Professional Documents
Culture Documents
Study On DTH Service Provider
Study On DTH Service Provider
On
TITLE OF STUDY
Impact of Quality and Brand Experience on Brand Loyalty in case of DTH Service
Provides
Submitted to
The bookish knowledge of any program, which we get from educational institutions,
is not enough to be used in our day-to-day life. The more practical knowledge we
have, the more beneficial it is for our learning.
To make the students aware of the working of the business world every student of
MASTER OF BUSINESS ADMINISTRATION (3rd Sem ) has to undergo a major
research project where he/she experiences many aspects of business under the
supervision of Professional Managers.
I strongly believe that the knowledge gained from this experience is more than the
knowledge gained from the theories in the book.
PLACE: INDORE
Student
Name
DATE: Swati Soni
CERTIFICATE
This is to certify that Ms Swati Soni Student of Institute of Business Management and
Research, IPS Academy, Indore of MBA (Full time) program has prepared Major
research Project report on topic “Impact of Quality and Brand Experience on Brand
Loyalty in case of DTH Service Provides” under my guidance.
Director
IBMR, IPS Academy
STUDENT DECLARATION
The Research as per my knowledge is original and genuine and not published in any
research Journal previously.
Swati Soni
MBA (3rd sem)
2021-23
ACKNOWLEDGEMENT
I often wondered why the project reports always began with acknowledgement. Now,
when I have undertaken project myself, did I realize that project report involves not
just the researcher but so many people that help in making the research possible.
Therefore, I take pleasure in beginning the most beautiful part of the report.
I fall short of words to express my gratitude to my guide Dr. Ritu Mishra who despite
their busy schedule were able to find some time to guide me through trouble and solve
my problems to the best of abilities. Without their unfailing guidance, encouragement
and patience this project would not have been possible. It has been a learning
experience under him/her.
I am thankful to my faculty guide Dr. Ritu Mishra who gave me detailed instructions
during my MRP.
Index
DTH services were first proposed in India in 1996. The proposal was not approved to due to
concerns over national security and negative cultural influence. In 1997, the Government of
India banned DTH services when Rupert Murdoch-owned Indian Sky Broadcasting (ISkyB)
was about to launch its DTH services in the country. After deliberations among groups of
ministers, DTH services were permitted by the NDA government in November 2000. The
ministers made four key recommendations to govern DTH services: no single entity, either
private or state-owned, should be permitted a monopoly in DTH services; the vertical
integration of DTH and cable television services should be monitored in order to prevent the
formation of a monopoly in television distribution; the vertical integration of DTH operators
and television channels should be avoided in order to ensure fair competition among TV
channels.
1
The new policy announced in November 2000 required all DTH operators to set up earth stations in
India within 12 months of receiving a license. DTH licenses were priced at $2.14 million with a
validity of 10 years. The FDI limit in the DTH sector was capped at 49%, and the company
operating the services was required to be headed by an Indian citizen.
The Government of India permitted the reception and distribution of satellite television signals in
November 2000. The first DTH service in the country was launched by Dish TV on 2 October
2003. DD Free Dish, the first free DTH service in India, was launched by public broadcaster
PrasarBharati in December2004.
India is the largest DTH market in the world by number of subscribers. As on 30 June 2019, there
were 54.36 million active pay DTH subscribers in the country. These figures do not include
subscribers of free DTH services. The Indian market is serviced by 5 paid DTH providers and one
free DTH provider.
S. Launch date Subscribers Ownership
No. Service Provider
June 2019
2
in four aspects:
3
Quality perception is different from physical quality.
The so-called objective quality is used to describe a product’s physical superiority, but its
function does not apply to the user or consumer.
For a physical product, quality might include usability, features, or compatibility.
For a service offer, this would include the different dimensions of the service being provided
(Hoisington &Naumann,2003).
Service quality is a focused evaluation that reflects the customer's perception of elements of service
such as interaction quality, physical environment quality, and outcome quality. These elements are
in turn evaluated based on specific service quality dimensions; reliability, assurance,
responsiveness, empathy and tangibles. Service quality is defined as global judgment or attitude
relation to the overall excellence or superiority of the service (Parasuraman et al, 1988). It has also
been defined as "the degree of discrepancy between customers' normative expectations for the
service and their perceptions of the service performance" (Parasuraman et al, 1988). Gronroos
(1984) defined service quality perceived judgments, resulting from an evaluation process where
customers compare their expectations with the service they perceive to have received.
Perceived quality can help consumers to have a subjective judgment on overall product quality that
make a product hold a salient differentiation and become a selective brand in consumers’ minds
(Aaker, 1991).
Customer Satisfaction
Customer satisfaction is the where customer expectations are fulfilled .It can be defined as the
degree to which customers are happy with the use of products that are provided to them by the
companies. Paul Farris defines customer satisfaction as ‘the number of customers, or percentage of
total customers, whose reported experience with a firm, its products, or its services exceeds
specified satisfaction goals. To achieve the level of satisfaction companies must have to keep in
mind the needs and wants of customers and supply them outstanding products and services
satisfaction is a speedy or quick experience of the customers after using the product through which
the overall satisfaction can be assessed (Lam, et al, 2004; Tian, 1998; Yang, 2004; Li and
Vogelsong, 2003).
From the past few decades many marketers and research scholars define customer satisfaction. In
the words of (Oliver 1997) satisfaction is defined as “the summary psychological state resulting
when the emotion surrounding disconfirmed expectation is coupled with prior feelings about the
4
customerexperience”.
Fornell (1992) has noted that industries vary in how customer satisfaction affects repeat business
and customer loyalty. He noted that the connection between customer satisfaction and loyalty
depends on factors such as market regulation, switching costs, and brand equity, existence of
loyalty programs, proprietary technology, and product differentiation at the industry level.
Customer satisfaction is the result of a customer’s perception of the value received in a transaction
or relationship – where value equals perceived service quality relative to price and customer
acquisition costs (see Blanchard and Galloway, 1994; Heskettet al., 1990) – relative to the value
expected from transactions or relationships with competing vendors (Zeithamlet al., 1990).
Brand Experience
Brand experience has turned into a vital factor for the achievement of organizations. Business
associations have started to consider customer experience with their brands beyond customer
satisfaction. In marketing literature, the notion of experience has been examined from contrasting
frame of references such as situations where customer experience on consumption, product,
aesthetic, service and shopping. One more research area was brand experience (baser, cintamur,
arslan, 2015). Therefore, sensory, effective intellectual and behavioral responses awaken by brands
formulated the entire concept of brand experience
The experience provided by brands is considered to be an important means of achieving sustainable
competitive advantage (Kotler and Keller, 2012; Mascarenhas, Kesavan and Bernacchi 2006;
Morrison and Crane, 2007; Grewal, Levy and Kumar, 2009; Srinivasan and
Srivasta, 2010). The development of strategies whereby such experiences may be delivered to
consumers is purchase decision can be made on a rational basis, consumers also pursue experience
that provide, feeling , fantasies and fun (Holbrook and Hirchman ,1982. While increasingly the
focus of marketers’ attention (Zarantonello and Schmitt, 2010)
Trust
Brugha (1999) defined trust as an expression of a feeling. The feeling has an effect to cognition,
affection and behavior.
5
Lau and Lee (2000) proof that brand trust is a mediating variable which related brand
predictability, brand competency, brand reputation, brand satisfaction, brand experience, trust in
company and brand liking with brand loyalty. Consumer’s trust in the marketing literature is
concept which has a strong correlation with consumer’s perception. One of it is the concept
proposed by Assael (1998). In this concept, brand trust is a cognitive component of the behavior.
Brugha (1999) defined trust as an expression of a feeling. The feeling has an effect to cognition,
affection and behavior. Assael (1998) said that trust could be measured by determining the attribute
and benefit of a brand.
Discussion about trust is related with relationship marketing (Morgan and Hunt, 1994, Parasuraman
et al, 1985). Trust a nd commitment are mediating variables in the company relationship with their
customers (Ekelundand Sharma, 2001; Tezinde et al ,2001; Morgan and Hunt, 1994; Alam and
Yasin, 2010). There are two categories of trust, they are organizational trust and personal trust
(Ekelundand Sharma, 2001). Brand trust is a part of personal trust.
According to Gurviez and Korchia (2003), there are several things could be identified from trust.
First, trust and commitment are the most important variables in maintaining long term relationship
among partners in the business and industry. Second, explanation from trust and commitment in the
relationship between company and consumers give supplement for business theory especially about
transaction cost. Third, the biggest difficulties of constructing the trust concept are in the cognitive
and affective based. Several factors, such as brand, trust, commitment and satisfaction give effect
on loyalty (Tezinde et al, 2001; Lassoued and Hobbs, 2015; Joo, 2015).
Brand Loyalty
Stacy.R.H HaeJung .H.J, Evans.K.L, (2015) define brand loyalty as a strong internal attitude
toward a mark which adds to buyers' mental connections toward the brand and the organization.
The type of behavioral loyalty is a consumer’s response expressed over time with some decision-
making process involved.
Most researchers concur that brand loyalty can make firm advantages, for example, diminished
advertising costs and when the company has a good brand name with loyal customers help to gain
the competitive advantage in the market. Brand experience is considered as a measure of brand
loyalty, like a superior brand experience of a customer will lead the customer to prefer this brand in
the future, where the brand would have deposited in the mind of the customer.
6
The literature has also shown that brand experience can be seen as a two-way influence which is
direct and indirect influence on loyalty and the brand engagement has been described as an
intermediary between experience and loyalty.
The combination of these two concepts enables us to differentiate two types of customer loyalty
concepts:
Loyalty based on inertia: where a brand is bought out of routine practice merely because this takes
fewer attempts and the consumer will not hesitate to switch to another brand if there is some certain
reason to do so. That is, the consumer is purchasing the same brand, not because of true brand
loyalty, but because it is not easy to search for an alternative;and
True brand loyalty, which is a form of repeatedly purchasing actions reflecting an aware decision to
continue, buying the same brand, must be accompanied by a primary positive attitude and a high
degree of promise toward thebrand.
There is not a common consensus on the method for how to measure the brand loyalty; when the
relevant literature is reviewed, it is seen that measurements for the brand loyalty is usually
classified under two categories namely as attitudinal and behavioral measurements and therefore it
is understood that the loyalty is a dimensional concept (Thiele & Bennett, 2001).
Brand loyalty is a sort of commitment towards the brand that induces a re-buy behavior into the
customer in spite of the potential marketing attempts by competitors to break up the coalition
between the brand and the consumer (Oliver, 1999).
7
Literature Review
8
Rajan.R.B, (2018) found out that people prefer a DTH service to cable operator due to
various factor such as quality of both video & audio, quality of services etc. Based on the
findings, appropriate suggestions have been made for increasing the number of users.
Geçti.F (2013) investigated the relations between brand trust, brand affect, attitudinal
loyalty and behavioral loyalty. In this regard, an online survey was conducted on sports shoe
consumers in Turkey. The results indicate that there is a positive relation between brand trust
and brand affect. Brand trust is also positively related to both attitudinal loyalty and
behavioral loyalty. Contrary to expectations, brand affect exerted no significant impact on
behavioral loyalty.
Nemati.A.R (2010) investigated how innovation affects customer satisfaction and brand
loyalty in mobile phones used by its users in Pakistan. The data was collected from 300
users through questionnaires. The results indicate that innovation has impact on customer
satisfaction and brand loyalty.
Anwar.A, et. al. (2011) found out that the impact of brand image, brand trust and brand
affect on brand extension attitude. Further it investigates if brand loyalty mediates the
relationship of brand image, trust, and affect to consumer brand extension attitude. It was
find out there is significant relationship between brand affect and consumer brand extension
attitude with 78% influence of brand affect on brand extension attitude. Regression analysis
also showed the significant relationship between brand trust and consumer brand extension
attitude and beta value of brand trust was .204 that means it has 20% of effect or variance in
brand loyalty.
Aaker (1996) found in his study that a loyal consumer base represents a barrier to entry, a
basis for a price premium, time to respond to competitors, and a bulwark against
deleterious price completion, and brand loyalty is a core dimension of brand equity. In
addition, brand loyalty is the final destination of brand management, and if a company wants
to test the weakness or strength of its customers’ loyalty, it can easily check whether
consumers still favor its product in contrast.
Spreng and Machoy (1996) perceived the service quality is commonly noted as a critical
prerequisite and determinant of competitiveness for establishing and sustaining satisfying
relationships with customers. More, (1987) suggested that service quality is an important
indicator of customer satisfaction. Attention to service quality can lead organizations and
gain a lasting competitive advantage.
10
Parasuraman et al. (1985) found service quality can be defined as the consumer’s
comparison between service expectation and service performance. They proposed service
quality to be a function of pre- purchase customer expectations, perceived process, and
perceived output quality. Parasuraman et al. (1988) suggested that service quality is
determined by the differences between customers’ expectations of the service and their
perceptions of the service experience.
Jones (2002) witnessed that the Customer satisfaction assessment is now widely recognized
as a vital input to any strategy for customer focused business performance improvement. The
need to improve responsiveness and reduce overheads is focusing management attention on
the major internal business function such as IT. Argues that these functions threatened with
major cost reductions or outsourcing, are increasingly feeling the need to understand better
their customer’s business needs and to assess how successful they are in satisfying them.
Any customer satisfaction assessment tool must recognize the varying needs of individual
“customers” within the “customer” organizations.
Sirdeshmukh et.al (2010) observed that in business trust is viewed as one of the most
relevant antecedents of stable and collaborative relationships. Researchers had established
that trust is essential for building and maintaining long term relationships. Morgan and Hunt
(1994) stated that trust exists only when one party has confidence in an exchange partner’s
reliability and integrity.
11
Gurviez and Korchia (2003) found that there are several things could be identified from
trust. First, trust and commitment are the most important variables in maintaining long term
relationship among partners in the business and industry. Second, explanation from trust and
commitment in the relationship between company and consumers give supplement for
business theory especially about transaction cost. Third, the biggest difficulties of
constructing the trust concept are in the cognitive and affective based. Several factors, such
as brand, trust, commitment and satisfaction give effect on loyalty.
Ha and Perks (2005) experienced that brand experience positively affects online customer
satisfaction in Korea. They proved that customers put more value on the brand experience
rather than on the price which means low pricing is less likely to make the customers feel
satisfied. Meanwhile, good experiences when they interact with a particular brand are more
likely to make them feel satisfied.
Zeithaml et.al (1998) found that the dimensions underlying quality are fairly specific while
satisfaction judgment have a border range of dimensions that also include quality aspect
Moreover, satisfactions assessment require customer experience while quality does not.
Oliver (1980) observed that these three concepts are quite distinct. Customer satisfaction or
dissatisfaction results from experiencing a service quality encounter and comparing that
encounter with what was expected. Oliver (1980) perceived service quality can be defined as
the customer’s judgment about the superiority or excellence of a product.
Berry et.al (1988) initiate that the traditionally service quality has been conceptualized as
the difference between customer expectations regarding a service to be received and
perceptions of the service being received in some earlier studies, service quality has been
referred as the extent to which a service meet customers’ needs or expectations.
12
Rationale of study
13
It has been predicted by researchers that maintaining loyal customers is more beneficial for
organizations these days then compared to identifying new customers. Customer loyalty therefore
has become the centre of attraction for most of the organizations these days. Service features such
as intangibility make it more difficult to maintain customer loyalty. Lots of researches have been
conducted to understand factors effecting loyalty. This research will be conducted on DTH
services which have never been studied earlier. Lots of changes have taken place recently in DTH
Services so it has become vital to know the factors effecting loyalty in this area.
The current study will be conducted on DTH services to know the impact of service quality and
brand experience on brand loyalty. The research also includes mediating variables such as
satisfaction and trust. A model will be developed and tested with service quality and brand
experience as independent variables, brand loyalty as dependent variable and satisfaction and trust
as mediating variable.
14
Objectives of Study
15
Objectives of Study
16
METHODOLOGY
17
Introduction
The project was to involve a detail study of customer satisfaction from various DTH service
providers. The methodology adopted for eliciting the data required for the study was survey
method. Various customers using different brands of DTH across region were contacted for
primary data collection. Different methods of primary data collection were employed in the
form of questionnaire, structured and unstructured interviews. Besides this, secondary data
was collected from internet sites of different DTH service providers, internet publications
and information broachers of DTH companies.
The Research Methodology used by me for the purpose of this project is as follows:-
Research Methodology:
The research design used here for this project is a combination of Exploratory &
Explanatory designs. First a general know about the DTH companies. Then personal
interactions with the customers concerned are made to figure out the results.
1) Primary Data: Primary data was collected through Survey Method which is very
suitable to reach the appropriate information. Printed questionnaires and direct interviews
were used to collect the required information. The questionnaire focused upon collecting
information regarding customer satisfaction from various DTH service providers.
2) Secondary Data: Secondary data was collected from internet sites of different DTH
service providers, internet publications, previous reports and Information broachers of DTH
18
companies
Sampling Procedure:
Simple Random sampling procedure was followed. A sample is always a part of the desired
universe & it should represent each & every aspect of the study being conducted. The only
thing is that the sample being chosen is of relevance & accurate source of information. My
sampling design is based on random sampling because each element gets probability to be
included & all choices made are independent of each other.
Sampling Unit:
The sampling units in my project are customers or users of DTH services.
Sample Size:
The sample size used in this project is 50 DTH users.
19
ANALYSIS AND
INTERPRETATION OF
RESULTS
Que 1. Which DTH connection do you have at your home?
Table 1:
Graph 1
INTERPRETATION
Out of 50 respondents, 40% have Dish TV, 14% have Airtel Digital TV, 8% have Tata sky,
12% have Reliance Digital TV, 4% have Videocon d2h, 4% have Sun Direct and 16% are
using DD Direct+.
21
Que 2. How many DTH connections are there at your home?
TABLE NO:2
GRAPH NO. 2
INTERPRETATION
92% of respondents replied that they have only one DTH connection at home. 8% replied
that they have two DTH connections at home From sample unit, no one has three or more
than three DTH connections at home.
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Findings
36
FINDINGS OF THE STUDY
Most of the customers are satisfied with their DTH service provider.
Most of the customers are using Dish TV.
Most of the customers, who are to planning to change their current DTH service,
want to switch to Airtel Digital TV followed by Tata Sky.
Majority of the customers use monthly recharge of Rs. 150-200.
Tata Sky is very fast in adopting new technologies which adds to advantage for
them.
Tata Sky also gives freedom to its customers to choose their favorite channels to
form their own pack.
Dish TV introduces new feature which is still not provided by any other DTH service
provider that is known as "DTH Portability Service". It means that you can switch to
Dish TV without purchasing set top box of Dish TV.
Dish TV is the largest market share holder in the DTH Industry.
There is only Sun Direct which is not providing any interactive service to its
customers except movie on demand.
Reliance Digital TV is providing large number of cinema channels in comparison to
any other DTH service provider.
Airtel Digital TV's antenna is comparatively bigger than any other DTH service
provider.
Videocon d2h is only DTH service provider which has its own service centers across
the country.
DD direct+ is providing free DTH service.
There are some common features which are provided by all the DTH service
providers. These are parental control, EPG etc.
All DTH companies provide customer care service. Most of them provide this
service in more than one language.
37
Suggestions
38
Suggestions
For Dish TV
Improve customer care service.
Improve audio and video quality.
Minimize activation time for channel packs.
39
For Videocon d2h
Improve STB software quality that hangs up many times.
Introduce some interesting interactive channels.
For DD Direct+
Introduce Electronic Program Guide (EPG) as provided by other DTH service
provider.
Improve signal quality.
Increase number of channels.
40
Conclusion
41
We conclude that DTH industry is growing at rapid speed. In DTH Industry Dish TV is the
biggest player holding large market share followed by Tata Sky But with the growth in
DTH industry, many new companies enter in this industry and give a huge competition to
the existing DTH service providers. Today, there are total 7 DTH service providers in
Indian DTH industry. There are Dish TV, Tata Sky, Airtel Digital TV, Reliance Digital TV,
Sun Direct, Videocon d2h, DD Direct+. Out of these, DD Direct+ and Dish TV are public
companies and all other are private companies. Out of new entrants, Airtel and reliance
come out as big service providers. Sun Direct is the giant DTH service provider in south
India. All the service providers are providing unique services to its customers.
DTH has many features such as clear picture quality, better sound quality, uninterrupted
entertainment, Guide, interactive services, Radio channels etc. That is why people now
prefer it over cable.
Most of the customers are satisfied with their DTH service provider. Most of the customers
are ready to spent Rs. 150-200 per month for their DTH service Looking at the present
scenario, we can say that the future of DTH companies is very bright.
42
Bibliography
43
Internet sites and links
www.dishtv.com
www.airtel.in/digitaltv
www.reliancedigitaltv.com
www.tatasky.com
www.sundirect.in
ocond2h.com
www.ddinews.gov.in/DTH/DDDIRECT
http://www.saveondish.com/comparison-of-dish-tv-tata-sky-digital-tv-big-tv-and-
dd-dth/
http://en.wikipedia.org/wiki/Airtel_digital_TV
http://en.wikipedia.org/wiki/Dish_TV
http://en.wikipedia.org/wiki/Reliance_Digital_TV
http://en.wikipedia.org/wiki/Sun_Direct
http://en.wikipedia.org/wiki/Videocon_d2h
http://en.wikipedia.org/wiki/DD_Direct%2B
http://en.wikipedia.org/wiki/Tata_Sky
http://www.dth.co.in/videocon-d2h-dth-service.html
http://www.amitbhawani.com/blog/airtel-digital-tv-features
www.google.com
www.slideshare.com
www.scribd.com
44
Auxiliary
45
46
47
48
49