Consumer Switching Behavior

Topics: Mobile phone, Service, Service system Pages: 21 (5294 words) Published: April 9, 2011
A study on Consumer Switching Behavior in cellular service Provider – Study with reference to Mumbai

India mobile market is a fastest growing market and is forecasted to reach 864.47 million users by 2013.India has seen rapid increase in number of players which caused the tariff rates to hit in all time low. This allowed the players to target the low income population increasing the market share. Due to unavailability of number of subscriber options for customers and varied tariff rates of each player, lead the customers to switch the providers. The objective of the study is to find the factors that influence the customers in switching the service provider and to know the likeliness of using a particular service provider. -------------------------------------------------

India and mobile phone service providers
India has got around 11 mobile service providers including both the GSM and CDMA service. Among this 11, there are 8 GSM service providers and 3 CDMA service providers. * BSNL/MTNL - It is the largest telecom company in India with 24% market share and currently the customer base is around 90 million. This customer base includes fixed line phones, mobiles and DSL lines. It’s a government company with market value of around 100 Billion. * Airtel – It’s the world's third largest single country mobile operator with around 110 million subscribers. Airtel provides fixed and mobile teleservices. Airtel has around 24% market share in India. * Reliance Communications - It’s a private company in which Anil Dhirubahi Ambani holds around 67% share. It has 17% market share in India. Reliance had initially started with the CDMA service but now has extended its services to GSM also. * Vodafone Essar - The market share is around 24% for vodafone and it operates in 33 circles in India. It provides only GSM mobile service in India. * Tata Teleservices –It’s a part of one of the world's largest conglomerate Tata Group under Chairman Rata Tata. It markets its services under3 different brands, Tata Indicom, Virgin Mobile and recently it started the brand Tata Docomo which is a venture between Japanese mobile giant NTT docomo and Tata Teleservice. * Idea Cellular - Currently the Aditya Birla group holds about 49% share of Idea cellular. It has a market share of about 15% in India with around 48 million subscribers. * Aircel - It is India's 5th largest GSM service provider with subscriber base of about 27 million. It’s a joint venture between Maxis Communication, Malaysia and Apollo Hospital Group, India. It has a market share of about 13% in India. * Uninor - It is the 8th GSM service that started its operation in India. It’s a merger between Unitech India and Telenor, Norway. Out of a India's mobile subscriber base of more than 700 million, 120 million want to change their mobile networks under Mobile Number Portability option. More than one out of six mobile phone subscribers (17.6%) want to switch over to another telecom company. A survey done across eight Indian cities covering 4,564 subscribers has concluded that Airtel and Vodafone Essar will gain the most from Mobile Number Portability. One in three people want to switch to Airtel and one in five want to switch to Vodafone. Statistics show that only 50 percent of people want to go for mobile number portability because they are not happy with the service. The other half is just going for the novelty of a new subscriber.   Women are found to be loyal subscribers staying to a mobile network. Mobile Value Added Services:

Mobile value-added services (m-VAS) are services, which offer differentiation and the ability for mobile operators and/or service providers to charge a premium price for the services offered. In simple terms it is anything but the regular phone voice conversation we make over the mobile network. Mobile VAS includes services such as: 1....

References: 3) HBR case Turning Copper into Gold: Bharti Airtel 's Fixed-Line Service in India
By Varadharajan sridhar, Amit Malik | Nov 15, 2007
6) Bolton, R. N., and J. H. Drew (1991), "A Multistage Model of Customers ' Assessments of Service Quality and Value," Journal of Consumer Research, 17(4), pp. 375-385.
7) Ganesh, J. M., J. Arnold and K. E. Reynolds (2000), "Understanding the Customer Base of Service Providers: An Examination of the Differences between Switchers and Stayers," Journal of Marketing, 64(3), pp. 65-87.
8) Smith, R. E. and W. F. Wright (2004), "Determinants of Customer Loyalty and Financial Performance," Journal of Management Accounting Research, 16 (Special Issue), pp. 183-205.
9) Sureshchandar, G. S., C. Rajendran and R. N. Anantharaman (2002), "The Relationship between Service Quality and Customer Satisfaction - a Factor Specific Approach," Journal of Services Marketing, 16 (4), pp.363-379.
13) Telecom Regulatory Authority of India (2008), "Growth of Value Added Services and Regulatory Issues", Consultation Paper No. 12/2008, New Delhi.
14)  MARCO (2004), "A Report on Study of Mobile Phone Usage Among the Teenagers and Youth in Mumbai", Market Analysis and Consumer Research Organization, Mumbai.
15) Potts Geoff (2004), "Collage Students and Cell Phone Use: Gender Variation", Sociology of the Mobile Phone, Sozilolgisches Indtitut der Universitat, Zurich, Switzerland.
16) Igarashi T (2004), "Response Style of Mobile Phone Text Messages: Effects of Gender and Message Contents," Poster Presented at the 28th International Congress of Psychology, Beijing, China.
17) Ramachandran T V (2005), "The Indian Cellular Industry-An Overview", September 20, @ India Mobile Day 2005, COAI, New Delhi.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Consumer Behavior
  • consumer behavior Essay
  • Consumer behavior Essay
  • FINAL PAPER Consumer Behavior
  • consumer behavior final project Essay
  • Essay about Consumer Behavior

Become a StudyMode Member

Sign Up - It's Free