Abhishek Rajput 137502 Final Report

8/17/2019 Abhishek Rajput 137502 Final Report

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DAYALBAGH EDUCATIONAL INSTITUTE

Major project : BBM (hons)

Report: Title: Switching Behaviour of

customer in Telecommunication

Industry of India.

With special reference to AgraUttar !ra"esh#

Abhishek Rajput

May 2,2016


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Acknowledgeents

I $o%l" li&e to than& '( s%per)isor !rof* San+a( Bh%shan $ho has gi)en 'e opport%nit( to $or&

%n"er his g%i"ance on this "iffic%lt pro+ect* I $o%l" also li&e to than&s '( other $ell,$isher li&e

Teachers- !rof A&sha( satsangi for his g%i"ance* Both of the' ha)e pro)i"e" 'e their s%pport

an" )ital g%i"ance "%ring the $hole $or&- $hich ena.le" 'e to co'plete this challenging

pro+ect*

I $o%l" also li&e to "e"icate this pro+ect to '( !arents $ho ha)e g%i"e" 'e in e)er( fiel" of life*

Their s%pport $as in"ee" )er( i'portant for '( st%"ies*

Abstract

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The research has .een con"%cte" in or"er to e/a'ine the factors infl%encing .ran" s$itching in

teleco''%nication in"%str( of Agra region of Uttar !ra"esh In"ia#* Triang%lation 'etho"olog(

has .een a"opte" for this p%rpose* 0%alitati)e an" 1%antitati)e 'etho"s ha)e "e)elope" a strong

.ase of research* Literat%re re)ie$ has "isc%sse" all i'portant factors that can infl%ence .ran"

s$itching in teleco''%nication sector* !ri'ar( "ata for research has .een collecte" thro%gh a

1%estionnaire s%r)e( fro' a sa'ple of 233 'o.ile s%.scri.ers* The res%lts of research ha)e .een

presente" in s(ste'atic 'anner* The fin"ings ha)e .een "isc%sse" "escripti)el(* The res%lts of

research s%ggest that price is the 'ost infl%ential factor on .ran" s$itching in

teleco''%nication sector* Other factors that ha)e .een fo%n" infl%ential on .ran" s$itching

$ere 1%alit( ser)ice- .ran" i'age- co)erage area of ser)ice an" tr%st on ser)ice pro)i"er* It has

.een fo%n" that s$itching cost 'ini'i4es .ran" s$itching acti)it(* Bran"s $ith higher s$itching

cost ha)e lo$ rates of c%sto'er s$itching an" )ice )ersa* 5es%lts of research are li'ite" to the

teleco''%nication sector of In"ia onl(* 6%t%re researchers can e/pan" the scope of the

research*

!ontents Acknowledgements....................................................................................................2

Chapter One

Introduction................................................................................................................ 7

1.0 Introduction......................................................................................................7

1.1 Background.......................................................................................................7

1.1.1 Defning Brand witching...........................................................................7

1.1.2 !"pes o# Brand switching............................................................................7

1.1.$ Brie# %iew o# &actors Inducing Brand witching.........................................'

1.1.( Brand witching in !elecommunication Industr"........................................'

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1.2 )ationale o# tud"............................................................................................ *

1.$ Aims and O+,ecti-es o# )esearch......................................................................*

1.( )esearch uestions........................................................................................10

1./ cope and ignifcance o# )esearch...............................................................10

Chapter !wo

iterature )e-iew..................................................................................................... 11

2.0 &actors )elated to Brand witching................................................................11

2.0.1 witching Cost.......................................................................................... 11

2.0.2 rice......................................................................................................... 12

2.0.$ er-ice ualit".........................................................................................1$

2.0.( !rust........................................................................................................1(

2.0./ Other &actors.........................................................................................1/

2.1 Brand witching and o"alt"..........................................................................1

2.2 In3uence o# Ad-ertisement on Brand witching.............................................17

2.$ ummar" o# iterature )e-iew.......................................................................17

Chapter !hree

)esearch 4ethodolog".............................................................................................1'

$.1 )esearch hilosoph".......................................................................................1'

$.2 )esearch Approach.........................................................................................1*

$.( )esearch 4ethods..........................................................................................1*$./ Data Collection !echni5ues.............................................................................20

$./.1 !"pes o# Data...........................................................................................20

$./.2 rimar" data collection techni5ues..........................................................20

$./.2.1 ur-e"s.................................................................................................. 20

$./.$ Contrast o# the data collection tools.........................................................21

$./.( rimar" and econdar" data collection tools emplo"ed in research...... ..21

$././ uestionnaire Design...............................................................................21

$. opulation and ample................................................................................... 21

$.7 !ime cale o# research................................................................................... 22

$.' %alidit" and )elia+ilit" o# )esearch.................................................................22

$.* )esearch 6thics..............................................................................................2$

$.10 4ethod o# Data Anal"sis................................................................................. 2$

$.11 ummar" o# Chapter.......................................................................................2$

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Chapter &our

Data resentation.................................................................................................... 2(

(.1 eneral In#ormation........................................................................................2(

(.2.1 &re5uenc" Distri+ution o# Age o# ample.................................................2(

(.2.2 &re5uenc" Distri+ution o# ender o# ample............................................2/

(.2.$ !"pe o# !elephonic er-ice..................................................................2

(.2.( 4o+i le er-ice ro-ider .......................................................................27

(.2./ witching o# mo+ile ser-ice pro-ider................................................2'

(.$ &indings o# 5uestionnaire................................................................................... 2*

(.$.1 &indings o# art 1......................................................................................2*

(.$.2 &indings o# art 2......................................................................................$*

Chapter &i-e

Data Interpretation and Anal"sis..............................................................................(*

/.1 Anal"sis o# &indings........................................................................................ (*

/.1.1 Anal"sis o# &actors In3uencing Brand witching....................................../0

/.1.2 Anal"sis o# &actors )esisting Brand witching........................................../1

Chapter i8

Conclusion................................................................................................................/2

.1 Introduction..................................................................................................../2

.2 Conclusion....................................................................................................../2.$ )ecommendations........................................................................................../(

)e#erences............................................................................................................... //

uestionnaire……………………………………………………………………………………………

…………….................……./7

Chapter One

Intro"%ction

2*3 Intro"%ction

C%sto'ers ha)e )er( i'portant place for the co'panies* 7ar&et con"itions ha)e .eco'e )er(

co'petiti)e an" co'panies are tr(ing to capt%re share of each other* D%e to intense co'petition

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in teleco''%nication in"%str( c%sto'ers of this in"%str( fre1%entl( s$itch o)er fro' one .ran"

to another* This research is going to in)estigate .ran" s$itching pheno'enon in perspecti)e of

teleco''%nication in"%str(* In this partic%lar chapter .ac&gro%n" of st%"( has .een e/plaine"*

2*2 Bac&gro%n"

2*2*2 Defining Bran" S$itching

C%sto'ers are )er( i'portant pla(ers of the 'ar&et* S%ccess of organi4ations "epen"s on the

satisfaction le)el of c%sto'ers* Originations loo& for$ar" for achie)ing long ter' s%ccess in the

'ar&et* Long,ter' s%ccess can .e achie)e" if co'panies go si"e .( si"e $ith all of their

sta&ehol"ers* In all sta&ehol"ers- c%sto'ers ha)e 'ost i'portant place* C%sto'ers ha)e

"ifferent perceptions- attit%"es- an" .eha)iors to$ar"s "ifferent .ran"s* C%sto'ers often s$itch

o)er fro' one .ran" to the other "epen"ing %pon )ario%s factors* Bran" s$itching occ%rs $hen

c%sto'ers s$itch their lo(alties fro' one pro"%ct to the other one* C%sto'ers8 shift fro' one

pro"%ct to another pro"%ct of si'ilar nat%re is calle" .ran" s$itching .eha)ior of c%sto'ers*

2*2*9 T(pes of Bran" s$itching

Bran" s$itching can .e of t$o t(pes i*e* te'porar( an" per'anent* If cigarette :A; is not

a)aila.le at a shop c%sto'er can shift to cigarette :B;- this is te'porar( .ran" s$itching* It can

.e long lasting if c%sto'ers shift to partic%lar .ran" per'anentl(* !er'anent .ran" s$itching is

har"er to change* Bran" s$itching is .asicall( a process .( $hich c%sto'ers choose to s$itch

fro' a pro"%ct or .ran" of ro%tine %se to another pro"%ct or .ran" of si'ilar nat%re*

Bran" s$itching can .e aggressi)e or "efensi)e* Aggressi)e .ran" s$itching is that t(pe of

s$itching in $hich c%sto'ers are in"%ce" .( a")ertise'ent of pro'otions to .%( a .ran"

"ifferent fro' the .ran" p%rchase" pre)io%sl(* On the other han" "efensi)e .ran" s$itching is a

t(pe of s$itching in $hich a")ertise'ent of pro'otions of co'pan( in"%ce c%sto'ers to .%(

again pre)io%sl( p%rchase" .ran"* Defensi)e .ran" s$itching is a strateg( of co'panies in

or"er to in"%ce lo(alt( in c%sto'ers*

2*2*< Brief =ie$ of 6actors In"%cing Bran" S$itching

A")ertise'ent pla(s )er( i'portant role in .ran" s$itching* It .asicall( pers%a"es c%sto'ers to

s$itch .ran"s* Co'panies %se "ifferent tactics in a")ertise'ent in or"er to attract c%sto'ers of

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co'petitors* A")ertise'ent in"%ces c%sto'ers to s$itch their .ran"s an" i'pro)e sales of

co'panies* Other fir's in the 'ar&et also a")ertise an" attract c%sto'ers* In this $a( total

effect of a")ertise'ent can .e offset* It is s%ggests that a")ertise'ent is 'oti)ational factor for

.ran" s$itching* It also s%ggests that co'panies '%st a")ertise in or"er to pers%a"e

co'petitor8s c%sto'ers to s$itch to$ar"s their .ran"s*

A n%'.er of factors in"%ce s$itching of .ran"s in c%sto'ers* If co'panies "o not 'eet nee"s

an" $ants of c%sto'ers- c%sto'ers can s$itch to co'petitors8 .ran"s* 7ar&et has .eco'e )er(

co'petiti)e an" all the co'panies stri)e for ta&ing 'ar&et share* In or"er to .%il" 'ar&et share

co'panies attract c%sto'ers .( pro)i"ing "ifferent incenti)es li&e lo$ price- high 1%alit(-

"isco%nts or pro'otions* In to"a(8s co'petiti)e 'ar&et s%ccess of co'panies "epen"s on the

repeat p%rchase intentions of c%sto'ers* If co'panies fail to 'anage s$itching .eha)ior of

c%sto'ers * Co'petiti)e prices also pla( their part in in"%cing .ran" s$itching* A n%'.er of

costs are also associate" $ith the s$itching .eha)ior of c%sto'ers* Co'panies that ha)e lo$er

s$itching cost e/hi.it higher rate of .ran" s$itching* S$itching cost is .asicall( the cost

associate" $ith s$itching fro' one pro"%ct to another one*

2*2*> Bran" S$itching in Teleco''%nication In"%str(

Bran" s$itching .eha)ior of c%sto'ers "iffers in "ifferent in"%stries* So'e in"%stries are

characteri4e" .( high .ran" s$itching rates $hile others sho$ lo$ rates of .ran" s$itching*

Teleco''%nication in"%str( is one of the in"%stries $hich possess high rates of .ran"

s$itching * This is 'ainl( "%e to intense co'petition in teleco''%nication in"%str(* A n%'.er of

co'panies are operating in teleco''%nication in"%str( across the $orl"* C%sto'ers of 'o.ile

ser)ice pro)i"er co'panies often s$itch to$ar"s .ran"s $hich pro)i"e e/tra .enefits to the'*

Teleco''%nication in"%str( is characteri4e" .( high gro$th* It has .een fo%n" that the n%'.er

of 'o.ile s%.scri.ers $ill reach at 2933 'illion at the en" of (ear 932? $hich $as

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D%e to intense co'petition in teleco''%nication in"%str( c%sto'ers fre1%entl( s$itch fro' one

ser)ice pro)i"er to another* It has .eco'e )er( i'portant for ser)ice pro)i"ers to in)estigate the

s$itching .eha)ior of c%sto'ers* The st%"( is foc%se" on teleco''%nication in"%str( of In"ia*

7a+or pla(ers of teleco''%nication in"%str( of In"ia are TATA- 5ELIANCE- AI5TEL- BSNL

IDEA TELENO5 an" =ODA6ONE* 7a+or 'ar&et share of In"ian teleco''%nication in"%str(

has .een capt%re" .( these pla(ers*

2*9 5ationale of St%"(

Co'petition in teleco''%nication in"%str( has .een .%il"ing to a great e/tent* In In"ia a

n%'.er of teleco''%nication co'panies are operating c%rrentl( an" 'ore co'panies are

in)a"ing the in"%str(* In co'petiti)e 'ar&et these co'panies al$a(s see& to ta&e the share of

others in ter's of c%sto'ers* Hea)( a")ertise'ents an" price $ar a'ong these co'panies ha)e

create" tro%.le to the c%sto'er lo(alt(* C%sto'ers &eep on s$itching .ran"s in

teleco''%nication sector* Other than price an" a")ertise'ent n%'.ers of factors are

responsi.le for .ran" s$itching .eha)ior of c%sto'ers* S%ccess of co'panies is i"entifie" .( the

repeat p%rchase intention of c%sto'ers so co'panies '%st %n"erstan" the factors that 'a&e their

c%sto'ers to s$itch .ran"s*

2*< Ai's an" O.+ecti)es of 5esearch

5esearch has .een con"%cte" .( consi"ering a n%'.er of o.+ecti)es* The ai' of c%rrent st%"( is

as follo$s

:To e/a'ine the factors infl%encing .ran" s$itching in teleco''%nication in"%str(;

The ai' of the research has .een e/pan"e" thro%gh follo$ing o.+ecti)es

• To e/a'ine the factors that infl%ence .ran" s$itching in teleco''%nication in"%str(*

• To st%"( the c%sto'er preferences of 'o.ile ser)ice pro)i"ers in teleco''%nication

in"%str( of In"ia $ith reference to Agra U*!#*

• To e/a'ine the factors pre)ent .ran" s$itching in teleco''%nication in"%str(*

• To propose reco''en"ations to the 'o.ile ser)ice pro)i"ers for increasing c%sto'er

lo(alt(*

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2*> 5esearch 0%estions

De)eloping research 1%estions is the 'ost critical phase of an( research* The $hole research

pro+ect is act%all( .ase" on research 1%estions* 5esearcher nee"s to "e)elop precise an" clear

research 1%estions for achie)ing s%ccessf%l o%tco'e* 0%estions "e)elope" for this partic%lar

research are as follo$s

• What is 'eant .( .ran" s$itching

• What are the factors that infl%ence c%sto'ers to s$itch 'o.ile ser)ice pro)i"ers in

In"ia

• What is effect of s$itching cost on .ran" s$itching in teleco''%nication in"%str( in

In"ia

• Ho$ can 'o.ile ser)ice pro)i"ers stop their c%sto'ers to s$itch o)er the other .ran"s

2*@ Scope an" Significance of 5esearch

5esearch has .een con"%cte" .( the st%"ent of BB7 in or"er to co'plete his aca"e'ic co%rse in

effecti)e $a(* B( the co'pletion of this research- I a' a.le to %n"erstan" research 'etho"olog(

an" the topic area* Teleco''%nication in"%str( has .eco'ing )er( co'petiti)e "a( .( "a( an"

c%sto'ers are .eing e/pose" to a n%'.er of choices* This research e)al%ates the factors that

infl%ence c%sto'ers to s$itch o)er other 'o.ile ser)ice pro)i"ers* 6actors specific to .ran"

s$itching in teleco''%nication 'ar&et are e)al%ate"* This research is significant for the

researcher as $ell as for the 'o.ile ser)ice pro)i"ers*

Chapter T$o

Literat%re 5e)ie$

C%sto'er is the 'ost i'portant pla(er of 'ar&et* All the efforts of co'panies are "irecte" to$ar"s c%sto'ers* C%sto'er can either re'ain lo(al $ith a partic%lar .ran" or s$itch to

another one* This partic%lar st%"( is going to e)al%ate the factors infl%encing c%sto'ers to

s$itch .ran"s* This chapter presents $or& of pre)io%s researchers regar"ing .ran" s$itching*

6actors infl%encing .ran" s$itching ha)e .een criticall( anal(4e" in the light of pre)io%s

researches on .ran" s$itching*

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9*3 6actors 5elate" to Bran" S$itching

9*3*2 S$itching Cost

S$itching cost is the cost $hich is to .e .orne .( c%sto'ers $hen the( s$itch fro' one .ran" to

another* 7an( researchers ha)e researche" effect of s$itching costs on .ran" s$itching* Literat%re on s$itching cost is )er( li'ite" still there are 'an( researchers $ho ha)e e/plore"

infl%ence of s$itching cost on .ran" s$itching* B%rnha'- 6rels an" 7aha+an ha)e "efine"

s$itching cost as the cost $hich inc%rs $hen c%sto'ers s$itch fro' one pro"%ct or ser)ice to the

other* S$itching cost "oes not inc%r i''e"iatel( at the ti'e of s$itching rather it is a proce"%ral

cost* The( also notifie" that s$itching cost is not restricte" as econo'ic costs rather there are

n%'.er of other costs relate" to it* C%sto'ers 'a( consi"er search cost- ac1%iring cost- learning

cost- an" percei)e" ris& $hile "eci"ing a.o%t s$itching cost*

S$itching cost has .een categori4e" into three gro%ps .( B%rnha'- 6rels an" 7aha+an* These

are

• Transactional cost

• Contract%al cost

• Learning cost*

Transactional cost is the cost $hich is re1%ire" .( c%sto'ers in or"er to start ne$ relationship

$ith a ne$ ser)ice pro)i"er an" it also incl%"es the cost re1%ire" to ter'inate relationship $ith

e/isting ser)ice pro)i"er*

Learning cost refers to the cost $hich is re1%ire" .( the c%sto'ers in or"er to gain e1%i)alent

fa'iliarit( an" ease of %sing the ne$ pro"%ct or ser)ice* Learning cost is non transfera.le cost

an" each ti'e c%sto'er s$itches o)er a partic%lar pro"%ct or ser)ice- learning cost inc%rs*

Contract%al cost is the cost $hich is in"%ce" .( the fir's "irectl( for paneli4ing the c%sto'ers

for s$itching .ran"s* These costs 'a( incl%"e re$ar"s- "isco%nts- repeat p%rchase an" other

circ%lar progra's* These costs inc%r $hen c%sto'ers pro'ise for .eing lo(al or $hen the( sho$

signs of s$itching o)er other .ran"s*

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C%sto'ers can easil( s$itch fro' one ser)ice pro)i"er to the other if s$itching cost is lo$ an"

)ice )ersa*

9*3*9 !rice

In all 'ar&ets incl%"ing teleco''%nication 'ar&et price is the 'ain factor that enco%rages

.ran" s$itching* The( ha)e presente" three )aria.les relate" to price $hich can affect s$itching

.eha)ior of c%sto'ers*

These three )aria.les are

2# !ricing str%ct%re-

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Ser)ice is intangi.le in nat%re an" it is practice" .( the c%sto'ers si'%ltaneo%sl( at the ti'e of

pro"%ction an" cons%'ption* Contact of c%sto'ers an" ser)ice pro)i"ers "eli)ers ser)ice to the

%lti'ate c%sto'ers* 6i)e characteristics ha)e .een i"entifie" .( Gronroos $hich "isting%ish

ser)ices fro' goo"s* These characteristics are as follo$s

• Ser)ices are intangi.le

• Ser)ices cannot .e separate" "%ring pro"%ction- "eli)er( an" cons%'ption

• Ser)ices are heterogeneo%s

• Ser)ices are perisha.le an" cannot .e store"

• There is no transfer of o$nership $hile "eli)ering ser)ices

The interaction .et$een c%sto'ers an" ser)ice pro)i"ers pro)i"e opport%nit( to the c%sto'ers to

assess the ser)ice 1%alit(* Bitner H%..ert "efine ser)ice 1%alit( as the i'pression of

c%sto'ers a.o%t the inferiorit( or s%periorit( of the ser)ice pro)i"ers an" their pro)i"e"

ser)ices* Ser)ice 1%alit( 'eas%re'ent 'o"el has .een presente" .( !aras%ra'an in $hich the(

ha)e i"entifie" fi)e "i'ensions of ser)ice 1%alit(* These fi)e "i'ensions are Tangi.les-

relia.ilit(- ass%rance- e'path( an" responsi)eness* These fi)e "i'ensions can .e categori4e" in

t$o gro%ps* Tangi.les refer to the ph(sical facilit(- 'aterials of personal co''%nication an"

e1%ip'ent* The other fo%r "i'ensions refer to the h%'an interaction or in)ol)e'ent "%ring

ser)ice "eli)er(* These fi)e "i'ensions are ela.orate" as follo$s

Tangibility ph(sical o%tloo&- facilities- e1%ip'ents an" ph(sical appearance of personnel

pro)i"ing ser)ices

Reliability It refers to the a.ilit( of ser)ice pro)i"ers to pro)i"e pro'ise" ser)ices acc%ratel(

an" consistentl(

Responsi"eness It refers to the $illingness of ser)ice pro)i"ers to assist c%sto'ers an" pro'ote

ser)ices

Assurance: It refers to the a$areness an" politeness of personnel pro)i"ing ser)ices in or"er to

esta.lish tr%st

#pathy: It refers to the in"i)i"%al attention of e'plo(ees on c%sto'ers*

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T$o i'portant factors that "eter'ine the "irection of c%sto'er .eha)ior are price an" 1%alit(* It

has .een fo%n" that there is s$apping effect .et$een these t$o factors* C%sto'ers can sacrifice

lo$ prices for high 1%alit(* The( also fo%n" that line clarit(- c%sto'er ser)ices an" co)erage

area also effect ser)ice 1%alit(* All these factors infl%ence c%sto'er s$itching "ecision*

The a.o)e literat%re "isc%sse" a.o%t ser)ice 1%alit( has sho$n the "i'ensions that 'eas%re the

le)el of ser)ice 1%alit(* !re)io%s researchers ha)e sho$n that c%sto'er "ecision is infl%ence" .(

ser)ice 1%alit(* It can .e "e"%ce" that if c%sto'ers are pro)i"e" $ith high ser)ice 1%alit( the(

can .e retaine" $ith the co'pan( or in other $or"s s$itching rate of c%sto'ers can .e re"%ce"*

9*3*>Tr%st

Tr%st has .een )er( i'portant topic st%"ie" in )ario%s "isciplines* It has .een "efine" .( 'an(

researchers in "ifferent perspecti)es* It is characteristic of h%'an personalit( an" is "efine" asthe assess'ent of others a.o%t the 'oti)es an" .eha)iors* To "e)elop tr%st a'ong in"i)i"%als

e/pectation of tr%stor an" perceptions of tr%stee are in)ol)e"* Tr%st a'ong "ifferent in"i)i"%als

is "ifferent "epen"ing %pon the personalit( traits an" "ecision 'a&ing a.ilit( of in"i)i"%als*

5elationship is .%il" $hene)er there is tr%st or "istr%st a'ong in"i)i"%als* Ser)ice pro)i"ers

'%st con)e( a 'essage to the c%sto'ers that the( can .e tr%ste"* The( '%st "epict that the( can

sacrifice for the satisfaction of nee"s of c%sto'ers*

In or"er to .%il" long ter' relationship a'ong in"i)i"%als tr%st has .een the 'ost i'portant

factor* 5esearchers ha)e also s%ggeste" that tr%st is i'portant factor in "eter'ining c%sto'er

lo(alt(* In or"er to .%il" tr%st one part( '%st ass%res the other one that it $ill co'e tr%e at the

e/pectations of the other part(* It is also s%ggest that .%il"ing tr%st is a process in $hich one

part( '%st .e capa.le of f%lfilling the e/pectations of other part( regar"ing cost an" .enefits* It

is an i'portant factor in affecting co''it'ent of c%sto'ers to the co'pan(*

An" it also s%ggest that in or"er to .%il" c%sto'er lo(alt(- tr%st a'ong parties has .een the &e(

ele'ent* Tr%st assists c%sto'ers in 'a&ing "ecision a.o%t p%rchase an" it also gi)es c%sto'ers

a sense of confi"ence on the ser)ice pro)i"ers* 6or st%"(ing the effect of .ran" s$itching I ha)e

st%"ie" effect of tr%st on c%sto'er lo(alt( in perspecti)e of teleco''%nication in"%str(* The(

fo%n" fo%r ele'ents of tr%st i*e* e/perience- co''%nication- .ran" lo(alt( an" relation contact

of partners* Tr%st a'ong ser)ice pro)i"ers an" c%sto'ers act li&e a relationship preser)ing

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force* If c%sto'ers ha)e tr%st on ser)ice pro)i"ers- short ter' alternati)es cannot affect the

c%sto'er lo(alt(* It can .e sai" that tr%st has positi)e relationship $ith c%sto'er lo(alt(* It

s%ggest that tr%st re"%ces percei)e" ris& an" it also reflects cre"i.ilit( of co'panies* He s%ggests

that tr%st on ser)ice pro)i"ers re"%ces %ncertaint( in to"a(8s co'petiti)e an" %ncertain

en)iron'ent* In other $or"s c%sto'ers s$itching .eha)ior is affecte" .( the le)el of tr%st on

ser)ice pro)i"ers*

Literat%re re)ie$ "isc%sse" a.o%t tr%st s%ggests that c%sto'ers are less li&el( to s$itch .ran"s

on $hich the( ha)e tr%st* If ser)ice pro)i"ers ass%re their c%sto'ers a.o%t the f%lfill'ent of their

e/pectations- .ran" s$itching can .e 'ini'i4e"* On the other han" if ser)ice pro)i"ers fail to

esta.lish tr%st .et$een c%sto'ers an" the'sel)es- c%sto'ers are 'ore li&el( to s$itch o)er

co'petitors8 .ran"s*

9*3*@Other 6actors

A.o)e 'entione" factors are critical to the c%sto'er s$itching .eha)ior* Besi"es these factors

there are 'an( other factors i"entifie" .( other researchers that infl%ence c%sto'er s$itching

.eha)ior* C%sto'er s$itching "ecision is not a static an" fi/e" "ecision rather it is a process

$hich is "escri.e" in ter's of three stages i*e* trigger- process an" o%tco'e Inger an" 6ri'en-

933F#* !rocess refers to the reasons for s$itching $hereas trigger refers to the factors that

infl%ence c%sto'ers for .ran" s$itching* It s%ggests that these are the triggers 6actors# $hich

infl%ence c%sto'ers to s$itch o)er .ran"s* Bran" s$itching .eha)ior of c%sto'ers is also

affecte" .( s%.scri.er loc& in* S%.scri.er lic& in is a &in" of .eha)ior in $hich s%.scri.ers loc&

their c%sto'ers onl( to their net$or&* If c%sto'ers $ant to change their ser)ice pro)i"ers the(

ha)e to change their 'o.ile sets* This f%nction can also .e relate" to s$itching cost* S%.scri.er

loc&, in raises s$itching cost an" 'a&es c%sto'ers to sta( $ith the .ran" $ith $hich the( are

attache" Dong an" Won# s%ggests that corporate i'age effects "ecisions of c%sto'ers

regar"ing lo(alt(* Corporate i'age is .asicall( the ph(sical an" .eha)ioral traits of a co'pan(

s%ch as .%siness categor(- .%siness na'e- an" assort'ent of pro"%cts an" ser)ices an" i"ea of

co''%nicating 1%alit( of pro"%cts an" ser)ices* All these factors are so'e$here represente"

a.o)e .%t %n"er corporate i'age these are aggregate"* It has .een fo%n" .( 'an( researchers

that corporate i'age is positi)el( associate" $ith c%sto'er lo(alt(

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E'plo(ees of co'panies create a .ri"ge .et$een co'panies an" c%sto'ers* If e'plo(ees are

lo(al $ith the co'pan(- the( ai' at "eli)ering .est ser)ices to the c%sto'ers* In this $a( lo(al

e'plo(ees can .eco'e so%rce of creating .ran" lo(alt( an" pre)enting .ran" s$itching

If a.o)e factors are 'anage" effecti)el( .ran" s$itching can .e a)oi"e" an" long ter' relations

can .e esta.lishe" $ith c%sto'ers* E'plo(ees are the 'ost i'portant co'ponent of co'panies

an" the( ha)e long lasting effects on perfor'ance of co'panies* Corporate i'age has also

fo%n" to .e infl%ential factor regar"ing .ran" s$itching*

2.1 Brand Switching and Loyalty

Bran" s$itching is the .eha)ior of c%sto'ers to change their %s%al pro"%cts an" s$itch o)er the

others* Lo(alt( is .asicall( the .eha)ior of c%sto'ers to contin%e p%rchasing a partic%lar

pro"%ct or ser)ice*

C%sto'er lo(alt( is "efine" as positi)e attit%"e of c%sto'ers to$ar"s rep%rchasing an"

contin%e" co''it'ent to a partic%lar .ran" in f%t%re* Lo(al c%sto'ers are contin%e" so%rce of

re)en%es for the co'panies e)en in the ti'e of financial crisis* Lo(al c%sto'ers are less e/pecte"

to change their lo(alties to co'petitors8 .ran"s e)en if there is "ecrease in price of co'petitor8s

.ran"s* Lo(al c%sto'ers are )er( i'portant assets for the co'panies so it is )er( i'portant for

the' to retain lo(al c%sto'ers an" to stop the' to s$itch o)er co'petitor8s .ran"s* !rofita.ilit(is "ri)en .( the c%sto'er lo(alt(* Lo(al c%sto'ers are also essential to .e retaine" .( the

co'panies .eca%se the( are so%rce of long ter' profits for the co'panies 5e)erse of c%sto'er

lo(alt( is c%sto'er s$itching* 7o.ile ser)ice pro)i"ers are foc%sing on increasing c%sto'er

lo(alt( .( stopping c%sto'ers to s$itch o)er other .ran"s

2.2 Influence of Advertisement on Brand Switching

A")ertise'ent is foc%se" at attracting ne$ c%sto'ers as $ell as retaining e/isting c%sto'ers*

A")ertise'ent pla(s )er( i'portant role in pers%a"ing non lo(al c%sto'ers to .e lo(al $ith the

co'pan(* It also pre)ents lo(al c%sto'ers to s$itch o)er other .ran"s* It has also .een fo%n"

that a")ertise'ent pers%a"es lo(al c%sto'ers to spen" 'ore on e/isting .ran"s of co'pan(*

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A")ertise'ent pla(s i'portant role to 'a&e c%sto'ers of co'petitor8s .ran"s to s$itch o)er the

a")ertise" .ran"s* It can .e sai" that a")ertise'ent pla(s "o%.le role for lo(al an" non lo(al

c%sto'ers of co'pan(* It infl%ences attit%"es- preferences- an" "ecision 'a&ing process an"

p%rchase intensions of c%sto'ers*

2.3 Summary of Literature Review

Bran" s$itching is a process in $hich c%sto'ers ten" to en" relationship $ith a partic%lar

co'pan( an" start relationship $ith a ne$ one* All in"%stries ha)e e/perience .ran" s$itching

.%t teleco''%nication in"%str( is 'ore e/pose" to it* There are 'an( factors that infl%ence

.ran" s$itching* On one en" the( pers%a"e c%sto'ers to s$itch o)er other co'pan( an" on the

other han" the( pre)ent .ran" s$itching* !rice has .een fo%n" 'ost infl%ential factor in .ran" s$itching in teleco' sector* Besi"es price there ha)e .een 'an( factors that enhance .ran"

s$itching li&e 1%alit( ser)ice- co)erage area- tr%st- a")ertise'ent- an" .ran" i'age* All these

factors ha)e .een criticall( anal(4e" in the literat%re re)ie$ in the light of $or& of pre)io%s

researchers*

Chapter Three

5esearch 7etho"olog(

7etho"olog( of research has .een consi"ere" )er( i'portant for the $hole res%lt .eca%se it can

act%all( i'pact the res%lts of research* This chapter presents "etaile" 'etho"olog( of research

incl%"ing philosoph(- approach- 'etho"s- an" "ata collection tools* 5esearcher has +%stifie" the

choices in accor"ance $ith the ai's an" o.+ecti)es of research*


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6or this partic%lar research- researcher has fo%r options of research philosophies* The first

option for the researcher is realis' $hich .elie)es that realit( is pro"%ct of h%'ani4ing "ifferent

social factors* 5ealists s%ggest that $hat is happening in la.orator( is not necessaril( a realit(*

It researches a pheno'enon on the .asis of researcher8s point of

Secon" option a)aila.le for the researcher is positi)is' $hich "eals $ith the "e)elop'ent of

research h(pothesis on the .asis of e/isting theories of pre)io%s researchers* !ositi)ists rel( on

the )ali"it( of the pre)io%s researchers* Statistical tools of anal(sis are %se" in or"er to test the

h(pothesis %n"er positi)is'*

Thir" option a)aila.le to the researcher is interpreti)is' or socialis' $hich "eals $ith the

e)al%ation of "ifferent social factors fro' researcher8s )ie$point* Socialists are .asicall( against

positi)ists in their )ie$point*

Last option a)aila.le to the researcher is pheno'enolog( $hich "eals $ith the e/periences of

in"i)i"%als* These e/periences res%lt fro' .eliefs- perceptions an" pre)io%s &no$le"ge a.o%t a

partic%lar thing*

5esearch %n"er consi"eration is con"%cte" .( a co'.ination of interpreti)is' an" positi)is'*

The reason .ehin" choosing this philosoph( is that interpreti)is' "eals $ith the attit%"es an"

e/periences $hich are critical for .ran" s$itching an" positi)is' "eals $ith the e/isting theories

$hich are st%"ie" to e/plore research topic* Other t$o research philosophies "o not align $ith

the ai's an" o.+ecti)es of research so the( are a)oi"e" in this partic%lar research* 6actors

infl%encing .ran" s$itching are e/plore" $ith the help of pre)io%s researches an" also on the

.asis of e/periences an" perceptions of c%sto'ers*


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To in)estigate the factors infl%encing .ran" s$itching .oth approaches are %se"* De"%cti)e

approach e/plores e/isting theories an" 'o"els of .ran" s$itching $hereas in"%cti)e approach

e/a'ines the factors $hich infl%ence c%sto'ers of In"ia to s$itch o)er other 'o.ile ser)ice

pro)i"ers* Use of .oth approaches in research 'a&es eas( for the researcher to pro"%ce logical

an" correct reasoning Sa%n"ers et al- 933#* De"%cti)e approach is relate" to interpreti)is'

$hereas in"%cti)e approach is relate" to positi)is'* 5esearcher has relate" .oth approaches in

research in or"er to pro"%ce correct res%lts*

5esearch 7etho"s

There are t$o t(pes of research 'etho"s i*e* 1%alitati)e an" 1%antitati)e research 'etho"s*

Attit%"es- perceptions an" .eha)iors of peoples of societ( are researche" thro%gh 1%alitati)e

research 'etho"s* 0%alitati)e researches 'a&e %se of $or"s $hile e/plaining a partic%lar

pheno'enon* On the other han" 1%antitati)e research 'etho"s "e)elop h(pothesis on the .asis

of e/isting theories an" test the' statisticall( thro%gh "ifferent tests* A large a'o%nt of n%'eric

"ata has .een %se" in 1%antitati)e researches*

This partic%lar research has e'plo(e" triang%lation 'etho"olog( i*e* co'.ination of 1%alitati)e

an" 1%antitati)e research 'etho"s *0%alitati)e 'etho"s are e'plo(e" in or"er to .%il" literat%re

re)ie$ of research $hereas 1%antitati)e 'etho"s are %se" to anal(4e the factors infl%encing

.ran" s$itching in teleco''%nication in"%str( of In"ia* In 1%alitati)e part of research

secon"ar( "ata in the for' of $or"s has .een %se" $hereas in 1%antitati)e part n%'eric "ata in

the for' of percentages has .een %se"* Data collecte" thro%gh .oth approaches is lin&e"

together in or"er to 'a&e a flo$ in the research* In the anal(sis section of research fin"ings of

pri'ar( research i*e* 1%antitati)e "ata has .een relate" to the literat%re re)ie$ $hich is

1%alitati)e "ata* In this $a( coherence has .een achie)e" in the fin"ings of research*


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!ri'ar( "ata can .e collecte" thro%gh o.ser)ations- inter)ie$s- s%r)e(s an" foc%s gro%ps* Here

is a "etaile" "escription an" pros an" cons of pri'ar( "ata collection tools


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21/55

longit%"inal ti'e scale*


22/55

*2 General Infor'ation

5espon"ents $ere as&e" to 'ention their age an" gen"er in 1%estionnaire* Different age

categories possess "ifferent preferences regar"ing 'o.ile ser)ices* Sa'e is tr%e for gen"er of

'o.ile ser)ice s%.scri.ers* 7o.ile ser)ice pro)i"ers can anal(4e the nee"s an" $ants of

"ifferent gen"ers an" that of age categories in or"er to "esign .etter ser)ices for "ifferent

c%sto'er gro%ps*

>*9*2 6re1%enc( Distri.%tion of Age of Sa'ple

6i)e age ranges $ere gi)en in the 1%estionnaire* 6re1%enc( "istri.%tion of age of respon"ents is

sho$n in the follo$ing ta.le*

Age o$ Respondents Age Respondents

Less than 93 Years 2<

92 ,


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Total 233

6re1%enc( "istri.%tion of sa'ple sho$s that 2< respon"ents $ere less than 93 (ears ol"- F

Total 233


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The res%lts sho$ that there $ere @9 'ales an" >F fe'ales in the sa'ple* T$o "e"%ctions can .e

'a"e fro' res%lts* The first is that 'ore 'ales %se telephonic ser)ices an" the secon" is that

'ore 'ales ha)e sho$n their intentions to fill the 1%estionnaire* Graphical representation of

fre1%enc( "istri.%tion of age of respon"ents is sho$n in the follo$ing ta.le

>*9*


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>*9*>

7o.i le Ser) ice !ro)i"er

5espon"ents $ere as&e" to 'ention 'o.ile ser)ice pro)i"er $hose ser)ices are %se" .( the'

c%rrentl(* This 1%estion $as as&e" to anal(4e the 'a+or share of "ifferent 'o.ile ser)ice

pro)i"ers* The res%lts are helpf%l in "eter'ining the 'ost fa)ora.le preference of respon"ents

for 'o.ile ser)ice pro)i"ers* In the follo$ing ta.le responses of respon"ents are s%''ari4e"*

&hich Mobile phone operator is currently in your use(

)er"ice 'ro"ider Respondents

Tata 2

Airtel 93

BSNL 2<

=o"afone 9@

I"ea 2<

telenor 23

Total 233The res%lts sho$ that 2 respon"ents $ere a)ailing 'o.ile ser)ices of :TATA Doco'o#;* 93

respon"ents $ere %sing ser)ices of :Airtel; $hich is fa'o%s .ran" of Teleco' in In"ia* There

are 2< respon"ents $ho $ere %sing 'o.ile ser)ices of :BSNL; $hich is .ran" of go)t* There

$ere 9@ respon"ents $ho %se ser)ices of =o"afone* Onl( 2< respon"ents $ere a)ailing 'o.ile

ser)ices of I"ea ser)ice pro)i"ers* The res%lts sho$ that =o"afone is 'ostl( %se" .( the

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respon"ents* Airtel is fo%n" to .e at secon" place %se" .( the respon"ents* Graphical

representation of res%lts is as follo$s

>*9*@ S$itching of 'o.ile ser)ice pro)i"er

5espon"ents $ere as&e" a.o%t s$itching 'o.ile ser)ice pro)i"ers* This 1%estion $as as&e" for

the f%rther "irection of 1%estionnaire an" also to anal(4e the tren" of s$itching 'o.ile ser)ice

pro)i"ers in respon"ents* The responses a.o%t s$itching 'o.ile ser)ice pro)i"ers are gi)en in

the follo$ing ta.le*

To what e*tent you ha"e changed obile phone operator since you

are a"ailing obile telephony(

)uggestions Respondents Not at all 2<

Once


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>*< 6in"ings of 1%estionnaire

5espon"ents $ere gi)en "irections that if the( ha)e e/perience" 'o.ile ser)ice pro)i"ers then

fill part :A; of 1%estionnaire other$ise 'o)e to part :B;* !art :A; of 1%estionnaire relates to

factors that infl%ence 'o.ile s%.scri.ers to s$itch 'o.ile ser)ice pro)i"ers $hereas part :B;

relates to the factors that pre)ent c%sto'ers to s$itch 'o.ile ser)ice pro)i"er* 6in"ings of .oth

parts are gi)en .elo$

>*


28/55

There $ere respon"ents $ho ha)e ne)er change" 'o.ile ser)ice pro)i"er .eca%se of changes

in price*


29/55

0%estion 9

5espon"ents $ere as&e" that $hether the c%sto'er ser)ice of pre)io%s 'o.ile ser)ice operator

$as poor or not* C%sto'er ser)ice has ta&en an i'portant place in the "ecision 'a&ing process

of c%sto'ers* It has consi"ere" e1%all( i'portant as a pro"%ct* The res%lts of this 1%estion are

s%''ari4e" in the follo$ing ta.le

o you think custoer care ser"ice o$ pre"ious operator was

poor(

)uggestions Respondents

Strongl( Agree 92

Agree


30/55

5espon"ents $ere as&e" $hether .etter ser)ice 1%alit( of ne$ ser)ice pro)i"er has enco%rage"

the' for s$itching* Ser)ice 1%alit( is "eter'ine" .( a n%'.er of factors $hich incl%"e tangi.le

as $ell as intangi.le aspects* The res%lts of this 1%estion are s%''ari4e" in the follo$ing ta.le

-etter ser"ice .uality has persuaded you to switch o"er current

ser"ice pro"ider(


Strongl( Agree 9>

Agree respon"ents strongl( agree" to the fact that .etter ser)ice 1%alit( has

enco%rage" the' to s$itch o)er ne$ ser)ice pro)i"er*


31/55

/alue added ser"ices ha"e persuaded you to switch o"er

current ser"ice pro"ider(


Strongl( Agree 2F

Agree


32/55

Strongl( Agree 2

Agree 9

Ne%tral 2@

Disagree 9@

Strongl( Disagree 2>

Total 233

The a.o)e ta.le s%ggests that 2 respon"ents strongl( agree" to the fact that the( cannot tr%st

pre)io%s 'o.ile ser)ice pro)i"ers* 9 respon"ents agree" to the fact that the( cannot tr%st

pre)io%s ser)ice pro)i"ers* 2@ respon"ents re'aine" ne%tral in their opinion* 9@ respon"ents

"isagree" that the( cannot tr%st pre)io%s 'o.ile ser)ice pro)i"ers* 2> respon"ents strongl(

"isagree" $ith this opinion* Graphical representation of res%lts is as follo$s

0%estion ?

Inno)ations in 'o.ile ser)ices are )er( attracti)e tool for enco%raging c%sto'ers to s$itch

.ran"s* Inno)ati)e ser)ices can pro)i"e c%sto'ers 'ore con)enience* The res%lts of this

1%estion are s%''ari4e" in the follo$ing ta.le

!urrent obile ser"ice pro"ider is inno"ati"e


Strongl( Agree 92

Agree


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Strongl( Disagree 29

Total 233

The res%lts s%ggest that there $ere 92 respon"ents $ho strongl( agree" that c%rrent 'o.ile

ser)ice pro)i"er is inno)ati)e*


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The res%lts s%ggest that there $ere 92 respon"ents $ho strongl( agree" that a")ertise'ent has

attracte" the' to$ar"s ne$ operator*

Agree

Disagree 2

Strongl( Disagree 23

Total 233

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The res%lts s%ggest that 9> respon"ents ha)e strongl( agree" that .etter ser)ice 1%alit( has 'a"e

the' s$itching to$ar"s c%rrent 'o.ile ser)ice pro)i"er* re'aine"

ne%tral- 2 "isagree" an" 23 respon"ents strongl( "isagree" to this fact* Graphical


0%estion

Literat%re re)ie$ has "isc%sse" in "etail that .ran" i'age has infl%ence on .ran" s$itching*

5espon"ents $ere as&e" that $hether .ran" i'age or c%rrent ser)ice pro)i"er has pers%a"e"

the' to s$itch o)er this .ran"* The res%lts of this 1%estion are s%''ari4e" in the follo$ing

ta.le

-rand age has persuaded you to switch o"er the current obile

ser"ice pro"ider


Strongl( Agree 93

Agree


36/55

The res%lts sho$ that 93 respon"ents strongl( agree" to that fact that .ran" i'age has

infl%ence" the' to s$itching to$ar"s c%rrent ser)ice pro)i"er*


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Total 233

5es%lts sho$ that 2 respon"ents strongl( agree" that the( ha)e .een restricte" .( personal or

professional reason to re'ain sta(e" $ith the c%rrent ser)ice pro)i"ers* 9 respon"ents agree"-

2@ re'aine" ne%tral- 99 "isagree" an" 2 respon"ents strongl( "isagree" to the fact* Graphical


0%estion 9

S$itching cost pla(s i'portant role in restricting c%sto'ers $ith their c%rrent ser)ice pro)i"ers*

5espon"ents $ere as&e" that $hether s$itching cost is high for the' or not* The res%lts of this

1%estion are s%''ari4e" in the follo$ing ta.le

)witching to other obile ser"ice pro"ider is costly

)u ggestions o$ Respondents

Strongl( Agree 92

Agree

Disagree 22

Strongl( Disagree 2

Total 233

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5es%lts sho$ that there $ere 92 respon"ents $ho strongl( agree" that s$itching cost is high an"

restricts the' to sta( $ith c%rrent ser)ice pro)i"ers* re'aine"

ne%tral- 22 "isagree" an" 2 strongl( "isagree" $ith the opinion* Graphical representation of

res%lts is as follo$s

0%estion


39/55

99 strongl( agree" that the( cannot tr%st other ser)ice pro)i"ers*


40/55

5es%lts sho$ that there $ere 92 respon"ents $ho strongl( agree" that .etter ser)ice 1%alit(

resists the' to s$itch to$ar"s a partic%lar ser)ice pro)i"er* 9 respon"ents agree"- 2?

re'aine" ne%tral- 2 "isagree" an" 2@ strongl( "isagree" to the fact that .etter ser)ice 1%alit(

resists the' for s$itching* Graphical representation of res%lts is as follo$s

0%estion @

Lo$ charges of ser)ices can .e a techni1%e for ser)ice pro)i"ers to restrict c%sto'ers $ith the'*

5espon"ents $ere as&e" their perception a.o%t lo$ charges an" sta(ing $ith c%rrent ser)ice

pro)i"er* 5es%lts are "ispla(e" in the follo$ing ta.le*

!harges o$ current obile ser"ice pro"ider are low

)u ggestions Respondents

Strongl( Agree 9F

Agree


41/55

9F respon"ents strongl( agree" that lo$ charges of c%rrent ser)ice pro)i"ers pers%a"e the' to

sta( $ith the'


42/55

22 respon"ents strongl( agree" that .etter co)erage ser)ice of c%rrent operator restricts the'

not to s$itch* 9 respon"ents agree"- 2 re'aine" ne%tral- 9F "isagree" an" 2@ respon"ents

strongl( "isagree" to the fact that the( are restricte" .( .etter co)erage ser)ice of c%rrent

operator* Graphical representation of res%lts is as follo$s

0%estion

5espon"ents $ere as&e" a.o%t tr%sting a")ertise'ent of other ser)ice pro)i"ers* So'eti'es

a")ertise'ents are not 'entione" a.o%t hi""en charges of ser)ice* This can create "istr%st in

c%sto'ers* 5es%lts are "ispla(e" in the follo$ing ta.le*

Trusting ad"ertiseent o$ other ser"ice pro"iders is costly as

they include hidden charges


Strongl( Agree 93

Agree


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93 respon"ents sai" that tr%sting a")ertise'ent on other ser)ice pro)i"ers is costl( .eca%se it

incl%"es hi""en charges* There $ere


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29 respon"ents strongl( agree" that the( are resiste" .( .etter c%sto'er ser)ices of c%rrent

ser)ice pro)i"ers for not s$itching .ran"*


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The res%lts sho$ that 92 respon"ents strongl( agree" that .ran" i'age of c%rrent ser)ice

pro)i"ers has resiste" the' to s$itching*


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$ant to re'ain in their tra"itional fra'e of 'in"* This is the reason (o%ng an" 'i""le age

respon"ents ha)e .een fo%n" %sing 'o.ile teleco''%nication 'ore*

It has .een fo%n" that 'a+orit( of the respon"ents %se =o"afone follo$ing .( Airtel* I"ea has

.een recogni4e" as an inno)ati)e teleco''%nication co'pan( in In"ia* 7ost of the (o%ng an"

professional ha)e .een %sing :I"ea; .eca%se it pro)i"es the' inno)ations that can pro)i"e the'

entertain'ent as $ell as sol%tion of their pro.le's* BSNL has also .een fo%n" as one of the

'a+or 'ar&et share hol"er* There $as )er( less percentage of respon"ents $ho ha)e .een %sing

other 'o.ile ser)ice pro)i"ers*

5espon"ents $ho $ere (o%ng ha)e .een fo%n" )er( fre1%ent in s$itching 'o.ile ser)ice

pro)i"ers* It has .een fo%n" that respon"ents $ho are ol"er in age ha)e ne)er s$itching 'o.ile

ser)ice pro)i"ers* It can .e "e"%ce" that these respon"ents 'ight ha)e so'e personal or

professional reason for changing 'o.ile ser)ice pro)i"ers* It has .een fo%n" that respon"ents

$ho are (o%ng ha)e s$itche" for 'ore than < ti'es since the( are %sing 'o.ile

teleco''%nication*

0%estionnaire has .een "i)i"e" into t$o parts* One part relates to s$itchers an" the other one is

relate" to non s$itchers* There $ere F respon"ents $ho ha)e e/perience" s$itching 'o.ile

ser)ice pro)i"er in their life $hereas 2< respon"ents ha)e ne)er e/perience" .ran" s$itching of

'o.ile ser)ice pro)i"ers* It has .een fo%n" that 'ost of c%sto'ers of =o"afone ha)e .een fo%n"

non s$itchers*

@*2*2 Anal(sis of 6actors Infl%encing Bran" S$itching

7a+orit( of respon"ents ha)e .een fo%n" s$itching 'o.ile ser)ice pro)i"ers in response to

changes in call charges* Call charges relate to price )aria.le $hich has .een fo%n" )er(

infl%ential factors for .ran" s$itching accor"ing to literat%re re)ie$* 7ost of the (o%ng

respon"ents $ho 'ight ha)e li'ite" .%"get ha)e .een fo%n" 'ore fre1%ent s$itchers in response

to changes in price* It can .e sai" that price changes affect those c%sto'ers $ho ha)e li'ite"

.%"gets

C%sto'er care ser)ice has also .een an infl%ential factor for .ran" s$itching* It has .een fo%n"

that 'ost of the respon"ents ha)e agree" that .etter c%sto'er ser)ice of c%rrent operator has

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'a"e the' to s$itch to$ar"s the'* 0%alit( of ser)ice refers to tangi.le as $ell as intangi.le

co'ponents of ser)ice* Tangi.le ser)ice refers to .etter )oice 1%alit(- )oice clarit(- ser)ice

a)aila.ilit( etc* On the other han" intangi.le co'ponent refers to c%sto'er care* Both are )er(

i'portant for satisf(ing an" attracting c%sto'ers*

0%alit( conscio%s c%sto'ers ten" to ha)e )al%e a""e" ser)ices pro)i"e" .( the 'o.ile ser)ice

pro)i"ers* It has .een fo%n" that 'ost of respon"ents ha)e s$itche" 'o.ile ser)ice pro)i"ers

.eca%se c%rrent ser)ice pro)i"er grants the' 'ore )al%e a""e" ser)ices* 0%alit( of a ser)ice is

also recogni4e" .( the pro)ision of )al%e a""e" ser)ices*

Tr%st is )er( i'portant factor in esta.lishing long ter' relationship .et$een an( t$o %nits* It has

.een fo%n" that c%sto'ers $ho ha)e e/perience" .ran" s$itching sa( the( cannot tr%st their

pre)io%s ser)ice pro)i"ers* Tr%st con)e(s a 'essage to the c%sto'ers that ser)ice pro)i"er can

"o an(thing in or"er to satisf( their nee"s* If this "oes not happen- c%sto'ers can s$itch o)er

other ser)ice pro)i"ers*

5es%lts sho$ that respon"ents $ho $ere 1%alit( conscio%s )al%e .ran" i'age* These

respon"ents ha)e s$itche" ol" 'o.ile ser)ice pro)i"er .eca%se i'age of c%rrent ser)ice

pro)i"er is 'ore attracti)e* Bran" i'age affects "ecision 'a&ing process of c%sto'ers*

@*2*9 Anal(sis of 6actors 5esisting Bran" S$itching

It has .een fo%n" that 'ost of respon"ents ha)e so'e personal or professional co''it'ents "%e

to $hich the( "o not s$itch 'o.ile ser)ice pro)i"ers* The res%lts ha)e re)eale" that respon"ents

$ho $ere in 'i""le age categor( ha)e gi)en this reason for not s$itching 'o.ile ser)ice

pro)i"ers*

S$itching cost pla(s )er( i'portant role in "eter'ining s$itching attit%"e of c%sto'ers* It has

.een fo%n" that 'ost of the respon"ents $ho ha)e personal or professional co''it'ents also

sai" that s$itching to ne$ ser)ice pro)i"ers can .eco'e costl( so the( prefer to re'ain attach

$ith e/isting ser)ice pro)i"er*

Another factors pre)enting .ran" s$itching is :Tr%st;* In the a.o)e section this factor has .een

recogni4e" as an i'portant factor infl%encing .ran" s$itching* 7a+orit( of respon"ents ha)e

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sai" that the( cannot tr%st other ser)ice pro)i"ers so the( re'ain attache" $ith e/isting ser)ice

pro)i"ers*

It has .een fo%n" fro' res%lts that .etter ser)ice 1%alit( of c%rrent 'o.ile ser)ice pro)i"ers has

resiste" respon"ents to s$itch o)er other .ran"s* Better ser)ice 1%alit( p%ts an i'pression of

s%perior ser)ices in the 'in"s of c%sto'ers* D%e to this i'pression the( "o not s$itch o)er other

.ran"s* Ser)ice 1%alit( also refers to co)erage of ser)ice pro)i"e" . the ser)ice pro)i"ers* !rice

has .een the 'ost i'portant factor in the "ecisions of c%sto'ers for sta(ing $ith e/isting .ran"

or s$itching to the other one*

It has .een pro)e" that a")ertise'ent has pla(e" i'portant role in attracting c%sto'ers to ne$

ser)ice pro)i"ers in the pre)io%s section* The res%lts of this section s%ggest that non s$itchers "o

not tr%st a")ertise'ent of other ser)ice pro)i"ers .eca%se the( incl%"e hi""en charges $hich are

not "ispla(e" in a")ertise'ents* Bran" i'age has also .een fo%n" an i'portant factor that has

infl%ence" respon"ents to re'ain attache" $ith c%rrent ser)ice pro)i"er*

Chapter Si/

Concl%sion

The concl%sion of the $hole research is all the fin"ings ha)e .een concl%"e" here* On the .asisof res%lts of pri'ar( "ata an" that of secon"ar( "ata so'e reco''en"ations ha)e .een

propose" to the teleco''%nication co'panies of In"ia in or"er to stop their c%sto'ers for .ran"

s$itching* 6%t%re prospects of research ha)e also .een presente" in this chapter*

?*9 Concl%sion

This partic%lar research ai'e" at e/a'ining the factors infl%encing .ran" s$itching in

teleco''%nication in"%str( of In"ia* In or"er to e/a'ine the factors triang%lation 'etho"olog(

has .een a"opte"* 0%estionnaire strateg( has .een %se" .( the researcher for collecting pri'ar(

"ata* There $ere F respon"ents $ho ha)e e/perience" .ran" s$itching of ser)ice pro)i"ers at

an( stage in their life* 2< respon"ents ha)e ne)er s$itche" 'o.ile ser)ice pro)i"ers* The

fin"ings of research s%ggest that there price has .een 'ost infl%ential factor in "ecisions of

c%sto'ers regar"ing .ran" s$itching* The res%lts ha)e sho$n that 'ost of respon"ents s$itch

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'o.ile ser)ice pro)i"ers in response to changes in prices* On the other han" ser)ice pro)i"ers

charging lo$ call rates ha)e .een s%ccee"e" in stopping their c%sto'ers to s$itch o)er other

ser)ice pro)i"ers* All c%sto'ers "o not )al%e re"%ction in prices of calls .%t the( )al%e 1%alit( of

ser)ices* So co'panies nee" to 'aintain a .alance in high 1%alit( an" reasona.le price in or"er

to retain c%sto'ers*

High 1%alit( ser)ices ha)e also .een fo%n" an i'portant factor for enco%raging c%sto'ers for

.ran" s$itching as $ell as for retaining c%sto'ers* 7o.ile ser)ice pro)i"ers $ith attracti)e an"

high 1%alit( ser)ices c%sto'er care- co)erage area# ha)e 'a"e c%sto'ers of other co'panies to

s$itch o)er the'* On the other han" c%sto'ers ha)e .een stoppe" .( co'panies for .ran"

s$itching .( pro)i"ing the' 1%alit( ser)ices* 0%alit( ser)ices satisf( c%sto'ers an" %lti'atel(

enhance perfor'ance of co'panies*

S$itching cost has .een fo%n" )er( i'portant factor in stopping c%sto'ers for .ran" s$itching*

S%ggest that co'panies nee" to raise s$itching cost in or"er to retain their c%sto'ers* High

s$itching cost pre)ents c%sto'ers to s$itch o)er others* It can %lti'atel( increase c%sto'er

lo(alt(* Ser)ice pro)i"ers that ha)e lo$ s$itching cost face fre1%ent s$itching of their c%sto'ers

to$ar"s other ser)ice pro)i"ers*

The factor is :Tr%st; $hich is .ase of esta.lishing long ter' relationship $ith the co'panies* If

co'panies fail to 'aintain tr%st $ith c%sto'ers the( cannot start relationship $ith c%sto'ers on

long ter' .asis* The res%lts ha)e re)eale" that c%sto'ers $ho "o not tr%st ser)ice pro)i"ers

s$itch o)er other ser)ice pro)i"ers* On the other han" c%sto'ers $ho "o not tr%st other ser)ice

pro)i"ers ten" to re'ain $ith their c%rrent ser)ice pro)i"ers*

Bran" i'age has also .een fo%n" an infl%ential factor in "eter'ining the final "ecision of

c%sto'ers regar"ing .ran" s$itching* Bran"s that ha)e appealing i'age attract c%sto'ers of

other ser)ice pro)i"ers an" retain their o$n c%sto'ers for long ti'e perio"*

6inall( the o.+ecti)es of research are re)ie$e" as follo$s

• S$itching .eha)ior is a process $hich pers%a"es c%sto'ers to en" relationship $ith a

partic%lar co'pan( an" to start a ne$ relationship $ith another co'pan(*

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• !rice has .een the 'ost i'portant factor that infl%ences .ran" s$itching* Other factors

that ha)e .een fo%n" enco%raging for .ran" s$itching in teleco''%nication in"%str( of

In"ia are Ser)ice 1%alit(- C%sto'er care- )al%e a""e" ser)ices an" .ran" i'age*

• 7ost i'portant factor that pre)ents .ran" s$itching is s$itching cost* High s$itching

cost prohi.its c%sto'ers to s$itch o)er other ser)ice pro)i"ers* Other factors that stop

c%sto'ers for .ran"s s$itching are personal or professional co''it'ents regar"ing

changing n%'.er- lo$ ser)ice charges- high 1%alit( an" appealing .ran" i'age of

e/isting ser)ice pro)i"ers*

• 7ost of the respon"ents prefer =o"afone in In"ia $hich has lo$ s$itching rate* After

=o"afone- Airtel has .een fo%n" pop%lar in the respon"ents*

?*< 5eco''en"ationsOn the .asis of fin"ings of pri'ar( an" secon"ar( research so'e reco''en"ations ha)e .een

propose" to the 'o.ile ser)ice pro)i"ers in or"er to stop their c%sto'ers for .ran" s$itching*

These reco''en"ations are as follo$s

• 5aise s$itching cost associate" $ith the ser)ices so that .eca%se of high cost c%sto'ers

a)oi" .ran" s$itching an" re'ain lo(al $ith e/isting ser)ice pro)i"er*

• !ro)i"e high 1%alit( ser)ices to c%sto'ers that '%st .e acco'panie" .( 1%alit( c%sto'er

care ser)ices an" large co)erage area so that c%sto'ers "o not get an( reason for

s$itching to$ar"s other ser)ice pro)i"ers*

• 7aintain strong an" appealing .ran" i'age so that c%sto'ers re'ain lo(al $ith the

.ran"*

• Ass%re c%sto'ers that co'pan( $ill ta&e stan" in or"er to satisf( their nee"s so that

tr%st$orth( relationship can .e 'aintaine" on long ter' .asis $hich %lti'atel(

enco%rages c%sto'ers to re'ain lo(al $ith the co'pan(*

• Offer lo$ charges acco'panie" .( high 1%alit( ser)ices for stopping c%sto'ers to go for

lo$ charges of other ser)ice pro)i"ers*

5eferences

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• 7*Sathish- *Santhosh %'ar an" *J*Na)een- =*Jee)anantha'- 9322* A St%"( on

Cons%'er S$itching Beha)io%r in Cell%lar Ser)ice !ro)i"er A St%"( $ith reference

to Chennai-

• !aras%ra'an- A*- Keitha'l- =* A* Berr(- L* 2FF#* SE5=0UAL A '%ltiple,ite'

scale for 'eas%ring cons%'er perceptions of ser)ice 1%alit(*

• :E'otional E/periences in C%sto'er 5elationships a Teleco''%nication St%"(-;

• B%rnha' T* A*- J* * 6rels =* 7aha+an* 933#* Enco%nter satisfaction )ers%s o)erall

satisfaction )ers%s 1%alit(*

• The Constr%ction 7o"el of C%sto'er Tr%st- !ercei)e" =al%e an" C%sto'er Lo(alt(-

• Ehren.erg- A*S*C* 9333#* :5epetiti)e A")ertising an" the Cons%'er;

• 6%ha 7%nn%&&a 933@#- D(na'ics of price sensiti)it( a'ong 'o.ile ser)ice

c%sto'ers-

• 6ornell- C* 29#* A national c%sto'er satisfaction .aro'eter

• 6ollan" Sher'an- 933F* The Econo'ics of Health an" Health Care

• L%&as4 Gr4(.o$s&i- 933>* Esti'ating S$itching Costs in the 7o.ile

Teleco''%nications In"%str(*

• Gronroos- C* 23#* 5elationship approach to 'ar&eting in ser)ice conte/t The

'ar&eting an" organi4ational .eha)io%r interface

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• Ganesan S 2>#* Deter'inants of long,ter' orientation in .%(er,seller

relationships*

• Ha(es- B* E* 933F#* The Tr%e Test of Lo(alt(- 0%alit( !rogress

• Ishfa1 Ah'e"-An" gro%p 9323#* A 'e"iation of c%sto'er satisfaction relationship.et$een ser)ice 1%alit( an" rep%rchase intentions for the teleco' sector in !a&istan

A case st%"( of %ni)ersit( st%"ents- *

• Johnson 7ichael D an" Claes 6ornell* 22* A fra'e$or& for co'paring c%sto'er

satisfaction across in"i)i"%als an" pro"%ct categories-

• J%n %e an" Bin Liang 933@- An e'pirical st%"( of c%sto'er lo(alt( in

teleco''%nication in"%str(

• The e)ol%tion an" f%t%re of national c%sto'er satisfaction in"e/ 'o"els*

• en Blac&- 933* B%siness Statistics Conte'porar( Decision 7a&ing*

• 7o%ri- N* 933@#* A Cons%'er,.ase" Assess'ent of Alliance !erfor'ance An

E/a'ination of Cons%'er =al%e- Satisfaction an" !ost,p%rchase .eha)ior

• 5oos- I*- G%stafsson- A* B* E")ar"sson PThe 5ole of C%sto'er Cl%.s in 5ecent

Teleco' 5elationshipsP*

• 5a+&%'ar* 5 *Dr* LJ* Chaarlas- 9322* Bran" S$itching In Cell%lar !hone Ser)ice

In"%str( Beca%se Of Bill,5elate" Iss%es 6ace" B( Clients

• 5a+en"ar %'ar- 933F* 5esearch 7etho"olog(* A!H !%.lishing

• 5%ss,Eft- D*- !res&ill- H* 9332* E)al%ation in Organi4ations

• Ste$art- * 2>#* C%sto'er e/it Lo(alt( iss%es

• Si'on- J*L* Arn"t- J* 2F3#* :The Shape of the A")ertising 5esponse 6%nction

• Sa%n"ers- 7*- Le$is- !* an" Thornhill- A* 933- 5esearch 7etho"s for B%siness

St%"ents- >th e"- !rentice Hall 6inancial Ti'es- Harlo$*

• I'pacts of 5elationship 7ar&eting Tactics on 5elationship 0%alit( in Ser)ice

In"%str(

• Wa(ne Go""ar" - St%art 7el)ille - 933>* 5esearch 7etho"olog( An Intro"%ction-

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uestionnaire

!i" this is A#hishe$ Ra%&ut BB' III (hons) assure you all that this collected information is for research wor$

only and it will not #e disclose In front of anyone.

*eneral Information

+ame ,--------------..... Age,---- *ender,--------..

1. hich /hone ty&e you are using currently0

a) Land line only #) 'o#ile nly c) Land Line and 'o#ile

2. hich 'o#ile &hone o&erator is currently in your use0 ----------.

If you have ever switched mo#ile service &rovider" then answer &art A. If you have never switched mo#ile

service &rovider" then answer &art B of 4uestionnaire.

Part A:

uestions

Strongly

5isa

gree

5isagree neutral agree Strongly

Agree

1. 6or how many times you have changed mo#ileservice &rovider in res&onse to changes in call

charges07 1 2 3 83

2. 5o you thin$ customer care service of &revious

o&erator was &oor0

3. 5o you thin$ customer care service of &revious

o&erator was &oor0

9. Better service 4uality has &ersuaded you to

switch over current service &rovider0

:. Better service 4uality has &ersuaded you to

switch over current service &rovider0

;.


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=. >ou cannot trust &revious mo#ile service

&rovider

?. @urrent mo#ile service &rovider is innovative

. Advertisement of current mo#ile service

&rovider has attracted you

17. Better service availa#ility of current mo#ile

service &rovider has made you to switch over it

11. Brand Image has &ersuaded you to switch over

the current mo#ile service &rovider

QuestionsStrongly

disagree

disagree Neutral Agree Strongly

agree

1. You cannot change current number because of some

personal reason

2. Switching to other mobile serice proider is costly

!. You cannot trust other mobile serice proiders

". Serice #uality of current mobile serice proider is

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better which resists in switching

$. %harges of current mobile serice proider are low

&. %oerage serice of current mobile serice proider

is better than other serice proiders

'. (rusting adertisement of other serice proiders is

costly as they include hidden charges

). %ustomer care serices of current mobile serice

proider are of high #uality which resist inswitching

*. +rand ,mage has persuaded you to stay with the

current mobile serice proider

Abhishek Rajput 137502 Final Report

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