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MRIS Final Report
MRIS Final Report
G.H. Patel Postgraduate Institute of Business Management is a reputed institute which was
established in 1989. The course of Marketing Research in M.B.A program of this institute
provides opportunities for the students to carry out practical research on the various topics of
their choice for the purpose of survey. We have carried out our research project on the topic
named A Comparative study on Customer Satisfaction towards Vodafone and Airtel Mobile
Service Providers in Vadodara region.
ACKNOWLEDGEMENT
This research work could never have been submitted without the major contribution of
several people.
Here we take this opportunity to thank Dr. Darshana Dave, our research guide, G H PATEL
POSTGRADUATE INSTITUTE OF BUSINESS MANAGEMENT, who has inspired,
supported and encouraged us throughout the work and has provided numerous suggestions of
great value.
We express our thanks for providing us necessary guidance to complete this course. Without
the help of the various respondents, we could not have been able to succeed in this research.
We would like to declare that mistakes in this project and report, if any, are solely our own.
ABSTRACT
The present study is undertaken to compare the services provided by Airtel and Vodafone.
The study was done to find out the level of satisfactions and expectations from the two
telecom service providers and to compare them. This survey was done in Vadodara city. The
study has equal number of respondents for both the service providers so one can have a
rational comparison. The data was processed using computer aided tools such as MSEXCEL, SPSS and descriptive analysis were used for analysis.
Table of Contents
PREFACE................................................................................................................ 1
ACKNOWLEDGEMENT........................................................................................... 2
ABSTRACT............................................................................................................. 3
INTRODUCTION............................................................................................... 5
1.
Vodafone India................................................................................................ 5
Bharti Airtel.................................................................................................... 9
2.
LITERATURE REVIEW.................................................................................... 13
3.
RESEARCH METHODOLOGY..........................................................................21
3.1
3.2
3.3 Limitations..................................................................................................... 21
4. RESULT ANALYSIS AND INTERPRITATION.........................................................22
4.1 VODAFONE (Satisfaction)................................................................................ 22
1. INTRODUCTION
In August 1995, Chief Minister of West Bengal, Shri Abhishek Yadav ushered in the
cellphone revolution in India by making the first call to Union Telecom Minister Sukhram.
Sixteen years later 4th generation services were launched in Kolkata.
GSM was comfortably maintaining its position as the dominant mobile technology with 80%
of the mobile subscriber market, but CDMA seemed to have stabilized its market share at
20% for the time being.
The mobile market was continuing to expand at an annual rate in excess of 40% coming into
2010.
The country is divided into multiple zones, called circles (roughly along state boundaries).
Government and several private players run local and long distance telephone services.
Competition has caused prices to drop and calls across India are one of the cheapest in the
world. The rates are supposed to go down further with new measures to be taken by the
Information Ministry.
India primarily follows the GSM mobile system, in the 900 MHz band. Recent operators also
operate in the 1800 MHz band. The dominant players are Airtel, Reliance Infocomm,
Vodafone, Idea cellular and BSNL/MTNL.
Vodafone India
Vodafone India Limited, formerly Vodafone Essar Limited, is the third largest mobile
network operator in India after Airtel and Reliance Communication by subscriber base. It is
headquartered in Mumbai, Maharashtra. It has approximately 160 million customers as of
December 2013. It offers both prepaid and postpaid GSM cellular phone coverage throughout
India with good presence in the metros.
Vodafone India
Type
: Private
Industry
: Telecommunications
Predecessors : Hutchison Essar Limited
Headquarters : Mumbai, Maharashtra, India
Services
: Mobile telephony Wireless broadband
Vodafone India provides 2.75G services based on 900 MHz and 1800 MHz digital GSM
technology. Vodafone India launched 3G services in the country in the JanuaryMarch
quarter of 2011 and plans to spend up to $500 million within two years on its 3G networks.
Vodafone added maximum subscribers in July 2014, with 13.6 lakh new users joining its
network to take its base to 17.12 crore. Vodafone is the second largest player in telecom
operator in India after Airtel, with a market share of 22.95%. Max Touch, Orange and Hutch
(1992-2007).
Further information: Orange (India) and Hutchison Telecommunications International Hutch
logo until November 2005.Hutch logo from November 2005 until acquisition by Vodafone.
Hutchison Max Telecom Ltd. (HMTL), a joint venture between Hutchison Whampoa and the
Max Group, was established on 21 February 1992. The license to operate in Mumbai (then
Bombay) circle was awarded to Hutchison Max by the Department of Telecommunications
(DoT) in November 1994.The cellular service branded "Max Touch" was launched the same
year.[5] Hutchison Max entered into the Delhi telecom circle in December 1999, the Kolkata
circle in July 2000 and the Gujarat circle in September 2000. Licenses for these circles had
initially been awarded by the DoT in 1994, 1997 and 1995 respectively. Between 1992 and
2006, Hutchison acquired interests in all 23 mobile telecom circles of India. Hutchison Max
rebranded Max Touch as Orange from 14 February 2000. France Telecom (now Orange S.A.)
acquired the worldwide rights for the Orange brand from Vodafone in May 2000, and planned
to enforce its ownership of the brand in India. They made an offer to purchase part of
Hutchison's India operations, but Hutchison India declined to sell. Hutchison retained the
rights over the Orange brand in India, but had to pay a royalty to France Telecom. France
Telecom left the Indian market in December 2004.
HMTL was renamed Hutchison Essar Limited (HEL) in August 2005. In Delhi, Uttar Pradesh
(East), Rajasthan and Haryana, Essar Group was the major partner. But later Hutch took the
majority stake. By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison
Whampoa had acquired interests in six mobile telecommunications operators providing
service in 13 of India's 23 license areas and following the completion of the acquisition of
BPL Mobile that number increased to 16. In 2006, it announced the acquisition of a company
(Essar Spacetel - A subsidiary of Essar Group) that held license applications for the seven
remaining licence areas. Initially, the company grew its business in the largest wireless
markets in India in cities like Mumbai, Delhi and Kolkata. In these densely populated
urban areas it was able to establish a robust network, well-known brand and large distribution
network all vital to long-term success in India. Then it also targeted business users and
high-end post-paid customers which helped Hutchison Essar to consistently generate a higher
Average Revenue per User (ARPU) than its competitors. By adopting this focused growth
plan, it was able to establish leading positions in India's largest markets providing the
Bharti Airtel
Bharti Airtel Limited, commonly known as Airtel, is an Indian multinational
telecommunications Service Company headquartered in New Delhi, India. It operates in 20
countries across South Asia, Africa, and the Channel Islands. Airtel has a GSM network in all
countries in which it operates, providing 2G, 3G and 4G services depending upon the country
of operation. Airtel is the world's third largest mobile telecommunications company by
subscribers, with over 275 million subscribers across 20 countries as of July 2013. It is the
largest cellular service provider in India, with 192.22 million subscribers as of August 2013.
Airtel is the Second largest Asia-Pacific mobile operator by subscriber base, behind China
Mobile.
Bharti Airtel Limited
Type
: Public company
Industry
: Telecommunications
Founded
: 7 July 1995
Founders
Products
: Fixed line and mobile telephony, broadband and fixed-line internet services,
digital television and IPTV
Airtel is the largest provider of mobile telephony and second largest provider of fixed
telephony in India, and is also a provider of broadband and subscription television services. It
offers its telecom services under the "airtel" brand, and is headed by Sunil Bharti Mittal.
Bharti Airtel is the first Indian telecom service provider to achieve Cisco Gold Certification.
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.
Bharti Airtel added 5.10 lakh subscribers to take its base to 20.97 crore at the end of July,
2014. Its market share in India is highest with a value of 28.41%.
Airtel is credited with pioneering the business strategy of outsourcing all of its business
operations except marketing, sales and finance and building the 'minutes factory' model of
low cost and high volumes. The strategy has since been adopted by several operators. Its
3G
On 18 May 2010, the 3G spectrum auction was completed and Airtel paid the Indian
government 122.95 billion (US$2.0 billion) for spectrum in 13 circles, the most amount spent
by an operator in that auction. Airtel won 3G licences in 13 telecom circles of India: Delhi,
10
Mumbai, Andhra Pradesh, Karnataka, Tamil Nadu, Uttar Pradesh (West), Rajasthan, West
Bengal, Himachal Pradesh, Bihar, Assam, North East, and Jammu & Kashmir. Airtel also
operates 3G services in Maharashtra & Goa and Kolkata circles through an agreement with
Vodafone and in Gujarat through an agreement with Idea. This gives Airtel a 3G presence in
15 out of 22 circles in India. Airtel is fined by DoT 3.50 billion for not stopping offering 3G
Services through Roaming Pacts outside its Licensed Zones in Seven Circles.
On 20 September 2010, Bharti Airtel said that it had given contracts to Ericsson India, Nokia
Siemens Networks (NSN) and Huawei Technologies to set up infrastructure for providing 3G
services in the country. These vendors would plan, design, deploy and maintain 3GHSPA
(third-generation, high-speed packet access) networks in 13 telecom circles where the
company had won 3G licences. While Airtel awarded network contracts for seven 3G circles
to Ericsson India, NSN would manage networks in three circles. Chinese telecom equipment
vendor Huawei Technologies was introduced as the third partner for three circles.
Airtel launched 3G services in Bangalore on 24 January 2011. On 27 January 2011, Airtel
launched 3G in Chennai and Coimbatore in Tamil Nadu. On 27 July 2011, 3G services were
launched in Kerala's 3 largest cities Kochi, Kozhikode and Thiruvananthapuram.
Airtel 3G services are available in 200 cities through its network and in 500 cities through
intra-circle roaming arrangements with other operators. Airtel had about 5.4 million 3G
customers of which 4 million are 3G data customers as of September 2012.
4G
On 19 May 2010, the broadband wireless access (BWA) or 4G spectrum auction in India
ended. Airtel paid 33.1436 billion (US$540 million) for spectrum in 4 circles: Maharashtra
and Goa, Karnataka, Punjab and Kolkata. The company was allocated 20 MHz of BWA
spectrum in 2.3 GHz frequency band. Airtel's TD-LTE network is built and operated by ZTE
in Kolkata and Punjab, Huawei in Karnataka, and Nokia Siemens Networks in Maharashtra
and Goa. On 10 April 2012, Airtel launched 4G services through dongles and modems using
TD-LTE technology in Kolkata, becoming the first company in India to offer 4G services.
The Kolkata launch was followed by launches in Bangalore (7 May 2012), Pune (18 October
2012), and Chandigarh, Mohali and Panchkula (25 March 2013). Airtel obtained 4G licences
and spectrum in the telecom circles of Delhi, Haryana, Kerala and Mumbai after acquiring
11
Wireless Business Services Private Limited, a joint venture founded by Qualcomm, which
had won BWA spectrum in those circles in the 4G spectrum auction.
Airtel launched 4G services on mobile from February 2014. The first city to get the service
was Bangalore.
Airtel had 100,000 4G subscribers as of January 2014.
Wi-Fi
Airtel has plans to launch Wi-Fi services, initially in Delhi NCR, Mumbai and Bangalore.
Users can use the service by finding a hotspot and selecting the 'airtel WiFi Zone'.
Airtel Money
Airtel has started a new m Commerce platform called Airtel Money in collaboration with
Infosys and Smart Trust (now Giesecke & Devrient). The platform was launched on 5 April
2012, at Infosys' headquarters in Bangalore. Using Airtel Money, users can transfer money,
pay bills and perform other financial transactions directly on the mobile phone. It has an allIndia presence. Certain charges are levied per Airtel Money transaction. a mobile operation in
Rwanda.
2. LITERATURE REVIEW
1) Customer complaints and switching behavior towards mobile service providers in
Indian market
12
Mamta Bhatt and Atul Bamrara (NIFM Journal of Public Financial Management July
December 2011, Vol. 3)
Concluding some challenging findings like customers previous experience is important in
formation of complaining behavior intentions. Most customers are dissatisfied with their
service providers and are interested to try other suppliers. Individual variables and their
mixture have an effect on these behavior. Improved connectivity may become boon for
service providers to retain and introduce fresh customers.
2) Customer Responsiveness towards SMS Advertisements and its effectiveness in
present scenario
B S Hundal and Sourav Grover (Journal of Marketing and Communication (January April
2012, Vol. 7 Issue 3)
SMS marketing is being used all over regardless of size and popularity of business. Certain
group consider these sms nuisance while some welcome this new area of marketing looking
forward to information and discount coupons offered through the sms marketing.
3) CRM component in service Quality in telecom sector
S Lalitha and V M Prasad (Journal of Marketing and Communication January April 2012,
Vol. 7 Issue 3)
They observed that there are no major difference in customer perception about contacts,
availability, good relations as factors affecting customer satisfaction. Therefore service
providers must be attentive with these quality features along with technical quality
dimensions in providing services.
13
South Korea is incomparable. Samsung and LG lead the market as Nokia pays penalty of not
being a South Korean company. Innovation has helped these companies to come up in market
and now they are competing against each other.
5) Corporate Governance and Indian Telecom Industry
Ashish Joshi and Hitesh Shukla (Management Trends ISSN 0973-9203, March 2011, Vol. 8,
No 1)
Stated that in spite of some limitations like dependence on secondary sources, the study
helped them to pinpoint effectiveness of corporate governance practice in the telecom
companies. The study assessed the governance practices and process followed by Indian
corporate houses.
6) Impact of service quality on Customer Loyalty in telecom
B B Singla and Manvinder Singh Tondon (Indian Management Studies ISSN 0974-4355,
October 2012, Journal 16, Number 2)
Service quality is a must and crucial in improving organizations image and surviving in a
competitive market at both global as well as national level. The company needs to focus on
the gaps between expected and perceived service quality. Consumers are becoming more
demanding. Mobile telecommunication service sector has been experiencing the highest
growth rate in terms of subscribers and revenues.
14
area so that policies that make appropriate trade-offs between competition and efficiency can
be formulated.
8) Studies Related To Technology Upgradation In Telecom Sector
Ms. Pallav Gupta (World Telecommunication Development Report 2002, Vol. 5, No. 4)
Technologies of mobile telecommunications and internet are going to set the contours of
further technological progress in the current decade. The most recently initiatives aims at
convergence of voice and data received from multiple sources both web based and real time
video streams in mobile handsets and calling cards have virtual presence possible almost
everywhere overcoming the barriers of distance, topography and remoteness.
9) Studies On Investment Policy Of Telecom Sector
Jain and Chhokar (Journal of Service Research, March 1993)
The Athreyas Committees report may be viewed as an initiation of a process of examining
organizational options. Management incentives which would allow these organizations to
increase profitability and the structural mechanisms which would allow then to raise capital
from markets had been sketchily outlined.
11) The study on new service development process in telecom industry: the Telefonica
Case Study
Ouk Phavy, University essay from KTH/Industrial Management, [2013]
15
The purpose of this thesis is to help Telefonica, a Spanish integrated operator, reduce timeto-market of its new offer or product/service innovation by closely observing and
evaluating the current development process of its new offer. The research includes the
review of current literature on product and service characteristics and new product and
service development model, and participant observation conducted in relevant units
actively involved in development process.
12) Strategy of Mobile Communication System Providers in Cloud (Implementation
of cloud in telecom by Ericsson)
Madhu Sundaram; Kejvan Redjamand; University essay from Blekinge Tekniska for
Management [2012]
The telecom operators are experiencing low revenues due to reduction in voice calls and
SMS in their networks mainly driven by communication services like Skype, Google talk,
msn and other VOIP (voice over internet protocol) products. Instant messaging services
and social networking are also taking away the operators customers reducing them to
dumb pipes with the OTT (Over the Top) players like Google, Microsoft and other
content providers making profits at the expense of the operator.
13) The Impact of RFID Security Vulnerabilities on Supply Chain: Case Studies:
RFID companies in Iran
Hoopad Mobahat; University essay from Department of Business Administration,
Technology and Social Sciences [2011]
Every technology has advantages and disadvantages. RFID is a new technology when
compared with other technologies like networking and telecommunication technologies
and much more modern in Iran, with lots of unrevealed and not recognized features and
applications.
14) Customer Relations Influence And Its Relationship With Core Competence: A
Case Of Mobile Communication Service Providers
Emmanuel Mussa; University essay from Blekinge Tekniska for Management [2011]
16
Purpose: The purpose of this thesis is to study and show how a customer relation through
its strategic key elements is related to Core competence. Design and Methodology: This is
a case study approach involving multiple cases for mobile telecommunication service
providers from two countries namely, Tanzania and Zambia employing a qualitative
research
design.
16) A Study on Customer Satisfaction towards Vodafone Sim Card Special Reference
in Madurai City
Dr. T.N.R. Kavitha, IOSR Journal of Business and Management (IOSR-JBM) e-ISSN:
2278-487X, p-ISSN: 2319-7668, PP 29-32
The objective of this study to determine the consumer satisfaction on Vodafone service
17
providers services in Madurai district and to find out the consumers mentality towards
using the services. The research type used in this study is descriptive research. Data were
collected by survey method through structured questionnaire with both opened and closed
ended questions. For distribution of questionnaire to the consumer convenience sampling
method was used to select the customers and the survey was taken among those selected
users. After collecting the data from the respondents it was analyzed using Simple
Percentage and Chi-Square Tests method used for analyzing the collected data.
18
19
two folds: first, to identify the service quality factors. Second, describe research undertaken
to assess the quality of service provided by a university in Iran. The results show that gap
between student`s perceptions and student`s expectations exist.
22) The Relative Importance of Service Quality Dimensions: A Multisectoral Study
Sheetal & Harsh, Journal of Services Research, Vol. 4, No1, Pg. 93-116 (2004)
This study focuses on increasing competition from private players, changing & improving
technologies & continuous shifts in the regular environment which are the three forces
dominating the service sector. The results suggests that all service quality dimensions are
equally important and the nature of service does not seem to have a role in establishing an
order of importance of the dimensions.
3. RESEARCH METHODOLOGY
3.1 Objectives of the study
To measure & compare the level of consumers satisfaction towards various services
provided by Vodafone & Airtel.
20
Sampling Process
Population:
3.3 Limitations
The study is restricted to only Vadodara city.
The survey is only for Vodafone and Airtel.
21
respondents had given their opinion on a five point Likert Scale on all these statements.
Following paragraphs give the various statistical analyses carried out on the responses to
these 25 statements.
4.1.1 Factor Analysis:
Analysis of multivariate data is very important. Factor analysis is one of the multivariate
analytical techniques. Factor analysis is a generic name denoting a class of procedures
primarily used for data reduction and summarization. When a research is carried out, it may
contain a large number of variables. Most of these variables may be correlated. Factor
analysis reduces a large number of variables to a small number of factors. This factor conveys
all essential information about the original variables.
Determination of the method of Factor Analysis:
To carry out the factor analysis there are about 6 to 7 methods available, out of which, two
methods are generally used: (1) Principal Component Analysis, and (2) Common Factor
Analysis. An appropriate method is to be selected for the analysis. If, however, the number of
variables is large (greater than 15) both methods result in similar solutions. Since, the number
of variables here are 25, either of the two methods can safely be used. From these two
methods, Principal Component Analysis method is selected to carry out Factor Analysis, as
is usually done by different analysts.
Appropriateness of Factor Analysis and number of Factors:
Decision for carrying out Factor Analysis is wholly dependent upon answers to following two
questions:
1
The answer to the first question is given by (1) Bartletts test of sphericity and (2) KaiserMeyer-Olkin (KMO) measures of sampling adequacy. Bartletts test of sphericity is used to
test the null hypothesis that variables are uncorrelated in the population. The second is an
index to examine the appropriateness of factor analysis. Generally, the values of KMO
measure of sampling adequacy, falling between 0.5 to1.0 indicate that factor analysis is
appropriate. Values below 0.5 indicate inappropriateness of the analysis.
22
Many procedures have been suggested to answer the second question. They include (1) Priori
determination, (2) Determination on the basis of Eigenvalues, (3) Determination on the basis
of Scree Plot etc.
Factor Analysis using Principal Component Analysis method:
Factor analysis was carried out on all the responses to 25 statements using Principal
Components Analysis method. The results showed the approximate Chi-Square value of
819.314 at 300 degree of freedom under the Bartletts Test of Sphericity, which is significant
at the 0.05 level. The null hypothesis (that the variables are uncorrelated in the population, or
the correlation matrix is an identity matrix) is, therefore, rejected. The alternate hypothesis
that the variables in the population are correlated is accepted. The Kaiser-Meyer-Olkin
Measure of Sampling Adequacy was 0.631. Thus, factor analysis may be considered
appropriate for analyzing the data.
Further analysis, therefore was carried out. In the final results, total nine factors, out of 25
have Eigenvalues more than 1.00. As per the approach based on Eigenvalues, only factors
with eigenvalues greater than 1.00 are to be retained. Hence, total nine factors are to be
considered in this data. The results also show that these nine factors account for 68.767
percent of the total variance.
An important output from factor analysis is the factor matrix, also called the factor pattern
matrix. The factor matrix contains the coefficients used to express the standardized variables
in terms of the factors. These coefficients, factor loadings, represent the correlation between
the factors and the variables. A coefficient with a large absolute variable indicates that the
factor and the variable are closely related. Hence, to facilitate interpretation of factors, it is
necessary to identify the variables that have large loadings on the same factor. In the factor
matrix, the highest loading of 0.869 was found for statement two on factor 1. It was decided
to consider factor loading of 0.500 as a cut off point for a statement to be associated with a
factor. When factor matrix of the above one factor was referred to, and a cut off value of
loading of 0.500 was considered; eight statements were associated with factor 1, five
statements were associated with factor 2 and four statements were associated with factor 3
and two statements were associated with factor 4 and 5, three statements were associated
with factor 6 and 7, three statements were associated with factor 8 and 9.
23
Although, the initial or un-rotated factor matrix indicates the relationship between the factors
and individual variables, it rarely results in factors that can be interpreted, because the factors
are correlated with many variables. The factor matrix, therefore, is transformed into a simpler
one through rotation. It is easier to interpret this rotated factor matrix. Again, many methods
are available for rotation. Most commonly used method for rotation is the varimax
procedure. Other two popular methods are direct oblimin and quartimax.
Table 4.1 represents Factor Matrix without rotation and Table 4.2 represents Factor Matrix
with Varimax rotation. These two tables are representing the factor loadings. These factor
loadings represent the correlation between the factors and the variables. Analysis based on
these tables is given after these two tables.
Statement 1
24
.737
.064
.304
.069
-.159
-.208
-.115
-.151
-.024
Statement 2
.869
-.046
.013
.024
-.055
-.103
.060
.053
.091
Statement 3
.799
.010
-.056
-.083
.001
-.070
-.215
.019
-.003
Statement 4
.699
-.069
-.090
.064
-.313
-.062
-.131
-.094
-.197
Statement 5
.709
-.194
.101
-.069
.031
.102
-.098
-.004
.036
Statement 6
.592
.133
.123
.229
.216
.254
-.205
-.111
.047
Statement 7
.083
.053
-.251
.047
-.451
-.125
-.184
.380
.180
Statement 8
.649
-.077
-.242
-.266
-.064
.081
.038
-.141
.015
Statement 9
.484
-.123
-.524
-.193
.215
.112
.320
.012
.046
Statement 10
-.057
.114
.523
.252
.334
.052
-.002
-.416
-.057
Statement 11
.643
-.033
-.179
.120
.326
.188
.393
-.066
.004
Statement 12
.146
.021
-.039
.320
.355
.016
.266
.542
-.496
Statement 13
.255
.175
.176
-.164
-.423
.073
.188
.088
-.250
Statement 14
.133
.252
.252
.385
-.207
.220
.078
.482
.194
Statement 15
.201
.152
.432
.336
-.158
.511
.002
-.057
-.146
Statement 16
.045
.015
.522
.134
-.266
.008
.598
-.117
.131
Statement 17
.034
.283
.419
.709
.020
.095
.117
.138
.018
Statement 18
.118
.187
.556
-.518
.098
.099
-.011
.203
.024
Statement 19
.002
.668
-.169
.149
-.153
.476
-.171
-.074
.139
Statement 20
.072
.805
-.123
.196
.005
.218
.047
-.070
.159
Statement 21
.106
-.049
.476
.009
.335
.251
-.364
.167
-.039
Statement 22
.064
.571
.115
.066
.015
.194
-.245
.176
-.179
Statement 23
.158
-.197
.090
.060
.338
-.447
.019
.199
.625
Statement 24
.147
.691
-.155
-.087
.300
-.329
-.072
.152
.024
Statement 25
.011
.631
.190
.144
-.138
.396
.079
.051
.326
Statement 1
Statement 2
Statement 3
Statement 4
Statement 5
Statement 6
Statement 7
Statement 8
Statement 9
Statement 10
Statement 11
Statement 12
Statement 13
Statement 14
Statement 15
Statement 16
Statement 17
Statement 18
Statement 19
25
.797
.835
.807
.750
.705
.587
.099
.617
.347
-.009
.507
.023
.245
.071
.285
.005
-.021
.086
-.024
-.082
-.019
-.076
.008
.199
.070
.002
-.022
-.078
.001
-.015
-.079
-.045
.173
-.249
.145
-.153
-.016
-.174
-.013
.003
.013
-.047
-.026
.358
.132
-.050
-.072
.097
.098
-.056
.038
.522
-.129
.033
-.017
.005
.831
-.244
.137
.076
-.030
.122
.008
-.133
.406
.747
-.281
.551
.080
-.060
-.237
-.593
-.095
.070
-.094
.031
.071
.027
.071
-.147
.127
-.006
-.091
.048
-.098
.028
-.113
-.060
.255
.095
-.096
.138
.861
.812
-.011
.076
-.102
-.089
-.164
.040
.299
-.668
-.095
-.095
.732
.237
.034
-.199
-.239
.103
.166
.013
.096
-.038
.185
.156
-.143
.031
-.039
-.132
-.033
-.029
-.033
.123
.163
-.014
.324
.274
.348
.821
.110
.051
-.096
-.045
.104
.027
-.008
.042
.113
-.022
-.139
.105
-.016
.290
.916
.063
.370
.125
.001
-.105
.018
-.125
.021
.151
.056
-.237
.068
.078
.053
-.094
.058
.056
.102
-.052
-.403
.138
.067
.008
-.084
.027
-.229
Statement 20
Statement 21
Statement 22
Statement 23
Statement 24
Statement 25
.004
.132
.115
.120
.086
.010
-.446
.275
.567
-.025
-.767
.822
.755
.124
-.249
-.159
.234
-.010
.051
-.265
-.096
-.005
-.004
.093
-.017
.372
-.015
.016
.144
-.040
.053
.322
-.005
-.054
-.042
-.006
.089
-.306
-.255
.053
-.157
.157
-.007
.213
.186
-.015
.148
-.069
-.056
.128
-.056
.880
.197
.175
Extraction Method: Principal Component Analysis, Rotation Method: Varimax with Kaiser Normalization.
As discussed earlier, a coefficient with a large absolute variable indicates that the factor and
the variable are closely related. Hence, to facilitate interpretation of factors, it is necessary to
identify the variables that have large loadings on the same factor. It was decided that loading
of absolute value of 0.500 should be considered as a cut off point for a statement to be
associated with a factor. Factor matrices of the five factors obtained under above referred two
different methods were referred to, and a cut off value of loading of 0.500 was finally
considered. Following table shows the number of statements associated with different five
factors under two different methods:
Table 4.3: Variables (statements) associated with various factors under different
methods.
Sr
Rotatio
Method
Factor
1
Without
rotation
1,2,3,4,5,6
,8,9,11
11,20,22,
24,25
10,16,1
8,21
17
Varimax
rotation
1,2,3,4,5,6
,8
16,19,22,
25
20,21
11,1
2
15,1
9
16
12,
23
7,10
13
,1
4
o
1
17,1
8
14
9,1
2,1
5
23,
24
As discussed earlier, although, the initial or un-rotated factor matrix indicates the relationship
between the factors and individual variables, it seldom results in factors that can be
interpreted, because the factors are correlated with many variables. The factor matrix,
therefore, is transformed into a simpler one through rotation. It is easier to interpret this
rotated factor matrix. It can also be seen that from the above table that more variables get
associated with the factors when the factor matrix is rotated. All the two rotation methods are
26
giving the same variables associated with each matrix. So, the results of this method are
considered for interpretations of factors.
Factor Number 1:
Statements number 1, 2, 3, 4, 5, 6, and 8 are associated with this factor. These statements are
extracted from the Questionnaire and reproduced below:
The seven statements stated above reflect dimensions, regarding the Store. The data can be
summarized by stating that the customers satisfaction depends on the store performance and
its ambience.
Factor Number 2:
Statements number 16, 19, 22, and 25 are associated with this factor. These statements are
extracted from the Questionnaire and reproduced below:
Statement Number 19: It is not realistic for customers to expect prompt service.
27
Statement Number 22: Customer has to wait in order to get personal attention.
The four statements stated above reflect the dimension, of time. The data, therefore, can
again be summarized by stating that the customers satisfaction is associated with the waiting
period and statement 25th is related to it, if there are more no. of stores, then the waiting
period can be reduced.
Factor Number 3:
Statements number 20, and 21 are associated with this factor. These statements are extracted
from the Questionnaire and reproduced below:
Statement Number 21: It is ok if the Employees are too busy in personal activities to
respond to their customers.
The two statements stated above reflect dimension of personal attention. The data,
therefore, can again be summarised by stating that the customers satisfaction appear to
associate with immediate attention by the employees.
Factor Number 4:
Statements number 11, and 12 are associated with this factor. These statements are extracted
from the Questionnaire and reproduced below:
The two statements stated above reflect the dimension, of trust and reliability. The data,
therefore, can again be summarised by stating that the customers satisfaction is associated
with the trust and reliability of service provider.
Factor Number 5:
28
Statements number 17 and 18 are associated with this factor. These statements are extracted
from the Questionnaire and reproduced below:
Statement Number 18: They do not tell the customer exactly when the service will be
performed.
The two statements stated above reflect the dimension of exact service time. The data,
therefore, can again be summarised by stating that the customers satisfaction is associated
with particular time when service will be provided.
Factor Number 6:
Statements number 7 and 10 are associated with this factor. These statements are extracted
from the Questionnaire and reproduced below:
The two statements stated above reflect the dimension of the store dependability. The data,
therefore, can again be summarised by stating that the customers satisfaction is associated
with physical ambiance and dependability.
Factor Number 7:
Statements number 13 and 14 are associated with this factor. These statements are extracted
from the Questionnaire and reproduced below:
The two statements stated above reflect the dimension of customer satisfaction. The data,
therefore, can again be summarised by stating that the customers satisfaction is associated
with any physical transaction and their datas privacy.
Factor Number 8:
29
Statements number 9, 12 and 15 are associated with this factor. These statements are
extracted from the Questionnaire and reproduced below:
Statement Number 9: Employees are sympathetic and reassuring, when customer has
problem.
The three statements stated above reflect the dimension of employee behavior. The data,
therefore, can again be summarised by stating that the customers satisfaction is associated
with politeness and sympathetic behavior of employees.
Factor Number 9:
Statements number 23 and 24 are associated with this factor. These statements are extracted
from the Questionnaire and reproduced below:
Statement Number 24: It is unrealistic to expect the store to have their customers best
interests at heart.
The two statements stated above reflect the dimension of customer needs. The data,
therefore, can again be summarised by stating that the customers satisfaction is associated
with the fulfilment of their needs.
The nine factors - depending upon the associated statements and inferences can be named as
given in the following table:
Table 4.4: Factors and associated names
Sr.
Factor
No.
1
Factor 1
Store
Factor 2
Time
Factor 3
Personal attention
30
Factor 4
Factor 5
Factor 6
Store dependability
Factor 7
Customer satisfaction
Factor 8
Employee behavior
Factor 9
Customer needs
Analysis of multivariate data is very important. Factor analysis is one of the multivariate
analytical techniques. Factor analysis is a generic name denoting a class of procedures
primarily used for data reduction and summarization. When a research is carried out, it may
contain a large number of variables. Most of these variables may be correlated. Factor
analysis reduces a large number of variables to a small number of factors. This factor conveys
all essential information about the original variables.
Determination of the method of Factor Analysis:
To carry out the factor analysis there are about 6 to 7 methods available, out of which, two
methods are generally used: (1) Principal Component Analysis, and (2) Common Factor
Analysis. An appropriate method is to be selected for the analysis. If, however, the number of
variables is large (greater than 15) both methods result in similar solutions. Since, the number
31
of variables here are 25, either of the two methods can safely be used. From these two
methods, Principal Component Analysis method is selected to carry out Factor Analysis, as
is usually done by different analysts.
Appropriateness of Factor Analysis and number of Factors:
Decision for carrying out Factor Analysis is wholly dependent upon answers to following two
questions:
1
The answer to the first question is given by (1) Bartletts test of sphericity and (2) KaiserMeyer-Olkin (KMO) measures of sampling adequacy. Bartletts test of sphericity is used to
test the null hypothesis that variables are uncorrelated in the population. The second is an
index to examine the appropriateness of factor analysis. Generally, the values of KMO
measure of sampling adequacy, falling between 0.5 to1.0 indicate that factor analysis is
appropriate. Values below 0.5 indicate inappropriateness of the analysis.
Many procedures have been suggested to answer the second question. They include (1) Priori
determination, (2) Determination on the basis of Eigenvalues, (3) Determination on the basis
of Scree Plot etc.
Factor Analysis using Principal Component Analysis method:
Factor analysis was carried out on all the responses to 25 statements using Principal
Components Analysis method. The results showed the approximate Chi-Square value of
1.334E3 at 300 degree of freedom under the Bartletts Test of Sphericity, which is significant
at the 0.05 level. The null hypothesis (that the variables are uncorrelated in the population, or
the correlation matrix is an identity matrix) is, therefore, rejected. The alternate hypothesis
that the variables in the population are correlated is accepted. The Kaiser-Meyer-Olkin
Measure of Sampling Adequacy was 0.786. Thus, factor analysis may be considered
appropriate for analyzing the data.
Further analysis, therefore was carried out. In the final results, total seven factors, out of 25
have Eigenvalues more than 1.00. As per the approach based on Eigenvalues, only factors
with eigenvalues greater than 1.00 are to be retained. Hence, total nine factors are to be
32
considered in this data. The results also show that these seven factors account for 67.080
percent of the total variance.
An important output from factor analysis is the factor matrix, also called the factor pattern
matrix. The factor matrix contains the coefficients used to express the standardized variables
in terms of the factors. These coefficients, factor loadings, represent the correlation between
the factors and the variables. A coefficient with a large absolute variable indicates that the
factor and the variable are closely related. Hence, to facilitate interpretation of factors, it is
necessary to identify the variables that have large loadings on the same factor. In the factor
matrix, the highest loading of 0.876 was found for statement one on factor 1. It was decided
to consider factor loading of 0.500 as a cut off point for a statement to be associated with a
factor. When cut off value of loading of 0.500 was considered; sixteen statements were
associated with factor 1, only one statement was associated with factor 2 and three
statements were associated with factor 3 and three statements were associated with factor
4 and 5, two statements were associated with factor 6 and 7.
Although, the initial or un-rotated factor matrix indicates the relationship between the factors
and individual variables, it rarely results in factors that can be interpreted, because the factors
are correlated with many variables. The factor matrix, therefore, is transformed into a simpler
one through rotation. It is easier to interpret this rotated factor matrix. Again, many methods
are available for rotation. Most commonly used method for rotation is the varimax
procedure. Other two popular methods are direct oblimin and quartimax.
Table 4.5 represents Factor Matrix without rotation and Table 4.6 represents Factor Matrix
with Varimax rotation. These two tables are representing the factor loadings. These factor
loadings represent the correlation between the factors and the variables. Analysis based on
these tables is given after these two tables.
33
4
.006
-.018
-.090
-.067
.159
-.250
.554
.259
-.125
.608
.166
.030
-.163
.114
-.182
-.131
.213
-.150
.046
.181
-.125
-.396
.313
-.116
-.279
5
-.038
.102
.048
-.156
-.219
.055
-.279
-.232
.275
.285
.374
.305
-.061
-.183
.185
.167
.017
-.293
-.125
.520
-.070
.303
.179
.194
-.204
6
.055
-.081
-.288
.200
.072
-.429
-.265
-.102
.052
.444
-.225
.027
.146
-.062
.098
-.085
.061
.048
.193
.070
-.062
.041
.038
.124
.592
7
-.006
-.054
-.195
.072
-.087
-.095
.198
-.328
.280
-.082
.372
-.458
.223
-.079
.118
-.115
-.083
-.206
.087
-.242
.330
-.042
.388
.138
-.060
6
.117
.114
7
.127
.148
Statement 26
Statement 27
34
1
.769
.249
5
-.016
-.155
Statement 28
.001
.101
Statement 29
.702
.149
Statement 30
.431
-.181
Statement 31
.421
.272
Statement 32
.333
-.323
Statement 33
.149
.305
Statement 34
-.188
-.048
Statement 35
.078
.093
Statement 36
.414
-.101
Statement 37
.471
.282
Statement 38
.777
.158
Statement 39
.753
.021
Statement 40
.732
.267
Statement 41
.577
.490
Statement 42
.629
.275
Statement 43
.537
.368
Statement 44
.553
.460
Statement 45
-.084
-.201
Statement 46
.639
.007
Statement 47
.207
.776
Statement 48
-.023
.525
Statement 49
.321
.773
Statement 50
.056
-.269
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
.737
-.070
.634
.209
.108
.488
.308
.043
.023
.362
.091
.114
.167
.359
.196
.223
.184
-.155
-.123
-.020
-.079
-.042
.000
.049
-.056
-.080
.281
.535
.211
-.183
.031
.372
.016
-.070
.201
-.043
.114
.194
-.016
.032
.005
.125
-.056
.357
.089
-.744
-.021
-.052
-.120
.129
-.194
-.215
-.051
.199
.262
.513
-.079
.066
.146
.112
.063
-.330
-.290
.734
-.060
.054
-.351
-.161
-.053
-.126
.061
.202
-.400
.235
.233
.036
.806
.041
.108
.002
.029
-.002
-.018
.272
-.018
.268
.131
-.145
-.130
.443
.158
.055
-.201
.183
-.087
.097
.091
.428
-.716
.021
-.499
.206
-.119
.304
-.192
.040
.212
.236
.136
-.078
-.124
.035
-.160
.042
-.086
As discussed earlier, a coefficient with a large absolute variable indicates that the factor and
the variable are closely related. Hence, to facilitate interpretation of factors, it is necessary to
identify the variables that have large loadings on the same factor. It was decided that loading
of absolute value of 0.500 should be considered as a cut off point for a statement to be
associated with a factor. Factor matrices of the five factors obtained under above referred two
different methods were referred to, and a cut off value of loading of 0.500 was finally
considered. Following table shows the number of statements associated with different five
factors under two different methods:
Table 4.7 Variables (statements) associated with various factors under different
methods.
Sr.
No
Rotation
Method
Without
rotation
35
Factor
1
1,2,4,6,8,12,13
,14,15,16,17,1
8,19,21,22,24
2
11
3
3,5,9
4
7,10
5
20
6
25
7
23
Varimax
rotation
1,2,3,4
6,22,23,19
5,8,16,18,
21
7,17,25
12,20
10,14,24
9,11,
13,15
As discussed earlier, although, the initial or un-rotated factor matrix indicates the relationship
between the factors and individual variables, it seldom results in factors that can be
interpreted, because the factors are correlated with many variables. The factor matrix,
therefore, is transformed into a simpler one through rotation. It is easier to interpret this
rotated factor matrix. It can also be seen that from the above table that more variables get
associated with the factors when the factor matrix is rotated. All the two rotation methods are
giving the same variables associated with each matrix. So, the results of this method are
considered for interpretations of factors.
Statement Number 1: Store should have all the equipments in working conditions.
The four statements stated above reflect dimensions, of store equipments. The data can be
summarised by stating that the customers satisfaction depends on the equipments in the
store.
Factor Number 2:
36
Statements number 6, 19, 22, and 23 are associated with this factor. These statements are
extracted from the Questionnaire and reproduced below:
Statement Number 6: Separate counters should be provided for recharge and problem
solving.
Statement Number 19: It should be realistic for customers to expect prompt service.
Statement Number 22: Customer should not be kept waiting in order to get personal
attention.
The four statements stated above reflect the dimension, of customer satisfaction. The data,
therefore, can again be summarised by stating that the customers satisfaction is associated
with need recognition and need fulfilment of customers.
Factor Number 3:
Statements number 5, 8, 16, 18, and 21 are associated with this factor. These statements are
extracted from the Questionnaire and reproduced below:
Statement Number 16: Employees should provide personal attention to their customers.
Statement Number 18: They should tell the customer exactly when the service will be
performed.
Statement Number 21: Employees should not be too busy in personal activities to respond
to their customers.
37
The five statements stated above reflect dimension of employee behavior. The data,
therefore, can again be summarised by stating that the customers satisfaction appear to
associate with behavior of the employees of the store.
Factor Number 4:
Statements number 7, 17, and 25 are associated with this factor. These statements are
extracted from the Questionnaire and reproduced below:
Statement Number 25: There must adequate no. of stores in the city.
The three statements stated above reflect the dimension, of store. The data, therefore, can
again be summarised by stating that the customers satisfaction is associated with the
convenient operating hours, ambience and no. of stores in city.
Factor Number 5:
Statements number 12 and 20 are associated with this factor. These statements are extracted
from the Questionnaire and reproduced below:
The two statements stated above reflect the dimension of employees dependability. The
data, therefore, can again be summarised by stating that the customers satisfaction is
associated with faithful behavior of employees.
Factor Number 6:
Statements number 10, 14 and 24 are associated with this factor. These statements are
extracted from the Questionnaire and reproduced below:
Statement Number 24: The store should have their customers best interests at heart.
38
The three statements stated above reflect the dimension of store dependability. The data,
therefore, can again be summarised by stating that the customers satisfaction is associated
with confidentiality of their datas and dependability of store.
Factor Number 7:
Statements number 9, 11, 13 and 15 are associated with this factor. These statements are
extracted from the Questionnaire and reproduced below:
The four statements stated above reflect the dimension of problem solving. The data,
therefore, can again be summarised by stating that the customers satisfaction is associated
with the polite behavior and problem solving nature of the employees.
The seven factors - depending upon the associated statements and inferences can be named
as given in the following table:
Factor
No.
1
Factor 1
Store equipments
Factor 2
Customer satisfaction
Factor 3
Employee behavior
Factor 4
Store
Factor 5
Employee dependability
39
Factor 6
Store dependability
Factor 7
Problem solving
40
Decision for carrying out Factor Analysis is wholly dependent upon answers to following two
questions:
1.) Is factor analysis appropriate for the data?, and
2.) How many factors should be extracted?
The answer to the first question is given by (1) Bartletts test of sphericity and (2) KaiserMeyer-Olkin (KMO) measures of sampling adequacy. Bartletts test of sphericity is used to
test the null hypothesis that variables are uncorrelated in the population. The second is an
index to examine the appropriateness of factor analysis. Generally, the values of KMO
measure of sampling adequacy, falling between 0.5 to1.0 indicate that factor analysis is
appropriate. Values below 0.5 indicate inappropriateness of the analysis.
Many procedures have been suggested to answer the second question. They include (1) Priori
determination, (2) Determination on the basis of Eigenvalues, (3) Determination on the basis
of Scree Plot etc.
Factor Analysis using Principal Component Analysis method:
Factor analysis was carried out on all the responses to 25 statements using Principal
Components Analysis method. The results showed the approximate Chi-Square value of 325
at 300 degree of freedom under the Bartletts Test of Sphericity, which is significant at the
0.05 level. The null hypothesis (that the variables are uncorrelated in the population, or the
correlation matrix is an identity matrix) is, therefore, rejected. The alternate hypothesis that
the variables in the population are correlated is accepted. The Kaiser-Meyer-Olkin Measure
of Sampling Adequacy was 0.788. Thus, factor analysis may be considered appropriate for
analyzing the data.
Further analysis, therefore was carried out. In the final results, total seven factors, out of 25
have Eigenvalues more than 1.00. As per the approach based on Eigenvalues, only factors
with eigenvalues greater than 1.00 are to be retained. Hence, total seven factors are to be
considered in this data. The results also show that these seven factors account for 67.957
percent of the total variance.
An important output from factor analysis is the factor matrix, also called the factor pattern
matrix. The factor matrix contains the coefficients used to express the standardized variables
in terms of the factors. These coefficients, factor loadings, represent the correlation between
41
the factors and the variables. A coefficient with a large absolute variable indicates that the
factor and the variable are closely related. Hence, to facilitate interpretation of factors, it is
necessary to identify the variables that have large loadings on the same factor. In the factor
matrix, the highest loading of 0.884 was found for statement one on factor 1. It was decided
to consider factor loading of 0.500 as a cut off point for a statement to be associated with a
factor. When cut off value of loading of 0.500 was considered; sixteen statements were
associated with factor 1, three statements were associated with factor 2 and 3 and four
statements were associated with factor 4 and 5 and two statements were associated with
factor 6 and 7.
Although, the initial or un-rotated factor matrix indicates the relationship between the factors
and individual variables, it rarely results in factors that can be interpreted, because the factors
are correlated with many variables. The factor matrix, therefore, is transformed into a simpler
one through rotation. It is easier to interpret this rotated factor matrix. Again, many methods
are available for rotation. Most commonly used method for rotation is the varimax
procedure. Other two popular methods are direct oblimin and quartimax.
Table 4.9 represents Factor Matrix without rotation and Table 4.10 represents Factor Matrix
with Varimax rotation. These two tables are representing the factor loadings. These factor
loadings represent the correlation between the factors and the variables. Analysis based on
these tables is given after these two tables.
1
Statement 1
Statement 2
Statement 3
Statement 4
Statement 5
Statement 6
Statement 7
Statement 8
Statement 9
Statement 10
Statement 11
Statement 12
Statement 13
42
.884
.694
.238
.643
.563
.541
.279
.557
-.203
.225
.280
.644
.714
Component Matrix
Component
2
3
.111
-.046
-.372
.059
-.276
.584
.226
-.202
-.081
.213
.294
.243
.139
-.404
-.356
-.133
-.221
.543
-.283
-.414
.356
.192
.184
.132
.220
.059
4
-.019
-.077
.405
-.136
.528
.105
.492
.277
.184
.170
.148
-.037
-.228
5
-.007
.080
-.152
-.047
-.034
-.114
.005
-.184
.342
.457
.440
.167
-.002
6
-.115
.168
.085
.071
-.071
-.312
.027
.001
-.220
-.120
.258
-.273
.196
7
.035
-.120
-.122
-.053
-.168
.172
.377
-.253
.312
-.228
.354
-.414
.093
Statement 14
.711
.385
Statement 15
.723
.249
Statement 16
.815
.000
Statement 17
.773
.116
Statement 18
.739
-.120
Statement 19
.800
-.188
Statement 20
-.268
.428
Statement 21
.499
.349
Statement 22
.539
-.256
Statement 23
.342
-.554
Statement 24
.705
-.346
Statement 25
-.142
.151
Extraction Method: Principal Component Analysis.
-.233
.198
.165
-.155
.004
-.069
-.032
.055
.201
-.234
-.030
.244
.131
-.223
-.097
.066
.078
.063
.059
.080
-.501
.031
-.307
-.004
-.089
.118
.030
.139
-.272
.026
.496
-.162
-.002
.400
.123
.335
-.129
.036
-.260
.111
.004
.181
-.356
.322
-.165
.053
.017
.611
-.026
.038
.034
-.145
.079
-.069
-.203
.183
.048
.340
.144
-.366
6
-.089
-.044
.282
-.290
.043
.183
-.058
-.295
.779
-.160
.421
-.115
-.048
-.286
.086
.102
-.220
-.116
-.146
.111
-.060
.129
.242
.067
-.004
7
-.163
.099
.109
.001
-.025
-.285
-.186
-.129
-.039
.004
.357
-.001
.125
-.168
.099
-.231
.120
-.211
.067
.075
.169
-.190
-.084
-.106
.837
5
.137
-.153
-.084
.133
.193
.156
.745
.030
-.078
.065
.429
-.191
.080
.352
-.017
-.074
.189
.117
.093
.018
.370
-.448
.132
-.159
-.091
As discussed earlier, a coefficient with a large absolute variable indicates that the factor and
the variable are closely related. Hence, to facilitate interpretation of factors, it is necessary to
identify the variables that have large loadings on the same factor. It was decided that loading
of absolute value of 0.500 should be considered as a cut off point for a statement to be
associated with a factor. Factor matrices of the five factors obtained under above referred two
43
different methods were referred to, and a cut off value of loading of 0.500 was finally
considered. Following table shows the number of statements associated with different five
factors under two different methods:
Table 4.11 Variables (statements) associated with various factors under different
methods.
Sr.
No
Rotation
Method
Factor
Without
rotation
1,2,4,5,6,8,12,13 24
,14,15,16,17,18,
19,21,22
3,9
7,23
10,20
25
Varimax
rotation
1,2,3,4,10,22
12,15,19
18,20,
21
6,11,1
3
9,23, 7,17,25
24
5,8,14,
16
7
11
As discussed earlier, although, the initial or un-rotated factor matrix indicates the relationship
between the factors and individual variables, it seldom results in factors that can be
interpreted, because the factors are correlated with many variables. The factor matrix,
therefore, is transformed into a simpler one through rotation. It is easier to interpret this
rotated factor matrix. It can also be seen that from the above table that more variables get
associated with the factors when the factor matrix is rotated. All the two rotation methods are
giving the same variables associated with each matrix. So, the results of this method are
considered for interpretations of factors.
Factor Number 1:
44
Statements number 1, 2, 3, 4, 10 and 22 are associated with this factor. These statements are
extracted from the Questionnaire and reproduced below:
Statement Number 22: Customer has to wait in order to get personal attention.
The six statements stated above reflect dimensions, of store. The data can be summarised by
stating that the customers satisfaction depends on the equipments of the store.
Factor Number 2:
Statements number 5, 8, 14, and 16 are associated with this factor. These statements are
extracted from the Questionnaire and reproduced below:
Factor Number 3:
45
Statements number 12, 15 and 19 are associated with this factor. These statements are
extracted from the Questionnaire and reproduced below:
Statement Number 19: It is not realistic for customers to expect prompt service.
The three statements stated above reflect dimension of employee behavior. The data,
therefore, can again be summarised by stating that the customers satisfaction appear to
associate with behavior of the employees.
Factor Number 4:
Statements number 18, 20 and 21 are associated with this factor. These statements are
extracted from the Questionnaire and reproduced below:
Statement Number 18: They do not tell the customer exactly when the service will be
performed.
Statement Number 21: It is ok if the Employees are too busy in personal activities to
respond to their customers.
The three statements stated above reflect the dimension, of time. The data, therefore, can
again be summarised by stating that the customers satisfaction is associated with the waiting
time factor.
Factor Number 5:
Statements number 6, 11 and 13 are associated with this factor. These statements are
extracted from the Questionnaire and reproduced below:
46
The three statements stated above reflect the dimension of customer satisfaction. The data,
therefore, can again be summarised by stating that the customers satisfaction is associated
with accuracy of the records and problem solving ability of the store.
Factor Number 6:
Statements number 9, 23 and 24 are associated with this factor. These statements are
extracted from the Questionnaire and reproduced below:
Statement Number 9: Employees are sympathetic and reassuring, when customer has
problem.
Statement Number 24: It is unrealistic to expect the store to have their customers best
interests at heart.
The three statements stated above reflect the dimension of willingness to help. The data,
therefore, can again be summarised by stating that the customers satisfaction is associated
with the sympathetic nature and to have customers best interest at heart.
Factor Number 7:
Statements number 7, 17 and 25 are associated with this factor. These statements are
extracted from the Questionnaire and reproduced below:
The three statements stated above reflect the dimension of physical location of store. The
data, therefore, can again be summarised by stating that the customers satisfaction is
associated with the no. and surrounding of stores.
The seven factors - depending upon the associated statements and inferences can be named
as given in the following table:
47
Factor
Factor 1
Store
Factor 2
Employees
Factor 3
Employee behavior
Factor 4
Time
Factor 5
Customer satisfaction
Factor 6
Willingness to help
Factor 7
No analysis has been carried out for remaining one statements viz. 17 as they neither have
high loadings nor low loadings. Hence, they can neither be considered as associated nor as
disassociated ones.
48
49
Measure of Sampling Adequacy was 0.513. Thus, factor analysis may be considered
appropriate for analyzing the data.
Further analysis, therefore was carried out. In the final results, total eight factors, out of 25
have Eigenvalues more than 1.00. As per the approach based on Eigenvalues, only factors
with eigenvalues greater than 1.00 are to be retained. Hence, total eight factors are to be
considered in this data. The results also show that these eight factors account for 67.610
percent of the total variance.
An important output from factor analysis is the factor matrix, also called the factor pattern
matrix. The factor matrix contains the coefficients used to express the standardised variables
in terms of the factors. These coefficients, factor loadings, represent the correlation between
the factors and the variables. A coefficient with a large absolute variable indicates that the
factor and the variable are closely related. Hence, to facilitate interpretation of factors, it is
necessary to identify the variables that have large loadings on the same factor. In the factor
matrix, the highest loading of 0.719 was found for statement twenty on factor 5. It was
decided to consider factor loading of 0.500 as a cut off point for a statement to be associated
with a factor. When cut off value of loading of 0.500 was considered; eight statements were
associated with factor 1, three statements were associated with factor 2 and two statements
were associated with factor 3 and three statements were associated with factor 4 and five
statements were associated with factor 5 and 6 and three statements were associated with
factor 7 and 8.
Although, the initial or un-rotated factor matrix indicates the relationship between the factors
and individual variables, it rarely results in factors that can be interpreted, because the factors
are correlated with many variables. The factor matrix, therefore, is transformed into a simpler
one through rotation. It is easier to interpret this rotated factor matrix. Again, many methods
are available for rotation. Most commonly used method for rotation is the varimax
procedure. Other two popular methods are direct oblimin and quartimax.
Table 4.13 represents Factor Matrix without rotation and Table 4.14 represents Factor Matrix
with Varimax rotation. These two tables are representing the factor loadings. These factor
loadings represent the correlation between the factors and the variables. Analysis based on
these tables is given after these two tables.
50
Statement 26
Statement 27
Statement 28
Statement 29
Statement 30
Statement 31
Statement 32
Statement 33
Statement 34
Statement 35
Statement 36
Statement 37
Statement 38
Statement 39
Statement 40
Statement 41
Statement 42
Statement 43
Statement 44
Statement 45
Statement 46
Statement 47
Statement 48
Statement 49
1
.028
.286
.704
.556
.327
.188
.314
.301
.459
.604
.333
.261
.475
.562
.665
.501
.348
-.053
.147
.309
.232
.309
.045
.191
2
.316
.668
.281
.106
-.317
-.083
-.302
-.158
-.118
-.317
-.563
-.508
.183
-.143
-.048
.143
.602
.178
.381
-.297
-.082
.281
.497
.369
Component
3
4
-.261
.349
-.085
.010
-.381
-.097
-.173
-.209
-.083
.495
-.343
.254
.117
-.364
.196
-.422
.211
.104
.404
-.192
.546
-.096
.407
.007
-.120
.438
-.166
.130
-.190
-.061
-.429
-.117
.104
-.153
.402
.499
.589
.355
.130
.242
.321
.421
.329
.512
.312
-.363
.364
-.122
5
.043
.172
.164
-.059
.060
.285
.177
.226
-.449
-.219
.154
.517
-.332
-.269
-.362
.318
.006
-.109
.044
.719
.460
-.021
.034
.196
6
.099
.144
-.101
-.348
.006
.257
.170
.598
-.014
-.091
-.059
.292
.076
.434
-.209
.049
.215
.086
.034
-.059
-.415
-.582
-.089
.472
7
.271
.079
-.122
-.273
.218
.534
.522
.143
-.063
-.140
-.010
-.115
-.014
.127
.204
-.389
-.266
-.255
.124
-.207
-.011
.420
.337
-.084
8
.502
.165
.078
-.439
-.046
-.302
.110
-.275
.166
.137
.050
.360
-.074
-.171
-.060
.135
.172
-.358
.070
.130
-.099
.072
-.049
-.230
1
Statement 26
Statement 27
Statement 28
Statement 29
Statement 30
Statement 31
Statement 32
Statement 33
Statement 34
Statement 35
Statement 36
Statement 37
Statement 38
Statement 39
Statement 40
Statement 41
Statement 42
51
.161
.488
.835
.551
-.069
-.012
-.011
.058
.063
.128
.036
-.175
.212
.178
.339
.819
.537
5
-.116
-.028
.072
-.088
.025
.347
.724
.616
-.100
.203
.370
.273
-.382
.198
.086
.069
-.092
6
-.014
-.079
.079
.027
.377
.148
.045
.014
-.072
.123
.325
.163
.000
-.167
-.144
.148
-.173
7
.075
.235
.153
.231
-.047
-.040
.133
-.010
.123
.162
-.107
-.260
.043
-.178
.359
-.209
.094
8
.736
.346
.008
-.617
.103
.113
.039
-.318
-.013
-.247
-.177
.099
.102
-.057
-.152
.003
.134
Statement 43
-.255
.037
Statement 44
-.154
.159
Statement 45
.213
.071
Statement 46
-.023
.005
Statement 47
.049
.117
Statement 48
.029
-.129
Statement 49
.071
.005
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
.181
.081
-.047
.075
-.013
-.181
-.022
.477
.580
.039
.063
.003
.365
.820
-.502
-.201
.193
-.133
.042
.191
.177
.189
.246
.842
.796
.136
-.203
.000
-.072
.344
-.195
.258
.883
.584
-.016
-.194
.228
.042
-.082
.014
.013
-.116
As discussed earlier, a coefficient with a large absolute variable indicates that the factor and
the variable are closely related. Hence, to facilitate interpretation of factors, it is necessary to
identify the variables that have large loadings on the same factor. It was decided that loading
of absolute value of 0.500 should be considered as a cut off point for a statement to be
associated with a factor. Factor matrices of the five factors obtained under above referred two
different methods were referred to, and a cut off value of loading of 0.500 was finally
considered. Following table shows the number of statements associated with different five
factors under two different methods:
Table 4.15 Variables (statements) associated with various factors under different
methods.
Sr.
No
Rotation
Method
Without
rotation
3,4,9,10,13,14,15,
16
2,17, 11,19
23
5,18,
Varimax
rotation
1,2,3,4,17
9,10, 5,6,13,
12
14,15
18,19
Factor
1
22
12,20,
21
8,24
6,7
7,11
20,21,
24
8,22
16,23
As discussed earlier, although, the initial or un-rotated factor matrix indicates the relationship
between the factors and individual variables, it seldom results in factors that can be
interpreted, because the factors are correlated with many variables. The factor matrix,
therefore, is transformed into a simpler one through rotation. It is easier to interpret this
rotated factor matrix. It can also be seen that from the above table that more variables get
52
associated with the factors when the factor matrix is rotated. All the two rotation methods are
giving the same variables associated with each matrix. So, the results of this method are
considered for interpretations of factors.
Factor Number 1:
Statements number 1, 2, 3, 4, and 17 are associated with this factor. These statements are
extracted from the Questionnaire and reproduced below:
Statement Number 1: Store should have all the equipments in working conditions.
The five statements stated above reflect dimensions, of store. The data can be summarised
by stating that the customers satisfaction depends on user friendly equipments and
immediate attention given by the store.
Factor Number 2:
Statements number 9, 10, and 12 are associated with this factor. These statements are
extracted from the Questionnaire and reproduced below:
53
The three statements stated above reflect the dimension, of employee dependability. The
data, therefore, can again be summarised by stating that the customers satisfaction is
associated with employees trustworthiness.
Factor Number 3:
Statements number 5, 6, 13, 14, and 15 are associated with this factor. These statements are
extracted from the Questionnaire and reproduced below:
Statement Number 6: Separate counters should be provided for recharge and problem
solving.
The five statements stated above reflect dimension of employee behavior. The data,
therefore, can again be summarised by stating that the customers satisfaction appear to
associate with behavior of the employees.
Factor Number 4:
Statements number 18, and 19 are associated with this factor. These statements are extracted
from the Questionnaire and reproduced below:
Statement Number 18: They should tell the customer exactly when the service will be
performed.
Statement Number 19: It should be realistic for customers to expect prompt service.
54
The two statements stated above reflect the dimension, of time. The data, therefore, can
again be summarised by stating that the customers satisfaction is associated with time
factor.
Factor Number 5:
Statements number 7 and 11 are associated with this factor. These statements are extracted
from the Questionnaire and reproduced below:
The two statements stated above reflect the dimension of ambience and accuracy. The data,
therefore, can again be summarised by stating that the customers satisfaction is associated
with accuracy of their records and ambience of the store.
Factor Number 6:
Statements number 20, 21 and 24 are associated with this factor. These statements are
extracted from the Questionnaire and reproduced below:
Statement Number 21: Employees should not be too busy in personal activities to respond
to their customers.
Statement Number 24: The store should have their customers best interests at heart.
The two statements stated above reflect the dimension of helping nature. The data,
therefore, can again be summarised by stating that the customers satisfaction is associated
with helping nature of employees.
Factor Number 7:
Statements number 8 and 22 are associated with this factor. These statements are extracted
from the Questionnaire and reproduced below:
Statement Number 22: Customer should not be kept waiting in order to get personal
attention.
55
The two statements stated above reflect the dimension of prompt service. The data,
therefore, can again be summarised by stating that the customers satisfaction is associated
with immediate service provisions.
Factor Number 8:
Statements number 16 and 23 are associated with this factor. These statements are extracted
from the Questionnaire and reproduced below:
Statement Number 16: Employees should provide personal attention to their customers.
The two statements stated above reflect the dimension of customization. The data, therefore,
can again be summarised by stating that the customers satisfaction is associated with
personal attention and need recognition of every individual.
The eight factors - depending upon the associated statements and inferences can be named
as given in the following table:
Table 4.16 Factors and associated names
Sr. No.
Factor
Factor 1
Store
Factor 2
Employee dependability
Factor 3
Employee behaviour
Factor 4
Time
Factor 5
Factor 6
Helping nature
Factor 7
Prompt service
Factor 8
Customization
No analysis has been carried out for remaining one statements viz. 25 as they neither have
high loadings nor low loadings. Hence, they can neither be considered as associated nor as
disassociated ones.
56
5. GAP Analysis
1. Store has all the equipments in working conditions.
Vodafone = -0.99
Airtel = -1.1
As we can see that both the companies do not fully satisfy their customers expectation
Comparatively, Vodafone is satisfying their customers more than Airtel.
57
Vodafone = 0.34
Airtel = 0.11
As we can see that both the companies fully satisfy their customers expectation.
Comparatively, Vodafone is satisfying their customers more than Airtel.
58
18. They do not tell the customer exactly when the service will be performed.
59
Vodafone = -0.54
Airtel = -0.19
As we can see that both the companies do not fully satisfy their customers expectation
Comparatively, Airtel is satisfying their customers more than Vodafone.
21. It is ok if the Employees are too busy in personal activities to respond to their
customers.
Vodafone = -0.37
Airtel = -0.29
As we can see that both the companies do not fully satisfy their customers expectation
Comparatively, Airtel is satisfying their customers more than Vodafone.
24. It is unrealistic to expect the store to have their customers best interests at heart.
Vodafone = 0.62
Airtel = 0.09
As we can see that both the companies fully satisfy their customers expectation
Comparatively, Vodafone is satisfying their customers more than Airtel.
60
61
62
Thus from the above parameters we can say that the 5 parameters are common where both
companies are meeting customers expectations, but Vodafone is successful in satisfying its
customers in other 4 parameters also. So it can be incurred that Vodafone has a higher
customer satisfaction.
While developing future service strategies both companies should consider employees polite
behavior, satisfaction of customer during any transaction, store dependability and updated
equipments as major areas where corrective steps are essential as they have high gap between
customers satisfaction and expectation.
63
7: BIBLIOGRAPHY
http://en.m.wikipedia.org/wiki/Vodafone
http://en.m.wikipedia.org/wiki/Bharti_Airtel
http://www.ukessays.com/essays/marketing/impact-of-advertising-inIndian-telecom-industry-on-its-customer-marketing-essay.php
http://www.vodafone.com/content/index/about/what/business/busine
ss_ideas/research_papers.html
http://www.managementparadise.com%2Fchelsea4k%2Fdocuments
%2F3448%2Fresearch-on-bharti-airtel-limited%2F
http://www.theanalysisfactor.com/factor-analysis-1-introduction/
http://www.slideshare.net/mobile/SoumyaSahoo1/28333950airtelandvodafonemarketinganalysis
http://www.final-yearproject.com/2011/02/comparative-analysis-ofbharti-airtel.html?m=1
64