Hello Everyone, We would like to take the internet medium to share with you the work done by Me and my friend. We belong ot the MBA(Tech.) course from NMIMS, bacth of 2004-09, telecom, 5th year. In the period from Nov'07-Feb'08, we did a survey on the defects in the handsets circulating in the indian mobile market and the levles of customer satifsfaction prvaling. The survey was of 309 samples among college going students from various parts of the city. We got some shocking results: 1. 28% of all phones circulating in the market are defective as these defects have occured due to internal problem of the phone and they have occure within 1 year of purchase. 2. It takes an average of 7 days to 22 days to get a phone repaired and 38 days to 88 days to get the phones replaced. 3. If asked would you like to buy the phone from the same company again: 11% of the population said that they would not like to buy the phone from the same company again. 35% is unsure on the decesion, while the remaining 54% would like to buy the phone from the same company again. The survey included Nokia, Sony Ericsson, Motorla, Samsung, LG, O2, the distribution is as given in the report. We would happy if the media wishes to publish this report. All the data is well documented and we have the real data supporting it. For any enquiries, We can be reached at jai.awatramani@gmail.com aliasgaryn@yahoo.com

1. Survey on Mobile Phones and
their defects
JAI AWATRAMANI & ALIASGAR NAVAGHARWALA
MBA(Tech.), Telecom, Class of 2004-09
NMIMS University
The study result is intended to give understanding of the
Indian Mobile Phone Market in terms of the defects that
occur in Mobile Phones, Customer Satisfaction to
complaint handling and Customer Loyalty.

2. Executive Summary
India and the Indian Telecommunications Market
Mobile phone production growth
•The Second fastest growing economy. estimation in India
•The fastest growing telecom sector of the
• CAGR of 28.3 per cent from 2006 to 2011,
world. Teledensity of more than 28%.
totalling 107 million handsets by 2010.
•300 million mobile connections
• Revenues CAGR of 26.6 per cent from 2006
The Stretch of Mobile Phone to 2011, touching US$ 13.6 billion
Teenager to 75 year old
•
Urban to Rural
•
Multimedia Rich to Plain
•
vanilla
Rs.1500 to Rs.50,000
•
More than 10 brands for
•
options
More than 150 options
•
Available Everywhere
•
Highly Marketed
•
Prices Declining by the day
•
Niche Players also starting to
•
gain increasing market share

3. Executive Summary
The Survey
• Need for the Research
• In the Month of October-November a spate of incidents among friends with regard to defects
occurring with their Mobile Phones prompted us to discuss the issue
• A deeper observation revealed that there are many defects and there is a decreasing level
customer care by service centers to defects complaints, leading to frustrations among the user
• The two researchers being from the field of telecom further generated huge curiosity to do a
sample survey study and see the actual statistics prevalent.
What did we measure? Survey Details
• The Mobile Phone Manufacturer • Sample Size – 309
• The Price of Mobile Phone
• Duration – Nov’07 – February’08
• The Type of Defect
• Total Cost of phones measured –
• Rectification of Defect?
30 lakhs
• Days required for Rectification
• Location of Rectification
• Customer Satisfaction to
Complaint handling
• Satisfaction to Current working of
Phone
• Changeover Chance

4. 28% of Phones sold in market have
The Results
manufacturing defect
Proportion of Defective Phones Due to Internal Problem
occuring within 1 year from the date of Purchase from the total
sample
Average time To get phone repaired – 16 days
Average time To get phone replaced –>30 days
87, 28%
38% of the
Yes people who
visited 23, 38%
No
authorized
service center
were not
satisfied with
the way their 38, 62%
222, 72% complaint was
handled
20% are of total respondents
are not satisfied with current
Would you like
working of their Phone
to purchase the
phone from the
61, 20%
same company
again
108, 35%
Maybe
No
166, 54% Yes
35, 11%
248, 80%

5. Mobile Phones and their Defects
Research problem
• A study of defects in Mobile Phones, the rectification
process and its effect on Customer Loyalty.
OBJECTIVE
• To study the percentage of defective phones in
the market
• To study the time taken for rectification.
• To study customer satisfaction towards
rectification process and Customer loyalty
towards the handset manufactures.

6. VARIABLE CLASSIFICATION
• Dependent Variable: Defects
• Intermediate Variable: Rectification Process
• Independent Variable: Customer Satisfaction & Customer
Loyalty

7. Operational Definitions
• Defect in Phone: - Malfunctioning of the Handset in
certain identified areas
• Multiple occurrence of Defect: - Defect occurring more
than once (whether same or a different defect) in the phone
lifetime.
• Software • Keypad • Hearing
• Type of Defect: • Headphones/ • Display • External Body
Attachments • Speakers
• Joystick • Network
• Cause of defect: - Whether the defect is within the phone or
cause by some mistake from the user
• Rectification of Defect: - A defect can either be rectified or
replaced.

8. Operational Definitions
• Place of Rectification: - Defective phones are rectified
at any Provate Shop or Authorized Service Center
• Time required for rectification: - No. of Days
• Satisfaction for complaint handling: - Are the
customer satisfied or unsatisfied with the way their
complaints are handled
• Customer Satisfaction for current working of
Phone: - Regardless of defect or no defects
• Customer Loyalty occurring from various
factors: - How many users would like to purchase from
the same manufacturer again.

9. HYPOTHESIS
Hypothesis framed based on possible manufacturing standards and
service levels timing given to solving customer complaints
Hypothesis
1. 99% phones do not have manufacturing defect
2. 90% is the service level of complaints. 90% of all phones need
repairing should be repaired within 2 days.
3. 99% of the people will always be loyal to manufacturer of the
current handset they are using

10. Scope of the Research
• Majorly College going students
• Convenience method of random sampling
was adopted

11. Research Tools
• Checklist with 4 parts
• Part 1: Customer Demographics
• Part2:Defect occurrence in Mobile & Defect detailing
• Part3:Customer Satisfaction to the way the Complaint
was handled
• Part4: Satisfaction towards the current working
conditions of phone and loyalty towards company.

12. Sampling Design – How was the
sampling done
The population consists of every college student owning a
Mobile Phone. Colleges are chosen because in Mumbai,
colleges have students coming from every part of Mumbai. The
population estimation of this sample covers all age groups as
fundamentally the different mobile phones used in al age
groups remains the same.

13. Information Flow Chart

14. Objective 1
To find out the percentage of defective mobile phones circulating in the
market, the type of defect, cause of defect and occurrence of defect.
Hypothesis 1: - 99% phones do not have manufacturing defect
•
• Question 1: How many mobile • Question 2: Cause of defect?
handsets in the market are User Mistake or Internal
defective? Problem? – Total defect - 129
No Yes
26, 20%
129, 42%
Your Mistake
Internal Problem of the Phone
180, 58%
103, 80%

15. Objective 1
To find out the percentage of defective mobile phones circulating in the
market, the type of defect, cause of defect and occurrence of defect.
• Question 4: Out of the total
4:
• Question 3: When did the
sample how many were defective
defect occur from the date of
due to internal problem of the
purchase? phone within the first year from the
date of purchase of the phone?
120
100 Proportion of Defective Phones Due to Internal Problem
100 occuring within 1 year from the date of Purchase from the total
84 sample
80 71
87, 28%
60
Yes
47
No
40
22
20
222, 72%
0
1) Within 1 2) Within 3 3) Within 6 4) Within 12 5) More
months months months months than 1 yr
Percentage
Cumulative Percentage

16. FINDINGS OF OBJECTIVE 1
• 42% phones sampled are defective
• 28% are visibly due to internal problem of
the phone as the defect has occurred
within 1 year from the date of purchase
and it is due to internal problem.
• 71% of the defects take place with 6
months of purchase

17. TESTING OF HYPOTHESIS 1
• Null Hypothesis: - 99% phones do not have
manufacturing defect
• The data shows that 28% of the Mobile
Phones have inherent manufacturing defect
when they are sold
• Hence
• Null Hypothesis is “Rejected”

18. Objective 2:
To find out where did the customer rectify his handset and in how many days
Hypothesis 2: - 90% is the service level of complaints. 90% of all
2:
•
phones need repairing should be repaired within 2 days.
Question 6: What was the
• Question 7: Of the phones which
•
number of phones that were were repaired/replaced where the user
repaired replaced or were not did got it repaired from i.e. Authorized
rectified by the user? Service Centre or Private Shop?
Authorized Service Centre
12, 9%
18, 14% Private Shop
Not Rectified
Repaired
Replacement
50, 45%
61, 55%
99, 77%

19. Objective 2:
To find out where did the customer rectify his handset and in how many days
• Question 8: Of the total number of the phones which were
repaired/replaced where did the user got it repaired from i.e. Authorized
Service Centre or Private Shop?
Replacement Authorized Service Centre Replacement Private Shop
3, 25%
47, 47%
52, 53%
9, 75%
Repaired Authorized Service Centre Repaired Private Shop

20. Objective 2:
To find out where did the customer rectify his handset and in how many days
• Question 9: How many days it took for the Authorized Service Centre and
the Private Shop to get the defect rectified?
Replacement (days)
Repaired (days)
N 12
N 99
Average 55
Average 16
Upper Limit 76
Upper Limit 21
Lower Limit 33
Lower Limit 10
Replacement
Repaired
Authorized Private Shop Authorized Private Shop
N 52 47 N 9 3
Average 15 17
Average 63 30
Median 6.5 5
Upper Limit 88 103
Mode 1 2
Lower Limit 38 -42
Upper Limit 22 25
Lower Limit 7 8

21. FINDINGS OF OBJECTIVE 2
• Defects were rectified in the following
manner – 45% in Private shop, 55% in
ASC
• Average time to get phone repaired
from either an authorized service
centre or private shop is 16 days and
time taken to get replaced is 55 days.

22. TESTING OF HYPOTHESIS 2
• Null Hypothesis: - 90% is the service level of complaints. 90%
of all phones need repairing should be repaired within 2
days.
• The data shows that population average time taken for
repairing a phone takes 7days to 22 days whereas for
replacement takes 38 days to 88 days this leads us to reject
the null hypothesis. This shows us the significant amount of
time taken to get a defective handset sold by the
manufacturer to repair or replace it.
• Null Hypothesis is “Rejected”

23. Objective 3
To study customer satisfaction towards rectification process and current
working of phone and Customer loyalty towards the handset manufactures.
• Hypothesis 3: - 99% of the people will always be loyal to
manufacturer of the current handset they are using
• Question 10: What was the satisfaction level of the people who
visited the Authorized Service Centre/ Private Shop to get their
phone rectified (replaced/repaired)? No
Private Shop
Yes
23, 38%
23, 44%
29, 56%
38, 62%
No
Authorized Service Yes
Center (ASC)

24. Objective 3
To study customer satisfaction towards rectification process and current
working of phone and Customer loyalty towards the handset manufactures.
• Question 11: How many • Question 12: What is the12:
respondents of the total sample
Brand Loyalty of the users?
are currently satisfied with the
working of their phone? Would you like to purchase the phone from the same company
again?
61, 20%
108, 35%
Maybe
No
166, 54% Yes
35, 11%
248, 80%
No
Yes

25. Objective 3
To study customer satisfaction towards rectification process and current
working of phone and Customer loyalty towards the handset manufactures.
• Question 13: What is the relationship between the
performance of the phone and loyalty towards company?
160 Are You Satisifed with working of Your Phone = Yes,
Would You Purchase from the Same company Again? - YES/NO/MayBe
140
120 85, 34%
Maybe
100
Count
No
Yes
80 152
152, 62%
60 11, 4%
85
40
Are you satisfied with the working of your Phone now = No,
20 Would you Purchase from the same company Again? - YES/NO/MayBe
24 23
14
11
23, 38%
14, 23%
0
Yes No Maybe Yes No Maybe
Yes No
Maybe
Are you Satisfied with Working of Phone and No
Would You Purchase from the same company Again
Yes
24, 39%

26. Objective 3
To study customer satisfaction towards rectification process and current
working of phone and Customer loyalty towards the handset manufactures.
• Question 14: What is the relationship between defect
occurrence of phone and satisfaction with current working
of the phone?
Did The Phone ever had a defect = No
Are You satsified with the working of your Phone Now -YES/NO
Did The Phone ever had a defect = Yes
Are You satsified with the working of your Phone Now -YES/NO
61, 20%
52, 40%
No No
Yes Yes
77, 60%
248, 80%

27. Objective 3
To study customer satisfaction towards rectification process and current
working of phone and Customer loyalty towards the handset manufactures.
Question 14: What is the percentage of respondents who have
•
faced a defect within 1 year from the date of purchase and the
loyalty towards the company to buy from the same
manufacturer?
Defect occured within the warranty period, and loyalty towards
brand
45, 41%
46, 42%
Maybe
No
Yes
18, 17%

28. Objective 3
To study customer satisfaction towards rectification process and current
working of phone and Customer loyalty towards the handset manufactures.
• Question 14: To find the relationship between a defective piece
and its effect on customer loyalty

29. FINDINGS OF OBJECTIVE 3
• Of the entire sample, 54% would like to buy the phone
from the same company again, while 11% would not and
35% are unsure.
•When a phone does not has a defect 62% would like to buy the
phone from the same company again, while when the phone has a
defect only 43% would like to buy the phone from the same
Loyalty
company again. Defect YES NO MAYBE
Defective Phone 43 16 41
No defects 62 8 30
• Customers having a defective handset: - 38% were
unsatisfied with complaint handling.
• Phone Rectified to a Private Shop Centre, “44%” were not
satisfied with the way their complaint was Handled.

30. TESTING OF HYPOTHESIS 3
• Null Hypothesis: - 99% of the people will always be loyal to
manufacturer of the current handset they are using
• The above data shows us 11% of the population would not
like to buy the phone from the same company again, whereas
35% is unsure. This leads us to reject the null hypothesis. Our
analysis also shows us the relationship between defective
handsets and loyalty. If defects were to be zeroed customer
loyalty would increase to 62% directly affecting the cost of
marketing. gives us a clear results whether to accept or reject
the null hypothesis, while point 2 gives us ways to improve
loyalty by having defect free handsets.
• Null Hypothesis is “Rejected”

31. Recommendations
• Lower Defects increase loyalty
• Lower customer dissatisfaction towards
complaints handling increase loyalty
• Regulator should set quality benchmarks
• The Price paid should be worth the service.

32. Following was the share of various
phones surveyed
Nokia – 213
•
Sony Ericsson – 47
•
Motorola – 24
•
Samsung – 11
•
LG – 7
•
O2 – 3
•
Others- 4
•
• Total - 309 samples.
• Based on purely random sampling

33. For any further enquiries contact
jai.awatramani@gmail.com
aliasgaryn@yahoo.com