CHAPTER IV INTERMEDIARIES IN THE CELL PHONE...

CHAPTER – IV

INTERMEDIARIES IN THE CELL PHONE SERVICES

4.1 INTRODUCTION

In this chapter an attempt is made to study the intermediaries engaged in cell

phone services in Kanyakumari district of Tamil Nadu. The study covers cell phone

dealers, sim card and recharge/top up card dealers and retailers. The owners of shops

dealing in the above activities have been contacted and requisite information has been

collected. Nokia alone has dealership in the district and the rest of the handset

companies are planning to start their dealership in order to compete with Nokia. The

study has been made with the cell phone dealers who are dealing in different handset

brands. The informants have been selected based on stratified random sample. A total

of 660 sample shop owners spread in the four taluks of Kanyakumari district have

been covered under the study.

The study covers aspects such as age, sex, marital status, educational

qualification, income earned per month etc., so as to reflect the socio-economic status

of the shop owners dealing in cell phone industry. Direct enquiry was conducted by

the researcher using the structured questionnaires.

The data collected were tabulated and analysed and the following findings

are arrived at.

I CELL PHONE DEALERS

Besides the above, the study focuses its attention on the details of the cell

phones and the promotional strategies developed by companies to increase sales. A

total of 120 cell phone shops have been covered and information has been collected.

The study includes the social background of the cell phone dealers and the preference

of the customers as per dealers‘ perception.

4.2 GENDER OF CELL PHONE DEALERS

The gender of the dealers is enquired into, to understand which gender

constitutes the majority in having the mobile handset dealership. Interests of the male

differ from those of female. Female may not have interest in all the areas the male

likes to work. Table 4.1 describes the interest of males and females in doing handset

business.

Table 4.1

Gender of Cell phone Dealers

Gender No. of Dealers Per cent

Male 86 72

Female 34 28

Total 120 100

Source: Field Survey

Out of 120 shop owners covered by the study, 72 per cent are males and the

rest females. The study reveals that the industry is male-dominated. It could be

inferred that in the male-dominated society, it is quite natural that men dominate all

industries. The cell phone industry is no exception to this and shows males

constituting a greater proportion in setting up cell phone dealership.

4.3 AGE GROUP OF THE CELL PHONE DEALERS

A frequency distribution of three age groups of intermediaries is given. The

first one covers the youths belonging to 18 to 25 years; the second one belongs to

middle age of 26 to 40 years; the third one belongs to upper age group of 41 to 60

years. Such distribution is made keeping in mind the enthusiasm normally evinced by

the youth, the responsibility always shouldered by the middle aged and the restful

resilience shown by the upper age group with happy and contended mind.

Table 4.2

Age Group of Cell phone Dealers

Age No. of Dealers Percent

18 to 25 20 17

26 to 40 62 51

41 to 60 38 32

Total 120 100


Table 4.2 shows that 17 per cent of dealers belong to the first category, one out

of every two traders contacted belongs to the second category and one out of every

three traders belongs to the upper age category. It is derived that nearly half of mobile

handset dealers are middle aged and the rest belong to the youth and upper age group.

4.4 MARITAL STATUS OF THE CELL PHONE DEALERS

Marital status exerts enormous influence on the attitudes and approaches of

traders in their chosen business enterprises, where as bachelors and spinsters are a

little unrestrained in their endeavours to reap profits in the business they choose.

Married people would think twice using the business acumen to embark upon

innovative approaches to do their business.

Table 4.3

Marital Status of Cell phone Dealers

Marital Status No. of Dealers

Total Per cent Male Female

Single 12 - 12 10

Married 72 36 108 90

Total 84 36 120 100


Table 4.3 shows that majority of the traders belong to the married category;

only 10 per cent remains unmarried at the time of the survey. They are, therefore, able

to keep pace with the rapid proliferation of the new trade in Kanyakumari district.

4.5 EDUCATIONAL BACKGROUND OF THE CELL PHONE DEALERS

In the educationally forward district of Kanyakumari, the survey brings to light

how new avenues of opportunities are open to the literate to become self-employed.

Thanks to the introduction of cell phone services, a lot of people have found a new

attractive business to make benefits. Business trait is developed in a person if he is

educated to some extent to manage the circumstances encountered in business

everyday, to judge situations appropriately as they arise and to take suitable course of

action whenever necessary.

Table 4.4

Educational Background of Cell phone Dealers

Educational

Qualification

No. of Dealers Total Per cent

Male Female

Higher Secondary 04 01 06 05

Diploma 16 06 22 18

Under Graduation 45 46 92 77

Total 84 36 120 100


From the table, it is inferred that 77 per cent of dealers are undergraduates, 18

per cent of them are diploma holders and 6 per cent of them have studied upto higher

secondary level. The survey reveals that all dealers are educated to do simple

arithmetic and accounting and have an agreeable level of communication talent. This

is evident from the qualification they possess.

4.6 OCCUPATION OF THE PARENTS OF CELL PHONE DEALERS

Occupation of the parents of cell phone dealers has been studied to know the

family background of the dealers. Family background plays a major role while

selecting a profession. Family support through guidance or assistance to start or run a

business, by providing fund or any other alternative assistance to develop the business,

is required. Table below describes this fact.

Table 4.5

Occupation of the Parents of Cell phone Dealers

Parent’s Occupation Male Female Total Per cent

Teacher 12 04 16 14

Business 15 08 23 19

Agriculturist 26 08 34 28

Govt. Employee 10 02 12 10

Pvt. Employee 11 05 16 13

Others 12 07 19 16

Total 86 34 120 100


From the table, it is inferred that 14 per cent of the dealers‘ parents are

teachers, 19 per cent from business background, and 28 per cent of the parents are

agriculturists and only 10 per cent of parents are government employees. It is made

clear that Kanyakumari district is well known for its climate and fertility of the soil

which enable high level agricultural growth and harvest, and therefore majority of the

parents have agriculture as occupation.

4.7 OWNERSHIP OF THE SHOPS USED BY THE CELL PHONE DEALERS

The cell phone dealers may do their business in their own shops or in rented

shops taken for lease. Since Kanyakumari district is developing in business, people

from other districts come and start their businesses and earn high profits. Due to this,

the demand for shops is high and also the rent collected is exorbitant. The value of

land is also increasing day by day and it is not possible to get a land for business near

major business areas. Under the circumstances, it is essential to know in what sort of

shops the dealers are doing their business. Table 4.6 depicts the nature of shops in

relation to ownership or non-ownership.

Table 4.6

Ownership of the Shops Used By the Cell Phone Dealers

Nature

of

Shop

No. of Dealers

Total Per cent Kalkulam Vilavancode Agasteeswaram Thovalai

Own 04 08 02 02 16 13

Rent 23 18 25 26 92 77

Lease 03 04 03 02 12 10

Total 30 30 30 30 120 100

Source: Primary Data

From the table, it is inferred that 13 per cent of the dealers have their own

shops, 77 per cent of the cell phone shops are rented ones and only 10 per cent of the

shops are leased. Therefore, it is clearly identified that most of the cell phone dealers

are in rented shops. Due to the availability of plenty of shops for rent as well as the

cheap cost incurred compared to the other two factors, dealers prefer rented shops and

also the rented shops are readily available for their business.

4.8 AVERAGE INCOME OF THE CELL PHONE DEALERS

Profit motive propels a person to sustain interest in any business, be it small

or big. With a large clientele already existing and potential customers waiting to be

absorbed, the cell phone business has become a good money spinner in Kanyakumari

district. Dealers of cell phone trade, with dexterity, tame the situation to their favour

and there is a steady flow of income for those who are dedicated to this trade. Hence,

it is felt necessary to study the average income per month earned by the mobile

dealers. Table 4.7 highlights the average income per month earned by cell phone

dealers.

Table 4.7

Average Income per month of the Cell phone Dealers


Table 4.7 presents income earned by 120 mobile handset shop owners

contacted for the survey. Five per cent of the respondents earn a monthly income of

less than Rs.5000. Nearly two-third of the dealers earn a monthly income exceeding

Rs.10,000 and reaching up to Rs.20,000; only 7 per cent alone cross Rs.20,001 per

month upto Rs.25,000. The expenditure apart, what is left with the shop owners help

them to augment the sales of handsets and sim cards and continue to sustain the trade,

at the time of survey.

4.9 YEARS OF EXPERIENCE IN RUNNING THE CELL PHONE BUSINESS

Experience, especially, positive experience tends to make the traders change

their behaviour, attitudes and involvement in the trade they undertake. Going by this

yardstick, an attempt has been made to present the years of experience the traders have

undergone in their chosen field of mobile handsets distribution to clients. The

Income per month

(in Rupees)

No. of Dealers Total Per cent

Male Female

Below 5000 04 02 06 05

5,000 to 10,000 52 24 76 63

11,000 to 20,000 14 16 30 25

21,000 to 25,000 05 03 08 07

Total 86 34 120 100

proliferation of trading activities in mobile handset is of recent origin although two

decades have passed since it was launched modestly in the year 1985. Hence, the

study has covered the duration of experience gained by the traders to minimum of 5

years and above. Table 4.8 presents this.

Table 4.8

Years of Experience in Running the Cell phone Business

Years of experience No. of dealers Per cent

1 year 08 07

2 years 07 06

3 years 78 65

4 years 11 09

5 years 06 05

Above 5 years 10 08

Total 120 100


Table 4.8 highlights the fact that 65 per cent of dealers have three year

experience, when the sales promotion of mobile handsets was at its highest. 95 per

cent of the dealers had gained agreeable level of experience and they have remained in

the business for more than three years and the trade has sustained them. However, in

the recent years, as competition is stiff, only 15 per cent of the traders have entered the

business with experience limited to two years and below. The future is still open to

new traders who would have their shops established in hitherto unexplored areas as

demand for mobile handsets is increasing ever.

4.10 AVERAGE CAPITAL EMPLOYED FOR THE CELL PHONE SHOP

This aspect has been studied in order to find out how much investment was

made by the various cell phone dealers for running their business. When increased

investment is made, it shows that the business yields a profitable return and that

enables the traders to involve themselves fully in the business at present and in future

also.

Table 4.9

Average Capital Employed for the Cell phone Shop

Particulars Amount (Rs.) Amount(Rs.) Per cent Per cent

Fixed Assets

Land & Building

Furniture

OtherSpecific Assets

Deposits

Air conditioners

Electrical appliances

Display frames

Total Fixed Assets

Add: Current Assets

Stock of Cell

Phones

Accessories:

Battery

Charger

Cell Panel

Head Phone

Memory cards

Handset Board

Cellphone Covers

Debtors:

Cash:

Total Current Assets

Total Assets

Less: Current Liabilities

Bank O/D

Creditors

Short Term loans

[ C.A – C.L.]

Working Capital

[F.A + W.C]

30,000

20,000

10,000

20,000

2,00,000

10,000

80,000

44.58

2.23

17.83

25.78

11.14

22.29

64.63

59.21

1,00,000

2,880

2,330

2,280

2,370

1,120

3,280

1,400

2,90,000

1,15,660

50,000

1,00,000

25,000

60,000

22,000

2,65,660

5,55,660

1,07,000

1,58,660

123.85

23.85

Capital employed 4,48,660 100


From the table, it is inferred that among the total capital employed, the cost of

land and building constitute the greatest portion and it accounts for 44.58 per cent of

the capital employed. In the other fixed assets, namely, furniture constitutes 2.23 per

cent; other specific assets, namely, air conditioners, electrical appliances and display

frames account for 17.83 per cent.

The proportion of total current assets constitutes 59.21 per cent of the total

capital employed. Current liabilities are worked out to be 23.85 per cent of the total

capital employed. It is derived that the cell phone dealers run their business by

borrowing from banks and other creditors. This indicates that the cell phone dealers

are suffering from lack of finance on a long-term basis.

4.11 AVERAGE SALES FREQUENCY OF CELL PHONES PER MONTH

Sales frequency of cell phones per month was studied to know which cell

phone brand captures the mind of customers among the various players in the market

and the various aspects attracting the customers to buy the mobile. And also it

provides a guideline to the dealers to stock the mobiles in order to meet the demand of

the customers immediately, without any delay.

Table 4.10

Average Cell phone Sales Frequency Per Month

Sales Brand of cell phone

Total Frequency

per month 1-10

Per

cent

10-

20

Per

cent

20-

30

Per

cent

30-

40

Per

cent

40-

50

Per

cent

Abov

e 50

Per

cent

Nokia 26 21.7 19 15.8 30 25 10 8.3 30 25 05 4.2 120

Sony

Ericson 12 66.7 03 16.7 03 16.7 - - - - - - 18

Samsung 15 68.2 02 9.1 05 22.7 - - - - - - 22

Seimens 13 76.5 04 23.5 - - - - - - - - 17

LG 8 53.3 05 33.3 02 13.3 - - - - - - 15

Motorola 7 53.8 05 38.5 01 7.7 - - - - - - 13

Reliance 2 0

56.6 08 21.1 10 26.3 - - - - - - 38

Tata

Indicom

10 52.6 04 21.1 05 26.3 - - - - - - 19


From the table, it is inferred that the 26 Nokia mobile phones are sold on an

average of one to ten per month. Similarly the other brands are also sold 12, 15, 13, 8,

7, and 10 respectively for the Sony Ericson, Samsung, Siemens, LG, Motorola,

Reliance and Tata Indicom. On an average, Nokia mobile has the largest sale per

month. Due to its brand familiarity and all other attractive features, it has reached the

customers successfully. Motorola was initially successful among the customers but

later the other brands entered and it could not withstand the competition and lost its

market.

4.12. AVERAGE SALE OF CELL PHONES PER MONTH IN

DIFFERENT TALUKS

People‘s tastes and preferences vary from place to place. The four taluks

taken for the study consist of different types of people including high income level to

low income level people. Based on the availability, income, taste and preference, the

cell phone sales vary from taluk to taluk. The average sale of cell phone per month in

different taluks has been studied in order to know which taluk has the highest

percentage of cell phones of different brands sold.

Table No. 4.11

Average Cell phone Sales per month in Different Taluks

Taluk

Brand

Vilav

anco

de

Per

cent Kalkulam

Per

cent

Agastees

waram

Per

cent Thovalai

Per

cent Total

Nokia 29 24.2 31 25.8 28 23.3 30 25 120

Sony

Ericson 05 27.8 04 22.2 07 38.9 03 16.7 18

Samsung 06 27.3 03 13.6 08 36.4 04 18.2 22

Seimens 04 23.5 06 35.3 04 23.5 03 17.6 17

LG 04 26.7 03 20 05 33.3 03 20 15

Motorola 03 23.1 02 15.4 02 15.4 06 46.2 13

Reliance 07 18.4 10 26.3 12 31.6 09 23.7 38

Tata

Indicom 06 31.6 03 15.8 08 42.1 02 10.5 19


From the table, it is inferred that Agasteeswaram, being town area has a sale

percentage of about 23 per cent for Nokia and Sony Ericson has around 40 per cent.

Following Agasteeswaram, Kalkulam stands second in the mobile sales and services;

Thovalai stands third and Vilavancode stands last in the district in the mobile sales.

Being small in area and less developed and having towns few in number, Vilavancode

stands last in the mobile sales.

4.13 DISTRIBUTION SHOWING THE RANK OF AVERAGE CELL

PHONE SALES PER MONTH

Various brands and models of mobile handsets are available in the market

with prices ranging from very high amounts to cheap and affordable rates. Tough

competition exists among the cell phone brands. The perception of the ranks held by

the leading brands enables the traders to stock the mobile handsets in consonance with

the preference of the customers. They stock the varieties and brands for ready sales to

customers. Such a feedback helps the manufacturers to establish their manufacturing

units in the state where the over-all preference for their products is at the highest. This

is one of the reasons why Nokia established its manufacturing unit in Tamil Nadu.

From very high prices to affordable low prices, varieties of cell phones are displayed

in the market. Assessing the inclination of the customers in their area and their

affordability, some wise decisions are taken by the shop owners.

Table 4.12

Distribution Showing the Rank of Average Cell phone Sales per Month

Brand 5 4 3 2 1 Weighted

Total

Weighted

Average Rank

Nokia 86 32 2 0 0 564 4.7 I

Sony 74 21 16 9 0 520 4.3 III

Samsung 80 23 12 5 0 538 4.5 II

Seimens 34 24 16 18 28 414 3.5 V

Motorola 12 0 56 20 32 300 2.5 VI

LG 58 32 10 14 06 482 4.02 IV


From the table, it is seen that Nokia mobiles are mostly preferred. Compared

to other company products, Nokia mobile claims patronage from larger number of

mobile handset users. The descending order of preference as revealed by the table

indicates that Samsung claims the second place followed by Sony in the third place.

The fourth place goes to LG mobiles and in the run up of clientele‘s preference,

Siemens has the fifth place and Motorola gets a distant sixth place. Easy availability,

varieties, the brand names and continued publicity have captured the mind of the

customers which is reflected in their preference. Nokia has all these in full measure

and no doubt it claims the first place.

4.14 REASONS FOR PREFERRING A PARTICULAR BRAND

There are various reasons existing among the customers to select a particular

handset. The table below shows the reasons for selecting a particular handset by the

customers. From the point of view of dealers, that which meets the tastes of the

customers, which are governed by captivating models, their popularity, their quality

and their ready availability is preferred by the customers. Captivating models are those

which are sleek, handy compact and having all features desired by a cell phone

consumer. As possessing a mobile handset gives an illusory eminence to youngsters,

they prefer popular models to unpopular ones, even though the latter do the function

much better than the former. The study has brought to light these facts. The attractive

models lure the customers and claim their first choice.

Table 4.13

Reasons for Asking for a Particular Brand

Attributes 5 4 3 2 1 Weighted

Total

Weighted

Average Rank

More Popular 92 09 04 03 02 516 4.3 II

Influence 36 29 16 13 18 388 3.2 V

Fits with

personality 16 09 17 12 72 245 2.0 VI

Availability 08 10 06 15 81 209 1.7 VIII

Promotional

Activities 06 10 12 22 70 220 1.8 VII

Price 14 12 83 06 15 394 3.3 IV

Quality 78 12 14 13 03 509 4.2 III

Attractive Models 81 11 21 03 04 522 4.4 I


From the table, it is inferred that captivating models are those which are sleek,

handy compact and have all features desired by a cell phone consumer. The study has

brought to light the above fact. Popularity of the cell phone finds acceptance as a

secondary preference. Thirdly, the customers rely more on the quality of the handsets

on sales. They are inclined to own any cell phone when their earlier choices are

incapable of being fulfilled. They have no other way except resorting to what is

available in the market at the time of their purchase.

4.15 YOUNGSTERS’ PREFERENCE FOR TYPES OF CELL PHONE

Customers are particular about the function of each handset that they are lured

to buy. But their choice of the handsets is governed by the types, some of which are

ordinary, colour, camera attached, and having provision for video camera operation.

This choice is in keeping with the fashion and youngsters are crazy to have these to

gloat in their possession. This is presented in the Table 4.14.

Table 4.14

Youngsters’ Preference for Types of Mobile


From the table, it is inferred that 30 per cent of the customers go for

handsets with camera and video camera attachment (40 per cent). Youngsters do not

bother about the cost. They want to display their possession during this stage of their

life.

4.16 FREQUENCY OF CELL PHONES CHANGED BY CUSTOMERS

Customers‘ taste and preference change from time to time. As new models are

introduced, customers desire to substitute the old ones for the new models available in

Type of mobile No. of respondents Per cent

Ordinary 12 10

Colour 24 20

Camera 36 30

Video Camera 48 40

Total 120 100

the market. This study reveals the fact about the frequency of mobile handset

changes.

Table 4.15

Frequency of Cell phones changed by Customers

Frequency No. of respondents Per cent

Below 6 months 23 19

6 months – 1 year 36 30

2 years to 3 years 54 45

Above 3 year 07 06

Total 120 100


From table 4.15, it is seen that most of the customers switch over to new

fashionable handsets within two to three years they come to possess a handset. Thirty

per cent are inclined to effect change of handsets within six months to one year. Only

six per cent of the users prefer to make changes after waiting for about three years. A

number of reasons could be adduced for such a switch over. The most plausible

reason has been that being dissatisfied with the one they hold, they go in for another

when it is made with latest technology and priced at affordable rates. A reading of the

above table unmistakably reveals this attitude on the part of customers.

4.17 CELL PHONES PREFERRED BY LADIES

The taste and preference of ladies with regard to possessing mobile handsets

are at variance with males. They appear to be quality as well as cost conscious.

However, this has not restrained them from succumbing to fall prey to own new and

fashionable handsets. The study brings to light the brands they are enamoured to

possess.

Table 4.16

Cell phones Preferred by Ladies

Brand No. of respondents Per cent

Nokia 42 35

LG 33 28

Sony 12 10

Motorola 14 12

Samsung 10 08

Siemens 09 07

Total 120 100


From the table, it is clear that 35 per cent of the ladies prefer Nokia handsets,

28 per cent of them are convinced to go in for LG mobiles while only seven per cent

deem it fit to have Siemens handset. Most of the ladies are fantasized to select Nokia

as it offers different models at cheaper rates compared with other brands in the market.

4.18 ASPECTS PREFERRED BY LADIES IN THE CELL PHONE

A further analysis of ladies‘ preference for a particular brand of handsets

reveals that the size, the brand, the price, the warranty offered and the availability of

after sale service and the captivating nature or attractiveness of the handsets have

exerted much influence on purchase decisions. This is presented in Table 4.17.

Table 4.17

Aspects Preferred by Ladies in the Cell phone

Aspects No. of respondents Per cent

Compact 26 21

Different features 12 10

Brand Name 11 09

Price 32 27

Warranty 13 11

After Sale Service 12 10

Attractiveness 14 12

Total 120 100


From the table it is quite evident that 21 per cent of ladies select compact size

handsets. Eleven per cent considers warranty; 10 per cent of the ladies are particular

about the ready availability of after sales service. Twelve per cent however lay stress

on the attractiveness of handsets. As ladies are cost conscious, they do not want to

spend on costly handsets. After all, according to them, any handset at whichever price

available in the market is capable of meeting the basic needs of contact and quick

communication with others.

4.19 PRICE RANGE OF CELL PHONES PREFERRED BY LADIES

As already stated, ladies are known to be cost and beauty conscious. They

think twice before spending too much for the mobile handset. An attempt has been

made to identify how much amount is spent by the ladies for the purchase of mobile

phones. This is presented in the table below.

Table 4.18

Price Range of Cell phones Preferred by ladies

Price No. of respondents Per cent

Below 4000 65 54

4000 – 6000 32 27

6000 – 8000 13 11

Above 8000 10 08

Total 120 100


From the table, it can be gleaned that 54 per cent of ladies spend Rs.4000 and

below, 27 per cent of the ladies spend between Rs.4000 and Rs.6000, 11 per cent of

ladies spend above Rs.6000 and up to Rs.8000 and only eight per cent of the ladies

spend above Rs.8000 for the purchase of cell phones. The study reveals that ladies

are, no doubt, highly cost conscious. They do not want to spend more money for items

like handsets. They are aware that any mobile handset irrespective of the price

difference meets their requirement of easy contact and quick communication with the

dear and near and the others.

4.20. RANKING OF ATTRIBUTES URGING THE PILING OF STOCK

OF CELL PHONES

Dealers must keep enough stock of goods to meet the demand of their

clienteles. If there is a mismatch between demand and supply, no business can be

sustained with the tempo needed to gain advantage. To carry out the business,

therefore, an uninterrupted supply of handsets is indispensable. Dealers need to pile

up stocks to meet the anticipated demand. The factors that influences piling of stock

are enumerated as per the version of the dealers and the same are presented in the table

4.19.

Table 4.19

Ranking of Attributes urging the Piling of Stock of Cell phones

Attributes 5 4 3 2 1 Weighted

Total

Weighted

Average

Rank

Company

Support 36 12 21 23 28 365 3 VI

Brand Image 41 13 12 21 33 368 3.1 V

Customer Pull 83 12 11 06 08 516 4.3 II

Promotional

Schemes 76 21 14 05 04 520 4.33 I

Price 54 11 22 24 09 437 3.6 III

Quality 35 28 23 22 12 412 3.4 IV


From the table, it is understood that the number of promotional schemes

introduced by the manufacturing companies have an impact on piling up of the stock

of handsets. Handsets that command highest demand are kept in bulk by the traders.

The quantum of stock has a bearing on the stock held by the traders. The quality of

the handsets encourages the traders to increase the stock of these handsets.

Sales promotional schemes enable the dealers to stock handsets at an

advantage. The customers‘ choice has also influenced the piling of the stock to a

greater extent.

II SIM CARD DEALERS

There are number of service providers available in the market serving as

agents for Aircel, Airtel, BSNL, Vodafone, Tata Indicom, and Reliance. From among

the rich service providers, a sample of 120 have been selected for study in detail from

the four taluks of Kanyakumari District. The details of the study include the social

background of the cell phone service providers, their perceptions to meet the

requirements of customers and the like.

4.21 GENDER OF SIM CARD DEALERS

Interests of the males differ from those of females. Females appear to

be shying away from this business as their interests lie elsewhere. Table 4.20 describes

the interests of males and females in the sim and recharge business.

Table 4.20

Gender of Sim Card Dealers

Gender No. of Dealers Per cent

Male 92 77

Female 28 23

Total 120 100


Table 4.20 shows that among the sim card dealers, males constitute the major

proportion of 77 per cent and the females constitute only 23 per cent. It is clear from

the study that the males are highly interested in cell phone service providing business.

4.22 AGE OF THE SIM CARD DEALERS

The reaction and response of persons of different age groups are not uniform.

They act differently. The spirit and enthusiasm of youngsters may not be there in the

aged where as the aged have experience and wisdom to meet any eventualities. The

youngsters, for want of experiences may buckle in such circumstances. The study

focuses its attention on this aspect.

Table 4.21

Age of the Sim card Dealers

Source:

Field Survey

From the table, it is inferred that most of the dealers belong to the middle age

group of 41- 60. A person reaches this stage after passing through adult stage.

Persons belonging to this category are rich with experience, knowledge and expertise

to carry out the business in an orderly manner.

4.23 MARITAL STATUS OF THE SIM CARD DEALERS

The marital status of the dealers has been studied in order to find whether the

respondents who are involved in the mobile service business are responsible married

ones or the care free unmarried bachelors. Table 4.22 presents the same.

Age No. of Dealers Percent

18 to 25 06 05

26 to 40 38 32

41 to 60 62 51

Above 60 14 12

Total 120 100

Table 4.22

Marital Status of the Sim card Dealers

Marital status No. of Dealers Per cent

Single 59 49

Married 61 51

Total 120 100


Table 4.22 shows that majority of the respondents are married; 61 respondents

who constitute the 51 percent are married and 59 respondents who constitute 49 per

cent are single.

4.24 EDUCATIONAL QUALIFICATION OF SIM CARD DEALERS

Literacy level of dealers was enquired into and is presented in Table 4.23.

Education influences not only perceptions of a person but also the knowledge towards

any business. This is analysed in details in the table below.

Table 4.23

Educational Qualification of Sim card Dealers

Educational qualification No. of service provider Per cent

SSLC 12 10

Higher secondary 24 20

Under graduation 68 57

Post graduation 16 13

Total 120 100


Table 4.23 explains that the larger proportion of sim card dealers‘ literacy

level is limited to graduation (57 per cent). About 13 per cent are post graduates and

twenty percent of them have reached only higher upto secondary level.

4.25 INCOME PER MONTH OF THE SIM CARD DEALERS

Income is an essential attribute that plays a major role in the life of every

person. A person can not undertake a work or business which does not give him

reasonable income. Hence, an attempt has been made to study the income of the

dealers in order to find out how much income they earn from dealing in mobile

connections in a month. Table 4.24 depicts the income differential.

Table 4.24

Income per Month of the Sim card Dealers


From Table 4.24, it is inferred that 33 per cent of the dealers earn below Rs.

5000, 57 per cent earns between Rs. 5,000 and 10,000, 10 per cent between Rs.11,000

and 20,000, the majority of income earned by the dealers is between Rs.5,000 and

10,000

4.26 YEARS OF EXPERIENCE IN DOING SIM CARD BUSINESS

Years of experience of dealers have much to promote sales. If greater

proportion of experienced dealers is found in the business, it indicates that cell phone

dealership provides reasonable returns and therefore it retains the dealers in dealership

of mobile phones and connections. Therefore, the years of experience of cell phone

dealers are enquired into and presented in table 4.25.

Income per month

(in Rupees)

No. of Dealers Per cent

Below 5000 40 33

5,000 to 10,000 68 57

11,000 to 20,000 12 10

Total 120 100

Table 4.25

Years of Experience in Doing Sim card Business

Years of experience No. of Dealers Per cent

1 year 10 08

2 years 12 10

3 years 34 28

4 years 44 37

5 years 14 12

Above 5 years 06 05

Total 120 100


Table 4.25 highlights the fact that as high as 28 per cent of dealers have

experience for three years. Cell phone dealers with one year experience account for 08

per cent of total dealers. It is obvious that mobile service providing business attracts

new entrants while at the same time retaining the existing dealers also.

4.27 TOTAL INVESTMENT FOR THE SHOP

This aspect has been studied in order to find out how much investment has

been made by the various cell phone dealers for running this business. Higher

investment returns a higher profit which propels more people to come forward to do

this business as perfect competition prevails in the market.

Table 4.26

Total Investment for the Shop

Investment (in Rs.) No. of respondents Per cent

Below 1 Lakh 34 28

1 Lakh – 3 Lakhs 68 57

3 Lakhs – 5 Lakhs 12 10

Above 5 Lakhs 06 05

Total 120 100


From the table, it is inferred that 28 per cent dealers do their business with

below Rs.1 lakh investment, 57 per cent of dealers invest one lakh to 3 lakh rupees

and only 5 per cent of dealers do business with above Rs.5 lakhs.

4.28 TYPES OF CONNECTIONS MOSTLY PREFERRED BY CUSTOMERS

There are two types of mobile service offered by service providers. They are prepaid

and postpaid connections. A Study has been done to analyze the type of connections highly

preferred by the customers from the point of view of dealers.

Table 4.27

Types of Connection Mostly Preferred by Customers


Prepaid 96 80

Postpaid 24 20

Total 120 100


From the table, it is found that the majority of the customers constituting 80

per cent prefer prepaid service and only 20 per cent of the customers prefer postpaid

connection. This shows that prepaid connection contains some facilities which are

absent in postpaid connection.

4.29 SIM CARD DEALERS’ AVAILABILTY IN DIFFERENT TALUKS

Based on the customer preference and income of the people, dealers emerge day by

day. The different taluks of Kanyakumari District are different in size and population.

An attempt is made here to study the taluks which possess highest number of different

sim card dealers. Table 4.28 describes it.

Table No. 4.28

Sim card Dealers Availability in Different Taluks

No. of Sim card Dealers

Taluk

Brand

Vilav

anco

de

Per

cent Kalkulam

Per

cent

Agastees

waram

Per

cent

Thov

alai

Per

cent Total

BSNL 09 25 08 22.2 13 36.1 06 16.7 36

Aircel 07 25 06 21.4 11 39.3 04 14.3 28

Airtel 11 26.2 9 21.4 15 35.7 7 16.7 42

Tata

Indicom 05 26.3 04 21.1 07 36.8 03 15.8 19

Vodafone 04 28.6 02 14.3 06 42.9 02 14.3 14

Reliance 04 33.3 01 8.33 06 50 01 8.3 12


From the table, it is inferred that majority of the dealers are available in

Agasteeswaram taluk and also Airtel has more number of dealers in the district, BSNL

secures second place and Aircel ranks third place in dealership in the district. As

BSNL has diversified itself into the mobile industry at later stage, it will take time for

BSNL to rank first in the district in dealership.

4.30 PRICE RANGE OF RECHARGE COUPONS PREFERRED BY

CUSTOMERS

There are different types of recharge coupons provided by the various service

providers. An attempt is made to study the price range of recharge coupons preferred

by customers as revealed by the enquiry with the dealers.

Table 4.29

Price Range of Recharge Coupons Preferred by Customers

Price No. of respondents Per cent

Below 250 30 25

250 – 500 46 38

500- 1000 32 27

Above 1000 12 10

Total 120 100


From the table, it is inferred that most of the customers prefer the recharge

coupons ranging from Rs.250 to 500; only 10 per cent of the customers prefer the

recharge coupons above Rs.1000, as per dealer perspective.

4.31 USAGE OF LIFE CARDS BY CUSTOMERS

Life cards are those which are valid for the whole life period. Incoming service is

allowed throughout the life of the person, provided certain amount should be paid for

recharge at regular intervals. When the subscribers fail to recharge at regular

intervals, the validity will get lapsed. Table 4.30 shows the number of subscribers

using life cards.

Table 4.30

Usage of Life Cards by Customers

Usage of life card No. of respondents Per cent

Using 89 74

Not using 31 26

Total 120 100


From the table, it is seen that 74 per cent of the subscribers are using life card

service and 26 per cent of subscribers are not using the life card service. Since the

majority of customers are using the life cards, it indicates that users are aware of the

benefits available from the use of life cards.

4.32 PRICE RANGE OF TOP UP COUPONS PREFERRED BY CUSTOMERS

There are different types of top up coupons provided by the various service

providers. This is presented in the table below.

Table 4.31

Price Range of Top-up Coupons preferred by Customers

Price(Rs.) No. of respondents Per cent

Below 100 32 26

101-300 33 28

301-500 43 36

501-1000 12 10

Total 120 100

Source: Primary data

From the table, it is inferred that most of the customers prefer the top up

coupons ranging from Rs.301 to 500; only 10 per cent of the customers prefer the top

up coupons between Rs.501 and 1000, as indicated by the dealers.

4.33 PROVIDING ‘EASY CHARGE’ FACILITY TO CUSTOMERS

Easy charge facility is provided by various service providers for prompt

recharge. The customers who maintain good relationship with the dealers and retailers

use this facility for immediate recharge. The table below shows the number of dealers

providing easy charge facility to their customers.

Table 4.32

Providing ‘Easy charge’ Facility to Customers

Easy Charge No. of respondents Per cent

Available 116 97

Not Available 04 03

Total 120 100

Source: Field survey

From table 4.32, it is revealed that the majority of the dealers are providing

‗Easy Charge‘ facility. Only a meagre quantity of dealers does not provide easy charge

facility. As the maximum dealers are providing the easy charge facility, this depicts

that a good relationship exists between the customers and the dealers.

4.34 DURATION OF COLLECTING MONEY AFTER EASY CHARGE

The customers use different time intervals for the payment of money for easy

charge. Table 4.33 depicts this nature.

Table 4.33

Duration of Collecting Money after Easy Charge

Duration No. of respondents Per cent

Immediately after successful easy charge 13 11

Next day 24 20

Twice a week 34 28

Weekly 28 23

Fortnight 12 10

As per convenience 09 07

Total 120 100


From table 4.33, it is inferred that most of the customers are regular in their

payment without causing any undue delay. This encourages the dealers to adapt to the

mode of payment which benefits them as well as the retailers. Thus, easy charge

method is found to be a favour to the prospective customers and dealers.

4.35 DETAILS OF DISTRIBUTION OF COMMISSION

Commission is one of the factors in relation to the dealers to get motivated to

stock more number of appropriate sim cards so that the customers could buy them

without any difficulty. Normally the dealers will recommend a sim connection which

gives both to the dealers and customers maximum benefit. Table 4.32 brings out this

fact in sharp focus.

Table 4.34

Details of Distribution of Commission

Brand Commission per sim (Rs.) Recharge (per cent)

Aircel 85 05

Airtel 40 5.5

BSNL 30 6.5

Vodafone 60 6


From the table, it can be gathered that selling a sim card yields Rs. 85 for

Aircel, Rs.40 for Airtel and only Rs.30 for BSNL. In terms of percentage the

commission from Airtel is 5.5 per cent, 5 per cent from Aircel and 6.5 per cent from

BSNL and 6 per cent from Vodafone. BSNL offers minimum commission for sale of

its sim cards whereas its recharge percentage is the maximum compared to other

companies.

4.36 DEALERS’ SATISFACTION LEVELS ON SALES PROMOTIONAL

ACTIVITIES OFFERED BY BSNL

Sales promotional activities, apart from advertisement, individual

initiative, and publicity, have larger role to play in enhancing on one side the sale of

products of BSNL among the customers and improving the efficacy of the dealers on

the other. The various sales promotional activities offered by various service

providers are presented in the table below.

Table 4.35

Weighted Average Method

Dealers’ Satisfaction Levels on Sales Promotional Activities offered by BSNL

Sales Promotional

activities

Ranking of Respondents Weighted

Total

Weighted

Average

Ra

nk R1 R2 R3 R4 R5

Advertising and

display aids 11 12 08 03 02 135 3.8 IV

Sales Meetings 12 09 08 06 01 133 3.7 V

Contests 18 09 06 03 0 150 4.2 I

Price offs or

buying allowances 15 07 04 06 04 131 3.6 VI

Special trade terms 09 14 12 01 0 139 3.9 III

Credit facilities 10 04 06 08 08 108 3.0

VI

I

Commission 21 06 04 02 03 148 4.1 II


From the table, it is seen that the dealers are inclined to give top priority to the

contests conducted by companies; commission, though equally important, is

subordinated to the second place; special trade terms claim the third place whereas

advertisement and display of wares are found in the fourth place. Sales meetings,

serving as an important feed back for the promoters, gain the fifth place. The other

activities like price off or buying allowances could only get the sixth position. Credit

facilities are relegated to the seventh place.


ACTIVITIES OFFERED BY AIRTEL

The promotional activities of Airtel marketers are discussed below. Airtel

marketers leave the customers in an admirably satisfied mind. The following table

shows the sales promotional activities of Airtel.

Table 4.36

Dealer’s Satisfaction Levels on Sales Promotional Activities offered by Airtel

Sales Promotional activities


Total Weighted Average

Rank

R1 R2 R3 R4 R5

Advertising and display aids

12 13 04 08 05 145 3.5 VI

Sales Meetings 14 12 09 07 0 159 3.8 IV

Contests 11 14 04 05 08 141 3.4 VII

Price offs or buying allowances

13 12 08 05 04 151 3.6 V

Special trade terms 23 09 08 02 0 179 4.3 I

Credit facilities 18 08 09 04 03 160 3.9 III

Commission 21 11 06 03 01 174 4.1 II


From the table, it is inferred that the dealers give first rank to special trade

terms, second rank to commission, third rank to credit facilities, fourth rank to sales

meetings, fifth rank to price offs or buying allowances, sixth rank to advertising and

display aids and seventh rank to contests.


ACTIVITIES OFFERED BY AIRCEL

Turning to Aircel‘s promotional activities, it is clear that Aircel also finds

favour with the customers as revealed from the table. Customers approach the dealers

for obtaining their services. So, the Aircel marketers must be able to influence the

retailers in promoting their brand among customers. The following table shows the

sales promotional activities of Aircel.

Table 4.37

Dealers’ Satisfaction Levels on Sales Promotional Activities offered by Aircel

Sales Promotional activities


Total Weighted Average

Rank

R1 R2 R3 R4 R5

Advertising and display aids

08 09 04 06 01 101 3.6 IV

Sales Meetings 10 04 06 08 0 100 3.5 V

Contests 09 08 05 05 01 103 3.7 III

Price offs or buying allowances

11 07 06 04 0 109 3.9 II

Special trade terms 12 06 08 02 0 112 4 I

Credit facilities 06 07 08 07 0 96 3.4 VI

Commission 08 03 09 08 0 95 3.3 VII


From the table, it is found that the dealers give first rank to special trade terms,

second rank to price offs or buying allowances, third rank to contests, fourth rank to

advertising and display aids, fifth rank to sales meetings, sixth rank to credit facilities

and seventh rank to commission.


ACTIVITIES OFFERED BY VODAFONE

Vodafone promotional activities are presented below. The Vodafone

marketers are able to influence the retailers in promoting their brand among

customers. Customers have also been influenced by the business tactics of this new

entrant in cell phone business.

Table 4.38

Dealers’ Satisfaction Levels on Sales Promotional Activities offered by Vodafone

Sales Promotional

activities


Total

Weighted

Average Rank

R1 R2 R3 R4 R5

Advertising and

display aids 06 04 02 02 0 56 4 II

Sales Meetings 04 03 04 02 01 49 3.5 V

Contests 05 02 02 03 02 47 3.4 VI

Price offs or buying

allowances 07 02 02 02 01 54 3.8 IV

Special trade terms 08 02 02 01 01 57 4.1 I

Credit facilities 04 02 03 03 02 45 3.3 VII

Commission 06 04 02 01 01 55 3.9 III


From the table, it is seen that the dealer gives first rank to special trade terms,

second rank to advertising and display aids, third rank to commission, fourth rank to

price offs or buying allowances, fifth rank to sales meetings, sixth rank to contests and

seventh rank to credit facilities.

4.40 COMPARISON OF SALES PROMOTIONAL ACITIVITIES

OFFERED BY PREPAID MARKETERS

The different prepaid marketers provide various promotional offers to the

dealers for improving their sales. This activity includes advertisement, sales meetings

etc. and these are tabulated below. This table in brief gives the summary of findings

contained in Table 4.35, 4.36, 4.37 and 4.38

Table 4.39

Comparison of Sales Promotional Activities provided by Service Providers

Sales promotional activities BSNL Airtel Aircel Vodafone

Advertising and display aids 3.8 3.5 3.6 4.0

Sales Meetings 3.7 3.8 3.5 3.5

Contests 4.2 3.4 3.7 3.4

Price offs or buying allowances 3.6 3.6 3.9 3.8

Special trade terms 3.9 4.3 4 4.1

Credit facilities 3.0 3.9 3.4 3.3

Commission 4.1 4.1 3.3 3.9

Source: Tables 4.35, 4.36, 4.37, 4.38

While comparing the sales promotional activities provided by various service

providers BSNL is placed first for contests, for price off allowances Aircel is placed

first and regarding Airtel, credit facilities stands first while compare to other prepaid

cards.

4.41 SATISFACTION LEVELS OF SERVICE PROVIDERS IN VARIOUS

TALUKS USING ANOVA METHOD

The analysis of variance is a method which separates the variation ascribable

to one set of causes from the variation ascribable to another set. It is used to test

whether the means of a number of populations (more than two) are equal.

Table 4.40

Satisfaction Levels of Service Providers using ANOVA

Satisfaction Levels of Dealers

Taluks

Brands Kalkulam Vilavancode Thovalai Agasteeswaram Total

Airtel 13 09 08 12 42

BSNL 10 08 07 11 36

Aircel 09 06 06 07 28

Vodafone 04 05 02 03 14

Total 36 28 23 33 120

X 9 7 5.8 8.3


1. The null hypothesis is formulated that there is no significant difference in

the satisfaction levels of service providers in the different taluks.

2. There is no significant difference in the satisfaction level of dealers with

regard to various service providers.

Correction Factor C = T2

----- = 900

N

Total sum of squares = Σ Σ x2 – C = 148

i j ij

ANOVA TABLE

Square of

variation

Sum of squares Degrees of

freedom

Variance

Ratio

F

Between Taluks 24.5 03 0.17 (MSC) 0.11

Between service

providers

110 03 36.7 (MSR)

Residual 13.5 09 1.5 (MSE) 24.5

Total 148 15

Computed data

MSC MSR

FR = ------- = 0.11, FR = ------------ = 24.5

MSE MSE

1. For γ 1 = 3, γ 2 = 9

F 0.05 = 3.86 (table value)

2. For γ 1 = 3, γ 2 = 6

F 0.05 = 3.86 (table value)

1. The calculated value of F is not much greater than tabled value. Hence, there is

no significant difference existing between the satisfaction levels of dealers in

different taluks.

2. The calculated value of F is much greater than table value. Hence, there is

significant difference between the satisfaction levels of various service

providers available in different taluks.

III SIM CARD RETAILERS

There are various service providers available in the market such as Aircel,

Airtel, BSNL, Vodafone, Tata Indicom, Reliance etc. Persons who are engaged in

some other business are also doing retail cell connection business. The retailers are

dealing in cell brand sim cards, recharge cards and top-up cards. The retailers have

been selected randomly and an enquiry has been conducted about their social

background, the details of the various cell connections they are dealing in and the

promotional strategies followed by the companies to enhance sales. For these, 120

retailers of cell phone service providers have been contacted and interviewed in the

four taluks of Kanyakumari District.

4.42 GENDER OF RETAILERS

The gender of the retailers is enquired into to understand which gender

constitutes the majority in carrying out the retail mobile service business. Interests of

the males differ from those of females. Females seldom enter in all the areas where the

males like to work. Table 4.41 describes the interests of male and female retailers in

doing cell phone business.

Table 4.41

Gender of Sim card Retailers

Gender No. of retailers Per cent

Male 89 74

Female 31 26

Total 120 100


Table 4.41 shows that among the cell phone retailers, males constitute the

major proportion of 74 per cent and the females constitute only 26 per cent. This is but

natural. The study reveals that the males are highly interested in cell phone service

providing retail business compared to females.

4.43 AGE OF THE SIM CARD RETAILERS

Persons belonging to different age groups engage themselves in this business.

The different age groups are classified into Adolescents, Adults, Middle Aged, Senior

Citizens and the Aged. Each age group has its own style of shouldering responsibility

and functioning in different situations. As days go on, young persons come to gain

more knowledge and information about the business, and there is transformation in

their attitude towards the business. This has prompted the researcher to highlight this

characteristic. This is presented in Table 4.42.

Table 4.42

Age of the Sim card Retailers


Table 4.42 shows that highest number of retailers belongs to the age group of

26 to 40 and it constitutes 62 per cent. Thirty five percent of the retailers belong to the

age group of 41 to 60. The age group 25 to 40 is treated as the adult stage and those

belonging to this age can work hard displaying more energy and enthusiasm.

4.44 MARITAL STATUS OF THE SIM CARD RETAILERS

As marriage exerts influence on persons to be more responsible and cautious

leaving their chivalry behind, it is assumed that they would do better in the business.

The marital status of the retailers has been studied in order to find out whether the

Age (in years) No. of retailers Per cent

26 to 40 74 62

41 to 60 42 35

Above 60 04 03

Total 120 100

respondents involved in the mobile services business are married or unmarried. Table

4.43 depicts the same.

able 4.43

Marital Status of the Retailers


Table 4.43 shows that majority of the respondents are married, 102

respondents are married and their percentage is 85 and 18 are single, and one can

conclude that they are responsible business owners with an eye on sales promotion,

profit, continuity and expansion of business.

4.45 EDUCATIONAL QUALIFICATION OF RETAILERS

Literacy level of retailers has been enquired into and presented in Table 4.44.

Education influences not only perceptions and also expansion of knowledge towards

improving business. For the sake of analysis, the retailers are classified according to

their educational qualification as follows.

Marital status No. of retailers Per cent

Single 18 15

Married 102 85

Total 120 100

Table 4.44

Educational Qualification of Retailers

Educational qualification No. of retailers Per cent

Below 5th std. 15 13

5th std to 8

th std 22 18

SSLC 28 23

Plus two 55 46

Total 120 100


Table 4.44 explains the fact that the larger proportion of sim card

retailers‘ literacy level is Plus-Two at 46 per cent; 23 percent of them have reached

upto SSLC. Even persons who have studied upto 8th standard have entered the

business with gusto constituting about 31 per cent.

4.46 YEARS OF EXPERIENCE IN RUNNING THE RETAIL SHOP

Years of experience of retailers is also studied as it serves the momentum to

run the business. If greater proportion of experienced retailers is found, it shows that

sim card retail business provides reasonable returns and therefore it retains the

retailers in the business. This is presented in Table 4.45.

Table 4.45

Years of Experience in Running the Retail Shop

Years of experience No. of retailers Per cent

1 year 14 12

2 years 18 15

3 years 54 45

4 years 30 25

5 years 04 03

Total 120 100


Table 4.45 highlights the fact that as high as 45 per cent of retailers have three

year experience. Cell phone retailers with one year experience account for 12 per cent

of the total retailers. Sim card business attracts new entrants while maintaining the

existing retailers.

4.47 TOTAL INVESTMENT MADE INITIALLY FOR THE SIM CARD

BUSINESS

This aspect has been studied in order to find out how much investment has

been made by the various cell phone retailers for running their business. When more

investment is made, it shows that the business gives profitable returns which

encourage people to do this business in the present as well as in future.

Table 4.46

Total Investment initially made for the Sim card Business

Investment (in Rs.) No. of respondents Per cent

Below 1000 12 10

1000-2000 26 22

2000-3000 62 51

3000-4000 12 10

4000-5000 08 07

Total 120 100


From the table, it is inferred that 22 per cent retailers have invested Rs.1000 to

2000, 51 per cent of retailers invested Rs.2000 to 3000 and only 7 per cent of retailers

invested Rs.4000 to 5000.

4.48 PROFILE OF THE OUTLETS

Profile of the outlets has been studied to find out the patronage shown by the

customers to the outlets. Different outlets like cell phone shops, medical shops, xerox

centres, STD booths, fancy stores, stationary shops and the like are the places where

the intermediaries deal in mobile recharge business.

Table 4.47

Distribution Showing the Profile of Outlet

Profile of Outlets No. of respondents Percent

Grocery shop 54 45

Medical shop 4 03

Xerox 14 12

STD booth 8 7

Fancy store 13 11

Stationary shop 14 12

others 13 10

Total 120 100


Forty five per cent of the retailers own grocery shops as their main business,

where sim card sale outlet is attached. 11 per cent have it in fancy stores, 12 per cent

have sim card service with the stationary shops they own, only 3 per cent have sim

card business attached to their medical shops. This shows that people running various

other businesses such as xerox shop, STD booth, fancy store, medical store, grocery

shop, petty shop and others are also interested in mobile services as an adjunct so that

they can look after the two businesses without sacrificing the main business.

4.49 SIM CARD BRANDS HIGHLY PREFERRED BY THE CUSTOMERS

There are different players available in the sim card market. Different players

are providing sim cards at different rates. The customers select the sim card according

to their utility on the one side and the offers provided by the service providers on the

other.

Table 4.48

Sim card Brands Highly Preferred by the Customers


BSNL 36 30

Aircel 19 16

Airtel 52 43

Vodafone 13 11

Total 120 100


The table reveals that 30 per cent of customers prefer BSNL, 16 per cent

prefer Aircel, 43 per cent Airtel, and only 11 per cent prefer Vodafone. Airtel has

many special features like reduced cost per call, internet charges and other down load

charges are very low for Airtel when compared to other mobile services. Customers

feel that by using Airtel, their expenditure on mobile services has considerably come

down.

4.50 SIM CARDS GIVING HIGH TALK TIME AT LOW RATES

There are various sim card distributors in the market. Different sim card

companies provide sim cards at various rates. This study is done to identify which

brand of connection gives high talk time at lower rates.

Table 4.49

Sim Cards Giving High Talk Time at Low Rates


BSNL 22 18

Aircel 26 22

Airtel 64 53

Vodafone 08 07

Total 120 100


The table shows that 53 per cent of the retailers feel that Airtel provides

services at lower rates, 22 per cent of the dealers deal in Aircel which provides high

talk time at reduced rates, and only seven per cent feel that Vodafone provides high

talk time at lower rates. Bharti Airtel has provided various offers and price cut offs to

attract new customers and also to retain existing customers.

4.51 PRICE RANGE OF RECHARGE COUPONS PREFERRED BY

CUSTOMERS

There are different types of recharge coupons made available by the various

service providers. An attempt therefore is made to study the price range of recharge

coupons preferred by customers, from the point of view of dealers.

Table 4.50

Price Range of Recharge Coupons Preferred by Customers

Price (in Rs.) No. of respondents Per cent

Below 250 30 25

250 – 500 46 38

500- 1000 32 27

Above 1000 12 10

Total 120 100


The table reveals that most of the customers prefer recharge coupons ranging

from Rs. 250 to 500. Only 10 per cent of the customers prefer the recharge coupons

above Rs.1000 as per the opinions of retailers. Recharge coupons between Rs.250 and

500 are found to be very reasonable, which give high talk time value and the validity

period is extended to longer time interval.

4.52 PRICE RANGE OF TOP UP COUPONS PREFERRED BY

CUSTOMERS

There are different types of top-up coupons provided by the various service

providers. A study is made to find the price range of recharge coupons preferred by

customers as gleaned from the opinions of dealers.

Table 4.51

Price Range of Top up Coupons Commonly Used by Customers

Price (Rs.) No. of respondents Per cent

Below 50 36 30

50-100 28 23

101-200 42 35

201-300 14 12

Total 120 100


From the table, it is inferred that most of the customers prefer the top up

coupons ranging from Rs.101 to 200, according to retailers, only 12 per cent of the

customers prefer top up coupons between Rs.201 and 300.

4.53 PROVIDING ‘EASY CHARGE’ FACILITY TO CUSTOMERS

Easy charge facility is provided by various retailers for immediate recharge

without delay. The customers who have good relationship with the retailers use this

facility. The table below shows the number of retailers providing easy charge facility

to their customers.

Table 4.52

Providing ‘Easy charge’ Facility to Customers

Easy Charge No. of respondents Per cent

Available 115 96

Not available 05 04

Total 120 100


From the table 4.52, it is revealed that the majority of the retailers provide

easy charge facility. As the maximum numbers of retailers provide easy charge

facility, this indicates that a good relationship exists between the customers and the

dealers. On the other side, the dealers want to expand their business targeting more

number of customers and also more investment is put in by the dealers providing this

facility.

4.54 DURATION OF COLLECTING MONEY AFTER EASY CHARGE

The customers use different time intervals for the payment of easy charge.

Table 4.53 depicts this nature.

Table 4.53

Duration of Collecting Money after Easy Charge

Duration No. of respondents Per cent

Immediately after successful easy

charge

14 12

Next day 28 23

Twice a week 31 26

Weekly 30 25

Fortnight 12 10

Once in a month 05 04

Total 120 100


From table 4.53, it is found that most of the customers‘ effect payments

without much delay so that the dealers and retailers can encourage this type of

charging to benefit the customers and also the dealers who get the due replenishment

within a short period. Easy charge method is a successful method of recharging to both

the prospective customers and retailers.

4.55 DISTRIBUTION OF COMMISSION DETAILS

Commission is one of the factors for the retailers to get motivated to stock

more number of sim cards and encourage the customers to buy the appropriate sim

cards. Normally, the retailer will recommend a sim connection which gives more

benefits to him as well to the customers. Table 4.54 depicts this nature.

Table 4.54

Distribution of Commission Details

Brand Airtel Aircel BSNL Vodafone

Commission for selling

a sim (Rs.)

75 30 25 50

Recharge (%) 4 4.5 5 4.5


From the table, it is inferred that for selling a sim card the retailer gets Rs. 75

for Airtel, for Aircel, the rate is Rs. 30, and for BSNL only Rs. 25. And also the

commission for recharge will be 4 per cent for Airtel and 4.5 per cent for Aircel, 5 per

cent for BSNL and 4.5 per cent for Vodafone. BSNL is considered the least provider

of commission for one sim card and the recharge percentage given is higher for BSNL.

CHAPTER IV INTERMEDIARIES IN THE CELL PHONE...

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