Research Paper of Mobile Marketing

The Survey, Vol. 44, No.
3&4, 2006
Consumer Behaviour Towards Mobile Service Providers- A Case Study of
Consumers of Lucknow City
Dr. L. Shashikumar Sharma
Dr. D. S. Chaubey
Abstract
The consumer behaviour is a field of knowledge that has gained importance for the managers of
both the profit and non-profit making organisations and of policy makers. In the rationale of
modern marketing, the firms existence is dependent on customers satisfaction. Therefore, the
knowledge of
what the customer thinks and what consequently would contribute to his
satisfaction, is at the requirement of the marketer.

Information technology has brought tremendous change in the present socio-economic
environment. The tele communication services in India have increased its horizon. The craze for
mobile services in India is increasing substantially. The present study aims to assess the
consumers awareness and their attitude towards different mobile service providers companies
operating in Lucknow. It also intends to know the consumers satisfaction and its future impact on
socio economic changes. To achieve the objective of the study 200 randomly selected mobile
users of Lucknow city were chosen. From the analysis it is observed that the level of consumer
satisfaction, their perception of the future prospect of mobile services in Lucknow city and the
impact of mobile services in bringing the social change is independent with the demographic
profile of the respondent.
Introduction
Beginning of new century and millennium is witnessing the rapid expansion of technological
development in the country. Fast changing information system and high tech technological
products has changed the complexion of business activities in the country. The tale
communication services in India have witnessed the phenomenal change over the last few years.
The craze for mobile services in India is increasing substantially. Keeping the high consumers
demand in to consideration, many big players like Reliance, Hutch, Airtel, BSNL, etc. has
launched their products in the market.
Information technology has brought tremendous change in day-to-day activities of common man
to entrepreneurs. Number of mobile subscriber went up from 10.4 million at the end of 2002 to
28.20 million in Dec 2003. The average monthly growth in mobile subscription is 1.5 million new
1
Lecturer of Commerce, Sherubtse College, Kanglung,,Bhutan

.Asst. Professor, Omkarananda Institute of Management and Technology, Rishikesh
The Survey, Vol. 44, No. 3&4, 2006

users in 2003. According to Telecom Regulatory Authority of India (TRAI), the primary reason
for the unprecedented growth was due to 50 % decline in tariff over the previous year. At present
mobile telephony tariff are just 5% of the rate prevailed in 1995 making it the lowest in the world.
Delhi and Mumbai continue to be the biggest market. However mobile telephone has increased its
horizon in different states like Gujarat, Maharastra, Andhra Pradesh, Karnataka and Tamil Nadu
and gained combined base of 8 million mobile subscribers, which is more than all the metros
combined. During 2003 around 17.5 million mobile subscribers were added bringing the total to
28.20 million as against 42 million fixed lines.
The Government of Uttar Pradesh has taken various steps to ensure rapid development of
telecommunication facilities in the state. The state is striving it hard to attain the National Average
in terms of connectivity. At the state level, Industrial Development Department has been
nominated as the Nodal Agency to achieve close co-ordination with the Department of
Telecommunication, Government of India. Private operators and Companies, engaged in the
provision of Telecommunication and Cellular Services, are motivated and provided all facilities in
setting up of towers and other infrastructure. The State Government is providing free Government
land, to the Telecom Department of Govt. of India, for ensuring superior telecom facilities.
Present Study
The present study is a focus as on the mobile users of Lucknow city. It tries to assess the
consumers awareness and their attitude towards different mobile service provider companies
operating in Lucknow. The study also intends to know the consumers satisfaction and its future
impact on socio economic changes.
Methodology:
The present study is an exploratory research study. In order to study the consumer behaviour
regarding the uses of mobile services offered by different companies in Lucknow city both
primary and secondary data were collected. Secondary data was collected from different
magazines, newspapers and government publications.
The primary data was collected through questionnaire using survey method. For this purpose 200
randomly selected mobile users of Lucknow city were chosen. An attempt was made to check their
awareness and attitude towards different mobile services provider of Lucknow city. The data thus
received was tabulated, analyzed and appropriate results was drawn.
techniques was used to analyse the data.
2
The following statistical
Percentage analysis
Chi- Square Test

The following hypothesis was constructed for analyzing the data:-
H1: The level of consumers satisfaction with the present mobile services provided is independent
with their demographic profile.
H2: perception of the future prospect of mobile services in Lucknow city is independent with the
age, sex, education qualification and income of the respondent.
H3: The impact of mobile services in bringing the social change is independent with the age, sex,
and education qualification of the respondents.
Chi- Square Test: The chi-square (x2) test of goodness of fit has been used here to test whether a
significant difference exist between the observed number of responses and an expected number
of responses based on the null hypothesis in each category or class.
Test used here is
X 2 =ki=0 (Oi -Ei)2/ Ei
Comment [j1]: I think this is ok sir
Where Oi and Ei are the observed and expected frequencies respectively in the I
th
class, there
being k classes. For a given level of significance (), if the calculated value of X is greater than
the critical value, the null hypothesis is rejected.
Expected frequency(Ei) =Total number of respondents in the N th Row total of N th column
N
where Nth Row = Total number of respondents in the particular row
Nth column = total number of respondents in a particular column
N= total number of respondents as a whole
degree of freedom (df) = (r-1) (c-1), where r is the row and c is the column
Here, the level of significance ()=0.05% is taken as the standard for the chi-test. The
statistical result of level of satisfaction, their perception and future prospect on consumer
behaviour from the data collected can be interpreted. Here, chi-square test statistic is used to test
for the null hypothesis of dependence (association). The dependency of consumers, level of
satisfaction , their perception on their demographic status can be found out . The null hypothesis
3

of independence will be rejected at 5% level of significance if Chi-square statistical value >
critical value, then, consumer behaviour factor is dependent on demographic variable. The
Comment [SC2]: Sir, I think this is not

necessary. So. We can delete this out.
hypothesis is accepted if Chi-square statistical value < critical value and then, we conclude that
Comment [SC3]: Or these need to be
summarised
consumer behaviour factor is not dependent on socio-economic factors.

Scope of the Study
Though the study represent the position of mobile services in Lucknow city, due to very small
sample size the finding may not be a true representation and it can not be generalized but it will
give a better prospect for future study and may have a wide application in future.
Findings:
Demographic Characteristic
Characteristics
No
of
Respondents
Total Number of Respondents
200
100
Age
(i) Below 25 Years

(ii) 25to40 Years
(iii) Above 40 years
134
44
22
67
22
11
Sex
(i) Male
(ii) Female
142
58
71
29
08
04
42
146
04
02
21
73
42
28
130
21
14
65
Education
Qualification
Income
(i) Upto Matric

(ii) Upto Intermediate
(iii) Upto Graduates
(iv) Post graduates and above
(i) UptoRs5000 PM
(ii) Rs.5001 to Rs10000PM

(iii) Above Rs.10000 PM
The demographic data presented in the above table indicates that
most of
respondents falls in the age category of below 25 years as it was indicated by 67 percent
respondents in the sample. The respondents in the age group of 26 to 40 years accounts for 22
percent and the remaining 11percent respondents falls in the age group of above 40 years. 71
percent of the respondents belongs to male and 29 percent in the female category. Educational
profile of the respondents indicates that most of the respondents were having postgraduate degree
and above to their credit as it was indicated by 73% respondents in the sample. As many as 23%
4

respondents are having education up to graduation and only 4% respondents were having education
qualification upto matric only. Analysis also indicates that as many as 21 percent respondents were
from the monthly income group of up to Rs. 5000 per month. 14 percent respondents were having
monthly family income between Rs.5000 to Rs10000 per month and 65 percent respondent were
having more than Rs. 10000 monthly income.
Type of Service Provider Used
Service Provider
Total No. of
1.
Used
Hutch
Respondent
74
37
the type of mobile services
2.
Reliance
34
17
used
3.
Airtel
30
15
percent respondents are in
4.
BSNL
62
31
position
Total
200
100
Hutch
Sl. No.
Percentage
Information pertaining to
indicates
of
that
37
possessing
connections,
17
percent respondents were having Reliance, 15 percent respondents were having Airtel and 31
percent respondent were having BSNL connections.
Purpose of Having Mobile Phone

Total No of
Sl. No.
Purpose
1.
Official
24
12
assess
2.
To be in touch with
family and friends
Dissatisfaction with the
services of fixed line
Security
Flaunt
Passion
STD Calls
SMS
Multiple purpose
Total
80
40
possessing a mobile phone
18
09
04
08
08
06
06
46
200
02
04
04
03
06
23
100
3.
4.
5.
6.
7.
8.
9.
Respondent
Percentage
An attempt was made to

the
purpose
of
from the respondents. The

information thus received
indicates that most of the
respondent keeps mobile to
be in touch with their
family and friends as it was
indicated
by
40%
respondents in the sample. Official purpose was specified by 12 percent respondents for having
mobile. 9 percent point out that they were having mobile due to dissatisfaction from landline.
Security purpose was indicated by 2 percent and 4 percent respondents each indicated for flaunting
5

and passion. The intention of making STD calls and SMS was indicated by 3 percent respondents
each. However 27 percent respondent indicated multiple reasons for having the mobile phones.
Awareness with other services
Sl. No.
1.
2.
3.
4.
5.
Description
Only one services
Two Services
Three services
Four services
More than four services
Total
Number of
Respondents
34
36
70
8
52
200
Today
Percentage
17
18
35
4
26
100
mobile
service
providers provides many

services
calculator,
like
internet,
message
recording, MMS, banking

and other related services
etc. Keeping this in view,
an attempt was made to know the awareness of the respondents about the other services provided
by the mobile service provider other than phone. Information thus received indicates that 17
percent shows that they are aware with only one service other than telephone. 18 percent were
aware with two services other than phone .35 percent indicated that they are aware with three
services other than phone. 04 percent were aware with four other services other than phone. And
remaining 26 percent respondents indicated their awareness with more than four other services than
phone. ). The information pertaining to different services other than phone used by the respondents
indicates that 39 percent respondent does not use any other services other than telephone. Almost
one fourth (24%) respondents uses calculator and message and internet services other than phone.
12 percent respondent use calculator and message with their mobile.
4 percent respondent
indicated that they use internet services provided in mobile phone. 4 percent respondent revealed
that they used internet and MMS facilities available in mobile phone. Very few uses SMS services
as only 5 percent respondents in the sample indicated it. 4 percent respondent indicated that they
use time setting and calculator and 4 percent indicated that they use STD calls, SMS, Calculator
and Message recording facilities provided in their mobile phone. 4 percent respondent indicated
that they used banking and other services provided on Internet.

Number of Calls Made Per Day
Sl. No.
Description
Number of
Respondents
Percentage
An attempt was made to

know the number of call
1.
0-5 calls per day
34
17
2.
5-10 calls per day
36
18
3.
10-15 calls per day
78
39
4.
More than 15 calls per day
52
26
respondents make average
Total
200
100
5 calls per day. 29 percent
made per day by the

respondents. The analysis
indicates that 53 percent
respondents make 5 to 10 calls per day. And 18 percent respondents are equally divided between
those who make 10 to 15 and more than 15 call per day respectively.
Better Connectivity
Sl. No.
Service Provider
Total No of
Percentage
Respondent
j). An attempt was made to
1.
Hutch
98
49
know from the respondent
2.
Reliance
14
07
that out of four major
3.
Airtel
20
10
mobile service provider in
4.
BSNL
68
34
Lucknow city who gives
Total
200
100
better
connectivity.
The
information thus received

indicates that 49 percent respondent were of opinion that Hutch gives the better connectivity. 7
percent respondent feels that Reliance gives the better connectivity. 10 percent indicated that Airtel
gives the better connectivity. 34 percent respondents feel that BSNL gives the better connectivity.
Table No. 10: Satisfaction with Present Mobile Services
Sl. No.
Description
The data pertaining to the
Total No. of
Percentage
Respondent
level of consumer satisfaction
1.
Satisfied
170
85
from
2.
Not Satisfied
30
15
service provider indicates that
Total
200
100
85% respondents are satisfied

with
the
the
present
present
mobile
mobile
service providers. Only 15 percent respondents are not satisfies with present services. The
7

important reasons emerged out due to poor connectivity, problems with Internet and other related
services etc.
An attempt was made to assess degree of association between consumers satisfactions with the
present services provider with the demographic profile of the respondents. For this purpose , the
factor considered in the study are divided into two group. The first group contains Personal factor
and second group contains consumers satisfaction. Factors in each group are compared with the
factor in other group and chi squire test is applied and result are given in the following table with
the suitable explanation.
Sl. No
Personal Factor
ChiSquare Value
Table Value
S/NS
1.
Age of the respondent
4.534083
5.99
NS
2.
Sex of the Respondent
42.01681
3.84
Education of the
2.37136
7.82
NS
17.38366
5.99
NS
respondent
4.
Income of the respondent
(NS- Not Significant, S- Significant)

The calculated value of the Chi Square test statistics indicates that consumers satisfaction with the
mobile service provider of Lucknow city is not significant with their age education qualification
and income where it is significant with the sex categories of the respondent..
Table No. 11: Consumers Awareness of Health Implication
Sl. No.
Description
Total No. of
Percentage
Respondent
Today there is a
great
concern
the
Aware with Health implications
170
85
about
2.
Not aware with Health implications
30
15
growing
Total
200
100
hazard
created
by
mobile
health
telephone. Keeping this into consideration, an attempt was made to assess the awareness about the
health implications of using mobile phones. The analysis indicates that 70 percent respondents are
aware with the health implication of using mobile phones where else 30 percent respondents were
not aware of it.
Future Prospect of Mobile Services
8

Sl. No.
Description
It will be an essential item
in future
Total No. of
Respondent
Percentage
Today the whole country is

technically knit together and
112
56
the people can have common
2.
It will be of moderate use
72
36
experience
and
aspiration
3.
It will be of no use
04
through the mediation of
4.
Others
04
various communications. But
Total
200
100
the social development and

traditional societies is not
easy because of close interrelationship, which exist among technical, economic, cultural religious
and other social aspect. Keeping this into consideration, an attempt was made to know the future
prospect of mobile services by assessing its utility as perceived by the respondents. The analysis
indicates that 56 percent respondent opined that it would be an essential item in the future. 36
percent feels that it will be of moderate use in future. 4 percent of them feel that it will be of no
use in future. And 4 percent has given unspecified response relation to topic.
An attempt was also made to assess degree of association between consumers opinions about the
future prospect of mobile services with the demographic profile of the respondents.
Sl. No
Personal Factor
ChiSquare Value
Table Value
S/NS
1.
21.67335
12.59
2.
30.36659
7.82
Education of the
19.81656
16.92
12.59
respondent
4.
22.88234
2
The calculated value of the Chi Square test statistics ( ) at 5 percent level of significant indicates
that respondents opinion about the future prospect of mobile services in Lucknow city is significant
with their age, sex categories, education qualification and income level.
Table No. 13: Impact of Mobile services in Bringing Social Change

Sl. No.
1.
2.
3.
4.
Description
Total No. of
Respondent
Information revolution
Percentage
plays a significant role

both
in
individual
adaptation,
their
It has deep positive

impact
It has some positive
impact
It has no impact
It has negative impact
130
65
54
27
10
05
creation
03
environment in which
Total
200
100
social
aggregation as well as
of
change
new
are
facilitated smoothly. Keeping this into consideration an attempt was made to assess the role of
mobile services in bringing the social change. The data thus received indicates that 65 percent
respondent feels that a mobile telephone service has deep positive impact in bringing the social
change. 27 percent respondents are of the opinion that it has some positive impact in bringing the
social change. 5 percent respondents were in the opinion that it has no impact in bringing the social
change. Very few respondents (3 percent) indicated that it has the negative impact in bringing the
social change.
Further attempt was also made to assess degree of association between consumers opinions about
the impact of mobile services in bringing the social change with the demographic profile of the
respondents.
Sl. No
Personal Factor
ChiSquare Value
Table Value
S/NS
1.
6.051095
12.59
NS
2.
24.4146
7.82
Education of the
11.18009
16.92
NS
57.08332
12.59
NS
respondent
4.
The calculated value of the Chi Square test statistics ( 2)at 5 percent level of significant presented
in the above table indicates that the relationship between customers opinion about the impact of
mobile services in bringing the social change is not significant with their age, education
qualification and income level where as there is significant relationship between with their
opinion about impact of mobile services in bringing the social change with their sex category.
10

Conclusions
The communication services in the Uttar Pradesh state have witnessed phenomenal change over the
last few years. The number of competitors has significantly increased. The study indicated that the
level of satisfaction of consumer satisfaction is dependent with the demographic profile of the
respondents. Hence, there is need to improve in their services in order to meet the expectations of the
future generation. Almost all respondent are of the opinion that mobile services have a bright future
prospect. Consequently it can be concluded that there is scope for mobile service providers in the city.
Consumers perception about the impact of mobile services in bringing the social change is not
significant with their age, education qualification and income level where as there is significant
relationship between with their opinion about impact of mobile services in bringing the social change
with their sex category. Hence it is suggested that mobile services provider should take due care before
introducing new additional services.
Bibliography:
1. Boyd, Westfall and Stasch, Marketing Research, Richard Irwin Inc, First edn., 1986.
2. David Loudon and Albert J. Della Bitta, Consumer Behaviour: Concept and Cases, Mc Graw-Hills Pvt
Ltd., New Delhi, third Edition, 1988.
3. G
Shanesh
and
Jagdish
N
Sheth
edition,2006,MACMILLAN publication).
-Customer
Relationship
Management
(first
4. Gupta, S.P., Stastical Methods, 9th Revised Edn., 1997, S, Chand & Sons, New Delhi
5. ICFAI Journal of Marketing management, ICFAI University press, VOL-V No1 Feb-2006.
6. Joel R. Evan and Barry Berman, Marketing, Third Edition, Macmillan, Publishing Company, New
York.
7. John A. Howard, Consumer Behaviour in Marketing Strategy, Prentice Hall, International
Editions,1989.
8. Journal of Advertising, Amarican Academy of Advertising, Volume-30 September 2001.
9. Kothari C.R.-- Research Methodology, Vishwa Prakashan Ltd., 2 nd edition.
10. Kotler Philip, Marketing Management: Analysis, Planning, Implementation, and Control, Prentice
Hall of India Pvt. Ltd., Ninth Edition, New Delhi, 1997.
11. Kotler Phillip, Marketing Management, Millenium Edition, PHI, 2000.
12. Rajan Saxena, Marketing Management, Tata Mc Graw Hill Publishing Company, New Delhi, 1997.
13. Ralph S. Alexander(chairman), Marketing Definition: A Glossary of Terms (Chicago: American Marketing
Association,1960).
14.Rom Markin, Marketing: Strategy and Management, Jon Wiley & Sons, New York,
etc.,1982.
15. V.S. Ramaswami and S Namakumari, Marketing Management, Macmillan India ltd.,3rd Edn,2002.
16. http://www.bizhelp24.com/marketing/using-mobile-phones-to-market-your-business-11.html
17. http://www.neom.com/news/nm/PB_12snapInterview_March2006.pdf
18. http://www.pdastreet.com/articles/2005/10/2005-10-24-Dispelling-Mobile-Marketing.html
11

19. http://www.reveries.com/reverb/revolver/mobile_phones/index.html
20. http://www.ingentaconnect.com/content/hsp/dbm/2001/00000008/00000003/art00010#search=%2
2marketing%20using%20mobile%20phones%22
Comment [SC4]: Sir, please remove
some of the books of Marketing. I have
added some websites. These could be used
in place of those books.
12

Appendix-I-
QUESTIONNAIRE
MOBILE SERVICES: OPPORTUNITIES AND THREATS
A CASE STUDY OF USERS PATTERN OF MOBILE SERVICES IN LUCKNOW CITY
1. Name
:
2. Age
:
3. Sex
: Male
Female
4. Educational Qualification :
Upto Matriculate
Intermediate
Graduate
Post Graduate and others
5. Family Income(Per Month) :

Upto Rs. 5000/
Rs. 5000/- to Rs. 10000/
Rs. 10000/- and above
6.Are you mobile subscriber?

Yes
No
7.Which mobile service are you using?
Hutch
Airtel
Reliance
BSNL
8. What is the purpose of having a mobile for you?

Official
Flaunt
To be in touch with family & friends
Passion
Dissatisfaction with the services of fixed line

STD Calls
Security
SMS
9. Are you aware of the other services offered through the mobile
Internet services
Calculator
Message recording
Photography
Banking and other related services

If any other please specify ..
10. From the above listed services, how many services do you use? List them in chronological
order. . . . .
11.How many Local Calls do you make in one day?
0-5
10 15
5 10
More than 15
12. Which service gives you better connectivity?
Hutch
Airtel
Reliance
BSNL
Are you satisfied with the services? Yes
No
if no, then what are the reasons behind it. ..
Are you aware of the health implications of using mobile? Yes
No
How do you see the future prospect of mobile services in Lucknow.
(a) It will become an essential item
13

(b) It will be of moderate use
(c) It will be of no use
(d) Any other please specify____________________________________

16. What is your view about the effect of mobile services on social change
(a) It has deep positive effect/impact
(c ) It has no effect
(b) It has some positive

(d) It has a negative effect
--------------------------
14

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The Survey, Vol. 44, No.

satisfaction, is at the requirement of the marketer.

Lecturer of Commerce, Sherubtse College, Kanglung,,Bhutan

The Survey, Vol. 44, No. 3&4, 2006

The following statistical

The Survey, Vol. 44, No. 3&4, 2006

Chi- Square Test

Comment [j1]: I think this is ok sir

The Survey, Vol. 44, No. 3&4, 2006

Comment [SC2]: Sir, I think this is not

consumer behaviour factor is not dependent on socio-economic factors.

Total Number of Respondents

(i) Below 25 Years

(i) Upto Matric

(ii) Rs.5001 to Rs10000PM

The demographic data presented in the above table indicates that

The Survey, Vol. 44, No. 3&4, 2006

the type of mobile services

percent respondents are in

Purpose of Having Mobile Phone

possessing a mobile phone

An attempt was made to

from the respondents. The

The Survey, Vol. 44, No. 3&4, 2006

providers provides many

recording, MMS, banking

The Survey, Vol. 44, No. 3&4, 2006

An attempt was made to

0-5 calls per day

5-10 calls per day

10-15 calls per day

More than 15 calls per day

respondents make average

5 calls per day. 29 percent

made per day by the

j). An attempt was made to

know from the respondent

that out of four major

mobile service provider in

Lucknow city who gives

information thus received

The data pertaining to the

level of consumer satisfaction

service provider indicates that

85% respondents are satisfied

The Survey, Vol. 44, No. 3&4, 2006

Age of the respondent

Sex of the Respondent

Income of the respondent

(NS- Not Significant, S- Significant)

Aware with Health implications

Not aware with Health implications

The Survey, Vol. 44, No. 3&4, 2006

Today the whole country is

the people can have common

It will be of moderate use

through the mediation of

various communications. But

the social development and

Age of the respondent

Sex of the Respondent

Income of the respondent

The Survey, Vol. 44, No. 3&4, 2006

plays a significant role