TABLE OF CONTENTS

Certificate
Declaration
Acknowledgement
Executive summary

CHAPTER – 1

1 INTRODUTION
1.1 About the company
1.2 Satisfaction
1.3 Consumers satisfaction
1.4 Measuring of Customer satisfaction
1.5 Telecom service provider in Raipur city
1.5.1 Airtel
1.5.2 Idea
1.5.3 Reliance GSM and RIM
1.5.4 BSNL
1.5.5 Tata Indicom

CHAPTER – 2

2.1 Objective of Research

2.2 Purpose of Research
2.3 Limitations
2.4 Methodology
2.5 Sample Size

GA 2008-2010 DIMAT
Page 1
CHAPTER - 3

ANALYSIS AND INTERPRETATION

3.1 Hypotheses Testing

CHAPTER – 4

FINDINGS AND RECOMMENDATIONS

CHAPTER – 5

BIBLIOGRAPHY

CHAPTER – 6

ANNEXURE

GA 2008-2010 DIMAT
Page 2
 INTRODUCTION

My project title was inclusive of objective, later on we discussed what dimensions

should be covered under this title, like analysis of data collected by questionnaires
which was filled by the users during the survey in the Raipur city, then I applied various
statistical method like hypotheses, ranking, graphical representation, and various test
on collected data to get accurate result.

In order to convince the respondents we have to explain them why we conduct survey
and the information what we need is fill in the form of questionnaires.
Our learning here is as follows:-

• I learn that theoretical knowledge is different from practical knowledge.

• Learned about some of the soft skills like acceptability, adjustability and patience
required during field work.
• Time management.
• Art of convincing people.
• Discipline of the work place.
• Consistency in work.

GA 2008-2010 DIMAT
Page 3
ABOUT THE COMPANY

Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest
Telecommunications Company providing comprehensive range of telecom services in
India: Wire line, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service,
MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five years it has
become one of the largest public sector unit in India.

BSNL has installed Quality Telecom Network in the country and now focusing on
improving it, expanding the network, introducing new telecom services with ICT
applications in villages and wining customer's confidence. Today, it has about 47.3
million line basic telephone capacity, 4 million WLL capacity, 20.1 Million GSM
Capacity, more than 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations, 480196
Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting 602 Districts, 7330
cities/towns and 5.5 Lakhs villages.

BSNL is the only service provider, making focused efforts and planned initiatives to
bridge the Rural-Urban Digital Divide ICT sector. In fact there is no telecom operator in
the country to beat its reach with its wide network giving services in every nook & corner
of country and operates across India except Delhi & Mumbai. Whether it is inaccessible

GA 2008-2010 DIMAT
Page 4
areas of Siachen glacier and North-eastern region of the country. BSNL serves its
customers with its wide bouquet of telecom services.

BSNL is numero Uno operator of India in all services in its license area. The company
offers vide ranging & most transparent tariff schemes designed to suite every customer.
BSNL cellular service, Cell One, has more than 17.8 million cellular customers,
garnering 24 percent of all mobile users as its subscribers. That means that almost
every fourth mobile user in the country has a BSNL connection. In basic services, BSNL
is miles ahead of its rivals, with 35.1 million Basic Phone subscribers i.e. 85 per cent
share of the subscriber base and 92 percent share in revenue terms.

BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet Customers
who access Internet through various modes viz. Dial-up, Leased Line, DIAS, Account
Less Internet (CLI). BSNL has been adjudged as the NUMBER ONE ISP in the country.

BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure

that provides convergent services like voice, data and video through the same
Backbone and Broadband Access Network. At present there are 0.6 million DataOne
broadband customers.

The company has vast experience in Planning, Installation, network integration and
Maintenance of Switching & Transmission Networks and also has a world class ISO
9000 certified Telecom Training Institute.

Scaling new heights of success, the present turnover of BSNL is more than Rs.351,820
million (US $ 8 billion) with net profit to the tune of Rs.99,390 million (US $ 2.26 billion)
for last financial year. The infrastructure asset on telephone alone is worth about
Rs.630, 000 million (US $ 14.37 billion).

GA 2008-2010 DIMAT
Page 5
BSNL plans to expand its customer base from present 47 millions lines to 125 million
lines by December 2007 and infrastructure investment plan to the tune of Rs. 733
crores (US$ 16.67 million) in the next three years.

The turnover, nationwide coverage, reach, comprehensive range of telecom services

and the desire to excel has made BSNL the No. 1 Telecom Company of India.

1.1 Satisfaction

Satisfaction is a person’s feelings of pleasure or disappointment resulting from

comparing a product’s perceived performance (or outcome) in relation to his or her
expectations. If the performance falls short of expectations, the customer is dissatisfied.
If the performance matches the expectations, the customer is satisfied.
If the performance exceeds expectations, the customer is highly satisfied or delighted.

1.2 Customer satisfaction

A business term is a measure of how products and services supplied by a company

Meet or surpass customer expectation. It is seen as a key performance indicator within
business and is a part four consumer perspectives of a balanced scoreboard.

In a competitive market place where business competes for customers, customer

satisfaction is seen as a key differentiator and increasingly has become a key element
of business strategy.

GA 2008-2010 DIMAT
Page 6
There is substantial body of empirical literature that establishes the benefits of customer
satisfaction for firms.

1.3 Measuring customer satisfaction

Organizations are increasingly interested in retaining existing customers while targeting

non-customers.

Measuring customer satisfaction provides an indication of how successful the

organization is at providing products and or services to the market place.

Customer satisfaction is ambiguous and abstract concept and the actual manifestation
of the state of satisfaction will vary from person to person and product number of both
psychological and physical variables which correlates with satisfaction behaviors as
such returns and recommend rate. The ‘quality values’ which influence satisfaction
behavior, further expanded on satisfaction includes: Quality, Value, Timelines,
Efficiency and Ease improvement and organizational changes and measurement and
are most often utilized to develop the architecture for satisfaction between the
customer’s being measure when an organization can fulfill customer expectation and
perception about their needs.

Measurement of customers’ satisfaction is a difficult task which is challenge for the

marketer and organization. But customer satisfaction measurement is the term which
can provide the grant success to the organization.

GA 2008-2010 DIMAT
Page 7
1.4 Telecom service providers in Raipur city

BHARTI TELECOM

One of the foremost corporate leaders of contemporary India Sunil Bharti Mittal is the
chairman and MD of Bharti Airtel Ltd.

Telecom giant Bharti Airtel is the flagship company of Bharti enterprise. The Bharti
group has a divert business portfolio and has created global brand in telecommunication
sector. Airtel comes to us from Bharti airtel ltd. India’s largest integrated and the first
privet telecom service provider.
Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the
largest mobile service provider in the country, based on the number of customers.
The Company compliments its mobile and broadband & telephone services with
national and international long distance services. It has over 35,016 route kilometers of
optic fiber on its national long distance network.

Airtel also provides the internet service by there cellular network customers have
freedom to access the internet anytime anywhere across the India.

The company will invest up to $3.5 billion this fiscal (07-08) in network expansion.
It has an installed base of 40,000 cellists and 59% population coverage
After the proposed network expansion, an additional 30,000 towers will result in the
company achieving 70% population coverage. Bharti has over 39 million users as on
March 31, 2007 . It has set a target of 125 million subscribers by 2010

GA 2008-2010 DIMAT
Page 8
Prepaid customers account for 88.5% of Bharti’s total subscriber base, an increase from
82.7% a year ago.

IDEA CELLULAR

Idea Cellular is a wireless telephony company operating in various states in India. It

initially started in 1995 as a join venture between the Tatas, Aditya Birla Group and
AT&T by merging Tata Cellular and Birla AT&T Communications.

IDEA Cellular is part of the Aditya Birla Group, a US$ 24 billion corporation with a
market cap of US$ 31.5 billion and in the league of Fortune 500.

As India's leading GSM Mobile Services operator, IDEA Cellular has licenses to operate
in all 22 Service Areas. Presently, operations exist in 11 Service Areas covering Delhi,
Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh,
Uttaranchal, Haryana, UP-West, Himachal Pradesh, UP-East, Rajasthan and Kerala.
With a customer base of over 24 million, IDEA Cellular's footprint currently covers
approximately 60% of India's telecom population. Customer Service and Innovation are
the drivers of this Cellular Brand. A brand known for their many firsts, Idea is only
operator to launch GPRS and EDGE in the country. Idea has received international
recognition for its path-breaking innovations when it won the GSM Association Award
for "Best Billing and Customer Care Solution" for 2 consecutive years

The company has its retail outlets under the "Idea n' U" banner. The company has also
been the first to offer flexible tariff plans for prepaid customers. It also offers GPRS
services in urban areas.

IDEA Cellular is a publicly listed company, having listed on the Bombay Stock
Exchange (BSE) and the National Stock Exchange (NSE) in March 2007.
The New Service Areas are Uttar Pradesh (East), Rajasthan and Himachal Pradesh.

GA 2008-2010 DIMAT
Page 9
Innovate, Stimulate, Liberate….
Idea believes on these three words which makes Idea a Brand which made idea a
formidable player in the telecom industry.

RELIANCE INFOCOMM

It was with this belief in mind that Reliance Communications (formerly Reliance
Infocomm) started laying 60,000 route kilometers of a pan-India fiber optic backbone.
This backbone was commissioned on 28 December 2002, the auspicious occasion of
Dhirubhai’s 70th birthday, though sadly after his unexpected demise on 6 July 2002.

Reliance Communications has a reliable, high-capacity, integrated (both wireless and

wire line) and convergent (voice, data and video) digital network. It is capable of
delivering a range of services spanning the entire infocomm (information and
communication) value chain, including infrastructure and services — for enterprises as
well as individuals, applications, and consulting.

India’s one of the leading integrated telecom company, Reliance Communications is the
flagship company of the Anil Dhirubhai Ambani Group (ADAG) of companies. Listed on
the National Stock Exchange and the Bombay Stock Exchange, it is India’s leading
integrated telecommunication company with over 48 million customers.
There business encompasses a complete range of telecom services covering mobile
and fixed line telephony. It includes broadband, national and international long distance
services and data services along with an exhaustive range of value-added services and
applications. Our constant endeavor is to achieve customer delight by enhancing the
productivity of the enterprises and individuals they serve.

GA 2008-2010 DIMAT
Page 10
Reliance Communications, along with Reliance Telecom and Flag Telecom, is part of
Reliance Communications Ventures (RCoVL). According to National Stock Exchange
data, Anil Ambani controls 66.75 per cent of the company, which accounts for more
than 1.36 billion shares of the company.

Reliance Infocomm is an Indian telecommunications company. It is the flagship

company of the Reliance-Anil Dhirubhai Ambani Group, comprising of power (Reliance
Energy), financial services (Reliance Capital) and telecom initiatives of the Reliance
ADA Group. Reliance Infocomm is currently managed by Anil Dhirubhai Ambani.It uses
CDMA2000 1x technology.

At present, Reliance Telecom's GSM cellular services are available in 340 towns within
its eight-circle footprint. Reliance's CDMA services are available in 19 states and cover
about 65% of the country, state wise. Reliance Infocomm also offered for the first time in
India, mobile data services through its R-World mobile portal. This portal leverages the
data capability of the CDMA 1X network.

GA 2008-2010 DIMAT
Page 11
TATA TELECOM

Tata Teleservices Limited (TTSL) is part of the Tata Group of Companies, an Indian
Conglomerate. It runs the brand name Tata Indicom in India in various telecom circles
of India. The company forms part of the Tata Group's presence in the
Telecommunication Industry in India, along with Tata Teleservices (Maharashtra)
Limited (TTML) and VSNL.

TTSL was incorporated in 1995 and was the first company to offer CDMA Mobile
services in India, specifically in the state of Andhra Pradesh.

In December 2002, the company acquired the erstwhile Hughes Telecom (India) Ltd.
which was renamed Tata Teleservices (Maharashtra) Limited.

In September 2007, Tata Indicom launched the Talk World plan, an International Long
Distance Plan.

Tata is the direct competitor with Reliance, both CDMA operators in India. The company
provides unified telecommunication solutions including mobile, fixed wireless, fixed line
and broadband. Other competitors are Vodafone, Airtel, Idea, MTNL, and BSNL
providing GSM based mobile telephony.
GA 2008-2010 DIMAT
Page 12
The company was first in India to provide free intra network calling within city limits.
They launched a unique scheme providing lifetime rental free connectivity on its mobile
and fixed wireless for a one time charge.

BHARAT SANCHAR NIGAM LIMITED (BSNL)

Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation

Limited) is a public sector communications company in India. It is the India's largest
telecommunication company with 24% market share as on March 31, 2008. Its
headquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath,
New Delhi. It has the status of Mini-ratna - a status assigned to reputed Public Sector
companies in India.

BSNL is India's oldest and largest Communication Service Provider (CSP). Currently
BSNL has a customer base of 72.34 million (Basic & Mobile telephony). It has footprints
throughout India except for the metropolitan cities of Mumbai and New Delhi which are
managed by MTNL. As on March 31, 2008 BSNL commanded a customer base of
31.55 million Wireline, 4.58 million CDMA-WLL and 36.21 million GSM Mobile
subscribers. BSNL's earnings for the Financial Year ending March 31, 2007 stood at
INR 397.15b (US$ 9.67 b) with net profit of INR 78.06b (US$ 1.90 billion). Today, BSNL
is India's largest Telco and one of the largest Public Sector Undertaking with estimated
market value of $ 100 Billion.

India's fastest growing cellular service, along with postpaid and prepaid services brings
cellular telephony to the masses, through innovative technology and strategic pricing.
This ambitious service uses state-of-the-art GSM technology to attain global excellence
and leadership in business. There entry into this sector has brought GSM cellular

GA 2008-2010 DIMAT
Page 13
service at an affordable cost to the common man. All serving a single objective, to
provide better communication to millions across India.

Customers have reposed tremendous faith in BSNL and it has enrolled over 30 Lack
Cellular customers within ten months of launch of Cellular service, an unprecedented
mark in Indian Cellular Market. Cell One provides a number of Value Added Services.
These services helps BSNL serve customer better & enhance the ease & quality of
communication thus bringing global connectivity at customers’ doorstep.

2.1 Objective of Research

2.2 Purpose of Research
2.3 Limitations
2.4 Literature Review
2.5 Methodology

GA 2008-2010 DIMAT
Page 14
2.1 OBJECTIVES OF RESEARCH

This study has been under taken with followings objectives:-

1) To find out the impact of customer satisfaction on BSNL services.

2) To find out the different features provided by telecom service provider

3) To find out the factor that influences the consumer to choose BSNL services.

4) To find out the consumer satisfaction towards services provided by BSNL.

5) To find out the satisfaction level of the features provided by telecom providers.

GA 2008-2010 DIMAT
Page 15
2.2 PURPOSE OF RESEARCH

“Every research has its own purpose which provides the sense to researcher to
help for the society in any form. The analysis of the impact of BSNL services on the
level of customer satisfaction earned could be beneficial for the any company.”
Telecom Regulatory Authority of India periodically publishes a quarterly report on
‘The Indian Telecom Services Performance Indicators’. The information contained in the
report is collected from various telecom operators and service providers. TRAI collects
performance-oriented data from various service providers on a quarterly basis to
monitor the growth trend in the sector and to decide upon pro-active and So motto
measures to fuel the growth of the telecom services in the country. Also, in exercise of
the powers vested in the Telecom Regulatory Authority of India (TRAI) under the TRAI
Act, 1997, the Authority has been conducting periodical survey of the quality of basic
and cellular telephone services provided by different telecommunication service
providers all over the country. The survey also covers an assessment of the level of
satisfaction with the services received by subscribers of these telephone service
providers.

The present study was deemed necessary because of the following reasons:

GA 2008-2010 DIMAT
Page 16
•Particularly the surveys conducted to assess the consumer satisfaction misses out on
the multifaceted nature of consumer satisfaction and thus do not capture the status of
consumer satisfaction holistically. The study gives a comprehensive assessment of the
satisfaction of consumers encompassing quality of technical service, quality and
operational aspects of gadgets; and social / psychological costs due to unsolicited
promotional calls/SMSs etc.

• Sometimes, the strategies of service providers / producers to ensure customer

satisfaction by serving them in a better way or providing quality gadgets use to be
based on erroneous theoretical and partially tested empirical postulates. The study aims
to provide inputs to testify few of such postulates in order to provide the service
providers / producers afresh insights on the consumer behavior.

One of the major purposes of the research study is that it is an intellectual

property which encourages the researcher to find out the unknown aspects which is
beneficial for the society. Report writing is beneficial for the newly researcher as they
can use there statistical techniques what they have learnt previously. The research is
the assets of researcher. It is also inspiration for the researcher to work out in future on
another problem.
This research provides us the manifestation of the telephony users and there
views will work as the recommendation for the telecom service provider.

The aim of study was to objectively understand the behavior of BSNL users in
Raipur and further capture their satisfaction level that is influenced by various technical
and non technical factors. Specific aspects to be studied were:

• Level of the satisfaction of users

GA 2008-2010 DIMAT
Page 17
• Reasons for dissatisfaction

• Usage Pattern of functionalities and added services provided

• Satisfaction regarding frequent calls

2.3 LIMITATIONS OF THE RESEARCH

This study has find out the impact of customer satisfaction of BSNL users with
the specified features. Though researcher goes towards many of the findings and
objective but in this crucial task has a lot of difficulties in the way to get destination.
Specially the satisfaction and attitude measurement are the aspects which is very
difficult to observe very correctly.
The limitations of the research are listed below:

1. Due to time and money constraints sample size is very small.

2. Some of the respondents were not interested to fill the questionnaire.

3. Some question like receive of unsolicited calls and their response didn’t provide
honestly answers.

4. Females are not freely or easily show their interest regarding research and
questionnaire.

GA 2008-2010 DIMAT
Page 18
 5. Random sampling collection for the very low sample size does not give the
appropriate result.

6. Open ended questions used in the questionnaire were answered very difficult
fully by the respondents.

2.4 REVIEW OF RELATED LITRATURE

Review of related literature means researcher should undertake extensive

literature survey connected with the problem. For this purpose, the abstracting and
indexing journals and published or unpublished bibliographies are the first place to go
to. Academic journals, conference proceeding, government reports books etc. must be
tapped depending on the nature of the problem. In this process, it should be
remembered that one source will lead to another. The earlier studies, if any, which are
similar to the study in hand, should be carefully studied. A good library will be a great
help to the researcher at this stage.

SEVEN STEPS OF CONSUMER SATISFACTION

It's a well known fact that no business can exist without customers. In the business of
Website design, it's important to work closely with your customers to make sure the site
or system you create for them is as close to their requirements as you can manage.
Because it's critical that you form a close working relationship with your client, customer
service is of vital importance. What follows are a selection of tips that will make your
clients feel valued, wanted and loved.

GA 2008-2010 DIMAT
Page 19
1. Encourage Face-to-Face Dealings

This is the most daunting and downright scary part of interacting with a customer. If
you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest
assured, though, it does get easier over time. It's important to meet your customers face
to face at least once or even twice during the course of a project.

My experience has shown that a client finds it easier to relate to and work with someone
they've actually met in person, rather than a voice on the phone or someone typing into
an email or messenger program. When you do meet them, be calm, confident and
above all, take time to ask them what they need. I believe that if a potential client
spends over half the meeting doing the talking, you're well on your way to a sale.

2. Respond to Messages Promptly & Keep Your Clients Informed

This goes without saying really. We all know how annoying it is to wait days for a
response to an email or phone call. It might not always be practical to deal with all
customers' queries within the space of a few hours, but at least email or call them back
and let them know you've received their message and you'll contact them about it as
soon as possible. Even if you're not able to solve a problem right away, let the customer
know you're working on it.

A good example of this is my Web host. They've had some trouble with server hardware
which has caused a fair bit of downtime lately. At every step along the way I was
emailed and told exactly what was going on, why things were going wrong, and how
long it would be before they were working again. They also apologised repeatedly,
which was nice. Now if they server had just gone down with no explanation I think I'd

GA 2008-2010 DIMAT
Page 20
have been pretty annoyed and may have moved my business elsewhere. But because
they took time to keep me informed, it didn't seem so bad, and I at least knew they were
doing something about the problems. That to me is a prime example of customer
service.

3. Be Friendly and Approachable

A fellow Site Pointer once told me that you can hear a smile through the phone. This is
very true. It's very important to be friendly, courteous and to make your clients feel like
you're their friend and you're there to help them out. There will be times when you want
to beat your clients over the head repeatedly with a blunt object - it happens to all of us.
It's vital that you keep a clear head, respond to your clients' wishes as best you can,
and at all times remain polite and courteous.

4. Have a Clearly-Defined Customer Service Policy

This may not be too important when you're just starting out, but a clearly defined
customer service policy is going to save you a lot of time and effort in the long run. If a
customer has a problem, what should they do? If the first option doesn't work, then
what? Should they contact different people for billing and technical enquiries? If they're
not satisfied with any aspect of your customer service, who should they tell?

There's nothing more annoying for a client than being passed from person to person, or
not knowing who to turn to. Making sure they know exactly what to do at each stage of

GA 2008-2010 DIMAT
Page 21
their enquiry should be of utmost importance. So make sure your customer service
policy is present on your site -- and anywhere else it may be useful.

5. Attention to Detail (also known as 'The Little Niceties')

Have you ever received a Happy Birthday email or card from a company you were a
client of? Have you ever had a personalized sign-up confirmation email for a service
that you could tell was typed from scratch? These little niceties can be time consuming
and aren't always cost effective, but remember to do them.

Even if it's as small as sending a Happy Holidays email to all your customers, it's
something. It shows you care; it shows there are real people on the other end of that
screen or telephone; and most importantly, it makes the customer feel welcomed,
wanted and valued.

6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out

Sometimes this is easier said than done! However, achieving this supreme level of
understanding with your clients will do wonders for your working relationship.

Take this as an example: you're working on the front-end for your client's exciting new
ecommerce endeavor. You have all the images, originals and files backed up on your
GA 2008-2010 DIMAT
Page 22
desktop computer and the site is going really well. During a meeting with your client
he/she happens to mention a hard-copy brochure their internal marketing people are
developing. As if by magic, a couple of weeks later a CD-ROM arrives on their doorstep
complete with high resolution versions of all the images you've used on the site. A note
accompanies it which reads:

"Hi, you mentioned a hard-copy brochure you were working on and I wanted to provide
you with large-scale copies of the graphics I've used on the site. Hopefully you'll be able
to make use of some in your brochure."

Your client is heartily impressed, and remarks to his colleagues and friends how very
helpful and considerate his Web designers are. Meanwhile, in your office, you lay back
in your chair drinking your 7th cup of coffee that morning, safe in the knowledge this
happy customer will send several referrals your way.

7. Honors Your Promises

It's possible this is the most important point in this article. The simple message:
when you promise something, deliver. The most common example here is
project delivery dates. Clients don't like to be disappointed. Sometimes,
something may not get done, or you might miss a deadline through no fault of
your own. Projects can be late, technology can fail and sub-contractors don't
always deliver on time. In this case a quick apology and assurance it'll be ready
ASAP wouldn't go a miss.

Conclusion

GA 2008-2010 DIMAT
Page 23
 Customer service, like any aspect of business, is a practiced art that takes time
and effort to master. All you need to do to achieve this is to stop and switch roles
with the customer. What would you want from your business if you were the
client? How would you want to be treated? Treat your customers like your friends
and they'll always come back.

Customer Retention

Introduction

In this era of intense competition, it is very important for any service company to
understand that merely acquiring customers is not sufficient because there is a direct
link between customer retention over time and profitability & growth. Customer retention
to a great extent depends on service quality and customer satisfaction. It also depends
on the ability of the organization to encourage customers to complain and then recover
when things go wrong. Complaints are natural part of any service activity as mistakes
are an unavoidable feature of all human endeavor and thus also of service recovery.
Service recovery is the process of putting things right after something goes wrong in the
service delivery.

Importance of Customer Retention

Why are customers more profitable for service firms over a period of time? There are a
number of reasons for this. To begin with, to acquire a customer a company incurs

GA 2008-2010 DIMAT
Page 24
promotional costs like advertising, sales promotion etc. It is said that it costs five times
more to attract a new customer than retaining one. The operating cost decreases
when a customer stays. Services being rich in experience and credence qualities, it
takes some time for customers to get accustomed to it and once they are used to the
service and are satisfied with the service provider ,they tend to purchase more over a
period of time.

As they remain satisfied with a service provider, they spread a positive word of mouth,
which is very effective in case of services for attracting new customers. Longer the
customer stays with an organization, more the organization knows about him, which
enables it to offer customized services which make it difficult for the customer to defect.
This may even provide opportunities to the organization to charge price premium by
offering individualized services which may be difficult for the competitors to offer.

Considering the importance of retaining customers in service business, Reichheld &

Sasser coined a term ‘Zero Defection’. They highlighted that companies can boost
profits by almost 100% by retaining just 5% more of their customers. Further, it is also
very important to understand the life time value of a customer. For example, if an
average customer of BSNL pays Rs. 500 per month and stays with the company for 20
years., his average lifetime value will be Rs. 500x 12x 20=Rs. 1,20,000. Further, if by a
positive word of mouth, he brings just one more customer to the organization, his value
to the organization doubles. Therefore, it is important for all the employees in the
organization to understand the life time value of their customers. Once they understand
it, they will treat the customer accordingly and will focus on building relationship with the
very people who keep them in business.

Reasons for customer Switching

The reasons for customer switching can be identified as following:

GA 2008-2010 DIMAT
Page 25
 1. Pricing (High price, unfair pricing, deceptive pricing)
2. Inconvenience (Wait for service, wait for appointment)
3. Core service failure (Service mistakes, Billing errors)
4. Service encounter failure (Uncaring, impolite, unresponsive behavior)
5. Response to service failure (Negative response, no response, reluctant
response)
6. Competition (Found better service)
7. Ethical problem (Cheating, Unsafe)
8. Involuntary switching (customer moved, provider closed)

An important aspect of the above is that six out of the eight service switching factors are
controllable from a service organization’s point of view.

Strategies for Customer Retention

(A) Complaint Management System

Any worthwhile complaints management system has to have following basic features:

a. Visibility: Customer should know where to complain.

b. Accessibility: Customer should know how to complain. As a rule of thumb, the
more formal the system for lodging complaints, the less accessible it is to
customers.
c. Responsiveness: Complaints need to be dealt quickly. The quicker the
complaints are dealt with, the higher the customer satisfaction.
d. Customer-focused approach: A service provider, who adopts customer-
focused approach, invites complaints and indicates commitment of resolving
complaints by its words and actions in all fairness.
GA 2008-2010 DIMAT
Page 26
 e. Accountability: Someone in the organization has to take responsibility for
complaint handling.
f. Continuous Improvement: This is about looking at the root causes and fixing
them.

A good complaint management system must ensure that that complainant is kept
informed, the staff understands the complaint processes, complaints are taken seriously
and employees are empowered to deal with situations.

(B) Service Recovery Strategies

Consider the following incident regarding an airlines (British Airways). “An aircraft door
was left open in a rainstorm before take off and a passenger near the door
unfortunately got showered. The flight attendant not only did everything that was
routine- offered to have the customer’s garments cleaned and made sure that a
customer relations representative contacted the customer later to demonstrate that
they genuinely cared- but also made special gesture by offering the passenger a
complimentary choice of certain tax free goods.”

It is very important for service companies to have service recovery strategies which can
be applied in case of service failure. The following steps are useful in an effective
service recovery system.

1. Measure the costs of effective service recovery. It should include the indirect
cost also, when a customer departs unhappily.

GA 2008-2010 DIMAT
Page 27
 2. Break customer silence and listen closely for complaints.
3. Act fast.
4. Train and empower employees. The front line people must be trained and
empowered by the organization.
5. Close the customer feedback loop.

(C) Managing Customer Waiting

Sometimes, it is not possible to match demand & capacity, and hence waiting by
customers becomes inevitable. While reducing waiting time is important for a marketer,
it is equally if not more, important to reduce the customer’s perceived waiting time. If a
customer’s perceived waiting time is less, he will be more satisfied with the service.

Various ways of managing customer waiting are as follows:

1. The organization should analyze its operational processes in order to identify and
remove inefficiencies or bottlenecks, if any.
2. In case waiting cannot be avoided, a reservation system can be used.
3. Since unoccupied time feels longer than occupied time, keep customer occupied
by installing distractions that entertain and physically involve them. For example,
TV sets, magazines reading material can be provided in waiting area.
4. Provide ‘waiting duration information’ i.e. information about the expected length
of wait and/or ‘queuing information’ i.e. a customer’s position in queue with
continuous update.
5. If unexpected delays occur, explanation should be given to the customer. This
helps in reducing uncertainty and customer irritation. The key is to impress upon

GA 2008-2010 DIMAT
Page 28
 the customer that he has not been forgotten. Simple things like providing a glass
of water or a cup of tea to the waiting customer can do wonders.
6. Keep resources not serving customer out of sight. This can be done by keeping
idle employees out of view and conducting activities that do not involve customer
interactions out of customer’s sight.
7. Try to reduce pre-service waiting time by transferring some of the pre-service
waiting to the service encounter phase.
8. A smiling service person who knows his job well can be very helpful in
overcoming many negative effects of waiting. Therefore, training and incentive/
rewards for providing good service should be made.

Conclusion

Today’s customers are becoming harder to please. They are smarter, more price
conscious, more demanding, less forgiving and they are approached by many
more competitors with equal or better offers. The challenge is not to produce
satisfied customers; several competitors can do this. The challenge is to produce
delighted and loyal customers. If these customers are retained with the
organization, they become really profitable by way of increase in purchasing,
reduced operating costs, price premiums and through referrals. Too many
companies suffer from customer churn i.e. high customer defection. It is like
adding water to a leaking bucket. Various strategies such as measuring customer
life time value, efficient complaint management system and service recovery
strategies can be really helpful in retaining customers.

GA 2008-2010 DIMAT
Page 29
2.5 RESEARCH METHODOLOGY

Research methodology is a way to solve systematically the research problem. In it,

the researcher studies the various steps that are generally adopted in studying research
problem along with the logic behind them. It is necessary for the researcher to design
his methodology for his problem as the same may differ from problem to problem. Thus,
when a researcher talks of research methodology; he not only talks the of research
methods but also considers the logic behind the methods he uses in the context of his
research study and explains why he is using a particular method or technique and why
he is not using others so that research results are capable of being evaluated either by
the researcher himself or by others.

GA 2008-2010 DIMAT
Page 30
 The proper research methods prevent the researcher to trap in the difficulties and
rescue to problems occurring in the path of research study. The proper steps following
are very beneficial for the researcher.

The methodology to conduct the study was composed of different tasks as follows:

The aim of study is to objectively understand the behavior of BSNL users in

Raipur and further capture their satisfaction level that is influenced by various technical
and non-technical factors. Specific aspects to be studied were:

• Level of the satisfaction of users

• Reasons for dissatisfaction
• Usage Pattern of functionalities and added services provided
• Satisfaction regarding frequent calls

1. A review of literature on consumer satisfaction in telecom industry was undertaken in

order to define the comprehensive scope of the study and ensuring its objectivity.

2. Empirical research was based on a stratified random sample survey, a series of

structured interviews and few focus group discussions. The sample size of 100 for the
survey was drawn from various categories of consumers and thus appropriate
representation of all market segments was ensured. The length of survey questionnaire
was kept optimum to avoid the psychological burden of responding for the sampled
consumers. The information collected through survey was supplemented by conducting
a few Focus Group Discussions with consumers in the all market segments.

GA 2008-2010 DIMAT
Page 31
3. Analytical Framework for the study is aimed at getting an insight in to the behavior of
consumer by analyzing the data / information gathered through empirical research.

2.5.1 UNIVERSE
Population refers to the total of items about which information is desired. The
attribute that are the object of study are referred to as characteristics and the units
possessing them are called as elementary units. The aggregate of such units is
generally described as population. Thus, all the units in any field of inquiry constitute
universe and all elementary units constitute population.
The population can be finite and in finite. The population is said to be finite if it
consists of a fixed number of elements so that it is possible to enumerate it in its totality.
An infinite population is one in which it is theoretically impossible to observe all the
elements.
The population is specific group of people, firms, conditions; activities etc. which forms
the pivot of research for developing and using.

It becomes primary duty of a researcher to define the population from which he draws
the sample.
Population – To achieve this objective, the city of Raipur was selected.

2.5.2 SAMPLE
The sample is the representative unit of population. The researcher has taken
the consumer as sample for this research. Since in this research the researcher has
collected the sample according to his own convenience, so the sample is convenient
sample and the sample size of the research is 100.

GA 2008-2010 DIMAT
Page 32
2.5.3 SIZE OF THE SAMPLE
This refers to number of items to be selected from the universe to constitute a
sample. The size of the sample should neither be excessively large, nor too small. It
should be optimum. An optimum sample size is one which fulfills the requirements of
efficiency, representativeness, reliability, and flexibility.

2.5.4 SAMPLING METHOD

In this method the Sample units are chosen primarily on the basis of convenience to
the investigator. In this type of sampling, items for the sample are selected deliberately
by the researcher; his choice concerning the items remains supreme. In other words,
under this sampling, the organizers of the inquiry purposely choose the particular unit of
the universe for constituting a sample on the basis that the small mass that they so
select out of a huge one will be typical or representative of the whole.
In this research Random sampling method is used.

2.5.5 DATA COLLECTION

The task of data collection begins after a research problem has been defined.
Researcher should keep in mind two types of data, primary data and secondary data.
The primary data are those which are collected afresh and for the first time, and thus
happen to be original in character. The secondary data, on the other hand, are those
which have already been collected by someone else and which have already been
passed through the statistical process. Both primary data and secondary data were
used in accomplishment of objective of the research.

GA 2008-2010 DIMAT
Page 33
 1. Primary Data-

In layman’s language data originally collected in the process of the investigation are
known as primary data.

Methods of Collecting Primary Data-

Primary data may be obtained by applying any of the following methods:-

a) Direct Personal Interviews.

b) Indirect oral Investigation.
c) Information from Correspondents.
d) Mailed Questionnaires Methods.
e) Schedules sent through Enumerators.

In this Research we have adopted the “Direct Questionnaire Method”

and Personal Interview Method for collecting primary data.

A qualitative exploratory Questionnaire survey study was conducted to understand

the attitude of Raipur’s consumers towards mobile services.

The present study has been organized on a sample size of 100 Respondents is
thus both a residential and user unit which is considered as respondent. It includes
the persons who are employees, businessman, professionals, Workman, students,
and house wives.

GA 2008-2010 DIMAT
Page 34
GA 2008-2010 DIMAT
Page 35
 Number of respondents using service providers

SERVICE PROVIDER NO. OF REPONDENT PERCENTAGE (%)

AIRTEL 30 30%
IDEA 15 15%
BSNL 34 34%
RELIANCE 16 16%

GA 2008-2010 DIMAT
Page 36
 TATA INDICOM 5 5%
TOTAL 100 100%

INTERPRETATION:-

Thus by observation table we can get the result that BSNL and Airtel are both have
equal respondents and have its market share high than others.

Gender wise analysis

GENDER NUMBER OF PERCENTAGE (%)

RESPONDENT
MALE 76 76%
FEMALE 24 24%
TOTAL 100 100%

GA 2008-2010 DIMAT
Page 37
INTERPRETATION:-

Thus by observation table we conclude that the male users is 76% out of total
respondents out of our sample size that is 100.

Preference of using services

SERVICE PROVIDER RANK 1 RANK 5

AIRTEL 55 10
IDEA 5 14
BSNL 17 23
RELIANCE 28 13
TATA INDICOM 5 40
TOTAL 100 100

GA 2008-2010 DIMAT
Page 38
INTERPRETATION:-

Thus by observation table we can get the result that Airtel have the highest preference
among the respondents and Tata Indicom have the least preference whereas BSNL
having mixed reactions among the respondents.

Satisfaction level of customer care services

LEVEL OF SATISFACTION NO. OF RESPONDENTS PERCENTAGE (%)

HIGHLY SATISFIED 5 5%
SATISFIED 32 32%
AVERAGE 43 43%
DISSATISFIED 12 12%
HIGHLY DISSATISFIED 8 8%
TOTAL 100 100%

GA 2008-2010 DIMAT
Page 39
INTERPRETATION:-

The buyers behavior is universally known that their highly satisfaction is very difficult
and here also only 5% users are highly satisfied and only 43% are satisfied averagely
and 32% are satisfied which shows that customer care is improving and a major factor
for checking the satisfaction level.

Features to be required in telecom service

FEATURES RATING (1-5)

Network coverage 4.3
Voice quality 3.4
Accuracy of billing 2.8
Time to repair faults 1.8
Variety of value added service provided 3.2
Tariff schemes 3

GA 2008-2010 DIMAT
Page 40
INTERPRETATION:-

Thus by the observation it is clear about the features required in a telecom services, in
which network coverage is most desired feature.

GA 2008-2010 DIMAT
Page 41
 FORMULATION OF HYPOTHESIS .
.

The hypothesis is a statement. It is a prediction or proposed solution to a problem

based on prior knowledge or information gathered. It is an 'educated guess' about the
outcome of the experiment. A hypothesis must be able to be tested. A hypothesis is
also referring to one, hypotheses refers to many.

Chi-square test
GA 2008-2010 DIMAT
Page 42
Null hypothesis is satisfaction and different features are not dependent to each other.
Alternative hypothesis is satisfaction and different features are dependent to each
other.

Calls
Basic Customer Regarding
TOTAL
Telephony Care Service Various
Schemes

Satisfied 77 85 42 204

Dissatisfied 23 5 43 71

TOTAL 100 90 85 275

To determine the value of X², we have to find out the expected value of observed
frequencies. And Formula to find it is following.

E= RT*CT
N

Where,

E=Expected frequency
RT=the row total for the counting the cell

GA 2008-2010 DIMAT
Page 43
CT=the column total for the column containing the cell
N=the total number of observations.

Expected value of all numbers starts from column wise.

E– Value of 77=204*100/275=74.18
of 23=71*100/275=25.82
of 85=204*90/275=66.76
of 5=71*90/275 =23.24
of 42=204*85/275=63.05
of 43=71*85/275 =21.95

Now the calculation of chi-square test

Formula for that

X²=∑ (O-E)² /E

Where E=Expected frequencies

O=Observed frequencies

Degree of freedom is =(C-1)*(R-1)

(3-1)*(2-1) =2*1=2

O E (O-E)² (O-E) ²/E

GA 2008-2010 DIMAT
Page 44
77
74.18 7.94 0.11
23
25.82 7.94 0.31
85
66.76 332.56 4.98
5
23.24 332.56 14.31
42
63.05 443.29 7.03
43
21.95 443.29 20.20
∑(O-E)²/E =46.94

Significance level is 1%, the tabulated value is 9.21.

Hence the calculated value of chi-square is more than from tabulated value, so our
hypothesis is rejected and therefore satisfaction and different features are dependent to
each other.

GA 2008-2010 DIMAT
Page 45
 FINDINGS

After the analysis of the data collected the followings were the findings:

 The result that BSNL and Airtel are both have equal respondents and have
its market share high than others.

GA 2008-2010 DIMAT
Page 46
  That the male users is 76% out of total respondents out of our sample size that is
100.

 Airtel have the highest preference among the respondents and Tata
Indicom have the least preference whereas BSNL having mixed reactions
among the respondents.

 5% users are highly satisfied and only 43% are satisfied averagely and 32% are
satisfied with the service provided.

 Network coverage is most desired feature for a telecom user.

 Satisfaction level and different features of service are dependent to each other.

RECOMMENDATIONS

 Telecom service provider can increase their level of satisfaction to the

customers by providing the congestion free network with good signal support.
GA 2008-2010 DIMAT
Page 47
  The paying cost for these services should be low which is affordable by the
lower and middle class persons.

 There should not be very much unsolicited calls which make people irritated.

 There should be effective customer care services which can properly work on
complaints of customers for their comfort ability.

 The effective schemes could also raise the customer satisfaction as their will be
more moneys’ worth.

GA 2008-2010 DIMAT
Page 48
 BIBLIOGRAPHY

The name of the books, websites Magazines and News papers referred to prepare the
research are as follows:

 Philip Kotler, Marketing Management, Published by Ashok K. Ghosh,12th Edition

 C.R. Kothari , Research Methodology , New Age International Pvt. Ltd. ,Second
Edition
 Business Today, Business Magazine

INTERNET:

www.airtel.in
www.ideacellular.com
www.bsnl.co.in
www.tataindicom.com
www.rim.com
www.trai.co.in

GA 2008-2010 DIMAT
Page 49
 ANNEXURE

“BSNL services on customer satisfaction

Questionnaire”
Name:-
Age:-
Phone no. :-
GA 2008-2010 DIMAT
Page 50
Occupation:-
NOTE: Remember to respond to all items, even if you are not completely
sure. Also, please be honest in responding to these statements.
1. Which Teleservices you prefer, please rank.(rank 1to 5)

Airtel____ Idea_____ BSNL_____ Reliance______ Tata

Indicom_____

2. Which Telecom services you are customer of?

____________

3. Please rate (1to5) the features you look for in Telecom Service
Provider.
Network coverage
Voice quality
Accuracy of billing
Time to repair faults
Variety of value-added services provided
Tariff schemes

4. If BSNL user how much satisfied are you with the basic Telephony of
BSNL?

1. Highly satisfied: 2. Satisfied: 3. Average:

4. Dissatisfied: 5. Highly dissatisfied:

5. Rate how much you are satisfied by the customer care service?

1. Highly satisfied: 2. Satisfied: 3. Average:

4. Dissatisfied: 5. Highly dissatisfied:

6. Rate how feel about the frequent calls regarding the various
schemes?

1. Highly satisfied: 2. Satisfied: 3. Average:

4. Dissatisfied: 5. Highly dissatisfied:

GA 2008-2010 DIMAT
Page 51
 7. What are your recommendations you need for service provider?

_______________________________________________________
___

GA 2008-2010 DIMAT
Page 52