Cis Ranjeet Reddy 10106

7/31/2019 Cis Ranjeet Reddy 10106.

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A REPORT ON

A STUDY ON CUSTOMER SWITCHING BEHAVIOUR IN

OPERATOR SERVICES - FACTORS AFFECTING MOBILE USERS

SUBMITTED BY

RANJEET REDDY .B

ROLL NO10106

Date: 1st

November 2010


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A REPORT ON

A STUDY ON CUSTOMER SWITCHING BEHAVIOUR IN

OPERATOR SERVICES - FACTORS AFFECTING MOBILE USERS

BY

RANJEET REDDY .B

PGDM

A Report Submitted in Partial fulfillment of the requirements of

Post Graduate Diploma in Management

BATCH- XVIII, 2010-2012


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ACKNOWLEDGEMENTS

I hereby convey my deep acknowledgement to all those who made it possible for me to

complete this project, by extending their support and continuous co-operation. I would like to

acknowledge the consistent encouragement extended by Dr. Kamal Ghosh Ray, Director and

Dr. Ch. S. Durga Prasad, Dean-Academic Planning of Vignana Jyothi Institute of

Management. My sincere gratitude to Mr. A.Ramesh, Sr.Asst.Professor whose constant

guidance, efforts, heartfelt support, suggestions and consideration helped me in the successful

completion of this project. Finally I would like to thank Mr. S.Durga Prasad, Asst.Professor

and my VJIM batch mates without whom this dissertation work would not have been

successfully completed.


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TABLE OF CONTENTS

Acknowledgements .................................................................................................................... 3

List of Tables ............................................................................................................................. 5

List of Illustrations ..................................................................................................................... 6

Executive Summary ................................................................................................................... 7

1.Introduction ............................................................................................................................. 9

1.1 Objectives of the Study .................................................................................................. 13

1.2 Scope of the Study.......................................................................................................... 14

1.3 Sample design ................................................................................................................ 14

1.4 Limitations of the Study ................................................................................................. 14

2 Methodology ......................................................................................................................... 15

2.1 Research question ........................................................................................................... 15

2.2 Data collection................................................................................................................ 15

2.3 Variables considered for switching behavior ................................................................. 15

3. Review of the literature ........................................................................................................ 16

4 Empirical Analysis ................................................................................................................ 17

5. Findings & Suggestions ....................................................................................................... 25

6. Conclusion ........................................................................................................................... 27

7. Appendices ........................................................................................................................... 28

8. References ............................................................................................................................ 32


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List of Tables

Table1.1 The distribution of respondents on the basis of age .............................................17

Table 1.2 brands of mobile services used by respondent.18

Table 1.3 showing the distribution of respondents based on usage rate.....19

Table1.4 showing type of connection taken by respondents........................................20

Table 1.5 showing influencing factors while selecting a new operator.......21

Table 1.6 showing distribution of influencing factor by the respondents22

Table1.7 showing the Summary statistics of resons for switching......23

Table 1.8 showing reasons for selecting the present operator..24


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List of Illustrations

Figure1.1 showing distribution of age level of the respondents...17

Figure 1.2 showing brands of mobile services used by respondents....18

Figure 1.3 showing the distribution of usage rate of the respondents..19

Figure 1.4 showing the preferred mobile connection...20

Figure 1.5 showing the respondents who switched their operator ..20

Figure 1.6 showing the factors affecting mobile users in selecting new operator...21

Figure1.7 showing the influencing factor percentage of respondents.....22


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Executive Summary

The study entitled A Study on the customer switching behavior in operator services

was conducted in Hyderabad. The study was undertaken to know the preference level ofconsumers towards various mobile connections. The study covers various brands like Airtel,

Aircel, BSNL, Tata Indicom, in relation to various aspects. The survey was conducted by

collection from various consumers (Mobile Users).

The main objective of the study is to analyze the reasons for switching the operator. This

project deals with the service industry. Servicing in India is found to have a continuous

growth in the past. That also divided as organized and unorganized, in the past market was

filled with the unorganized services. But now the emergence of organized services benefits

the customer than ever before.

This paper looks at the reasons for consumer switching behavior and the factors affecting

mobile users. Telecommunications industry grown from earth to sky in a short span of time.

In the earlier days there was no or less competition because the demand was more than

supply. After globalization the scenario has changed entirely, many players entered in to the

common consumer preference.

The type of research undertaken for the study was Descriptive Research and the sampling

design was judgmental sampling. Both primary and secondary data was collected by

interview method and referring the company manual and website of the company. The

statistical tool used in the study was percentage analysis, weighted average Method, standard

deviation .The limitation of the study was that the data provided by the respondents may be

false at times and it is confined to 50 consumers only and conducted in Hyderabad only.

Price escalation, changing needs of customers, core service failure, inconvenience and

voluntary reasons are the factors influencing the mobile customers to switch. Due to

competitive pressures, the mobile operators in India, at one point of time, decreased the call

tariffs abysmally low and later them indirectly through top-up plans. This forced the

customers to look out for cheaper packages. Typically, the starter packages offered for new

customers had the low call tariffs. Hence, customers switched. Frequent juggling of tariffs

and service charges is not a well paying proposition for mobile operators.


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Based on the reasons specified by the respondents some suggestions are made, Now-a-

days even then they try to delight the customers, this plays a very vital role because one

satisfied customer will bring many other customers. In the present media world one can take

up many promotional methods. For any brand a satisfied customer is the best ambassador

because of the trust factor. Customers will tend to believe in those words of people whom

they know than that of third person in the name of brand ambassador.


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1. IntroductionIndian mobile services market has grown manifold in the last five years and the

subscriber base had crossed 428 million by the end December 2009.The growing affluent-middle class, low cost of handsets and call tariffs has helped this stupendous growth. Even

now, the penetration rate of mobile phones in India, in comparison to other markets like

china, japan and European countries is low .This presents an enormous opportunity for the

Indian mobile service operators to enhance their market share through mindshare. The fierce

competition among the cellular service providers resulted in numerous tariff plans, group

plans, lifelong validity, and top-up plans. Today, an Indian mobile customer is overwhelmed

with competing offers and service packages from the competing operators.

Many of the world-renowned telecom giants are eying the fast-growing Indian mobile

market. With FDI limit of 74%, these MNCs are partnering with Indian business houses to

enter into India. Telenor, datacom, NTT Docomo are among the new entrants in the Indian

mobile space. Their entry with high-end value added services and quality infrastructure is

bound to push the prices further southward.

Mobile call tariffs in India are the lowest in the world. The tariffs dwindled from

Rs.6.50/min to Rs.0.50/min in just about seven years. Competition is intense among the

players to attract customers. Even now and then, a new scheme with low service charges and

tariff plan pops up and gets superseded by another new scheme within no time. The mobile

market is flooded with offers and packages and in fact, the customer is overwhelmed with

competing choices. Customer retention has become a challenge for the mobile operators with

increasing competition .some marketers target brand switchers because brand switchers have

higher market potential, switching is encouraged by all the players in the mobile market to

enhance customer base. Global competitors will spread their arms by adopting innovative

pricing strategies and value added services to enhance the subscriber base. Brand switching

may happen as new global players offer better services at lower costs, leveraging their

technology and financial muscle.

The only major impediment to switching, as of now is the inconvenience of changing to

a new number. The TRAI is in process of finalizing the procedure for mobile number

portability (MNP) which will allow the customer to retain the same mobile number across the


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operators. This is expected to open floodgates for customer switching in both prepaid and

postpaid segments.

Switching patterns provide an important indicator that the demand-side of a market is

well-developed and that consumers are sufficiently empowered to participate actively. The

motivation to switch is generally a function of consumers estimate of the performance of

their existing supplier; and whether or not they believe there are better alternatives available

from other suppliers on the aspects of service that matter to them. If the market is perceived

to be undifferentiated and/or if their current supplier is perceived to be the best on the market

on the criteria that are important, there is no expected benefit from switching. The ability and

willingness of consumers to switch is critically important. If switching is discouraged or

impeded this could impact not only on the demand-side but also potentially raise supply side

barriers (Barrow, 2007). This is because new entrants could be deterred from entering the

market in the belief that it will be difficult to persuade consumers to switch from their

existing provider. This could diminish the effectiveness of competition and serve to limit the

benefits that consumers would otherwise derive from it. It is important to note, however, that

switching is not the only measure of a vibrant demand-side, nor is switching necessarily

always in a consumers best interests. The decision to engage in co-ordinate information

gathering that will support the decision to switch or not to switch is also important. If aconsumer is satisfied with a current provider, switching is not necessarily an improvement.

Moreover, choosing a new service does not necessarily mean switching provider. The aim of

this paper is to assess the extent to which consumers in telecommunications markets are able

and willing to switch and the implications for policy and regulation.

Issues covered by the paper include:

the extent to which consumers are satisfied with their present providers; the extent to which dissatisfied consumers do switch; whether dissatisfied consumers are equipped (with information and confidence) to

make rational switching decisions; and

how information asymmetry and systematic bias in consumer decisions can beaddressed.

The paper does not dwell on consumer complaints, including complaints to regulators and

Ombudsmen. It is known that a substantial number of consumers are dissatisfied. The issue

Focused on is why these dissatisfied consumers are not switching and how to address this.


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Influences on switching

Switching costs can be defined as the real or perceived costs that are incurred when Changing

supplier but which are not incurred by remaining with the current supplier. Barriers to

switching can be present due to high switching costs. Switching costs reduce consumer

Flexibility and lower the pressure exerted by the prospect of a consumer migrating to a

Competitor.

Under-switching and over-switching

Under-switching errors can occur where a consumer does not switch (perhaps due to high

Switching costs) despite apparent benefits from doing so. And there could also beover-

switching errors where a consumer switches despite incurring losses from doing so. Wilson

and Waddams-Price (2005) identify a third type of error consumer inaccuracy when a

consumer makes a surplus-improving switch, but makes a mistake in the choice of destination

operator by not choosing the best operator for her requirements (perhaps as a resul of search

costs).

Switching costs

The number of different factors consumers need to take into account when choosing a mobile

telecommunications provider could create considerable search costs for consumers. This is

because the cost and suitability of a particular mobile phone package for a particular

consumer depends on a number of factors:

how much the consumer uses the phone; the time of day the consumer makes most of their calls; the mobile network used by most of the people they are likely to call; the kind of services the consumers wants on their mobile (e.g. cameras,photo-

messaging etc);

whether and how much the consumer wants to use the mobile abroad; which networks have coverage where the consumer wants to use the mobile; whether the consumer wants to commit to a monthly contract or prefers to pay only

for calls; and

whether the consumers preferred handset is available on their preferred networ


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Compatibility costs

As different mobile operators have different handset ranges, the consumers choice of a

handset restricts their choice of mobile network, or alternatively, choosing a particularnetwork leads to a limited range of handsets. This issue is discussed further below in the

context of SIM locking.

Change of telephone number

A consumer switching mobile operator who has to change her telephone number faces a

number of costs. For example, she must inform potential consumers of the number change (inthe case of business users) and potentially miss calls from friends and clients. These costs are

greater for a business consumer who may have to change stationery and advertising material

and may suffer a loss of business due to the number change. In addition, correspondents of

the consumer have to change the number in their address book and other database records.

They also suffer some inconvenience in terms of misdialling on the old number. The

introduction of mobile number portability (discussed below) reduces these costs.However,

the availability of number portability does not completely remove the transaction costs as

there can be a delay between the request for number portability and when it isactually

implemented. As a result, even with number portability, transaction costs of changing

network will still exist.

Mobile Number Portability (MNP) in India

Mobile Number Portability (MNP) allows the Mobile service subscribers to retain their

existing mobile number when they move from one Service Provider to another Service

Provider with in a same licensed service area.

This move is irrespective of the mobile technology or from one cellular mobile technology to

another of the same access provider, in a licensed service area. In other words, the Mobile

Service Subscriber can switch from one operator to other operator with in telecom circle.

The facility of retention of existing mobile number despite moving to a new telecom/Mobile

service provider helps in increasing competition between the service providers and acts as a

catalyst for the service providers to improve their quality of service.


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Indian telecom regulator Telecom Regulatory Authority of India (TRAI) has announced that

Mobile Number portability (MNP) will be implemented in all the telecom circles across India

from Oct 31 without any further delay.

Mr. J S Sarma, Chairman Telecom Regulatory Authority of India (TRAI) said that Indias

GSM and CDMA Mobile service users would have access to mobile number portability

(MNP) from October 31. There will be no further delay in the implementation of MNP in

India.

The Department of Telecommunications (DoT) said that Mobile Service operators must

ensure that all inter-operator tests for porting the numbers from one service provider to

another are completed before Sept 1, 2010 to implement the MNP by Oct 31st 2010.

The mobile service operators Bharti Airtel, Bharat Sanchar Nigam Ltd (BSNL) ,

Mahanagar Telephone Nigam Ltd (MTNL), Reliance, Vodafone Essar, Tata Teleservices

(Tata Indicom/Tata Docomo), Idea cellular, STel and Aircel said they are ready with the

infrastructure to implement the MNP service.

MNP charges Paid by the Subscribers

Telecom Regulatory Authority of India (TRAI) has fixed Rs.19 for the Mobile Number

Portability Per Port Transaction Charge and the dipping charge is left to mutual negotiation

between the telecom service providers and the respective MNP service providers. TRAI also

cleared that the Porting charge amount to be paid by the subscriber shall not be more than the

per port transaction charge Rs 19. The operators are free to charge any amount less than or

equal to this charge

1.1 Objectives of the Study

To identify the attributes of various telecom services that influences on anindividuals choice among alternatives.

To identify the factors affecting mobile users for customer switching in operatorservices.

To identify the primary use of a mobile connection. To find out the offers expected by the customers in the future and also understand

their need.


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To identify the brand preference over the competing brands and their services. To identify the frequency level of occurrence of problems faced by the consumers

generally.

To find out the consumer opinion on schemes and tariffs of various service providers.1.2 Scope of the Study

This study helps us to understand the factors affecting mobile users that are prompting

customers to switch operators. It helps the organizations to understand the consumer

psychology on choosing the service so that easily the services can be positioned. It assesses

the preference of choosing the Mobile operator by the respondents. It also helps to assess the

real opinion and mindset of consumers and aids to meet out their expectation in future in turn

that will increase the volume of sales. It helps the companys to understand the efficiency of

existing service providers to the consumers, in order to effectively design strategies to retain

customers to enhance profitability. It identifies the usage level of the consumers so that it

helps the company to educate the customers towards the services availability. So that it really

creates an impact on consumer preference towards the services.

1.3 Sample design

The population size for the study is taken as 50. This study pertains to collection of data

through primary and secondary sources. Designing and implementing the question is one of

the most interesting and challenging tasks of conducting research and analysis. This

questionnaire has revealed the importance of following purposes:

For analyzing the consumer preference towards various services. To study the factors affecting mobile users to switch operators. To know the opinion of different set of consumers towards a particular brand and

identifying the reason for choosing a particular brand over the other brands.

1.4 Limitations of the Study

Due to time and financial constraints the study was limited Hyderabad city only. The survey covers five variants of competing brands that includes Aircel, BSNL,

Airtel, Vodafone, Idea and Tata Docomo.


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The number of respondents was limited to 50 only. Some of the respondents were not open in giving their opinions. This is normal in any

field Study.

2 Methodology

The study has identified 40 mobile users who had switched their service provider atleast once

during the past one year .A well structured questionnaire was designed and administered to

the selected sample among students ,business ,salaried persons. Care has been taken to see

that the sample represented all socio-economic and demographic groups of mobile customers.

2.1 Research question

The purpose of this primary research is to identify the most important variables that can cause

a customer to switch away from one to other operator. Essentially the question is: what

factors cause a person to leave his/her existing carrier for the competition? Do tariff plans and

usage pattern made the customers switch the operator?

2.2 Data collection

It includes primary data and secondary data, the sample consisted of undergraduate sand post

graduate students of various colleges, business men and salaried persons.

2.3 Variables considered for switching behavior

Customer demographics

Variables like age, gender, occupation and education influence the information processing,

attitude, purchase decision and thereby, extent of loyalty.

Usage rate (monthlybill)

A heavy user may be more interested in exploring the alternatives to minimize the overall

cost and may be likely to switch on identifying more suitable plans than a lower user.


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Customer satisfaction with previous operator

Service quality parameters such as network coverage, network access, call tariffs, customer

care, recharge options, disturbance due to promotional calls and promotional messages from

the operator.

Reasons for switching

Agreement of the respondents was sought on parameters relating to network coverage,

service charges, brand image, suitable tariff plans, group plans and better value added

services that might have motivated him/her to switch the mobile operator.

3. Review of the literature

Customer switching behavior affects the market share and profitability of the firms.

Most of the mobile operators in India are engaged in designing strategies to attract customers

through welcome offers which contains attractive call tariffs, freebies and low service

charges. The existing customers often feel that they are ignored. Marketers should know thatretaining existing customers is crucial than acquiring new customers (Berry, 1980) .It is

found that continuing customers increase their spending at an increasing rate and help the

company achieve increasing operating efficiencies (Reichheld and sasser 1990).Loyal

customers spread positive word of mouth across and add to the companys brand building

exercise. Moreover, acquiring a new customer is five times costlier than retaining old

customer.

Customer switching is industry specific, limits the generalization and need to adopt

broader perspective (berry and parasuraman 1993) .what causes brand switching in one

product class may not be the same as in another. More research is, therefore needed to

determine the impact of product class on brand switching behavior (michaelidou, et.al.2005).


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4 Empirical Analysis

Table1.1 showing distribution of respondents on the basis of age

S.no Age level No. of respondents Percentage

(%)

1 18-22 26 52

2 23-32 17 34

3 33-42 6 12

4 Above 43 1 2

Total 50 100

The Respondents are high Level of the age group between 18-22 years. The age level above

43years has the least number of respondents.

Figure1.1 showing distribution of age level of the respondents

52%

34%

12%

2%

age level

18-22

23-32

33-42

above 43


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TABLE 1.2 SHOWING BRANDS OF MOBILE SERVICES USED BY RESPONDENTS

S.no Brand Name No. Of Respondents Percentage

(%)

1 Airtel 11 22

2 Vodafone 14 28

3 Idea 8 16

4 Bsnl 5 10

5 Tata 6 12

6 Aircel 5 10

7 other 1 2

Total 50 100

Among the various brands of service providers Vodafone is mostly used by the respondents

which is followed by Airtel and idea .In case of services where customers direct contact with

service providers is absent or marginal (low contact), once satisfaction is achieved loyalty

depends on how the service work was delivered than the quality of work performed.

Figure 1.2 showing brands of mobile services used by respondents

In 50 respondents 14 (28%) are satisfied by Vodafone and are using it, 11(22%) of the

respondents using Airtel.

02

4

6

8

10

12

14

16

no.

ofrespondents

Brands

No.of respondents

No.of respondents


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Table 1.3 showing the distribution of respondents based on usage rate

S.No Usage rate No .of respondents Percentage (%)

1 Low 11 22

2 Medium 25 50

3 High 10 20

4 Very high 4 8

Total 50 100

The usage pattern of the respondents is dependent on their use personal use/business

use), among them mostly they have used for their personal use. Usage rate is medium (50%)

for the most of the respondents and high (20%).

Figure 1.3 showing the distribution of usage rate of the respondents

A heavy user may be more interested in exploring the alternatives to minimize the overall

cost and may be likely to switch on identifying more suitable plans than a lower user.

22%

50%

20%

8%

no .of respondents

low

medium

high

very high


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TABLE 1.4 SHOWING TYPE OF CONNECTION TAKEN BY THE RESPONDENTS

S.no Mobile connection No .of respondents Percentage

(%)

1 Prepaid 44 88

2 postpaid 6 12

Total 50 100

Most of the Respondents prefer Prepaid Connection for their Mobile 88 % of the respondents

has preferred prepaid connection.

Figure 1.4 showing the preferred mobile connection

Figure 1.5 showing the respondent who switched their operator

88%

12%

connection

prepaid

postpaid

67%

33%

no of respondents

yes

no


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Table1.5 showing influencing factors while selecting a new operator

S.No Influencing Factor No. of

respondents

Percentage

(%)

1 Network coverage 13 26

2 Brand image 6 12

3 Suitable tariff plans 17 34

4 Group plans 4 8

5 Better value added

services

8 16

6 Other 2 4

Total 50 100

Major factors influenced respondents while using the particular mobile service are Coverage

(26%),Tariff (34%), group plans (8%), Brand Name (12.%), value added services(16%) and

others (4%)

Figure 1.6 showing the factors affecting mobile users in selecting new operato

0

2

4

6

8

10

12

14

16

18

network

cov

erage

brand

image

tariff

plans

group

plans

better

VAS

other

no

of

respondents

influencing factors

No.of respondents

No.of respondents


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Table 1.6 showing distribution of influencing factor by the respondents

S.no Influencing factor No of respondents Percentage (%)

1 Friends/family 19 38

2 Advertisements 15 30

3 Magazines 9 18

4 other 7 14

Total 50 100

Figure1.7 showing the influencing factor percentage of respondents

Summary statistics of reasons for switching

The study tried to explore various reasons that make a customer switch, the reasons related to

network coverage,call tariffs,service charges , recharge options,customer care,inconvenience

created by service provider are presented to the customer and his/her agreement on the

specific reason is sought on five point scale (strongly agree,agree,cant say,disagree,strongly

disagree).

38%

30%

18%

14%

no of respondents

friends/family

advertisements

magazines

other


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Table1.7 showing the Summary statistics of resons for switching

S.NO Reason Mean Standard

deviation

1 Low network coverage 2.62 1.05

2 Low talk time on recharge 3.66 1.08

3 High call tariifs 2.53 1.20

4 Unsolicited calls and messages 2.59 1.25

5 Better offer from competitors 3.38 0.97

6 Poor customer service 2.11 1.19

7 High top-up prices 2.92 0.92

8 Unfair service charges 3.25 0.87

9 Unsuitable plans 2.69 1.25

10 Network congestion 2.23 1.03

11 Increased service charges 3.09 1.13

12 dialler tunes 2.21 1.33

13 Changes in usage pattern 2.23 0.75

14 Low switching costs 4 1.09

15 Fancy number 2.92 1.05

The mean and standard deviation of each parameter is shown in table 1.poor connectivity,

low coverage, high call tariffs, higher charges ,low talk time on recharge coupons ,frequent

changes in recharge plans, unsolicited calls and messages, better offers & service from

competitors, changing needs, low switching costs and fancy number are identified as

important parameters.


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Selection of a new service provider

Perceived quality of service guides the consumers while selecting the service provider.

Customers look for various quality parameters of service providers that enhance value before

zeroing on a service provider. The choice of service provider by the customer would be

influenced by his/her expectations about various parameters of service being offered by

mobile operators. Respondents were asked to pick the most prominent parameter that they

have considered while choosing new operator. The options were: network coverage, brand

image, suitable tariff plans, group plans, better value added services and other

Table 1.8 showing reasons for selecting the present operator

Factor Average score

Network coverage 3.857

Brand image 2.102

Suitable tariff plans 1.942

Group plans 1.644

Better value added services 1.533

Other 1.255


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5. Findings & Suggestions

FINDINGS

52% of the Respondents using Mobile Services being surveyed are among the agegroup of 18-22 and 34% of the respondents are coming under the age group of 23-

32 Years.

The respondents who belong to Male Gender constitute 70% 30 % of the mobile users is working in an Private organization. 20% of the

respondents are doing Business and 50 % of the respondents are students.

In 50 respondents 14(28%) of the respondents are satisfied with Vodafone and areUsing it. 11(22)% of the respondents use Airtel, 8(16%) of respondents use Idea.

35.5% of the respondents use the same brand from 1-2 Years and 32% of theRespondents use the same brand for more than 2 Years

88% of the respondents prefer prepaid to Postpaid. Major factors influenced respondents while using the particular mobile service Area

Coverage (26%), Tariff (34%), and group plans (8%), Brand Name (16%), Value

added services (16%) and others (4%).

38% of the Respondents prefer the mobile Service by their Friends. 30% of theRespondents prefer the service Recommended by advertisements, followed by

Magazines 18% and others 14% This shows That Word of Mouth is the most

powerful Media.

58% of the respondents feel that the service of their brand is Good 21% of theRespondents feel that the service is Moderate.

76% respondents switched their operator in one year and 24% didnt switch to otheroperator service.

Dissatisfied switchers blame poor network connectivity, low network coverage, highnetwork congestion, and low talk time on rechargers.

Change in usage pattern and low switching costs are also found to be the reasonsinfluencing the switching decision. The customer is switching the service provider

due to core service failure and switching is aided by the low switching costs.


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Suggestions

The factor influenced them to switch them is mostly suitable tariff plans. So operatorsshould come up with better tariff plans and group plans for students in order to retain

them.

In order to minimize the reasons for switching the operators should spread their armsby adopting innovative pricing strategies and value added services to enhance the

subscriber base.

Brand switching may happen as new global players offer better services at lowercosts, leveraging their technology and financial muscle.

The company can go for providing plus 1 service to the customers in order to makethe customers to the delighted customers. ( E.g. : - Birthday wishes through SMS ,

Yearly Get together of consumers at dealership point with entertainment and

competitions , Free General check up camps for the service , small social activities

Etc) so that in the long run it can create more references and consumer Base . And

it Enhances relationship Marketing.

Efforts can Be taken to popularize the service, service differentiation throughappropriate publicity measures.

Care should be taken to improve the service efficiency that aids to retain the existingcustomers.

The company can open more service outlets at various places apart from dealers pointby giving franchise to outsiders. So that the service network can be expanded rapidly

this aids the company to improve market share quickly.


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6. Conclusion

Price escalation, changing needs of customers, core service failure, inconvenience and

voluntary reasons are the factors influencing the mobile customers to switch. Due tocompetitive pressures, the mobile operators in India, at one point of time, decreased the call

tariffs abysmally low and later them indirectly through top-up plans. This forced the

customers to look out for cheaper packages. Typically, the starter packages offered for new

customers had the low call tariffs. Hence, customers switched. Frequent juggling of tariffs

and service charges is not a well paying proposition for mobile operators.

Core service failure is another factor that necessitated switching. Network related

problems such as poor connectivity, low coverage etc. are forcing the customers to switch to

another operator who is perceived as better. Indian mobile operators have to invest in

expanding network coverage and providing technically superior quality service to retain

customers. Inconvenience caused by the unsolicited messages and calls from the operator

containing promotional content, though tolerated by majority of the customers, is definitely

a cause of concern. Even though all the mobile service providers implement Do Not Disturb

(DND) registry as a mandatory service, it is neither thoroughly popularized nor implemented

properly.

Service providers need to build relationship with the customers to understand their

changing needs and design appropriate strategies to meet the changing neeesds. Data mining

and CRM practices can be implemented to identify the specific requirements of the

customers and customized plans can be delivered to enhance customer satisfaction and

loyalty.

Loyalty programmes for existing, high volume users are another way to keep customers.

There is an imminent need to concentrate on customer loyalty as mobile number portability

is round the corner .mobile operator in India should lay equal emphasis not retaining

customers and finding new customers.


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7. Appendices

Questionnaire

name *

Age *18-22

Gender *

male female

Purpose of mobile *

personal use business use

Mobile connection *

prepaid postpaid

usage rate (monthly bill) *

low

Medium

High Very High

Presently you are using which service provider *

Mention your previous operator *Airtel

Are you satisfied with previous operator? *

yes


29/32

29

nothe reason

Reason for dissatisfaction *

Reasons for selecting new operator *

if other,mention the reason *

who influenced you to switch for other operator *

Any future switching plan to other operator *

yes no

if YES,specify the reason *

Low network coverage reason for switching

1 2 3 4 5

strongly disagree strongly agree

Low talk time on recharge *

1 2 3 4 5



30/32

30

High call tariifs

1 2 3 4 5


Unsolicited calls and messages *

1 2 3 4 5


Better offer from competitors *

1 2 3 4 5


Poor customer service *

1 2 3 4 5


High top-up prices *

1 2 3 4 5


Unfair service charges *

1 2 3 4 5


Unsuitable plans *

1 2 3 4 5


31/32

31


Network congestion *

1 2 3 4 5


Increased service charges *

1 2 3 4 5


Unsolicited dialler tunes *1 2 3 4 5


Changes in usage pattern *

1 2 3 4 5


Low switching costs *

1 2 3 4 5



32/32

8. References

Kotler Philip, Principles of Marketing, Sultan Chand and Company Ltd., New Delhi2002.

Kothari. C . R., Research Methodology, Wishwa Prakashan, New Delhi 1985(Reprint2003).

Gilbert. A. Churchill, Jr., Marketing Research Methodological Foundations, USA,TheDryden Pres Fifth Edition, 1991.

WEBSITES

www.telecomtalk.info www.hinduonnet.com www.indiatelecomnews.com
http://www.hinduonnet.com/http://www.hinduonnet.com/

Documents

Cis Ranjeet Reddy 10106