

Reference
Prior experience
Network

39
23
76

39
23
76
60

Provide clear voice

Excellent service
Price promise
Availability
others

15

42

45
34
12
42
15

Reference
39
23

12
34

76
45

45
34
12
42
15

Prior experience
Network
Provide clear voice
Excellent service
Price promise
Availability
others

Interpretation:76% people choose service provider because of network.

45% people choose service provider because of providing clear voice.
42% people choose service provider because of availability.
39% people choose service provider because of reference.
34% people choose service provider because of excellent service.
23% people choose service provider because of prior experience.
15% people choose service provider because of other matter.
12% people choose service provider because of prior promise.

61

Q.10. Do you like your service providers customer support?

(a) Yes

(b) No
PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

Yes
No
TOTAL

67
33
100

67
33
100

62

Yes

No

33%

67%

Interpretation:67% people like their service provider customer support.

33% people not like their service provider customer support.

Q.11. Which service provider advertisement is more attractive?

(a) Aircel

(b) Airtel

(c) BSNL

(d) Idea

(e) MTS

(f) Reliance

(g) Vodafone

(h) Tata Indicom

PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

Aircel
Airtel

41
9

41
9
63

BSNL
Idea
MTS
Reliance
Vodafone
Tata Indicom
TOTAL

2
10
3
12
21
2
100

2
10
3
12
21
2
100

Aircel

Airtel

BSNL

Idea

MTS

Reliance

Vodafone

Tata Indicom

21%

2%
41%

12%
3%

10%

2%

9%

Interpretation:41% people say that Aircel service provider advertisement is more attractive.
21% people say that Vodafone service provider advertisement is more attractive.
12% people say that Reliance service provider advertisement is more attractive.
10% people say that Idea service provider advertisement is more attractive.
9% people say that Airtel service provider advertisement is more attractive.
3% people say that MTS service provider advertisement is more attractive.
2% people say that BSNL service provider advertisement is more attractive.
2% people say that Tata Indicom service provider advertisement is more attractive.

64

Retailer Questionnaire:
Q1 which prepaid cellular service you offers?
(a) Aircel

(b) Airtel

(c) BSNL

(d) Idea

(e) MTS

(f) Reliance

(g) Vodafone

(h) Tata Indicom

PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

Aircel
Airtel
BSNL

78
72
23

78
72
23
65

Idea
MTS
Reliance
Vodafone
Tata Indicom

81

63
27
47
81
12

12

63
27
47
81
12

Aircel

78

Airtel
BSNL
72

47
27

63

23

Idea
MTS
Reliance
Vodafone
Tata Indicom

Interpretation:81% retailer offers Vodafone prepaid cellular service.

78% retailer offers Aircel prepaid cellular service.
72% retailer offers Airtel prepaid cellular service.
63% retailer offers Idea prepaid cellular service.
47% retailer offers Reliance prepaid cellular service.
27% retailer offers MTS prepaid cellular service.
23% retailer offers BSNL prepaid cellular service.
12% retailer offers Tata Indicom prepaid cellular service.

66

Q2 which company is giving best performance?

(a) Aircel

(b) Airtel

(c) BSNL

(d) Idea

(e) MTS

(f) Reliance

(g) Vodafone

(h) Tata Indicom

PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

Aircel
Airtel
BSNL
Idea
MTS
Reliance

24
20
3
10
5
6

24
20
3
10
5
6
67

Vodafone
Tata Indicom
TOTAL

27
5
100

27
5
100

Aircel

Airtel

BSNL

Idea

MTS

Reliance

Vodafone

Tata Indicom

5%

24%

27%

6%

20%
5%

10%

3%

Interpretation:27% retailers agree with the Vodafone Company in giving best performance.
24% retailers agree with the Aircel Company in giving best performance.
20% retailers agree with the Airtel Company in giving best performance.
10% retailers agree with the Idea Company in giving best performance.
6% retailers agree with the Reliance Company in giving best performance.
5% retailers agree with the MTS Company in giving best performance.
5% retailers agree with the Tata Indicom Company in giving best performance.
3% retailers agree with the BSNL Company in giving best performance.

68

Q.3. Which brand offers best sell margin?

(a) Aircel

(b) Airtel

(c) BSNL

(d) Idea

(e) MTS

(f) Reliance

(g) Vodafone

(h) Tata Indicom

PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

Aircel
Airtel
BSNL
Idea
MTS
Reliance
Vodafone
Tata Indicom
TOTAL

50
20
1
7
4
6
10
2
100

50
20
1
7
4
6
10
2
100

69

Aircel

Airtel

BSNL

Idea

MTS

Reliance

Vodafone

Tata Indicom

6%
4%
7%

10%

2%

50%

1%
20%

Interpretation:50% retailer say Aircel brand offers best sell margin.

20% retailer say Airtel brand offers best sell margin.
10% retailer say Vodafone brand offers best sell margin.
7% retailer say Idea brand offers best sell margin.
6% retailer say Reliance brand offers best sell margin.
4% retailer say MTS brand offers best sell margin.
2% retailer say Tata Indicom brand offers best sell margin.
1% retailer say BSNL brand offers best sell margin.

70

Q.4. Are Company supervisors cooperative with you?

(a) Yes

(b) No
PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

Yes
No
TOTAL

69
31
100

69
31
100

71

Yes

No

31%

69%

Interpretation:69% retailer agree that company supervisors are cooperative with them.
31% retailer agree that company supervisors are not cooperative with them.

Q.5. Are you getting current information regarding the brand Aircel properly?
(a) Yes

(b) No
PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

Yes
No
TOTAL

74
26
100

74
26
100

72

Yes

No

26%

74%

Interpretation:74% retailer says that they are getting current information regarding the brand Aircel
properly.
26% retailer says that they are not getting current information regarding the brand Aircel
properly.

Q.6. How much you are satisfied with Aircel service?

(a) Satisfied

(b) Not Satisfied

PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

Satisfied
Not Satisfied
TOTAL

74
26
100

74
26
100

73

Satisfied

Not Satisfied

26%

74%

Interpretation:74% people are satisfied with Aircel services.

26% people are not satisfied with Aircel services.

Q.7.Which cellular service provider is getting the highest convergence in term of

activation?
(a) Aircel

(b) Airtel

(c) BSNL

(d) Idea

(e) MTS

(f) Reliance

(g) Vodafone

(h) Tata Indicom

PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

Aircel

24

24
74

Airtel
BSNL
Idea
MTS
Reliance
Vodafone
Tata Indicom
TOTAL

20
3
10
5
6
27
5
100

20
3
10
5
6
27
5
100

Aircel

Airtel

BSNL

Idea

MTS

Reliance

Vodafone

Tata Indicom

5%

24%

27%

6%

20%
5%

10%

3%

Interpretation:27% people think that Vodafone is getting the highest convergence.

24% people think that Aircel is getting the highest convergence.
20% people think that Airtel is getting the highest convergence.
10% people think that Idea is getting the highest convergence.
6% people think that Reliance is getting the highest convergence.
5% people think that MTS is getting the highest convergence.
5% people think that Tata Indicom is getting the highest convergence.
3% people think that BSNL is getting the highest convergence.

75

Q.8. How many times Company supervisors visits you in a week?

(a) 1 - 2 times

(b) 2 - 4 times

(d) 7 times

(e) never visit

(c) 4 - 6 times

PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

1 - 2 times
2 - 4 times
4 - 6 times
7 times
never visit
TOTAL

56
23
10
8
3
100

56
23
10
8
3
100

76

1 - 2 times

2 - 4 times

8%

4 - 6 times

7 times

never visit

3%

10%
56%
23%

Interpretation:56% retailer say 1-2 times supervisors visit in a weak.

23% retailer say 2-3 times supervisors visit in a weak.
10% retailer say 4-6 times supervisors visit in a weak.
8% retailer say 7 times supervisors visit in a weak.
3% retailer say supervisors never visit in a weak.

Q.9. Does Company supervisors come and arrange the promotion material such as
posters, banner leaflets etc. on their own?
(a) Yes

(b) No
PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

Yes
No
TOTAL

79
21
100

79
21
100

77

Yes

No

21%

79%

Interpretation:74% retailer say yes supervisors come and arrange promotion tools for them.
26% retailer say no supervisors come and arrange promotion tools for them.

Q.10. which cellular network service is best?

(a) Aircel

(b) Airtel

(c) BSNL

(d) Idea

(e) MTS

(f) Reliance

(g) Vodafone

(h) Tata Indicom

PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

Aircel
Airtel
BSNL
Idea

28
18
5
10

28
18
5
10
78

MTS
Reliance
Vodafone
Tata Indicom
TOTAL

5
4
27
3
100

Aircel

Airtel

BSNL

Idea

MTS

Reliance

Vodafone

Tata Indicom

5
4
27
3
100

3%
28%

27%
4%
5%
10%

18%
5%

Interpretation:28% retailer goes with Aircel network is best.

27% retailer goes with Vodafone network is best.
18% retailer goes with Airtel network is best.
10% retailer goes with Idea network is best.
5% retailer goes with MTS network is best.
5% retailer goes with BSNL network is best.
4% retailer goes with Reliance network is best.
3% retailer goes with Tata Indicom network is best.

79

Q.11. which cellular service has best voice clarity?

(a) Aircel

(b) Airtel

(c) BSNL

(d) Idea

(e) MTS

(f) Reliance

(g) Vodafone

(h) Tata Indicom

PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

Aircel
Airtel
BSNL
Idea
MTS
Reliance

18
22
5
10
6
7

18
22
5
10
6
7
80

Vodafone
Tata Indicom
TOTAL

27
5
100

27
5
100

Aircel

Airtel

BSNL

Idea

MTS

Reliance

Vodafone

Tata Indicom

5%

18%

27%
22%
7%
6%

10%

5%

Interpretation:27% retailer says Vodafone has best voice clarity.

22% retailer says Airtel has best voice clarity.
18% retailer says Aircel has best voice clarity.
10% retailer says Idea has best voice clarity.
7% retailer says Reliance has best voice clarity.
6% retailer says MTS has best voice clarity.
5% retailer says BSNL has best voice clarity.
5% retailer says Tata Indicom has best voice clarity.

81

Q.12. which cellular service offers you cheapest call charge?

(a) Aircel

(b) Airtel

(c) BSNL

(d) Idea

(e) MTS

(f) Reliance

(g) Vodafone

(h) Tata Indicom

PARTICULAR

NUMBER OF RESPONDENTS

PERCENTAGE(%)

Aircel
Airtel
BSNL
Idea
MTS
Reliance
Vodafone
Tata Indicom
TOTAL

39
8
14
13
6
7
9
4
100

39
8
14
13
6
7
9
4
100

82

Aircel

Airtel

BSNL

Idea

MTS

Reliance

Vodafone

Tata Indicom

9%

4%

7%

39%

6%
13%
14%

8%

Interpretation:39% retailer think Aircel offers cheapest call charge.

14% retailer think BSNL offers cheapest call charge.
13% retailer think Idea offers cheapest call charge.
9% retailer think Vodafone offers cheapest call charge.
8% retailer think Airtel offers cheapest call charge.
7% retailer think Reliance offers cheapest call charge.
6% retailer think MTS offers cheapest call charge.
4% retailer think Tata Indicom offers cheapest call charge.

83

84

CHAPTER-5
CONCLUSIONS &
RECOMMENDATIONS

85

Conclusions & Recommendations

CONCLUSION

To consider the research aim and objectives, researcher identified that random
sampling strategy will be the best for research for collecting the primary data

collection.
The research will be surveyed among 100 mobile phone users living in Delhi area.
The secondary data has been collected from the text books, electronic journals and

company annual reports.

The value of information would be importance of the decision making in development
for making marketing strategy for to increase number of customers.

RECOMMENDATION
86

After analyzing the current practices of the company, consumer response from the survey and
interview with company staff the following recommendation is the best to change attitude of
customers and attract larger number of customers.
Increase retailer store in rural area
The Company has large number of strengths as discussed in industry analysis. The most
potential strength is strong distribution channel on high street. Rural subscription is
increasing in last few years. The company is already planning to improve this strength; this
will be the best idea for making the positive belief to the customers and help to increase the
existing strength. The company can capture more new customers by opening retail stores in
small places and advertise in the adjoining area.
Attract through promotion
TV, news paper, magazines ads are more effective then others as identified from the
consumer and company response That companies make their 4Ps strategy according to
consumer attitude towards product, promotion, price and placement. The company should
spend more on these media instead of leaflets and radio ads because consumers attitude
towards these are positive then others. Company can also promote the business through
changing brand belief & offering price promise.
Educate customers
After analyzing the customer response and company practices, it is identified that consumers
are changing mobile sets very often due to high speed of technology innovation. The
company should encourage the existing customers and others to adopt the new technology
and educate them for Product features and benefits. It has been identified that some of the
customers do not know about the attribute. Demonstration and trial is the effective source to
educate about the new technology. This will directly influence the consumer attitude towards
company.

Training to retailer staff

87

It has been identified that some of the customers are not satisfied with the staff help to choose
the right product and services. Company should give the required training to retail staff about
product knowledge and competitor offerings. Make sure the staff is advising right product
and services at the first time according to consumer requirement. This will help the customers
to evaluate the purchase information.
Obtain customers feedback
Customers are influenced by reference group as discussed in analysis and it is also identified
by the primary research. Moreover customer have more power then ever before.
Consumers have access more information than ever before. Company should take a
feedback from the existing customers after a regular interval and resolve the problem if any.
To retain customers it is necessary to obtain consumer feedback and offered the product and
services according to their feedback. If they will be satisfied then they come to repeat
purchase and moreover they will give the reference to others for buying product from the
company. This would be also help to make brand loyalty of the company.

88

CHAPTER-6
LIMITATIONS

89

Limitations

Due to financial situation of the research, the time frame for completion and the sampling
constraints the following are identified:
Financial constraints:
Financial constraints meant that the study could not be conducted on a State scale.
Time constraints:
The study has strict deadline which had to be met in order to fulfill the completion
requirement. If there were no time limit and financial constraints, or time frame in which to
complete the study, the researcher would done a national level survey in order to get a more
effective sample of the population.

90

CHAPTER-7
BIBLIOGRAPHY

91

Bibliography

For the completion of the project report references are being made mostly from the corporate
office and from books and different websites:
BOOKS:

Philip Kotler , Marketing Management

Marketing Research, Grun & Tull
Marketing Research, Aaker Kumar Day
Marketing Research, Seymor
Business India, Business World Etc

INTERNET SITES:

www.aircel.co.in

92

CHAPTER-8
ANNEXURE

93

Annexure
QUESTIONNAIRE
Customer Questionnaire:
Section A (Personal Details)
Name :

____________________________

Gender :

Male [

Female [

Age:

18-20 [

21-25 [

26-30

31-35 [

36-45 [

46 and above [

Qualification :
Secondary school

University Graduate [

Post Graduate

Others

Profession :
Professional

Business Class [

Official

Self Employed [

Students

Unemployed [

Section B (Purchasing Behavior / Habits)

Q.1. Which Prepaid Cellular services you are using?
(a) Aircel

(b) Airtel

(c) BSNL

(d) Idea

(e) MTS

(f) Reliance

(g) Vodafone [

(h) Tata Indicom

Q.2.Would you like to change your service provider?

(a) Yes [

(b) No [

94

Q.3. Why do you want to change your Mobile product/service?

(a) New technology

(b) Change Tariff

(c) Change network

(d) Lost

Q.4. To which Prepaid Cellular services you want to move on?

(a) Aircel

(b) Airtel

(c) BSNL

(d) Idea

(e) MTS

(f) Reliance

(g) Vodafone [

(h) Tata Indicom[

Q.5.Which of the following do you use other then calling?

(a) SMS

(b) MMS

(c) Internet

(d) Games

(e) Wall Paper [

(f) Downloading

(g) Others

Q.6. From where you Get your recharge done or buy recharge coupons.
(a) Retailer

(b) Online

Q.7. you prefer to have easy recharge or buy recharge coupons?

(a) Easy recharge

(b) Recharge coupon

Q.8. Where did you get the information about the product/service?
(a) News paper

(b) Magazine [

(c) TV Ad

(d) Friends

(e) Colleagues [

(f) online

(g) Leaflet

(h) Retailer

(i) others

Q.9.Why has you chosen your service provider?

(a) Reference

(b) Prior experience

(c) Network

(d) Provide clear voice

(e) Excellent service [

(f) Price promise

(g) Availability

(h) others

95

Q.10. Do you like your service providers customer support?

(a) Yes [

(b) No [

Q.11. Which service provider advertisement is more attractive?

(a) Aircel

(b) Airtel

(c) BSNL

(d) Idea

(e) MTS

(f) Reliance

(g) Vodafone [

(h) Tata Indicom[

Retailer Questionnaire:
Section A (Personal Details)
Name :

____________________________

Store Name :

____________________________

Qualification:
Secondary school

University Graduate [

Post Graduate

Others

Section B (Retailer View about the cellular services)

Q1 which prepaid cellular service you offers?
(a) Aircel

(b) Airtel

(c) BSNL

(d) Idea

(e) MTS

(f) Reliance

(g) Vodafone [

(h) Tata Indicom[

Q2 which company is giving best performance?

(a) Aircel

(b) Airtel

(c) BSNL

(d) Idea

(e) MTS

(f) Reliance

(g) Vodafone [

(h) Tata Indicom[

96

Q.3. Which brand offers best sell margin?

(a) Aircel

(b) Airtel

(c) BSNL

(d) Idea

(e) MTS

(f) Reliance

(g) Vodafone [

(h) Tata Indicom[

Q.4. Are Company supervisors cooperative with you?

(a) Yes [

(b) No [

Q.5. Are you getting current information regarding the brand Aircel properly?
(a) Yes [

(b) No [

Q.6. How much you are satisfied with Aircel service?

(a) Satisfied

(b) Not Satisfied

Q.7.Which cellular service provider is getting the highest convergence in term of

activation?
(a) Aircel

(b) Airtel

(c) BSNL

(d) Idea

(e) MTS

(f) Reliance

(g) Vodafone [

(h) Tata Indicom[

Q.8. How many times Company supervisors visits you in a week?

(a) 1 - 2 times

(b) 2 - 4 times [

(d) 7 times

(e) never visit [

(c) 4 - 6 times [

Q.9. Does Company supervisors come and arrange the promotion material such as
posters, banner leaflets etc. on their own?
(a) Yes [

(b) No [

Q.10. which cellular network service is best?

(a) Aircel

(b) Airtel

(c) BSNL

(d) Idea

(e) MTS

(f) Reliance

(g) Vodafone [

(h) Tata Indicom[

]
97

Q.11. which cellular service has best voice clarity?

(a) Aircel

(b) Airtel

(c) BSNL

(d) Idea

(e) MTS

(f) Reliance

(g) Vodafone [

(h) Tata Indicom[

Q.12. which cellular service offers you cheapest call charge?

(a) Aircel

(b) Airtel

(c) BSNL

(d) Idea

(e) MTS

(f) Reliance

(g) Vodafone [

(h) Tata Indicom[

98

LIST OF PEOPLE CONTACTED

Mohit Jain..9958256813
Vibhor Rai..9871716214
Nikhil Nair.9540805050
Nitin...7503627254
Parth Khanna..9582587576
Pawan.9868256845
Puneet Batra...9312686678
Rakhi..9891600171
Renu Taneja...9868002865
Shariq.9013689880
PK Satyarthi...9891491391
PN Sharma.....9654770850
Praveen Verma...........9112575999
Rajendra Gopal..9312269197
Rajendra DDA (JE)........9718907014
Ram Charan Gujrati.......9212265666
Ravikanth.......9871836400
Rishabh Toshniwal.........9811639928
R.K. Rastogi...9015691237
Mukesh Rohilla..9810496183
Sandeep Dixit.....9818886457
Sandhu....9891846714
Sangeeta Jain..9910701963
Ashutosh Narang9312221558
Beena Pandey.9654499885
Chaitanya...9810348390
Chetan....9716705968
Divya Bhandari..9560763062
Gagan Mohta......9811419608
Himanshu Goyal9999939479
Himanshu Sharma..9811243175
Isha Sharda.9871889858
Joy..9971944975
Khushboo Aggarwal..9868782705
Komal Aggarwal9873579280
Kunal Chauhan...9811895996
Kunal Jain..9582537627
Lakshay..9718650149
99

Madhvi Sharma..9953782473
Mayank..9871770610
Nikhil Mittal...9999114277
Nitish Choudhary...9716930464
Nitish Nair..9310436188
Priyanka Arora...9716716820
Puneet Pal...9873639942
Rahul Dedha...8750306223
Rameez Ahmad..9654424233
Ritika Thakur.8459755605
Ritvij Juglani..9899706026
Rohit Saklani..7838374407
Sarvesh Waran...9953175251
Satpal..9711547174
Saurabh Verma...8800442612
Shashank Rajput.9716016316
Shubham Gupta..9311291299
Sumit Kumar Debnath...9899526079
Sumit Kumar..9216837838
Surbhee Jain...8802280606
Sushmita Roy.9899984589
Vishal.9250175129
AP Sharma.9891712006
Akshay Mahendru.9910512261
Anju Sivan.9999788491
Hemraj9868241130
Indu Nayar.........9810672862
Kailash Katyal....9810384691
Kamal Gupta..9891271456
Kiran Sharma.....9868187543
Mukesh Gaur......9868282277
Naveen Kadiyal......9868821420
Pawan.9868256845
Puneet Batra...9312686678
Rakhi..9891600171
Renu Taneja...9868002865
Shariq.9013689880
Abhishek Mishra....9811134320
Srishti Khanna...9868028425
Vasundhara Kaushik.9868372987
Swati Lekha Dutta9899337990
Abhishek Mudgal..8010529197
100

Gajendra Negi....9868277502
Anil Kumar Sharma...8860210663
Anoop Upadhya.9868844794
Anurag Mishra.......9990926909
JK Arora.9868134242
Bhavesh Gupta...9811706855
Brijesh Upadhya.9868137700
Devender9958693219
Dilip Aggarwal...9717494423
Divesh Tripathi....01122792186
Dr. Anand Chatterjee...01332285347
GV Rayudu....9868122421
Ram singh..............9416208990
Hemant Batra.....9871246223
Cp kaushik.....9868845387
Neelam kaushik..8800639005
Surbhee Lata......9899516837
VP Kaushik....9868802372
Shubham Lata........9999821781
OP Sehgal.....9811841774

101