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.

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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

…………………….

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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

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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

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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

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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

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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

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Table 4.13: Pricing options of BSNL 37

Table 4.14: Recommendations to improve overall service quality 38

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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

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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

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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.

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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

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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.

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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.

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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,

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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.

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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.

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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

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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.

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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)

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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

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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

●

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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.

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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

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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


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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?


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

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Figure 4.3: Duration of use of the customers


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?


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


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?


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

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Figure 4.5: Applicability of the promotional policies of BSNL


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?



Agree 18 09 50

Neutral 06 03 50

Disagree 26 13 50


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Table 4.6: Employee behaviour of BSNL

Figure 4.6: Employee behaviour of BSNL


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?


Highly satisfied 16 08 50

Satisfied 26 13 50

Neutral 08 04 50

Dissatisfied 26 13 50

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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


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?


I think so 28 14 50

No, I do not think so 54 27 50

I have no idea 18 09 50

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Table 4.8: Applicability of tariff price of BSNL

Figure 4.8: Applicability of tariff price of BSNL


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?



Satisfied 28 14 50

Neutral 08 04 50



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Table 4.9: Customers’ perception of the brand image of BSNL

Figure 4.9: Customers’ perception of the brand image of BSNL


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?



Agree 20 10 50

Neutral 10 05 50

Disagree 28 14 50

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Table 4.10: Ease of availing the services of BSNL

Figure 4.10: Ease of availing the services of BSNL


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?



Agree 24 12 50

Neutral 06 03 50

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Disagree 28 14 50


Table 4.11: Understanding the needs of the customers

Figure 4.11: Understanding the needs of the customers


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?



Satisfied 24 12 50

35

Neutral 10 05 50



Table 4.12: Response time for customer grievances

Figure 4.12: Response time for customer grievances


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.

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21. Do you agree that BSNL offers a great range of pricing options for you to chose

from?



Agree 24 12 50

Neutral 10 05 50

Disagree 26 13 50


Table 4.13: Pricing options of BSNL

Figure 4.13: Pricing options of BSNL


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

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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?


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

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Table 4.14: Recommendations to improve overall service quality

Figure 4.14: Recommendations to improve overall service quality


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.

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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

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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

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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.

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Reference list:

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John Wiley & Sons.

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Associates.

Zeleke, M. (2015). Influence of quality service on customer satisfaction and loyalty.

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Journals:

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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”.

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pp.200-218.

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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.

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satisfaction on customer loyalty of cellular service providers in Indian market”. The ICFAI

University Journal of Marketing Management, 8(1), pp. 23-37

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service provider and voice of their customers”. Managing Service Quality, 12(2), pp.77-86.

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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

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and Loyalty Programs on Customer's Loyalty: Evidence from Banking Sector of Pakistan.

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161.

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intercorrelation account for conscious brand loyalty and nonconscious inertia”. Psychology &

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pp.1-5.

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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.

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attributes and its impact on decision making in the mobile telecommunication industry”.

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pp.222-233.

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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?

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● 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


9. How far do you agree that BSNL’s employees are friendly and approachable?

● Strongly agree

● Agree

● Neutral

● 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

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13. Are you satisfied with the brand image of BSNL in the market?


● Satisfied

● Neutral

● 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


15. How far are you satisfied with the call quality in terms of voice clarity and low call

drop problem of BSNL?


● Satisfied

● Neutral

● Dissatisfied


16. How far are you satisfied with the coverage area of BSNL?


● Satisfied

● Neutral

● Dissatisfied


17. Do you agree that BSNL makes efforts to understand the needs of the customers?

● Strongly agree

● Agree

● Neutral

● Disagree


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18. Do you agree that BSNL maintains all the records accurately?

● Strongly agree

● Agree

● Neutral

● Disagree


19. How far are you satisfied with the response time of BSNL in terms of customer

grievances?


● Satisfied

● Neutral

● Dissatisfied


20. How far do you agree that the service provided by BSNL are competitive?

● Strongly agree

● Agree

● Neutral

● Disagree


21. Do you agree that BSNL offers a great range of pricing options for you to chose

from?

● Strongly agree

● Agree

● Neutral

● Disagree


22. Do you agree that the Value Added Services provided by BSNL are updated and

competitive?

● Strongly agree

● Agree

● Neutral

● Disagree

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23. Do you agree that BSNL has followed the moral values of the customers?

● Strongly agree

● Agree

● Neutral

● Disagree


24. How far are you satisfied with the customer relation policies of BSNL?


● Satisfied

● Neutral

● 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


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


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


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

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Factors affecting customer loyalty in telecom sector in india

Education

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