Professional Documents
Culture Documents
1) Introduction:
The Indian Telecommunications network with 110.01 million connections is the fifth
largest in the world and the second largest among the emerging economies of Asia.
Today, it is the fastest growing market in the world and represents unique opportunities
for U.S. companies in the stagnant global scenario. The total subscriber base, which has
grown by 40% in 2005, is expected to reach 250 million in 2007.
India's mobile telecom sector is one of the fastest growing sectors. Unlike in the 1990s
when the mobile phone was an elitist product, mobile operators now tap a mass market
with mass marketing techniques. "Unified licensing" rules allow basic and mobile
operators into each other’s territory, and have ushered in perhaps the final phase of
industry consolidation.
It seems that only companies with deep pockets can effectively compete as primary
operators mobile markets. Economies of scale, scope, and end-to-end presence in long-
distance as well as local telecom, are desirable.
There are, besides, new challenges. Operators have to find new growth drivers for the
wire line business. There are problems of getting broadband to take off, of technology
choice, of when to introduce new technologies, and of developing a viable business
model in an era of convergence.
India has the fastest growing mobile markets in the world. The mobile services were
commercially launched in August 1995 in India. In the initial 5-6 years the average
monthly subscribers additions were around 0.05 to 0.1 million only and the total mobile
subscribers base in December 2002 stood at 10.5 millions. However, after the number of
proactive initiatives taken by regulator and licensor, the monthly subscriber additions
increased to around 2 million per month in the year 2003-04 and 2004-05.
Although mobile telephones followed the New Telecom Policy 1994, growth was tardy
in the early years because of the high price of hand sets as well as the high tariff structure
of mobile telephones. The New Telecom Policy in 1999, the industry heralded several
pro consumer initiatives. Mobile subscriber additions started picking up. The number of
mobile phones added throughout the country in 2003 was 16 million, followed by 22
millions in 2004, 32 million in 2005 and 65 million in 2006. The only countries with
more mobile phones than India with 156.31 million mobile phones are China – 408
million and USA – 170 million.
India has opted for the use of both the GSM (global system for mobile communications)
and CDMA (code-division multiple access) technologies in the mobile sector.
The mobile tariffs in India have also become lowest in the world. A new mobile
connection can be activated with a monthly commitment of US$ 5 only. In 2005 alone 32
million handsets were sold in India. The data reveals the real potential for growth of the
Indian mobile market.
As on Apr 2007 India has 167 million mobile phone subscribers. Out of this 125 million
are GSM users and 41 million CDMA users. BSNL, Bharti Airtel, Hutch, Idea, Aircel,
Spice and MTNL are the main GSM providers in India. Reliance Communications and
Tata Indicom are the main CDMA providers in India.
Bharti Airtel
Reliance Communications
Reliance has both CDMA and GSM networks and total subscriber base of 29 million or
17% market share. It has GSM network in Assam, Bihar, Himachal Pradesh, Kolkata,
North East, Madhya Pradesh, Orissa and West Bengal. Reliance has CDMA networks in
other states and cities.
BSNL is a state owned telecom company which has GSM presence in almost every cities
and towns. BSNL has 27 million subscribers with a market share of 16%.
Vodafone is another emerging GSM provider in India with coverage in Kerala, Mumbai,
Delhi, Kolkata, Chennai, Gujarat, Andhra Pradesh, Karnataka and Punjab with a total
subscriber base of 27 million.
Tata Indicom
Tata Indicom is a main CDMA provider in India with 16 million subscribers all over
India. Tata Indicom has presence in almost every state and cities in India.
The name Vodafone comes from Voice data fone, chosen by the company to "reflect the
provision of voice and data services over mobile phones."
Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 21
telecom circles in India. Despite the official name being Vodafone Essar, its products are
Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM
technology, offering voice and data services in 22 of the country's 23 licence areas.
2.5.2) Ownership:
Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian
nationals, 15%.
On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held
by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance
Communications, Hinduja Group, and Essar Group, which is the owner of the remaining
33%. The whole company was valued at USD 18.8 billion. The transaction closed on
May 8, 2007.
There is a substantial body of empirical literature that establishes the benefits of customer
satisfaction for firms.
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation
of the state of satisfaction will vary from person to person and product/service to
product/service. The state of satisfaction depends on a number of both psychological and
physical variables which correlate with satisfaction behaviors such as return and
recommend rate. The level of satisfaction can also vary depending on other options the
customer may have and other products against which the customer can compare the
organization's products.
Because satisfaction is basically a psychological state, care should be taken in the effort
of quantitative measurement, although a large quantity of research in this area has
recently been developed. Work done by Berry, Brodeur between 1990 and 1998 defined
ten 'Quality Values' which influence satisfaction behavior, further expanded by Berry in
2002 and known as the ten domains of satisfaction. These ten domains of satisfaction
N.G.ACHARYA & D.K.MARATHE COLLEGE 14
include: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-
departmental Teamwork, Front line Service Behaviors, Commitment to the Customer and
Innovation. These factors are emphasized for continuous improvement and organizational
change measurement and are most often utilized to develop the architecture for
satisfaction measurement as an integrated model. Work done by Parasuraman, Zeithaml
and Berry between 1985 and 1988 provides the basis for the measurement of customer
satisfaction with a service by using the gap between the customer's expectation of
performance and their perceived experience of performance. This provides the measurer
with a satisfaction "gap" which is objective and quantitative in nature. Work done by
Cronin and Taylor propose the "confirmation/disconfirmation" theory of combining the
"gap" described by Parasuraman, Zeithaml and Berry as two different measures
(perception and expectation of performance) into a single measurement of performance
according to expectation. According to Garbrand, customer satisfaction equals perception
of performance divided by expectation of performance.
The usual measures of customer satisfaction involve a survey with a set of statements
using a Likert Technique or scale. The customer is asked to evaluate each statement and
in term of their perception and expectation of performance of the organization being
measured.
Lisbon, 25 August 2008 - Vodafone obtained the highest customer satisfaction index in
the telecommunications sector in 2007, according to annual results published by Anacom.
Vodafone achieved a satisfaction index of 74.4 (on a scale of 0 to 100), the highest score
of all the companies in the Portuguese telecommunications market and considerably
above the sector average of 67.6.
In the report published by Anacom, Vodafone is ranked in first place in all the indicators
included in the survey: Satisfaction with the operator, Image that customers have of the
In the Perceived Quality indicator, Vodafone obtained a score of 8.3 points for overall
quality, way ahead of the scores of the other two operators (both obtained 7.7 points).
Vodafone comes top in all the indicators for perceived quality of network and services:
technical quality of the network (8.2 points); customer service and advice capability (7.6
points); quality (8.2 points), diversity (8.0 points) and reliability (7.9 points) of products
and services offered; clarity and transparency of information supplied (7.8 points);
network coverage (7.9 points) and clarity and transparency of price plans (7.9 points).
Similarly, in the indicators measuring the Image of mobile operators, Vodafone comes
top in the five categories analyzed (on a scale of 1 to 10): 'It is a reliable company in
terms of what it says and what it does' (8.1 points); 'It is stable and well established in the
market' (8.8 points); 'It contributes positively to society' (7.5 points); 'It cares about its
customers' (7.6 points); and 'It is innovative and forward looking' (8.5 points).
The methodology used in the ECSI Portugal 2007 survey (ECSI – European Customer
Satisfaction Index) is similar to that used by the European Commission to survey
customer satisfaction in 25 Member States, enabling comparisons to be made between the
results obtained in each country.
The ECSI Portugal 2007 Communications survey was carried out by the Higher Institute
of Statistics and Information Management at Lisbon's New University in partnership with
the Portuguese Quality Institute and the Portuguese Quality Association, with
sponsorship from Anacom.
Our research on Vodafone is carried on for guiding specific decisions and its
results are useful only to Vodafone for taking particular decision regarding product
quality, staff and security. Hence the nature of my research study is “APPLIED
RESEARCH “.
Following are the main objective to study about the customer satisfaction on
Vodafone.
There are many benefits related to take this study. Some of the benefits of taking
this study are as follows:
More people will get aware about Vodafone that will increase profit level of
Vodafone.
This study helps to identify the behavior of consumer when there are no offers &
schemes from Vodafone.
Research Design
Data Collection
The first and the most important step of marketing research is properly defining
the problem. In order to identify the research problem two categories of problem should
be carefully noticed.
A number of customers are not satisfied with services, new schemes and offers.
A number of customers are not satisfied with the current call rates of Vodafone.
A number of customers are not satisfied with the Free SMS schemes.
A number of customers are not satisfied with the service of customer care of
Vodafone.
1 Exploratory Research:-
2 Descriptive Research:-
Basically there are two types of data i.e. secondary and primary:
1 Observation Method:
2 Survey Method:
3 Experimental Method.
4 Panel Method.
1 Internal Source:
Various internal sources like employee, books, sales activity, stock availability,
product cost, etc.
The Researcher has used primary data for the core purpose of the project and this
primary data has been gathered by survey method. The researcher has also used
secondary data
C) Sampling Plan:
The researcher has design a sampling plan that is consist of five decisions.
I) Sampling unit:
Who is to be surveyed?
Sample size means limited numbers of respondents covered under the research
study from a population and the researcher has taken a survey of 59 respondents to know
the satisfaction level of customer.
Here the researcher has randomly selected the respondents of the Mumbai city.
After all the above steps are completed now the important step is data analyzing
and interpretation. For this there are various analytical and statistical tools. Some of these
tools are Percentage, Average, Dispersion, Co-relation, Co-efficient, etc.
Purpose:
The main purpose of this question is to know how many respondents use mobile
phone.
Suggestions Yes No
No. of respondents 57 2
3%
Yes
No
97%
Interpretation:
97% of the respondents are have a mobile phone while 3% of the respondents do
not have a mobile phone.
N.G.ACHARYA & D.K.MARATHE COLLEGE 27
Q2) Are you aware about telecommunications services?
Purpose:
The main purpose behind this question is to know about the awareness of
respondents regarding different telecommunications services and also to know about
which telecommunication(operator’s) service they use.
Suggestions Yes No
No. of respondents 59 0
Yes
No
100%
Interpretation:
Major respondents using mobile are enjoying Vodafone services that is 37%.21%
of the respondents use other, 11% of the respondents use Airtel, 8% respondents use Idea
while 13%, 2% and 8% respondents use Reliance, BSNL and Tata Indicom respectively
Suggestions Yes No
No. of respondents 37 22
Purpose:
The purpose behind this question is to know about the awareness of Vodafone
among all the respondents.
Interpretation:
Purpose:
The purpose behind this question is to know from which source the respondents
came to know about Vodafone.
45% of the respondents are aware about Vodafone through Advertisements, 20%
are aware because of Hoardings while 6% and 29% of the respondents are aware because
of Newspapers and Mouth Publicity respectively.
Purpose:
The purpose behind this question is to know about the usage time of Vodafone
customers i.e. since how long they are using Vodafone services.
Interpretation:
Purpose:
The purpose behind this question is to know which services do the Vodafone
customer use, Pre-Paid or Post-Paid.
78% of the respondents use pre-paid services while only 22% of the respondents
use post-paid services.
Q7) Which services are more helpful to you while using Vodafone
Services?
Purpose:
The purpose behind this question is to know which services are more helpful to the
respondent while using Vodafone.
Interpretation:
Purpose:
The purpose of this question is to know how many times and how often the
respondents call at customer care of Vodafone.
Yes
No
100%
Interpretation:
Interpretation
Purpose:
The main purpose of this question is to know the reason of the respondents
regarding calling at customer care.
Network:
Interpretation:
Here major respondents are satisfy with the network coverage. 52% of the
respondents are rate the Vodafone’s network excellent, 13% rate it very good, 13% rate it
farely good while 22% and 0% rate it average and poor.
N.G.ACHARYA & D.K.MARATHE COLLEGE 44
SMS Rates:
Purpose:
Here major respondents are not much satisfied with the SMS rates of Vodafone as
major respondents are youngsters. 0% of respondents rate it excellent, 13% rate it very
good, 35% rate it fairly good, 17% rate it average, 35% rate it poor.
Purpose:
The main purpose of this analysis is to the respondent’s perspective related to the
new schemes and offers provided by Vodafone.
Interpretation:
Here major respondents are not much satisfied with new schemes and offers of
Vodafone. 39% respondents rate new schemes and offers as average, 26% respondents
rate it as fairly good, 31% rate it as very good while 14% and 0% rate it as poor and
excellent respectively.
Customer Care:
N.G.ACHARYA & D.K.MARATHE COLLEGE 47
Purpose:
The main purpose of this analysis is to know about the satisfaction of customer
care service provided by Vodafone to their customers.
Recharge Outlets:
Purpose:
The purpose behind this analysis is to know about the satisfaction of the
Vodafone customers regarding recharge outlets.
Recharge outlets of Vodafone are majorly rated as excellent that is 31%. 26% as
average 13% as fairly good 30% as very good and 0% as poor .
Call Rates:
Purpose:
The purpose behind this analysis is to know about the perception of vodafone
customers regarding different call rates.
Interpretation:
Major percentage of respondents are not happy with the call rates of Vodafone.
39% of respondents rate call rates of vodafone as fairly good, 13% rate it as very good,
22% rate it as average while 13% and 13% respondent rate it as poor and excellent
respectively.
Purpose:
The purpose behind this analysis is to know about the perception of vodafone
customers regarding Value Added Services.
Interpretation:
Purpose:
The purpose of this question is to know why other respondents not aware about
Vodafone services.
Less Advertisement 7
Less Publicity 6
Others 9
Most of the respondant who is not using Vodafone services fell that other
reason for not aware about Vodafone that is 41%. And 32% fell that becase of less
advertisement and 27%because of less publicity.
Purpose:
The purpose of this question is to know why other respondents do not use
Vodafone services.
21%
24%
Lack of awareness
High Prices
Poor Services
22% Poor Network
33%
Interpretation:
Purpose:
Suggestions Yes No
No. of respondents 26 33
97% of the respondents are have a mobile phone while 3% of the respondents do
not have a mobile phone
Major respondents using mobile are enjoying Vodafone services that is 37%.21%
of the respondents use other, 11% of the respondents use Airtel, 8% respondents
use Idea while 13%, 2% and 8% respondents use Reliance, BSNL and Tata
Indicom respectively
Here 63% of respondents are aware about Vodafone Services. While 37% of
respondents are not aware about Vodafone Services.
45% of the respondents are aware about Vodafone through Advertisements, 20%
are aware because of Hoardings while 6% and 29% of the respondents are aware
because of Newspapers and Mouth Publicity respectively.
Major Respondents using Vodafone are old customers. 70% of the respondents
use Vodafone services from past more than 1 year while the lowest is 0%
respondents using Vodafone services less than 1 month. While 26% of the
respondents use Vodafone services from 2-6 months and 4% from 6-12 months.
Here major Respondents are youngsters so they mainly use SMS services of
Vodafone. 37% of the respondents use Vodafone for SMS services while only
14% of the respondents use Vodafone for Value Added Services.
29% of respondents call at customer care for complaining purpose while 29%,
30% and 12% of respondents call customer care for other queries, information
regarding new schemes and value added services respectively.
Here major respondents are satisfy with the network coverage. 52% of the
respondents are rate the Vodafone’s network excellent, 13% rate it very good,
13% rate it farely good while 22% and 0% rate it average and poor.
Here major respondents are not much satisfied with the SMS rates of Vodafone as
major respondents are youngsters. 0% of respondents rate it excellent, 13% rate it
very good, 35% rate it fairly good, 17% rate it average, 35% rate it poor.
Here major respondents are not much satisfied with new schemes and offers of
Vodafone. 39% respondents rate new schemes and offers as average, 26%
respondents rate it as fairly good, 31% rate it as very good while 14% and 0% rate
it as poor and excellent respectively.
Major percentage of respondents are not happy with the call rates of Vodafone.
39% of respondents rate call rates of vodafone as fairly good, 13% rate it as very
good, 22% rate it as average while 13% and 13% respondent rate it as poor and
excellent respectively.
Customer are not satisfied with Value added services of Vodafone. 22%
respondents rate it as fairly good, 4% rate it as very good, 61% rate it as average
while 4% and 9% rate it as excellent and poor respectively.
Most of the respondant who is not using Vodafone services fell that other reason
for not aware about Vodafone that is 41%. And 32% fell that becase of less
advertisement and 27%because of less publicity.
33% don’t use Vodafone services because of high prices. 22% respondents don’t
use Vodafone services because of poor services while 24% & 21% respondents
don’t use vodafone services because of lack of awareness and poor network
respectively.
Follwing are the conclusion that the researcher found after the survey.
From the above analysis the researcher concludes that major respondents are
dissatisfied with some of the major services like call rates, SMS rates and new
Major customers of Vodafone are old customers so many of the respondents are
satisfied with the services of Vodafone and thus they would like to recommend
Vodafone to others.
services.
Major respondents are youngsters so they need more SMS facilities and low call
rates, but Vodafone dissatisfies these age group (18-25) as their call rates and SMS
Following are some of the suggestions given by the researcher so that Vodafone can
Vodafone should provide more offers to Post-Paid customers so that the number
Vodafone should bring introduce some new SMS schemes for the youngsters.
Vodafone should provide more schemes and offers to its old customers.
Websites:
http://www.vodafone.com/start/media_relations/news/local_press_releases/po
rtugal/portugal_press_release/vodafone_had_highest.html
http://en.wikipedia.org/wiki/Customer_satisfaction
http://en.wikipedia.org/wiki/Hutch_(Indian_cellular_company)
http://en.wikipedia.org/wiki/Vodafone
http://bora.nhh.no/bitstream/2330/1919/1/Saplitsa%202008.pdf
www.anacom.pt/render.jsp?contentId=606658
www.iimcal.ac.in/community/consclub/reports/telecom.pdf
www.scribd.com
o Yes
o No
Q2) Are you aware about telecommunications service?
o Yes
o No
If yes, then which operator’s Service do you use?
o Vodafone (Multi-choice)
o Airtel
o Idea
o Reliance
o BSNL
o Tata Indicom ( If not Vodafone then go to Q12 )
Q3) Are you aware about Vodafone?
o Yes
o No (If No, then go to Q11 )
Q4) From which source you came to know about Vodafone?
o Advertisement (Multi-choice)
o Hoardings
o Newspapers
o Mouth Publicity
Q5) Since how long you are using Vodafone services?
o Pre-paid
o Post-paid
Q7) Which services are more helpful to you while using Vodafone services?
o Yes
o No
If yes, how often you call at customer care?
o Daily
o Once a week
o Once a month
o Occasionally
Q9) For what reason you call at customer care?
Network
SMS rates
Customer Care
Recharge outlets
Call Rates
o Less Advertisements
o Less Publicity
o Others
(If others then mention ________________________)
o Yes
o No
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
___
Name: ________________
Sex: Male/Female
Signature: __________