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Customer Satisfaction: Airtel Mobile Services In Hydrabad

4173 words (17 pages) Essay in Marketing

24/04/17 Marketing Reference this

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The Indian Telecommunications network with 200 million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for U.S. companies in the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005, is expected to reach 250 million in 2007.

According to Broadband Policy 2004, Government of India aims at 9 million broadband connections and 18 million internet connections by 2007. The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY2004- 2005. In the last 3 years, two out of every three new telephone subscribers were wireless subscribers. Consequently, wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in 2003.

Wireless subscriber growth is expected to bypass 2.5 million new subscribers per month by 2007. The wireless technologies currently in use are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 23 telecom circles and 4 metro cities, covering 2000 towns across the country.

Major Players

There are three types of players in telecom services:

• -State owned companies (BSNL and MTNL)

• -Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)

• -Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures,

Escotel, Idea Cellular, BPL Mobile, Spice Communications)

Evolution of the industry-Important Milestones

Inception:

Bharti Tele Ventures Ltd was incorporated on July 1995 by founder Sunil Bharti Mittal with a focus on promoting investments in Telecommunications services.

Bharti Tele Ventures Ltd through its subsidiary Bharti Airtel Ltd hold the right to establish maintain and operate mobile telephony systems in A.P. circle through a license that is valid for 20 years from December 22 1995.

Bharti Airtel Service offerings:

The Businesses at Bharti Airtel have been structured into 3 individual strategic business units (SBUs).

1.Mobile services

2.Broadband and Telephone services (B&T)

3.Enterprise services

The mobile services group provides GSM (global system for mobile) mobile services across India in 23 telecom circles.

The B&T business group provides broadband and telephony services in 94 cities.

The enterprise services group has sub-units

1. Carriers (Long distance services

2. Services to corporate

All the services are provided under Airtel brand.

Partners:

The company has a strategic alliance with Singtel. The investment made by Singtel is one of the large investments made in the world outside Singapore in the company.

The company’s mobile network equipment partners include Ericson and Nokia. In the case of Broadband and Telephone services and Enterprise services (carriers) equipment suppliers include Siemens, Nortel, and corning among others. The company also has an Information Technology alliance with IBM for its group wide Information Technology requirements and with Nortal for Call Center Technology requirements. The call center operations for the mobile services have been outsourcing to IBM Daksh, Hinduja TMT, Teletech and Mphisis.

Bharti Tele-Ventures’ strategic objective is “to capitalize on the growth opportunities

the company believes are available in the Indian telecommunications market and consolidate its position to be the leading integrated telecommunications services provider in key markets in India, with a focus on providing mobile services”.

Organization structure:

As an outcome of restructuring exercise conducted within the company; a new integrated organizational structure has emerged; with realigned roles, responsibilities and reporting relationships of Bharti’s key team players. With effect from March 01 2006, this unified management structure of “One Airtel” will enable continued improvement in the delivery of the group’s strategic vision.

Performance and growth of Bharti Airtel:

Performance and growth of Bharti Airtel is given as under:

Bharti Airtel added the highest ever net addition of 53 lakh customer in a single quarter(Q4-FY 06-07) and also the highest ever net addition of 1.8 crore total subscribers in 2006-07.

Bharti Airtel has an installed base of 40,000 cell sights and 59% population coverage.

Bharti Airtel has over 39 million users as on March 31, 2007.

Prepaid customers account for 88.5% of Bharti’s total subscriber base, an increase from 82.7% a year ago.

It has completed 100% verification of its subscribers and in the process discounted 31 lakh subscribers.

On February 12, 2007 Vodafone sold its 5.6% stake in Airtel back to Airtel for U.S $1.6 billion; and purchased a controlling stake in rival Hutchison Essar.

Recently Airtel launched its calling card in America especially for the NRI and people calling from America to India at a cheaper rate as compared to the tariff offered by other providers.

Proportionate Revenue:

Rs.184, 202 million (year ended March 31, 2007-Audited)

Rs.117, 255 million (year ended March 31, 2007-Audited)

Proportionate EBITDA:

Rs.74, 407 million (year ended March 31, 2007-Audited)

Rs.42, 250 million (year ended March 31, 2007-Audited)

Customer base of Airtel

It has 48,853,758 GSM mobile and 2,039,013 broadband and telephone customers (status at month ended august 31, 2007).

Awards and recognitions

Bharti draws top honors at the NDTV profit business leadership awards 2007

Bharti Airtel ranked 3rd on shareholder return in Business Week it 100 List.

Sunil Bharti Mittal conferred Degree of doctor of science (honoris causa) by G.B.Pnath University.

The Forbs Global 2000 list for the year 2007 ranked Bharti at 1149.

Chapter III

Objectives & methodology

Chapter III

Objectives & methodology

In this chapter an attempt is made to describe the objectives and methodology of the study

The objectives of the study are:

1. To know how far customers are satisfied with Airtel mobile network services.

2. To redesign marketing strategies of Airtel if necessary

Methodology

Survey method has been used for data collection. The study is done through administering a questionnaire which consists of both open and closed ended questions. There are seventeen questions and some items relating to personal details.

About 200 customers are chosen for the study as a sample. Convenience sampling method is employed.

Approach

Customers are contacted at relationship centers, where customer queries, bill payments and other issues are taken care of, from 11:00 A.M to 6 P.M on all the working days in the months of May, June and July. Customer responses were recorded in the questionnaire.

Chapter IV

Intentions of users of Airtel

Chapter IV

Intentions of users of Airtel

In this chapter, information obtained from the questionnaire is tabulated and an analysis is carried out on the intentions of users of Airtel.

Whether there are any influences of demographic variables on the reasons for opting Airtel? A hypothesis is formed to test this

Hypothesis

Ho: Age, Gender, Income, and Occupation has no influence on reasons for opting Airtel

Since calculated value of Gender (1.63), Income (2.89) is less than table value (7.81). Since calculated value of Age (9.25) is greater than table value (7.81). Occupation (1.85; 4.83) is greater than table value (9.55; 4.76).

We can conclude that Gender, Income have no influence on reasons for opting Airtel. Where as Age and Occupation has influence on reasons for opting Airtel.

Table IV.3

Reasons for opting Airtel – Across demographic

(N=200)

S.No

Reason

Age (yrs)

Gender

Income (000)

A30

(N=74)

B30

(N=126)

Male

(N=154)

Female

(N=46)

A10k

(N=92)

B10k

(N=108)

1.

2.

3.

4.

Call charges

Network

Brand

Others(cug)

12

42

8

12

8

94

6

18

14

106

12

22

6

27

5

8

12

58

8

14

8

78

6

16

(Chi)2

9.25

1.63

2.89

S.No

Reason

Occupation

Students

(N=42)

Employees

(N=120)

Professionals

(N=38)

1.

2.

3.

4.

Call charges

Network

Brand

Others(cug)

4

30

4

0

12

82

4

16

4

24

6

14

f- value 1.85;4.83

Use of services

About 52% of the customers are free from problems with Airtel and 19% of the respondents facing problem with sudden drops in signal

Table IV.4

Problems associated with service

(N=200)

S.No.

Problem

f

%

1.

Signal drops suddenly in some areas

38

19

2.

Activation & Deactivation of packages without permission

28

14

3.

GPRS & Internet

18

9

4.

No response for complaints

12

6

5.

Having no problems.

104

52

Whether there are any influences of demographic variables on problems associated with Airtel? A hypothesis is formed to test this.

Hypothesis

Ho: Age, Gender, Income, and Occupation has no influence on problems associated with Airtel

Since calculated value of Age (2.60), Income (8.30) is less than table value (9.48), Occupation (0.81; 0.88) is less than table value (6.94; 3.84). Calculated value of Gender (14.17) is greater than table value (9.48).

We can conclude that Age, Income, and Occupation have no influence on problems associated with Airtel. Where as gender has influence.

Table IV.5

Problems associated with Airtel – Across demographic

(N=200)

S.No

Problems

Age (yrs)

Gender

Income (000)

A30

(N=74)

B30

(N=126)

Male

(N=154)

Female

(N=46)

A10k

(N=92)

B10k

(N=108)

1.

2.

3.

4.

5.

Signal

Activation & Deactivation

No response for problems

GPRS & Internet

No problems

15

12

5

8

34

23

16

7

10

70

24

20

8

11

91

14

7

5

7

43

22

10

6

11

43

16

18

6

7

61

(Chi)2

2.60

14.17

8.30

S.No

Rating

Occupation

Students

(N=42)

Employees

(N=120)

Professionals

(N=38)

1.

2.

3.

4.

5.

Signal

Activation & Deactivation

No response for problems

GPRS & Internet

No problems

18

12

6

3

3

8

8

4

8

92

12

8

2

7

9

f- value 0.81;0.88

Call center services

About 55% of the respondents often make calls to call center for the information or complaints and so on. On the other hand 15% of the respondents never made calls to call center.

Table IV.6

Calls to call center

(N=200)

Frequency

f

%

Very often

Often

Rare

Never

12

110

48

30

6

55

24

15

Rating of service of call centre:

About 76% of the respondents’ feel that they were well received by call centre executives. About 63% of the respondents felt good with the information provided by call centre executives.

Table IV.7

Rating of call center service

(N=200)

S.No

Aspect

f

%

1.

Reception by call

centre executives

Good

Bad

Can’t say

152

18

30

76

9

15

2.

Information provided

Very good

Good

Bad

Can’t say

20

126

24

30

126

63

12

15

Offers

About 68% of the respondents are aware of updating of services and offers. Only about 76% of the respondents are satisfied with offers being given to them.

Table IV.8

Views on offers

(N=200)

(%)

S.No

Aspect

Yes

No

1.

Aware of updating of services & offers

68

32

2.

Satisfied with offers

46

54

SATISFACTION:

Since mean lies between 1.5-2.5. It can be said that respondents are satisfied with all the aspects like call charges, network coverage, relationship centre & Recharge cards, formalities, and documents processing time, and Hello tunes & Dialer tunes.

Table IV.9

Satisfaction with Airtel

(N=200)

S.No

Aspect

HS

S

D

HD

MEAN(SD)

1.

Call charges

10

132

56

2

2.25 (3.88)

2.

Network overage

62

104

32

2

1.87 (4.7)

3.

Relationship centre & Recharge cards

44

116

34

6

2.01 (4.03)

4.

Formalities, document processing time

26

140

34

0

2.04 (3.03)

5.

Hello tunes & Dialer tunes

22

118

34

26

2.27 (4.70)

Scale: 1-highly satisfied

5-highly dissatisfied

Whether there are any influences of demographic variables on satisfaction with Airtel? A hypothesis is formed to test this

Hypothesis

Ho: Age, Gender, Income, Occupation has no influence on Satisfaction Airtel with call charges.

Since calculated value of Gender (3.02), Income (0.046) is less than table value (3.84). Since calculated value of Age (11.56) is greater than table value (3.84). Occupation (2.32; 5.15) is greater than table value (5.14; 4.76).

We can conclude that Gender, Income have no influence on Satisfaction with Airtel. Where as Age and Occupation has influence on Satisfaction with Airtel.

Table IV.10

Satisfaction of Airtel with call charges- Across demographic

(N=200)

S.No

Reason

Age (yrs)

Gender

Income (000)

A30

(N=74)

B30

(N=126)

Male

(N=154)

Female

(N=46)

A10k

(N=92)

B10k

(N=108)

1.

2.

3.

4.

Highly satisfied

Satisfied

Dissatisfied

Highly dissatisfied

6

36

32

0

4

96

24

2

8

108

36

2

2

24

20

0

4

62

26

0

6

70

30

2

(Chi)2

11.56

3.02

0.046

Note: Satisfied & Highly Satisfied cells are merged. Dissatisfied & Highly Dissatisfied cells are merged to calculate (Chi) 2

S.No

Reason

Occupation

Students

(N=42)

Employees

(N=120)

Professionals

(N=38)

1.

2.

3.

4.

Highly satisfied

Satisfied

Dissatisfied

Highly dissatisfied

2

26

12

2

6

82

32

0

2

24

12

0

f- value 2.32;5.15

RATING OF AIRTEL:

Since the calculated value of mean is 2.07. It can be said that most of the customers rated Airtel as good service provider.

Table IV.11

Rating of Airtel

(N=200)

Rating

f

%

Excellent

30

15

Good

114

57

Average

48

24

Poor

8

4

Mean

2.07

Scale: excellent -1

Poor-4

Whether there are any influences of demographic variables on rating of Airtel? A hypothesis is formed to test this

Hypothesis

Ho: Age, Gender, Income, and Occupation has no influence on rating of Airtel

Since calculated value of Age (1.77), Gender (0.82), Income (3.45) is less than table value (5.99). Since calculated value of Occupation (9.55; 4.76) is less than table value (3.5; 4.6).

We can conclude that Age, Gender, Income, and Occupation have no influence on rating of Airtel.

Table IV.12

Rating of Airtel – Across demographic

(N=200)

S.No

Rating

Age (yrs)

Gender

Income (000)

A30

(N=74)

B30

(N=126)

Male

(N=154)

Female

(N=46)

A10k

(N=92)

B10k

(N=108)

1.

2.

3.

4.

Excellent

Good

Average

Poor

14

42

18

0

16

72

30

8

25

86

37

6

5

28

11

2

14

58

18

2

16

56

30

6

(Chi)2

1.77

0.82

3.45

Note: Average & Poor is merged for calculation purpose

S.No

Rating

Occupation

Students

(N=42)

Employees

(N=120)

Professionals

(N=38)

1.

2.

3.

4.

Excellent

Good

Average

Poor

8

24

6

4

12

68

36

4

10

22

6

0

f- value 3.5;4.6

Preference to other networks

About 55% of the respondents have other network services besides Airtel

About 22% of the respondents prefer other mobile network services to Airtel provided another opportunity to go for.

Table IV.13

Preference to other networks

(N=200)

S.No.

Aspect

f

%

1.

2.

Have other networks

Take other networks

110

44

55

22

Whether there are any influences of demographic variables on preference to other networks? A hypothesis is formed to test this.

Hypothesis

Ho: Age, Gender, Income, and Occupation has no influence on preference to other networks (have other network).

Since calculated value of Age (2.25), Gender (3.19), Income (2.36) is less than table value (3.84). Since calculated value of Occupation (56.3; 3.6) is less than table value (99.5; 18.51).

We can conclude that Age, Gender, Income, and Occupation has no influence on preference to other networks (have other network).

Table IV.14

Preference to other networks (have other network). – Across demographic

(N=200)

Aspect

Age (yrs)

Gender

Income (000)

A30

(N=74)

B30

(N=126)

Male

(N=154)

Female

(N=46)

A10k

(N=92)

B10k

(N=108)

Have other network

Yes

No

56

18

54

72

90

64

20

26

56

36

54

54

(Chi)2

2.25

3.19

2.36

Aspect

Occupation

Students

(N=42)

Employees

(N=120)

Professionals

(N=38)

Have other network

Yes

No

25

17

66

54

19

19

f- value

56.3; 3.6

Hypothesis

Ho: Age, Gender, Income, and Occupation have no influence on preference to other networks (Who take other network).

Since calculated value of Age (0.12), Gender (0.32), Income (0.38) is less than table value (3.84). Since calculated value of Occupation (2.6; 4.8) is less than table value (99.5; 18.51).

We can conclude that Age, Gender, Income, and Occupation have no influence on preference to other networks (Who take other network).

Table IV.15

Preference to other networks (Who take other network). – Across demographic

(N=200)

Aspect

Age (yrs)

Gender

Income (000)

A30

(N=74)

B30

(N=126)

Male

(N=154)

Female

(N=46)

A10k

(N=92)

B10k

(N=108)

Have other network

Yes

No

16

58

30

96

34

120

12

34

23

69

23

85

(Chi)2

0.12

0.32

0.38

Aspect

Occupation

Students

(N=42)

Employees

(N=120)

Professionals

(N=38)

Have other network

Yes

No

14

28

26

94

6

32

f- value

2.6;4.8

Chapter V

Findings and suggestions

Findings:

Airtel tremendous Network coverage has inspired 69% of the respondents to opt for Airtel. As low as 3% of the respondents opted for Airtel for its brand popularity

Gender and Income has no influence on reasons for opting Airtel. Where as Age and Occupation has influence on reasons for opting Airtel.

About 52% of the customers are free from problems with Airtel and 19% of the respondents facing problem with sudden signal droppings.

Age, Income, and Occupation have no influence on problems associated with Airtel. Where as gender has influence.

About 55% of the respondents often make calls to call center for the information or complaints and so on. On the other hand 15% of the respondents never made calls to call center.

About 76% of the respondents’ feel that they were well received by call centre executives. About 63% of the respondents felt good with the information provided by call centre executives.

About 68% of the respondents are getting updates of services and offers. Only about 76% of the respondents are satisfied with offers being given to them.

Most of the respondents are satisfied with all the aspects like call charges, network coverage, relationship centre & Recharge cards, formalities, and documents processing time, and Hello tunes & Dialer tunes.

Gender, Income has no influence on Satisfaction with Airtel. Where as Age and Occupation has influence on Satisfaction with Airtel.

Most of the respondents rated Airtel as good service provider.

Age, Gender, Income, and Occupation have no influence on rating of Airtel.

About 55% of the respondents have other network services besides Airtel.

About 22% of the respondents prefer other mobile network services to Airtel provided another opportunity to go for.

Age, Gender, Income, and Occupation has no influence on preference to other networks (have other network).

Age, Gender, Income, and Occupation have no influence on preference to other networks (Who take other network).

Suggestions

Better to improve network coverage to avoid sudden signal droppings.

Airtel is advised to provide full fledged information to customers, who make calls to call centre.Airtel, is advised to customer care executives to be courteous towards customers.

Better to communicate updating of services and offer with customers.

Review the existing offer packages, if possible improve the packages.

As Age and Occupation has influence on Satisfaction with Airtel. It is better to introduce discriminate pricing for different age groups and for different occupations.

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