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Transcript of customer perception towards various dish tv provider
GITAM SCHOOL OF INTERNATIONAL BUSINESS
PROJECT REPORT
ON
CUSTOMER PERCEPTION TOWARDS VARIOUS
DTH SERVICE PROVIDERS
Submitted by:
R.Shiva Shankar (1226112243)
1
CONTENTS
SUMMARY 3
INTRODUCTION 3
OBJECTIVES 4
METHODOLOGY 4
INDIAN DTH SATELLITE INDUSTRY 5
CURRENT SCENARIO OF DTH INDUSTRY 6
STRUCTURE OF DTH INDUSTRY 7
ENVIRONMENTAL ANALYSIS 8
DATA ANALYSIS 12
FACTOR ANALYSIS 12
SCREE PLOT 13
COMPONENT MATRIX 14
ANALYSIS OF MEAN, SD& VARIANCE 15
TEST OF HYPOTHESIS 16
COCLUSION 17
QUESTIONNIARE 18
SUMMARY:
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The study is mainly all about the customer perception and comparison between DTH TV & Cable TV services and analysis various factors which influenced people to switch over from cable TV to DTH TV. So we analyze the factors which influenced people more to switch over and the study also said about the substitutes/ threats of DTH services such as IPTV, Online TV so that company make new strategy in future to face the new competition.
From this study we know the perception of the households towards various DTH TV players, cable TV so that they use it in company’s strategy to make them prepare for that competitive market. Various DTH players also use new technology to give more facility to the customers to avoid extra competition in the market. The market share of various TV network suppliers helps them to analyze their business so that they capture the opportunities & also the market share of various DTH players give them information to placed them in the market situation. All of this information helps players to carry DTH industry in a good position and helps to analyze future strategy.
From this study people also take advantage to choose the suitable TV network providers by analyzing the market environment.
INTRODUCTION:
In earlier days there was only one TV channel in India the “Doordarshan”, was owned and operated by government of India. In those eras every home which had a TV set used to have its own antenna to capture the signals. The Cable Television Ordinance Law was passed in January 1995. This enabled the growth of TV channels & cable operators created a big industry and market opportunities.
Until few years back there were as many as 1, 00,000 cable operators across India. However the services provided by cable operators were poor. The strikes, increase in tariff plan, selective broadcast and poor services were major cause of dissatisfaction among the customers. This has created an opportunity for DTH, which serves an immediate threat to the high-end cable networks. Some of the key players in the industry are Dish TV by Zee group, Tata Sky joint venture of Tata & Star TV, Big TV by Anil Dhirubhai Ambani Group, Digital TV by Bharti Tele media, and SUN Direct from the promoters of Sun TV. There are some other companies who are contemplating to start their own DTH like Videocon.
The Indian market was till now dominated by the presence of local cable TV operators and had complete monopoly over it. DTH opened an option for Indian Consumers to opt for the satellite service to obtain television channels direct to their homes without any intermediaries. It also provided several value added services to enhance their television watching experience.
There is an immense opportunity for DTH in the Indian market. The opportunity in India almost 10 times that in developed countries like the US and Europe. For every channel there is a scope
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for broadcasting it in at least ten different languages. So, every channel multiplied by ten that is the kind of scope for DTH in the country.
DTH can also reach the remotest of areas since it does away with the intermediate step of a cable operator and the wires (cables) that come from the cable operator to your house. In DTH signals directly come from the satellite to your DTH dish.
DTH offers better quality picture than cable TV. This is because cable TV in India is analog. Despite digital transmission and reception, the cable transmission is still analog. DTH offers stereophonic sound effects. It can also reach remote areas where terrestrial transmission and cable TV have failed to penetrate.
Apart from enhanced picture quality, DTH has also allows for interactive TV services such as movie-on-demand, Internet access, video conferencing and e-mail. In DTH, the payments will be made directly by the subscriber to the satellite company offering the service.
OBJECTIVES:
To examine on those factors that influence consumers to choose various DTH service
providers.
To determine whether there exists any relation between various 1) DTH Players &
Customer Satisfaction 2) Customer Satisfaction & Channel Package.
METHODOLOGY:
SAMPLE & POPULATION:
The sample size is which is sufficient to do the analysis more effectively. As a general rule of
thumb 100 data is more enough to analyze, however in the present study the total sample size is
the target population of the survey constitutes the population in GITAM College. I took the
Vizag area to collect the primary data from households.
DATA:
Here mainly primary data collected from the college students and my hostel mates by filling up
the questionnaire.
QUESTINNAIRE:
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The questionnaire is well designed and close ended type, so that people easily filled the
questionnaire according to their perception. People always flexible to give their answer
objectively. So here open ended question is more effective as the target population is households.
TOOLS & TECHNIQUES:
Factor analysis also to analyze the various influencing factors of DTH TV services which
influenced people to choose DTH services. Chi Square test to analyze whether there exists any
relation between various DTH players and Customer satisfaction, Customer satisfaction and
channel package.
SOFTWARE:
SPSS & EXCEL used here to analyze the primary data. SPSS is very useful here to effectively
analyze the data and get effective result which is reliable enough as sample size is sufficient to
analyze.
INDIAN DTH SATELLITE TV SERVICES:
DTH stands for Direct-To-Home television. DTH is defined as the reception of satellite
programmes with a personal dish in an individual home. DTH does away with the need for the
local cable operator and puts the broadcaster directly in touch with the consumer. Only cable
operators can receive satellite programmes and they then distribute them to individual homes.
DTH services were first proposed in India in 1996. But they did not pass approval because there
were concerns over national security and a cultural invasion. In 1997, the government even
imposed a ban when the Rupert Murdoch-owned Indian Sky Broadcasting (ISkyB) was about to
launch its DTH services in India. Finally in 2000, DTH was allowed. The new policy requires all
operators to set up earth stations in India within 12 months of getting a license. DTH licenses in
India will cost $2.14 million and will be valid for 10 years. The companies offering DTH service
will have to have an Indian chief and foreign equity has been capped at 49 per cent. There is no
limit on the number of companies that can apply for the DTH license. On the DTH front, TRAI
issued the guidelines for operating DTH. Country’s first DTH license was awarded to Dish TV in
2003 which started operations in 2004.
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In 2007, TRAI proposed a new initiative by name “Headed-In-The-Sky (HITS)” model as an
alternative to the existing cable distribution. Instead of the MSOs providing the bundle, there will
be a single HITS operator who will prepare the bundle of channels and beam it to the Headed in
the satellite. With the average Indian getting younger, and hence more likely to spend on
nonessentials, the entertainment industry has the potential to grow explosively in the future. Now
the industry is ready to enter a second stage of growth powered by the twin engines of
technology (availability of quality infrastructure and the accelerated penetration of digital
connectivity) and an enabling regulatory environment.
CURRENT SCENERIO OF DTH SATELLITE TV SERVICES:
In the current context of the global financial meltdown, the Direct to Home (DTH) industry in
India is in the throes of multifarious challenges and opportunities. The “big game” is all about
shaping up grandiose plans to master the winning rules to garner as much portion of the Indian
DTH pie as possible by a handful of players. Since the DTH space denotes “big value”, akin to
the space occupied by television and telephony, inter-firm rivalries have thrown up price wars,
discount schemes, procurement of transponders, ambitious targets for improving the subscription
base, popular bouquet of channels, set top boxes with superior quality of videos, improving
content, etc as a desperate means to entice the Indian viewer. A neat 20 per cent annual growth is
being witnessed in the DTH sector in India with over 16 million households having digital pay-
TV.
According to Harsh Bijoor, a brand consultant, “Since Dish TV, the biggest market player on the
Indian soil, has not scraped even five per cent of the pie, there is plenty left for other players to
eat”.
In the early 2008, five major players, Zee’s Dish TV, Tata Sky, Reliance ADAG, Sun Direct and
Bharti Telemedia formed an umbrella body – DTH Operators Association of India (DOAI). Dish
TV is the largest DTH provider with a subscriber base of around 5 million, Tata Sky, a DTH
joint-venture Company between Star (owned by Rupert Murdoch) and the Tata Group (20:80),
now has around 3.4 million connections and the forecast for 2012 is that it will further increase
to eight million, Sun Direct, the 80:20 JV between the Maran family and the Astro Group of
Malaysia, over 2.3 million, Big TV about 1.2 million and Airtel Digital TV about 0.3 million
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subscribers (Source: Business Standard, May 1, 2009). According to sources, DD Direct Plus has
a subscriber base of about 3-4 million subscribers, mostly in the remote corners of the country
not connected by terrestrial or cable television.
DTH operations in India could be enhanced if the dearth of satellite capacity is removed by
increasing the number of available Ku-band transponders that at present is 12 on Insat 4A, which
in turn would mean more channels for viewing.
Tax burdens on DTH are another area of complaint for operators. Around 40 per cent of
revenues are siphoned off to pay taxes and license fee and another 12 per cent for services
imposed by the Central government. Apart from this, there are entertainment taxes that differ
from state to state.
STRUCTURE OF THE DTH INDUSTRY:
The structure of the DTH industry in India can be categorized as an “Oligopoly”.
The word Oligopoly is derived from the Greek for few (entities with the right to) sell.
An oligopoly is a market form in which a market or industry is dominated by a small number of
sellers (oligopolists).
An oligopoly is a market dominated by a few large suppliers. The degree of market concentration
is very high. Firms within an oligopoly produce branded products and there are also barriers to
entry.
Key characteristics of “Oligopoly” are following:
1) Few larger supplier dominates the market
2) Interdependence between firms
3) Each firm produces branded products
4) Significant entry barriers into the market in the long run which allows firms to make
supernormal profits
5) Each oligopolist is aware of the actions of the others.
Analysis of the Indian DTH industry:
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Indian DTH industry is still at nascent stage. In the year 2003 DD Direct+ was launched since
DD Direct+ is non commercial and free DTH service hence we would focus our discussion on
private players in the industry.
As of now Dish TV, Tata Sky, Big TV, Airtel Digital TV, Sun Direct are in the industry. There
are some other players like Videocon, who want to join this high lucrative industry. Since there
are only 3 major players and the market concentration is very high Indian DTH industry is
oligopolistic.
DTH faces stiff competition from the terrestrial, cable and IPTV. As per the industry estimates,
there are 130 million TV homes of which 85 million are served by cable and around 16 million
by DTH with the remaining taken by terrestrial transmission.
Terrestrial Television:
Doordarshan is the world’s largest terrestrial broadcaster with over 1400 terrestrial TV
transmitters. The reach provided by this route is phenomenal with Doordarshan covering 88% of
India’s geographical area. Covering the remaining 12% area required substantial capital
investments which does not outweigh the benefits. The transmission was done originally in
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Analog mode but beginning from 2002, Doordarshan has partnered with BBC resources – the
consulting wing of BBC, in offering digital terrestrial TV. The transmission could be received
using a low cost Yagi antenna. However, due to lack of attractive content it does not seem to be a
formidable threat for DTH.
Cable TV:
Cable TV currently operates in 2 modes viz. through CAS covering cities like Chennai, Delhi,
Mumbai and Kolkata, and through non-addressable system in the rest of the country. As seen
from the above diagram Cable TV enjoys the maximum share as compared to other medium. In
case of CAS controlled areas, the subscriber has to buy Set Top Box (STB) to see the pay
channels. On the other hand, in areas where non-addressable system is used, nearly all the
channels are available without the need of any separate receiver by paying anywhere between Rs
100 to Rs 350 per month depending on the place. Due to phenomenal reach of Cable TV, it poses
a serious threat to the growth of DTH industry.
Internet Protocol Television (IPTV):
IPTV is a service where television signals are digitally sent over the telecommunications line. It
is often presented as a bouquet of Video (IPTV), Audio (Telephone) and Data (Broadband
Internet) services. With widespread adoption of broadband in the country and the growing techno
savvy population, IPTV has a potential to become a huge success. IPTV takes the interactivity to
a newer level. In regular mediums, all the channels are pushed to the consumer regardless of his
preference. IPTV encourages a two-way request response model where the consumer chooses the
programs he wants to view. Right now those medium is totally unregulated and cable companies
are urging the TRAI to issue a consultation paper process to include IPTV under the aegis of
Cable TV act. IPTV is a considerable threat to DTH in urban and semi urban areas where
broadband has made its mark.
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1. Online TV:
The World Wide Web is changing lot of things, the way data & information are stored, and
shared has changed dramatically. Web 2.0 offers users to watch TV programs online. There are
already websites like:
www.indiatvonline.com
www.tvdekho.com
Apart from this website TV channels are also streaming live videos of their programs.
Online TV though is a niche industry as of now but with increased penetration of broadband
connection, it can pose significant challenge to DTH industry.
2. Bargaining power of suppliers:
DTH industry relies on three major supplies: Customer Premise Equipment (CPE) comprising of
the satellite dish, Set Top Box with the necessary Access card, the Ku band transponders in the
orbiting satellites and content. With India overtaking Japan as Asia’s largest DTH, the
bargaining power of Indian DTH operators with CPE supplies have increased.
However, the availability of transponders is increasingly becoming difficult. The Ku band
transponder is generally provided by Astrix, the commercial wing of ISRO either through its
own satellites or by leasing transponders from suppliers. With only two domestic satellite
launches between 2007 and 2010 an d increasing DTH players, Astrix is in a better position to
use DTH as its cash cow for the next 5 to 10 years. Also the crash of INSAT 4C and NSS-8 has
worsened the situation of DTH players. As there is not much of regulation particularly in terms
of channel pricing, acquiring content from the broadcasters is also difficult. DTH vendors are at
the mercy of the broadcasters.
3. Bargaining power of buyers:
With enough options to choose both from the pont of alternate mediums like Cable, IPTV and
Terrestrial broadcast and from the point of increasing DTH operators, the consumer is at his will
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to decide. Customers will continue to have a high bargaining power until DTH platforms try to
differentiate them as superior players with better content and clarity.
4. Inter firm rivalry:
With 6 operational players, the inter firm rivalry is quite high. The competition from state owned
DD-Direct to private players is negligible from the content point of view as the number of
channels offered by DD-Direct is very limited. However, DD-Direct does not charge any
monthly subscription fee which poses a threat to the private players. Between Dish TV and Tata
Sky there is an intense rivalry exhibited by price wars and discount schemes offered to new
connections. Being the first mover, Dish TV has price advantage
in both the STB as well as procuring the transponders. On the other hand, Tata Sky claims its
STB having superior DVD quality video.
Other than price wars and intense competition in increasing customer base, there is also a
competition at acquiring the content. Dish TV, Tata Sky and Sun Direct are part of big groups
that also have popular bouquet of channels like Zee, Star and Sun respectively. The channels
indirectly refuse content for DTH operators by charging exorbitantly or mandating that all the
channels of their bouquet to be transmitted when the vendor is already capacity constraint.
5. Threat of new entrants:
With already 6 players in the DTH space, threat of new entrants is relatively low. There is
already enough competition which will discourage new firms to enter this business. While
getting a license is relatively easy, the barriers to entry are high when it comes to pricing of CPE
and getting the required transponders.
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DATA ANALYSIS
FACTOR ANALYSIS:
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .740
Bartlett's Test of Sphericity Approx. Chi-Square 246.305
Df 45
Sig. .000
The result of KMO (0.740) and Bartlett’s Test of Sphericity (Chi-Square- 246.305 &
significance- 0) indicates that Factor analysis done with the 10 service related variables are
effective. There were three factors extracted using the method of Principle Component Analysis
and Rotation Method of Varimax with Kaiser Normalization, with criteria of Eigen values
greater than 1. Following table show the value of eigenvalues of various variables.
Total Variance Explained
Compo
nent
Initial Eigenvalues Rotation Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative %
1 3.514 35.140 35.140 2.232 22.322 22.322
2 1.230 12.295 47.435 1.908 19.084 41.405
3 1.166 11.663 59.098 1.769 17.693 59.098
4 .900 9.001 68.099
5 .708 7.084 75.182
6 .705 7.053 82.236
7 .613 6.133 88.369
8 .516 5.155 93.524
9 .354 3.536 97.060
10 .294 2.940 100.000
Extraction Method: Principal Component Analysis.
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SCREE PLOT:
COMPONENT MATRIX:
Rotated Component Matrixa
Component
1 2 3
PictureQuality .681
ChannelPackaging .745
ServiceDisturbtion .827
ExtraService .766
QuickService .766
OnlinePayment .572 .545
Facilities .644
CelbrityEndorsement
DirectConntact .665
ElecricityDisturbance .835
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ANALYSIS OF MEAN, SD & VARIENCE:
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
PictureQuality 100 2.00 5.00 4.3800 .70754
ChannelPackaging 100 1.00 5.00 4.0800 .88398
ServiceDisturbtion 100 1.00 5.00 3.9700 1.00960
ExtraService 100 1.00 5.00 3.8000 .95346
QuickService 100 1.00 5.00 3.7900 1.00800
OnlinePayment 100 1.00 5.00 4.0100 1.05883
Facilities 100 1.00 5.00 3.6000 1.04447
CelbrityEndorsement 100 1.00 5.00 3.2800 .89983
DirectConntact 100 1.00 5.00 3.6200 .91872
ElecricityDisturbance 100 1.00 5.00 3.0800 1.07947
Valid N (listwise) 100
It is clear from table that the mean of the most of the variables is more or less over 3, i.e.
consumers are agreeing with most of the related variables being present in a positive manner
among the service provider. Maximum customers agree to accept that these variables are the
most influencing factors to switch over from cable TV to DTH TV. Higher means of variable
picture quality indicates that according to the user’s picture quality is the main influencing
attribute towards consumer buying behavior. No disturbance & no both ways electricity
disturbance has also high mean variable these also a good influencer. Whereas extra service,
online payment & celebrity endorsement has no such type affect on buying behavior of
customers.
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Test of Hypothesis:
1) For DTH Service Providers & Network Satisfaction
Chi-Square Tests
Value Df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 14.594a 8 .068
Likelihood Ratio 11.928 8 .154
Linear-by-Linear Association 2.537 1 .111
N of Valid Cases 100
Hypothesis: There is no significant relationship between the ‘DTH Service Providers’ and
‘Network Satisfaction’
According to the output, the calculated chi-square value is 14.594 at degrees of freedom 8 and at
5% level of significance.
The table value at degrees of freedom 8 and at 5% level of significance is 15.507.
Result:
The calculated value 14.594 is less than the table value 15.507. So, we accept the hypothesis.
Hence, there is no significant relationship between the ‘DTH Service Providers’ and ‘Network
Satisfaction’.
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2) For Network Satisfaction & Channel Package
Chi-Square Tests
Value Df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 6.002a 4 .199
Likelihood Ratio 6.019 4 .198
Linear-by-Linear Association .141 1 .707
N of Valid Cases 100
a. 4 cells (44.4%) have expected count less than 5. The minimum
expected count is .15.
Hypothesis: There is no significant relationship between the ‘Network Satisfaction’ and
‘Channel Package’
According to the output, the calculated chi-square value is 6.002 at degrees of freedom 4 and at
5% level of significance.
The table value at degrees of freedom 4 and at 5% level of significance is 9.488.
Result:
The calculated value 6.002 is less than the table value 9.488. So, we accept the hypothesis.
Hence, there is no significant relationship between the ‘Network Satisfaction’ and ‘Channel
Package’.
.
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CONCLUSION:
On the basis of the data collected and the tests conducted I have arrived at the following
conclusions:
Cross tabulation between DTH service provider and overall satisfaction showed that there were
lots of dissatisfied customers of DTH services. Also cross tabulation between Customer
Satisfaction & Channel Package there exists no relation between these two factors.
There is high association between network provider and satisfaction of the services they get from
network provider. The most important factor came out is to be picture quality and no disturbance
of services.
There is also high association between switch over and various influencing factors. Extra
Service, Online Payment, Channel Package & Quick Service are more affective here.
In factor analysis, I found out 3 factors which mainly have an impact on consumer buying
behavior or influence customer to switch over from cable TV to DTH TV or buy first TV
network service.
I also found out the market position of various alternatives of DTH TV players. They are
growing now.
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Name: ______________________________
Telephone No: _______________________ Address:____________________________
______________________________________________________________________________
1) Which type of connection are you using?a) Cable TV b) DTH Connection c) IPTV
2) If DTH, then which service provider are you using?
a) DISH TV d) Videocon D2Hb) TATA SKY e) Reliance Big TVc) AIRTEL Digital TV f) Others
3) Are you satisfied with your present service provider?a) Yes b) No
4) If Yes, State the reason for your satisfaction.
a) Reasonable Price c) Affordable Tariffs e) Good Reputationb) Extra services d) Better Quality f) Low Disturbance
5) Are you planning to change your present service provider?
a) Yes b) No
6) Is DTH services are better than local cable TV services.
a) Strongly Agree b) Some What Agree c) Some What Disagree d) Disagree
7) Please rate how satisfied you are with your current DTH service.
Factors Excellent Very Good Average Not Satisfactory
Price
Channel PackagePicture Quality
Ease of PurchaseEase of PaymentQuality of Service
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Helpline
Quick Response to Complaints
8) To which age group do you belong?
a) Between 20 – 30 b) Between 30 – 40 c) Between 40 – 50 d) Above 50
9) What is your salary package per month?
a) Below 15,000 b) Between 15 to 30,000 c) Above 30,000
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