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Introduction to the study

Consumer behaviour refers to the
mental

and

observable

emotional
behaviour

processes
of

and

consumers

the

during

searching, purchasing, and post consumption of

product or service.
A study of consumer behaviour in
any

area

would

investigate

what

kinds

of

consumers buy or would buy product? What

features do they look for? What benefits they
seek? How much are they willing to pay? How
many are likely to buy now? Do they wait for
prices to come down? The answers to these can be
investigated

through

consumer

research

and

provide manufacturers with important data for

determining features and promotional strategy
etc.
Traditionally, consumers have been
defined very strictly in terms of economic goods
and services wherein a monetary exchange is
involved. This concept, over a period of time, has
been broadened.
For a variety of reasons, the study
of consumer behaviour has developed as an

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important and separate branch in marketing

discipline. Scholars of marketing had observed
that

consumers

did

not

always

behave

as

suggested by economic theory.

Objectives
1. The primary objective of study is to know
consumer behaviour about mobile service
providers.
2. To know percentage of consumers using
different mobile services.

Scope
1. The area of scope of study involves Sangli,
Miraj, Jaysingpur, Kolhapur, and Pune.
2. The study is concerned only to understand the
consumer behaviour of mobile users towards
service providers.

Limitation

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1. Time required for data collection is usually

high and not sufficient time available in actual
research.
2. It

is

difficult

to

reach

widely

dispersed

sample.

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Consumer Behaviour
Definition-Consumer behaviour refers to the
mental and emotional processes and the physical
activities of people who purchase and use goods
and services to satisfy particular needs and
wants.

Disciplines involved in the study of consumer

behaviour
The

discipline

of

consumer

behaviour

has

borrowed heavily from concepts developed in

other disciplines of study such as psychology,
sociology, social psychology, cultural anthropology
and economics.
Psychology is the study of individual which
includes motivation, perception, attitudes, and
personality and learning theories. All these factors
are critical to an understanding of consumer
behaviour

and

help

us

to

comprehend

consumption related needs of individuals, their

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actions and responses to different promotional

messages

and

experiences

products

and

and

the

personality

way

their

characteristics

influence product choice.

Sociology

is

the

study

of

groups.

When

individuals from groups, their actions are some

times quit different from the actions of those very
individuals when they are operating alone. The
influences of group memberships, family and
social class on consumer behaviour are important
for the study of consumer behaviour.
Social Psychology is a combination of sociology
and psychology and studies how an individual
operates in a group. It also studies how those
whose

opinions

reference

they

groups,

respect

their

such

families

and

as

peer,

opinion

leaders influence individuals in their consumption

behaviour.
Cultural Anthropology is the study of human
beings in society. It explores the development of
core beliefs, values and customs that individuals
inherit from their parent and grandparents, which
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influence

their

purchase

and

consumption

behaviour. It also studies subcultures and helps

compare consumers of different nationalities and
cultures.
Economics: An important aspect of the study of
economics is the study of how consumers spend
their funds, how they evaluate alternatives and
how

they

make

decisions

to

get

maximum

satisfaction from their purchases.

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Consumer

Behaviour

Application in Marketing
Selecting Target Market:
A review of market opportunities often helps
in identifying distinct consumer segments with
very

distinct

Identifying

and

these

unique
groups,

wants
learning

and

needs.

how

they

behave and how the make purchase decisions

enables the marketer to design and market
products or services particularly suited to their
wants and needs.
Marketing-mix decisions:
Once

unsatisfied

needs

and

wants

are

identified, the marketer has to determine the right

mix

of

product,

price,

distribution

and

promotion. Consumer behaviour study is very

helpful in finding answers to many questions.
Product:
The marketer designs the product or
services that would satisfy unfulfilled needs or
wants. Further design regarding the product
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concern to size, shape and features. The

marketer also to decide about packaging
important aspect of service, warranties and
accessories etc.

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Price:
The

second

marketing

mix

important
is

price.

component

Marketers

of

must

decide what price to charge for the product or

service. These decisions will influence the
flow of revenue to the company.
Distribution:
The next decision relates to distribution
channel, that is, where and how to offer
production

services

for

sale.

Should

the

products be sold through all the retail outlets

or only through selected ones? Should the
marketer use only the existing outlets, which
also sale competing brands, or should new
exclusive outlets selling only the marketers
brands be created? Is the location of retail
outlets important from consumers point of
view? Should the company think of direct
marketing?
The answers to these questions are furnished
by consumer behaviour research.
Promotion:

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It

is

concerned

communications

to

with

consumers.

marketing
The

more

important promotion methods are advertising,

personal selling etc. Marketer has to decide
which method would be suitable.

Consumer Research Process

Consumer research process involves six major
steps.
1. Defining research objectives
2. Collecting and evaluating secondary data
3. Primary research design
4. Collecting primary data
5. Analysing data and
6. Report preparation

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Service providers in India

Bharti Airtel
Reliance Communications
Bharat Sanchar Nigam Limited
Vodafone Essar
Idea Celluar
Tata Teleservices

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Service providers in India

Bharti Airtel
Bharti Airtel formerly known as Bharti TeleVentures Limited (BTVL) is among India's largest
mobile phone operators. With more than 60
million subscriptions as of 13th February 2008,
the company is one of the world's fastest growing
telecom companies. It offers its mobile services
under the Airtel brand. The company is the GSM
operator only. The company complements its
mobile, broadband & telephone services with
national and international long distance services.
The company also has a submarine cable landing
station at Chennai, which connects the submarine
cable connecting Chennai and Singapore.

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Reliance Communications
It is the flagship company of the Reliance-Anil
Dhirubhai Ambani Group, comprising of

power

(Reliance Energy), financial services (Reliance

Capital) and telecom initiatives of the Reliance
ADA

Group.

managed

by

Reliance
Anil

Infocomm

Dhirubhai

is

currently

Ambani.It

uses

CDMA2000 1x technology.
present, Reliance Telecom's GSM cellular
services are available in 340 towns. Reliance's
CDMA services are available in 19 states and
cover about 65% of the country, state wise.
Reliance Infocomm also offered for the first
time in India, mobile data services through its RWorld mobile portal. This portal leverages the data
capability of the CDMA 1X network.

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Bharat

Sanchar

Nigam

Limited
Bharat Sanchar Nigam Limited (known as
BSNL,

India

Limited)

is

Communications
public

sector

Corporation

communications

company in India
BSNL

is

India's

oldest

and

largest

Communication Service Provider (CSP). Currently

BSNL has a customer base of 68.5 million (Basic &
Mobile telephony). It is throughout India except in
the metropolitan cities of Mumbai and New Delhi
which are managed by MTNL
Main Services provided by BSNL
BSNL fixed services
BSNL provides almost every telecom service,
however following are the main Telecom Services
being provided by BSNL in India:1. Universal Telecom Sevices : Fixed wireline
services & Wireless in Local loop (WLL) using
CDMA

Technology

called

bfone

and

Tarang

respectively. BSNL is dominant operator in fixed

line.

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2. Cellular Mobile Telephone Services: BSNL is

major provider

of Cellular

Mobile

Telephone

services using GSM platform under brandname

Cellone. Pre-paid Cellular services of BSNL are
know as Excel.

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3. Internet: BSNL is providing internet as

dial-up

connection

Broadband

Dataone.

(Sancharnet)
BSNL

has

and

ADSL-

around

50%

marketshare in broadband in India. BSNL has

planned

aggressive

current

rollout
financial

in

broadband

for
year.

4. Intelligent Network (IN): BSNL is providing

IN services like tele-voting, toll free calling,
premium calling etc.

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Vodafone Essar
Vodafone

Essar,

previously

known

as

Hutchison Essar. Despite the official name being

Vodafone Essar, its products are simply branded
Vodafone. It offers both prepaid and postpaid GSM
cellular phone coverage throughout India and is
especially strong in the major metros.
Vodafone Essar is owned by Vodafone 52%, Essar
Group 33%, and other Indian nationals, 15%. In
Mumbai, it was earlier known by the name Orange

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Idea Celluar
It initially started in 1995 as a join venture
between the Tatas, Aditya Birla Group and AT&T.
The company has its retail outlets under the "Idea
n' U" banner. The company has also been the first
to offer flexible tarrif plans for prepaid customers.
It also offers GPRS services in urban areas.
Tata's foray into the cellular market with its own
subsidiary, Tata Indicom, a CDMA-based mobile
provider, cropped differences between the Tatas
and the Birlas.

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Tata Teleservices
Tata Teleservices Limited (TTSL) is part of the
Tata

Group

of

Companies,

an

Indian

Conglomerate. It runs the brand name Tata

Indicom.
TTSL was incorporated in 1995 and was the first
company to offer CDMA Mobile services in India,
specifically in the state of Andhra Pradesh.
In September 2007, Tata Indicom launched the
Talk World plan, an International Long Distance
Plan.
Tata is the direct competitor with Reliance, both
CDMA operators in India.
They launched a unique scheme providing lifetime
rental free connectivity on its mobile and fixed
wireless for a one time charge

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Ran
k

Operator Technology

Airtel

Reliance

GSM, EDGE

Tata
Indicom
Idea
Cellular

(in millions)
52.96

[46]

(November 2007)

GSM,

39.40

CdmaOne

(November 2007)

Vodafone GSM, EDGE

BSNL

Subscribers

GSM, GPRS

CDMAOne

GSM

Difference

[47]

38.56

[48]

(November 2007)
35.92

[49]

(November 2007)
21.04

[50]

(November 2007)
20.22

[51]

(November 2007)

Between

GSM

And

CDMA
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In cellular service there are two main competing

network technologies: Global System for Mobile
Communications

(GSM)

and

Code

Division

Multiple Access (CDMA).

Data

Transfer

traditionally

Speed:

faster

than

CDMA
GSM,

has
though

been
both

technologies continue to rapidly leapfrog along

this path.
Indias

mobile

subscriber

growth

GSM

versus CDMA 2000 - 2007

Yea GSM
r

200
0
200
1
200
2
200
3

GSM

CDMA

CDMA

Subscribers Annual

Subscribers

Annual

(millions)

growth

(millions)

growth

3.1

94%

505

76%

10.5

91%

0.8

22.0

110%

6.4

700%

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200
4
200
5
200
6
200
7

37.4

70%

10.9

70%

58.5

57%

19.1

75%

105.4

80%

44.2

131%

180.0

71%

85.0

92%

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Findings:
1. There

are

wide

differences

in

service

providers preferred by consumers.

2. Airtel is most preferred service provider by
consumers.
3. Family members or friends influence to wide
extent on selection of service provider by
consumer.
4. Some

consumers

are

not

satisfied

with

customer care service provided by service

provider and call rates.
Consumer perception about particular service
provider get affected due to marketing strategy
used by service provider

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Suggestions:
1. To attract more number of consumers service
provider should reduce their calling rates and
provide schemes frequently.
2. Frequent network problems should be solved
properly.
3. Promises made by service provider should be
fulfilled to increase or at least maintain
number of consumers.
The company has to know the target customer and
their taste and preferences and accordingly
modify their service

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Conclusion:
Consumer behaviour influences new product
development and success and failure of business.
Companies had to engage in extensive marketing
research to identify unsatisfied consumer needs,
as consumers are highly complex as individuals
have very different needs. So to design product or
service and develop suitable marketing strategies
that would satisfy consumers, they have to first
study

consumers

and

consumption

related

behaviour in depth.
More

number

of

consumers

in

need

of

innovative products with lower calls rates and

more facilities provided. Service provide have to
think of this otherwise consumers are ready to
switch-off to other.

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Bibliography
Marketing Management
By Philip Kotlar
Webibliography
Sources of Internet

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