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A
FINAL
THESIS RERPORT
FOR THE RESEARCH PROJECT
ON
C OMPARATIVE STUDY OF C ONSUMER SATISFACTION L EVEL OF
POSTPAID VS PREPAID OFFERE BY A IRTEL
PREPARED BY:Digen Patel
Roll No: 8NBSU068
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SUBMITTED TO:Mr.Vikas SinghICFAI NATIONAL COLLEGE SURAT
ACKNOLEDGEMENT
I would like to acknowledge and extend my gratitude to the following persons who havemade the completion of this project possible: First of all I would like to thank our ProjectCoordinator Mrs. Megna dangi for her great help. As he is being my Project Coordinator he provided me very necessary and important guidance and support until the submission of my project.
Secondly, I would like thank Mr.vikassingh faculty guide of ICFAI NATINAL COLLEGESURAT , to provide us such a very exiting opportunity and for their good help to provide a
better coordination and control among all the activities related to completion of the project.
I would like to thank all my friend who have helped me directly or injdirectlyin the preparation of the thesis report.
Lastly, I would like to be very thankful to thewhole Family of INC SURAT for their Continuous effort in making the whole Project Activity very much learning and Interesting.
I am always beholden to my God, for always being with me and showing me the right ways,
my family members, for always doing favours to me and my friends and colleaguesconsistently helped with encouragement and criticism throughout the project work, for always lifting my sights to higher vision, raising my personality beyond normal limitationand for realizing me my strengths and potential, specially my brother, as I did not alwayswelcome her exhortation, try again; you can do better. But this project owes a great deal toit and so do I.
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CONTENTS NO PARTICULAR PAGE NO .
1 EXECUTIVE SUMMARY 4
2INTRODUCTION
A) INDUSTRY PROFILE
B) COMPANY PROFILE
C) PRODUCT PROFILE
6
3 DESI GN OF STUDY
A) PROBLEM DEFINATION
B) OBJECTIVE OF STUDYC) SCOPE OF STUDY
D) TYPE OF RESEARCH DESIGN
F) LIMITATION OF STUDY
17
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4 METHODOLOGY
A) SOURCES OF DATA
B) SAMPLING DESING
C) TOOLS OF DATA COLLECTION
20
5 ANALYSIS OF DATA 24
6 TESTING OF HYPOTHESIS 38
7 FINDING 41
8 SUGGESTIONS & CONCLUSION 43
9 ANNEXURES 45
10 BIBLIOGRAPHY 48
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EXECUTIVEXECUTIVE
SUMMARYUMMARY
EXECUTIVE SUMMARY
Airtel comes to you from Bharti cellular limited- a part of the biggest private integratedtelecom conglomerate, Bharti Enterprises. Bharti Enterprises established in 1976, Bharti
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INDUSTRYNDUSTRY
PROFILEROFILE
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INDUSTRY PROFILEThe Indian telecommunications industry is one of the fastest growing in the world and Indiais projected to become the second largest telecom market globally by 2010.India added 113.26 million new customers in 2008, the largest globally. In fact, in April2008, India had already overtaken the US as the second largest wireless market. To put thisgrowth into perspective, the countrys cellular base witnessed close to 50 per cent growth in2008, with an average 9.5 million customers added every month. According to the TelecomRegulatory Authority of India (TRAI), the total number of telephone connections (mobile aswell as fixed) had touched 385 million as of December 2008, taking the telecom penetrationto over 33 per cent. This means that one out of every three Indians has a telephoneconnection, and telecom companies expect this pace of growth to continue in 2009 as well."We are extremely bullish that the growth will continue in 2009. This year, the number of additions will be in excess of 130 million," according to T.V. Ramachandran , Director General, Cellular Operators Association of India (COAI), an industry body that represents allGlobal System for Mobile communications (GSM) players in India.In FY2009 thus far, we have already seen operators effect a drastic 43% cut in STD rates toRs1.50 per minute from Rs2.65, while incoming roaming charges have also been slashed by43% to Re1 a minute from Rs1.75. Another operator has also launched unlimited STD at440
a month for post-paid users, while pre-paid customers can make unlimited STD calls at s496a month for calls within the network (on-net calls). Further, with TRAI permitting the entryof Mobile Virtual Network Operators (MVNOs), internet telephony (Voice over InternetProtocol, VoIP) and long-distance carrier selection by consumers through issuing pre-paidcalling cards by long distance operators, it is clear that tariffs have not as yet hit rock-bottom.According to CRISIL Research estimates, eight infrastructure sectors, which include thetelecom sector, are expected to draw more than US$ 345.28 billion investment in India by2012.With the rural India growth story unfolding, the telecom sector is likely to see tremendousgrowth in India's rural and semi-urban areas in the years to come. By 2012, India is likely to
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have 200 million rural telecom connections at a penetration rate of 25 per cent. Andaccording to a report jointly released by Confederation of Indian Industry (CII) and Ernst &Young, by 2012, rural users will account for over 60 per cent of the total telecom subscriber base.The Indian telecommunications industry is on a growth trajectory with the GSM operatorsadding a record 9.3 million new subscribers in January 2009, taking the total user base to267.5 million, according to the data released by COAI. However, this figure does not includethe number of subscribers added by Reliance Telecom.It is projected that the industry will generate revenues worth US$ 43 billion in 2009-10
Significant events in Indian Telecom Industry
In 1851 the first operational land lines were laid by the government near Calcutta (seat of British power).
Telephone services were introduced in India in 1881
In 1883 telephone services were merged with the postal system. Indian Radio TelegraphCompany (IRT) was formed in 1923.
After independence in 1947, all the foreign telecommunication companies were nationalizedto form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government'sMinistry of Communications. Formation of DOT (Department of telecommunications) out of the Department of Posts
in 1980s. Formation of two DOT owned corporations in 1986 :Mahanagar Telephone Nigam
Limited (MTNL), to serve Delhi and Bombay, and Videsh Sanchar Nigam Limited(VSNL), to operate international telecom services.
In 1994, the government released its National Telecommunications Policy (NTP-94),which allowed private fixed operators to take part in the Indian market for the first time(cellular operators had been allowed into the four largest metropolitan centers in 1992)
government in 1997 set up the Telecom Regulatory Authority of India (TRAI), thenations first independent telecom regulator.
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New National Telecom Policy was adopted in 1999 and cellular services were alsolaunched in the same year.
The corporatization of the DOT and the creation of a new state-owned telecom company,Bharat Sanchar Nigam Ltd (BSNL), in 2000;
The opening up of Indias internal long-distance market in 2000, and the subsequent dropin long-distance rates as part of TRAIs tariff rebalancing exercise;
The termination of VSNLs monopoly over international traffic in 2002, and the partial privatization of the company that same year, with the Tata group assuming a 25% stake
and management control The gradual easing of the original duopoly licensing policy, allowing a greater number of
operators in each circle; The legalization, in 2002, of IP telephony (a move that many believe was held up due to
lobbying by VSNL, which feared the consequences on its international monopoly); The introduction in 2003 of a Calling Party Pays (CPP) system for cell phones, despite
considerable opposition (including litigation) by fixed operators;
And, more generally, the commencement of more stringent Interconnection regulation byTRAI, which has moved from interoperatornegotiations-based approach (often used bythe stronger
operator to negotiate ad infinitum) to a more rules-based approach. All of these events havecreated an impressive forward-momentum in Indian telecommunications, resulting in avigorously competitive and fast-growing sector.
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COMPANYOMPANY
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PROFILEROFILE
COMPANY PROFILETelecom giant BhartiAirtel is the flagship company of Bharti Enterprises. The BhartiGroup,has a diverse business portfolio and has created global brands in the telecommunication
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sector. Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoUwith Wal-Mart for the cash & carry business. It has successfully launched an internationalventure with EL Rothschild Group to export fresh agri products exclusively to markets inEurope and USA and has launched Bharti AXA Life Insurance Company Ltd under a jointventure with AXA, world leader in financial protection and wealth management.
Airtel comes to you from BhartiAirtel Limited, Indias largest integrated and the first privatetelecom services provider with a footprint in all the 23 telecom circles. BhartiAirtel since itsinception has been at the forefront of technology and has steered the course of the telecomsector in the country with its world class products and services. The businesses atBhartiAirtel have been structured into three individual strategic business units (SBUs) -Mobile Services, AirtelTelemedia Services & Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circleswhile the AirtelTelemedia Services business offers broadband & telephone services in 95cities and has recently launched India's best Direct-to-Home (DTH) service, Airtel digitalTV. The Enterprise services provide end-to-end telecom solutions to corporate customersand national & international long distance services to carriers. All these services are providedunder the Airtel brand.We are one of Asias leading providers of telecommunication services with presence in all
the 22 licensed jurisdictions (also known as Telecom Circles) in India, and in Srilanka. Weserved an aggregate of 105,195,762 customers as of June 30, 2009; of whom 102,367,881subscribe to our GSM services and 2,827,881 use our Telemedia Services either for voiceand/or broadband access delivered through DSL. We are the largest wireless service provider in the country, based on the number of subscribers as of June 30, 2009. We also offer anintegrated suite of telecom solutions to our enterprise customers, in addition to providinglong distance connectivity both nationally and internationally. We have recently forayed intomedia by launching our DTH and IPTV Services. All these services are rendered under aunified brand Airtel.The company also deploys, owns and manages passive infrastructure pertaining to telecomoperations under its subsidiary BhartiInfratel Limited. BhartiInfratel owns 42% of IndusTowers Limited.
BhartiInfratel and Indus Towers are the two top providers of passive infrastructure servicesin India.Company shares are listed on The Stock Exchange, Mumbai (BSE) and The National Stock Exchange of India Limited (NSE)
V ISION 2010
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By 2010 Airtel will be the most admired brand in India:
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
V ISION 2020
To build India's finest business conglomerate by 2020
Supporting education of underprivileged children through Bharti Foundation Strategic Intent:
To create a conglomerate of the future by bringing about BigTransformations through Brave Actions.
M ISSION
We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of
our way to delight the customer with a little bit more
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P REPAID
Enter the world of limitless possibilities with Airtel Prepaid. The service that helps you give,words to every feeling, an expression to every emotion.
F EATURES Total Cost Control Pre activated STD/ISD without deposits or rentals Strong Network coverage Instant Balance and Validity Enquiry Recharge your Airtel Prepaid Prepaid Roaming Reach us Anytime Anywhere
More with Airtel Prepaid
Call management Services Voice Mail SMS (Short Messaging Service) Subscription Alerts MMS (Multi-media Messaging Service Airtel Live Airtel Live WAP Services Hello Tunes
P OSTPAID Life becomes much simpler with your Airtel Postpaid. It gives you the unlimited freedom to
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OFF
THE STUDYTHE STUDY
DESIGN OF THE STUDY
STATEMENT OF THE PROBLEM
C OMPERATIVE STUDY OF C ONSUMER SATISHFACTION L EVEL OF POSTPAID VS PREPAID OFFERE BY A IRTEL
Reason for selecting the TopicCustomer is a king of Market.
There was a time years ago, whatever the seller produces, he sells in the market and thecustomer has to buy the same. But in the current scenario due tothe keen competition in themarket, the situation has changed. Now seller has tproduce what customers want, to sustainin the market.
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In the same way to know what customers want, one has to observe the behavior of thecustomer. This is the reason why this topic is given importance for selection.
Once marketer understands the mentality, thought process and reaction for certain product,he can easily grab the market share. Sales are largely bases onthe Customers then the productand services offered by the marketer. The study of consumer behavior helps in (1) ProductDevelopment and Improvement (2)Launching of new Product (3) Deciding and targeting to particular MarketSegment (4) Estimating Advertisement and branding Budget.
O BJECTIVES OF THE R ESEARCH P ROJECT
The subject matter for this research Project is to study the behavior of thecustomer regarding the Post paid connections offered by Airtel in Pune. Thisproject consistsof different objectives.They are as follows:
To know the test and preferences of consumer for the Postpaid/prepaid products
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To study the problems faced by the respondents with Airtel service. To study customer satisfaction level on Airtel post paid/ prepaid connection. To understand the reaction of consumers by listening to the Brand To know the current market player and competitors To study the customers thought process To recommended draw back in light of the finding
L IMITATIONS OF THE STUDY
Though the detailed investigation is made in the present study, uit has got the
following limitations.
1. This study is restricted only to the surat city. So, the results may not be applicable toother areas.
2. This study is based on the prevailing customers satisfaction. But the customerssatisfaction may change according to time, fashion, technology, development, etc.
3. As per the population of the study is huge, the researcher has taken only 100 samplerespondents from each service providers.
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RESEARCHESEARCH METHEDOLOGETHEDOLOGY
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R ESEARCH M ETHODOLOGY
Methodology is an essential aspect of any project or research. It enables the researches look at the problem in a systematic, meaningful and orderly way. Methodology comprises thesources of data, selection of data, various designs and techniques used for analyzing the data.
Research DesignThe following methodology was adopted for the study purpose:
Type of research:Descriptive and qualitative research design were used while conducting the project.
Sampling Design was taken by the researcher as the Research design.
The major purpose of the study is to describe the state of affairs as it exists at present.
The study was based on the facts or information already available, & analysis of thisavailable information make a critical evaluation of the material.
Research Method/Technique:
In the project report the researcher used following techniques while conducting his study:.
Questionnaire (Structured): A structured designed comprehensive questionnaire wasframed and pretested for data collection from the customer of mobile
Research Data
Data is the key activity of marketing research. The design of the data collecting method is backbone of research design.
Data constitute the foundation of statistical analysis and interpretation. Hence the first step instatistical work is to obtain data. Data can be obtained from important sources, namely:
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1. Primary Data2. Secondary Data
Primary Data:
Primary data are gathered for the specific purpose or for a specific research project, consistof original information for the fulfilment of project objective.
When the data are required for the particular study can be found neither in the internal recordof the enterprises nor in published sources. In some cases it may become necessary to collectoriginal data.
Primary data can be collected in four ways:-
1. Observation2. Survey
Secondary Data:
Secondary data are the data, which already exists somewhere. Secondary data providestarting point for research and after that the advantage of low cost and ready availability.Secondary data can be divided into two types:
1. Internal data2. External data
When researcher uses the data that has already been collected by other data are calledsecondary data. Secondary data can be obtained from journals i.e. internal sources report,government publication and books, professional bodies etc.
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Internal data are reports and memos generated within an organisation to facilitate itsoperations and annual report. External data are those specially produce for outsideconsumption.
Sources from which the researcher has taken the secondary data are as under:
1. Airtel website2. Surveys and customer data & report3. Airtels customers care office
4. Airtels Brouchers
Sample DesignArea of Sample:
The areas covered up in this survey was SuratSelection of units under study
Sampling Units from Surat were suppliers and
Consumer of mobile connection
Sampling PlanType of sampling method adopted: Stratified random sampling
A stratified random sample is one where the population is divided intomutually exclusiveand mutually exhaustive strata or sub-group and then asimple random sample is selectedwithin each of the strata or sub-groups. Thus,for the purpose of this research project, the population of surat is divided in tothe sub-groups on the basis of their income level. Andfrom each strata 10samples are drawn or tested.Sample size
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The sampling unit for the study is 100, which includes the airtel users in surat city. Thesampling size includes male and female users from different occupation, age. The samplingsize was restricted to 100 for want of time. Here, convenient sampling technique has beenadopted for collecting the primary data.
Formulate a Hypothesis:Conventional approach to hypothesis testing is to set up two hypothesesinstead of one insuch a way that if one hypothesis is true, the other is false. Twohypotheses, for this research,are as follow:For prepaid1. Null Hypothesis H 0: Customers are not satisfied.2. Alternative Hypothesis H1 : Customers are satisfied.
For Post paid
1. Null Hypothesis H 0: Customers are not satisfied.2. Alternative Hypothesis H1 : Customers are satisfied.
ANALSISNALSIS 2
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OFOF
DATADATA
AGE WISE CLASSIFICATION
Class No. of respondents Percentage
Below 20 22 22%20-30 51 51%30-40 20 20%40 Above 7 7%
Total 100 100%
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INTERPRETATION: 22 % of the respondents are between the age group Below20.
51% of the respondents are between the age group 20-30.
20% of the respondents are between the age group 30-40.
7% of the respondents are above 40 years of age.
O CCUPATION WISE C LASSIFICATION
Occupation No.of respondents PercentageServiceman 30 30% businessman 39 39%Student 28 28% professional 3 3%
Total 100 100%
INTERPRETATION:
30% of the respondents are -Services men.
39% of the respondents are Businessmen.
28% of the respondents are Students
3% of the respondents are from professional.
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Mode No.Of respondents PercentagePrepaid 83 83%Postpaid 17 17%
Total 100 100%
INTERPRETATION:
17% of the respondents are Post paid users.
83% of the respondents are Pre paid users.
SATISHFACTION LEVEL FOR NETWORK SERVICES
Response Number of Respondents
Percentage
Yes 39 36% No 61 64%
Total 17 100%
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INTERPRETATION:
39% of the respondents are satisfied
61% of the respondents are not satisfied.
PREFERABLE FOR CONNECTIONPrepaid
Connection Number of Respondents Percentage
Strong Network Coverage 35 42%
Schemes 17 21%
Call Charges 16 19%
Vas 8 10%
Others 7 8%
Total 83 100%
INTERPRETATION:
42% of the respondents prefer Strong Network Coverage.
21%of the respondents prefer Schemes.
19%of the respondents prefer Call Charges.
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10%of the respondents prefer VAS
8% of the respondents prefer other. (i.e. sms, group calls).
Postpaid
Connection Number of Respondents
Percentage
Strong Network Coverage 7 42%
Schemes 3 17%
Call Charges 4 21%
vas 2 14%
Others 1 6%
Total 17 100%
INTERPRETATION:
42% of the respondents prefer Strong Network Coverage.
17%of the respondents prefer Schemes.
21%of the respondents prefer Call Charges.
14%of the respondents prefer VAS
6% of the respondents prefer other. (i.e. sms, group calls).
OPINION ON TARIFF PLAN SERVICES
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Opinion OnPrepaidServices
Response Number of Respondents Percentage
Excellent 27 32%
Fine 38 46%
Good 15 18%
Need some change 3 4%
Total 83 100%
INTERPRETATION:
32% of the respondents opinion is Excellent.
46% of the respondents opinion is Fine.
18% of the respondents opinion is Good
4% of the respondents wants Need some change
Opinion OnPostpaidServices
Response Number of Respondents Percentage
Excellent 5 28%
Fine 7 41%
Good 4 23%
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Need some change 1 8%
Total 17 100%
INTERPRETATION:
28% of the respondents opinion is Excellent.
41% of the respondents opinion is Fine.
23% of the respondents opinion is Good
8% of the respondents wants Need some change
O PINION ON FEATURES IN SERVICE
For prepaidFeatures Number of Respondents Percentage
GPRS 40 48%Games 35 42% Net 2 3%Others 6 7%
Total 83 100%
INTERPRETATION:
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48% of the respondents like GPRS.
42% of the respondents like Games.
03% of the respondents like net facilities
07% of the respondents like other features
For PostpaidFeatures Number of Respondents Percentage
GPRS 48 32%Games 42 39% Net 3 22%Others 7 7%
Total 17 100%
INTERPRETATION:
32% of the respondents like GPRS.
39% of the respondents like Games.
22% of the respondents like net facilities
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07% of the respondents like other features
DURATIONS OF USING AIRTEL SERVICES
For PostpaidDuration Number of
Respondents
Percentage
New 15 18%Below 6 months 12 14%Below 1 year 27 32%Above 1 year 29 36%
Total 83 100%
INTERPRETATION: 18% of the respondents are New customers.
14% of the respondents are Below 6 months.
32% of the respondents are Below 1 year.
36% of the respondents are Above 1 year
For prepaid
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Duration Number of Respondents Percentage
New 3 19%Below 6 months 2 15%Below 1 year 5 27%Above 1 year 7 39%
Total 17 100%
INTERPRETATION:
19% of the respondents are New customers.
15% of the respondents are Below 6 months.
27% of the respondents are Below 1 year.
39% of the respondents are Above 1 year
TESTING OF HYPOTHESIS
For prepaid1. Null Hypothesis H 0: Customers are satisfied.2. Alternative Hypothesis H1 : Customers are not satisfied
Ho = 0.80
H1 => 0.80
X
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P = _____
n
= 83
_______
100
= 0.83
P = 0.80 so q = o.20
Z = p p_______ _______
PQn
= 0.83 0.80 _________
0.80 *0 .20100
= 0.03 ________ 0.0016
= 0.0 30.04
= o.75
= > 1.64
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FINDINGSINDINGS
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FINDINGS
The following are the findings of the study.
1. 51% of the respondents are between the age group 20-30.
2. 39% of the respondents who use the airtel cell phones are servicemen
3. 79% of the respondents are male.
4. 83% & 17% respondents of prepaid and postpaid user respectively.
5. 19% & of the respondents prefer low call rate in airtel connection.
6. 39% of the respondents are finding problem in Network about coverage.
7. 46%& 41% respondents of prepaid and postpaid respectively are rated airtel services
as fine.
8. 19% &21 respondents of prepaid and postpaid respectively are prefer airtel for lowcall rates.
9. 48% & 32% respondents of prepaid and postpaid respectively are prefer aired for
GPRS.
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10. 36 % & 39% respondents of prepaid and postpaid respectively are having airtel
connection above 1 year.
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CONCLUSIONS
Good services is the way to retain the clients
1. Customer likes to use problem free service in the sense of coverage.2. Most of the customers preferred low call rate in their connection.3.
Airtel connection are selling because of best schemes.4. Customer care number does not easily connected .5. Some promotional strategies should be used in rural areas as very less awareness of
value added services in rural area.6. The market potential is greater for airtel since it has a brand name & goodwill amongst
customer.
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SuggestionsFollowing are the suggestions to improve the buying behaviour of consumer.
1. Enormous facilities can be included in airtel services.
2. Still advertisement should be improved so that it will reach all people.
3. New schemes can be introduced exclusively for students.
4. Various kinds of sales promotional activities can be introduced by the Company.
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It can be concluded that the existing customers are satisfied with the airtel service and
is having good prospective customers for airtel services. By creating more
awareness, better coverage, connectivity and new schemes the prospects for airtel
service can be generated. The researchers concluded that A bird without wings
cannot fly likewise, a man without airtel connection in a cell cannot do well in
future.
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ANNEXURENNEXURE
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QUESTIONNAIRE
Name:- __________________________________________
Address:- _________________________________________
__________________________________________
Age: - Below 20 20 to 30
30 to 40 40 Above
Sex:- Male Female
Occupation:- Serviceman Businessman
Student Professional
Income:- ________________
__________________________________________________________________________
_
1. Have you use mobile?
Yes No
2. How many mobile connections do you have?
1 2 3 >3
3. Which Type of mode of services you are using?
Prepaid Post paid
4. Since from you are using Airtel?
New Below 6
Below 1 Year Above 1 year
5. Are you satisfied with Airtel network?
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Yes No
6. Are you happy with that service of Airtel Postpaid/prepaid?
Yes No
7. What do you prefer most in post paid /prepaid connection?
Strong Network Coverage SchemesCall Charges VAS
Other 8. What is your opinion on Airtel tariff plans/schemes?
Excellent FineGood Need some change
9. Which feature you like in Airtel service?
GPRS Games Net Others
10. Rating of Airtel Postpaid/prepaid services over some parameters. 1 2 3 4 5
I. CoverageII. Call ChargesIII. Roaming FacilityIV. SchemesV. Customer Care
1=best 2=good 3=average 4=poor 5=wors1. Are you satisfied with customer care service when the problems occur?
Yes NoIf yes : What kind/ type of problem_____________________________________________________
______________________________________________________
2. you suggest Airtel to your friends/family?
Yes No
3. Are you finding any problem in Airtel Postpaid /prepaid?
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BIBLOGRAPHY
Books
Marketing Research G. C. Beri Research Methodology C. R. Kothari Principles of Marketing Philip Kotler
Websites:
http://www.google.com http://en.wikipedia.org http://www.airtel.in
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Other Marketing research related sites.