Executive Summery: Study On Consumer Behaviour

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STUDY ON CONSUMER BEHAVIOUR

EXECUTIVE SUMMERY
The study is oriented towards the consumer behavior of the existing and new
Vodafone subscribers and the study focuses on the pre-paid services which have been
offered by the company.

The study was conducted to gauge into the consumers mind and understand the
various consumption related aspects of individuals. The study of consumer behavior
will help to know the psychological, social and physical behavior of all potential
consumers as they become aware of evaluate, purchase, consume and tell others about
products and services.

The objectives of the study is to understand behavioral pattern of potential customer,


consumer perception, brand awareness, buying motives and their expectations and
satisfaction level to delight them.

Information is collected from different sources. The primary information is obtained


by interviewing the customers with the help of questionnaire. The secondary data is
collected from company records, through the help of external guide and also through
the visit of website of the company www.vodafone.com.

Sample size is limited to respondents, who are existing and new Vodafone consumers.
The questionnaire is analyzed with the help of tables and charts. Which may helps to
know about consumer perception, awareness and satisfaction level of the consumer
etc.
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STUDY ON CONSUMER BEHAVIOUR


Lastly the findings indicate that most of them are satisfied with the products and
services and suggestion to be implemented regarding, network, providing subsidized
rates for calling and messaging etc .Keeping the above factors and consideration we
arrive to suitable conclusion that trends in mobile segment is and its growth is
tremendous. If the demand is rising in the same pace then the company should be able
to provide innovative products and value added services to the subscribers.

Finally an effective sales person has to be employed in order to influence the buyer
decisions, the company should have exciting offers with the service they provide.

STUDY ON CONSUMER BEHAVIOUR


GENERAL INTRODUCTION
Definition of Consumer Behavior: Consumer behavior has been referred to as all
the psychological, social and physical behavior of all potential consumers as they
become aware of, evaluate, purchase, consume and tell others about products and
services
All the firms have started considering customer as the king or queen. Interestingly,
after the liberalization of India economy, the market place is flooded with many new
players including the host of MNCs resulting in then availability of more number of
brands in every segment of the market. On account of this consumer has started being
choosy about what to buy. Thus all firms are becoming not only customer focused but
are also trying to build relationship with them. This is done by continuously updating
knowledge, information, and understanding of the customer needs perceptions, and
expectations.

Concepts:
1) Having a better understanding of consumer behavior will help the firm to
become better than their competitors.
2) On understanding consumer behavior firm will be able to predict the consumer
perceptions and acceptance of their various informational and environmental
cues and thus plan their marketing programs or strategies accordingly.
3) On understanding consumer behavior firm will be able to predict the consumer
satisfaction level.

STUDY ON CONSUMER BEHAVIOUR


INDUSTRY PROFILE:
INDIAN TELECOM INDUSTRY
The Cellular Operators Association of India (COAI) was constituted in 1995 as a
registered, non-profit, non-governmental society dedicated to the advancement of
communication, particularly modern communication through Cellular Mobile
Telephone Services. With a vision to establish and sustain a world-class cellular
infrastructure and facilitate affordable mobile communication services in India,
COAI main objectives are to protect the common & collective interests of its
members.
The telecom industry is governed under National Telecom Policy -1999
The first GSM call was made in 1996 on Bharti Cellular Network in New Delhi.
SMS service started in the year 2000. India presently follows a CPP model, whereby
calling party pays. Incoming calls were made free since April 1, 2002 and that has
substantially boosted the subscriber growth rate. In India GPRS is widely offered by
major operators. BPL was the first operator to launch GPRS in India, followed by
Airtel, Hutch and Idea.
The Indian Telecommunications industry is divided into four Service segments:
Basic Services (Conventional Fixed line + CDMA Fixed line)
Mobile (GSM + CDMA)
National Long Distance (NLD) or Subscriber Trunk Dialing (STD)
International Long Distance (ILD)
ILD Voice over internet (VoIP)
The entire country is divided into Telecom License Zones known as Circles.
Licenses are awarded to the operators as per the circles, not as per the states.
Each circle requires a different license.

STUDY ON CONSUMER BEHAVIOUR

OUT LOOK
The recent tariff cuts announced by various telecom operators would affect he bottom
line of these companies. The companies that are unequipped to match up with the
competition and does not have economies of scale would loose out in this race.
Smaller players might find difficult to be in the business and may merge with big
players leading to consolidation in the industry. Hike in foreign direct investment
(FDI) from 49% to 74% had hit roadblock due to political indifference and security
concerns expressed by intelligence bureau. This would block cross border mergers in
coming periods.

STUDY ON CONSUMER BEHAVIOUR

COMPANY PROFILE
About Vodafone Essar Limited
Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced
operations in 1994 when its predecessor Hutchison Telecom acquired the cellular
license for Mumbai. Vodafone Essar now has operations in 16 circles covering 86% of
Indias mobile customer base, with over 34.1 million customers*.
Over the years, Vodafone Essar, under the Hutch brand, has been named the 'Most
Respected Telecom Company', the 'Best Mobile Service in the country' and the 'Most
Creative and Most Effective Advertiser of the Year'. Vodafone is the world's leading
international mobile communications company. It now has operations in 25 countries
across 5 continents and 40 partner networks with over 200 million customers
worldwide. Vodafone has partnered with the Essar Group as its principal joint venture
partner for the Indian market.
The Essar Group is a diversified business corporation with interests spanning the
manufacturing and service sectors like Steel, Energy, Power, Communications,
Shipping & Logistics and Construction. The Group has an asset base of over Rs.400
billion (US$ 10 billion) and employs over 20,000 people.
*Figures from Cellular Operators Association of India, August 31, 2007.

STUDY ON CONSUMER BEHAVIOUR


Hutch is now Vodafone 19 September 2007
September 19, 2007: Vodafone, the worlds leading international mobile
communications company, has fully arrived in India. Vodafone Essar announced that
the Vodafone brand will be launched in India from 21st September onwards.
Vodafone, the worlds leading mobile telecommunication company, completed the
acquisition of Hutchison Essar in May 2007 and the company was formally renamed
Vodafone Essar in July 2007. "This transition is probably the largest brand change
ever undertaken in this country and arguably as big as any in the world. It is even
larger than thier previous brand transitions as it touched over 35 million customers,
across 400,000 shops and thousands of our own and our business associates'
employees."

THE TOP MANAGEMENT


Asim Ghosh, Managing Director, Vodafone Essar
Harit Nagpal, Marketing and New Business Director, Vodafone Essar
Samuel Selvakumar, Chief Executive Officer, Vodafone Essar

The Vodafone mission is to be the communications leader in an increasingly


connected world enriching customers lives, helping individuals, businesses and
communities is more connected by delivering their total communication needs.
Vodafone's logo is a true representation of that belief - The start of a new
conversation, a trigger, a catalyst, a mark of true pioneering.

STUDY ON CONSUMER BEHAVIOUR

SERVICE PROFILE
The name Vodafone comes from Voice data fone chosen by the company to reflect
the provision of voice and data over mobile phones.

Vodafone services are

TUNES

AND

DOWNLOADS

SPORTS

NEWS

FINANCE

CALL

ASTROLOGY

MAIL,
MESSAGE,

AND

UPDATES

DEVOTIONAL

AND

TRAVEL

MANAGMT
SERVICES

Vodafone products are-

ENTERTAINME
NT

POST-PAID

PRE-PAID

WORLD CALLING CARDS

HOME CALLING CARDS

etc

BILL INFO

STUDY ON CONSUMER BEHAVIOUR

VODAFONE -HANDY PHONES

VODAFONE- PCO

STUDY ON CONSUMER BEHAVIOUR

STATEMENT OF THE PROBLEM


The study was made on consumer behavior of existing and
new Vodafone subscriber. The main aim of the research is
to analyze behavior of existing and new Vodafone
subscriber to meet their preferences and expectations. To
know, perception and satisfaction level of Vodafone
services and products. The study of consumer behavior
will help to gauze the consumers mind and understand
the various consumption related aspects of individuals.
Understanding of consumer behavior will make the study
of

marketing

management

more

interesting,

understandable and increase awareness of its practical


implications.

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STUDY ON CONSUMER BEHAVIOUR

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OBJECTIVES 0F THE STUDY:

12

To understand consumer perception about products


and services.

To understand the consumers satisfaction level


about products and services.

To know the market potential of Vodafone


products and services.

To analyze the brand awareness.

STUDY ON CONSUMER BEHAVIOUR

SCOPE OF THE STUDY


The study is carried out to know the fallowing aspects.
To assess, the consumers needs and wants.
To predict, the consumers acceptance of firms
various informational and
Environmental cues.
To gauge into the consumers mind and understand
different consumption
related aspects, of individuals.
To know the percentage of usage of value added
services.
To understand, behavior, of brand loyal consumer.
To understand, behavioral pattern of potential
consumer.
To analyze, the buying motives of the consumers,
while making their purchase
decisions.
To understand, expectations and satisfaction level,
of consumers.

A study of this kind helps to put theoretical aspects into


the project and aims to give information. Nature of the

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STUDY ON CONSUMER BEHAVIOUR


study methods used, findings of the investigation,
conclusions, and recommendations inferred from the
findings aims to enable Vodafone to implement the
recommendations made at the end of the study.
The research is purely based on the survey conducted in
Bangalore city and has been focused on Vodafone
subscribers. The number of respondents intervened is
100.The study covers information about customer brand
preference, brand awareness, service attributes, etc.
Overall scope of the study would be to enhance the
services to the subscribers, in the city.

RESEARCH METHODOLOGY:
SOURCES OF DATA:
Data, facts, figures, other relevant material of past and
present and surveying are the basis for study and analysis.
Without an analysis of factual data no specific inferences
can be drawn on the questions under study. Inferences
based on imagination or guesses cannot provide correct
answer to research questions. The relevance adequacy and
reliability of data determine the quality of the findings of a
study.

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STUDY ON CONSUMER BEHAVIOUR


For the purpose of the present study, data from two
sources has been collected, namely primary data and
secondary data.
PRIMARY DATA:
Primary data is source from which the researcher collects
the data. It is a first hand data, which is used directly for
the analysis purposes. Primary data always gives the
researcher a fairer picture. In the present study primary
data has been collected using questionnaires. For the
purpose of collecting the same, 100 respondents have been
randomly selected. Even the response of the respondents
was taken into consideration. In this study, primary data
plays a vital role for analysis, interpretation, conclusion
and suggestions.
SECONDARY DATA:
Secondary data is data which is collected and compiled for
other purposes. Secondary data also plays a key factor in
providing more information which will influence the
analysis. Few of the main sources of secondary data
include newspapers, business journals, magazines, internet
and company reports, etc.

POPULATION
The aggregate of all the units pertaining to a study is
called the population. Population is the largest group to be

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STUDY ON CONSUMER BEHAVIOUR


studied. Its the total collection of elements about which
we wish to make inferences the populations for this
research are the people residing in Bangalore City.
SAMPLE DESIGN:
The part of the population is known as sample. The
process of drawing a sample from a large population is
called sampling. The type of sample design used is
Random Sampling. Random Sampling gives every unit of
the population a known and probability of being selected.
Since random sampling implies equal probability to every
unit in the population, it is necessary that the selection of
Bangalore city only.

SAMPLE PLAN
SAMPLE SIZE:
The sample size for the survey is 100 respondents of
which 50 are Existing VODAFONE Subscribers and 50
are New VODAFONE Subscribers.

SAMPLE UNIT
One of the units into which an aggregate is divided or
regarded as divided for the purpose of sampling, each unit
being regarded as individual and indivisible when the
selection is made. The definition of unit may be made on
some natural basis for example households, persons, units
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STUDY ON CONSUMER BEHAVIOUR


of product, etc. Hence, in the study the sample unit is
Respondents who are Prepaid Vodafone Subscribers.

TOOLS AND TECHNIQUES OF DATA


COLLECTION:
The following sampling techniques have been
implemented:
Personal Interviews: Approaching people personally and
interviewing directly.
Questionnaire:
Designing the questions, in such a way, that it covers
various opinions, views about VODAFONE subscribers at
the present market conditions. The questionnaire consisted
of

various

types

of

questions

say

Open-ended

questionnaire, Close-ended or Dichotomous questions,


and Multiple-choice questions.
FIELD WORK
This project involved a field work where in the survey is
conducted by having a personal interaction with 100
subscribers who are VODAFONE subscribers. Personal
interaction has been carried out and the information
sought as was required in the questionnaire for the

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STUDY ON CONSUMER BEHAVIOUR


purpose

of

data

processing

and

respondents have been directly contacted.

18

analyzing.

The

STUDY ON CONSUMER BEHAVIOUR


DESCRIPTION OF THE RESEARCH DESIGN:
The present study has been designed to collect the
opinions and perspectives of the Vodafone subscribers.
The data has been collected through questionnaires filled
up

by

personal

interviewing

subscribers.

The

questionnaires have been made as concise as possible.


Personal information has been collected in order to know
their personal background. The questionnaire has been
administered to the respondents directly so that any doubt
regarding the questionnaire could be immediately
clarified. The questionnaire consisted of various types of
question namely multiple choices, close ended, open
ended, and ranking etc, a copy of the questionnaire is
enclosed in the annexure.

RESEARCH DESIGN
The sampling design carried out is convenience sampling.
The marketing research problem calls for the descriptive
types of research. Descriptive studies are undertaken in
many circumstances. When researcher is interested in
knowing the characteristics of certain groups such as age,
sex, income level, etc. or in case researcher is interested in
knowing the proportion of people in a given population
who have behaved in particular manner.

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STUDY ON CONSUMER BEHAVIOUR


Descriptive research is used for the following data.
Consumer profile study.
Consumer behavior study.

METHODOLOGICAL ASSUMPTIONS
For the purpose of the study the following assumptions
have been made.
o It has been assumed that the information given by
the respondents are authentic, bonfire and genuine.
o The sources of the data are the basis, from which
the actual required information can be extracted.
o The sampling procedure adopted will help in
choosing an appropriate sample that truly
represents that actual population.
o It has also been assumed that interviewquestionnaire is more suitable for collecting data
for the present day.

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STUDY ON CONSUMER BEHAVIOUR

LIMITATIONS OF THE STUDY:


The limitations of the study are as follows:

Sample size of the subscriber is limited.

Many subscribers do not give the exact picture of


their opinion.

The time period for conducting the survey is


inadequate as the sample size covers only
Bangalore city.

One subscriber may have more than one


connection.

The opinion of the subscriber depends on the


geographical location of the subscriber this may
include the network of the provider.

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STUDY ON CONSUMER BEHAVIOUR

Since its a prepaid service it may be temporarily


be used.

Since most of the subscribers are teenagers it fails


to give a general view of other age groups.

DATA ANALYSIS AND INTERPRETATION


Data analysis and interpretation about the research is
carried out by using tables and
Charts like pie charts and bar charts etc.

PROFILE OF THE RESPONDENTS OF NEW


VODAFONE SUBSCRIBERS
TABLE 1
Profile of the respondents based on Gender.
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STUDY ON CONSUMER BEHAVIOUR

GENDER

NO OF RESPONDENTS

PERCENTAGE

45
5
50

90%
10%
100%

Male
Female
TOTAL

Inference:
From above table it can be inferred that 90% of the
respondents are MALE and
The rest are 10% FEMALE.
Interpretation:
Further from the inference the researcher can interpret that
majority of the
respondents are males.

Graph-1
PROFILE BASED ON GENDER.

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STUDY ON CONSUMER BEHAVIOUR

TABLE 2
Profile of the respondents based on age group.
AGE GROUP

24

NO OF RESPONDENTS

PERCENTAGE

STUDY ON CONSUMER BEHAVIOUR

<18 yrs

6%

18 to 29 yrs

38

76%

30 to 40 yrs
>40 yrs
TOTAL

6
3
50

12%
6%
100%

INFERENCE:
From the above table it can be inferred that
76% of the respondents are of age group 18 to 29 years.
12% of the respondents are of age group 30 to 40 years.
6% of the respondents are of less than 6 years and more
than 6 years.
INTERPRETATION:
From the above researcher interpret that majority of the
respondents are of the age group 18 to 29 years.

Graph-2
PROFILE BASED ON AGE-GROUP

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STUDY ON CONSUMER BEHAVIOUR

TABLE 3
Profile of the respondents based on Occupation.

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OCCUPATION

NO OF RESPONDENTS

PERCENTAGE

Student

36

72%

Salaried
Businessmen
Others

9
2
3

18%
4%
6%

TOTAL

50

100%

INFERENCE:
From the above table it can be inferred that
72% of the subscribers are students.
18% of the subscribers are salaried.
4% of the subscribers are businessmen.
6% of the subscribers are others.
ITERPRETATION:
From the above inference it is clear that large no of
subscribers are students.

Graph-3
PROFILE BASED ON OCCUPATION.

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STUDY ON CONSUMER BEHAVIOUR

TABLE 4
Profile of the respondents based on Brand-sequence.
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STUDY ON CONSUMER BEHAVIOUR

BRAND

NO OF RESPONDENTS

PERCENTAGE

Air tel
Vodafone
spice
Relience
BSNL
Tata indicom
TOTAL

20
15
7
4
3
1
50

40%
30%
14%
8%
6%
2%
100%

INFERENCE:
From the above table it can be inferred that
40% of the respondents recalled Air-Tel, first in brand
sequencing.
30% of the respondents recalled Vodafone, first in brand
sequencing.
14% of the respondents recalled Spice, first in brand
sequencing.
INTERPRETATION:
From the above, researcher can interpret that most of the
subscriber recall the brand
Which, they use. Hence majority of the subscribers prefer
Air-Tel followed by
Vodafone, Spice, Reliance, and BSNL.

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STUDY ON CONSUMER BEHAVIOUR

Graph-4
PROFILE BASED ON Brand-Sequencing.

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TABLE 5
Profile of the respondents based on Brand-Switching.
RESPONSE

NO OF RESPONDENTS

PERCENTAGE

Yes
No

20
30

40%
60%

TOTAL

50

100%

INFERENCE:
From the above table it can be inferred that
40% of the respondents switch their brand.
60% of the respondents do not switch their brand.
INTERPRETATION:
From the above, researcher can interpret that most of the
subscribers are loyal to their
brand and there is small percentage of subscribers who
switch their brand.

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STUDY ON CONSUMER BEHAVIOUR

Graph-5
RESPONDENTS- BRAND SWITCHING PROFILE.

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STUDY ON CONSUMER BEHAVIOUR

TABLE 6
Profile of the respondents-who were Brand-Switched.
BRAND

NO OF RESPONDENTS

Air Tel to Vodafone

10

Spice to Vodafone

Relience to Vodafone
Indicom to Vodafone

5
0

TOTAL

20

INFERENCE:
From the above it can be inferred that 40% of the
respondents switched brands.
The above table depicts that
10 out of 20 respondents switched brand from Air-Tel to
Vodafone.
5 out of 20 respondents switched brand from Spice to
Vodafone
5out of 20 respondents switched brand from Relience to
Vodafone.
INTERPRETATION:
From the above, researcher can interpret that there is cutthroat competition between
Vodafone and Air-Tel. When compared Air-Tel has gained
a lot by its good network
than Vodafone.

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STUDY ON CONSUMER BEHAVIOUR


Graph-6
RESPONDENTS- BRAND SWITCHED PROFILE.

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TABLE 7
Profile of the respondents based on Service features.
PARAMETERS

NO OF RESPONDENTS

PERCENTAGE

Value Added Services


Network
Tariff
Customer Care
Others

4
20
22
3
1

8%
40%
44%
6%
2%

TOTAL

50

100%

INFERENCE:
From the above table it is inferred that
44% of the respondents opted Vodafone because of
Tariffs.
40% of the respondents opted Vodafone because of
Network.
8 % of the respondents opted Vodafone because of VAS.
6% of the respondents opted Vodafone because of
Customer-care.
INTERPRETATION:
From the above, researcher can interpret that Tariff is
the unique selling proposition
For Vodafone followed by others such as advertisements,
family and friendsetc

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STUDY ON CONSUMER BEHAVIOUR

Graph-7
RESPONDENTS PROFILE BASED ON SERVICE
FEATURES.

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PROFILE OF THE RESPONDENTS OF


EXISTING
Vodafone, SUBSCRIBERS.
TABLE 8
Profile of the respondents based on Gender.

GENDER

PERCENTAGE

Male
Female

NO OF
RESPONDENTS
44
6

TOTAL

50

100%

Inference:
From above table it can be inferred that 88% of the
respondents are MALE and
The rest are 12% FEMALE.
Interpretation:
Further from the inference the researcher can interpret that
majority of
respondents are males.

37

88%
12%

STUDY ON CONSUMER BEHAVIOUR

Graph-8
PROFILE BASED ON GENDER.

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TABLE 9
Profile of the respondents based on age group.

AGE GROUP
<18 yrs
18 to 29 yrs
30 to 40 yrs
>40 yrs
TOTAL

NO OF
RESPONDENTS
5
35
6
4
50

INFERENCE:
From the above table it can be inferred that
70% of the respondents are of age group 18 to 29 years.
12% of the respondents are of age group 30 to 40 years.
10% of the respondents are of less than 18 years and 8%
are more than 40 years.
INTERPRETATION:
From the above researcher interpret that majority of the
respondents are of the age group 18 to 29 years.

39

PERCENTAGE
10%
70%
12%
8%
100%

STUDY ON CONSUMER BEHAVIOUR

Graph-9
PROFILE BASED ON AGE-GROUP

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TABLE 10
Profile of the respondents based on Occupation.

OCCUPATION
Student
Salaried
Business
Others
TOTAL

NO OF
RESPONDENTS
34
13
2
1
50

INFERENCE:
From the above table it can be inferred that
68 % of the subscribers are students.
26% of the subscribers are salaried.
4% of the subscribers are businessmen.
2% of the subscribers are others.
ITERPRETATION:
From the above inference it is clear that large no of
subscribers are students.

41

PERCENTAGE
68%
26%
4%
2%
100%

STUDY ON CONSUMER BEHAVIOUR

Graph-10
PROFILE BASED ON OCCUPATION.

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TABLE 11
Profile of the respondents based on Brand-Switching.

RESPONSE
YES
NO
TOTAL

NO OF
RESPONDENTS
11
39
50

INFERENCE:
From the above table it can be inferred that
22% of the respondents switch their brand.
78% of the respondents do not switch their brand.
INTERPRETATION:
From the above, researcher can interpret that most of the
subscribers are loyal to their brand and there is small
percentage of subscribers who switch their brand.

43

PERCENTAGE
22%
78%
100%

STUDY ON CONSUMER BEHAVIOUR

Graph-11
RESPONDENTS- BRAND SWITCHING PROFILE.

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TABLE 12
Profile of respondents, who, Switched Brand.

BRAND
Vodafone to Air -Tel
Spice to Vodafone
Vodafone to reliance
Vodafone to Tata
TOTAL

NO OF
RESPONDENTS
7
4
0
0
11

INFERENCE:
From the above it can be inferred that 22% of the
respondents switched brands.
The above table depicts that
7 out of 11 respondents switched brand from Air-Tel to
Vodafone.
4 out of 11 respondents switched brand from Spice to
Vodafone

INTERPRETATION:
From the above, researcher can interpret that there is cutthroat competition between
Vodafone and Air-Tel. When compared Air-Tel has gained
a lot by its good network
than Vodafone .

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Graph-12
RESPONDENTS- BRAND SWITCHED PROFILE.

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TABLE 13
PROFILE OF RESPONDENTS BASED ON
USASE OF VALUE ADDED SERVICES
Value Added
services
Vodafone live
Voice mail
Internet
SMS
Roaming

RESPONSE
YES
NO
15
35
49
1
20
30
45
5
22
28

TOTAL
RESPONDENTS
50
50
50
50
50

INFERENCE:
From the above TABLE it can be inferred that
30% of the respondents use Vodafone-live.
98% of the respondents use Voice-mail.
40% of the respondents use internet.
90% of the respondents use SMS.
44% of the respondents use Roaming.
INTERPRETATION:
From the above, researcher can interpret that a majority of
the respondents are students who use roaming service are
out of the state.
SMS packages should be launched more because 90% of
respondents use SMS.

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Graph-13

PROFILE OF RESPONDENTS USAGE OF


VALUE ADDED SERVICES.

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TABLE 14
RESPONDENTS AWARENESS ABOUT VODAFONE
PRODUCTS

PRODUCTS
Post-paid

RESPONSE
YES
NO
50
0

TOTAL
RESPONDENS
50

Pre-paid
World calling cards

50
20

0
30

50
50

Home calling cards

40

10

50

V-handy phones

26

24

50

Vodafone PCO

35

15

50

INFERENCE:
From the above TABLE it can be inferred that
100% of the respondents are aware of Vodafone-pre-paid
and post-paid products.
40% of the respondents are aware of world calling cards.
80% of the respondents are aware of home calling cards.
70% of the respondents are aware of Vodafone PCO.
INTERPRETATION:
From the above, researcher can interpret that a majority of
the respondents are aware
of Vodafone products.

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Graph-14
PROFILE OF RESPONDENTS AWARENESS
ABOUT VODAFONE
PRODUCTS

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TABLE 15
USER SATISFACTION LEVEL
Profile of the respondents based on

51

Particulars

Fully
satisfied

Satisfied

Neutral

Dis
satisfied

Tariffs

20

10

10

Fully
dissatisfi
ed
4

Network

16

25

Customer care

10

20

10

Availability of SIM
and R-Coupons
Roaming

15

21

10

10

15

10

STUDY ON CONSUMER BEHAVIOUR


Graph-15

USER SATISFACTION LEVEL

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TABLE 16
PROFILE OF THE RESPONDENTS BASED
ON OVERALL RATING
PARAMETERS
Excellent
Very Good
Good
Poor
Very poor
TOTAL

NO OF
RESPONDENTS
8
10
30
2
0
50

INFERENCE:
From the above TABLE it can be inferred that
60% of the respondents rate good.
20% of the respondents rate very good.
16% of the respondents rate excellent.
4% of the respondents rate poor.
INTERPRETATION:
From the above, researcher can interpret that by
considering all factors like tariffs, Network, customer
care, roaming service, etc the overall rating of Vodafone is
good.

53

PERCENTAGE
16%
20%
60%
4%
0%
100%

STUDY ON CONSUMER BEHAVIOUR

Graph-16

PROFILE OF THE RESPONDENTS BASED


ON OVERALL RATING

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STUDY ON CONSUMER BEHAVIOUR

RESEARCH FINDINGS

Generally most of the subscribers are students and


teenagers.

Majority of the subscribers recalled the brands


they used.

The tariffs plan, advertisements and family and


friends had huge impact over the subscribers. Most
of them opted to Vodafone because it is cost
effective.

Roaming services on pre-paid cards are highly


utilized.

Majority of the subscribers prefer Vodafone when


compared to competitors, because they feel
Vodafone is economical.

60% of the respondents said Vodafone is good.

78% of the respondents do prefer to switch their


brand.

The network coverage of Vodafone is not as


effective as it provides services
1800MHz,

OBSERVATIONS:

55

on 900 MHz,

STUDY ON CONSUMER BEHAVIOUR

Its observed that most of the subscribers are


students and teenagers.

Its observed subscribers recalled the brand which


they use.

Its observed that brand switching was not on large


scale.

Its is observed that tariffs plans, promotions of the


company and influence of
Social

Circle had huge impact over the subscribers.

SUGESTIONS,

FOR

IMPROVEMENT

OF

VODAFONE SERVICES.

Vodafone is providing very good service to its


customers and it is one of the best service
providers for telecommunication, it has to make
use of its resources optimally.

In addition to implementing the suggestions given


by customers, Vodafone should follow the
following steps to maximize profits, by means of
customer satisfaction in an effective manner.

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STUDY ON CONSUMER BEHAVIOUR

Respondents suggest that overall service is not


satisfactory

and

not

meeting

the

customer

expectations or satisfaction level.

Network is the main

factor for customer

dissatisfaction,

of

majority

the

respondents

suggested to increase the number of towers ,widen


the coverage to villages and network congestion.

The tariffs have to be consistent for quite some


time in order to avoid the confusion among
subscribers.

More quickly accessible contact numbers for


customer care (increase no of lines) promote
them in order make the user aware of the facility.

Provide subsidized rates for calling or messaging


to one or two numbers of our choice.

Provide good plans, schemes, and packages in


order to have the customer with wide choice.

Keep the subscriber well informed about any


deductions or any change in the plan and provide
the value for what the customer is paying for.

Customers grievances should be dealt more


quickly and immediately.

CONCLUSION:

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STUDY ON CONSUMER BEHAVIOUR


Going mobile is the craze today!!
Now buying mobile is not a rich mans possession any
more. The mobile industry is on whopping high. With
various technologies creeping in every day you always are
on a back seat to keep your self updated. With a major
chunk of the users being teenagers it makes the situation
more dynamic and he helps to create a niche market in
itself.
Looking at the trends in mobile segment, the growth is
tremendous. Various

cellular providers

try to be

innovative in providing value added services to the


subscribers. If the demand is rising in the same pace then
it is sure that the subscriber base of the mobile users will
definitely exceed the limit of the land line subscribers.
This report helps in knowing the consumer behavior of the
Vodafone subscribers and what perception customers have
about the brand Vodafone . With its report company can
capture its loose pools or weaknesses and convert them in
to their strengths and opportunities.
From the above study we come to the conclusion that in
case of parameters of selection, customer or subscriber
will first look at the tariffs, network coverage and then
other parameters. The subscribers also expect the

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company to give in detail information of the service they
are availing.
An effective sales person has to be employed in order to
influence the buyer decision.
The company should have exciting offers with the service
they provide

ANNEXURES
GSM Segment Overview
GSM introduced in 1995
One of the fastest growing mobile markets in the World
for GSM
Subscriber growth rate for Jan. 2003-2004 was 200%
approx.
35 networks on 900 Mhz, 11 on 1800 Mhz Technology
Presently, approximately 1 million GSM subscribers are
added every month
Unified license system introduced by government in
2004
3G spectrum decision is awaited
CDMA Segment overview
Present Standard: CDMA 2000 1x
Started in March 2003
Offered by 6 operators
LG and Samsung hold majority device Market share
Streaming media options
Always on internet connectivity @ 114 kbps

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Reliance Infocom was the first private operator to


start with the CDMA services in India. However,
BSNL and MTNL offered CDMA before Reliance
they were unable to tap subscribers.
Internet made its entry in India in the year 1995
when VSNL (Videsh Sanchar
Nigam Limited) started with dial-up connections.
The total E-Commerce transaction value in India is
estimated to be around
8.7 billion USD in 2003-04.
In 2003, the Central Government proposed total
outlay of US$560 million for
National plan on e-governance

CIRCLE GROWTH
Circle Definition: in India areas classified on the basis of
subscriber and revenue potential, Where Metro circle has
the highest potential and C circle has the lowest

Entire Nation is divided into 4 circles Metros, A,


B&C
Metro circle Delhi, Mumbai, Kolkata & Chennai
A

Circle:

States

of

Karnataka & Tamilnadu

60

Maharshtra,

Gujarat,Andhra,

STUDY ON CONSUMER BEHAVIOUR


B Circle: States of Kerala, Punjab, Haryana, Uttar
Pradesh, Rajasthan & Madhya Pradesh
C Circle: States of Himachal, Bihar, Orissa, Assam,
Kashmir and North East States
In circle wise growth C circles continuous to be
the fastest growing circle due to its low base. In C circle
Reliance and BSNL are the major operators. Reliance is
depending on CDMA Technology for its growth. BSNL
depends on GSM technology in this circle. Circle A
accounts for highest share of 37% and grew by
5.1%.Growth in A circle is lead by Karnataka and
Tamilnadu which grew 7.9% and 8.7%.

VAS AWARENESS IN INDIA

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62

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EVOLUTION OF COMMUNICATIONS IN INDIA

EDGE
CDMA
WI-FI
GPRS
BROADBA
ND

Technology

GSM
INTER
NET
CABL
E TV
FIRST
PHON
E

1882

1990

1995

20012002

2003

Number of years.

As in the above chart we see that how technology changed


over years from time the first basic phone to mobile
technology and now to EDGE technology

63

2004onwards

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GSM OPERATOR- BHARTI
Brand Name: AIRTEL
Network: GSM 900, 1800, GPRS, EDGE
Network Coverage: 17 Telecom circles
Subscriber base: 7,062,443 (May 2004)
Subscriptions: Post Paid, Pre Paid
VODAFONE TELECOM
Brand Name: Vodafone
Network: GSM 900, GSM 1800, GPRS, EDGE
Network Coverage: 14 Telecom Circles
Subscriber base: > 5 million
Subscriptions: Post Paid, Pre Paid
IDEA
Brand Name: IDEA
Network: GSM 900, 1800, GPRS, EDGE
Network Coverage: 6 Telecom circles
Subscriber base: < 4 million
Subscriptions: Post Paid, Pre Paid
BPL Mobile
Brand Name: BPL
Network: GSM 900, 1800, GPRS
Network Coverage: 6 Telecom circles
Subscriber base: < 2 million
Subscriptions: Post Paid, Pre Paid

64

What an Idea!
An idea can change your life.

STUDY ON CONSUMER BEHAVIOUR


CDMA Operators - RELIANCE
Brand Name: RIM- Reliance India Mobile
Network: CDMA 2000-1x
Network Coverage: 18 Telecom circles
Subscriber base: > 6,8 million
Subscriptions: Post Paid, Pre Paid
TATA INDICOM
Brand Name: TATA or TATA Indicom
Network: CDMA 2000-1x
Network Coverage: 6 Telecom circles
Subscriber base: > 2 million
Subscriptions: Post Paid, Pre Paid

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STUDY ON CONSUMER BEHAVIOUR

BIBLIOGRAPHY
Portals/Websites:
www.vodafone.com
www.airtelworld.com
www.businessworldindia.com
www.tekesnets.com
Business Journals:
Business world
Business today
News papers:
Times of India
Economic times
Books referred:
Consumer Behavior in Indian
Perspective.
Himalaya Publishing
House-Suja R. Nair

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67

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