CONSUMER BEHAVIOR AND ATTITUDE TOWARDS THE CELLULAR SERVICES.

(SESSION 2010-2013)

SUBMITTED TO: SUBMITTED BY: . HARJEET SINGH Miss. SEEMA BBA (CAM) . 2nd (4th Sem.) . . . 08512401910 DELHI INSTITUTE OF RURAL DEVELOPMENTNANGLI POONA DELHI-110042(AFFILIATED BY GURU GOBIND SINGH INDRAPRASHTHA UNIVERSITY)Contents

Chapter No. Page No.

Chapter 1--------------------------------------------------------------------------------------------1-5INTRODUCTION TO CONSUMER BEHAVIOR AND ATTITUDE TOWARDS THE CELLULAR SERVICES.Chapter 2------------------------------------------------------------------------------------------06-26Company ProfileChapter 3------------------------------------------------------------------------------------------27-45Research MethodologyObjectives----------------------------------------------------------------------------------------------28Main steps involved in research-----------------------------------------------------------------28-30Research Design-----------------------------------------------------------------------------------31-33Sampling Methods--------------------------------------------------------------------------------34-45Chapter 4------------------------------------------------------------------------------------------46-81Analysis and FindingsChapter 5------------------------------------------------------------------------------------------82-85Conclusions & RecommendationsChapter 6------------------------------------------------------------------------------------------86-87LimitationsChapter 7------------------------------------------------------------------------------------------88-89Bibliography

Chapter 8------------------------------------------------------------------------------------------90-99AnnexureQuestionnaire--------------------------------------------------------------------------------------91-95List of People contacted--------------------------------------------------------------------------96-99

CHAPTER-1 INTRODUCTION TO CONSUMER BEHAVIOR ANDATTITUDE TOWARDS THE CELLULAR SERVICES

INTRODUCTION TO CONSUMER BEHAVIOR ANDATTITUDE TOWARDS THE CELLULAR SERVICES

The deregulation in the INDIAN telecommunication markets since the beginning of the 1997s has brought about significant changes in the communication industry. The mobile telephone market has changed dramatically over the past 5-6 years in INDIA.

Mobiles have become so popular that many people use their handset as their only phone and rarely use a landline.

The study of consumer behaviour focuses on how individuals make decisions to spend their available resources (time, money, efforts) on consumption related items. That includes what they buy, why they buy it, when they buy it, where they buy it, howoften they buy it, and how often they use it.

There are a number of reasons for researching for consumer behavior like segmentation, target market selection, positioning, and product/service decision, pricing decision, distribution and promotion decision.

Model of consumer decision making process is helpful to understand the consumer behaviour. It shows how the external and internal factors influence the consumer attitude formation and attitude change. The model reflects cognitive (or problem solving) consumer and, to some degree emotional consumer.

An attitude is a learned predisposition to behave in a consistently favourable or unfavourable way with respect to a given object.

This study will identify the gap between consumer attitude and behaviour towards the cellular services in INDIA.

PROBLEM STATEMENT

The company has more opportunity to capture the market. The cellular service industry is more competitive then ever before.

There is a need to identify the gap between consumer behavior, attitude and company practice. The findings of this study will be important to understand the consumer attitude, habits, opinion and their beliefs towards the product, and the attitude towardsthe company marketing efforts.

The result of the study will help to make a suitable recommendation for cover the gap between consumer behavior and the company marketing efforts.

OBJECTIVES OF THE PROPOSED STUDYObjective is to study the consumer attitude & behavior towards cellular service. This project report has been formulated with specialty of behavioral analysis of consumer. By throwing light on their need for communication, effort has been put on deriving there response towards communication and its various standards. The aim of project has been to sort out basic things that consumer seeks while asking new Telecom connection and promising things of Telecom that makes them reliable consumer.

Since, I have done my internship in Delhi I have given my best in analysis and interpretation to study chronological order working pattern of Telecom industry by working with ZONAL and AREA sales manager, super-distributor, and retailer. The project title, which I have taken, is Study of Consumer behavior and attitude towards cellular services with reference to AIRCEL the objectives of study are:-

PRIMARY OBJECTIVE

To understand the consumer behavior and attitude regarding cellular market.

Identify the Potential customer in the corporate sector.SECONDARY OBJECTIVE

To identify the action of the competition in the market.

Explore and crack new accounts.

NEED AND SIGNIFICANCE OF STUDY

Understanding consumer behavior and knowing customers is never simple. Customers may say one thing but do another. They may not be in touch with their deeper motivations.

Consumers have more power then ever before.

Consumers have access more information than ever before.

There are a number of reasons for researching of consumer behaviour like segmentation, target market selection, positioning, and product/service decision, pricing decision, distribution and promotion decision.

The main significance and need of this research is to identify the consumers attitude & behaviour towards Cellular services and analysis. The findings of this study will be helpful to understand the consumer attitude and behaviour. According to the consumer attitude and their behaviour company can make marketing strategy for attracting the larger customers for future.

Scope of study

In recent year, adoption of mobile phone has been exceptionally rapid in many part of the world and especially in INDIA; mobile phones are almost as common as wrist watch. The INDIAN telecommunications market is characterized by a small number of large players and a much more sizeable number of small companies. The mobile industry has become more competitive.

It is necessary to identify the consumer attitude & behavior towards product and what do they want or needed.

The study will be focused on the consumer attitude & behavior towards cellular services. The findings of the research will be helpful to identifying the consumer attitude, behavior, habits to buy a mobile phone and company practicing. This will be vital toidentify the gap between consumer attitude and company practicing. The result of the study will be important to make a marketing strategy for the future customers to fulfill the company objective.

CHAPTER-3 COMPANY PROFILE

COMPANY PROFILE

On 29th April 2005, Maxis acquired 51% of PT Natrindo Telepon Seluler. Maxis is currently in the middle of rolling out a Java wide network to establish the company as a national operator. The initial launch phase encompasses 1,300 BTS, providing both 2G and 3G services. NTS expects to have up to 480 employees by launch date and to increase significantly upon launching. Maxis in India Maxis completed the acquisition of a 74% stake in Aircel on March 21, 2006. Currently, Aircel has operations in 9 of the 23-telecom circles of India - Chennai, Tamil Nadu, West Bengal, Orissa, Assam, North East, Jammu and Kashmir, Himachal Pradesh and Delhi. Aircel launched its services in Delhi andHimachal Pradesh in December 2006 and also recently received the licenses to operate in the remaining 14- telecom circles of India giving it the ability to become a pan-India player. Maxis expansion into Indonesia and India is another milestone in our aspiration to be the regional communications leader of choice. The acquisition of a 51% stake in PT Natrindo Telepon Seluler (NTS), Indonesia and a 74% equity interest in Aircel, India provides new growth opportunities for Maxis. These acquisitions give Maxis a strong foothold in two of the worlds most attractive high-growth, low-penetration markets. This marks the beginning of the new world of Maxis a world beyond voice, and beyond borders. MAP Maxis in Indonesia On 29th April 2005, Maxis acquired 51% of PT Natrindo Telepon Seluler. Maxis is currently in the middle of rolling out a Java wide network to establish the company as a national operator. The initial launch phase encompasses 1,300 BTS, providing both 2G and 3G services. NTS expects to have up to 480 employees by launch date and to increase significantly upon launching. Maxis in India Maxis completed the acquisition of a 74% stake in Aircel on March 21, 2006. Currently, Aircel has operations in 9 of the 23 telecom circles of India - Chennai, Tamil Nadu, West Bengal, Orissa, Assam, North East, Jammu and Kashmir, Himachal Pradesh and Delhi. Aircel launched its services in Delhi and Himachal Pradesh in December 2006 and also recently received the licenses to operate in the remaining 14 telecom circles of India giving it the ability to become a pan- India player. Aircel expects to aggressively grow its subscriber base in India and is developing a broad range of new propositions for its customers from branding, to increased network coverage, to innovative product and service offerings, to refreshing customer experience. As of 31st December 2006, Aircel serves more than 4.5 million subscribers with a network comprising of almost 4,000 BTS. Aircel continues to be the market leader in Tamil Nadu and Chennai circle. Aircels network provides 2G and GPRS services, and is EDGE capable. Aircel is also currently in the process of conducting 3G Trials across different cities in India. In addition, Aircel is the first cellular operator in India to launch wireless Internet services using WiMAX technology. It aims to immediately extend its WiMax coverage to over 20 cities to serve enterprise broadband customers. Over the next few quarters, India is expected to add new subscribers at the rate of 5 to 6 million per month. India offers huge opportunities for Aircel given the current low mobile penetrations levels as well as challenges in terms of its geographic spread and low ARPU levels. Aircel expects to aggressively grow its subscriber base in India and is developing a broad range of new propositions for its customers from branding, to increased network coverage, to innovative product and service offerings, to refreshing customer experience.

As of 31st December 2006, Aircel serves more than 4.5 million subscribers with a network comprising of almost 4,000 BTS. Aircel continues to be the market leader in Tamil Nadu and Chennai circle. Aircels network provides 2G and GPRS services, and is EDGE capable. Aircel is also currently in the process of conducting 3G Trials across different cities in India. In addition, Aircel is the first cellular operator in India to launch wireless Internet services using WiMAX technology. It aims to immediately extend its WiMax coverage to over 20 cities to serve enterprise broadband customers. Over the next few quarters, India is expected to add new subscribers at the rate of 5 to 6 million per month. India offers huge opportunities for Aircel given the current low mobile penetrations levels as well as challenges in terms ofits geographic spread and low ARPU levels Aircels current and proposed footprint is illustrated belowMISSION STATEMENT : We are conditionally committed to exceeding our customers expectations. We will provide network and services that are innovative and reliable, allowing our customers any time anywhere communications. We will attract, develop and retain an exceptional team of people. We are committed to enhancing the quality of real life in the community in which we operate. We will meet the financial expectation of our shareholders. OUR GOALS AND VALUES

CUSTOMERS : our customers are our most valued assets. We will strive to exceed their expectations at all time by providing them with superior services that embody value, innovation, quality and care.

PEOPLE : our people are our greatest resources. We will attract, train and retain the best. We will challenge them to develop their full potential in the context of our company goals.

INTEGRITY : We will maintain and strive for the highest levels of personal and professional integrity and honesty in all ours dealings. We will keep our promises.

RESPECT : We will treat with respect & dignity all people we deal with.

EXCELLENCE : We are committed to excellence in all what we do. There will be no place for mediocrity.

WORK : We will promote a work environment that embraces creativity, promotes empowerment, and encourages team work, innovation, prudent risk taking, honest and open communication and respectful iconoclasm

QUALITY : the hallmark of our internal and external outputs and processes will be quality. this will pervade every aspect of our functioning.Subscription Base Of Different Service Provider in Delhi (May- 2009)

Firms marketing effortsThe firms marketing activities are a direct attempt to reach, inform, and persuade consumers to buy and use its products/services. These activities are product related, promotion, price and channel of distribution.

ProductProduct related activities include new technology, brand name, features, design and packaging. Brand name effect is the consumers perception of the role that brand name plays in the decision making process of choosing the most preferred product/services.

According to information integration theory proposed by Bettman et al. (1975) in the context of product evaluations, consumers assign importance weights and scale values (utilities) to product attributes for which information is available at the time of decision making, and then combine these weights and values according to some rule(e.g. adding, averaging) to come up with an evaluation.

Consumer with low product knowledge might not be able to perform trade off contrasts among brands because these comparisons are likely to require some minimal level of knowledge and familiarity about brands .In contrast, consumers with high product category knowledge might have sufficient familiarity and expertise with the product category to perform inference and interpretation on brands as an enriched quality cue in implementing customization process.

In the mobile phone market product plays an important role to purchasing the particular mobile phone. This is actually due to new innovation. So consumers behaviour influenced toward mobile phone products. Services are also important part for the mobile industry. Services include price promise, Insurance, exchange offers, and other services like work mobile abroad. There is also a range of fixed line telephones and other fixed line equipment such as fax machines. The consumers can opt for payas- you-go or contract payments, as well as wide choice of 'value packs' which offer bundles of text messages, picture messaging services or airtime. The company claims that its expert sales staff can help you to select the best value package depending on how much you use the phone, and how you prefer to pay.

PricePrices efforts include promotional prices, discount, reduce the price of product/services and competitor pricing. Commodity prices in the market play a relevant role in consumer decision making; they influence what, when, where and how much consumer buy. Price promotion by a retailer for a particular brand might adversely affect the sales level of competing retailer ifconsumer actively switch store to take advantage of the deal. Consumer who perceive prices more accurately are the ones who place a higher degree of importance on them its investigate two potential subscribers decision, using the graphic device of a price/acceptance and a charge/acceptance function towards mobile.

The study identified that most customers, who are willing to swap providers, will make their decision on price first. Consumer knowledge of price plays an important role in pricing management since it not only determines how prices are perceived and valued but also influenced consumers purchase decision. Price is important factor which influence the customer attitude towards mobile phone. At the point in time of purchase the customer faces, first of all, initial financial, the purchase price for the set and the fixed charges for the connection to the network.

Another aspect at the time of purchase is the consideration of the use charges, such as the price per call minute.There are very competitive price in the market. Most of the mobile phone companies are offering different network.PromotionAdvertisement, sales promotion, public relations and direct marketing are the promotional tools.

Sales promotion consists of a wide variety of short term tactical promotional tools aimed at generating a desired response from customers. Sales promotion includes tools for consumerpromotion (sample, coupons, cash refund, offers, prices off, premium, prizes, patronage rewards free trials, warranty, tie in promotions, cross promotions, point of purchase displays and demonstration); trade promotion ( price off, advertising and display allowance, and free goods).

Public relation involves a variety of programs designed to promote a companys image or its individual product. The main tools of PR are publications, events, news, speeches, publicservices activities, and identity media.

Direct marketing is an interactive marketing system that uses one or more media to affect a measurable response or transaction at any location. Electronic marketing is a part of direct marketing. Its media include television, press and radio advertisements.

Telecom Operator wise Market Share [May 2012]

While Bharti is way ahead with close 20% market share in India, Reliance (16.58%) and Vodafone (16.41) are having a close battle. Reliance currently has 154 million subscribers as compared to 152.5 million of Vodafone. Uninor, who is one of the late entrants in Indian Telecom market now has over 45 million subscribers and accounts for close to 5 percent of Indian mobile market share.

India Mobile Subscriber base reaches 929.4 MlnAlthough, the growth in mobile subscriber base has slowed down considerably over past few months, May 2012 saw a healthy growth after dismal April figures. According to the TRAI report for May 2012, India added 8.35 million new subscribers taking the overall mobile subscriber base in India to 929.37 million. Here is a look at monthly subscriber additions since March 2011.

Indian Telecom Subscription Highlights Data May 2012- 8.35 mln new subscribers added taking total tally to 929.37 mln- Rural India (5.81 mln) added more than double the subscribers as compared to Urban India (2.53 mln). Rural monthly growth rate was 1.78% as compared to 0.43% of Urban India.- Urban Teledensity stands at 162.57 as compared to rural density of 39.35- Rural mobile subscriber share was 64.24%- 4.27 million new Mobile portability requests were made in month of May taking the total tally of MNP requests since launch to 50.16 mln- Out of total 929.37 million, 68.33 mln were active mobile subscribers in month of May.- 3.6 lakh new Broadband subscribers were added in month of May taking total tally to 1.43 crore.- Delhi (239.91) has 4 times the teledensity as compared to the National average (79.28). Lowest teledensity was registered in Assam (47.7)- India has a total telecom subscriber base (wireless+wireline) of 960.90 mln.Operator wise Mobile Subscriber additions [May 12]

Bharti Airtel added 2 million new subscribers to its kitty accounting for 24% of all the new additions in May. Their total base now stands at 185 million. Idea added 17.6 million taking their tally to 116 million by end of May. After dismal last few months, where Tata was continuously loosing subscribers, they managed to add 307k subscriber. Tatas total subscriber base now stands at 81.5 million. The 2 PSU operators BSNL and MTNL were the only operators who witnessed a negative growth in May 2012.

Top 10 mobile Countries:

CELLULAR NEWS:

Aircel signs tower sharing dear with BSNL:Aircel has always emphasized upon building its brand satisfactory and reliable among customer. Therefore, India's Aircel has announced a 10-year passive infrastructure sharing agreement with state owned operator, Bharat Sanchar Nigam Ltd (BSNL). Aircel, which already has around 32,000 base stations, says that it will now have access to approximately 45,000 BSNL towers across all its licensed circles. The financial terms of the agreement were not disclosed."Aircel will now have access to strategically located sites across BSNL's 21 circles (excluding Mumbai and Delhi). Leveraging BSNL's passive infrastructure will help Aircel meet its aggressive network roll out plans in addition to reducing operational cost," Aircel Chief Operating Officer Gurdeep Singh said in a statement.

Kuldeep Goyal, CMD, BSNL added, "We are happy to partner with Aircel. BSNL has a strong nationwide coverage and offers the best value proposition in the Indian telecom market. Our objective is to provide quality and reliable service and thereby increase our partner's confidence".

MOBILE WORLD

Aircel expanding its market base:Figures from the Mobile World analysts report that Aircel had just under 22 million active subscribers at the end of June.

Aircel is a joint venture between Malaysia's Maxis Communications (74%) and India's Apollo Hospital Enterprise (26%).

INDIA INFOLINE

Aircel Leader of tomorrow:Aircel, the market leader in Chennai, Tamil Nadu, North East and Assam Telecom Circles, with more than 4.2mn customers. Aircel has announced the launch of its GSM services in Delhi. This is the ninth circle across India in which Aircel will be providing their mobile services and the seventh in North & East India.

This raises the competition for the existing companies. Aircel has decided to launch about 10,000 retail outlets all over Delhi to provide better service to its customers. Now, whether this succeeds or not in its aim, will be said only by time.

"Aircel has obtained 14 new licenses to roll out its GSM cellular services besides getting the license to provide International Long Distance (ILD) and National Long Distance (NLD) telephony services" said Jagdish Kini, Group Chief Executive Officer, Aircel.He further added, "With these new licenses, Aircel is poised to transform itself into a pan-India operator". Commenting on Delhi launch Kini said, "Delhi Telecom Circle with 5 % penetration it offers Aircel an excellent opportunity to launch its growth plans in India."

MOBILE INDUSTRY IN INDIAHistory of Indian TelecommunicationsStarted in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power). Telephone services were introduced in India in 1881. In 1883 telephoneservices were merged with the postal system. Indian Radio Telegraph Company (IRT) was formed in 1923. After independence in 1947, all the foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications. Telecom sector was considered as a strategic service and the government considered it best to bring under state's control.

The first wind of reforms in telecommunications sector began to flow in 1980s when the private sector was allowed in telecommunications equipment manufacturing. In 1985, Department of Telecommunications (DOT) was established. It was an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system). In 1986, two wholly government-owned companies were created: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas.

In 1990s, telecommunications sector benefited from the general opening up of the economy. Also, examples of telecom revolution in many other countries, which resulted in better quality ofservice and lower tariffs, led Indian policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector. National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive roadmap for the Indian telecommunications sector. In 1997, Telecom Regulatory Authority of India (TRAI) was created. TRAI was formed to act as a regulator to facilitate the growth of the telecom sector. New National Telecom Policy was adopted in 1999 and cellular services were also launched in the same year.

Telecommunication sector in India can be divided into two segments: Fixed Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domesticlong distance and international long distance services. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services. Private sector services are presently available in selective urban areas, and collectively account for less than 5 per cent of subscriptions. However, private services focus on the business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user group and videoconferencing.

Cellular services can be further divided into two categories: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector is dominated by Airtel, Vodfone-Hutch, Idea Cellular and Aircel, while the CDMA sector is dominated by Reliance and Tata Indicom. Opening up of international and domestic long distance telephony services are the major growth drivers for cellular industry. Cellular operatorsget substantial revenue from these services, and compensate them for reduction in tariffs on airtime, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand.

Issues and Challenges of telecom industryThere are various issues surrounding the telecom Industry which pose challenges for the Industry. These issues arise out of various policy announcements by the regulator which has resulted in increased competition between the players? If we take a closer look at the issues and challenges , a majority of them revolve around the most important resource in the telecom Industry- SPECTRUM. Spectrum is a range of electromagnetic radio frequencies used for transmission of voice, data and images.

Telecom operators send and receive frequencies to enable communication between two phones. Enhancement of subscriber criteria for allocation of additional 2G spectrum the controversy began when TRAI and DOTs technical advisory board rose the bar on the minimum subscriber norms for operators to qualify for additional spectrum. The new subscriber norms were aroundthree times higher than the existing ones. This move was challenged by GSM operators in the telecom tribunal. DoT then referred the matter to its technical arm, Telecom Engineering Centre (TEC), which in its report recommended that the allocation norms should be hiked between 2-15 times depending on the circle. The Cellular Operators Association Of India, the bodyrepresenting all GSM players, said that it would fle yet another petition with the telecom tribunal challenging the TEC report. Access licence made technology neutral the Govt also permittedexisting universal access service licencees to offer wireless services using either GSM or CDMA technology. This decision paved way for existing CDMA operators to provide GSM-basedservices and vice-versa, subject to the availability of spectrum and payment of the prescribed fees. 3G spectrum auction to be open to all in another move, the government announced that 3Gspectrum would be auctioned, which would be open to all. This means that both existing operators and new entrants, whether owned by domestic entrepreneurs or foreign companies such as AT&T and Deutsche Telekom, who currently do not have presence in India, would be eligible to bid for 3G spectrum. This view is in contradiction with the Bharti Airtel Ltd and others we expect the mobile subscriber base for the industry to reach 366 mn by 2012 from 166 mn as on 2007 Telecom Regulatory Authority of Indias (TRAI) recommendation of allocating 3G spectrum only to existing service licencees. Mobile Number Portability (MNP) from last quarter of 2008 furthermore, to reduce entry barriers and increase competition, the Govt. has decided to implement Mobile Number Portability (MNP) in a phased manner. MNP would give subscribers the freedom to change their existing wireless operator while retaining the same number. To begin with, MNP would be implemented in the four metros of Mumbai, Chennai, Delhi, and Kolkatta during the last quarter of 2008.

Threat from satellite telephony:A satellite telephone is a mobile phone that communicates directly with orbiting communications satellites. Depending on the architecture of a particular system, coverage may include the entire Earth, or only specifc regions. These satellite phones provide worldwide connectivity on a single number. The largest users of satellite phones in India as well as worldwide, till date, are the government and defense forces. However these phones can be used only after the No Objection Certifcate (NOC) is issued by DOT. If cost of these handsets reduces, then they may pose a threat.

Classification of Telecommunication services: Basic services Cellular services Internet Service Provider (ISP)

The telecom commission was set up by the government of INDIA& notification dated 11 Apirl 1989 with admistrative & financial power of government deal with various aspect of telecommunication. The entry of private sector in the provision of telecom service a need was full to have an independent regulatory body the above requirement was indicated in the guideline issue for entry of private sector in basic telecom service. In 1997 telecom regulation act India was established in pursuance which was act of parliaments to regulate the service or it amended by act 2000. Mobiles have become so popular that many people use their handset as their only phone and rarely use a landline. The de regulation in the INDIA telecommunication markets since the beginning of the 1997s has brought about significant changes in the communication industry. Price competition and newly created services the telecommunication industry has become the largest industry. In recent year, adoption of mobile phone has been exceptionally rapid in many part of the world and especially in INDIA; mobile phones are Almost as common as wrist watch

MAJOR COMPETITORAIRTEL Bharti Airtel formerly known as Bharti Tele-Ventures Limited (BTVL) is among India's largest mobile phone and Fixed Network operators. With more than 60 million subscriptions as of 13th February 2008. It offers its mobile services under the Airtel brand and is headed by Sunil Mittal. The company also provides telephone services and Internet access over DSL in 14 circles.

The company complements its mobile, broadband & telephone services with national and international long distance services. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The company provides reliable end-toend data and enterprise services to the corporate customers by leveraging its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station.

Airtel is the largest cellular service provider in India in terms of number of subscribers. Bharti Airtel owns the Airtel brand and provides the following services under the brand name Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services (Fixed line, Internet Connectivity (DSL) and Leased Line), Long Distance Services and Enterprise Services (Telecommunications Consulting for corporates). Leading international telecommunication companies such as Vodafone and SingTel held partial stakes in Bharti Airtel.

IDEA Idea Cellular is a part of Aditya Birla Nuvo, a flagship company of the Aditya Birla Group. It is a wireless telephony company operating in various states in India. It initially started in 1995 as a joint venture among the Tatas, Aditya Birla Group and AT&T by merging "'Wings Cellular'" operating in Madhya Pradesh, UP West, Rajasthan and Tata Cellular as well as Birla AT&T Communications.Idea is a leading cellular operator, with a subscriber base of over seven million across the country in its eight circle operation. It controls a portfolio of India's most attractive and mainly contiguous properties including the 11 states of Maharashtra (excluding Mumbai), Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttar Pradesh (West), Uttaranchal, Haryana, Kerala and Delhi (inclusive of NCR).

Having operations in four of the five largest cellular circles in India, Idea is the market leader in the Maharashtra and Goa; Uttar Pradesh (West) and Madhya Pradesh and Chattisgarh circles in terms of number of subscribers. Idea's Delhi circle is also thefastest-growing fourth operator in the country, which is an achievement in itself and showcases customer confidence of a high degree. Idea's footprint currently covers approximately 45 per cent of India's population and over 50 per cent of the potential telecom market. Idea covers over 1000 towns along with a total highway connectivity of over 10,000 kilometres. Today, there are over 350 direct customer service outlets and a well-entrenched network of over 48,000 retailers and dealers across the country. Each circle with its own dedicated call centre and a single call resolution approach towards the customer is a unique effort provided by any operator.

Customer service and innovation are the drivers of this cellular brand. Idea was the first company in the country to launch GPRS in November 2002. It showcased EDGE (Enhanced Data Rates for GSM Evolution) in Delhi, in July 2004. With EDGE (a 3G technology), subscribers can enjoy live television with a data download rate of over 160 kbps. GPRS is available on all its networks, for both pre-paid and post-paid customers. Idea subscribers also have a richer experience while watching movie previews, multimedia messages with video attachments, webinfotainment, high-speed video downloads, java game downloads and other Internet-based multi-media experiences on their EDGEenabled mobile phones.

BSNL (Bharat Sanchar Nigam Ltd)Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wireline, 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 areas of Siachen glacier and Northeastern 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, CellOne, 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 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 Data Onebroadband 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.

VODAFONEVodafone Essar is the Indian subsidiary of Vodafone Group and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. The company now has operations across the country with over 74.08 million customers**. Over the years, Vodafone Essar, under the Hutch brand, has been named the Most Respected Telecom Company, the Best Mobile Service in the country and the Most Creative and Most Effective Advertiser of the Year. Vodafone Group is the worlds leading international mobile communications corporation. It currently has equity interests in 27 countries across 5 continents and 40 partner networks with over 303 million proportionate customers worldwide. The Essar Group is Vodafones principal partner in India. The Essar Group is a diversified business corporation with a balanced portfolio of assets in the manufacturing and services sectors of Steel, Energy, Power, Communications, Shipping Ports & Logistics, and Projects. Essar employs more than 50,000 people across offices in Asia, Africa, Europe and the Americas.

RELIANCEThe Late Dhirubhai Ambani dreamt of a digital India an India mwhere the common man would have access to affordable means of information and communication. Dhirubhai, who singlehandedly built Indias largest private sector company virtually from scratch, had stated as early as 1999: Make the tools of information and communication available to people at an affordable cost. They will overcome the handicaps of illiteracy and lack of mobility.

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

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

CHAPTER-3 RESEARCH METHODOLOGY

Research Methodology

We will be conducting a PRIMARY research for our study. For which we will be designing Questionnaires directed towards customers, which will give us the opinion of the customers thus market potential of the product. Next step would be to analyze the data thus acquired.

Objective

Objective is to study the consumer attitude & behavior towards cellular service. This project report has been formulated with specialty of behavioral analysis of consumer. By throwing light on their need for communication, effort has been put on deriving there response towards communication and its various standards. The aim of project has been to sort out basic things that consumer seeks while asking new Telecom connection and promising things of Telecom that makes them reliable consumer.

Main Steps Involved Research

Defining the Problem to be tackled and identifying the market research problem involved in the task.1) Define the problem and its objectives.2) Identify the problem.3) Determine the information needed.4) Determine the sources of information.5) Decide research methods.6) Tabulate, Analyze and interpret the data.7) Prepare research report.8) Follow-up the study.

1) Define the problem and its objectives: -This includes an effective job in planning and designing a research project that will provide the needed information. It also includes the establishment of a general framework of major marketing elements such as the industry elements, competitive elements, marketing elements and company elements.2) Identify the problem: -Identifying the problem involves getting acquainted with the company, its business its products and market environment, advertising by means of library consultation and extensive interviewing of companys officials.

3) Determining the specific Information needed :-In general the producer, the manufacturer, the whole seller and the retailer try to find out four things namely :-(1) What to sell(2) When to sell(3) Where to sell(4) How to sell

4) Determine the sources of information:-(a) Primary Data: -Primary data are those which are gathered specially for the project at hand, directly e.g. through questionnaires &interviews. Primary data sources include company salesman, middleman, consumers, buyers, trade associations executives & other businessman & even competitors.(b) Secondary Data: -These are generally published sources, which have been collected originally for some other purpose. Source are internal company records, government publication, reports & publication, reports &journals, trade, professional and business associations publications & reports.

4) Decide Research methods for collecting data:-If it is found that the secondary data cannot be of much use collection of primary data become necessary. Three widely used methods of gathering primary data areA) SurveyB) ObservationC) ExperimentationA) Survey Method:-In this method, information gathered directly from individual respondents, either through personal interviews or through mail questionnaires or telephone interviews.B) Observation Method:-The research data are gathered through observing and recording their actions in a marketing situation. This technique is highly accurate. It is rather an expensive technique.C) Experimental Method:-This method involves carrying out a small scale trial solution to a problem, while at the same time, attempting to control all factors relevant to the problem. The main assumption here is that the test conditions are essentially the same as those that will be encountered later when conclusions derived from the experiment are applied to a broader marketing area.D) The Panel Research:-In this technique the same group of respondents is contacted for more then one occasion; and the information obtained to find out if there has been any in their taste demand or they want any special quality, color, size, packing in the product.a) Preparation of questionnaireb) Presetting of questionnairec) Planning of the sample

5) Tabulate, Analysis and Interpret the Data:-The report must give/contain the following information:-a) The title of researchb) The name of the organization for which it has been Conductedc) The objectives of researchd) The methodology usede) Organization and the planning of the reportf) A table of contents along with charts and diagrams used in the reportsg) The main report containing the findingsh) Conclusion arrived at end recommendations suggestedi) Appendices (containing questionnaire / forms used sample design, instructions.)

6) Follow-up the study:-The researchers, in the last stage, should follow up this study to find if his recommendation are being implemented and if not, why

RESEARCH DESIGN

RESEARCH PROBLEM The company has more opportunity to capture the market. The cellular service industry is more competitive then ever before.

There is a need to identify the gap between consumer behavior, attitude and company practice. The findings of this study will be important to understand the consumer attitude, habits, opinion and their beliefs towards the product, and the attitude towards the company marketing efforts.

The result of the study will help to make a suitable recommendation for cover the gap between consumer behavior and the company marketing efforts.Choice of research design alternatives & choiceDespite the difficulty of establishing an entirely satisfactory classification system, it is helpful to classify marketing research on the basis of the fundamental objectives of the research. Consideration of the different types, their applicability, their strengths, and their weakness will help the student to select the type best suited to a specific problem. The two general types of research are:

EXPLORATORY RESEARCHExploratory research seeks to discover new relationship, emphasis on discovery of ideas.Marketing researches devote a significant portion of their work on exploratory studies when very little is known about the problem being examined.

a) CONCLUSIVE RESEARCHConclusive studies attempts to determine the frequency with which something occurs or the relationship between two phenomenon. Usually conclusive studies assume certain under underlying characteristics of the market or have some precise statement of research questions/hypothesis.

RESEARCH INSTRUMENT USED - DETAILS & WHY?

If one wants to know what type of dentifrice people use, what they think of, television commercials, or why they buy particular brands of cars, the natural procedure is to ask them. Thus, the questionnaire method has come to be the more widely used of the two data collection method. Many consumers are now familiar with the telephone caller who greets them with We are making a survey, and then proceeds to ask a series of questions. Some interviews are conducted in person, others by telephone, and others by mail. Each of these has its special advantages and disadvantages and limitations. The questionnaire method in general, however, has a number of pervasive advantages and disadvantages. Discussion of particular variations will be more meaningful if these characteristics of the general methods are brought out first. A questionnaire consists of list of questions to be asked from the respondents and the space provided to record the answer / responses. Questionnaire can be used for the personal interviews,Focus groups, mails and telephonic interviews. The choice among these alternatives is largely determined by the type of information to be obtained and by the type of respondents from whom it is to be obtained.The common factor in all varieties of the questionnaire method is this reliance on verbal responses to question, written or oral.

Questionnaire in the project consists of:a) Multiple choice questionsb) Open ended questions:c) Dicthomus

MULTIPLE CHOICE QUESTIONS:Questions of this type offer the respondents an alternative to choose the right answer among others. It is faster, time saving and less biased. It also simplifies the tabulating process.

OPEN END QUESTIONS:In this type respondents are free to answer in their own words and express the ideas they think are relevant, such questions are good as first questions or opening questions. They introduce the subject and obtain general reaction.

DICTHOMUS:These are the questions which are Boolean in nature. These answers are straightforward and respondents have to answer them in a straight way. That means the answer can only be either Yes or No.

SAMPLING TECHNIQUE USED & SAMPLE SIZE - WHY?

Sample design is a definite plan of obtaining some items from the whole population. The sample design used in this project is two state sampling i.e. Cluster and convenience. In the probability sampling methods, each items in the sample is chosen one at a time from a complete list of universe elements. In marketing research practice, it will sometimes be more expedient to select clusters or groups of universe elements, rather than to choose sample items individually. Sampling methods in which universe elements are chosen in groups ---- rather than individually -- are called cluster-sampling methods. They are widely used in the sampling of human populations. When no complete universe listing exists, a type of sampling is called area sampling may be the only practically feasible form of probability sampling.

a) NONDISGUISED, STRUCTURED TECHNIQUESThe non structured techniques for attitude measurement are primarily of value in exploratory studies, where the researcher is looking for the salient attributes of given products and the important factors surrounding purchase decisions as seen by the consumer. Structured techniques can provide a more objective measurement system, one which is more comparable to a scale or a yardstick. The term scaling has been applied to the efforts to measure attitudes objectively, and a number of useful scales have been developed.

Sampling Methods

CENSUS AND SAMPLE SURVEYAll items in any field of inquiry constitute a Universe or Population. A complete enumeration of all items in the population is known as a census inquiry. It can be presumed that in such an inquiry, when all items are covered, no element of chance is left and highest accuracy is obtained. But in practice this may not be true. Even the slightest element of bias in such an inquiry will get larger and larger as the number of observation increases. Moreover, there is no way of checking the element of bias or its extent except through a resurvey or use of sample checks. Besides, this type of inquiry involves a great deal of time, money and energy. Therefore, when the field of inquiry is large, this method becomes difficult to adopt because of the resources involved. At times, this method is practically beyond the reach of ordinary researchers. Perhaps, government is the only institution which can get the complete enumeration carried out. Even the government adopts this in very rare cases such as population census conducted once in a decade. Further, many a time it is not possible to examine every item in the population, and sometimes it is possible to obtain sufficiently accurate results by studying only a part of total population. In such cases there is no utility of census surveys. However, it needs to be emphasised that when the universe is a small one, it is no use resorting to a sample survey. When field studies are undertaken in practical life, considerations of time and cost almost invariably lead to a selection of respondents i.e., selection of only a few items. The respondents selected should be as representative of the total population as possible in order to produce a miniature cross-section. The selected respondents constitute what is technically called a sample and the selection process is called sampling technique. The survey so conducted is known as sample survey. Algebraically, let the population size be N and if a part of size n (which is < N) of this population is selected according to some rule for studying some characteristic of the population, the group consisting of these n units is known as sample. Researcher must prepare a sample design for his study i.e., he must plan how a sample should be selected and of what size such a sample would be.

IMPLICATIONS OF A SAMPLE DESIGNA sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample. Sample design may as well lay down the number of items to be included in the sample i.e., the size of the sample. Sample design is determined before data are collected. There are many sample designs from which a researcher can choose. Some designs are relatively more precise and easier to apply than others. Researcher must select/prepare a sample design which should be reliable and appropriate for his research study.

STEPS IN SAMPLE DESIGNWhile developing a sampling design, the researcher must pay attention to the following points:(i) Type of universe: The first step in developing any sample design is to clearly define the set of objects, technically called the Universe, to be studied. The universe can be finite or infinite. In finite universe the number of items is certain, but in case of an infinite universe the number of items is infinite, i.e., we cannot have any idea about the total number of items. The population of a city, the number of workers in a factory and the like are examples of finite universes, whereas the number of stars in the sky, listeners of a specific radio programme, throwing of a dice etc. are examples of infinite universes.

(ii) Sampling unit: A decision has to be taken concerning a sampling unit before selecting sample. Sampling unit may be a geographical one such as state, district, village, etc., or a construction unit such as house, flat, etc., or it may be a social unit such as family, club, school, etc., or it may be an individual. The researcher will have to decide one or more of such units that he has to select for his study.

(iii) Source list: It is also known as sampling frame from which sample is to be drawn. It contains the names of all items of a auniverse (in case of finite universe only). If source list is not available, researcher has to prepare it. Such a list should be comprehensive, correct, reliable and appropriate. It is extremely important for the source list to be as representative of the population as possible.

(iv) Size of sample: This refers to the number of items to be selected from the universe to constitute a sample. This a major problem before a researcher. The size of sample should neither be excessively large, nor too small. It should be optimum. An optimum sample is one which fulfills the requirements of efficiency, representativeness, reliability and flexibility. While deciding the size of sample, researcher must determine the desired precision as also an acceptable confidence level for the estimate. The size of population variance needs to be considered as in case of larger variance usually a bigger sample is needed. The size of population must be kept in view for this also limits the sample size. The parameters of interest in a research study must be kept in view, while deciding the size of the sample. Costs too dictate the size of sample that we can draw. As such, budgetary constraint must invariably be taken into consideration when we decide the sample size.

(v) Parameters of interest: In determining the sample design, one must consider the question of the specific population parameters which are of interest. For instance, we may be interested in estimating the proportion of persons with some characteristic in the population, or we may be interested in knowing some average or the other measure concerning the population. There may also be important sub-groups in the population about whom we would like to make estimates. All this has a strong impact upon the sample design we would accept.(vi) Budgetary constraint: Cost considerations, from practical point of view, have a major impact upon decisions relating to not only the size of the sample but also to the type of sample. This fact can even lead to the use of a non-probability sample.

(vii) Sampling procedure: Finally, the researcher must decide the type of sample he will use i.e., he must decide about the technique to be used in selecting the items for the sample. In fact, this technique or procedure stands for the sample design itself. There are several sample designs (explained in the pages that follow) out of which the researcher must choose one for his study. Obviously, he must select that design which, for a given sample size and for a given cost, has a smaller sampling error.

CRITERIA OF SELECTING A SAMPLING PROCEDUREIn this context one must remember that two costs are involved in a sampling analysis viz., the cost of collecting the data and the cost of an incorrect inference resulting from the data. Researcher must keep in view the two causes of incorrect inferences viz., systematic bias and sampling error. A systematic bias results from errors in the sampling procedures, and it cannot be reduced or eliminated by increasing the sample size. At best the causes responsible for these errors can be detected and corrected. Usually a systematic bias is the result of one or more of the following factors:

1. Inappropriate sampling frame: If the sampling frame is inappropriate i.e., a biased representation of the universe, it will result in a systematic bias.

2. Defective measuring device: If the measuring device is constantly in error, it will result insystematic bias. In survey work, systematic bias can result if the questionnaire or the interviewer is biased. Similarly, if the physical measuring device is defective there will be systematic bias in the data collected through such a measuring device.

3. Non-respondents: If we are unable to sample all the individuals initially included in the sample, there may arise a systematic bias. The reason is that in such a situation the likelihood of establishing contact or receiving a response from an individual is often correlated with the measure of what is to be estimated.

4. Indeterminancy principle: Sometimes we find that individuals act differently when kept under observation than what they do when kept in non-observed situations. For instance, if workers are aware that somebody is observing them in course of a work study on the basis of which the average length of time to complete a task will be determined and accordingly the quota will be set for piece work, they generally tend to work slowly in comparison to the speed with which they work if kept unobserved. Thus, the indeterminancy principle may also be a cause of a systematic bias.

5. Natural bias in the reporting of data: Natural bias of respondents in the reporting of data is often the cause of a systematic bias in many inquiries. There is usually a downward bias in the income data collected by government taxation department, whereas we find an upward bias in the income data collected by some social organisation. People in general understate their incomes if asked about it for tax purposes, but they overstate the same if asked for social status or their affluence. Generally in psychological surveys, people tend to give what they think is the correct answer rather than revealing their true feelings.Sampling errors are the random variations in the sample estimates around the true population parameters. Since they occur randomly and are equally likely to be in either direction, their nature happens to be of compensatory type and the expected value of such errors happens to be equal to zero. Sampling error decreases with the increase in the size of the sample, and it happens to be of a smaller magnitude in case of homogeneous population. Sampling error can be measured for a given sample design and size. The measurement of sampling error is usually called the precision of the sampling plan. If we increase the sample size, the precision can be improved. But increasing the size of the sample has its own limitations viz., a large sized sample increases the cost of collecting data and also enhances the systematic bias. Thus the effective way to increase precision is usually to select a better sampling design which has a smaller sampling error for a given sample size at a given cost. In practice, however, people prefer a less precise design because it is easier to adopt the same and also because of the fact that systematic bias can be controlled in a better way in such a design. In brief, while selecting a sampling procedure, researcher must ensure that the procedure causes a relatively small sampling error and helps to control the systematic bias in a better way.

CHARACTERISTICS OF A GOOD SAMPLE DESIGNFrom what has been stated above, we can list down the characteristics of a good sample design as under:(a) Sample design must result in a truly representative sample.(b) Sample design must be such which results in a small sampling error.(c) Sample design must be viable in the context of funds available for the research study.(d) Sample design must be such so that systematic bias can be controlled in a better way.(e) Sample should be such that the results of the sample study can be applied, in general, for the universe with a reasonable level of confidence.

DIFFERENT TYPES OF SAMPLE DESIGNSThere are different types of sample designs based on two factors viz., the representation basis and the element selection technique. On the representation basis, the sample may be probability sampling or it may be non-probability sampling. Probability sampling is based on the concept of random selection, whereas non-probability sampling is non-random sampling. On element selection basis, the sample may be either unrestricted or restricted. When each sample element is drawn individually from the population at large, then the sample so drawn is known as unrestricted sample, whereas all other forms of sampling are covered under the term restricted sampling. The following chart exhibits the sample designs as explained above. Thus, sample designs are basically of two types viz., non-probability sampling and probability sampling. We take up these two designs separately.

Non-probability sampling: Non-probability sampling is that sampling procedure which does not afford any basis for estimating the probability that each item in the population has of being included in the sample. Non-probability sampling is also known by different names such as deliberate sampling, purposive sampling and judgement sampling. 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 non-probability sampling the organisers of the inquiry purposively choose the particular units 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. For instance, if economic conditions of people living in a state are to be studied, a few towns and villages may be purposively selected for intensive study on the principle that they can be representative of the entire state. Thus, the judgement of the organisers of the study plays an important part in this sampling design. In such a design, personal element has a great chance of entering into the selection of the sample. The investigator may select a sample which shall yield results favourable to his point of view and if that happens, the entire inquiry may get vitiated. Thus, there is always the danger of bias entering into this type of sampling technique. But in the investigators are impartial, work without bias and have the necessary experience so as to take sound judgement, the results obtained from an analysis of deliberately selected sample may be tolerably reliable. However, in such a sampling, there is no assurance that every element has some specifiable chance of being included. Sampling error in this type of sampling cannot be estimated and the element of bias, great or small, is always there. As such this sampling design in rarely adopted in large inquires of importance. However, in small inquiries and researches by individuals, this design may be adopted because of the relative advantage of time and money inherent in this method of sampling. Quota sampling is also an example of non-probability sampling. Under quota sampling the interviewers are simply given quotas to be filled from the different strata, with some restrictions on how they are to be filled. In other words, the actual selection of the items for the sample is left to the interviewers discretion. This type of sampling is very convenient and is relatively inexpensive. But the samples so selected certainly do not possess the characteristic of random samples. Quota samples are essentially judgement samples and inferences drawn on their basis are not amenable to statistical treatment in a formal way.

Probability sampling: Probability sampling is also known as random sampling or chance sampling. Under this sampling design, every item of the universe has an equal chance of inclusion in the sample. It is, so to say, a lottery method in which individual units are picked up from the whole group not deliberately but by some mechanical process. Here it is blind chance alone that determines whether one item or the other is selected. The results obtained from probability or random sampling can be assured in terms of probability i.e., we can measure the errors of estimation or the significance of results obtained from a random sample, and this fact brings out the superiority of random sampling design over the deliberate sampling design. Random sampling ensures the law of Statistical Regularity which states that if on an average the sample chosen is a random one, the sample will have the same composition and characteristics as the universe. This is the reason why random sampling is considered as the best technique of selecting a representative sample. Random sampling from a finite population refers to that method of sample selection which gives each possible sample combination an equal probability of being picked up and each item in the entire population to have an equal chance of being included in the sample. This applies to sampling without replacement i.e., once an item is selected for the sample, it cannot appear in the sample again (Sampling with replacement is used less frequently in which procedure the element selected for the sample is returned to the population before the next element is selected. In such a situation the same element could appear twice in the same sample before the second element is chosen).

COMPLEX RANDOM SAMPLING DESIGNSProbability sampling under restricted sampling techniques, as stated above, may result in complexrandom sampling designs. Such designs may as well be called mixed sampling designs for many of such designs may represent a combination of probability and non-probability sampling procedures in selecting a sample. Some of the popular complex random sampling designs are as follows:

(i) Systematic sampling: In some instances, the most practical way of sampling is to select every ith item on a list. Sampling of this type is known as systematic sampling. An element of randomness is introduced into this kind of sampling by using random numbers to pick up the unit with which to start. For instance, if a 4 per cent sample is desired, the first item would be selected randomly from the first twenty-five and thereafter every 25th item would automatically be included in the sample. Thus, in systematic sampling only the first unit is selected randomly and the remaining units of the sample are selected at fixed intervals. Although a systematic sample is not a random sample in the strict sense of the term, but it is often considered reasonable to treat systematic sample as if it were a random sample. Systematic sampling has certain plus points. It can be taken as an improvement over a simple random sample in as much as the systematic sample is spread more evenly over the entire population. It is an easier and less costlier method of sampling and can be conveniently used even in case of large populations. But there are certain dangers too in using this type of sampling. If there is a hidden periodicity in the population, systematic sampling will prove to be an inefficient method of sampling. For instance, every 25th item produced by a certain production process is defective. If we are to select a 4% sample of the items of this process in a systematic manner, we would either get all defective items or all good items in our sample depending upon the random starting position. If all elements of the universe are ordered in a manner representative of the total population, i.e., the population list is in random order, systematic sampling is considered equivalent to random sampling. But if this is not so, then the results of such sampling may, at times, not be very reliable. In practice, systematic sampling is used when lists of population are available and they are of considerable length.

(ii) Stratified sampling: If a population from which a sample is to be drawn does not constitute a homogeneous group, stratified sampling technique is generally applied in order to obtain a representative sample. Under stratified sampling the population is divided into several sub-populations that are individually more homogeneous than the total population (the different sub populations are called strata) and then we select items from each stratum to constitute a sample. Since each stratum is more homogeneous than the total population, we are able to get more precise estimates for each stratum and by estimating more accurately each of the componentparts, we get a better estimate of the whole. In brief, stratified sampling results in more reliable and detailed information. The following three questions are highly relevant in the context of stratified sampling:(a) How to form strata?(b) How should items be selected from each stratum?(c) How many items be selected from each stratum or how to allocate the sample size of each stratum? Regarding the first question, we can say that the strata be formed on the basis of common characteristic(s) of the items to be put in each stratum. This means that various strata be formed in such a way as to ensure elements being most homogeneous within each stratum and most heterogeneous between the different strata. Thus, strata are purposively formed and are usually based on past experience and personal judgement of the researcher. One should always remember that careful consideration of the relationship between the characteristics of the population and the characteristics to be estimated are normally used to define the strata. At times, pilot study may be conducted for determining a more appropriate and efficient stratification plan. We can do so by taking small samples of equal size from each of the proposed strata and then examining the variances within and among the possible stratifications, we can decide an appropriate stratification plan for our inquiry.It is not necessary that stratification be done keeping in view a single characteristic. Populations are often stratified according to several characteristics. For example, a system-wide survey designed to determine the attitude of students toward a new teaching plan, a state college system with 20 colleges might stratify the students with respect to class, sec and college. Stratification of this type is known as cross-stratification, and up to a point such stratification increases the reliability of estimates and is much used in opinion surveys. From what has been stated above in respect of stratified sampling, we can say that the sample so constituted is the result of successive application of purposive (involved in stratification of items) and random sampling methods. As such it is an example of mixed sampling. The procedure wherein we first have stratification and then simple random sampling is known as stratified random sampling.

(iii) Cluster sampling: If the total area of interest happens to be a big one, a convenient way in which a sample can be taken is to divide the area into a number of smaller non-overlapping areas and then to randomly select a number of these smaller areas (usually called clusters), with the ultimate sample consisting of all (or samples of) units in these small areas or clusters. Thus in cluster sampling the total population is divided into a number of relatively small subdivisions which are themselves clusters of still smaller units and then some of these clusters are randomly selected for inclusion in the overall sample. Suppose we want to estimate the proportion of machineparts in an inventory which are defective. Also assume that there are 20000 machine parts in the inventory at a given point of time, stored in 400 cases of 50 each. Now using a cluster sampling, we would consider the 400 cases as clusters and randomly select n cases and examine all the machineparts in each randomly selected case.Cluster sampling, no doubt, reduces cost by concentrating surveys in selected clusters. Butcertainly it is less precise than random sampling. There is also not as much information in nobservations within a cluster as there happens to be in n randomly drawn observations. Cluster sampling is used only because of the economic advantage it possesses; estimates based on cluster samples are usually more reliable per unit cost.

(iv) Area sampling: If clusters happen to be some geographic subdivisions, in that case cluster sampling is better known as area sampling. In other words, cluster designs, where the primary sampling unit represents a cluster of units based on geographic area, are distinguished as area sampling. The plus and minus points of cluster sampling are also applicable to area sampling.

(v) Multi-stage sampling: Multi-stage sampling is a further development of the principle of cluster sampling. Suppose we want to investigate the working efficiency of nationalised banks in India and we want to take a sample of few banks for this purpose. The first stage is to select large primary sampling unit such as states in a country. Then we may select certain districts and interview all banks in the chosen districts. This would represent a two-stage sampling design with the ultimate sampling units being clusters of districts. If instead of taking a census of all banks within the selected districts, we select certain towns and interview all banks in the chosen towns. This would represent a three-stage sampling design. If instead of taking a census of all banks within the selected towns, we randomly sample banks from each selected town, then it is a case of using a four-stage sampling plan. If we select randomly at all stages, we will have what is known as multi-stage random sampling design. Ordinarily multi-stage sampling is applied in big inquires extending to a considerable large geographical area, say, the entire country. There are two advantages of this sampling design viz., (a) It is easier to administer than most single stage designs mainly because of the fact that sampling frame under multi-stage sampling is developed in partial units. (b) A large number of units can be sampled for a given cost under multistage sampling because of sequential clustering, whereas this is not possible in most of the simple designs.

(vi) Sampling with probability proportional to size: In case the cluster sampling units do not have the same number or approximately the same number of elements, it is considered appropriate to use a random selection process where the probability of each cluster being included in the sample is proportional to the size of the cluster. For this purpose, we have to list the number of elements in each cluster irrespective of the method of ordering the cluster. Then we must sample systematically the appropriate number of elements from the cumulative totals. The actual numbers selected in this way do not refer to individual elements, but indicate which clusters and how many from the cluster are to be selected by simple random sampling or by systematic sampling. The results of this type of sampling are equivalent to those of a simple random sample and the method is less cumbersome and is also relatively less expensive. We can illustrate this with the help of an example. (vii) Sequential sampling: This sampling design is some what complex sample design. The ultimate size of the sample under this technique is not fixed in advance, but is determined according to mathematical decision rules on the basis of information yielded as survey progresses. This is usually adopted in case of acceptance sampling plan in context of statistical quality control. When a particular lot is to be accepted or rejected on the basis of a single sample, it is known as single sampling; when the decision is to be taken on the basis of two samples, it is known as double sampling and in case the decision rests on the basis of more than two samples but the number of samples is certain and decided in advance, the sampling is known as multiple sampling. But when the number of samples is more than two but it is neither certain nor decided in advance, this type of system is often referred to as sequential sampling. Thus, in brief, we can say that in sequential sampling, one can go on taking samples one after another as long as one desires to do so.

SAMPLINGa) Sampling Technique: Non probability sampling (A non probability sampling technique is that in which each element in the population does not have an equal chance of getting selected)b) Sample size: 100 respondents (Age ranging between 18 yrs. onwards.)c) Method: Direct interview through questionnaire.d) Data analysis method: Pie charts.e) Area of survey: New Delhi.f) Timing of survey: 9.00 am to 12.30 pm and 5.00 pm to 8.00 pm

FIELD WORK- METHOD USED FOR DATA COLLECTION Questionnaire was prepared keeping the objective of research in mind. The help of questionnaires conducted direct interviews, in order to get accurate information. In order to get correct information I had to approach consumers ranging from 18 yrs. onwards. It is really a Herculean task to understand Consumer Behavior, as the definition suggest, Consumer behavioris a physical activity as well as decision processindividual engaged in when evaluating, acquiring, usingand disposing goods and services. In order to collect accurate information I checked each and every question was filled personally by therespondents and checked properly. People were not willing to answer, when they were contacted between 9.00 am to 12.30 pm and 5.00 pm to 8.00 pm, the time when most of the people take rest during the scorching heat.

CHAPTER-4 ANALYSIS AND FINDINGS

Analysis & Findings

Customer Questionnaire:

Q.1. Which Prepaid Cellular services you are using?(a) Aircel (b) Airtel (c) BSNL(d) Idea (e) MTS (f) Reliance (g) Vodafone(h) Tata IndicomPARTICULARNumber of RespondentsPercentage(%)

Aircel3737

Airtel1313

BSNL55

Idea77

MTS33

Reliance1010

Vodafone1818

Tata Indicom77

TOTAL100100

Interpretation:-37% people are using the prepaid cellular services of Aircel.18% people are using the prepaid cellular services of Vodafone.13% people are using the prepaid cellular services of Airtel.10% people are using the prepaid cellular services of Reliance.7% people are using the prepaid cellular services of Idea.7% people are using the prepaid cellular services of Tata Indicom.5% people are using the prepaid cellular services of BSNL.3% people are using the prepaid cellular services of MTS.

Q.2.Would you like to change your service provider?(a) Yes (b) No PARTICULARNumber of RespondentsPercentage(%)

No88

Yes9292

TOTAL100100

Interpretation:-Out of 100 people, 92% people are in favour of changing their service provider.Only 8% people are not in favour of changing their service provider.

Q.3. Why do you want to change your Mobile product/service?(a) New technology (b) Change Tariff (c) Change network (d) LostPARTICULARNumber of RespondentsPercentage(%)

New technology1617

Change Tariff4347

Change network3033

Lost33

TOTAL92100

Interpretation:-47% people are wanted to change their service provider due to change in tariffs.33% people are wanted to change their service provider due to change in networks.17% people are wanted to change their service provider due to new technology.3% people are wanted to change their service provider due to lost.

Q.4. To which Prepaid Cellular services you want to move on?(a) Aircel (b) Airtel (c) BSNL (d) Idea (e) MTS (f) Reliance (g) Vodafone (h) Tata IndicomPARTICULARNumber of RespondentsPercentage(%)

Aircel3639

Airtel1213

BSNL44

Idea67

MTS22

Reliance910

Vodafone1718

Tata Indicom67

TOTAL92100

Interpretation:-39% people wanted to move on to Aircel services.18% people wanted to move on to Vodafone services.13% people wanted to move on to Airtel services.10% people wanted to move on to Reliance services.7% people wanted to move on to Idea services.7% people wanted to move on to Tata Indicom services.4% people wanted to move on to BSNL services.2% people wanted to move on to MTS services.

Q.5.Which of the following do you use other then calling?(a) SMS (b) MMS (c) Internet(d) Games (e) Wall Paper (f) Downloading (g) Others PARTICULARNumber of RespondentsPercentage(%)

SMS5757

MMS1313

Internet5151

Games3737

Wall Paper2323

Downloading4848

Others5454

Interpretation :-57% people use mobile services for SMS other than calling.54% people use mobile services for Other work rather than calling.51% people use mobile services for Internet other than calling.48% people use mobile services for Downloading other than calling.37% people use mobile services for Games other than calling.23% people use mobile services for Wallpaper other than calling.13% people use mobile services for MMS other than calling.Q.6. From where you Get your recharge done or buy recharge coupons.(a) Retailer (b) Online PARTICULARNumber of RespondentsPercentage(%)

Retailer8787

Online1313

TOTAL100100

Interpretation:-87% people get their recharge done through retailers.13% people get their recharge done through online.

Q.7. you prefer to have easy recharge or buy recharge coupons?(a) Easy recharge (b) Recharge coupon PARTICULARNumber of RespondentsPercentage(%)

Easy recharge7182

Recharge coupon1618

TOTAL87100

Interpretation:-71% people have to prefer easy recharge.16% people have to prefer recharge through recharge coupon.

Q.8. Where did you get the information about the product/service?(a) News paper (b) Magazine (c) TV Ad (d) Friends (e) Colleagues (f) online (g) Leaflet (h) Retailer (i) Others PARTICULARNumber of RespondentsPercentage(%)

News paper3434

Magazine1212

TV Ad5656

Friends3232

Colleagues66

online2323

Leaflet99

Retailer3737

Others1313

Interpretation:-56% people get the information about product/service through TV Ad.37% people get the information about product/service through Retailer.34% people get the information about product/service through Newapaper.32% people get the information about product/service through Friends.23% people get the information about product/service through Online.13% people get the information about product/service through Others.12% people get the information about product/service through Magazine.9% people get the information about product/service through Leaflet.6% people get the information about product/service through Colleagues.

Q.9.Why has you chosen your service provider?(a) Reference (b) Prior experience (c) Network (d) Provide clear voice(e) Excellent service (f) Price promise(g) Availability(h) others PARTICULARNumber of RespondentsPercentage(%)

Reference3939

Prior experience2323

Network7676

Provide clear voice4545

Excellent service3434

Price promise1212

Availability4242

others1515

Interpretation:-76% people choose service provider because of network.45% people choose service provider because of providing clear voice.42% people choose service provider because of availability.39% people choose service provider because of reference.34% people choose service provider because of excellent service.23% people choose service provider because of prior experience.15% people choose service provider because of other matter.12% people choose service provider because of prior promise.

Q.10. Do you like your service providers customer support?(a) Yes (b) No PARTICULARNumber of RespondentsPercentage(%)

Yes6767

No3333

TOTAL100100

Interpretation:-67% people like their service provider customer support.33% people not like their service provider customer support.

Q.11. Which service provider advertisement is more attractive?(a) Aircel (b) Airtel (c) BSNL(d) Idea (e) MTS (f) Reliance (g) Vodafone (h) Tata IndicomPARTICULARNumber of RespondentsPercentage(%)

Aircel4141

Airtel99

BSNL22

Idea1010

MTS33

Reliance1212

Vodafone2121

Tata Indicom22

TOTAL100100

Interpretation:-41% people say that Aircel service provider advertisement is more attractive.21% people say that Vodafone service provider advertisement is more attractive.12% people say that Reliance service provider advertisement is more attractive.10% people say that Idea service provider advertisement is more attractive.9% people say that Airtel service provider advertisement is more attractive.3% people say that MTS service provider advertisement is more attractive.2% people say that BSNL service provider advertisement is more attractive.2% people say that Tata Indicom service provider advertisement is more attractive.

Retailer Questionnaire:Q1 which prepaid cellular service you offers?(a) Aircel (b) Airtel (c) BSNL(d) Idea (e) MTS (f) Reliance (g) Vodafone (h) Tata IndicomPARTICULARNumber of RespondentsPercentage(%)

Aircel7878

Airtel7272

BSNL2323

Idea6363

MTS2727

Reliance4747

Vodafone8181

Tata Indicom1212

Interpretation:-81% retailer offers Vodafone prepaid cellular service.78% retailer offers Aircel prepaid cellular service.72% retailer offers Airtel prepaid cellular service.63% retailer offers Idea prepaid cellular service.47% retailer offers Reliance prepaid cellular service.27% retailer offers MTS prepaid cellular service.23% retailer offers BSNL prepaid cellular service.12% retailer offers Tata Indicom prepaid cellular service.

Q2 which company is giving best performance?(a) Aircel (b) Airtel (c) BSNL(d) Idea (e) MTS (f) Reliance (g) Vodafone (h) Tata IndicomPARTICULARNumber of RespondentsPercentage(%)

Aircel2424

Airtel2020

BSNL33

Idea1010

MTS55

Reliance66

Vodafone2727

Tata Indicom55

TOTAL100100

Interpretation:-27% retailers agree with the Vodafone Company in giving best performance.24% retailers agree with the Aircel Company in giving best performance.20% retailers agree with the Airtel Company in giving best performance.10% retailers agree with the Idea Company in giving best performance.6% retailers agree with the Reliance Company in giving best performance.5% retailers agree with the MTS Company in giving best performance.5% retailers agree with the Tata Indicom Company in giving best performance.3% retailers agree with the BSNL Company in giving best performance.

Q.3. Which brand offers best sell margin?(a