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By
GIRISH TANEJA
Lecturer,
Deptt of Management Studies,
TIT & S College, Birla Colony, Bhiwani
Correspondence address – 546, Sector 15A, Hisar, Haryana
Mobile – 09416252111
Email – tanejagirish@rediffmail.com
And
NEERAJ KAUSHIK
Sr. Lecturer,
Deptt of Management Studies,
TIT & S College, Birla Colony, Bhiwani
Mobile – 099996259725
Email – kaushikneeraj@gmail.com
Customer’s Perception towards Mobile Service Providers -
An analytical Study
ABSTRACT
Mobile service is one of the fastest growing industries in India. With opening up of
promoted the use of cellular phones in the country. Today it is buyers market in case of
mobile services. Mobile service providers must understand the customer’s perception
about the company and its various offerings. Mobile service provider must identify
customer needs and influencing factors before designing any service or offer. In this
context, research paper aims to deduce the factors that customers perceive most important
while utilizing the services of a mobile service provider. . Well-structured schedule was
developed for conducting the study. The study was conducted at Bhiwani and Hisar
districts (along with some of the villages of these districts) in Haryana state during the
months of Feb-March, 2007. Judgmental sampling method was followed. Data was
suitably tabulated on the basis of responses provided by 186 respondents and further by
calculating percentages, frequencies and factor analysis method. The mobile users
perceive the various features as 4 factors namely: Customer care (interaction), Service
features, Call rates and Promotion & Availability in the same order of importance.
Moreover hypothesis testing reveals that customers perceive these factors in similar order
having less than 20 years and income less than Rs 10,000/- are more sensitive to call rates
as compared to other respondents. Finally it can be said that better customer care services
and service features especially strong network range are most important for retaining the
INTRODUCTION
Mobile service is one of the fastest growing industries in India. With opening up
promoted the use of cellular phones in the country. There are 25 private companies
providing mobile services in 19 Telecom Circles and 4 Metro cities, covering 1500 towns
across the country. There are two types of mobile service networks: GSM (Global System
for Mobile) and CDMA (Code division multiple access). Major players operating in India
in GSM sector are: BSNL, MTNL, Bharti telecom, Hutch-Essar, Aditya Birla Group
while those of CDMA sector are Tata and Reliance. Presently, industry is witnessing a
fierce competition. The mobile companies are offering various kinds of services and offer
to attract new customers and retain old customers. Everyday in newspapers we see a new
offer by a mobile service provider. Today it is buyers market in case of mobile services.
Introducing a range of offers and schemes may not always ensure a large customer base
and bigger market share. Mobile service providers must understand the customer’s
perception about the company and it’s various offerings. Mobile service provider must
identify customer needs and influencing factors before designing any service or offer.
This will lead to better and effective marketing strategies rather than focusing solely on
lucrative schemes. In this context, research paper aims to deduce the factors that
customers perceive most important while utilizing the services of a mobile service
provider.
RESEARCH METHODOLOGY
mobile services.
Null Hypotheses
importance given factors that are considered more influencing for mobile
services.
importance factors that are considered more influencing for mobile services.
importance factors that are considered more influencing for mobile services.
importance factors that are considered more influencing for mobile services.
importance factors that are considered more influencing for mobile services.
• H0(8): Mobile services operator have no significant impact on the factors that
The study of respondents was conducted at Bhiwani and Hisar districts (along
with some of the villages of these districts) in Haryana state during the months of Feb-
March, 2007.
Survey was conducted on respondents with the help of MBA students who were
trained for the purpose. Well-structured schedule was developed for conducting the
study. Schedule was divided into two sections. First part was designed to obtain
status, practicing status and state. Second part had a list of 20 features used by most of
the mobile service provider companies. Respondent has to just tick one parameter of each
promotional tool depending on whether that tool influences them to avail products of a
Analysis of Data
data collected through schedules was coded and tabulated keeping in context with the
frequencies and factor analysis method. The data was analyzed using SPSS version 14.0
belong to the age groups of 20-30 years while 22% were in the age group of more than 40
(Table II). 44.3 % respondents were graduates (Table III) and approximately (30%)
equal numbers of respondents were students, businessman and serviceman (Table IV).
Rest of the respondents was having agriculture as their profession. Sample contained
respondents were from all income groups (Table V).Majority of respondents (75.8 %)
belong to the urban background (Table VI). Both single (47.3%) and married (52.7%)
ANALYTICAL RESULTS
from an array of seemingly important variables. In a more general way, factor analysis is
number into fewer factors, which explain much of the original data, more economically.
(Nargundkar, 2005).
Significance .000
square is 653.831, degree of freedom is 190, significance is 0.000) and KMO value
(0.661) showed that data were fit for factor analysis. Principal Component analysis was
used for extracting factors and four factors were retained depending on eigenvalues and
variance explained. Eigenvalue represents the total variance explained by each factor.
The standard practice normally used is that all the factors with an Eigen value of
one or more should be extracted. Table IX and Scree plot clearly shows that there are
seven factors having eigen values more than 1 (in other words, a factor must explain at
least as much of the variance if not more, than a single original variable). Thus seven
factors have been extracted. The solution of factor analysis gave seven factors, which
explained 59.808% of the total variance. The results were obtained through orthogonal
rotations with Varimax method and all the factor loadings greater than 0.40 were
retained. The name of the factors, variable labels and factor loadings are summarized in
Table XI.
(α denotes the degree of internal consistency). The last three factors were found very low
in Cronbach Alpha value, hence rejected from the further analysis. The remaining four
After the number of extracted factors is decided, the next task of the Researchers
is to interpret and name the factors. This is done by the process of identifying the factors
that are associated with which of the original variables. The factor matrix is used for this
purpose. The factor matrix gives us the loading of each variable on each of the extracted
factors. This is similar to correlation matrix, with loadings having values between 0 and
1. Values close to 1 represent high loadings and those close to 0, low loadings. The
objective is to find variable which have high loading on one factor, but low loading on
other factors.
NAMING OF FACTORS
All the factors have been given appropriate names according to the variables that
have been loaded on each factor. The four factors depicted in table IX are discussed
below:
The rotated matrix has revealed that respondents have perceived this factor to be
the most important factor (set of promotional tools) with the highest explained variance
of 13.384%. Six out of twenty service features load on significantly to this factor.
Researchers have named this factor as Customer Care as it includes willingness, ability of
customer care personnel to handle complaints, attention given by them, prompt reply &
number of customer care outlets. Hence it can be concluded that quality of Customer
Care is most crucial factor influencing the decision of mobile service customers during
It has been revealed to be the second most important factor with explained
variance of 10.12%. Five types of features were loaded on to this factor. Activation
formalities, network range, type of plans, value added services and waiting time for
customer care are highly loaded on this factor and thus researchers have named this factor
as Service Features.
Hence it can be concluded that Service Features is second most important factor
types of features were loaded on to this factor. Local & STD call rates load high on this
factor and thus researchers has named this as Call Rates. Drastic drop in call rates by any
Three types of features load on this factor and together account for 8.401% of the
variance. This factor includes option to move to another plan, availability of SIM cards &
disturbing promotional calls and thus the name Promotion & Availability has been
assigned.
DECISION RULE
Decision for testing null hypothesis – If the significance value is less than 0.05 then the
null hypothesis is rejected. In case of unequal sample sizes we take into consideration the
importance given to factors (that are considered more influencing) for mobile services,
has been accepted (Refer Table XII). Hence, it can be concluded that all respondents
irrespective of their gender perceive the various factors in the same manner.
2. ANOVA between FACTORS V/S AGE
Null Hypothesis that Age group of respondents has no significant impact on the
importance given to factors (that are considered more influencing) for mobile services,
has been partially rejected in case of Call Rates as shown in table XIII. For the further
analysis, Post hoc analysis (refer table XIII a) is used which shows that respondents of
age group of Less than 20 gives greater importance to Call Rates as compared to
Table XIV clearly depicts that null Hypothesis H0 (3) has been accepted. Thus it
can be said that education of respondents has no significant impact on the importance
given to factors (that are considered more influencing) for mobile services. It can be
concluded that respondents perceive the various factors in the same manner
independent of qualification.
importance given to factors (that are considered more influencing) for mobile services,
has been accepted as depicted in table XV. Hence it can be concluded that respondents
importance given to factors (that are considered more influencing) for mobile services,
has been partially rejected in case of call rates (refer table XVI). For the further analysis,
Post hoc analysis (refer table XVI a) is used which shows that respondents of income
group of Rs. 10,000 gives greater importance to call rates as compared to other age
group respondents.
importance given to factors (that are considered more influencing) for mobile services,
has been partially rejected in case of service Features (refer table XVII).
the importance given to factors (that are considered more influencing) for mobile
services, has been accepted as shown in table XVIII. Hence it can be concluded that
respondents whether married or unmarried perceive the various factors in the same
manner.
impact on the importance given to factors (that are considered more influencing) for
mobile services, has been rejected (refer table XIX). For the further analysis, Post hoc
analysis (refer table XIX a) is used which clearly shows that the respondents of BSNL
clearly differ in their opinion regarding various factors as compared to respondents who
Negative value of mean difference in case of customer care clearly shows that
customers of BSNL perceive that services provided by customer care department are
Positive values of mean difference in case of service features clearly shows that
customers of BSNL perceive that complicated activation formalities, poor network range,
inadequate plan options and inadequate value added services as compared to customers of
Negative values of mean difference in case of call rates clearly depicts that
customers of BSNL perceive that call rates are significantly lower as compared to the
depicts that customers of BSNL perceive that availability is significantly better and
promotional calls or messages are less frequent and less disturbing as compared to the
customers of private mobile service players especially Airtel, Hutch and Idea.
CONCLUSION
The perception of mobile users was studied in the present study through the
relationship between the four independent factors along with the demographic
characteristics of users. These factors were extracted from the factor analysis from the
exhaustive list of statements. In general, only partial support was found for the
hypotheses proposed in the study, suggesting that the perception of mobile users is a
predict the perception of users. The mobile users perceive the various features as 4
factors namely: Customer care (interaction), Service features, Call rates and Promotion &
Availability.
Customer care (explained variance of 13%) was found to be the most influencing
factor after making the purchase or after availing services from one particular mobile
operator. It includes six out of twenty service features viz. willingness, ability of
customer care personnel to handle complaints, attention given by them, prompt reply &
number of customer care outlets. Hypothesis testing shows that there is no significant
impact of any demographic variable on this factor. People of all age groups, any sex,
qualification, profession, background or marital status perceive this factor as the most
important. After purchasing the handset and availing services from one service provider
people seek constant help and guidance from customer care. While private players are
faring well on this front, the performance of state owned BSNL needs improvement. Post
hoc analysis of Mobile service provider shows clearly that the people perceive customer
care services better in case of private service providers than state owned BSNL.
Service features which is regarded as the second most influencing factor includes
activation formalities, network range, type of plans, value added services and waiting
time for customer care and it explained variance of 10.12%. Hypothesis testing shows
that null hypothesis in the case of background of people is rejected indicating that the
services. It was observed that people of urban background give far more importance to
the service features than the people of rural background. Further, post hoc analysis
revealed that respondents perceive BSNL not doing well on this front also. While
network range in BSNL is always a problem, time taken to get a customer care executive
in BSNL is far more than any other service provider. No doubt people perceive private
The third factor was Call Rates that explained 8.643% of the total variance. Two
types of features Local call rates & STD call rates were loaded on to this factor. When we
talk of call rates BSNL clearly emerges as leader on this factor. Primarily BSNL sets the
local call rates and all other service providers follow almost same pricing e.g. recently
BSNL has made local (intra-circle) call at 50 paisa/min. and 10 paisa/min. on any two
numbers. This made all other service providers to adapt to the same pricing schemes.
Null hypothesis was assumed that demographic variables have no significant impact on
the any of the factor. Contrary to the hypothesis it was found that Age group of
respondents and income level of people have significant bearing on this factor. It was
observed (during post hoc analysis) that people of age group less than 20yrs. gives far
more importance to the Call rates as compared to other age group respondents. This is a
typical teenage characteristic and with the rise of mobile phone in India, teenagers have
emerged out as one of the biggest users. Respondents of income level less than Rs.
10,000 were also found giving far more importance to call rates as compared to other
income level people. Thus it can be concluded that low-income and young age group is
more sensitive to call rates as compared to high-income and old age groups.
The fourth factor Promotion and Availability account for 8.401% of the
variance. This factor includes option to move to another plan, availability of SIM cards &
disturbing promotional calls. None of the demographic variable influenced the perception
of respondents and it was found that all respondents perceive this factor in the same
manner. Post hoc analysis reveals quite surprising results. It states that people perceive
BSNL as least disturbing, SIM card availability is OK and hence they are not inclined to
move to any another service provider. This factor explained how BSNL is able to hold
such a market share despite the fact that its services are not very competitive as compared
to private operators.
The authors are of the opinion that the present study can make its contribution in
two ways. First it indicates that customers perceive the various service characteristics and
owned BSNL and private service providers. The latter are performing better on some
factors like customer care, service features but state owned BSNL is performing well on
call rates. People still feel and perceive that BSNL promotional schemes are not
disturbing, SIM cards are available and they are less inclined to switch over to other
service providers. Authors are of the view that the category of scheme, whether prepaid
positioning system (GPS) are the other variables which need to be further analysed in
future studies.
Finally it can be said that better customer care services and strong network range
are most important for retaining the customers in case of mobile services. Though
attractive offers may help to attract certain customers yet it may not help to retain those
customers without proper customer care and service features. Thus mobile service
providers should strengthen customer care department and develop service features
especially strong network for satisfying and retaining customers in the long run.
Bibliography –
1. Kotler Philip (2003), Marketing Management, Prentice Hall of India Pvt. Ltd., New
Delhi.
2. Levin Richard I and Rubin David S (2005), Statistics for Management, Prentice Hall
4. Nargundkar Rajender (2005), “Marketing Research Text and Cases”, Tata McGraw
6. Ray Subhasis and Sarkar Avishek (2006), Analyzing Influence of Brand vis-a- vis
Price in Indian Mobile Industry, The ICFAI Journal of Marketing Management, Vol.
V, NO. 4.
Quality of Service”, The ICFAI Journal of Services Marketing, Vol. IV, NO. 4.
APPENDIX
TABLE-I SEX TABLE-II AGE
Frequency Percent Frequency Percent
Male 163 87.6 Less than 20 10.8
Female 23 12.4 20
Total 186 100.0 20-30 100 53.8
30-40 24 12.9
more than 42 22.6
40
Total 186 100.0
Scree Plot
3.5
3.0
2.5
2.0
1.5
1.0
Eigenvalue
.5
0.0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Component Number
Table X – Rotated Component Matrix
Component
11 Customer care executives are willing and .733 -6.205E-02 -.134 -6.021E-02
enthusiastic to respond to customer Request
12 Customer care executives are able to handle .797 -2.429E-02 -2.333E-02 -4.336E-02
customer complaints directly and Immediately
13 If other company comes with a new and cheaper -.202 .246 .107 .671
scheme, I will switch over
14 Customer care executives provide personal attention .722 -.149 1.211E-02 .152
to the customer
15 Customer care executives provide complete .548 -4.483E-03 .217 -.126
information
16 Promotional calls and messages are quite frequent .140 -7.451E-02 1.365E-02 .652
and often disturbing
17 There are sufficient customer care shops of my .405 -.379 -.207 -1.999E-02
service provider company
18 Provide services at promise time (e.g. activation of .541 -.130 -.165 .311
GPRS etc.)
19 Sometimes extra charges are cut without -.153 -8.871E-02 .432 .164
information
20 SIM cards and recharge coupons are not easily 5.262E-03 -.160 -.146 .568
available
TABLE XI – NAMING OF FACTORS
TABLE- XIII (a) Post Hoc Analysis: Age and Call Rates
Mean Difference (I-J) Std. Error Sig. 95% Confidence Interval
TABLE- XVI (a) Post Hoc Analysis: Income and Call Rates
Mean Std. Error Sig. 95% Confidence Interval
Difference (I-
J)
(I) family (J) family Lower Bound Upper Bound
income per income per
month month
Upto 10000 10000-15000 .7279670 .19343854 .000 .3462965 1.1096375
TABLE- XIX - ANOVA and F-Test between Mobile service provider and Factors
Sum of df Mean Square F Sig.
Squares
Customer Care 11.319 5 2.264 2.346 .043
Service features 30.233 5 6.047 7.033 .000
Call rates 10.830 5 2.166 2.239 .050
Promotion & Availability 20.368 5 4.074 4.454 .001
TABLE-XIX (a) Post Hoc Analysis: Mobile Service Provider and Factors
Mean Std. Error Sig. 95% Confidence Interval
Difference
(I-J)
Mobile (J) mobile service you Lower Bound Upper Bound
service you are using
are using:
BSNL (I)
Customer Airtel -.6150160 .21063879 .004 -1.0306549 -.1993770
Care Hutch -.5541353 .26965373 .041 -1.0862244 -.0220463
Idea -.5502319 .22248077 .014 -.9892378 -.1112259
Reliance -.3007899 .31008353 .333 -.9126563 .3110765
Tata Indicom -.5784961 .22821530 .012 -1.0288176 -.1281746