Marketing Research

PGDM 2017-19

Factors behind Brand Switching in the Telecom Industry

Submitted To: Submitted By:

Prof. Neena Sondhi Batch I || Group 1

Akansha Mittal 17PGDMXXX

Jagriti Sanghai 17PGDM195
Kanish Rajput 17PGDMXXX
Kartik Trivedi 17PGDMXXX
Kaushal Bajoria 17PGDMXXX
Lakshay Khendalwal 17PGDMXXX
Radhika Mall 17PGDMXXX
Rishivar Mukherjee 17PGDMXXX
Shruti Chadha 17PGDMXXX

1
Acknowledgements

The learning opportunity we had with a course in Market Research was a great opportunity
for skill building and professional development. We would like to acknowledge the valuable
support from the faculty for providing us with an opportunity to work on the assignment on
‘Factors behind Brand Switching in the Telecom Industry’.

We would like to take this opportunity to express our profound gratitude and deepest regards
to our mentor Prof. Neena Sondhi for her continuous guidance and constant encouragement
during the course.

We would also like to express a deep sense of gratitude to our peers for their insightful
discussions during the classes that helped us gain inputs and perspectives which were
extremely valuable for our study in Market Research. We would not have been able to bring
this project to fruition without their guidance and help.

A special thanks to all our respondents and participants who helped us is meeting our set
objectives. This research report would not have been possible without them.

2
Table of Contents
Acknowledgements................................................................................................................................. 2
Motivation for carrying out the study .................................................................................................... 4
Introduction ............................................................................................................................................ 5
Literature Review .................................................................................................................................... 6
Objectives ............................................................................................................................................... 7
Research Questions ................................................................................................................................ 7
Methodology........................................................................................................................................... 8
Sampling Design ...................................................................................................................................... 9
Methods of Analysis .............................................................................................................................. 10
Analysis of Data & Findings ................................................................................................................... 11
Profile of Respondents.......................................................................................................................... 12
Run Test ................................................................................................................................................ 13
One-Sample t-test ................................................................................................................................. 14
Paired sample t-test .............................................................................................................................. 15
Need-gap Analysis ................................................................................................................................. 16
Regression ............................................................................................................................................. 19
Logit....................................................................................................................................................... 20
Cluster Analysis ..................................................................................................................................... 21
Factor Analysis ...................................................................................................................................... 22
Discriminant Analysis ............................................................................................................................ 28
Marketing Implications ......................................................................................................................... 29
Conclusion ............................................................................................................................................. 30
Limitations of the Study ........................................................................................................................ 31
Bibliography .......................................................................................................................................... 32
Appendix ............................................................................................................................................... 33

3
Motivation for carrying out the study

The study was conducted with a motive to investigate the factors affecting the brand
switching behavior of the customers in telecommunication industry. After the introduction of
Reliance Jio in 2007, it has been observed that there is a continuous switching of telecom
service provider. However, there can be several reasons for the switch such as call and data
rates, network, schemes offered, customer care services, etc. Since telecommunication has
become an important part of any individual, it is very important to understand how a
customer behaves to various changing telecom factors.

A quantitative approach has been employed to measure the relationships between the
factors of the study. A focused group discussion was conducted between 8-10 people to list
down the factors which might affect the brand switching behavior of the customer in the
telecom industry. Further, Primary data has been collected using questionnaire containing
closed ended questions to establish a relationship between the factors listed above. The
responses were then thoroughly analyzed using various techniques such as factor analysis
and cluster analysis to reach to a certain conclusion.

4
Introduction

Telecommunication industry has become integral part of today’s world. As the market is
getting developed, mobile network services are becoming homogeneous. The competition
for attracting new customers and at the same time retaining the existing ones is becoming
intense and difficult. Therefore, to remain competitive and profitable in the market, customer
satisfaction is of utmost importance for network service providers.

With the introduction of mobile number portability, it has been observed that the mobile
user’s switching turnover is more. Mobile number portability is the process by which one user
can move to another operator of one’s choice but keep the existing number.
It has also been observed that users subscribe for a specific network and then switch to others
when they find that their current services do not fulfil their needs and other networks are
providing better services.

Brand switching is an important aspect that needs to be considered as one company is gaining
customer but at the same time other one is losing on customer. In telecom industry, brand
switching behaviour is increasing due to factors like price & rates, schemes offered, customer
satisfaction, customer services, inconvenience, expectations, service quality, brand image and
price perception etc. Other factors include peer groups, location, demography, service
availability, mobile handset etc.

The customer behaviour studies the psychology of customers, like when, how, why and
people buy and use the products for satisfying their needs. Every customer bears their own
choice, behaviour, attitude and perception for different categories of brands. When customer
is dissatisfied from one brand, they replace it by another one which provides better
satisfaction. To retain customer satisfaction, innovation is important. The pricing indicator,
service quality, and other factors work together to bring innovative ideas to attract and retain
customers. Until the need of the customer is not analysed, solution for the same cannot be
provided and meet. Therefore, it is also important to understand the need-gap factor to
analysis the brand switching behaviour of the users.

5
Literature Review

6
Objectives

 Usage and acceptance of Telecom Company Services

 Measuring Customer Satisfaction in Telecom Industry
 Need-gap Analysis in Telecom Industry
 To access industry Brand-Switching Pattern
 Determine the profile of customers using telecom services

Research Questions

7
Methodology

8
Sampling Design

9
Methods of Analysis

10
Analysis of Data & Findings

11
Profile of Respondents

12
Run Test

13
One-Sample t-test

14
Paired sample t-test

15
Need-gap Analysis
Importance of parameters vs satisfaction with parameters
A paired- sample t test is done between the importance of a parameter of a network and
satisfaction level of user on a parameter.

µ1 = Mean of the preference of user for a parameter

µ2 = Mean of satisfaction of user by a parameter

H0 = The difference between the mean is equal to zero (µ1 - µ2 = 0)

H1= The difference between the mean is not equal to zero (µ1 - µ2! = 0)

Test 1: Preference v/s Satisfaction with Primary Network based on various parameter

Refer table in SPSS Output: Paired sample Tests in T-Test - Need Gap Analysis Between
Preference and Satisfaction level with primary network

Parameter Mean Difference p-value (2-Tailed) Result

Call Rates 0.419 0.000 Significant
Customer Care 0.171 0.131 Not-Significant
Network 0.853 0.000 Significant
Value Added Service -0.209 0.032 Significant
Data Services 0.612 0.000 Significant
Schemes and Offers -0.023 0.812 Not Significant

As per the analysis Call rates, Network, Value Added services and Data services are significant.
The mean for Call rates, Network and Data services is positive which implies that the mean
for users’ preference for these parameters is more compared to their satisfaction level. This
means that people want more satisfaction than what they are getting on these parameters.
However, for value added services the mean for satisfaction level is more than the preference.
This means that people are getting more than what they want on this parameter. Whereas in
case of Customer Care and Schemes and offers, there is no significant difference in means,
which shows that people are getting just what they want on these parameters.

16
Test 2: Preference v/s Satisfaction with Secondary Network based on various parameter

Refer table in SPSS Output: Paired sample Tests in T-Test - Need Gap Analysis Between
Preference and Satisfaction level with secondary network

Parameter Mean p-value (2- Result

Difference Tailed)
Call Rates 0.33 0.019 Significant
Customer Care 0.09 0.508 Not-Significant
Network 0.74 0.000 Significant
Value Added -0.03 0.776 Not-Significant
Service
Data Services 0.61 0.000 Significant
Schemes and 0.06 0.683 Not-Significant
Offers

As per the analysis Call rates, Network, and Data services are significant. The mean for Call
rates, Network and Data services is positive which implies that people want more satisfaction
than what they are getting on these parameters. Whereas in case of Customer Care, Value-
added services and Schemes and offers, there is no significant difference in means, which
shows that people are getting just what they want on these parameters.

Following this, we did analysis to test whether the brand loyal people are brand endorser or
not.
In case of secondary network, we did analysis for three networks namely Airtel, Vodafone,
and Jio because the frequency for only these networks are greater than 15.

Hypothesis
H0 = The difference between the mean is zero
H1= The difference between the mean is not equal to zero

Analysis:
1. Airtel
The p-value is 0.77 which is greater than 0.05 hence, null hypothesis is accepted. This
means that the people are equally likely to endorse the brand as much as they are
loyal to the brand.

2. Vodafone
The p-value is 0.172 which is greater than 0.05 hence, null hypothesis is accepted. This

17
 means that the people are equally likely to endorse the brand as much as they are
loyal to the brand.

3. Jio
The p-value is 0.009 which is less than 0.05 hence, null hypothesis is rejected. As the
mean value is 0.258 which is positive, it implies that customers are loyal to Jio, and
they recommend it to their closed ones as well, so they are brand endorsers.

In case of Primary network, we did analysis for three networks namely Airtel, Vodafone, Idea
and Jio because the frequency for these networks is greater than 10.

Hypothesis
H0 = The difference between the mean is zero
H1 = The difference between the mean is not equal to zero

Analysis:
1. Airtel
The p-value is 0.168 which is greater than 0.05 hence, null hypothesis is true. This
means that the people are equally likely to endorse the brand as much as they are
loyal to the brand.
2. Vodafone
The p-value is 0.423 which is greater than 0.05 hence, alternative hypothesis is true.
This means that the people are equally likely to endorse the brand as much as they
are loyal to the brand.
3. Idea
The p-value is 0.104 which is greater than 0.05 hence, null hypothesis is true. This
means that the people are equally likely to endorse the brand as much as they are
loyal to the brand.
4. Jio
The p-value is 0.033 which is less than 0.05 hence, alternate hypothesis is true. As the
mean value is 0.200 it implies, that customers are loyal to Jio, and they recommend it
to their closed ones as well, so they are brand endorsers.

Overall, we see that both for primary and secondary networks, people are not satisfied or
rather they are expecting more in terms of call rates, network and data services. Hence, the
companies should work on these parameters.

18
Regression

19
Logit

20
Cluster Analysis

21
Factor Analysis
Applying factor analysis to the questions regarding lifestyle of the respondents, we got the
following results: -

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .654

Bartlett's Test of Sphericity Approx. Chi-Square 325.054

df 78

Sig. .000

It may be noted that KMO statistics is greater than 0.5, indicating that factor analysis can be
performed for the given set of data. Further, Bartlett’s test indicates that the correlation
matrix is significant as indicated by the p value corresponding to the chi square statistic. The
p value is 0.00, which is less than 0.05, the assumed level of significance, indicating the
rejection of the hypothesis that the correlation matrix of the variables is insignificant.

Hypothesis to be tested was as follows:

H0 : correlation matrix is insignificant

H1 : correlation matrix is significant

Factor loadings and component matrix

The correlation coefficient between the factor score and the variables included the study is
called factor loading and is presented in table below.

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 Component Matrixa

Component

1 2 3 4 5

I am an extrovert person .566 -.546 -.243 -.035 .168

I like to have long .593 -.235 -.177 -.465 .392

conversations

I travel a lot .607 -.038 -.380 .302 -.016

I keep exploring new .430 .342 -.370 -.042 -.409

gadgets

I am very active on social .535 -.262 -.448 .002 -.167

media

I don’t like changing my .198 -.582 .407 .348 .130

device

I listen to music on my .605 .062 .511 -.162 -.134

phone

I like to stay updated with .541 -.144 .376 -.173 -.480

what is happening in the
lives of those known to
me

I like to do online .585 .284 .178 -.249 -.110

shopping

I download songs on .499 .445 .363 .129 .224

phone

I download movies on .295 .546 -.279 .010 .360

phone

I travel frequently for work .383 .108 -.012 .775 -.105

I use cloud storage to .328 .091 .244 .103 .457

store my photos and
videos

Extraction Method: Principal Component Analysis.

23
The table below shows the Total variance explained

Extraction Sums of Squared Rotation Sums of Squared

Initial Eigenvalues Loadings Loadings

% of % of % of
Compon Varianc Cumulati Varianc Cumulati Varianc Cumulati
ent Total e ve % Total e ve % Total e ve %

1 3.14 24.166 24.166 3.142 24.166 24.166 2.111 16.236 16.236

2

2 1.50 11.543 35.709 1.501 11.543 35.709 1.927 14.820 31.056

1

3 1.44 11.082 46.791 1.441 11.082 46.791 1.484 11.413 42.469

1

4 1.17 9.064 55.856 1.178 9.064 55.856 1.446 11.124 53.593

8

5 1.05 8.107 63.962 1.054 8.107 63.962 1.348 10.369 63.962

4

6 .958 7.369 71.331

7 .763 5.870 77.201

8 .693 5.332 82.533

9 .595 4.575 87.108

10 .526 4.046 91.154

11 .457 3.515 94.669

12 .385 2.962 97.631

13 .308 2.369 100.000

Extraction Method: Principal Component Analysis.

24
It shows that the % of variance explained by the individual factors are 16.236, 14.820, 11.413,
11.124, 10.369 respectively. And the total variance explained by all the factors is 63.962%.

Establishing the statistical independence of extracted factors

Component Score Covariance Matrix

Component 1 2 3 4 5

1 1.000 .000 .000 .000 .000

2 .000 1.000 .000 .000 .000

3 .000 .000 1.000 .000 .000

4 .000 .000 .000 1.000 .000

5 .000 .000 .000 .000 1.000

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.
Component Scores.

The table indicates that the correlation between the 5 factor scores is zero.

25
 Rotated Component Matrixa

Component

1 2 3 4 5

I am an extrovert person .801 .091 .049 -.227 .047

I like to have long .724 .178 .347 .031 -.362

conversations

I travel a lot .557 .067 .139 .170 .494

I keep exploring new .229 .287 -.093 .616 .291

gadgets

I am very active on social .684 .132 -.145 .163 .225

media

I don’t like changing my .177 .141 .055 -.763 .213

device

I listen to music on my .077 .763 .276 -.102 .020

phone

I like to stay updated with .159 .810 -.139 -.092 .078

what is happening in the
lives of those known to
me

I like to do online .144 .594 .292 .265 -.005

shopping

I download songs on -.094 .382 .662 .076 .214

phone

I download movies on .110 -.125 .559 .493 .096

phone

I travel frequently for work .056 .056 .178 -.072 .853

I use cloud storage to .088 .082 .588 -.181 .043

store my photos and
videos

Extraction Method: Principal Component Analysis.

26
 Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 8 iterations.

Cut off point for the above table is taken as 0.5. Now using 0.5 as cut off point, the variables
corresponding to factor 1 having a factor loading above 0.5 are “I am an extrovert person”,”
I like to have long conversations” and “I travel a lot” these consumers can be clubbed as
“Expressive-traveler”. That becomes the name of our first factor.

Similarly, the other factor names are as follows:

Factor 2 comprises of statements:
• I listen to music on my phone (gadget use for fun, convenient)
• I like to stay updated with what is happening in the lives of those known to
me(social)
• I like to do online shopping (gadget use for fun, lazy, convenient)

This factor can be named as: “updated-convenience seeker”

Factor 3 comprises of statements:

• I download songs on phone (memory usage)

• I download movies on phone (memory usage)
• I use cloud storage to store my photos and videos (memory usage)

This factor can be named as: “Heavy data user”

Factor 4 comprises of statements:

I keep exploring new gadgets

I don’t like changing my device
This factor can be named as: “Tech savvy user”/ “Gadget-trendsetter”
Factor 5 comprises of statement:
I travel frequently for work
This factor can be named as: “Work traveler”

27
Discriminant Analysis

28
Marketing Implications

29
Conclusion

30
Limitations of the Study

31
Bibliography

Websites:

Newspaper:

Books:

32
Appendix
Questionnaire

Factors behind brand-switching in the telecom industry

Greetings of the Day. We, the students of IMI New Delhi, are conducting a survey to assess
the brand switching patterns in telecom industry.
* Required
1. Do you use telecom services? *
Mark only one oval.
⃝ Yes
⃝ No (Stop filling out this form)

2. Given below are some statements related to your attitude towards life in general,
please
indicate the level of agreement/disagreement in regards the following statements: * Mark
only one oval per row.
Strongly Disagree
Strongly Agree
I am an extrovert person I like to have long conversations I travel a lot I keep exploring new
gadgets I am very active on social media I don’t like changing my device I listen to music on
my phone I like to stay updated with what is happening in the lives of those known to me I
like to do online shopping I download songs on phone I download movies on phone I travel
frequently for work I use cloud storage to store my photos and videos
3. How many telecom service networks(e.g. Airtel; Jio; Vodafone etc.) are you using. *
Mark only one oval.
0 Stop filling out this form.
1 Skip to question 16.
2 Skip to question 6.
More than 2
Disagree Neutral Agree
8/17/2018 Factors behind brand-switching in the telecom industry
4. Which telecom service(s) are you currently using? *
Check all that apply.
BSNL
MTNL

33
Airtel
Reliance
Aircel
Vodafone
Idea
Jio
Other:
5. Which is the primary network you are using? *
(Here primary means which network you use for most of the services required) Mark only
one oval.
BSNL
MTNL
Airtel
Reliance
Aircel
Vodafone
Idea
Jio
Other:
Service Provider 2
6. Name of the service provider *
Mark only one oval.
BSNL
MTNL
Airtel
Reliance
Aircel
Vodafone
Idea
Jio
Others
https://docs.google.com/forms/d/1n3ddC7a5hJxwxql2cy96SDAJb5_6Q5kEBvv2-zvGDJc/edit
2/8

34
8/17/2018 Factors behind brand-switching in the telecom industry
7. Since how long are you using this service provider? *
Mark only one oval.
Less than 1 year
1 -2 years
2-3 year
More than 3 years
8. What value added services are you currently using on this service provider? *
Check all that apply.
Live Streaming
Location based services
Mobile Money
Mobile TV
Online Gaming
SMS chatting
Sports services
Online Storage
Music Subscription
Messaging Services (such as Whatsapp)
9. What kind of payment plan do you have on this service provider? *
Mark only one oval.
Pre-paid
Post-paid
10. What is your monthly expenditure on this service provider? *
Mark only one oval.
Below ₹100
₹101 - ₹200
₹201 - ₹300
₹301 - ₹400
₹401 and above
11. Rate the following services based on your satisfaction level of this service provider: - *
Mark only one oval per row.

35
Very bad Bad Neutral Good Very good
Call rates Customer care Network Value added services Data services New schemes and
offers
https://docs.google.com/forms/d/1n3ddC7a5hJxwxql2cy96SDAJb5_6Q5kEBvv2-zvGDJc/edit
3/8
8/17/2018 Factors behind brand-switching in the telecom industry
12. How satisfied are you with this service provider? *
Mark only one oval.
12345
Extremely dissatisfied Extremely satisfied
13. How likely are you to recommend this service provider to your friend? *
Mark only one oval.
12345
Very unlikely Very likely
14. If there is an opportunity, what is the likelihood that you will go for the same service
provider? * Mark only one oval.
12345
Very unlikely Very likely
15. What is the reason for wanting to switch your network? *
Mark only one oval.
I do not want to change
Tarrif
Change in location
Bundle perks
Offers
Peer group
Network coverage
Customer service
Payment/ recharge options
Other:
Service Provider 1
16. Name of the service provider *
Mark only one oval.

36
BSNL
MTNL
Airtel
Reliance
Aircel
Vodafone
Idea
Jio
Others
https://docs.google.com/forms/d/1n3ddC7a5hJxwxql2cy96SDAJb5_6Q5kEBvv2-zvGDJc/edit
4/8
8/17/2018 Factors behind brand-switching in the telecom industry
17. Since how long are you using this service provider? *
Mark only one oval.
Less than 1 year
1 -2 years
2-3 year
More than 3 years
18. What value added services are you currently using on this service provider? *
Check all that apply.
Live Streaming
Location based services
Mobile Money
Mobile TV
Online Gaming
SMS chatting
Sports services
Online Storage
Music Subscription
Messaging Services (such as Whatsapp)
19. What kind of payment plan do you have on this service provider? *
Mark only one oval.
Pre-paid

37
Post-paid
20. What is your monthly expenditure on this service provider? *
Mark only one oval.
Below ₹100
₹101 - ₹200
₹201 - ₹300
₹301 - ₹400
₹401 and above
21. Rate the following services based on your satisfaction level of this service provider: - *
Mark only one oval per row.
Very bad Bad Neutral Good Very good
Call rates Customer care Network Value added services Data services New schemes and
offers
https://docs.google.com/forms/d/1n3ddC7a5hJxwxql2cy96SDAJb5_6Q5kEBvv2-zvGDJc/edit
5/8
8/17/2018 Factors behind brand-switching in the telecom industry
22. How satisfied are you with this service provider? *
Mark only one oval.
12345
Extremely dissatisfied Extremely satisfied
23. How likely are you to recommend this service provider to your friend? *
Mark only one oval.
12345
Very unlikely Very likely
24. If there is an opportunity, what is the likelihood that you will go for the same service
provider? * Mark only one oval.
12345
Very unlikely Very likely
25. What is the reason for wanting to switch your network? *
Mark only one oval.
I do not want to change
Tarrif
Change in location

38
Bundle perks
Offers
Peer group
Network coverage
Customer service
Payment/ recharge options
Other:
26. On a typical day, what is the usage of telecom service for you? *
Mark only one oval.
0-3 hours
3-6 hours
6-9 hours
More than 9 hours
https://docs.google.com/forms/d/1n3ddC7a5hJxwxql2cy96SDAJb5_6Q5kEBvv2-zvGDJc/edit
6/8
8/17/2018 Factors behind brand-switching in the telecom industry
27. Rate the following services (1 being least important and 5 being most important) as
per
your preference: - * Mark only one oval per row.
12345
Call rates Customer Care Networks Value added services Data services New Schemes and
offers Other
Personal Information
28. Name *
29. Age *
Mark only one oval.
Below 18 years
18 – 22 years
23 - 27 years
28 - 32 years
Above 32 years
30. Profession *
Mark only one oval.

39
Student
Service
Business
Homemaker
Other:
31. Hometown (State) *
32. Current location (State) *
33. Gender *
Mark only one oval.
Male
Female
Other:
https://docs.google.com/forms/d/1n3ddC7a5hJxwxql2cy96SDAJb5_6Q5kEBvv2-zvGDJc/edit
7/8
8/17/2018 Factors behind brand-switching in the telecom industry
Powered by
https://docs.google.com/forms/d/1n3ddC7a5hJxwxql2cy96SDAJb5_6Q5kEBvv2-zvGDJc/edit
8/8
34. Annual Household Income per year *
Mark only one oval.
Less than 5 Lac
5-10 Lac
Above 10 Lac

40