Factors affecting customer loyalty in telecom sector in india
-
Upload
nicole-valerio -
Category
Education
-
view
10 -
download
1
Transcript of Factors affecting customer loyalty in telecom sector in india
FACTORS AFFECTING CUSTOMER LOYALTY IN
TELECOM SECTOR IN INDIA
Abstract
The researcher has conducted this research work to illustrate the factors that affect customer
loyalty by taking the Indian telecom company, BSNL. The aim of the paper is to find out and
assess those factors that make the customers look for other companies, rather than staying
with the present organisation. Therefore, the paper has tried to look at the problem closely to
find out the inherent reasons behind the factor. In the second chapter, the researcher has used
SERVQUAL model to understand the factors that affect desired service quality. On the other
hand, the service-profit-chain model prescribes how customer loyalty can be ascertained.
The research has been mainly done by incorporating the positivism and deductive approach
to use the present theories and models to look at the chosen topic from different angles.
Therefore, the third chapter has described the research design based on which, the entire
research is going to flourish. Therefore, it is obvious that a timeframe be presented to
calculate the time that is necessary to complete the research work judiciously. The researcher
has taken 60 respondents in the survey to understand their pulse. The survey has presented
several important points of view regarding the customer retention policy of BSNL. The
respondents have replied positively regarding the tariff prices of the services of BSNL.
However, the customers have shown their disapproval regarding the customer relation
approaches taken by the employees of the employees. Some of the customers have even
suggested to offer specialised offers and rewards packages to the loyal customers as a token
of gratitude. The last chapter has dealt with linking the objectives with the survey
questionnaire and the literature review. In addition, the researcher has tried to recommend
some corrective measures to tackle the challenge of customer loyalty bravely.
1
Acknowledgement
It gives me utmost joy to make the final submission of the research work , ‘Factors Affecting
Customer Loyalty in Telecom Sector in India’. I am really thankful to many people for their
support during the research work.
I would like to thank my superior. Without his judicious guidance, my project would have
been incomplete. I would also like to thank my classmates for their unconditional support. I
would also like to show my gratitude towards the respondents of the surveys without whose
co-operation, the data collection would not have been possible.
Thank you
…………………….
2
Table of Contents
Chapter 1: Introduction 7
1.0 Introduction 7
1.1 Background of the research 7
1.1.1 Background of the company 8
1.2 Rationale of the study 8
1.3 Problem statement 9
1.4 Research aim 9
1.5 Research objectives 10
1.6 Research questions 10
1.7 Structure of the dissertation 10
1.8 Summary 11
Chapter 2: Literature review 12
2.0 Introduction 12
2.1 Conceptual framework 12
2.2 A brief overview of the concept of service quality 12
2.2.1 SERVQUAL Model of service quality 13
2.3 Critical evaluation of Customer Perceived Value 14
2.4 A short overview of customer satisfaction in the Indian telecom sector 14
2.4.1 Service-profit-chain (SPC) model 15
2.5 Critical evaluation of customer loyalty and retention 16
2.6 Summary 16
Chapter 3: Research methodology 17
3.0 Introduction 17
3.1 Research onion 17
3
3.2 Research philosophy 18
3.3 Research approach 18
3.4 Research design 18
3.5 Method of data collection 19
3.6 Data analysis 19
3.7 Sampling 19
3.8 Time schedule 19
3.9 Ethical considerations 20
3.10 Summary 21
Chapter 4: Data analysis and finding 22
4.0 Introduction 22
4.1 Quantitative data analysis 22
4.2 Summary 39
Chapter 5: Conclusion and Recommendations 40
5.0 Conclusion 40
5.1 Linking objectives 40
5.2 Recommendations 41
5.3 Research limitations 42
5.4 Future scope of research 42
Reference list: 43
Appendix: 46
4
List of Figures
Figure 1.1: Dissertation structure 10
Figure 2.1: Conceptual Framework 12
Figure 2.2: SERVQUAL Model of service quality 14
Figure 2.3: Service-profit-chain (SPC) model 15
Figure 3.1: Research Onion 17
Figure 4.1: Percentage of male and female respondents 23
Figure 4.2: Age group of the customers 24
Figure 4.3: Duration of use of the customers 25
Figure 4.4: Types of mobile connection 26
Figure 4.5: Applicability of the promotional policies of BSNL 27
Figure 4.6: Employee behaviour of BSNL 29
Figure 4.7: Satisfaction of the customers regarding tariff plans 30
Figure 4.8: Applicability of tariff price of BSNL 31
5
Figure 4.9: Customers’ perception of the brand image of BSNL 32
Figure 4.10: Ease of availing the services of BSNL 33
Figure 4.11: Understanding the needs of the customers 34
Figure 4.12: Response time for customer grievances 36
Figure 4.13: Pricing options of BSNL 37
Figure 4.14: Recommendations to improve overall service quality 38
6
List of Tables
Table-3.1: Gantt chart 20
Table 4.1: Percentage of male and female respondents 22
Table 4.2: Age group of the customers 24
Table 4.3: Duration of use of the customers 25
Table 4.4: Types of mobile connection 26
Table 4.5: Applicability of the promotional policies of BSNL 27
Table 4.6: Employee behaviour of BSNL 28
Table 4.7: Satisfaction of the customers regarding tariff plans 30
Table 4.8: Applicability of tariff price of BSNL 31
Table 4.9: Customers’ perception of the brand image of BSNL 32
Table 4.10: Ease of availing the services of BSNL 33
Table 4.11: Understanding the needs of the customers 34
Table 4.12: Response time for customer grievances 35
7
Table 4.13: Pricing options of BSNL 37
Table 4.14: Recommendations to improve overall service quality 38
8
Chapter 1: Introduction
1.0 Introduction
The need to stay connected has become one of the most prominent features for human
existence in the present era and telecommunication thus plays an important part for the
mankind to stay in touch with the world. The subscriber base in India has seen a quadruple
jump in the last decade. The total number of subscribers presently stands approximately at
927 million, as stated by the TRAI report of 2015. The telecom companies of India are thus
trying to retain the customers as, the mobile subscribers have a number of options before
them. Therefore, the research paper aims to present the factors that affect customer loyalty in
Indian telecommunication sector, by taking the example of the telecom giant, BSNL. As the
Indian telecom providers are reeling under immense pressure to retain the customers, the
companies are striving hard to take every possible step to make the customers happy. Only
contented customers would stay with the present company. Thus, various factors influencing
the loyalty of the customers need methodical elucidation in order to understand the loopholes.
The paper would also like to present the way the Indian customers’ choice regarding the
selection of the telecom service providers vary.
1.1 Background of the research
Indian telecom sector has seen tremendous growth and the present strength of mobile users of
well above 900 million validate that fact. The teledensity of India also stands at a staggering
rate of 74% (Griffin & Herres, 2012). Therefore, the high rate of returns for the companies
has also attracted the foreign companies to invest here. The continuous positive growth in this
sector has therefore brought forth several foreign collaborations too. The competition has
been increasing and the telecom companies are trying their best to retain the loyal customers.
However, Miller & Washington (2013) have opined that customer loyalty depends on great
many factors and the competitive market warrants that the companies provide every possible
benefit to the customers in order to stay ahead of the rival companies.
The telecom sector of India is unevenly balanced due to the overwhelming number of mobile
phone users. The number of landline subscribers is getting low continuously and at the end of
2013, the number stood only at 28.78 million. As the number of service providers is
9
increasing significantly, the companies are facing increasing challenges to retain the
customers, along with attracting the new ones (Jacoby & Chestnut, 2009). The aspect of
highly volatile telecom market means that shifting customer loyalty becomes a strategic
challenge for the companies. In addition, the customers now have the provision of using a
number of connections simultaneously. This gives the chance to the customers to compare the
service quality of the companies first hand. Zeleke (2015) has opined that service quality and
perceived customer value are the two most important factors to enhance the satisfaction
quotient of the customers. Therefore, the paper aims to evaluate these factors along with other
important ones to ascertain whether the Indian telecom companies are fulfilling the norms or
not.
1.1.1 Background of the company
BSNL is a state-owned organisation catering to the Indian customers from the year of 2000
(Bhote, 2009). The telecom company is headquartered in New Delhi and has more than
216,000 employees of 2015. The company is the largest player in the sector of fixed and
broadband service. Although, the company has been going through severe loss in the recent
year, the management has taken a number of positive steps to mitigate the problem. One of
its subsidiaries is MTNL, providing exclusive service to New Delhi and Mumbai. The
organisation is currently facing the problem of retaining the existing customers for various
issues. First, the lack of technological orientation towards the modern advancements has
deterred the prospects of BSNL. Apart from that, the organisation has not been able to
increase its cell density in the metropolitan cities due to the stiff competition from the private
enterprises. Several other companies have tried to manipulate the thinking process of the
customers by offering cheaper service with better coverage. This has resulted into the
company losing its existing customers to the rival companies. Back in 2011, BSNL was the
largest telecom service provider in the country and had the market share of approximately
26% (Atkinson, 2009). However, after the entrance of the private players, the scenario
changed. Those companies, with their huge expertise and resources, have captured the
imagination of the customers. The private entities have adopted the latest technological
advancements in order to reduce the service gaps and they have also been able to reach the
remotest corners of the country to appease the customers with their service quality.
Therefore, the latest trend has seen the decreasing number of customers for BSNL and the
company is striving hard to hold on to its existing customers by providing specialised offers
10
and reward packages. Although, the move has not produced the desired result, the
management is optimistic that it would retain the existing customers, along with attracting
newer ones. The stiff competition has also catapulted the growth prospect of the company as,
the private operators have to pay lesser amount of Access Deficit Charges (ADC), which
relates to the charge payable by the private companies to BSNL for operating in non-lucrative
areas (Jacoby & Chestnut, 2009). This also has dented the prospect of revenue generation,
which has in turn deteriorated the service quality of BSNL. The existing customers have been
fretting over the lack of quality service from the operator as, the company rarely has the
equipments to expand its grasp in the yet to be reached areas. This may be prove to be fatal
for the long term growth of the company as, the loyalty of the customers cannot be taken for
granted (Pezeshki, Mousavi & Grant, 2009). The customers have a number of options before
them and therefore, do not find it customary to stick with BSNL. Therefore, the issue of
loyalty of the customers arises now. Looking at the prospect of competitive rivalry in the
Indian telecom market, the researcher has observed that the aspect of new entry for the
private entities is not easy as, the Indian market is already teeming with various operators
(Punniyamoorthy & Raj, 2009). BSNL being the first mover has achieved a considerable
amount of advantage from the market. However, this may not be true for other new entrants
entirely.
The aspect of competitive rivalry hampering the aspect of retaining the existing customers is
huge as, the customers now have more number of options to chose from. In addition,
Atkinson (2009) has opined that the aspect of low switching costs make the customers
habituated to change their loyalty to other companies. The aspect of buyer power has been
keeping the companies on tenterhooks and thus, BSNL along with other telecom service
providers tries to appease the buyers by offering lucrative deals. Therefore, the aspect of
buyer power is huge and that is hampering the market prospect of the telecom provider such
as, BSNL. In addition, Bansal & Taylor (2012) have opined that the threat of substitution for
the services offered by BSNL is also keeping the company on high alert as, the loyalty of the
customers would go for a toss if, they get better service at a cheap rate from others.
Therefore, the market analysis of the Indian telecom sector has presented that although, the
customers have a number of choices before them, the companies have the chance to attract
them by relaying out detailed plans. On that note, Bansal & Taylor (2012) have remarked that
if the companies can look after the prospect of providing quality care to customers
irrespective of the price, they can retain the customers.
11
The present market penetration of BSNL stands out to be the diminishing gradually for the
severe onslaught from the more powerful private entities. With their revamped business
model and client relationship, the companies have been able to dislodge BSNL from its
numero uno position (Jacoby & Chestnut, 2009). The market penetration of BSNL has been
upped though with the introduction of 3G services. The company is also vying for 4G
services in the metropolitan areas to cope up with the demand of the present tech savvy
generation. On the other hand, the product development sector of BSNL has seen the firm
existence of high speed broadband along with the introduction of mobile tv. This aspects
have attracted the existing and potential new customers to try out the offers of BSNL.
Babakus & Boller (2011) have however argued that unlike other private players, BSNL does
not have the technological strength to roll out latest modules of technology in its services. On
the other hand, the aspect of market development from the side of BSNL has taken place by
the inception of foreign tie ups. The company has recently tied up with two South African
technological farms to revamp its technological expertise and attain global standard. Atkinson
(2009) has opined that this move may prove to be quite fruitful to retain the existing
customers as, refurbished service quality would automatically imply that the customers would
ahun the lucrative offers of other telecom companies to stay with BSNL.
1.2 Rationale of the study
What is the issue?
It has often been observed that the telecom companies are trying hard to retain the customers
in this cut-throat competition. The aspect may raise doubts regarding the strategies of the
telecom companies as, they can always try to attract the new customers to endorse the
companies (Atkinson, 2009). However, retaining the customers is more than that. It is a sign
of healthy organisation. If the companies can retain their customers, the brand image
automatically acquires new height. Attracting new customers does not become an issue then.
Therefore, the issue of retaining the customers has gained enough prominence in this highly
competitive world.
Why is it an issue?
The Indian telecom companies have a very large ground to play in as, the number of citizens
sans any mobile connection is a significant one. Therefore, the companies have the chance to
attract new customers too. However, retaining the existing customers is an important aspect
12
to prove that the companies are in a healthy state. If the companies cannot retain their
customers, attracting neer ones would also face severe challenges. Aaker & Jacobson (2010)
opined that satisfying the customers with the service is the only criterion that can retain the
customers. Therefore, the researcher has taken the issue as, the Indian telecom companies are
suffering hugely for stiff competition. Switching cost is too low and therefore, the customers
can always take the option of other service providers. This is severely challenging for the
companies.
Why is it an issue now?
Recently, a report published by TRAI has revealed that the number of customers, who are
using a connection for more than two years is coming down drastically (Babakus & Boller,
2011). This report therefore throws out an important question before the concerned people
regarding the actual reason of it. One of the positive factors may be that the number of
options before the customers is increasing (Pezeshki, Mousavi & Grant, 2009). However, this
also shows that the customers are not sticking to any one company. Therefore, retaining the
customers has become one of the main problems for the Indian telecom companies.
What would this research shed light on?
The research would try to assess those factors that affect the aspect of retaining the customers
in the Indian telecom sector. In addition, the paper aims to present different points of view of
eminent scholars to understand the chosen topic lucidly. Therefore, the researcher would try
to provide the suitable corrective measures that may be applied by the service providers to
mitigate any crisis.
1.3 Problem statement
The issue of retaining the customers in the Indian telecom sector has arisen due to the
continuous shifting of customer loyalty. Therefore, satisfying the service users is the only
criterion to negate those factors affecting the aspect of customer loyalty.
1.4 Research aim
The aim of the research is to assess those factors that affect customer loyalty in the telecom
company, BSNL.
13
1.5 Research objectives
● To identify the factors that affect customer loyalty in BSNL
● To critically analyse the key determinants that help BSNL to retain the customers
● To examine the various challenges faced by BSNL to retain the customers
● To provide effective recommendations to BSNL to eliminate the problems
1.6 Research questions
● What are the factors that affect customer loyalty in BSNL?
● What are the key determinants that help BSNL to retain the customers?
● What are the various challenges faced by BSNL to retain the customers?
● What strategies can be recommended to BSNL to eliminate the problems?
1.7 Structure of the dissertation
Figure 1.1: Dissertation structure
(Source: Created by author)
1.8 Summary
The chapter has thus provided the basic understanding of the chosen topic by presenting the
aims, objectives and the research background. In addition, the research questions would go a
long way to help the researcher to frame the research work in an appropriate manner.
14
Chapter 2: Literature review
2.0 Introduction
The literature review deals with the points of view of the eminent scholars, who have
assessed the chosen topic from different angles. Therefore, the chapter would assess the
chosen topic from different angles to understand in a better way. The chosen topic would be
assessed by using different models and theories such as, SERVQUAL model of service
quality and SPC model related to the factor of customer loyalty. The aspect of customer
satisfaction would also be depicted.
2.1 Conceptual framework
Figure 2.1: Conceptual Framework
(Source: created by author)
2.2 A brief overview of the concept of service quality
The term service quality refers to the assimilation of two factors that is service and quality.
Therefore, maintaining a perfect equilibrium, between the two factors would enhance the
overall scenario. As opined by Bansal & Taylor (2012), service quality can be measured
according to the judgment given by the customers after using the products or services. On the
other hand, Barnes (2009) has stated that the service quality can be said to be positive when,
15
the features of the products or the services can meet the implied needs. Therefore, service
differentiation is prerequisite to take the companies to the path of growth.
The service sector is highly heterogenous. However, four basic aspects are there, which
differentiate the service sector from the product selling sector. These are such as,
intangibility, heterogeneity, inseparability and perishability. Intangibility means that
services cannot be attributed to a thing. Therefore, Bowen & Chen (2011) has stated that
services are consumed but the services cannot be possessed. On the other hand, heterogeneity
refers to the factor of keeping the service quality equal on all the parameters. Products have
their own standards, as opined by Caruana (2012). However, services have the factor of
heterogeneity. According to Chada & Kapoor (2009), inseparability refers to the factor that
services are produced and distributed among the users at the same time. Therefore, services
cannot be stored for an indefinite time. Lastly, the factor of perishability does not persists in
the case of services as, these have no shelf life.
2.2.1 SERVQUAL Model of service quality
SERVQUAL model of service quality refers to measuring the service quality by using the
gap between the delivered services and the expected level of service. The model speaks of
five aspects such as, reliability, responsiveness, empathy, assurances and tangibles. The
model is a type of analytical tool. This model can help the management of a company to
assess the gap between the provided service quality and what the customers desire from the
company. Chen (2011) has stated that the model is an exploratory one and does not describe
the actual gaps in the offered service.
16
Figure 2.2: SERVQUAL Model of service quality
(Source: Chow & Komaran, 2012, p.82)
2.3 Critical evaluation of Customer Perceived Value
Dick & Basu (2010) have opined that perceived value for the customers refer to the overall
assessment of how the presented service provides the intended benefit to the users. Therefore,
the value for money products or the services would obviously satisfy the customers. Five
dimensions are there according to Howat, Crilley & McGrath (2009), such as, quality, price,
behavioural price, emotional response and reputation. Therefore, customer satisfaction is
the ultimate criterion to decide whether the services meet the perceived quality standard or
not (Hafeez & Muhammad, 2012). The researcher has thus observed that customer value and
customer loyalty are the two important factors of customer perceived value.
2.4 A short overview of customer satisfaction in the Indian telecom sector
Customer satisfaction refers to fulfilling the demands and wishes of the customers through
providing effective service. Different customers have different level of expectation from the
companies. Therefore, the telecom companies would find it quite difficult to understand the
general notion of perceived service quality. As opined by Huang & Yu (2012), the Indian
telecom sector has a varied customer response as, the gap between the provided service and
the desired quality varies considerably.
2.4.1 Service-profit-chain (SPC) model
The model specifies that there is a relation between the aspect of customer loyalty and
employee productivity. Therefore, if the companies are trying to appease the customers to
retain them, the best way would be to make the employees happy. One of the most important
derivatives from this model is that customer satisfaction can result into customer loyalty
(Eshghi, Roy & Ganguli, 2009). Therefore, the telecom companies have the option of
encouraging the customers to work positively to make the customers loyal. The model also
reveals that if the employees are happy and contented, the quality of service provided would
automatically improve. Therefore, ultimately the companies would secure a positive image
and credibility in the market.
17
Figure 2.3: Service-profit-chain (SPC) model
(Source: Akbar & Parvez, 2010, p.52)
2.5 Critical evaluation of customer loyalty and retention
The researcher has thus evaluated the process of securing the criterion of retaining the
existing customers by assessing different models and theories. Therefore, the Indian telecom
sector has seen many ups and downs regarding customer loyalty. On that note, John (2011)
has noted that the telecom companies has tried to lure the customers by providing enough
rewards and offers at first. However, gradually the companies have understood that retaining
the customers is a tedious job as, the plethora of options before them make the customers
look for better options. However, Paulrajan & Rajkumar (2011) have argued that the telecom
companies can retain the customers without providing any additional bonus by simply
developing the quality of service. If the customers are loyal, retaining them would not be a
problem. The problem of low frequency band is plaguing the Indian telecom companies to
offer better service to the customers (Punniyamoorthy & Raj, 2009).
2.6 Summary
This chapter has thus described the relevant models and theories that are helpful to assess the
applicability of customer retention policies. Various problems faced by the telecom
companies have found a proper mention here. As the paper has described, the service profit
chain is quintessential to understand the criterions that are quite helpful to make the
18
customers loyal. On the other hand, SERVQUAL model has helped the researcher to evaluate
the factors that influence the service quality meted out to the customers.
19
Chapter 3: Research methodology
3.0 Introduction
The researcher needs to assess the appropriate methods to conduct the research work
judiciously. Therefore, in this chapter, the researcher would finalise the appropriate
approaches, designs, data collection procedure and sampling methods among others to
conduct the paper effectively.
3.1 Research onion
The research onion has different layers to help the researchers to conduct their research work
accordingly. The first layer states the philosophies, whether the second layer gives an idea
regarding the decision making process. The effectiveness of the time frame has been
described in the next stage to complete the research work within the prescribed time. The
final layer of the onion prescribes the data collection and analysis processes to formulate the
outcome effectively.
Figure 3.1: Research Onion
(Source: Saunders et al. 2009, p.52)
20
3.2 Research philosophy
Three types of research paradigms are there to help the researchers such as, positivism,
interpretivism and realism. Interpretivism deals with the material aspects of the world by
stating that scientific means are insufficient to describe the worldly affairs. On the other hand,
realism assumes that the universal parameters do not depend on human acuity as, the human
beings can only feel the objects with the senses. The researcher has chosen positivism
philosophy because it states that the scientific approach is the only way to conduct the
research work effectively. The researcher is going to take the deductive approach and the
positivism philosophy goes well with that approach.
3.3 Research approach
The researcher has observed that two types of approaches are prevalent such as, inductive
and deductive. The inductive approach specifies that every research work be based on new
theories or models. Therefore, the researchers have to think of some innovative means to
come up with specific models that will be suitable for the respective research work. However,
this is not always possible as, the development of new knowledge base needs wide scope.
Therefore, the researcher has chosen the deductive approach to use the available data and
theories to corroborate the chosen topic.
3.4 Research design
Three types of research designs are there such as, exploratory, explanatory and descriptive.
Explanatory design refers to dealing with complex subjects by bringing in tangential
information regarding the topic. On the other hand, the exploratory design deals with
establishing connection among the variables. However, both the designs are not suitable for
the research work and therefore, the researcher has chosen descriptive design to conduct the
research work. In this design, the researchers work with providing definition of the chosen
research topic. In order to conduct the research work fruitfully, the researcher has used mixed
method. Exploratory design works with the background information and the researcher has
not considered this design for that reason only.
3.5 Method of data collection
The data is collected using two strategies such as, qualitative and quantitative methods. In the
quantitative data collection procedure, the researchers try to collect data from primary
sources to have authentic data at hand. This data then can be assessed according to various
21
models to conclude concretely. Survey questionnaire is certainly a big part of the
quantitative data collection method. This is one of the most cost and time saving procedure to
get access to the thought process of the concerned stakeholders. A set of questionnaire is
formulated to seek the opinion of the respondents. In this research work, the researcher is
going to take the sample size of 50 customers of BSNL to understand their pulse.
3.6 Data analysis
The data analysis process can be done through two stages such as, qualitative and quantitative
process. The quantitative analysis is done through using statistical analysis. The collected
data from the survey is converted to understandable figures and tables. Therefore, the
researcher and the readers would be able to understand the data easily. The literature review
presents the secondary data through data to sum up the chosen topic effectively.
3.7 Sampling
The researcher has applied probability sampling methods to collect the quantitative data.
Simple random sampling technique has also been used to complete the survey with 50
customers. The non-probability sampling is another important part of the sampling process.
As the research paper would not include any qualitative data, the researcher would not use
convenience sampling.
3.8 Time schedule
Main activities 1st week 2nd week 3rd week 4th + 5th
week6th week 7th week
Selection of the topic
●
Composition of the literature
review
● ●
Research methodology
●
Collection of primary data
●
Analysis and interpretation of
data
●
22
Findings ● ●
Conclusion and Recommendation
●
Final submission ●
Table-3.1: Gantt chart
(Source: Created by author)
3.9 Ethical considerations
The researcher has tried to conduct the research work according to the provisions of Data
Collection Act, 1998. Therefore, the researcher has vowed to use the collected data from the
survey in a safe manner. The collected data would not be used for any commercial purpose.
In addition, the privacy and opinions of the respondents would also be maintained by
respecting their decisions whether to give answer to the questions or not. They are free to
withdraw from the survey at any time.
3.10 Summary
The researcher has thus assessed the appropriate research methodologies required to conduct
the research work in the most suitable manner. The researcher has finalized all the required
strategies such as, research philosophy, design and approach in this chapter. The data
collection method has revealed that the researcher is aiming to conduct a survey by creating a
questionnaire for near about 50 customers of the Indian telecom companies. The time chart
would also help the researcher to conduct the work within the prescribed period. The
researcher has vowed to uphold the legal provisions of protecting the privacy of the
respondents and of the collected data. Therefore, this chapter is immensely important for the
entire research work as, the framework based on which the entire project would be made, has
been chosen here.
23
Chapter 4: Data analysis and finding
4.0 Introduction
In this chapter, the researcher aims to find out the points of view of the customers of the
hosen Indian telecom company, BSNL by organising a survey. The collected data would be
presented in appropriate manner in tables and figures to analyse the data thoroughly.
4.1 Quantitative data analysis
1. What is your gender?
Response Response (%) Frequency Total respondents
Female 45 34 50
Male 55 26 50
Table 4.1: Percentage of male and female respondents
Figure 4.1: Percentage of male and female respondents
Finding and analysis
24
The above depicted figure shows that the number of male respondents is more compared to
the female members. The reason may be that, the Indian society still sees more participation
of the male members to earn for their families than the female members. Therefore, the
mobile operators across India try to promote their services keeping this factor in mind.
2. What age group do you belong?
Response Response (%) Frequency Total Respondents
18-25 32 16 50
26-35 28 14 50
36-45 22 11 50
46 and above 18 09 50
Table 4.2: Age group of the customers
Figure 4.2: Age group of the customers
Finding and analysis
25
The aforementioned figure shows that the number of respondents maximum in this survey
belongs to the age group of 18 to 25. Therefore, it can be inferred that the maximum number
of mobile service users belong to the age group, which is highly volatile. Retaining this group
is going to be very critical and at the same time rewarding. The reason being this age group
splurges a large amount of money to use various kinds of mobile services. The next sizeable
share of respondents are from the second age group belonging to several professions.
Therefore, this two age group has catapulted the growth of the Indian telecom sector.
4. How long are you using mobile service?
Response Response (%) Frequency Total Respondents
6 months 28 14 50
7 months to 1 year 30 15 50
2-3 years 24 12 50
4-5 years 18 09 50
Table 4.3: Duration of use of the customers
26
Figure 4.3: Duration of use of the customers
Finding and analysis
The above presented pie chart shows that the respondents are using their mobile connection
for the last 7 months to 1 year for the maximum time. Therefore, the factor of switching their
loyalty may be there as, the customers cannot be cited as long time customers. On the other
hand, the customers using their mobile services for more than 2 years is a significant one.
This section of customers are truly loyal to the company.
5. What type of mobile connection do you have?
Response Response (%) Frequency Total Respondents
Prepaid 48 24 50
Postpaid 34 17 50
Both 18 09 50
Table 4.4: Types of mobile connection
Figure 4.4: Types of mobile connection
Finding and analysis
27
Pre-paid customers are mostly prevalent in Indian telecom sector and BSNL has the task to
look at this choice seriously. The number of pre-paid customers outnumber the postpaid
customers significantly. The reason may be that prepaid connections come with a great deal
of benefits, which help the customers in case of any financial crisis. They can recharge their
mobile number when they have the means to do that. The mismatch between the actual use
and the bill sent by the company is not there in the case of prepaid service too.
7. How far do you agree that the promotional policies of BSNL are favourable for you?
Response Response (%) Frequency Total Respondents
Strongly agree 18 09 50
Agree 28 14 50
Neutral 14 07 50
Disagree 22 11 50
Strongly disagree 18 09 50
Table 4.5: Applicability of the promotional policies of BSNL
28
Figure 4.5: Applicability of the promotional policies of BSNL
Finding and analysis
Most of the respondents have answered positively for this question. Therefore, it can be
assumed that the customers are happy with the promotional policies of BSNL. However, the
next most chosen option is a negative one. Therefore, the promotional policies are not able to
satisfy the customers of all classes. Therefore, the promotional policies of BSNL are not
certainly going with the aim of the management to make the company India’s one of the best
mobile service providers.
9. How far do you agree that BSNL’s employees are friendly and approachable?
Response Response (%) Frequency Total Respondents
Strongly agree 14 07 50
Agree 18 09 50
Neutral 06 03 50
Disagree 26 13 50
Strongly disagree 36 18 50
29
Table 4.6: Employee behaviour of BSNL
Figure 4.6: Employee behaviour of BSNL
Finding and analysis
The above mentioned figure reveals that the customers are not at all happy with the employee
behaviour of BSNL. In fact, the last two options have attracted most number of responses and
that speaks about the loopholes of the telecom company. If the employee behaviour does not
change for good, the customers would not hesitate to leave the company. Therefore, this
survey has brought forth some important questions before BSNL regarding having properly
trained and qualified employees at place.
11. Are you satisfied with the tariff plans of BSNL?
Response Response (%) Frequency Total Respondents
Highly satisfied 16 08 50
Satisfied 26 13 50
Neutral 08 04 50
Dissatisfied 26 13 50
30
Highly dissatisfied 24 12 50
Table 4.7: Satisfaction of the customers regarding tariff plans
Figure 4.7: Satisfaction of the customers regarding tariff plans
Finding and analysis
The survey has revealed that equal number of customers have voted for both positive and
negative options. Therefore, it can be inferred that the tariff plans are not according to the
demands of the greater number of customers. In fact, the tariff plans have not evoked any
considerable amount of positive response from the survey.
12. Do you think that BSNL is demanding additional tariff price in the name of
premium quality service?
Response Response (%) Frequency Total Respondents
I think so 28 14 50
No, I do not think so 54 27 50
I have no idea 18 09 50
31
Table 4.8: Applicability of tariff price of BSNL
Figure 4.8: Applicability of tariff price of BSNL
Finding and analysis
The figure has revealed that the customers do not think that the telecom company has been
charging extra rates in the name of providing tariff price. Therefore, the tariff rates are
reasonable and the customers are willing to pay that. BSNL has to therefore maintain this
price equilibrium to keep the customers happy.
13. Are you satisfied with the brand image of BSNL in the market?
Response Response (%) Frequency Total Respondents
Highly satisfied 24 12 50
Satisfied 28 14 50
Neutral 08 04 50
Dissatisfied 22 11 50
Highly dissatisfied 18 09 50
32
Table 4.9: Customers’ perception of the brand image of BSNL
Figure 4.9: Customers’ perception of the brand image of BSNL
Finding and analysis
The customers of the telecom service provider, BSNL are contented with the brand image of
the company. Therefore, The positive image would help the company to retain the existing
customers, along with attracting new ones. However, the rate of negative responses is also
not low and that may be looked at seriously to make the brand image even more positive.
14. How far do you agree that it is very easy to take up new mobile connection along
with getting recharges done from BSNL?
Response Response (%) Frequency Total Respondents
Strongly agree 16 08 50
Agree 20 10 50
Neutral 10 05 50
Disagree 28 14 50
33
Strongly disagree 26 13 50
Table 4.10: Ease of availing the services of BSNL
Figure 4.10: Ease of availing the services of BSNL
Finding and analysis
The customers think that taking new connections from the company and recharging their
mobile numbers is not an easy task. The reason may be the lack of sufficient franchises and
shops, where all the necessary amenities are available of BSNL. The number of respondents
going for the positive answers are few but significant one. Therefore, the customers would be
more inclined to use the services of the company if, they can avail the services with ease.
17. Do you agree that BSNL makes efforts to understand the needs of the customers?
Response Response (%) Frequency Total Respondents
Strongly agree 20 10 50
Agree 24 12 50
Neutral 06 03 50
34
Disagree 28 14 50
Strongly disagree 22 11 50
Table 4.11: Understanding the needs of the customers
Figure 4.11: Understanding the needs of the customers
Finding and analysis
The customers think that the company does not have a good record in understanding the need
of the customers. This may be because the customer relation team of the company does not
care to listen to the customers’ needs. As the customers are the primary stakeholders for any
business, the telecom company has the task to look for the actual reasons for which the
customers have perceived that they are not being listened by the company.
19. How far are you satisfied with the response time of BSNL in terms of customer
grievances?
Response Response (%) Frequency Total Respondents
Highly satisfied 20 10 50
Satisfied 24 12 50
35
Neutral 10 05 50
Dissatisfied 28 14 50
Highly dissatisfied 18 09 50
Table 4.12: Response time for customer grievances
Figure 4.12: Response time for customer grievances
Finding and analysis
The above presented figure reveals that the customers are not actually happy with the
response time for the lodged grievance. The reason may be the lack of efficient personnel to
handle the customer grievances effectively. The lethargy of the employees to respond to the
call of the customers in time may be another reason for that. However, the number of
respondents choosing the positive option presents the role of the employees in a positive light
too. Therefore, the employees have the role of providing the best in class service to
strengthen its portfolio.
36
21. Do you agree that BSNL offers a great range of pricing options for you to chose
from?
Response Response (%) Frequency Total Respondents
Strongly agree 20 10 50
Agree 24 12 50
Neutral 10 05 50
Disagree 26 13 50
Strongly disagree 20 10 50
Table 4.13: Pricing options of BSNL
Figure 4.13: Pricing options of BSNL
Finding and analysis
The respondents have mostly answered negatively as they think that the pricing option from
the company is not flexible for them. The company has kept the tariff prices high to reduce
37
the losses incurred in the lt fiscal. This may be the reason that the customers think that the
tariff prices are high. The second option has been chosen for the second most time and that
shows that all is not wrong regarding the tariff prices.
30. What would you recommend to BSNL for the betterment of the overall services
quality to retain the customers?
Response Response (%) Frequency Total Respondents
Improve the
promotional tools
16 08 50
Take customer
feedback seriously
18 09 50
Reduce tariff rates to
suit the customers
20 10 50
Provide personalized
offers for the loyal
customers
24 12 50
Incorporate latest
technological
advancements
22 11 50
38
Table 4.14: Recommendations to improve overall service quality
Figure 4.14: Recommendations to improve overall service quality
Finding and analysis
Providing personalized offers to the customers is the most suitable option in this question.
That shows that the customers think that the company needs to provide special attention to
the loyal customers. The second most ticked option is incorporating latest technological
equipments to enhance the service quality. Therefore, the customers think that the
technological parameters of the company is not up to the mark.
4.2 Summary
The chapter has thus assessed the responses provided by the chosen 50 customers of the
telecom company, BSNL. The survey has revealed many interesting facts such as, the
customers perceive that the aspect of customer relation is not upto the mark. On the other
hand, the tariff prices are within the budget of the customers, as presented by the survey.
Thus, the survey has helped the researcher to understand the pulse of the customers to
conclude concretely.
39
Chapter 5: Conclusion and Recommendations
5.0 Conclusion
The present study thus concludes by emphasising on the various factors that hamper the
factor of customer loyalty. The aspect of service quality and sustaining the quality service for
long time to retain the existing customers have found a prominent place here. The researcher
is going to assess the collected data from chapter 4 and 2 to evaluate those important factors.
In order to do this, the researcher is going to link the objectives with the survey and literature
review chapter to provide some suitable recommendations.
5.1 Linking objectives
5.1.1 To identify the factors that affect customer loyalty in BSNL
The researcher has tried to link this objective with the first six questions in the quantitative
analysis and also with the literature review to understand the the factors. The survey, along
with the various opinions of the scholars has revealed that improper and untimely response to
the customer grievances and keeping the tariff prices high are some of those factors. In
addition, not respecting the demands of the customers is another reason that may affect
customer loyalty.
5.1.2 To critically analyse the key determinants that help BSNL to retain the customers
The researcher has linked next four questions with this objective by explaining the factors
that help the telecom company to retain the customers. Providing quality service and
maintaining the employees happy are some of those factors. In addition, incorporating latest
technological advancements in the service would enhance the quality of the service.
5.1.3 To examine the various challenges faced by BSNL to retain the customers
The researcher has observed that the challenges are quite a few that are plaguing not only
BSNL but also other telecom companies in India. Therefore, BSNL had to face severe losses
in the last decade for the changing taste of the customers, along with a number of competitors
entering the country. The increased competition has downplayed the prospects of the telecom
companies, along with BSNL.
5.1.4 To provide effective recommendations to BSNL to eliminate the problems
40
Some changes are bound to be implied by the telecom company to mitigate the problem
regarding customer loyalty. In the context of the found gaps, the following recommendations
are going to follow to retain the customers.
5.2 Recommendations
Forging long term relationship with the customers
The telecom sector is highly volatile. Therefore, BSNL needs to forge a long term
relationship by taking firm steps to improve the service quality further. Marketing automation
technology would therefore guide the telecom companies, including BSNL to understand the
need of the customers.
Keeping the tariff rates affordable and competitive
The telecom giant needs to maintain competitive pricing policies to negate any similar moves
of the rival companies. In order to do so, proper market research would be really helpful to
understand whether, the tariff rates are really high or not.
Incorporating latest technologies to keep the service quality supreme
BSNL needs to incorporate the latest technological advancements to make the service up to
date with the rival farms. Specialist employees can help the company to understand the
possible steps that would necessitate the desired steps.
Providing specialized services to the loyal customers
If BSNL can provide specialised services to the loyal customers by providing them with
concessional tariff rates, the loyal customers would be overjoyed. This step would enable the
company to retain the customers. The loyal customers want that the company should provide
them with some preferential treatments for associating with them for so long. Looking after
the loyal customers would improve the brand image of the company also and that would
surely attract new potential customers.
5.3 Research limitations
The researcher tried to incorporate all the factors that affect the aspect of customer loyalty.
However, for the lack of time and resources, some of the factors may be overlooked. In
addition, the small sample size of only 60 people cannot present enough insights into the
present market condition and the mood of the customers. The researcher therefore had to go
41
for cross section studies. The responses of the respondents also created barrier for the
researcher as, some of the respondents did not answer correctly. Some of the respondents
even rejected to answer the questions.
5.4 Future scope of research
If the research paper would incorporate a larger number of respondents in the survey, the
research topic can be analysed with added efficiency. Moreover, the research paper would
become more authentic if, more companies can be incorporated in the paper. Therefore, the
comparative analysis would provide immense insights into the chosen topic. Other variables
such as, product differentiation and customer loyalty can be linked to get proper
understanding of the relation of those two factors.
42
Reference list:
Books:
Bhote, K, R. (2009) Beyond customer satisfaction to customer loyalty. 3rd ed. New York: Appleton-Century-Crofts.
Griffin, J., & Herres, R. T. (2012). Customer loyalty: how to earn it, how to keep it. San
Francisco: Jossey-Bass.
Jacoby, J. & Chestnut, R. (2009). Brand loyalty: Measurement and management. New York:
John Wiley & Sons.
Miller, R. & Washington, K. (2013). Consumer loyalty, Loganville: Richard K. Miller &
Associates.
Zeleke, M. (2015). Influence of quality service on customer satisfaction and loyalty.
Saarbrucken: LAP LAMBERT Academic Publishing.
Journals:
Aaker, D. A., & Jacobson, R. (2010). “The financial information content of perceived
quality”. Journal of marketing research, 12(4), pp.191-201.
Akbar, M.M. & Parvez, N., (2010). “Impact of service quality, trust, and customer
satisfaction on customers loyalty”. ABAC Journal, 29(1), pp.34-56
Atkinson, A. (2009). “Answering the eternal question: What does the Customer Want?” The
Cornell Hotel and Restaurant Administration Quarterly, 29(2), pp.12-14.
Babakus, E. & Boller, G.W. (2011). “An empirical assessment of the SERVQUAL scale”.
Journal of Business Research, 24(3), pp. 253-68.
Bansal, H. S., & Taylor, S. F. (2012).” The service provider switching model (spsm) a model
of consumer switching behavior in the services industry”. Journal of Service Research, 2(2),
pp.200-218.
Barnes, S. J. (2009). ”Enterprise mobility: concept and examples”. International Journal of
Mobile Communications, 1(4), 9(4), pp.341-359.
43
Bowen, J. T., & Chen, S. L. (2011). “The relationship between customer loyalty and
customer satisfaction”. International journal of contemporary hospitality management, 13(5),
pp.213-217.
Caruana, A. (2012). “Service loyalty: The effects of service quality and the mediating role of
customer satisfaction”. European Journal of Marketing, 36(7), pp. 811-29.
Chada, S.K & Kapoor,D. (2009). “Effect of switching cost, service quality and customer
satisfaction on customer loyalty of cellular service providers in Indian market”. The ICFAI
University Journal of Marketing Management, 8(1), pp. 23-37
Chen, L., Nath, R., (2011). ”A framework for mobile business applications”. International
Journal of Mobile Communications, 2(4), pp.368-381.
Chow-Chua,C.& Komaran,R. (2012). “Managing service quality by combining voice of the
service provider and voice of their customers”. Managing Service Quality, 12(2), pp.77-86.
Dick, A.S. & Basu, K. (2010). “Customer loyalty: Toward an integrated conceptual
framework”. Journal of the Academy of Marketing Science, 22(2), pp.99-113.
Eshghi, A., Roy, S.K. & Ganguli, S., (2009). “Service quality and customer satisfaction: an
empirical investigation in Indian mobile telecommunications services”. Marketing
Management Journal, 18(2), pp.23-63
Hafeez, S. & Muhammad, B., 2012. The Impact of Service Quality, Customer Satisfaction
and Loyalty Programs on Customer's Loyalty: Evidence from Banking Sector of Pakistan.
International Journal of Business and Social Science, 3(16).
Howat, G., Crilley, G. & McGrath, R. (2009), “A focused service quality, benefits, overall
satisfaction and loyalty model for public aquatic centres”. Managing Leisure, 13(4), pp. 139-
161.
Huang, M. H., & Yu, S. (2012). “Are consumers inherently or situationally brand loyal? A set
intercorrelation account for conscious brand loyalty and nonconscious inertia”. Psychology &
Marketing, 16(6), pp.523-544.
John, J., (2011). “An analysis on the customer loyalty in telecom sector: Special reference to
Bharat Sanchar Nigam limited, India”. African Journal of Marketing Management, 3(1),
pp.1-5.
44
Paulrajan, R. & Rajkumar, H., (2011). “Service quality and customers preference of cellular
mobile service providers”. Journal of technology management & innovation, 6(1), pp.38-45.
Pezeshki, V., Mousavi, A. & Grant, S., (2009). “Importance-performance analysis of service
attributes and its impact on decision making in the mobile telecommunication industry”.
Measuring Business Excellence, 13(1), pp.82-92.
Punniyamoorthy, M. & Raj, M.P.M., (2009). “An empirical model for brand loyalty
measurement”. Journal of Targeting, Measurement and Analysis for Marketing, 15(4),
pp.222-233.
45
Appendix:
1. Quantitative analysis
1. What is your gender?
● Male
● Female
2. What age group do you belong?
● 18-25
● 26-35
● 36-45
● 46 and above
3. What is your educational qualification?
● Below Hr. Secondary
● Hr. Secondary
● Graduation
● Post Graduation
● Doctor/Engineer/CA/ Ph.D
4. How long are you using mobile service?
● 6 months
● 7 months to 1 year
● 2-3 years
● 4-5 years
5. What type of mobile connection do you have?
● Pre-paid
● Postpaid
● Both
6. Are you considering switching to other service providers?
● Yes
● No
7. How far do you agree that the promotional policies of BSNL are favourable for you?
46
● Strongly agree
● Agree
● Neutral
● Disagree
● Strongly disagree
8. How far do you agree that BSNL has kept the promises in terms of service quality?
● Strongly agree
● Agree
● Neutral
● Disagree
● Strongly disagree
9. How far do you agree that BSNL’s employees are friendly and approachable?
● Strongly agree
● Agree
● Neutral
● Disagree
● Strongly disagree
10. How many mobile connection are you using presently?
● Only 1
● 2 connections
● More than 2
11. Are you satisfied with the tariff plans of BSNL?
● Highly satisfied
● Satisfied
● Neutral
● Dissatisfied
● Highly dissatisfied
12. Do you think that BSNL is demanding additional tariff price in the name of
premium quality service?
● I think so
● No, I do not think so
● I have no idea
47
13. Are you satisfied with the brand image of BSNL in the market?
● Highly satisfied
● Satisfied
● Neutral
● Dissatisfied
● Highly dissatisfied
14. How far do you agree that it is very easy to take up new mobile connection along
with getting recharges done from BSNL?
● Strongly agree
● Agree
● Neutral
● Disagree
● Strongly disagree
15. How far are you satisfied with the call quality in terms of voice clarity and low call
drop problem of BSNL?
● Highly satisfied
● Satisfied
● Neutral
● Dissatisfied
● Highly dissatisfied
16. How far are you satisfied with the coverage area of BSNL?
● Highly satisfied
● Satisfied
● Neutral
● Dissatisfied
● Highly dissatisfied
17. Do you agree that BSNL makes efforts to understand the needs of the customers?
● Strongly agree
● Agree
● Neutral
● Disagree
● Strongly disagree
48
18. Do you agree that BSNL maintains all the records accurately?
● Strongly agree
● Agree
● Neutral
● Disagree
● Strongly disagree
19. How far are you satisfied with the response time of BSNL in terms of customer
grievances?
● Highly satisfied
● Satisfied
● Neutral
● Dissatisfied
● Highly dissatisfied
20. How far do you agree that the service provided by BSNL are competitive?
● Strongly agree
● Agree
● Neutral
● Disagree
● Strongly disagree
21. Do you agree that BSNL offers a great range of pricing options for you to chose
from?
● Strongly agree
● Agree
● Neutral
● Disagree
● Strongly disagree
22. Do you agree that the Value Added Services provided by BSNL are updated and
competitive?
● Strongly agree
● Agree
● Neutral
● Disagree
49
● Strongly disagree
23. Do you agree that BSNL has followed the moral values of the customers?
● Strongly agree
● Agree
● Neutral
● Disagree
● Strongly disagree
24. How far are you satisfied with the customer relation policies of BSNL?
● Highly satisfied
● Satisfied
● Neutral
● Dissatisfied
● Highly dissatisfied
25. How far do you agree that BSNL alters the tariff rates and offers according to the
taste of the customers?
● Strongly agree
● Agree
● Neutral
● Disagree
● Strongly disagree
26. Do the rules and regulations of BSNL affect your ethical standards?
● Yes
● No
27. How far do you agree that BSNL is transparent to you?
● Strongly agree
● Agree
● Neutral
● Disagree
● Strongly disagree
28. Is customer relationship of BSNL suitable for you?
● Yes
50
● No
29. How far do you agree that BSNL is there to help you whenever there is a problem?
● Strongly agree
● Agree
● Neutral
● Disagree
● Strongly disagree
30. What would you recommend to BSNL for the betterment of the overall services
quality to retain the customers?
● Improve the promotional tools
● Take customer feedback seriously
● Reduce tariff rates to suit the customers
● Provide personalised offers for the loyal customers
● Incorporate latest technological advancements to make the service quality better
51