7/12/2012

IGTC PHASE-II 2011-13

A MARKET RESEARCH ON FACTORS OF CONSUMER DISSATISFACTION IN TELECOM

SERVICE INDUSTRY

| Sudhir S Shet & Preeti Goel

Company Profile: Hairtel is a market leader in cellular services in U.S market and wants to venture into Indian market due to its high growth potential. Before entering into the market, the company wants to understand the consumer sentiments. The top management wants to prepare its marketing strategy keeping in mind the inefficiencies of Indian companies and the customer dissatisfaction factors.

Problem Statement:Initial market study revealed many factors for dissatisfaction. The company is in a dilemma about exactly on which factor to focus because addressing all the factors is practically not possible at the moment. So they decided to hire a market research agency to conduct research on behalf of them.

Research Objective: Understand the prime factor of dissatisfaction being faced by the cellular subscribers.

Research Methodology: We have adopted the descriptive research method. 10 questions are asked with 4 important factors in mind such as fairness in charges/billing, Rate plans, Service Quality, Product quality. 5 point

Semantic differential scale has been used to record the consumer responses. Questionnaires are sent through e-mail to the respondents. And then, using factor analysis method in SPSS software we have tabulated the results.

Sample size: 20.

The questionnaire is as follows:Si No. 1 2 3 4 5 6 7 8 9 10 Question My balance gets deducted/billed reasonably. They activate special chargeable services with my knowledge I pay for call centre services which I feel cheated The charges are very reasonable They have good rate plans Call center processes my requests on-time Their service centers are easily accessible Connectivity is good in rural areas Mobile Internet speed is optimum I have no problems with Voice clarity at all locations Factor Transparent Billing Rate plans Service Quality Product Quality

Response scale:Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 1 2 3 4 5

Raw (Input) Data: Si BILLING SPECIAL No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 4 4 3 3 4 2 2 3 4 3 4 2 4 4 3 4 2 2 3 4 5 5 5 5 5 3 5 5 5 5 5 3 5 5 5 5 3 5 5 5 PAIDC C 5 5 1 1 1 1 1 1 1 1 1 1 5 5 1 1 1 1 1 5 CHARG ES 3 3 3 4 3 4 3 3 3 4 3 4 3 3 3 3 4 3 3 3 RATEPL AN 2 2 4 4 2 4 2 2 2 4 2 4 2 2 4 2 4 2 2 2 ONTIME CC 3 3 2 2 3 4 2 3 3 2 3 4 3 3 2 3 4 2 3 3 ACCESS IBLESC 3 3 2 2 4 5 2 2 4 2 4 5 3 3 2 4 5 2 2 3 CONNE CTIVITY 2 5 4 2 5 2 4 4 4 2 5 2 2 5 4 5 2 4 4 2 MOBIN TERNET 3 4 3 4 3 4 3 3 3 4 3 4 3 4 3 3 4 3 3 3 VOICEC LARITY 3 4 3 2 4 2 3 4 4 2 4 2 3 4 3 4 2 3 4 3

Data Analysis using SPSS: Factor Analysis

Communalities Initial BILLING SPECIAL PAIDCC CHARGES RATEPLAN ONTIMECC ACCESSIBLESC CONNECTIVITY MOBINTERNET VOICECLARITY 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Extraction .762 .954 .922 .906 .797 .943 .910 .773 .592 .942

Extraction Method: Principal Component Analysis.

Total Variance Explained Initial Eigenvalues Compo nent 1 2 3 4 5 6 7 8 9 10 Total 5.072 2.107 1.322 .710 .435 .220 .128 .007 -8.947E-18 -2.689E-16 % of Variance 50.722 21.067 13.217 7.098 4.346 2.201 1.281 .068 -8.947E-17 -2.689E-15 Cumulative % 50.722 71.789 85.006 92.104 96.450 98.651 99.932 100.000 100.000 100.000 Total 5.072 2.107 1.322 % of Variance 50.722 21.067 13.217 Extraction Sums of Squared Loadings Cumulative % 50.722 71.789 85.006 Total 3.936 2.599 1.966 Rotation Sums of Squared Loadings % of Variance 39.363 25.985 19.658 Cumulative % 39.363 65.348 85.006

Component Matrix

Component 1 BILLING SPECIAL PAIDCC CHARGES RATEPLAN ONTIMECC ACCESSIBLESC CONNECTIVITY MOBINTERNET VOICECLARITY .684 .886 .310 -.945 -.808 -.439 -.479 .699 -.713 .870 2 .404 -.356 .418 -.090 -.378 .858 .785 .100 .125 .334 3 .360 .208 .807 .075 -.010 -.114 -.251 -.523 .260 -.273

Extraction Method: Principal Component Analysis. a. 3 components extracted.

Rotated Component Matrix

Component 1 BILLING SPECIAL PAIDCC CHARGES RATEPLAN ONTIMECC ACCESSIBLESC CONNECTIVITY MOBINTERNET VOICECLARITY .489 .537 -.040 -.842 -.760 -.086 -.069 .866 -.688 .941 2 -.042 -.743 .011 .308 .025 .959 .951 -.074 .345 -.013 3 .722 .337 .959 -.321 -.467 .122 -.037 -.133 .010 .237

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 5 iterations.

Component Transformation Matrix Compo nent 1 2 3 1 .827 .256 -.501 2 -.430 .862 -.268 3 .363 .437 .823

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.

Interpretations: Factor 1:- Suggests that voice clarity & connectivity have loadings of 0.941 & 0.866 respectively. So these are the main variables for dissatisfaction among subscribers. This belongs to the product quality factor. Factor 2:- Denotes that On Time call centre & easily accessible service centers have loadings of 0.959 & 0.951 respectively which belongs to Service Quality factor. Factor 3:- Implies Paid call centre & Billing with loadings of 0.959 & 0.722 respectively. This belongs to Transparent billing factor. As per Factor 1 the product quality is prime factor for customer dissatisfaction among cellular companies in India. Hence the company may use better Product quality as their marketing strategy.