Customer Satisfaction On Idea

IDEA CELLULAR LIMITED
A RESEARCH REPORT
ON
A STUDY OF CUSTOMER SATISFACTION WITH
REFRENCE TO IDEA CELLUR SERVICES IN,
LUCKNOW
For the fulfillment of the requirement of MASTER OF BUSINESS

ADMINISTRATION
Greater Noida Institute of Engineering & Technology
Submitted to:
Submitted By:
MD.Murtuza
IIMT COLLEGE
MBA (4th SEM)
GR.NOIDA
Roll No: 1313270026
RESEARCH PROJECT REPORT

ON
A STUDY OF CUSTOMER SATISFACTION
WITH REFRENCE TO IDEA CELLUR
SERVICES IN, LUCKNOW
For the fulfillment

of MASTER OF
of the requirement
BUSINESS
ADMINISTRATION
Greater Noida Institute of Engineering & Technology
Under the Guidance of:
Submitted by:
Dr.Sangita Rani
(ASST.PROF.)
MD.Murtuza
MBA 4TH SEM
Roll No: 1313270047
Greater Noida Institute of Engineering & Technology,

Greater Noida
(2013-2015)
2
TABLE OF CONTENT
INTRODUCTION
CUSTOMER SATISFACTION
REVIEW OF LITERATURE
NEED FOR THE STUDY
OBJECTIVES OF THE STUDY
SCOPE OF THE STUDY
RESEARCH METHODOLOGY
DATA ANALYSIS
FINDINGS
SUGGESTIONS AND RECOMMENDATIONS
CONCLUSION
QUESTIONNAIRE
BIBLIOGRAPHY
INTRODUCTION
Customer satisfaction, a business term, is a measure of how products and
services supplied by a company meet or surpass customer expectation. It is seen as a key
performance indicator within business and is part of the four perspectives of a Balanced
Scorecard. In a competitive marketplace where businesses compete for customers,
customer satisfaction is seen as a key differentiator and increasingly has become a key
element of business strategy
Measuring customer satisfaction

Organizations are increasingly interested in retaining existing customers while targeting
non-customers, measuring customer satisfaction provides an indication of how successful
the organization is at providing products and/or services to the marketplace.
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
4

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 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 the performance of the
organization being measured.
Definition:
Customer satisfaction
The degree to which there is match between the customer's expectations of
the product and the actual performance of the product.
The broad definition of services implies that intangibility is a key determinant of
whether an offering is a service. While this is true, it is also true that very few products
are purely intangible or totally tangible. Instead, services tend to be more intangible than
manufactured products, and manufactured products tend to be more tangible than
services. For example, the fast-food industry while classified as a service, also has many
tangible components such as the food" the packaging, and so on. Automobiles, while
classified within the manufacturing sector, also supply many intangibles, such as
transportation. Throughout this text, when we refer to services we will be assuming the
broad definition of services and acknowledging that there are very few "pure services,, or
"pure goods." The issues and approaches we discuss are directed toward those offerings
that lie on the right side, the intangible side, of the spectrum. As suggested earlier,
intangibles arc not produced only in the service sector of the economy. Manufacturers
such as Boeing Airplane Company and Ford Motor Company also produce products on
the right end of the spectrum, both for sale to external consumers and to support internal
production processes. For example, Boeing has provided consulting services and demand
forecasting services for its airline customers. And within Boeing large departments (such
as data processing and legal services) provide
6

Internal services to the organization.
Trends in the Service Sector

Although we often hear and read that many modern economies are dominated by services,
the United States and other countries did not become service economies overnight. As
early as 1929,55 percent of the working population was employed in the service sector in
the united States, and approximxely 54 percent of the gross national product was
generated by services in 1948. That the trend toward services has continued, until in 1999
services represented 78 percent of the gross domestic product (GDP) and 80 percent of
employment. Note also that these data do not include internal services provided within a
manufacturing company (such as IBM or Boeing) or services that these manufacturers
sell externally.
CUSTOMER EXPECTATIONS OF SERVICE

Customer expectations are beliefs about service delivery that function as standards of
reference points against which performance is judged. Because customers compare their
perceptions of performance with these reference points when evaluating service quality,
thorough knowledge about customer expectations is critical to services marketers.
Knowing what the customer expects is the first and possibly most critical step in
delivering quality service. Being wrong about what customers want can mean losing a
customer's business when another company hits the target exactly. Being wrong can also
mean expending money, time, and other resources on things that don't count to the
customer. Being wrong can even mean not surviving in a fiercely competitive market.
Among the aspects of expectations that need to be explored and understood for successful
7

services marketing are the following: What types of expectation standards do customers
hold about services? What factors most influence the formation of these expectations?
what role do these factors play in changing expectations? How can a service company
meet or exceed customer expectations.
FACTORS THAT INFLUENCE CUSTOMER EXPECTATIONS OF

SERVICE
Because expectations play such a critical role in customer evaluation of services,
marketers need and want to understand the factors that shape them. Marketers would also
like to have control over these factors as well. But many of the forces that influence
customer expectations are uncontrollable. In this section of the chapter we try to separate
the many influences on customer expectations.
Sources of Desired Service Expectations

The two largest influences on desired service level are personal needs and philosophies about
service. Personal needs those states or conditions essential to the physical or psychological
well-being of the customer, are pivotal factors that shape what we desire in service. Personal
needs can fall into many categories, including physical, social, psychological, and functional.
A fan who regularly goes to baseball games right from work, and is therefore thirsty and
hungry hopes and desires that the food and drink vendors will pass by his section frequently,
where as a fan who regularly has dinner elsewhere has a low or zero level of desired service
from the vendors. A customer with high social and dependency needs may have relatively
high expectations for a hotel's ancillary services, hoping, for example, that the hotel has a bar
with live music and dancing. The effect of personal needs on desired service is illustrated by
the different expectations held by two business insurance customers:
Some customers are more demanding than others, having greater sensitivity to, and higher
expectations of, service. Enduring service intensifiers are individual, stable factors that
lead the customer to a heightened sensitivity to service. One of the most important of
9

these factors can be called derived service expectations, which occur when customer
expectations are driven by another person or group of people. A niece from a big family
who is planning a 90th birthday party for a favorite aunt is representing the entire family
in selecting a restaurant for a successful celebration. Her needs are driven in part by the
derived expectations from the other family members. A parent choosing a vacation for the
family, a spouse selecting a home-cleaning service.
10
CUSTOMER SATISFACTION
What is Customer Satisfaction?
Everyone knows what satisfaction is, until asked to give a definition' Then, it seems
nobody knows. This quote from Richard L. Oliver, respected expert and longtime writer
and researcher on the topic of customer satisfaction, expresses the challenge of defining
this most basic of customer concepts. Building from previous definitions' Oliver offers his
own formal definition:
Satisfaction is the consumer's fulfillment response. It is a judgment that a product or
service feature, or the product or service itself, provides a pleasurable level of
consumption-related fulfillment.
In less technical terms, we translate this definition to mean that satisfactorily is the
customers' evaluation of a product or service in terms of whether that product or service
has met their needs and expectations. Failure to meet needs and expectations is assumed
to result in dissatisfaction with the product or service In addition to a sense of
fulfillment in the knowledge that one's needs have been met, satisfaction can also be
related to other types of feelings, depending on the particular context or type of service.
For example, satisfaction can be viewed as contentment-more. of a passive response that
consumers may associate with services they don't think a lot about or services that they
receive routinely over time' Satisfaction may also be associated with feelings of pleasure
for services that make the consumer feel good or are associated with a sense of happiness.
For those services that really surprise the consumer in a positive way, satisfaction may
mean delight. And in some situations, where the removal of a negative leads to
satisfaction, the consumer may associate a sense of relief with satisfaction.
11

It is also important to recognize that although we tend to measure consumer satisfaction at
a particular point in time as if it were static, satisfaction is a dynamic, moving target that
may evolve over time, influenced by a variety of factors. Particularly when product
usage or the service experience takes place over time, satisfaction maybe rightly variable
depending on which point in the usage or experience cycle one is focusing on. Similarly,
in the case of very new services or a service not previously experienced, customer
expectations may be barely forming at the point of initial purchase, these expectations
will solidify as the process unfolds and the consumer begins to form his or her
perceptions. Through the service cycle the consumer may have a variety of different
experiences, some good, some not good-and each will ultimately impact satisfaction.
What Determines Customer Satisfaction?

Customer satisfaction is influenced by specific product or service features and by
perceptions Of quality as suggested by Figure 4.1. Satisfaction is also influenced by
customers' emotional responses, their attributions, and their perceptions of equity.
12
Product and Service Features

Customer satisfaction with a product or service is influenced significantly by the
customer's evaluation of product and services features. For a service such as a resort
hotel, important features might include the pool area, access to golf facilities, restaurants,
room comfort and privacy, helpfulness, and courtesy of staff, room price, and so forth. In
conducting satisfaction, studies, most firms will determine through some means (often
focus groups) what the important features and attributes are for their service and then
measure perceptions of those features as well as overall service satisfaction. Research has
shown that customers of services will make trade-offs among different service features
(for example, price level versus quality, versus friendliness of personnel versus level of
customization), depending on the type of service being evaluated and the criticality of the
service.
Consumer Emotions
Customers' emotions can also affect their perceptions of satisfaction -with products and
services. These emotions can be stable, preexisting emotions-for example, mood state or
life satisfaction. Think of times when you are a very happy stage in your life (such as
when you are on vacation), and your good, happy mood and positive frame of mind have
influenced how you feel about the services you experience. Alternatively, when you are in
a bad mood your negative feelings may carry over into how you respond to services,
causing you to overreact or respond negatively to any little problem.
Specific emotions may also be induced by the consumption experience itself, influencing
a consumer's satisfaction with the service. Research done in a river-rafting context
showed that the river guides had a strong effect on their customers' emotional responses
13

to the trip and that those feelings (both positive and negative) were linked to overall trip
satisfaction. positive emotions such has, happiness pleasure, elation, and a sense of warmheartedness enhanced customers' satisfaction with the rafting trip. In turn, negative
emotions such as sadness, sorrow, regret, and anger led to diminished customer
satisfaction. Overall, in the rafting context, positive emotions had a stronger effect than
negative ones. Similar effects of emotions on satisfaction were found in a Finnish study
that looked at consumers' satisfaction with a government labor bureau, service.l6 In that
study, negative emotions including anger, depression, guilt, and humiliation had astrong
effect on customers, dissatisfaction ratings.
Attributions for Service Success or Failure

Attributions-the perceived causes of events-influence perceptions of satisfaction as well.
When they have been surprised by an outcome (the service is either much better or much
worse-than expected), consumers tend to look for the reasons, and their assessments of
the reasons can influence their satisfaction' For example, if a customer of a weight-loss
organization fails to lose weight as hoped for, she will likely search for the for the causes
was it something she did, was the diet plan ineffective, or did circumstances simply not
allow her to follow the diet regimen-before determining her level of satisfaction or
dissatisfaction with the weight-loss company. For many services customers take at least
partial responsibility for how things turn out.
Even when they don't take responsibility for the outcome, customer satisfaction may be
influenced by other kinds of attributions. For example, in research done in a travel agency
context it was found that customers were less dissatisfied with a pricing error made by the
agent if they felt the reason was outside the agent's control or if they felt it was a rare
mistake, unlikely to occur again.
14
Perceptions of Equity or Fairness

Customer satisfaction is also influenced by perceptions of equity and fairness.2o
Customers ask them selves: Have I been treated fairly compared with other customers'?
Did other customers get better treatment, better prices, or better quality service? Did I pay
a fair price for the service? Was I treated well in exchange for what I paid and the effort I
expended? Notions of fairness are central to customers' perceptions of satisfaction with
products and services. The example of Sears Auto Centers division illustrates consumers'
strong reactions to unfair treatment. Over a decade ago the division was charged with
defrauding customers in 44 states by performing unnecessary repairs. Sears employees
had been rewarded based on the quantity of repairs sold resulting in substantial
unnecessary charges to customers. The $27-million Sears paid settling complaints and the
additional loss of business all resulted from extreme dissatisfaction of its customers over
the unfair treatment.
Other Consumers, Family Members, and Coworkers

In addition to product and service features and one's own individual feelings and beliefs,
consumer satisfaction is often influenced by other people.22 For example, satisfaction
with a family vacation trip is a dynamic phenomenon, influenced by the reactions and
expressions of individual family members over the duration of the vacation. Later, what
family members express in terms of satisfaction or dissatisfaction with the trip will be
influenced by stories that are retold among the family and selective memories of the
events. Similarly, the satisfaction of the rafters in Figure 4.2 is certainly influenced by
individual perceptions, but it is also influenced greatly by the experiences, behavior, and
15

view's of the other rafters. In a business setting, satisfaction with a new service or
technology-for example, a new customer relationship management software service-will
be influenced by individuals' personal experiences with the software itself, but also by
what others say about it in the company, how others use it and feel about it, and how
widely it is adopted in the organization. In Chapter 12 we will come back to this topic as
we look at strategies for involving and managing other consumers to maximize
satisfaction in the service experience.
National Customer Satisfaction Indexes

Because of the importance of customer satisfaction to firms and overall quality of life,
many countries how have a national index that measures and tracks customer satisfaction
at a macro level.23 Many public policymakers believe that these measures could and
should be used as tools for evaluating the health of the nation's economy, along with
traditional measures of productivity and price. Customer satisfaction indexes begin to get
at the quality of economic output, whereas more traditional economic indicators tend to
focus only on quantity. The first such measure was the Swedish Customer Satisfaction
Barometer introduced in 1989. Through out the 1990s similar indexes were introduced in
Germany (Deutsche Kundenbarometer, or DK, in 1992), the United States (American
Customer Satisfaction Index, ACSI, in 1994), and Switzerland (Swiss Index of Customer
Satisfaction, SWICS, in 1998).
16
The American Customer Satisfaction index (ACS...)

The ACSI, developed by researchers at the National Quality Research Center at the
University of Michigan, is a measure of quality of goods and services as experienced by
consumers. The measure tracks customer perceptions across 200 firms representing all
major economic sectors, including government agencies. Within each industry group,
major industry segments are included" and within each industry the largest companies in
that industry are selected to participate. For each company approximately 250 interviews
are conducted with current customers. Each company receives an ACSI score computed
from its customers' perceptions of quality, value, satisfaction, expectations, complaints,
and future loyalty.
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REVIEW OF LITERATURE
MARKETING:
Marketing is a social process by which individuals and groups obtain what they need and
want through creating, offering and freely exchanging product and services of value with
others.
MARKETING MANAGEMENT:
Marketing m management is the process of planning and executing the conception,
pricing, promotion of ideas, goods and services to create exchanges that satisfy
individuals and organization goals.
MARKETING MIX:
Marketing mix is the set of controllable tactical marketing tools that the firm blends to
produce the response it wants in the target market. Four factor classifications of these
tools are called the four Ps: product, price, place and promotion.
18
PRODUCT:
Product is the firms tangible offer to the market, which includes the product quality,
design, branding and packaging.
PRICE:
Price is the amount of money the customers have to pay to obtain the product
PLACE:
Place makes the product of the company available to target customers.
PROMOTION:
Promotion includes all the activities of the company undertake to communicate and
promote its product to the target market. It consists of advertising, sales promotion, public
relation etc.
BRAND:
Brand is the name, term, sign, symbol of design or a communication of there intended to
identify the goods and services of one seller or group of seller and to differentiate them
from those of competitors.
BRAND IMAGE:
It is nothing but the set of benefits to` consumers hold about a particular brand.
19
ADVERTISING:
Any paid from of non-personal presentation and promotion of ideas, goods or services by
an identified sponsor.
MARKET DEMAND:
Market demand for a product is the total volume that would be bought by a defined
customer group in a defined geographical area in a defined time period marketing
environment under a defined marketing program.
MARKET POTENTIAL:
The market forecast shows expected demand, not maximum market demand. For the
latter, we have to visualize the level of market demand resulting from a very high level of
industry marketing expenditure, where further increases in marketing effort would be
little effect in stimulating further demand. Market potential is the limit approached by
market demand as industry marketing expenditures approach infinity for a given
marketing environment.
COMPANY DEMAND:
It is the companys estimated share of market demand at alternative levels of company
marketing effort in a time period. The companys share of market demand depends on
how its products, services, prices, communications, and so on are perceived relative to the
competitor
20
COMPANY SALES FORECAST:

It is the expected level of company sales based on a chosen marketing plan and an
assumed marketing environment.
COMPANY SALES POTENTIAL:

Company sales potential is the sales limit approached by company demand as companymarketing effort increases relative to that of competitors. Marketing executives want to
estimate total market potential, area market potential, and total industry sales and market
shares.
TOTAL MARKET POTENTIAL

It is the maximum amount of sales that might be available to all the forms in an industry
during a given period under a given level of industry marketing effort and environmental
conditions.
AREA MARKET POTENTIAL

Companies face the problem of selecting the best territories and allocating their marketing
budget optimally among the best territories. Therefore, they need to estimate the market
potential of different cities, states and nations.
21
INDUSTRY SALES AND MARKET SHARES

Besides estimating total potential and area potential, a company needs to know the actual
industry sales taking place in its market. This means identifying its competitors and
estimating their sales.
22
NEED FOR THE STUDY

IDEA has good market standing and companys tariff plans and services level are good,
which are largely responsible for its position. IDEA has to sustain its position against the
expected stiff competition. The company has to know its customer perception, the
satisfaction level and also its competitors customer satisfaction level and problems,
which are facing their customers in order to take appropriate action. Hence, the study
titled
STUDY
ON
CUSTOMER
SATISFACTION
TOWARDS
IDEA
CELLULAR SERVICES IN SRI KALAHASTHI has been undertaken.
23
OBJECTIVES OF THE STUDY

To know the satisfactory level of the customers about IDEA Cell Phone
services.
To find out the percentage of respondents connected to IDEA and usage of
schemes.
To know the easy availability of recharge coupons.
To find out the priority the reason for using IDEA Cell Service.
To find out that how staff behavior is?
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SCOPE OF THE STUDY

In todays context both markets and marketing is complex. Cellular Phones and mobiles
have stormed the market in its fast growing world of technology. This survey under taken
for Cell Phone services will enable it to Phone. The users awareness and satisfaction
level towards IDEA Cell Phone services.
This survey gathers information from Cell Phone users. It brings out the customer
feedback on the product. Mainly this survey looks into the users profile and check for any
relevant relation of dependence with the variable like occupation age group of
respondents.
This study restricts itself to SRI KALAHASTHI Division. It helps to understand users
preference for the main competing brands of Cell Phone services like IDEA CELLULAR
SERVICES,TATA DOCOMO,UNINOR, VODAFONE, MTS and RELIANCE in. Sri
Kalahasti. This will benefit company in making their future marketing decisions.
25
RESEARCH METHODOLOGY
MEANING OF RESEARCH:
According to D. Stephenson in the Encyclopedia of social sciences defines research as
the manipulation of thing, concepts are symbols for the purpose of generalizing to extend,
correct or verify knowledge, whether that knowledge aids in construction of theory or in
practice of an art.
RESEARCH DESIGN:
Research Methodology include seven stages that to be followed sequentially. Those are
listed below.
1. First the problem has to be defined and determined. Knowing the need of
the study can do this.
2. The information that is required for solving the problem has to be
specifically defined.
3. In this stage source from which the information can be obtained is
identified
4. The next step is to obtain information through data collection techniques.
5. The obtained information is processed to get the required output
6. The findings from the processed information are then interpreted.
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7. Lastly the findings are presented.
This can be symbolically represented as shown below
DETERMINE THE PROBLEM
SPECIFY THE INFORMATION NEEDED
IDENTIFY THE SOURCE OF INFORMATION
OBTAIN THE INFORMATION
PROCESS THE INFORMATION
INTERPRET THE INFORMATION
PRESENT THE FINDINGS
The research design is the basic framework that provides guidelines for the rest of the
research process. The research design specifies the method of data collection and
analysis.
Research was undertaken in SRI KALAHASTHI during JUNE 2010 to AUGUST 2010.
27
2) DATA SOURCES:
Data sources are the sources from which we get the information.
Data collected through company approved questionnaires have been used as the primary
source of data and also usage of secondary data wherever applicable.
PRIMARY DATA
To understand the customer of newspaper in terms of brand choice and brand perceptions,
primary data is necessary. By using primary data, collection method, consumers were
collected. (COLLECT or Gather consumer responses).
This was done with the help of fully prepared structured questionnaires with a prescribed
sequence of open ended, and closed ended questions, multiple choices, discriminate,
rating and ranking to capture the appropriate responses from the respondents.
SECONDARY DATA
This was collected through oral communication. Secondary data about the company
profile and other details were collected from the company brochures through personal
discussions with the company managers .Data pertaining to newspaper industry has been
obtained through the book The Mass Media and You by Desmond A.D. Abcro.
28
SAMPLING PROCEDURE
A sample of 120 respondents belonging to different areas in SRI KALAHASTHI was
drawn. The sample was divided into different groups in such a way that it will represent
different categories of the people.
SAMPLING TECHNIQUE
The location was chosen on a random basis. Even this sample was chosen by simple
random sampling. A sampling technique in which every element of the population of
interest has an equal probability of being included in this sample.
POPULATION:
All the Customers of IDEA have been deemed as the population of the study.
SAMPLE SIZE
The sample size is 120, and the respondents.
PERIOD OF STUDY
The period of study is 2 months duration.
29
QUESTIONNAIRE DESIGN
The questionnaire is of structured type, which consists of closed ended, open ended,
Multiple Choice, and grade type of questions to suit the study.
30
LIMITATIONS OF THE STUDY

Time duration for the study was limited to 2 months.
The study was restricted to SRI KALAHASTHI.
A convenience sample was taken from SRI KALAHASTHI and the sample
was
restricted to 120 customers.
31
OVERVIEW OF THE CHAPTER SCHEME

CHAPTER 1: Deals to the study of introduction
CHAPTER 2: Deals with Design of the study.
CHAPTER 3:Consist of Industry profile,
Company profile,
Product profile.
CHAPTER 4: Deals with Data analysis & Interpretations.
CHAPTER 5: Consist of Findings & Suggestions.
CHAPTER 6: Deals with Conclusion.
Consist of Annexure.
Consist of Bibliography.
32
INDUSTRY PROFILE
India is the fourth largest telecom market in Asia after China, Japan and South Korea. The
Indian telecom network is the eighth largest in the world and the second largest among
emerging economies. At current levels, telecom intensiveness of Indian economy
measured as the ratio of telecom revenues to GDP is 2.1 percent as compared with over
2.8 percent in developed economies. Indian telecom sector has undergone a major process
of transformation through significant policy reforms. The reforms began in 1980s with
telecom equipment manufacturing being opened for private sector and were later
followed by National Telecom Policy (NTP) in 1994 and NTP'1999.
Historically, the telecom network in India was owned and managed by the Government
considering it to be a natural monopoly and strategic service, best under state's control.
However, in 1990's, examples of telecom revolution in many other countries, which
resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a
change process finally resulting in opening up of telecom services sector for the private
sector.
India's telecom sector has shown massive upsurge in the recent years in all respects of
industrial growth. From the status of state monopoly with very limited growth, it has
grown in to the level of an industry. Telephone, whether fixed landline or mobile, is an
essential necessity for the people of India. This changing phase was possible with the
economic development that followed the process of structuring the economy in the
capitalistic pattern. Removal of restrictions on foreign capital investment and industrial
de-licensing resulted in fast growth of this sector. At present the country's telecom
33

industry has achieved a growth rate of 14 per cent. Till 2000, though cellular phone
companies were present, fixed landlines were popular in most parts of the country.
With government of India setting up the Telecom Regulatory Authority of India, and
measures to allow new players country, the featured products in the segment came in to
prominence. Today the industry offers services such as fixed landlines, WLL, GSM
mobiles, CDMA and IP services to customers. Increasing competition among players
allowed the prices drastically down by making the mobile facility accessible to the urban
middle class population, and to a great extends in the rural areas. Even for small
shopkeepers and factory workers a phone connection is not an unreachable luxury.
Major players in the sector are BSNL, MTNL, Bharti Teleservices, Hutchison Essar, BPL,
Tata, Idea, etc. With the growth of telecom services, telecom equipment and accessories
manufacturing has also grown in a big way.
Fixed-line Telephony
Public Players Subscribers

Private Players Subscribers
Mobile Telephony
Public Players Subscribers

Private Players subscribes
34
Internet:
Investment
The Indian telecom sector can be broadly classified into Fixed Line Telephony and
mobile telephony. The major players of the telecom sector are experiencing a fierce
competition in both the segments. The major players like BSNL, MTNL, VSNL in the
fixed line and IDEA CELLULAR SERVICES, Hutch, Idea, Tata, Reliance in the mobile
segment are coming up with new tariffs and discount schemes to gain the competitive
advantage. The Public Players and the Private Players share the fixed line and the mobile
segments. Currently the Public Players have more than 60% of the market share.
Market shares of public and Private Players

Both fixed line and mobile segments serve the basic needs of local calls, long distance
calls and the international calls, with the provision of broadband services in the fixed line
segment and GPRS in the mobile arena. Traditional telephones have been replaced by the
codeless and the wireless instruments. Mobile phone providers have also come up with
35

GPRS-enabled multimedia messaging, Internet surfing, and mobile-commerce. The
much-awaited 3G mobile technology is soon going to enter the Indian telecom market.
The GSM, CDMA, WLL service providers are all upgrading themselves to provide 3G
mobile services.
Along with improvement in telecom services, there is also an improvement in
manufacturing. In the beginning, there were only the Siemens handsets in India but now a
whole series of new handsets, such as Nokia's latest N-series, Sony Ericsson's W-series,
Motorola's PDA phones, etc. have come up. Touch screen and advanced technological
handsets are gaining popularity. Radio services have also been incorporated in the mobile
handsets, along with other applications like high storage memory, multimedia
applications, multimedia games, MP3 Players, video generators, Camera's, etc. The value
added services provided by the mobile service operators contribute more than 10% of the
total revenue.
36

The leading cellular service providers have the following number of subscribers
Service Provider
No of CDMA Subscribers
No. of GSM Subscribers
Reliance
2.75 crores
1.03 crores
Tata
1.07 crores
IDEA CELLULAR
8.88 crores
SERVICES
MTNL
40.03 lakhs
BSNL
4.27 crores
Vodafone
6.33 crores
Idea
4 crores
Spice
25.56 lakhs
BPL
20.07 lakhs
Aircel
1.03 crore
IDEA CELLULAR SERVICES has the largest customer base with 31% market share,
followed by Hutch and BSNL with each holding 22% market share.
The 2009 budget has brought further relief to the customers with the reduction in the
tariffs, both local and long distance, and with slashing down the roaming rentals. This
is likely to lead to even more people going for cellular services and more and more use of
the value added services. However, landline telephony is likely to remain popular, too, in
the foreseeable future. MTNL, the largest landline service provider, has recently taken
some bold initiatives to retain its market share and, if possible, expand it.
Policy reforms can be broadly classified in three distinct phases

37

"The Decade of 1980's saw private sector being allowed in telecommunications
equipment manufacturing. Mahanagar Telephone Nigam Limited (MTNL) and Videsh
Sanchar Nigam Limited (VSNL) were formed and a Telecom Commission was set up to
give focus to telecommunications policy formation.
In 1990s, telecommunications sector also benefited from the general opening up of the
economy. NTP 1994 was the first attempt to give a comprehensive roadmap for the Indian
telecommunications sector.
Availability of telephones on demand (targeted by 1997)
Universal service covering all villages and one PCO per 500 persons in
urban areas at the earliest (targeted to be achieved by 1997)
Telecom services at affordable and reasonable prices
World standard quality of services
The Indian Telecom Sector:

Telecommunication Services
Telecommunication Equipment
Telecommunication Services
Telecommunication services include Basic service, Cellular service, and Internet Service
Provider (ISP) and Very Small Aperture Terminal (VSAT) services. Government of India
(GOI) plans to introduce a unified license for all telecommunication services in India, and
has already allowed full mobility to wireless in local loop (WLL) operators as a first step.
38

Telecom services are growing at an approximate rate of around 5 percent per year in
terms of revenue and mere 10 % in terms of subscriber base in last five years. Partly the
result is due to negative growth in NLD market (-14% Rs 51,410 million from Rs 59,880
million) and ILD market (-13% Rs 43,460 million from Rs 50,010 million) in 2003-04.
Amongst telecom services, cellular services are the fastest growing, with CAGR of 40
percent over the past four years. Telecommunications Regulatory Authority of India
(TRAI) expects that the total number of cellular connections would bypass the total
number of fixed line connections by late 2004 and early 2005. (As on March 2004
subscriber base of cellular operators is 33 million and basic operator is 42.84 million)
During the past three years, in terms of subscriber base telecommunications services have
been growing at a CAGR of nearly 22%, owing largely to the rapid increase in
cellular service subscribers.
Fixed Service Provider (FSPs)
Cellular Services
Internet Service Provider
39
Fixed Service Provider (FSPs)

Fixed line services consist of basic services, national or domestic long distance and
international long distance services. The domestic market (i.e. excluding international
revenues), has been growing more than 5 per cent annually during the past three years,
and has a current market size of Rs 30,164 crores, with a base of 43 million lines.
The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from
basic services. Private sector services are presently available in 18 circles, and
collectively account for less than 5 per cent of subscriptions. However, private services
focus on the business/corporate sector, and offer reliable, high- end services, such as
leased lines, ISDN, closed user group and videoconferencing. As a result, averagerevenues-per-user (ARPU) of private operators are more than twice those of the stateowned service providers.
The main revenue contributing value added services were NLD and ILD. The reduction in
NLD and ISD tariffs punctured the potential of the key revenue streams. Internet
telephony for ISD worsened the potential. Added to it was the phenomenal growth rate in
cellular services.
Growth Drivers
The Government has allowed unlimited competition in the basic sector. Considering the
inherent advantage of scale that the incumbent state operators have, the private companies
are setting their networks very selectively and targeting corporate clients with value
added services. The government has introduced unified license for fixed and mobile
40

service providers. This allows all phone companies to become mobile operators by
offering cellular and landline/WLL-M services under a single authorization, ending
service-specific licensing.
Indian fixed line network is likely to expand as the current low level of telephone
penetration is very low coupled with the unmet demand for connections. India's fixed line
telecom network is estimated to expand to about 47 million by March 2005 from 43
million in March 2004. The rate of growth in services revenues is however, likely to be
lower in comparison with the pace of increase in the number of fixed lines.
Cellular Services Overview

There are 25 private companies providing Cellular Services in 19 Telecom Circles and 4
Metro cities, covering 1500 towns across the country. Presently, there are five private
service operators in each area, and an incumbent state operator. Almost 80% of the
cellular subscriber base belongs to the pre-paid segment.
Several GSM cellular service companies are climbing the EDGE bandwagon. Hutch has
already started and Bharti has made test calls on the EDGE platform and the company is
in talks with Siemens for EDGE-enabling some of its circles.
The DoT has allowed cellular companies to buy rivals within the same operating circle
provided their combined market share did not exceed 67 per cent. Previously, they were
only allowed to buy companies outside their circle.
41

Regulatory Structure
The lack of clarity in the regulatory structure has made it difficult to predict the prospects
for this industry. This uncertainty has best been typified by the issuance of a fourth
license and the controversies with reference to limited mobility players. The Cellular
Services was thrown open for third & fourth Service providers in 2002. The number of
service providers increased to 68 in the year 2002-03 from 42.
Growth Drivers
Opening up of international and domestic long distance telephony services are growth
drivers in the industry. Cellular operators now get substantial revenue from these services,
and compensate them for reduction in tariffs on airtime, which along with rental was the
main source of revenue. The reduction in tariffs for airtime, national long distance,
international long distance, and handset prices has driven demand.
Internet Service Provider

Internet has become very easily accessible with cyber cafes /kiosks increasing their
density, not only in the metro towns but also in semi-urban towns. There is no restriction
on the number of internet companies and more than 185 companies are operational.
Internet telephony has been allowed officially from 1 April 2002. The growing demand of
corporates for applications such as Electronic Commerce, internet leased lines, ISDN,
VPN etc is driving the growth of the internet services market. However, the industry
continues to face a number of bottlenecks in terms of regulatory treatment of ISPs, high
bandwidth prices, low PC penetration, high cost of telephone access etc.
42
Telecommunication Equipment
The domestic industry is worth Rs 303,000 million and has made little progress in
comparison to the development of Telecom services in the country. The industry
is faced with two major challenges: India is being steadily opened up to the
global market, as trade restrictions are done away with, resulting in crashing
ofimport duties across the board and easy movement of goods from overseas. It
is forecasted that by 2005, imported telecom equipment will account for 75% of
the Expenditure on telecom equipment in India. Secondly, to cut down on
operations costs, US, European and East Asian multinationals are outsourcing
manufacturing to cheaper destinations in Taiwan and China. (Refer to Appendix
5 for more details on this segment).
Growth Drivers
" Growth in the telecom equipment market is expected to be driven by an
increasing demand for telecom services.
" Key players like BSNL, Bharti, Reliance, BATATA, BPL and Hutchison will
drive equipment market growth. Transmission equipment, cable and terminal equipment
are expected to drive the market in the years to come. Also switching systems will remain
a big market, with a size of around Rs 50 billion (CERC).
43
CELLULAR TECHNOLOGY
In a cellular system the geographical area is dived into adjacent. Not overlapping,
hexagonal shaped cells. Each cell has its own transmitter and receiver (called base
stations) to communicate with the mobile units in that cell; a mobile switching station
coordinates the handoff of mobile units crossing cell boundaries. Cellular system are
based on the concept of frequency reuse: the same frequency is used by several sites
which are fare enough from one another, resulting in a tremendous gain in system
capacity. The counterpart is the increased complexity both for the network and the mobile
stations, which must be able to select a station among several possibilities and the
infrastructure cost because of the number of different sites. The system hands over calls
from transmitter to transmitter as customers move around in their vehicles. This new
techniques would allow more customers access to the system simultaneously and when
more capacity which is popularly known as CELL SPLITTING. One of the most
important concepts for any cellular telephone system is that of multiple accesses meaning
that multiple simultaneous users can be supported through frequency reuse. In other
words a large number of users share a common pool of radio channels and any user can
again access to any channel (each user is not always assigned to the same channel). A
channel can be thought as merely a portion of the limited radio spectrum which is
temporarily allocated for a specific purpose, such as someones phone cell.
44
Cellular Architecture:GSM System Components

A schematic overview of the GSM system is shown in the figure given below. The system
is composed of three main elements; the switching sub-system, the base station subsystem and the mobile. The switching part controls the communication across the radio
interface and the mobile acts as the transmitter receiver for the user.
STN
A schematic overview of the GSM System is shown in the figure given below. The
system is composed of three main elements; the switching sub-system, the base station
sub-system and the mobile. The switching part makes the connection between the two
users, the base station part controls the communication across the radio interface, and the
mobile acts as the transmitter
Mobile station
The best known part of the cellular network is certainly the mobile stations. Different
types of mobile stations are distinguished by power and application. A significant
architectural aspect of the MS relates to the concept of subscriber identity Module (SIM).
The SIM card contains a unique international Mobile subscriber identity (ISMI) used to
identify the subscriber to the system. The SIM is basically a smart card containing the
entire subscriber related information on the users side of the radio interface.
A potential user may off course buy mobile equipment. But he may also lease borrow the
equipment or purchase it through other channels fixed mobile stations are permanently
45

installed in a card and may have a maximum allowed RF output of up to 20W. Portable
(bag phones) can emit up to 8W and hand held portable units up to 20 with second
Generation mobile (on the market since 1993), the GSM system is becoming more and
more attractive. Hand portable units are becoming much smaller and are coming with
numerous features on it. This is giving the system boost popularity, especially in those
markets with a particular demand for small mobiles such as in Asian and Pacific areas.
Base station sub-system

Base station sub-system groups the infrastructure machines. Which are specific to the
radio cellular aspect of GSM. The BSS is in direct contact with the mobile station through
the radio interface. As such, it includes the machines in charge in transmission and
reception on the radio path, and the management thereof. On the other side, the BSS is in
contact with the switches of Network sub-system (NSS). The BSS includes two types of
machines.
46

BASE STATION OR BASE TRANSCEIVER STATION
The counterpart to a mobile station within a cellular network is the base transceiver
station (BTS). This is the mobiles interface to the network. Each cell site is equipped with
a BTS is usually located of radio equipment that provides coverage within a cell. The
transmitting power of the BTS is usually located in the center of a cell. A cell site is used
to refer to the physical location of radio equipment that provides coverage within a cell.
The transmitting power of the BTS determines the absolute cell size.
The BTS houses the radio transceivers that define a cell and handles the radio link
protocols with the mobile station. BTS are placed in the field to transfer a cell to
customers handsets and there are between one and sixteen transceiver each of which
represents a separate RF channel.
A BTS may cover an area of 30-40 sq Kms. However in a congested, urban location the
BTS coverage is much smaller. BTS can be considered as complex radio modems and
have littler other function. A list of hardware located at a cell site includes power sources,
interface equipment, radio frequency transmitters and receivers and antenna systems.
Base Station Controller BSC:
Base station controller is in contact with the switches of NSS. It monitors and controls
several base stations, the number of which depends of the manufacturer and can be
between several tens and several hundred of stations. A typical BSC can manage from one
BTS to the entire BTS in service area, depending on their traffic capacity. The chief tasks
of the BSC are frequency administration the control of a BTS and exchange functions. It
handles radio channels setup, frequency hopping and handovers. The BSC is the
connection between the mobile station and the mobile service switching center and is
47

charge of all radio interface management through the remote command of the BTS and
the mobile station, mainly the allocation and release of radio channels and the handover
management. The BSC is connected on one side, to several BTSs and on the other side, to
the network and switching sub system (more appropriately to a mobile switching centre).
A BSC is in fact a small switch with substantial computations capability. The hardware of
the BSC may be located at the same side as the BTS, s its own standalone site or the site
of the Mobile switching centre (MSC). BSC and BTS together form a functional entity
some times referred to as entity some time referred to as the
Base Station sub-system

Network and switching sub-system/switching sub-system
The NSS includes the main switching functions, as well as the data basis needed for
subscriber data and mobility management. The main role of NSS is to manage the
communications between the GSM users and the other tele-communications network
users. The NSS is responsible for performing call processing and subscriber related
functions.
Mobile service switching center

The MSC is the interface of the cellular network to the PSTN. MSC performs the
telephony switching functions of the system. It acts like a normal switching node of the
PSTN, and additionally provides all the functionality needed to handle and mobile
subscriber, such as registration authentication location updating handovers and call
routing to a roaming subscriber MSC is the primary switching interface between the
mobile telephone systems and the PSTN. It is capable of routing calls from the fixed
48

network-via the BSC and the BTS to an individual mobile station. The MSC interface
with BSS on one other side (through which it is contact with GSM users) and with the
external networks on the other. The NSSs also need to interface with the external
networks to make use of their capability to transport user data or signaling between GSM
entitles. In particular, the NSS make use of a signaling support network at least partly
external to GSM, usually referred to as the SS7 network.
Home Location Register (HLR)

The HLR is database about subscribers; it stores the identity and user data of all the
subscribers belonging to the area or related MSC. These are permanent data, such as the
international mobile subscriber number (IMSI) of an individual user, authentication key,
including a subscribers service profile location information activity status and some
temporary data. Temporary data on the SIM included such entries as (1) the address of the
current visitor location register (VLR). Which currently administers the mobile stations
(2) the number of which the calls must be forwarded (if the subscriber select call
forwarding), and (3) some transient parameters for authentication and ciphering. The
IMSI is permanently stored on the SIM card. The IMSI is one of the pieces of important
information used to identity a subscriber within GSM system. The first three digits of the
IMSI identify the Mobile country code (MNC). Up to ten additional digits of the mobile
subscriber identification number (MSIC) complete the IMSI.
49

Visitor Location Register
The VRL contains the relevant data of al mobiles currently located in a serving [g] MSC.
It is the database that contains temporary storing subscription data for those subscribers
currently situated in the service area of the corresponding MSC as well as holding data on
their location at a more precise level than the HLR. The VLR is always integrated with
MSC. The permanent data are the same as data found in the HLR; the temporary mobile
subscriber identity (TMSI), which is used for limited periods of time to prevent the
transmission of the IMSI serves to protect the subscriber from high technology of the
TMSI for the IMSI Service to protect the subscriber from high technology intruders and
helps point to the location of the mobile station through the cell identity.
The VLR has to support the [G] MSC during a call establishment and an authentication
procedure as it furnished data specific to the subscriber. Locating subscriber data in the
VLR as well as in the HLR, reduces the data traffic to the HLR because it is not necessary
to ask for these data every time they are needed. Another reason for strong the identical
data at low different locations (in the HLR & VLR ) is the each serves a different purpose.
The HLR has to prove the GMSC with the necessary subscriber data when a call is
coming from the public network. The VLR on the other hand serves the opposite
function. Providing the host (G) MSC with the necessary subscriber data when a call is
coming from mobile station.
50
Authentication center
The Authentication center (AC) is related to the HLR. It provides the HLR with different
set of parameters to complete the authentication of a mobile station. The AC knows
exactly which algorithms it has to use for a specific subscriber in order to calculate input
values and issues to required results. Since all the algorithms for the authentication
procedures are stored within AC, they are protected against abuse. The SIM card issued in
area assigned to AC contains the same algorithms for authentication as the AC does. If the
AC provides input and output parameters for these algorithms to either the HLR or the
VLR, either location Register can verify (authenticate) the mobile station.
Equipment identity Register

The equipment identity register (EIR) is a database that contains a list of all valid mobile
equipment on the network. Where each mobile station id identified by its international
Mobile equipment identity (IMEI). An IMEI is market a invalid if it has been reported
stolen or it not type approved. Within the EIR we find all the serial numbers of the mobile
equipment that is either stolen or due to some defect in their hardware, may not be used in
a network. The idea is to check the identity at each registration or call setup of any mobile
station and then depending on its IMEI admit or bar access of the mobile station to the
system. The implementation of EIR is relatively a new security feature of the GSM
system.
51
Operation & Maintenance center

The Operation & Maintenance center (OMC) has access to both the (G) MSC and the
BSC, handless error messages coming from the network and control the traffic load of the
BSC and the BTS. The OMC configures the BTS via the BSC and allows the operator to
check the attached components of the system. As the cells become smaller and the
number of base station increases. It will not be possible in the future
52
COMPANY PROFILE
The established service areas are Delhi, Andhra Pradesh, Gujarat, Maharashtra, Haryana,
Kerala, Madhya Pradesh and Uttar Pradesh (West).
Licenses for the Maharashtra and Gujarat Service Areas were awarded in December 1995,
with network rollout and commercial launch achieved in 1997. In January 2001 the
mobile operations in Andhra Pradesh Service Area were integrated with IDEA through a
merger with Tata Cellular Limited.
In June 2001, the mobile operations in Madhya Pradesh Service Area were fully
integrated with IDEA through an acquisition of RPG Cellcom Limited. In October 2001,
the license for Delhi Service Area was acquired during the fourth mobile license auction,
with network rollout and commercial launch in November 2002.
In January 2004, Escotel Mobile Communications Private Limited ("Escotel"), was
acquired with its original licenses in the Service Areas of Haryana, Uttar Pradesh (West)
and Kerala. All these Service Areas were re-branded and integrated with IDEA in June
2004.
Call
forwarding
Call conferencing
Call waiting
and
Call holding
facility
Unified Messaging Services: This provides Voice mail,

53

Wireless Application Protocol (WAP): Surf WAP enabled websites on Internet
using
VOICE MAIL
Cell One Voice Mail Service ensures that the customers never miss their calls even when
their phone is busy, switched off, out of coverage, or the customer is simply too busy to
take the call. In such cases, Cell One VMS greets the caller and records a message from
the caller, which the customer can retrieve later at his convenience from anywhere in the
world. This is available to all post-paid customers.
VALUE ADDED SERVICES

1. SMS BASED VALUE ADDED SERVICE : SIM BASED, SHORT CODE
BASED
2. VOICE BASED VALUE ADDED SERVICE
3. GPRS/MMS:
The Cellular Mobile subscribers of IDEA who have the GPRS subscription, now
have access and download the rich content like Polyphonic ring tones, True tones,
Real tones, MP3 tones, SMS tones, Themes, Color wallpapers, Java Games, etc
thorough the website (www.cellone.in) as well as the WAP site (wap.cellone.in).
The detailed catalogue of the content can be seen either at the above website or the
WAP site.
54

4. The subscribers interested in knowing about how they can subscribe to GPRS of
IDEA need to send "GPRS" as SMS to short code "3733".
5. The subscribers who need to have the GPRS settings for activating their GPRS
subscription on their GPRS handsets can click here.
6. The Companies who are interested in becoming the partners of IDEA.
7. NEWSPAPER service: This is a new value added service under cellular services
(both prepaid and postpaid GPRS subscribers) in the name of "MOBILE
NEWSPAPER" the WAP portal of IDEA "Cell One Safari".
SMS
Mobile to Mobile Messaging is a revolutionary new means of communication that allows
Cell One mobile subscribers to send a short text message instantaneously to any other
mobile subscriber. We can type down the message and send it to any mobile. The message
can be of 160-character length including spaces, punctuation and special characters. The
system sends the confirmation about the delivery of the message to the sender as soon as
the message is delivered .If the called number is busy or out of coverage area, the system
periodically monitors the status of the called number and sends the message as soon as it
becomes active. IDEA provides national and International SMS facility to its post and
pre-paid customers at very cheap price.
55
CALL FORWARDING
In case we are in a meeting or our Cell phone is switched off, using the Call Forwarding
feature, we can forward our calls on a fixed line or a cell phone where someone can see
messages on your behalf. You can also forward an incoming call while speaking to
someone.
CALL CONFERENCE
There are times when we have wished that we could speak to a group of people
simultaneously. May be wanted to gossip with friends, or hold discussions with clients.
Now we can have the privilege of a teleconference with up to 6 people, at the punch of a
few buttons
CALL WAITING
This feature enables us to speak to two callers, one at a time, without hanging up on either
one of them. When this network service is activated, the network notifies we of a new
incoming call while we have a call in progress. If another person tries calling us midway
through a conversation, he/she will hear a message informing him/her that your line is
busy, while you will hear beeps at intervals. We can accept the second call while putting
the first call on hold.
56
UNIFIED MESSAGING ON CELLONE

1.
FAX Message
2.
E-Mail
3.
E-Mail to Speech (ETS)
FAX-Message
This feature will enable the subscriber to sent/receive fax message. The fax can be
sent/received to/by the subscriber either through IDEA UMN account or using fax
machine.
This feature will enable the subscriber to send/receive E-mail. The subscriber has to get
IDEA UMN account for this feature.
E-Mail to Speech (ETS)

This feature will enable the subscriber to receive the Email on the mobile phone .In order
to listen E-mail messages from your voice mailbox.
57
PRODUCT PROFILE
Product Name
Year
Month
Sales
Sales Value(Rs.Million) % of STO
Quantity
Telecom Service Revenue
2010
03
0.00
118502.21
Handsets/DataCards - Traded
2010
03
0.00
0.22
Telecom Service Revenue
2009
03
0.00
98383.47
Handsets/DataCards
2009
03
92703.00
187.33
100.00
0.00
99.81
58
ANALYSIS
This chapter the percentage based analysis of the questionnaire that has been presented
been presented before 120 respondents in order to know the customer satisfaction towards
IDEA Cellular services providers. Here the data collected through the questionnaire has
been tabulated with table interpretations and inferences drawn from the tabulated data.
This chapter forms the base for the whole study through its findings and suggestions. This
particular chapter can be states as the pivotal chapter of the whole study.
RESULTS
Interpretation of results is the so what? of research. Research is wasted and useless it
influences action. So as to make effective utilization of the research, the researcher has
tried to provide suggestions so as to improve the overall satisfaction level of customers.
The names of the books, journals, records etc.., have been given in bibliography section at
the end of the report.
59
DATA ANALYSIS
AGE
AGE
15-20
20-35
35-50
Above50
Total
NO OF RESPODENTS
21
50
42
7
120
PERCENTAGE
9.16
41.6
35.00
5.30
100
TABLE-1
INFERENCE: Most of the cell phone users age between20-35years have taken with
in 41.60% we have observe the above table for 50 years persons having 5.4%.
60
MAJOR CUSTOMER FOR IDEA SERVICES

TABLE-2
CUSTOMERS
STUDENTS
EMPLOYEES
BUSINES PEOPLES
OTHERS
Total
NO.OF RESPONDENTS
18
35
55
12
120
PERCENTAGE
15.00
29.17
45.84
10.00
100
INFERENCE: Most of the business people are using the idea services 45.84% and
29.12% Employees, 15%of students and 10% of others are using idea services.
FROM HOW MANY YEARS ARE YOU CUSTOMER FOR IDEA

SERVICE.
61
TABLE-3
NO.OF
CUSTOMERS
Below one year
1-2years
2-5years
Above 5years
Total
PERCENTAGE
RESPONDENTS
30
52
34
21
120
10.83
43.33
28.33
17.51
100
INFERENCE: Most of the cell phone users have taken idea service 1-2 yrs is 47.5%,
2-5 yrs customers are 45%, above 5 yrs are 17.5% and fresh customers are 9.17%
WHICH TYPE OF SREVICES ARE YOU HAVING.

TABLE - 4
62
NO. OF
SERVICES
Pre paid
Post paid
Total
PERCENTAGE
RESPONDENTS
97
23
120
80.83
19.17
100
INFERFERENCE: Most of the respondents are using Pre Paid service 80.83% and
Post paid service respondents are 19.17%.
ARE YOU SATISFIED WITH THE IDEA NETWORK

TABLE-5
63

CUSTOMERS
Highly satisfied
Satisfied
Neutral
Dis satisfied
Total
NO. OF RESPONDENTS
30
53
36
1
120
PERCENTGE
25.00
44.17
30.00
0.83
100
INFERENCE: Majority of the respondents 44.17% are satisfied with the idea network
and 0.83% respondents are dis satisfied.
64
ARE YOU SATISFIED WITH THE SALES AFTER SERVICES

PROVDE BY IDEA
TABLE-6
Customer
Highly satisfied
Satisfied
Neutral
Totol
NO.OF RESPONDENTS
20
53
47
120
PERCENTAGE
16.67
44.16
39.17
100
INFERENCE: Majority of the respondents are satisfy with sales after services
44.17%,highly satisfied respondents are 16.16% and no respondents are dissatisfied.
65
ARE YOU SATISFIED WITH THE OFFERS PROVIDE BY IDEA

TABLE 7
CUSTOMERS
Highly satisfied
Satisfied
Neutral
Dis satisfied
Total
NO.OF RESPONDENTS
23
47
46
4
120
PERCENTAGE
19.17
39.16
38.33
3.40
100
INFERENCE: Majority of the respondents 39.17% are satisfied with the idea
services,38.14% respondents are neutral,19.16% respondents are highly satisfied
and3.33% respondents are dissatisfied with the idea services.
66
ARE YOU SATISFIED WITH THE IDEA CALL RATES

TABLE-8
NO.OF
CUSTOMERS
Highly satisfied
Satisfied
Neutral
Dis satisfied
Total
PERCENTAGE
RESPONDENTS
13
58
47
2
120
INFERENCE: Majority of the respondents 48.33%satified with
10.83
48.33
39.17
1.60
100
idea call
rates,10.83% are highly satisfied and 1.67% respondents are dis satisfied.
67
ARE YOU SATISFIED WITH THE CALLER TUNES

PROVIDED BY IDEA
TABLE-9
ROAMING
FACILITY
Highly satisfied
Satisfied
Neutral
Dis satisfied
Total
NO. OF RESPONDENTS
PERCENTAGE
10
34
56
20
120
8.34
28.33
46.67
16.66
100
INFERENCE:Majority of the respondents 46.67% are neutral with the caller tune
provided by idea cellular service and 16.67% respondents are dis satisfied.
ARE YOU FEELING AN IDEA SCHOOL ADVRETISEMENT

TABLE-10
68

CUSTOMERS
Highly satisfied
Satisfied
Neutral
Dis satisfied
Total
NO. OF RESPONDENTS
PERCENTAGE
61
41
18
0
120
50.83
34.17
15.00
0
100
INFERENCE:Half of the respondents 50.83% are highly satisfied with idea school
advertisement and no respondents are dis satisfied with the idea school advetisment.
WHO RECOMMENDED IDEA SRERVICE TO YOU

TABLE-11
CUSTOMERS
Friends
Dealers
Your self
NO.OF RESPONDENTS
27
38
49
PERCENTAGE
22.5
31.67
40.83
69

Others
TOTAL
6
120
5.00
100
INFERENCE: Majority of the respondents 40.83% arte self recommended and 22.5%
friends,31.67% dealers and others are5%.
WOULD YOU LIKE TO CONTINUE WITH IEDA SERVICES

TABLE-12
CUSTOMERS
Yes
No
Total
NO.OF RESPONDENTS
85
35
120
PERCENTGE
70.83
29.17
100
70
INFERENCE:Majority of the respondents 70.83% are continuing with idea services

and 29.17% are dis continuing the idea services.
IN YOUR POINT OF YOU VIEW MAIN COMPETITORS FOR IDEA

SERVICES
TABLE-13
NO.OF
CUSTOMERS
PERCENTAGE
IDEA
AIR TEL
VODAFONE
TATA DOCOMO
RESPONDENTS
24
51
38
7
20.00
42.50
31.60
5.83
TOTAL
120
100
71
INFERENCE: Majority of the respondents 42.5% IDEA CELLULAR SERVICES

services are competitors, 31.67% Vodafone are competitors and 20% of IDEA and
reliance and tata indicom are no competition with the idea services .
RANKS OF IDEA SERVICES COMPARED WITH COMPITETORS

TABLE-14
72

RANKS
NO.OF RESPONDENTS
PERCENTAGE
1st
2nd
3rd
Cant say
Total
16
24
13.33
20.00
25.00
41.67
100
30
50
120
INFERENCE: Majority of the respondents 41.67% cant say their opinion,25% of

respondents are giving 3rd rank and 13.33% of respondents giving 1st ran k with the idea
services compared with competitors.
73
ARE YOU ENJONG WITH IDEA ADVERTISMENT

TABLE-15
CUSTOMERS
NO.OF RESPONDENTS
PERCENTAGE
Yes
98
81.67
No
Total
22
120
18.33
100
INFERENCE:Majority of the respondents 81.67% are enjoying with idea

advertisement and 18.33% are dis satisfied with idea advertisement.
74
ARE SATISFIED WITH CUSTOMER CARE SUPPORT PROVIDED

BY IDEA SERVICES
TABLE-16
CUSTOMERS
NO.OF RESPONDENTS
PERCENTAGE
Highly satisfied
21
17.5
Satisfied
Neutral
Dis satisfied
51
43
5
42.5
35.83
4.17
Total
120
100
INFERENCE: Majority of the respondents 35.83% are satisfied with customer care
support provided by idea services, 4.17% of dis satisfied by customer care support
provided by idea services.
75
YOU FEELING ABOUT IDEA POWER SERVICES

TABLE-17
NO.OF
Customer
PERCENTAGE
Highly satisfied
satisfied
Nuetral
RESPONDENTS
19
43
47
15.83
35.83
39.17
dissatisfied
11
9.17
Total
120
100
INFERENCE: Majority of the respondents 39.17%are neutral in their feeling about

idea power services and 9.16% are dissatisfied with idea power services.
ARE YOU SATISFY THE NIGHT BALANCE TIMING FOR IDEA

SERVICES COMPARE WITH OTHER COMPITETORS
76
TABLE-18
CUSTOMERS
NO.OF RESPONDENTS
PERCENTAGE
Yes
39
32.5
No
Total
81
120
67.5
100
INFERENCE: Majority of the respondents 67.5% are satisfied with the night balance
timings and 32.5% are dissatisfied with night balance timings of idea net work compared
with other services.
77
FINDINGS
Based on age, most of the cell phone users age between20-35years have taken
with in 41.0%
Major customers 45.83% business people, students 15%, employees 29.17%

and others are 10% idea customers.
Half of the users of idea services have been in usage for 1 years .
Prepaid is the most prioritized by users compared to post paid services .
Coverage, tariff of idea is the main reason to divert many users from other
services followed by coverage area.
All top up coupons available in the market.
Every users is satisfied with overall issues of monthly bills.
The main competitions are ,IDEA CELLULAR SERVICES, docomo, IDEA

and reliance, among them IDEA CELLULAR SERVICES and Vodafone gives
more computations in SRI KALAHASHI.
Half of users of cell phone are engaged with voice communication of instead
SMS, GPRS, MMS, and internet.
Coverage is the main reason for using in rural areas IDEA cell services .
Most of the customers mainly 87.5% want to YOUR SELF go for IDEA
services.
Majority of the respondents are not satisfied with night timings offers
78
SUGGESTIONS AND RECOMMENDATIONS

To reduce the coverage problem extension of tower capacity, location of new
towers at problematic areas is necessary.
If we advice to develop the packages, which engages more customers in SMS and
internet along with voice communication. It also helps reducing competition from
the other services.
Customer care should be answerable to customers at any time with out delay.
Take steps to solve the customers request as early as possible.
IDEA should think about to concentrate on student segment with attractive offers.
79
CONCLUSION
At last I conclude that the project report undertaken by me is satisfactory and the work
has got very good response from the respondents. The coverage and tariff provided by the
company are very much beneficial to respondents. In the process, majority of the
respondents are very positive towards the IDEA CELLULAR SERVICES. According to
my research, all the respondents are provided with better service by the company.
80
CUSTOMER SATISFACTION ON IDEA (CELLULAR SERVICE) SRI

KALAHASTHI
Ph.No:
1.Name :
2.Gender
Male
Female
3.Age?
(A) 15-20
B) 20-35
C) 35-50
D) Above 50
4. Major Customer For Idea Services?

A) Students
B) Employees
C) Business People
D) Others
5. From How Many Years Are You Customer For Idea Services?
A)Below 1 Year
C) 2-5 Years
B)1-2 Years
D) Above 5 Years
6.Which Type Of Services Are You Having ?

A) Post Paid
B) Prepaid
81

7. Are You Satisfied With The Idea Network?
8. Are You Satisfied With The Sales After Services Provided By Idea ? [
A) Highly Satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
A) Highly Satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
9. Are You Satisfied With The Offers Provided By Idea?

A) Highly Satisfied
C) Neutral
B) Satisfied
D) Dissatisfied
10.Are You Satisfied With The Call Rates Provided By Idea?

A) Highly Satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
11.Are You Satisfied With The Caller Tunes Provided By Idea ?

A) Highly Satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
12. You Are Feeling An Idea School Advertisement?

A)Highly Satisfied
B)Satisfied
82

C)Neutral
D)Dissatisfied
13.Who Recommended Idea Services To You?

A)Friends
B)Dealers
C)Yourself
D)Others
14.Would You Like To Continue With Idea Services?

A)Yes
B)No
15. In Your Point Of View Main Competitors For Idea Services?

A) Airtel
B) MTS
C) Vodafone
E) Reliance
E) Tata Docomo
F) Tata Indicom
16. Rank of idea sevices compared with competators ?

A)1
B)2
C)3
D)cant say
17.Are you satisfied with customer care support provded by idea services ?
[
A)Highly Satisfied
C)Neutral
B)Satisfied
D)Dissatisfied
83

18.Your feeling about idea power services?
A)Highly Satisfied
B)Satisfied
C)Neutral
D)Dissatisfied
19.Are you enjoying idea advertisements?

A)Yes
B)No
20.Are you satisfy the night balance timings for idea services compare
With other compotators?
A)Yes
B)No
Any suggestions to Idea Company?
Place:
Date :
Signature
84
BIBLIOGRAPHY
1. PHILIP KOTLER MARKETING MANAGEMENT the millennium edition, New
Delhi, Prentice-Hall India, Tenth Edition.
2. C.R KOTHARI QUANTITATIVE TECHNIQUES New Delhi, Vikas publishing
House Pvt.Ltd., 1978, Third Edition.
3. C.R KOTHARI RESEARCH METHODOLOGY New Delhi Wishwa prakashan,
2000, Second Edition.
4. S.P GUPTHA STATISTICAL METHODS Sultan chand & Co., New Delhi.
Web sites:
www.google.com
www.ask.com
85

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IDEA CELLULAR LIMITED

For the fulfillment of the requirement of MASTER OF BUSINESS

MBA (4th SEM)

Roll No: 1313270026

IDEA CELLULAR LIMITED

RESEARCH PROJECT REPORT

For the fulfillment

Under the Guidance of:

Greater Noida Institute of Engineering & Technology,

IDEA CELLULAR LIMITED

IDEA CELLULAR LIMITED

Measuring customer satisfaction

IDEA CELLULAR LIMITED

IDEA CELLULAR LIMITED

IDEA CELLULAR LIMITED

Trends in the Service Sector

CUSTOMER EXPECTATIONS OF SERVICE

IDEA CELLULAR LIMITED

IDEA CELLULAR LIMITED

FACTORS THAT INFLUENCE CUSTOMER EXPECTATIONS OF

Sources of Desired Service Expectations

IDEA CELLULAR LIMITED

IDEA CELLULAR LIMITED

IDEA CELLULAR LIMITED

What Determines Customer Satisfaction?

IDEA CELLULAR LIMITED

Product and Service Features

IDEA CELLULAR LIMITED

Attributions for Service Success or Failure

IDEA CELLULAR LIMITED

Perceptions of Equity or Fairness

Other Consumers, Family Members, and Coworkers

IDEA CELLULAR LIMITED

National Customer Satisfaction Indexes

IDEA CELLULAR LIMITED

The American Customer Satisfaction index (ACS...)

IDEA CELLULAR LIMITED

IDEA CELLULAR LIMITED

IDEA CELLULAR LIMITED

IDEA CELLULAR LIMITED

COMPANY SALES FORECAST:

COMPANY SALES POTENTIAL:

TOTAL MARKET POTENTIAL

AREA MARKET POTENTIAL

IDEA CELLULAR LIMITED

INDUSTRY SALES AND MARKET SHARES

IDEA CELLULAR LIMITED

NEED FOR THE STUDY

CELLULAR SERVICES IN SRI KALAHASTHI has been undertaken.

IDEA CELLULAR LIMITED

OBJECTIVES OF THE STUDY

IDEA CELLULAR LIMITED

SCOPE OF THE STUDY

IDEA CELLULAR LIMITED

IDEA CELLULAR LIMITED

SPECIFY THE INFORMATION NEEDED

IDENTIFY THE SOURCE OF INFORMATION

OBTAIN THE INFORMATION

PROCESS THE INFORMATION

INTERPRET THE INFORMATION

PRESENT THE FINDINGS

IDEA CELLULAR LIMITED

IDEA CELLULAR LIMITED