CONSUMER BEHAVIOR 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. 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.
INDUSTRY PROFILE
Telecommunication is transmission over a distance for the purpose of communication. In earlier times, this may have involved the use of smoke signals, drums, semaphore, flags or heliograph. In modern times,
telecommunication typically involves the use of electronic devices such as the telephone, television, radio or computer. Early inventors in the field of telecommunication include Alexander Graham Bell, Guglielmo Marconi and John Logie Baird. Telecommunication is an important part of the world economy and the telecommunication industry's revenue was estimated to be $1.2 trillion in 2006. In the middle Ages, chains of beacons were commonly used on hilltops as a means of relaying a signal. Beacon chains suffered the drawback that they 1
could only pass a single bit of information, so the meaning of the message such as "the enemy has been sighted" had to be agreed upon in advance. One notable instance of their use was during the Spanish Armada, when a beacon chain relayed a signal from Plymouth to London signaling the arrival of Spanish ships. In 1792, Claude Chappe, a French engineer, built the first fixed visual telegraphy system (or semaphore line) between Lille and Paris. However semaphore suffered from the need for skilled operators and expensive towers at intervals of ten to thirty kilometers (six to nineteen miles). As a result of competition from the electrical telegraph, the last commercial line was abandoned in 1880
INDIAN TELECOMMUNICATION INDUSTRY
The Indian telecommunication industry, with about 525 million mobile phone connections as of Dec. 2009, is the third largest telecommunication network in the world and the second largest in terms of number of wireless [Link] Indian telecom industry is one of the fastest growing in the world and is projected that India will have 'billion plus' mobile users by 2015. Projection by several leading global consultancies is that Indias telecom network will overtake Chinas in the next 10 years. For the past decade or so, telecommunication activities have gained momentum in India. Efforts have been made from both governmental and non-governmental platforms to enhance the infrastructure. The idea is to help modern telecommunication technologies to 2
serve all segments of Indias culturally diverse society, and to transform it into a country of technologically aware people HISTORY Telecom in the real sense means transfer of information between two distant points in space. The popular meaning of telecom always involves electrical signals and nowadays people exclude postal or any other raw telecommunication methods from its meaning. Therefore, the history of Indian telecom can be started with the introduction of telegraph INTRODUCTION OF TELEGRAPH The postal and telecom sectors had a slow and uneasy start in India. In 1850, the first experimental electric telegraph Line was started between Kolkata and Diamond Harbor. In 1851, it was opened for the British East India Company. The Posts and Telegraphs department occupied a small corner of the Public Works Department at that time. Construction of 4,000 miles (6,400 km) of telegraph lines connecting Kolkata (Calcutta) and Peshawar in the north along with Agra, Mumbai (Bombay) through Sindwa Ghats, and Chennai in the south, as well as Ootacamund and Bangalore was started in November 1853. Dr. William O'Shaughnessy, who pioneered telegraph and telephone in India, belonged to the Public Works Department. He tried his level best for the development of telecom through out this period. A separate department was opened in 1854 when telegraph facilities were opened to the public.
INTRODUCTION OF THE TELEPHONE In 1880, two telephone companies namely The Oriental Telephone Company Ltd. and The Anglo-Indian Telephone Company Ltd. approached the Government of India to establish telephone exchanges in India. The permission was refused on the grounds that the establishment of telephones was a Government monopoly and that the Government itself would undertake the work. By 1881, the Government changed its earlier decision and a license was granted to the Oriental Telephone Company Limited of England for opening telephone exchanges at Kolkata, Mumbai, Chennai (Madras) and Ahmedabad. 28 January 1882, is a Red Letter Day in the history of telephone in India. On this day Major E. Baring, Member of the Governor General of India's Council declared open the Telephone Exchange in Kolkata, Chennai and Mumbai. The exchange at Kolkata named "Central Exchange" was opened at third floor of the building at 7, Council House Street. The Central Telephone Exchange had 93 number of subscribers. Bombay also witnessed the opening of Telephone Exchange in 1882.
FURTHER DEVELOPMENTS
1902 - First wireless telegraph station established between Saugor Islands and Sandheads.
1907 First Central Battery of telephones introduced in Kanpur. 1913-1914 - First Automatic Exchange installed in Shimla. 1927 - Radio-telegraph system between the UK and India, with beam stations at Khadki and Daund, inaugurated by Lord Irwin by exchanging 4
greetings with the King of England.
1933 - Radiotelephone system inaugurated between the UK and India. 1953 - 12 channel carrier system introduced. 1960 - First subscriber trunk dialing route commissioned between Kanpur and Lucknow
1975 - First PCM system commissioned between Mumbai City and Andheri telephone exchanges.
1976 - First digital microwave junction introduced. 1979 - First optical fibre system for local junction commissioned at Pune. 1980 - First satellite earth station for domestic communications established at Secunderabad, A.P..
1983 - First analog Stored Program Control exchange for trunk ines commissioned at Mumbai.
1984 - C-DOT established for indigenous development and production of digital exchanges.
1985 - First mobile telephone service started on non-commercial basis in Delhi. While all the major cities and towns in the country were linked with
telephones during the British period, the total number of telephones in 1948 was only around 80,000. Even after independence, growth was extremely slow. The telephone was a status symbol rather than being an instrument of utility. The number of telephones grew leisurely to 980,000 in 1971, 2.15 million in 1981 and 5.07 million in 1991, the year economic reforms were initiated in the country.
While certain innovative steps were taken from time to time, as for example introduction of the telex service in Mumbai in 1953 and commissioning of the first [subscriber trunk dialing] route between Delhi and Kanpur in 1960, the first waves of change were set going by Sam Pitroda in the eighties. He brought in a whiff of fresh air. The real transformation in scenario came with the announcement of the National Telecom Policy in 1994.
INDUSTRY STRUCTURE The present operational regulatory structure of telecommunications services industry in India is set forth below:
Ministry of Communications
Telecom Commission (Policy Role)
DOT (Policy maker & Licensor)
TRAI &TDS TDS (Regulation & Adjudication)
MTNL
Private Mobile Licensees
Private Fixed line Licensees
BSNL
VSNL
Other Private Licensees
The whole cellular service players in India
BSNL, MTNL, AirTel, Idea Cellular, Tata Comm., Reliance Mobile, Vodafone/ Hutch, BPL Mobile, Aircel, Spice, HSFL, Shyam Telelink, Virgin mobile, Hutchison Essar, Hutchison Max, Fascel, Dishnet Wireless, Escotel Mobile,
Hexacom, Sterling Cellular, RPG Cellular, Bharti Mobinet, Usha Martin, Birla Tata AT&T, JTM/Evergrowth, Koshika, RPG Cellular etc.
COMPANY PROFILE major cellular services providers
1. 2. 3. 4. 5. 6. 7. 8. BSNL Bharti Airtel Reliance Info Comm Aircel TTSL Vodafone Spice Telecom Uninor
BSNL
On October 1, 2000 the Department of Telecom Operations, Government of India became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL). BSNL is now Indias leading
telecommunications company and the largest public sector undertaking. This ambitious service uses state-of-the-art GSM technology to attain global excellence and leadership in business. Our entry into this sector has brought GSM cellular service at an affordable cost to the common man. All serving a single objective, to provide better communication to millions across India.
Customers have reposed tremendous faith in BSNL and it has enrolled over 30 Lakh Cellular customers within ten months of launch of Cellular service, an unprecedented mark in Indian Cellular Market.
For the first time in the country, all major towns and cities are covered through our network
All major national and state highways are covered National and International SMS facility International roaming available for more than 300 networks across the world.
The facility of one number roaming across the country Appropriate and reasonable tariff packages to suit every pocket All regular features of cellular telephony, such as SMS as well as advanced features like MMS are available.
24 Hour helpline all across the country. The only Mobile service available through out the country including Jammu and Kashmir and North Eastern states like Arunachal Pradesh, Nagaland, Mizoram etc.
Value Added Servicers These services helps BSNL serve you better & enhance the ease & quality of communication thus bringing global connectivity at your doorstep. Short Message Service (SMS)
Group Messaging National & International roaming Call forwarding Corporate Virtual Private Network Call conferencing Friend and Family Talk Call waiting and Call holding facility Unified Messaging Services: This provides Voice mail, FAX, e-mail, text to voice services on your mobile phone.
BHARTI AIRTEL
Established in 1985, Bharti Airtel formerly known as Bharti Tele-Ventures LTD (BTVL) is the largest cellular service provider in India, with more than 124 million subscribers as of February 2010. With this, Bharti is now the world's thirdlargest, single-country mobile operator and sixth-largest integrated telecom operator. It also offers fixed line services and broadband services. It offers its TELECOM services under the Airtel brand and is headed by Sunil Bharti Mittal. The company also provides telephone services and broadband Internet access (DSL) in top 95 cities in India. It also acts as a carrier for national and international long distance communication services. The company has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore.
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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 95 cities . Bharti Tele-Ventures' strategic objective is to capitalize on the growth opportunities the company believes are available in the Indian
telecommunications market and consolidate its position to be the leading integrated telecommunications services provider in key markets in India, with a focus on providing mobile services. Features: Total Cost Control Pre activated STD/ISD without deposits or rentals Strong Network coverage Instant Balance and Validity Enquiry Recharge your Airtel Prepaid Prepaid Roaming More with Airtel Prepaid Reach us Anytime Anywhere
RELIANCE INFO COMM
Reliance Communications is one of India's largest telecommunications service providers and ranks among Asias top ten telecom [Link] is a $16 billion integrated oil exploration to refinery to power and textiles conglomerate . It is also an integrated telecom service provider with licenses for
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mobile, fixed, domestic long distance and international services. Reliance Infocomm offers a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications. Reliance India Mobile, the first of Infocomm's initiatives was launched on December 28, 2002. This marked the beginning of Reliance's vision of ushering in a digital revolution in India by becoming a major catalyst in improving quality of life and changing the face of India. Reliance Infocomm plans to extend its efforts beyond the traditional value chain to develop and deploy telecom solutions for India's farmers, businesses, hospitals, government and public sector
organizations. Until recently, Reliance was permitted to provide only limited mobility services through its basic services license. However, it has now acquired a unified access license for 18 circles that permits it to provide the full range of mobile services. It has rolled out its CDMA mobile network and enrolled more than 6 million subscribers in one year to become the countrys largest mobile operator. It now wants to increase its market share and has recently launched pre-paid services. Having captured the voice market, it intends to attack the broadband market. Features Chat Email Voice Instant Messaging Organizer Security and Control 12
SMS Tethered Modem
Tata Teleservices Limited (TTSL)
Tata Teleservices is part of the Tata Group. Tata Teleservices spearheads the Groups presence in the telecom sector. Incorporated in 1996, Tata Teleservices was the first to launch CDMA mobile services in India with the Andhra Pradesh circle. The company acquired Hughes Telecom (India) Limited [now renamed Tata Teleservices (Maharashtra) Limited] in December 2002. With a total Investment of Rs 19,924 Crore, Tata Teleservices has created a Pan India presence spread across 20 circles. The company is the market leader in the fixed wireless telephony market with a total customer base of over 3.8 million. Tata Teleservices (Maharashtra) Limited have a subscriber base of 36 million customers (as of April 2009) in more than 5,000 towns. Tata Teleservices has also acquired GSM licenses for specific circles in India. Tataindicom is a part of the Tata Group of companies based in Navi Mumbai, an Indian conglomerate. It operates under the brand name Tata Indicom in various telecom circles of India. In Nov 2008, Japanese telecom giant NTT Docomo picked up a 26 per cent equity stake in Tata Teleservices for about Rs 13,070 crore ($2.7 billion) or an enterprise value of Rs 50,269 crore ($10.38 billion). In Feb 2008, TTSL announced that it would provide CDMA mobile
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services targeted towards the youth, in association with the Virgin Group on a Franchisee model basis. Tata Teleservices Provides mobile services under 3 Brand names:
Tata Indicom (CDMA Mobile operator) Tata DoCoMo (GSM Mobile operator) Virgin Mobile (CDMA Mobile operator) Virgin Mobile (GSM Mobile operator)
Value Added Services voice portal, roaming, post-paid Internet services, 3-way conferencing, group calling, Wi-Fi Internet, USB Modem, data cards, calling card services and enterprise services. Some of the other products launched by the company include prepaid wireless desktop phones, public phone booths, new mobile handsets and new voice & data services such as BREW games, Voice Portal, picture messaging, polyphonic ring tones, interactive applications like news, cricket, astrology, etc. 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
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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 magazines 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 VODAFONE Vodafone Essar, formally known as Hutchison Essar is a cellular operator in India that covers 23 telecom circles in India based in Mumbai. Vodafone Essar is owned by Vodafone 67% and Essar Group 33%. It is the second largest mobile phone operator in terms of revenue behind Bharti Airtel, and third largest in terms of customers.[3] On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications, Hinduja Group, and Essar Group, which is the owner of the remaining 33%. The whole company was valued at USD 18.8 billion.[4] The transaction closed on May 8, 2007. Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India with good presence in the metros.
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Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 23 of the country's 23 licence areas. It is among the top three GSM mobile operators of India.
Value Added Services
Vodafone offers voice, messaging, data and fixed broadband services through multiple solutions and supporting technologies to deliver on its total communications strategy. The advancements in 3G networks and download speeds, handset capabilities and the mobilisation of internet services have contributed to an acceleration of data services usage growth. SPICE TELECOM Spice Telecom is the brand name of Spice Communications Limited, a mobile phone service provider in India. Spice Telecom is currently operating in the states of Punjab (India) and Karnataka i.e., in 2 circles of 23 Telecom Circles of India. Spice Communications Limited is now a subsidiary of Mumbai based Idea Ceullar Ltd. (an Aditya Birla group company). Idea Cellular owns more than 80% equity in Spice Communiations. Idea Cellular acquired the company from Modi Wellvest and Telekom Malaysia (TMI, now Axiata) in July [Link] over ten years ago, Spices cellular services have a customer base of over 4 million as on December 2008 in Punjab and Karnataka. 16
Recently Aditya Birla Group owned Idea Cellular took over the ownership of Spice Telecom for over Rs.270 million. They plan to improve the coverage, customer friendliness and good service Spice Telecom now has a customer base of 4.46 Million subscribers in both circles. UNINOR Uninor is a mobile telephony and network operator in India. The company holds a pan-India UAS licence. to offer telecommunications services in each of Indias 22 circles. It has also received spectrum to roll out these services in 21 of the 22 telecom circles. From November 2009 Uninor the GSM mobile service of Unitech Wireless, a joint venture between Indias real estate major Unitech and the worlds 6th largest mobile services provider Telenor Group, is all set to roll out its Mobile Service in 8 telecom circle in few days. The eight circles are Andhra Pradesh, Bihar, Karnataka, Kerala, Orissa, Tamilnadu (including Chennai) UP East and UP West. The Uninor mobile network is live in test mode in some parts of 8 telecom circles and it is expected that the company will launch the most awaited GSM mobile service in few days.
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VARIOUS SERVICES PROVIDED BY THE CELLULAR SERVICE OPERATORS:
1.
Prepaid Service
2. Postpaid Service 3. Life Time Validity Plans 4. Short Messaging Services (Text Messages) 5. Mobile Instant Messaging 6. Packet Switching In Networks 7. E-Mail Services 8. Multi Media Messaging Services (MMS) 9. Ring Tones Downloads Facilities 10. Hello Tunes Facilities 11. Roaming Facilities 12. Public Mobile Radio Trunk Service (PMRTS) 13. Internet & Mobile Net Facilities 14. Wap-Open International Standard For Applications That Use Wireless Communication 15. Games As Per Demands 16. Call Divert Facilities 17. Call Barring Facilities 18. Voice Mail Service 19. Video Conferencing 20. Radio Paging etc. 18
Cellular operators also providing many exciting features to increase their customer base like hello tunes, ring tones, mms, GPRS, call forwarding, call waiting, voice mail, missed all information, call conferencing, contests, free offers, recharge voucher discounts, life time validity, double voucher validity, favorite numbers, night talk discounts etc. In order to achieve standards comparable to the international facilities, the sub-sector of value-added services was opened up to private investment in these services. Cellular Mobile Telephone Indian Cellular service companies are providing some new services than voice calls. Cellular Service users are expecting more convenient services from service providers
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OBJECTIVES THE STUDY PRIMARY OBJECTIVE To analyze the students buyer behavior related to mobile service in Erode city.
SECONDARY OBJECTIVE
To study the students awareness on the mobile services. To analyze the students expectations on mobile services in Erode To study factors that influences the purchase of services from the service provider.
To know the satisfaction level of the students on mobile service provider
To study the problem faced by the students while using mobile services
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METHODOLOGY RESEARCH
Research can be defined as a scientific and systematic search for pertinent information on a specific topic. The Advanced Learners Dictionary of current English gives the meaning of research as a careful investigation or inquiry specially through search for new facts in any branch of knowledge.
RESEARCH DESIGN Research design stands for advanced planning of methods to be adopted for collecting the relevant data and the techniques to be used in their analysis keeping in view the objective of the research. The study adopts descriptive research method. The major purpose of descriptive research is description of the state of affairs, as it exists at present. The facts and information collected are analyzed to make a critical evaluation of the material.
SOURCE OF DATA Data is recorded to measure the phenomena. The researcher has adopted two types of data. They are, 21
Primary Data Secondary Data
PRIMARY DATA
Primary data is the first hand information, which the researcher gets from the population. The tool for collecting primary data is Questionnaire. These data are collected directly from the students.
SECONDARY DATA
Secondary data has been collected from the text books, reference books, magazines, internet, etc. COLLECTION OF DATA THROUGH QUESTIONNAIRES The data collections were through questionnaire. The questions are of open ended and closed ended type with multiple choices. The respondents were asked to reveal their preference regarding the various mobile services that influences them to buying behavior. PILOT STUDY The researcher has conducted a pilot study before conducting the field survey to test the effectiveness of questionnaire by taking a small sample of 25 students. This was helpful in shaping and modifying the interview schedule. SAMPLE DESIGN SAMPLING UNIT The sampling unit for present study is mobile services using students 22
in erode city
SAMPLE SIZE
The total sample size selected for the present study is 300 students in different college in erode city.
SAMPLING PROCEDURE
The respondents have been identified using disproportionate stratified sampling which comes in the probability sampling technique. Hence, 300 respondents from different colleges(like arts and science and engineering colleges) in Erode were chosen for the study and the data collected were
processed systematically. TOOLS USED FOR THE STUDY The statistical tools used for the analysis are Simple percentage Analysis Weighted average ranking method Chi square analysis o Cramers (v) PERCENTAGE ANALYSIS Percentage refers to a special kind of ratio making comparison between two or more data to describe relationships. No. of respondents Percentage of respondents = Total respondents x 100
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WEIGHTED AVERAGE RANKING METHOD This type of analysis is particularly useful when the purpose of requisition is to identify the preferences of the sample respondents among different choices. The rank assigned by all the respondents was cumulated using the weightage. Accordingly, the services with the larger cumulative weightage were ranked No.1 and so on.
X W W
Formula = Where as,
W = Weights X = Sample observations
CHI SQUARE ANALYSIS Chi square test is an important test among the several tests of significance developed by statisticians. Chi square symbolically written as 2 (pronounced as ki-square), is statistical measure used in the context of sampling analysis for comparing a variance to a theoretical variance. The following formula can be used for calculating chi square value.
(Oi E i ) 2 Chi - square = Ei
Where as,
Oi = Observed frequency Ei = Expected frequency 24
CRAMERS (V)
Cramers V is a modification of Phi for larger tables and has a range up to 1.0 for tables of any shape. It is calculated using V= Where as,
2
N ( K 1)
N = Number of items K = the lesser number of rows or columns
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