Business Analytics

Project Report
on
ANALYSIS OF LINKAGE BETWEEN CUSTOMER
ENGAGEMENT AND CUSTOMER SATISFACTION OF THE
COMPANY (BSNL)

Group 4

AASHI GAHOI 202011041

KUMAR RITHVIK 202012059
SIMRAN RAGHANI 202021017
RUCHIT GUPTA 202021024
KRUNAL KAMDI 202032046

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 Index

Sl. No. Topic Page No.

1 Telecom sector in India 3

2 BSNL 4

3 Objective of Study 5

4 Literature Review 6

5 Methodology 7

6 Analysis and Interpretation 10

7 Conclusion 17

8 Biblography 18

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 INDUSTRY/COMPANY PROFILE

Telecommunication sector in India:

With its vast population, India happens to be the second-largest telecommunication market in the
world while also being the second largest in terms of internet subscribers. The
telecommunication sector in India can broadly be classified into three broad spectrums:-

 Wireless

 Wireline

 Internet services

The wireless market segment accounts for 98.25 percent of the total subscriber base as of
January 2020. Rural subscribers accounted for 43.69 percent of total telephone subscribers as of
January 2020. The gross revenue was 17.39 billion US dollars till September 2019. There has
been strong backing in the form of policy support from the government, which has been a crucial
factor in the sector's development. Foreign Domestic income has been further increased from 74
percent to 100 percent.

The telecom sector exhibited strong growth over the last few years on the back of strong
consumer demand and supportive policies of the Government of India. The government has
ensured fair competition among service providers and a fair and proactive regulatory framework
that has resulted in telecom services being available to consumers at affordable prices. Further, it
has made sustained efforts at encouraging telecom equipment manufacture. The deregulation of
Foreign Direct Investment norms has led to an increase in FDI in the sector.

India is currently the world's second-largest telecommunications market with a subscriber base of
1.18 billion. India's growing mobile economy now constitutes about 98% of all telephone
subscriptions. The mobile industry has witnessed exponential growth over the last few years,
driven by affordable tariffs, wider availability, the roll-out of Mobile Number Portability (MNP),
expanding 3G and 4G coverage, evolving consumption patterns, and supportive policy and
regulatory environment. As per a GSMA report, the mobile industry supports about 6.5% of
India's GDP. The figure accounts for both the direct economic activity generated by mobile
operators and an indirect effect on the rest of the economy resulting from increased use of mobile

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technology by individuals and firms. The Telecom industry contribution to GDP is expected to
reach 8.2% by 2020.

BSNL

Bharat Sanchar Nigam Limited (BSNL) was formed on 1st October 2000 by Corporatisation
of the erstwhile Department of Telecom Operations & Department Telecom Services. The
company has taken over the functions of the Department of Telecom in respect of the provision
of telecom services across the length and breadth of the country, excluding Delhi and Mumbai.
BSNL has a large workforce of around 1.53 lakh as on 04.12.2019. BSNL is fully controlled by
Government of India

BSNL provides all types of telecom services, namely wireline, Mobile, Broadband, Internet,
leased circuits, and long-distance telecom service. The company has also been at the forefront of
technology with a 100% digital technology switching network. BSNL nation-wide telecom
network covers all District headquarters, Sub-Divisional headquarters, Tehsil headquarters, and
almost all the Block Headquarters.

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 OBJECTIVE OF STUDY

 To Study The Analysis Of Linkage Between Customer Engagement and Customer

Satisfaction

 To Collect primary data of BSNL users

 To study and analyse various statistical test such a Box Plot test , Normality test

 To find out the managerial implications and recommendations for the company BSNL

based on the results of the tests performed

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 LITERATURE REVIEW

Customer engagement

The concept of customer engagement has been borrowed from multiple disciplines of social
sciences like psychology, sociology, political science, and organizational behavior (Hollebeek,
2011). Brodie et al. (2011) defined it "as a psychological state that occurs by interactive, co-
creative customer experiences with a focal agent in a focal service relationship." Customer
engagement, in the online webspace, studied by Mollen and Wilson (2010) also stressed on the
cognitive and affective commitment to a dynamic relationship with the web pages.
Conceptualizing the CU (customer experience) scale, Vivek, Beatty, and Morgan (2012) defined
it as "the intensity of an individual's participation in and connection with an organization's
offerings and organizational activities, which either the customer or the organization initiate."

Customer Engagement behavioral manifestation

Customer engagement goes beyond the purchase and generates certain behaviors such as
referrals and recommendations of certain products and services (Brodie et al., 2011). Van Doorn
et al. (2010) also focused on the behavioral manifestation of customer engagement, stating that
increased customer engagement increases brand advocacy. The various conceptualizations of
Customer engagement are integrated by Vivek, Beatty, and Morgan (2012) in their three-
dimensional view of CE constituting conscious Attention, enthused participation, and social
connection. The 10 – item scale developed by them will be used in this paper to assess the level
of customer engagement among Indian consumers in the telecom sector.

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 METHODOLOGY

Data Collection & Sampling

Most of the samples are collected from the age group (20-30 years).

Sample Population Type Platform (Google form) Number of respondents

(Online-Offline)
Below 20 years 11
20-30 years 287
Online 30-40 years 17
40-50 years 8
Above 50 years 7

Hypothesis and variables

H1: Social Connection has a direct relationship with the customer satisfaction level

H2: Enthused participation has a direct relationship with the customer satisfaction level

H3: Conscious Attention has a direct relationship with the customer satisfaction level

To assess the Customer engagement level among BSNL users, we have used a 10 item scale
comprising three constructs having ten items in total:

Concept Items to describe the concept

Conscious Attention 3
Enthused Participation 4
Social Connection 3

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Sample Profile

We got responses from around 330 people out of which statistical tests were conducted on 300
(the rest were removed following the outliers contingency)

Some of the key stats from the form responses are

i. Gender

ii. Age

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 iii. Occupation

Here we have further analyzed the responses of only those respondents who have used the BSNL
services, which come out to be 300 out of a total of 330 responses.

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 ANALYSIS AND INTERPRETATION
Box-Plot Test
This is the easiest way to detect outliers. Here, we will get a box plot that gives two extreme
limits such that any case located outside the maximum and minimum limits will be the outliers.
A Box plot is not always the best way to test outliers.
We have two other tests from which we can determine whether our data is normally distributed
or not:
Skewness: It is a measure of symmetry or, more precisely, the lack of symmetry. Distribution is
symmetric if it looks the same to the left and right of the center point. Skewness value must lie
between -1 to +1 to consider a dataset to be near normally distributed
Kurtosis: It is a measure of whether the data is heavy-tailed or light-tailed relative to a normal
distribution. Kurtosis should lie between -2 to +2 for data to be normally distributed

Now let us check the outliers and normality for different variables for doing further analysis:

Enthused Participation:

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  For this, we have no outliers in Conscious attention data

Conscious Attention:

 For this, we have no outliers in Conscious attention data

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Social_Connection:

 For this, we have no outliers in Social Connection data

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Overall_Satisfaction:

 Here the outliers are there, but we there are no * outliers which create the maximum
problem
 Also, Skewness = 0.497, which is within the range of -2 to +2, and Kurtosis = -0.115,
which is within the range of -1 to +1. So we can consider this distribution
 Both the Shapiro Wilk and Kolmogorov Smirnov Test are significant

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 Multiple Linear Regression

Multiple linear regression (MLR), also known simply as multiple regression, is a statistical
technique that uses several explanatory variables to predict the outcome of a response variable.
The goal of multiple linear regression (MLR) is to model the linear relationship between the
explanatory (independent) variables and response (dependent) variable.

To test the hypothesis H1, H2, and H3.

Here,

Dependent variable:- Overall_Satisfaction

Independent variables:- Conscious_Attention, Enthused_Participation, and Social_Connection

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From this, we can say that Overall satisfaction is moderately correlated with Enthused
participation and have a low correlation of 0.170 and 0.147 with Conscious Attention and
Social_Connection, respectively.

Also, the independent variables are not highly correlated; therefore, the problem of
multicollinearity is not there.

The R-square and adjusted R-square are about 0.50, indicating that the model explains about 50
percent of the variation in the overall satisfaction among BSNL customers
Moreover, in the ANOVA table, as the significance value is less than 0.05, hence the model is fit
for linear regression.

VIF value is very low at 1.3, so there is no issue of multicollinearity

Moreover for the coefficients of the following variables can be deduced from the following table

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 1. Enthused participation : unstandardized B (2.242) is significant ( p value 0.00)
2. Conscious Attention: unstandardized B(-0.447) is significant ( p-value of the t-test less
than 0.05 )
3. Social connection: unstandardized B (0.201 ) is not significant and is close to zero ( p-
value is greater than 0.05)
Hence apart from the social connection, both other variables have some effect on the satisfaction
level of the consumers

Regression equation:

Satisfaction level = -0.340 + (2.242) (Enthused Participation) + (-0.447) (Conscious

Attention)

Final statistical results

Hypothesis Alternate hypothesis Result

H1 Social Connection has a direct The social connection does not
relationship on the customer affect the customer satisfaction
satisfaction level level, i.e., we fail to reject the null
hypothesis
H2 Enthused participation has a direct Enthused Participation has a direct
relationship on the customer effect on the customer satisfaction
satisfaction level level, i.e., we reject the null
hypothesis
H3 Conscious Attention Positively has Conscious attention has a direct
a direct relationship on the ( negative ) effect on the customer
customer satisfaction level satisfaction level, i.e., we reject the
null hypothesis

Conclusion
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Since the Social Connection construct does not have any direct effect on the customer

satisfaction level of the BSNL customers, BSNL can forfeit the marketing efforts like referrals,

etc. and must focus more on improving the customer experience of BSNL customers as the latter

has a profound effect on increasing customer satisfaction towards BSNL. BSNL can do this by

improving all the modes of customer engagement – be it BSNL websites or apps. The BSNL

must also train its front line staff who are directly involved in managing customer queries and

complaints.

Also, they can take the help of new emerging technologies like AI chatbox to reduce the waiting

time for query response. The branding of the BSNL must be revamped so that the customers

perceive it as a modern brand that has a personalized element attached to it.

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 BIBLOGRAPHY

1. Vivek, Shiri D., Sharon E. Beatty, and Robert M. Morgan (2012), "Customer
Engagement: Exploring Customer Relationships Beyond Purchase," Journal of
Marketing Theory and Practice, 20 (2), 127–149.
2. Van Doorn, Jenny (2011), "Customer Engagement: Essence, Dimensionality, and
Boundaries," Journal of Service Research, 14 (3), 280–382.
3. Mollen, Ann, and Hugh Wilson (2010), "Engagement, Telepresence, and Interactivity in
Online Consumer Experience: Reconciling Scholastic and Managerial Perspectives,"
Journal of Business Research, 63 (9–10), 919–925.
4. Hollebeek, Linda D. (2011), "Demystifying Customer Engagement: Exploring the
Loyalty Nexus," Journal of Marketing Management, 27 (7–8), 785–807.
5. Gambetti, Rossella C., and Guendalina Graffigna (2010), "The Concept of Engagement:
A Systematic Analysis of the Ongoing Marketing Debate," International Journal of
Market Research, 52 (6), 801–826.
6. Brodie, Roderick J., and Linda D. Hollebeek (2011), "Advancing and Consolidating
Knowledge About Customer Engagement," Journal of Service Research, 14 (3), 283–
284.
7. Keller, K.L. (1993), "Conceptualizing, measuring, and managing customer-based brand
equity," The Journal of Marketing, Vol. 57 No. 1, pp. 1-22.
8. Sirgy, M.J. (1985), "Using self-congruity and ideal congruity to predict purchase
motivation," Journal of Business Research, Vol. 13No. 3, pp. 195-206.
9. Maklan, S. and Klaus, P. (2011), "Customer experience: are we measuring the right
things?" International Journal of Market Research, Vol. 53 No. 6, pp. 771-792.
10. Goyal, E. and Srivastava, S. (2015), "Study on customer engagement model-banking
sector," SIES Journal of Management, Vol. 11No. 1, pp. 51-58.
11. Miguel Ángel Moliner, Diego Monferrer-Tirado and Marta Estrada-Guillén (2018),’
Consequences of customer engagement and customer self-brand connection.”

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