20160406 naresh 201517MR_TERM PAPER_V4_04

INDUS BUSINESS ACADEMY
LAKSHMIPURA, THATAGUNI POST
KANAKAPURA MAIN ROAD
BENGALURU 560062, INDIA
WWW.IBA.AC.IN
A SURVEY ON BUYING BEHAVIOR OF AIRTEL CUSTOMERS WHILE PURCHASING
TARIFF PLANS IN SOUTH BANGALORE
A Project Report for the partial fulfilment of the requirement for
Post-Graduate Diploma in Management
Subject: Market Research
Under the supervision of
Professor Chandra Kant, Faculty member and Efficiency Coach, Indus Business Academy,
Bengaluru
Submitted to the Indus Business Academy, Bengaluru
Submitted by
V. Naresh
PGDM1517/004, Indus Business Academy, Bengaluru, India
Mobile: +91 81970 89380 Email: fpb1517004.iba2017@gmail.com /
nareshkmr343@gmail.com

Page ii
Table of Contents
Abstract……………………….............................................................................................................................................1
Background………………....................................................................................................................................................1
Review of Literature ..............................................................................................................................................................2
The Research Gap ..................................................................................................................................................................5
Objectives of this Research ..................................................................................................................................................5
Methodology……………… ..................................................................................................................................................6
1. The Research Problem and Hypothesis………………………………………………...6
2. Data Collection………………………………………………………………………....7
3. Analysis and Interpretation…………………………………………………………..…8
4. Limitations and Assumptions………………………………………………………....20
5. Conclusions……………………………………………………………………….…..21
Bibliography……………………………………………………………………………………………………. 22

MARKET RESEARCH A SURVEY ON BUYING BEHAVIOR OF
SUBSCRIBERS WHILE PURCHASING MOBILE TARIFF PLANS
Property of IBA, Bangalore Thursday, 28 April 2016 Page 1
Abstract
This research explains how Airtel customers buy mobile tariff plans. In this study almost 48
persons who are using Airtel network in South Bangalore and were asked different questions
relating to the study. The study confirmed that Airtel customers buy tariff plans depending up on
their purpose (it as explained briefly in research methodology), factors affecting his decision
making while purchasing the tariff plan and how buying behavior differs among different age
groups and genders.
Background
Bharati Airtel was a Telecom company with a huge customer base all over India, with
243,289,000 GSM mobile connections. There are different types of tariff plans for voice, data,
SMS and many other services offered by Airtel for its users. The plans were uniform for all the
users. The usage and preference of tariff plan differs among people of different ages. Same tariff
plans were not generally preferred by all people, because the buying behavior differs from age-
to-age and gender-to-gender. Thus, Airtel need to know the tariff plan preferences of different
age groups, the minimum validity period they prefer and how they get information about the
tariff plans.
If Airtel neglected this or its competitor started to work on it before Airtel realizing it. Then,
Airtel have to face big problem like 1. Its customers may switch to other network, 2. Decrease in
sales of tariff plans, 3. Heavy expenditure on advertisements.

Review of Literature
1. Prepaid Recharge cards.
A survey was done on medical college students in Chennai, to know their usage pattern on pre-
paid mobile recharge cards. It was done by (B. Karthikeyan, 2007). This research concentrated
on 1. Amount spent on the recharge per month, which was relevant to family income per month,
2. Frequency of outgoing calls, 3. Time of recharge, 4. Average minimum balance maintained,
5. Purpose of making an outgoing call and 6. Average amount spent for outgoing calls in a day.
200 questionnaires having various demographic variables were distributed among students of
M.B.B.S., M.S., M.D, B. Pharm, M.Sc., B.D.S and M.D.S. But, only 181 questionnaires were
received. Statistical techniques like analysis of variance test (Chi-Square) and t-test were
performed based on these 181 questionnaires response to know the usage pattern on pre-paid
mobile recharge cards. This survey brought out the usage pattern on Pre-paid Mobile Recharge
Cards by the Medical College Students, Chennai. The survey done on medical college students
has close relevance with this research on buying behavior of customers while purchasing a voice
tariff plan. The factors which determined in the medical college survey can also be considered in
the research on buying behavior of customers while purchasing a voice tariff plan to know how
they purchase a tariff plan.
2. Sales Analysis of Prepaid Mobile Recharges.
The research was done to find out the most preferred network provider among the university
students, to find out popular recharge packs in preferred network provider and to identify the
peak sale days for the Retailer based on monthly income. The result of the research was Monday,
Tuesday and Wednesday are the peak days for retailers, most of the students who participated in
the survey done recharges on these days. Among the sample size of 6651 collected in 20 working

days, which was done in Dehradun in 2014. This research was done by (Shivangnee Sharma,
2014). The objectives are closely related to this research paper, buying behavior of customers
while purchasing a voice tariff plan.
3. Preferences over full talk time recharges.
The research, “A Study on People Preference for Selecting Full Talk Time Offers” was done to
know the factors that influence or attract customers to give profitable talk time at low price and
explore into finding out the likeliness of purchasing attractive talk time from the service provider
and knowing the behavior of a customer while opting for full talktime. The category of research
for this study is descriptive research format. The area covered under the study was Hyderabad
due to accessibility of well mixed population based in Hyderabad and well-structured
questionnaire was designed and managed to collect samples across Hyderabad due to huge
population and need for variety of respondent, group sampling method was chosen, the sample
size was 200. The variables considered for this study are customer demographics, customer
satisfaction with existing mobile service provider. Factors influencing recharging attitude for full
talk time packages and factors that affect recharging behavior of customers and this were
grouped into categories, Customers survive, low tariff plan with full talk time recharge packs,
high talk time recharge packs and service problems. The results from this study have found that
lowest full talk time plays very important role for recharging. It was found that there is relation
between switching and purchasing a new service provider and the factors (customer service
problem, usage problem) etc. After analyzing and finding of study we proposed the mobile
service provider concentrate on increasing attractive low full talk time and network stability
competitively. This research was done by Uzma Mahreen, Juveria Fatima and Rini Raveena

Singh who were students of Student, ICBM-School of Business Excellence, Hyderabad, India
(Uzma Mahreen, 2014).
4. Comparative Analysis of Rural Consumers' Preferences for Mobile Service Provider
The research, “Comparative Analysis of Rural Consumers' Preferences for Mobile Service
Providers” concentrates on identifying the major factors that rural customers of western &
eastern Uttar Pradesh consider while choosing a mobile service provider. Data are collected from
200 Rural consumers (100 from each circle) using non-probability convenience sampling.
Responses were asked on agreement continuum continuing scale ranging from Most Important to
Least Important. Statistical techniques like exploratory factor analysis & 'f test were used to
analyze the data. It was found that service charges & tariff plans signal (connectivity) are most
important factors for choosing a mobile service provider. Understanding of rural consumers'
mind can help in formulating relevant marketing strategies and also give greater level of
satisfaction for the rural consumers. It was found that usage cost and tariff offered by the service
providers was considered for selecting a mobile operator by customers. Also, rural consumers
give high importance to the connectivity of network. The research provides insights into rural
consumers' preferences for mobile service providers in Uttar Pradesh (East& West circle) and an
attempt to analyze the reasons for the differences in both markets. This was done by (Sujit
Kumar) Sujit Kumar, Malik & Rajeev Kumar & Dubey, comparative analysis of rural
consumers' preferences for mobile service providers. Amity Management Review. Jan-Jun2013,
Vol. 3 Issue 1.

The Research Gap
The researches stated above are concentrated on usage of recharge cards, preferred network
provider and preference of full talk time offers in different areas of the country. This study
concentrates on tariff plan preference, purpose of the tariff plan or its usage and factors affecting
their decision while purchasing a tariff plan depending upon age group. This was done through
offline. This research mostly deals with the subscribers from south Bengaluru.
Objectives of this Research
 To know how purchasing behavior differs among age group.
 To know the average validity period of a tariff plan preferred by the customers.
 To find out the purpose/ usage of the tariff plans by the customers.
 To find out the factors that are effecting the decision of purchasing a tariff plan.

Methodology
1. The Research Problem and Hypothesis
The plans were uniform for all the users. The usage and preference of tariff plan differs among
people of different ages and different socio-economic factors. Airtel need to know the tariff plan
preferences of different age groups, the minimum validity period they prefer and how they get
information about the tariff plans. This study was concentrated only on buying behavior
depending on age.
Hypothesis:-
1. a. H0: 60% of the customers are tend to buy tariff plans with validity of 10-30 days
b. H1: 60% of the customers are tend to buy tariff plans with validity of 10-30 days
2. a. H0: 50% of the customers are buying the tariff plans by looking at the promotional
messages through SMS.
b. H1: 50% of the customers are buying the tariff plans by looking at the promotional
messages through other mediums.

2. Data Collection
The target sample for this research are people who are of the age between 18 and 60 years and
residents of South Bangalore. The sample are users of Airtel Network of prepaid connection. The
reason for taking only age into consideration was to show different buying behavior exists
among different age groups while purchasing a tariff plan. This research will be done by
collecting primary data manually using printed questionnaires, with a sample size of 48
respondents. The respondents includes both male and female of 4 age groups (18-28, 28-38, 38-
48, 48-60) in equal numbers.

3. Analysis and Interpretation
Question-1
Tariff plan usage based on age:-
Age
groups
Only Voice Only Data Both Voice and
Data
Neither Voice nor
Data
Male Female Male Femal
e
Male Female Male Female
18-28 16.66% 0% 50% 50% 33.33% 50% 0% 0%
28-38 50% 33.33% 0% 33.33% 50% 33.33% 0% 0%
38-48 66.66% 33.33% 0% 0% 33.33% 0% 0% 66.66%
48-60 50% 66.66% 0% 0% 16.66% 16.66% 33.33% 16.66%
Figure-1:- Tariff plan usage based on age
Interpretation:-
The above table shows that, 16.6% of males between 18 and 28 age are using only voice tariff
plans. 50% of males between 18 and 28 age are using only data tariff plans. 33.3% of males
between 18 and 28 age are using both voice and data tariff plans.
50% of females between 18 and 28 age are using only data tariff plans and remaining 50% of
females are using both voice and data tariff plans.
50% of males between 28 and 38 age are using only voice tariff plans and remaining 50% of
males are using both voice and data tariff plans.

33.3% of females between 28 and 38 age are using only voice tariff plans. 33.3% of females are
using both voice and data tariff plans and the remaining 33.3% of females are using only data
plan.
66.6% of males between 38 and 48 age are using only voice tariff plans and remaining 33.3% of
males between 38 and 48 age are using both voice and data tariff plans.
33.3% of females between 38 and 48 age are using only voice tariff plans and remaining 66.6%
of females between 38 and 48 age are not using any voice or data tariff plans.
50% of males between 48 and 60 age are using only voice tariff plans. 16.6% of males between
48 and 60 age are using both voice and data tariff plans and remaining 33.3% of males between
48 and 60 age are not using any voice or data tariff plans.
66.6% of females between 48 and 60 age are using only voice tariff plans. 16.6% of females
between 48 and 60 age are using both voice and data tariff plans and remaining 16.6% of females
between 48 and 60 age are not using any voice or data tariff plans.

Question-2:-
Preferred validity period:-
Age
groups
0-10 days 10-30 days 30-60 days 60-90 days
Male Female Male Female Male Female Male Female
18-28 0% 0% 50% 83.33% 50% 16.66% 0% 0%
28-38 0% 0% 66.66% 66.66% 0% 33.33% 33.3% 0%
38-48 0% 0% 66.66% 50% 16.66% 50% 16.66% 0%
48-60 0% 0% 83.33% 33.33% 0% 66.66% 16.66% 0%
Table-2:- Preferred validity period
Interpretation:-
The above table shows that, 50% of males between 18 and 28 age preferred 10-30 days validity
period for a tariff plan and remaining 50% of males between 18 and 28 age preferred 30-60 days
validity period for a tariff plan.
83.3% of females between 18 and 28 age preferred 10-30 days validity period for a tariff plan
and remaining 16.6% of females between 18 and 28 age preferred 30-60 days validity period for
a tariff plan.
66.6% of males between 28 and 38 age preferred 10-30 days validity period for a tariff plan and
remaining 33.3% of males between 28 and 38 age preferred 60-90 days validity period for a
tariff plan.
a tariff plan.

66.6% of males between 38 and 48 age preferred 10-30 days validity period for a tariff plan.
tariff plan.
50% of females between 38 and 48 age preferred 10-30 days validity period for a tariff plan and
remaining 50% of females between 38 and 48 age preferred 30-60 days validity period for a
tariff plan.
tariff plan.
a tariff plan.

Hypothesis Testing:-
H0: 60% of the customers are tend to buy tariff plans with validity of 10-30 days
H1: 60% of the customers are tend to buy tariff plans with validity of 10-30 days
Ho: p≥0.60
Ha: p<0.60
P = 30/48
= 0.625
n = 48
𝑍𝑐𝑎𝑙 =
𝑃−𝑝
√ 𝑝(1−𝑝)
𝑛
=
0.625 − 0.60
√0.60(1 − 0.60)
48
= 0.353
Ztab= 1.645
Zcal = 0.353
Zcal < Ztab
Hence null hypothesis is accepted.
By this we can conclude that 60% of the Airtel customers are tend to buy validity packs of 10-30
days

Question-3:-
Purpose/ usage of the tariff plans by the customers.
Age
groups
family friends work/
college
others
18-28 25% 35% 11.66% 28.33%
28-38 40% 11% 40% 9%
38-48 32.50% 38.33% 11.67% 15.83%
48-60 50% 26.25% 12.50% 10%
Table-3:- Male Break-up
Age
groups
family friends work/
college
others
18-28 22.50% 32.50% 21.66% 23.35%
28-38 30% 25% 40% 5%
38-48 35.80% 30% 22.50% 17.53%
48-60 49.09% 26.81% 17.72% 8.18%
Table-4:- Female Break-up
Interpretation:-
Table-3 shows that, males between 18 and 28 age use tariff plans in this way: 25% for family,
35% friends, 11.6% for college/ work and 28.33% for other purposes.
Males between 28 and 38 age use tariff plans in this way: 40% for family, 11% friends, 40% for
work and 9% for other purposes.
Males between 38 and 48 age use tariff plans in this way: 32.5% for family, 38.33% friends,
11.67% for work and 15.83% for other purposes.

Males between 48 and 60 age use tariff plans in this way: 50% for family, 26.25% friends,
12.50% for work and 10% for other purposes.
Table-4 shows that, females between 18 and 28 age use tariff plans in this way: 22.50% for
family, 32.50% friends, 21.66% for college/ work and 23.35% for other purposes.
Females between 28 and 38 age use tariff plans in this way: 30% for family, 25% friends, 40%
for work and 5% for other purposes.
Females between 38 and 48 age use tariff plans in this way: 35.80% for family, 30% friends,
Females between 48 and 60 age use tariff plans in this way: 49.09% for family, 26.81% friends,

Question-4:-
Factors affecting the customers decision while a tariff plan
Age
groups
Promotional
sms
Promotional
calls
Word of mouth
( friends/other
users)
Dealers Apps
Male Female Male Female Male Female Male Female Male Female
18-28 4 6 0 0 0 0 0 0 2 0
28-38 3 4 1 0 2 1 0 1 0 0
38-48 3 2 0 0 0 2 1 2 2 0
48-60 2 2 0 0 1 1 3 3 0 0
TOTAL 12 14 1 0 3 4 4 6 4 0
26 1 7 10 4
Table-5:- Factors
Interpretation:-
Table-5 shows that, 26 persons out of 48 of our sampled persons, buys tariff plan by getting
information about the tariff plan from promotional sms. 10 persons out of 48 of our sampled
persons, buys tariff plan by getting information about the tariff plan from dealers. 4 persons out
of 48 of our sampled population, buys tariff plan by getting information about the tariff plan
from dealers. Only one person out of 48 sampled person buys tariff plan by getting information
about the tariff plan from promotional calls.

Hypothesis Testing
H0: 50% of the customers are buying the tariff plans by looking at the promotional messages
through SMS
H1: 50% of the customers are buying the tariff plans by looking at the promotional messages
through other mediums
Ho: p≥0.50
Ha: p<0.50
P = 26/48
= 0.541
n = 48
𝑍𝑐𝑎𝑙 =
𝑃−𝑝
√ 𝑝(1−𝑝)
𝑛
=
0.54 − 0.50
√0.50(1 − 0.50)
48
= 0.554
Ztab= 1.645
Zcal = 0.554
Zcal < Ztab
Hence null hypothesis is accepted.
From this we can conclude that 50% of the Airtel customers are buying the tariff plans by
looking at the promotional SMS.

Findings:-
 It was found that age group of 18-28 and 28-38 were using both voice and data plans.
 It was found that males of age group 38-48 and both males and females of age group 48-
60 were using more voice tariff plans than other groups in the sample.
 It was found that more number of females of age group 38-48 were not using any tariff
plans.
 It was found that large percentage of the sample were preferring the tariff plans with a
validity period of 10-30 days.
 It was found that half of the males in the age group of 18-28 and females in the age group
of 38-48 and 48-60 are preferring the tariff plans with a validity period of 30-60 days.
 It was found that males in the age group of 28-38 and 48-60 spends most of their tariff
plan for family purpose.
 It was found that males in the age group of 18-28 and 38-48 spends most of their tariff
plans for family purpose.
 It was found that males in the age group of 28-38 spends most of their tariff plans for
work purpose.
 It was found that females in the age group of 28-38, 38-48 and 48-60 spends most of their
tariff plans for family purpose.
 It was found that females of all age groups spends large portion of their tariff plans for
friends purpose.
 It was found that females in the age group of 28-38 spends most of their tariff plans for
work purpose.

 It was found that most of the people in sample gets information about tariff plans through
promotional SMS.

Suggestions & Recommendations:-
 Airtel can bring combo tariff plans which consists of both voice and data tariff plans.
 Airtel can bring some special tariff offers which can be dedicated to only few members of
friends and family for their customer. Because it was found most of the sample among
different age groups were spending most of the tariff plan/ mobile expenditure for friends
and family.
 Airtel can decrease its expenditure on promotional calls and television advertisements
because most of the people gets information about the tariff plan through promotional
SMS.
 Airtel can promote its mobile app to the customers of age group 18-28 and 28-38 because
most of them are using data tariff plans and some people started using Airtel app.
 Airtel can continue to bring tariff plans with validity of 30 days.

4. Limitations and Assumptions
Limitations:-
 The sample was limited to south Bangalore, if we see whole Bangalore the analysis may
not holds good.
 The sample only resembles, who already bought tariff plans, this survey doesn’t explain
the customers perception towards tariff plan.
 Due to the limited time the data collection from large sample was unable to do.
 The study concentrated only on tariff plans and other recharge offers or recharge card
plans considered.
Assumptions:-
 This study assumes that these responses holds good/ resembles the entire population of
South Bangalore.

5. Conclusions
From the research, it was found that Airtel can bring some new tariff plans, which can serve
better for its customers. It was discussed above in brief. It can also take its mobile app into
people because its customers are now more connected to internet. Presently, airtel customers
were satisfied with the existing tariff plans and most of them are using them.

Bibliography
B. Karthikeyan, T. T. (2007). Usage Pattern on Pre-paid Mobile Recharge Cards with. Chennai:
Journal of Contemporary Research in Management, vol. I, no. 1, 2, pp. 167-171.
Shivangnee Sharma, K. S. (2014). Sales Analysis of Prepaid Mobile Recharges. Dehradun:
International journal of innovative research and development.
Sujit Kumar, M. &. (n.d.). Comparative Analysis of Rural Consumers' Preferences for Mobile
Service Providers. Amity Management Review. Jan-Jun2013, Vol. 3 Issue 1.
Uzma Mahreen, J. F. (2014). A Study on People Preference for Selecting Full Talk Time Offers.
Chennai: International journal of innovative research and development.

20160406 naresh 201517MR_TERM PAPER_V4_04

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (17)

Semelhante a 20160406 naresh 201517MR_TERM PAPER_V4_04

Semelhante a 20160406 naresh 201517MR_TERM PAPER_V4_04 (20)

Mais de Vanga Naresh

Mais de Vanga Naresh (16)

20160406 naresh 201517MR_TERM PAPER_V4_04