PRESENTED BY: MANISH KUMAR SAHOO

STUDY OF CONSUMER BUYING BEHAVIOUR TOWARDS MOBILE PRE-PAID PRODUCTS AND HANDSET MODELS

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OBJECTIVE

The aim of study is to understand the behavior of mobile phone users in BHUBANESWAR and CUTTACK and further capture their satisfaction level that is influenced by various technical and non technical factors.

To ascertain the determinants which influence the customer in selecting a particular cell phone services provider and a particular hand-set.

To assess the problems faced by the cell phone users in BHUBANESWAR and CUTTACK city.

To offer valuable suggestions to improve mobile phone services.

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SCOPE OF STUDY

The study was carried out randomly in BHUBANESWAR AND CUTTACK where in the views of all operators were captured in the survey .

For handset, there are more than 20 Brands of Mobile phones available in the market. Within each brand there are various models, each with different features and functions.

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RESEARCH METHODOLOGY

DATA COLLECTION: The data were collected from the

respondents through the distribution of questionnaire that contains both open ended as well as close ended questions.

AREA OF THE STUDY: BHUBANESWAR and CUTTACK.

SAMPLE SIZE: The sample size achieved is 200.

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PRESENTATION FLOW CUSTOMER BASE OPERATORS CONSIDERED BEFORE OPTING FOR THE CURRENT

OPERATOR AGE WISE ANALYSIS OF OPERATORS OCCUPATION WISE ANALYSIS OF OPERATORS. FACTORS INFLUENCING RESPONDENTS FOR A PARTICULAR

OPERATOR. PRODUCTS USED BY THE RESPONDENTS MARKET SHARE OF VARIOUS BRANDS OF MOBILE PHONE HANDSETS. INFLUENCING FACTORS TO PURCHASE THE CELL PHONE CONSUMER’S SATISFACTION LEVEL AFTER USING THE OPERATOR. REASONS FOR DISSATISFACTION. OPERATORS RECOMMEND MOST BY THE RESPONDENT TO THEIR

FRIENDS/RELATIVES MEDIA HABITS PROBLEM AREAS RECOMMENDATION FOR R-GSM AND R-CDMA CONCLUSION

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ANALYSISCUSTOMER BASE

OBSERVATIONS:• BSNL has got maximum of 20% respondent followed closely by R-GSM and AIRTEL with a share of 17% each. and 16% Respectively.

O P E R AT O R B AS EAirc el 21Airtel 33B S NL 40R -G S M 34T AT A Indic om 13Vodafdone 22R -C DMA 26Virg in 4Idea 7

T O T AL 200

OPERATOR BASE

TATA Indicom7%

Vodafdone11%

R-CDMA13%

Virgin2%

Aircel11%

Airtel16%

R-GSM17%

BSNL19%

Idea4%

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OPERATORS CONSIDERED BEFORE OPTING FOR THE CURRENT OPERATOR

OBSERVATIONS:• Maximum number of Respondents had initially thought about taking R-GSM before switching to different network.• Followed by BSNL which comes second with 22 respondents.

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OPERATORS CONSIDERED BEFORE OPTING FOR

OBSERVATIONS:•14 respondent had only thought about AIRTEL• Maximum number of respondent had initially thought of having R-GSM before opting for AIRTEL mainly due to good connectivity and more establish brand name.• BSNL comes second

R-GSMAIRTEL

OBSERVATIONS:• Maximum of the respondents had initially thought about taking BSNL but later on switched to R-GSM mainly due to lower cost and free on-net calls.•Only 13 respondents had thought only about R-GSM

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OPERATORS CONSIDERED BEFORE OPTING FOR

BSNL VODAFONE

OBSERVATION:• Maximum respondents had a thought about almost all operators before opting for VODAFONE mainly due to its :• Lower entry cost • Free on-net calls • Very economical tariff.

OBSERVATION:•More than half of the respondent had only thought about BSNL. •Some of the respondent had initially thought of having R-GSM mainly due to word of mouth• AIRCEL comes second mainly due to same word of mouth.

624

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OPERATORS CONSIDERED BEFORE OPTING FOR

AIRCEL TATA-INDICOM

OBSERVATION:•More half of the respondents did not thought for any other operator. •Many of the respondent had initially thought about BSNL because of word of mouth and good connectivity.

OBSERVATION:• As both TATA-INDICOM and R-CDMA gives free STD on-net calls so respondents had thought about R-CDMA.• 7 respondent took TATA-INDICOM without having any second thought.

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OPERATORS CONSIDERED BEFORE OPTING FOR R-CDMA

OBSERVATION:

• Similarly as both R-CDMA and TATA- INDICOM gives free on-net STD calls so respondents had a thought about TATA-INDICOM .•More that 70% of respondent took R-CDMA with out thinking about any other operator.

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AGE WISE COMPOSITION OF THE SAMPLE

40, 20%

58, 29%48, 24%

40, 20%

14, 7%

AGEWISE COMPOSITION

15-21 22-30 31-40 41-50 ABOVE 50

OBSERVATIONS :• Maximum respondent are from age group of 22-30 • Followed by the age group of 31-40

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AGE WISE PREFERENCE OF OPERATORS

OBSERVATIONS :• In the age group of 15-21 which mainly consists of students VODAFONE leads with

11 respondent opting for it mainly because of free on-net calls and low entry cost which is followed by R-GSM with 7 respondent.

• In the age group of 22-30 AIRTEL leads with 16 respondent mainly because of good connectivity and better brand strength, closely followed by R-GSM with 15 respondent.

• In the age group of 31-40 R-CDMA leads mainly due to better connectivity and free STD on-net calls which is followed by BSNL.

• While in the age group of 41-50 BSNL has emerge as a clear winner with 18 respondent opting for it mainly because of Govt. owned company , good connectivity and better voice clarity.

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OCCUPATION WISE COMPOSITION OF SAMPLE

OBSERVATION:• Maximum respondent are from student with 30% followed by business person with 28%.

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STUDENT, 60, 30%

SERVICE PERSONNEL(PVT),

47, 23%

SERVICE PERSONNEL(GOVT

), 26, 13%

BUSSINESS PERSON, 56, 28%

RETIRED PERSON, 5, 3%

OTHERS, 6, 3%

NO OF RESPONDENT

OCCUPATION WISE OPERATOR PREFERANCESTUDENT-60 SERVICE PERSONNEL(GOVT)-

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OBSERVATION AND REASONS:It clearly shows that Vodafone enjoy a good lead over its competitors among the student mainly due to:• Low entry cost• Free on-net calls• Strong brand name• Word of mouthVodafone is followed by R-GSM as most popular among students.

OBSERVATION AND REASONS:Both BSNL & R-GSM leads over their competitors mainly due to :• Established Company and• Loyalty towards one particular operator.

Aircel comes second with 5 respondents.

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OCCUPATION WISE OPERATOR PREFERANCESERVICE PERSONNEL(PVT)-47 BUSINESS PERSON-56

OBSERVATION:BSNL leads in this segment followed by R-

CDMA.

OBSERVATION AND REASONS:• AIRTEL leads in this segment mainly due to better connectivity , good voice clarity and strong brand name.• Followed by R-GSM and BSNL because of establish brand name.

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FACTORS BEHIND OPTING FOR

OBSERVATION:• Better connectivity • Strong brand • Good customer care service help AIRTEL in attracting more of its customers.

AIRTEL(33)

OBSERVATION:• Attractive tariff is the main motivation factor. • Brand strength• Good customer care service.

R-GSM(34)

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FACTORS BEHIND OPTING FOR

R-CDMA(26) AIRCEL(21)

OBSERVATION:•Good customer care service.. •Economical tariff rates and, •Word of mouth comes as driving force for the respondent to opt for the network.

OBSERVATION:•Good connectivity •Attractive tariff like free on-net std calls .•And good customer care service are the main motivating network.

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FACTORS BEHIND OPTING FOR

BSNL(40) VODAFONE(22)

OBSERVATION:•Free on-net local calls is a major factor behind opting VODAFONE.•Very low entry cost .•And word of mouth also help the respondent in opting for Vodafone.

OBSERVATION:•Connectivity plays an very important role in influencing the respondent to go for this network.•Govt. owned brand •Good customer care service motivates the respondent to go for this operator.

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FACTORS BEHIND OPTING FOR

TATA-INDICOM(13) IDEA(7)

OBSERVATION:•Low entry cost •Attractive and economical tariff and• Word of mouth plays an important role in motivating the respondents.

OBSERVATION:•Good Connectivity •brand strength •And free on-net STD calls.

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TOP 3 STV’S USED BY THE RESPONDENTOPERATOR MRP VALIDITY COUNT BENEFITS

R-GSM 130 90 DAYS 11 R2R : 30P, R2O : 50P, R2L : 0.99, STD : 1.50

365 365 DAYS 7 R2R : :30P, R2O : 50P, R2L : 0.99 STD : 1.50

60 30 DAYS 5 R2R : 30P, R2O : 50P, R2L : 0.99 STD : 1.50

R-CDMA 69 30 DAYS 12 20P 2 RIM & RTL, R2O & R2L : 50P, STD :1.00

499 60 DAYS 5 FREE 2 RIM & RTL, R2L : 49P, STD : 1.50

123 30 DAYS 3 NIGHT FREE 2 RIM & RTL ,DAY : 10P, R2 L :50P STD:1.00

TATA-INDICOM 325 30 DAYS 4 FREE T2T , T2O : 50P , T2L : 1.00 STD : 1.50 T.T : 100

59 30 DAYS 3 ALL CALLS : (12pm – 6pm & 12am – 6 am) : 30p,Other : 60p, STD:1.5

699 30 DAYS 3 FREE T2T LC & STD , T2O : 50P, T2L :1.OO STD : 1.00

VODAFONE 98 30 DAYS 13 V2V : 5P, V2O : 50P, V2L : 50P STD : 1.50

149 30 DAYS 6 V2V FREE, V2O : 50P , V2L : 50P STD : 1.50

49 30 DAYS 1 STD : 75P

AIRCEL 47 30 DAYS 5 LOCAL A2A : 20P, A2O : 75P , A2L : 75P STD : 1.50

26 30 DAYS 4 A2A 19P (10PM 2 8AM)

75 30 DAYS 4 A2A : 10P, A2O : 50P, A2L : :99P STD : 1.00

BSNL 75 30 DAYS 21 B2B : 20P, B2O : 50P, B2L : 50P STD : 1.50P

205 90 DAYS 9 B2B : 20P, B2O : 50P, B2L : 50P STD : 1.50P

AIRTEL 39 30 DAYS 10 A2A : 50P, A2O : 1.00, A2L : 1.00 STD : 1,50

125 30 DAYS 7 A2A : 3 5P, A2O : 50P, A2L : 50P STD : 1.00

99 30 DAYS 3 A2A : 35P, A2O : 50P, A2L : 50P STD : 1.50

IDEA 19 30 DAYS 3 I2I : 10P, I2O & I2L : 50P STD:1.0028 of 52

TOP 3 TOPUP’S USED BY THE RESPONDENTOPERATOR MRP COUNT BENEFITS

R-GSM 56 8 T.T : 48.77

25 8 125 ON NET MINS FREE VALIDITY : 30DAYS

200 6 T.T : 181.32

R-CDMA 55 7 CORE T.T: 47.9 PROMO T.T: 7.1

10 5 T.T : 7.07

110 5 CORE T.T : 97.7 PROMO T.T : 18.8

TATA-INDICOM 25 4 T.T : 20.67

10 4 T.T : 7.07

100 2 T.T : 88.66

VODAFONE 10 13 T.T : 7.50

20 11 T.T : 16.50

222 2 T.T : 222

AIRCEL 10 8 T.T : 7.07

25 6 T.T : 20.67

110 5 T.T : 97.73

BSNL 20 5 T.T : 18

100 11 T.T : 100

500 2 T.T : 500

AIRTEL 10 8 T.T : 6.00

60 7 T.T : 51.40

120 5 T.T : 104.80

IDEA 10 3 T.T : 9.06

333 2 T.T : 333 + 333 FREE MINS FOR 30 DAYS 29 of 52

TOP 2 SMS PACKS USED BY THE RESPONDENT

OPERATOR MRP VALIDITY COUNT BENEFITS

R-GSM 51 30 DAYS 4 400 SMS(LOCAL & NATIONAL) FREE

15 7DAYS 2 100 LOCAL SMS FREE

R-CDMA 15 30 DAYS 7 200 LOCAL SMS FREE

30 30 DAYS 4 500 LOCAL SMS FREE

TATA-INDICOM 15 30 DAYS 3 150 LOCAL SMS FREE

30 30 DAYS 1 500 LOCAL SMS FREE

VODAFONE 11 7 DAYS 6 110 LOCAL SMS  FREE

34 30 DAYS 3 340 LOCAL AND NATIONAL SMS FREE

AIRCEL 9 15 11 50 LOCAL + NATIONAL SMS FREE

49 30 4 300 LOCAL + NATIONAL SMS FREE

AIRTEL 48 30 DAYS 5 450 LOCAL+ NATIONAL SMS FREE

15 15 DAYS 2 70 LOCAL SMS FREE

IDEA 29 30 DAYS 2 200 LOCAL+100 NATIONAL FREE

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MARKET SHARE OF VARIOUS BRANDS OF MOBILE PHONE HANDSETS

OBSERVATION:• As per the market trend NOKIA continues to dominate with almost half of the respondent using it.• Followed by Samsung and Motorola each having a market share of 14% and 15% respectively.

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INFLUENCING FACTORS TO PURCHASE THE CELL PHONE

OBSERVATION:•Maximum respondent see long battery back up as the most influencing factor for deciding any cell phone •Followed by the brand name • And looks

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CONSUMER’S SATISFACTION LEVEL AFTER USING THE OPERATOR

OBSERVATION AND REASONS:• BSNL has got the maximum very much satisfied users mainly due to good connectivity and Govt undertaking brand. • Then comes AIRTEL which has got second maximum very much satisfied users from its competitors mainly due to good connectivity and strong brand name.

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REASONS FOR DISSATISFACTION(AIRTEL)

OBSERVATION:

• Higher cost in tariffs is the major reason for dissatisfaction among the respondent as they think its bit on higher side compared with its competitors.• Also poor customer care service is another factor.

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REASON FOR DISSATISFACTION

OBSERVATION:• Majority of the respondents are not happy with the quality of network and voice clarity provided by the R-GSM.•Call conjunction during peak time.• Customer care service is not that good.

OBSERVATION:• Higher entry cost is one of the major reason for dissatisfaction among the users.• Also the cost of CDMA handset is much more than GSM handset• Another reason is that call conference system is not available in the pre-paid of R-CDMA.

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REASON FOR DISSATISFACTION

OBSERVATION:• Higher cost is one of the major reason for dissatisfaction among the users of BSNL. • Also they think customer care service is not up to the mark.

OBSERVATION:

Vodafone has got least number of dissatisfied customers mainly because its been in operation for last 10 months only.

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REASON FOR DISSATISFACTION

OBSERVATION:•Poor network in remote areas is one of the major reasons for dissatisfaction among the users. •Also voice clarity is not good during the peak time.

OBSERVATION:•Higher entry cost is the main reason for dissatisfaction.•Also the cost of CDMA handset is much more than GSM handset.

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RESPONDENTS INTENDING TO CHANGE THEIR OPERATOR

OBSERVATION:• From the above observation it is clear that maximum of R-GSM respondent wants to change their operator is near future. Followed by BSNL

• Similarly BSNL have got maximum number of respondent who are every much satisfied with their operator and they don’t want to switch to any other operator. Followed by AIRTEL. 39 of 52

OPERATORS RECOMMEND MOST BY THE RESPONDENT TO THEIR FRIENDS/RELATIVES

OBSERVATION AND REASONS:• BSNL leads mainly because of good network, attractive tariff and Govt. undertaking brand.• Followed by VODAFONE which is more popular among the students mainly due to very low entry cost, free on-net calls and a strong international brand.• Then comes AIRTEL which rides on its good connectivity and brand image. • After that both R-GSM and R-CDMA comes.

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RECOMMENDATION SPLIT FOR VODAFONE(22)

VODAFONE RECOMMENDATION-35

OBSERVATION:• All most all of Vodafone respondents wants to suggest Vodafone to there relatives/friends if they are asked to.• Followed next is R-GSM respondent who will suggest there relatives/friends about Vodafone.

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RECOMMENDATION SPLIT FOR IDEA(7)

OBSERVATION:• All the respondent using IDEA wants to suggest there relatives/friends about IDEA as because of economical tariff rates.• And as many as same number of respondent using R-GSM will also suggest there relatives/friends about IDEA.

IDEA RECOMMENDATION-21

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RECOMMENDATION SPLIT FOR R-GSM(34)

In case of R-GSM out of 34 respondents using R-GSM only 23 wants to suggest there relatives/friends about taking R-GSM while

One respondent each from R-CDMA and AIRCEL wants to suggest about R-GSM.

This is mainly because due to free calls between R-CDMA and R-GSM.

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SOURCE FROM WHICH RESPONDENT GET TO KNOW ABOUT DIFFERENT PRE-PAID PRODUCTS AND HANDSET MODELS

OBSERVATION:• As it is expected RETAILER leads as the major source from which respondents get to know about different pre-paid products and handset models.• Followed by FRIENDS/RELTIVES who give vital information and also motivates the respondent to use the said product.

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NEWSPAPER READ BY THE RESPONDENT THE MOST

LANGUAGE NEWSPAPER COUNT

ENGLISH TIMES OF INDIA 101

INDIAN EXPRESS 33

DEECAN CHRONICAL 1

HINDU 6

HINDI NO RESPONDENT

ORIYA DHARITRI 69

SAMBADHA 46

SAMAYA 17

SURYA PRABHA 745 of 52

MOST PREFFERED RADIO CHANNEL AMONG THE RESPONDENT

OBSERVATION:• Maximum of the respondent don’t have time to listen to any of the FM channels.• Between the age group of 15-21 and 22-30 maximum of the respondent listen to FM channels• Radio chocolate comes first among the respondent followed by Big FM.

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PROBLEM AREASFOR R-GSM:Poor connectivity and voice clarityHigher entry cost than its competitors.Free on-net calls are not that attractive compare

to its competitors.Brand visibility is poor compared to its

competitors.

FOR R-CDMA:Higher entry cost as it comes with a handset.Handset available with R-CDMA is much costlier

than handset available for GSM.No tie ups with NOKIA or SAMSUNG for R-CDMA.

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FOCUS MORE ON NETWORK AND LOW ENTRY COST

In the analysis it has been found that the major influential factors are good connectivity and Low entry cost.

More than 50% of respondents mention it as one of the major influential factors.

Also economical on-net calls is one of the major motivating factor.

RECOMMEDATION FOR R-GSM

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GO YOUNG

According to my analysis it has been seen that the age group of 15-22 are more flexible in nature.

The major influential factors for this age group are. - Free on-net calls at very economical price-

point - word of mouth - good connectivityThis is the major reason why Vodafone has captured

28% market in this age group and still going stronger.And IDEA is also aiming to capture a major portion in

this segment.

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LOW ENTRY COST FOR CDMA OPERATORAccording to my analysis it is found that over

80% of the respondents are not happy with the amount they are paying for getting a CDMA connection.

Also the CDMA handsets are more costlier than GSM handsets.

Although in case of connectivity it has been found that above 90% respondent are very much satisfied with it.

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MORE FOCUS ON BRAND NAME AND BATTERY BACKUP

It has been found that Brand name tops as most influencing factor while purchasing a mobile phone.

Also Good battery back up and Looks/Latest design plays an equally important role in motivating one’s decision.

This is the main reason why Nokia is more popular among the respondents.

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CONCLUSION

More focus on the age group of 15-22

Introduce more economical tariffs rate.

More emphasis on connectivity and voice clarity.

Low entry cost for R-CDMA.

More tie-ups with Nokia or Samsung

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