Consumer Preference

MANDOVI MOTORS PVT LTD
Mandovi Motors, Arvind Motors & Supreme Motors are Group Companies who have
their Regd office at Arvind Building Balmatta Road, Mangalore.
ARVIND MOTORS PVT LTD.
M/s Arvind Motors is a firm setup in the year 1959, as Partnership Firm which has been
the dealer in TATA diesel Vechiles, Spareparts and accessories and also dealer for the
products of Bharath Petroleum Corporation. They are one of the top TELCO Dealers all
over India.The firm was converted into Private Limited Company on 22-02-1999 under
the Chapter 9 of Companies Act. They are the dealers for following Districts: South
Kanara, Udupi, North Canara, Chikmangalore, Shimoga, Hassan, Coorg, and Bangalore.
They are the
• Dealers in TATA Vechiles and Spareparts
• Job Work Undertaking
• Servicing of TATA Vechile
The Directors are Mr. A Kishore Rao, Mr. A Ashok Rao, Mr. A Sanjay Rao, The
Authorized Capital is Rs 1,50,00,000/-
• The Group Companies are M/s Mandovi Motors Private Ltd.
• M/s Supreme Auto Dealers Private Ltd.
• Supreme Motors Agencies
The Bankers are Canara Bank-Hampankatta
The turnover in Bank is Rs 1,35,00,00,000/-
The Auditors are M/s A Umanath Rao & Co., Ibrose Apartments, Kodialbail, Mangalore
SUPREME AUTO DEALERS PRIVATE LIMITED

M/s Supreme Motors is a firm setup in the year 1967 which has been the Dealer in Bajaj
Vechiles, Spare Parts and Accessories and also Dealer for the Indian Oil Corporation Ltd.
They are the top dealers in South. The firm was converted into Private Ltd. Company on
22.02.1999 under chapter 9 of Companies Act. They are the dealers for the districts of
Dakshina Kannada and Shimoga for Bajaj 2 wheeler vechiles and spare parts and for
Mysore region exclusively for 3 wheeler vechiles and spare parts.
They have ultra modern showroom to sell the vechiles and well-equipped workshops to
cater to the customers’ services after sale at Mangalore, Shimoga and Mysore. Supreme
Motors is Dealer for:
• Bajaj 2 wheeler and 3 wheeler and spare parts and products of Indian Oil Corporation
Ltd.
• Job work Undertaking
• Servicing of Bajaj 2 wheeler and 3 wheeler Vechile
Mr. A Kishore Rao, Mr. A Sanjay Rao and Mrs. A Arundathy Roa are the Directors of
the Company.
The Authorized Capital is Rs 1,50,00,000/-.
The Group Companies are:
• M/s Mandovi Motors Private Limited-since 1984,
• M/s Arvind Motors Private ltd.-since 1954,
• Supreme Motors Agencies-since 1998
• Supreme Motors-since 1999
The turnover in Bank Is Rs 50,00,00,000/-
It has branches at: Mangalore, Shimoga, Karwar and Mysore
The Turn over in Bank is Rs 50,00,00,000/-
The Bankers are Karnataka Bank Ltd. Hampankatta, Mangalore
MANDOVI MOTORS PVT LTD
M/s Mandovi Motors was a firm set up in the year 1963 as Partnership firm was the
dealer for Volkes Wagon cars and Spareparts and in 1965 appointed as the dealer for
Suvega Mopeds. After that, M/s Maruti Udyog Ltd. have appointed Mandovi Motors as
Dealer for Maruti vechiles and Spareparts in the year 1983. Mr. Ashok Rao is the
Managing Director of the Company.The Authorized Capital is Rs 1,50,00,000. The paid
up capital is Rs 90,00,000.
Now Mandovi is one of the top Maruti Dealer all over India. The firm was converted into
Private Limited company on 20.02.1999 under chapter 1x of companies Act. They are
having branches at following places.
The Group Companies are:
• M/s Arvind Motors Private limited
Dealers in Tata Commercial Vechiles and Spareparts
Bharat Petroleum products
Servicing of Tata vechicles and Job Work undertaking
• M/s Supreme Auto Dealers Pvt. Ltd.
Dealers for Bajaj 2wheeler and 3wheeler Vechiles and Spareparts
Indian Oil Corporation
Servicing of Bajaj Vechiles and job work undertaking
• Arvind Motors Invest & Leasing Pvt. Ltd.
Automobile Job undertaking
• Mandovi Motors Invest & Leasing Pvt. Ltd.
Commission Agents
• Arvind Automobiles
Authorized Services center for TATA PCD Vechiles
• Supreme Motor Agencies
Dealer for Castrol India Ltd. and Authorized service Center for MICO
• Supreme Motors
Authorized dealer for Bajaj Spare Parts
• Canara Motors
Telco Chassis /Vechiles transport contractors
Name of the Bank: Karnataka bank limited
Mangalore: 1 Showroom, True value Division and workshop at Arvind Bldg.

Balamatta road & in Surathakal
2 Stockyard and PDI at Jyothi Circle
Mysore: 1 Showroom, True value Division & workshop at KRS Road
2 Stockyard and Workshop at Hunsur Road.
3 Workshop at Vinobha Road
Bangalore: 1 Showroom & Accessories Display at Lavelle Road (First
Dealership)
2 Workshop & Spareparts at Wilson Garden
3 Workshop & Truevalue Division at Vijayanagar
4 Stockyard & Workshop at Yeshwanthpura
5 Body Repair Workshop at Anepalya
6 Workshop at JP Nagar
7 Workshop at Tumkur Road
8 Workshop at Bilakanahlli
9 True value Division at J P Nagar
10 Stockyard at Shivajinagar
8 Showroom and Accessories sales at Wheelers Road
(Second Dealership)
Or
Mandovi Motors network details are:
Fully Air –Conditioned Showroom at:
• Lavelle road, Bangalore.

• Wheelers Road, Bangalore.
• K.R.S Road, Mysore
• Balmatta Road, Mangalore
AND
Ultra-modern workshops at:
• Wilson Garden, Bangalore
• Goragontapalya, Bangalore
• Tumkur Road, Bangalore
• Yeshwanthpur, Bangalore(Body Repair)
• Vijayanagar, Bangalore
• Anepalya, Bangalore(Body Repair)
• JP Nagar, Bangalore
• Bilakanahalli, Bangalore
• Surathkal, Mangalore
• Balmatta Road, Mangalore (Service Centre & Body Repair)
• K.R.S road, Mysore
• Hunsur Road, Mysore
• Vinobha Road, Mysore
True Value
• Vijayanagar, Bangalore
• J P Nagar, Bangalore
• Balmatta Road,Mangalore
Stock Yards
• G G Palya, Bangalore
• Shivajinagar, Bangalore
• Kulshekar, Mangalore
Mandovi is having Ultra Modern showroom to sell the Maruti Vechiles and well
Equipped workshops to cater to the customer service after sale at the above
Places
Mandovi Motors Pvt. LTD was the first Prestigious Authorized Dealer in Karnataka State
and it commenced its operations at Bangalore on June 14th 1984 by Late Aroor Sripathi
Rao. It was originally Mandovi Motors with its showroom situated at Wilson Garden,
Bangalore.Later i.e. in the year 1999 as the volume of business grew larger and larger it
was converted into a Private LTD company known as Mandovi Motors Pvt. ltd.
The founder of “Mandovi Motors” i.e. Late Aroor Sripathi Rao was a leading
businessman, as Authorized dealer for TELCO. Under the dynamic leadership of Late
Aroor Sripathi Rao, Mandovi grew very fast year after year and also stated Maruti
Suzuki’s authorized dealership at Mysore in the year 1985 and later in 1989 Dealership in
Mangalore
Mandovi Motors Pvt. LTD have Totally 900 employees and this Company is certified as
ISO -9001/2000 for its Quality System by ISO an accredited body from Belgium. Thus
Mandovi’s effective “after sales & service”geared to its customers full satisfaction was
recognized.
In the annual track, CSI (Customer Satisfaction Index) study 2003 undertaken by M/S J
D Power Asia Pacific-“Mandovi Motors” was adjudged as one of the best service
provider in All India Level.
For Mutual advantage of Customers and the company, it has a segment (section) for the
purchase and sale of second hand cars, which is known as “True Value Division”.
Mondovi has the unique distinction of being the first ever automobile dealer in South
India to reach the sale figure of 1,00,000 Vechiles.Today Mandovi Motors Pvt. LTD’s
Dealership is second to none for the sale of Maruti Suzuki cars with sales of more than
12000 Maruti Cars per year in the recent years.
Among the Many notable achievements of our dealership the most prestigious have been:
• Maruti’s Top most All India Award: The Platinum Award for overall Performance
(Sales, Service & Spares) for the year 1997 from Maruti Udyog LTD, and the Hall of
Fame Gold Award for the Year 1998.
• India’s largest selling dealer for the Maruti Omni for the last 9 years.
• Karnataka’s largest selling dealer consistently from the last 19 years. As on date 5 out
of every 10 Maruti vechiles plying on the roads of Karnataka are sold by Mandovi
Motors. Mandovi’s Market Share of Maruti sales in Bangalore as well as in the state
of Karnataka is 36%.
• Over 2,25,000 sq. ft of land strategically spread over Bangalore is dedicated to the
Maruti Operations.
• New centrally located State-of –the –art Showroom at Bangalore selected by Maruti
as India’s Second Best in 2000.
• Marketing & sales promotion awards been consistently awarded from Maruti for the
last 7 to 8 years.
• Mandovi has the unique distinction of being the 1st Automobile dealer in South India
to cross the sale figure of ONE-LAKH Vehicles.
• ISO Certification for Bangalore in the year 1997, for Mangalore in the year 2003 &
for Mysore in 2006.
• Best Service Workshop award for Bangalore in Metro Category for the year 1997,
1998 & 2000. (Wilson Garden & Vijayanagar) .
• All India Best Body repair Workshop Award for Bangalore (Anepalya Branch) in the
year 2000.
• Best Workshop award for Mangalore in Non-Metro Category consecutively for 3

years in a row.
• All India No. 2 performance in MGP from 1997 for 7 years

• Dedicated & motivated team of Professional Managers with necessary empowerment
at all branches to effectively monitor the operations. Periodic Management Review
Meetings Organized for reviewing of Performance.
• Karanataka’s Largest network for service with a total of 11 workshops (7 in
Bangalore 3 in Mysore & 1 in Mangalore) of which 4 is exclusive Body Repair
workshops.
• Three extensive Body Repair shops, one each at Bangalore, Mysore, & Mangalore.
• Consistently high internal CSI score-85% to 87%.
• Internal SSI Score of 85% to 86% April –June 2002
• We have 3 Maruti True Value outlets one at each location. Selling Over 100 vehicles
per month.
• We renew over 1500 polices through our exclusive Maruti Insurance Call Centre
located in Bangalore.
OWARDS VARIOUS CELL PHONE SERVICE PROVIDES

COIMBATORE, TAMILNADU, INDIA
CHAPTER – I
INTRODUCTION
Consumer
A consumer is an individual who purchase or has the capacity to purchase
goods and services offered for sale by marketing institutions in order to satisfy
personal or household needs,
wants or desires.
According to a statement made by Mahatma Gandhi, ‘consumer refers to the

following, “A consumer is the most important visitor on our premises. He is not
dependent on us. We are dependent on him. He is not an outsider to our business. He
is part of it. We are not doing him a favour by serving him. He is doing us a favour by
giving us an opportunity to do so”.
So consumer is like the blood of our business and also a satisfied
customer is a word of mouth advertisement of a product / services.
1.1. CONSUMER SATISFACTION
Every human being is a consumer of different produces. If there is no

consumer, there is no business. Therefore, consumer satisfaction is very important to
every business person.
According to Philip Kotler consumer satisfaction is defined on, “personal

feeling of pleasure resulting from comparing a product’s pursued performance in
relation to his /her expectations”.
Consumer attitude measurements are taken on either potential buries or

existing client’s buries in order to identify their characteristics. Why should the
competent market engineer conduct consumer research? Consumer’s surverys can
provide the researcher with a wealth of information, valuable of the marketing
function.
32
A STUDY OF CONSUMER’S PREFERENCE AND SATISFACTION
SUKUMAR M.Com., M.Phil., PGDCA
TOWARDS VARIOUS CELL PHONE SERVICE PROVIDES
Detailed information regarding the customer in a market will provide the basic
platform for all marketing decisions. Marketing decision maker needs descriptive
information about the total potential unit and dollar sales in each segment. Perhaps the
most important one is that a seller need to be aware of the relevant objective and need
of consumer and how their objectives might best be served by the products.
MARKET
The term market is derived from Latin Word ‘Mercatus’, which means ‘to
trade’ that is purchasing and selling of goods. It also means merchandise truthic place
of business.
According to Pyle, “Market includes both place and region in which
buyers and sellers or in free competition with one another”.
MARKETING
Marketing includes all the impacts involved in the exchange process of

transferring the possession and ownership of goods or services from the producer to
the ultimate consumer’s.
33
MARKETING FORMULA
a. The foremost step is business aims at profit.
b. For profit making he can sell the products.
c. For selling the product he should create customers.

d. For creating the customer’s, customer’s needs of preferences to be
identified and satisfied.
e. To satisfy the customer’s new product to be produced.
Marketing is trying to learn,

 W h o b u y t h e p r o d u c t s o r
s e r v i c e s ?
 H o w d o t h e y b u y ?
 W h e n d o t h e y b u y ?
 W h e r e d o t h e y b u y ?
 W h y d o t h e y b u y ?
 H o w o f t e n t h e y b u y ?
It is otherwise called understand and predict human actions in their buying role.
A marketer is act as consumers while them purchasing any goods /services, and try to
market that product to an ultimate consumer. So, marketing is starts with consumer
and ends with consumer.
So, today’s market is called on consumer market. It can be defined on, “All the
individuals and households who buy goods and services for personal consumption”.
34
So, the consumer satisfaction is get more importance in the marketing
functions.
1.2. Importance of consumer satisfaction
The needs to satisfy customer for success in any commercial enterprise is very
obvious. The income of all commercial enterprise is derived from the payments
received for the products and services supplied to its customers. If there is no
customer there is no income and there is no business. Then the core activity of any
company is to attract and retain customers. It is therefore no surprise that Peter
Drucker the renowned management Guru, has said “to satisfy the customers is the
mission and purpose of every business”.
Satisfaction of customer is essential for retention of customer’s and for
continuous sales of the products and services of the company to customers. This
establishes the needs for and the importance of customer satisfaction. The satisfaction
of consumers is different from one to another. Became, each consumer has the
different behaviour in their life. So, the marketer satisfy the consumer, he must very
well know the behaviour of consumer.
1.4.Consumer behaviour:
The term consumer behaviour may be defined as the behaviour that consumer
displays in searching for purchasing, using, evaluating, producing, services and ideas
which they expect will satisfy their needs. In other words, “It is a study of
physiological, social, physical, behaviours of all potential customer as they become
aware of evaluation, purchase and consumption and tell other about products and
services”.
35
The study of consumer behaviour is the study of how individuals make

divisions to spend their resources like money, energy, time, etc. on consumption of
products.
36
1.5.Objectives of the study:
 T o s t u d y t h e e v a l u a t i o n o f c e l l
p h o n e s w i t h p a r t i c u l a r r e f e r e n c e t o
I n d i a .
 T o a s c e r t a i n t h e a t t r i b u t e r w h i c h
i n f l u e n c e d t h e c u s t o m e r ’ s i n
s e l e c t i n g a
particular cell phone services provider.
 T o s t u d y t h e c o n s u m e r ’ s s a t i s f a c t i o n
t o w a r d s d i f f e r e n t c e l l p h o n e s e r v i c e
providers in Coimbatore city.
 T o a s s e s s t h e p r o b l e m s f a c e d b y t h e
c e l l p h o n e u s e r s i n C o i m b a t o r e c i t y .
 T o o f f e r v a l u a b l e s u g g e s t i o n s t o
i m p r o v e t h e s e r v i c e s o f c e l l p h o n e s
i n
Coimbatore city.
1.6.Need of the study:
Exchange of information becomes the necessity of life to a common man. In

the modern world an individual tends to communicate anything to everything right
from the place where he/she stands. Even while riding vehicle he / she wants
communicate within a fraction of second at quick speed with clear voice, without any
disturbance. Like line crossing, out of order, etc. most of which lack in the connection
given by the department of tele-communication. Cell phones emerges as a boon
quench such a thirst, the by providing facilities, which a common man cannot
imagine. Though cell phone industry has its origin in the recent past and the growth
has been excellent.
Day by day many new competitors enter the market with new attractive
schemes, provide additional facilities, add new features to existing ones, reduce the
charges her incoming and outgoing calls, introduce varieties of handsets, models a
healthy competition that benefits the subscribers. Hence in this context, it is important
to study the functioning of cellular phone services and the utilization of their services
by the telephones.
37
1.7.Scope of study:
The present study is contained to Coimbatore and it is decided to consider

Airtel, Aircel and etc. cell phone service rendered to the customers. In Coimbatore
there are various cellular services available. Sack as Airtel, Aircel and etc. but the
cellular services has been selected to study the consumer’s satisfaction in it is the
most popular private cellular services.
The main objectives of this study is to analyze the customers satisfaction and
problems, faced by Airtel, Aircel, etc., cellular services in Coimbatore city has been
taken for the current research work.
1.8.Statement of problem:
In our country the growth of service marketing especially mobile phone
industry is still in its infancy stage, as compared to the industrially advanced
countries. It is for the fact that the economy of our country has been in the developing
stage. There are various mobile phones services provider’s in our country and they are
playing an essential role in fulfilling the needs of the customers.
Now-a-days, the customers are more dynamic. Their taste, needs and
preference can the changing as per current scenario. Hence the development of
cellular industry mainly depends on the customer satisfaction. However the following
questions may arise regarding customer satisfaction.
1. Does the cell industry satisfy the social responsibility?
2. What are all expectations by the customer’s regarding service provided
by the cell phone service provider?
3. Whether the service provided by cell phone industry is satisfying the
customers?
4. Are the facilities available adequate to satisfy the customers?
38
CHAPTER II
REVIEW OF LITERATURE
A brief literature would be of immense help to the researcher in gaining insight

into selected problem. The researcher would gain good background knowledge of the
problem by reviewing certain studies. A reference to these entire studies will be
related in the contest of the shaping the present study.
Samuval, in his study found that most of the respondents consider, size,
quality, price, instrument servicing are an important factors for selecting the handset
of majority of the respondents are satisfied over the payment system, quality of
services, coverage area, and attending the complaints.
1. Samuvel, “customer satisfaction for cellular services, a study with a referacne to
BPL and Aircel mobile phones and services”, an unpublished M.Phil., dissertation,
submitted to Bharathiar university, Coimbatore, December 2002.
Sree Nandhini, in her study shows that 88.3% of the respondents are cell phone
helps that to deal business matter confidently and effectively. This study shows that
attitude of the respondents using cell phones was not influenced by either education
or occupation and income.
2. Sree nandhini, “an investigation of user perception and altitude to cellular phone in
Coimbatore”, an unpublished submitted to Bharathiar university, December, 2001.
P. Adhavan (2003), in his study “existing customer relation” found that
the dealer’s service regarding Aircel cellular is highly satisfactory.
Hutchison’s managing director Asim and Ghosh 2005 says in the article,
“Telecommunication” telecommunication is such a huge sector and it is so easy to be
reduced by its different ponts, but thankfully we were”
4. Asin Glosh, “telecommunication” business world 27th January 2003.
39
CHAPTER III
RESEARCH METHODOLOGY
Search of knowledge. A careful investigation or enquiry. A systematic
effort to gain new knowledge. Those are called an “Research”
Research is a movement of knowledge from known to unknown from the
available place to the required place.
According to Clifford wode, “Defining and re-defining problems formulating

the hypothesis or jusested solutions. Collecting, organizing and evaluating data.
Making detections and reaching conclusions to determine whether fit the formulating
the hypothesis”
The Purpose of research to find out solutions to the problem, which has
not been discovered by anybody.
3.1. Research methods:
Those methods which are used by the researcher during the course of
studying are research problem are termed on research methods.
3.2. Research methodology:
The research methodology, not only the research methods are but also consider
the logic behind the methods. They are in the contest of our research studied. And
explain why we are using a particular method or techniques and we are not using
others.
40
Descriptive research design:
In includes surveys, and facts finding enquires of different kinds. The manor
purpose of descriptive research is description of state of affairs on it exists at present.
The main character of this method is that the researcher has no control threw over the
variables. He can report what has happen or what is happening.
Nature of data:
In this study primary data are used.
Collection of data:
The data were collected from the respondents through the distribution of
questionnaire.
Area of the study:
This study covers Coimbatore city only.
Sample size:
The sample size of this study is 104.
Tools for analysis:
Along with the usual statistical tools such as tables, percentages, bar charts,
chi-squire test we sued for analyzing the data and arriving at the conclusion.
41
Hypothesis of the study;
On the basis of review of previous studies and on the basis of observation
made during our collection of data, the following null hypothesis was formed.
There is no significant association between persona variables such as age,

gender, educational qualifications, monthly income, marital status, size of the family
and their awareness level of consumers and different cell phone services providers.
3.3. Limitations of the study:
Though the detailed investigation is made in the present study, uit has got the
following limitations.
1. This study is restricted only to the Coimbatore city. So, the results may
not be applicable to other areas.
2. This study is based on the prevailing customer’s satisfaction. But the customer’s
satisfaction may change according to time, fashion, technology, development, etc.
3. As per the population of the study is huge, the researcher has taken only
100 sample respondents from each service providers.
42
CHAPTER IV
INTRODUCTION OF INDUSTRY
4.1. EVALUATION OF CELLULAR PHONES
The basis concept of cellular phones began in 1947, when researchers looked at
crude mobile (car) phones and realized that by using small cells (range of service
area) with frequency reuse could increase the traffic capacity of mobile phones
substantially, however, the technology to do it was nonexistent.
Anything to do with broadcasting and sending a radio or television message out

over the airwaves comes under a Federal Communications Commission (FCC)
regulation that a cellular phone is actually a type of two- way radio. In 1947, AT & T
proposed that the FCC allocate a large number of radio spectrum frequencies so that
wide-spread mobile phone service could become feasible and AT & T would have a
incentive to research the new technology. We can partially blame the FCC for the gap
between the concept of Cellular phone service and it’s availability to the public.
Because of the FCC decision to limit the cellular phone frequencies in 1947, only
twenty three cellular phone conversation could occur simultaneously in the same
service area – not a market incentive for research.
The FCC reconsidered its position in 1968, and stated “if the technology to
build a better mobile phone service works, we will increase the cellular phone
frequencies allocation, freeing the airwaves for more mobile phones.”
AT & T – Bell Labs proposed a cellular phone system to the FCC of many
small, low-powered broadcast towers, each covering a ‘cell’ a few miles I radius,
collectively covering a larger are. Each tower would use only a few of the total
frequencies allocated to the cellular phone system, and as cars moved across the area
their cellular phones cells would be passed form tower to tower.
43
INDIVIDUAL Inventors and Mobile Phone Patents
Dr. martin cooper for Motorola.

US03906166
09 / 16 / 1975
Radio telephone system
Martin Cooper, Richard W. Dronsuth,; Albert J. Mikulski, Charles N.
Lynk Jr., James J. Mikulsk, John F. Mitchell, Roy A. Richardson, John
H.Sangster
Related class Patents
Related to cellular phone patents and cordless Phones, 64 patents listed.
By 1977, AT&T Bell Labs constructed and operated a prototype cellular phone
system. A year later, public trials of the new cellular phone system were started in
Chicago, IL with over 2000 trial cellular phone customers.
In 1979, the first commercial cellular phone system began operation in Tokyo.
In 1981, Motorola and American Radio phone started a second U.S. cellular radio-
phone system test in the Washington/Baltimore area. By 1982, the slow moving FCC
finally authorized commercial cellular phone service for the USA. A year later, the
first American commercial for analog cellular phone service or AMPS (Advanced
Mobile Phone Service) was offered in Chicago, IL by Ameritech.
44
Despite the incredible demand, it took cellular phone service 37 years to

become commercially available in the United States. Consumer demand quickly
outstripped the cellular phone system's 1982 standards, by 1987, cellular phone
subscribers exceeded one million, and the airways were crowded. Three ways of
improving services existed:
•
one - increase cellular phone frequencies allocation

•
two - split existing cellular phone cells

•
three - improve the cellular phone technology
The FCC did not want to handout any more bandwidth and building/splitting
cells would have been expensive and add bulk to the cellular phone network. To
stimulate the growth of new cellular phone technology, the FCC declared in 1987 that
cellular phone licensees may employ alternative cellular phone technologies in the
800 MHz band. The cellular phone industry began to research new transmission
technology as an alternative.
45
4.2. ANALYSIS OF MOBILE COMMUNICATION SPREAD AND ITS
IMPLICATIONS IN INDIA
History of Cellular Telephony in India
Initially Department of Telecommunications (DoT) was the only monopoly

operator in the country. Telecommunication sector was recognized by the
Government of India as one of the few basic infrastructure sectors for the country.
Under the Government policy of economic liberalization, privatization and
competition in India, private sectors have been allowed to enter the public
telecommunication field (where Government was a monopoly). In 1992
telecommunication sector in India was liberalized to bridge the gap through
government spending and to provide additional resources for the nation’s telecom
target. The objective of the reform was making the telecommunications within the
reach of all, thereby achieving universal service, covering all villages and bringing the
telecommunication services to the world standard, while protecting the defense and
security needs of the country.
In 1993 the telecom industry got an annual foreign investment of Rs 20.6

million. In 1994 license for providing cellular mobile services was granted by the
Government of India for the Metropolitan cites of Delhi, Mumbai, Kolkata and
Chennai. Initially Cellular mobile services were duopoly (i.e. not more than two
cellular mobile operators could be licensed in each telecom circle), under a fixed
license fee. In 1995, government opened up 19 more telecom circles and issued
mobile licenses.
To regulate and settle disputes Telecom Regulatory Authority of India was set
up in 1997 and in 1999 National Telecom Policy was announced by the Government
of India. In order to speed up the development of the telecom sector, all telecom
services were opened up for private sector participation.
46
Unrestricted entry is allowed in the basic services, national and international

long distance service, in global mobile personal communication by satellite (GMPCS)
service, VSAT and Public Mobile Radio Trunked Service (PMRTS). All telecom
sectors under DoT was handed over to new public Sector Undertaking viz, Bharat
Sanchar Nigam Limited (BSNL) which was registered under Company’s Act in 1st
October 2005.BSNL covers the entire country except Delhi and Mumbai Metros
which are under Mahanagar Telephone Nigam Limited (MTNL).
Major Service providers in India
Two different technologies are deployed by the mobile operators in India

namely GSM and CDMA.The GSM service providers are Bharthi, BSNL, Hutch,
IDEA, Aircel, Reliance, Spice, MTNL and BPL, whereas the CDMA service
providers are TATA, HFCl, Shyam, and Reliance. Figure 1 shows the market share of
each service provider in India. India’s mobile market is dominated by foreign
companies for high end telecom equipments, handsets, transmission equipments etc.,
Nokia, Samsung, and Motorola are the three important vendors for handsets. Other
vendors who have their share in this market are L.G, Alcatel, Sony Ericsson, Siemens,
National Panasonic, Philips, Mitsubishi, and Sagem.
MOBILE SUBSCRIBER STATISTICS
Recently, mobile phone connections in India have crossed the 100- million
mark, which means over nine in 100 Indians have a phone. Adding on to this
benevolent and happy information, telecom companies are anticipating the number
will nearly treble in the next two years. According to a survey, by 2006, the cellular
networks are expected to cover 3,50,000 (out of 6,07,000) villages, covering 450
million people.
47
Market Share of both mobile and wire line Service Providers in India
GSM Subscribers
The cumulative All India GSM subscriber base rose to 72.12 million in April
2006 from 69.19 million in March 2006 which is a growth of 4.23% for a month
under review. Table I shows the subscribers growth rate for one month along with
market share of each provider with coverage
CDMA Mobile Subscribers
The total cumulative all India CDMA subscriber base rose by 0.97 million
from 23.25 million in March 2006 to 24.22 million in April 2006, representing a
growth of 4.2% in the month under review. A summary picture of the company wise
performance is given in Table II.
48
4.3. TELECOM IN RURAL INDIA
India has an urban population of about 26.8% and rural population is about
73.2%. And there are over 600,000 villages in India. But a vast section of the rural
sector is still cut off from the benefits of telecom services.
GSM SUBSCRIBERS GROWTH RATE
Company
No of Subscribers
(in millions)
Percentage
of Market
Share
Service Areas
March 2006
April 2006
Bharthi
19.57
20.68
28.7%
23
BSNL
17.16
17.59
24.4%
21
Hutch
15.36
16.06
22.3%
16
IDEA
7.37
7.64
10.6%
11
Aircel
20.61
2.83
3.9%
7
Reliance
1.90
2.01
2.8%
8
Spice
1.93
1.98
2.7%
2.
MTNL
1.94
2.02
2.8%
2
BPL
1.34
1.31
1.8%
1
Total
69.19
72.12
100%
The rural population of around 700 million is waiting for its share of economic
growth. Initially the big telephone companies focused only on urban centers, which
they felt were more profitable. However, this mindset is gradually changing with the
realization that there is equal, if not bigger money in rural areas.
49
CDMA SUBSCRIBERS GROWTH RATE
Company
No of Subscribers
(in millions)
Percentage of
Market Share
Service Areas
March 2006 April 2006
Reliance
18.307
18.809
77.65%
20
TATA
4.851
5.323
21.98%
20
HFCl
0.062
0.062
0.26%
1
Shyam
0.027
0.028
0.11%
1
Total
69.19
72.12
100%
It is estimated that a one per cent increase in rural connectivity can generate 0.5
per cent economic growth. Thus a well-planned 10 per cent increase in rural
connectivity can propel India into double-digit growth and unprecedented prosperity.
4.4. ECONOMIC BENEFITS OF MOBILE SERVICES IN INDIA
According to a study conducted by the reputed international agency, Ovum on

“The economic benefits of mobile services in India” the Indian mobile industry is a
major contributor to the social and economic growth of the country, in terms of
employment generation, revenues to the Government, GDP growth and rural
development.
Employment
Because of the mobile industry about 3.6 million jobs could be generated
directly or indirectly. Ovum has also estimated that employment dependent on the
industry is expected to rise by at least 30% over the next 12 months.
50
Government Revenues
The Government can generate Rs.145 billion per annum through
License Fees, Spectrum Fees, Import Duties, Taxes, etc. from Mobile industry.
GDP
The mobile services industry can generate an annual GDP contribution
of Rs. 313 billion.
Rural Development
Research shows that having access to telecommunications would

substantially improve the social and economic conditions of people living in rural
areas by improving access to family, education, health and financial services and by
enabling the development of non-agricultural economic activity. Government has
set a target of 20% for rural mobile coverage by the end of 2004 and 75% by the end
of 2006. Taking the OVUM findings as the base, COAI has tried to estimate the
benefits from mobile communications for the future years. The benefits listed by
OVUM are for a subs base of 48 million in January 2005. Pro-rating the data on a
simplistic estimate at a mobile subscriber base of 200 million in 2007, the industry
would contribute 10 million jobs and Rs.500 billion annual revenue to the
Government.
4.5. FUTURE OF MOBILE COMMUNICATION IN INDIA
India initially started with GSM technology for mobile communication. Being
a technology neutral country, India later allowed for CDMA technology also. Now
2.75G EDGE technologies has been implemented and used. BSNL has got license for
bringing 3G into operation. Trials are being conducted for 3G implementation in the
four metropolitan cities of India. Commercial 3G will be started by March 2007.
51
With the dwindling revenues of the operators from the data and voice there is a
need to look at newer applications to fuel growth of the telcos.TV on Mobile has
emerged as a solid and potent answer to this consumer yearning. South Korea, China,
South Africa, Australia and Europe have seen this need and have acted upon the same
by implementing TV on Mobile.
India is around the corner for implementation of similar technology for the
benefit of consumers, operators, content providers and Government. It promises to be
a USD 1 billion industry by 2010, if roadmaps are created and implemented properly.
4.6. DETAILS ABOUT SERVICE PROVIDERS:
4.6.1. Aircel:
Aircel is now a period part of Maxis, an international conglomerate and the
leading cellular service provider in Malaysiya with over 7 million subscribers and a
firm commitment to providing seamless connectivity ans superior technology to every
customer. A recipient of multiplicity accolades, maxis has been deemed as the brand
of the year 2006 in Malaysia. Aircel is rapidly spreading across the state of
Tamilnadu with connectivity in 1000 towns and 11,000 villages, serving, serving over
50 lakh happy subscribers. Known for its superior tariff offering and cutting-edge
technology, aircel has recently been honoured as the No.1 operator across a metor
circles for customer satisfaction by Voice and Data magazine’s survey in 2006.
Currently, aircel has a marked presence in the North and North East circles of the
country including Rest of West Bengal, Orissa, Sikkim, Manipur, Jammu and
Kashmir, Himachal Pradesh and Bihar.
52
4.6.2. Bharti Airtel:
Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The
Bharti Group has a diverse business portfolio and has created global brands in the
telecommunication sector. Bharti has recently forayed into retail business as Bharti
Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It has
successfully launched an international venture with EL Rothschild Group to export
fresh agri products exclusively to markets in Europe and USA and has launched
Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world
leader in financial protection and wealth management.
Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and
the first private telecom services provider with a footprint in all the 23 telecom
circles. Bharti Airtel since its inception has been at the forefront of technology and
has steered the course of the telecom sector in the country with its world class
products and services. The businesses at Bharti Airtel have been structured into three
individual strategic business units (SBU’s) - Mobile Services, Airtel Telemedia
Services & Enterprise Services. The mobile business provides mobile & fixed
wireless services using GSM technology across 23 telecom circles while the Airtel
Telemedia Services business offers broadband & telephone services in 94 cities. The
Enterprise services provide end-to-end telecom solutions to corporate customers and
national & international long distance services to carriers. All these services are
provided under the Airtel brand.
4.6.3. BSNL
Bharat Sanchar Nigam Ltd. formed in October, 2000, is World’s 7th largest
Telecommunications Company providing comprehensive range of telecom services in
India: Wireline, CDMA mobile, GSM Mobile, Internet,
53
Broadband, Carrier service, MPLS-VPN, VSAT, VolP services, IN Services etc.

Within a span of five years it has become one of the largest public sector unit in India.
BSNL has installed Quality Telecom Network in the country and now focusing on
improving it, expanding the network, introducing new telecom services with ICT
applications in villages and wining customer’s confidence. Today, it has about 47.3
million line basic telephone capacity, 4 million WLL capacity, 20.1 million GSM
capacity, more than 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations,
480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting 602
Districts, 7330 cities/towns and 5:5 Lakhs villages.
BSNL is the only service provider, making focused efforts and planned
initiatives to bridge the Rural-Urban Digital Divide ICT sector. Infact there is no
telecom operator in the country to beat its reach with its wide network giving services
in every nook and corner of country and operates across India except Delhi and
Mumbai. Whether it is inaccessible areas of Siachen glacier and North-eastern region
of the country. BSNL serves its customers with its wie bouquet of telecom services.
BSNL is number one operator of India in all services in its license area. The company
offers vide ranging and most transparent tariff schemes designed to suite every
customer.
BSNL cellular service, Cellone, has more than 17.8 million cellular customers,
garnering 24 percent of all mobile users as its subscribers. That means that almost
every fourth mobile user in the country has a BSNL connection. In basic services,
BSNL is miles ahead of its rivals, with 35.1 million basic phone subscribers, that is,
85 percent share of the subscriber base and 92 percent share in revenue terms. BSNL
has more than 2.5 million WLL subscribers and 2.4 million internet customers who
access internet through various modes namely, Dial-Up, Leased Line, DIAS, Account
Less Internet (CLI). BSNL has been adjudged as the number one ISP in the country.
54
BSNL has set up a world class multi-gigabit, multi-protocol convergent IP

infrastructure that provides convergent services like voice, data and video through the
same Backbone and Broadband Access Network. At present there are 0.6 million
Data One broadband customers. The company has vast experience in Planning,
Installation, network integrating and maintenance of Switching and Transmission
Networks and also has a world class ISO 9000 certified telecom training institute.
Scaling new heights of success, the present turnover of BSNL is more than
Rs.351,820 million (US $8 billion) with net profit to the tune of Rs.99,390 million
(US $2.26 billion) for last financial year. The infrastructure asset on telephone alone
is worth about Rs.630,000 million (US $14.37 billion). BSNL plans to expand its
customer base from present 47 million lines to 125 million lines by December 2007
and infrastructure investment plan to the tune of Rs.733 crores (US $16.67 million).
4.6.4. RELIANCE
The late Dhirubhai Ambani dreamt of a digital India – an India where the
common man would have access to affordable means of information and
communication. Dhirubhai, who single-handedly built India’s largest private sector
company virtually from scratch, had stated as early as 1999:”Make the tools of
information and communication available to people at an affordable cost. They will
overcome the handicaps of illiteracy and lack of mobility”.
It was with this belief in mind that Reliance Communications (formerly

Reliance Infocomm) started laying 60,000 route kilometers of a pan-India fiber optic
backbone. This backbone was commissioned on 28 December 2002, the auspicious
occasion of Dhirubhai’s 70th birthday, though sadly after his unexpected demise on 6th
July 2002.
55
Reliance Communications has a reliable, high-capacity, integrated (both

wireless and wireline) and convergent (voice, data and video) digital network. It is
capable of delivering a range of services spanning the entire infocomm (information
communication) value chain, including infrastructure and services – for enterprises as
well as individuals, applications, and consulting.
Today, Reliance Communications is revolutionizing the way India
communicates and networks, truly bringing about a new way of life.
4.6.5. TATA TELESEVICES
Tata Teleservices is part of the INR Rs.120000 Crore (US$ 29 billion) Tata
Group, that has over 87 companies, over 330,000 employees and more than 2.8
million shareholders. With a committed investment of INR 36,000 Crore (US$ 7.5
billion) in Telecom (FY 2006), the group has a formidable presence across the
telecom value chain.
Starting with the major acquisition of Hughes Tele.com (India) Limited [now
renamed Tata Teleservices (Maharastra) Limited] in December 2002 the company
swung into an expansion mode. With the total investment of Rs.19,924 crore, Tata
Teleservices has created a pan India presence spread across 20 circles that includes
Andhra Pradesh, Chennai, Gujarat, Karnataka, Delhi, Maharastra, Mumbai, Tamil
Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh
(E), Uttar Pradesh (W), Kerala, Kolkata, Madhya Pradesh and West Bengal.
Tata Teleservices has a strong workforce of 6000. In addition, TTSL has

created more than 20,000 jobs, which will include 10,000 indirect jobs through
outsourcing of its manpower needs.
56
Today, Tata Teleservices Limited along with Tata Teleservices (Maharastra)

Limited serves over 21 million customers in over 4000 towns. With an ambitious
rollout plan both within existing circles and across new circles, Tata Teleservices
offers world-class technology and user-friendly services in 20 circles.
4.6.6. TTML ORGANIZATION
Tata Teleservices Maharastra Limited (TTML) spearheads the Tata Group’s

presence in the Indian telecom sector by being the premier telecommunication service
provider, licensed, to provide services in Maharastra (including Mumbai) and Goa.
Formerly Hughes Tele.com (India) ltd., the company was renamed to Tata
Teleservices Maharashtra Ltd subsequent to the acquisition of 70.83% equity
shareholding by TATA Group in December 2002. The company’s shares are traded
on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Tata communications Ltd. unites the industry and market expertise VSNL,
VSNL international, Teleglobe, Tata Indicom Enterprise Business Unit, VGSL and
CIPRIS to become the leading integrated provider of telecommunications solutions.
The global reach and industry expertise of Tata communications drives and delivers a
new world of communications. The company leverages its Tata Global Network,
vertical intelligence and leadership immerging markets to deliver value-driven,
globally managed solutions.
4.6.7. Vodafone:
Vodafone, the world’s leading international mobile communications company,

has fully arrived in India brand will be lunched in India from 21st September onwards.
The popular and endearing brand, Hutch, will be transitioned to Vodafone across
India. This marks a significant chapter in the
57
evolutic brand change over the next few weeks will be unveiled nationally
through a high profile campaign covering all important media.
Vodafone, the world’s leading mobile telecommunication company, completed

the acquisition of Hutchison Essar in May 2007. Asim Ghosh, managing director,
Vodafone Essar, said “We have had a great innings as Hutch in India and today marks
a new begin that created Hutch, but an acceleration into the future with Vodafone’s
global expertise..” the Vodafone mission is to be the communications leader in an
increasingly connected world – enriching customers lives, helping increased by
delivering their total communication needs.
About Vodafone Essar Limited:
Vodafone Essar in India is a subsidiary of Vodafone Group plc and
commenced operations in 1994 when its predecessor Hutchison tele Vodafone essar
now has operations in 16 circles covering 86% of India’s mobile customer base, with
over 34.1 million customers. Over the year, Vodafone Essar, under the hutch brand,
has been named the Most Respected Telecom Company, the Best Mobile sender
effective advertiser of the year. Vodafone is the world’s leading international mobile
communications company.
It now has operation network with over 200 million customers worldwide.
Vodafone has partnered with the Essar Group as its principal joint venture partner.
The Essar Group is a diversified business corporation with interests spanning the
manufacturing and service sectors like steel, energy, construction. The group has an
asset base of over Rs.400 billion and employer over 20,000 people.
58
4.7. CONCLUSION
India has one of the world’s largest telecommunication network. The

telecom story continues to be the best evidence of the efficacy of the reforms process.
In just six years, the number of mobile subscribers has gone from just about one
million to 100 million, a subscriber base that only four other countries China, the US,
Japan and Russia can boast of. None can doubt the correlation between this explosive
growth in numbers and the steep decline in the cost of the mobile phone and of its
usage. Effective tariffs have dropped from over Rs.14 a minute to Re 1, bringing the
phone within reach of people even below the middle-class. The Government may
have, therefore, landed itself a winner in the mobile phone, but the task of taking
telecom to the other 90 per cent of the population will call for even greater innovation
in policymaking, technology and marketing.
Still three-fourths of the land mass is not illuminated by a cellular signal and
the price of the instrument is beyond the reach of a substantial section of the
population let alone the charges for its use. These issues, of course, can be resolved
by decisive policy action, such as a creative use of the Universal Services Obligation
fund that now has over Rs.70 billion, releasing adequate spectrum to operators in the
metros, and a proactive investment policy that invites many more equipment
manufacturers to set up base in this country. The road for India achieving the top most
position in telecommunication is no longer a dream as India is nearing China in all
aspects in few years India will over power all countries and achieve its target of top
most position in telecom industry.
59
CHAPTER V
ANALYSIS AND INTERPRETATION
5.1. INTRODUCTION:
This chapter is allocated for analysis and interpretation of data. The
analysis of consumer satisfaction done by percentage analysis and chi-square test
TABLE NO.-1
CONSUMER PREFERENCE TOWARDS CELL PHONE
SERVICE PROVIDERS
S.NO
NAME OF THE
CELL PHONE
SERVICE
PROVIDER
NUMBER OF
RESPONDENTS
PERCENTAGE
OF
RESPONDENTS
1 AIRCEL
23
22.12
2 AIRTEL
53
50.96
3 BSNL
4
3.85
4 RELIANCE
8
7.69
5 TATA INDICOM
3
2.88
6 VODAFONE
12
11.54
7 OTHERS
0
0
TOTAL
104
100
INFERENCE:
Most of the respondents are using Airtel (50.96%) and 22.12% of
respondents are using Aircel. Others are used different cell phone service providers.
60
61
TABLE NO: 2
Consumer’s preference towards cell phone service providers on the basis of age group
S.N
O
NAME OF
THE CELL
PHONE
SERVICE
PROVIDER
UPTO 20 YEARS
21 - 30 YEARS
31 - 40 YEARS
41 AMD ABOVE
TOTAL
NO. OF
RESPONDENT
PERCENTAG
E OF
RESPONDENT
NO. OF
RESPONDENT
PERCENTAG
E OF
RESPONDENT
NO. OF
RESPONDENT
PERCENTAG
E OF
RESPONDENT
NO. OF
RESPONDENT
PERCENTAG
E OF
RESPONDENT
NO. OF
RESPONDENT
PERCENTAGE
OF
RESPONDENT
S
1
AIRCEL
5
20.00
12
18.75
4
80
2
20
23
22.11
2
AIRTEL
15
60.00
33
51.56
1
20
4
40
53
50.96
3
BSNL
1
4.00
2
3.13
0
0
1
10
4
3.84
4
RELIANCE
0
0.00
5
7.81
0
0
3
30
8
7.69
5
TATA
INDICOM
0
0.00
3
4.69
0
0
0
0
3
2.88
6
VODAFONE
4
16.00
9
12.50
0
0
0
0
13
12.50
7
OTHERS
0
0
0
0
0
0
0
0
0
0
TOTAL
25
100
64
100
5
100
10
100
104
100
INFERENCE:
 Among respondents upto 20 years of age group, majority of them (i.e. 60%) are
using airtel folllowed by aircel
users(20%).
 Consumers in the age group of 21 – 30 years 51% of respondents are mostly
prefer airtel (ie 51%) and 18% of
the respondents are using Aircel.
 80% of customers are using Aircel, who are in the age group of 31 – 40 years.
 41 and above – 40% of the respondents are using Airtel and 30% of respondents
are using Reliance.
62
63
TABLE NO: 3
COMPOSITION OF RESPONDENTS ON THE BASIS OF
MARITAL STATUS
S.NO
MARITAL
STATUS
NUMBER OF
RESPONDENTS
PERCENTAGE
OF
RESPONDENTS
1
MARRIED
30
28.85
2
UNMARRIED
74
71.15
TOTAL
104
100
INFERENCE:
The married respondents are using cell phones in 28.85%,
but the unmarried respondents are using cell phones in 71%.
64
65
TABLE NO: 4
COMPOSITION OF RESPONDENTS ON THE BASIS OF
EDUCATION QUALIFICATION
S.NO
EDUCATIONAL
QUALIFICATION
NUMBER OF
RESPONDENTS
PERCENTAGE
OF
RESPONDENTS
1
UP TO HSC
32
30.77
2
GRADUATION
65
62.50
3
PROFESSIONAL
7
6.73
4
OTHERS
0
0.00
TOTAL
104
100
INFERENCE:
The majority of the respondents 62.50% (graduates) are using cell
phones and 30.77% (upto HSC) respondents are using cell phones.
66
A STUDY OF CONSUMER’S
PREFERENCE AND SATISFACTION
TOWARDS VARIOUS CELL PHONE
SERVICE PROVIDES
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OWARDS VARIOUS CELL PHONE SERVICE PROVIDES

According to a statement made by Mahatma Gandhi, ‘consumer refers to the

Every human being is a consumer of different produces. If there is no

According to Philip Kotler consumer satisfaction is defined on, “personal

Consumer attitude measurements are taken on either potential buries or

Marketing includes all the impacts involved in the exchange process of

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e. To satisfy the customer’s new product to be produced.

Marketing is trying to learn,

The study of consumer behaviour is the study of how individuals make

Exchange of information becomes the necessity of life to a common man. In

The present study is contained to Coimbatore and it is decided to consider

A brief literature would be of immense help to the researcher in gaining insight

According to Clifford wode, “Defining and re-defining problems formulating

There is no significant association between persona variables such as age,

Anything to do with broadcasting and sending a radio or television message out

Dr. martin cooper for Motorola.

Despite the incredible demand, it took cellular phone service 37 years to

one - increase cellular phone frequencies allocation

two - split existing cellular phone cells

three - improve the cellular phone technology

Initially Department of Telecommunications (DoT) was the only monopoly

In 1993 the telecom industry got an annual foreign investment of Rs 20.6

Unrestricted entry is allowed in the basic services, national and international

Two different technologies are deployed by the mobile operators in India

According to a study conducted by the reputed international agency, Ovum on

Research shows that having access to telecommunications would

Broadband, Carrier service, MPLS-VPN, VSAT, VolP services, IN Services etc.

BSNL has set up a world class multi-gigabit, multi-protocol convergent IP

It was with this belief in mind that Reliance Communications (formerly

Reliance Communications has a reliable, high-capacity, integrated (both

Tata Teleservices has a strong workforce of 6000. In addition, TTSL has

Today, Tata Teleservices Limited along with Tata Teleservices (Maharastra)

Tata Teleservices Maharastra Limited (TTML) spearheads the Tata Group’s

Vodafone, the world’s leading international mobile communications company,

Vodafone, the world’s leading mobile telecommunication company, completed

India has one of the world’s largest telecommunication network. The

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