SYNOPSIS

FOR

CAPSTONE PROJECT

Topic: Consumer Perception towards Mobile Value Added Services in

Jalandhar

SUBMITTED TO: SUBMITTED BY:

Mr. Krishan Gopal Tarun Tondan (A02)

Manoj Kumar Sharma (A04)

Vishal Singh (B55)

Kaustav Sharma (B60)

1|Page
 Table of Contents

Serial Particulars Page No.

No.
1. Introduction 3
1.1. Consumer perception 3
1.2. Value Added Services 4
2. Literature Review 6
3.1. Need of the study 9
3.2. Objectives of the study 9
3.3. Scope of the study 9
4. Research methodology 10
5. References 12
6. Annexure 13
6.1. Questionnaires 13

2|Page
1. Introduction
Worldwide, countries have seen a boom in the telecom market over the last few years. Mobile
phones, once a luxury of the high-powered business elite, have invaded every space of our lives.
Indian telecom industry is one of the fastest growing sectors, in the recent years the telecom
industry has witnessed stiff competition because of the entrance of the new players in the market.
This increased competition has resulted in more choices and better value for the consumers as
companies try to lure customers through competitive plans and equipments pricing. Operators
are facing cutthroat competition and with the call rates in India being one of the cheapest in the
world, the margins are very low. As a result of which it becomes essential for the companies to
provide some essential services in order to satisfy their customers and attract more customers.
These additional services are called value added services. Therefore they are looking at VAS as
the next wave for growth. It has become the flywheel of telecom growth and a large chunk of
revenue for operators is likely to come from VAS services in the years to come.

Value added services provide advantages for both the customer and the service provider.
Customers have the opportunity to receive something above and beyond their basic needs.
Providers benefit from the increased rapport with the client that is likely to translate into a more
consistent flow of revenue.

1.1. Consumer perception

Perception is the process through which a person forms an opinion about the various stimuli he
receives from his sensory organs. In marketing, perception is concerned with understanding how
the consumer views a product or service. The five senses of a person help him in this process.
The marketer uses various props to stimulate the consumer, that is, through the use of colors,
sound, touch, taste, or smell, to observe the product.

Definition

• The process by which an individual selects, organizes, and interprets stimuli into a
meaningful and coherent picture of the world.

• How we see the world around us.

3|Page
1.2. Value Added Services

Telecommunications had traditionally been a voice communication service. The services today
have moved beyond their fundamental role of voice communications to a spectrum of non-core
services, which in telecommunication parlance is called Value Added Service (VAS). VAS is
provided either directly by the telecom operators themselves or by a third party Value Added
Service Provider (VASP). VASP connects to the core equipment of telecom operators through
interworking units using protocols like short message peer-to-peer protocol (SMPP), connecting
either directly to the short message service centre (SMSC) or to a messaging gateway that allows
the telecom operators to have control of the content. Unlike the core or basic services, the VAS
has unique characteristics and they relate to other services in different ways. They also provide
benefits which the core services cannot provide. Basically, there are two types of Value Added
Services –

(i) Value Added Services that stand alone from operational perspective and

(ii)Value Added Services provided as an optional service along with voice service.
Non-Voice services like SMS are examples of standalone value added services. The Value
Added Services presently being provided by the telecom operators are in the following areas:

S.N o. Type of Value Description

Added Service
1 News National, International, Business, Entertainment ,
Sports
News
2 Finance Stocks (NSE, BSE, NASDAQ), Forex

3 Entertainment Games, Mobile TV and Jokes

4 Travel Railways, Airlines

5 Downloads Logos, Ringtones, Caller tones etc

.
6 Astrology service Personal Horoscope / Personalized prediction

7 Cricket Cricket scores, Match clippings, cricket commentary

4|Page
 8 Missed call alters Subscriber to get a SMS alert of incoming calls when
the subscriber’s mobile phone is switched off / not
reachable and busy
9 E-mail E-mail through SMS
10 Music Music on demand Dial a song
11 Contest Contest
Reality shows Reality shows
12 GPRS / WAP Mobile Internet, Mobile Chat, Mobile TV

13 MMS Picture messages, picture clippings

14 Health Health tips, Beauty tips

15 M-commerce
Transactions based services with multiple payment
modes and support in multiple domains like WAP,
GPRS, SMS, IVR and Web
16 Miscellaneous Devotional, Movies & Music, Fun, Navigation etc.

2. Literature Review
Perception is an opinion of something viewed and assessed by a person. It might vary from
person to person, as everyone has different beliefs towards certain services and products (Bitner
et al., 1997) that play a role in determining customer satisfaction. In fact, satisfaction refers to
5|Page
the customer’s positive perception of the value received (Hallowell, 1996) and is measured
based on expectation and perception. Toh, (2002) customer perception of the service quality are
generally subjective, nonetheless it does provide valuable information and another useful tool for
market monitoring and development. Uppal & Chawla, (2009) highlighted about the customer
perceptions about e-banking services in India.The present study investigated the customer
perceptions regarding the necessity of e-banking services , bank frauds , future of e-banking ,
preferences of banking customers regarding banks , comparative study of banking services in
various groups of banks, preferences regarding the use of e-channels and the problems faced by
e-banking customers .The study depicted that customers of all bank groups are interested in e-
banking services but at the same they face problems like inadequate knowledge , poor
knowledge , lack of infrastructure and difficulty they face in opening an account .The paper thus
framed suitable strategies like customer education, seminars, proper meetings , proper
installation of ATM machines ,proper networking and infrastructure facilities etc . Nikunj
Bhasin, (2010) study about the Short Messaging Service (SMS) has undoubtedly been the
success story of Mobile data thus far. In countries where the GSM standards predominates (in
Europe), operators have reported exponential growth in the use of text messaging over the last 3
years. SMS will remain the primary mobile data format in the medium term, despite the
emergence of new formats such as Enhanced Messaging Service (EMS) and Multimedia
Messaging Service (MMS). SMS also looks like an important complementary channel for
companies such as Banks and Television Channels that want to drive consumers to another
platform, but opportunities for revenue generation from content and Entertainment-based
services will remain small and centered on Games, Competitions and Gambling. Raul
Castanon, (2009) in this study he knows that the consumer perception is, in the Low SMS usage
in countries like Brazil and Colombia can be explained in large part by the low cost of placing a
call. It makes sense that subscribers prefer to place a call rather than an SMS, but messaging can
be a solution for subscribers when the called party is not available, as usage of missed call alert
clearly shows. Kevin Benedict, (2009) in this study he explains that the new competitors just
keep coming up relentlessly, thus driving the margins further down. More than the conventional
services, it is the unique capabilities of the telecom companies, in other words the value added
services, which are expected to provide them with the much needed competitive edge in the
market - especially in fixed lines, broadband and mobile networks. At the same time, the

6|Page
importance of customer relationships and understanding cannot be underestimated. Hugh
Collins, (1993) in his study explained the Value-added is an economist's term meaning that the
service offered will have additional value to the user compared with more basic
telecommunications (or other) services. Within the telecommunications sector, there has been
considerable discussion in recent years as to what constitutes a value-added service. This
argument has now been initially resolved with the publication of a discussion document by the
DTI, Value-added and data services, which defines anything beyond the basic telephone, telex
and leased line services as being of a value-added nature. Thus a telephone answering service
adds value, as does an ‘electronic mail’ service linking dissimilar data terminals, perhaps on
different continents. The range of service possibilities is very wide and currently seems to be
limited only by entrepreneurs' abilities to define commercially attractive presentations of
telecommunications services, computers and operators. Tomlinson, (2002) in his study
explained While we are yet to see any application which may go on to succeed like SMS did, the
networks and devices are experiencing continuous development, thus enabling the growth of new
offerings for the customers - right from productivity tools to games and other fun activities. VAS
services drive the revenues directly, and enhance performance in myriad other ways. The result
is - a stronger relationship with the customer, which in turn leads to better customer databases
(and more customized products) thus ensuring consistent profits. Reeti , Sanjay et all, (2009)
investigated about the customers perceptions about banking services in an emerging economy for
which the various determinants affecting the customer perception as well as attitude towards
banking services were predicted through study that was conducted on the respondents taken from
Northern part of India .Major findings depicted that customer perceptions are influenced by the
usage of e-banking services by the kind of account they hold, age , profession , attached high
degree of usefulness to the balance enquiry service among e-banking services .It was also found
that security and truth are the most important factors in affecting their satisfaction levels and
slow transaction problem speed was the most frequent problem faced by majority of Customers.
Nityanand Singh (March 2010)-This study examined Even for the bigger mobile service
providers, the revenue generated by data traffic or VAS services is close to 30-40%, though
largely it has been dominated by ringtones and SMS. Slowly but surely, other services such as
email and mobile broadband are also joining the fray. The astonishing success of App Store from
Apple is a clear pointer towards the way where the telecom VAS markets are headed today. In

7|Page
fact, within the first year of operation, users downloaded 1.5 billion applications. The lesson for
the telecom companies was clear, if the experience was right, people were willing to look for
new ways to add to their mobile experience (main point: they are willing to pay for it too).

Sourav Laha, (2007) in his study explains India’s telecom industry has shown strong
growth. The primary reason for increasing revenues in this sector is due to the rise in wireless
subscribers. Mobile phones are becoming more affordable and are viewed as a necessity today
for instant communication. However, over the years the average revenue per unit (ARPU)
accruing to operators has been falling, shifting emphasis to alternative means of revenue
generation. This has led to growing interest in the mobile value added services (MVAS) market
which is forecasted to grow by 39% annually from 2007-11. he report identifies the existing
trends in the Mobile VAS market including increase in PE/VC investments, growing demand for
mobile music and mobile gaming, partnerships between mobile manufacturers/operators and
MVAS players towards consolidating their positioning the market, the inorganic growth path
adopted by major players and the growing demand from corporate for enterprise VAS. The
existing trends in the market have been identified. The future outlook section discusses the
various services that are forecasted to grow coupled with their applicability and the
corresponding user base. Competition covers the brief profile of the key players in the market
including the business outlook for each player.

3.1. Need of the study

8|Page
As in current scenario telecom sector is growing very fast as a result of which stiff competition is
seen in this sector. So all the companies are trying their best to satisfy and attract new customers,
so it becomes essential for the companies to provide additional services to the customers apart
from their basic services i.e. value added services, which also services as a competitive
advantage for the company. Accordingly the need of our study is to find out what is the
customer’s perception towards mobile value added services and to find out the main factors
which impact customer VAS usage.

3.2. Objectives of the Study

1. To study the consumer perception towards mobile value added services

2. To know the factors which consumer consider most while using mobile value added services.

3.3. Scope of the study

1. Subject matter is related to consumer perception.
2. To conduct this research the target population was the mobile users.
3. Target geographic area is Jalandhar.
4. Sample size of 100 was taken.

4. Research Methodology
9|Page
“Research in common parlance, to research for knowledge and it is not concerned to the
revision of the facts but to discover the new facts involved.”

This section describes the design of the research methodology and aims to improve assurance
that appropriate procedures were followed. This research seeks to examine the consumer
perception towards mobile value added services in Jalandhar. The Research Methodology used
for the purpose of this project is as follows:-

Research Design

The research design for this study is a type of descriptive research particularly cross-sectional
design has been used here. It involves the collection of information from any given sample of
population elements only once.

Target Population

Target population refers to the group of individual which researchers are interested in
generalizing the conclusions. The target population usually has varying characteristics and it is
also known as the theoretical population. In this study the target populations are consumers who
are the users of mobile value added service in Jalandhar.

Sampling Technique: The sampling technique used in this study is convenience sampling
technique.

Data Collection: Data has been collected both from primary as well as secondary sources as
described below:

Primary sources:-

Primary data has been obtained through questionnaires.

Secondary sources:-

The secondary sources of data has been taken from the various websites, articles etc.

Sample Size — 100

10 | P a g e
Area of Survey — Jalandhar

Data Processing- Data is analyzed using graphical and tabulation techniques.

Analytical Tool- After collection of data another work necessary for any data collector is to
correctly analysis that data. So, statistical tools help us to correctly analysis the data, as we have
used here the software named SPSS for analysis of the data.

5. References

11 | P a g e
  Bitner M J, Faranda W T Hubbert A R and Zeithaml VA (1997), “Consumer
Contributions and Roles in Service Delivery”, International Journal of Service Industry
Management, Vol. 8, No. 3, pp. 193-205.
 Hallowell R (1996), “The Relationships of Customer Satisfaction, Customer Loyalty, and
Satisfaction: An Empirical Study”, International Journal of Service Industry
Management, Vol. 7, No. 4, pp. 27-42.
 Hugh Collins, (1993) "Value-added services", Facilities, Vol. 4 Iss: 5, pp.13 – 13
 Nikunj Bhasin, (2010) ,Indian journal of Marketing, Volume: xxxvii, Number. 5-12

 Nityanand Singh (March 2010), Indian journal of Marketing, Volume: xxxix, Number.
10,pp.16-22

 Uppal & Chawla, (2009) Indian journal of Marketing, vol.xxxv, pp.8-21

 Sourav Laha, (2007) ,Indian journal of Marketing, vol. xxiv, pp. 11-18

Websites

http://www.consumerpsychologist.com/cb_Perception.html

http://www.ehow.com/about_6561090_consumer-perception-theory.html

http://www.wisegeek.com/what-are-value-added-services.htm

http://www.mobilein.com/what_is_a_VAS.htm

http://EzineArticles.com/?expert=Amit_Raghuvanshi

6. Annexure

12 | P a g e
6.1. Questionnaires

Name of the respondent: ____________________________

Location: _________________________________________

Occupation: _______________________________________

Age: _______ Gender: Male Female

Income (Monthly)

(A) <5000

(B) 5000-15000

(C) >15000

In the following questions either tick or use the given scale. Tick the correct one.
1. Present connection?

a. Airtel b. Reliance c. BSNL

d. Idea e. Vodafone f. Tata

g. others (specify) ______________________

2. Do you use value added services?

a. Yes b. No

3. How often do you use value added service?

a. Mostly b. Rarely

4. Why do you use value added services?

a. For entertainment b. Status c. m Commerce

d. Info VAS e. Connect to friends f. other (specify)__________________

5. Rate the following factors on the given five point scale for each of the listed parameters
which you consider most in the value added services?

13 | P a g e
 S. No. Parameters V. Good Good Average Poor V. Poor
1 Easy to use
2 Prices
3 Variety of Products
4 Quality of service
5 Availability
6 Network coverage
7 Satisfaction
8 Quick response
9 Security

6. Can you please say which VAS you prefer the most?

a. SMS b. MMS c. Internet d. Games

e. Ringtones f. Caller tunes g. Miss Call alert h. News

i. others (specify)______________________

7. How long have you been using the mobile value added services?

a. Less than 6 month’s b. 6-12 months

c. 1-2 years d. More than 2 years

8. Do you agree advertisement affects your usage of value added service?

a. Strongly agree b. Agree

c. Disagree d. Strongly disagree

9. Do you think celebrities’ involvement in the promotion of value added service effects your
usage?

a. Yes b. No

10. Rate the following factors according to your satisfaction for the mobile value added
services (1 being highest and 5 Being lowest)

14 | P a g e
 S No. Factors 1 2 3 4 5
1 Provide Good Service
2 They have more plans
3 Affordable rental charge
4 Good Network Coverage
5 Credit Facility
6 Easy to Asses Service
7 Less Complaint

11. Can you tell us how much you are satisfied with your mobile Value Added Service? Rank
(1, 2, 3, 4, 5)
Highly Dissatisfied_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Highly Satisfied

SYNOPSIS

FOR

CAPSTONE PROJECT

Topic: Consumer Perception towards Mobile Value Added Services in

Jalandhar

15 | P a g e
SUBMITTED TO: SUBMITTED BY:

Mr. Krishan Gopal Tarun Tondan (A02)

Manoj Kumar Sharma (A04)

Vishal Singh (B55)

Kaustav Sharma (B60)

Table of Contents

Serial Particulars Page No.

No.

16 | P a g e
 1. Introduction 3
1.1. Consumer perception 3
1.2. Value Added Services 4
2. Literature Review 6
3.1. Need of the study 9
3.2. Objectives of the study 9
3.3. Scope of the study 9
4. Research methodology 10
5. Data analysis and interpretation 12
6. References 23
6.1. Annexure 24
6.2. Questionnaires 24

1. Introduction
Worldwide, countries have seen a boom in the telecom market over the last few years. Mobile
phones, once a luxury of the high-powered business elite, have invaded every space of our lives.

17 | P a g e
Indian telecom industry is one of the fastest growing sectors, in the recent years the telecom
industry has witnessed stiff competition because of the entrance of the new players in the market.
This increased competition has resulted in more choices and better value for the consumers as
companies try to lure customers through competitive plans and equipments pricing. Operators
are facing cutthroat competition and with the call rates in India being one of the cheapest in the
world, the margins are very low. As a result of which it becomes essential for the companies to
provide some essential services in order to satisfy their customers and attract more customers.
These additional services are called value added services. Therefore they are looking at VAS as
the next wave for growth. It has become the flywheel of telecom growth and a large chunk of
revenue for operators is likely to come from VAS services in the years to come.

Value added services provide advantages for both the customer and the service provider.
Customers have the opportunity to receive something above and beyond their basic needs.
Providers benefit from the increased rapport with the client that is likely to translate into a more
consistent flow of revenue.

1.1. Consumer perception

Perception is the process through which a person forms an opinion about the various stimuli he
receives from his sensory organs. In marketing, perception is concerned with understanding how
the consumer views a product or service. The five senses of a person help him in this process.
The marketer uses various props to stimulate the consumer, that is, through the use of colors,
sound, touch, taste, or smell, to observe the product.

Definition

• The process by which an individual selects, organizes, and interprets stimuli into a
meaningful and coherent picture of the world.

• How we see the world around us.

1.2. Value Added Services

18 | P a g e
Telecommunications had traditionally been a voice communication service. The services today
have moved beyond their fundamental role of voice communications to a spectrum of non-core
services, which in telecommunication parlance is called Value Added Service (VAS). VAS is
provided either directly by the telecom operators themselves or by a third party Value Added
Service Provider (VASP). VASP connects to the core equipment of telecom operators through
interworking units using protocols like short message peer-to-peer protocol (SMPP), connecting
either directly to the short message service centre (SMSC) or to a messaging gateway that allows
the telecom operators to have control of the content. Unlike the core or basic services, the VAS
has unique characteristics and they relate to other services in different ways. They also provide
benefits which the core services cannot provide. Basically, there are two types of Value Added
Services –

(i) Value Added Services that stand alone from operational perspective and

(ii)Value Added Services provided as an optional service along with voice service.
Non-Voice services like SMS are examples of standalone value added services. The Value
Added Services presently being provided by the telecom operators are in the following areas:

S.N o. Type of Value Description

Added Service
1 News National, International, Business, Entertainment ,
Sports
News
2 Finance Stocks (NSE, BSE, NASDAQ), Forex

3 Entertainment Games, Mobile TV and Jokes

4 Travel Railways, Airlines

5 Downloads Logos, Ringtones, Caller tones etc

.
6 Astrology service Personal Horoscope / Personalized prediction

7 Cricket Cricket scores, Match clippings, cricket commentary

8 Missed call alters Subscriber to get a SMS alert of incoming calls when

19 | P a g e
 the subscriber’s mobile phone is switched off / not
reachable and busy
9 E-mail E-mail through SMS
10 Music Music on demand Dial a song
11 Contest Contest
Reality shows Reality shows
12 GPRS / WAP Mobile Internet, Mobile Chat, Mobile TV

13 MMS Picture messages, picture clippings

14 Health Health tips, Beauty tips

15 M-commerce
Transactions based services with multiple payment
modes and support in multiple domains like WAP,
GPRS, SMS, IVR and Web
16 Miscellaneous Devotional, Movies & Music, Fun, Navigation etc.

2. Literature Review
Perception is an opinion of something viewed and assessed by a person. It might vary from
person to person, as everyone has different beliefs towards certain services and products (Bitner
et al., 1997) that play a role in determining customer satisfaction. In fact, satisfaction refers to
the customer’s positive perception of the value received (Hallowell, 1996) and is measured

20 | P a g e
based on expectation and perception. Toh, (2002) customer perception of the service quality are
generally subjective, nonetheless it does provide valuable information and another useful tool for
market monitoring and development. Uppal & Chawla, (2009) highlighted about the customer
perceptions about e-banking services in India.The present study investigated the customer
perceptions regarding the necessity of e-banking services , bank frauds , future of e-banking ,
preferences of banking customers regarding banks , comparative study of banking services in
various groups of banks, preferences regarding the use of e-channels and the problems faced by
e-banking customers .The study depicted that customers of all bank groups are interested in e-
banking services but at the same they face problems like inadequate knowledge , poor
knowledge , lack of infrastructure and difficulty they face in opening an account .The paper thus
framed suitable strategies like customer education, seminars, proper meetings , proper
installation of ATM machines ,proper networking and infrastructure facilities etc . Nikunj
Bhasin, (2010) study about the Short Messaging Service (SMS) has undoubtedly been the
success story of Mobile data thus far. In countries where the GSM standards predominates (in
Europe), operators have reported exponential growth in the use of text messaging over the last 3
years. SMS will remain the primary mobile data format in the medium term, despite the
emergence of new formats such as Enhanced Messaging Service (EMS) and Multimedia
Messaging Service (MMS). SMS also looks like an important complementary channel for
companies such as Banks and Television Channels that want to drive consumers to another
platform, but opportunities for revenue generation from content and Entertainment-based
services will remain small and centered on Games, Competitions and Gambling. Raul
Castanon, (2009) in this study he knows that the consumer perception is, in the Low SMS usage
in countries like Brazil and Colombia can be explained in large part by the low cost of placing a
call. It makes sense that subscribers prefer to place a call rather than an SMS, but messaging can
be a solution for subscribers when the called party is not available, as usage of missed call alert
clearly shows. Kevin Benedict, (2009) in this study he explains that the new competitors just
keep coming up relentlessly, thus driving the margins further down. More than the conventional
services, it is the unique capabilities of the telecom companies, in other words the value added
services, which are expected to provide them with the much needed competitive edge in the
market - especially in fixed lines, broadband and mobile networks. At the same time, the
importance of customer relationships and understanding cannot be underestimated. Hugh

21 | P a g e
Collins, (1993) in his study explained the Value-added is an economist's term meaning that the
service offered will have additional value to the user compared with more basic
telecommunications (or other) services. Within the telecommunications sector, there has been
considerable discussion in recent years as to what constitutes a value-added service. This
argument has now been initially resolved with the publication of a discussion document by the
DTI, Value-added and data services, which defines anything beyond the basic telephone, telex
and leased line services as being of a value-added nature. Thus a telephone answering service
adds value, as does an ‘electronic mail’ service linking dissimilar data terminals, perhaps on
different continents. The range of service possibilities is very wide and currently seems to be
limited only by entrepreneurs' abilities to define commercially attractive presentations of
telecommunications services, computers and operators. Tomlinson, (2002) in his study
explained While we are yet to see any application which may go on to succeed like SMS did, the
networks and devices are experiencing continuous development, thus enabling the growth of new
offerings for the customers - right from productivity tools to games and other fun activities. VAS
services drive the revenues directly, and enhance performance in myriad other ways. The result
is - a stronger relationship with the customer, which in turn leads to better customer databases
(and more customized products) thus ensuring consistent profits. Reeti , Sanjay et all, (2009)
investigated about the customers perceptions about banking services in an emerging economy for
which the various determinants affecting the customer perception as well as attitude towards
banking services were predicted through study that was conducted on the respondents taken from
Northern part of India .Major findings depicted that customer perceptions are influenced by the
usage of e-banking services by the kind of account they hold, age , profession , attached high
degree of usefulness to the balance enquiry service among e-banking services .It was also found
that security and truth are the most important factors in affecting their satisfaction levels and
slow transaction problem speed was the most frequent problem faced by majority of Customers.
Nityanand Singh (March 2010)-This study examined Even for the bigger mobile service
providers, the revenue generated by data traffic or VAS services is close to 30-40%, though
largely it has been dominated by ringtones and SMS. Slowly but surely, other services such as
email and mobile broadband are also joining the fray. The astonishing success of App Store from
Apple is a clear pointer towards the way where the telecom VAS markets are headed today. In
fact, within the first year of operation, users downloaded 1.5 billion applications. The lesson for

22 | P a g e
the telecom companies was clear, if the experience was right, people were willing to look for
new ways to add to their mobile experience (main point: they are willing to pay for it too).

Sourav Laha, (2007) in his study explains India’s telecom industry has shown strong
growth. The primary reason for increasing revenues in this sector is due to the rise in wireless
subscribers. Mobile phones are becoming more affordable and are viewed as a necessity today
for instant communication. However, over the years the average revenue per unit (ARPU)
accruing to operators has been falling, shifting emphasis to alternative means of revenue
generation. This has led to growing interest in the mobile value added services (MVAS) market
which is forecasted to grow by 39% annually from 2007-11. he report identifies the existing
trends in the Mobile VAS market including increase in PE/VC investments, growing demand for
mobile music and mobile gaming, partnerships between mobile manufacturers/operators and
MVAS players towards consolidating their positioning the market, the inorganic growth path
adopted by major players and the growing demand from corporate for enterprise VAS. The
existing trends in the market have been identified. The future outlook section discusses the
various services that are forecasted to grow coupled with their applicability and the
corresponding user base. Competition covers the brief profile of the key players in the market
including the business outlook for each player.

3.1. Need of the study

As in current scenario telecom sector is growing very fast as a result of which stiff competition is
seen in this sector. So all the companies are trying their best to satisfy and attract new customers,

23 | P a g e
so it becomes essential for the companies to provide additional services to the customers apart
from their basic services i.e. value added services, which also services as a competitive
advantage for the company. Accordingly the need of our study is to find out what is the
customer’s perception towards mobile value added services and to find out the main factors
which impact customer VAS usage.

3.2. Objectives of the Study

1. To study the consumer perception towards mobile value added services

2. To know the factors which consumer consider most while using mobile value added services.

3.3. Scope of the study

1. Subject matter is related to consumer perception.
2. To conduct this research the target population was the mobile users.
3. Target geographic area is Jalandhar.
4. Sample size of 100 was taken.

4. Research Methodology

24 | P a g e
“Research in common parlance, to research for knowledge and it is not concerned to the
revision of the facts but to discover the new facts involved.”

This section describes the design of the research methodology and aims to improve assurance
that appropriate procedures were followed. This research seeks to examine the consumer
perception towards mobile value added services in Jalandhar. The Research Methodology used
for the purpose of this project is as follows:-

Research Design

The research design for this study is a type of descriptive research particularly cross-sectional
design has been used here. It involves the collection of information from any given sample of
population elements only once.

Target Population

Target population refers to the group of individual which researchers are interested in
generalizing the conclusions. The target population usually has varying characteristics and it is
also known as the theoretical population. In this study the target populations are consumers who
are the users of mobile value added service in Jalandhar.

Sampling Technique: The sampling technique used in this study is convenience sampling
technique.

Data Collection: Data has been collected both from primary as well as secondary sources as
described below:

Primary sources:-

Primary data has been obtained through questionnaires.

Secondary sources:-

The secondary sources of data has been taken from the various websites, articles etc.

Sample Size — 100

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Area of Survey — Jalandhar

Data Processing- Data is analyzed using graphical and tabulation techniques.

Analytical Tool- After collection of data another work necessary for any data collector is to
correctly analysis that data. So, statistical tools help us to correctly analysis the data, as we have
used here the software named SPSS for analysis of the data. e.g. Bar charts, Factor analysis.

5. Data analysis and interpretation

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Interpretation

As shown in the bar graph majority of customers surveyed i.e. 33% are using Airtel, with 25%
and 23% of customers using Vodafone and Reliance respectively and very less customers were
using Tata, Idea and BSNL.

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Interpretation

As shown in the bar graph majority of the customer’s i.e.60%, are using VAS mostly and 40% of
customers are rarely using VAS. This depicts that the customers are using VAS and these have
become important part of their basic services.

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Interpretation

As shown in the bar graph majority of the customers i.e.37% use VAS for entertainment
purposes and almost 30% of customers use VAS to connect to their friends. 18% of customer use
VAS because of status and only 12% and 3% use VAS because of info VAS and m commerce.
This depicts that maximum customers see VAS as a source of entertainment and a tool used to
stay connected to the friends.

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Interpretation

As shown in the bar graph majority of the customers i.e.42% use SMS VAS more and 14%,
12%, 10% and 10% of customer uses caller tunes, internet, MMS and games VAS respectively.
And there are fewer users of news and ringtones VAS. These show customers are not very fond
of VAS as they majorly use SMS and other VAS are less used despite of huge mobile market.
Mobile operators can still work on to trap those customers by making appropriate strategies.

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Interpretation

As shown in the bar graph 80% (39%-strongly agrees and 41%-agree) consumers are affected by
the advertisement while purchasing VAS. This shows that the good advertisement of the most of
the VAS can make majority of the customers to use VAS.

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Interpretation

As shown in the bar graph majority of the customers i.e.58% of the customers usage of VAS is
effected by celebrities involvement in the promotion of VAS and also a lot of customers i.e.
42% said their usage is not affected.

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Interpretation

As per graphs 51% consumers (13%-highly satisfied and 38%-satisfied) with their mobile VAS
providers, But 49% customers (39%-neutral and 10%- dissatisfied) with their mobile VAS
providers.

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Factor analysis-1

Rotated Component Matrixa

Component

1 2 3

Easy to use -.009 -.174 .747

Prices .090 .225 .835

Variety of Products -.047 .618 .527

Quality of service .027 .879 .045

Availability .240 .737 -.109

Network coverage .438 .180 -.203

Satisfaction .776 .097 .206

Security .708 .020 -.126

Quick response .857 .006 .215

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

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a. Rotation converged in 5 iterations.

Interpretation of output
The output of factor analysis is obtained by requesting principal component analysis and
specifying the rotation. There are two stages in factor analysis. Stage one being the factor
extraction process, wherein the objective is to Identify how many factor are to be executed from
the data. The most popular method for this is called principal component analysis. There is also a
rule-of-thumb based on the computation of an Eigen value, to determine how many factors to
extract. The higher the Eigen value of a factor, the higher is the amount of variance explained by
the factor.
As evidence from table 1 we see that the variables, satisfaction, security and quick
response have loadings of 0.776, 0.708 and 0.857.This suggest that the factor 1 is combination of
3 variables. Therefore this factor can be interpreted as customer convenience.
Now for factor 2 in table 1 we see that the variables quality of service and availability are having
value more than 0.7 i.e. 0.879 and 0.737 respectively. This suggests that the factor 2 is
combination of 2 variables. Therefore this factor can be interpreted as customer oriented.
Finally for factor 3 in table 1 we see that the variables easy to use and price, are having value
more than 0.7 i.e. 0.747 and 0.835 respectively. This suggests that the factor 2 is combination of
2 variables. Therefore this factor can be interpreted as customer acceptance.

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Factor analysis-2

Rotated Component Matrixa

Component

1 2

Provide Good Service .700 .083

They have more plans .767 .282

Affordable rental charge .746 .024

Good Network Coverage .618 .217

Credit Facility .514 .391

Easy to Asses Service .383 .716

Less Complaint .000 .894

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser
Normalization.

a. Rotation converged in 3 iterations.

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Interpretation of output
The output of factor analysis is obtained by requesting principal component analysis and
specifying the rotation. There are two stages in factor analysis. Stage one being the factor
extraction process, wherein the objective is to Identify how many factor are to be executed from
the data. The most popular method for this is called principal component analysis. There is also a
rule-of-thumb based on the computation of an Eigen value, to determine how many factors to
extract. The higher the Eigen value of a factor, the higher is the amount of variance explained by
the factor.
Looking at table 2 we see that the provide good service, they have more plans and affordable
rental charge have loadings of 0.700, 0.767 and 0.746 respectively. This suggests that the factor
1 is combination of 3 variables. Therefore this factor can be interpreted as customer satisfaction.
Now for factor 2 in table 2 we see that easy to asses’ service and less complaint are having value
more than 0.7 i.e. 0.716 and 0.894. This suggests that the factor 1 is combination of 3 variables.
Therefore this factor can be interpreted as Reliable.

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6. References

 Bitner M J, Faranda W T Hubbert A R and Zeithaml VA (1997), “Consumer

Contributions and Roles in Service Delivery”, International Journal of Service Industry
Management, Vol. 8, No. 3, pp. 193-205.
 Hallowell R (1996), “The Relationships of Customer Satisfaction, Customer Loyalty, and
Satisfaction: An Empirical Study”, International Journal of Service Industry
Management, Vol. 7, No. 4, pp. 27-42.
 Hugh Collins, (1993) "Value-added services", Facilities, Vol. 4 Iss: 5, pp.13 – 13
 Nikunj Bhasin, (2010) ,Indian journal of Marketing, Volume: xxxvii, Number. 5-12

 Nityanand Singh (March 2010), Indian journal of Marketing, Volume: xxxix, Number.
10,pp.16-22

 Uppal & Chawla, (2009) Indian journal of Marketing, vol.xxxv, pp.8-21

 Sourav Laha, (2007) ,Indian journal of Marketing, vol. xxiv, pp. 11-18

Websites

http://www.consumerpsychologist.com/cb_Perception.html

http://www.ehow.com/about_6561090_consumer-perception-theory.html

http://www.wisegeek.com/what-are-value-added-services.htm

http://www.mobilein.com/what_is_a_VAS.htm

http://EzineArticles.com/?expert=Amit_Raghuvanshi

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7. Annexure

7.1. Questionnaires

Name of the respondent: ____________________________

Location: _________________________________________

Occupation: _______________________________________

Age: _______ Gender: Male Female

Income (Monthly)

(A) <5000

(B) 5000-15000

(C) >15000

In the following questions either tick or use the given scale. Tick the correct one.
1. Present connection?

a. Airtel b. Reliance c. BSNL

d. Idea e. Vodafone f. Tata

g. others (specify) ______________________

2. Do you use value added services?

a. Yes b. No

3. How often do you use value added service?

a. Mostly b. Rarely

4. Why do you use value added services?

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 a. For entertainment b. Status c. m Commerce

d. Info VAS e. Connect to friends f. other (specify)__________________

5. Rate the following factors on the given five point scale for each of the listed parameters
which you consider most in the value added services?

S. No. Parameters V. important Important Neutral Least Not

importan important
t
1 Easy to use
2 Prices
3 Variety of Products
4 Quality of service
5 Availability
6 Network coverage
7 Satisfaction
8 Quick response
9 Security

6. Can you please say which VAS you prefer the most?

a. SMS b. MMS c. Internet d. Games

e. Ringtones f. Caller tunes g. Miss Call alert h. News

i. others (specify)______________________

7. How long have you been using the mobile value added services?

a. Less than 6 month’s b. 6-12 months

c. 1-2 years d. More than 2 years

8. Do you agree advertisement affects your usage of value added service?

a. Strongly agree b. Agree

c. Disagree d. Strongly disagree

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 9. Do you think celebrities’ involvement in the promotion of value added service effects your
usage?

a. Yes b. No

10. Rate the following factors according to your satisfaction for the mobile value added
services (1 being highest and 5 Being lowest)

S No. Factors 1 2 3 4 5
1 Provide Good Service
2 They have more plans
3 Affordable rental charge
4 Good Network Coverage
5 Credit Facility
6 Easy to Asses Service
7 Less Complaint

11. Can you tell us how much you are satisfied with your mobile Value Added Service? Rank
(1, 2, 3, 4, 5)
Highly Dissatisfied_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Highly Satisfied

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