Executive Summery: Study On Consumer Behaviour

STUDY ON CONSUMER BEHAVIOUR
EXECUTIVE SUMMERY
The study is oriented towards the consumer behavior of the existing and new
Vodafone subscribers and the study focuses on the pre-paid services which have been
offered by the company.
The study was conducted to gauge into the consumers mind and understand the
various consumption related aspects of individuals. The study of consumer behavior
will help to know the psychological, social and physical behavior of all potential
consumers as they become aware of evaluate, purchase, consume and tell others about
products and services.
The objectives of the study is to understand behavioral pattern of potential customer,
consumer perception, brand awareness, buying motives and their expectations and
satisfaction level to delight them.
Information is collected from different sources. The primary information is obtained
by interviewing the customers with the help of questionnaire. The secondary data is
collected from company records, through the help of external guide and also through
the visit of website of the company www.vodafone.com.
Sample size is limited to respondents, who are existing and new Vodafone consumers.
The questionnaire is analyzed with the help of tables and charts. Which may helps to
know about consumer perception, awareness and satisfaction level of the consumer.
Lastly the findings indicate that most of them are satisfied with the products and
services and suggestion to be implemented regarding, network, providing subsidized
rates for calling and messaging etc . tremendous. If the demand is rising in the same
pace then the company should be able to provide innovative products and value added
services to the subscribers.
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INDUSTRY PROFILE:
INDIAN TELECOM INDUSTRY
The Cellular Operators Association of India (COAI) was constituted in 1995 as a
registered, non-profit, non-governmental society dedicated to the advancement of
communication, particularly modern communication through Cellular Mobile
Telephone Services. With a vision to establish and sustain a world-class cellular
infrastructure and facilitate affordable mobile communication services in India,
COAI main objectives are to protect the common & collective interests of its
members.
COMPANY PROFILE
About Vodafone Essar Limited
Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced
operations in 1994 when its predecessor Hutchison Telecom acquired the cellular
license for Mumbai. Vodafone Essar now has operations in 16 circles covering 86% of
Indias mobile customer base, with over 34.1 million customers*.
Over the years, Vodafone Essar, under the Hutch brand, has been named the 'Most
Respected Telecom Company', the 'Best Mobile Service in the country' and the 'Most
Creative and Most Effective Advertiser of the Year'. Vodafone is the world's leading
international mobile communications company. It now has operations in 25 countries
across 5 continents and 40 partner networks with over 200 million customers
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worldwide. Vodafone has partnered with the Essar Group as its principal joint venture
partner for the Indian market.
The Essar Group is a diversified business corporation with interests spanning the
manufacturing and service sectors like Steel, Energy, Power, Communications,
Shipping & Logistics and Construction. The Group has an asset base of over Rs.400
billion (US$ 10 billion) and employs over 20,000 people.
*Figures from Cellular Operators Association of India, August 31, 2007.
Hutch is now Vodafone 19 September 2007
September 19, 2007: Vodafone, the worlds leading international mobile
communications company, has fully arrived in India. Vodafone Essar announced that
the Vodafone brand will be launched in India from 21st September onwards.
Vodafone, the worlds leading mobile telecommunication company, completed the
acquisition of Hutchison Essar in May 2007 and the company was formally renamed
Vodafone Essar in July 2007. "This transition is probably the largest brand change
ever undertaken in this country and arguably as big as any in the world. It is even
larger than thier previous brand transitions as it touched over 35 million customers,
across 400,000 shops and thousands of our own and our business associates'
employees."
THE TOP MANAGEMENT
Asim Ghosh, Managing Director, Vodafone Essar
Harit Nagpal, Marketing and New Business Director, Vodafone Essar
Samuel Selvakumar, Chief Executive Officer, Vodafone Essar
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STATEMENT OF THE PROBLEM
The study was made on consumer behavior of existing and new Vodafone subscriber.
The main aim of the research is to analyze behavior of existing and new Vodafone
subscriber to meet their preferences and expectations. To know, perception and
satisfaction level of Vodafone services and products. The study of consumer behavior
will help to gauze the consumers mind and understand the various consumption
related aspects of individuals. Understanding of consumer behavior will make the
study of marketing management more interesting, understandable and increase
awareness of its practical implications.
OBJECTIVES 0F THE STUDY:
To understand consumer perception about products and services.
To understand the consumers satisfaction level about products and services.
To know the market potential of Vodafone products and services.
To analyze the brand awareness.
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SCOPE OF THE STUDY
The study is carried out to know the fallowing aspects.
To assess, the consumers needs and wants.
To predict, the consumers acceptance of firms various informational and
Environmental cues.
To gauge into the consumers mind and understand different consumption
related aspects, of individuals.
To know the percentage of usage of value added services.
To understand, behavior, of brand loyal consumer.
To understand, behavioral pattern of potential consumer.
To analyze, the buying motives of the consumers, while making their purchase
decisions.
To understand, expectations and satisfaction level, of consumers.
A study of this kind helps to put theoretical aspects into the project and aims to give
information. Nature of the study methods used, findings of the investigation,
conclusions, and recommendations inferred from the findings aims to enable
Vodafone to implement the recommendations made at the end of the study.
The research is purely based on the survey conducted in Bangalore city and has been
focused on Vodafone subscribers. The number of respondents intervened is 100.The
study covers information about customer brand preference, brand awareness, service
attributes, etc. Overall scope of the study would be to enhance the services to the
subscribers, in the city
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RESEARCH METHODOLOGY:
SOURCES OF DATA:.
PRIMARY DATA:
. For the purpose of collecting the same, 100 respondents have been randomly
selected. Even the response of the respondents was taken into consideration
SECONDRY DATA
. Few of the main sources of secondary data include newspapers, business journals,
magazines, internet and company reports, etc.
SAMPLE DESIGN:
. Random Sampling gives every unit of the population a known and probability of
being selected. Since random sampling implies equal probability to every unit in the
population, it is necessary that the selection of Bangalore city only.
SAMPLE SIZE:
The sample size for the survey is 100 respondents of which 50 are Existing
VODAFONE Subscribers and 50 are New VODAFONE Subscribers.
SAMPLE UNIT
One of the units into which an aggregate is divided or regarded as divided for the
purpose of sampling, each unit being regarded as individual and indivisible when the
selection is made. The definition of unit may be made on some natural basis for
example households, persons, units of product, etc. Hence, in the study the sample
unit is Respondents who are Prepaid Vodafone Subscribers.
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TOOLS AND TECHNIQUES OF DATA COLLECTION:
The following sampling techniques have been implemented:
1)Personal Interviews:
2)Questionnaire:
3)FIELD WORK
This project involved a field work where in the survey is conducted by having a
personal interaction with 100 subscribers who are VODAFONE subscribers. Personal
interaction has been carried out and the information sought as was required in the
questionnaire for the purpose of data processing and analyzing. The respondents have
been directly contacted.
METHODOLOGICAL ASSUMPTIONS
For the purpose of the study the following assumptions have been made.
o It has been assumed that the information given by the respondents are
authentic, bonfire and genuine.
o The sources of the data are the basis, from which the actual required
information can be extracted.
o The sampling procedure adopted will help in choosing an appropriate sample
that truly represents that actual population.
o It has also been assumed that interview-questionnaire is more suitable for
collecting data for
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DATA ANALYSIS AND INTERPRETATION
Data analysis and interpretation about the research is carried out by using tables and
Charts like pie charts and bar charts etc.
PROFILE OF THE RESPONDENTS OF NEW VODAFONE SUBSCRIBERS
TABLE 1
Profile of the respondents based on Gender.
GENDER NO OF RESPONDENTS PERCENTAGE

Male 45 90%
Female 5 10%
TOTAL 50 100%
Inference:
From above table it can be inferred that 90% of the respondents are MALE and
The rest are 10% FEMALE.
Interpretation:
Further from the inference the researcher can interpret that majority of the
respondents are male
TABLE 2
Profile of the respondents based on age group.
AGE GROUP NO OF RESPONDENTS PERCENTAGE
<18 yrs 3 6%
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18 to 29 yrs 38 76%
30 to 40 yrs 6 12%
>40 yrs 3 6%
TOTAL 50 100%
INFERENCE:
From the above table it can be inferred that
76% of the respondents are of age group 18 to 29 years.
6% of the respondents are of less than 6 years and more than 6 years.
INTERPRETATION:
From the above researcher interpret that majority of the respondents are of the age
group 18 to 29 years.
TABLE 3
Profile of the respondents based on Occupation.
OCCUPATION NO OF RESPONDENTS PERCENTAGE
Student 36 72%
Salaried 9 18%
Businessmen 2 4%
Others 3 6%
TOTAL 50 100%
INFERENCE:
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72% of the subscribers are students.
18% of the subscribers are salaried.
4% of the subscribers are businessmen.
6% of the subscribers are others.
ITERPRETATION:
From the above inference it is clear that large no of subscribers are students.
TABLE 4
Profile of the respondents based on Brand-sequence.
BRAND NO OF RESPONDENTS PERCENTAGE
Airtel 20 40%
Vodafone 15 30%
Spice 7 14%
Relience 4 8%
BSNL 3 6%
Tata indicom 1 2%
TOTAL 50 100%
INFERENCE:
40% of the respondents recalled Air-Tel, first in brand sequencing.
30% of the respondents recalled Vodafone, first in brand sequencing.
14% of the respondents recalled Spice, first in brand sequencing.
INTERPRETATION:
From the above, researcher can interpret that most of the subscriber recall the brand
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Which, they use. Hence majority of the subscribers prefer Air-Tel followed by
Vodafone, Spice, Reliance, and BSNL.
TABLE 5
Profile of the respondents based on Brand-Switching.
RESPONSE NO OF RESPONDENTS PERCENTAGE
Yes 20 40%
No 30 60%
TOTAL 50 100%
INFERENCE:
40% of the respondents switch their brand.
60% of the respondents do not switch their brand.
INTERPRETATION:
From the above, researcher can interpret that most of the subscribers are loyal to their
brand and there is small percentage of subscribers who switch their brand.
TABLE 6
Profile of the respondents-who were Brand-Switched.
BRAND NO OF RESPONDENTS
Air Tel to Vodafone 10

Spice to Vodafone 5
Relience to Vodafone 5
Indicom to Vodafone 0
TOTAL 20
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INFERENCE:
From the above it can be inferred that 40% of the respondents switched brands.
The above table depicts that
10 out of 20 respondents switched brand from Air-Tel to Vodafone.
5 out of 20 respondents switched brand from Spice to Vodafone
5out of 20 respondents switched brand from Relience to Vodafone.
INTERPRETATION:
From the above, researcher can interpret that there is cut-throat competition between
Vodafone and Air-Tel. When compared Air-Tel has gained a lot by its good network
than Vodafone.
TABLE 7
Profile of the respondents based on Service features.
PARAMETERS NO OF RESPONDENTS PERCENTAGE
Value Added Services 4 8%

Network 20 40%
Tariff 22 44%
Customer Care 3 6%
Others 1 2%
TOTAL 50 100%
INFERENCE:
From the above table it is inferred that
44% of the respondents opted Vodafone because of Tariffs.
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40% of the respondents opted Vodafone because of Network.
8 % of the respondents opted Vodafone because of VAS.
6% of the respondents opted Vodafone because of Customer-care.
INTERPRETATION:
From the above, researcher can interpret that Tariff is the unique selling proposition
For Vodafone followed by others such as advertisements, family and friendsetc
PROFILE OF THE RESPONDENTS OF EXISTING
Vodafone, SUBSCRIBERS.
TABLE 8
Profile of the respondents based on Gender.
GENDER NO OF PERCENTAGE
RESPONDENTS
Male 44 88%
Female 6 12%
TOTAL 50 100%
Inference:
From above table it can be inferred that 88% of the respondents are MALE and
The rest are 12% FEMALE.
Interpretation:
Further from the inference the researcher can interpret that majority ofrespondents are
males.
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TABLE 9
Profile of the respondents based on age group.
AGE GROUP NO OF PERCENTAGE

RESPONDENTS
<18 yrs 5 10%
18 to 29 yrs 35 70%
30 to 40 yrs 6 12%
>40 yrs 4 8%
TOTAL 50 100%
INFERENCE:
10% of the respondents are of less than 18 years and 8% are more than 40 years.
INTERPRETATION:
From the above researcher interpret that majority of the respondents are of the age
group 18 to 29 years.
TABLE 10
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Profile of the respondents based on Occupation.
OCCUPATION NO OF PERCENTAGE
RESPONDENTS
Student 34 68%
Salaried 13 26%
Business 2 4%
Others 1 2%
TOTAL 50 100%
INFERENCE:
68 % of the subscribers are students.
26% of the subscribers are salaried.
4% of the subscribers are businessmen.
2% of the subscribers are others.
ITERPRETATION:
From the above inference it is clear that large no of subscribers are students.
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TABLE 11
Profile of the respondents based on Brand-Switching.
RESPONSE NO OF PERCENTAGE
RESPONDENTS
YES 11 22%
NO 39 78%
TOTAL 50 100%
INFERENCE:
22% of the respondents switch their brand.
78% of the respondents do not switch their brand.
INTERPRETATION:
From the above, researcher can interpret that most of the subscribers are loyal to their
brand and there is small percentage of subscribers who switch their brand.
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TABLE 12
Profile of respondents, who, Switched Brand.
BRAND NO OF
RESPONDENTS
Vodafone to Air -Tel 7
Spice to Vodafone 4
Vodafone to reliance 0
Vodafone to Tata 0
TOTAL 11
INFERENCE:
From the above it can be inferred that 22% of the respondents switched brands.
The above table depicts that
7 out of 11 respondents switched brand from Air-Tel to Vodafone.
4 out of 11 respondents switched brand from Spice to Vodafone
INTERPRETATION:
From the above, researcher can interpret that there is cut-throat competition between
Vodafone and Air-Tel. When compared Air-Tel has gained a lot by its good network
than Vodafone .
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TABLE 13
USER SATISFACTION LEVEL
Profile of the respondents based on
Particulars Fully Satisfied Neutral Dis Fully

satisfied satisfied dissatisfi
ed
Tariffs 6 20 10 10 4
Network 4 16 25 5 0
Customer care 10 20 10 8 2
Availability of SIM 15 21 10 3 1
and R-Coupons
Roaming 8 10 15 10 7
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USER SATISFACTION LEVEL
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TABLE 14
PROFILE OF THE RESPONDENTS BASED ON OVERALL

RATING
PARAMETERS NO OF PERCENTAGE
RESPONDENTS
Excellent 8 16%
Very Good 10 20%
Good 30 60%
Poor 2 4%
Very poor 0 0%
TOTAL 50 100%
INFERENCE:
From the above TABLE it can be inferred that
60% of the respondents rate good.
20% of the respondents rate very good.
16% of the respondents rate excellent.
4% of the respondents rate poor.
INTERPRETATION:
From the above, researcher can interpret that by considering all factors like tariffs,
Network, customer care, roaming service, etc the overall rating of Vodafone is good.
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Graph
PROFILE OF THE RESPONDENTS BASED ON OVERALL

RATING
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RESEARCH FINDINGS
Generally most of the subscribers are students and teenagers.
Majority of the subscribers recalled the brands they used.
The tariffs plan, advertisements and family and friends had huge impact over
the subscribers. Most of them opted to Vodafone because it is cost effective.
Roaming services on pre-paid cards are highly utilized.
Majority of the subscribers prefer Vodafone when compared to competitors,
because they feel Vodafone is economical.
60% of the respondents said Vodafone is good.
78% of the respondents do prefer to switch their brand.
The network coverage of Vodafone is not as effective as it provides services
on 900 MHz, 1800MHz,
OBSERVATIONS:
Its observed that most of the subscribers are students and teenagers.
Its observed subscribers recalled the brand which they use.
Its observed that brand switching was not on large scale.
Its is observed that tariffs plans, promotions of the company and influence of
Social
Circle had huge impact over the subscribers.
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SUGESTIONS, FOR IMPROVEMENT OF VODAFONE SERVICES.
Vodafone is providing very good service to its customers and it is one of the
best service providers for telecommunication, it has to make use of its
resources optimally.
In addition to implementing the suggestions given by customers, Vodafone
should follow the following steps to maximize profits, by means of customer
satisfaction in an effective manner.
Respondents suggest that overall service is not satisfactory and not meeting
the customer expectations or satisfaction level.
Network is the main factor for customer dissatisfaction, majority of the
respondents suggested to increase the number of towers ,widen the coverage to
villages and network congestion.
The tariffs have to be consistent for quite some time in order to avoid the
confusion among subscribers.
More quickly accessible contact numbers for customer care (increase no of
lines) promote them in order make the user aware of the facility.
Provide subsidized rates for calling or messaging to one or two numbers of our
choice.
Provide good plans, schemes, and packages in order to have the customer with
wide choice.
Keep the subscriber well informed about any deductions or any change in the
plan and provide the value for what the customer is paying for.
Customers grievances should be dealt more quickly and immediately.
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CONCLUSION:
Going mobile is the craze today!!
Now buying mobile is not a rich mans possession any more. The mobile industry is
on whopping high. With various technologies creeping in every day you always are on
a back seat to keep your self updated. With a major chunk of the users being teenagers
it makes the situation more dynamic and he helps to create a niche market in itself.
Looking at the trends in mobile segment, the growth is tremendous. Various cellular
providers try to be innovative in providing value added services to the subscribers. If
the demand is rising in the same pace then it is sure that the subscriber base of the
mobile users will definitely exceed the limit of the land line subscribers.
This report helps in knowing the consumer behavior of the Vodafone subscribers and
what perception customers have about the brand Vodafone . With its report
company can capture its loose pools or weaknesses and convert them in to their
strengths and opportunities.
From the above study we come to the conclusion that in case of parameters of
selection, customer or subscriber will first look at the tariffs, network coverage and
then other parameters. The subscribers also expect the company to give in detail
information of the service they are availing.
An effective sales person has to be employed in order to influence the buyer decision.
The company should have exciting offers with the service they provide
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VODAFONE TELECOM
Brand Name: Vodafone
Network: GSM 900, GSM 1800, GPRS, EDGE
Network Coverage: 14 Telecom Circles
Subscriber base: > 5 million
Subscriptions: Post Paid,Pre paid
BIBLIOGRAPHY
Portals/Websites:
www.vodafone.com
www.airtelworld.com
www.businessworldindia.com
www.tekesnets.com
Business Journals:
Business world
Business today
News papers:
Times of India
Economic times
Books referred:
Consumer Behavior in Indian Perspective.

Himalaya Publishing House-Suja R. Nair
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STUDY ON CONSUMER BEHAVIOUR

offered by the company.

various consumption related aspects of individuals. The study of consumer behavior

products and services.

The objectives of the study is to understand behavioral pattern of potential customer,

satisfaction level to delight them.

Information is collected from different sources. The primary information is obtained

the visit of website of the company www.vodafone.com.

services and suggestion to be implemented regarding, network, providing subsidized

services to the subscribers.

INDIAN TELECOM INDUSTRY

The Cellular Operators Association of India (COAI) was constituted in 1995 as a

registered, non-profit, non-governmental society dedicated to the advancement of

communication, particularly modern communication through Cellular Mobile

Telephone Services. With a vision to establish and sustain a world-class cellular

infrastructure and facilitate affordable mobile communication services in India,

About Vodafone Essar Limited

Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced

Indias mobile customer base, with over 34.1 million customers*.

international mobile communications company. It now has operations in 25 countries

partner for the Indian market.

manufacturing and service sectors like Steel, Energy, Power, Communications,

billion (US$ 10 billion) and employs over 20,000 people.

*Figures from Cellular Operators Association of India, August 31, 2007.

Hutch is now Vodafone 19 September 2007

September 19, 2007: Vodafone, the worlds leading international mobile

Vodafone, the worlds leading mobile telecommunication company, completed the

THE TOP MANAGEMENT

Asim Ghosh, Managing Director, Vodafone Essar

Harit Nagpal, Marketing and New Business Director, Vodafone Essar

Samuel Selvakumar, Chief Executive Officer, Vodafone Essar

STATEMENT OF THE PROBLEM

subscriber to meet their preferences and expectations. To know, perception and

related aspects of individuals. Understanding of consumer behavior will make the

study of marketing management more interesting, understandable and increase

awareness of its practical implications.

OBJECTIVES 0F THE STUDY:

To understand consumer perception about products and services.

To understand the consumers satisfaction level about products and services.

To know the market potential of Vodafone products and services.

To analyze the brand awareness.

SCOPE OF THE STUDY

The study is carried out to know the fallowing aspects.

To assess, the consumers needs and wants.

To predict, the consumers acceptance of firms various informational and

To gauge into the consumers mind and understand different consumption

related aspects, of individuals.

To know the percentage of usage of value added services.

To understand, behavior, of brand loyal consumer.

To understand, behavioral pattern of potential consumer.

To understand, expectations and satisfaction level, of consumers.

information. Nature of the study methods used, findings of the investigation,

conclusions, and recommendations inferred from the findings aims to enable

Vodafone to implement the recommendations made at the end of the study.

focused on Vodafone subscribers. The number of respondents intervened is 100.The

subscribers, in the city

magazines, internet and company reports, etc.

population, it is necessary that the selection of Bangalore city only.

VODAFONE Subscribers and 50 are New VODAFONE Subscribers.

unit is Respondents who are Prepaid Vodafone Subscribers.

TOOLS AND TECHNIQUES OF DATA COLLECTION:

The following sampling techniques have been implemented:

been directly contacted.