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MBA Project

The document discusses consumer behavior towards internet data cards. It outlines the typical steps consumers go through when purchasing an internet data card: [1] recognizing the need for internet access anywhere, [2] searching for information from family and friends, [3] evaluating different cards based on attributes like price and speed, and [4] purchasing a card. After purchasing, consumers will assess their experience based on the card's performance and value. Understanding consumer behavior at each step can help internet data card companies better meet consumer needs and manage expectations.

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0% found this document useful (0 votes)
189 views

MBA Project

The document discusses consumer behavior towards internet data cards. It outlines the typical steps consumers go through when purchasing an internet data card: [1] recognizing the need for internet access anywhere, [2] searching for information from family and friends, [3] evaluating different cards based on attributes like price and speed, and [4] purchasing a card. After purchasing, consumers will assess their experience based on the card's performance and value. Understanding consumer behavior at each step can help internet data card companies better meet consumer needs and manage expectations.

Uploaded by

rkray78
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 51

CONSUMER BEHAVIOR

INDEX

TABLE OF CONTENTS
CHAPTER CONTENTS PAGE NO

About topic Introduction 1.1 Whats marketing? 1.2 Consumer Behavior 1.3 Definition of Consumer Behavior 1.3.1 Steps in consumer buying behavior 1.4 Consumer Behavior towards internet data card 1.4.1 Advantages of internet data card 1.4.2 Perceived risks of internet data card 02 03 03 03 04 06 06

The Study Design 2.1 Importance & Need for the study 2.2 Objectives of study 2.3 Data collection 2.4 Limitations 2.5 Statistical technique 09 10 11 12 12

History of reliance communication 3.1 Foundation of reliance communication 3.2 Business activity of the company 3.3 Recent company developments 3.4 Company awards and achievements 3.5 Organization structure 14 16 18 20 22 25 41 42 43 44 45 46

4&5 6

Data Analysis & Interpretation 6.1 Summary 6.2 Suggestions 6.3 Recommendations 6.4 Findings 6.5 Bibliography 6.6 Questionnaire

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LIST OF TABLES
TABLE NO CONTENTS PAGE NO

Age of respondents

25

Occupation of the respondents

26

Users of internet

27

Users who often get connect to internet

28

Users who prefer PCMCIA cards

29

Users who buy from the companys own outlet

30

Brands aware of by the users

31

Brands which the users use personally

32

Efficiency level of the users

33

10

Users who are satisfied with the price

34

11

Satisfaction level of users with the product

35

12

Users who want to promote others

36

13

Users who use more than 1 data card Users who choose different brands when 1st preference is

37

14 15

not available

38

Users who choose different brands when prices get 39 increases

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LIST OF GRAPHS
CHART NO CONTENTS PAGE NO

Age of respondents

25

Occupation of the respondents

26

Users of internet

27

Users who often get connect to internet

28

Users who prefer PCMCIA cards

29

Users who buy from the companys own outlet 30

Brands aware of by the users 7 Brands which the users use personally 8 Efficiency level of the users 9 Users who are satisfied with the price 10 Satisfaction level of users with the product 11 Users who want to promote others 12 Users who use more than 1 data card 13 14 Users who choose different brands when 1st 37 preference is not available Users who choose different brands when 38 15 prices get increases 39 36 35 34 33 32 31

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INTRODUCTION
1.1 WHATS MARKETING?
Our marketing experiences come in a variety of forms. Of course, you participate in the marketing process every time you buy goods & services. Ordinarily, marketing is considered as an activity performed by business firms. However other types of organization and even firms can also carry out the marketing by individuals. Marketing has defined in various ways. The definition of marketing applicable in business or a non-profit organization is as follows: Marketing is a total system of business activities designed to plan, price promotes and distributes want satisfying to target to achieve organization objectives. This definition ofmarketinghastwosignificant implications: The entire system of business activities should be customer oriented. Customer wants to be recognized and satisfied. Marketing should start with an idea about a want satisfying product and should not end untilthe Customers wants are completely satisfy which may be sometime after the exchange is made. Another definition that serves pour purpose best is as follows: Marketing is a social and managerial process by which individuals and groups obtain what they need want through creating, offering and exchanging products of value with others This definition of marketing rests upon the following core concepts needs, want, demand, product (goods & services& ideas ), value cost and satisfaction, exchange & transportation , relationships & networks, markets and marketers and prospectus.

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1.2CONSUMERBEHAVIOR

Consumer orientation systems from the companys adoption and implementation of the marketing concept. A philosophy of every business unit, which has triple implications namely: 1. The victory of any business unit rests on consumers who are willing to acceptand pay for theproductsor services. 2. The firm must be aware of what the market wants well in advance of production and 3. Consumer wants must be monitored continuously for assured success over competitors. The consumer are the orbiters of fortune in business in highly competitive economic system, survival and growth of firms warrants accurate knowledge about the consumer behavior How, Why, Where, What, When, they buy? Understanding consumer is the crucial task of every marketing manager.

1.3 Definition:
Professor Walter C.G and Professor Paul G.W. it is the process where by individuals decide whether, what, when, where, how and from whom to purchase goods & services.

1.3.1 Steps In consumer buying process:


The following are the five steps generally followed by the consumer while buying a product. 1. Needrecognition 2. Informationsearch 3. Evaluationandintention 4. Purchasedecision

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5. Post purchasing reaction Understanding consumer behavior and knowing customers is not a simple task. Customer may state their needs end wants but other wise they may not be in touch with their deeper motivation they may respond to influences that change their mind at the cost minute nevertheless; marketers must study their target customers wants, perception, and shopping and buying behavior. The following are the factors which effects consumer behavior. 1. Cultural factors 2. Culture 3. Sub-Cultural 4. Social class 5. Social factors

1.4 Consumer behavior towards Internet data card:


When consumer purchase internet data card they still perform a similar sequence of tasks: searching for information about different products, evaluating these alternatives, and transacting the chosen alternative. However, the family and friends has great impact on these activities.

Problem recognition:
The starting point is feeling the need or recognition of a problem. The need for accessing internet at anywhere can trigger the recognition of a need or problem and can have significant impact by encouraging customers to begin the information search process.

Information Search:
Once customers identify the need they may seek information about retailers or products to help them satisfy. Customer search regarding internet data card could be limited because its a specialty product. Our analysis has shown that in terms of internet data card customer mostly refer to family and friend as reference group. These reference groups affect buying decision offering information like price, tariff plan availability and so forth. Providing rewards for specific purchasing behaviors for instance friends could appreciate that you could

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access internet at anywhere if you are carrying a laptop. By identifying and affiliating with reference groups, consumers create, enhance, and maintain their:

Product Evaluation:
During this stage, consumers process different product information and make a final value judgment. The multi attribute model provides a useful way for summarizing how customers use the information they have about alternative brands of internet data card. From our consumer behavior analysis we have found out that on this stage customer evaluate data card on its several attributes like price, net speed, tariff plan which come along with, looks etc and they also decide which attributes are most important for them. The multi attribute model shows that how a consumer gives weights of importance to the various attributes of a data card. A sample multi attribute model which is actually has been taken from one of our questionnaire shown that how a consumer gives importance to different product attributes of data card.

Purchase Activity:
Its not necessary that customer will always purchase a brand or data card with evaluation. The data card offering benefits (having the highest evaluation) may not be available in the store, or the customer may feel that the risks outweigh the potential. During purchasing customer also may feel that their data card might not be able to meet their expectations. Therefore retailer should ensure that their sales persons are knowledgeable enough and they are also skilled presenter of their product, otherwise it could raise confusion in customers mind during purchasing of data card. Reducing the actual and perceived time of purchasing.

Post Purchase Activities:


As we know buying process doesnt end when a customer purchase a product. From focus group interviews we have come to know that after making a purchase of data card, customer evaluate their experience on the basis of net speed, signal strength amount of money they have spent. Customers often feel that service providers do not deliver what they promise. They feel players should present the terms and conditions and tariff plans/schemes in clear terms. Mentioning every small detail regarding the tariff plans must be included in the bill. For example, if a company intends to collect an advanced monthly rental from

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customers, then it has to mention that in its tariff plan, so that customers are not shocked when they see a bill that includes monthly advance rentals as well. This kind of practice might keep customers away from going for a particular brand. Perceived benefits of Internet data card. Among the process there are various factors that might influence consumers purchase during their purchasing process. Many of these factors also reflect the advantages and disadvantages of Internet as a shopping medium. The advantages or benefits currently conceived by people are described as the followings.

1.4.1 Advantages of internet data card: Convenience:


From our questionnaire survey we have come to know that when a customer thinks to purchase a data card for accessing internet they mostly see its convenient to access internet at anywhere at any time. Especially those who have to travel extensively its quite convenient for them to get connected with World Wide Web.

Time saving:
Some time data card also proves time saving from the customers especially for business executives who have to travel extensively due to their job purpose. If they are using a data card for accessing internet they dont have to find out a cyber caf at an unknown place.

Economical:
From our secondary research we have found that for younger group of consumers (age group of 18-25) who generally spend a lot of time for downloading different kind of materials like music, picture, data, due to availability of some attractive tariff plans offered by the different players (Reliances Freedom plus) along with their respective data cards, its seems a must have utility device for all young laptop users.

1.4.2 Perceived risk of Internet data card:


Perceived risk can be defined as the uncertainty that consumers face when they cannot foresee the consequences of their purchase decision. Customer perception of risk varies depending on individuals, situation and product. The degree of risk that consumers perceive and their own tolerance for risk taking, are factors that influence their purchase strategy.

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Individuals tend to reduce perceived risk to some acceptable level in any given purchase situation.

Risk of internet connection speed:


Internet connection speed refers to the data transfer rate from the Internet to your computer. Basically that means the amount of time it takes your computer to download a given amount of data. Internet connection speeds are usually measured in Kbps (kilobits per second, or thousands of bits per second) or KBps (kilobytes per second). According to our study, consumers already have a predisposition that data card do not provide good internet connection speed, so during products evaluations and purchasing activities they mostly think about product attributes e.g. internet connection speed, signal strength. Therefore here implication for management is during product evaluation; purchase activities, retailers must take some necessary measures to reduce the uncertainty in the customer mind by aggressive promotional strategies, especially focusing on innovating below the line marketing activities, giving excellent product demonstrations during purchase and most importantly reducing the cognitive dissonance during post purchase behavior by giving enough assurance about product qualities, warranty as well as excellent after sale service.

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2.1 IMPORTANCE & NEED FOR THE STUDY:


Every business enterprise requires vital information to keep alive its day to day activities. The nature of information required, differs from situation to situation supposing organization evaluating its marketing effort. The marketer has to appraise the marketing effort and then has to find means of improving it. Then information required is of consumer research. After the evaluation of marketing concept, marketing efforts of organization is canalized towards target assumed greater importance. So every organization carried out consumer research to ascertain the data regarding target market. The survey consumer behavior is helpful to the company to know how far the consumers are satisfied with the product and what makes to buy and know what consumers need more from the product. The collected data is helpful to know changing tastes, preferences, trends in buying behavior of the customer and to make product improvements. Thus, the need for the study paved way in performing project work of this kind.

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2.2 Objectives of study:

The main objective was to identify the consumer preference for reliance internet data card in Adoni. Reliance is a leading company in providing internet through data cards and has a good brand image .This compelled me to select reliance internet data card as the subject of study and finding the reasons for consumer preferences for reliance data cards. To know the prospect of reliance internet data card in Adoni town. To know the factors influencing the consumer buying decision. To know the percentage of people who are buying different companies internet cards. To know the most liked internet data card brand in Adoni town. To know the consumer view as price offered by reliance. To get the feedbacks from the people about the product. To understand the consumers pre, post, during perception of data card and consumer buying behavior and attitude for reliance data card.

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2.3 DATA COLLECTION:


Data is collected from both the Primary sources i.e. questionnaire and also from Secondary sources

Primary sources:
The primary source of data collection is through questionnaire. The Questionnaires are distributed among 61 peoples and their view is recorded and used in analyzing the data.

Secondary sources: Reliance distributors. The secondary sources include online sites, books, company broachers etc.., Total population: The total population where the questionnaires are distributed and their views are recorded is assumed to be nearly 6 to 7.5 lakhs. Sample size: I contacted a set of known people from various parts of our town to get survey forms filled. Most of them were known friends, relatives and their friends. I hoped that our survey would result in 61 filled responses from consumers. Sampling techniques:
The

sampling technique which i followed in making this project report is

random and convincing.The survey questions have been designed taking into consideration that the data collected should answer questions mentioned in Objectives of this chapter.

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2.4 LIMITATIONS:

The survey is limited only to the locality of Adoni town. The study conducted is limited only to a certain period of time. In spite of my best possible convincing efforts, some people were reluctant to answer the questionnaire and some other ones though filled it, didnt manage to put in the replica of their views. Though I thought of collecting information from larger group, the sample size of the survey was limited to just 61 respondents because of lack of time. If further time had been invested, then the report could have been more comprehensive. I dont get accurate response from the customers. They may be partial or refuse to co-operate.

2.5 Statistical technique:

The statistical technique which I followed in the project report is the percentage and

bar chart. All the questions in the questionnaire are analyzed by this statistical technique.

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History of Reliance Communication: 3.1 Foundation of Reliance Communication:


Dhirubhai Ambani (1932-2002) started the Reliance Commercial Corporation in a 350 Sq. Ft. room with a telephone, one table and three chairs. The primary business of Reliance Commercial Corporation was to import polyester yarn and export spices. He started his first textile mill at Naroda, in Ahmadabad in the year 1966 (The Origin Of 2007). After success in the textile industry Reliance slowly ventured into petroleum, petrochemicals, energy, finance, engineering and telecommunication sectors. Reliance was the first Indian company to be listed in the Fortune Global 500 list in 2003. RIL emerged featured in the 2007 Fortune Global 500 list of the world's largest corporations at rank 269 (500, 2007). Dhirubhai Ambani charted out the mission for Reliance Infocomm in late 1999. He saw that information technology had the capacity to

accelerate the growth of Indian economy leaving behind its backwardness and underdevelopment. From 1999 to 2002 Reliance Infocomm built the fiber backbone for India 60,000 Kilometers of fiber optic spreading across the entire country. Reliance Infocomm was started on December 28, 2002 (Communications, Reliance Communications 2006). After the death of Dhirubhai Ambani, there was a rift between his sons, Mukesh and Anil Ambani. Finally the company was split between the two brothers. Anil Ambani acquired Reliance Infocomm, which is now known as Reliance Communications. Reliance Communication is now a part of Anil Dhirubhai Ambani Group (ADAG). Reliance Communications is the flagship company of the Anil Dhirubhai. Ambani Group of companies. Launched as Reliance India Mobile in December 2002, it started its commercial operations in May 2003 with one million customers in 92 cities. This organization was the result of the dream of Dhirubhai Ambani to Make the tools of information and communication available to people at an affordable cost [and] they will overcome the handicaps of illiteracy and lack of mobility.

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Currently, Reliance Communication spans the entire telecommunication services covering mobile and fixed telephony. Apart from plain vanilla voice services, it provides broadband, national and international long distance services and data services along with an exhaustive range of value-added services and applications. Further, the company sells communications and digital entertainment products and services through its chain of Reliance Web World retail outlets. Today, Reliance is a service provider of both CDMA and GSM technologies. Reliance Anil Dhirubhai Ambani Group, an off shoot of the Reliance Group founded by Shri Dhirubhai H Ambani (1932-2002), ranks among Indias top three private sector business houses in terms of net worth. The group has business interests that range from telecommunications (Reliance Communications Limited) to financial services (Reliance Capital Ltd) and the generation and distribution of power (Reliance Infrastructure Limited). Reliance ADA Groups flagship company, Reliance Communications, is India's largest private sector information and Communications Company, with over 100 million subscribers. It has established a pan-India, high-capacity, integrated (wireless and wire line), convergent (voice, data and video) digital network, to offer services spanning the entire infocomm value chain. Other major group companies Reliance Capital and Reliance Infrastructure are widely acknowledged as the market leaders in their respective areas of operation.

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3.2 Business activity of the Company: Market leadership position:


RCOM is among the top two providers of wireless communication services in India with a subscriber base of more than 65 million wireless subscribers. RCOM is second largest seller of mobile handsets/devices in the country, and the largest service provider engaged in this activity. Due to its unique strength in high speed wireless data transmission, RCOM has 65% market share of the data card and USB modem market for laptops and PCs. In addition, RCOM is the largest PCO operator in the private sector with over 50% market share. RCOM has achieved this leadership status in the Indian telecom market within 4 years of the national commercial launch of its CDMA based services. The Company has the distinction of being EBITDA positive since the first year of its operations. This rapid build-up of the subscriber base has been achieved by leveraging the telecom network and national retail presence through nearly 2,000 exclusive Reliance World and Reliance Express stores with a presence in over 700 Indian cities. Together with preferred retailers, RCOM has a branded retail presence in over 1,300 towns. Apart from the growth witnessed in the wireless telecom market, RCOM is increasing its presence in the broadband segment too. The enterprise broadband services were launched in the first half of 2005, focusing on the top 40 cities of India. RCOM has leveraged its existing metro fiber optic network to connect with customers in select buildings. As on 31 March 2008, 787,567 buildings are directly connected and 1,031,000 access lines had been activated. RCOM has established an enterprise customer base that includes 850 of the top Indian enterprise and MNCs, rapidly expanding its customer in the SME segment too. RCOM is the market leader in the RDC services (Reliance Data Centre) with over 62% market share and has an enterprise customer base that includes 800 of the top 1,000 Indian enterprises and MNCs. RCOM is also the leading provider of MPLS-VPN and Centrex solutions. RCOM entered the long distance market in India in mid 2003 and has become the largest carrier of international voice minutes, with a market share of 35% for International Long Distance (ILD) wholesale inbound traffic. In addition to this RCOM have over 1.5 million customers for the Reliance India Call service which accounts for 40% of the total retail market calls made from the United States to India.

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Largest Capacity and Superior Network in India:


Company will soon be present in over 23,000 towns though its CDMA network and over 8,000 towns through GSM network. RCOMs network will also cover over 600,000 villages and address 90% of Indias population. RCOM has also commenced setting up of GSM network in the 14 additional circles where it has received requisite Government approvals and spectrum to roll-out GSM. RCOMs national inter-city long distance network is the largest next generation network in India, with over 110,000 route kilometers of ducted fiber optic cables, which is being further expanded to 135,000 route kilometers. RCOM has a totally unique asset in over 25,000 route kilometers of ducted fiber optic cables installed in the leading cities in India. The entire inter-city and metro fiber optic backbone network is deployed in a ring and meshes architecture and is MPLS enabled. The Reliance Data Network has over 180 MPLS integrated network nodes. CDMA is a spread spectrum technology where the information at a standard rate of 9.6 Kbits per second is spread on 1.23 MHz bandwidth. RCOMs network can support 2.3 times more simultaneous calls per MHz as compared to that of other GSM operators.

Integrated telecom approach:


The next generation telecom network, capable of supporting voice and data, is being leveraged by RCOM to offer a full suite of telecommunications services ranging from wireless to wire line including voice, data and broadband. The guiding strategy followed by RCOM in the network design and implementation has been the follow-the-demand principle. The superior and extensive telecom network is the basis for (i) an integrated telecom approach providing a full suite of telecommunications services ranging from wireless to wire line including voice, data and broadband; (ii) providing affordable and high quality services based on technological leadership; and (iii) enabling the RCOM Group to offer innovative communications products and services catering to evolving customer needs.

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3.3 Recent Company Developments:


On January 11, 2008, the Company received start-up spectrum to launch nationwide GSM services under its existing Unified Access Service License (UASL). RCOM has been granted GSM spectrum in 14 service areas. The DOT had also made necessary amendments to Unified Access Service Licenses (UASL) of Reliance Telecom Limited (RTL), wholly owned subsidiary of the RCOM, to enable RTL to offer CDMA services in Assam and North East Service Area in addition to existing GSM services and made allotment of startup spectrum to RTL for providing CDMA services in Assam and North East. RCOM is planning to participate in the upcoming 3G auction and would like to bid for nationwide 3G frequencies. RCOM expects the auction price to be in a range upwards of USD 1 billion for a nationwide license. RCOM believes that with implementation of MNP; 3G will act as a key differentiator to attract high-end customers to its newly launched nationwide GSM operations. RCOM has planned a suite of high end applications such as video telephony which are expected to be highly attractive to high-end 3G customers. Also, India is a low broadband penetration market with high growth potential. 3G data card services will be able to bridge the supply gap currently limited due to low fixed-line penetration in the country. RCOM has announced launch of pan India GSM services on December 30, 2008. RCOM believes that with a nationwide GSM network complementing its existing nationwide CDMA network it will be able to achieve No. 1 leadership position in the wireless space in India. With a nationwide GSM network, RCOM will be able to share growth opportunities in Indias GSM market, which constitutes 80% of the Mobility market and which has a very high churn rate. RCOM will be able to expand its market share in segments which are high VAS users (such as youth) and which are today mostly using GSM technology because of highly developed eco-system of GSM handsets in the country. This coupled with the existing leadership position in enterprise and NLD/ILD business, RCOM has the potential to become the undisputed leader in the Indian telecommunication sector. RCOM has also started upgrading its existing CDMA 1x network with EVDO technology at selective locations in the top 250 cities across India. RCOM believes that CDMA provides an edge in wireless data transfer and can be a very cost effective solution for high data

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ARPU customers. RCOM is already the leader in the wireless data card business in India through its CDMA 1x data cards; EVDO will strengthen this leadership further by providing consumers with much greater speed and superior SLAs. On January 31, 2009, the Board of Directors of Reliance Communications Limited had approved a Scheme for consolidation of Optic Fiber Division of the Company to Reliance Infratel Limited, a subsidiary of the Company.

Board of Directors (From Annual Report FY 2009):


Shri Anil D.Ambani Chairman Promoter, non-executive and non-independent Director Prof.J Ramachandran Independent Director Shri S.P.Talwar Independent Director Shri Deepak Shourie Independent Director Shri A.K.Purwar Independent Director

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3.4 Company Awards and Achievements:

Conferred the CEO of the Year 2004 in the Platts Global Energy Awards Rated as one of Indias Most Admired CEOs for the sixth consecutive year in the Business Barons TNS Mode opinion poll, 2004 Conferred The Entrepreneur of the Decade Award by the Bombay Management Association, October 2002 Awarded the First Wharton Indian Alumni Award by the Wharton India Economic Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas, December 2001 Selected by Asia week magazine for its list of Leaders of the Millennium in Business and Finance and was introduced as the only new hero in Business and Finance from India, June 1999. Awarded by Light Readings as the Person of the Year 2008 for outstanding achievements in the communication industry. Voted the Businessman of the Year in a poll conducted by The Times of India TNS, December, 2006. Voted the Best role model among business leaders in the biannual Mood of the Nation poll conducted by India Today magazine, August 2006. Awarded the First Wharton Indian Alumni Award by the Wharton India Economic Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas, December, 2001.

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Vision:
By 2015, be amongst the top 3 most valued Indian companies. Providing Information, Communication & Entertainment services, and being the industry benchmark. Customer Experience, Employee Centricity and Innovation.

Mission:
We will create world-class benchmarks by: Meeting and exceeding Customer expectations with a segmented approach. Establishing, re-engineering and automating Processes to make them customer centric, efficient and effective. Incessant offering of Products and Services that are value for money and excite customers. Providing a Network experience that is best in the industry. Building Reliance into an iconic Brand which is benchmarked by others and leads industry in Intention to Purchase and Loyalty. Developing a professional Leadership team that inspires, nurtures talent and propagates RCOM Values by personal example.

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3.5 Organization Structure

Reliance in the beginning used the modular structure. Reliance Industries, the parent company of Reliance Infocomm, is the largest private sector corporation in India with stakes in petroleum, petrochemicals, engineering, and finance. This scale of operations provided great leverage as the company ventured into telecommunications. Reliance Infocomm, in the initial stages, shared all Reliance resources to ensure cost effectiveness in every service that it provided. Reliance Infocomm operated out of existing Reliance Industries offices and utilized the capital and personnel resources to the extent possible. Reliance Engineering Associates Ltd, an associate company, made sure that the engineering and manpower costs were maintained at the bare minimum. In developed countries human resource costs account for 22% of a companys operating cost as against 5% in India. But Reliance Infocomm utilizes all their internal resources in large numbers which further reduces the cost. Later Reliance Infocomm centralized most of its operations. 80% of Reliance Infocomm administration and operation is centralized. Compared to the best telecom networks in the world they have deployed only half the number of people per 1,000 lines making their human resources the highest productive resource. Reliance also exploited the extensive petroleum distribution channels that it had set up in promoting and distributing Reliance Infocomm services.

External Environment:
At present Reliance Communication is in a very unstable and complex environment. Everyone in the market is seeking to expand and increase their subscriber base. Service providers are adding at an average of a million subscribers every month. New mobile technologies such as 3G, EDGE, and WIMAX are being introduced in India. The providers try their best to incorporate the new technologies in their services as soon as possible.

Global Expansion:
Within the first year of launch Reliance Infocomm entered the world markets. Its first step into global expansion was the purchase of UK based, Flag Telecom for $207 million, on October 16, 2003 (Telecom 2003). Flag Telecom is a leading provider of international

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wholesale network transport and communications services. By taking over Flag Telecom, Reliance Infocomm acquired its established customer base of more than 180 leading operators, including all of the top ten international carriers (Telecom 2003). It entered the US markets by purchasing Yapese Holdings Inc. for 300 million dollar cash on July 16, 2007. It bought 100% shares of Yapese Holdings Inc. by cash. Yapese is based in San Francisco. It is a provider of managed Ethernet and application delivery services, thus it offered Reliance an opportunity to tap a fast-growing market. Yapese had coverage to 14 metro cities in the United States, which Reliance plans to expand to 30 and also take it to Asia, Europe, Africa and the Middle East (ANI 2007).

Information as a Weapon:
To understand the market better than its competitors and provide superior service, all while growing at a swift pace Reliance Infocomm used information technology as a strategic weapon. To start with, it laid 60,000 kilometers of optical fiber network across India. The only way to manage the challenges was to establish a scalable and adaptable decision-support system (DSS) right away. They started their DSS even before their sales side was launched.

Ethics & Culture:


Reliance defines what is right and what is wrong, and then proposes doing the right thing. Reliance Infocomm believes that any business conduct can be ethical only when it rests on the nine core values of honesty, integrity, respect, fairness, purposefulness, trust, responsibility, citizenship and caring (Communications, Code Of Conduct 2006). Reliance Infocomm stimulated telecommunication growth in India by challenging many of the conventional practices in product design, distribution, sales, advertising and pricing. Reliance Infocomm sought to reduce the cost to the consumer, thus focusing on a market driven by volume. Reliance Infocomm managers saw that telecommunications would be much valued by the poorer sections of society if it could be used to create opportunities and offered at affordable prices. Thus it targeted a section of society which was unexplored by the other players of the market. Reliance Infocomm overcame most of the organizational problems it encountered on its way to success. It is still trying to overcome many organization problems. For instance the chairman of the company is planning for a re-organization to achieve better efficiency. With the help of steady organization development it has become Indias leading service provider with a huge number of customers. With one-sixth of the worlds population using their services they have the world in their hands.

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 4 & 5

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 4 & 5

1. AGE OF THE RESPONDENTS

RESPONSE A B C D TOTAL

FREQUENCY 20 16 12 13 61

PERCENTAGE (%) 33 26 20 21 100

35% 30% 25% 20% 15% 10% 5% 0%

33% 26% 20% 21%

< 18 Yrs 18-25 Yrs 25-35 Yrs > 35 Yrs

INTERPRETATION: The data obtained for this part reveal that 33% respondents are of age less than 18 years, 26% respondents are in between 18-25 years, 20% respondents are in between 25-35 years & 21% respondents are above 35 years. Source: Questionnaire

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 4 & 5

2. OCCUPATION OF THE RESPONDENTS

RESPONSE A B C D TOTAL

FREQUENCY 13 14 21 13 61

PERCENTAGE (%) 21 23 35 21 100

40% 35% 30% 25% 20% 15% 10% 5% 0%

35% 23%

21%

21%

Govt service

Private service

Student

Others

INTERPRETATION: The data obtained for this part reveal that 21% respondents are working as a government employee, 23% respondents are working as a private employee, 35% respondents are students & 21% respondents are others. Source: Questionnaire

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 4 & 5

3. DID YOU USE INTERNET

RESPONSE YES NO TOTAL


80% 60% 40% 20% 0% YES

FREQUENCY 40 21 61

PERCENTAGE (%) 66 34 100

66% 34%

NO

INTERPRETATION: The data obtained for this part reveal that 66% respondents are using internet & 34% respondents are not using internet.

Source: Questionnaire

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 4 & 5

4. DID YOU OFTEN GET CONNECTED TO INTERNET

RESPONSE YES NO TOTAL

FREQUENCY 28 33 61

PERCENTAGE (%) 46 54 100

56% 54% 52% 50% 48% 46% 44% 42%

54%

46%

YES

NO

INTERPRETATION: The data obtained for this part reveal that 46% respondents often get connected to internet & 54% respondents are not often getting connected to internet. Source: Questionnaire

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 4 & 5

5. PREFERENCE FOR PCMCIA CARD

RESPONSE YES NO TOTAL

FREQUENCY 32 29 61

PERCENTAGE (%) 52 48 100

53% 52% 51% 50% 49% 48% 47% 46%

52%

48%

YES

NO

INTERPRETATION: The data obtained for this part reveal that 52% respondents prefers to PCMCIA cards & 48% respondents do not prefer to PCMCIA cards. Source: Questionnaire

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 4 & 5

6. BUY FROM THE COMPANYS OWN OUTLET

RESPONSE YES NO TOTAL

FREQUENCY 30 31 61

PERCENTAGE (%) 49 51 100

52% 51% 50% 49% 48%

51% 49% YES NO

INTERPRETATION: The data obtained for this part reveal that 49% respondents buy their data cards from companys own Outlet & 51% respondents do not prefer to buy from its own outlet. Source: Questionnaire

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 4 & 5

7. BRANDS YOU ARE AWARE OF RESPONSE A B C D TOTAL FREQUENCY 20 13 13 15 61 PERCENTAGE (%) 33 21 21 25 100

40% 30% 20% 10% 0%


INTERPRETATION:

33% 21%

25% 21%

The data obtained for this part reveal that 33% respondents are aware of Reliance, 21% respondents are aware of Tata-Indicom, 21% respondents are aware of Airtel & 25% respondents are aware of BSNL. Source: Questionnaire

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 4 & 5

8. BRANDS WHICH YOU USE PERSONALLY

RESPONSE A B C D TOTAL

FREQUENCY 20 15 13 13 61

PERCENTAGE (%) 34 24 21 21 100

40% 30% 20% 10% 0%

34% 24% 21% 21%

INTERPRETATION: The data obtained for this part reveal that 34% respondents are using Reliance data cards, 24% respondents are using Tata-Indicom, 21% respondents are using Airtel & 21% respondents are using BSNL. Source: Questionnaire

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 4 & 5

9. DID YOU USE BECAUSE OF ITS EFFICIENCY RESPONSE YES NO TOTAL FREQUENCY 33 28 61 PERCENTAGE (%) 54 46 100

55% 50% 45% 40% YES

54% 46%

NO

INTERPRETATION: The data obtained for this part reveal that 54% respondents use because of its efficiency & 46% respondents think that it is inefficient. Source: Questionnaire

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 4 & 5

10. REASONABLE PRICE


RESPONSE YES NO TOTAL FREQUENCY 31 30 61 PERCENTAGE (%) 51 49

100

52% 51% 51% 50% 50% 49% 49% 48%

51%

49%

YES

NO

INTERPRETATION: The data obtained for this part reveal that 51% respondents think that its price is reasonable & 49% respondents think that its price is not reasonable. Source: Questionnaire

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 4 & 5

11. SATISFACTION LEVEL OF RESPONDENTS

RESPONSE YES

FREQUENCY 32 29 61

PERCENTAGE (%) 52 48 100

NO

TOTAL

53% 52% 51% 50% 49% 48% 47% 46%

52%

48%

YES

NO

INTERPRETATION:

The data obtained for this part reveal that 52% respondents have satisfaction & 48% respondents are not satisfied. Source: Questionnaire

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 4 & 5

12. WILL YOU PROMOTE OTHERS TO BUY THIS

RESPONSE YES NO TOTAL

FREQUENCY 30 31 61

PERCENTAGE (%) 49 51 100

52% 51% 51% 50% 50% 49% 49% 48%

51%

49%

YES

NO

INTERPRETATION: The data obtained for this part reveal that 49% respondents want to promote others & 51% respondents dont want to promote others. Source: Questionnaire

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 4 & 5

13. USING MORE THAN 1 INTERNET DATA CARD RESPONSE YES NO TOTAL

FREQUENCY 30 31 61

PERCENTAGE (%) 49 51 100

52% 51% 51% 50% 50% 49% 49% 48% YES 49%

51%

NO

INTERPRETATION: The data obtained for this part reveal that 49% respondents use more than 1 data card & 51% respondents use only one data card. Source: Questionnaire

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 4 & 5

14. CHOOSING AVAILABLE RESPONSE A B C D TOTAL

DIFFERENT

BRAND

WHEN

1st

PREFERNCE

IS

NOT

FREQUENCY 20 12 15 14 61

PERCENTAGE (%) 33 20 24 23 100

35% 30% 25% 20% 15% 10% 5% 0%

33% 24% 20% 23%

INTERPRETATION: The data obtained for this part reveal that 33% respondents prefer to use Reliance, 20% respondents prefer to use Tata-Indicom, 24% respondents prefer to use Airtel & 23% respondents prefer to use BSNL. Source: Questionnaire

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 4 & 5

15. CHOOSING DIFFERENT BRAND WHEN THE PRICE & TARIFF CHARGES INCREASES

RESPONSE A B C D TOTAL

FREQUENCY 22 12 13 14 61

PERCENTAGE (%) 36 20 21 23 100

40% 30% 20% 10% 0%

36% 20% 21% 23%

INTERPRETATION:
The data obtained for this part reveal that 36% respondents prefer to use Reliance, 20% respondents prefer to use Tata-Indicom, 21% respondents prefer to use Airtel & 23% respondents prefer to use BSNL. Source: Questionnaire

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 6

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 6


6.1 SUMMARY:
9 Most of the respondent to whom I contacted is students and some are Govt employees and some are private. 9 Majority of respondents to whom I contacted are using internet data cards. 9 The project analysis shows that most of the respondents often get connected to internet. 9 From the project analysis we came to that a majority of the respondents prefer to PCMCIA cards. 9 The project analysis shows that a large number of respondents are not willing to buy their cards from companys own outlet. 9 From the project analysis we came to know that majority of respondents are aware of reliance data card. 9 Among the respondents most of them were using reliance data cards personally. 9 Among the respondents most of them were agreed to its efficiency. 9 From the project analysis we came to know that its price is average. 9 The project analysis shows that respondents are satisfied with the data card. 9 The project analysis shows that a less number of respondents were using more than 1 data card.

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 6

6.2 SUGGESTIONS:

Network efficiency and validity of network should be improved. More offers should be introduced to retain customers especially during festival days. Reduction in the price rates for each plan. Need to improve more n more offers to attract the middle class people. Need to improve the services of the company. Need to improve additional benefits along with the data card. Need to have advertisement in local channels, languages. Need to increase the net speed of the data card. Need to increase the downloading capacity with the plans.

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 6

6.3 Recommendations:
Reliances Advertising has a major impact on its users. Reliance is successful in capturing the highest market share by adopting Celebrity Endorsement Strategy. This is to be continued with more developments. Reliance has the widest internet data cards range and the deepest product line in internet data card market, its also has broadband business as well as internet connection GPRS. This is a double edged sword because of the variety Reliance offer and the cannibalization that can occur. The segments thus formed and the components extracted indicate that different buyer groups have different decision variables, use data card for accessing internet for different purposes and have varied perceptions about brands. All the segments require different pricing strategies and hence Reliance should come out with different plans specifically targeting different groups. Reliance having several types of tariff plan but it would have improved network connectivity along with aggressive promotional strategies be an unbeatable advantage in upgrading the consumer throughout his lifetime and also making him brand loyal in the process. Reliance should aim at providing higher network coverage, good signal strength, and more efficient response requests. This could be done by setting up more network towers and having a more customer friendly focus in store as well out store activities. Our analysis indicates clearly that reliance is popular among the youth because of low usage rate. These users use data card mostly for entertainments. This target segment can be attracted by advertising in Television and internet. Also, word of mouth publicity clearly scores above all forms of information search, primarily because of its convenience and source credibility.

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

CHAPTER 6

6.4 FINDINGS:
From the analysis it can be concluded that reasonable market is occupied by Reliance data cards. From the survey it is found that the promotional activities take-up by Reliance is good. The survey states clearly that the services rendered by the company are satisfactory. It is clear from the analysis that the consumers prefer Reliance because of its qualities, effectiveness and brand image. From the survey it is found that many of the consumers are aware of Reliance. It is found that consumers belong to different occupations, family etc., are using reliance data card services. From the study conducted, it is clear that consumers main reason why they have opted data card is necessity, growing standard of living, awareness and growing competition are the main factors that have got the customers attracted to Reliance data card. From the survey, we come to know that price and services are considered as the major factors for opting to a particular brand.

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

BIBLIOGRAPHY

6.5 BIBLIOGRAPHY

Online websites:
www.rcom.co.in www.google.com

Broachers:
Broachers of Reliance Company

Books:
MARKETING MANAGEMENT ----PHILIP KOTLER

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

QUESTIONNAIRE

6.6 QUESTIONNAIRE
Name: _____________________________ Date: ______________________________

***************************************************

1. What is your age?


Less Than 18 18-25 years 25-35 years Greater Than 35

2. What is your occupation?


Government Service Private Service Student Others (please specify)

3. Did you use internet?


Yes No

4. Did you often get connected to Internet?


Yes No

5. Do you prefer to buy PCMCIA card?


Yes No

6. From company own outlet did you buy your data card?
Yes No

46
Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

QUESTIONNAIRE

7. Which brands of data card you are aware of?


Reliance Tata-Indicom Airtel BSNL

8. Which of the following brands did you use personally?


Reliance Tata-Indicom Airtel BSNL

9. Did you use this because of its efficiency?


Yes No

10. Do you think its price is reasonable?


Yes No

11. Have you satisfied with this product?


Yes No

12. Will you promote others to buy this?


Yes No

13. Have you used more than one internet data card?
Yes No

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Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

CONSUMER BEHAVIOR

QUESTIONNAIRE

14. If your FIRST preference is not available then which brand will you choose?
Reliance Tata-Indicom Airtel BSNL

15. If the price of your most preferred data card as well as tariff charges increases then which brand will you prefer?
Reliance Tata-Indicom Airtel BSNL

16. Your suggestions for reliance data card.


a) _________________________________________________________

Thank you for spending your valuable time.

48
Dr.JYOTHIRMAYIDEGREECOLLEGE,ADONI.DEPT.OFMANAGEMENT

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