Customers Preference Towards Multi-brand Mobile Phone Sim Cards and Recharge Coupons

Transcription

1 Customers Preference Towards Multi-brand Mobile Phone Sim Cards and Recharge Coupons Dr. R. Ganapathi ABSTRACT Communication has achieved tremendous development due to the advancement in the areas of information technology. In India, there are a number of companies for mobile phones, SIM cards and also for recharge coupons. There is stiff competition in the mobile telephony market and new players are facing difficulty in introducing their products in the market. In modern scenario, most businesses are consumer-oriented and each business is trying to satisfy needs of the end consumers. Before designing products, most companies consider the attitude and preferences of the consumers. Companies normally conduct market research and collect information about consumer s attitude and behavior towards their products with the help of R&D department of their concern. This practice is normally followed by established companies. Normally this practce is not done properly. The position of illiterate consumers is more pathetic. In many cases, such customers do not know whom to ask how balance reduced in their account without using mobile phone. They simply recharge their mobiles keeping the grievance to themselves. This problem is common in all recharge coupons. Hence, it is important to create awareness among consumers of SIM card recharge coupons in this regard. Further, it is an urgent and serious issue which needs to be rectified immediately. Keeping the above-mentioned objective in mind, the researcher has written this article to create awareness among consumers of recharge coupons and find remedial measures to the problems faced by consumers. Keywords: Mobile telephony, Mobile communications, Radio spectrum, Consumer preference, Recharge coupons. INTRODUCTION Mobile phones have proved to be one of the greatest gifts to the mankind. They have become an indispensable part of our lives. However, till recent past, owning a mobile phone was confined to the members of affluent class only; thanks to innovations and cost cutting techniques over a period of time that mobile phones are now affordable for everyone. With a plethora of * Assistant Professor, Directorate of Distance Education, Alagappa University, Karaikudi. Pin Code , Tamil Nadu State. meenaramganapathi@yahoo.co.in / meenaramganapathi@gmail.com

2 2 R. Ganapathi mobile handsets flooding the market, they are not only catering to the needs but are also acting as a status symbol for many. Origin of this gadget is quite interesting starting from bulky mobile phones which were as long and heavy as one s forearm to ultra thin and techno-savvy handsets, mobile phones have covered a long way so far. It all started with the basic telephony - Alexander Graham Bell was the first to patent telephone in the year This technology was developed using the equipment designed for telegraph, calls were connected with the help of operators. The foundation of the mobile telephony was laid when Charles Stevenson invented radio communication in early 1890s for keeping contacts with the offshore lighthouses. Some time later, Marconi transmitted signals over distance of two kilometers in the year Another significant development in this direction was made in the year 1906 when Fessenden capably broadcasted music through radio. The next development was merger of radio and telephone technology. In 1926, first class passenger trains running from Berlin to Hamburg used this technology. These radio telephones were also used for air traffic safety as well as in the passenger airplanes. In the Second World War, German tanks made great use of these radio telephones. These two-way radios were ancestors of mobiles phones. These radios, also known as the mobile rigs, were fixed on police cruisers, ambulances, taxicabs before advent of handheld mobile phones. Since mobile radios were given connection to telephone network, one could not dial these from fixed-line phones and slowly this technology gained popularity among the mobile radio users. Late versions of these radio phones incorporated cigarette lighter plugs and were called bag phones. Fixed in the vehicles, these gadgets were either used as portable two- way radios or mobile phones. In 1940s, Motorola came-up with new developments in mobile phones. This is how Walkie-Talkie was born - large, bulky and battery operated, this handy device soon found a way to the US military. Another turning point in the history of mobile phones was the time when the base station for mobile phones came into being. Engineers from Bell Labs developed the base stations in The same year, W. Rae Philip and Douglas H. Ring developed hexagonal cells for these mobile phones. But an engineer, Porter from Bell Labs, suggested positioning of the cell towers at corners of hexagons instead of center. He also argued for the directional antennas, for transmitting or receiving the signals in three directions, into adjacent hexagon cells. In 1956, Ericsson released the earliest full automatic cellular phone system called MTA in Sweden. Though this gadget was operated automatically, but due to its bulkiness it could not really hold the users interest for long. It is surprising to know that this mobile phone weighed around forty kilograms back then. Improved and lighter version of the same phone was introduced in 1965 which was known as MTB and which used the DTMF signaling. Soon in 1957, Leonid Kupriyanovich developed experimental model of wearable mobile phone in Moscow, operating with the help of base station. This young engineer had earlier developed the radio phone known as LK-1. The battery life of the wearable mobile phone by the young inventor lasted for around hours. Weighing 3 kilograms, it worked within the Vol. 9, No. 1, June 2015

3 Customers Preference Towards Multi-brand Mobile... 3 distance of 20 to 30 km from the station. Later in the same year, he patented the mobile phone and also came up with a version of pocket mobile phone that was just of 0.5 kilograms. Another automatic pocket mobile phone was developed in the year 1966 at Bulgaria. Called RAT-0.5, this phone coordinated with the base station known as RATZ-10. Further developments in cellular phones were witnessed in the year It was decided that every mobile phone would be catered to a base station throughout its life. Though this was not that novel concept, need of one base station at least broke continuity of the automatic services to the mobile phones. After three years, in 1970, another engineer Ames E. Joel invented automatically operated call handoff technology. This system allowed the mobile phones to pass through cell areas while making a phone call without any loss of conversation. This was the time when the mobile user could use the gadget without any disturbance. Further in the year 1971, AT&T Incorporation projected mobile phone service that was approved by FCC later. Another development in the history of mobile phones was registered with ARP network s successful launch in Finland. It was the earliest commercial cellular phone and was known as Zero Generation mobile network. Invention of mobile phone that closely resembles today s mobile phones is credited to Martin Cooper, employee and researcher at Motorola. He initially developed cellular phone named Motorola Dynatac in With 5 inches width and 9 inches length, this 2.5 pound phone carried around 30 circuit boards in it. With recharge time of around 10 hours, talk time of 35 minutes, this phone gave comfortable talking experience to the users. One could listen, dial and talk on this mobile phone, but display screen was missing in this set. With the passage of time, refinements were made and these mobile phones were improved by leaps and bounds. With the introduction of global system for mobile communications, radio spectrum could be used effectively. The technology gave great voice quality, international roaming facilities along with compatibility with ISDN systems. Further, for providing coverage to remote areas that ISDN, GSM and cellular phones could not offer, satellite phones came into being. Base station for the satellite phones were built in the geostationary satellites. And now there is no place on the planet that is untouched by the mobile phones. Objectives of the Study The study is undertaken with the following objectives. 1. To analyze the profile of the consumers. 2. To analyze the reasons for brand preference of the consumers. 3. To study the customer preference towards selected mobile service provider companies. 4. To examine various features of mobile phone recharge coupons that influencing the customers. Scope of Study Leading mobile phone recharge companies in Coimbatore are Airtel, Aircel, BSNL, Docomo CDMA, Docomo GSM, Idea, Reliance-GSM, CDMA, MTS, Vodafone, Tata Indicom, Uninor, and Videocon. Global Journal of Business Management

4 4 R. Ganapathi METHODOLOGY Research Methodology is a way to systematically solve the research problem. It may be understood as a science concerning how research is done scientifically. In research, it is the responsibility of the researcher to evaluate research decisions before they are implemented. The researcher has to specify very clearly and precisely which decisions to select and why select them, so that others can count on it. So, adoption of proper methodology is an essential step in conducting a research study. A research design is the arrangement of condition for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. I have undertaken a descriptive type of research in this research study. It describes the characteristics of individual or presentation of answer for question like whom what, when and how relating to a field or matter. This study will present the state of affairs as it exists. This type of study helps to know the past and to predict the future. It refers to technique or procedure the researcher would adopt in selecting items for the sample. The sample design should be reliable and appropriate for the study. The researcher has taken into consideration teachers, working professionals, business people, farmers, and the likes who are residing in Coimbatore district. The researcher conducted study in Coimbatore district included both in rural and urban areas. The sample size should not be too small or too large. If so, more error will occur or more time will be consumed. Hence, an optimum sample size of 400 was taken. For selecting samples, quota sampling technique is used. Since a specific number of population elements were selected for inclusion in the sample, it can be called as quota sampling. Primary data are those, which are collected afresh and for the first time, and thus happen to be original in character. With the help of questionnaire, the researcher collected the primary data. In this study a structured questionnaire, containing both closed and opened question, was administrated. It is difficult to plan a major study or project without adequate knowledge of subject matter, the population to cover and other important aspects related to the study. To tackle these issues a pilot study is generally conducted which is a replica and rehearsal of the main survey. A pilot study was undertaken among selected respondents prior to the main study in order to find out the difficulties and to overcome the bias in the questionnaire. The time duration of this study was confirmed to a period of February 2014 to January With the help of filled questionnaire, a master table was prepared. Then, it was converted into necessary tables based on the dimensions of marketing survey. Simple percentage analysis and Chi-square test were used for analysis. Vol. 9, No. 1, June 2015 Table 1: Levels of Brand Preference of Consumers Sl. No. Level of Brand Preference Number of Consumers Percentage 1. Low level (1-3) % 2. Medium Level (4-6) % 3. High Level (7 and Above) % Total

5 Customers Preference Towards Multi-brand Mobile... 5 From the above table it is ascertained that 64 percent of consumers had medium level of brand preference, 17.5 percent of consumers had low level of preference and 18.5 percent had high level of brand preference. Table 2: Gender-Wise Brand Preference Sl. No. Gender Level of Brand Preference Total 1. Male (33.5%) 2. Female (66.5%) Total The above table shows that 33.5 percent of consumers are male and the rest, 66.5 percent of consumers, are female. Among male members, 29.85% have medium level of preference, 25.37% have low level, whereas 44.77% have high level preference. Among female category, 15.41% have medium level preference, 62.40% have high level and 23.30% have low level of brand preference. Null Hypothesis : There is no significant relationship between gender of consumers and their brand preference. male and female consumers. The calculated value of chi-square is at 5% level of significance, since calculated value is more than table value 5.99, it is inferred that there is significant relationship between gender of consumers and brand preference. Hence, the hypothesis is rejected. Table 3: Age-Group and Level of Brand Preference Sl. No. Age Group Level of Brand Preference Total 1. Upto 20 years (51.5%) years (14.5%) years (17%) years (12.5%) 5. Above 51 years (4.5%) Total From the above table it is ascertained that 51.5 percent of consumers are in the age- group of up to 20 years, 14.5 percent of consumers are in the age-group of years, 17 percent of consumers are in the age group of years and 4.5 percent of consumers are in the agegroup of above 51 years. Global Journal of Business Management

6 6 R. Ganapathi Null Hypothesis : There is no significant relationship between age-group of sample consumers and level of brand preference. age-group of sample consumers and brand preference. The calculated value of chi-square is at 5% level of significance, since calculated value is less than table value of 15.5, it is inferred that there is no significant relationship between age-group of sample consumers and level of brand preference. Hence, the hypothesis is accepted. Table 4: Marital Status and Level of Brand Preference Sl. No. Marital Status Level of Brand Preference Total 1. Married (34%) 2. Unmarried (66%) Total From the above table it is clear that 34 percent of consumers are married and the rest, 66 percent, are unmarried. Null Hypothesis : There is no significant relationship between marital status of consumers and level of brand preference. marital status of consumers and brand preference. The calculated value of chi-square is 8.39 at 5% level of significance, since calculated value is more than table value of 5.99, it is inferred that there is significant relationship between marital status of consumers and brand preference. Hence, the hypothesis is rejected. Table 5: Monthly Income and Level of Brand Preference Sl. No. Monthly Income Level of Brand Preference Total 1. Upto Rs.5, (64%) 2. Rs.5,001 to Rs.10, (14%) 3. Rs.10,001 to Rs.15, (11.5%) 4. Rs.15,001 to Rs.20, (3%) 5. Above Rs.20, (7.5%) Total Vol. 9, No. 1, June 2015

7 Customers Preference Towards Multi-brand Mobile... 7 From the above table it is clear that 64 percent of consumers have an income up to Rs.5, 000 per month, 14 percent of consumers have income ranging from Rs.5,001 to Rs.10,000, 11.5 percent of consumers have an income ranging from Rs.10,001 to Rs.15,000, 3 percent of consumers have an income ranging from Rs.15,001 to Rs.20,000 and 7.5 percent of consumers have an income of Rs.20,001 and above. Null Hypothesis : There is no significant relationship between monthly incomes of consumers and level of brand preference. monthly incomes of consumers and brand preference. The calculated value of chi-square is at 5% level of significance, since calculated value is less than table value of 15.5, it is inferred that there is no significant relationship between monthly incomes of consumers and brand preference. Hence, the hypothesis is accepted. Table 6: Otivation to Purchase and Level of Brand Preference Sl. No. Factors of Motivation Level of Brand Preference Total 1. Self (43%) 2. Relatives (5%) 3. Friends (7.5%) 4. Colleagues (0.5%) 5. Family member (42.5%) 6. Others (1.5%) Total From the above table it is ascertained that 43 percent of consumers purchased the brand on their own, 5 percent of consumers were motivated by relatives, 7.5 percent of consumers were motivated by friends, 0.5 percent of consumers were motivated by colleagues, 42.5 percent of consumers were motivated by family members, 1.5 percent of consumers were motivated by colleagues. Null Hypothesis : There is no relationship between factors of motivation of consumers and brand preference. factors of motivation of consumers and level of brand preference. The calculated value of chisquare is 8.39 at 5% level of significance, since calculated value is more than table value of 5.99, it is inferred that there is significant relationship between factors of motivation and level of brand preference. Hence, the hypothesis is rejected. Global Journal of Business Management

8 8 R. Ganapathi Vol. 9, No. 1, June 2015 Table 7: Place of Purchase and Level of Brand Preference Sl. No. Place of Purchase Level of Brand Preference Total 1. Company showroom (43%) 2. Retail outlets (5%) 3. Bazaar (7.5%) 4. Wholesaler (0.5%) 5. Others (42.5%) Total From the above table, it is identified that 83 percent of consumers purchased from company showroom, 21 percent of consumers purchased from other retail outlets, 11 percent of consumers purchased from Bazaar, 7 percent of consumers purchased from kiosks and 6 percent of consumers purchased from other sources. Null Hypothesis: : There is no significant relationship between place of purchase and level of brand preference. places of purchase of consumers and brand preference. The calculated value of chi-square is 6.01 at 5 % level of significance, since calculated value is less than table value of 12.6, it is inferred that there is no significant relationship between place of purchase and brand preference. Hence, the hypothesis is accepted. Suggestions Mobile recharge coupons are advertised heavily to increase their sale by different telecom companies, such as Aircel, Airtel, Tata, Reliance, Idea and the likes. Companies include attractive features and special offers in their recharge coupons and SIM cards. However, consumers are generally confused with regard to the schemes and features of the recharge coupons and SIM cards. Due to heavy competition in the telecom sector, companies are trying hard to provide more information to customers which increase consumer s confusion. This status in rural areas is even worse where most consumers have low literacy. Hence, mobile service providers should understand level of consumers and, if possible, should change content of the advertisement copy and should give simple and precise information about their products which help urban as well as rural consumers to understand the features of recharge coupons and SIM cards. It was noted in the study that retailers and agents selling SIM cards and recharge coupons give wrong information about features, hence companies and the government should monitor this issue seriously and issue strict guidelines to sellers of SIM cards and recharge coupon. Further, most of consumers complained that telecom companies deduct some unknown charges from consumers account when they use mobile internet package and cards. This

9 Customers Preference Towards Multi-brand Mobile... 9 mainly occurs due to lack of adequate knowledge about using the mobile internet feature. The government should take initiatives to control these types of practices of some mobile service providers. Some of consumers complained that almost all telecom service providers deduct some amount from account balance of the consumer for the facilities which are not subscribed by consumers, such as, caller tunes, music and SMS. Normally, these deductions are made during night hours. Most of consumers are unable to identify the reason for the same. These practices should be immediately controlled, and employees in Customer Care Cell of the telecom company should properly handle problems and complaints received from consumers. CONCLUSION The demand for mobile recharge coupons is growing rapidly among all age groups. Most of the respondents were found to be loyal to their brands. The ultimate aim of businesses is to increase the profit of the firm, but businesses must have some sort of social responsibility too. In modern times, businesses need to be consumer oriented, hence, due importance should be given to consumer needs and satisfaction. Businesses should try to satisfy consumer s needs in best possible ways, only then they can survive in the market for long time. Therefore, service providers in the telecom industry should be very careful in giving information in their advertisement copy regarding the features of the recharge coupons and new SIM cards introduced in the market. Further, they must give clear and proper information to the sellers of recharge coupons and SIM cards with the help of the Marketing Executives of the company. Then it would be easier for retail sellers to explain features to consumers in a proper way. As a result of this, customers will understand features properly and make buying decision with regard to recharge coupons and new SIM cards. REFERENCES Abhilisha Mehta (2000). Advertising Attitudes and Advertising Effectiveness. Journal of Advertising Research, May - June, pp Aggarwal S S. (2009). Brand Ambassadors ant their Impact on Consumer behavior. Indian Journal of Marketing, Vol. 36 (12), pp Banwari Mittal (1994). Public Assessment TV Advertising Faint Praise and Harsh Criticism. Journal of Advertising, pp Barak Libai, Eitan Muller and Renana Peres (2009). Role within Brand and Cross -Brand Communication in Competitive Growth. Journal of Marketing, Vol. 73, pp Celsi, Richard L., and Jerry C. Olson (1988). The Role of involvement in Attention and Comprehension Process. Journal of Consumer Research, Vol. 15 (2), pp David S Waller (1999). Attitude towards Offensive Advertising: An Australian Study. Journal of Consumer Marketing, Vol.16 (3), pp Dhanabhakyam and Geetha (2006). Ethics in Advertising and Its Impact. Indian Journal of Marketing, Vol. 36 (8), pp Edith G Smith, Lex Van Merus and Peter C Neijens (2006). Effects of Advertising Likeability: A 10 year perspective. Journal of Advertising Research, pp Fang Wan, Ronald J Faber, Anthony Fund (2003). Perceived Impact of Thin Female Models in Advertising: A Cross Cultural Examination of Third Person Perception and Its Impact of Behaviours. Asia - Pacific Journal of Marketing and Logistics, Vol. 15 (2/24), pp Global Journal of Business Management

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