Project Report

Sistema Shyam Teleservices (SSTL)

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Summer Internship Project Report

on

A Study of Factors Influencing Consumer Buying

Behaviour of Wireless Internet Broadband Connection

in

Sistema Shyam Teleservices Ltd.

Pune

In Partial Fulfillment of

University of Pune MBA Degree 2009-11

Indira College of Engineering & Management

by

Jyoti A. Gohil

MBA (Marketing)


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D E C L A R A T I O N

I, the undersigned, hereby declare that the Project Report entitled

“A Study of Factors Influencing Consumer Buying Behavior of Wireless Internet Broadband Connection”

is written and submitted by me to the University of Pune, Pune in partial fulfillment of the requirements for the award of degree of Master of Business Administration under the guidance of Prof. Rachita Bhattacharya. It is my original work and the conclusions drawn therein are based on the material collected by me.

Place: Pune Jyoti A. Gohil

Date: 13th July 2010


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Contents

Particulars Page No. Acknowledgement I List of Tables II List of Figures III Executive Summary 1 Introduction 1.1 Consumer Buying Behavior 2 1.2 Literature Review 6 1.3 Need For the Study 8 1.4 Statement of the Problem 9 1.5 Objectives of the Project 10 1.6 Scope of the Study 11 Profile of the Organization 2.1 Sector Profile 12 2.2 Company Profile 14 2.3 Product Profile 16 Research Design and Methodology 3.1 Research Design 19 3.2 Sampling Design 19 3.3 Sources and Methods of Data Collection 20 3.4 Methods of Data Analysis and Statistical Techniques 20 3.5 Limitations of the Study 21 Data Presentation, Analysis and Interpretation 4.1 Age Profile of the Sample Population 22 4.2 Qualification of the Respondents 23 4.3 Number of People in the Family 24 4.4 Income of the Family 25


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4.5 Different Uses of Internet 26 4.6 Influence of Different Sources of Information on consumer buying decision

27

4.7 Influence of company brand name on customer purchase decision

28

4.8 Influence of Net Speed on customer purchase decision 29 4.9 Influence of area wise connectivity on customer purchase decision

30

4.10 Influence of company price of the product on customer purchase decision

31

4.11 Influence of tariff plan on customer purchase decision 32 4.12 Influence of availability of product in the store on customer purchase decision

33

4.13 Influence of convenience in handling on customer purchase decision

34

4.14 Influence of Different promotional activities undertaken by MTS on customer purchase decision

35

4.15 Influence of offers/discounts provided on customer purchase decision

36

Findings And Observations 37 Suggestions and Recommendations 38 Bibliography A Questionnaire C


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Acknowledgement

First of all I would like to thank the Management at Sistema Shyam Teleservices LTD. (MTS) for giving me the opportunity to do my two month project training in their esteemed organization.

I am highly obliged to Mr. Arun Vajpai (Area Sales Manager) who has provided me guidance, inspiration, perspective and stimulating discussion, through the project. His constant review and excellent suggestions throughout the project are highly commendable.

A study like this cannot be completed without help from other persons and therefore I would like to express my gratitude to Prof. Rachita Bhattacharya to provide me crucial guidance in the analytical part of this project.

My heartfelt thanks to all executives who helped me gain knowledge about the actual working and the processes involved in various departments.

Finally I would like to thank our friends and family member for giving me constant support and encouragement.

Jyoti A. Gohil

MBA Marketing


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List of Tables Table No. Title of the Table Page No. Table No. 1 MBlaze Unlimited Plans 16

Table No. 2 MBlaze Prepaid Plans 18

Table No. 3 MBlaze Postpaid Plans 18

Table No. 4 Age Profile of the Sample Population 22

Table No. 5 Qualifications of the Respondents 23

Table No. 6 Number of People in the Family 24

Table No. 7 Income of the Family 25

Table No. 8 Different Uses of Internet 26

Table No. 9 Sources of Information 27

Table No. 10 Influence of company brand name on customer purchase decision

28

Table No. 11 Influence of Net Speed on customer purchase decision

29

Table No. 12 Influence of area wise connectivity 30

Table No. 13 Influence of company price of the product 31

Table No. 14 Influence of tariff plan on customer purchase decision

32

Table No. 15 Influence of availability of product in the store 33

Table No. 16 Influence of convenience in handling 34

Table No. 17 Influence of Different promotional activities undertaken by MTS

35

Table No. 18 Influence of offers/discounts provided 36


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List of Figures Figure No. Title of the Figure Page No.

Figure No. 1 Shareholding of Sistema and Shyam Groups in SSTL

14

Figure No. 2 Age Profile of the Sample Population 22

Figure No. 3 Qualifications of the Respondents 23

Figure No. 4 Number of People in the Family 24

Figure No. 5 Income of the Family 25

Figure No. 6 Different Uses of Internet 26

Figure No. 7 Sources of Information 27

Figure No. 8 Influence of company brand name on customer purchase decision.

28

Figure No. 9 Influence of Net Speed on customer purchase decision

29

Figure No. 10 Influence of area wise connectivity 30

Figure No. 11 Influence of company price of the product 31

Figure No. 12 Influence of tariff plan on customer purchase decision

32

Figure No. 13 Influence of availability of product in the store 33

Figure No. 14 Influence of convenience in handling 34

Figure No. 15 Influence of Different promotional activities undertaken by MTS

35

Figure No. 16 Influence of offers/discounts provided 36


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Executive Summary


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Growth on the Data Cards, especially happen when business

travelers, academicians as well as other professionals need to access emails and corporate applications as well as personal requirements during urgent trips and travels.

The buying decision of a buyer is influenced by an various consumer decision and expectation. He expects best performance maximum durability and more dependability from a product or service. The decision making is a process whereby a buyer decides to purchase a particular product out of various available alternatives depending upon his ability to purchase and willingness to purchase. This process of selection and final selection is known as buying decision making.

MTS is new in India and has entered in India since September 2008. Within several months, it has surprised other players in the market with its services and wants to capture the market.

From the whole population, sample size of 100 people was selected for data collection. All the necessary data was collected from the selected sample using questionnaires, interviews and schedules. The procedure adopted in the present study is simple random sampling. In this all units in the population has an equal chance of inclusion in the sample.

From the study, it is found that there exist many factors which influence the consumer buying decision of wireless internet broadband connection. They include price, quality, availability of the product, brand name, advertisement of the company. Influence of company’s sales promotional activities has little influence on buying decision of consumer while they purchase wireless internet broadband connection.


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Introduction


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1.1 CONSUMER BUYING BEHAVIOR

a) Definition: Consumer behavior is the study of how individuals, groups, and organizations select, buy, use and dispose of goods, services, ideas or experiences to satisfy their needs and wants. Consumer behavior refers to the mental and emotional process and the observable behavior of consumers during searching, purchasing and post consumption of a product or service.

Consumer behavior involves study of how people buy, what they buy, when they buy and why they buy. It blends the elements from psychology, sociology, socio psychology, anthropology and economics. It also tries to assess the influence on the consumer from groups such as family, friends, reference groups and society in general. The aim is to appreciate the consumer’s decisions and actions. The point of this process is to determine what it is exactly that the buyer wants by studying demographics, psychographics and behavioral variables. This process will also look at the influence that various categories make, such as; Reference groups, friends, family, and general society. Here I have inserted a quote from Belch and Belch describing what consumer behavior is in their eyes: 'The process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires'.

Buyer behavior has two aspects: the final purchase activity visible to any observer

and the detailed or short decision process that may involve the interplay of a number of complex variables not visible to anyone.


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b) Factors Affecting Consumer Buying Behavior: Consumer buying behavior is influenced by the major three factors:

1. Social Factors 2. Psychological Factors 3. Personal Factors.

A. Social Factors

Social factors refer to forces that other people exert and which affect consumers’ purchase behavior. These social factors can include culture and subculture, roles and family, social class and reference groups. Example:

Culture is the fundamental determinant of a person’s wants and behavior.

By taking into consideration Reference group, these can influence/ affect the consumer buying behavior. Reference group refers to a group with whom an individual identifies herself/ himself and the extent to which that person assumes many values, attitudes or behavior of group members. Reference groups can be family, school or college, work group, club membership, citizenship etc. Reference groups serve as one of the primary agents of consumer socialization and learning and can be influential enough to induce not only socially acceptable consumer behavior but also socially unacceptable and even personal destructive behavior.

For example, if fresher student joins a college / university, he/she will meet different people and form a group. In that group there can be patterns of values, for example style of clothing, handsets which most of group member prefer or even destructive behavior such as excessive consumption of alcohol, use of harmful and addictive drugs etc. So, according to how an individual references him / her to that particular reference group, this will influence and change his/her buying behavior.


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B. Psychological Factors

These are internal to an individual and generate forces within, that influence her/his purchase behavior. The major forces include motives, perception, learning, attitude and personality. Example:

Attitude is an enduring organization of motivational, emotional, perceptual and

cognitive processes with respect to some aspect of our environment. Consumer forms attitude towards a brand on the basis of their beliefs about the brand.

For example, consumers of Sony products might have the belief that the products offered by Sony are durable; this will influence those customers to buy Sony products due to this attitude towards the brand.

C. Personal Factors

These include those aspects that are unique to a person and influence purchase behavior. These factors include age, stage in the life cycle, occupation, economic circumstances, lifestyle, values and situational factors.

Example:

Lifestyle is an indicator of how people live and express themselves on the basis of

their activities, interests, and opinions. Lifestyle dimension provide a broader view of people; about how they spend their time, the importance of things in their surroundings and their beliefs on broad issues associated with life and living and themselves. This is influenced by demographic factors and personality.

E.g. A CEO or Manager is likely to buy more formal clothes, ties and shoes or PDAs and less informal clothes like jeans as compared to a Mechanic or Civil engineer. So according to their lifestyle and profession, the buying behavior of people differs from one another.


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c) Applications of consumer behavior:

• The most obvious is for marketing strategy—i.e., for making better marketing campaigns. For example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon. By understanding that new products are usually initially adopted by a few consumers and only spread later, and then only gradually, to the rest of the population, we learn that (1) companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customers, since they will in turn influence many subsequent customers’ brand choices.

• A second application is public policy. In the 1980s, Accutane, a near miracle cure for acne, was introduced. Unfortunately, Accutane resulted in severe birth defects if taken by pregnant women. Although physicians were instructed to warn their female patients of this, a number still became pregnant while taking the drug. To get consumers’ attention, the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers.

• Social marketing involves getting ideas across to consumers rather than selling something. Marty Fishbein, a marketing professor, went on sabbatical to work for the Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. The best solution, obviously, would be if we could get illegal drug users to stop. This, however, was deemed to be infeasible. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them, a goal that was believed to be more realistic.

• As a final benefit, studying consumer behavior should make us better consumers. Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of laundry detergent, you should pay less per ounce than if you bought two 32 ounce bottles. In practice, however, you often pay a size premium by buying the larger quantity. In other words, in this case, knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain.


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1.2 Literature Review From marketing perspective, consumer choice behavior can be studied through the

classical five-step (need–information search–evaluation of alternatives–purchase–post-purchase evaluation) problem solving paradigm or through the progression of consumer choice from a product class to brand choice (Dorsch, Grove, and Darden, 2000). The five-step model is usually suitable for decision making that assumes rational problem solving behavior and, in most cases, complex decision making. The acquisition of a wireless internet broadband connection follows this traditional view of buying process, but is in many situations also affected by symbolic values related to brands.

Consumer choice behavior has some important prevailing conditions that must be taken into account while studying choice. In the light of the classical problem solving buying behavior, consumers engage in information search before making the actual choice. Consumer decision making process is usually guided by already formed preferences for a particular alternative. This means that consumers are likely to make the choice between alternatives based on limited information search activity (Beatty and Smith, 1987; Moorthy, Ratchford and Talukdar, 1997) and without detailed evaluation of the other alternatives (Alba and Hutchinson, 2000; Chernev, 2003; Coupey, Irwin and Payne, 1998; Slovic, 1995). In close relation to information search, evaluation of alternatives has also gained a momentum in recent research (Laroche, Kim and Matsui, 2003). Their study on consumer’s use of five heuristics (conjunctive, disjunctive, lexicographic, linear additive, and geometric compensatory) in the consideration set formation found that conjunctive heuristics is the most often used decision model in the consideration set formation for two product classes in the study (beer brands and fast food outlets). Conjunctive heuristics means that a consumer selects a brand only if it meets acceptable standards, the so-called cutoff point on each key attribute consumer regards as important (Assael, 1995, p. 249; Solomon, 2001, p. 280). In this non-compensatory method of evaluation, a consumer would eliminate a brand that does not fulfill the standards on one or two of the most important attributes, even it is positive on all other attributes.

We limit our analysis in this paper to consumer choice that can range from choice oriented referring to a decision on which alternative to purchase from a set of alternatives, whether or not to purchase, or whether to purchase now or later to value oriented choice (Shuv and Huber, 2000). The latter refers to an evaluation setting, in which each alternative is evaluated on different value criteria.


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Furthermore, consumer choice behavior can either be approached by utilizing

different choice models (see, e.g., Chintagunta, 1999; Bockenholt and Dillon, 2000; Swait and Adamowicz, 2001) or neural networks to model selection decisions (e.g., Papatla, Zahedi and Zekic-Susac, 2002). Papatla et al. (2002) examined empirically brand choice and store choice in regard to margarine, detergent and tissue. The research found that while neural networks have higher probability of resulting in a better performance, hybrid models guaranteed equal or better results than stand-alone models. It has also been pointed that many decision strategies used by consumers can change due to person-, context-, and task-specific factors (Dhar, Nowlis and Sherman, 2000; Swait and Adamowicz, 2001). Therefore, mathematical modeling has its limitations in regard to the fact that consumers tend to utilize different approaches to make choices. Thereby, researchers should pay more attention to factors like task complexity and context in modeling choice behavior (cf. Swait and Adamowicz, 2001). Moreover, Coupey, Irwin and Payne (1998) found that the influence of task and context factors might be greater in situations in which consumer has little prior knowledge and experience.

It is widely accepted that the traditional problem solving approach involving rational decision making to the study of consumer choice may not be suitable for all situations, or is at least incomplete to understand choice behavior. Limited information search and evaluation of alternatives led to a situation in which consumer choice is also driven by hedonic considerations (e.g., Dhar and Wertenbroch, 2000). In general, a common distinction to be made is that while the utilitarian goods usually are primary instrumental and functional, hedonic goods provide fun, pleasure and excitement. It has been noted that many choices have both utilitarian and hedonic features (Batra and Ahtola, 1990), and thus it can also be proposed that the choice between mobile phones has both utilitarian (e.g., communication, time planning) and hedonic (e.g., games, camera) features. The younger the consumer the more hedonistic features consumers tend to value in mobile phones (Wilska, 2003).

Quite similarly, consumer choice can also be approached from the perspective of conscious and non conscious choice (e.g., Fitzsimons et al., 2002). Quite many choice situations occur outside of conscious awareness and with limited information search (Kivetz and Simonson, 2000) and it can be stated that many choices have both conscious and non conscious motives. Fitzsimons et al. (2002) found that in many cases non conscious influences affect choice much more than is traditionally believed by researchers.


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1.3 Need for the Study

Successful marketing requires that companies fully connect with their customers. Adopting a holistic marketing orientation means understanding customers—gaining a 360-degree view of both their daily lives and the changes that occur during their lifetimes so that the right products are marketed to the rights customers in the right way. Also before business can develop marketing strategies, they must understand what factors influence buyer’s behavior and how they make purchase decisions to satisfy their needs and wants.

Buyers are moved by a complex set of deep and subtle emotions. Their behavior results from deeply held values and attitudes, their perception of the world and their place in it, from common sense, impulse or just plain whimsy.

This study basically is done to understand consumers buying habits. It is done to

understand what consumers consider while going for purchasing a wireless internet broadband connection. There are a large number of telecom players who want to capture this huge market of high speed data service (HSD). In this market there are well established telecom players like Reliance Communication (Netconnect), Tata Teleservices (Photon), BSNL, Idea and also there are new players entering the market like MTS and Virgin. This study aims towards collecting information about consumers’ psychology towards wireless internet connection and thus helping MTS in understanding customer’s nature and help in developing strategies which will thus help them in increasing their business. The questionnaire is designed keeping in mind all the important points needed to study customer’s behavior.


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1.4 Statement of the Problem

• What are the consumers’s buying habits in case of wireless internet broadband connection?

• What are the factors that influence the buying decision of the customer’s while purchasing wireless internet broadband connection?

• How do the social factors influence customers buying decision in case of wireless internet broadband connection?

• How do the psychological factors influence customers buying decision in case of wireless internet broadband connection?

• How do the personal factors influence customers buying decision in case of wireless internet broadband connection?

• What strategies should be implemented to increase the market share of MTS MBlaze in Pune region in wireless internet connection?


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1.5 Objectives of the Project

A. Primary Objectives

• To study the buying behavior of the customer

• To determine the factors influencing the consumers` wireless internet connection purchases

• To understand how these factors influence consumers buying decision.

• To find out the basic requirements of the customers from a wireless internet connection

• To find out what marketing strategies should be undertaken to increase the market share of MTS MBlaze in the Pune region

B. Secondary Objectives

• To understand how social factors affect customers buying decision

• To understand how psychological factors influence customers buying decision

• To understand how personal factors influence customers buying decision


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1.6 Scope of the Study This project on factors affecting consumer behavior is focused on the factors that

are influencing customers buying decision while purchasing a wireless internet broadband connection. The main objective of this project is to study customers buying behavior and develop strategies which help MTS in increasing their market share.

The study is mainly focused on various factors that affect consumers buying decision. Three major factors that influence consumer’s behavior viz. social, psychological and personal are studied. Also some other factors like economic and technological factors are studied.

The survey was conducted among different groups and all possible local areas in Pune were considered for the study. The sample size was of 100 people who included people from various age groups and different income levels. The data was collected through filling of questionnaire and interview.

The survey helped in understanding the various factors that influenced the buying decisions of the customers and understanding their needs when it comes to wireless internet connection. This study thus helped in suggesting some strategies to MTS in increasing their number of user’s of MTS MBlaze.


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Profile of the

Organisation


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2.1 Sector Profile

a) Telecom Industry of India

The Indian telecommunications industry is one of the fastest growing in the world. According to the Telecom Regulatory Authority of India (TRAI), the number of telephone subscriber base in the country reached 653.92 million as on May 31, 2010, an increase of 2.49 per cent from 638.05 million in April 2010. With this the overall tele-density (telephones per 100 people) has touched 55.38. The wireless subscriber base has increased to 617.53 million at the end of May 2010 from 601.22 million in April 2010, registering a growth of 2.71 per cent.

b) Investments in Telecom Industry

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. According to the Department of Industrial Policy and Promotion (DIPP), the telecommunications sector attracted foreign direct investment (FDI) worth US$ 2,554 million during 2009-10. The cumulative flow of FDI in the sector during April 2000 and March 2010 is US$ 8,930.61 million.

Further, the Indian telecom sector is expected to witness investment of around US$ 40 billion during the current fiscal, as per the Telecom Equipment and Services Export Promotion Council. With the development of 3G, expansion of the current networks and widening of Broadband Wireless Access (BSA) network, the investment in the sector is likely to increase from the US$ 20 billion witnessed last year.

The telecom industry also witnessed some major merger and acquisition (M&A) deals worth US$ 22.73 billion during April-June 2010, which includes the Zain deal between India’s Bharti Airtel and Kuwait based Zain telecom, Uninor merger of Norway based telecom operator Telenor and India based Unitech. The government has approved the foreign direct investment (FDI) proposal of the Federal Agency for State Property Management of the Russian Federation to buy 20 per cent stake in telecom service provider Sistema-Shyam for US$ 660.1 million.


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c) 3G Services

The Department of Telecom has taken the pioneering decision of launching of 3G services by BSNL and MTNL and initiation of process for auction of spectrum for 3G services to private operators. Allocation of spectrum for third-generation (3G) and broadband wireless access (BWA) services was done through a controlled simultaneous, ascending e-auction process.

All the 71 blocks that were put up for auction across the 22 service areas in the country were sold, leaving no unsold lots. Auction for 3G spectrum ended on May 19, 2010 after 183 rounds of intense bidding over a span of 34 days. The Government is expected to morph revenue worth US$ 14.6 billion. All the available slots across 22 circles have been sold to seven different operators.

d) Data Services

The sales (shipments) of data cards and USB modems crossed the one million mark (1,002,169 nos.) in the 12 months ending June 2009, according to the findings of IDC’s “India Quarterly Data Card and USB Modem Market Review, Q2 CY2009”. The sharp increase in the demand for data cards/USB modems in the last four quarters has gone up from 1.76 lakh units in July-September 2008 quarter to 4.05 lakh in April-June 2009. While in the quarter ending July-September 2008 one data card/USB modem was sold for every 4 notebook computers, this number improved to 3.2 data cards/USB modems sold for every 4 notebook computers in the April-June 2009 quarter. One-thirds of the million data cards/USB modems were sold (shipped) in the first six months – July 2008-Decemeber 2008 – while two-thirds were sold (shipped) in the second half – January-June 2009. Currently the Wireless Internet market is dominated by CDMA operators in the country. CDMA data card/USB modem shipments accounted for nearly 69% of the total market in Q2 CY2009. The average sales value (ASV) or price of a data card/USB modem is around Rs. 3,000; going forward, with increasing demand, prices are likely to come down. This will help improve the overall penetration of wireless internet/broadband. Currently data cards/USB modems are available mostly in bundled offerings from operators. However, with increasing demand, IDC India expects more open market data cards becoming available, thus providing an opportunity to customers to choose their favorite service provider along with their preferred device. Incumbent operators (BSNL and MTNL) are pushing 3G data cards/USB modems to increase subscribers on their recently launched 3G service networks. Private telecom operators are yet to launch 3G services in the country.


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2.2 Company Profile

a) Sistema Shyam TeleServices

Sistema Shyam TeleServices (SSTL) is the fastest growing telecom company in the competitive Indian market, with over 4 million voice subscribers and 70,000 data customers. SSTL has tied up with Mobile TeleSystems OJSC, a JSFC Sistema company of Russia, to bring the globally acclaimed telecom brand – “MTS” - to India. MTS is the 8th largest telecom brand in the world. Millward Brown has recently voted MTS as the 72nd ranked Brand from among the Top 100 Brands in the world.

SSTL is a joint venture company between Sistema {LSE-SSA} of Russia and Shyam Group of India. Sistema is the majority share holder in this joint venture with a 73.71% equity stake, along with the Shyam Group, holding a 23.79% stake and the remaining 2.5% being held by the public. SSTL has been allocated spectrum to provide mobile telephony services in 22 circles across the country. Presently SSTL offers voice & data services in Rajasthan, Bihar/Jharkhand, Kolkata, West Bengal & Sikkim, Chennai, Tamil Nadu, Kerala, Karnataka, Mumbai, Maharashtra/Goa, and Haryana/Delhi & NCR. With the launch of the Andhra Pradesh circle, SSTL will be in 12 circles.

Fig. no. 1 Shareholding of Sistema and Shyam Groups in SSTL


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b) Current Status of the MTS

MTS, the mobile telecom service of SSTL, has seen its subscriber base cross 4 million in April 2010 and the numbers continue to grow exponentially. MTS has completed a year of its operation in India in March 2010. It is the fastest growing telecom brand in the country.

The high-speed mobile broadband service, MBlaze, was launched in November 2009 and has seen tremendous market acceptance with over 70,000 satisfied customers in a short span of time. In April 2010, MTS launched MTS TV for MBlaze customers. SSTL was the FIRST telecom company to launch mobile broadband internet services with speeds up to 3.1 Mbps in Jharkhand in April 2010.

MTS unveiled its green data centre in Chennai in April 2010. In April 2010, Sistema JSFC has been recognized as the ‘Best Russian company of 2009’ operating in India.

SSTL and MTS created history in March 2010 by enabling a first ever Live Webcast to facilitate an open dialogue for public communication with a visiting Head of Government to India. The visiting Chairman of the Government of the Russian Federation, Mr. Vladimir Putin, interacted from the Sistema office in Delhi with an audience that was spread across the metro cities of Mumbai, Kolkata and Bengaluru.

.


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2.3 Product Profile

A. MTS MBlaze Versions

1) MBlaze Premium

• Plug & Play enabled • Speed up to 3.1 Mbps • Fastest uploads at a speed to up to 1.8 Mbps • Micro SD card slot for data storage • Stylish swivel modem for flexible usage 2) MBlaze Standard

• Plug & Play enabled • Speed up to 3.1 Mbps • Fastest uploads at a speed to up to 1.8 Mbps FREE browsing on your favorite websites like - www.yahoo.co.in , www.wikipedia.org , www.makemytrip.com ,www.cricinfo.com , www.shopping.indiatimes.com.

Particulars. MBlazer Unlimited

999 RCV

MBlazer Unlimited

999 FRC

Rental (In Rs.) 999 999

Usages Unlimited Unlimited

Extra Usage Charges Nil Nil

Validity 30 days 30 days

Tab. No. 1 MBlaze Unlimted Plans

Base Tariff Rs 2/MB

Base validity – Life** (As per license period).


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B. Prepaid Tariff Plans

MBlazer Monthly Rental (Rs) Free Usage Validity (in days) Extra Usage Charges

Mblazer 198 198 250 MB 30 Re. 0.50/MB

Mblazer 248 248 350 MB 30 Re. 0.50/MB

Mblazer 498 498 750 MB 30 Re. 0.50/MB

Mblazer 598 598 1 GB 30 Re. 0.50/MB

Mblazer 698 698 2 GB 30 Re. 0.50/MB

Mblazer 798 798 3 GB 30 Re. 0.50/MB

Mblazer 898 898 6 GB 30 Re. 0.50/MB

Mblazer 999 999 Unlimited 30 Not Applicable

Mblazer 1050 1050 10 GB 30 Re. 0.50/MB

Mblazer 1500 1500 15 GB 30 Re. 0.50/MB

Mblazer 3000 3000 30 GB 30 Re. 0.50/MB

Mblazer 5000 5000 50 GB 30 Re. 0.50/MB

Mblazer night* 595 10 GB Night 30 Re. 0.50/MB

MBlazer 1 (3M) 1794 3 GB 90 Re. 0.50/MB

MBlazer 3 (3M) 2394 9 GB 90 Re. 0.50/MB

MBlazer 6 (3M) 2694 18 GB 90 Re. 0.50/MB

MBlazer 10 (3M) 3150 30 GB 90 Re. 0.50/MB

MBlazer 15 (3M) 4500 45 GB 90 Re. 0.50/MB

MBlazer 1 (6M) 3588 6 GB 180 Re. 0.50/MB

MBlazer 3 (6M) 4788 18 GB 180 Re. 0.50/MB

MBlazer 6 (6M) 5388 36 GB 180 Re. 0.50/MB

MBlazer 10 (6M) 6300 60 GB 180 Re. 0.50/MB


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MBlazer 15 (6M) 9000 90 GB 180 Re. 0.50/MB

MBlazer 1 (12M) 7176 12 GB 365 Re. 0.50/MB

MBlazer 3 (12M) 9576 36 GB 365 Re. 0.50/MB

MBlazer 6 (12M) 10776 72 GB 365 Re. 0.50/MB

MBlazer 10 (12M) 12600 120 GB 365 Re. 0.50/MB

MBlazer 15 (12M) 18000 180 GB 365 Re. 0.50/MB

Tab. No. 2 MBlaze Prepaid Plans

C.MTS Postpaid Tariff Plans MTS MBlaze is Available in Post Paid Option with a Special Offer Get free data usage worth Rs. 1596 @ just Rs.500* *Conditions apply. Free data usage of 3GB per month for first two months. Post which customer will be migrated to MBlaze 3.

Mblazer Monthly Rental (in Rs.) Bundled Free Usage Extra Usage charges#

Mblazer 1 598 1 GB 40 p / MB




Mblazer 10 1050 10 GB 40 p / MB

Mblazer 15 1500 15 GB 40 p / MB

Mblazer Night* 499 10 GB 40 p / MB

• # Extra usage charges are valid for 30 days only • Service tax at applicable rates and any other applicable government levies will be

charged extra • Credit limit will be decided as per the payment record of first 3 months from activation • Unutilised data limit will get lapsed with the end of validity period • MBlazer Night usage of 10 GB is valid only between 11PM to 7AM

Tab. No. 3 MBlaze Postpaid Plans


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Research Design

And

Methodology


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3.1 Research Design

This study is concerned with narration of facts and characteristics concerning individual, group or situation in the wireless internet broadband connection market. Hence descriptive research method is used for the study. The major purpose of descriptive study is description of the state of affairs as it exists at present. Sometimes the term Ex post facto research is used for descriptive research study. It includes attempts by researchers to discover causes even when they cannot control the variables. The design is very rigid and not flexible.

3.2 Sampling Design

The universe selected for the study is finite in nature as it includes all the people who are the internet users.

The working individuals in the field of IT, engineering, etc, stock brokers, students pursuing their education in professional courses forms the sampling unit for the study.

Sampling frame considered for studying the consumer behavior are the people dwelling in city of Pune and who internet users.

In this study there scope for estimating the probability that each item in the population has been included in the sample. Hence, non-probability sampling technique is preferred for study, as the samples are deliberately chosen from the huge population. Thus since unrestricted sampling technique of element selection is used the sampling technique used for the study can be defined as convenience sampling.

Since the research design selected is such that it makes provision for protection from any kind of error while selecting the sample and maximize the reliability; there very less chances of sampling errors. Also while selecting the sample for study, due care is taken to minimize the cost as much as possible.


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3.3 Source and Methods of Data Collection

For analyzing the problem both primary and secondary data is required. Various techniques of data collection are used to collect the data.

The techniques used for collecting primary data are questionnaire and schedules. Also telephonic interviews were conducted for the purpose of collecting the data. The questionnaire consisted of 13 questions which collected all the information required for the study. The questions asked were multiple choice questions with 4 to 5 options. Also some close ended questions were asked. In the questionnaire Likert-type scale was used to measure the respondent’s attitude towards a particular feature.

For collecting secondary data several websites and blogs were searched like MTS corporate site, economic times website, etc. Some books related to consumer buying behavior and basic marketing concepts were referred while carrying out the research study marketing management Philip Kotler 13th edition, consumer behavior by Aaker, Kumar and Day, etc. All sources used for the study are listed out in the bibliography at the end of the report.

3.4 Methods of Data Analysis and Statistical Techniques

For analyzing the data, firstly it was edited in order to check that all the forms are filled properly and all the wrong entries were taken care of.

After editing the coding of the data was done by assigning numerals and the data was classified into number of categories according to the attributes under study and different classes.

For analyzing the data various tools like tabular analysis, percentage analysis and graphical analysis are used. For graphical analysis bar graphs are used.


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3.5 Limitations of the Study • The survey was conducted within the limited time frame; so few shortcomings

may be expected.

• The respondent’s personal bias may be another factor, which is uncontrollable.

• The finding of the survey is strictly based on the responses of the respondents. It is difficult to find the euthenics to be true, so we are assuming them to be true.

• It was very difficult to explain the respondents about how to fill the questionnaire & it took time for data collection.

• The sample is too small to study behavior of large population of Pune city. Thus the results obtained cannot be said as the exact replica of the viewpoint of the people of Pune city.


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Data Presentation,

Analysis and

Interpretation


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4.1 Age Profile of the Sample Population

Age Percentage

Less than 18 Years 9

Between 18-23 Years 23

Between 23-28 Years 46

28-45 Years 14

More than 45 Years 8

Tab. No. 4 Age Profile of the Sample Population

Fig. no.2 Age Profile of the Sample Population

Interpretation:

Most of the people are in the age group of 18 to 28 years who are either studying or working in some firms. These people are using internet for various purposes regularly.


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4.2 Qualifications of the Respondents

Qualification Percentage

10th pass or below 2

12th pass 6

Graduate 45

Post Graduate 32

Professional Courses 15

Tab. No. 5 Qualifications of the Respondents

Fig. no. 3 Qualifications of the Respondents

Interpretation:

It can be seen that most of the people are well educated having a graduate or post graduate degrees. These people are those who use internet regularly are the most likely customers of wireless internet connection.


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4.3 Number of People in the Family

Number of People Percentage

Up to 2 Members 9

2-4 Members 13

4-6 Members 70

More than 6 Members 7

Tab. No.6 Number of People in the Family

Fig. no.4 Number of People in the Family

Interpretation:

Most of the family consist of 4 to 6 family members which mother, father and their children. Also some families have their grandparents along with them. Out of 4-5 members in each family at least 2-3 of use internet.


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4.4 Income of the Family

Monthly Income Percentage

Less than Rs.15000 18

Between Rs.15000-Rs.25000 26

Between Rs.25000-Rs.40000 42

More than Rs.40000 16

Tab. No. 7 Income of the Family

Fig. no. 5 Income of the Family

Interpretation:

It is found that families have their income in the range of Rs.15000-Rs.40000. These are those working in one or the firm with high spending power. These people need internet for their business needs and also for their family use.


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4.5 Different Uses of Internet

Tab. No.8 Different Uses of Internet

Fig.no.6 Different Uses of Internet

Interpretation:

It can be observed that mostly use internet either to get in touch with their friends and colleagues or for downloading various stuffs from the internet. Hence they would like to have internet with unlimited download plans.

Uses Number of People

Research/Studies 28

Job Search 80

Email 100

Chatting 92

Downloading 100

Banking/Stocks/Investments 36

News/Weather Reports 20


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4.6 Influence of Different Sources of Information on consumer buying decision

Sources of Information Percentage Friends 33 Relatives 21 Internet 12 Expert Reviews 9 Newspaper/Magazines 7 Television Ads 18

Tab. No.9 Sources of Information

Fig. no.7 Sources of Information

Interpretation: From the above statistics, it is seen that while gathering information about data service people mostly rely on the opinions of their friends and relatives other than any other source. The reason behind this would be that they find the experiences shared by the friends/relatives more true and reliable than any other source.


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4.7 Influence of company brand name on customer purchase decision.

Importance Percentage Extremely Important 54 Somewhat Important 28 Neither Important nor Unimportant 10 Somewhat Unimportant 6 Not at all important 2 Tab. no. 10 Influence of company brand name on customer purchase decision.

Fig. no. 8 Influence of company brand name on customer purchase decision.

Interpretation: It can be seen above that people while going for any technically advanced product, people prefer branded products than local products as they feel branded products are good in quality and are warranty products to use.


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4.8 Influence of Net Speed on customer purchase decision. Importance Percentage Extremely Important 44 Somewhat Important 37 Neither Important nor Unimportant 15 Somewhat Unimportant 4 Not at all important 0

Tab. No. 11 Influence of Net Speed on customer purchase decision

Fig. no. 9 Influence of Net Speed on customer purchase decision

Interpretation: Nearly 50% percent of the people say that Net Speed is important while he/she is to have a wireless internet connection. Good net Speed is required to surf all the websites easily.


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4.9 Influence of area wise connectivity on customer purchase decision. Importance Percentage Extremely Important 39 Somewhat Important 54 Neither Important nor Unimportant 6 Somewhat Unimportant 1 Not at all important 0

Tab. No. 12 Influence of area wise connectivity

Fig.no.10 Influence of area wise connectivity

Interpretation: Large number of people found that internet connectivity of data card should be good across various localities as wireless internet is purchased by customers so that they can use it anywhere they want.


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4.10 Influence of company price of the product on customer purchase decision Importance Percentage Extremely Important 38 Somewhat Important 29 Neither Important nor Unimportant 17 Somewhat Unimportant 9 Not at all important 7

Tab. No. 13 Influence of company price of the product

Fig. no.11 Influence of company price of the product

Interpretation: It can be observed that price of the product plays an important part while purchasing product as people don’t like to spend more of their hard earned money in stuff like internet data card; when they have a wired internet at their house.


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4.11 Influence of tariff plan on customer purchase decision Importance Percentage Extremely Important 36 Somewhat Important 29 Neither Important nor Unimportant 23 Somewhat Unimportant 12 Not at all important 0

Tab. No.14 Influence of tariff plan on customer purchase decision

Fig.no.12 Influence of tariff plan on customer purchase decision

Interpretation: Tariff Plans are the regular expense that they have to pay every month. Hence they want minimum tariffs available while selecting the data card.


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4.12 Influence of availability of product in the store on customer purchase decision Importance Percentage Extremely Important 33 Somewhat Important 26 Neither Important nor Unimportant 19 Somewhat Unimportant 11 Not at all important 11

Tab.no.15 Influence of availability of product in the store

Fig.no.13 Influence of availability of product in the store

Interpretation: According to study, the Data card should be easily available for the people as they would not waste their time in searching the product since it is not very important for them and they do their work using other wired connection.


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4.13 Influence of convenience in handling on customer purchase decision Importance Percentage Extremely Important 15 Somewhat Important 37 Neither Important nor Unimportant 21 Somewhat Unimportant 19 Not at all important 8

Tab.no.16 Influence of convenience in handling

Fig. no.14 Influence of convenience in handling

Interpretation: People will not buy such products which are difficult to handle when they are to be carried along while travelling. Hence the product should be such that it an be easily carried along and easy to use.


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4.14 Influence of Different promotional activities undertaken by MTS on customer purchase decision Promotion Activities Percentage TV Advertisement 5 Friends 18 Retail Stores 14 Company Sales Executive 53 Newspaper/Magazines 7 Other Sources 3 Tab. No. 17 Influence of Different promotional activities undertaken by MTS

Fig.no.15 Influence of Different promotional activities undertaken by MTS Interpretation: It is found company sales team is highly influential in convincing people to go for MTS. Also the reason behind this would be less promotional activities done by MTS through other media sources.


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4.15 Influence of offers/discounts provided on customer purchase decision Importance Percentage Extremely Important 23 Somewhat Important 35 Neither Important nor Unimportant 22 Somewhat Unimportant 13 Not at all important 7

Tab.no.18 Influence of offers/discounts provided

Fig.no.16 Influence of offers/discounts provided

Interpretation:

It is observed that when it comes to purchasing wireless internet card, people go for the one giving attractive offers or discounts. As along the product they get extra benefits to use


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Findings

And

Observations


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• Following are the factors that affect the buying behavior of the consumers with respect to wireless internet connection—

A) Personal factors

1) Age & Life cycle stage: From the survey it is cleared that 69% of people in Pune that were in the survey are in the age group of 18-28 years. These are students from colleges or working individuals with high spending income. Efforts need to be taken to capture this group.

2) Education: Most of the population under survey in Pune is well educated with degree in their hand. Therefore it can be concluded that “Education” is an important stimulus affecting consumers buying behavior

B) Social factors

1) Number of people in the family: Most of the families have 4 to 6 members in it. These include parents, their children and the grandparents. These people’s need could become an influencing factor for the company.

2) Source of Information: Friends and relatives have maximum influence on the buying decision of an individual.

C) Psychological factors

Various psychological factors influence an individual’s buying decision. These factors are brand name of the company, price of the product, promotional activities carried out by the company, availability of the product in the market, tariff plans and offers and discounts available on the product.

1) Brand Name: For 54 % of people brand name is very important for having the data card.

2) Price of the product: 67% people find price as an important factor while taking the purchase decision. Hence price should be such that the customers feel to buy.


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3) Promotional Activities: People like to purchase those products which are heavily promoted in the market. People are adapted to see products being promoted on TV and other media. But MTS has spent very less on such media and more focus is given on direct promotion through sales.

4) Availability of product in the market: 59% of people go for products which are easily available in the market.

5) Tariffs plans, Offers and Discounts: 36% people find tariffs plans important while purchasing data card. Hence they would like to go with minimum tariff plans available in the market.35% people feel that offers and discounts do affect the buying behavior of people. Therefore, they would go with product that comes with most attractive offers and discounts in the market.

D) Economic Factors

1) Income of the family: It is observed that 68% people are earning their monthly income between Rs.15000-Rs.40000. Thus it can be seen Pune citizen have huge spending power, but they would like to spend on useful products available at the best deal.

E) Technological Factors

Various technical aspects considered in study are net speed, area wise connecting and convenience in handling

1) Net Speed: Most of the people use internet for downloading, emailing, etc. This requires having good speed and hence 81% people feel it influential in taking buying decision.

2) Area wise connectivity: The product is used while traveling and would be used in and around the city. Therefore, 93% people find it important to have good connectivity in all possible areas.

3) Convenience in handling: As the product is to be used while travelling, it is important for it to be handy and user friendly with less complex operations.


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Suggestions

And

Recommendations


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Playing with the PLC

MTS has the widest internet data card range and the deepest product line in internet data card market. The segments thus formed and the components extracted indicate that different buyer groups have decision variables, use data card for accessing internet for different purpose and have varied perceptions about brands. All the segments require different pricing strategies and hence MTS should come out with different plans specifically targeting different groups.

MTS has several tariff plans but it would have to improve network connection along with aggressive promotional strategies’ to become an unbeatable advantage in upgrading the consumer throughout his lifetime and also making him brand loyal in the process.

According to study, weak signal strength and slow net connection speed could be a deterrent for MTS MBlaze. Hence MTS should aim to providing higher network coverage, good signal strength and more efficient response requests. This can be done by setting up more network towers and having a more customer friendly focus.

Also it was found that youngsters use internet mostly for entertainment. This target segment can be attracted by advertising in Television and Internet. Also word of mouth publicity clearly scores above all forms of information search, primarily because of its convenience and source credibility. Everybody being surveyed believed in consulting their circle for opinions while buying connections.


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Recommendations on 4 P’s

• Product

• The product should focus on improving service response i.e. better customer service and greater connectivity. This can be done by increasing customer service facility by setting up more number of customer care centers..

• The product should come up with technical advancement like having an in-built memory in the data card.

• During study it was found out that in and around Pune good connectivity is not available. So MTS should increase its infrastructure and reach the areas where it is not present like Dehuroad, Talegaon, Sinhgad, some parts of Kothrud, etc.

• Price

• MTS has the lowest plans available with them and their modem prices are competitive with the other players. Still MTS should keep focus on reducing extra usage rates and become a price leader for price sensitive heavy usage segments.

• Special plans and packages should be provided to corporate customers requiring minimum 5 connections or more than 5 connections

• Promotion

• MTS is investing very less in the promotion of MBlaze. Therefore it should increase its promotion activities.

• It should use pull strategy to promote MBlaze. In pull strategy various methods of promotion like advertising, sales promotion, participating in trade fairs and exhibitions, etc. which are targeted towards the customers to attract them to buy the product.


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• It should focus on TV advertising, print advertising, internet advertising and make its presence felt in the market.

• Also it is found that word of mouth marketing has an excellent effect on the consumer purchasing behavior. So promotion strategies could be given focus on viral marketing campaign like on SMS, e-letters or blogs and so forth.

• Promotion activities should be conducted in college campuses, corporate hubs by arranging special events for students and working individuals, distributing pamphlets in societies, etc.

• Place

• MTS should strengthen its distribution network and also focus on creating more web worlds with easy accessibility outside cities as they are perceived to be authentic by consumers.

• During survey, it was found that MTS uses a number of modes to distribute the modem in the city like directly to retailers, to the distributors and to the sales team. This causes an unusual competition among the distributors and the retailers. To avoid such things MTS should have a single distributor appointed in a particular region and that distributor will supply to the sales team and the retailers in the area.


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Bibliography


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Bibliography Journals

• Beatty, S.E. and Smith, S.M. (1987). External search effort: An investigation across several product categories. Journal of Consumer Research, 14 (1), 83-95

• Moorthy, S., Ratchford, B. and Talukdar, D. (1997). Consumer information search revisited. Journal of Consumer Research, 23 (4), 263-277.

• Alba, J.W., and Hutchinson, J.W. (2000). Knowledge calibration: What consumers know and what they think they know. Journal of Consumer Research, 27 (September),123-156

• Coupey, E., Irwin, J.R. and Payne, J.W. (1998). Product category familiarity and preference construction. Journal of Consumer Research, 24 (4), 459-468.

• Chernev, A. (2003). When more is less and less is more: The role of ideal point availability and assortment in consumer choice. Journal of Consumer Research, 30 (2), 170-183.

• Solomon, M.R. (2001). Consumer Behavior. Buying, Having, and Being. 5th ed. NJ: Prentice-Hall.

• Bockenholt, U. and Dillon, W.R. (2000). Inferring latent brand dependencies. Journal of Marketing Research, 37 (1), 72-87.

• Swait, J. and Adamowicz, W. (2001). The influence of task complexity on consumer choice: A latent class model of decision strategy switching. Journal of Consumer Research, 28 (1), 135-148.

• Press Release of IDC India Ltd. Dated September 18, 2009.


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Websites

• http://www.cybermedia.co.in/press/pressrelease137a.html • http://www.mtsindia.in/corporate/about-sstl.html • http://www.mtsindia.in/corporate/about-mts.html • http://www.eurojournals.com/ejsr_28_4_03.pdf

Books

• Kothari C. R., Research Methodology, 2nd Edition, New Delhi, New Age International (P) Ltd. Publishers, 2004

• Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha, Marketing Management,13th Edition, New Delhi, Pearson Education, 2008

• Leon G. Schiffman, Leslie Lazar Kanuk, Consumer Behavior,9th Edition, New Delhi, Prentice Hall of India Pvt. Ltd., 2007

Newspapers

• The Times of India • The Economics Times • Business Standard


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Questionnaire


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Questionnaire Respected madam/sir,

As a part of my project I would like to gather some information from you which will help me in an in depth study of project. The information provided by you will be kept confidential and will be used for academic purpose only. I would be obliged if you co-operate with me in filling the questionnaire.

1. Name ………………………………………………….

2. Gender a) Male b) Female

3. Age a) Less than 18 years b) Between 18-23 years c) Between 23-28 years d) Between 28-45 years e) More than 45 years

4. Qualification of the Respondents a)10th pass or below b) 12th pass c) Graduate d) Post Graduate e) Professional Courses

5. Size of the Family a) Up to 2 members b) 2-4 members

c) 4-6 members d) More than 6 members

6. Monthly Income of the Family a) Less than Rs.15000 b) Between Rs. 15000-Rs.25000 c) Between Rs. 25000-Rs.40000 d) More than Rs. 40000

7. Do you have an internet connection? a) Yes b) No


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8. For what purpose do you use internet? a) Research/Studies

b) Job Search c) Emails d) Chatting e)Downloading

9. Whom do you consult while buying a wireless internet broadband connection? a) Friends b) Relatives c) Internet d) Expert Reviews e) Newspaper/Magazines f) Television Ads

10. Rate the following attributes according to the importance you give while buying a wireless internet broadband connection?

Attribute Extremely Important

Somewhat Important

Neither Important Nor Unimportant

Somewhat Unimportant

Not at all Important

Brand Name of the Company

Net Speed

Area wise Connectivity

Price of the Product

Monthly Tariff plans

Availability of the Product

Convenience of Handling

Special Offers/Discounts


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11. Are you aware about MTS MBlaze? a) Yes b) No

12. If yes, how did you come to know about MTS MBlaze? a) TV Advertisement b) Friends c) Retail Stores d) Company Sales Executives e) Newspaper/Magazines f) Any Other Source (Please Specify)……………....

13. Now that you know about MTS MBlaze would you like to purchase it? a) Yes b) No

14. Any Suggestions …………………………………………………………………………… ……………………………………………………………………………

Thank you!!!


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Documents

Project Report