Consumer Behaviour Project

Impact of Service Quality on Customer Satisfaction of
Mobile Users A Case Study of Airtel

Abstract: Qualitative services deregulation or free competition and new technology have
increased competition and widened the range of network services available throughout the
world. This increase in telecommunication capabilities allows business to benefit from the
information revolution in numerous ways, such as reforming their inventories, increasing
productivity, and identifying new markets. But at the same time, in cellular mobile service
sector, the customers switch out rate is much higher than any other service sector. To retain
their customers, these companies have to enhance the quality of services so that the
customer adheres to the same company for much longer. Chi square test is applied in this
paper to check the authenticity of data given by the respondents. This research aims to figure
out the impact of service quality on customer satisfaction of mobile users by analyzing
measures taken by the Airtel and customer satisfaction level and factors that affect quality of
services which will result in customer loyalty toward the operator.
Keywords: Service quality, Customer satisfaction, Airtel, Tariff plans, VAS etc.

Dr. Rajesh K. Yadav
Associate Professor & H.O.D. Department of Management
RKDF College of Engineering, Bhopal, India

Mr. Nishant Dabhade
Assistant Professor, Department of Management
RKDF College of Engineering, Bhopal, India
I SSN 2319-9725

May, 2013 www.ijirs.com Vol 2 Issue 5

International Journal of Innovative Research and Studies Page 140

1. Introduction:
The telecom services have been recognized the world-over as an important tool for socio-
economic development for a nation. It is one of the prime support services needed for the
rapid growth and modernization of various sectors of the economy. Economy becomes
handicapped in the absence of a sound telecom network system. The postal and telecom
sectors had a slow and uneasy start in India. In 1850, the first experimental electric telegraph
Line was started between Calcutta and Diamond Harbor. In 1851, it was opened for the
British East India Company. The Posts and Telegraphs department occupied a small corner of
the Public Works Department, at that time.
The Indian telecom industry is the world's fastest growing telecom industry. It is also the
second largest telecommunication network in the world in terms of number of wireless
connections after China. Cellular services can be divided into two categories: Global System
for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The GSM
sector is dominated by Airtel, Vodafone, and Idea Cellular, while the CDMA sector is
dominated by Reliance and Tata Indicom. Deregulation and new technology have created
increased competition and widened the range of network services available throughout the
world. To retain the customers, companies have to enhance the quality of services provide so
that the customer adheres to the same company for much longer.
As per the ITU (International Telecommunication Union) Quality of Service is a set of
quality requirements on the collective behavior of one or more objects. It is basically the level
of guaranteed services to a user. Nowadays the level of guaranteed service is very important
for an organization to progress and survive in this competitive market. An organization needs
both to meet and exceed the expectations of the customer. The basic criterion on which a
customer expects from a company is their past experiences, others past experiences (word of
mouth) and the marketing strategy of the company.
The quality of services provided are directly proportional to the customer satisfaction and
word of mouth as each customer generally compares the tangible services with their own
expectations and if the tangible one falls below their expectations, the customer generally is
disappointed and that affects his loyalty towards the company.



2. Service Quality:
The definition of quality may vary from person to person and from situation to situation. The
definitions of service quality vary only in wording but typically involve determining whether
perceived service delivery meets, exceeds or fails to meet customer expectations.
Parasuraman (1988) define service quality as the degree and direction of discrepancy between
the consumers perceptions and expectations, or the extent to which a service meets or
exceeds customer expectations. So the service quality is the difference between customers
expectations and perceptions of services delivered by a service firm. [8, 10]

2.1. Service Quality (Servqual) Dimensions:
Reliability:
Providing service as promised.
Dependability in handling customer service problems.
Performing services right at the first time.
Providing services at the promised time.
Maintaining error-free records.
Responsiveness:
Keeping customers informed as to when services will be performed.
Prompt service to customers.
Willingness to help customers.
Readiness to respond to customers requests.
Assurance:
Employees who instill confidence in customers.
Making customers feel safe in their transactions.
Employees who are consistently courteous.
Employees who have the knowledge to answer customer questions.
Empathy:
Giving customers individual attention.
Employees who deal with customers in a caring fashion.
Having the customers best interest at heart.
Employees who understand the needs of their customers.
Convenient business hours.
Tangibles:


Modern equipment.
Visually appealing facilities.
Employees who have a neat, professional appearance.
Visually appealing materials associated with the service.
[8, 10]

2.2. Service Quality Gap:
A gap is the difference, imbalance or disparity which is determined to exist between
customers perception of firm performance and their prior expectation. Service quality (SQ)
perceived by customers is therefore as a result of a comparison of customers expectation (E)
of services that the organization should offer versus their perception of the performance (P)
delivered by the service organization.
Service Quality (SQ) = Customers Perception (P) Customers Expectations (E)
Management of service quality largely focuses on managing the gaps between expectations
and perceptions of customer. The goal of the firm is to minimize the gap between (P) and (E).
[13]

3. Customer Satisfaction:
Customer satisfaction is a personal feeling of either pleasure or disappointment resulting from
the evaluation of services provided by an organization to an individual in relation to
expectations. Service providers frequently place a higher priority on customer satisfaction,
because it has been seen as a prerequisite to customer retention. As a positive outcome of
marketing activities, high customer satisfaction leads to repeat visitation to stores, repeat
product purchases, and word-of-mouth promotion to friends, while low customer satisfaction
has been associated with complaining behavior. A satisfied customer often stays loyal longer,
and is likely to patronize the firm in future. [13]
Generally, there are two general conceptualizations of satisfaction, namely, transaction
specific satisfaction and cumulative satisfaction. Transaction-specific satisfaction is a
customers evaluation of his or her experience and reactions to a particular service encounter
while cumulative satisfaction refers to the customers overall evaluation of the consumption
experience to date. [10]



4. Relationship Between Service Quality And Customer Satisfaction:
In the previous part of this research we have understood the basic meaning of service quality
and customer satisfaction but here we are going to understand the relationship between both
of them.
There are four potential gaps (Knowledge gap, Service design and standard gap, Service
performance gap, communication gap) within the service organization that may lead to a final
and most serious gap: The difference between what customers expected and what they
perceived was delivered. If we talk about importance of service quality for the mobile users,
so we come to know that gaps at any point in service design and delivery can spoil
relationship with the customers. Since services are everywhere. Even goods sector needs
service to complete the process worker, specialist staff, computer operations, accountant
and legal staff and so on. That's why at the time of delivering the services we should
effectively and qualitatively use strategies of service marketing and try to fill the gaps of
GAP model by using the appropriate techniques of service marketing when it comes to
customer satisfaction.
Following figure shows the factor that leads to customer satisfaction.
Call Quality
Call drop rate
Geographical coverage
Call forwarding/waiting
Service Quality
SMS
Mobile activity
New Technology
Call rate
Promotional offers
Product range
Complaint resolution
Grievance redressal
CRM
Innovativeness
Reliability
Responsiveness
Call Service
Facility
Price
Customer care
Service provider
Communication
Preference
Customer
Satisfaction
VARIABLES DIMENSIONS ABSTRACTION BEHAVIOR
Figure 1: Factor leads to customer satisfaction


5. Rational Of The Study:
The various sectors of the economy like banking, finance and industry which have recently
developed fields of their own have grown up considerably in the past few years due to the
growth of telecom sector. The telecom sector now includes a good number of national and
multinational companies. Providing varied mobile communication services to the mobile
users within the country. Every day there is a significant rise in the number of mobile users
from both urban and rural areas, with rural areas rapidly catching up .The companies
providing mobile services have also become competitive and are ready to capture the
maximum market share. The business of all such companies namely BSNL, MTNL, Bharti
AIRTEL, Reliance India communication, Tata Telecom, Idea, etc is expanding very fast
throughout the country while on the other hand the branded handsets of Nokia, Motorola,
Samsung, Reliance, Tata Telecom and many more have established their name in the market
with a wide variety of feature loaded handsets of all price ranges.. Moreover certain recent
developments in the telecom sector have really increased the expectations of the customers.
Some of these developments include:
I. The Emergence of 3G & Broadband Wireless services
II. Mobile Number Portability
III. Network Expansion in Rural Areas.
It is really worth mentioning that in the last five years, the number of mobile users has
increased tremendously. The number of telephone subscribers in India increased from 906.93
million at the end of Sep-11 to 926.53 million at the end of Dec-11, registering a growth of
2.16% over the previous quarter as against 2.36% during the QE Sep-11. This reflects year-
on-year growth of 17.69% over the same quarter of last year. The overall Tele density in
India has reached 76.86 as on 31st December 2011. Subscription in Urban Areas grew from
601.72 million at the end of Sep-11 to 611.19 million at the end of Dec-11, taking the Urban
Tele density from 166.01 to 167.85. Rural subscription increased from 305.51 million to
315.33 million, and the Rural Tele density increased from 36.40 to 37.48. Share of Rural
areas in total subscription has increased from 33.69% at the end of Sep-11 to 34.03% at the
end of Dec-11. Now with such a fast expansion of the mobile user market it is very important
for the companies to be conscious about their role in providing quality services to their
customers so as to generate customer satisfaction. In the present scenario, the said aspect has
become very important and a comprehensive and realistic assessment needs to be done. Since
satisfied customer is the core concern of any organization therefore they pay close attention


toward the factors that influence a customers decision towards brand. The main purpose of
this research study is to investigate the key variables that are having strong influence on
customer satisfaction in telecom sector and influence purchasing decision of customers.
Factors affecting customer satisfaction are key concern for any organization, department or
country because through customer satisfaction any business can establish long term profitable
relationship with customer. The reason behind is once a firm loses its loyal customers it has
to incur a cost of acquiring them again in addition to acquiring the new ones. Keeping up in
mind the above issues the research study has been contemplated.

6. Review of Literature:
The study of Siew-Phaik Loke, Ayankunle Adegbite Taiwo, Hanisah Mat Salim, and Alan G.
Downe (2011) by using the SERVQUAL model, their study aimed to examine the impacts of
reliability, responsiveness, assurance, empathy and tangible aspects on customer satisfaction.
Gap analysis was used to determine the perceived importance and satisfaction on each
dimension of service quality, and regression analysis was conducted to test the relationship
between service quality and levels of customer satisfaction. Results indicated that reliability,
responsiveness, assurance and empathy significantly positively influenced customer attitudes
in terms of satisfaction and loyalty. In addition, t-test results showed that there was a
significant gap between the perceived satisfaction and importance (P-I) on all of the service
quality dimensions. [13]
The aim of the study of Hashed Ahmed Nasser, Salniza Bt Md. Salleh, Hamid mahmood
Gelaidan (2012) is to find out the customers satisfaction with Yemeni Mobile service
providers. This study examined the relationship between perceived quality, perceived
value, customer expectation, and corporate image with customer satisfaction. The result
of this study is based on data gathered online from 118 academic staff in public
universities in Yemen. The study found that the relationship between perceived value,
perceived quality and corporate image have a significant positive influence on customer
satisfaction, whereas customer expectation has positive but without statistical
significance. [5]
According to Olu Ojo (2010) his study investigates the relationship between service quality
and customer satisfaction in the telecommunication industry with a focus on Mobile
Telecommunication Network (MTN) Nigeria. A total of 230 respondents participated in the
study. Research questions and objectives were set, alongside the hypotheses that were


formulated and tested. Descriptive statistics comprising the simple percentage and tables
were used for data presentation and analysis. Regression analysis and Pearson product
moment correlation coefficient were employed in testing our hypotheses. The study reveals
that service quality has effect on customer satisfaction and that there is a positive relationship
between service quality and customer satisfaction. The researcher concluded by
recommending that organizations should focus more attention on service quality, because of
its effects on customer satisfaction. To ensure that customer satisfaction level is high,
organization must first of all know the expectations of the customers and how they can meet
such expectations. Customer satisfaction helps in customer loyalty and retention. It has been
discovered that it costs to attract new customer than to retain existing ones. It is also
recommended that organizations should welcome suggestions from customers and more
programmes should be designed to measure service quality and customer satisfaction. [10]
According to Rajkumar Paulrajan and Harish Rajkumar (2011), a research study was
conducted with an objective to understand the Indian consumers perception choice in
selecting cellular mobile telecommunication service providers. Consumers perception is
widely varied in accordance with the Communication quality, call service, facilities, price,
customer care and service providers attributes. A structured questionnaire was developed to
collect the required primary data from the consumers. Collected data were analyzed;
reliability and factor analysis were carried out. The outcome of this research shows a
comprehensively integrated framework to understand the relationships among several
dimensions. The study shows communication and price were most influential and most
preferential factors in selecting telecommunication service provider. However, product
quality and availability has a significant impact on consumer perception choice in selecting
cellular mobile service provider. [12]
In the research of Dr. Muhammad Sabbir Rahman (2012), the purpose of this paper is to
find out the determinants that are significantly influencing telecom customers
perception in Bangladesh. The study surveyed 450 telecom customers in Bangladesh
from Dhaka city to determine the key influential factors that significantly influence on
their perception. The data analyses were conducted by exploratory factor analysis,
confirmatory factor analysis and structural equation modeling to test the hypothesis.
The results of the statistical analysis reflected that most of the telecom customers are
highly concerned about service quality followed by corporate image. Few studies have
explored over the years under this market regarding this research issue. Moreover, this
is a relatively new issue that remains largely undiscovered by researchers under


underdeveloped countrys telecom operators perspective. It is hoped that the findings
may assist the mobile phone operators in production of their services and promotion of
their services. [4]
According to the Ming wang and chich-jen shieh (2006), the present paper, taking
Change Jung Christian University (CJCU) Library as an example, investigates the user
degree of importance and the performance provided by the library. This study explores
overall user satisfaction as well. A questionnaire survey is conducted to reveal user
perspectives on service quality. Based on literature, service quality has five dimensions,
which are tangibles, responsiveness, reliability, assurance and empathy. The result
indicate that the overall service quality has a significantly positive effect on overall user
satisfaction. Among these five dimensions except responsiveness, all of them have a
significantly positive effect on overall user satisfaction. In addition, the top five
important service quality features ranked by users are; collections, loaning and
returning services, overall atmosphere, electronic database system, and online
reservation and renewal. [8]
According to Oyeniyi, Omotayo and Abiodun Abolaji Joachim (2008), Customer service has
received considerable attention in marketing literature. This paper attempts to find the
relationship between customer services on customer retention in telecommunication industry
in Nigeria. If retention is not managed, customers loyalty may be lost. This study examined
the potential constructs in customer retention by investigating the chain of effects of retention
from customer service, satisfaction, value and behavioral intention. The hypotheses are
supported except that a higher level of customer satisfaction does not lead to customer
loyalty. [11]
According to Ofir Turel, Alexander Serenko (2006), while customer satisfaction and loyalty
regarding most physical goods and services have been well explored in academic literature,
there exists little research on these factors with respect to mobile telecommunications
services. Nevertheless, standardized satisfaction measures are suggested to be useful for
various telecom-industry stakeholders. However, such a global standard measure of
satisfaction with mobile services does not exist. This study taps into these voids and
examines the antecedents of customer satisfaction and loyalty through an empirical
investigation of 210 young adult cellular subscribers in Canada by adapting the American
Customer Satisfaction Model. Based on this model, the satisfaction index of young adult
Canadians was calculated. Overall, this study offers insights for service providers,


policymakers and subscribers; and forms the foundation for future benchmarking of the
performance of wireless network operators in terms of user satisfaction and loyalty. [9]

7. Research Methodology:
The study is a descriptive study. Questionnaire is designed to collect the data from various
mobile users of Bhopal, Indore, Jabalpur and Gwalior.
7.1 Objectives Of The Study:
To analyze the satisfaction level of customers on the basis of Quality of Service
provided by Airtel.
To analyze the factors which may affect the quality of services provided to the
customers by Airtel.
To analyze improvements and measures which are followed up by the Airtel to
enhance satisfaction level of their customer.
To study the impact of service quality on customer loyalty towards Airtel.

7.2 Hypothesis:
All customers using services of Airtel are highly satisfied.
Factors in external environment may affect the quality of services provided to the
customers by Airtel.
Improvements and measures which are followed up by the Airtel to enhance
satisfaction level of their customer affect the business of Airtel positively.
There may be positive impact of service quality on customer loyalty towards
Airtel.

7.3 Sampling Plan:
Sampling Unit: Target groups (Mobile users and Airtel officials)
Sample Size: 450 (400 Users from Bhopal, Indore , Jabalpur and Gwalior and 50
Airtel officials)

7.4 Research Approach:
Survey (Primary data is collected through self structured questionnaire).



8. Questionnaire:
8.1 Questionnaire For Airtel Officials:
1. Airtel enhances call / voice quality to satisfy the needs of the customer?
S.NO. OPINION NO. PERCENT (%)
1 Strongly agree 25 50
2 Agree 10 20
3 Disagree 07 14
4 Strongly disagree 08 16
Total 50 100
2 =17.04 df= 3, 2 (.05) = 7.81
When asked to the Airtel officials that Airtel enhances call / voice quality to improve the
service quality, majority of 50% users were strongly agree and 20% of users were agree while
only 14% and 16% were disagree and strongly disagree respectively. The chi square value
clearly indicates that opinion of the respondents was significantly different about the fact on
calls / voice quality.

2.Airtel provide disturbance free network backed by state-of-the-art customer service setup?
2 Agree 11 22
3 Disagree 09 18
Total 50 100
2 =29.2 df= 3, 2 (.05) = 7.81
When it is asked to the Airtel officials that provide disturbance free network, then majority of
56% and 22% users were strongly agree and agree respectively while only 18% and 4% were
disagree and strongly disagree respectively. The chi square value radically shows that opinion
of the respondents was significantly different on asking about disturbance free network.



3. Airtel provides low international tariffs with value added plans for service quality?
2 Agree 15 30
3 Disagree 12 24
Total 50 100
2 =0.72 df=3, 2 (.05) = 7.81
When it is asked to the staff members of Airtel that Airtel provides low international tariffs
with value added services, 24% and 30% were strongly agree and agree respectively and said
that Airtel provide this service and 24% and 22% were disagree and strongly disagree
correspondingly. The chi square value completely shows that the opinion of respondents was
significantly identical when it comes to low international tariffs with value added services.
4. Airtel provides Service guarantee for qualitative services?
2 Agree 13 26
3 Disagree 11 22
Total 50 100
2 =4.24 df=3 , 2 (.05) = 7.81
On asking to the officials of Airtel that Is Airtel providing service guarantee for their
potential customers, then group of 36% and 26% were strongly agree and agree respectively
and only 22% and 16% were disagree and strongly disagree in that order. The chi square
value entirely shows that the opinion of respondent was significantly similar and majority of
staff is in favor that they provide service guarantee for attracting new ones.

5. Airtel enhances the geographical coverage by setting up new network tower systems?
2 Agree 24 48
3 Disagree 04 8
Total 50 100
2 =29.68 df=3 , 2 (.05) = 7.81


When it is asked to the officials of Airtel that geographical coverage is enhanced by Airtel by
setting up new network tower systems, then mass of 40% and 48% were strongly agree and
agree respectively and only 8% and 4% were disagree and strongly disagree correspondingly
on this fact. The chi square value radically shows that the opinion of respondents was
significantly different when talking about new network tower systems.
6. Airtel facilitates up-to-the-minute technology to satisfy the needs of young generation?
2 Agree 25 50
3 Disagree 08 16
Total 50 100
2 =23.44 df=3 , 2 (.05) = 7.81
On asking to the employees of Airtel that Airtel satisfy the needs of young generation by
providing new technology then only 30% were strongly agree and as a group of 50% were
agree and said that Airtel provides up-to-the-minute technology and 16% respondents were
disagree and only 4% were strongly disagree about it. The chi square value clearly indicates
that the opinion of respondents was significantly different.
7. Airtel provides good number of promotional offers with affordable tariff plans?
2 Agree 18 36
3 Disagree 15 30
Total 50 100
2 =6.48 df= 3, 2 (.05) = 7.81
On asking to the staff members that Airtel provides good number of promotional offers with
affordable tariff plans then only 22% were strongly agree and as a group of 36% were agree
and said that Airtel provides affordable tariff plans and 30% respondents were disagree and
12% were strongly disagree about it. The chi square value clearly indicates that the opinion of
respondents was significantly identical on tariff plans and promotional offers.



8. Airtel set up a grievance redressal cell for the complaint resolution of customers?
1 Agree 22 44
2 Dont know 15 30
3 Not sure 13 26
4 None of these 00 00
Total 50 100
2 =20.24 df= 3, 2 (.05) = 7.81
When it is asked to the respondents that Airtel establishes a grievance redressal cell for the
complaint resolution of customers then 44% were agree and 30% of people dont know about
that and 26% were not sure. Also the chi square value fundamentally shows that the opinion
of respondents was significantly different.
9. Airtel establishes customer relationship management (CRM) cell for the interactive
session with customers?
1 Agree 28 56
2 Dont know 08 16
3 Not sure 14 28
Total 50 100
2 =33.52 df= 3, 2 (.05) = 7.81
On asking to the respondents that Airtel establishes customer relationship management then
56% were agree and 16% of people dont know about that and 28% were not sure. Also the
chi square value fundamentally shows that the opinion of respondents was significantly
different on CRM cell.
10. Airtel provides instant feedback system to the customers?
2 Agree 15 30
3 Disagree 09 18
Total 50 100
2 =11.76 df=3, 2 (.05) = 7.81
When it is asked to the staff members of Airtel that Company provides instant feedback to
their customers, then 42% were strongly agree said that and 30% were agree Airtel provide


this service and 18% and 10% were disagree and strongly disagree respectively. The chi
square value completely shows that the opinion of respondents was significantly different
when it comes to Instant feedback system.
8.2 Questionnaire For Mobile Users:
1. Are you satisfied with Airtel services?
1 Partially 123 30.75
2 Fully 98 24.5
3 To some extent 179 44.75
Total 400 100
2 =168.04 df=3 , 2 (.05) = 7.81
When it is asked to the users of Airtel that Are you satisfied with Airtel services, 30.75% were
partially satisfied and 24.5% were fully satisfied with the services and 44.75% respondents
were satisfied up to some extent. Also the chi square value primarily shows that the opinion of
respondents was significantly different when talking about satisfaction with Airtel services.
2. Quality of services of Airtel majorly differentiates Airtel from others?
2 Agree 85 21.25
3 Disagree 75 18.75
Total 400 100
2 =108.98 df=3, 2 (.05) = 7.81
On asking to the respondents that Quality of services differentiates Airtel from others, 47%
and 21.25% of them were strongly agree and agree in that order and only 18.75% were
disagree and 13% were strongly disagree with the statement. Also chi square value depicts that
the opinion of respondents was significantly different.
3. Are you satisfied with services at Airtel call centre?
1 Partially 85 21.25
2 Fully 136 34
3 To some extent 179 44.75
Total 400 100


2 =177.61 df=3, 2 (.05) = 7.81
When it is asked to the users of Airtel that Are you satisfied with services at Airtel call centre,
21.25% were partially satisfied and 34% were fully satisfied with the services and 44.75%
respondents were satisfied up to some extent. Also the chi square value radically shows that
the opinion of respondents was significantly different when talking about satisfaction at Airtel
call centre.
4. Most of the customer uses Airtel due to good network coverage?
2 Agree 219 54.75
3 Disagree 20 5
4 Strongly disagree 05 1.25
Total 400 100
2 =327.22 df=3, 2 (.05) = 7.81
When it was asked to the users that they Airtel due to good network coverage, 39% were
strongly agree and 54.75% were agree While only 5% and 1.25% were disagree and strongly
disagree respectively. The chi square value completely shows that the opinion of respondents
was significantly different on this fact.
5. Customer prefers Airtel services due to brand value?
2 Agree 167 41.75
3 Disagree 99 24.75
Total 400 100
2 =45.68 df= 3, 2 (.05) = 7.81
When it was asked to the users that they Customer prefers Airtel services due to brand value,
then 15.25% were strongly agree and majority of 38.5% were agree While only 29% and
17.25% were disagree and strongly disagree respectively. The chi square value completely
shows that the opinion of respondents was significantly different on this fact.



6. Customer oriented call centers and competitive service offers compels customer to use
Airtel services?
1 Strongly agree 89 22.25
2 Agree 149 37.25
3 Disagree 107 26.75
Total 400 100
2 =45.96 df= 3, 2 (.05) = 7.81
On asking to the customers that Airtel provides competitive service offers, then 22.25% of
respondents were strongly agree and 37.25% were agree and only 26.75% and 13.75% of
respondents were disagree and strongly disagree about it respectively. The chi square value
radically shows that opinion of the respondents was significantly different when it comes to
choosing Airtel due to competitive service offers.
7. Airtel provides better voice quality, Accurate billing system and low call drops for
customer satisfaction?
2 Agree 184 46
3 Disagree 68 17
Total 400 100
2 =95.94 df= 3, 2 (.05) = 7.81
When it is asked to the users that Airtel provides better voice quality, Accurate billing system
and low call drops, then 16.25% were strongly agree and 46% were agree with this service and
17% and 20.75% respondents were disagree and strongly disagree simultaneously. Also the chi
square value radically shows that the opinion of respondents was significantly different when
talking about better voice quality, Accurate billing system and low call drops for customer
satisfaction.
8. Quick response and customer relationship management helps in enhancing customer
loyalty?
2 Agree 154 38.5


3 Disagree 116 29
Total 400 100
2 =56.54 df=3, 2 (.05) = 7.81
When it was asked to the users that loyalty increases due to quick response and customer
relationship management, then 15.25% were strongly agree and majority of 38.5% were agree
While only 29% and 17.25% were disagree and strongly disagree respectively. The chi square
value completely shows that the opinion of respondents was significantly different on this
fact.
9. Airtel campaign Har ek friend jaroori hota hai helps in raising customer loyalty by
connecting youth across the nation?
2 Agree 197 49.25
3 Disagree 51 12.75
Total 400 100
2 =158.5 df=3, 2 (.05) = 7.81
When it was asked to the telecom users that Airtel campaign Har ek friend jaroori hota hai
helps in retaining and attracting potential customers, mass of 28.5% and 49.25% were
strongly agree and agree respectively and said that this is the one of the influensive campaign
of Airtel for connecting youth across the nation and only 12.75% and 9.5% were disagree and
strongly disagree respectively by this statement. The chi square value radically shows that the
opinion of respondents was significantly different when talking about Airtel campaign.
10. Customers are loyal towards the Airtel because of brand strength, network quality and
better customer care services?
2 Agree 105 26.25
3 Disagree 65 16.25
Total 400 100
2 =47.02 df=3 , 2 (.05) = 7.81


On asking to the respondents that they are loyal towards the Airtel because of brand strength,
network quality and better customer care services, then 47% and 26.25% of them were
strongly agree and agree in that order and only 16.25% were disagree and 10.5% were strongly
disagree with the statement. Also chi square value depicts that the opinion of respondents was
significantly different.

9. Findings:
Due to wide and best network coverage in the industry, Users enjoy crystal clear voice
quality from Airtel.
Low call drop facility plays an important role in customer satisfaction. If the customer is
satisfied then he/she automatically promotes the network and services of service provider
among the people by word of mouth.
In this highly competitive scenario in the telecom sector, Service quality generates fair
competition among the small as well as giant player of the industry. Hence disturbance
free network system satisfies the need of the customers.
Airtel provides comparatively high tariff plans but still it is in the customer preference
because of disturbance free network backed by state-of-the-art customer service setup.
Airtel offers services with new technology for customer satisfaction but the consideration
should be given on sustainability of users not only offering a new technology.
Since Airtel is an older and giant player of the telecom sector and being the best in terms
of customer preference, Airtel is providing service guarantee.
For the qualitative and disturbance free services, Airtel pays heed on setting up new
network towers for connecting people across the country and attracting potential
customers.
Customers are indifferent on the fact that IDEA provides low international tariff plans.
Airtel provides the tariff plans which consist a lot of talk time and data rolled in it.
Since customer is the king of the market so he should be satisfied with the services at
affordable prices.
Airtel provides better network coverage than any other operator in the market; this service
continuously boosts up the sale of Airtel and contributes in the brand recognition.
One of the milestones in success of Airtel is that; they set up a 24x7 Customer oriented
call centers and innovative/competitive service offers for enhancing the service quality.


Airtel campaign Har ek friend jaroori hota hai is one of the finest advertisements that is
liked by the youngsters especially by the college teens. It connects human needs with the
mobile phone. It consist informative appeal to the mobile users.
Airtel facilitates up-to-the-minute technology to satisfy the needs of young generation in
fast and under developing cities.
A promotional offer with affordable tariff plans enhances the customer satisfaction.
Peoples are indifferent about setting up a grievance redressal cell for the complaint
resolution of customers by Airtel.
For enjoying the interactive session with customers, Airtel establishes customer
relationship management (CRM) cell.
Up to some extent, most of the customers are satisfied with Airtel services and their
experience at Airtel stores.

10. Conclusion:
This research study aims to figure out the Impact of Service Quality on customer satisfaction
of mobile users in telecom sector and for the authentic research work we have picked up a
case study of Airtel. In which we pull the attention on service quality with the special
consideration given on attractive/aggressive tariff plans, innovative services, quality of
service, Voice quality, low call drops and state-of-the-art customer service setup, customer
relationship management cell, brand strength, network quality and better customer care
services, grievance redressal cell And value added services etc.
Service quality will facilitate the satisfaction of unsatisfied users. This also means operators
will have to put more effort on to provide better services to retain the customers, better
services mean the companies will have to set up more mobile phone towers, upgrade their
equipment and provide instant rectification of problems so that the subscribers are always
able to get connected, surf the internet and make full use of their mobile telephones. Since
with the broad network coverage, heavy expenditure on advertisement, disturbance free
network backed by state-of-the-art customer service setup, voice quality, low call drops and
many more, Airtel became the utmost priority of customers. These services win the faith and
sense of belongingness of the prospective customers.
There are some additional factors which affect quality of services. These are customer
awareness, launch of services by new operators, attractive/aggressive tariff plans, innovative


services, VAS offerings, time to resolve disputes etc., In India, several new operators are
entering the market and the monthly addition of new subscriber is still very high. Also
Customers play a very vital role in successful delivery of service as customers are often
present at the place where service is produced (Delivered). Customers alone can influence
whether the delivered service is as per customer defined specifications. Other customers who
are present at the time of Service can also influence the Service positively or negatively.
Hence eventually to conclude our study we can say that marketing triangle service marketing
should be considered on utmost priority. We should make realistic accurate promises that
reflect the service actually delivered rather than idealized version of service and Use market
research to determine sources of derived customer expectation and their requirement. Apart
from that hospital administration tries to educate customers to understand their role and
perform better.
And also the GAP model clearly determines the two different types of gaps in service
marketing, namely the customer gap and the provider gaps. This model really views the
services as a structured, integrated model which connects external customers to internal
services between the different functions in a service organization. Operators must think on
reducing the gap between the customer expectation and customer perception. Because gap
deduction will help to serve better to the customers and contributes in brand image, profit
maximization and footfall of customers toward them.

11. Suggestions:
In this competitive scenario, Operators should conduct systematic marketing research to
know the customer satisfaction for the service quality that will include customer
perception and expectations both.
Make senior managers interact with customers and occasionally perform customer-
contact roles for service quality.
Encourage upward communication from customer-contact employees.
Make a blueprint of the service and standardize as many components of it as possible and
institute a formal, ongoing process for setting service specifications.
Eliminate perception of infeasibility on the part of senior managers and make a true
commitment to improve service quality.


Invest in ongoing employee training and support employees with appropriate technology
and information systems.
Reduce role conflict and role ambiguity among customer-contact employees.
Recognize and reward employees who deliver superior service.
Facilitate effective horizontal communication across functional areas (e.g., marketing and
operations)
Have consistent customer-related policies and procedures across branches or departments
and resist the temptation to promise more than the organization can deliver.
Work systematically to remove organizational barriers that lead to poor customer service
-- offline and online.
Recognize that e-service quality as perceived by customers involves much more than
having a state-of-the-art website and Put in place a solid behind-the-scenes infrastructure
-- information systems, logistics, and human resources -- to deliver what a websites front
promises.
Service provider must pay heed on service quality and its five key dimensions: reliability,
responsiveness, empathy, assurance, and tangibles.
Customer Care is an important area and produces direct impact on customer satisfaction.
Service provider should take efforts for better customer care.
By improving the number of base stations, the network coverage & connectivity can be
improved which may lead to lower rate of call drops.
Customer stays happy with the availability of Value Added Services along with good
network coverage.
Airtel should also ensure that staffs are knowledgeable of customers requests and
problems.
Airtel staff should always listen to what your customer wants because customers don't
buy products or services, they sometimes buy solutions to problems.
Airtel staff should encourage and welcome suggestions on improving customer
satisfaction.
Airtel should offer long term loyalty benefits staggered over a period of time.
In this highly competitive set-up, progressing out a special discount offer or a value added
pack could help win back the subscriber.
Company should try to attract customers with a service guarantee that means they should
compensate their subscribers for every call drop.


They should think on offering special tariffs, free SMS, Free data pack for a period of
time and other incentives to attract customers from other networks.



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Mobile Users A Case Study of Airtel

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