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Survey On Mobile Phones And Their Defects(Indian Context)

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Hello Everyone, We would like to take the internet medium to share with you the work done by Me and my friend. We belong ot the MBA(Tech.) course from NMIMS, bacth of 2004-09, telecom, 5th year. In the period from Nov'07-Feb'08, we did a survey on the defects in the handsets circulating in the indian mobile market and the levles of customer satifsfaction prvaling. The survey was of 309 samples among college going students from various parts of the city. We got some shocking results: 1. 28% of all phones circulating in the market are defective as these defects have occured due to internal problem of the phone and they have occure within 1 year of purchase. 2. It takes an average of 7 days to 22 days to get a phone repaired and 38 days to 88 days to get the phones replaced. 3. If asked would you like to buy the phone from the same company again: 11% of the population said that they would not like to buy the phone from the same company again. 35% is unsure on the decesion, while the remaining 54% would like to buy the phone from the same company again. The survey included Nokia, Sony Ericsson, Motorla, Samsung, LG, O2, the distribution is as given in the report. We would happy if the media wishes to publish this report. All the data is well documented and we have the real data supporting it. For any enquiries, We can be reached at [email protected] [email protected]
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Survey on Mobile Phones and their defects JAI AWATRAMANI & ALIASGAR NAVAGHARWALA MBA(Tech.), Telecom, Class of 2004-09 NMIMS University The study result is intended to give understanding of the Indian Mobile Phone Market in terms of the defects that occur in Mobile Phones, Customer Satisfaction to complaint handling and Customer Loyalty.
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Page 1: Survey On Mobile Phones And Their Defects(Indian Context)

Survey on Mobile Phones and

their defects

JAI AWATRAMANI & ALIASGAR NAVAGHARWALA

MBA(Tech.), Telecom, Class of 2004-09

NMIMS University

The study result is intended to give understanding of the Indian Mobile Phone Market in terms of the defects that

occur in Mobile Phones, Customer Satisfaction to complaint handling and Customer Loyalty.

Page 2: Survey On Mobile Phones And Their Defects(Indian Context)

Executive SummaryIndia and the Indian Telecommunications Market

•The Second fastest growing economy.•The fastest growing telecom sector of the world. Teledensity of more than 28%. •300 million mobile connections

Mobile phone production growth estimation in India

•CAGR of 28.3 per cent from 2006 to 2011,

totalling 107 million handsets by 2010.

•Revenues CAGR of 26.6 per cent from 2006

to 2011, touching US$ 13.6 billionThe Stretch of Mobile Phone

• Teenager to 75 year old

• Urban to Rural

• Multimedia Rich to Plain vanilla

• Rs.1500 to Rs.50,000

• More than 10 brands for options

• More than 150 options

• Available Everywhere

• Highly Marketed

• Prices Declining by the day

• Niche Players also starting to gain increasing market share

Page 3: Survey On Mobile Phones And Their Defects(Indian Context)

Executive Summary

The Survey

• Need for the Research

• In the Month of October-November a spate of incidents among friends with regard to defects occurring with their Mobile Phones prompted us to discuss the issue

• A deeper observation revealed that there are many defects and there is a decreasing level customer care by service centers to defects complaints, leading to frustrations among the user

• The two researchers being from the field of telecom further generated huge curiosity to do a sample survey study and see the actual statistics prevalent.

Survey Details

• Sample Size – 309

• Duration – Nov’07 – February’08

• Total Cost of phones measured –30 lakhs

What did we measure?

• The Mobile Phone Manufacturer

• The Price of Mobile Phone

• The Type of Defect

• Rectification of Defect?

• Days required for Rectification

• Location of Rectification

• Customer Satisfaction to Complaint handling

• Satisfaction to Current working of Phone

• Changeover Chance

Page 4: Survey On Mobile Phones And Their Defects(Indian Context)

The Results28% of Phones sold in market have

manufacturing defect

Proportion of Defective Phones Due to Internal Problem

occuring within 1 year from the date of Purchase from the total

sample

87, 28%

222, 72%

Yes

No

Average time To get phone repaired – 16 days

Average time To get phone replaced –>30 days

38% of the people who visited authorized service center were not satisfied with the way their complaint was

23, 38%

38, 62%222, 72%complaint was handled

20% are of total respondents are not satisfied with current

working of their Phone

61, 20%

248, 80%

108, 35%

35, 11%

166, 54%

Maybe

No

Yes

Would you like to purchase the phone from the same company again

����

Page 5: Survey On Mobile Phones And Their Defects(Indian Context)

Mobile Phones and their Defects

Research problem• A study of defects in Mobile Phones, the rectification process and its effect on Customer Loyalty.

OBJECTIVEOBJECTIVE• To study the percentage of defective phones in the market

• To study the time taken for rectification.• To study customer satisfaction towards rectification process and Customer loyalty towards the handset manufactures.

Page 6: Survey On Mobile Phones And Their Defects(Indian Context)

VARIABLE CLASSIFICATION

• Dependent Variable: Defects

• Intermediate Variable: Rectification Process

• Independent Variable: Customer Satisfaction & Customer Loyalty

Page 7: Survey On Mobile Phones And Their Defects(Indian Context)

Operational Definitions

• Defect in Phone: -Malfunctioning of the Handset in certain identified areas

• Multiple occurrence of Defect: - Defect occurring more than once (whether same or a different defect) in the phone lifetime.lifetime.

• Type of Defect:

• Cause of defect: - Whether the defect is within the phone or

cause by some mistake from the user

• Rectification of Defect: - A defect can either be rectified or

replaced.

• Software

• Headphones/

Attachments

• Joystick

• Keypad

• Display

• Speakers

• Network

• Hearing

• External Body

Page 8: Survey On Mobile Phones And Their Defects(Indian Context)

Operational Definitions

• Place of Rectification: - Defective phones are rectified at any Provate Shop or Authorized Service Center

• Time required for rectification: - No. of Days

• Satisfaction for complaint handling: - Are the customer satisfied or unsatisfied with the way their customer satisfied or unsatisfied with the way their complaints are handled

• Customer Satisfaction for current working of Phone: - Regardless of defect or no defects

• Customer Loyalty occurring from various factors: - How many users would like to purchase from the same manufacturer again.

Page 9: Survey On Mobile Phones And Their Defects(Indian Context)

HYPOTHESIS

Hypothesis framed based on possible manufacturing standards and service levels timing given to solving customer complaints

HypothesisHypothesis

1. 99% phones do not have manufacturing defect

2. 90% is the service level of complaints. 90% of all phones need repairing should be repaired within 2 days.

3. 99% of the people will always be loyal to manufacturer of the current handset they are using

Page 10: Survey On Mobile Phones And Their Defects(Indian Context)

Scope of the Research

• Majorly College going students

• Convenience method of random sampling was adopted

Page 11: Survey On Mobile Phones And Their Defects(Indian Context)

Research Tools

• Checklist with 4 parts• Part 1: Customer Demographics

• Part2:Defect occurrence in Mobile & Defect detailing

• Part3:Customer Satisfaction to the way the Complaint • Part3:Customer Satisfaction to the way the Complaint

was handled

• Part4: Satisfaction towards the current working

conditions of phone and loyalty towards company.

Page 12: Survey On Mobile Phones And Their Defects(Indian Context)

Sampling Design – How was the

sampling done

The population consists of every college student owning a Mobile Phone. Colleges are chosen because in Mumbai, colleges have students coming from every part of Mumbai. The population estimation of this sample covers all age groups as fundamentally the different mobile phones used in al age groups remains the same.groups remains the same.

Page 13: Survey On Mobile Phones And Their Defects(Indian Context)

Information Flow Chart

Page 14: Survey On Mobile Phones And Their Defects(Indian Context)

Objective 1To find out the percentage of defective mobile phones circulating in the

market, the type of defect, cause of defect and occurrence of defect.

•• Hypothesis 1: Hypothesis 1: -- 99% phones do not have manufacturing defect

•• Question 1: Question 1: How many mobile

handsets in the market are

defective? No Yes

•• Question 2: Question 2: Cause of defect?

User Mistake or Internal

Problem? – Total defect - 129

180, 58%

129, 42%

26, 20%

103, 80%

Your Mistake

Internal Problem of the Phone

Page 15: Survey On Mobile Phones And Their Defects(Indian Context)

Objective 1To find out the percentage of defective mobile phones circulating in the

market, the type of defect, cause of defect and occurrence of defect.

•• Question 3: Question 3: When did the

defect occur from the date of

purchase?

84

100100

120

•• Question 4Question 4: : Out of the total sample how many were defective due to internal problem of the phone within the first year from the date of purchase of the phone?

Proportion of Defective Phones Due to Internal Problem

occuring within 1 year from the date of Purchase from the total

sample

22

47

71

84

0

20

40

60

80

1) Within 1

months

2) Within 3

months

3) Within 6

months

4) Within 12

months

5) More

than 1 yr

Percentage

Cumulative Percentage

sample

87, 28%

222, 72%

Yes

No

Page 16: Survey On Mobile Phones And Their Defects(Indian Context)

FINDINGS OF OBJECTIVE 1

• 42% phones sampled are defective

• 28% are visibly due to internal problem of the phone as the defect has occurred within 1 year from the date of purchase within 1 year from the date of purchase and it is due to internal problem.

• 71% of the defects take place with 6 months of purchase

Page 17: Survey On Mobile Phones And Their Defects(Indian Context)

TESTING OF HYPOTHESIS 1

• Null Hypothesis: - 99% phones do not have

manufacturing defect

• The data shows that 28% of the Mobile

Phones have inherent manufacturing defect Phones have inherent manufacturing defect

when they are sold

• Hence

• Null Hypothesis is “Rejected”

Page 18: Survey On Mobile Phones And Their Defects(Indian Context)

Objective 2: To find out where did the customer rectify his handset and in how many days

•• Hypothesis 2Hypothesis 2: : -- 90% is the service level of complaints. 90% of all phones need repairing should be repaired within 2 days.

•• Question 6: Question 6: What was the number of phones that were repaired replaced or were not rectified by the user?

•• Question 7: Question 7: Of the phones which were repaired/replaced where the user did got it repaired from i.e. Authorized Service Centre or Private Shop?

12, 9%Authorized Service Centre

18, 14%

99, 77%

12, 9%Not Rectified

Repaired

Replacement

61, 55%

50, 45%

Private Shop

Page 19: Survey On Mobile Phones And Their Defects(Indian Context)

Objective 2: To find out where did the customer rectify his handset and in how many days

•• Question 8: Question 8: Of the total number of the phones which were

repaired/replaced where did the user got it repaired from i.e. Authorized

Service Centre or Private Shop?

3, 25%

Replacement Authorized Service Centre Replacement Private Shop

52, 53%

47, 47%

Repaired Authorized Service Centre Repaired Private Shop

9, 75%

Page 20: Survey On Mobile Phones And Their Defects(Indian Context)

Objective 2: To find out where did the customer rectify his handset and in how many days

•• Question 9: Question 9: How many days it took for the Authorized Service Centre and

the Private Shop to get the defect rectified?

Replacement (days)

N 12

Average 55

Upper Limit 76

Lower Limit 33

Repaired (days)

N 99

Average 16

Upper Limit 21Lower Limit 33

Lower Limit 10

Repaired

Authorized Private Shop

N 52 47

Average 15 17

Median 6.5 5

Mode 1 2

Upper Limit 22 25

Lower Limit 7 8

Replacement

Authorized Private Shop

N 9 3

Average 63 30

Upper Limit 88 103

Lower Limit 38 -42

Page 21: Survey On Mobile Phones And Their Defects(Indian Context)

FINDINGS OF OBJECTIVE 2

• Defects were rectified in the following manner – 45% in Private shop, 55% in ASC

• Average time to get phone repaired • Average time to get phone repaired from either an authorized service centre or private shop is 16 days and time taken to get replaced is 55 days.

Page 22: Survey On Mobile Phones And Their Defects(Indian Context)

• Null Hypothesis: - 90% is the service level of complaints. 90% of all phones need repairing should be repaired within 2 days.

• The data shows that population average time taken for repairing a phone takes 7days to 22 days whereas for replacement takes 38 days to 88 days this leads us to reject

TESTING OF HYPOTHESIS 2

repairing a phone takes 7days to 22 days whereas for replacement takes 38 days to 88 days this leads us to reject the null hypothesis. This shows us the significant amount of time taken to get a defective handset sold by the manufacturer to repair or replace it.

• Null Hypothesis is “Rejected”

Page 23: Survey On Mobile Phones And Their Defects(Indian Context)

Objective 3To study customer satisfaction towards rectification process and current

working of phone and Customer loyalty towards the handset manufactures.

•• Hypothesis 3: Hypothesis 3: -- 99% of the people will always be loyal to manufacturer of the current handset they are using

•• Question 10: Question 10: What was the satisfaction level of the people who visited the Authorized Service Centre/ Private Shop to get their phone rectified (replaced/repaired)?

No

YesPrivate Shop

23, 38%

38, 62%

No

Yes

23, 44%

29, 56%

Authorized Service

Center (ASC)

Page 24: Survey On Mobile Phones And Their Defects(Indian Context)

Objective 3To study customer satisfaction towards rectification process and current

working of phone and Customer loyalty towards the handset manufactures.

•• Question 11: Question 11: How many respondents of the total sample are currently satisfied with the working of their phone?

•• Question 12Question 12: : What is the

Brand Loyalty of the users?

61, 20%

Would you like to purchase the phone from the same company

again?

248, 80%

No

Yes

108, 35%

35, 11%

166, 54%

Maybe

No

Yes

Page 25: Survey On Mobile Phones And Their Defects(Indian Context)

Objective 3To study customer satisfaction towards rectification process and current

working of phone and Customer loyalty towards the handset manufactures.

•• Question 13: Question 13: What is the relationship between the performance of the phone and loyalty towards company?

100

120

140

160 Are You Satisifed with working of Your Phone = Yes,

Would You Purchase from the Same company Again? - YES/NO/MayBe

85, 34%

Maybe

232414

85

11

152

0

20

40

60

80

100

MaybeNoYesMaybeNoYes

NoYes

Are you Satisfied with Working of Phone and

Would You Purchase from the same company Again

Count

11, 4%

152, 62%

Maybe

No

Yes

Are you satisfied with the working of your Phone now = No,

Would you Purchase from the same company Again? - YES/NO/MayBe

24, 39%

14, 23% 23, 38%

Maybe

No

Yes

Page 26: Survey On Mobile Phones And Their Defects(Indian Context)

Objective 3To study customer satisfaction towards rectification process and current

working of phone and Customer loyalty towards the handset manufactures.

•• Question 14: Question 14: What is the relationship between defect occurrence of phone and satisfaction with current working of the phone?

Did The Phone ever had a defect = Yes

Are You satsified with the working of your Phone Now -YES/NO

Did The Phone ever had a defect = No

Are You satsified with the working of your Phone Now -YES/NO

61, 20%

52, 40%

77, 60%

No

Yes

248, 80%

No

Yes

Page 27: Survey On Mobile Phones And Their Defects(Indian Context)

Objective 3To study customer satisfaction towards rectification process and current

working of phone and Customer loyalty towards the handset manufactures.

•• Question 14: Question 14: What is the percentage of respondents who have faced a defect within 1 year from the date of purchase and the loyalty towards the company to buy from the same manufacturer?

Defect occured within the warranty period, and loyalty towards

brand

46, 42%

45, 41%

18, 17%

Maybe

No

Yes

Page 28: Survey On Mobile Phones And Their Defects(Indian Context)

Objective 3To study customer satisfaction towards rectification process and current

working of phone and Customer loyalty towards the handset manufactures.

•• Question 14: Question 14: To find the relationship between a defective piece

and its effect on customer loyalty

Page 29: Survey On Mobile Phones And Their Defects(Indian Context)

FINDINGS OF OBJECTIVE 3

• Of the entire sample, 54% would like to buy the phone from the same company again, while 11% would not and 35% are unsure.

•When a phone does not has a defect 62% would like to buy the phone from the same company again, while when the phone has a defect only 43% would like to buy the phone from the same

Loyalty

Defect YES NO MAYBE

Defective Phone 43 16 41

No defects 62 8 30

defect only 43% would like to buy the phone from the same company again.

• Customers having a defective handset: - 38% were unsatisfied with complaint handling.

• Phone Rectified to a Private Shop Centre, “44%” were not satisfied with the way their complaint was Handled.

Page 30: Survey On Mobile Phones And Their Defects(Indian Context)

• Null Hypothesis: - 99% of the people will always be loyal to manufacturer of the current handset they are using

• The above data shows us 11% of the population would not like to buy the phone from the same company again, whereas 35% is unsure. This leads us to reject the null hypothesis. Our analysis also shows us the relationship between defective

TESTING OF HYPOTHESIS 3

35% is unsure. This leads us to reject the null hypothesis. Our analysis also shows us the relationship between defective handsets and loyalty. If defects were to be zeroed customer loyalty would increase to 62% directly affecting the cost of marketing. gives us a clear results whether to accept or reject the null hypothesis, while point 2 gives us ways to improve loyalty by having defect free handsets.

• Null Hypothesis is “Rejected”

Page 31: Survey On Mobile Phones And Their Defects(Indian Context)

Recommendations

• Lower Defects increase loyalty

• Lower customer dissatisfaction towards complaints handling increase loyalty

• Regulator should set quality benchmarks• Regulator should set quality benchmarks

• The Price paid should be worth the service.

Page 32: Survey On Mobile Phones And Their Defects(Indian Context)

Following was the share of various

phones surveyed

• Nokia – 213• Sony Ericsson – 47• Motorola – 24• Samsung – 11• LG – 7• LG – 7• O2 – 3• Others- 4

• Total - 309 samples.

• Based on purely random sampling

Page 33: Survey On Mobile Phones And Their Defects(Indian Context)

For any further enquiries contact

[email protected]

[email protected]


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