CONTENTS

TITLE

PAGE NO.

INTTODUCATION TO IDEA

1-4

MAJOR EVENTS

4-10

BOARD OF DIRECTORS

10-13

CONSUMER BEHAVIOUR

14-17

REVIEW OF LITRATURE

18-22

OBJECTIVES OF THE PROJECT

23-23

SCOPE OF THE STUDY

24 -24

NEED OF THE STUDY

25-25

REASERCH METHODLOGY

26-27

DATA ANALYSIS AND INTERPOTATION

28-49

OBSERVATIONS AND FINDINGS

50-50

LIMITATIONS OF THE STUDY

51-51

RECOMMENDATIONS / SUGGESTIONS

52-53

OPPERUNITIES

54-54

CONCLUSION OF THE STUDY

55-55

QUESTNARIES

56-59

REFRENCE

60-60

DECLARATION
I RAM PARSHAD, The student of MBA(IC) 3 rd in the Punjabi University School of
Business Studies, Guru Kashi Campus, Talwandi Sabo have completed my traning in
IDEA CELLULAR LTD. MOHALI for the period of 12 to 14 weeks and submitted my
training project of CUSTOMER BEHAVIOUR TOWORDS IDA CELLULAR as
assigned by the company to me as a part of MBA(IC) 3RD.
Further I want to convey that no copy of this project is submitted by me in other
university for award of any other degree or diploma etc.

RAM PARSHAD

INTRODUCTION TO IDEA

IDEA Cellular is a publicly listed company, having listed on the Bombay Stock Exchange
(BSE) and the National Stock Exchange (NSE) in March 2007.
Idea is the 3rd largest mobile services operator in India, in revenue terms, and recorded a
subscriber base of over 93.75 mn as of 31st May 2011. It became a pan-India integrated
GSM operator covering the entire telephony landscape of the country, and expanded its
NLD and ILD operations in FY 2010. During the year, Idea increased its revenue market
share by over 1%, despite stiff tariff war in the market.
The company has won license to offer 3G services in 11 service areas, which generate
over 81% of the companys total revenue. Ideas 3G services will be launched in the year
2011.
Ideas strong growth in the Indian telephony market comes from its deep penetration in
the non-urban and rural markets. Idea has the highest share of rural subscribers as a
percentage of total subscribers, amongst other GSM players. In fact, two out of every
three new subscribers now come from non-urban market.
Ideas innovative and revolutionary VAS offering has been a major growth driver. Be it
Mobile TV, which was launched for the first time in India on the Idea network;
exhaustive Music library in multiple languages; DTs/ RBTs; and other content download
from the world of Cinema, Music, Cricket etc. Idea has consistently grown its VAS
revenue. Its revenue share of VAS is now higher than the industry average.
Idea offers seamless coverage to roaming customers traveling to any part of the country,
as well as to international traveling customers across over 200 countries. Ideas
partnership with over 400 operators ensures that customers are always connected while
on the move, within the country or other parts of the world.
IDEA is the winner of The Emerging Company of the Year Award at The Economic
Times Corporate Excellence Awards 2009. IDEA Cellular also received the prestigious
Avaya Global Connect Award for being the Most Customer Responsive Company in the
Telecom sector in the year 2010. The company has received several other national and

international recognitions for its path-breaking innovations in mobile telephony products

& services. It won the GSM Association Award for Best Billing and Customer Care
Solution for 2 consecutive years. It was awarded Mobile Operator of the Year Award
India for 2007 and 2011 at the Annual Asian Mobile News Awards.
IDEA Cellular is an Aditya Birla Group Company, Indias first truly multinational
corporation. The group operates in 26 countries, and is anchored by over 130,600
employees belonging to 40 nationalities. The Group has been adjudged the 6th Top
Company for Leaders in Asia Pacific Region in 2009, in a survey conducted by Hewitt
Associates, in partnership with The RBL Group, and Fortune. The Group has also been
rated The Best Employer in India and among the Top 20 in Asia by the HewittEconomic Times and Wall Street Journal Study 2007.
We were incorporated as Birla Communications Limited on March 14, 1995 and granted
a certificate of commencement of business on August 11, 1995. Our registered office
was in Mumbai, Maharashtra. Our name was changed to Birla AT&T Communications
Limited on May 30, 1996 following the execution of a joint venture agreement dated
December 5, 1995 between AT&T Corporation and Grasim Industries Limited pursuant
to which the Aditya Birla Group held 51% of our Equity Share capital and AWS Group
held 49% of our Equity Share capital. Our registered office was

transferred from

Industry House, 1st Floor, 159 Church Gate Reclamation, Mumbai 400 020, Maharashtra
to Suman Tower, Plot No. 18, Sector 11, Gandhinagar 382011 Gujarat on October 22,
1996. With effect from January 1, 2001 following our merger with Tata Cellular Limited
the joint venture agreement between AT&T Corporation and Grasim Industries Limited
dated December 5, 1995 was replaced by a shareholders agreement dated December 15,
2000 entered into between Grasim Industries Limited on behalf of the Aditya Birla
Group, Tata Industries Limited on behalf of the Tata Group and AT&T Wireless Services
Inc. on behalf of the AWS Group following which our name was changed to Birla Tata
AT&T Limited on November 6, 2001. Consequent to the introduction of the Idea
brand, our name was changed to Idea Cellular Limited on May 1, 2002. The AWS Group
exited from the Company on September 28, 2005 by selling 371,780,740 Equity Shares

of the Company, which constituted 50% of the holding of AT&T Cellular Private Limited
in our equity share capital, to ABNL and by transferring the remaining 371,780,750
Equity Shares to Tata Industries Limited.
The Tata Group ceased to be a shareholder of the Company on June 20, 2006 when Tata
Industries Limited and Apex Investments (Mauritius) Holding Private Limited (formerly
known as AT&T Cellular Private Limited) sold all their shares in the Company to the
Aditya Birla Group.
On October 26, 2006, P5 Asia Investments (Mauritius) Limited (P5 Asia) acquired
14.60% of our Equity Share capital. Under a Governance and Exit Rights Agreement
dated October 23, 2006 between P5 Asia, ABNL and Birla TMT, so long as an initial
public offering has not occurred and P5 Asia holds no less than 10% of our Equity
Shares, ABNL and Birla TMT are required to procure that (a) our Company and its
Subsidiaries shall not take or pursue any of the following actions without P5 Asias prior
consent (such consent to be obtained in a board and/or shareholders resolution) including
in respect of (i) any merger with, acquisition of, or amalgamation or consolidation with
another company or business; (ii) assuming or permitting to exist any borrowings or
indebtedness in the nature of borrowings if the amount of all such borrowings of our
Company and its Subsidiaries would exceed Rs. 6,800 million; (iii) entering into a new
line of business; (iv) increasing our authorized or issued share capital; or (v) entering
into a joint venture and (b) our Company makes available to P5 Asia certain financial
information relating to our Company and its Subsidiaries such as monthly management
accounts, quarterly unconsolidated balance sheet and profit and loss account and the
annual audited consolidated balance sheets and profit and loss accounts.
P5 Asia also has a right to appoint one director to our Board so long as it holds at least
10% of our total issued and outstanding Equity Shares. Mr. Biswajit Subramanian has
been appointed to our Board by P5 Asia pursuant to the exercise of the above right. In
addition, any IPO of our Equity Shares requires P5 Asias written consent, and, further, in
any such IPO, P5 Asia has the right to offer for sale such number of Equity Shares

representing up to 10% of the total Equity Shares which are held by it. By its letters
dated December 2, 2006 to ABNL and Birla TMT, P5 Asia has given its written consent
for the Issue and has confirmed that it does not intend to offer for sale any of the Equity
Shares held by it in such Issue.
We, either directly or through our Subsidiaries, provide mobile services in the Andhra
Pradesh, Delhi, Gujarat, Haryana, Kerala, Madhiya Pradesh, Maharashtra and Uttar
Pradesh (West) Circles, and have recently launched services and as such are in the
process of fully rolling-out our network in the Uttar Pradesh (East), Rajasthan and
Himachal Pradesh Circles pursuant to licenses issued by the DoT.

MAJOR EVENTS
The chronology of key events of the Company from incorporation is set out below:
1995:
Incorporated as Birla Communications Limited Obtained licenses for providing GSMbased services in the Gujarat and Maharashtra Circles following the original GSM license
bidding process
1996:
Changed name to Birla AT&T Communications Limited following joint venture between
Grasim Industries and AT&T Corporation

1997:
Commenced operations in the Gujarat and Maharashtra Circles
1999:
Migrated to revenues share license fee regime under New Telecommunications Policy
(NTP)

2000:
Merged with Tata Cellular Limited, thereby acquiring original license for the Andhra
Pradesh Circle
2001:
Acquired RPG Cellular Limited and consequently the license for the Madhya Pradesh
(including Chattisgarh) Circle Changed name to Birla Tata AT&T Limited
2001:
Obtained license for providing GSM-based services in the Delhi Circle following the
fourth operator GSM license bidding process
2002:
Changed name to Idea Cellular Limited and launched Idea brand name Commenced
commercial operations in Delhi Circle Reached the one million subscriber mark
2003:
Reached the two million subscriber mark
2004:
Completed debt restructuring for the then existing debt facilities and additional funding
for the Delhi Circle.
Acquired Escotel Mobile Communications Limited (subsequently renamed As Idea
Mobile Communications Limited)
Reached the four million subscriber mark
First operator in India to commercially launch EDGE services

2005:
-Reached the five million subscriber mark
-Turned profit positive
-Won an award for the Bill Flash service at the GSM Association Awards in Barcelona,
Spain Sponsored the International Indian Film Academy Awards
-Sponsored the International Indian Film Academy Awards
2006:
-Became part of the Aditya Birla Group subsequent to the TATA Group transferring its
entire shareholding in the Company to the Aditya Birla Group
-Acquired Escorts Telecommunications Limited (subsequently renamed as Idea
Telecommunications Limited)
-Restructuring of debt
-Launch of the New Circles
-Reached the 10 million subscriber mark
-Received Letter of Intent from the DoT for a new UAS License for the Mumbai Circle.
-Received Letter of Intent from the DoT for a new UAS License for the Bihar
-Circle through Aditya Birla Telecom Limited. ABNL, the parent of Aditya

-Birla Telecom Limited, pursuant to a letter dated November 22, 2006, agreed to
transfer its entire shareholding in Aditya Birla Telecom Limited to the Company for the
consideration of Rs. 100 million.
2007
-Won an award for the CARE service in the Best Billing or Customer Care Solution at
the GSM Association Awards in Barcelona, Spain
-Initial Public Offering aggregating to Rs. 28,187 million and Listing of Equity Shares
on the Bombay Stock Exchange and the National Stock Exchange
-Merger of seven subsidiaries with Idea Cellular Limited
-Reached the twenty million subscriber mark

2011
- Idea Cellular Ltd has informed that the Board of Directors of the Company at its
meeting held on October 20, 2011, inter alia, has appointed the following persons as
Directors on the Board of the Company:
1. Mr. R C Bhargava - Independent Director (Additional Director)
2. Mr. P Murari - Independent Director - (Additional Director)
3. Dr. Hans Wijayasuriya - Non Executive Director (Nominee of TM International Bhd).
-Idea acquired 9 licences for Punjab, Karnataka, Tamil Nadu & Chennai, West Bengal,
Orissa, Kolkata, Assam, North East and Jammu & Kashmir

-Acquired Spice Communications with the operating circles of Punjab and Karnataka
-Launched services in Mumbai metro in the largest single metro city launch, ever
-Launched services in Bihar
2009
-Subscriber base as on December 31, 2009: 57,611,872
-Idea becomes a pan-India operator
-Emerging Company of the Year - fastest growing mobile operator in the worlds fastest
growing telecom market
Values
Integrity - honesty in every action
At Aditya Birla Group, Integrity is defined as: Acting and taking decisions in a manner
that is fair, honest, following the highest standards of professionalism and also perceived
to be so. Integrity for us means not only financial and intellectual integrity, but in all
other forms as are commonly understood.
Key words that connote Integrity are:

Ethical

Truthful

Principled

Transparent

Respectful

Commitment - deliver on the promise

At Aditya Birla Group Commitment is defined as: On the foundation of integrity, doing
whatever it takes to deliver value to all stakeholders. In the process, taking ownership of
our actions and decisions, those of our team and that part of the organization that we are
responsible for.

Key words that connote commitment are:

Accountability

Discipline

Responsibility

Result -orientation

Self-confidence

Reliability

Passion - energized action

At Aditya Birla Group Passion is defined as: A missionary zeal arising out of emotional
engagement with the organization that makes work joyful and inspires each one to give
his or her best. Relentless pursuit of goals and objectives with the highest level of energy
and enthusiasm, that is voluntary and spontaneous.
Key words that connote passion are:

Intensity

Innovation

Transformational

Fire-in-the-belly

Inspirational

Deep sense of purpose

Seamlessness - boundryless in letter and spirit

At Aditya Birla Group, Seamlessness is defined as: Thinking and working together across
functional silos, hierarchies, business and geographies. Leveraging the available diversity
to garner synergy benefits and promote openness through sharing and collaborative
efforts.
Key words that connote Seamlessness are:

Teamwork

Integration

Involvement

Openness

Global

Learning from the best

Empowering

Speed - one step ahead always

At Aditya Birla Group, Speed is defined as: Responding to internal and external
customers with a sense of urgency. Continuously seeking to crash timelines and choosing
the right rhythm to optimize organization efficiencies.
Key words that connote Speed are:

Response time

Agile

Accelerated

Timelines

Nimble

Prompt

Proactive

Decisive

BOARD OF DIRECTORS
Name

Destination

 Kumar Mangalam Birla

Chairman / Chair

person

Rajashree Birla

Non-Executive

Director

Biswajit A Subramanian Non-Executive Director

 Sanjeev Aga

Non-Executive Director

Gian Prakash Gupta

Independent Director

P Murari

Independent Director

Madhabi Puri Buch

Independent Director

 Rakesh Jain

Non-Executive Director

Juan Villalonga Navarro Non-Executive Director

Arun Thiagarajan

Mohan Gyani

Independent Director

Independent Director

CONSUMER BEHAVIOR
Consumer behavior is the study of how people buy, what they buy, when they buy and
why they buy. It blends elements from psychology, sociology, sociopsychology,
anthropology and economics. It attempts to understand the buyer decision
processes/buyer decision making process, both individually and in groups. It studies
characteristics of individual consumers such as demographics, psychographics, and
behavioural variables in an attempt to understand people's wants. It also tries to assess
influences on the consumer from groups such as family, friends, reference groups, and
society in general. Belch and Belch define consumer behavior as 'the process and
activities people engage in when searching for, selecting, purchasing, using, evaluating,
and disposing of products and services so as to satisfy their needs and desires'.
Basic model of consumer decision making
Table 1.1 : Basic model of consumer decision making
Stage

Brief description

Problem

The consumer perceives a need and becomes motivated

recognition

to solve a problem.

Information

The consumer searches for information required to Perception

Motivation

search

make a purchase decision

Information
evaluation
Decision

The consumer compares various brands and products

The consumer decides which brand to purchase

Post-purchase

The consumer evaluates their purchase decision

evaluation
PROBLEM RECOGNITION:

Attitude
formation
Integration
Learning

Problem recognition is that result when there is a difference between one's desired state
and one's actual state. Consumers are motivated to address this discrepancy and
therefore they commence the buying process.
Sources of problem recognition include:

An item is out of stock

Dissatisfaction with a current product or service

Consumer needs and wants

Related products/purchases

Marketer-induced

New products

The relevant internal psychological process that is associated with problem recognition is
motivation. A motive is a factor that compels action. Belch and Belch (2007) provide an
explanation of motivation based on Maslow's hierarchy of needs and Freud's
psychoanalytic theory.
INFORMATION SEARCH
Once the consumer has recognised a problem, they search for information on products
and services that can solve that problem. Belch and Belch (2007) explain that consumers
undertake both an internal (memory) and an external search.
Sources of information include:

Personal sources

Commercial sources

Public sources

Personal experience

The relevant internal psychological process that is associated with information search is
perception. Perception is defined as 'the process by which an individual receives, selects,
organises, and interprets information to create a meaningful picture of the world'
The selective perception process Stage Description Selective exposure consumers select
which promotional messages they will expose themselves to. Selective attention
consumers select which promotional messages they will pay attention to Selective
comprehension consumer interpret messages in line with their beliefs, attitudes, motives
and experiences Selective retention consumers remember messages that are more
meaningful or important to them
You should consider the implications of this process on the development of an effective
promotional strategy. First, which sources of information are more effective for the brand
and second, what type of message and media strategy will increase the likelihood that
consumers are exposed to our message, that they will pay attention to the message, that
they will understand the message, and remember our message.
INFORMATION EVALUATION
At this time the consumer compares the brands and products that are in their evoked set.
How can the marketing organization increase the likelihood that their brand is part of the
consumer's evoked (consideration) set? Consumers evaluate alternatives in terms of the
functional and psychological benefits that they offer. The marketing organization needs to
understand what benefits consumers are seeking and therefore which attributes are most
important in terms of making a decision. The relevant internal psychological process that
is associated with the alternative evaluation stage is attitude formation. Belch and Belch
(2007, p.117) note that attitudes are 'learned predispositions' towards an object. Attitudes
comprise both cognitive and affective elements - that is both what you think and how you

feel about something. The multi-attribute attitude model explains how consumers
evaluate alternatives on a range of attributes. Belch and Belch (2007) identify a number
of strategies that can be used to influence the process (attitude change strategies). Finally,
there are a range of ways that consumers apply criteria to make decisions. Belch and
Belch (2007) explain how information is integrated and how decision rules are made
including the use of heuristics. The marketing organisation should know how consumers
evaluate alternatives on salient or important attributes and make their buying.
PURCHASE DECISION
Once the alternatives have been evaluated, the consumer is ready to make a purchase
decision. Sometimes purchase intention does not result in an actual purchase. The
marketing organization must facilitate the consumer to act on their purchase intention.
The provision of credit or payment terms may encourage purchase, or a sales promotion
such as the opportunity to receive a premium or enter a competition may provide an
incentive to buy now. The relevant internal psychological process that is associated with
purchase decision is integration.
POSTPURCHASE EVALUATION
The EKB model was further developed by Rice (1993) which suggested there should be a
feedback loop, Foxall (2005) further suggests the important of the post purchase
evaulation and that the post purchase evaluation is key due to its influences on future
purchase patterns.

REVIEW OF LITERATURE
Reviews are on the consumer behaviour on the various fast moving consumer goods
which includes consumer satisfaction, perception, loyalty , buying intention etc. it also
revealed that advertisement effect, income effect on the purchase of fast moving
consumer goods.
Mitchell et. al. (1994), studied the perceived risk in consumer decision-making process
Tests this assumption in a study of 180 breakfast cereal shoppers, half of whom were
interviewed prior to purchase and half immediately after. The results showed that risk
perceptions and risk-reducing strategy usefulness did vary between the two states. The
differences were not large, but were sufficient to allow rejection of the proposed null
hypothesis and to cast doubt on the assumptions made in many studies.
Ataman et.al. (2003),studied the relationship between the sales volume of a firm and its
brand image. Consumers self-perception and perception of brand image, with respect to
congruency models, have a strong influence on their behavior in the marketplace.
Therefore it is expected that the fluctuations in image attributes will explain the
fluctuations in sales figures. In order to test this hypothesis, consecutive surveys were
carried out from 231 respondents, on a monthly basis to collect image data. Factor
analysis was performed on the image attributes over time and three main image factors
were attained. To determine the net effect of image attributes on sales, multiple regression
analysis was performed, using the time series data, and all three image factors were found
to be significant in the model.
Shoham et.al. (2003), revealed that consumer compulsive buying is an important area of
inquiry in consumer behavior research. The importance of studying compulsive buying,
stems, in part, from its nature as a negative aspect of consumer behavior. Specifically,
exploring negative consumption phenomena could provide modified or new perspectives
for the study of positive consumption behaviors. Moreover, research on negative facets of
consumption is useful because it can potentially contribute to societys wellbeing, an

important criterion for usefulness of any research. This paper builds on earlier papers to
propose a model of compulsivity antecedents. Gender, consumers tendency to make
unplanned purchases, and their tendency to buy products not on shopping lists, serve to
predict compulsive tendencies in a sample of 435 Israeli consumers. The findings suggest
that these antecedents affect compulsive tendencies.
Ahmed et. al. (2004), said that In the 1970s, the early marketing activities of HindustanLever in India tended to focus upon the urban middle class and elite. Meanwhile, an
Indian entrepreneur produced and marketed a detergent, Nirma, targeting the poor rural
sector. By 1977, Nir ma was the second largest volume seller in the country. The paper
suggests that the common description of the bottom-of-pyramid market segment as the
disorganised sector can have a psychological impact on marketing strategy formulation,
over and above the real effects of absent infrastructures. The classic Nirma story helps us
to re-frame and re-describe prospects for serving this market segment. For example, it
can be a base-camp from which an MNC can launch a very effective attack upon all
levels of the pyramid.
Dupre et. al. (2004), revealed that despite massive efforts of suppliers and retailers in the
fast-moving-consumer-goods (FMCG) channel to adopt the efficient consumer response
(ECR) practices, many of the expected benefits have not been realized. This study
examines the history and implementation practices of ECR in the USA and in Germany
and presents conceptual models that compare the likely outcomes when ECR-based
category management practices are initiated either by the supplier or by the retailer
channel partner. A series of interviews conducted with 43 industry experts. The study
found that how a strategic competitive advantage can be realized through the combination
of both supplier and retailer views and expertise in category management practices.
Suggests ways to overcome barriers to implementation of category management plan.
Fandos et. al. (2006), examine the influence of the perceived quality of a protected
designation of origin (PDO) product on consumer loyalty and buying intentions. It
examines the relationships between intrinsic and extrinsic quality attributes, loyalty and
buying intention. Information was obtained from an initial qualitative approach based on

a group dynamic to allow the development of scales to quantify the different concepts.
Personal interviews were then conducted with 251 consumers based on a structured
questionnaire. The study reveals the existence of a positive and significant relationship
between the extrinsic attributes of a traditional food product and loyalty expressed by
consumers. It also shows that the perceived quality associated with the intrinsic attributes
of the product has a positive and significant influence on buying intentions
Teng et. al. (2007), conducted research to show how the dual mediation model has been
used to explain consumer responses toward an ad and a brand. This study attempts to
incorporate ad affect and competition into the framework and examine the effects of
advertising on consumers' attitudes and purchase intentions in multiple-ad and multiplebrand environments. A total of 165 usable data (54 percent female, mean age=36.2) were
collected from an experiment conducted in North America. The findings revealed that the
higher level of affective responses to a focal ad significantly leads to a higher evaluation
of that ad. It also indicated that information about a competing ad and brand is processed
comparatively and that evaluations of the competing ad and brand negatively influence
evaluations of a focal ad and brand. The study says that an ad affect is an important
determinant in the formation of ad attitude and it can be incorporated into the dual
mediation model to explain the effects of advertising on consumer behavior.
Celebi (2007), conducted a research to examine the credibility of advertising including a
promotional endorser (APE) and publicity including a promotional endorser (PPE); to
compare the credibility of advertising across the different demographic segments; and to
explore the important factors affecting consumers' shopping considerations of new fast
moving consumer goods (FMCGs) in Turkey. The data was gathered by a telephone
survey from a sample of 717 of which 348 respondents wanted to participate from three
of Turkey's largest cities, Istanbul, Ankara, and Izmir. The systematic sampling was
exercised to select the sample. Chi-square and t-tests were computed and the results of
them were significant at 0.05 level. It found that advertising was more credible by the
participants with higher income. Respondents' shopping decisions of new FMCGs were
affected by price and quality more than the other factors. Consumers tended to rely on

publicity more than advertising; more than APE; and more than PPE. They also tended to
count PPE more credible than APE. The findings suggest that it would be appropriate for
advertising managers, who wish to market to Turkey, to consider recipients' income levels
in regard to the credibility of advertising for new FMCGs. It is also important to note for
international companies that price and quality play a major role on Turkish consumers'
shopping decisions of new FMCGs among the other factors including experiments,
organizational trust, and word-of-mouth.
Sehrawet et. al. (2007), conducted a study which aims to establish whether the
residential background of consumers has a varying influence on their buying decisions. A
survey of 1090 urban and rural respondents was carried out of which 523 were rural and
567 were urban. The gathered data were analysed by applying counts, percentages,
means, and analysis of variance. Rural residents found that packaging is more helpful in
buying, that better packaging contains a better product and that they are more influenced
by the ease of storing a package than their urban counterparts. Ease of carriage, package
weight, simplicity, transparency and similarity of packaging have comparatively less
impact on purchase decisions of rural consumers than urban ones. However, rural
consumers are more critical about packaging as they strongly consider that it contributes
to misleading buyers and is also an environmental hazard
Zokaei et. al. (2007), studied to further define and explore the demarcation between
supply chain effectiveness and supply chain efficiency. A case-study research method is
adopted to discuss an approach for the improvement of supply chain effectiveness, i.e.
Supply Chain Kano-QFD. Supply Chain Kano-QFD is an integrative method which
helps drive effectiveness by focusing on how the various supply chain members might
jointly develop innovative solutions to create unique, individualized sources of consumer
value. It proposed that Supply Chain Kano-QFD technique can be deployed to engage
the capabilities and enthusiasm of the firms along the chain to enhance the value of the
final consumable.
Hlavinka et. al. (2007), examined how consumer packaged goods (CPG) companies are
harnessing the power of loyalty marketing to improve their sales and branding

effectiveness. The paper cites examples of CPG loyalty efforts from Procter & Gamble,
Tazo Tea, Huggies diapers, Moet Hennessey, Maker's Mark, Purina dog food and others,
it outlines two primary models that CPG marketers are pursuing, each with their own
approaches, levels of investment and possible outcomes. The paper explores the many
obstacles CPG marketers must overcome if they desire to shift from mass advertising to a
more customer-centric marketing model and cites examples of successes and failures
from a variety of organizations. It suggest specific ideas for improving the effectiveness
of their private label credit card program.

OBJECTIVES OF THE PROJECT

To know the feedback of customers regarding the services which are being provided
by the company.
To understand the importance of client relationship with the company.
To understand customer behavior regarding the plans offered by the company.
To understand the reasons for demand of a particular plan.
To find out the problems faced by customer.

SCOPE OF THE STUDY

The scope of the study is limited to the cellular services offered by Idea Cellular. Study
objective is to examine the various factors which play their part in customer buying
behavior and the major dissatisfaction areas for the customers. The study considered the
urban area of Chandigarh city. The sample under consideration consisted of the existing
customers of Idea Cellular.

NEED OF THE STUDY

The project I chose was a study on customer behaviour and satisfaction for Idea Cellular
pre paid products.
The title is very much significant considering the present global scenario. The behaviour
level is the basic requirement for a company to sell its products in the market because if
the customers are not aware of the products, there would be no sale. Along with the
awareness, the companies have to keep a regular check on the satisfaction level of its
customers to retain them. The survey helps to find out the loopholes is the area of service
being offered by the company. Identifying those areas would help the company to
minimize them and then they can go for increasing customers.

RESEARCH METHODOLOGY
Research methodology
Research means a search for knowledge or gain some new knowledge and methodology
can properly refer to the theoretical analysis of the methods appropriate to a field of study
or to the body of methods and principles particular to a branch of knowledge.

Research Design :
A research design is the arrangement of conditions for the collections and analysis of data
in a manner that aims to combine relevance to research purpose with economy in
procedure. Universe. The universe of the study is chandigarh

Sample Unit
The sample unit pertaining to the study is 100 respondents of chandigarh region.

Sample Size
The sample size of 100 served the purpose of the study.

Sample Method
The sampling method used is non-probability convenience sampling

Methods of Data collection

The word data means any raw information, which is either quantitative or qualitative in
nature, which is of practical or theoretical use. The task of data collection begins after a
research problem has been defined and research design chalked out. While deciding about
the method of data collection, the researcher should keep in mind that there are two types
of data primary and secondary.

Primary data
This is those, which are collected afresh and for the first Time, and thus happen to be
original in character. There are many ways of data collection of primary data like
observation method,
interview method, through schedules, pantry Reports, distributors audit, consumer panel
etc. The Team Managers and employees of both the Department were consulted to get
information about procedure of both the online and off line share trading. But the method
used by us for the primary data collection was through questionnaires.

Questionnaire method
For the collection of primary data I used questionnaire method. A formal list of questions,
which are to be asked, is prepared in a questionnaire and questions are asked on those
bases. There are some merits and demerits of this method. These as under: -

Merits: 1. Low cost even when universe is large.

2. It is free from bias of interviewer.
3. Respondents have proper time to answer.
4. Respondents who are not easily approachable can also be reachable.
5. Large samples can be made.

Secondary data
These are those data, which are not collected afresh and are used earlier also and thus
they cannot be considered as original in character. There are many ways of data collection
of secondary data like publications of the state and central government, reports prepared
by researchers, reports of various associations connected with business, Industries, banks
etc. And the method, which was used by me, was with the help of reports of the company.

DATA ANALYSIS AND INTERPRETATION

Table: 1
Q. Age group of respondents
Age Group

Number of Respondents

Percentage

20-25

44

44%

25-35

32

32%

35-45

18

18%

Above 45

6%

Total

100

100%

Figure 1: Age group of the respondents

INTERPRETATION:

44% of the respondents are between the age group 20 25.

32% of the respondents are between the age group 25 35.

18% of the respondents are between the age group 35 45.

6% of the respondents are above 45 years of age.

Table: 2
Q. Occupation of the respondents.
Occupation

Number of Respondents

Percentage

Students

34

34%

Business

52

52%

Govt. Services

10

10%

Professionals

4%

100

100%

Total

Figure 2 : Occupation of the respondents

INTERPRETATION:

34% of the respondents are Students.

52% of the respondents are Businessmen.

10% of the respondents are from Govt. Services.

4% of the respondents are Professionals

Table: 3

Q. Phone/internet is being used for

Usage

No. of Respondents

Percentage

Business

54

54%

Official

10

10%

Personal

36

36%

Total

100

100%

Figure 3 : Purpose of the use of phone/internet

INTERPRETATION:

54% of the respondents are using Phone/internet for business purpose.

10% of the respondents are using Phone/internet for official purpose.

36% of the respondents are using Phone/internet for personal purpose.

Table: 4

Q. Which of the Idea Cellular post paid products are customers aware of?
Products
Post Paid
FWP
Broadband
HSDC
Total

No. of Respondents

Percentage

92
60
74
47
100

Figure 4 : Awareness of the products

INTERPRETATION:

92% of the respondents are aware of Post Paid.

60% of the respondents are aware of FWP.

74% of the respondents are aware of Broadband.

47% of the respondents are aware of HSDC.

Table: 5

Q. How do you come to know about the products?

92%
60%
74%
47%
100%

Medium
Television
Print
Sales Executives
Friends and existing users
Total

No. of Respondents
52
34
5
9
100

Percentage
52%
34%
5%
9%
100%

Figure 5 : Medium through which customers came to know about the products
INTERPRETATION:

52% of the respondents came to know about the products through television.

34% of the respondents came to know about the products through print.

5% of the respondents came to know about the products through sales executives.

9% of the respondents came to know about the products through friends and
existing users.

Table: 6
Q. Which of the following products are you using?
Products
Post Paid

No. of Respondents
13

Percentage
13%

FWP
Broadband
HSDC
Total

41
20
26
100

41%
20%
26%
100%

Figure 6 : No. of respondents using the products

INTERPRETATION:

13% of the respondents were using Post Paid.

41% of the respondents were using FWP.

20% of the respondents were using Broadband.

26% of the respondents were using HSDC.

Table: 7
Q. Are you satisfied with the service provided by the company?
Level
Fully Satisfied

No. of Respondents
38

Percentage
38%

Partially Satisfied
Not Satisfied
Total

51
11
100

51%
11%
100%

Figure 7 : Satisfaction level of the respondents

INTERPRETATION:

38% of the respondents were fully satisfied with the services.

51% of the respondents were partially satisfied with the services.

11% of the respondents were not satisfied with the services.

Table: 8
Q. What are the major reasons for dissatisfaction?
Reasons
Poor quality of signals/ network
Poor voice quality
Higher cost
Slow speed

No. of Respondents
15
4
27
13

Percentage
15%
04%
27%
13%

Billing errors
Poor customer care service
Total

19
22
100

19%
22%
100%

Figure 8 : Major reasons for dissatisfaction

INTERPRETATION:

15% of the respondents were dissatisfied by poor signals/network.

4% of the respondents were dissatisfied by poor voice quality.

27% of the respondents were dissatisfied by higher cost of services.

13% of the respondents were dissatisfied by slow speed.

19% of the respondents were dissatisfied by the billing errors.

22% of the respondents were dissatisfied by poor customer care service.

Table: 9
Q. Which of the following products does a sales executive tells you about when he
visits you?
Products
Post Paid
FWP
Broadband

No. of Respondents
73
59
41

Percentage
73%
59%
41%

HSDC
Total

46
100

46%
100%

Figure 9 : Products told by sales executives to the respondents

INTERPRETATION:

73% of the respondents were told about the Post Paid by the visiting sales
executives.

59% of the respondents were told about the FWP by the visiting sales executives.

41% of the respondents were told about the broadband by the visiting sales
executives.

46% of the respondents were told about the HSDC by the visiting sales
executives.
Table: 10

Q. What channel would you prefer to buy a telecom/internet service?

Channel
Home delivery
Customer care
Online
Franchisee & utility shops
Total

No. of respondents
18
57
9
16
100

Percentage
18%
57%
9%
16%
100%

Franchisee &
Utility shops
16%
Online
9%

Home delivery
18%

Home delivery
Customer care
Online

Customer care
57%

Franchisee & utility shops

Figure 10: Respondents preference of buying channels

INTERPRETATION:

18% of the respondents would prefer to buy the service through home delivery.

57% of the respondents would prefer to buy the service through customer care.

9% of the respondents would prefer to buy the service online.

16% of the respondents would prefer to buy the service through franchisee &
utility shops.
Table: 11

Q. Which of the following services you look before choosing the product?
Service
Price
Connectivity
Speed
Value added service
After sales service
Total

No. of respondents
84
46
51
23
62
100

Percentage
84%
46%
51%
23%
62%
100%

Figure 11: Features considered by the customers

INTERPRETATION:

84% of the respondents consider price before choosing the product.

46% of the respondents consider connectivity before choosing the product.

51% of the respondents consider speed before choosing the product.

23% of the respondents consider value added services before choosing the
product.

62% of the respondents consider after sales service before choosing the product.

Table: 12

Q. If price and mobility is not a concern, which of the following would a customer
buy?
Product

No. of respondents

Percentage

Land line phone

06

6%

Fixed wireless phone

17

17%

technology
Mobile based on CDMA

77

77%

technology
Total

0
100

0%
100%

Mobile based on GSM

Figure12: Customers' preferences

INTERPRETATION:

6% of the respondents would buy land line phone, if price and mobility is not a
concern.

17% of the respondents would buy fixed wireless phone, if price and mobility is
not a concern.

77% of the respondents would buy mobile based on GSM technology, if price and
mobility is not a concern.

0% of the respondents would buy mobile based on CDMA technology, if price

and mobility is not a concern.
Table: 13

Q. Would a customer like to recommend Idea Cellular services to others?

Opinion
Yes
No
Total

No. of respondents
63
37
100

Percentage
63%
37%
100%

Figure 13: Opinion on recommending to others

INTERPRETATION:

63% of the respondents would recommend Idea Cellular services to others.

37% of the respondents would not recommend Idea Cellular services to others.

Table: 14 (a)
Q. Rate the following services on the basis of your satisfaction.
1) Network:
Satisfaction Level
Excellent
Very good
Good
Average
Poor
Total

No. of respondents
11
18
21
32
18
100

Percentage
11%
18%
21%
32%
18%
100%

Figure14-a: Satisfaction level for network

INTERPRETATION:

11% of the respondents rated excellent for the network.

18% of the respondents rated very good for the network.

21% of the respondents rated good for the network.

32% of the respondents rated average for the network.

18% of the respondents rated poor for the network.

Table: 14 (b)

2) SMS Rates:
Satisfaction Level
Excellent
Very good
Good
Average
Poor
Total

No. of respondents
5
27
41
18
9
100

Percentage
5%
27%
41%
18%
9%
100%

Figure14-b: Satisfaction level for SMS rates

INTERPRETATION:

5% of the respondents rated excellent for SMS rates.

27% of the respondents rated very good for SMS rates.

41% of the respondents rated good for SMS rates.

18% of the respondents rated average for SMS rates.

9% of the respondents rated poor for SMS rates.

Table: 14 (c)

3) New schemes and offers:

Satisfaction Level
Excellent
Very good
Good
Average
Poor
Total

No. of respondents
6
20
27
34
13
100

Percentage
6%
20%
27%
34%
13%
100%

Figure 14-c: Satisfaction level for new schemes and offers

INTERPRETATION:

6% of the respondents rated excellent for new schemes and offers.

20% of the respondents rated very good for new schemes and offers.

27% of the respondents rated good for new schemes and offers.

34% of the respondents rated average for new schemes and offers.

13% of the respondents rated poor for new schemes and offers.
Table: 14 (d)

4) Internet speed:
Satisfaction Level
Excellent
Very good
Good
Average
Poor
Total

No. of respondents
4
7
21
8
6
46

Percentage
9%
15%
46%
17%
13%
100%

Figure 14-d: Satisfaction level for internet speed

INTERPRETATION:

9% of the respondents rated excellent for internet speed.

15% of the respondents rated very good for internet speed.

46% of the respondents rated good for internet speed.

17% of the respondents rated average for internet speed.

13% of the respondents rated poor for internet speed.

Table: 14 (e)

5) Cost:
Satisfaction Level
Excellent
Very good
Good
Average
Poor
Total

No. of respondents
2
14
16
63
5
100

Percentage
2%
12%
16%
63%
5%
100%

Figure14-e: Satisfaction level for cost

INTERPRETATION:

2% of the respondents rated excellent for cost.

14% of the respondents rated very good for cost.

16% of the respondents rated good for cost.

63% of the respondents rated average for cost.

5% of the respondents rated poor for cost.

Table: 14 (f)

6) Customer care:
Satisfaction Level
Excellent
Very good
Good
Average
Poor
Total

No. of respondents
0
14
23
31
32
100

Percentage
0%
14%
23%
31%
32%
100%

Figure14-f: Satisfaction level for customer care

INTERPRETATION:

0% of the respondents rated excellent for customer care.

14% of the respondents rated very good for customer care.

23% of the respondents rated good for customer care.

31% of the respondents rated average for customer care.

32% of the respondents rated poor for customer care.

Table: 14 (g)

7) Recharge outlets:
Satisfaction Level
Excellent
Very good
Good
Average
Poor
Total

No. of respondents
10
19
51
13
7
100

Percentage
10%
19%
51%
13%
7%
100%

Figure 14-g: satisfaction level for recharge outlets

INTERPRETATION:

10% of the respondents rated excellent for recharge outlets.

19% of the respondents rated very good for recharge outlets.

51% of the respondents rated good for recharge outlets.

13% of the respondents rated average for recharge outlets.

7% of the respondents rated poor for recharge outlets.

Table: 14 (h)

8) Call Rates:
Satisfaction Level
Excellent
Very good
Good
Average
Poor
Total

No. of respondents
7
11
59
33
0
100

Percentage
7%
11%
59%
33%
0%
100%

Figure14-h: Satisfaction level for call rates

INTERPRETATION:

7% of the respondents rated excellent for call rates.

11% of the respondents rated very good for call rates.

59% of the respondents rated good for call rates.

33% of the respondents rated average for call rates.

0% of the respondents rated poor for call rates.

Table: 14 (i)

9) Value added services:

Satisfaction Level
Excellent
Very good
Good
Average
Poor
Total

No. of respondents
43
39
11
7
0
100

Percentage
43%
39%
11%
7%
0%
100%

Figure 14-i: Satisfaction level for value added services

INTERPRETATION:

43% of the respondents rated excellent for value added services.

39% of the respondents rated very good for value added services.

11% of the respondents rated good for value added services.

7% of the respondents rated average for value added services.

0% of the respondents rated poor for value added services.

OBSERVATION & FINDINGS

55% of the people use only mobile, and 40% of respondents use both the services &
only 5% people use the telephone service. It shows the popularity of cellular phone
services.

34% of respondents are using the Airtel services, which is the highest percentage of
users of cellular phone. Idea takes 2nd place in Chandigarh with 28% of users.

Prepaid service is most popular in the cellular services with 95% of customers. The
remained uses postpaid services.

 In current situation 63% of respondents are using lifetime plans, where the rest are
using general plan of the cellular companies.
Peoples wants to good schemes for the maximum talk time at the minimum cost from
idea cellular.
The mostly peoples views idea is great quality provide in internet services.

LIMITATIONS of the Study

The study was restricted to only those clients who were related to Idea Cellular
products.

The study was confined within specific regions of Chandigarh city only.

The sample size was limited so the results obtained from the study may not be
generalized for the whole population.

The time period of the study was not sufficient to measure the consumers response
effectively and reach to a more valid conclusion.

Many of the respondents may not have given the correct information due to personal
bias.

RECOMMENDATIONS/SUGGESTIONS

The company should emphasize more on the spreading the nice behavior for their
products but the level of awareness of their FWP, Broadband, HSDC is very low.

The sales executives should play a major part in spreading awareness because only
5% of the people came to know about the products through sales executives. Sales
executives may also help the company generating prospects, hence sales for the
company.

The post paid has seen a major decline in its users because of the tough competition
given by the prepaid services. Hence the company should now focus more on the
internet services as there is a huge market for them to cover.

Around 2/3rd of the people are dissatisfied and majority of them reasons are poor
customer care service, billing errors and higher cost. So the company should train
their employees properly so that they have sufficient knowledge about the products
and the bills should be made more transparent so that the customers could easily
understand them.

The sales executives are not properly trained as they could not explain the schemes
properly so they just try to tell to the customer about their post paid service and not
about other three services. This is the main reason for the lack in sales of their internet
services.

A majority of the customers look for the price and after sales services before choosing
the products. So the company should plan accordingly to increase their sales.

As seen from the survey results, more than 3/4 th of the population prefer to buy a
mobile based on GSM technology. So the newly launched GSM based mobile phones
should be promoted accordingly.

Half of the population interviewed rated either average or poor for the network. So
network can be improved by planting more towers in different parts of the city where
the company does not have the signals.

More than 3/4th of the population does not like the new schemes and offers introduced
by the company. So a proper survey should be conducted and more attractive and
useful schemes must be introduced.

The cost of the products is too high for the customer to buy them. Moreover the major
problem is that several packs are activated without any prior intimation and their
price is included in the bills later, which is the major reason for dissatisfaction.

Around 2/3rd of the people gave average or poor ratings to the customer care and said
that their complaints are either not heard or they are dealt very late.

The company should emphasize more on reducing the call rates and introducing
attractive value added services which would help them improve their sales.

OPPORTUNITIES
The Indian telecommunications industry is one of the fastest growing in the world and
India is projected to become the second largest telecom market globally by 2010.India
added 113.26 million new customers in 2011, the largest globally. In fact, in April 2011,
India had already overtaken the US as the second largest wireless market. To put this
growth into perspective, the countrys cellular base witnessed close to 50 per cent growth
in

2011,

with

an

average

9.5

million

customers

added

every month. According to the Telecom Regulatory Authority of India (TRAI), the total
number of telephone connections (mobile as well as fixed) had touched 385 million as of
December 2011, taking the telecom penetration to over 33 per cent.
This means that one out of every three Indians has a telephone connection, and telecom
companies expect this pace of growth to continue in 2009 as well.With the rural India
growth story unfolding, the telecom sector is likely to see tremendous growth in India's
rural and semi-urban areas in the years to come. By 2012, India is likely to have 200
million rural telecom connections at a penetration rate of 25 per cent. And according to a
report jointly released by Confederation of Indian Industry (CII) and Ernst & Young, by
2012, rural users will account for over 60 per cent of the total telecom subscriber base.
According to Business Monitor International, India is currently adding 8-10 million
mobile subscribers every month. It is estimated that by mid 2012, around half the
country's population will own a mobile phone. This would translate into 612 million
mobile subscribers, accounting for a tele-density of around 51 per cent by 2012. With
only 33% tele density yet achieved the best is yet to come with the increase in per capita
income

of

people,the

multinational

telecom

companies

are

eyeing

india as the potential market for investments as it has given a growth of more than 50% in
a condition when global economy has taken a downward plunge. Thus their exists galores
of opportunities for Indian telecom operators, the need is just to identify the opportunities
at the right time and exploit them.

CONCLUSION:
As there is a healthy competition given by the existing players in the industry, lack or
degradation in any of the services may affect the company badly. With the excellent rural
awareness and rural market share in telecom services, the company should also try to
boost up their urban market share. This could only be done with the help of a team of
properly trained and dedicated employees. Moreover there is a huge market for the
internet sector which can be captured by giving the customer, the services according to
their needs.
Indian economy is an emerging one and is growing very fast at the average GDP rate 89% so in this emerging market competition level among telecommunication services
provides new players are coming who will necessarily intensify the competition. New
products and new schemes are being offered by the telecom service providers. The need
for large information capacity has grown tremendously due to the demand of real time
information. Telecommunication has now become a major information transmission
system and telecom has undoubtedly emerged as the most important industry in India.
Indian telecom companies are putting in their best offer to rope in major telecom
operators of the world e.g. Vodafone, Aircel and MTN etc. are playing their role in
synergy with the operation of the Indian companies. Process of acquisition and merger
are in process and future will be only for those companies who have an edge over others
in the field. Service provided and the better quality of network etc. is provided at
affordable cost. In this process of competition it is assumed that only those companies
will survive who adopt suitable market strategy and technology innovation and up
gradation to suit the aspiration and demand of the consumer. Idea cellular ltd. is very fast
catching up with the market by providing cheaper calling rates. The market strategies
adopted by its executives are bearing fruits and the company although being the Second
one to enter the market of Delhi has found a suitable niche and recognition in the
consumer. But this is not a thing for self contentment as the survey reveals that in
network, service and distributor, its place is very far behind to other competitors viz.
Airtel, MTNL, and Tata

QUESTIONNAIRE
PERSONAL DETAILS
1) Name:
2) Age:
3) Gender:
4) Address:
5) Contact Number:
6) Phone/Internet is used for following purpose:
a) Business

b) Official

c) Personal

Q1. Which of the following Idea Cellular post paid products are you aware of?
1). Idea Cellular India Mobile ( Post Paid)
2). Fixed Wireless Phone (FWP)
3). Broadband
4). High Speed Data Card (HSDC)
Q2. How did you come to know about the products?
1). Television
2). Print
3). Sales Executives
4). Friends and Existing Users
5). Other (Please Specify)
Q3. Which of the following products are you using?
1). Idea Cellular India Mobile ( Post Paid)
2). Fixed Wireless Phone (FWP)
3). Broadband
4). High Speed Data Card (HSDC)

Q4. Are you satisfied with the service provided by the subscriber?
1). Fully Satisfied
2). Partially Satisfied
3). Not Satisfied
Q5. If your response to the above is partially satisfied or not satisfied, then what are
the reasons for your dissatisfaction?
1). Poor Quality of Signals/Network
2). Poor Voice Quality
3). Higher Cost
4). Slow Speed
5). Billing Errors
6). Poor Customer Care Service
7). Any Other (Please Specify)

Q6. When a sales executive comes to you, which of the following products does he
frequently tells about?
1). Idea Cellular India Mobile ( Post Paid)
2). Fixed Wireless Phone (FWP)
3). Broadband
4). High Speed Data Card (HSDC)
Q7. What channel would you prefer to buy a telecom/internet service?
1). Home Delivery
2). Customer Care
3). Online
4). Franchisee & Utility Shops

Q8. Which of the following service you look before choosing the product?
1). Price
2). Connectivity
3). Speed
4). Value Added Services
5). After Sales Service
6). Any Other (Please Specify) ..
Q9. If Price and mobility is not a concern, which of the following would you prefer
to buy?
1). Land Line Phone
2). Fixed Wireless Phone
3). Mobile based on GSM Technology
4). Mobile based on CDMA Technology
Q10. Would you like to recommend Idea Cellular services to others?
1). Yes
2). No
11). Rate the following services on the basis of your satisfaction.
Services
Network
SMS Rates
New Schemes & Offers
Internet Speed
Cost
Customer Care
Recharge Outlets
Call Rates
Value Added Services

Excellent

Very Good

Good

Average

Poor

12). Suggestions (If Any):

REFERENCES
NEWSPAPERS, BOOKS
Marketing Management

Phillip Kotler

Marketing Research -

Tull & Hawkins

MAGAZINES
Business Today
Advertising & Management
Economic Times
Hindustan Times
WEBSITES

http://www.indiaonestop.com/fdi-telecom.htm

http://www.trai.gov.in/Default.asp

http://www.rcom.co.in/webapp/Communications/rcom/index.jsp

http://trak.in/Tags/Business/category/telecommunication

www.Idea Cellularcommunications.com

www.businessballs.com/pestanalysisfreetemplate.htm
www.businessballs.com/swotanalysisfreetemplate.htm
www.oppapers.com/topics/swot-analysis-Idea Cellular-communication

www.google.com etc.