PROJECT REPORT

ON

“A STUDY ON CONSUMER BEHAVIOUR OF HATHWAY

BROADBAND SERVICES, BANGALORE”

SUBMITTED IN PARTIAL FULFILLMENT OF BACHELOR OF

BUSINESS MANAGEMENT DEGREE COURSE OF BANGALORE
UNIVERSITY

2010-2011

BY

SANDEEP.B

Reg No.08YAC08165

UNDER GUIDANCE OF

MS. RAJANI KORAH

GAIN MORE KNOWLEDGE

REACH GREATER HEIGHTS

PRESIDENCY COLLEGE, KEMPAPURA, HEBBAL,

BANGALORE-560024
 DECLARATI0N

I hereby declare that this titled as “A STUDY ON CONSUMER

BEHAVIOUR OF HATHWAY BROADBAND SERVICES,

BANGALORE” is my original work under the guidance of Ms.Rajani

Korah, towards the partial fulfilment of the requirements for BBM course of

Bangalore University. This has not been submitted earlier for award of any other

degree by Bangalore University or any other University.

DATE: NAME: SANDEEP.B

PLACE: BANGALORE REG NO: 08YAC08165

 ACKNOWLEDGEMENT

It gives me tremendous pleasure in bringing out this project ENTITLED “A

STUDY ON CONSUMER BEHAVIOUR OF HATHWAY BROADBAND
SERVICES, BANGALORE” taken up during my final year BBM degree course.
I am thankful to Mr. MUDDU VINAY Principal and Mr. PRADEEP SHINDEY
Head of Dept of Presidency College for granting me permission for this work
and the help extended to me during the course of this project.

I express my deep gratitude and indebtedness towards my guide MS. Rajani

Korah for her valuable guidance and assistance through stimulating discussion
during the course of this project work.

I am deeply indebted to Mr.Ashoka Reddy, Sales Manager of Hathway Cable

and Datacom Ltd.,for giving me the opportunity to undertake this project work
in their esteemed company. Their valuable guidance has been at most useful.

Last but not the least I would like to thank my parents, friends and all other
respondents for co-operating with me in this work during my study and making
this a successful one.

NAME: SANDEEP.B
REG NO: 08YAC08165

1. CHAPTER 1- INTRODUCTION 1-38

 This chapter contains introduction to Marketing,
Meaning, Definition, Importance and other relevant
aspects of Consumer Behaviour , the theoretical
background to Telecom Industry till date.
2. CHAPTER 2- RESEARCH DESIGN 39-51
 Statement of problem
 Objectives of study
 Scope of study
 Operational Definitions
 Research Methodology
 Tools of Data collection
 Sample Design
 Plan of Analysis
 Limitations of the study
 Overview of Chapter scheme
3. CHAPTER 3- COMPANY PROFILE 52-81
This chapter contains the historical background of
the company, company vision, objectives, and
SWOT analysis.
4. CHAPTER 4- DATA ANALYSIS AND 82-121
INTERPRETATION
Analysis and interpretation from the data collected
through questionnaires, Tables and graphs
representing it.
5. CHAPTER 5- SUMMARY OF FINDINGS, 122-127
CONCLUSIONS AND SUGGESTIONS
This chapter contains the findings drawn from the
study.
6. CHAPTER – SUGGESTIONS 128
This chapter consists some suggestions to the
company.
7. ANNEXURE
This chapter contains Questionnaire.
8. BIBLIOGRAPHY
Name of the books, author, magazines, websites.
 INDEX OF THE TABLES

TABLE TABLE NAMES PAGE NO

NO
1. Table showing the profile of the respondents based 82
on age

2. Table showing the profile of the respondents based 84

on gender

3. Table showing the occupation of respondents 86

4. Table showing the annual income group of 88

respondents

5. Table showing the respondents awareness of 90

Hathway broadband service

6. Table showing the sales promotional techniques 92

which attracts customers

7. Table showing the number of broadand connections 94

respondents using

8. Table showing the respondents monthly expenditure 96

on broadband

9. Table showing the broadband plan of the respondents 98

10. Table showing the respondents rating the Hathway 100

service provider

11. Table showing the factors responsible for buying 102

Hathway broadband connection

12. Table showing the source of awareness of Hathway 104

13 Table showing the satisfaction level of respondents 106
with respect to after sales service

14. Table showing the frequency of breakdown of the 108

broadband

15. Table showing the respondents opinion and level of 110

satisfaction about the company taking action towards
complaints lodged by the customers

16. Table showing the respondents opinion about the 112

major barriers for purchase of broadband service

17. Table showing the respondents willingness to pay 114

more for high speed internet

18. Table showing the respondents usage of broadband 116

technology

19. Table showing primary usage of broadband 118

application

20. Table showing any respondents issues with Hathway 120

broadband pricing
 INDEX OF THE GRAPHS
GRAPH GRAPH NAMES PAGE NO
NO
1. Graph showing the profile of the respondents based 83
on age

2. Graph showing the profile of the respondents based 85

on gender

3. Graph showing the occupation of respondents 87

4. Graph showing the annual income group of 89

respondents

5. Graph showing the respondents awareness of 91

Hathway broadband service

6. Graph showing the sales promotional techniques 93

which attracts customers

7. Graph showing the number of broadand connections 95

respondents using

8. Graph showing the respondents monthly expenditure 97

on broadband

9. Graph showing the broadband plan of the 99

respondents

10. Graph showing the respondents rating the Hathway 101

service provider

11. Graph showing the factors responsible for buying 103

Hathway broadband connection

12. Graph showing the source of awareness of Hathway 105

13 Graph showing the satisfaction level of respondents 107

 with respect to after sales service

14. Graph showing the frequency of breakdown of the 109

broadband

15. Graph showing the respondents opinion and level of 111

satisfaction about the company taking action towards
complaints lodged by the customers

16. Graph showing the respondents opinion about the 113

major barriers for purchase of broadband service

17. Graph showing the respondents willingness to pay 115

more for high speed internet

18. Graph showing the respondents usage of broadband 117

technology

19. Graph showing primary usage of broadband 119

application

20. Graph showing any respondents issues with Hathway 121

broadband pricing
 CHAPTER 1
INTRODUCTION
INTRODUCTION TO MARKETING

Marketing is the process of performing market research, selling products and/or

services to customers and promoting them via advertising to further enhance

sales. It generates the strategy that underlies sales techniques, business

communication, and business developments. It is an integrated process through

which companies build strong customer relationships and create value for their

customers and for themselves.

Marketing is used to identify the customer, to satisfy the customer, and to keep

the customer. With the customer as the focus of its activities, it can be concluded

that marketing management is one of the major components of business

management. Marketing evolved to meet the stasis in developing new markets

caused by mature markets and overcapacities in the last 2-3 centuries. The

adoption of marketing strategies requires businesses to shift their focus from

production to the perceived needs and wants of their customers as the means of

staying profitable.

The term marketing concept holds that achieving organizational goals depends

on knowing the needs and wants of target markets and delivering the desired

satisfactions. It proposes that in order to satisfy its organizational objectives, an

organization should anticipate the needs and wants of consumers and satisfy

these more effectively than competitors.

An orientation, in the marketing context, related to a perception or attitude a

firm holds towards its product or service, essentially concerning consumers and

end-users. Throughout history, marketing has changed considerably in time with

consumer tastes.

Contemporary approaches

Recent approaches in marketing include relationship marketing with focus on

the customer, business marketing or industrial marketing with focus on an

organization or institution and social marketing with focus on benefits to

society. New forms of marketing also use the internet and are therefore called

internet marketing or more generally e-marketing, online marketing, search

engine marketing, desktop advertising or affiliate marketing. It attempts to

perfect the segmentation strategy used in traditional marketing. It targets its

audience more precisely, and is sometimes called personalized marketing or

one-to-one marketing. Internet marketing is sometimes considered to be broad in

scope, because it not only refers to marketing on the Internet, but also includes

marketing done via e-mail and wireless media.

Customer orientation

A firm in the market economy survives by producing goods that persons are

willing and able to buy. Consequently, ascertaining consumer demand is vital

for a firm's future viability and even existence as a going concern. Many

companies today have a customer focus (or market orientation). This implies

that the company focuses its activities and products on consumer demands.

Generally, there are three ways of doing this: the customer-driven approach, the

market change identification approach and the product innovation approach.

In the consumer-driven approach, consumer wants are the drivers of all strategic

marketing decisions. No strategy is pursued until it passes the test of consumer

research. Every aspect of a market offering, including the nature of the product

itself, is driven by the needs of potential consumers. The starting point is always

the consumer. The rationale for this approach is that there is no reason to spend

R&D funds developing products that people will not buy. History attests to

many products that were commercial failures in spite of being technological

breakthroughs. A formal approach to this customer-focused marketing is known

as SIVA (Solution, Information, Value, Access). This system is basically the

four Ps renamed and reworded to provide a customer focus.

The SIVA Model provides a demand/customer-centric alternative to the well-

known 4Ps supply side model (product, price, placement, promotion) of

marketing management.

Product Solution

Price Value

Place Access

Promotion Information

If any of the 4Ps were problematic or were not in the marketing factor of the

business, the business could be in trouble and so other companies may appear in

the surroundings of the company, so the consumer demand on its products will

decrease.

Organizational orientation

In this sense, a firm's marketing department is often seen as of prime importance

within the functional level of an organization. Information from an

organization's marketing department would be used to guide the actions of other

departments within the firm. As an example, a marketing department could

ascertain (via marketing research) that consumers desired a new type of product,
or a new usage for an existing product. With this in mind, the marketing

department would inform the R&D department to create a prototype of a

product/service based on consumers' new desires.

The production department would then start to manufacture the product, while

the marketing department would focus on the promotion, distribution, pricing,

etc. of the product. Additionally, a firm's finance department would be

consulted, with respect to securing appropriate funding for the development,

production and promotion of the product. Inter-departmental conflicts may

occur, should a firm adhere to the marketing orientation. Production may oppose

the installation, support and servicing of new capital stock, which may be

needed to manufacture a new product. Finance may oppose the required capital

expenditure, since it could undermine a healthy cash flow for the organization.

Marketing research

Marketing research involves conducting research to support marketing activities,

and the statistical interpretation of data into information. This information is

then used by managers to plan marketing activities, gauge the nature of a firm's

marketing environment and attain information from suppliers. Marketing

researchers use statistical methods such as quantitative research, qualitative

research, hypothesis tests, Chi-squared tests, linear regression, correlations,

frequency distributions, poison distributions, binomial distributions, etc. to

interpret their findings and convert data into information. The marketing

research process spans a number of stages, including the definition of a problem,

development of a research plan, collection and interpretation of data and

disseminating information formally in the form of a report. The task of

marketing research is to provide management with relevant, accurate, reliable,

valid, and current information.

A distinction should be made between marketing research and market research.

Market research pertains to research in a given market. As an example, a firm

may conduct research in a target market, after selecting a suitable market

segment. In contrast, marketing research relates to all research conducted within

marketing. Thus, market research is a subset of marketing research.

Market segmentation

Market segmentation pertains to the division of a market of consumers into

persons with similar needs and wants. For instance, Kellogg's cereals, Frosties

are marketed to children. Crunchy Nut Cornflakes are marketed to adults. Both

goods denote two products which are marketed to two distinct groups of

persons, both with similar needs, traits, and wants.

Market segmentation allows for a better allocation of a firm's finite resources. A

firm only possesses a certain amount of resources. Accordingly, it must make

choices (and incur the related costs) in servicing specific groups of consumers.

In this way, the diversified tastes of contemporary Western consumers can be

served better. With growing diversity in the tastes of modern consumers, firms

are taking note of the benefit of servicing a multiplicity of new markets.

Market segmentation can be defined in terms of the STP acronym, meaning

Segment, Target and Position.

Types of marketing research

Marketing research, as a sub-set aspect of marketing activities, can be divided

into the following parts:

 Primary research (also known as field research), which involves the

conduction and compilation of research for a specific purpose.

 Secondary research (also referred to as desk research), initially conducted

for one purpose, but often used to support another purpose or end goal.

By these definitions, an example of primary research would be market research

conducted into health foods, which is used solely to ascertain the needs/wants of

the target market for health foods. Secondary research in this case would be
research pertaining to health foods, but used by a firm wishing to develop an

unrelated product. Primary research is often expensive to prepare, collect and

interpret from data to information. Nevertheless, while secondary research is

relatively inexpensive, it often can become outdated and outmoded, given that it

is used for a purpose other than the one for which it was intended. Primary

research can also be broken down into quantitative research and qualitative

research, which, as the terms suggest, pertain to numerical and non-numerical

research methods and techniques, respectively. The appropriateness of each

mode of research depends on whether data can be quantified (quantitative

research), or whether subjective, non-numeric or abstract concepts are required

to be studied (qualitative research).

There also exist additional modes of marketing research, which are:

 Exploratory research, pertaining to research that investigates an

assumption.

 Descriptive research, which, as the term suggests, describes "what is".

 Predictive research, meaning research conducted to predict a future

occurrence.

 Conclusive research, for the purpose of deriving a conclusion via a

research process.
Marketing planning

The marketing planning process involves forging a plan for a firm's marketing

activities. A marketing plan can also pertain to a specific product, as well as to

an organization's overall marketing strategy. Generally speaking, an

organization's marketing planning process is derived from its overall business

strategy. Thus, when top management are devising the firm's strategic direction

or mission, the intended marketing activities are incorporated into this plan.

There are several levels of marketing objectives within an organization. The

senior management of a firm would formulate a general business strategy for a

firm. However, this general business strategy would be interpreted and

implemented in different contexts throughout the firm.

Promotion (marketing)

Promotion is one of the four elements of marketing mix (product, price,

promotion, distribution). It is the communication link between sellers and buyers

for the purpose of influencing, informing, or persuading a potential buyer's

purchasing decision. Fundamentally, however there are three basic objectives of

promotion. These are:

 1. To present information to consumers as well as others

2. To increase demand

3. To differentiate a product.

There are different ways to promote a product in different areas of media.

Promoters use internet advertisement, special events, endorsements, and

newspapers to advertise their product. Many times with the purchase of a

product there is an incentive like discounts, free items, or a contest.

Marketing strategy

The field of marketing strategy encompasses the strategy involved in the

management of a given product. A given firm may hold numerous products in

the marketplace, spanning numerous and sometimes wholly unrelated industries.

Accordingly, a plan is required in order to effectively manage such products.

Evidently, a company needs to weigh up and ascertain how to utilize its finite

resources. For example, a start-up car manufacturing firm would face little

success should it attempt to rival Toyota, Ford, Nissan, Chevrolet, or any other

large global car maker. Moreover, a product may be reaching the end of its life-

cycle. Thus, the issue of divest, or a ceasing of production, may be made. Each

scenario requires a unique marketing strategy. Listed below are some prominent

marketing strategy models.

CONSUMER BEHAVIOUR

In order to develop a framework for the study consumer behaviour it is helpful

to begin by considering the evolution of the field of consumer research and the

different paradigms of thought that have influenced the discipline. As described

here, a set of dimensions can be identified in the literature, which can be used to

characterize and differentiate the various perspectives on consumer research.

It is argued that consumer behaviour itself emerged as a distinct field of study

during the 1960s; and is characterized by two broad paradigms, the positivist

and the non-positivist. The positivist paradigm encompasses the economic,

behavioural, cognitive, motivational/trait/attitudinal, and situational

perspectives; these perspectives are referred to as the traditional perspectives as

they pre-date the development of the non-positivist paradigm. The positivist

paradigm, which is still the dominant paradigm, emphasizes the supremacy of

human reason and that there is a single, objective truth that can be discovered by

science. This paradigm regards the world as a rational and ordered place with a

clearly defined past, present, and future. The assumption of rationalism is

therefore fundamental to the traditional perspective.

The opposing, non-positivist paradigm, envelops the interpretive and

postmodern perspectives, which have emerged more recently during the period
post-1980 to date. The proponents of this emerging perspective argue that

positivism overemphasizes the rational view and the ideology of a homogenous

social culture and thereby denies the complex social and cultural world in which

consumers live. This paradigm instead stresses, the importance of symbolic and

subjective experience and the idea that consumers construct meanings based on

unique and shared cultural experiences, and thus there can be no single unified

world view.

Unsurprisingly, the two paradigms differ in their views on the benefits derived

from consumption and the objectives that underscore consumer research. The

traditional, positivist perspective takes a very utilitarian approach to the benefits

from consumption. While the non-positivist perspectives place much greater

emphasis on the symbolic dimensions of choice. The objective of non-positivist

research endeavor is to achieve a better understanding of consumer behaviour

with no specific intent to influence consumer processes. Conversely, outcomes

of positivist research are directed toward advancing the goals of marketing

practice.

Consumer behavior theories

The term consumer behavior may be defined as the behaviour that consumer

displays in searching for purchasing, using, evaluating, producing, services and

ideas which they expect will satisfy their needs. In other words, “It is a study of

physiological, social, physical, behaviors of all potential customer as they

become aware of evaluation, purchase and consumption and tell other about

products and services”.

Consumer perception and consumer behavior

According to Rice (1993), perception is the initiator of behaviour. It can also be

seen as a process of information extraction. Perception is the process by which

an individual selects, organizes, and interprets information inputs to create a

meaningful picture (Kotler, 2000). Different people tend to perceive quite

differently even when they are exposed to the same reality. A set of factors, e.g.

individual responses, determine an individual’s perception process and lead to

individual differences. The most important is that people’s perceptions are often

more important than the reality in marketing (Kotler, 2000).

The study of customer behaviour provides a sound basis for identifying and

understanding the factors that influence consumers purchase on line. Schiffman

and Kanuk (2000) state that the behaviour that consumers display in searching,

purchasing, and evaluating products/services is those that they expect to fulfill

their needs. Although perception and behaviour are typically treated as two

completely separate phenomena, i.e. the input and output respectively, it has

been suggested that perception and behaviour are in fact two sides of the same
phenomenon and are closely related to each other (Rice, 1993). In order to

understand what customer perceive and how they act to affect their perceptions,

study of perception and behaviour should be treated as one integral part.

Consumer decision process

At present, the consumer decision process model has been well accepted. This

model of purchase as decision process is explained in more detail by Thorelli et

al.(1975). Thorelli’s decision model illustrates the type and shows there are a

series of semi-discrete steps which take place over time for the buyers and

purchasers.

Predispositions (Before Purchase)

According to Thorelli et al (1975), the prospective buyer possesses a certain

stock of cognitive content, including his own personality or self-concept,

attitudes and opinions both in general and on specific products, and stored

information and past experience. This stock has been formed as a result of his

interaction with his environment over time, and it will help determine the

environment in which he places himself in the future as well as influence his

perceptions of that environment.

Product Need
As a result of either cognitive activity or some environmental stimulus, the

buyer recognizes a need which is capable of being satisfied by a product or

service. In other words, the need is often triggered by internal or external

stimuli. Some authors also take this need recognition stage as the entry point.

Chaston (2001) argues that the potential consumer will not implement any of the

other steps in the buying process until need recognition has happened.

External Search

Thorelli et al (1975) describe that this stage represents all search of the external

environment for alternative solutions as well as for information helpful in

evaluating these alternatives. The search for information occurs on an internal

and external basis (Gilbert, 1999). The internal search for information from

previous experience might be relevant to the present purchase situation. The

extent and nature of external search for information likely in any given purchase

has been the subject of a great deal of research. When searching for information

in the external environment (e.g., friends and family), consumers focus on those

relevant attributes that are available and are diagnostic (Dick et al., 1990).

Evaluation of Alternatives

This stage consists of the physical and cognitive activities involved in

comparing alternatives on the basis of information gathered from external search

above.
According to Kotler (2000), the consumer arrives at attitudes toward the various

brands through an attribute evaluation procedure and most buyers consider

several attributes in their purchase decision. These attributes used by consumers

for evaluation are also called choice criteria. Jobber (2001) has made a good

summary of these choice criteria. In fact, consumers attempt to optimize the

trade-off between product benefits, product costs, the desired personal utilities

and other variables.

Purchase Activity

Purchase activity involves the actual final decision and physical activities

involved in making (or not making) the purchase. This stage includes the actual

transaction. However, as suggested by Kotler (2000), perceived risks of a

consumer can heavily influence his decision to modify, postpone, or avoid a

purchase decision. Therefore it is necessary for marketers to understand factors

that might provoke perceived risk in consumers and work out solutions to reduce

that.

Post Purchase Behaviour

This step is concerned primarily with the buyer’s use of the product purchased.

After purchasing the product, the consumer will experience some level of

satisfaction or dissatisfaction which will influence a consumers’ subsequent

behaviour. Dissatisfied consumers may abandon or return the product, they may

even complain to the other group (Kotler, 2000). It is clear that satisfactions and

dissatisfactions created by product performance will be important determinants

of attitudes and information stored as inputs to future purchase decisions.

Predispositions (After Purchase and Use)

This stage suggests that following the purchase process, the buyer (or non-

buyer) is left with cognitive content which may be quite different from that

which was present at the beginning of the process. Buyers may change their

attitudes, information and experience due to reasons of time and events. All of

these may serve to change substantially the nature of the decision process for

future purchases of the same type.

FACTORS AFFECTING CONSUMER BEHAVIOUR-

Consumer behavior refers to the selection, purchase and consumption of goods

and services for the satisfaction of their wants. There are different processes

involved in the consumer behavior. Initially the consumer tries to find what

commodities he would like to consume, then he selects only those commodities

that promise greater utility. After selecting the commodities, the consumer

makes an estimate of the available money which he can spend. Lastly, the

consumer analyzes the prevailing prices of commodities and takes the decision

about the commodities he should consume. Meanwhile, there are various other
factors influencing the purchases of consumer such as social, cultural, personal

and psychological. The explanation of these factors is given below.

1. Cultural Factors

Consumer behavior is deeply influenced by cultural factors such as: buyer

culture, subculture, and social class.

• Culture

Basically, culture is the part of every society and is the important cause of

person wants and behavior. The influence of culture on buying behavior varies

from country to country therefore marketers have to be very careful in analyzing

the culture of different groups, regions or even countries.

• Subculture

Each culture contains different subcultures such as religions, nationalities,

geographic regions, racial groups etc. Marketers can use these groups by

segmenting the market into various small portions. For example marketers can

design products according to the needs of a particular geographic group.

• Social Class

Every society possesses some form of social class which is important to the

marketers because the buying behavior of people in a given social class is

similar. In this way marketing activities could be tailored according to different

social classes. Here we should note that social class is not only determined by
income but there are various other factors as well such as: wealth, education,

occupation etc.

2. Social Factors

Social factors also impact the buying behavior of consumers. The important

social factors are: reference groups, family, role and status.

• Reference Groups

Reference groups have potential in forming a person attitude or behavior. The

impact of reference groups varies across products and brands. For example if the

product is visible such as dress, shoes, car etc then the influence of reference

groups will be high. Reference groups also include opinion leader (a person who

influences other because of his special skill, knowledge or other characteristics).

• Family

Buyer behavior is strongly influenced by the member of a family. Therefore

marketers are trying to find the roles and influence of the husband, wife and

children. If the buying decision of a particular product is influenced by wife then

the marketers will try to target the women in their advertisement. Here we

should note that buying roles change with change in consumer lifestyles.

• Roles and Status

Each person possesses different roles and status in the society depending upon

the groups, clubs, family, organization etc. to which he belongs. For example a
woman is working in an organization as finance manager. Now she is playing

two roles,

one of finance manager and other of mother. Therefore her buying decisions will

be influenced by her role and status.

3. Personal Factors

Personal factors can also affect the consumer behavior. Some of the important

personal factors that influence the buying behavior are: lifestyle, economic

situation, occupation, age, personality and self concept.

• Age

Age and life-cycle have potential impact on the consumer buying behavior. It is

obvious that the consumers change the purchase of goods and services with the

passage of time. Family life-cycle consists of different stages such young

singles, married couples, unmarried couples etc which help marketers to develop

appropriate products for each stage.

• Occupation

The occupation of a person has significant impact on his buying behavior. For

example a marketing manager of an organization will try to purchase business

suits, whereas a low level worker in the same organization will purchase rugged

work clothes.

• Economic Situation
Consumer economic situation has great influence on his buying behavior. If the

income and savings of a customer is high then he will purchase more expensive

products. On the other hand, a person with low income and savings will

purchase inexpensive products.

• Lifestyle

Lifestyle of customers is another import factor affecting the consumer buying

behavior. Lifestyle refers to the way a person lives in a society and is expressed

by the things in his/her surroundings. It is determined by customer interests,

opinions, activities etc and shapes his whole pattern of acting and interacting in

the world.

• Personality

Personality changes from person to person, time to time and place to place.

Therefore it can greatly influence the buying behavior of customers. Actually,

Personality is not what one wears; rather it is the totality of behavior of a man in

different circumstances. It has different characteristics such as: dominance,

aggressiveness, self-confidence etc which can be useful to determine the

consumer behavior for particular product or service.

4. Psychological Factors

There are four important psychological factors affecting the consumer buying

behavior. These are: perception, motivation, learning, beliefs and attitudes.

• Motivation

The level of motivation also affects the buying behavior of customers. Every

person has different needs such as physiological needs, biological needs, social

needs etc. The nature of the needs is that, some of them are most pressing while

others are least pressing. Therefore a need becomes a motive when it is more

pressing to direct the person to seek satisfaction.

• Perception

Selecting, organizing and interpreting information in a way to produce a

meaningful experience of the world is called perception. There are three

different perceptual processes which are selective attention, selective distortion

and selective retention. In case of selective attention, marketers try to attract the

customer attention. Whereas, in case of selective distortion, customers try to

interpret the information in a way that will support what the customers already

believe. Similarly, in case of selective retention, marketers try to retain

information that supports their beliefs.

• Beliefs and Attitudes

Customer possesses specific belief and attitude towards various products. Since

such beliefs and attitudes make up brand image and affect consumer buying

behavior therefore marketers are interested in them. Marketers can change the

beliefs and attitudes of customers by launching special campaigns in this regard.

INDUSTRY PROFILE

Indian Telecom Industry

The rapid growth in Indian telecom industry has been contributing to India’s

GDP at large. Telecom industry in India started to set up in a phased approach.

Privatization was gradually introduced, first in value-added services, followed

by cellular and basic services. Telecom Regulatory Authority of India (TRAI),

was established to regulate and deal with competition (the service providers).

This gradual and thoughtful reform process in India has favored industry

growth. Upcoming services such as 4G and Wi Max will help to further augment

the growth rate. The Indian telecommunications industry is one of the fastest

growing in the world and India is projected to become the second largest

telecom market globally by 2010. This is evident from the facts of Telecom

Industry for example, India added 113.26 million new customers in 2008, the

largest globally. The country’s cellular base witnessed close to 50 per cent

growth in 2008, with an average 9.5 million customers added every month. This

would translate into 612 million mobile subscribers, accounting for a tele-

density of around 51 per cent by 2012. It is projected that the industry will

generate revenues worth US$ 43 billion in 2009-10. In this report we have tried

to capture most of the areas of Telecom Industry. Major highlights of the report
are History of Telecom Industry, Current Industry Analysis, Role of TRAI,

Spectrum allocation, FDI Regulation, Competitive advantages, Outsourcing in

Telecom, Emerging Technologies, Latest Innovation, and Growth Trends,

Mergers and Acquisitions.

The Indian telecommunications has been zooming up the growth curve at a

feverish pace, emerging as one of the key sectors responsible for India's

resurgent economic growth. India has surpassed US to become the second

largest wireless network in the world with a subscriber base of over 300 million

in April, according to the Telecom Regulatory Authority of India (TRAI).

The Indian Telecommunications network with 110.01 million connections is the

fifth largest in the world and the second largest among the emerging economies

of Asia. Today, it is the fastest growing market in the world and represents

unique opportunities for U.S. companies in the stagnant global scenario. The

total subscriber base, which has grown by 40% in 2005, is expected to reach 500

million in 2011. According to Broadband Policy 2004, Government of India

aims at 50 million broadband connections and 75 million internet connections

by 2011. The wireless subscriber base has jumped from 64 million in 2009 to 75

million in FY2010- 2011. In the last 3 years, two out of every three new

telephone subscribers were wireless subscribers. Consequently, wireless now

accounts for 54.6% of the total telephone subscriber base, as compared to only
40%. Wireless subscriber growth is expected to bypass 4 million new

subscribers per month by 2012. The wireless technologies currently in use are

Global System for Mobile Communications (GSM) and Code Division Multiple

Access (CDMA).

RURAL TELEPHONY

Rural India had 76.65 million fixed and Wireless in Local Loop (WLL)

connections and 551,064 Village Public Telephones (VPT) as on September

2008. Therefore, 92 per cent of the villages in India have been covered by the

VPTs. Universal Service Obligation (USO) subsidy support scheme is also

being used for sharing wireless infrastructure in rural areas with around 18,000

towers by 2012. It is believed that of the next 250 million people expected to go

mobile; at least 100 million will come from rural areas. Though the rural mobile

penetration is highest in Punjab (20.69 per cent), followed by Himachal Pradesh

(17.09 per cent), Kerala (10.63 per cent) and Haryana (10.20 per cent), most

companies are now sweating it out by hard selling their products and services in

the rural areas of the region. As a result, the geographical coverage of mobile

telephony in India has gone up from 13 percent, a couple of years ago, to 39

percent now.
Evolution of the industry-Important Milestones
YEAR
1851 First operational land lines were laid by the government near Calcutta
(seat
of British power)

1881 Telephone service introduced in India

1883 Merger with the postal system

1923 Formation of Indian Radio Telegraph Company (IRT)

1932 Merger of ETC and IRT into the Indian Radio and Cable
Communication
Company (IRCC)

1947 Nationalization of all foreign telecommunication companies to form the

Posts, Telephone and Telegraph (PTT), a monopoly run by the
government's Ministry of Communications

1985 Department of Telecommunications (DOT) established, an exclusive

provider of domestic and long-distance service that would be its own
regulator (separate from the postal system)

1986 Conversion of DOT into two wholly government-owned companies:

the
Videsh Sanchar Nigam Limited (VSNL) for international
telecommunications
and Mahanagar Telephone Nigam Limited (MTNL) for service in
metropolitan areas.

1997 Telecom Regulatory Authority of India created

1999 Cellular Services are launched in India. New National Telecom Policy
is adopted.
2000 DoT becomes a corporation, BSNL
MAJOR INVESTMENTS
The booming domestic telecom market has been attracting huge amounts of

investment which is likely to accelerate with the entry of new players and launch

of new services. Buoyed by the rapid surge in the subscriber base, huge

investments are being made into this industry.

 The Russian government is likely to pick up equity amounting to US$ 670

million-US$ 700 million in Sistema Shyam Tele Services Ltd (SSTL), a

joint venture between Russia-based telecom major Sistema and Shyam

Group in India, by the end of this financial year. SSTL is also planning to

invest US$ 5.5 billion over the next 5 years in India.

 Norway-based telecom operator Telenor has bought a 60 per cent stake in

Unitech Wireless for US$ 1.23 billion.

 Japanese telecom major NTT DoCoMo acquired a 27.31 per cent equity

capital of Tata Teleservices for about US$ 2.6 billion in November 2008.

 Bahrain's Batelco has signed a deal to buy 49 per cent in Chennai-based

S-Tel, a GSM service provider, for US$ 225 million.

 BSNL, India's leading telecom company in revenue terms, will put in

about US$ 1.16 billion in its WiMax project.

  Vodafone Essar will invest US$ 6 billion over the next three years in a bid

to increase its mobile subscriber base from 40 million at present to over

100 million.

 Telecom operator Aircel, which launched GSM mobile services in

Bangalore in February 2009, plans to invest US$ 220.58 million over the

next year to set up base stations across the state.

Some deals are discussed in detail in industry consolidation section.

KEY TRENDS IN TELECOM INDUSTRY

Mobile Number portability

One of the most frequent definitions that prevail in the telecom circles for

number portability is: "Number portability is a circuit-switch

telecommunications network feature that enables end users to retain their

telephone numbers when changing service providers, service types, and or

locations."

Why mobile number portability (MNP)? When fully implemented nationwide

by both wire line and wireless providers, portability will remove one of the most

significant deterrents to changing service, providing unprecedented convenience

for consumers and encouraging unrestrained competition in the

telecommunications industry. In short, this is the best method to increase the

efficiency of the service provider by increasing the competition, thereby

ensuring better services in all respects.

From the subscribers’ perspective, this is a deceptively simple and very

welcome change, because they can change wireless service providers without

worrying about notifying friends, family and business contacts that their

wireless number is changing. In addition, being able to ‘port’ a number from one

provider to another eliminates the hassle and expenses of changing business

cards, stationery, invoices and other materials for businesses.

From the wireless carrier’s perspective the change is anything, but simple.

Virtually all of wireless carriers’ systems are affected. Especially any system

that relies on mobile identity numbers (MINs) or mobile directory numbers

(MDNs) will be affected. Examples of critical systems and processes that would

be affected are: billing, customer service, order activation, call delivery, roamer

registration and support, short messages service center, directory assistance,

caller ID, calling name presentation, switches, maintenance and CSC systems,

home location registers (HLRs), and visiting location registers (VLRs).

INDUSTRY UPDATES

Consolidation in Industry

Telecom players are looking to tap into global funds to finance their aggressive

growth plans. This will result in partnerships joint ventures and equity sellout to
foreign players. New license holders will continue to look to sell their stake at a

premium. New policies will seek to curb this license arbitrage. Smaller players

with operations in only a few circles will find in difficult to compete with the

nationwide players. The industry may see consolidation with these smaller

operators being acquired by the larger ones. “Unbundling of the corporation”

will continue as companies will seek f or economies of scale and lower startup

cost by infrastructure sharing. 3G and WiMax license will spur M&A and

partnership activity.

Idea Cellular’s Acquisition of Spice Telecom

There were three transactions as part of this acquisition; acquisition of shares of

Spice, a non-compete fee and a capital infusion of about Rs 7300 crores received

from TM International Bhd (TMI). With respect to shares, Idea acquired 40.8%

stake of Spice Communications at Rs 77.30 a share for Rs 2,716 crore. There

was a share swap in which Spice shareholders got 49 Idea shares for every 100

Spice shares held. An additional Rs 544 crore was paid to the promoters of

Spice group as 'non-compete fee'. The deal was strategically important for Idea

Cellular as it was looking forward to transfer itself into a pan-India telecom

service provider. The spectrum auctioned by GoI is a scarce resource nowadays

and cost a premium. Also there’s restriction by TRAI with respect to number of

operators per telecom circle. So it makes sense to acquire a small telecom

operator. Small players like Spice Telecom operating at only a few

circles(Karnataka and Punjab) will find difficult to compete with the nationwide

players in the long run. So it was a win-win deal for both companies.

Vodafone’s entry into India

Vodafone paid a discounted price of $10.9 billion in cash for acquiring the 52%

stake held by Hutchison Telecom International (HTIL) in Indian mobile firm

Hutch-Essar. HTIL declared a special dividend of 6.75 HK dollars per share

following the completion of the formalities. The final price was a reduction of

$180 million from the originally agreed price of $11.08 billion. Vodafone is the

largest mobile telecommunications network company in the world. The deal

gave them access to one of the fastest growing mobile markets in the world.
Telenor-Unitech Deal

Norwegian Telecom major Telenor is in the process of acquiring controlling

stake of 67.25% in Unitech wireless via equity infusion. The enterprise

valuation of Unitech Wirelsss is about Rs 10,900 crore. As per the deal, Telenor

will infuse cash in four stages and at each phase, by increasing its stake in

Unitech Wireless. In the first phase, they got 33.5% ownership in Unitech

Wireless. In the second phase they completed the acquisition for a 49 per cent

stake in Unitech Wireless by paying Rs 1,130 crore for a further 15.5 per cent

stake in the company. The acquisition is expected to be completed by end of this

quarter.

TTSL – DoCoMo Deal.

Japanese carrier NTT DoCoMo acquired 26 per cent stake in Tata Teleservices

(TTSL). The Tata DoCoMo-branded GSM service has already started in

Southern India and gradually will be expanded nationwide. DoCoMo’s

international expansion plans have not always proven successful, with the firm

historically preferring to take small stakes in firms and then try to influence their

strategy. It has been less prepared to take majority stakes and impose its will, as

other leading carriers have chosen to do.

The difficulties faced by the firm in spreading its domestically successful i-

mode service internationally typify the obstacles it has faced overseas.

WithTata, DoCoMo had said “participating proactively in TTSL’s management

by providing human resources and technical assistance to help realise improved

network quality and the possible introduction of leading-edge, value-added

services.”

Bharti-MTN deal (in talks).

Recently Bharti Airtel has re-started its audacious merger bid with MTN that

could create a $61-billion transnational telecom goliath with combined revenues

of $20 billion and over 200 million subscribers across Africa, Asia and Middle

East, will be among the world's 10 biggest telecom companies. The deal could

be win-win for both parties. Bharti is under pressure in its home country due to

severe competition and looking forward to spread its risk across geographies.

Meanwhile, the African telecom operator is also encountering some of the

problems that its counterpart in India is confronting. MTN may have higher

ARPUs (in the range of $12-20), but they are also falling fast.

FUTURE TECHNOLOGY TRENDS

In this section we have listed down the future technologies which are in

roadmap and are speculated to make an impact on current business model of

telcos.

IP Multimedia Subsystem (IMS)

IP Multimedia Subsystem (IMS) is a generic architecture for offering

multimedia and voice over IP services, defined by 3rd Generation Partnership

Project (3GPP). IMS is access independent as it supports multiple access types

including GSM, WCDMA, CDMA2000, WLAN, Wire line broadband and other

packet data applications. IMS will make Internet technologies, such as web

browsing, e-mail, instant messaging and video conferencing available to

everyone from any location. It is also intended to allow operators to introduce

new services, such as web browsing, WAP and MMS, at the top level of their

packet-switched networks. IP Multimedia Subsystem is standardized reference

architecture. IMS consists of session control, connection control and an

applications services framework along with subscriber and services data. It

enables new converged voice and data services, while allowing for the

interoperability of these converged services between internet and cellular

subscribers. IMS uses open standard IP protocols, defined by the IETF. So users

will be able to execute all their services when roaming as well as from their

home networks. So, a multimedia session between two IMS users, between an

IMS user and a user on the Internet, and between two users on the Internet is

established using exactly the same protocol. Moreover, the interfaces for service

developers are also based on IP protocols. Some of the possible applications

where IMS can be used are:

  Presence services

 Full Duplex Video Telephony

 Instant messaging

 Unified messaging

 Multimedia advertising

 Multiparty gaming

 Video streaming

 Web/Audio/Video Conferencing

 Push-to services, such as push-to-talk, push-to-view, push-to-video

Effectively, IMS provides a unified architecture that supports a wide range of

IP-based services over both packet- and circuit-switched networks, employing a

range of different wireless and fixed access technologies. A user could, for

example, pay for and download a video clip to a chosen mobile or fixed device

and subsequently use some of this material to create a multimedia message for

delivery to friends on many different networks. A single IMS presence-and-

availability engine could track a user's presence and availability across mobile,

fixed, and broadband networks, or a user could maintain a single integrated

contact list for all types of communications. A key point of IMS is that it is

intended as an open-systems architecture: Services are created and delivered by

a wide range of highly distributed systems (real-time and non-real-time, possibly

owned by different parties) cooperating with each other. It is a different

approach to the more traditional telco architecture of a set of specific network

elements implemented as a single telco-controlled infrastructure.

4G or Fourth Generation Networks

4G or Fourth Generation is future technology for mobile and wireless

communications. It will be the successor for the 3Rd Generation (3G) network

technology. Currently 3G networks are under deployment. Approximately 4G

deployments are expected to be seen around 2010 to 2015. The basic voice was

the driver for second-generation mobile and has been a considerable success.

Currently , video and TV services are driving forward third generation (3G)

deployment. And in the future, low cost, high speed data will drive forward the

fourth generation (4G) as short-range communication emerges. Service and

application ubiquity, with a high degree of personalization and synchronization

between various user appliances, will be another driver. At the same time, it is

probable that the radio access network will evolve from a centralized

architecture to a distributed one. The evolution from 3G to 4G will be driven by

services that offer better quality (e.g. multimedia, video and sound) thanks to

greater bandwidth, more sophistication in the association of a large quantity of

information, and improved personalization. Convergence with other network

(enterprise, fixed) services will come about through the high session data rate. It
will require an always-on connection and a revenue model based on a fixed

monthly fee. The impact on network capacity is expected to be significant.

Machine-to-machine transmission will involve two basic equipment types:

sensors (which measure parameters) and tags (which are generally read/write

equipment). It is expected that users will require high data rates, similar to those

on fixed networks, for data and streaming applications. Mobile terminal usage

(laptops, Personal digital assistants, hand helds) is expected to grow rapidly as

they become more user friendly. Fluid high quality video and network reactivity

are important user requirements. Key infrastructure design requirements include:

fast response, high session rate, high capacity, low user charges, rapid return on

investment for operators, investment that is in line with the growth in demand,

and simple autonomous terminals. The infrastructure will be much more

distributed than in current deployments, facilitating the introduction of a new

source of local traffic: machine-to-machine.

 CHAPTER 2
RESEARCH DESIGN
INTRODUCTION

Hathway is a major cable television service operator in India that is based

in Mumbai. It has large operations in many cities, including Hyderabad,

Mumbai, Pune and Bangalore. It has diversified into providing internet via cable

and was one of the first to do so in Chennai. In India, it was the first company to

provide internet using the CATV network. The company has a 51 percent stake

in Divya Bhasker's Bhasker Multinet and in Gujarat Telelinks P L. This gives it

a strong position in Gujarat CATV. In 2006, Hathway launched first cable

operator to launch a digital platform in India.

TITLE OF THE STUDY

“A Study on Consumer Behaviour of HATHWAY BROADBAND

SERVICES, Bangalore.”
STATEMENT OF THE PROBLEM

Consumer behavior is the study of how people buy, what they buy, when

they buy and why they buy. It blends elements from psychology, sociology,

socio-psychology, anthropology and economics. It attempts to understand the

buyer decision-making process, both individually and in groups. It studies

characteristics of individual consumers such as demographics, psychographics,

and behavioral variables in an attempt to understand people's wants. It also tries

to assess influences on the consumer from groups such as family, friends,

reference groups, and society in general.

Problem recognition results when there is a difference between one's desired

state and one's actual state. Consumers are motivated to address this discrepancy

and therefore they commence the buying process.

OBJECTIVES OF THE STUDY

 The objective of the study is to understand the consumer’ pre, post, during

perception of broadband connection and consumer buying behaviour and

attitude for Hathway Broadband services.

 To Analyzing the satisfaction level of customers towards Hathway

Broadband service.

 To find out the consumer awareness and also creating an Awareness to

customers about the facilities in broadband connections and its new

products.

 To find out best sales promotional technique.

 To find out consumer needs and expectations.

 To understand the needs of different consumer segments.

SCOPE OF THE STUDY

This study includes Consumers response and awareness towards the brand,

products and services of Hathway Broadband. The results are limited by the

sample size 100 numbers and therefore the opinion of only selected customers is

taken into consideration. Mainly this study is conducted in Bangalore and the

scope is limited.
OPERATIONAL DEFINITIONS

1. Consumer- A Consumer is a broad label for any individuals or households

that use goods and services generated within the economy.

2. Consumer Behaviour- It is the study of when, why, how, and where

people do or do not buy a product.

3. Respondents- A person who replies to something, esp. one supplying

information for a survey or questionnaire or responding to an

advertisement.

4. Objective- An end that can be reasonably achieved within an expected

timeframe and with available resources.

5. Broadband- The term broadband refers to a telecommunications signal of

greater bandwidth, in some sense, than another standard or usual signal.

6. Service- A service is the intangible equivalent of an economic good.

REASEARCH METHODOLOGY

The research will be carried out in various phases that constitute an

approach of working from whole to part. It includes subsequent phases trying to

go deeper into the user’s psyche and develop a thorough understanding of what

a user looks for while buying a broadband service.

The first phase is completely internal where it is stormed over the most effective

route of action, considering that Hathway users in Bangalore are more in

number.

The second phase is with some respondents who will be interviewed with the

help of questionnaire keeping in mind the time and cost constraints.

TOOLS OF DATA COLLECTION

The information relevant for study was drawn from Primary data

collected through survey method, which alone was not sufficient. Hence

Secondary data was collected to study successfully.

Sources of Data collection

 Primary data- In order to find out customer satisfaction regarding bikes

of Royal Enfield Primary Data was collected by personally visiting the

dealerships and showrooms. With the help of a well laid questionnaire, I

took the feedback from the customers who were coming for the services

of their broadband. As well as i contacted some of the customers through

tele calling by taking the data about the customers from the customer data

register of the dealership. I interviewed them and discussed with the

employees at Hathway which helped me to prepare the research Report.

 Secondary data- The Secondary Data collection involved internet

search, browsing magazines, newspapers and articles and papers related to

the two wheeler industry in India. Numerous Journals and books related

to the topic were also browsed to understand the dynamics of the industry.
SAMPLE DESIGN

The research was carried out in various phases that constituted an

approach of working from whole to part. It included subsequent phases trying to

go deeper into the user’s psyche and develop a thorough understanding of what

an user looks for while buying a broadband service.

For the consumer behviour study a sample of 100 persons was chosen from the

Bangalore city. The sample was judgmental and methodology was random

sampling.

Size of Sample 100

Sampling technique Convenient Sampling method or

Random Sampling
Location from which samples were Bangalore city

taken

Plan of Analysis
  Raw Primary data has been collected with help of questionnaire. The raw

data has been tabulated with the help of table. From the tables, concept,

analysis and inferences are drawn which in turn was used for

interpretation. Based on, these charts were prepared to better pictorial

understanding of the study.

 From the set of inferences and interpretation, conclusion have been drawn

which is followed by suggestions, keeping the objectives in mind

throughout the study.

LIMITATIONS OF THE STUDY

Although all efforts were taken to make the result of survey as accurate as

possible the survey had the following constraints:

 Customers were not willing to give answers of the questions due to their

busy schedules.

 Few customers were not cooperating during the project survey. It was

quite difficult to collect necessary data.

 Due to the time constraint and other imperative workload during the

training period it could not be made possible to explore more areas of

concern pertaining to project study.

 The survey was carried out in some parts of Bangalore city, hence it

doesn’t reflect the entire market scenario DEL and DSL.

 This study is based on the prevailing customer’s satisfaction. But the

customer’s satisfaction may change according to time, fashion,

technology, development, etc.

 As per the population of the study is huge, the researcher has taken only

100 sample respondents.

  Method of data collection was through personal interview and therefore

bias becomes a major limitation.

 Owing to their pre occupation some customers were unable to answer the

complete questionnaire.

 Majority of the customer were too aggressive in nature.

OVERVIEW OF CHAPTER SCHEME

Chapter-1 Introduction- It’s all about the Introduction part. It mainly consists

of introduction to Marketing with its types, approaches, research and market

segmentation. Then comes introduction about Consumer Behaviour with its

steps, customer loyalty and concepts, handling customer complaints, how to deal

with dissatisfied customers and objectives of customer satisfaction program.

Later about Telecom industry till date, Indian telecom industry and its recent

trends.

Chapter-2 Research Design- It consists of the title of the study, statement of

problem, objectives and scope of the study, operational definitions, research

methodology, data collection, sample design, plan of analysis and finally the

limitations of the study.

Chapter-3 Company Profile- This chapter contains the historical background

of the company Hathway, company’s vision and objective, Hathway products,

organizational chart and SWOT analysis of Royal Enfield.

Chapter-4 Data Analysis and Interpretation- This chapter consists of the

analysis and interpretation from the data collected through questionnaires, tables

and graphs representing it.

Chapter-5 Findings and Conclusion- This chapter contains the findings drawn

from the study and final conclusion about the whole project. Also few

suggestions are posted.

Chapter-6 Suggestions- This chapter contains the suggestions given to the

company.
 CHAPTER 3
COMPANY PROFILE
HISTORY OF THE HATHWAY COMPANY

India’s cable television industry has grown rapidly

since its inception almost twenty years ago, spurred

by entrepreneurship and innovation from

distribution platforms and content providers. Cable television is now established

as a mass medium for entertainment and information, available in more than 100

million consumer households across India. This represents 65 per cent of

television-owning homes in the country. According to the MPA report, India

remains the second largest market for cable television in the world, trailing only

China in terms of subscriber mass, and is amongst the highest in the world in

terms of subscriber penetration.

The India cable industry has grown from a highly fragmented industry to a more

organized industry with establishment of larger cable television operators.

Further, Cable TV will continue to be India’s dominant platform for pay-TV

distribution.

Competition from emerging digital direct-to-home or “DTH” satellite pay-TV

networks, which have grown in scale over the past five years is another key

trend in the Indian cable television industry. Concurrently, due to continued

growth of the national economy in real terms and rising household incomes

resulting in further enhanced affordability, there is increasing consumer demand

for more entertainment and information services from television distribution

networks and communications platforms. To benefit from this demand upswing,

incumbent cable operators are investing to upgrade existing distribution

infrastructure and technology by quickening the deployment of digital set top

boxes, consolidating last mile networks and offering new broadband and

interactive services. This gradual structural transformation is similar to what has

already been witnessed in

developed markets such as USA and Europe.

Internet services in India started with dial up access, where speeds were limited

to approximately 56 kbps. However, due to the growing popularity of certain

high bandwidth internet applications, such as internet telephony (introduced on

April
2002), music and video download as well as online gaming, internet services

providers (“ISPs”) started providing “always on” high speed internet access

with speeds starting from 64kbps. The Government recognizes that deeper

penetration of broadband and Internet is essential and will be the catalyst for

economic growth and modernization. India has approximately 16.18 million

internet households. Internet subscribers have grown at the average rate of 25 %

per annum over the last

five years. However, the total internet penetration in India is low and represents

less than 7 % of all households and this offers significant growth potential. As

per TRAI report broadband internet subscribers at 8.77 million comprise 54.2%

of internet subscribers on 31st March 2010.

BUSINESS OVERVIEW

We are the leading cable television services provider in India, as well as one of

the leading cable broadband services providers. We offer cable television

services across 125 cities and towns and high-speed cable broadband services

across 18 cities. We have won a number of awards for our cable television

services such as being named “Best cable operator of the year” by the Indian

Telly Awards in six out of the last seven years. Our Company has established

19 digital head-ends in the country.

We hold a pan-India ISP license and were the first cable television services

provider to offer broadband internet services. We are currently India’s largest

cable broadband services provider, with approximately 1 million two-way

broadband enabled homes passes, as on March 31, 2010. As of March 31, 2010,

our subscriber base constituted approximately 52 % of the total cable broadband

market in India.

In addition to our cable television and broadband service offerings, we also

generate advertising and airtime revenue from advertisements aired for and on

behalf of channels owned by third parties, such as the Hindi movie channel,

Cine Channel, and the music channel, I TV.

BUSINESS STRATEGY

PRIMARY, SECONDARY AND BROADBAND SUBSCRIBER

We have a track record of growth through the acquisition of smaller Multi

system Operator (MSO’s), Independent Cable Operator (ICO’s) and Local

Cable Operator (LCO’s). This consolidation has provided us with a strong

presence in the cable television market and a large analog subscriber base. On

such acquisition, when we convert secondary analog subscribers to primary

subscribers, we improve the quality of the connection by upgrading the “last

mile connection” and often are able to convert our analog subscribers into

digital subscribers. As a result, we are able to charge higher subscription fee.

We also focus on primary subscribers for cross-selling our broadband service,

which provides us with an opportunity to increase revenues from our broadband

services with a comparatively low capital expenditure. Our broadband

subscribers primarily comprise domestic households. We also provide services

to corporate subscribers.

ACQUISITIONS

Our growth strategy has been driven by the acquisition of majority interests in

established MSOs, ICOs and LCOs to expand our geographic reach. These

acquisitions have been funded through a combination of equity financing, debt

financing and internal accruals. Our strategy is to continue to acquire the “last

mile” connections from LCOs and selected MSOs and ICOs. These acquisitions

will be funded by the IPO proceeds received during the year.

DIGITALISATION

As a part of our strategy, we intend to focus on rolling out digital services to our

customers. Digital cable television requires a set top box to be provided to the

subscriber. The set top box is provided with an encryption technology which is

required to decode the encrypted signals transmitted by us. We purchase the set

top boxes and encryption technology from third party suppliers.

In addition to the set top boxes we also require smart cards and other digital

compression equipments and infrastructure such as fibre coaxial cable.

Typically, we provide the set top box to the end customers and seek to recover a

portion of the cost of such set top box from the end customers.

BROADBAND BUSINESS
India has low Internet penetration rate which offers a significant growth

potential over time. High speed broadband is available only in limited pockets

of larger cities. With our widespread cable infrastructure network of an

estimated 15000 kms, we have access to a large potential broadband subscriber

base. Switching from dial-up internet connections and personal computer

penetration are key factors affecting the increase in our broadband subscribers.

REGULATION

Our business is subject to regulation by the Telecom Regulatory Authority of

India (“TRAI”), the Ministry of Information and Broadcasting (“MIB”), and

Department of Telecommunication (“DoT”). As per the TRAI’s

recommendations dated August 5, 2010, it is proposed to implement digital

addressable Cable TV systems in India. Digital addressable systems will enable

consumers to watch high quality digital television channels of their choice on a-

la-carte basis. Also digital systems have the capacity to deliver many more

channels to the consumers than analogue cable. The said implementation is

proposed to be completed by December 31, 2013 starting with the subscribers

residing in metros.

FINANCIAL REVIEW

The Authorised Share Capital of the Company has increased from Rs. 1,500

million to Rs. 2,000 million. During the year 11,501,788 Equity Shares of Rs.

10 each were issued on conversion of Fully & Compulsorily Convertible

Debentures (FCCD) as per the terms of the underlying agreements, at an

aggregate securities premium of Rs. 2,357,382,120. Further the Company also

came up with Initial Public Offer (IPO) of 20,000,000 Equity Shares of Rs. 10/-

each at a price of Rs. 240 including premium of Rs. 230 per share. The Shares

of the Company are listed on Bombay Stock Exchange Limited and The

National Stock Exchange of India Limited.

RISKS AND CONCERNS

MARKET RISK

We derive a significant portion of our subscription revenue from carriage and

placement fees. In the event of any decline in the growth of the broadcasting

business in India or if new channels are not introduced, our revenues may

decrease. Further, revenues from placement fees depend upon the availability of

frequencies. If the frequencies requested by a broadcaster has already been

provided to another, we may not be able to provide such broadcaster with the

same frequency, thereby adversely affecting our business and results of

operations. Our relationships with existing LCOs - To maintain our secondary

subscriber based, it is critical to maintain a healthy relationship with our LCOs

in order to avoid such LCOs from considering alternatives to our cable

television services; and Competition - Our cable television services business

faces competition from national cable television service providers as well as

providers of television services through alternative technology platforms, such

as DTH satellite television and IPTV. Our key competition for broadband
Internet access service is ADSL technology, provided by companies such as

BSNL/MTNL, Airtel, Tata Communication and Reliance.

INTEREST RATE RISK

As at March 31, 2010, all of our outstanding indebtedness, Rs. 3,995.26 million,

was subject to floating interest rates. As a result, our results of operations may

be materially affected by fluctuations in interest rates. We have not entered into

any hedging transactions with respect to interest rates. In the future, we plan to

incur fixed rate indebtedness rather than floating rate indebtedness.

HUMAN RESOURCES

An Orientation has been given to the personnel policy with emphasis on

performance. The Company believes that a motivated and empowered employee

base is essential in maintaining its competitive advantage. Thus the

management is dedicated to the development of the expertise and knowhow of

its employees and initiatives are taken to ascertain their levels of satisfaction.

CAUTIONARY STATEMENT

Statements in Management Discussion and Analysis describing the Company’s

objectives, projections, estimates and expectation may be “forward looking”

within the meaning of applicable laws and regulations. Actual results might

differ materially from those expressed or implied.

HATHWAY PRODUCTS

 BROADBAND INTERNET

Before Hathway appeared on the scene,

internet users were suffering the slow

speeds and unreliable connections that dial-

up modems could give. Hathway Broadband

Internet was the first Cable ISP in India. Our

high bandwidths allow users to use the web

the way it should be used, as a 365x24x7

business, communications and entertainment medium. Hathway provides this

service through its cable network on a subscriber's PC / Corporate LAN using a

cable modem / router. Hathway's fibre-optic backbone and its state-of-the-art

Internet Node and Data Centre make our network capable of reliable Internet

service as well as digital TV transmission.

High-speed surfing is now possible. Remaining connected 365x24x7 without

going through the hassle of disconnections and logins is another powerful

advantage. Broadband also frees up the telephone which was hitherto, engaged

for the internet. For businesses, Hathway Broadband Internet comes as a

tremendous productivity enhancer. Based on the DOCSIS (Data Over Cable

Services Interface Specifications) protocol, it provides a level of security equal

to or better than that provided by dedicated-line network access services, like

the telephone, ISDN or DSL. DOCSIS is the de facto standard for all

Broadband Internet deployments across the world. Hathway's customer service

is localised to each city and always on call. The helpdesks are manned and

active round the clock. With reliability and high speeds at economical prices,

we've changed the way India accesses the World Wide Web. Hathway

Broadband Internet services are currently offered in Mumbai, New Delhi,

Bangalore, Chennai, Hyderabad, Pune, Nashik, Ludhiana, Jalandhar, Mysore

and Baroda.

BENEFITS

 ALWAYS ON SERVICE

 UP TO 50 TIMES FASTER THAN DIAL UP MODEM

 MULTIPLE COMPUTERS CAN BE CONNECTED ON A SINGLE

DSL LINE

 DEDICATED CONNECTION AND SPEED

 ALLOWS USE OF PHONE/INTERNET SIMULTANEOUSLY

 DIGITAL CABLE TV
It was not too long back that the phrase 'digital age' was something one only

read in magazines. Not anymore. The digital revolution has transformed the

way we live and work today. And this is only the beginning. Hathway is

ushering in the benefits of new technologies into India. For the Cable TV

viewer that means many more choices, much more control and unmatched

quality. Viewers across the country can now enjoy their favourite

programmes in stereophonic sound and crystal clear images. The reasonable

price of the equipment only adds to the attraction.

More than 150 channels are on offer to begin with. They cover the entire

spectrum of television and radio programming including entertainment,

news, sports, movies and more. Interactive On-Screen Programming Guides

mean that program listings, advance information, reminders and parental

control are all available at your fingertips.

In the foreseeable future, one can expect the television to come out of its

existing avatar as a passive medium and enter the exciting new world of

electronic commerce and business. The technologies for this already exist

today and when complete convergence is achieved, Hathway will be at the

forefront of the revolution.

Digital Cable TV services have already been commercially launched in

Mumbai, New Delhi, Chennai, Pune, Bangalore and Hyderabad.The service

will reach other cities very soon.

 CABLE TV

Hathway is one of the fastest growing

Cable TV networks in the country. Our

partnerships with leading content providers

like STAR have given us the edge over our

competition. Today we offer a fantastic bouquet of over 90 channels to our

subscribers.

We operate in fourteen cities, namely, Mumbai, New Delhi, Chennai,

Bangalore, Mysore, Hyderabad, Pune, Nashik, Ludhiana, Jalandhar,

Vijayawada, Chandigarh, Mohali and Kanpur. Going forward, we propose to

extend our coverage to other towns and cities.

Technology has always been our strong suite. Hathway distributes its signals

through a world-class infrastructure backed with state-of-the-art head-ends

and a hybrid fibre-optic network. Being one of the largest Multi System

Operators (MSOs) comes with its fair share of responsibility. Millions of

subscribers count on us to bring them uninterrupted cable television day after

day, night after night. To that end, we have instituted one of the country's

best service and feedback mechanisms.

These best practices have been applauded and gone on to become the

benchmark for Cable TV operators across the country.

 CHANNELS

Hathway is a committed investor in the cause of Cable TV. We realize that

to grow the market and make our offering more attractive we cannot rely

solely on externals to provide rich content to our eager subscribers. That's

why we have launched under the Hathway umbrella, three channels that give

our viewers what they ask for. Cine Channel (CCC) was launched in 1998. It

is a movie-based entertainment channel that caters to audiences across the

board. The channel has upto 17 hours of programming daily with a library of

hindi movies and Film based programmes.

C-News, as the name suggests, is a dedicated news channel. Local news

capsules and live telecasts form a large part of its programming.

ITV is a unique dial-in interactive music channel. People can call in and pick

the song of their choice from a wide list of genres and album choices. The

channel has a very high viewership rating in its segment.

CORPORATE OVERVIEW
 We at Hathway, are guided by a vision - "To be a single point access

provider bringing into the home and work place, the converged world of

information, entertainment and services." Being one of the largest Cable TV

services company of India , spurs us to be the best in whatever we do.

Established in 1995, Hathway provides quality Cable TV services in thirteen

cities across the nation. With fiber optic backbone across its networks and

state-of-the-art distribution set ups, we bring the digital age through Cable

transforming the way viewers receive information and entertainment.

Currently Hathway has three broad service areas.

Cable TV- Hathway currently provides cable TV services in the following

cities:

Mumbai, New Delhi , Chennai, Bangalore , Hyderabad , Pune, Nashik,

Ludhiana , Jalandhar , Vijaywada, Mysore , Chandigarh , Mohali & Kanpur.

Digital Cable TV - Hathway is the largest Cable TV service provider to roll

out Digital Cable TV services in cities viz: Chennai, Mumbai, New Delhi ,

Pune,  Bangalore , Hyderabad and will soon roll out its services in important

cities in Punjab.

Hathway Broadband Internet

- "Pioneers in Broadband

Internet technology in India."

 Hathway Broadband Internet is the largest Broadband Internet Service

Privider (ISP) providing Broadband Internet services in 13 cities across the

nation: Mumbai, New Delhi, Chennai, Bangalore , Hyderabad, Pune, Nashik

,  Ludhiana , Mysore and Baroda, Aurangabad, Chandigarh, Coimbatore,

Tirupur, Trichy.

Entertainment - Hathway also has under its umbrella - Cine Channel

(CCC)-, a movie based entertainment channel, C-News, a local centric news

capsule, I TV-, a unique dial in interactive music channel and various local

channels like WIN Delhi , C-Hyderabad, C- Bangalore- .

Alliance-

Hathway STAR Strategic Alliance

In September 2000 Hathway entered into a strategic alliance with one of the

largest content providers in the world, STAR. This alliance will see the launch

of enhanced and digital interactive TV all across the country enabling the

subscriber to access world-class broadband services on their TV sets.

VALUE AND SYSTEMS

Our Vision is "To be a single point access provider bringing into the home and work

place, the converged world of information, entertainment and services."

Hathway is one of the largest Cable TV service providers in the country and

provides an excellent platform for its employees to learn as well as to excel in

the field of communications, entertainment and cable TV technology.

We are a strong work force of above 2000 employees based across 13 locations

with professional expertise in the respective fields of Cable TV, Digital services

and Broadband Internet.

Continuous learning

Hathway's commitment to continuous personal and professional development

keeps us at the forefront in a fast-changing entertainment and information

industry. Our continuous learning process is built around a number of focused

employee development, personal improvement programmes along with job

related trainings for an overall growth of our employees.

While we work hard, we have fun too. We keep the fun alive within our

employees by organizing Annual Sports Day, Kid's Day for the employees'

children and various intra departmental meets. We also believe to give a

generous amount of independency to the employee to have a free hand in their

respective work.

MANAGEMENT TEAM
HATHWAY CABLE & DATACOM LIMITED

Details of Directors

Mr. Bharat Shah - Chairman

Mr. Rajan Raheja - Director

Mr. Akshay Raheja - Director

Mr. Viren Raheja - Director

Mr. K. Jayaraman - Managing Director & Ceo

Mr. Vinayak Agarwal - Director

Mr. Brahmal - Director

Vasudevan

Mr. Jagdishkumar G. - Director

Mr. Uday Shankar - Director

Mr. Sridhar Gorthi - Director

Mr. Sasha Mirchandani - Director

Mr. Devendra Shrotri - Director

Executive Team

K. Jayaraman

Managing Director & Chief Executive Officer

Mr. K. Jayaraman is a Chartered Accountant and started his career in 1987 with

ICICI as Project Officer. Thereafter he also worked briefly with Citicorp

Securities.

He joined the Hathway Group in 1993 and worked with other Hathway Group

companies like H&R Johnson, Asianet Satellite Communications in senior

positions. Mr.Jayaraman is currently the MD & CEO of Hathway Cable &

Datacom Limited.

Milind Karnik

President-Finance & Company Secretary

Mr. Milind Karnik is a member of the Institute of the Chartered Accountants of

India, the Institute of the Company Secretaries of India and the Institute of Cost

& Work Accountants of India. He also holds a Bachelors Degree in General

Laws.

Mr. Milind Karnik started his career in 1984-85 with leading audit firms such as

M/s. R. S. Mama & Co. and A. F. Ferguson, as Senior Auditor and Assistant

Audit Manager, respectively. In October 1985, he joined the Financial

Management Information System Department with Hoechst India Limited. In

1987, he was deputed as the Cost Controller of Agrochemicals Division. In

1988, he joined the Citicorp Group and has worked in various capacities

including Assistant Financial Controller & Company Secretary with Citicorp

Overseas Software Limited, Company Secretary with Citicorp Information

Technology Industries Limited and Chief Financial Officer & Company

Secretary with Citicorp Securities and Investments Limited.

In July 1996, he joined Birla Marlin Securities Limited as Chief Financial

Officer & Company Secretary. Later in June 1997, he joined Caspian Broking

(India) Limited as the Financial Officer & Company Secretary. He joined

Hathway in 1998 and is currently heading the finance, legal departments of

Hathway as a President, Finance, Legal and Company Secretary.

ORGANISATIONAL STRUCTURE

Chairman &
Managing Director

Lead Director-
Telecom
 Director
Supply Chain

Director

HR

Director

Technology

CFO &
Director
Strategy

CORPORATE RESPONSIBILITY OF HATHWAY

At Hathway, CSR is a way of life. Each department and employee strives to be

sensitive to the stakeholders and environment within their work context.

Hathway encourages employees to take decisions and design business-linked

processes that are sensitive to communities and environment.

Corporate Social Responsibility (CSR) in Hathway encompasses much more

than only social outreach programs. It is an integral part of the way Hathway

conducts its business. The essence of Hathway’s commitment to Corporate

Social Responsibility is embedded in the ‘Corporate Values’, which stem from

its deepest held beliefs. These Values are:

To be responsive to the needs of our customers

To trust and respect our employees

To continuously improve our services – innovatively and expeditiously

To be transparent and sensitive in our dealings with all stakeholders

 We encourage our employees to take decisions and design business processes,

keeping in mind the following:

Ethics, fairness and being correct

Meeting and going beyond compliances and legal requirements

Showing respect and sensitivity towards stakeholders and communities,

and Nurturing the environment

We practice our CSR beliefs and commitments through a three-pronged

approach:
Engaging with stakeholders

Ensuring stakeholder sensitive policies and practices

Undertaking programs for our employees, community and environment

Hathway sensitizes its employees towards CSR issues at various forums. We

feel that it is important that each employee should understand the importance of

environmental, social and economical aspects while taking business decisions.

At Hathway, each employee is sensitized towards CSR issues and thus

operations at the ground level are influenced. Such sensitization exercises have

resulted in many socially and environmentally sensitive decisions on the

ground. For example, Confidence Plan for hearing impaired people, covers

noise-making DG sets at extra cost, investing in consumer awareness campaigns

to ensure safe use of mobile are some examples of the above.

EMPLOYEES OVERVIEW

We believe that one of the most important drivers of growth and success for any

organization is its people. At Hathway, our ‘Mantra’ for employee delight

focuses on 5 Ps – People, Pride, Passion, Processes and Performance.

Hathway has been recognized among the Best Employers in the Country for two

successive years – being 14th in 2003 & jumping ahead of several other large

conglomerates to an enviable position of the 2nd Best Employer in the Country

in 2004. This is a clear demonstration & acknowledgement of the robust,

progressive, people as well as business aligned Human Resource practices,

which the organization has developed and implemented remarkably in a little

time.

Hathway follows an “open door policy” to approach the management, which

helps resolve issues with mutual agreements. We encourage people to stand up

against any unfair treatment for which we have the Office of the Ombudsman,

where employees can raise any issues regarding business and workplace

conduct. Hathway ensures transparency through the various communication

policies, strategies and plans. . Regular Employee Communication Forums

provides a platform for the employees to raise issues that require resolution.

Our leaders strongly believe in facilitating and initiating activities that help

employees manage their health and well-being. Our focus always remains to

redefine leadership; we develop leaders who enable performance and inspire

their people to unleash their potential. Our people orientation reflects in our

vision of being “targeted by top talent”, and a key aspect of our business focus

“building a best-in-class leadership team that nurtures talent at every level.”

Employee friendly HR policies have been put in place, which amply reflect the

organization’s concern for its people. Some typical examples of these policies
and practices include a family-day at office, half day leave for birthdays, gifts

for anniversaries, compulsory 10 days off, festival celebration with family, no

official meetings on weekends, five day weeks, concierge services, call center

engagement programs etc. These “care” policies and practices are applied

across the organizational levels without any discrimination.

From self-management workshops to aerobics sessions, yoga classes to

provision of relaxation/meditation rooms, we ensure that every employee keeps

a check on his/her fitness. Tie-ups with leading health service organizations

enable our employees to undertake periodical health check-ups depending upon

their age. This facility is also extended to employee family members at

discounted rates. The company provides Flexible Group Mediclaim insurance to

all employees, covering all kinds of illnesses, accidents and hospital coverage

for serious ailments. Apart from these specific engagements, we regularly

organize health check up camps, eye check-up camps and stress management

sessions. Some of our offices have opened gymnasiums/fitness facilities to

ensure that the fitness fanatics do not have to worry about time constraints to

remain fit. At many of our locations, we have hired psychologists who

undertake personal counseling sessions for employees.

Hathway offers a flexible compensation structure to its employees wherein the

employees have the flexibility to structure their fixed component of their

compensation according to their requirements within the ambit of legislation.

 “Even a sweeper in the corporate office must understand that, if he does not

keep the office clean, the visiting shareholders could question the company’s

ability to manage a business if they cannot manage their premises well”

HATHWAY’S MARKETING ORIENTATION

 They take personal responsibility to "get" the answer for

any problem faced by the customer

 They anticipate customers' problems and take pro-active

 steps to prevent them.

 They give answers to the questions & requests, quickly

& efficiently.

 They have a positive tone & manner while interacting

with customers.

 They end the interaction on a positive or a humorous

note-making the last 30 seconds count.

Hathway realizes that attracting people 'is easy but converting

them into loyal customers is hard, hence emphasis is on

maintaining a 'Smiling and a Friendly Atmosphere' to please

and retain the customer.

PRODUCT LIFE CYCLE

The pattern of telephone subscriber growth observed

elsewhere in the world reveals that the growth in the market

is initially slow followed by a sharp acceleration, but so far that

has not happened in India. As far as the Product Life Cycle is

concerned Indians are at the beginning of the maturity stage.

Introduction Growth Maturity

MARKETING OBJECTIVES
 Create Product Maximize market Maximize profits

Awareness & Trial share whole defending

market share

Strategies
Product Offer a basic Offer value added Increase in number

product/ service. services of value added

services.

Price Charge cost- plus Price to penetrate Price to match or

market best competitors

Distribution Build selective Build Intensive Build more intensive

distribution distribution. distribution.

Advertising Build product Build awareness and Stress brand

awareness among interest in the mass differences and

early adopters. market benefits.

Sales Promotion Use heavy sales Increase to build and Increase to

promotion to entice maintain encourage brand-

people to subscribe. relationships with switching.

customers.
SWOT ANALYSIS OF HATHWAY

STRENGTH WEAKNESS

 Very focused on telecom.  Price Competition from BSNL

 Leadership in fast growing and MTNL
cellular segment.  Untapped Rural market
 The only Indian operator, other
than VSNL, that has an
international submarine cable.
 IPTV
 OPPORTUNITIES THREATS

 The fast-expanding IPLC market.  Competition from other cellular

 Latest technology and low cost and mobile operaters.
advantage.  Saturation point in Basic
 Huge market. telephony service
 Low Broadband Penetration,  New entry in digital tv.
Rural Telephoney

CHAPTER 4
 DATA ANALYSIS
AND
INTERPRETATION

TABLE No.1
TABLE SHOWING-THE PROFILE OF THE RESPONDENTS
BASED ON AGE

AGE PERCENTAGE
OF REPONDENTS
20-29 24%

30-39 36%
 40-49 26%

Above 50 14%

TOTAL 100%

Analysis

From the above table it is clear that 24% of the respondents aged between 20 to

29, 36% between 30 to 39, 26% between 40 to 49 and only 14% aged above 50

years.

Interpretation

Age is not the criteria for the people who use Hathway. From this we can

conclude people of all ages are interested in using Hathway broadband services.

GRAPH No.1
GRAPH SHOWING-THE PROFILE OF THE RESPONDENTS
BASED ON AGE
 3%

24%

31%

20-29
30-39
43% 40-49
Above 50

TABLE No.2
TABLE SHOWING-THE PROFILE OF THE RESPONDENTS
BASED ON GENDER
 GENDER PERCENTAGE
OF RESPONDENTS
MALE 64%

FEMALE 36%

TOTAL 100%

Analysis

From the above table it is clear that 64% of respondents were male and female

respondents constituted just 36% of total responses.

Interpretation

It is clear that both males and females are interested in using Hathway

broadband as they are interested in E-commerce and social networking.

GRAPH No.2
GRAPH SHOWING-THE PROFILE OF THE RESPONDENTS
BASED ON GENDER
 35

30

25

20

15

10

0
Male Female Respondents

TABLE No.3
TABLE SHOWING- THE OCCUPATION OF RESPONDENTS
OCCUPATION PERCENTAGE
OF RESPONDENTS
 STUDENT 12%

GOVERNMENT 16%
SERVICE
EX-SERVICEMEN 8%

PROFESSIONAL 40%

SELF-EMPLOYED 24%

TOTAL 100%

Analysis

From the above table it is clear that 12% of the respondents were students

pursuing their graduation or post graduation studies and 40% were

professionals. 24% of the respondents were self employed, 8% were ex-

serviceman and 16% belonged to government services.

Interpretation

It is clear that users are mostly Professionals and Self employed people because

without internet there is no business.

GRAPH No.3
GRAPH SHOWING-THE OCCUPATION OF RESPONDENTS
 24% 12%

16%

8%
Student
40% Govt. Service
Ex-
servicemen
Professional
Self employed

TABLE No.4
TABLE SHOWING- THE ANNUAL INCOME GROUP OF
RESPONDENTS
INCOME GROUP PERCENTAGE OF
 RESPONDENTS
LESS THAN 1,20,000 20%
1,20,001-3,60,000 38%
3,60,001-7,20,000 26%
ABOVE 7,20,000 16%
TOTAL 100%

Analysis

From the above table it is clear that 20% of the respondents had an annual

income of lesser than 1,20,000, 26% had income between 3,60,001 and

7,20,000, 16% earned more than 7,20,000 per annum and 38% had income

between 120001 to 3,60,000.

Interpretation

It shows that Hathway is placing their service in the appropriate price range. As

the people of income bracket between 1,20,001 and 3,60,000 can easily afford

this Broadband service.

GRAPH No.4
GRAPH SHOWING- THE ANNUAL INCOME GROUP OF
RESPONDENTS
 16%
20%

26%

38%
Less than
120000
120000-
360000

TABLE No.5
TABLE SHOWING- THE RESPONDENTS AWARENESS OF
HATHWAY BROADBAND SERVICE
 YES/NO PERCENTAGE OF
RESPONDENTS
YES 84%

NO 16%

TOTAL 100%

Analysis

From the above table it is clear that 84% of the respondents are aware of the

Hathway broadband service and 16% of the respondents are not aware of the

same.

Interpretation

It shows that majority of the respondents are aware of the service provided by

Hathway and are using it.

GRAPH No.5
GRAPH SHOWING- THE RESPONDENTS AWARENESS OF
HATHWAY BROADBAND SERVICE
 45

40

35

30

25

20

15

10

0
YES NO

TABLE No.6
TABLE SHOWING- THE SALES PROMOTIONAL TECHNIQUES
WHICH ATTRACTS CUSTOMERS
 PROMOTIONAL PERCENTAGE OF
TECHNIQUE RESPONDENTS
TELEVISION 44%

RADIO 6%

NEWSPAPERS 24%

BANNERS 12%

SALES PERSONS 14%

TOTAL 100%

Analysis

From the above table it is clear that 44% of the respondents are attracted

towards Hathway services through television, 6% through radio, 24% through

newspapers, 12% through banners and 14% through sales persons.

Interpretation

It shows that most of the respondents are attracted towards Hathway services

through television.

GRAPH No.6
GRAPH SHOWING- THE SALES PROMOTIONAL TECHNIQUES
WHICH ATTRACTS CUSTOMERS
 25

20

15

10

0
Television Radio Newspapers Banners Sales persons

TABLE No.7
TABLE SHOWING- THE NUMBER OF BROADAND
CONNECTIONS RESPONDENTS USING
 NO. OF PERCENTAGE OF
CONNECTIONS RESPONDENTS
ONLY 1 46%

2-3 36%

MORE THAN 3 18%

TOTAL 100%

Analysis

From the above table it is clear that 46% of the respondents are using only one

connection, 36% of them are using 2-3 connections and 18% of them are using

more than 3 connections.

Interpretation

It clearly shows that majority of the respondents use atleast 2-3 connections as it

has financial edge over the rest and a superior edge placed substancially.

GRAPH No.7
GRAPH SHOWING- THE NUMBER OF BROADAND
CONNECTIONS RESPONDENTS USING
 18%

46%

36%

Only 1
2 or 3
More than
3

TABLE No.8
TABLE SHOWING- THE RESPONDENTS MONTHLY
EXPENDITURE ON BROADBAND
MONTHLY PERCENTAGE OF
 EXPENDITURE RESPONDENTS
>250 12%

>500 32%

>750 46%

>1000 10%

TOTAL 100%

Analysis

From the above table it is clear that 12% of the respondents spend more than

250 per month, 32% of them spend more than 500 per month, 46% of them

spend more than 750 per month and 10% of them spend more than 1000 per

month.

Interpretation

It shows that majority of the respondents are willing to spend between 500 and

1000 per month as Hathway provides superior broadband connection with

unmatched satisfaction.

GRAPH No.8
GRAPH SHOWING- THE RESPONDENTS MONTHLY
EXPENDITURE ON BROADBAND
 25

20

15

10

0
>250 >500 >750 >1000

TABLE No.9
TABLE SHOWING- THE BROADBAND PLAN OF THE
RESPONDENTS
 PLAN/TARIFF PERCENTAGE OF
RESPONDENTS
LIMITED 40%
DOWNLOAD PLANS
SPECIAL 24hrs 32%
UNLIMITED
DOWNLOAD PLANS
NIGHT UNLIMITED 18%
DOWNLOAD PLANS
TOTAL 100%

Analysis

From the above table it is clear that 40% of the respondents use limited

download plans, 32% of them use special 24hrs unlimited download plans and

18% of them use night unlimited download plans.

Interpretation

It shows that majority of the respondents use both limited download plans and

special 24hrs unlimited downloadplans. This is because limited download

options is far expensive by all internet service providers(even competitors)

GRAPH No.9
GRAPH SHOWING- THE BROADBAND PLAN OF THE
RESPONDENTS
 25

20

15

10

TABLE No.10
TABLE SHOWING- THERESPONDENTS RATING THE
HATHWAY SERVICE PROVIDER
 RATING PERCENTAGE OF
RESPONDENTS
POOR 8%

AVERAGE 16%

GOOD 52%

EXCELLENT 24%

TOTAL 100%

Analysis

From the above table it is clear that 8% of respondents rate Hathway service

poor, 16% of them rate it average, 52% rate it good, 24% rate it excellent.

Interpretation

It clearly shows that majority of the respondents rate Hathway service as good.

Hathway is internationally acclaimed and known to provide quality service

during sales and after sales of the net connection.

GRAPH No.10
GRAPH SHOWING- THE RESPONDENTS RATING THE
HATHWAY SERVICE PROVIDER
 8%

24%
16%

Poor
Averag
e
52% Good
Excelle
nt

TABLE No.11
TABLE SHOWING- THE FACTORS RESPONSIBLE FOR BUYING
HATHWAY BROADBAND CONNECTION
 FACTORS PERCENTAGE OF
RESPONDENTS
HIGH SPEED 34%
AVAILABILITY OF 8%
SERVICES
VALUE ADDED 4%
SERVICES
ECONOMIC CALL 8%
RATES
DOWNLOADING 46%
VOLUME
TOTAL 100%

Analysis

From the above table it is clear that 34% of respondents are attracted towards

high speed connection Hathway provides, 8% on the availability of services, 4%

on value added services, 8% on economic call rates and 46% on the

downloading volume.

Interpretation

It clearly shows majority of respondents rely on Hathway for their downloading

volume and high speed connection they provide.

GRAPH No.11
GRAPH SHOWING- THE FACTORS RESPONSIBLE FOR BUYING
BROADBAND CONNECTION
 34%

46%

8% High Speed
4% Availability of
8% services
Value added services
Economic call rates

TABLE No.12
TABLE SHOWING- THE SOURCE OF AWARENESS OF
HATHWAY
 MEDIA PERCENTAGE OF
RESPONDENTS
NEWSPAPERS 4%
MAGAZINES 12%
FRIENDS 34%
TV ADDS 10%
WEBSITE/BLOGS 14%
COMPANY 14%
OTHERS 12%
TOTAL 100%

Analysis-As we can see here the major promotional tool which is influencing

the customers are Friends which is around 34%, after that the source of

awareness among customers is a mixed response where in 14% each from

websites and company, 12% each from magazines and other sources, finally

newspapers consists only 4% and 10% from Television adds which is very poor.

Interpretation- It clearly shows that Advertisements are rarely recalled and

are highly ineffective amongst non Hathway users.

GRAPH No.12
GRAPH SHOWING- THE SOURCE OF AWARENESS OF
HATHWAY
 18
17
16

14

12

10

8
6
6 7
7
5
4 6
2
2

0
Newspapers
Magazines
Friends
TV adds
Website/Blogs
Company
Others

TABLE No.13
TABLE SHOWING- THE SATISFACTION LEVEL OF
RESPONDENTS WITH RESPECT TO AFTER SALES SERVICE
 SATISFACTION PERCENTAGE OF
LEVEL RESPONDENTS
EXTREMELY 26%
SATISFIED
SATISFIED 57%

NOT AT ALL 17%

SATISFIED
TOTAL 100%

Analysis

From the above table we can say that 26% of the respondents are extremely

satisfied, 57% of them are satisfied and 17% are not at all satisfied with respect

to after sales service of Hathway.

Interpretation

It is clear that majority of the respondents are very much satisfied with respect

to after sales service of Hathway.

GRAPH No.13
GRAPH SHOWING- THE SATISFACTION LEVEL OF
RESPONDENTS WITH RESPECT TO AFTER SALES SERVICE

60
50 Not at all satisfied
40
30
Satisfied
20
10
Extremely
0 Extremely satisfied satisfied
Satisfied
Category 1 Not at all satisfied

TABLE No.14
TABLE SHOWING- THE FREQUENCY OF BREAKDOWN OF THE
BROADBAND

FREQUENCY OF PERCENTAGE OF
BREAKDOWN RESPONDENTS
VERY OFTEN 14%

RARELY 23%

NOT AT ALL 63%

TOTAL 100%

Analysis

From the above table we can get to know that 14% of the respondents have the

problem of breakdown very often, 23% of them very rarely and 63% of them do

not have any breakdown problem at all.

Interpretation

It is very clear that frequency of the breakdown of the Hathway broadband

service is very less. This shows Hathway provides un interrupted internet

service.

GRAPH No.14
GRAPH SHOWING- THE FREQUENCY OF BREAKDOWN OF THE
BROADBAND

14%

23%

63%

Very often
Rarely
Not at all

TABLE No.15
TABLE SHOWING- THE RESPONDENTS OPINION AND LEVEL
OF SATISFACTION ABOUT THE COMPANY TAKING ACTION
TOWARDS COMPLAINTS LODGED BY THE CUSTOMERS

YES/NO PERCENTAGE
YES 73%
NO 27%
TOTAL 100%

RESPONSE FOR PERCENTAGE

SATISFACTION
YES 66%
NO 34%
TOTAL 100%

Analysis-The above table shows that 73% of the respondents accept that the
company takes action towards the complaints lodged by the customers and 27%
disagree for the same. Also the satisfaction level is 66% by the respondents and
34% are not satisfied.

Interpretation-It is clear that most of the respondents agree that the

company takes action towards the complaints lodged by the customers and also
the satisfaction level of the customers is very high. This shows Hathway checks
at the complaints registered by their customers on regular basis to maintain its
brand value.

GRAPH No.15
GRAPH SHOWING- THE RESPONDENTS OPINION AND LEVEL
OF SATISFACTION ABOUT THE COMPANY TAKING ACTION
TOWARDS COMPLAINTS LODGED BY THE CUSTOMERS

80

70

60

50
No. of Respondents
40

30

20

10

0
Yes No

Point of
No
satisfaction
34%

Yes
66%

TABLE No.16
TABLE SHOWING- THE RESPONDENTS OPINION ABOUT THE
MAJOR BARRIERS FOR PURCHASE OF BROADBAND SERVICE
 BARRIERS PERCENTAGE OF
RESPONDENTS

NETWORK 36%
DEPLOYMENT
HIGH COST 24%

TECHNICAL 40%
ISSUES
TOTAL 100%

Analysis

From the above table it shows that 36% of respondents believe that network

deployment is a major barrier for purchasing the broadband service, 24% of

them believe its high cost and 40% of them feel its technical issues.

Interpretation

It is clear that technical issues and pricing have a crucial influence in purchasing

the broadband service.

GRAPH No.16
GRAPH SHOWING- THE RESPONDENTS OPINION ABOUT THE
MAJOR BARRIERS FOR PURCHASE OF BROADBAND SERVICE

Technical issues

High cost No. of respondents

Network deployment

0 5 10 15 20 25 30 35 40

TABLE No.17
TABLE SHOWING- THE RESPONDENTS WILLINGNESS TO PAY
MORE FOR HIGH SPEED INTERNET

YES/NO PERCENTAGE OF
RESPONDENTS
YES 29%

NO 71%

TOTAL 100%

Analysis
From the above table it shows that 29% of the respondents are willing to pay

more for high speed internet and 71% are unwilling.

Interpretation
It is clear majority of respondents are not willing to pay more for high speed

internet since they have better broadband services which give them a better

package.

GRAPH No.17
GRAPH SHOWING- THE RESPONDENTS WILLINGNESS TO PAY
MORE FOR HIGH SPEED INTERNET

29%

Yes
No

71%

TABLE No.18
TABLE SHOWING- THE RESPONDENTS USAGE OF
BROADBAND TECHNOLOGY

USAGE BY PERCENTAGE OF
RESPONDENTS
WIRELESS 26%
DSL(Digital Subscriber 10%
line)
CABLE MODEM 64%
TOTAL 100%

Analysis
From the above table it shows that 26% of the respondents use wireless

technology, 10% use DSL and 64% use cable modem.

Interpretation

Majority of the respondents use cable modem as it is efficient for its cost.

GRAPH No.18
GRAPH SHOWING- THE RESPONDENTS USAGE OF
BROADBAND TECHNOLOGY

26%

Wireless
DSL
Cable modem

10%
64%

TABLE No.19
TABLE SHOWING-PRIMARY USAGE OF BROADBAND
APPLICATION
APPLICATION PERCENTAGE OF
RESPONDENTS

BUSINESS 34%
PERSONAL 26%
E-COMMERCE 28%
EDUCATION/RESEARC 12%
H
TOTAL 100%

Analysis

From the above table we can say that it is a mixed response from the

respondents for the usage of broadband i.e. 34% for business, 26% for personal,

28% for E-commerce and 12% of them for education or research.

Interpretation

It is clear that Broadband service is used for every application.

GRAPH No.19
GRAPH SHOWING-PRIMARY USAGE OF BROADBAND
APPLICATION

35%

30%

25%

20%

15%

10%

5%

0%
Business Personal E-commerce Education/research
No. of respondents

TABLE No.20
TABLE SHOWING- ANY RESPONDENTS ISSUES WITH
HATHWAY BROADBAND PRICING

YES/NO PERCENTAGE OF
RESPONDENTS

YES 32%
NO 68%
TOTAL 100%

Analysis
From the above table is shows that 32% of the respondents have issues with

Hathway broadband pricing and 68% of them don’t have any issues.

Interpretation
It clearly shows that majority of the respondents have no issues with the

broadband pricing and this shows that Hathway broadband service is

economical.

GRAPH No.20
GRPAH SHOWING- ANY RESPONDENTS ISSUES WITH
HATHWAY BROADBAND PRICING

Yes No

32%

68%
 CHAPTER 5
FINDINGS AND CONCLUSION
FINDINGS
1. Age is not the criteria for the people who use Hathway. From this we can

conclude people of all ages are interested in using Hathway broadband

services.

2. It is clear that both males and females are interested in using Hathway

broadband as they are interested in E-commerce and social networking.

3. It is clear that users are mostly Professionals and Self employed people

because without internet there is no business.

4. It shows that Hathway is placing their service in the appropriate price

range. As the people of income bracket between 1,20,001 and 3,60,000

can easily afford this Broadband service.

5. It shows that majority of the respondents are aware of the service

provided by Hathway and are using it.

6. It shows that most of the respondents are attracted towards Hathway

services through television.

7. It clearly shows that majority of the respondents use atleast 2-3

connections as it has financial edge over the rest and a superior edge

placed substancially.

8. It shows that majority of the respondents are willing to spend between

500 and 1000 per month as Hathway provides superior broadband

connection with unmatched satisfaction.

9. It shows that majority of the respondents use both limited download plans

and special 24hrs unlimited download plans. This is because limited

download options is far expensive by all internet service providers(even

competitors)

10.It clearly shows that majority of the respondents rate Hathway service as

good. Hathway is internationally acclaimed and known to provide quality

service during sales and after sales of the net connection.

11. It clearly shows majority of respondents rely on Hathway for their

downloading volume and high speed connection they provide.

12.It clearly shows that Advertisements are rarely recalled and are highly

ineffective amongst non Hathway users.

13. It is clear that majority of the respondents are very much satisfied with

respect to after sales service of Hathway.

14.It is very clear that frequency of the breakdown of the Hathway

broadband service is very less. This shows Hathway provides

uninterrupted internet service.

15.It is clear that most of the respondents agree that the company takes

action towards the complaints lodged by the customers and also the

satisfaction level of the customers is very high. This shows Hathway

checks at the complaints registered by their customers on regular basis to

maintain its brand value.

 16.It is clear that technical issues and pricing have a crucial influence in

purchasing the broadband service.

17.It is clear majority of respondents are not willing to pay more for high

speed internet since they have better broadband services which give them

a better package.

18.Majority of the respondents use cable modem as it is efficient for its cost.

19.It is clear that Broadband service is used for every application.

20.It clearly shows that majority of the respondents have no issues with the

broadband pricing and this shows that Hathway broadband service is

economical.

CONCLUSION

The study has helped HATHWAY dealers to understand whether

the customers are satisfied or not. If not what are main reasons for

dissatisfaction of customer towards the dealer and what are the ways of

improving the satisfaction level of customer towards dealer.

We can conclude people of all ages are interested in using Hathway

broadband services, both males and females are interested in using Hathway

broadband as they are interested in E-commerce and social networking and

users are mostly Professionals and Self employed people because without

internet there is no business. majority of the respondents are aware of the

service provided by Hathway and are using it by getting attracted towards

Hathway services through television.

Majority of the respondents are willing to spend between 500 and

1000 per month as Hathway provides superior broadband connection with

unmatched satisfaction and are using 2-3 connections and also use both limited

download plans and special 24hrs unlimited download plans. Respondents rate

Hathway service as good and rely on Hathway for their downloading volume

and high speed connection they provide. Also advertisements are rarely recalled

and are highly ineffective amongst non Hathway users.

Frequency of the breakdown of the Hathway broadband service is

very less, most of the respondents agree that the company takes action towards

the complaints lodged by the customers and also the satisfaction level of the

customers is very high. Due technical issues and pricing have a crucial

influence in purchasing the broadband service and Broadband service is used

for every application.Finally respondents have no issues with the broadband

pricing.
 CHAPTER 6
SUGGESTIONS
SUGGESTIONS
On the basis of research and analysis of the study conducted in Bangalore, I

would like to suggest the following key points to the company.

 During the study the fact becomes clear that the customer is not well

aware about all the products and services of Hathway. So through strong

advertisement, company should try to increase the awareness of the

Airtel services.

 The company should organize contests through Newspapers, Magazines

& announce suitable rewards accordingly.

 The company should provide new promotional schemes on a regular

basis to consumers to increase its market share.

 The company should provide economic plans to consumers to increase

its market share.

 The company should provide proper motivational schemes to the sales

executives.

 The company should try to build some feed back mechanism from the

customer to check the performance of the sales executives and to make

them loyal.
  The company should provide proper product knowledge to the sales

executives.

 The company should go ahead with aggressive marketing. They should

light competition on Pricing strategy.

(a) The company should look at the strategies of the competitive companies.

(b) The company should try its level best to keep the prices low as compared to

the competitors.

(c) The schemes should be updated as per the needs and occasions.
ANNEXURE
QUESTIONNAIRE
I am Sandeep. B, a final year BBM student from Presidency College. This
information is required for successful completion of my project ‘A Study on
Consumer Behaviour of Hathway Broadband Services, Bangalore.’ I request
you to kindly spare some of your time and fill the questionnaire below. Thank
you.

Name:

1. Age:

2. Gender : Male Female

3. Marital status:

Married Single

4. Occupation:

Student Government service

Professional Self employed Other

5. Annual Income:

Less than 1,20,000 1,20,001-3,60,000

3,60,001-7,20,000 Above 7,20,000

6. Are you aware of the Hathway Broadband services?

Yes No

7. Can you suggest some sales promotional technique which attracts you?

Television Radio Newspapers

Banners Sales person

8. How many Broadband connections are you using?

Only 1 2-3 More than 3

9. What is your monthly expenditure over your internet requirement?

>250 >500

>750 >1000

11. Which plan/tariff you are using?

Limited Download Plans

Special 24 hrs Unlimited Download Plans

Night Unlimited Download Plans

12.How will you rate the service of our service provider?

Poor Average Good Excellent

13. When
you
buy
broadband connection what do you look for in it?

High Speed Availability of services

VAS (Value added services) Economic call rates

Downloading Volume (Unlimited)

14.If given an option to you which brand of broadband service would you buy
now and why?

HATHWAY because ___________________________________

AIRTEL because _______________________________________

BSNL because ________________________________________

SIFY because ___________________________________________

RELIANCE ______________________________________________

OTHERS ___________________________________________

15.Have you seen Hathway broadband newspaper or magazine advertisement?

Yes No

16.Do you take information from internet blogs?

Yes If yes which blog:

No

17.Please specify your source of awareness of Hathway?

Newspapers Magazines Friends

TV Adds Website/blogs

Company Others

18.What is your satisfaction level with respect to our after sales service?

Extremely satisfied Satisfied

Not at all satisfied

19.Frequency of breakdown of your broadband?

Very often Rarely Not at all

20.Do you agree that company takes action towards the complaints lodged by
the customers?

YES NO
 Are you satisfied with their replies?

YES NO

21.Would you be willing to pay more for high speed internet service?

YES NO

22.What are the major barriers for purchase of broadband by non-users?

Network Deployment High cost

Technical issues such as network loading

Others

23.Which Broadband technology are you using?

Wireless DSL(digital subscriber line)

Cable Modem

24.For which application do you use your broadband service

more?

Business (e-mail, accessing corporate intranet)

Personal (web surfing, downloading music, Multimedia)

E-commerce Education/Research

25.Finally do you have any issues with the Hathway

Broadband pricing?

YES NO

Any suggestions
BIBLIOGRAPHY
 BIBLIOGRAPHY

Books Referred

 Marketing Management, 13th edition - Philip Kotler.

 Survey Research Method - Charles Babbie.

Magazines Referred

 "Hathway broadband" in "Books - Magazines" in Kalyan

Classifieds, India

Websites Referred

 www.google.com

 www.hathway.com

 www.wikipedia.org

 www.indiabroadband.net