Customer perception analysis using SPSS
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Transcript of Customer perception analysis using SPSS
Perception of B School students about various CRM activities
of Mobile Service Providers
Deepan M, Kaushalya R, Ramesh V M, Shanmuga Sundaram A, Suganprabhu R
Team 6A, PGP 1
Abstract
India is a developing country and communication technologies play a major role in its
development especially mobile phone industry has come a long way. This research paper focuses on the
consumer usage behavior of mobile phones and their perception about customer relationship
management (CRM) activities of their service providers. Some of the most frequently used CRM activities
are selected and a survey was conducted to 119 people pursuing MBA at various colleges across Tamil
Nadu. The research focuses on the customer satisfaction level and also suggests some improvements
that are needed to make by the existing players in the market to stay more competitive.
Keywords: Mobile phone, Service provider, Customer usage behavior, CRM activities, Perception.
Research Objective:-
To find the usage behavior and compare the perception of CRM activities of various mobile
service providers among B School students across Tamil Nadu
Hypothesis Considered:-
Hypothesis 1- The Mobile Service Provider Changing Behavior is independent of the locality in
which the respondent is residing
Hypothesis 2- There is no significant difference between the perception levels of customers
regarding CRM activities over service providers
RESEARCH METHODOLOGY:-
A Self reporting questionnaire was prepared using Google docs by using various tools like Likert
Scale, Numerical Scale and shared with various B-School students using e-Mail & Social Networking
Sites. The respondent filled the survey by accessing the online link of the questionnaire.
The data was collected & consolidated first and they are categorized on the basis of service
providers and based on the analysis of the categorized data the customer perception about the various
mobile service providers were determined.
Sample Size:-
Total Number of Respondents: 119
Total Number of Male Respondents: 89
Total Number of Female Respondents: 30
Literature Review
Service quality and customer satisfaction
The proven relationship between customer satisfaction level and service quality provides a base
to explore the subject in the mobile phone segment. Generally customers expect more than what is
actually being offered to them. From the analysis of various factors, it was proved that tariff and
network coverage are the most preferred one[1]
. The study made by Gunjan et al proved this. This made
us to consider these factors to our study to find customer usage behavior.
The studies made by Ramin Vataparast also suggest that customer adoption to mobile service
provider is more important for these service providers to come up with many customized applications [2]
.
Among the various variables chosen perceived expressiveness and enjoyment have strong influences on
the adoption of the mobile service.
The Findings from Greek mobile telephony sector shows [3]
that relationships between service quality
and customers repurchase intention in mobile telephony industry. The influence of perceived price on
customers repurchase intention was examined in this research.
The American Customer Satisfaction Index (ACSI) model is used as the framework to examine the causal
relationships among customer expectations, quality, value, satisfaction and loyalty. The results from
structural equation modeling show that perceived quality is an important predictor to
customer satisfaction, which ultimately results in trust, price tolerance and customer loyalty. The
findings provide valuable managerial insights for managing customer satisfaction and loyalty [4].
The Research by Tripathi Shalini[5] article purports that service providers could try to gain valuable
insight into consumer preferences, and design mobile service packages accordingly, the objective being
determination of the relative importance of attributes in consumer choice processes related to service
packages. Conjoint Analysis was used to analyze how customers’ trade off among various salient factors
in selecting a package. Further, conjoint models have been suggested for different demographic
subgroups. This provides implicit opportunities to mobile service providers for deploying benefit
segmentation as a strategy and developing customized mobile service packages for
different customer segments.
Wahab Samsudin in his article shows the results of CRM performance are repeat purchase, word of
mouth, retention, cross buying, brand loyalty and customer satisfaction [6]
. The keen competitive in the
communication and mobile phone service market place and the increasing numbers of mobile phone
users all over the world has influence the researchers to investigate ease of use and e-service quality as
antecedents of electronic customer relationship management performance in mobile phone services
industry. From Research it is also shown that Mobile messaging technology can be used as an
integrated marketing endeavor to strengthen the brand and cultivate customer acquisition and loyalty
[7].
The Article by Wahab Al Momani presents us the analysis which shows that e- service quality, and ease
of use was positively significant towards CRM performance. This paper [8]
makes a theoretical and
methodological contribution and suggestion for the managers in improving their CRM performance in
mobile phone service industry. Jukka Riivari explains in this research why financial organizations across
Europe are beginning to take advantage of mobile services and in particular mobile banking as a
powerful new marketing tool to build long-lasting and mutually rewarding relationships with new and
existing customers. Examples show how European financial organizations are using mobile banking to
improve their customer service and relationships, to reinforce their brand by literally placing it in their
customer's pocket and to reduce their costs[9]
.
The Study[10]
by Y Sawhng comprehensively concerned with mobile service marketing related issues,
considers both factors influencing consumers' usage behavior and also technical aspects of services.
Factors influencing the behavior of mobile service consumers are investigated empirically, by examining
them in a real-world context.
Factors considered
The major factors that affect any customer in determining his/her satisfaction levels about their
network provider are very basic but important. Firstly, how the customer care personnel is responding
politely, clearly and informatively to our queries affects the customer’s conscious greatly. If a customer
care personnel answers in an ambiguous manner or if his language is not so clear, it will lead to added
confusions and may misguide the customer. Another important factor is the time taken to connect to
the customer care.
Many network providers follow a procedure of letting computer voices clarify most of the
commonly faced queries, but in case if a person wants to talk to the CC personnel directly because of
reasons like he is in hurry or the problem is a bit different one, it will be irritating for him to cross all
those multiple stages of computer voices. Even if it connects, the CC personnel take their own time to
respond.
Secondly, the way how they handle the queries.
• Customer care response
• Ease of contact
• Time taken to connect
• Feedback
• Tariff
• Information about latest schemes
• Grievance handling
• Speed of processing
• Dealer behaviour
• Getting service messages even after deactivating
Research Instrument: The research uses a questionnaire consisting of 24 closed ended questions
designed to capture the experiences of the target population about the Customer Relationship
Management of their mobile phone services.
Questionnaire was divided into various parts namely -Demographic profile of the respondents.
Consumer's behavior towards existing mobile phone service providers. General factors used by
consumers for selection of mobile phone service provider. Other factors.
Sampling Plan
• Sampling Unit – Students in B-Schools in Tamil Nadu.
• Sample Size - The research considered a sample of 119 respondents.
• Sample Procedure - The research used simple random sample procedure in which every member of
the population has an equal chance of selection.
Contact Methods: An online questionnaire, developed in Google-Docs Spreadsheet was used in the
research.
Statistical Models Used: ANOVA, Correlation, Chi-Square and Cluster Analysis.
Sample composition: The data for the research were collected with respect to MBA students in Tamil
Nadu concerning about the CRM activities of various mobile service providers. Based on the analysis of
data, it was found that total of 42 percent of the respondents were customers of Airtel, 22 percent were
customers of Vodafone followed by 14 percent BSNL, 10 percent Aircel, 8 percent Docomo and 4
percent Idea customers. It is clear that Airtel and Vodafone subscribers constituted the majority of the
respondents. 75% of total respondents were male and rests 25% were female.
The classifications of respondents based on the mobile phone service they subscribe are presented in
figure 1.
Figure 1
Data Analysis
Chi Square Tests
It is very well known that all latest technologies and schemes will be introduced first only in
major cities. Hence it would be common for people dwelling in cities to often change their service
providers as they have got many opportunities. In this part of research, the customer’s behavior of
changing the service provider is compared with their location to find whether the changing behavior is
dependent on the locality. Chi square was the test used to find the dependency.
Table 1 Chi square results (Location and changing behavior)
Value df Asymp sig (2 sided)
Pearson Chi square
Likelihood ratio
N of valid cases
11.015
11.695
119
8
8
.201
.165
From the table it is clear that the chosen factors are independent of each other. Hence Null
hypothesis is not rejected. Thus the service provider changing behavior is independent of location.
Chi square tests were also performed to find the dependency of gender and amount of bill paid.
This would help to find the amount of usage between male and female.
Table 2 Chi square results (Gender and Bill paid)
Value df Asymp sig (2 sided)
Pearson Chi square
Likelihood ratio
N of valid cases
2.966
2.878
119
3
3
.397
.411
From the table it is clear that the chosen factors are independent of each other. Hence Null
hypothesis is not rejected. Thus the amount of bill paid is independent of gender.
ANOVA Results
Analysis of Variance (ANOVA) was performed to find whether there is any significant difference
between the customer perception levels about their service provider. The customers were grouped
based on the service provider they use and then the studied factors are incorporated in ANOVA to find
whether there is any significant difference or not.
Table 3 ANOVA Table
.
From the table it is clear that for all other factors other than grievances handling there is no significant
difference between the service providers. Hence Null hypothesis was not rejected for all other factors.
SSQ df Mean Square F Sig.
Cuscare_resp Between Groups 8.861 5 1.772 1.895 .101
Within Groups 105.694 113 .935
Total 114.555 118
Schemes Between Groups 1.788 5 .358 .236 .946
Within Groups 171.203 113 1.515
Total 172.992 118
Tariff Between Groups 5.502 5 1.100 1.087 .371
Within Groups 114.347 113 1.012
Total 119.849 118
Griev Between Groups 10.947 5 2.189 2.429 .039
Within Groups 101.843 113 .901
Total 112.790 118
Speed Between Groups 10.086 5 2.017 1.739 .131
Within Groups 131.073 113 1.160
Total 141.160 118
Deact Between Groups 7.076 5 1.415 .982 .432
Within Groups 162.789 113 1.441
Total 169.866 118
Ease Between Groups 1.691 5 .338 .739 .596
Within Groups 51.721 113 .458
Total 53.412 118
Feedback Between Groups 2.044 5 .409 .857 .513
Within Groups 53.922 113 .477
Total 55.966 118
Dealer Between Groups 8.682 5 1.736 .903 .482
Within Groups 217.301 113 1.923
Total 225.983 118
Time Between Groups 10.950 5 2.190 1.053 .390
Within Groups 235.033 113 2.080
Total 245.983 118
Charge Between Groups 1.218 5 .244 .965 .442
Within Groups 28.529 113 .252
Total 29.748 118
Cluster Analysis
A cluster analysis was made to group the respondents into groups based on their perception
level. This helped to find the number of people who had a good perception about their current service
provider.
Table 4 Cluster Results
From the table it is clear that the cluster 2 consists of respondents who have good perception about
their service provider. Cluster 3 has moderate perception while cluster 1 has poor perception.
Perception Level
Since there is no significant difference between the perceptions various service providers
regarding every factors other than grievance handling, it can be considered that the variation is only due
to chance causes. Vodafone performs well in grievance handling when compared to others since the
customers of Vodafone perceive it to be good.
Fig 1 Rating Vs Factors
Improvement
Respondents were asked about the area that needed improvement. From the analysis it was
evident that all the respondents were much more concerned only about network coverage. Only BSNL
customers found network to be good and they needed improvement in the process of operating. They
needed to simplify the existing procedures.
Fig 2 Areas needed improvement
Conclusion:
HYPOTHESIS 1
“Changing behavior is independent of locality “
Null Hypothesis not rejected.
HYPOTHESIS 2
No significant difference between the perception levels of customers regarding CRM activities over
service providers
Null Hypothesis not rejected.
Other Findings
Apart from the above discussions there are few other significant findings from research. Vodafone
customers perceive it to be better when compared to others. From the responses total average rating of
Vodafone is higher (3.03) than the other mobile service providers. Aircel and BSNL come in joint second
position. Idea scores the least overall rating.
Respondents % Total Average
Vodafone 22% 3.03
Airtel 42% 2.77
Aircel 10% 2.88
BSNL 14% 2.88
Docomo 8% 2.75
Idea 4% 2.58
Network Coverage is the major problem for most of the respondents. Out of the total 119 respondents,
49 have voted for Network coverage. High Tariff comes in second place with 27 respondents voting for
it. BSNL should focus on simplifying the procedures. Out of people who voted for “Simplify Procedures”,
BSNL customers are the maximum.
Service providers can focus on the most frequently used applications so that it helps increasing
customer satisfaction level i.e. the value added services. From the total responses nearly 59 people (50%
approximately) have said they are using GPRS. 29 (25%) people have said to use Missed call alert service.
References
[1] Malhotra Gunjan , Mukherjee Amitava, Nandi Abhishek and Sinharay Soumyadeep, 2011, “Consumer
Behavior towards Mobile Phone Service Provider - An Empirical Research on Mobile Number Portability
in India”, Journal of Advances in Management, Vol. 4(6), pp. 44 – 49
[2] Ramin Vatanparast, 2010, “Mobile service adoption Optimization: A Case Study”, IJMM, Vol. 5,
pp. 55 – 74
[3] Evangelia Blery, Nick Batistatos, Efstathia Papstratou, 2008,“Service quality and customer retention
In mobile telephony.
[4] Makam S Balaji,2009, “Customer Satisfaction with Indian Mobile Services”.
[5] Shalini N. Tripathi, Masood H. Siddiqui,2009, “An empirical investigation of customer preferences in
mobile services”.
[6] Wahab, Samsudin; Al-Momani, Kaled; Noor, Nor Azila Mohd, 2010, “The Relationship between E-
Service Quality and Ease of Use On Customer Relationship Management CRM) Performance: An
Empirical Investigation In Jordan Mobile Phone Services “. Pp 1-15
[7]Ashok Khuran, Vikas Chaudhar, "Customers' Attitude Towards Mobile Messaging Technology in
Promoting CRM: A Study".
[8] Wahab, Al-Momani, Noor, Nor Azila Mohd, The Relationship between E- Service Quality and Ease of
Use On Customer Relationship Management (CRM) Performance: An Empirical Investigation In Jordan
Mobile Phone Services, pp1-15.
[9] Jukka Riivari , 2005,"Mobile banking: A powerful new marketing and CRM tool for financial services
companies all over Europe".
[10] Sawng, Y.-W.; Kim, S.-H.; Lee, J.; Oh, Y. S. 2011. "Mobile service usage bebavior in Korea: an
empirical study on consumer acceptance of innovative technologies." Technological and Economic
Development of Economy 17(1): pp 151- 173.