0% found this document useful (0 votes)
619 views63 pages

Consumer Buying Behavior Study

This document appears to be a summer internship project report analyzing factors that influence consumer buying behavior of wireless internet broadband connections for Sistema Shyam Teleservices Ltd. in Pune, India. It includes an introduction on consumer buying behavior and the need for the study. It then provides profiles of the telecommunications sector and company. The report outlines the research methodology used, including sampling and data collection methods. It presents data analysis and findings on demographic factors and attributes that influence customers' purchase decisions for wireless broadband, such as brand, speed, price, promotions, and availability. It concludes with observations and recommendations.

Uploaded by

jyotiagohil
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
619 views63 pages

Consumer Buying Behavior Study

This document appears to be a summer internship project report analyzing factors that influence consumer buying behavior of wireless internet broadband connections for Sistema Shyam Teleservices Ltd. in Pune, India. It includes an introduction on consumer buying behavior and the need for the study. It then provides profiles of the telecommunications sector and company. The report outlines the research methodology used, including sampling and data collection methods. It presents data analysis and findings on demographic factors and attributes that influence customers' purchase decisions for wireless broadband, such as brand, speed, price, promotions, and availability. It concludes with observations and recommendations.

Uploaded by

jyotiagohil
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 63

Sistema Shyam Teleservices (SSTL)

Summer Internship Project Report

on

A Study of Factors Influencing Consumer Buying


Behaviour of Wireless Internet Broadband
Connection

in
Sistema Shyam Teleservices Ltd.
Pune

In Partial Fulfillment of
University of Pune MBA Degree 2009-11

Indira College of Engineering & Management


by
Jyoti A. Gohil
MBA (Marketing)
Page 0 of 63
Sistema Shyam Teleservices (SSTL)

DECLARATION

I, the undersigned, hereby declare that the Project Report


entitled
“A Study of Factors Influencing Consumer Buying Behavior of
Wireless Internet Broadband Connection”
is written and submitted by me to the University of Pune, Pune in
partial fulfillment of the requirements for the award of degree of
Master of Business Administration under the guidance of
Prof. Rachita Bhattacharya. It is my original work and the
conclusions drawn therein are based on the material collected by me.

Place: Pune Jyoti A. Gohil


Date: 13th July 2010

Page 1 of 63
Sistema Shyam Teleservices (SSTL)

Contents
Particulars Page No.
Acknowledgement I
List of Tables II
List of Figures III
Executive Summary 1
Introduction
1.1 Consumer Buying Behavior 2
1.2 Literature Review 6
1.3 Need For the Study 8
1.4 Statement of the Problem 9
1.5 Objectives of the Project 10
1.6 Scope of the Study 11
Profile of the Organization
2.1 Sector Profile 12
2.2 Company Profile 14
2.3 Product Profile 16
Research Design and Methodology
3.1 Research Design 19
3.2 Sampling Design 19
3.3 Sources and Methods of Data Collection 20
3.4 Methods of Data Analysis and Statistical Techniques 20
3.5 Limitations of the Study 21
Data Presentation, Analysis and Interpretation
4.1 Age Profile of the Sample Population 22
4.2 Qualification of the Respondents 23
4.3 Number of People in the Family 24
4.4 Income of the Family 25
Page 2 of 63
Sistema Shyam Teleservices (SSTL)

4.5 Different Uses of Internet 26


4.6 Influence of Different Sources of Information on consumer 27
buying decision
4.7 Influence of company brand name on customer purchase 28
decision
4.8 Influence of Net Speed on customer purchase decision 29
4.9 Influence of area wise connectivity on customer purchase 30
decision
4.10 Influence of company price of the product on customer 31
purchase decision
4.11 Influence of tariff plan on customer purchase decision 32
4.12 Influence of availability of product in the store on customer 33
purchase decision
4.13 Influence of convenience in handling on customer purchase 34
decision
4.14 Influence of Different promotional activities undertaken by 35
MTS on customer purchase decision
4.15 Influence of offers/discounts provided on customer purchase 36
decision
Findings And Observations 37
Suggestions and Recommendations 38
Bibliography A
Questionnaire C

Page 3 of 63
Sistema Shyam Teleservices (SSTL)

Acknowledgement

First of all I would like to thank the Management at Sistema Shyam


Teleservices LTD. (MTS) for giving me the opportunity to do my two month
project training in their esteemed organization.

I am highly obliged to Mr. Arun Vajpai (Area Sales Manager) who has
provided me guidance, inspiration, perspective and stimulating discussion,
through the project. His constant review and excellent suggestions throughout
the project are highly commendable.

A study like this cannot be completed without help from other persons
and therefore I would like to express my gratitude to Prof. Rachita
Bhattacharya to provide me crucial guidance in the analytical part of this
project.

My heartfelt thanks to all executives who helped me gain knowledge


about the actual working and the processes involved in various departments.

Finally I would like to thank our friends and family member for giving
me constant support and encouragement.

Jyoti A. Gohil

MBA Marketing

Page 4 of 63
Sistema Shyam Teleservices (SSTL)

List of Tables
Table No. Title of the Table Page No.
Table No. 1 MBlaze Unlimited Plans 16
Table No. 2 MBlaze Prepaid Plans 18
Table No. 3 MBlaze Postpaid Plans 18
Table No. 4 Age Profile of the Sample Population 22
Table No. 5 Qualifications of the Respondents 23
Table No. 6 Number of People in the Family 24
Table No. 7 Income of the Family 25
Table No. 8 Different Uses of Internet 26
Table No. 9 Sources of Information 27
Table No. 10 Influence of company brand name on customer 28
purchase decision
Table No. 11 Influence of Net Speed on customer purchase 29
decision
Table No. 12 Influence of area wise connectivity 30
Table No. 13 Influence of company price of the product 31
Table No. 14 Influence of tariff plan on customer purchase 32
decision
Table No. 15 Influence of availability of product in the store 33
Table No. 16 Influence of convenience in handling 34
Table No. 17 Influence of Different promotional activities 35
undertaken by MTS
Table No. 18 Influence of offers/discounts provided 36

Page 5 of 63
Sistema Shyam Teleservices (SSTL)

List of Figures
Figure No. Title of the Figure Page No.
Figure No. 1 Shareholding of Sistema and Shyam Groups in 14
SSTL

Figure No. 2 Age Profile of the Sample Population 22


Figure No. 3 Qualifications of the Respondents 23
Figure No. 4 Number of People in the Family 24
Figure No. 5 Income of the Family 25
Figure No. 6 Different Uses of Internet 26
Figure No. 7 Sources of Information 27
Figure No. 8 Influence of company brand name on customer 28
purchase decision.

Figure No. 9 Influence of Net Speed on customer purchase 29


decision

Figure No. 10 Influence of area wise connectivity 30


Figure No. 11 Influence of company price of the product 31
Figure No. 12 Influence of tariff plan on customer purchase 32
decision

Figure No. 13 Influence of availability of product in the store 33


Figure No. 14 Influence of convenience in handling 34
Figure No. 15 Influence of Different promotional activities 35
undertaken by MTS

Figure No. 16 Influence of offers/discounts provided 36

Page 6 of 63
Sistema Shyam Teleservices (SSTL)

Executive Summary

Page 7 of 63
Sistema Shyam Teleservices (SSTL)

Growth on the Data Cards, especially happen when business


travelers, academicians as well as other professionals need to access
emails and corporate applications as well as personal requirements
during urgent trips and travels.
The buying decision of a buyer is influenced by an various
consumer decision and expectation. He expects best performance
maximum durability and more dependability from a product or service.
The decision making is a process whereby a buyer decides to purchase a
particular product out of various available alternatives depending upon
his ability to purchase and willingness to purchase. This process of
selection and final selection is known as buying decision making.
MTS is new in India and has entered in India since September
2008. Within several months, it has surprised other players in the market
with its services and wants to capture the market.
From the whole population, sample size of 100 people was
selected for data collection. All the necessary data was collected from
the selected sample using questionnaires, interviews and schedules. The
procedure adopted in the present study is simple random sampling. In
this all units in the population has an equal chance of inclusion in the
sample.
From the study, it is found that there exist many factors which
influence the consumer buying decision of wireless internet broadband
connection. They include price, quality, availability of the product,
brand name, advertisement of the company. Influence of company’s
sales promotional activities has little influence on buying decision of
consumer while they purchase wireless internet broadband connection.

Page 8 of 63
Sistema Shyam Teleservices (SSTL)

Introduction

Page 9 of 63
Sistema Shyam Teleservices (SSTL)

1.1 CONSUMER BUYING BEHAVIOR


a) Definition:
Consumer behavior is the study of how individuals, groups, and organizations
select, buy, use and dispose of goods, services, ideas or experiences to satisfy their needs
and wants. Consumer behavior refers to the mental and emotional process and the
observable behavior of consumers during searching, purchasing and post consumption of
a product or service.

Consumer behavior involves study of how people buy, what they buy, when they
buy and why they buy. It blends the elements from psychology, sociology, socio
psychology, anthropology and economics. It also tries to assess the influence on the
consumer from groups such as family, friends, reference groups and society in general.
The aim is to appreciate the consumer’s decisions and actions. The point of this process is
to determine what it is exactly that the buyer wants by studying demographics,
psychographics and behavioral variables. This process will also look at the influence that
various categories make, such as; Reference groups, friends, family, and general society.
Here I have inserted a quote from Belch and Belch describing what consumer behavior is
in their eyes:

'The process and activities people engage in when searching for, selecting, purchasing,
using, evaluating, and disposing of products and services so as to satisfy their needs and
desires'.

Buyer behavior has two aspects: the final purchase activity visible to any observer
and the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone.

Page 10 of 63
Sistema Shyam Teleservices (SSTL)

b) Factors Affecting Consumer Buying Behavior:


Consumer buying behavior is influenced by the major three factors:
1. Social Factors
2. Psychological Factors
3. Personal Factors.

A. Social Factors

Social factors refer to forces that other people exert and which affect consumers’
purchase behavior. These social factors can include culture and subculture, roles and
family, social class and reference groups.

Example:

Culture is the fundamental determinant of a person’s wants and behavior.


By taking into consideration Reference group, these can influence/ affect the consumer
buying behavior. Reference group refers to a group with whom an individual identifies
herself/ himself and the extent to which that person assumes many values, attitudes or
behavior of group members. Reference groups can be family, school or college, work
group, club membership, citizenship etc. Reference groups serve as one of the primary
agents of consumer socialization and learning and can be influential enough to induce not
only socially acceptable consumer behavior but also socially unacceptable and even
personal destructive behavior.
For example, if fresher student joins a college / university, he/she will meet
different people and form a group. In that group there can be patterns of values, for
example style of clothing, handsets which most of group member prefer or even
destructive behavior such as excessive consumption of alcohol, use of harmful and
addictive drugs etc. So, according to how an individual references him / her to that
particular reference group, this will influence and change his/her buying behavior.

Page 11 of 63
Sistema Shyam Teleservices (SSTL)

B. Psychological Factors

These are internal to an individual and generate forces within, that influence
her/his purchase behavior. The major forces include motives, perception, learning,
attitude and personality.

Example:

Attitude is an enduring organization of motivational, emotional, perceptual and


cognitive processes with respect to some aspect of our environment. Consumer forms
attitude towards a brand on the basis of their beliefs about the brand.
For example, consumers of Sony products might have the belief that the products
offered by Sony are durable; this will influence those customers to buy Sony products
due to this attitude towards the brand.

C. Personal Factors

These include those aspects that are unique to a person and influence purchase
behavior. These factors include age, stage in the life cycle, occupation, economic
circumstances, lifestyle, values and situational factors.

Example:

Lifestyle is an indicator of how people live and express themselves on the basis of
their activities, interests, and opinions. Lifestyle dimension provide a broader view of
people; about how they spend their time, the importance of things in their surroundings
and their beliefs on broad issues associated with life and living and themselves. This is
influenced by demographic factors and personality.
E.g. A CEO or Manager is likely to buy more formal clothes, ties and shoes or
PDAs and less informal clothes like jeans as compared to a Mechanic or Civil engineer.
So according to their lifestyle and profession, the buying behavior of people differs from
one another.

Page 12 of 63
Sistema Shyam Teleservices (SSTL)

c) Applications of consumer behavior:


• The most obvious is for marketing strategy—i.e., for making better marketing
campaigns. For example, by understanding that consumers are more receptive to
food advertising when they are hungry, we learn to schedule snack advertisements
late in the afternoon. By understanding that new products are usually initially
adopted by a few consumers and only spread later, and then only gradually, to the
rest of the population, we learn that (1) companies that introduce new products
must be well financed so that they can stay afloat until their products become a
commercial success and (2) it is important to please initial customers, since they
will in turn influence many subsequent customers’ brand choices.
• A second application is public policy. In the 1980s, Accutane, a near miracle cure
for acne, was introduced. Unfortunately, Accutane resulted in severe birth defects
if taken by pregnant women. Although physicians were instructed to warn their
female patients of this, a number still became pregnant while taking the drug. To
get consumers’ attention, the Federal Drug Administration (FDA) took the step of
requiring that very graphic pictures of deformed babies be shown on the medicine
containers.
• Social marketing involves getting ideas across to consumers rather than selling
something. Marty Fishbein, a marketing professor, went on sabbatical to work for
the Centers for Disease Control trying to reduce the incidence of transmission of
diseases through illegal drug use. The best solution, obviously, would be if we
could get illegal drug users to stop. This, however, was deemed to be infeasible. It
was also determined that the practice of sharing needles was too ingrained in the
drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr.
Fishbein created a campaign that encouraged the cleaning of needles in bleach
before sharing them, a goal that was believed to be more realistic.
• As a final benefit, studying consumer behavior should make us better
consumers. Common sense suggests, for example, that if you buy a 64 liquid
ounce bottle of laundry detergent, you should pay less per ounce than if you
bought two 32 ounce bottles. In practice, however, you often pay a
size premium by buying the larger quantity. In other words, in this case, knowing
this fact will sensitize you to the need to check the unit cost labels to determine if
you are really getting a bargain.

Page 13 of 63
Sistema Shyam Teleservices (SSTL)

1.2 Literature Review


From marketing perspective, consumer choice behavior can be studied through the
classical five-step (need–information search–evaluation of alternatives–purchase–post-
purchase evaluation) problem solving paradigm or through the progression of consumer
choice from a product class to brand choice (Dorsch, Grove, and Darden, 2000). The
five-step model is usually suitable for decision making that assumes rational problem
solving behavior and, in most cases, complex decision making. The acquisition of a
wireless internet broadband connection follows this traditional view of buying process,
but is in many situations also affected by symbolic values related to brands.
Consumer choice behavior has some important prevailing conditions that must be
taken into account while studying choice. In the light of the classical problem solving
buying behavior, consumers engage in information search before making the actual
choice. Consumer decision making process is usually guided by already formed
preferences for a particular alternative. This means that consumers are likely to make the
choice between alternatives based on limited information search activity (Beatty and
Smith, 1987; Moorthy, Ratchford and Talukdar, 1997) and without detailed evaluation of
the other alternatives (Alba and Hutchinson, 2000; Chernev, 2003; Coupey, Irwin and
Payne, 1998; Slovic, 1995). In close relation to information search, evaluation of
alternatives has also gained a momentum in recent research (Laroche, Kim and Matsui,
2003). Their study on consumer’s use of five heuristics (conjunctive, disjunctive,
lexicographic, linear additive, and geometric compensatory) in the consideration set
formation found that conjunctive heuristics is the most often used decision model in the
consideration set formation for two product classes in the study (beer brands and fast
food outlets). Conjunctive heuristics means that a consumer selects a brand only if it
meets acceptable standards, the so-called cutoff point on each key attribute consumer
regards as important (Assael, 1995, p. 249; Solomon, 2001, p. 280). In this non-
compensatory method of evaluation, a consumer would eliminate a brand that does not
fulfill the standards on one or two of the most important attributes, even it is positive on
all other attributes.
We limit our analysis in this paper to consumer choice that can range from choice
oriented referring to a decision on which alternative to purchase from a set of
alternatives, whether or not to purchase, or whether to purchase now or later to value
oriented choice (Shuv and Huber, 2000). The latter refers to an evaluation setting, in
which each alternative is evaluated on different value criteria.

Page 14 of 63
Sistema Shyam Teleservices (SSTL)

Furthermore, consumer choice behavior can either be approached by utilizing


different choice models (see, e.g., Chintagunta, 1999; Bockenholt and Dillon, 2000;
Swait and Adamowicz, 2001) or neural networks to model selection decisions (e.g.,
Papatla, Zahedi and Zekic-Susac, 2002). Papatla et al. (2002) examined empirically brand
choice and store choice in regard to margarine, detergent and tissue. The research found
that while neural networks have higher probability of resulting in a better performance,
hybrid models guaranteed equal or better results than stand-alone models. It has also been
pointed that many decision strategies used by consumers can change due to person-,
context-, and task-specific factors (Dhar, Nowlis and Sherman, 2000; Swait and
Adamowicz, 2001). Therefore, mathematical modeling has its limitations in regard to the
fact that consumers tend to utilize different approaches to make choices. Thereby,
researchers should pay more attention to factors like task complexity and context in
modeling choice behavior (cf. Swait and Adamowicz, 2001). Moreover, Coupey, Irwin
and Payne (1998) found that the influence of task and context factors might be greater in
situations in which consumer has little prior knowledge and experience.
It is widely accepted that the traditional problem solving approach involving
rational decision making to the study of consumer choice may not be suitable for all
situations, or is at least incomplete to understand choice behavior. Limited information
search and evaluation of alternatives led to a situation in which consumer choice is also
driven by hedonic considerations (e.g., Dhar and Wertenbroch, 2000). In general, a
common distinction to be made is that while the utilitarian goods usually are primary
instrumental and functional, hedonic goods provide fun, pleasure and excitement. It has
been noted that many choices have both utilitarian and hedonic features (Batra and
Ahtola, 1990), and thus it can also be proposed that the choice between mobile phones
has both utilitarian (e.g., communication, time planning) and hedonic (e.g., games,
camera) features. The younger the consumer the more hedonistic features consumers tend
to value in mobile phones (Wilska, 2003).
Quite similarly, consumer choice can also be approached from the perspective of
conscious and non conscious choice (e.g., Fitzsimons et al., 2002). Quite many choice
situations occur outside of conscious awareness and with limited information search
(Kivetz and Simonson, 2000) and it can be stated that many choices have both conscious
and non conscious motives. Fitzsimons et al. (2002) found that in many cases non
conscious influences affect choice much more than is traditionally believed by
researchers.

Page 15 of 63
Sistema Shyam Teleservices (SSTL)

1.3 Need for the Study

Successful marketing requires that companies fully connect with their customers.
Adopting a holistic marketing orientation means understanding customers—gaining a
360-degree view of both their daily lives and the changes that occur during their lifetimes
so that the right products are marketed to the rights customers in the right way. Also
before business can develop marketing strategies, they must understand what factors
influence buyer’s behavior and how they make purchase decisions to satisfy their needs
and wants.

Buyers are moved by a complex set of deep and subtle emotions. Their behavior
results from deeply held values and attitudes, their perception of the world and their place
in it, from common sense, impulse or just plain whimsy.

This study basically is done to understand consumers buying habits. It is done to


understand what consumers consider while going for purchasing a wireless internet
broadband connection. There are a large number of telecom players who want to capture
this huge market of high speed data service (HSD). In this market there are well
established telecom players like Reliance Communication (Netconnect), Tata
Teleservices (Photon), BSNL, Idea and also there are new players entering the market
like MTS and Virgin. This study aims towards collecting information about consumers’
psychology towards wireless internet connection and thus helping MTS in understanding
customer’s nature and help in developing strategies which will thus help them in
increasing their business. The questionnaire is designed keeping in mind all the important
points needed to study customer’s behavior.

Page 16 of 63
Sistema Shyam Teleservices (SSTL)

1.4 Statement of the Problem


• What are the consumers’s buying habits in case of wireless internet
broadband connection?

• What are the factors that influence the buying decision of the customer’s
while purchasing wireless internet broadband connection?

• How do the social factors influence customers buying decision in case of


wireless internet broadband connection?

• How do the psychological factors influence customers buying decision in


case of wireless internet broadband connection?

• How do the personal factors influence customers buying decision in case of


wireless internet broadband connection?

• What strategies should be implemented to increase the market share of


MTS MBlaze in Pune region in wireless internet connection?

Page 17 of 63
Sistema Shyam Teleservices (SSTL)

1.5 Objectives of the Project


A. Primary Objectives
• To study the buying behavior of the customer

• To determine the factors influencing the consumers` wireless internet connection


purchases

• To understand how these factors influence consumers buying decision.

• To find out the basic requirements of the customers from a wireless internet
connection

• To find out what marketing strategies should be undertaken to increase the market
share of MTS MBlaze in the Pune region

B. Secondary Objectives
• To understand how social factors affect customers buying decision

• To understand how psychological factors influence customers buying decision

• To understand how personal factors influence customers buying decision

Page 18 of 63
Sistema Shyam Teleservices (SSTL)

1.6 Scope of the Study


This project on factors affecting consumer behavior is focused on the factors that
are influencing customers buying decision while purchasing a wireless internet
broadband connection. The main objective of this project is to study customers buying
behavior and develop strategies which help MTS in increasing their market share.

The study is mainly focused on various factors that affect consumers buying
decision. Three major factors that influence consumer’s behavior viz. social,
psychological and personal are studied. Also some other factors like economic and
technological factors are studied.

The survey was conducted among different groups and all possible local areas in
Pune were considered for the study. The sample size was of 100 people who included
people from various age groups and different income levels. The data was collected
through filling of questionnaire and interview.

The survey helped in understanding the various factors that influenced the buying
decisions of the customers and understanding their needs when it comes to wireless
internet connection. This study thus helped in suggesting some strategies to MTS in
increasing their number of user’s of MTS MBlaze.

Page 19 of 63
Sistema Shyam Teleservices (SSTL)

Profile of the
Organisation

Page 20 of 63
Sistema Shyam Teleservices (SSTL)

2.1 Sector Profile


a) Telecom Industry of India
The Indian telecommunications industry is one of the fastest growing in the world.
According to the Telecom Regulatory Authority of India (TRAI), the number of
telephone subscriber base in the country reached 653.92 million as on May 31, 2010, an
increase of 2.49 per cent from 638.05 million in April 2010. With this the overall tele-
density (telephones per 100 people) has touched 55.38. The wireless subscriber base has
increased to 617.53 million at the end of May 2010 from 601.22 million in April 2010,
registering a growth of 2.71 per cent.

b) Investments in Telecom Industry

The booming domestic telecom market has been attracting huge amounts of
investment which is likely to accelerate with the entry of new players and launch of new
services. According to the Department of Industrial Policy and Promotion (DIPP), the
telecommunications sector attracted foreign direct investment (FDI) worth US$ 2,554
million during 2009-10. The cumulative flow of FDI in the sector during April 2000 and
March 2010 is US$ 8,930.61 million.

Further, the Indian telecom sector is expected to witness investment of around


US$ 40 billion during the current fiscal, as per the Telecom Equipment and Services
Export Promotion Council. With the development of 3G, expansion of the current
networks and widening of Broadband Wireless Access (BSA) network, the investment in
the sector is likely to increase from the US$ 20 billion witnessed last year.

The telecom industry also witnessed some major merger and acquisition (M&A)
deals worth US$ 22.73 billion during April-June 2010, which includes the Zain deal
between India’s Bharti Airtel and Kuwait based Zain telecom, Uninor merger of Norway
based telecom operator Telenor and India based Unitech. The government has approved
the foreign direct investment (FDI) proposal of the Federal Agency for State Property
Management of the Russian Federation to buy 20 per cent stake in telecom service
provider Sistema-Shyam for US$ 660.1 million.

Page 21 of 63
Sistema Shyam Teleservices (SSTL)

c) 3G Services
The Department of Telecom has taken the pioneering decision of launching of 3G
services by BSNL and MTNL and initiation of process for auction of spectrum for 3G
services to private operators. Allocation of spectrum for third-generation (3G) and
broadband wireless access (BWA) services was done through a controlled simultaneous,
ascending e-auction process.

All the 71 blocks that were put up for auction across the 22 service areas in the
country were sold, leaving no unsold lots. Auction for 3G spectrum ended on May 19,
2010 after 183 rounds of intense bidding over a span of 34 days. The Government is
expected to morph revenue worth US$ 14.6 billion. All the available slots across 22
circles have been sold to seven different operators.

d) Data Services
The sales (shipments) of data cards and USB modems crossed the one million
mark (1,002,169 nos.) in the 12 months ending June 2009, according to the findings of
IDC’s “India Quarterly Data Card and USB Modem Market Review, Q2 CY2009”. The
sharp increase in the demand for data cards/USB modems in the last four quarters has
gone up from 1.76 lakh units in July-September 2008 quarter to 4.05 lakh in April-June
2009. While in the quarter ending July-September 2008 one data card/USB modem was
sold for every 4 notebook computers, this number improved to 3.2 data cards/USB
modems sold for every 4 notebook computers in the April-June 2009 quarter. One-thirds
of the million data cards/USB modems were sold (shipped) in the first six months – July
2008-Decemeber 2008 – while two-thirds were sold (shipped) in the second half –
January-June 2009. Currently the Wireless Internet market is dominated by CDMA
operators in the country. CDMA data card/USB modem shipments accounted for nearly
69% of the total market in Q2 CY2009. The average sales value (ASV) or price of a data
card/USB modem is around Rs. 3,000; going forward, with increasing demand, prices are
likely to come down. This will help improve the overall penetration of wireless
internet/broadband. Currently data cards/USB modems are available mostly in bundled
offerings from operators. However, with increasing demand, IDC India expects more
open market data cards becoming available, thus providing an opportunity to customers
to choose their favorite service provider along with their preferred device. Incumbent
operators (BSNL and MTNL) are pushing 3G data cards/USB modems to increase
subscribers on their recently launched 3G service networks. Private telecom operators are
yet to launch 3G services in the country.

Page 22 of 63
Sistema Shyam Teleservices (SSTL)

2.2 Company Profile


a) Sistema Shyam TeleServices

Sistema Shyam TeleServices (SSTL) is the fastest growing telecom company in


the competitive Indian market, with over 4 million voice subscribers and 70,000 data
customers. SSTL has tied up with Mobile TeleSystems OJSC, a JSFC Sistema company
of Russia, to bring the globally acclaimed telecom brand – “MTS” - to India. MTS is the
8th largest telecom brand in the world. Millward Brown has recently voted MTS as the
72nd ranked Brand from among the Top 100 Brands in the world.

SSTL is a joint venture company between Sistema {LSE-SSA} of Russia and


Shyam Group of India. Sistema is the majority share holder in this joint venture with a
73.71% equity stake, along with the Shyam Group, holding a 23.79% stake and the
remaining 2.5% being held by the public. SSTL has been allocated spectrum to provide
mobile telephony services in 22 circles across the country. Presently SSTL offers voice &
data services in Rajasthan, Bihar/Jharkhand, Kolkata, West Bengal & Sikkim, Chennai,
Tamil Nadu, Kerala, Karnataka, Mumbai, Maharashtra/Goa, and Haryana/Delhi & NCR.
With the launch of the Andhra Pradesh circle, SSTL will be in 12 circles.

Fig. no. 1 Shareholding of Sistema and Shyam Groups in SSTL

Page 23 of 63
Sistema Shyam Teleservices (SSTL)

b) Current Status of the MTS

MTS, the mobile telecom service of SSTL, has seen its subscriber base cross 4
million in April 2010 and the numbers continue to grow exponentially. MTS has
completed a year of its operation in India in March 2010. It is the fastest growing
telecom brand in the country.

The high-speed mobile broadband service, MBlaze, was launched in November


2009 and has seen tremendous market acceptance with over 70,000 satisfied customers in
a short span of time. In April 2010, MTS launched MTS TV for MBlaze customers.
SSTL was the FIRST telecom company to launch mobile broadband internet services
with speeds up to 3.1 Mbps in Jharkhand in April 2010.

MTS unveiled its green data centre in Chennai in April 2010. In April 2010,
Sistema JSFC has been recognized as the ‘Best Russian company of 2009’ operating in
India.

SSTL and MTS created history in March 2010 by enabling a first ever Live
Webcast to facilitate an open dialogue for public communication with a visiting Head of
Government to India. The visiting Chairman of the Government of the Russian
Federation, Mr. Vladimir Putin, interacted from the Sistema office in Delhi with an
audience that was spread across the metro cities of Mumbai, Kolkata and Bengaluru.

Page 24 of 63
Sistema Shyam Teleservices (SSTL)

2.3 Product Profile


A. MTS MBlaze Versions
1) MBlaze Premium

• Plug & Play enabled


• Speed up to 3.1 Mbps
• Fastest uploads at a speed to up to 1.8 Mbps
• Micro SD card slot for data storage
• Stylish swivel modem for flexible usage

2) MBlaze Standard

• Plug & Play enabled


• Speed up to 3.1 Mbps
• Fastest uploads at a speed to up to 1.8 Mbps
FREE browsing on your favorite websites like -
www.yahoo.co.in , www.wikipedia.org , www.makemytrip.com ,www.cricinfo.com ,
www.shopping.indiatimes.com.

Particulars. MBlazer Unlimited MBlazer Unlimited

999 RCV 999 FRC

Rental (In Rs.) 999 999

Usages Unlimited Unlimited

Extra Usage Charges Nil Nil

Validity 30 days 30 days


Tab. No. 1 MBlaze Unlimted Plans

Base Tariff Rs 2/MB

Base validity – Life** (As per license period).


Page 25 of 63
Sistema Shyam Teleservices (SSTL)

B. Prepaid Tariff Plans

MBlazer Monthly Rental (Rs) Free Usage Validity (in days) Extra Usage Charges

Mblazer 198 198 250 MB 30 Re. 0.50/MB

Mblazer 248 248 350 MB 30 Re. 0.50/MB

Mblazer 498 498 750 MB 30 Re. 0.50/MB

Mblazer 598 598 1 GB 30 Re. 0.50/MB

Mblazer 698 698 2 GB 30 Re. 0.50/MB

Mblazer 798 798 3 GB 30 Re. 0.50/MB

Mblazer 898 898 6 GB 30 Re. 0.50/MB

Mblazer 999 999 Unlimited 30 Not Applicable

Mblazer 1050 1050 10 GB 30 Re. 0.50/MB

Mblazer 1500 1500 15 GB 30 Re. 0.50/MB

Mblazer 3000 3000 30 GB 30 Re. 0.50/MB

Mblazer 5000 5000 50 GB 30 Re. 0.50/MB

Mblazer night* 595 10 GB Night 30 Re. 0.50/MB

MBlazer 1 (3M) 1794 3 GB 90 Re. 0.50/MB

MBlazer 3 (3M) 2394 9 GB 90 Re. 0.50/MB

MBlazer 6 (3M) 2694 18 GB 90 Re. 0.50/MB

MBlazer 10 (3M) 3150 30 GB 90 Re. 0.50/MB

MBlazer 15 (3M) 4500 45 GB 90 Re. 0.50/MB

MBlazer 1 (6M) 3588 6 GB 180 Re. 0.50/MB

MBlazer 3 (6M) 4788 18 GB 180 Re. 0.50/MB

MBlazer 6 (6M) 5388 36 GB 180 Re. 0.50/MB

MBlazer 10 (6M) 6300 60 GB 180 Re. 0.50/MB

Page 26 of 63
Sistema Shyam Teleservices (SSTL)

MBlazer 15 (6M) 9000 90 GB 180 Re. 0.50/MB

MBlazer 1 (12M) 7176 12 GB 365 Re. 0.50/MB

MBlazer 3 (12M) 9576 36 GB 365 Re. 0.50/MB

MBlazer 6 (12M) 10776 72 GB 365 Re. 0.50/MB

MBlazer 10 (12M) 12600 120 GB 365 Re. 0.50/MB

MBlazer 15 (12M) 18000 180 GB 365 Re. 0.50/MB

Tab. No. 2 MBlaze Prepaid Plans

C.MTS Postpaid Tariff Plans


MTS MBlaze is Available in Post Paid Option with a Special Offer
Get free data usage worth Rs. 1596 @ just Rs.500*
*Conditions apply. Free data usage of 3GB per month for first two months. Post which
customer will be migrated to MBlaze 3.

Mblazer Monthly Rental (in Rs.) Bundled Free Usage Extra Usage charges#

Mblazer 1 598 1 GB 40 p / MB

Mblazer 2 698 2 GB 40 p / MB

Mblazer 3 798 3 GB 40 p / MB

Mblazer 6 898 6 GB 40 p / MB

Mblazer 10 1050 10 GB 40 p / MB

Mblazer 15 1500 15 GB 40 p / MB

Mblazer Night* 499 10 GB 40 p / MB


• # Extra usage charges are valid for 30 days only
• Service tax at applicable rates and any other applicable government levies will be
charged extra
• Credit limit will be decided as per the payment record of first 3 months from activation
• Unutilised data limit will get lapsed with the end of validity period
• MBlazer Night usage of 10 GB is valid only between 11PM to 7AM

Tab. No. 3 MBlaze Postpaid Plans

Page 27 of 63
Sistema Shyam Teleservices (SSTL)

Research Design
And
Methodology

Page 28 of 63
Sistema Shyam Teleservices (SSTL)

3.1 Research Design


This study is concerned with narration of facts and characteristics concerning
individual, group or situation in the wireless internet broadband connection market.
Hence descriptive research method is used for the study. The major purpose of
descriptive study is description of the state of affairs as it exists at present. Sometimes the
term Ex post facto research is used for descriptive research study. It includes attempts by
researchers to discover causes even when they cannot control the variables. The design is
very rigid and not flexible.

3.2 Sampling Design


The universe selected for the study is finite in nature as it includes all the people
who are the internet users.

The working individuals in the field of IT, engineering, etc, stock brokers, students
pursuing their education in professional courses forms the sampling unit for the study.

Sampling frame considered for studying the consumer behavior are the people dwelling
in city of Pune and who internet users.

In this study there scope for estimating the probability that each item in the population
has been included in the sample. Hence, non-probability sampling technique is preferred
for study, as the samples are deliberately chosen from the huge population. Thus since
unrestricted sampling technique of element selection is used the sampling technique used
for the study can be defined as convenience sampling.

Since the research design selected is such that it makes provision for protection from any
kind of error while selecting the sample and maximize the reliability; there very less
chances of sampling errors. Also while selecting the sample for study, due care is taken
to minimize the cost as much as possible.

Page 29 of 63
Sistema Shyam Teleservices (SSTL)

3.3 Source and Methods of Data Collection


For analyzing the problem both primary and secondary data is required. Various
techniques of data collection are used to collect the data.

The techniques used for collecting primary data are questionnaire and schedules.
Also telephonic interviews were conducted for the purpose of collecting the data. The
questionnaire consisted of 13 questions which collected all the information required for
the study. The questions asked were multiple choice questions with 4 to 5 options. Also
some close ended questions were asked. In the questionnaire Likert-type scale was used
to measure the respondent’s attitude towards a particular feature.

For collecting secondary data several websites and blogs were searched like MTS
corporate site, economic times website, etc. Some books related to consumer buying
behavior and basic marketing concepts were referred while carrying out the research
study marketing management Philip Kotler 13th edition, consumer behavior by Aaker,
Kumar and Day, etc. All sources used for the study are listed out in the bibliography at
the end of the report.

3.4 Methods of Data Analysis and Statistical Techniques


For analyzing the data, firstly it was edited in order to check that all the forms are
filled properly and all the wrong entries were taken care of.

After editing the coding of the data was done by assigning numerals and the data
was classified into number of categories according to the attributes under study and
different classes.

For analyzing the data various tools like tabular analysis, percentage analysis and
graphical analysis are used. For graphical analysis bar graphs are used.

Page 30 of 63
Sistema Shyam Teleservices (SSTL)

3.5 Limitations of the Study


• The survey was conducted within the limited time frame; so few shortcomings
may be expected.

• The respondent’s personal bias may be another factor, which is uncontrollable.

• The finding of the survey is strictly based on the responses of the respondents. It is
difficult to find the euthenics to be true, so we are assuming them to be true.

• It was very difficult to explain the respondents about how to fill the questionnaire
& it took time for data collection.

• The sample is too small to study behavior of large population of Pune city. Thus
the results obtained cannot be said as the exact replica of the viewpoint of the
people of Pune city.

Page 31 of 63
Sistema Shyam Teleservices (SSTL)

Data Presentation,
Analysis and
Interpretation

Page 32 of 63
Sistema Shyam Teleservices (SSTL)

4.1 Age Profile of the Sample Population


Age Percentage

Less than 18 Years 9

Between 18-23 Years 23

Between 23-28 Years 46

28-45 Years 14

More than 45 Years 8

Tab. No. 4 Age Profile of the Sample Population

Fig. no.2 Age Profile of the Sample Population

Interpretation:
Most of the people are in the age group of 18 to 28 years who are either
studying or working in some firms. These people are using internet for various
purposes regularly.

Page 33 of 63
Sistema Shyam Teleservices (SSTL)

4.2 Qualifications of the Respondents


Qualification Percentage

10th pass or below 2

12th pass 6

Graduate 45

Post Graduate 32

Professional Courses 15

Tab. No. 5 Qualifications of the Respondents

Fig. no. 3 Qualifications of the Respondents

Interpretation:
It can be seen that most of the people are well educated having a graduate or
post graduate degrees. These people are those who use internet regularly are the
most likely customers of wireless internet connection.

Page 34 of 63
Sistema Shyam Teleservices (SSTL)

4.3 Number of People in the Family


Number of People Percentage

Up to 2 Members 9

2-4 Members 13

4-6 Members 70

More than 6 Members 7

Tab. No.6 Number of People in the Family

Fig. no.4 Number of People in the Family

Interpretation:
Most of the family consist of 4 to 6 family members which mother, father
and their children. Also some families have their grandparents along with them.
Out of 4-5 members in each family at least 2-3 of use internet.

Page 35 of 63
Sistema Shyam Teleservices (SSTL)

4.4 Income of the Family


Monthly Income Percentage

Less than Rs.15000 18

Between Rs.15000-Rs.25000 26

Between Rs.25000-Rs.40000 42

More than Rs.40000 16

Tab. No. 7 Income of the Family

Fig. no. 5 Income of the Family

Interpretation:
It is found that families have their income in the range of Rs.15000-
Rs.40000. These are those working in one or the firm with high spending power.
These people need internet for their business needs and also for their family use.

Page 36 of 63
Sistema Shyam Teleservices (SSTL)

4.5 Different Uses of Internet

Uses Number of People

Research/Studies 28

Job Search 80

Email 100

Chatting 92

Downloading 100

Banking/Stocks/Investments 36

News/Weather Reports 20

Tab. No.8 Different Uses of Internet

Fig.no.6 Different Uses of Internet

Interpretation:
It can be observed that mostly use internet either to get in touch with their
friends and colleagues or for downloading various stuffs from the internet. Hence
they would like to have internet with unlimited download plans.

Page 37 of 63
Sistema Shyam Teleservices (SSTL)

4.6 Influence of Different Sources of Information on consumer


buying decision
Sources of Information Percentage
Friends 33
Relatives 21
Internet 12
Expert Reviews 9
Newspaper/Magazines 7
Television Ads 18
Tab. No.9 Sources of Information

Fig. no.7 Sources of Information

Interpretation:
From the above statistics, it is seen that while gathering information about data
service people mostly rely on the opinions of their friends and relatives other than any
other source. The reason behind this would be that they find the experiences shared by
the friends/relatives more true and reliable than any other source.

Page 38 of 63
Sistema Shyam Teleservices (SSTL)

4.7 Influence of company brand name on customer purchase


decision.

Importance Percentage
Extremely Important 54
Somewhat Important 28
Neither Important nor Unimportant 10
Somewhat Unimportant 6
Not at all important 2
Tab. no. 10 Influence of company brand name on customer purchase decision.

Fig. no. 8 Influence of company brand name on customer purchase decision.

Interpretation:
It can be seen above that people while going for any technically advanced product,
people prefer branded products than local products as they feel branded products are
good in quality and are warranty products to use.

Page 39 of 63
Sistema Shyam Teleservices (SSTL)

4.8 Influence of Net Speed on customer purchase decision.

Importance Percentage
Extremely Important 44
Somewhat Important 37
Neither Important nor Unimportant 15
Somewhat Unimportant 4
Not at all important 0
Tab. No. 11 Influence of Net Speed on customer purchase decision

Fig. no. 9 Influence of Net Speed on customer purchase decision

Interpretation:
Nearly 50% percent of the people say that Net Speed is important while
he/she is to have a wireless internet connection. Good net Speed is required to surf
all the websites easily.

Page 40 of 63
Sistema Shyam Teleservices (SSTL)

4.9 Influence of area wise connectivity on customer purchase


decision.

Importance Percentage
Extremely Important 39
Somewhat Important 54
Neither Important nor Unimportant 6
Somewhat Unimportant 1
Not at all important 0
Tab. No. 12 Influence of area wise connectivity

Fig.no.10 Influence of area wise connectivity

Interpretation:
Large number of people found that internet connectivity of data card should
be good across various localities as wireless internet is purchased by customers so
that they can use it anywhere they want.
Page 41 of 63
Sistema Shyam Teleservices (SSTL)

4.10 Influence of company price of the product on customer


purchase decision

Importance Percentage
Extremely Important 38
Somewhat Important 29
Neither Important nor Unimportant 17
Somewhat Unimportant 9
Not at all important 7

Tab. No. 13 Influence of company price of the product

Fig. no.11 Influence of company price of the product

Interpretation:
It can be observed that price of the product plays an important part while
purchasing product as people don’t like to spend more of their hard earned money
in stuff like internet data card; when they have a wired internet at their house.

Page 42 of 63
Sistema Shyam Teleservices (SSTL)

4.11 Influence of tariff plan on customer purchase decision

Importance Percentage
Extremely Important 36
Somewhat Important 29
Neither Important nor Unimportant 23
Somewhat Unimportant 12
Not at all important 0

Tab. No.14 Influence of tariff plan on customer purchase decision

Fig.no.12 Influence of tariff plan on customer purchase decision

Interpretation:
Tariff Plans are the regular expense that they have to pay every month.
Hence they want minimum tariffs available while selecting the data card.

Page 43 of 63
Sistema Shyam Teleservices (SSTL)

4.12 Influence of availability of product in the store on customer


purchase decision

Importance Percentage
Extremely Important 33
Somewhat Important 26
Neither Important nor Unimportant 19
Somewhat Unimportant 11
Not at all important 11

Tab.no.15 Influence of availability of product in the store

Fig.no.13 Influence of availability of product in the store

Interpretation:
According to study, the Data card should be easily available for the people
as they would not waste their time in searching the product since it is not very
important for them and they do their work using other wired connection.

Page 44 of 63
Sistema Shyam Teleservices (SSTL)

4.13 Influence of convenience in handling on customer purchase


decision

Importance Percentage
Extremely Important 15
Somewhat Important 37
Neither Important nor Unimportant 21
Somewhat Unimportant 19
Not at all important 8

Tab.no.16 Influence of convenience in handling

Fig. no.14 Influence of convenience in handling

Interpretation:
People will not buy such products which are difficult to handle when they
are to be carried along while travelling. Hence the product should be such that it an
be easily carried along and easy to use.

Page 45 of 63
Sistema Shyam Teleservices (SSTL)

4.14 Influence of Different promotional activities undertaken by


MTS on customer purchase decision

Promotion Activities Percentage


TV Advertisement 5
Friends 18
Retail Stores 14
Company Sales Executive 53
Newspaper/Magazines 7
Other Sources 3
Tab. No. 17 Influence of Different promotional activities undertaken by MTS

Fig.no.15 Influence of Different promotional activities undertaken by MTS

Interpretation:
It is found company sales team is highly influential in convincing people to
go for MTS. Also the reason behind this would be less promotional activities done
by MTS through other media sources.

Page 46 of 63
Sistema Shyam Teleservices (SSTL)

4.15 Influence of offers/discounts provided on customer purchase


decision

Importance Percentage
Extremely Important 23
Somewhat Important 35
Neither Important nor Unimportant 22
Somewhat Unimportant 13
Not at all important 7
Tab.no.18 Influence of offers/discounts provided

Fig.no.16 Influence of offers/discounts provided

Interpretation:
It is observed that when it comes to purchasing wireless internet card, people
go for the one giving attractive offers or discounts. As along the product they get
extra benefits to use
Page 47 of 63
Sistema Shyam Teleservices (SSTL)

Findings
And
Observations

Page 48 of 63
Sistema Shyam Teleservices (SSTL)

• Following are the factors that affect the buying behavior of the
consumers with respect to wireless internet connection—
A) Personal factors

1) Age & Life cycle stage: From the survey it is cleared that 69% of people in
Pune that were in the survey are in the age group of 18-28 years. These are
students from colleges or working individuals with high spending income. Efforts
need to be taken to capture this group.

2) Education: Most of the population under survey in Pune is well educated with
degree in their hand. Therefore it can be concluded that “Education” is an
important stimulus affecting consumers buying behavior

B) Social factors

1) Number of people in the family: Most of the families have 4 to 6 members in it.
These include parents, their children and the grandparents. These people’s need
could become an influencing factor for the company.

2) Source of Information: Friends and relatives have maximum influence on the


buying decision of an individual.

C) Psychological factors

Various psychological factors influence an individual’s buying decision. These


factors are brand name of the company, price of the product, promotional activities
carried out by the company, availability of the product in the market, tariff plans
and offers and discounts available on the product.

1) Brand Name: For 54 % of people brand name is very important for having
the data card.

2) Price of the product: 67% people find price as an important factor while
taking the purchase decision. Hence price should be such that the customers
feel to buy.

Page 49 of 63
Sistema Shyam Teleservices (SSTL)

3) Promotional Activities: People like to purchase those products which are


heavily promoted in the market. People are adapted to see products being
promoted on TV and other media. But MTS has spent very less on such
media and more focus is given on direct promotion through sales.

4) Availability of product in the market: 59% of people go for products which


are easily available in the market.

5) Tariffs plans, Offers and Discounts: 36% people find tariffs plans important
while purchasing data card. Hence they would like to go with minimum
tariff plans available in the market.35% people feel that offers and discounts
do affect the buying behavior of people. Therefore, they would go with
product that comes with most attractive offers and discounts in the market.

D) Economic Factors

1) Income of the family: It is observed that 68% people are earning their monthly
income between Rs.15000-Rs.40000. Thus it can be seen Pune citizen have huge
spending power, but they would like to spend on useful products available at the
best deal.

E) Technological Factors

Various technical aspects considered in study are net speed, area wise connecting
and convenience in handling

1) Net Speed: Most of the people use internet for downloading, emailing, etc.
This requires having good speed and hence 81% people feel it influential in
taking buying decision.

2) Area wise connectivity: The product is used while traveling and would be
used in and around the city. Therefore, 93% people find it important to have
good connectivity in all possible areas.

3) Convenience in handling: As the product is to be used while travelling, it is


important for it to be handy and user friendly with less complex operations.

Page 50 of 63
Sistema Shyam Teleservices (SSTL)

Suggestions
And
Recommendations

Page 51 of 63
Sistema Shyam Teleservices (SSTL)

Playing with the PLC


MTS has the widest internet data card range and the deepest product line in
internet data card market. The segments thus formed and the components extracted
indicate that different buyer groups have decision variables, use data card for
accessing internet for different purpose and have varied perceptions about brands.
All the segments require different pricing strategies and hence MTS should come
out with different plans specifically targeting different groups.

MTS has several tariff plans but it would have to improve network
connection along with aggressive promotional strategies’ to become an unbeatable
advantage in upgrading the consumer throughout his lifetime and also making him
brand loyal in the process.

According to study, weak signal strength and slow net connection speed
could be a deterrent for MTS MBlaze. Hence MTS should aim to providing higher
network coverage, good signal strength and more efficient response requests. This
can be done by setting up more network towers and having a more customer
friendly focus.

Also it was found that youngsters use internet mostly for entertainment. This
target segment can be attracted by advertising in Television and Internet. Also
word of mouth publicity clearly scores above all forms of information search,
primarily because of its convenience and source credibility. Everybody being
surveyed believed in consulting their circle for opinions while buying connections.

Page 52 of 63
Sistema Shyam Teleservices (SSTL)

Recommendations on 4 P’s
• Product

• The product should focus on improving service response i.e. better customer
service and greater connectivity. This can be done by increasing customer
service facility by setting up more number of customer care centers..

• The product should come up with technical advancement like having an in-
built memory in the data card.

• During study it was found out that in and around Pune good connectivity is
not available. So MTS should increase its infrastructure and reach the areas
where it is not present like Dehuroad, Talegaon, Sinhgad, some parts of
Kothrud, etc.

• Price

• MTS has the lowest plans available with them and their modem prices are
competitive with the other players. Still MTS should keep focus on reducing
extra usage rates and become a price leader for price sensitive heavy usage
segments.

• Special plans and packages should be provided to corporate customers


requiring minimum 5 connections or more than 5 connections

• Promotion

• MTS is investing very less in the promotion of MBlaze. Therefore it should


increase its promotion activities.

• It should use pull strategy to promote MBlaze. In pull strategy various


methods of promotion like advertising, sales promotion, participating in
trade fairs and exhibitions, etc. which are targeted towards the customers to
attract them to buy the product.

Page 53 of 63
Sistema Shyam Teleservices (SSTL)

• It should focus on TV advertising, print advertising, internet advertising and


make its presence felt in the market.

• Also it is found that word of mouth marketing has an excellent effect on the
consumer purchasing behavior. So promotion strategies could be given focus
on viral marketing campaign like on SMS, e-letters or blogs and so forth.

• Promotion activities should be conducted in college campuses, corporate


hubs by arranging special events for students and working individuals,
distributing pamphlets in societies, etc.

• Place

• MTS should strengthen its distribution network and also focus on creating
more web worlds with easy accessibility outside cities as they are perceived
to be authentic by consumers.

• During survey, it was found that MTS uses a number of modes to distribute
the modem in the city like directly to retailers, to the distributors and to the
sales team. This causes an unusual competition among the distributors and
the retailers. To avoid such things MTS should have a single distributor
appointed in a particular region and that distributor will supply to the sales
team and the retailers in the area.

Page 54 of 63
Sistema Shyam Teleservices (SSTL)

Bibliography

Page 55 of 63
Sistema Shyam Teleservices (SSTL)

Bibliography
Journals
• Beatty, S.E. and Smith, S.M. (1987). External search effort: An investigation
across several product categories. Journal of Consumer Research, 14 (1), 83-95
• Moorthy, S., Ratchford, B. and Talukdar, D. (1997). Consumer information
search revisited. Journal of Consumer Research, 23 (4), 263-277.
• Alba, J.W., and Hutchinson, J.W. (2000). Knowledge calibration: What
consumers know and what they think they know. Journal of Consumer
Research, 27 (September),123-156
• Coupey, E., Irwin, J.R. and Payne, J.W. (1998). Product category familiarity
and preference construction. Journal of Consumer Research, 24 (4), 459-468.
• Chernev, A. (2003). When more is less and less is more: The role of ideal point
availability and assortment in consumer choice. Journal of Consumer Research,
30 (2), 170-183.
• Solomon, M.R. (2001). Consumer Behavior. Buying, Having, and Being. 5th
ed. NJ: Prentice-Hall.
• Bockenholt, U. and Dillon, W.R. (2000). Inferring latent brand dependencies.
Journal of Marketing Research, 37 (1), 72-87.
• Swait, J. and Adamowicz, W. (2001). The influence of task complexity on
consumer choice: A latent class model of decision strategy switching. Journal
of Consumer Research, 28 (1), 135-148.
• Press Release of IDC India Ltd. Dated September 18, 2009.

Page 56 of 63
Sistema Shyam Teleservices (SSTL)

Websites
• http://www.cybermedia.co.in/press/pressrelease137a.html
• http://www.mtsindia.in/corporate/about-sstl.html
• http://www.mtsindia.in/corporate/about-mts.html
• http://www.eurojournals.com/ejsr_28_4_03.pdf

Books

• Kothari C. R., Research Methodology, 2nd Edition, New Delhi, New Age
International (P) Ltd. Publishers, 2004
• Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha,
Marketing Management,13th Edition, New Delhi, Pearson Education, 2008
• Leon G. Schiffman, Leslie Lazar Kanuk, Consumer Behavior,9th Edition,
New Delhi, Prentice Hall of India Pvt. Ltd., 2007

Newspapers
• The Times of India
• The Economics Times
• Business Standard

Page 57 of 63
Sistema Shyam Teleservices (SSTL)

Questionnaire

Page 58 of 63
Sistema Shyam Teleservices (SSTL)

Questionnaire
Respected madam/sir,
As a part of my project I would like to gather some information from you
which will help me in an in depth study of project. The information provided by
you will be kept confidential and will be used for academic purpose only. I would
be obliged if you co-operate with me in filling the questionnaire.

1. Name ………………………………………………….

2. Gender a) Male b) Female

3. Age a) Less than 18 years


b) Between 18-23 years
c) Between 23-28 years
d) Between 28-45 years
e) More than 45 years

4. Qualification of the Respondents


a)10th pass or below b) 12th pass
c) Graduate d) Post Graduate
e) Professional Courses

5. Size of the Family a) Up to 2 members b) 2-4 members


c) 4-6 members d) More than 6 members

6. Monthly Income of the Family


a) Less than Rs.15000
b) Between Rs. 15000-Rs.25000
c) Between Rs. 25000-Rs.40000
d) More than Rs. 40000

7. Do you have an internet connection? a) Yes b) No

Page 59 of 63
Sistema Shyam Teleservices (SSTL)

8. For what purpose do you use internet? a) Research/Studies


b) Job Search c) Emails d) Chatting e)Downloading

9. Whom do you consult while buying a wireless internet broadband


connection? a) Friends b) Relatives
c) Internet d) Expert Reviews
e) Newspaper/Magazines f) Television Ads

10. Rate the following attributes according to the importance you give while
buying a wireless internet broadband connection?

Attribute Extremely Somewhat Neither Somewhat Not at all


Important Important Important Nor Unimportant Important
Unimportant

Brand Name of the


Company

Net Speed

Area wise
Connectivity

Price of the Product

Monthly Tariff
plans

Availability of the
Product

Convenience of
Handling

Special
Offers/Discounts

Page 60 of 63
Sistema Shyam Teleservices (SSTL)

11. Are you aware about MTS MBlaze? a) Yes b) No

12. If yes, how did you come to know about MTS MBlaze?
a) TV Advertisement b) Friends c) Retail Stores
d) Company Sales Executives
e) Newspaper/Magazines
f) Any Other Source (Please Specify)……………....

13. Now that you know about MTS MBlaze would you like to purchase it?
a) Yes b) No

14. Any Suggestions


……………………………………………………………………………
……………………………………………………………………………

Thank you!!!

Page 61 of 63
Sistema Shyam Teleservices (SSTL)

Page 62 of 63

You might also like