chapter – 4: data analysis and results section – a...

121

CHAPTER – 4:

DATA ANALYSIS AND RESULTS

Section – A:

Perceptions of Customers on

Customer Relationship Quality in BSNL

In this chapter the findings of the survey of BSNL customers in

respect of the customer relationship quality and its antecedents -

loyalty, customer trust, customer commitment, customer satisfaction

and perceived value are presented. First, the descriptive statistics

describing sample profile and the model variables are presented,

following this the results of testing of the hypotheses were discussed.

The perceptions of the respondents on the different aspects of

relationship quality are analyzed and the influence of gender, age,

occupation, type of service and usage period on the perceptions is

elaborated. Then, the hypothesized relationships of various constructs

are examined.

4.1.1 Profile of Respondents

Table 4A.1 presents the characteristics of the 544 respondents.

The sample has 52.2 per cent of respondents from 21-35 years age

group and 29.5 per cent form above 46 years age group and 5.1

percent are below 20 years and 36 to 45 years age group constitutes

13.2 percent. Gender–wise, the sample is dominated by male; they

122

constitute 74.6 per cent of the sample. Employed people constituted

58 per cent of the sample. The remaining 42 per cent of the sample

has house wives - 18 per cent, Students - 12.5 per cent and

business/self-employed people - 11.4 per cent. When it comes to

income, 46.1 per cent of respondents have monthly income below

Rs.10,000. About 28.9 percent have income in the range of Rs.10,000

- Rs.20,000. The remaining 25 per cent have income above Rs.20,000.

About 74.6 per cent of the respondents have graduate qualifications

and the remaining are educated but do not possess a degree.

It can be said that the sample represents different demographic

categories.

Table 4A.1: Profile of Respondents (N=544)

Variable Categories Frequency Percentage

Age

Below 20 years 28 5.1 21 – 35 Years 284 52.2 36 – 45 Years 72 13.2 46 years and above 160 29.5

Gender Male 406 74.6 Female 138 25.4

Occupation

Employed 316 58.1 House wife 98 18.0 Business/ self employed 62 11.4 Student 68 12.5

Monthly Income (Rs)

Below Rs. 10,000 236 46.1 Rs.10,000 – 20,000 148 28.9 Rs.20,000 – 30,000 58 11.3 Above Rs.30,000 70 13.7

Education

Non-graduate 138 25.4 Graduate/Diploma 258 47.4 Post-graduation/Proff. Degree

148 27.2

123

4.1.2 Service Usage Information

Table 4A.2 provides the details of length of usage period, type of

service and average monthly billing. The respondents are mostly users

of mobile services for more than one year. About 42.6 per cent of the

respondents have usage period less than one year. The remaining

57.4 per cent are using for more than one year. About 35.4 per cent of

them are using it for more than three years. When it comes to the type

of service, most of them have been using pre-paid service. About 73.5

per cent of the respondents are using pre-paid service. With regards

to spend most of the respondents (68.8 per cent), spend monthly less

than Rs.500. About 27.9 per cent of the respondents spend monthly

in Rs.500 - Rs.1000 range. The remaining 3.3 per cent are heavy

users, in the range of Rs.1000 and above.

Table 4A.2: Service Usage Information (N=544)

Aspect Response Categories Frequency Percentage

Length of Usage (Period)

Less than one Year 232 42.6 One to three years 126 23.2

More than three Years 186 34.2

Type of service Cellular Prepaid 400 73.5

Cellular Post Paid 144 26.5

Average monthly spend

Less than Rs. 500 374 68.8 Rs. 501 – 1000 152 27.9

Rs. 1001 – 3000 12 2.2

More than Rs. 3000 6 1.1

124

4.1.3 Switch Information

The BSNL mobile users under study are inquired whether they

are first time users or switchers to BSNL. Tables 4.3, 4.4 and 4.5

provide information. For about 58 per cent of respondents, this is first

mobile communication (Table 4A.3). The remaining 42 per cent have

switched from other services. The main reasons for switch are poor

coverage (35.7 per cent) and high prices (34.9 per cent). Among other

reasons mentioned by some of the respondents is poor customer

service (18.6 per cent) and less value added services (10.9 per cent).

The switch has been from different service providers. However, it is

from Airtel that significant number of the respondents (31.8 per cent)

migrated to BSNL.

Table 4A.3: Service Change Information (N=544)

Aspect Response Categories Frequency Percentage

First mobile connection Yes 318 58.0

No 226 42.0

Table 4A.4: Reasons for Switch (N=226)

Reasons Frequency Percentage Poor coverage 80 35.4 Higher prices 79 34.9 Poor Customer Services 42 18.58 Less value added services 25 11.12

125

Table 4A.5: Previous Service Provider (N=226)

Service provider Frequency Percentage

Airtel 72 31.8 Vodafone 40 17.8 Idea 33 14.7 Tata Indicom 28 12.4 Aircel 26 11.6 Reliance 23 10.1 Spice 04 01.6 For purpose of analyzing impact of customer characteristics only

the important parameters of gender, age, occupation, type of

service and period of usage are considered. Considering ARPU and

MOU, the age is grouped into two classes up to 35 and above 35;

occupation is grouped into students and employees (income

managing groups ). Similarly period of usage is grouped into up to

one year and above one year. This is done in consultation with

industry experts to give focus to segments.

4.2 RELIABILITY TESTING OF RESEARCH INSTRUMENT

To test the internal reliability of the model variables and the

items used, the Cronbach’s alpha is calculated for the constructs

table 4A.6 shows the results based on customer survey data.

In this survey, there are total 544 filled in questionnaires

that are complete, i.e. no missing data in the questionnaires. For

the fourteen constructs that this study focused on, it is necessary

to measure internal reliability of each construct with its different

126

number of items. To test the internal reliability, the Cranach’s

alpha is calculated for the construct with items used to design the

construct. If the items are multi-dimensional, Cronbach’s alpha

will generally be low. For the constructs included in this research

model, Cronbach’s alphas is ranging from 0.755 to 0.885 (Table

4A.6), which is larger than 0.7; a level considered “acceptable” in

most social science research (Nunnally 1978).

Table 4A.6: Cronbach’s Alpha for Model Constructs S. No Construct Number of

items Cronbach’s alpha

1 Tariff 6 .848

2 Brand image 4 .836

3 Network coverage 3 .833

4 Customer service 3 .755

5 Value added services 3 .809

6 Customer satisfaction 3 .814

7 Complaint behavior 5 .761

8 Complaint handling 2 .764

9 Trust 4 .885

10 Affective commitment 4 .855

11 Calculative commitment 4 .802

12 Normative commitment 6 .849

13 Loyalty 10 .880

14 Relationship quality 3 .861

Table 4A.7: Correlation of Items with the Construct of Survey Instrument Item Correlation of

Item to construct

Cronbach's Alpha if Item Deleted

TF1. The cell phone has good level of performance for the money I pay

.666** .815

TF2. The offers of BSNL are relatively better than the offers announced by other service providers in the market

.572** .833

127

Item Correlation of Item to construct


TF3. The price of cell phone services is more than fair for the performance I receive

.561** .835

TF4. Promotional offers from BSNL are worth the money

.747** .798

TF5. There is benefit from the offers given by BSNL in Road shows

.526** .841

TF6. The new schemes/tariffs/discounts/rebates offering by BSNL are attractive

.706** .808

NW1. The quality of the BSNL cellular network is always good

.775** .681

NW2. The call quality of the BSNL network is always good

.633** .824

NW3. The coverage of the BSNL network is good

.674** .786

VA1. BSNL has variety of value-added services

.670** .727

VA2. BSNL provides convenience to the customers for the use of value- added services.

.659** .738

VA3. Value-added services of BSNL are up-to-date

.648** .750

CV1. Process of changing plan is convenient.

.619** .632

CV2. BSNL provides a variety of customer support systems

.571** .694

CV3. Complaint processing is fast at BSNL.

.574** .685

BI1. BSNL is successful .746** .755 BI2. BSNL is reputed .659** .798 BI3. BSNL has brand image .675** .789 BI4. BSNL is socially responsible .597** .822

CS1. I am satisfied with the BSNL cellular service

.720** .690

CS2. The BSNL cellular services met my expectations

.659** .752

128



CS3. The BSNL services are successful in creating good image in the minds of its customers

.630** .781

CB1. I have several times voiced my complaints with BSNL

.506** .726

CB2. I have problems with the service offered by BSNL

.417** .756

CB3. I complain to other consumers if I experience a problem with BSNL

.482** .734

CB4. I complain to consumer forum if I experience a problem with BSNL

.574** .702

CB5. I switch to a competitor if I experience a problem with BSNL

.673** .662

CH1. In my view, the company is efficient in dealing with complaints

.619** .672

CH2. I am sure, the company is responsive to customer complaints

.619** .684

TR1. I know the company is reliable, not opportunistic in providing services

.763** .851

TR2. I know the company cares about customers

.751** .854

TR3. In my view, the company is honest in all its dealings with customers

.769** .844

TR4. I am sure, the company services are predictable

.732** .859

AC1. I do feel a strong sense of belonging to BSNL services

.793** .774

AC2. I feel happy to stay with BSNL services

.725** .804

AC3. I don’t think I would easily become a customer of another cellular services provider

.619** .847

AC4. BSNL has a great deal of value for me

.667** .829

CC1. It would be too costly to me to change BSNL services, therefore I stay

.607** .758

129



CC2. One of the major reasons I continue to use BSNL is that leaving would require considerable personal inconvenience I switch if number portability is available

.674** .726

CC3. Right now staying with BSNL is a matter of necessity and desire

.593** .763

CC4. Too much in my life would be disturbed if I decided to leave BSNL now

.596** .762

NC1. I do believe that one must always be loyal to BSNL

.694** .811

NC2. I think that people these days move from one service to another service too often

.436** .859

NC3. Jumping from one service to another service seems unethical to me

.653** .820

NC4. I was taught to believe in the value of remaining loyal to BSNL

.718** .806

NC5. I would not leave BSNL now, because I have a sense obligation to it (my organization wants me to use only BSNL)

.637** .823

NC6. If I get another offer I would not feel right to leave BSNL

.662** .818

PI1. I will continue to subscribe to BSNL services

.797** .853

PI2. I continue to recharge my SIM card to have BSNL service

.747** .858

PI3. I consider in BSNL as a my first choice in subscribing to cellular services

.736** .859

PI4. I recommend BSNL services to other people

.788** .855

PI5. I talk to other people about BSNL services

.673** .864

PS1. I am willing to go to another service provider that offers more attractive prices

.415** .884

130



PS2. I am willing to pay a higher price to BSNL than to other service providers for the benefit I currently receive from BSNL because of my strong relationship with BSNL

.248** .892

PS3. I am willing to go to other service providers if they offer better services at the same price

.377** .886

PO1. I continue BSNL because their image comes close to reflecting my life style

.760** .857

PO2. I continue to use BSNL services because their services make me feel important

.593** .870

RQ1. I like to be a regular customer of BSNL and use BSNL services continuously

.764** .785

RQ2. BSNL is reliable and upgrades the tariff and service regularly to be competitive and encourages customers to avail new and innovative plans

.731** .815

RQ3. I am satisfied with quality of relationship maintained by BSNL

.730** .812

**Significant at 0.01 level.

The correlation of all the items is satisfactory except PS2. Hence

further analysis can be performed.

4.3 PERCEPTIONS ON MODEL VARIABLES

4.3.1 Perceived Value

Table 4A.8 and Table 4A.9 show the views on perceived value

of BSNL mobile services in respect of five dimensions: tariff,

network coverage, value added services, customer services and

131

brand image. From Table 4A.8 which presents the mean scores of

the five dimensions, it can be observed that the mean ranges from

3.11 to 3.24, the standard deviation range from 0.8 to 0.99. Of the

five dimensions, customer service possessed the lowest mean and

brand image the highest. In terms of variance, tariff has lowest

variability and network coverage has the highest. Perceived value is

the indicator of value of service in the eyes of customer and is very

critical for customer satisfaction, trust, commitment and through

these parameters influences loyalty and customer relationship

quality. The sources of perceived value consists of factors on which

service provider has control to a large extent and knowing the

customer perception on these factors is very important to service

provider. Brand image and tariff have better rating compared to

others.

Table 4A.8: Perceived Value of Cellular Services (N=544)

S. No Dimension Mean SD

1 Tariff 3.24 0.82 2 Network coverage 3.14 0.99 3 Value added services 3.09 0.91 4 Customer Services 3.11 0.92 5 Brand image 3.32 0.95 Scale: 5-Strongly agree 4- Agree 3-Neutral 2-Disagree 1- Strongly disagree

Table 4A.9 shows that the perceptions are within the range

of 3.09 to 3.43 for all the items excepting one item– ‘Complaint

processing is fast at BSNL’. For this disagreement is indicated. The

132

mean score for the item is 2.98. This should be the most important

concern for BSNL for fostering good CRM. The mean scores for the

rest of the items are also not encouraging as they are more close to

neutral (3.0) than to agree (4.0).

Tariff - Tariff is in the range of 3.13 to 3.37 and with the overall

mean score of 3.24. Respondents mildly agreed that cell phone

gives performance for the money they pay (3.37), offers are better

(3.31), price charged is competitively fair (3.19), promotional offers

are worth the money (3.25), road shows provide benefits (3.13),

new schemes are attractively designed (3.23).

Network coverage – The ratings on all items were in the range of

3.13 to 3.17 indicating mild agreement. Respondents gave positive

but mild agreement to the aspects - Quality of network (3.13), Call

quality (3.13) and Coverage of service (3.17). The overall mean is

3.14.

Table 4A.9: Perceived Values of Cellular Services - Item Wise (N=544)

Dimension Statement Mean* SD

Tariff

The cell phone has good level of performance for the money I pay.

3.37 1.063

The offers of BSNL are relatively better than the offers announced by other service providers in the market.

3.31 1.013

The price of cell phone services is more than fair for the performance I receive.

3.19 1.057

Promotional offers from BSNL are worth the money

3.25 1.126

There is benefit from the offers given 3.13 .996

133

by BSNL in Road shows The new schemes / tariffs/ discounts / rebates offered by BSNL are attractive.

3.23 1.048

Overall rating of Tariff 3.24 0.82

Network coverage

The quality of the BSNL cellular network is always good.

3.13 1.16

The call quality of the BSNL network is always good

3.13 1.08

The coverage of the BSNL network is good.

3.17 1.11

Overall rating of Network coverage 3.14 0.99

Value added services

BSNL has variety of value-added services

3.12 1.10

BSNL provides convenience to the customers for the use of value- added services.

3.09 1.03

Value-added services of BSNL are up-to-date

3.09 1.01

Overall rating of Value Added Service 3.09 0.91

Customer service

The process of subscribing and changing the plan is convenient in BSNL.

3.25 1.18

BSNL provides a variety of customer support systems

3.15 0.95

Complaint processing is fast at BSNL.

2.98 1.12

Overall rating of Customer Service 3.11 0.92

Brand image

BSNL is successful 3.17 1.19

BSNL is reputed 3.35 1.00 BSNL has brand image 3.35 1.19 BSNL is socially responsible 3.43 1.12

Overall rating of Brand Image 3.32 0.95 Scale: 5-Strongly agree 4- Agree 3-Neutral 2-Disagree 1- Strongly disagree

Value added services –This dimension is rated relatively low

(3.09). The items in this category range from 3.09 to 3.12. Mild

agreement is observed for the items - BSNL has variety of value-

added services (3.09), they are update (3.12) and BSNL provides

134

convenience to the customers for using the value- added services

(3.09).

Customer service – Respondents partially agreed that the process

of subscribing and changing the plan is convenient in BSNL (3.25)

and BSNL provides a variety of customer support systems (3.15).

They indicated disagreement with the statement that complaint

processing is fast at BSNL (2.98). The overall rating on customer

service is 3.11.

Brand image – Ratings are comparatively better on this dimension

(3.32). Item wise ratings range from 3.17 to 3.43. Respondents

showed some agreement on the views that BSNL is successful

(3.17), reputed (3.35) and has brand image (3.35). The view that

BSNL is socially responsible has gained relatively higher

acceptance (3.43).

From the above findings, it can be said that the respondents are

expecting more from BSNL in respect of tariff, network coverage, value

added services and customer service. The consolation point seems to

be BSNL has good brand image among the respondents. This point

requires BSNL to take responsibility for consolidating and enhancing

it. However, in the absence of comparative ratings with other service

providers, the standing of BSNL cannot be known. This is an area of

more caution than comfort to BSNL for being competitive.

135

Influence of Demographics

Hypotheses - 1:

H1: There is no difference in the perception of the customers of BSNL

AP Telecom circle about perceived value due to gender, age,

occupation, type of service and period of usage

This hypothesis is subdivided into H1 to H5 to cover

components of perceived value namely: 1.Tariff, 2.Network

Coverage, 3.Value Added Services, 4.Customer Service, 5.Brand

Image across independent variables of a. Gender, b. Age, c.

Occupation, d. Type of service, e. Period of usage.

One way ANOVA test was conducted for each variable. The F

and p values are shown in the table along with reject or fail to

reject decision on hypotheses (refer appendix 5 for details of F

values).

Table 4A.10: Results of One Way ANOVA: Hypotheses 1a – 5e

Perceived Value Components (Dependent Variable)

Independent Variables

Gender Age Occupation

Type of service

Period of usage

A B c d e

Tariff

F

1

0.41 36.67 11.01 2.02 32.52

Sig 0.52 0.00 0.00 0.16 0.00

Test Result

H1 a : Failed to Reject

H1 b : Rejected

H1 c : Rejected

H1 d : Failed to Reject

H1 e : Rejected

Network Coverage

F

2

0.15 73.11 5.55 0.02 24.55

Sig 0.7 0.00 0.00 0.90 0.00

Test Result


H2 b : Rejected

H2 c : Rejected


H2 e : Rejected

Value Added Services

F

3

6.97 36.3 3.74 0.5 27.65

Sig 0.01 0.00 0.01 0.48 0.00

Test Result

H3 a : Rejected

H3 b : Rejected

H3 c : Rejected

H3 d : Failed

H3 e : Rejected

136

Perceived Value Components (Dependent Variable)



Type of service

Period of usage

A B c d e to Reject

Customer Service

F

4

1.45 27.79 2.75 6.75 17.71

Sig 0.23 0.00 0.04 0.01 0.00

Test Result


H4 b : Rejected

H4 c : Rejected


H4 e : Rejected

Brand Image

F

5

2.66 46.67 12.03 0.07 66.22

Sig 0.10 0.00 0.00 0.78 0.00

Test Result


H5 b : Rejected

H5 c : Rejected

H5 d : Rejected

H5 e : Rejected

Rejected : There is difference. Failed to reject : There is no difference. Significant at 0.05 levels

From Table 4A.10 it can be inferred that gender will make

difference in the perception on value added services. Age,

occupation, period of usage will make difference in perception on

the dimensions of tariff, network coverage; value added services

and customer service. Type of service prepaid or postpaid will

make difference in the perceptions on brand image.

Item wise analysis of the influence of gender, age,

occupation, type of service, period of usage on perceived value

components is given below:

Influence of Gender

The influence of gender on the perceptions of respondents in

respect of perceived value is analyzed in Table 4A.11

137

Perceptions of male are better than female on all items except on

fairness of price.

Females have slightly better perceptions than males on network

coverage and brand image. However, both male and female

positively agree on these items.

Table 4A.11: Perceived Value of Cellular Services – Across Gender (N=544)

Dimension Statement Male (N=406) Female(138) F

value Mean SD Mean SD

Tariff

The cell phone has good level of performance for the money I pay.

3.41 1.06 3.26 1.08 1.98


3.31 0.98 3.31 1.11 0.00


3.19 1.08 3.21 1.00 0.02


3.28 1.12 3.19 1.15 0.65

There is benefit from the offers given by BSNL in Road shows

3.16 0.99 3.05 1.00 1.26

The new schemes/tariffs/discounts/rebates offered by BSNL are attractive.

3.25 1.02 3.18 1.11 0.58

Network coverage


3.17 1.18 3.01 1.11 1.86


3.13 1.08 3.12 1.09 0.01

The coverage of the 3.16 1.14 3.20 1.06 0.13

138

Dimension Statement Male (N=406) Female(138) F

value Mean SD Mean SD

BSNL network is good.



3.21 1.12 2.89 1.02 9.12*


3.17 1.03 2.88 1.00 8.57*


3.12 1.01 2.99 1.00 1.97

Customer service


3.31 1.17 3.09 1.18 3.68*


3.18 0.96 3.08 0.93 1.24


3.00 1.09 2.93 1.17 0.39

BSNL Customer service is a great value to me.

3.10 1.15 3.01 1.21 1.22

Brand image

BSNL is successful 3.22 1.17 3.04 1.23 2.56 BSNL is reputed 3.44 0.98 3.14 1.01 9.85* BSNL has brand image 3.36 1.18 3.34 1.22 0.02 BSNL is socially responsible

3.46 1.09 3.35 1.17 1.06

Scale: 5-Strongly agree 4- Agree 3-Neutral 2-Disagree 1- Strongly disagree. *Significant at 0.05 level

Statistically significant differences in perceptions are found in four

items.

On two items, the statistically significant differences are in

degree of agreement. Both male and female positively agree on

these items. Male agree more than female. They are:

• The process of subscribing and changing the plan is

convenient in BSNL.

• BSNL is reputed.

139

On two items there is a difference in the zone of agreement.

Females are in the zone of disagreement whereas males are on the

side of agreement. These are:

• BSNL has variety of value-added services

• BSNL provides convenience to the customers for the use of

value- added services.

Influence of Age

Table 4A.12 portrays the views of respondents across age.

Significant differences are found in the perceptions between the

two age groups. The below 35 years age group has shown

disagreement on most of the items. In case of tariff, the items on

which slight disagreement is indicated by upto 35 years age group

of respondents are:

• The price of cell phone services is more than fair for the

performance I receive (2.93).

• Promotional offers from BSNL are worth the money (2.88).

• There is benefit from the offers given by BSNL in Road shows

(2.99).

In case of network coverage and value added services upto 35

years age group of respondents showed mild disagreement on all the

items. The mean values ranged between 2.78 to 2.99. In case of

customer service disagreement is shown in respect of two items-

• BSNL provides a variety of customer support systems(2.97)

140

• Complaint processing is fast at BSNL (2.72).

When it comes to brand image, disagreement is seen in respect of

one statement:

• BSNL is successful (2.80).

Table 4A.12: Perceived Value of Cellular Services –Across Age N=544) Dimension Statement Up to 35

Yrs (N=312) Above 35 Yrs(N=232)

F value

Mean SD Mean SD

Tariff The cell phone has good level of performance for the money I pay.

3.06 1.12 3.75 0.83 62.88*


3.11 1.00 3.58 0.96 30.78*


2.93 1.05 3.53 0.96 46.88*


2.88 1.15 3.74 0.88 91.99*


2.99 1.00 3.31 0.96 14.14*

The new schemes / tariffs/ discounts / rebates offered by BSNL are attractive.

3.00 1.05 3.53 0.95 36.36*

Network coverage


2.91 1.17 3.40 1.09 25.47*

The call quality of the BSNL network is

2.99 1.09 3.32 1.04 12.70*

141

Dimension Statement Up to 35 Yrs (N=312)

Above 35 Yrs(N=232)

F value

Mean SD Mean SD

always good The coverage of the BSNL network is good.

2.97 1.14 3.44 1.02 23.75*



2.78 1.08 3.56 0.97 75.99*

BSNL provides convenience to the customers for the use of value-added services.

2.80 1.03 3.46 0.91 61.93*


2.91 1.02 3.32 0.95 22.55*

Customer service


3.00 1.18 3.57 1.10 33.51*


2.97 0.96 3.39 0.88 28.53*


2.72 1.06 3.32 1.09 42.41*

Brand image BSNL is successful 2.80 1.20 3.66 0.98 81.02* BSNL is reputed 3.07 0.95 3.72 0.94 61.89* BSNL has brand image

3.06 1.24 3.73 1.00 45.44*

BSNL is socially responsible

3.18 1.13 3.76 1.01 38.29*

Scale: 5-Strongly agree 4- Agree 3-Neutral 2-Disagree 1- Strongly disagree. *Significant at 0.05 level Influence of Occupation

Analysis across occupation that examined differences in

perception of students and income earning groups presented in Table

4A.13. Statistically significant differences are found in case of Tariff

and Brand image.

142

Table 4A.13: Perceived Value of Cellular Services–Across Occupation (N=544)

Dimension Statement Employed (N=476)

Students (N=68)

F value

Mean SD Mean SD


3.39 1.04 3.21 1.19 1.76


3.39 0.96 2.81 1.18 21.58*


3.23 1.04 2.94 1.13 4.32*


3.30 1.11 2.95 1.17 6.42*


3.17 0.99 2.89 1.01 5.03*


3.29 1.01 2.89 1.21 9.13*

Network coverage


3.11 1.16 3.22 1.19 0.58


3.13 1.06 3.14 1.19 0.00


3.18 1.07 3.13 1.35 0.15



3.15 1.07 2.94 1.27 2.15


3.12 1.00 2.86 1.23 4.07*


3.08 0.95 3.14 1.33 0.21

Customer The process of 3.27 1.15 3.11 1.36 1.20

143

Dimension Statement Employed (N=476)

Students (N=68)

F value

Mean SD Mean SD

service subscribing and changing the plan is convenient in BSNL. BSNL provides a variety of customer support systems

3.17 0.94 3.06 0.99 0.85


2.98 1.12 3.00 1.09 0.02

Brand image

BSNL is successful 3.22 1.17 2.89 1.27 4.81* BSNL is reputed 3.41 0.99 3.00 0.99 10.22* BSNL has brand image 3.36 1.13 3.29 1.50 0.23 BSNL is socially responsible

3.45 1.10 3.32 1.22 0.79


Tariff – Statistically significant differences are found between the

groups on five of the six statements. Students expressed slight

disagreement whereas employed (includes self-employed and business

men) showed slight agreement. Students have agreed that cell phone

has good level of performance for the money they pay (3.39). They

showed disagreement on offers (2.81), prices (2.94), promotional offers

(2.95) and benefits from offers (2.89) and new schemes (2.89).

Brand Image – They showed slight disagreement with the views:

BSNL is successful (2.89) and took neutral stand on the view – BSNL

is reputed (3.00).

Influence of Type of Service

Differences in the views of respondents belonging to

categories of prepaid and post-paid are statistically significant in

144

respect of two items under Tariff and two items under Customer

services. In remaining cases agreement is positive without

significant differences. Table 4A.14 shows details.

Table 4A.14: Perceived Value of Cellular Services – Across Type of Service (N=544)

Dimension Statement Prepaid (N=400)

Postpaid (N=144)

F value

Mean SD Mean SD


3.35 1.09 3.38 0.99 0.11


3.34 1.05 3.17 0.86 2.98


3.19 1.03 3.17 1.13 0.02


3.33 1.11 2.99 1.11 10.36*


3.15 1.00 3.08 0.98 0.47

The new schemes/tariffs/ discounts/rebates offered by BSNL are attractive.

3.28 1.08 3.03 0.90 6.26*

Network coverage


3.15 1.17 3.01 1.10 1.57


3.14 1.05 3.08 1.15 0.31


3.15 1.15 3.22 0.99 0.46



3.15 1.08 3.00 1.13 2.00

BSNL provides convenience to the

3.08 1.04 3.10 1.01 0.02

145

Dimension Statement Prepaid (N=400)

Postpaid (N=144)

F value

Mean SD Mean SD

customers for the use of value- added services. Value-added services of BSNL are up-to-date

3.11 1.04 3.01 0.93 1.04

Customer service


3.32 1.16 3.00 1.17 8.23*


3.21 0.93 2.96 0.95 7.49*


3.04 1.12 2.85 1.09 2.97

Brand image

BSNL is successful 3.20 1.20 3.05 1.13 1.66 BSNL is reputed 3.36 0.98 3.30 1.03 0.40 BSNL has brand image 3.35 1.19 3.32 1.20 0.03 BSNL is socially responsible

3.41 1.13 3.42 1.04 0.00


Tariff- Post-paid subscribers took neutral stand on the views -

Promotional offers from BSNL are worth the money (2.99) and the new

schemes/tariffs/discounts/rebates offered by BSNL are

attractive(3.03).

Customer Services – Post-paid subscribers agree less than prepaid

subscribers on all dimensions. The difference is statistically

significant on: ‘BSNL provides a variety of customer support systems

(2.96)’ and ‘Complaint processing is fast at BSNL (2.85)’. ‘The process

of subscribing and changing the plan is convenient at BSNL (3).

Postpaid have relatively less positive perception of the services than

pre-paid in respect of all the dimensions.

146

Influence of Period of Usage

Two categories of customers – new comers (period of usage is

less than one year) and seasoned ones (usage experience of more than

one year) are examined for their perceptions on BSNL cellular services

in Table 4A.15. Statistically significant differences are found between

the two categories of respondents. The new comers have expressed

disagreement on most of the items whereas the seasoned ones

expressed agreement. Neutral or positive stand is taken by the new

comers on the following views:

• The offers of BSNL are relatively better than the offers

announced by other service providers in the market(3.10)

• There is benefit from the offers given by BSNL in Road

shows(3.00)

• BSNL provides a variety of customer support systems(3.06)

• BSNL is reputed (3.08)

• BSNL is socially responsible(3.04)

Table 4A.15: Perceived Value of Cellular Services – across Period of Usage (N=544) Dimension Statement Up to 1 yr

(N=232) Over 1 yr (N=312)

F value

Mean SD Mean SD


2.98 1.12 3.66 0.92 58.84*


3.10 1.05 3.47 0.96 17.43*

147

Dimension Statement Up to 1 yr (N=232)

Over 1 yr (N=312)

F value

Mean SD Mean SD


2.97 1.06 3.37 1.02 19.83*


2.82 1.25 3.57 0.91 67.12*


3.00 1.06 3.23 0.93 7.23*


2.88 1.06 3.49 0.96 49.29*

Network coverage


2.85 1.19 3.33 1.10 23.24*


2.97 1.09 3.25 1.06 8.59*


2.83 1.08 3.42 1.08 39.51*



2.82 1.16 3.35 0.99 32.77*


2.85 1.13 3.26 0.92 21.88*


2.88 1.05 3.24 0.95 17.40*

Customer service


2.93 1.23 3.49 1.08 31.46*


3.06 0.98 3.23 0.92 4.06*


2.74 1.07 3.16 1.12 19.65*

Brand image

BSNL is successful 2.66 1.25 3.56 0.97 90.13* BSNL is reputed 3.08 0.99 3.56 0.95 32.95* BSNL has brand image 2.82 1.17 3.75 1.04 95.41*

148


Over 1 yr (N=312)

F value

Mean SD Mean SD

BSNL is socially responsible

3.04 1.14 3.72 1.00 54.08*


4.3.2 Customer Satisfaction

Given the perceptions on value of BSNL services, what is the

level of customer satisfaction? Table 4A.16 shows the opinions on

satisfaction. Slight agreement is found in respect of three

statements.

BSNL cellular services met my expectations (3.17), I am satisfied with

the BSNL cellular service (3.17) and BSNL services are successful in

creating good image in the minds of its customers (3.11) .

Table 4A.16: Customer Satisfaction (N=544)

Statement Mean SD

I am satisfied with the BSNL cellular service. 3.17 1.17 The BSNL cellular services met my expectations.

3.17 1.02

The BSNL services are successful in creating good image in the minds of its customers.

3.11 1.01

Scale: 5-Strongly agree 4- Agree 3-Neutral 2-Disagree 1- Strongly disagree


The influence of demographics and affiliation factors on

customer satisfaction is examined to get better insight.

149

Hypothesis- 6

There is no difference in the perception of the customers of BSNL AP

Telecom circle on customer satisfaction due to gender, age,

occupation, type of service and period of usage

The hypothesis is divided into 5 sub hypotheses to cover

gender, age, occupation, type of service and period of use (6a-6e)

One way ANOVA test was conducted. The F and p values are

shown in the table along with reject or fail to reject decision of

hypothesis.

Table 4A.17: Results of One Way ANOVA: Hypotheses 6a-6e

Dependent Variable


Gender Age Occupation Type of service

Period of usage

a B c d e

Customer satisfaction

F

6

0.63 30.01 10.14 2.77 57.8

Sig 0.43 0.00 0.00 0.1 0.00

Test Result


H6 b : Rejected

H6 c : Rejected


H6 e : Rejected

Rejected: There is difference. Failed to Reject: There is no difference. Significant at 0.05 level

F and sig values indicate that age, occupation, period of

usage make difference in the perception of customer about

customer satisfaction.

Analysis of the influence of gender, age, occupation, type of

service, period of usage on customer satisfaction is given below:

From Tables 4A.18, 19 and 20, it can be said that gender and type of

service have no significant influence on the perceptions of satisfaction

150

among respondents. Table 4A.18 shows that male and female agree

that BSNL services met their expectations and they are satisfied.

Females agree less on BSNL creating good image.

Age has significant influence as depicted in Table 4A.19. The

respondents belonging to up to 35 years age group are neutral to the

view that BSNL has met their expectations and disagreed with the

statements ‘I am satisfied with the BSNL cellular service (2.83)’ and

‘BSNL is successful in creating image (2.89)’. Similarly, length of

usage has shown in differences. The new comers (less than one year

usage experience) have negative views on satisfaction. They are not

satisfied with the services as services could not meet their

expectations and failed to create brand image. The mean scores

ranged between 2.63 to 2.80.

Table 4A.18: Customer Satisfaction across Gender (N=544)

Statement Male (N=406) Female (N=138) F value Mean SD Mean SD

I am satisfied with the BSNL cellular service.

3.16 1.17 3.19 1.16 0.06

The BSNL cellular services met my expectations.

3.18 1.05 3.17 0.91 0.13


3.16 1.02 2.97 0.99 3.53


151

Table 4A.19: Customer Satisfaction across Age (N=544)

Statement Upto 35 Yrs (N=312)

Above 35 Yrs (N=232)

F value

Mean SD Mean SD


2.83 1.17 3.62 1.01 67.05*


3.00 1.02 3.41 0.97 21.83*


2.89 1.04 3.39 0.90 34.55*


Table 4A.20: Customer satisfaction across Occupation (N=544)

Statement Employed (N=476)

Students (N=68)

F value

Mean SD Mean SD


3.19 1.16 3.03 1.20 1.28


3.18 0.99 3.17 1.15 0.01


3.17 0.98 2.71 1.13 13.77*


Table 4A.21: Customer Satisfaction across Type of Service (N=544) Statement Prepaid

(N=400) Post paid (N=144)

F value

Mean SD Mean SD


3.22 1.22 3.00 0.98 3.65


3.21 1.04 3.06 0.94 2.33


3.14 1.03 2.97 0.95 3.01

152

Table 4A.22: Customer Satisfaction across Period of Usage (N=544) Statement Up to 1 yr

(N=312) Over 1 yr (N=232) F value

Mean SD Mean SD


2.63 1.18 3.57 0.98 102.87*


2.84 1.03 3.43 0.93 49.43*


2.80 0.99 3.33 0.98 38.95*


4.3.3 Complaint Behavior

Respondent customers have accorded neutral to positive views

on perceived value and customer satisfaction. They expressed that

they have no problems. As shown in Table 4A.23, the respondents

disagreed with statement – ‘I have problems with the service offered

by BSNL (2.82)’.

Do they complain if they have a problem? It seems no. They

took negative stand on the statement – ‘I have several times voiced my

complaints with BSNL (2.67)’ and ‘neutral stand on the statements

that indicated interest in complaining to other customers (3.01)’ and

‘consumer forum (2.95)’.

Do they switch to competitor services? The answer seems to

be negative. The mean score of the statement – ‘I switch to a

competitor if I experience a problem with BSNL is 2.93’.

153

Table 4A.23: Complaint Behavior (N= 544)

Statement Mean SD

I have problems with the service offered by BSNL 2.82 1.11 I have several times voiced my complaints with BSNL 2.67 1.12 I complain to other consumers if I experience a problem with BSNL.

3.01 1.04

I complain to consumer forum if I experience a problem with BSNL.

2.95 1.10

I switch to a competitor if I experience a problem with BSNL.

2.93 1.19



Table 4A.24 shows that influence of gender on perceptions is

cognizable. However, differences are in the degree of disagreement

with the statements in two cases. In case of switch interest, males

took neutral stand (3.01) whereas females indicated slight

disagreement (2.73). Hence, it can be said that males are relatively

more inclined to switch if they experience problem.

Table 4A.24: Complaint Behavior across Gender(N= 544) Statement Male (N=406) Female(N=138)F value

Mean SD Mean SD

I have problems with the service offered by BSNL

2.91 1.13 2.59 1.00 8.46*

I have several times voiced my complaints with BSNL

2.76 1.13 2.45 1.06 8.48*

I complain to other consumers if I experience a problem with BSNL.

3.01 1.06 3.01 0.97 0.00


2.98 1.05 2.86 1.22 1.17


3.01 1.19 2.73 1.19 5.80*


154

Age-wise analysis in Table 4A.25 shows significant differences.

The respondents of above 35 years age group are positively inclined to

voice complaints to consumers (3.23) and consumer forum (3.24) and

switch to competitors (3.33).

Table 4A.25: Complaint Behavior across Age (N=544)

Statement Up to 35 yrs (N=312)

Above 35 yrs (N=232)

F value

Mean SD Mean SD


2.77 1.05 2.88 1.18 1.34


2.49 1.10 2.91 1.09 19.51*


2.84 0.98 3.23 1.07 18.82*


2.72 1.07 3.24 1.06 31.08*


2.62 1.17 3.33 1.10 51.12*


Table 4A.26 shows that students are more positively disposed to

BSNL services. Employed have expressed that they will complain to

consumers (3.06) and consumer forum (3.01) and switch to

competitor’s services (3.01).

155

Table 4A.26: Complaint Behavior across Occupation (N=544)


Student (N=68)

F value

Mean SD Mean SD


2.82 1.08 2.82 1.28 0.00


2.71 1.09 2.44 1.27 3.46


3.06 1.05 2.72 0.94 6.48*


3.01 1.08 2.54 1.11 11.20*


3.01 1.18 2.43 1.18 15.31*


Differences in opinions between prepaid and post-paid

customers on problems and complaints are portrayed in Table 4A.27.

Significant differences are found in case of two statements but they

represent differences in degree of disagreement. Both prepaid and

postpaid customers agreed less on complaining to company, others

and customer forums.

Table 4A.27: Complaint Behavior across Type of Service (N=544)

Statement Prepaid (N=400)

Postpaid (N=144)

F value

Mean SD Mean SD


2.94 1.10 2.55 1.09 12.89*


2.77 1.15 2.39 0.94 12.74*


3.00 1.04 2.97 1.00 0.07

156

Statement Prepaid (N=400)

Postpaid (N=144)

F value

Mean SD Mean SD


2.95 1.09 2.88 1.09 0.52


2.95 1.19 2.82 1.19 1.22


From Table 4A.28, it can be said that respondents having more

than 1 year usage experience are unfavorable to BSNL. They

expressed intentions to complain to other consumers (3.11) and

consumer forum (3.19) and switch to competitor services (3.16).

Differences in agreement are statistically significant in four out of five

items.

Table 4A. 28: Complaint Behavior across Period of Usage (N=544)

Statement Up to 1 yr (N=312)

Over 1 yr (N=232) F value

Mean SD Mean SD I have problems with the service offered by BSNL

2.89 1.05 2.77 1.14 1.60


2.53 1.15 2.78 1.08 7.06*


2.88 0.93 3.11 1.11 6.58*


2.62 1.05 3.19 1.07 37.25*


2.62 1.17 3.16 1.16 28.58*


157

4.3.4 Complaint Handling

Service organizations do well when they are responsive and

efficient in dealing with consumer complaints. In views of this, inquiry

is made with regard to the complaint handling of BSNL. One of the

results pertaining to perceived value relates to complaint processing.

Respondents slightly disagreed with the view - Complaint processing

is fast at BSNL (2.98). However males (3.00), above 35year

respondents (3.32), students (3.00), new customers (3.04) and more

than 1 year users (3.16) have indicated somewhat positive view on

this. Table 4A.29 shows additional results. Respondents mildly agreed

that BSNL is responsive (3.08) but disagreed with the view – ‘it is

efficient in dealing with complaints (2.98)’. The view that ‘BSNL is

responsive and complaint processing is fast’ is agreeable to some

extent.

Table 4A.29: Complaint Handling (N=544)

Statement Mean SD

In my view, the company is efficient in dealing with complaints.

2.91 1.07

I am sure the company is responsive to customer complaints.

3.08 1.01


158


Hypothesis- 7


Telecom circle on complaint handling of BSNL, due to gender, age,

occupation, type of service and period of usage.


gender, age, occupation, type of service and period of use (7a-7e)



hypothesis.

The results of examination of the influence of variables are

summarized below.

Table 4A.30: Results of One Way ANOVA: Hypotheses 7a – 7e

Dependent Variable



Type of service

Period of usage

a B c d e

Complaint handling

F

7

0.11 22.62 2.36 1.86 11.16

Sig 0.74 0.00 0.07 0.17 0.00

Test Result


H7 b : Rejected

H7 c : Failed to Reject


H7 e : Rejected

Rejected: There is difference. Failed to reject: There is no difference. Significant at 0.05 level

F and sig values indicate that age and period of usage make

difference in the perception of customer on complaint handling,

Item wise analysis of the influence of gender, age, occupation, type

of service, period of usage on complaint handling is given below.

159

Analysis across gender, in Table 4A.31 shows that male and female

respondents have similar views. The differences in their views are not

statistically significant. According to the table 4A.11, Males are

neutral to the view that complaint processing is fast at BSNL (3.00).

Table 4A.31: Complaint Handling across Gender (N=544)


In my view, the company is efficient in dealing with complaints

2.93 1.11 2.88 0.96 0.23

I am sure, the company is responsive to customer complaints

3.08 1.07 3.08 0.84 0.00


Table 4A.32 presents the views of respondents of two different

age groups. Those with above 35 years of age viewed complaint

handling by BSNL positively. BSNL is efficient (3.24) and responsive

(3.31). Already in Table 4A.12, it is found that they viewed “complaint

handling by BSNL faster (3.32)”. Therefore it can be concluded that

respondents above 35 years age group are favorable and below 35

years age group are unfavorable.

Table 4A.32: Complaint Handling across Age (N=544)



F value

Mean SD Mean SD


2.67 0.99 3.24 1.10 40.66*

I am sure, the company is responsive to customer

2.90 0.97 3.31 1.02 22.93*

160



F value

Mean SD Mean SD

complaints Scale: 5-Strongly agree 4- Agree 3-Neutral 2-Disagree 1- Strongly disagree *Significant at 0.05 level

Differences in views of employed and students on complaint

handling are not statistically significant as shown in Table 4A.33.

Both the groups, employed and students, view BSNL as responsive to

complaints. Mean scores are 3.05 and 3.29 respectively. But students

are neutral to the view as shown in Table 4A.13 - complaint

processing is fast at BSNL (3.00)

Table 4A.33: Complaint Handling across Occupation (N=544)


Student (N=68)

F value

Mean SD Mean SD


2.95 1.08 2.69 0.97 3.51


3.05 1.04 3.29 0.82 3.29


Differences in prepaid and post-paid customers are statistically

significant in case of efficiency. However, both the groups have

negative view in this regard. They are positive to the view that it is

responsive to the complaints. From Table 4A.14, it can be recalled

that prepaid customer are neutral to the view complaint processing

fast (3.04), whereas the other group postpaid is negative (2.85).

161

Table 4A.34: Complaint Handling -Type of Service (N=544) Statement Prepaid (N=400) Postpaid(N=144) F value

Mean SD Mean SD


2.95 1.10 2.75 0.94 3.87*


3.09 1.02 3.01 0.98 0.65

Scale: 5-Strongly agree 4- Agree 3-Neutral 2-Disagree 1- Strongly disagree *Significant 0.05 level;

Table 4A.35: Complaint Handling -Period of Usage (N=544) Statement Up to 1 yr


Mean SD Mean SD


2.70 0.96 3.08 1.12 17.22*


2.90 0.97 3.22 1.03 13.82*

4.3.5 Trust

Do the respondent customers have trust in BSNL services?

Results in Table 4A.36 indicate yes. The respondents have

indicated mild agreement with the views - BSNL is reliable (3.24),

cares about customers (3.33), honest (3.33) and provides

predictable services (3. 26).

Table 4A.36: Trust in BSNL (N=544) Statement Mean SD

I know the company is reliable, not opportunistic in providing services.

3.24 1.22

I know the company cares about customers. 3.33 0.97 In my view, the company is honest in all its dealings with customers.

3.33 0.11

I am sure, the company services are predictable. 3.26 1.02 Scale: 5-Strongly agree 4- Agree 3-Neutral 2-Disagree 1- Strongly disagree *Significant 0.05 level;

162

Hypothesis- 8


Telecom circle on trust, due to gender, age, occupation, type of

service and period of usage.


gender, age, occupation, type of service and period of use (8a-8e).


shown in the Table 4A.35 along with reject or fail to reject decision

of hypothesis.

Age, occupation and period of use will make difference to the

perceptions of customers on trust.

Table 4A.37: Results of One Way ANOVA: Hypotheses- 8a-8e

Dependent Variable



Type of service

Period of usage

a B c d e

Trust

F

8

0.13 27.04 3.75 0.00 56.20

Sig 0.72 0.00 0.01 0.99 0.00

Test Result


H8 b : Rejected

H8 c : Rejected


H8 e : Rejected

Rejected: There is difference . Failed to reject: There is no difference. Significant at 0.05 level

Age, occupation and period of use will make difference to the

perceptions of customers on trust.


occupation, type of service, period of usage on trust is given below:

Analysis across gender indicates that the views of male and

female respondents are similar. Table 4A.38 shows that the

163

differences in views are not statistically significant. Both the groups

have positive trust views.

Table 4A.38: Trust in BSNL across Gender (N=544)



3.29 1.21 3.24 1.26 2.69

I know the company cares about customers.

3.32 0.99 3.35 0.94 0.12

In my view, the company is honest in all its dealings with customers.

3.35 1.09 3.27 1.15 0.61

I am sure, the company services are predictable.

3.26 1.03 3.26 0.98 0.00


Statistically significant differences in the views of up to 35

years and above 35 years age group are identified in Table 4A.39.

However, only on one statement, the younger age group has shown

negative view. They expressed disagreement with the view - that

the company is reliable, not opportunistic in providing

services(2.82).

Table 4A.39: Trust in BSNL across Age (N=544) Statement Up to 35 yrs

(N=312) Above 35 yrs (N=232)

F value

Mean SD Mean SD


2.82 1.23 3.76 0.96 91.44*


3.13 0.94 3.58 0.96 29.44*


3.05 1.09 3.68 1.02 47.32*

164



F value

Mean SD Mean SD


3.07 1.00 3.50 0.99 25.30*


Table 4A.40 and 4A.41 showed that employed and students;

prepaid and post-paid have positive perception on all items.

Table 4A.40: Trust in BSNL across Occupation (N=544 ) Statement Employed

(N=476) Student (N=68)

F value

Mean SD Mean SD


3.25 1.22 3.11 1.27 0.78


3.31 0.98 3.42 0.96 0.70


3.35 1.09 3.20 1.20 1.12


3.26 1.02 3.28 0.97 0.02


Table 4A.41: Trust in BSNL across Type of Service (N=544) Statement Prepaid

(N=400) Postpaid (N=144)

F value

Mean SD Mean SD


3.23 1.21 3.20 1.26 0.06


3.34 1.02 3.27 0.85 0.53


3.34 1.11 3.28 1.11 0.26


3.24 1.02 3.27 0.99 0.09


Analysis across length of usage in Table 4A.42 has shown that

the new customers (usage below 1 year) have views unfavorable to

the BSNL services whereas the other group has held relatively

165

positive views of trust. The new customers showed disagreement

with the following statements-

• I know the company is reliable, not opportunistic in

providing services (2.66).

• In my view, the company is honest in all its dealings with

customers (2.89).

• I am sure, the company services are predictable (2.89).

Table 4A.42: Trust in BSNL across Period of Usage (N=544) Statement Up to 1 yr


Mean SD Mean SD


2.66 1.21 3.66 1.05 105.03*


3.02 0.94 3.56 0.94 44.17*


2.89 1.06 3.66 1.02 73.52*


2.89 0.98 3.54 0.95 60.48*


4.3.6 Commitment

Commitment of customers to BSNL services is evaluated in

respect of three aspects- affective, calculative and normative and

presented in Table 4A.43.

166

Table 4A.43: Commitment to BSNL (N=544)

Dimension Statement Mean SD

Affective I do feel a strong sense of belonging to BSNL services.

3.19 1.21

I feel happy to stay with BSNL services. 3.36 1.11 I don’t think I would easily become a customer of another cellular services provider.

3.07 1.15

BSNL has a great deal of value for me. 3.15 0.99 Calculative It would be too costly to me to change

BSNL services, therefore I stay. 2.79 1.09

One of the major reasons I continue to use BSNL is that leaving would require considerable personal inconvenience. I switch if number portability is available

2.91 0.95

Right now staying with BSNL is a matter of necessity and desire.

2.91 1.00

Too much in my life would be disturbed if I decided to leave BSNL now.

2.93 0.98

Normative I do believe that one must always be loyal to BSNL.

2.91 1.06

I think that people these days move from one service to another service too often.

3.48 1.04

Jumping from one service to another service seems unethical to me.

2.98 1.14

I was taught to believe in the value of remaining loyal to BSNL.

3.07 1.09

I would not leave BSNL now, because I have a sense obligation to it.

3.24 0.96

If I get another offer I would not feel right to leave BSNL.

3.05 1.08


Affective commitment is weak but positive. The respondents

indicated moderate agreement with the following views: feel sense

of belonging (3.19), fell happy to stay with (3.36), don’t easily go

other competitor (3.07) and BSNL has great value for customer

(3.15).

167

Calculative commitment is indicated by disagreement with

statements that indicate barriers to switch. Table 4A.43 has shown

disagreement of customers with the following statements that

indicate barriers like cost (2.79), personal inconvenience (2.91), too

much disturbance to life (2.93) and staying with BSNL is a matter

of necessity and desire (2.91).

In respect of normative commitment, it is found that respondent

customers believe in switch as their right. They disagreed with the

statements-

• I do believe that one must always be loyal to BSNL(2.91)

• Jumping from one service to another service seems unethical

to me (2.98).

However, some contradiction is seen in their expression. They

agreed with the statements – ‘I was taught to believe in the value of

remaining loyal to BSNL (3.07)’ and ‘I would not leave BSNL now,

because I have a sense obligation to it (3.24)’. The ambivalence

might be by the observation of the behavior of other customers.

They agreed with the view – ‘I think that people these days move

from one service to another service too often (3.48)’.

168

Influence of demographics

Hypothesis - 9


Telecom circle on commitment, due to gender, age, occupation, type

of service and period of usage

The hypothesis is divided into 5 sub hypotheses to cover gender,

age, occupation, type of service and period of use (9a-9e).



hypothesis.

Table 4A.44: Results of one way ANOVA: Hypotheses- 9a-9e

Dependent Variable



Type of service

Period of usage

a B c d e

Commitment

F

9

1.24 30.87 9.35 0.19 35.66

Sig 0.27 0.00 0.00 0.66 0.00

Test Result


H9 b : Rejected

H9 c : Rejected


H9 e : Rejected

Rejected : There is difference . Failed to reject: There is no difference . Significant at 0.05 level

F and sig values indicate that age, occupation and period of

usage will make difference in the perception of customers on

commitment

Item wise analysis of the influence of gender, age, occupation, type

of service, period of usage on complaint handling is given below:

Table 4A.45 shows the analysis across gender. The

differences in views on commitment are not statistically significant.

As such, it can be said gender has no influence on the

169

commitment of respondents. Affective commitment is positive and

calculative commitment is negative for both the genders. Females

have more positive view than male.

Table 4A.45: Commitment to BSNL across Gender (N=544)

Dimension Statement Male (N=406)

Female (N=138)

F value

Mean SD Mean SD Affective I do feel a strong sense

of belonging to BSNL services.

3.22 1.20 3.09 1.23 1.15

I feel happy to stay with BSNL services.

3.39 1.09 3.36 1.16 0.73

I don’t think I would easily become a customer of another cellular services provider.

3.10 1.08 3.00 0.96 0.90

BSNL has a great deal of value for me.

3.17 1.07 3.10 0.94 0.58

Calculative It would be too costly to me to change BSNL services, therefore I stay.

2.87 1.82 2.57 0.99 8.41*


2.93 0.94 2.85 0.99 0.82


3.01 1.00 2.89 1.00 1.39


2.97 1.03 2.84 0.86 1.94

Normative I do believe that one must always be loyal to BSNL.

2.99 1.06 2.92 1.07 0.55

170

Dimension Statement Male (N=406)

Female (N=138)

F value

Mean SD Mean SD I think that people these days move from one service to another service too often.

3.50 1.04 3.41 1.06 0.82


2.97 1.15 3.00 1.13 0.08


3.12 1.10 2.95 1.05 2.85


2.25 0.97 3.19 0.91 0.47


3.04 1.10 3.07 1.03 0.07


Age

Age wise analysis is portrayed in Table 4A.44. Statistically

significant differences in commitment views are observed between

the two groups - the younger (below 35 years) and the elder (35

years and above). The younger group is less committed than the

elder group. In case of affective commitment, they disagree with ‘I

do feel a strong sense of belonging to BSNL services’ (2.78) and

‘BSNL has a great deal of value for me’ (2.96). This indicates that

they have less affective commitment.

However, they agree with the statement – ‘I feel happy to stay

with BSNL services’ and disagree with the statement ‘I don’t think I

171

would easily become a customer of another cellular services provider’.

This is indicative of their lack of interest in switching. As such

affectively, they have less commitment but also less interest in

switching.

In case of calculative commitment, they have shown

disagreement indicating that cost and inconvenience, disturbance is

less deterrents to their preference to switch.

In case of normative, they disagreed with staying logic and values and

disagreed with the statement ‘I do believe that one must always be

loyal to BSNL (2.72)’ but gave comfort to BSNL by agreeing with the

statement – ‘I would not leave BSNL now, because I have a sense

obligation to it (3.10)’. From the above analysis it is clear that the

younger respondents do not entertain commitment feelings or logic

and also are aware that many are switching. They are not ready to

switch without having their own reason.

Table 4A.46: Commitment to BSNL across Age (N=544)

Dimension Statement

Up to 35 yrs (N=312)


F value

Mean SD Mean SD

Affective

I do feel a strong sense of belonging to BSNL services.

2.78 1.22 3.70 0.98 90.00*


3.13 1.09 3.67 1.07 33.42*

I don’t think I would easily become a customer

2.82 0.98 3.39 1.05 43.45*

172

Dimension Statement



F value

Mean SD Mean SD

of another cellular services provider. BSNL has a great deal of value for me.

2.96 0.96 3.39 0.98 26.21*

Calculative

It would be too costly to me to change BSNL services, therefore I stay.

2.47 1.03 3.19 1.04 65.18*


2.79 0.96 3.08 0.91 12.72*


2.85 0.94 3.14 1.04 11.17*


2.84 0.92 3.05 1.05 6.00*

Normative

I do believe that one must always be loyal to BSNL.

2.72 1.07 3.30 0.95 43.50*


3.26 1.01 3.75 1.02 31.08*

Jumping from one service to another

2.86 1.07 3.14 1.21 8.15*

173

Dimension Statement



F value

Mean SD Mean SD

service seems unethical to me. I was taught to believe in the value of remaining loyal to BSNL.

2.84 1.10 3.38 1.10 33.72*


3.10 0.91 3.41 0.98 14.31*


2.91 1.06 3.23 1.08 12.05*


Table 4A.47 presents analysis of perception due to occupation

on commitment. Statistically significant differences are reported in

case of four statements. Three of them are in terms of degree of

disagreement. One of them shows difference in zone of perception.

The statement – ‘I was taught to believe in the value of remaining loyal

to BSNL is not accepted by students (2.74) and accepted by

employed(3.12).’ This indicates change in the attitude of generation Y.

174

Table 4A.47: Commitment to BSNL across Occupation (N=544)

Dimension Statement

Employed (N=476)

Student (N=68)

F value

Mean SD Mean SD

Affective


3.21 1.18 3.03 1.37 1.41


3.41 1.07 3.11 1.32 4.83


3.07 1.04 3.09 1.14 0.02


3.13 1.00 3.25 0.93 0.86

Calculative


2.84 1.09 2.49 1.09 6.61*


2.93 0.92 2.79 1.14 1.46


3.00 1.00 2.83 0.99 1.66


2.97 0.97 2.69 1.03 4.95*

Normative


3.00 1.06 2.78 1.05 2.77


3.47 1.05 3.54 1.00 0.31


2.98 1.13 2.97 1.24 0.00

175

Dimension Statement

Employed (N=476)

Student (N=68)

F value

Mean SD Mean SD


3.12 1.07 2.74 1.19 7.55*


3.24 0.95 3.23 1.00 0.00


3.09 1.05 2.75 1.22 6.39*


According to Table 4A.48, commitment is examined across type

of service. Statistically significant differences are found only in one

aspect. Postpaid disagreed (2.85) while prepaid (3.16) agreed with the

statement – ‘I was taught to believe in the value of remaining loyal to

BSNL’.

Table 4A.48: Commitment to BSNL across Type of Service (N=544)

Dimension Statement

Prepaid (N=400)

Postpaid (N=144)

F value

Mean SD Mean SD

Affective


3.18 1.21 3.15 1.19 0.08


3.37 1.13 3.31 1.07 0.35


3.09 1.03 3.01 1.10 0.60


3.17 0.99 3.04 0.97 1.86

Calculative It would be too costly to me to change BSNL

2.80 1.12 2.70 0.98 0.90

176

Dimension Statement

Prepaid (N=400)

Postpaid (N=144)

F value

Mean SD Mean SD

services, therefore I stay. One of the major reasons I continue to use BSNL is that leaving would require considerable personal inconvenience. I switch if number portability is available

2.88 0.98 2.96 0.85 0.69


2.97 0.95 2.96 1.11 0.01


2.93 0.95 2.91 1.02 0.06

Normative


3.01 1.05 2.84 1.08 2.91


3.46 1.04 3.51 1.04 0.23


2.99 1.11 2.92 1.18 0.43


3.16 1.05 2.85 1.13 8.90*


3.27 0.95 3.10 0.96 3.65


3.08 1.10 2.94 1.02 1.60


177

The differences in commitment between the new customers (less

than one year usage) and more experienced customers (more than one

year usage) are shown in Table 4A.49. According to it, significant

differences are seen between them. The experienced group is more

committed than the new customer group. The mean scores are higher

for all statements

Table 4A.49: Commitment to BSNL across Period of Usage (N=544)



Mean SD Mean SD

Affective


2.59 1.17 3.63 1.04 118.01*


2.99 1.02 3.63 1.09 48.03*


2.84 1.01 3.24 1.05 19.18*


2.87 0.99 3.36 0.95 36.64*

Calculative


2.47 1.14 3.02 0.99 35.45*


2.90 0.98 2.92 0.93 0.02


2.80 0.96 3.10 1.01 12.39*

178


Over 1 yr (N=232)

F value


2.92 0.96 2.94 1.00 0.05

Normative


2.65 1.09 3.22 0.97 41.35*


3.08 0.99 3.78 0.98 67.19*


2.87 1.01 3.06 1.23 3.60


2.86 1.17 3.24 1.00 15.93*


3.06 0.93 3.37 0.96 13.71*


2.85 1.08 3.19 1.06 13.53*


4.3.7 Loyalty

The loyalty is studied in respect of three dimensions- purchase

intentions, price insensitivity and position involvement. Table

4A.50 shows the mean values obtained from the responses to these

dimensions.

179

• Positive purchase intentions - The respondents indicated

positive purchase intentions. The mean scores of all the five

items ranged from 3.23 to 3.41.

• Price insensitivity - Respondents are price insensitive to some

extent. They disagreed with the statement – ‘I will go to others

who offer attractive prices (2.92)’ and agreed with the statement

– ‘I am willing to go to other service providers if they offer better

services at the same price (3.19)’.

• Position involvement – The response is positive as respondents

mildly agreed that ‘image of BSNL comes close to reflecting my

life style (3.03)’ and they ‘continue to use BSNL services

because their services make them feel important (3.20)’.

Table 4A.50: Loyalty to BSNL (N= 544)


Purchase intentions

I will continue to subscribe to BSNL services.

3.32 1.22

I continue to recharge my SIM card to have BSNL service.

3.41 1.11

I consider in BSNL as a my first choice in subscribing to cellular services.

3.26 1.11

I recommend BSNL services to other people.

3.23 1.08

I talk to other people about BSNL services.

3.24 1.08

Price insensitivity

I am willing to go to another service provider that offers more attractive prices.

2.93 1.23

I am willing to pay a higher price to BSNL than to other service providers for the benefit I

2.92 1.04

180


currently receive from BSNL because of my strong relationship with BSNL I am willing to go to other service providers if they offer better services at the same price.

3.19 1.15

Position involvement

I continue BSNL because their image comes close to reflecting my life style.

3.03 1.11

I continue to use BSNL services because their services make me feel important.

3.20 0.95

Scale: 5-Strongly agree 4- Agree 3-Neutral 2-Disagree 1- Strongly disagree.


Hypothesis- 10


Telecom circle on Loyalty, due to gender, age, occupation, type of

service and period of usage


gender, age and occupation, type of service and period of usage.

(10a-10e)


shown in the Table 4A.51 along with reject or fail to reject decision

of hypothesis.

181

Table 4A.51: Results of one way ANOVA: Hypotheses- 10a-10e

Dependent Variable



Type of service

Period of usage

a B c d e

Loyalty

F

10

0.66 24.52 5.93 2.47 30.37

Sig 0.42 0.00 0.00 0.12 0.00

Test Result


H10 b : Rejected

H10 c : Rejected


H910 e : Rejected


F and sig values indicate that age, occupation and period of

usage make difference in the perception of customers on loyalty.


occupation, type of service, period of usage on loyalty is given

below:

Gender - Table 4A.51 shows the analysis of influence of gender on

loyalty intentions – ‘I am willing to go to another service provider that

offers more attractive price’; the difference in perception is significant.

Both male and female indicated positive purchase intentions. Females

exhibited higher price sensitivity. Both male and female exhibited

positive involvement.

182

Table 4A.52: Loyalty to BSNL across Gender (N=544)

Dimension Statement

Male (N=406)

Female (N=138)

F value

Mean SD Mean SD

Purchase intentions


3.30 1.20 3.38 1.27 0.51


3.04 1.10 3.43 1.14 0.06

I consider in BSNL as a first choice in subscribing to cellular services.

3.28 1.07 3.23 1.22 0.16


3.22 1.08 3.23 1.09 0.00


3.23 1.10 3.26 1.06 0.06

Price insensitivity


3.01 1.26 2.70 1.14 7.01**

I am willing to pay a higher price to BSNL than to other service providers for the benefit I currently receive from BSNL because of my strong relationship with BSNL

2.94 1.01 2.88 1.12 0.37

I am willing to go to other service providers if they offer better services at the same price.

3.21 1.16 3.15 1.12 0.26



3.04 1.14 3.03 1.04 0.01


3.21 0.95 3.15 0.96 0.44


183

Age-

Analysis across age shown in Table 4A.53 indicates that

statistically significant differences are found between the two age

groups.

• Purchase intentions- The elder age group of respondents (above 35

years) have shown relatively stronger intentions than the younger

age group of respondents. They agreed that they will continue to

subscribe to BSNL services (3.76) continue to recharge for BSNL

service (3.71), consider it as first choice (3.5), recommend to others

(3.53) and talk to other people about BSNL services (3.56).

• Price insensitive- However, the elder age group is price sensitive.

They are willing to go to another service provider that offers more

attractive prices (3.30) or offer better services at the same price

(3.39) and disagreed with the statement ‘willing to pay a higher

price to BSNL than to other service providers for the benefit I

currently receive from BSNL because of my strong relationship

(2.93)’.

• Position involvement- The differences are in degree of agreement.

Both the groups agree that BSNL service is close to their life style

and make them feel important.

184

Table 4A.53: Loyalty to BSNL across Age (N=544)

Dimension Statement



F value

Mean SD Mean SD

Purchase intentions


2.97 1.26 3.76 1.00 62.25*


3.18 1.13 3.71 1.02 31.03*


3.09 1.07 3.50 1.13 19.00*


2.99 1.04 3.53 1.07 35.97*


3.02 1.07 3.56 1.03 25.65*

Price insensitivity


2.65 1.21 3.30 1.17 40.84*


2.93 0.99 2.92 1.11 0.02


3.03 1.15 3.39 1.12 13.53*

Position I continue BSNL 3.01 1.07 3.04 1.05 16.87*

185

Dimension Statement



F value

Mean SD Mean SD

involvement because their image comes close to reflecting my life style. I continue to use BSNL services because their services make me feel important.

3.06 0.89 3.37 0.99 14.28*


Occupation-

Table 4A.54 indicates significant differences are found in

respect of position involvement. Students are not having favorable

view of BSNL services in respect of the two statements- ‘image comes

close to reflecting my life style (2.79) and services make me feel

important (2.92)’. In all other cases attitudes are similar. Respondents

are positive on purchase intentions (3.14 to 3.93). Students agree

significantly more on talking to others about BSNL service (3.93). All

the groups are price sensitive. Students are more willing to go to other

suppliers who offer better price. Employees agree that BSNL is close

to their life style and make them feel important.

186

Table 4A.54: Loyalty to BSNL across Occupation (N=544)

Dimension Statement

Employed (N=476)

Student (N=68) F value

Mean SD Mean SD

Purchase intentions


3.35 1.19 3.14 1.37 1.92


3.41 1.10 3.42 1.20 0.00


3.26 1.10 3.28 1.18 0.01


3.24 1.08 3.17 1.13 0.25


3.30 1.08 3.93 1.04 5.81*

Price insensitivity


2.99 1.22 2.56 1.24 8.14*


2.92 1.01 2.97 1.24 0.19


3.15 1.14 3.47 1.20 4.97*

187

Dimension Statement

Employed (N=476)

Student (N=68) F value

Mean SD Mean SD



3.07 1.12 2.79 1.03 3.62*


3.24 0.93 2.92 1.04 7.22*


Influence of type of Service and Usage Period

The influence of type of service is analyzed in Table 4A.55.

Significant differences are found in respect of all the three

dimensions, but the difference is in terms of degree of disagreement.

However, in case of position involvement, differences are in zone of

agreement. Prepaid customers have positive view of BSNL services –

‘continue BSNL because their image comes close to reflecting my life

style (3.09)’ and ‘make me feel important (3.24)’. Postpaid agree less

that image of BSNL comes close to their lifestyle (2.83).

Table 4A. 55: Loyalty to BSNL across Type of Service (N=544)

Dimension Statement

Prepaid (N=400)

Postpaid (N=144)

F value

Mean SD Mean SD

Purchase intentions


3.37 1.19 3.12 1.26 4.55*

I continue to recharge my SIM card to have BSNL

3.47 1.12 3.20 1.06 6.37*

188

Dimension Statement

Prepaid (N=400)

Postpaid (N=144)

F value

Mean SD Mean SD

service. I consider in BSNL as a first choice in subscribing to cellular services.

3.32 1.12 3.04 1.06 6.80*


3.24 1.09 3.14 1.05 0.98


3.28 1.11 3.04 0.93 4.18*

Price insensitivity


2.90 1.26 2.96 1.10 0.33


2.98 1.02 2.75 1.07 5.32*


3.21 1.11 3.14 1.22 0.38



3.09 1.08 2.83 1.16 5.60*


3.24 0.93 3.04 1.00 4.63*


189

Table 4A.56 presents the views of both new customers (using

less than one year) and experienced customers (more than 1 year

usage). Statistically significant differences are found in the

following areas:

• Purchase intentions - Statistically significant differences are

found in respect of purchase intentions. New customers have

fewer intentions as they have shown disagreement with the

statements- ‘will continue to subscribe to BSNL services (2.78)’,

‘consider BSNL as first choice (2.90)’, ‘recommend to other

people (2.87)’ and ‘talk to other people (2.94)’.

• Price insensitivity - New customers are price sensitive as they have

disagreed with the following statements- ‘willing to go to another

service provider that offers more attractive prices (2.60)’ or ‘offer

better services at the same price (2.85)’.

• Position involvement – New customers have disagreed with the

statement – ‘I continue BSNL because their image comes close to

reflecting my life style (2.70)’.

190

Table 4A.56: Loyalty to BSNL across Period of Usage (N=544)



Mean SD Mean SD

Purchase intentions


2.78 1.23 3.71 1.05 89.62*


3.04 1.12 3.69 1.02 48.51*


2.90 1.03 3.54 1.10 45.57*


2.87 1.06 3.49 1.03 46.91*


2.94 0.95 3.44 1.12 21.63*

Price insensitivity


2.60 1.12 3.17 1.26 29.76*


2.97 0.97 2.88 1.09 0.98


2.85 1.09 3.45 1.13 37.47*



2.70 1.11 3.28 1.05 37.53*


3.11 0.86 3.25 1.01 2.90


191

4.3.8 Relationship Quality

What kind of relationship customers have and desirous of

having with BSNL?

Table 4A.57 shows that there is a moderate willingness among

respondent customers to maintain relationship with BSNL. They

showed moderate acceptance to the statements- like ‘to be a regular

customer (continuous business) of BSNL (3.20)’, ‘BSNL is reliable and

upgrades services regularly and encourages customers to avail

innovative plans (3.33)’. The satisfaction on quality of relationship of

BSNL is moderate (3.19).

Table 4A.57: Customer Relationship Quality (N=544)

Statement Mean SD

I like to be a regular customer of BSNL and use

BSNL services regularly. 3.20 1.24

BSNL is reliable and upgrades the tariff and

service regularly to be competitive and encourages

customers to avail new and innovative plans

3.33 1.03

I am satisfied with the quality of relationship

maintained by BSNL. 3.19 1.11



Hypothesis- 11


Telecom circle on Customer Relationship Quality due to gender, age,

occupation, type of service and period of usage.

192

The hypothesis is divided into 5 sub-hypotheses to cover

gender, age and occupation, type of service and period of usage

(11a-11e).



hypothesis.

Table 4A.58: Results of one way ANOVA: Hypotheses-11a-11e

Dependent Variable



Type of service

Period of usage

a B c d e

Customer Relationship Quality

F

11

0.08 23.79 6.38 3.35 53.93

Sig 0.78 0.00 0.00 0.07 0.00

Test Result


H11 b : Rejected

H11 c : Rejected


H11 e : Rejected


The F and sig values indicate that there is a difference in the

perception of customers about customer relationship quality due to

age, occupation and period of usage. Item wise analysis of the

influence of gender, age, occupation, type of service, period of

usage on customer relationship quality is given below:

What is the influence of demographics on the willingness to

maintain relationships? Table 4A.59 shows the analysis across

gender.

193

Table 4A.59: Customer Relationship Quality across Gender (N=544)

Statement Male (N=406) Female (N=138)

F value Mean SD Mean SD

I like to be a regular customer of BSNL and use BSNL services regularly.

3.22 1.23 3.15 1.264 0.358

BSNL is reliable and upgrades he tariff and service regularly to be competitive and encourages customers to avail new and innovative plans

3.32 1.05 3.35 0.968 0.09

I am satisfied with the quality of relationship maintained by BSNL.

3.17 1.10 3.24 1.129 0.461


Age–

Age-wise analysis shown in Table 4A.60 indicates that younger age

group (up to 35 years) is less satisfied with relationship with BSNL

(2.95). They agree that BSNL is reliable and upgrades services (3.11)

but are less willing to be regular customers (2.86). The differences in

the views between the age groups are statistically significant.

194

Table 4A.60: Customer Relationship Quality across Age (N=544)

Statement

Upto 35 Yrs Above 35 Yrs F value

(N=312) (N=232)

Mean SD Mean SD


2.86 1.26 3.64 1.07 59.89*

BSNL is reliable and upgrades the tariff and service regularly to be competitive and encourages customers to avail new and innovative plans

3.11 1.02 3.61 0.97 33.29*


2.95 1.04 3.5 1.12 34.02*


Analysis across occupation (Table 4A.61) and type of service

(Table 4A.62) show that there are no statistically significant

differences between employed and students; prepaid and postpaid

customers with regard to relationship quality. All the groups have

positive agreement on dimensions of being regular customers, BSNL’s

reliability and upgrading of services and quality of relationships. One

statistically significant difference is found in case of prepaid and

postpaid on being regular customers. It is less important as this is

only in terms of degree of acceptance.

195

Table 4A.61: Customer Relationship Quality across occupation (N=544)

Statement

Employed Students F value

(N=476) (N=68)

Mean SD Mean SD


3.23 1.2 3.03 1.47 1.68


3.34 1.01 3.25 1.15 0.5


3.18 1.09 3.26 1.19 0.38

Table 4A.62: Customer Relationship Quality across Type of Service (N=544)

Statement Prepaid Post paid F value (N=400) (N=144)

Mean SD Mean SD


3.26 1.22 3 1.26 4.75*

BSNL is reliable and upgrades the tariff and service regularly to be competitive and encourages customers to avail new and innovative plans

3.36 1.03 3.2 1.02 2.6


3.23 1.11 3.05 1.08 2.71


Table 4A.63 presents item wise analysis of views of respondents

across length of usage, on relationship quality. The new customers

196

(less than one year usage) rated quality of relationship low (2.84).

They disagreed with the statements to indicate that they like to be a

regular customer (continuous usage) of BSNL (2.61). Both the groups

are positive on reliability of BSNL and up gradation of tariff and

service (3.33 and 3.55).

Table 4A.63: Customer Relationship Quality across Period of Usage (N=544)

Statement Up to 1 yr (N=312)


Mean SD Mean SD


2.61 1.21 2.63 1.07 108.67*


3.03 0.96 3.55 1.02 37.55*


2.84 0.99 3.44 1.12 41.96*


4.4 DETERMINANTS OF RELATIONSHIP QUALITY - TESTING

OF RELATIONSHIPS OF HYPOTHESIZED MODEL

The determinants of relationship quality are portrayed in

Figure 3.1. The proposed model has variables like perceived value

with components of tariff, brand image, network coverage,

customer service, value added services; customer satisfaction,

customer complaint behavior, complaint handling, trust,

197

commitment, loyalty and customer relationship. The hypotheses

listed in Table 4A.64 are brought to testing.

Table 4A.64: Summary of Hypothesis for Testing Hypothesised Model Variables Hypothesis Number

Hypothesis Statement

H12-a Tariff of a purchase has positive impact on the Customer satisfaction with the service provider

H12-b Network coverage of a service provider has positive impact on the Customer satisfaction with the service provider

H12-c Value added services have positive impact on the customer satisfaction with the service provider

H12-d Customer Service of a service provider has positive impact on the Customer satisfaction with the service provider

H12-e Brand Image has positive influence on the Customer satisfaction with the service provider

H13-a Tariff of a purchase has positive impact on the trust with the service provider

H13-b Network coverage of a service provider has positive impact on the trust with the service provider

H13-c Value added services have positive impact on the trust with the service provider

H13-d Customer Service of a service provider has positive impact on the trust with the service provider

H13-e Brand Image has positive influence on the trust with the service provider

H14-a Tariff of a purchase has positive impact on the commitment with the service provider

H14-b Network coverage of a service provider has positive impact on the commitment with the service provider

H14-c Value added services have positive impact on the commitment with the service provider

H14-d Customer Service of a service provider has positive impact on the commitment with the service provider

H14-e Brand Image has positive influence on the commitment with the service provider

198

Hypothesis Number

Hypothesis Statement

H15 Customer satisfaction has negative influence on the level of complaint behavior

H16 Customer satisfaction has positive influence on trust in the service provider

H17 Customer satisfaction has positive influence on the customer's loyalty to the service provider

H18 Customer complaint handling has positive influence on trust in the service provider

H19 Customer compliant handling has positive influence in commitment to the service provider

H20 Trust has positive influence on the customer's loyalty to the service provider

H21 Trust has positive influence on the customer's commitment to the service provider

H22 Customer commitment has positive influence on the customer's loyalty to the service provider

H23 Loyalty has positive influence on the customer relationship quality

H24 Customer satisfaction has positive influence on Customer Relationship Quality

4.4.1 Method of Analysis

Analysis is done and presented as follows:

1. Correlations among variables

2. Regression analysis

The relationships are tested by using Pearson Correlation

coefficients and the correlations are found satisfactory (Table

4A.65a to 4A.65h).

199

4.4.2 Correlation of Model Variables

Correlation of model variables is given in Table 4A.64 and is

at acceptable level. Table 4A.65 (a – h): Correlation of Model Variables

Table 4A.65a: Correlation of Model Variables – Perceived Value

to Customer Satisfaction, Trust and Commitment.

Customer Satisfaction

Customer Trust Commitment

Tariff Pearson Correlation

.715(**) .722(**) .751(**)

Sig. (1-tailed) 0.000 0.000 0.000 N 554 552 554

Brand Image

Pearson Correlation

.833(**) .795(**) .764(**)

Sig. (1-tailed) 0.000 0.000 0.000 N 554 552 554

Network Coverage

Pearson Correlation

.701(**) .648(**) .699(**)

Sig. (1-tailed) 0.000 0.000 0.000 N 554 552 554


Pearson Correlation

.723(**) .697(**) .751(**)

Sig. (1-tailed) 0.000 0.000 0.000 N 550 550 550

customer Service

Pearson Correlation

.721(**) 0658(**) 0.698(**)

Sig. (1-tailed) 0.000 0.000 0.000 N 550 550 550

Table 4A.65b: Correlations Commitment and its components

Commitment

Calculative commitment

Pearson Correlation .864(**)

Sig. (1-tailed) 0.000 N 554

Normative commitment


Sig. (1-tailed) 0.000 N 552

Affective commitment


Sig. (1-tailed) 0.000 N 554

200

Table 4A.65c: Correlations: Trust and Customer Satisfaction

Customer Trust



Sig. (1-tailed) 0.000 N 552

Table 4A.65d: Correlations: Commitment and Trust

Commitment

Customer Trust Pearson Correlation .821(**)

Sig. (1-tailed) 0.000 N 552

**. Correlation is significant at the 0.01 level (1-tailed).

Table 4A.65e: Correlations: Loyalty and Customer Satisfaction,

Customer Trust and Commitment

Loyalty



Sig. (1-tailed) 0.000 N 554

Customer Trust Pearson Correlation .745(**)

Sig. (1-tailed) 0.000 N 552

Commitment Pearson Correlation .796(**)

Sig. (1-tailed) 0.000 N 554

Table 4A.65f: Correlations: Complaint Handling and Customer Trust and Commitment

Customer Trust Commitment

Complaint handling

Pearson Correlation

.705(**) .686(**)

Sig. (1-tailed) 0.000 0.000 N 544 544

201

Table 4A.65g: Correlations: Customer Satisfaction and Complaint Behavior


Compliant Behavior


Sig. (1-tailed) 0.000 N 552

Table 4A.65h: Correlations: Loyalty and Customer Relationship Quality


Loyalty Pearson Correlation .740(**)

Sig. (1-tailed) 0.000 N 554

**. Correlation is significant at the 0.01 level (1-tailed).

4.4.3 Testing of Hypotheses

The following hypotheses are proposed for validation. Single

and multiple regressions are employed for testing of hypotheses.

Y = a +B 1 x + B2 z

Where a = constant, B1, B2 .. are coefficients of regression

Effects of Perceived Value

Perceived value is seen as a five dimensional concept with tariff,

network quality, value added services, customer service and brand

image. It is hypothesized that perceived value impacts customer

satisfaction, trust and commitment.

202

Impact on Customer Satisfaction –

Hypotheses H-12:

H-12: Perceived value positively influences the customer

satisfaction.

To find relations with various components of perceived value,

it is divided into five hypotheses - H12a to H12 e

• H-12a: Tariff of a purchase positively influences the

Customer Satisfaction with the service provider

• H12b: Network coverage of a service provider positively

influences the Customer satisfaction with the service

provider

• H12c: Value added services positively influence the

Customer satisfaction with the service provider

• H12d: Customer Service of a service provider positively

influences the Customer satisfaction with the service

provider

• H12e: Brand Image positively influences the Customer

satisfaction with the service provider

Table 4A.66 shows the results of the multiple linear

regressions.

203

Table 4A.66: Results of Multiple Linear Regressions (Perceived value and Customer Satisfaction) Model Summary

Model R R Square

Adjusted R Square

Std. Error of the Estimate

1 .880a .775 .773 .44802 a. Predictors: (Constant), Brand Image, Network Coverage, Customer Services, Value Added Services, Tariff

ANOVA

Model Sum of Squares df

Mean Square F Sig.

1 Regression 375.321 5 75.064 373.977 .000a

Residual 108.790 542 .201 Total 484.110 547

a. Predictors: (Constant), Brand Image, Network Coverage, Customer Services, Value Added Services, Tariff b. Dependent Variable: Customer Satisfaction

Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

t Sig.

B Std. Error

Beta

1

(Constant) -0.073 0.081 -0.899 0.369 Tariff 0.088 0.045 0.076 1.933 0.054* Network Coverage

0.177 0.029 0.185 6.083 0.000


0.106 0.036 0.103 2.951 0.003

Customer Services

0.12 0.037 0.116 3.259 0.001

Brand Image

0.516 0.033 0.515 15.692

0.000

a. Dependent Variable: Customer Satisfaction *. Not significant at 0.05 level

Customer Satisfaction = - 0.073 + 0.088 Tariff * + 0 .177

Network coverage + 0.106 Value added services + 0.12

Customer service + 0.516 Brand image

204

The coefficient of Tariff is not significant at 0.05 level.

Though the relationship is obvious, statistical significance is

not shown.

According to results of regression analysis shown in

Table 4A.66, the value of R square is 0.775. This means that

77.5 percent variation in customer satisfaction is explained by

perceived value through this linear regression model. The

significance of F Value (F = 373.977, P = .000) and the result

of ANOVA indicates that regression is statistically significant

at 5% level and is not an occurrence by chance. B values

indicate that brand image (0.516) followed by network

coverage (0.177), customer service (0.12), value added services

(0.106), tariff (0.088) have influence on customer satisfaction.

The influence of tariff is not statistically significant. The values

of t and p of independent variables indicate that the

independent variables except tariff are statistically significant.

Tables 4A.65a and 4A.66 indicate a positive and significant

relationship between the perceived value and customer

satisfaction. Hence the hypotheses - H12a to H12e are

accepted.

205

Impact on Trust –

Hypotheses H-13:

H-13: Perceived value positively influences the trust.

To find relations with various components, it is broken

into five hypotheses


trust with the service provider

• H13b: Network coverage of a service provider positively

influences the trust with the service provider

• H13c: Value added services positively influences the

trust with the service provider


influences the trust with the service provider

• H13e: Brand Image positively influences the trust with

the service provider

Table 4A.67 presents the results of multiple linear regression.

Table 4A.67: Results of Multiple Linear Regressions (Perceived Value and Trust) Model Summary

Model R R Square Adjusted R Square



206

ANOVA


Mean Square F Sig.

1 Regression 365.649 5 73.130 274.619 .000a

Residual 144.332 542 .266 Total 509.981 547

a. Predictors: (Constant), Brand Image, Network Coverage, Customer Services, Value Added Services, Tariff b. Dependent Variable: Trust

Coefficientsa

Model



t Sig. B Std. Error Beta

1 (Constant) .022 .093 .239 .811

Tariff .211 .052 .179 4.052 .000

Network Coverage

.123 .033 .125 3.663 .000


.098 .041 .093 2.367 .018

Customer Services

.106 .042 .100 2.505 .013

Brand Image

.464 .037 .457 12.398 .000

a. Dependent Variable: Trust



71.7 percent variation in customer trust is explained by

perceived value through this linear model. The significance of

F Value (F = 274.619, p = .000), the result of ANOVA indicates

that regression is statistically significant at 5% level and is not

an occurrence by chance. B values indicate that brand image

(0.464) followed by tariff (0.211), network coverage (0.123),

customer service (0.106) and value added services (0.098)

207

have influence on customer trust. The values of t and p of

independent variables indicate that the independent variables

are statistically significant. Tables 4A.65a and 4A.67 indicate

a positive and significant relationship between the perceived

value and customer trust. Hence the hypotheses - H13a to

H13e are accepted.

Impact on Commitment:

Hypothesis H-14:

H-14 Perceived value positively influences the commitment.

To find relations with various components, it is broken into five

hypotheses


Commitment with the service provider

• H14b: Network coverage positively influences the


• H14c: Value added Services positively influence the



influences the Commitment with the service provider

• H14e: Brand Image positively influences the


The results of multiple linear regression are shown in Table

4A.68.

208

Table 4A.68: Results of Multiple Linear Regressions (Perceived Value and Commitment) Model Summary




ANOVAb


Mean Square F Sig.

1 Regression 243.476 5 48.695 316.001 .000a

Residual 83.521 542 .154 Total 326.997 547

Coefficientsa

Model




1 (Constant) .382 .071 5.405 .000

Tariff .243 .040 .257 6.117 .000

Network Coverage

.146 .025 .186 5.752 .000


.161 .032 .190 5.099 .000

Customer Services

.051 .032 .060 1.589 .113*

Brand Image

.236 .028 .290 8.290 .000

a. Dependent Variable: Commitment *. Not significant at 0.05 level

Commitment = 0. 382 + 0.243 Tariff + 0.146 Network Coverage +

0.161 Value added services + 0.051 Customer services* +

0.236 Brand image



209

74.5 percent variation in customer commitment is explained

by perceived value through this linear model. The significance

of F Value (F = 316.001, p = .000), the result of ANOVA

indicates that regression is statistically significant at 5% level

and is not an occurrence by chance. B values indicate that

Tariff (0.243) followed by Brand Image (0.236), Value Added

Services (0.161), Network Coverage (0.146) and Customer

Service (0.051) have influence on customer commitment. The

values of t and p of independent variables indicate that the

independent variables are statistically significant except

Customer Service. Tables 4A.65a and 4A.68 indicate a positive

and significant relationship between the perceived value and

commitment. Hence the hypotheses - H14a to H14e are

accepted.

Effect of Customer satisfaction on Complaint Behavior

Hypothesis H-15

Low complaint behavior is the hypothesized outcome of

customer satisfaction.

H-15 Higher the customer satisfaction, lower the level of complaint

behavior

Table 4A.69 presents the results of linear regression.

210

Table 4A.69: Result of Linear Regression of Customer

Satisfaction to Complaint Behavior

Model Summary



1 .485a .235 .234 .72703 a. Predictors: (Constant), Customer Satisfaction

ANOVAb


Mean Square F Sig.

1 Regression 89.510 1 89.510 169.344 .000a

Residual 290.713 550 .529 Total 380.223 551

a. Predictors: (Constant), Customer Satisfaction b. Dependent Variable: Compliant Behaviour

Coefficientsa

Model




1 (Constant) 1.513 .109 13.888 .000


.430 .033 .485 13.013 .000

a. Dependent Variable: Compliant Behaviour

Complaint behavior = 1.513 + 0.430 Customer satisfaction

According to results of regression analysis shown in Table

4A.69, the value of R square is 0.235. This means that 23.5

percent variation in complaint behavior is explained by customer

satisfaction through this linear model. The significance of F Value

(F = 169.344, p = .000), the result of ANOVA indicates that

regression is statistically significant at 5% level and is not an

occurrence by chance. B values indicate that Customer

211

Satisfaction (0.430) has a positive effect on complaint behavior

which is contrary to the hypothetical negative relationship.

Hypothesis states that higher the customer satisfaction, lower is

the level of complaint behavior. A negative relationship (negative B-

value) is expected. Therefore the hypothesis H-15 is rejected.

Impact of Customer Satisfaction on Trust

Hypothesis H-16:

H-16: Customer satisfaction positively influences trust in the service

provider.


Table 4A.70: Result of Linear Regression of Customer Satisfaction with Trust Model Summary

Model R R Square

Adjusted R Square



ANOVAb


Mean Square F Sig.

1 Regression 328.536 1 328.536 975.568 .000a

Residual 185.220 550 .337 Total 513.755 551

a. Predictors: (Constant), Customer Satisfaction b. Dependent Variable: Trust

Coefficientsa

Model




1 (Constant) .664 .087 7.634 .000


.823 .026 .800 31.234

.000


212

Trust = 0.664+0.823 Customer satisfaction



percent variation in customer trust is explained by customer





Satisfaction (0.823) has a positive effect on customer trust. The t

value (31.234) and p (.000) of customer satisfaction indicate that

customer satisfaction is statistically significant. Tables 4A.65c and

4A.70 indicate a positive and significant relationship between

customer satisfaction and trust. Hence the hypothesis-H16 is

accepted.

Impact of Customer Satisfaction on Customer Loyalty

Hypothesis H-17:

H-17 Customer satisfaction directly and positively influences the

customer’s loyalty to the service provider.


213

Table 4A. 71: Result of Linear Regression of Customer

Satisfaction with Loyalty

Model Summary




ANOVAb


Mean Square F Sig.

1 Regression 142.523 1 142.523 419.081 .000a

Residual 187.726 552 .340 Total 330.249 553

a. Predictors: (Constant), Customer Satisfaction b. Dependent Variable: LOYALTY

Coefficientsa

Model




1 (Constant) 1.391 .086 16.097 .000


.537 .026 .657 20.471 .000

a. Dependent Variable: Loyalty

Loyalty = 1.391+0.537 Customer satisfaction



percent variation in customer loyalty is explained by customer





214

Satisfaction (0.537) has a positive effect on customer loyalty. The t

value (20.471) and p (.000) of customer satisfaction indicate that

customer satisfaction is statistically significant. Tables 4A.65e and


between the customer satisfaction and loyalty. Hence the

hypothesis-H17 is accepted.

Impact of Complaint Handling on Trust

Hypothesis H-18

It is hypothesized that effective complaint handling results in

trust and commitment.

H-18 Customer compliant handling positively influences trust.


Table 4A. 72: Result of Linear Regression of Complaint Handling with Trust Model Summary

Model R R Square

Adjusted R Square


1 .705a .496 .495 .67239 a. Predictors: (Constant), Complaint handling

ANOVAb


Mean Square F Sig.

1 Regression 241.508 1 241.508 534.175 .000a

Residual 245.046 542 .452 Total 486.554 543

a. Predictors: (Constant), Complaint handling b. Dependent Variable: Trust

215

Coefficientsa

Model




1 (Constant) 1.199 .095 12.621 .000

Complaint handling

.697 .030 .705 23.112 .000


Trust = 1.199+ 0.697 Complaint handling According to results of regression analysis shown in Table


percent variation in customer trust is explained by complaint

handling through this linear model. The significance of F Value (F

= 534.175, p = .000), the result of ANOVA indicates that regression

is statistically significant at 5% level and is not an occurrence by

chance. B values indicate that Complaint Handling (0.697) has a

positive effect on customer trust. The t value (23.112) and p (.000)

of complaint handling indicate that complaint handling is

statistically significant. Tables 4A.65f and 4A.72 indicate a positive

and significant relationship between the complaint handling and

trust. Hence the hypothesis-H18 is accepted.

Impact of Complaint Handling on Commitment

Hypothesis H-19:

H-19 Customer compliant handling positively influences

commitment.

216


Table 4A. 73: Result of Linear Regression of Complaint Handling with Commitment Model Summary



1 .686a .471 .470 .55215 a. Predictors: (Constant), Complaint handling

ANOVAb


Mean Square F Sig.

1 Regression 147.085 1 147.085 482.446 .000a

Residual 165.242 542 .305 Total 312.328 543

a. Predictors: (Constant), Complaint handling b. Dependent Variable: Commitment

Coefficientsa

Model




1 (Constant) 1.454 .078 18.643 .000

Complaint handling

.544 .025 .686 21.965 .000

a. Dependent Variable: Commitment

Commitment = 1.454 + 0.544 Complaint handling



percent variation in customer commitment is explained by

complaint handling through this linear model. The significance of F

Value (F = 482.446, p = .000), the result of ANOVA indicates that


217

occurrence by chance. B values indicate that Complaint Handling

(0.544) has a positive effect on customer commitment. The t value

(21.965) and p (.000) of complaint handling indicate that complaint

handling is statistically significant. Tables 4A.65f and 4A.73

indicate a positive and significant relationship between the

complaint handling and commitment. Hence the hypothesis-H19

is accepted.

Impact of Trust on Loyalty

Hypothesis H-20:

It is proposed that trust leads to loyalty and commitment.

H-20 Trust directly and positively influences the customer’s loyalty

to the service provider.


Table 4A. 74: Result of Linear Regression of Customer Trust with Loyalty Model Summary

Model

R R Square Adjusted R Square


1 .745 .555 .555 .51642

a. Predictors: (Constant), Trust

ANOVAb


Mean Square F Sig.

1 Regression 183.225 1 183.225 687.032 .000

Residual 146.680 550 .267 Total 329.905 551

a. Predictors: (Constant), Trust b. Dependent Variable: Loyalty

218

Coefficientsa

Model Unstandardized Coefficients



1 (Constant) 1.133 .078 14.589 .000

Customer Trust

.597 .023 .745 26.211 .000

a. Dependent Variable: Loyalty

Loyalty = 1.133 + 0.597 Trust



percent variation in loyalty is explained by customer trust through

this linear model. The significance of F Value (F = 687.032, p =

.000), the result of ANOVA indicates that regression is statistically

significant at 5% level and is not an occurrence by chance. B

values indicate that Customer Trust (0.597) has a positive effect on

Loyalty. The t value (26.211) and p (.000) of customer trust

indicate that customer trust is statistically significant. Tables

4A.65e and 4A.74 indicate a positive and significant relationship

between the trust and loyalty. Hence the hypothesis-H20 is

accepted.

219

Impact of Trust on Customer’s Commitment

Hypothesis H-21:

It is proposed that trust leads to commitment.

H-21 Trust directly and positively influences the customer’s

commitment to the service provider.


Table 4A. 75: Result of Linear Regression of Customer Trust with Commitment Model Summary

Model

R R Square

Adjusted R Square


1 .821 .674 .673 .44376

a. Predictors: (Constant), Trust

ANOVAb


Mean Square F Sig.

1 Regression 223.944 1 223.944 1137.221 .000 Residual 108.307 550 .197 Total 332.251 551

a. Predictors: (Constant), Trust b. Dependent Variable: Commitment

Coefficientsa




1 (Constant) .910 .067 13.645 .000 Customer Trust

.660 .020 .821 33.723 .000

a. Dependent Variable: Commitment

220

Commitment = 0.910+ 0. 660 Customer Trust



percent variation in commitment is explained by customer trust

through this linear model. The significance of F Value (F

=1137.221, p = .000), the result of ANOVA, indicates that


occurrence by chance. B values indicate that Customer Trust

(0.660) has a positive effect on commitment. The t value (33.723)

and p (.000) of customer trust indicate that customer trust is

statistically significant. Tables 4A.65d and 4A.75 indicate a

positive and significant relationship between the trust and

commitment. Hence the hypothesis-H21 is accepted.

Impact of Commitment on Loyalty

Hypothesis H-22:

It is proposed that commitment leads to Loyalty.

H-22 Commitment directly and positively influences the customer’s

loyalty to the service provider.


221

Table 4A. 76: Result of Linear Regression of Commitment with Loyalty Model Summary



1 .796a .633 .633 .46830 a. Predictors: (Constant), Commitment

ANOVAb

Model Sum of Squares Df

Mean Square F Sig.

1 Regression 209.194 1 209.194 953.898 .000a

Residual 121.056 552 .219 Total 330.249 553

a. Predictors: (Constant), Commitment b. Dependent Variable: Loyalty

Coefficientsa

Model




1 (Constant) .674 .081 8.359 .000

Commitment .788 .026 .796 30.885 .000 a. Dependent Variable: Loyalty

Loyalty = 0.674 + 0.788 Commitment.



percent variation in loyalty is explained by commitment through

this linear model. The significance of F Value (F = 953.898, p =

.000), the result of ANOVA, indicates that regression is statistically

significant at 5% level and is not an occurrence by chance. B

values indicate that commitment (0.788) has a positive effect on

loyalty. The t value (30.885) and p (.000) of commitment indicate

222

that commitment is statistically significant. Tables 4A.65e and

4A.76 indicate a positive and significant relationship between the

commitment and loyalty. Hence the hypothesis-H22 is accepted.

Impact of Loyalty on Customer Relationship Quality

Hypothesis H-23

H-23 Loyalty directly and positively influences the customer

relationship quality.


Table 4A. 77: Result of Linear Regression of Loyalty with Model Summary

Model R R Square

Adjusted R Square


1 .740a .548 .547 .68713 a. Predictors: (Constant), Loyalty

ANOVAb


Mean Square F Sig.

1 Regression 315.387 1 315.387 667.992 .000a

Residual 260.622 552 .472 Total 576.010 553

a. Predictors: (Constant), Loyalty b. Dependent Variable: Customer Relationship Quality

Coefficientsa

Model




1 (Constant) .212 .120 1.763 .078

Loyalty .977 .038 .740 25.846 .000 a. Dependent Variable: Customer Relationship Quality

Relationship quality = 0.212 + 0.977 Loyalty

223



percent variation in relationship quality is explained by loyalty

through this linear model. The significance of F Value (F =

667.992, p = .000), the result of ANOVA, indicates that regression

is statistically significant at 5% level and is not an occurrence by

chance. B values indicate that loyalty (0.977) has a positive effect

on relationship quality. The t value (25.846) and p (.000) of loyalty

indicate that loyalty is statistically significant. Tables 4A.65h and


loyalty and customer relationship quality. Hence the hypothesis-

H23 is accepted.

Impact of Customer Satisfaction on Relationship Quality

Hypothesis H-24:

H 24: Customer Satisfaction positively influences the relationship

quality.


Table 4A.78: Result of Linear Regression of Customer satisfaction and Relationship quality Model Summary

Model

R R Square Adjusted R Square


1 .691 .478 .477 .73806

a. Predictors: (Constant), Customer Satisfaction

224

ANOVAb


Mean Square F Sig.

1 Regression 275.317 1 275.317 505.415 .000

Residual 300.693 552 .545 Total 576.010 553

a. Predictors: (Constant), Customer Satisfaction b. Dependent Variable: Customer relationship quality

coefficientsa




1 (Constant) .872 .109 7.974 .000


.746 .033 .691 22.481 .000

a. Dependent Variable: Customer relationship quality

Relationship quality = 0. 872+ 0 .746 Customer Satisfaction



percent variation in relationship quality is explained by customer


(F = 505.415, p = .000), the result of ANOVA, indicates that

regression is statistically significant at s level and is not an

occurrence by chance. B values indicate that customer satisfaction

(0.746) has a positive effect on relationship quality. The t value

(22.481) and p (.000) of customer satisfaction indicate that

customer satisfaction is statistically significant. Thus a positive

and significant relationship is indicated between the customer

225

satisfaction and relationship quality. Hence the hypotheses-H24

is accepted.

4.5 Results of Testing of Hypotheses

1. The summary of null hypotheses H-1a to H-11e on the

impact of demographic and affiliation variables on the model

variables tested by one way ANOVA is presented along with

the results in Table 4A.81.

2. The summary of hypotheses H12a to H24 which pertain to

relationship between model variables which was tested by

regressions is presented in Table 4A.82.

The interpretation of the analysis and the managerial

implications is discussed in Chapter -5.

226

Table 4A.79: Summary of Regression for Research Model on BSNL Customer Perception Survey

S.No Dependent Variable

Independent Variable R R2

Adj-R2

Std Error

Regression Model

Sum of squares df

Mean Square

F-Value

Sig.

(p-value)

1 Customer satisfaction

Brand Image Network Coverage Customer Service Value added Services Tariff 0.88 0.775 0.773 0.448

Regression 375.32 5 75.064

373.98 0.000

Residual 108.79 542 0.201

Total 484.11 547 75.265

2 Trust

Brand Image Network Coverage Customer Service Value added Services Tariff 847 0.717 0.714 0.516

Regression 365.65 5 73.13

274.63 0.000

Residual 144.33 542 0.266

Total 509.98 547

3 Commitment

Brand Image Network Coverage Customer Service Value added Services Tariff 8.86 0.745 0.742 0.393

Regression 243.48 5 48.695

316 0.000

Residual 83.521 542 0.154

Total 327 547

4 Complaint Behavior

Customer Satisfaction 0.49 0.235 0.234 0.727

Regression 89.51 1 89.51

169.34 0.000

Residual 290.71 550 0.529

Total 380.22 551

227

S.No Dependent Variable

Independent Variable

R R2 Adj-R2

Std Error

Regression Model

Sum of squares

df Mean Square

F-Value

Sig.

5 Trust Customer Satisfaction 0.8 0.639 0.639 0.58

Regression 328.54 1 328.54

975.57 0.000

Residual 185.22 550 0.337

Total 513.76 551

6 Loyalty Customer Satisfaction 0.66 0.432 0.431 0.583

Regression 142.52 1 142.52

419.08 0.000

Residual 187.73 552 0.34

Total 330.25 553

7 Trust Complaint Handling 0.71 0.496 0.495 0.672

Regression 241.51 1 241.51

534.18 0.000

Residual 245.05 542 0.452

Total 486.55 543

8 Commitment Complaint Handling 0.69 0.471 0.47 0.552

Regression 147.09 1 147.09

482.45 0.000

Residual 165.24 542 0.305

Total 312.33 543

9 Loyalty Commitment 0.8 0.633 0.633 0.468

Regression 209.19 1 209.19

953.9 0.000

Residual 121.06 552 0.219

Total 330.25 553

10

Customer Relationship Quality Loyalty 0.74 0.548 0.547 0.687

Regression 315.39 1 315.39

667.99 0.000

Residual 260.62 552 0.472

Total 576.01 553

11 Loyalty Trust 0.75 0.555 0.555 0.516

Regression 183.23 1 183.23

0.267 0.000

Residual 146.68 550

Total 329.91 551

12 Commitment Trust 0.82 0.674 0.673 0.444

Regression 223.94 1 223.94

1137.2 0.000

Residual 108.31 550

Total 332.25 551

13


Customer Satisfaction 0.69 0.478 0.477 0.738

Regression 275.32 1 275.32

505.42 0.000

Residual 300.69 552 0.545

Total 576.01 553

228

Table 4A.80: Coefficient Summary (Beta Estimates for Research Model on Customer Relationship Quality, BSNL Customer Perception Survey)

Model




1 Customer Satisfaction (Constant) -.073 .081 -.899 .369 Tariff .088 .045 .076 1.933 .054 BSNL Network Coverage .177 .029 .185 6.083 .000 Value Added Services .106 .036 .103 2.951 .003 Customer Services .120 .037 .116 3.259 .001 Brand Image .510 .033 .515 15.692 .000

2 Trust (Constant) .022 .093 .239 .811 Tariff .211 .052 .179 4.052 .000 BSNL Network Coverage .123 .033 .125 3.663 .000 Value Added Services .098 .041 .093 2.367 .018 Customer Services .106 .042 .100 2.505 .013 Brand Image .464 .037 .457 12.398 .000

3 Commitment (Constant) .382 .071 5.405 .000 Tariff .243 .040 .257 6.117 .000 BSNL Network Coverage .146 .025 .186 5.752 .000 Value Added Services .161 .032 .190 5.099 .000 Customer Services .051 .032 .060 1.589 .113 Brand Image .236 .028 .290 8.290 .000

4 Compliant Behavior (Constant) 1.513 .109 13.888 .000 Customer Satisfaction .430 .033 .485 13.013 .000

5 Trust (Constant) .664 .087 7.634 .000 Customer Satisfaction .823 .026 .800 31.234 .000

6 Loyalty (Constant) 1.391 .086 16.097 .000 Customer Satisfaction .537 .026 .657 20.471 .000

229


Standardized Coefficients t Sig.

7 Trust (Constant) 1.199 .095 12.621 .000 Complaint handling .697 .030 .705 23.112 .000

8 Commitment (Constant) 1.454 .078 18.643 .000 Complaint handling .544 .025 .686 21.965 .000

9 Loyalty (Constant) .674 .081 8.359 .000 Commitment .788 .026 .796 30.885 .000

10 Customer Relationship Quality

(Constant) .212 .120 1.763 .078 Loyalty .977 .038 .740 25.846 .000

11 Loyalty (Constant) 1.133 .078 14.589 .000 Trust .597 .023 .745 26.211 .000

12 Commitment (Constant) .910 .067 13.645 .000 Trust .660 .020 .821 33.723 .000

13 Customer Relationship Quality

(Constant) .872 .109 7.974 .000 Customer Satisfaction .746 .033 .691 22.481 .000

230

Table 4A.81: Summary Results of Null Hypotheses Testing H1a to H11e (One way ANOVA)

Rejected – No difference; Accepted – There is difference

Model Variables

Demographic and Affiliation Variables

Gender Age Occupation Type of service

Period of usage

Tariff H1 a : Accepted

H1 b : Rejected

H1 c : Rejected

H1 d : Accepted

H1 e : Rejected

Network Coverage

H2 a : Accepted

H2 b : Rejected

H2 c : Rejected

H2 d : Accepted

H2 e : Rejected


H3 a : Rejected

H3 b : Rejected

H3 c : Rejected

H3 d : Accepted

H3 e : Rejected

Customer service

H4 a : Accepted

H4 b : Rejected

H4 c : Rejected

H4 d : Accepted

H4 e : Rejected

Brand image H5 a : Accepted

H5 b : Rejected

H5 c : Rejected

H5 d : Rejected

H5 e : Rejected


H6 a : Accepted

H6 b : Rejected

H6 c : Rejected

H6 d : Accepted

H6 e : Rejected

Complaint Handling

H7 a : Accepted

H7 b : Rejected

H7 c : Accepted

H7 d : Accepted

H7 e : Rejected

Trust H8 a : Accepted

H8 b : Rejected

H8 c : Rejected

H8 d : Accepted

H8 e : Rejected

Commitment H9 a : Accepted

H9 b : Rejected

H9 c : Rejected

H9 d : Accepted

H9 e : Rejected

Loyalty H10 a : Accepted

H10 b : Rejected

H10 c : Rejected

H10 d : Accepted

H10 e : Rejected


H11 a : Accepted

H11 b : Rejected

H11 c : Rejected

H11 d : Accepted

H11 e : Rejected

231

Table 4A.82: Hypotheses Summary of Relationship Quality Model Variables

Hypothesis Number

Hypothesis Statement Regression Equation Test Result

H12-a

Tariff of a purchase has positive impact on the Customer satisfaction with the service provider

Customer satisfaction = - 0.073+ 0.088 (Tariff) *+0 .177 Network coverage + 0.106 Value added services + 0.12 Customer service + 0.516 Brand image *Not statistically significant

Accepted

H12-b

Network coverage of a service provider has positive impact on the Customer satisfaction with the service provider

Accepted

H12-c

Value added services have positive impact on the customer satisfaction with the service provider

Accepted

H12-d

Customer Service of a service provider has positive impact on the Customer satisfaction with the service provider

Accepted

H12-e

Brand Image has positive influence on the Customer satisfaction with the service provider

Accepted

H13-a Tariff of a purchase has positive impact on the trust with the service provider

Trust = 0.022+0.211 Tariff+ 0.123 Network quality +0.098 Value added services +0.106 Customer services + 0.464 Brand image

Accepted

H13-b

Network coverage of a service provider has positive impact on the trust with the service provider

Accepted

232

Hypothesis Number


H13-c Value added services have positive impact on the trust with the service provider

Accepted

H13-d

Customer Service of a service provider has positive impact on the trust with the service provider

Accepted

H13-e Brand Image has positive influence on the trust with the service provider

Accepted

H14-a Tariff of a purchase has positive impact on the commitment with the service provider

Commitment = 0. 382+0.243 Tariff+ 0.146 Network Coverage +0.161 Value added services +0.051 Customer services* + 0.236 Brand image *Not statistically significant

Accepted

H14-b

Network coverage of a service provider has positive impact on the commitment with the service provider

Accepted

H14-c

Value added services have positive impact on the commitment with the service provider

Accepted

H14-d

Customer Service of a service provider has positive impact on the commitment with the service provider

Accepted

H14-e Brand Image has positive influence on the commitment with the service provider

Accepted

233

Hypothesis Number


H15 Customer satisfaction has negative influence on the level of complaint behavior

Complaint behavior = 1.513+ 0.430 Customer satisfaction

Rejected

H16 Customer satisfaction has positive influence on trust in the service provider

Trust = 0.664+0.823 Customer satisfaction

Accepted

H17

Customer satisfaction has a positive influence on the customer's loyalty to the service provider

Loyalty = 1.391+0.537 Customer satisfaction

Accepted

H18 Customer complaint handling has a positive influence on trust in the service provider

Trust = 1.199+ 0.697 Complaint handling

Accepted

H19

Customer compliant handling has a positive influence in commitment to the service provider

Commitment = 1.454 + 0.544 Complaint handling

Accepted

H20 Trust has a positive influence on the customer's loyalty to the service provider

Loyalty = 1.133 + 0.597 Trust Accepted

H21 Trust has positive influence on the customer's commitment to the service provider

Commitment = 0.910+ 0. 660 Customer Trust

Accepted

H22

Customer commitment has direct and positive influence on the customer's loyalty to the service provider

Loyalty = 0.674 + 0.788 Commitment

Accepted

234

Hypothesis Number


H23 Loyalty has a direct and positive influences the customer relationship quality

Relationship quality = 0.212 + 0.977 Loyalty

Accepted

H24 Customer satisfaction has a direct and positive influence on Customer Relationship Quality

Relationship quality= 0. 872+ 0 .746 Customer satisfaction

Accepted

*Not significant at 0.05 level

235

4.6 THE MODEL FITNESS

The proposed relationships among different determinants of

relationship quality are proved except the relationship between

complaint handling and customer satisfaction (Hypothesis H-15.

Higher the customer satisfaction, the lower the level of complaint

behavior). In the present case, complaint behavior and satisfaction

are going in the same direction. The implication is, complaint

behavior will not reduce satisfaction. Perhaps complaint handling

is more important than the problems that lead to complaints.

Hypothesis H-18 and H-19 show that customer compliant handling

positively influences trust and commitment. As such, it can be said

that the customers of BSNL mobile services have tolerance to

problems and failures and rely more on the complaint handling.

Analysis of perceptions of various demographic and affiliation

segments on complaint behavior and complaint handling revealed

that customers less than 35 years age, students, post-paid and

customers of less than 1 year patronage are not very happy with

complaint handling of BSNL. It is, therefore, considered as not a

good symptom. A threshold level of complaint behavior is desired

as it shows the involvement of customers.

Not complaining indicates indifference, which shows inferior

customer relationship. The current practice of organizations is to

236

give more opportunities to customer to complain in the event of

any problem occurrence and take the complaint seriously and

strengthen complaint handling system to quickly resolve the

complaints to the satisfaction of customers. Good complaint

handling, in a way is a good way of compensating the customer

and establishing better rapport.

The results of regression are summarized in tables 4.79 and 4.80.

Table 4A.79 presents the results of R squares, F value, P value and

related data. Table 4A.80 presents the regression coefficient B,

Beta, t and p value. Examination of the summary reveals the

following:

Percentage Variance Explained

1. The value of R squares is above 0.5 in all the cases except

complaint behavior and customer satisfaction (0.235);

2. In case of loyalty and customer satisfaction (0.432), trust and

complaint handling (0.496), commitment and complaint

handling (0.471), customer relationship quality and customer

satisfaction (0.478) which is marginally lower than value of 0.5,

is considered satisfactory.

3. In all other cases the value is ranging from 0.63 to 0.82 which

is good.

Thus the variance explained is ranging from 63% to 82% in

most of the cases and around 47 – 50% in other cases.

237

Significance

4. The F value and P value in all the cases indicate that regression

is statistically significant at 0.05 level and is not an occurrence

by chance.

5. Examination of coefficients reveals the contribution of the

independent variables to the dependent variable. The t value

and p value across the variables have indicated that the

independent variables are statistically significant.

6. From the above it can be concluded that the model has a good

fitness.

238

Section – B: CRM at BSNL

4.7 ORIGIN AND SERVICES

Bharat Sanchar Nigam Limited (BSNL) is a 100% Govt. of

India owned Public Sector Undertaking with an authorized capital

of Rs.17,500 crore, a paid up capital of Rs.12,500 crore and a net

worth of Rs.63,018 crore. BSNL was formed on October 1, 2000 by

corporatization of the erstwhile Department of Telecom Services.

Vision

To provide world-class telecom services ranging from plain

telephone service to all types of value added service at affordable

prices while ensuring operation with customer orientation. BSNL is

working towards the following objectives:

• To provide the “state of the art” technology for all types of

telecom services in the country.

• To face the competition and excel in its operations in the

Indian/Overseas markets’ by developing proper marketing

strategies and entering into joint ventures.

• To emphasize customer orientation in all its operations.

• To provide all types of telecom services at affordable rates to

every nook and corner of the country including the rural areas.

• To fulfill the telecommunications requirements for the growth

and development of business enterprise in the country.

239

4.7.1 Services of BSNL

BSNL is providing comprehensive range of telecom services

in India under four verticals: Fixed Access Land line, Mobile

Services, Broadband Services and Enterprise services. Important

services provided by BSNL are given below.

4.7.1.1 BSNL Landline

1. Basic Land line Services (B-Fone)

BSNL is providing basic land line services through 32,000

electronic exchanges, 326 digital Trunk Automatic Exchanges and

digital Public Switched Telephone Network (PSTN). All these are

interlinked by over 2.4 lakh kilometers of Optical Fiber Cable

(OFC). In basic land line services, BSNL is miles ahead of its rivals,

with 35.1 million Basic Phone subscribers, i.e. 85 per cent share of

the subscriber base and 92 percent share in revenue terms.

2. FLPP - Fixed Line Prepaid

Fixed Line Pre-Paid: FLPP Service enables a subscriber to

make calls from a prepaid account linked to his telephone number.

Unlike the prepaid card 'ITC' service, where the authentication is

done every time through a 16-digit PIN the authentication of FLPP

is linked to his telephone line & the user is not required to dial the

Account number/ PIN for authentication, making it simpler to use.

240

FLPP offers:

• Conversion of fixed line to Pre-Paid and get rid of telephone

bills.

• Easy de-linking from telephone line when prepaid is not

required on any number

• No need to dial Account number/ PIN every time a call is

made.

• STD/ISD Facility

• On Line balance enquiry

3. FLPP PCO

There are four types of FLPP accounts

• PCO FLPP Account

• PCO Local FLPP Account

• General FLPP Prepaid Account

• General FLPP Prepaid + Postpaid Account.

• Permanent telephone connection under Sulabh scheme

PCOs can be allotted to franchisees subject to fulfillment of certain

terms and conditions

4. Phone plus Services

Call waiting, abbreviated dialing, hot line, call transfer (call

forward), automatic wake up /reminder call service, number/ call

hunting service, caller line identification presentation (CLIP) ,

calling line identification (CLI) announcement service, phone bell

241

check, electronic locking for STD/ISD, call conferencing; Shift of

phone with in the same exchange area , from one exchange area to

another exchange area in Multi-Exchange areas , all India shift; Safe

custody of phone when customer is away from the place, transfer

of phone on general transfer on death or due to name change etc.,

transfer on All India Basis , third Party transfers etc., are offered.

5. Dial up Internet Service and ISDN

ISDN has emerged as a powerful tool worldwide for

provisioning of different services like voice, data and image

transmission over the telephone line through the telephone

network.

Intelligent Network Services

6. Universal India Telephone Card (UITC)

Prepaid Virtual Calling Card (VCC)

• This prepaid card enables customer to make local, STD or

ISD calls even from a Local/STD/ISD barred

telephone/mobile.

• This card purchased in one city can be used in any other city

from BSNL landline/WLL/Mobile.

• The calls are charged to the secret number specified in the

card and not to the telephone connection being used. There

will not be any free calls. There are no registration charges

for this service.

242

7. Universal access number

Prepaid Virtual Calling Card (VCC)

• A call to a service subscriber will be paid by the calling party

or split between the calling and called party.

• Service is accessible from networks of other Operators also

There are two types of UAN Services offered to customers:

UAN full charge, UAN split charge.

8. Free Phone (FPH)

Toll Free phone service

• In this a call to a service subscriber will be paid by the called

party.

• All charges are levied on the service subscriber.

• The service is free of any charge to the calling user.

• Service is accessible from networks of other Operators also.

Toll Free phone service is useful to:

• Enterprises or organizations with large customer base or

having call centers.

• Retail products and services Industry.

• Hotels and restaurants.

• Companies providing after sales support. Customers

associate a free phone number with the quality of the

products or services.

• Any business community in general.

243

9. MPLS VPN

Keeping pace with the technological trend to provide latest

and varied services to its customers, BSNL harnesses IP

Infrastructure based on MPLS Technology to offer world class IP

VPN services. MPLS is an acronym for "Multi-Protocol Label

Switching".

10. Tele voting Services

Tele voting is unique service used in collecting public opinion.

• A user, who wishes to vote, can dial the specific voting

number to register his vote of choice.

• Tele voting is possible from STD barred phones also.

Tele voting is a more cost-effective method of democratic

deliberation as it does not require the participants/voter to

meet in person.

Who can subscribe for Tele voting service?

• Media like TV and Press.

• Policy making bodies, political party/activities

• Quiz shows, contests, events, product choices, concepts,

programs, song and beauty contests etc.

11. Other Services

• EPABX under franchise plan

• Centrex facilities

• Audio video conferencing

244

4.7.1.2 BSNL Mobile Services

BSNL is providing the mobile service, throughout the

country. BSNL mobile phone network has spread across the

country with extensive services. BSNL Mobile gives all India

roaming facility (including Delhi and Mumbai) and International

roaming facility to more than 300 networks across the world.

Apart from roaming facility across the globe, additional services

like Short Message Service (SMS), Voice Mail and Internet Access

through WAP (Wireless Application Protocol) can be availed

through BSNL Mobile services. Call transfer, call holding, CLIP

facilities are also available to BSNL cellular service users.

1. BSNL 2G Mobile Services GSM

• Prepaid

• Post Paid

• GSM PCO

2. BSNL 3G Services prepaid and Post paid

3G is the third generation of mobile communications system.

It enhances the services such as multimedia, high speed mobile

broadband, internet access with the ability to view video footage on

mobile handset.

Features of 3G services

• Video calls, watch live TV.

245

• Access the high speed internet, receive emails and faster

download music tracks as well as the usual voice call and

messaging services found on a mobile phone, like person to

person video, live streaming, downloadable video of

entertainment, news, current affairs, sport content and video

messaging

• Tablet data plan

• 3G Data card pre-paid and post paid

• Games with a richer multimedia experience on mobile.

3. BSNL Services Plus - Value-Added mobile phone Services

Some of the value-added services provided by BSNL for its

cellular subscribers are:

• Value Added SIM Based service and SMS based Services.

• Short Message Service (SMS) .

• Group Messaging.

• National & International roaming .

• Call forwarding .

• Corporate Virtual Private Network.

• Call conferencing .

• Friend and Family Talk.

• Call waiting and Call holding facility .

246

4. Unified Messaging Service (UMS):

The UMS system can be categorized as per the below

mentioned functionality:

Voice Mail Service (VMS): Using this feature, the voice mail can

be sent to /received by other subscribers having this facility. The

incoming voice message from the mailbox can be accessed.

FAX Message: This feature will enable the subscriber to

send/receive fax message. The fax can be sent to /received by the

subscriber either through BSNL UMN account or using fax

machine.

E-Mail: This feature will enable the subscriber to send/receive

Email/ SMS/Fax/Voice messages. The subscriber has to get BSNL

UMN account for this feature.

E-Mail to Speech (ETS): This feature will enable the subscriber to

receive the Email on the mobile phone.

5. General Packet Radio Service (GPRS)

GPRS offers high speed data services in GSM network. It

uses Packet Mode Technique to transfer data and provide

connectivity to Internet. Users will be able to browse Internet using

handsets supporting Internet browsing. They will also be able use

their e-mail accounts as is being done through landline Internet

access. Also browsing of Internet from Laptops and Desktop

computers is possible by connecting the computer with the GPRS

247

enabled mobile handset through a data cable or Infrared

connectivity. Using GPRS, subscribers can download Polyphonic

ring tones, MP3 tones, Color logos, Wallpapers, Videos,

Animations, Games, E-mails and more in their mobiles.

6. Wireless Application Protocol (WAP):

WAP provides a standardized way of linking the Internet to

mobile phones. WAP is an application communication protocol.

WAP is used to access services and information. It is inherited from

Internet standards. It is used for handheld devices such as mobile

phones and PDAs. It is a protocol designed for micro browsers. It

enables the creating of web applications for mobile devices. WAP

uses the mark-up language called WML instead of regular HTML.

The WAP facility is available over CSD & GPRS for the cellular

customers.

7. Multimedia Messaging Service (MMS):

Mobile Messaging is evolving beyond SMS text messaging

with the introduction of MMS. MMS delivers a total communication

experience, allowing personalized multimedia content such as

images, audio, text, video and combinations of these. MMS is a

store and forward messaging service that allows mobile

subscribers to exchange multimedia messages with other mobile

subscribers. Even if the recipient phone is not switched on, the

Multimedia Message will be stored and sent to the recipient as

248

soon as he/she switches on their phone. If the recipient has not

subscribed to the MMS service, still he/she can view the MMS

through internet based on the SMS notification he/she gets. The

MMS facility is available over GPRS for the BSNL Mobile

customers.

8. Wireless in Local Loop (WLL)

BSNL provides WLL service in the name of Tarang. WLL is a

communication system that connects customers to the BSNL

Landline network through Public Switched Telephone Network

(PSTN) by using radio frequency signals, instead of conventional

copper wires. This comes with superior voice quality and high

speed data capabilities. The technology used for BSNL WLL

services is CDMA technology and is popular with more than 100

million subscribers worldwide, and the number keeps on

increasing exponentially. WLL Mobile can be operated from any

place by receiving radio signals.

9. BlackBerry services

BSNL offers Blackberry services for its mobile customers. All

the existing mobile subscribers can avail Blackberry services on

existing mobile connection by asking for Blackberry Services.

New subscribers can avail Blackberry services by filling Application

form for mobile connection requesting for Blackberry services also

with mobile connection.

249

10. CDMA Fixed

• Pre-paid

• Postpaid

11. Wi Max 12. CDMA Data Card

• Prepaid

• Post paid

4.7.1.3 Broadband internet services

1. Asynchronous Digital Subscriber Line ( ADSL) Broadband

ADSL service: Sancharnet

BSNL is providing broad band internet service under the

brand name Sancharnet throughout the country, except in

Mumbai and Delhi where Mahanagar Telephone Nigam Limited is

operating. BSNL has emerged as the biggest Internet Service

Provider (ISP) in the country. BSNL provides free all-India roaming

and enables its users to access their accounts using the same

access code and user-identification (ID) from any place in the

country.

BSNL has commissioned a world class, multi-gigabit, multi-

protocol, convergent IP infrastructure through National Internet

Backbone-II (NIBII), that will provide convergent services through

the same backbone and broadband access network. The

Broadband service is available on ADSL technology (on the same

250

copper cable that is used for connecting telephone), on a

countrywide basis.

The services that are supported include:

• ‘Always-on’ broadband access to the Internet for residential

and business customers

• Content based services

• Internet Protocol TV (IPTV)

• Games on Demand

• Music and Video on Demand

• Voice and Video over Broadband

• IP Telephony

• Distance learning

• Messaging: plain and feature rich

• Multi-site MPLS VPNs with Quality of Service (QoS)

guarantees

Major Highlights of Broadband Service:

• High speed Internet connectivity (upto 24 Mbps)

• Virtual Private Network (VPN) service to the broadband

customers

• Dial VPN service to MPLS VPN customers.

• Multicast video services, video-on-demand, etc. through the

Broadband Remote Access Server (BRAS)

251

• Time based or volume based billing with the option to select

the services through web server.

• Pre-paid and postpaid broadband services.

2. Wireless Inter-operability Microwave Access (Wi-Max)

Wi-max technology provides fixed as well as fully mobile high

speed broadband connectivity along with roaming feature. It

provides users a thrilling Internet browsing experience.

Wi-max Services:

• High speed broadband connectivity up to 7Mbps

• Leased Lines

• VPN Services

• Web based Video Conferencing

BSNL offers large variety of Customer Premises Equipment

(CPE). Out door, indoor and USB dongles are offered to facilitate

customer to choose as per their application requirements.

3. Internet Wi-Fi Services

Wi-Fi Services provide high speed internet access at

convenient public locations called as Hot Spots.

Hot Spot Type-A is applicable for public utility services like

Airports, Railway Stations, Universities and their campus.

Hot Spot Type-B is applicable for personal type of services

like Hotels, private owned institutes/ Colleges/ libraries/

252

Universities and campuses of institutions. Prepaid schemes for

Hot Spot B owners on commission basis are available.

4.7.1.4 Enterprise Solutions ( Business Solutions)

BSNL offers above technologies and services tailored to

business applications under brand name of ‘Enterprise solutions’.

Following are the important services under this vertical.

1. Enterprise Voice and Mobility

BSNL permits telephone subscribers to use their own

PABX/EPABX connected to the BSNL network under certain

commercial/technical conditions:

• The type of EPABX should be approved by BSNL

• External extensions outside subscriber's premises will be

permitted only on the approval of the concerned authority

and charged as per departmental tariff. In cases where

external extensions from subscriber owned EPABX are

provided within the premises of the subscribers using their

own cables and wires without crossing any public road, no

charge will be levied.

• Subscriber is free to use the existing internal wiring of the

internal extensions left at the premises after the closure of

the EPABX.

• External extensions from subscriber owned PABX may be

provided by the department and charged. Underground

253

cables and lines may continue to be maintained by the

department since the same may be required for provision of

various telecom services the subscriber may require.

2. Voice Virtual Private Network service (voice VPN)

• VPNs provide connectivity between two or more places using

a previously established, shared network infrastructure

without having to deploy new, dedicated hardware for this

purpose.

• Use this service by dialing short codes to have a private

network using public network resources. This service brings

down telephone bills due to special package tariff for calls

within VPN.

• Good for institutions, Government departments and

businesses. All type of companies, distributors, firms,

institutions, housing society will find this very useful.

3. Integrated Services Digital Network (ISDN)

ISDN is being viewed as the logical extension of the

digitalization of telecommunication network and most developed

countries are in different stages of implementing ISDN.

An ISDN subscriber can establish two simultaneous independent

calls on existing pair of wires of the telephone line whereas only

one call is possible at present on the analog line /telephone

connection. The two simultaneous calls in ISDN can be of any type

254

like speech, data, image etc. The call setup time for a call between

two ISDN subscribers is very short, of the order of 1 to 2 seconds.

ISDN also supports a whole new set of additional facilities, called

Supplementary Services.

Connectivity:

The ISDN subscriber will have full connectivity, nationally, to

other analog telephone subscribers. At present ISDN services are

available to and from India for the following countries:

• Australia ,Austria , Belgium , Canada , Denmark , France ,

Germany, Ireland , Italy , Israel , Japan , Malaysia,

Netherland , Norway, Philippines, Singapore , Switzerland ,

Thailand , U.A.E , U.S.A

Services Offered By ISDN

• Normal Telephone & Fax (G3)

• Digital Telephone -with a facility to identify the calling

subscriber number and other facilities.

• G4 Fax

• Data Transmission at 64 Kbps with ISDN controller card

• Video Conferencing at 128 Kbps

• Video Conferencing at 384 Kbps with 3 ISDN lines

ATM (Asynchronous Transfer Mode) or PVC (Permanent

Virtual Circuit)

255

4. Centrex

It is central office based communication service which

integrates all multi located Telephone lines (Existing and New) into

a single highly functional communication group with more

distinctive features without any additional equipment like EPABX

with the following advantages:

• Highly Cost-effective

• Intercom calls charge free

• No risk of Obsolescence of technology

• No need to waste valuable floor space

• No annual maintenance charges

• Totally flexible

In addition to above distinctive features subscribers can

have all the normal features like - wake up call, call wait, Dynamic

lock, Abbreviated Dialing, Hot line etc.

ISDN line can also be integrated in Centrex.

5. Enterprise Broad Band

• Wi Max

• Wi Fi

• EVDO (Enhanced voice data optimizer) with CDMA

technology

Enterprise Wi Max Service

BSNL offers large variety of Customer Premises Equipment

256

(CPE). This includes Outdoor, Indoor and USB dongles.

Indoor: Best suited for Home/Office users. Also be used in moving

vehicle.

Dongle: Small Dongle can be connected directly to PC / Laptop via

USB port.

Outdoor: Suitable for remote and rural areas. Can be used 15 Km

distance

WiMAX Services:

• High speed broadband connectivity up to 7Mbps

• Leased Lines

• VPN Services

• Web based Video Conferencing

• Internet Wi-Fi

Wi-Fi Services have been introduced for providing high speed

internet access at convenient public locations hereunder called as

Hot Spots

Hot Spot Type-A is applicable for public utility services like

Airports, Railway Stations, Universities and their campus etc

initially for a period of 90 days from the date of its launch.

Hot Spot Type-B is applicable for personal type of services

like Hotels, private owned institutes/ Colleges/ libraries/

Universities and their campuses etc. Prepaid schemes for Hot Spot

B owners on commission basis is also available

257

6. Internet Data Center IDC

1. Managed co location services

BSNL IDC is a service brand name for the data center

services. Currently IDCs are located at Ahmedabad, Bangalore,

Cherthala , Faridabad , Ghaziabad , Hyderabad , Jaipur,

and Ranchi. Ludhiana, Mumbai

Data Center Solutions enable clients to empower their

business by outsourcing their IT operations in a smart and secure

way. This helps clients to concentrate on their core business

management responsibilities.

Co-location refers to co-locating server or hardware at a

Service Provider's Data Center and willing to pay only the rental

charges for Bandwidth, racks space and climate control. Customer

need not to approach BSNL every time they need to do up

gradation or changes in system applications like rebooting or

installation of new programs. BSNL provides complete control and

hence access to co-located server with proper authentication.

2. Managed Hosting Service

It is a type of hosting in which the Customer leases an

entire/or part of server dedicated/or shared with anyone. This is

more efficient, client oriented and flexible. Here Customers are

having full control over the servers and has choice of operating

system, system configuration etc. Customers have to pay according

258

to their requirement about system configurations. It can provide

less overhead and a larger Return on Investment (ROI).

Managed hosting solutions are extensive range of services to

host and manage infrastructure and application through royal

banquet of hosting solutions. It provides a wide portfolio that can

give customers the solution they seek. BSNL can procure, own,

integrate, support, maintain and manage the IT assets needed by

the customer. The customers have to pay for IT service as utility

with full control over the configuration including the choice of

operating system and system configurations. BSNL can provide

server administration as add on service.

3. Managed Network Services

BSNL Managed Network Services is a fully managed Secured

Data services, providing a one-stop shop and a complete

experience that significantly reduce risks and complexities involved

in implementing and maintaining a robust IP network. It brings

together all of a business communications needs in an integrated

offering.

4. Managed IT Services

Clients can use BSNL expertise in managing servers, storage,

security, database, backup and capacity planning, facilities

management, service desk operations and remote infrastructure

management.

259

Dedicated accounts managers to manage:

• System Management

• Storage management

• Database management

• Backup & DR management

• Web/Application management

• Network management

• Managed secure infrastructure

• Facilities management

The primary focus of managed services is to enhance the

efficiency of business management. This can be achieved by

relegating repetitive or time

5. Managed Cloud Services

A cloud service is synonymous concept with the electricity

grid, wherein end-users consume power without needing to

understand the component of devices or infrastructure required to

provide the service.

BSNL service offerings allow businesses to increase

information technology capacity or capabilities quickly without

being bogged down by the expense of buying new infrastructure,

licensing software and training staff.

BSNL Cloud Services includes central computing and data

260

storage IT infrastructure accessible through public internet and by

dedicated or shared or virtual model.

7. Global Audio Conferencing

BSNL has launched Global Audio conferencing Service in

association with British Telecom (BT). It is an easy to use,

reservation-less conferencing service aimed at Enterprise

customers. There are no charges for service subscription. Charges

are only for the usage of the service. Presently Global Audio

Conferencing, Global Web Conferencing are offered

8. BSNL Managed SaaS (Software as a Service) Business Mail

Service

BSNL Managed SaaS (Software as a Service) Business Mail

Service has been launched with M/s Microsoft India Ltd.

9. Managed Leased Line Service (MLLN):

The MLLN is a Managed Leased Line Network system which

is proposed to provide Leased line connectivity. The State-of-the-

art technology equipment MLLN is designed mainly for having

effective control, monitor on the leased line so that the down time

is very much minimized.

10. Speech Circuits (Hot Line or Private Wire) :

Local or Long distance circuits within two locations in a city

or between two different cities provided for the same applicant.

The Terminating equipment at both ends is telephone without

261

dialing facility. Both way signaling and speech is possible.

11. Data Circuits:

Local or Long distance data circuits at different speeds viz.

64 kbps and 2 mbps are available . Data Circuits are of different

types:

1. Point to Point Data Circuits - Local and Long Distance

2. Private Data Network - More than one Local or Long Distance

leased circuits converging on a location such that data from one

leased circuit can be transferred automatically to another leased

circuit for the same subscriber.

3. Closed User Group - Leased circuits can be used by more than

one legal entity if they form closed user group. The following

categories of user groups constitute closed user groups for the

purpose of licensing Private Telecom Networks.

• Travel agents issuing tickets on the member airlines, whose

network they use including the network of a group of member

airlines.

• Computerized Reservations System (CRS) service Producer of

goods and his whole -sale traders /agents.

• Provider of service (not being a telecommunication service)

and his whole-sale traders/agents.

• Providers of the same category of products/service.

• Holding company and its subsidiaries.

262

• Interconnected undertakings.

• Companies under the same management

• Service providers owned by airlines.

• Shared networks of banks for use of Automatic Teller

Machines (ATMs), Electronic Points of Sale (EPOS)/credit

authorization terminals.

• Financial institutions registered primarily to deal in

securities and their agents/dealers.

• Financial institutions registered as Mutual funds and their

agents.

• Financial institutions which are registered as depositories

and their agents/dealers.

• Other non-banking financial institutions

12. Telegraph and Tele-printer Circuits

Local and long distance Telegraph and Tele-printer Circuits.

13. International Leased Circuits:

Provided through VSNL

14. MPLS Based VPN Service

Keeping pace with the technological trend to provide latest and

varied value added services to its customers, BSNL harnesses IP

Infrastructure based on MPLS Technology to offer world class IP

VPN services. MPLS is an acronym for "Multi-Protocol Label

Switching".

263

MPLS VPN is a technology that allows a Service Provider like

BSNL to have complete control over parameters that are critical to

offering its customers service guarantees with regard to bandwidth

throughputs, latencies and availability. The technology enables

secure Virtual Private Networks (VPN) to be built and allows

scalability that will make it possible for BSNL to offer assured

growth to its customers without having to make significant

investments. BSNL would now be geared to provide Bandwidth on

demand, Video Conferencing, Voice over IP (VoIP) and a host of

other value added services .

15. Internet Leased Line

Handsome discounts are available to the Enterprise

Customers on the card rates.

16. VSAT Technology

The network consists of a Hub located at Bangalore and

VSATs located throughout the country. The VSAT communicates to

the HUB through Express AM1 Satellite. All VSATs are connected

in STAR topology and VSAT to VSAT communication is through the

HUB at Bangalore. Ku band VSAT network of BSNL is capable of

providing high speed data transfer up to 2Mbps and voice

communication service covering the entire country.

264

• Some of the BSNL VSAT customers are: PNB, SBI, Vijaya

Bank, Syndicate Bank,

• Bank of MH, Air India, King Fisher Airlines, LIC, ONGC,

IOCL, NHPC,

• NTPC, NIC (State Govt. Projects), Power Grid, GB Pant

Institute, Singareni Collieries, BEML, HLL, Jindal, KLE

Society (Medical), Pacenet,

• ABAN, Trans Ocean and so on.

With V SAT connectivity is made possible even at those

locations, which cannot be connected through conventional media

like copper cable, optical fiber, radio, microwave and any other

wire-line / wireless links. VSAT is a versatile solution, not only as

a reliable primary link for non-feasible areas, but also as a very

successful alternate technology for back link. It also offers plethora

of telecom services viz. data transfer, internet, voice, video etc.

17. Managed Leased Line Network Services

To transmit data between computer and electronic

information devices, BSNL provides data communication services

to its subscribers. The MLLN is a Managed Leased Line Network

system which is proposed to provide Leased line connectivity. The

state-of-the-art technology equipment MLLN is designed mainly for

having effective control, monitor on the leased line so that the

down time is very much minimized. This system will provide

265

security to data transfer between long distant branches of a

company. This is useful especially for banks, information

technology companies etc.

18. Audio Conferencing

Audio Conferencing service of BSNL allows multiple

participants to converse with each other regardless of their location

through the normal fixed line telephone or cellular phone. An

audio conference subscriber can add two or more participants in a

particular conference. The customers can schedule their audio

conferences through the Web or through IVR.

19. Video Conferencing

Video Conferencing service allows multiple participants to

converse with each other regardless their location through the

video end-points or Personal computers. It involves Video and

Audio communication. A video conference subscriber can add two

or more video participants in a particular conference. The

customers can schedule their video conferences through the Web.

20. Web Co-location Services

Web colocation is a solution to house a company's powerful

infrastructure without losing the administrative control on the

equipment. Web Co-location eliminates much of the Infrastructure

costs as well as the maintenance cost of such equipment apart

from avoiding the last mile problems. Web Co-location enables

266

customer's equipment/ Servers to be treated as a part and parcel

of the ISP network enjoying all the facilities as the ISP servers. Web

Co-location provides the infrastructure at a nominal value keeping

the customer comfortable and focused in maintaining the

Applications/Services of the company. Apart from enjoying the

bandwidth and facilities, the customer retains control over his

equipment, software and operating system. The customer simply

leases the physical space and high-grade, tier one network access

from BSNL the hosting provider.

BSNL provides Internet services to the customers located in

about 450 locations. Web Co-location is easy and cost effective.

Typical Applications : E-commerce, financial, B2B, email and other

data storage and retrieval .

21. Web Conferencing Facilities

BSNL Web Conferencing Service enables the customers to

conduct virtual meetings with their partners, suppliers, employers

etc. It has the innovative feature such as persistent meeting rooms,

which simulates physical room environment wherein authorized

users can enter their designated rooms the way they do in physical

meetings. The users can access the rich features, apart from multi-

point, multi-media (Audio, Video & Data) conferencing service.

267

22. Fleet tracking (e track)

An innovative on-line tracking system powered by BSNL to

manage fleets comprising of trucks, car carriers, trailers, tankers,

containers or vehicles moving hazardous and specialty explosive

chemicals etc.

The eTracK vehicle tracking system uses vehicle-mounted,

microprocessor-controlled device which sends periodic messages

from the vehicle to a network command center through

SMS/GPRS. The received data is authenticated and forwarded to

an application server which provides tracking information through

an internet. Customers are provided a user name and password to

access the fleet information on line. The user also has options to

receive tracking information via e-mail, fax or SMS besides the

facility of calling the customer support team on a toll-free

telephone line.

23. Video Surveillance

BSNL in association with M/s Rivacom Pvt. Limited presents

real-time, total video surveillance solutions. Video surveillance over

an IP network allows customer to access from anywhere, and at

any time, super sharp video feeds generated from customer

premises. The service offers a varied range of surveillance solutions

that can be customized according to customer preferences. From

268

site survey and installation to 24*7 supports, BSNL offers total

solutions.

4.8 Rural Telephony – a Growth Factor

The strategy of government for network expansion in rural

areas mainly involves provision of phones in the viable areas

through market mechanisms and through Universal Service

Obligation Fund (USOF) in the non-viable areas.

The Universal Service Policy came into effect from April 1,

2002. Under USOF to create infrastructure in rural and remote

areas, Village Public Telephones (VPTs) and Rural Community

Phones (RCPs) were set up for public access. Having realised the

role of wireless phones because of the convenience, affordability

and the capacity and to reach out to the masses, particularly in

rural and remote areas, efforts have been made under USOF

(Universal Service Obligation Fund) to strengthen infrastructure for

providing wireless phone services in these areas.

In pursuit of mission for better life for rural communities,

backbone infrastructure to provide broadband connectivity to

Village Panchayats, Post Offices, Common Service Centres,

Schools, Colleges and Universities. BSNL has provided 5.76 lakh

Village Public Telephones, 21958 Rural Community Phones, 41

million phone connections and 9.3 lakh broadband connections in

rural areas. Special focus is being given on broadband connectivity

269

to Customer Service Centers, Panchayats, Colleges and

Universities. Broadband accessibility will make it possible to drive

information, knowledge and content to the people in rural India.

A scheme of Rural Community Phones (RCPs) has been launched

Under Bharat Nirman, a target of providing Village Public

Telephones (VPTs) in 66822 uncovered villages. It is envisaged to

provide support for setting up and managing 7871 number of

infrastructure sites spread over 500 districts in 27 states of the

country for the provision of wireless phone services. The

infrastructure so created will be used in the provision of wireless

phone services in the specified rural and remote areas, where there

is no existing fixed wireless or mobile coverage.

4.9 Nature of Competition

In cellular services, the mode of competition has shifted from

acquiring new subscribers to retaining existing customers and

luring away customers from rival companies. As penetration of

cellular services increases each year, avoiding switch over of

customers and maximizing customer loyalty has become a serious

concern for cellular services companies (Kim and Yoon, 2004).

This is true in Indian context too.

270

4.10 Quality of Services and TRAI

Telecom Regulatory Authority of India (TRAI) is the

regulatory body for monitoring the functioning of the

telecommunication service companies in India.

TRAI’s mission is to create and nurture conditions for growth

of telecommunications in the country in a manner and a pace

which will enable India to play a leading role in emerging global

information society. One of the main objectives of TRAI is to

provide a fair and transparent policy environment which promotes

a level playing field and facilitates fair competition. In pursuance of

the above objective, TRAI has issued from time to time a large

number of regulations, orders and directives to deal with issues

coming before it and provided the required direction to the

evolution of Indian telecom market from a Government owned

monopoly to a multi-operator multi-service open competitive

market. The directions, orders and regulations issued cover a wide

range of subjects including tariff, inter connection and Quality of

Service (QoS) as well as governance of the Authority.

• QoS Benchmarks for Cellular Services according to TRAI

TRAI has finalised the QoS standards after extensive

consultation with the stakeholders and also based on the QoS

standards in the licenses of the new entrants and also of the

prevalent international practices. As per the TRAI Act, the

271

Authority is not empowered to directly penalize the service provider

for any act of omissions or for non-achievement of benchmarks

mandated by it in its QoS regulation.

The cellular QoS parameters have been divided into four

categories as given under:

1. network performance

2. Customer helpline

3. billing complaints and

4. Customer perception regarding services.(removed from its

quarterly assessment list (TRAI, 2008).

1. Network Performance

The network performance deals with technical parameters

and includes parameters viz. “Call set up success rate, service

access delay, blocked call rate, call drop rate, measurement of

voice quality, service coverage and congestion in the network”.

These are measured during the Time Consistent Busy Hour

(TCBH).

2. Customer Help Line

The customer help line includes parameters, which reflects

the speed with which a call to the customer care center is

answered by either an IVR system or by an operator.

272

3. Billing Complaints

Billing complaints deals with the percentage of complaints

received related to billing, time taken for the resolution of the

complaints and also time for making the refund to the customer.

4.11 CHALLENGES FACED BY BSNL

BSNL has been facing following challenges:

1. Migration of customers to the competitors.

2. Surrendering of services

3. Loss of revenue and profits

4. Underutilization of the network

5. Surplus staff

6. Low telecom traffic

4.12 INITIATIVES FOR EFFECTIVE MARKETING

Several steps are initiated by BSNL to strengthen its

operations and improve its offers.

Telecom Advisory Committee (TAC)

Telecom Advisory Committee consisting of the members --

local MPs / MLAs and other leaders nominated by the Ministry of

Communications / Department of Telecommunications for

advising the BSNL authorities at district / state level. BSNL

conducts periodical meetings with TAC members, for their

suggestions on telecom services. TAC members represents the

people from their respective constituencies and give feedback on

273

BSNL services for improvement. They also coordinate with other

State/Central Govt. authorities to settle certain issues which are

hindrances for the company to extend their timely services up to

the mark. For example, to acquire land from local

panchayat/Municipality to erect BSNL cell towers, coordination

with PWD/Municipal/R&B in road widening works to avoid

damage to BSNL underground cables etc.

Franchisees and Direct Selling Agents (DSAs)

BSNL has been aggressive in marketing and business

development activities at par with private operators. BSNL

appoints franchisees by open tenders under terms and conditions.

Franchisees operate the business transactions on behalf of BSNL

on commission basis and they have showrooms in their operating

areas. It is noticed that more than 90 per cent of the BSNL

business is carried out by the franchisees. Franchises and DSAs

are paid commission on transaction basis. 90 % commission paid

on sale of SIMs and 5% on the sale of recharge cards and top up

etc.

Promotional strategies

Most of the promotional strategies revolved around capturing

the younger generation who formed a major part of the target

market. Celebrity endorsements, special season offers, festival

discounts, and innovative advertisement campaigns were used by

274

the BSNL as tools to push back the competition and increase their

market share.

i) Roadshows: BSNL is conducting Roadshows and

Reconnection Melas at various commercial and residential

areas in order to attract the defaulters to rejoin with BSNL

by offering various schemes, rebates and rental waive offs

etc. and offer fresh connections on spot, on demand by

completing all nominal formalities.

ii) Attractive tariffs, plans and value offers: BSNL is

continuously introducing innovative and attractive plans and

tariffs to all categories of customers such as employees,

students, housewives, business people etc. which are

attractive and economical. BSNL is drastically slashing pulse

rates on landline, cellular and broadband services.

iii) Advertisement campaigns: BSNL is using print, electronic

and press media to highlight its plans, schemes, offers,

festival bonanzas and tariffs to reach every common man by

giving vast publicity.

Customer care activities

1. Personal attention to corporate customers.

2. Improving the quality of response at call centers.

3. Opening of more customer service centers (CSCs).

4. Providing round the clock service at CSCs.

275

5. Proper training to the CSC staff on behavioral aspects.

6. Providing total information at SINGLE POINT.

7. To analyze the reasons for large scale surrendering of

telephones and reconnect campaigns

Public Grievances/Customer Relations

To sort out grievances and customer relations, BSNL is

organising open house sessions and dial your GM programme and

arranging select customer visits.

i. Holding of Open House Sessions - BSNL conducts Open

House Sessions and Telephone Adalats at SDCA centers (at

District level) to know the grievances of the customers of the

respective SDCA and to settle the issues then and there.

ii. Dial your GM programme – BSNL conducts this programme on

every week to answer the questions/grievances of customers

of BSNL over telephone anywhere in that District/SSA directly

with the SSA Head for a stipulated time. In this programme,

customers directly bring their grievances to the higher

authority to redress their complaints.

iii. Select customer visits - Periodical courtesy visits by higher

officers to high caller customers, commercially important

customers, and corporate customers in order to maintain

better customer relationships, redress the grievances, if any,

and sought their suggestions for providing better services.

276

iv. Sales Promotion schemes such as:

1. Offering incentives such as commission etc to franchisees

and empowering heads of service area/circle/state to offer

sales incentives and target linked comissions matching

with other operators.

2. For PCOs additional incentives were given such as

reduction in the minimum guarantee amount along with

additional opportunities to STD PCO owners to:

• Own a mobile PCO

• Telephone bill collection

• To use STD PCO as cyber café

• Sale of SIM cards, recharge coupons on commission

basis,

• Delivery of telegrams etc.

3. Waiving of installation charges & security deposit on Basic

Phones and waiving of rental for the disconnected period

both on B-Fones and mobiles.

4. Phone-on-Phone scheme in selected cities of the country to

provide new phone within 48 hours of customer demanding

phone through a phone call. No additional security for

mobile phone for existing BSNL customers. The shifting

charges of Telephone within local area or to any part of the

country have been waived off. The restoration of B-Fone

277

without paying rentals for the disconnected period was

introduced repeatedly.

5. Waiving of installation charges for new telephones. Second

Basic phone connection at concessional rate exclusively for

internet & student internet schemes. Various contests have

been organized for customers to promote BSNL service.

6. Waiving of activation charges for commercially important

customers for less than 50 cellular connections.

7. To leverage its marketing efforts, BSNL has tied up with

many companies like IOC, HCL, and NTPC etc. They are its

MOU partners and provide synergistic effect through their

distribution network. A discount as percentage of sales.

These measures taken from time to time have achieved

varying degree of success.

4.13 NEW PROJECTS

In order to improve the competitive advantage, several

projects were launched by BSNL that aim at strengthening BSNL

in different fronts as given in Table 4B.1

Table 4B.1: Projects for Multifaceted Strength of BSNL S.No Name of the

Project Purpose

1 Udaan To rapidly expand broadband subscriber base

2 Vijay To improve sales and distribution management

278

S.No Name of the Project

Purpose

3 Dosti To innovate on PCO business model to generate new revenue sources

4 Kuber To ensure that the revenue earned by BSNL is properly billed to customers and collected from them.

5 Shikhar To develop of an overall strategic agenda across BSNL’s key businesses including customer segmentation, sales channel management as well as product management

6 Smile To improve the effectiveness of BSNL Customer Service Centers.

Source: BSNL Chairman’s internal circular to employees.

Project “UDAAN” – for Fixed Access

The overall objective of Project “Udaan” is to rapidly expand

broadband subscriber base while reducing churn in wire line voice

subscribers and increase realization from existing subscribers.

1. By defining new product / price plans that will address specific

requirements of various customer segments

2. By creating a new sales force to actively reach out to customers

3. Making customer service processes more friendly and

responsive to subscriber requirements

4. Optimizing service delivery process for fast provisioning of

connections

Project teams are motivated with incentives. Field units depute

staff exclusively to respective projects and the team members are

get motivated by financial incentives for better performance along

with daily transport and dearness allowances apart from their

279

usual pay and allowances. Staff is allocated for Product & Pricing,

Sales & Alliances, Customer Service and Service Delivery.

1. Project VIJAY – Mobility

The key objectives are to design channel structure

i) create channel management team

ii) develop improved channel norms to improve retailer

reach, create appropriate incentives and improve

performance monitoring of channel

iii) implement proposed channel structure for franchisee

network

iv) test other recommendations on tariff and handset

bundling, if appropriate

The key activities identified and initiated are:

1. Conduct comprehensive retailer survey to:

− Map existing telecom retail universe in targeted SSAs

− Measure BSNL's reach and extraction in different types of

outlets to identify improvement opportunities

2. Assess evolution of mobile market in pilot geographies over the

next 5 years

− Calculate overall and addressable market potential for

BSNL

280

− Help BSNL set the right targets for the franchisees and

sub-franchisees

3. Design the overall distribution channel set up for mobiles

including franchisees, sub-franchisees and retailers

4. Create a new channel management team comprising BSNL

employees to

− Manage franchisees and sub-franchisees (FMT)

− Interact with retailers (RMT)

5. Revise existing channel management norms and processes (e.g.,

retailer service frequency, ordering and delivery process, audit

norms, etc.)

6. Define key metrics for success and set up a rigorous monitoring

mechanism

3. Project DOSTI

The overall objective of project Dosti is to reduce decline in

BSNL’s PCO business by reducing churn of existing PCO operators

and innovating on PCO business model to generate new revenue

sources (both for BSNL and PCO owner). Specific objectives

include:

1. Increase PCO connections through reduction in churn & sale of

new connections

281

2. Facilitate sale of ‘Broad-Band Enabled’ services model to

existing and new PCO’s

3. Convert PCOs to sell full spectrum of BSNL products & services

The key activities identified and initiated are:

1. In-depth analysis done to identify key issues faced by PCO

subscribers

2. Action plan developed to increase sales and reduce churn

− Improve management of DSA channel

− Improve customer service and pricing

3. Plan developed to facilitate sale of ‘Broad-Band Enabled’

services model

− Central team to create tie ups with banks, vendors

− Marketing support team to help create awareness

4. Project KUBER

The overall objective of project Kuber is to ensure that the

revenue earned by BSNL is properly billed to customers and

collected from them. It is being executed in the targeted telecom

district. Specifically focus is on two areas:

1. Collection of bad debt, with focus on amount less than 2 years

old

2. Identification & billing of leased circuits that are currently not

getting billed

The key activities identified and initiated include the following:

282

1. Collection of bad debt:

− Segmentation of bad debt by age and account size. The

following segments are used:

o Age: 90-180 days, 180-360 days, +360 days

o Account size: Low, Middle, Large, Very Large

− Appointment of collection agencies for bad debt that are in

the ‘Middle’ bucket

− Follow up by BSNL team on accounts that are in the ‘Large’

and ‘Very Large’ buckets

2. Leased circuits billing:

− Process defined for identifying unbilled circuits

− Data collection underway from all the exchanges in the

targeted area.

5. Project SHIKHAR

Objective of the Project – This, is a transformation exercise,

will cover development of an overall strategic agenda across BSNL’s

key businesses including customer segmentation, sales channel

management as well as product management. It will also look at

appropriate strategic initiatives in operations as well as in Human

Resource Management in order to implement the new strategy

effectively. All this is aimed at making BSNL more capable to thrive

in a very competitive market place.

283

Project SMILE

The objective of the Project SMILE aims to improve the

effectiveness of BSNL Customer Service Centers (CSC). The

effectiveness has been defined in terms of the processes being

carried out from CSC, processes which can be introduced from the

CSC, increasing the timings of CSC counters to ease out the rush

at particular hours and make the interactions speedier, fruitful for

the customer as well as BSNL and lastly get out of the “old aunty

like looks” of the CSC, by converting the ambience in lines with the

“corporate looks”. This project is under pilot survey for its final

implementation. Revitalizing the CSCs is essential, as it falls under

tangible services, a significant element of the Service Quality

dimension

4.14 OBJECTIVES OF CRM INITIATIVES AT BSNL

As per the senior employees of BSNL AP Telecom Sector, the

CRM objective BSNL are:

1. To provide the necessary information to the customers as

and when they require it

2. To resolve the complaints registered by the customers in

quick time and ensure that the problems don’t reoccur

3. To deliver the services required by the customers in an

effective manner

284

4. To retain existing customers by providing superior service

5. To identify key customers and establish relationship with the

key customers by focusing on their needs and set service

levels commensurate with their present and future business

potential

6. To collect data on customers regularly and use to customize

the products and services

7. To improve customer service centers. To create customer

complaint management system to enable employees to solve

the complaints lodged by the customers

8. Proactive customer care through systematized contact

schedule such as welcome call, tele calling , first bill call, bill

dispatch, alerts and reminder for payment

9. Training of human resources

10. Retention and churn management

11. Collection and Risk management

12. Fraud Management

Sources:

1. Annual Reports, 2006-07, 2007-08, 2008-09 and 2009-10,

2010-2011, 2011-2012 of Department of Telecommunications

2. Reports of Association of Unified Telecom Service Providers of

India from auspi.in

3. Blue book on Roll out of PROJECT SMILE of BSNL

4. Telecom Regulatory Authority of India (TRAI), Annual Report

2007-08, 2008-09 and 2009-10, 2010-2011, 2011-2012

285

5. ICRA Information Services (2002)

Websites:

http://www.trai.gov.in/

http://www.bsnl.co.in

http://www.telecomindiaonline.com

http://www. icraindia.com

http://www.dot.gov.in/

http://www.coai.in

286

Section - C:

Perceptions of Employees on CRM Practices of BSNL

4.15 INTRODUCTION

It is very important to understand the perceptions of

employees with regard to the objectives and the practices of any

important project or operational area, as the success of

implementation of a programmer depends on how the people

responsible for its success understand and prioritize the objectives

and what is being presently done. In this chapter, the objectives of

CRM programme of BSNL, as perceived by their employees are

studied. It also reports the practices BSNL uses to develop and

maintain customer relationships, as identified by the employees.

This would help in making more practical and meaningful

recommendations to BSNL on CRM practices

4.16 NEED FOR THE SURVEY OF EMPLOYEE PERCEPTIONS:

Survey of BSNL customers in respect of the relationship quality

and its antecedents- loyalty, trust, commitment, satisfaction and

perceived value and study of the influence of gender, age, occupation,

and type of service etc. on the perceptions and relationships of

various constructs and validating the model has helped to know

what respondent customers feel about the five industry specific

service quality and value enhancing practices (tariff, brand image,

287

network coverage, customer service and value added services),

satisfaction, trust , complaint handling etc. It also helped to find

linkage between various constructs of CRM model applied to the

context of BSNL AP Telecom circle.

The objective of this research is not only to prove the validity of

the model but also based on what is found, suggest some measures.

It is necessary to extend the study to gain employee perceptions on

CRM objectives and their priorities and the present practices. This

would provide helpful inputs to make suggestions with focus on both

customer and employee perceptions.

Key Questions:

What are the perceptions of customers on BSNL practices that lead

to quality of CRM?

It is found that the five dimensions- Tariff, Network coverage,

value added services, customer service and Brand image, are

positive and led to moderate satisfaction with BSNL services. – The

complaint behavior is not significant. Complaint processing is not

fast enough at BSNL but BSNL is reliable and cares about

customers and provides predictable services. Commitment is

partial and loyalty is not very strong. Relationship quality is

moderate.

These findings necessitate actions to improve CRM of BSNL

What BSNL employees feel about what they are doing? (practices)

288

Several surveys have revealed that CRM is still a vague

concept when it comes to implementation. Some perceive that CRM

is only a fashionable phrase and there is nothing new in this. They

feel that CRM is already being practiced by the organization in one

way or the other in its current marketing programme, although it

is not called by the name of CRM. Some feel that it is too advanced

and technology oriented and cannot be practiced without help of

IT. They feel that CRM is the job of the top management and

working level people cannot contribute to its success on their own

because of involvement of high technology, budget and other

resources, which are beyond the control of ordinary employee.

During preliminary discussions with the employees of BSNL,

many informed that CRM is not practiced at BSNL and being in a

public sector, BSNL is too slow to adopt such new concepts. Some

felt that CRM is only feasible for the high credence services like

banking, health and financial services where there is a lot

interaction with customers on day to day basis. Some others felt

that CRM is applicable when dealing with large clients and is not

relevant and practical when it comes to large number of retail

customers, who are scattered and too small to justify attention and

resulting expenditure.

Some felt that CRM is software and is too technical for them

to understand and contribute to its practice. As the response was

289

very vague and not satisfactory it was decided to conduct a survey

to understand the perceptions of BSNL employees. The survey is

planned to cover employee perceptions on the practices of BSNL to

understand customer needs, design and deliver products/services

to customers, support the customers in availing BSNL’s offers and

specific efforts to focus on retaining existing customers apart from

attracting new customers, enhance value of their service, increase

customer satisfaction and promote trust. The results indicate that

BSNL employees reasonably perceive what is being done at BSNL

although they are unable to link them to CRM at the outset.

This chapter reports the employee perceptions.

4.17 CRM PRACTICES AT BSNL

A separate questionnaire was administrated to employees.

The questionnaire contains 24 statements pertaining to good

marketing and CRM practices, which are collected from literature

review on CRM practices. The employees are asked to indicate their

agreement on the extent to which they are being practiced at BSNL

on a seven point scale. 160 duly filled questionnaires which are

complete in all respects are received.

CRM practices involve marketing orientation with emphasis

on key customer focus, design of organization around key

customers/segments, employee training, right hard ware, software

290

and right people with expertise. Another key variable is setting

goals and standards and monitoring the performance at customer

touch points. Commitment of time by top management to maintain

customer relationship is another important area. Most important

practice, is rekindling the relationship to regain lost customers.

Maintaining customer data and information at customer touch

point would speed up the customer service. Employee CRM

performance management is pivotal to the success of CRM

implementation. All employees should treat key customer, for that

matter all the customers with care. Measuring the employee

performance and rewarding the good performance based on his

meeting customer need and customer service. Another key item in

CRM practice involves maintaining customer employee relationship

and reinforcing it through customer to customer relationship by

organizing meets events to foster relationship and creating

opportunity to customer to visit contact points for advice and help.

User friendly systems, effective advertisement with emotional

appeal are some of the key elements. Based on literature review,

five variables, namely marketing orientation, design of organization

and resources, setting goals and standards, technology and IT

support, employee CRM performance management are considered

as important and covered in this survey.

291

4.18 PROFILE OF RESPONDENTS

The personal details of employees are not solicited in view of

confidentiality demanded by employees. The sample is divided into

categories based on variables of education, area of work, cadre.

The sample is dominated by commercial graduates/post graduates

(57%), marketing and customer support persons(76%), operations/

technical staff (25%). Supervisors form 50% and balance comprises

of managers (26%) and executives (24%)

Table 4C.1: Profile of Respondents Variable Category Frequency Percentage Education Graduate/ Diploma - Technical 40 25

Graduate/PG – Commercial 91 57

Non – graduate 29 18

Total 160 100

Area of Work Marketing: Customer facing 75 48

Customer Support 60 38

Operations 22 14

Total 157 100

Cadre Manager ( CRO and above) 41 26

Executive ( DE /Sub Div.Engr or equivalent) 39 24

Supervisor ( Sr Section Supervisor / Section Supervisor/JTO or equivalent) 80 50

Total 160 100

4.19 VALIDITY OF QUESTIONNAIRE

The questionnaire consists of 5 Variables each indicating a

practice/ construct and has 24 items . The cronbach’s alpha for all

items is 0.879

292

Cronbach's Alpha

Cronbach's Alpha Based on Standardized Items

N of Items

.879 .880 24

Cronbach’s alpha for individual factors will be less,

compared to all the items clubbed together. For individual factors

Cronbach’s alpha is ranging from 0.551 to 0.705. This is

satisfactory.

4.20 DESCRIPTIVE STATISTICS

Table 4C.2 indicates descriptive statistics of CRM Practices

of BSNL as perceived by respondent employees

As regards mean scores marketing orientation has received

maximum score, followed by employee CRM performance

management, design of organization and resources, setting goals

and standards; technology and IT support .

The inter item descriptive statistics of each factor are detailed

below.

Table 4C.2: CRM Practices of BSNL as Perceived by Respondent Employees: Cronbach’s Alpha for Model Factors

S.No Practice (Factor)

No of items

Cronbach’s alpha

Scale Mean

Scale SD

Factor mean (Max7)

1 Market Orientation

6 0.575 31.58 2.82 5.26

2 Design of organization and resources

4 0.551 20.24 2.115 5.05

3 Setting goals and standards

4 0.621 20.23 2.307 5.06

293

S.No Practice (Factor)

No of items

Cronbach’s alpha

Scale Mean

Scale SD

Factor mean (Max7)

4 Technology and IT support

4 0.705 19.94 2.484 4.98

5 Employee CRM performance Management

6 0.603 30.61 3.176 5.1

7 point Scale :Scale :1-Very strongly disagree ; 7 –Very strongly agree

Market Orientation

Table 4C.3 presents inter item descriptive statistics of factor:

marketing orientation- key customer focus

Ongoing dialogue with key customers, working to customize

offer are given highest score (5.6) followed by understanding

customer needs(5.29), customization of service (5.28), two way

communication (5.24), coordinated effort (5.08)

Table 4C.3: Inter Item Descriptive Statistics of Factor: Market Orientation - Key Customer Focus S. No Market Orientation – Key Customer Focus Mean SD N

1 Through ongoing dialogue we work with our

key customer to customize our offerings 5.60 .892 160

2 My organization provides customized services

and products to our key customers 5.28 .831 160

3 My organization makes an effort to find out

what our key customer needs 5.10 .787 160

4 When my organization finds that customers

would like to modify a product/service, the

departments involved make coordinated

efforts to do so

5.08 .705 160

5 My organization fully understands the needs of our key customers via knowledge learning

5.29 .908 160

6 My organization provides channels to enable

ongoing, two-way communication with our

key customers and us

5.24 .843 160


294

Design of organization and resource

Table 4C.4 presents the inter item descriptive statistics of

factor : Design of Organization and resources

Design of organization and resources having right technical

persons to provide technical support and using IT is given highest

score (5.2) followed by employee training (5.06), customer centered

organization (5.03), sales and marketing expertise(4.96).

Table 4C.4: Inter Item Descriptive Statistics of Factor: Design of Organization and Resources S. No Design of Organization and Resources Mean SD N

1 My organization has the sales and marketing expertise and resources to succeed in CRM

4.96 .834 160

2 Our employee training programs are designed to develop the skills required for acquiring and deepening customer relationships

5.06 .798 160

3 Our organizational structure is meticulously designed around our customers

5.03 .808 160

4 My organization has the right technical personnel to provide technical support for the utilization of computer technology in building customer relationships

5.20 .799 160

7 point Scale:1-Very strongly disagree ; 7 –Very strongly agree

Setting goals and standards

Table 4C.5 presents the inter item descriptive statistics of

factor: Setting goals and standards

Establishing clear business goals (5.19) is followed by

customer centric performance standards( 5.05), commitment of

time for CRM by management (5.01). Customer regain effort is

given lower rating compared to above.

295

Table 4C.5: Inter Item Descriptive Statistics of Factor: Setting Goals and Standards S. No Setting goals and standards Mean SD N

1 Customer-centric performance standards are established and monitored at all customer touch points

5.05 .791 160

2 My organization has established clear business goals related to customer acquisition, development, retention and reactivation

5.19 .912 160

3 My organization commits time and resources in managing customer relationships

5.01 .847 160

4 We have system to rekindle relationships and regain lost customers

4.98 .816 160


Technology and IT support

Table 4C.6 presents inter item descriptive statistics of factor:

Technology and IT Support

Availability of individual customer information at every point

of contact (5.1) is given higher rating compared to maintaining

comprehensive data base(4.99), right software ( 4.94) and hard

ware (4.91).

Table 4C.6: Inter Item Descriptive Statistics of Factor: Technology and IT Support S. No Technology and IT Support Mean SD N

1 My organization has the right software to serve our customers

4.94 .829 160

2 My organization has the right hardware to serve our customers

4.91 .954 160

3 Individual customer information is available at every point of contact

5.10 .720 160

4 My organization maintains a comprehensive database of our customers

4.99 .890 160


296

Employee CRM performance management

Table 4C.7: Inter item descriptive statistics of factor:

Employee performance Management

Highest rating was given to ‘all employees treating key

customers with great care (5.35)’. Measuring employee

performance based on his ability to meet customer requirement

and providing customer service (5.15), responsiveness (5.28) and

customer friendly system (5.08) follow this. On affective elements

like customer to customer communication (4.8) and advertisement

to evolve emotional response (4.95) score is less.

Table 4C.7: Inter Item Descriptive Statistics of Factor: Employee Performance Management S. No Employee CRM performance

Management Mean SD N

1 All people in my organization treat key customers with great care

5.35 .870 160

2 Employee performance is measured and rewarded based on meeting customer needs and on successfully serving the customer

5.15 .810 160

3 My organization’s employees are willing to help customers in a responsive manner

5.28 .897 160

4 Our customer meets encourage employee to customer and customer to customer communication

4.80 .917 160

5 Our systems are customer friendly and easy and convenient to use

5.08 1.028

160

6 Our advertisement campaigns evoke affection and emotional response for customers

4.95 .950 160

7 point Scale: Scale :1-Very strongly disagree ; 7 –Very strongly agree

297

4.21 CRM PERFORMANCE MANAGEMENT MODEL

A model is formulated with employee CRM performance

management as dependent variable and the factors market

orientation, technology and IT Support, goals and standards,

resources and organization as independent variables. Pearson

correlation coefficients are given in Table 4C.8 and are significantly

correlated.

Table 4C.8: Correlation of Model Variables

Constructs

Mark

et

Ori

en

tati

on

Resourc

es

an

d

Org

an

izati

on

Goals

an

d

Sta

ndard

s

Tech

nolo

gy

an

d I

T S

upport

Em

plo

yee

Perf

orm

an

ce

Man

agem

en

t

Market Orientation

Pearson Correlation

1 .521** .391** .474** .360**

Sig. (2-tailed) 0.000 0.000 0.000 0.000

N 160 160 160 160 160

Resources and Organization

Pearson Correlation

.521** 1 .370** .492** .541**

Sig. (2-tailed) 0.000 0.000 0.000 0.000

N 160 160 160 160 160

Goals and Standards

Pearson Correlation

.391** .370** 1 .456** .446**

Sig. (2-tailed) 0.000 0.000 0.000 0.000

N 160 160 160 160 160


Pearson Correlation

.474** .492** .456** 1 .582**

Sig. (2-tailed) 0.000 0.000 0.000 0.000

N 160 160 160 160 160

Employee Performance Management

Pearson Correlation

.360** .541** .446** .582** 1

Sig. (2-tailed) 0.000 0.000 0.000 0.000

N 160 160 160 160 160 **. Correlation is significant at the 0.01 level (2-tailed).

298

Multiple linear regression analysis is carried out to

determine the extent of influence of independent variables on

employee CRM performance management.

Figure 4C.1: Employee CRM Performance Management Model

Hypothesis:

H1: CRM practices have direct influence on CRM performance

management of BSNL employees of AP Telecom circle.

This is sub divided into four sub hypotheses

H1 a: Technology and IT Support directly influences employee CRM

performance management of BSNL AP Telecom circle.

H1 b: Market orientation directly influences employee CRM

performance of BSNL AP Telecom circle

299

H 1c: Setting goals and standards directly influences employee CRM

performance of BSNL AP Telecom circle

H1d: Design of organization and resources directly influences

employee CRM performance of BSNL AP Telecom circle.

ECRMP = constant + b1 TIT + b2 MO + b3 GST + B4 DOS

Where,

ECRMP = employee CRM performance management

b1, b2, b3.. are regression coefficients

TIT = Technology and IT support, MO = Market orientation,

GST = Goals and standards, DOS = Design of organization and

resources

The regression output is presented below

Table 4C.9: Regression outcomes Model Summary



1 .787a .619 .610 .3308 a. Predictors: (Constant), Technology and IT Support, Market orientation, Setting goals and standards, Design of organization and resources ANOVAa Model Sum of

Squares Df Mean

Square F Sig.

1 Regression 27.603 4 6.901 63.075 .000b Residual 16.958 155 .109 Total 44.561 159

a. Dependent Variable: Employee Performance Management b. Predictors: (Constant), Technology and IT Support, Market orientation, Setting goals and standards, Design of organization and resources

300

Coefficientsa



t Sig.

B Std. Error

Beta

(Constant) .903 .312 2.899 .004 Market Orientation .048 .077 .042 .622 .535* Resources and organization

.167 .071 .167 2.339 .021

Goals and Standards

.208 .063 .227 3.294 .001


.411 .056 .482 7.364 .000

a. Dependent Variable: Employee Performance Management * not significant at 0.05 level Discussion:

Table 4C.9 presents regression outcomes.

The value of R square is 0.619. This implies that 61.9

percent variation in employee CRM performance management is

explained by CRM practices through this linear model. This yielded

a significant statistic (F=63.075, p=0.00).

We can conclude that regression is statistically significant at

5% level that means the Employee CRM performance management

is not an occurrence by chance. Further, t and p values of

predictors: technology and IT Support, setting goals and

standards, design of organization and resources (7.364, 0.00;

3.294, 0.001; 2.339, 0.021 suggest that these predictors are

significant and strength of relationship with employee CRM

performance management is satisfactory. Marketing orientation

(t=0.622, p=0.535) is statistically not significant. Table 4C.8 and

301

Table 4C.9 indicate that employee CRM performance management

and technology and IT Support, setting goals and standards,

design of organization, resources and market orientation have

significant and strong association.

Hypothesis H1a to H1d are accepted. The model has a

good fit.

Regression equation is :

ECRMP = 0.903 + 0.414 TIT + 0.048MO *+ 0.208 GST + 0.167DOS

* not significant at 0.05 level.

As per perception of BSNL AP Telecom circle employees, for

their CRM performance Technology and IT has a very important

(0.414) followed by goals and standards (0.208). Next is design of

organization and resources (0.167).

Although market orientation has got maximum rating (mean

value) in CRM practices, employees perceive that marketing

orientation has low contribution to their CRM performance, (with

0.048 coefficient which is lowest value). It can be said that the

BSNL employees perceive technical and operational aspects as

more important contributors for their CRM performance

management than market orientation, which is the basic goal of

CRM. There is a need for BSNL top management to launch

‘customer first’ program to give primacy to customer centric

approach and facilitate employees to appreciate that marketing

302

orientation will contribute to their CRM performance as much as

technical and operational factors do.

4.22 IMPACT OF EMPLOYEE CHARACTERISTICS ON

PERCEPTION ABOUT MODEL VARIABLES

Hypothesis: There is no difference in the perception of

employees on the model variables: market orientation, Design

of organization & resources, setting of goals and standards,

Technology and IT, employee CRM performance (1, 2, 3, 4, 5)

due to employee characteristics of education, cadre, area of

work (a. b, c).

This is sub divided into 15 hypothesis H1(a, b, c); H2(a, b, c)

; H3(a, b, c); H4(a, b, c) and H5(a, b, c) as indicated in the Table

4C.10

Table 4C.10: Influence of employee characteristics on model variables- Summary of hypotheses H1a to H5c

S. No

Model Variable Dependent variables

Employ Characteristics - Independent variables

Education (a)

Cadre (b)

Area of Work (c)

1

Market Orientation H1a H1b H1c

2

Organization & resources

H2a H2b H2c

3

Goals and standards H3a H3b H3C

4

Technology and IT H4a H4b H4c

5 Employee CRM performance

H5a H5b H5c

303

Chi-square test was conducted and the results of testing the

above null hypotheses (sub - hypotheses) are indicated in the table

4C.11. There is a significant difference in the perception of

employees in the following areas:

1. H2a: There is a significant difference in the perception of

employees of BSNL, AP Telecom Circle on their perception on design

of organization and resources due to education.

2. H3a: There is a significant difference in the perception of

employees of BSNL, AP Telecom Circle on their perception on setting

goals and standards due to education.

3. H3b: There is a significant difference in the perception of

employees of BSNL, AP Telecom Circle on their perception on goals

and standards due to cadre.

Table 4C.11: Results of Chi square test on Hypotheses H1a to H5c

S. No

Model Variable Employ Characteristics - Independent variables

Dependent variables Education (a)

Cadre (b)

Area of Work (c)

1

Market Orientation

0.082 0.223 0.58 H1a :NR H1b:NR H1:cNR

2

Organization & resources

0.038 0.874 0.587

H2a:R H2B:NR H2c:NR

3

Goals and standards

0.044 0.042 0.172 H3a:R H3b:R H3c :NR

4

Technology and IT

0.252 0.769 0.895 H4a:NR H4b:NR H4c:NR

5 Employee performance

0.195 0.668 0.724 H5a:NR H5b: NR H5C : NR

NR- Not rejected. There is no difference. R- Rejected: There is difference

304

4.22.1 Difference in the perception due to employee education

on Design of organization and resources – H2a

Analysis of the tables 4C.12 implies that not a graduate

(73%), technical graduates (90%), commercial graduates (93.4)

have rated their agreement with the effectiveness of ‘design of

organization and resources’ as agree and strongly agree.

Table 4C.12: Chi Square test for difference in the perception due to employee education on Design of organization and resources

Crosstab

Design of organization

and resources

Total

Neutral Agree Strongly

agree

Educati

on

Less than Graduate

Count 8 12 9 29

% within Education

27.6% 41.4% 31.0% 100.0%

Technical Graduate

Count 4 23 13 40

% within Education

10.0% 57.5% 32.5% 100.0%

Commercial Graduate

Count 6 55 30 91

% within Education

6.6% 60.4% 33.0% 100.0%

Total

Count 18 90 52 160

% within Education

11.2% 56.2% 32.5% 100.0%

Chi-Square Tests

Value df Asymp. Sig.

(2-sided)

Pearson Chi-Square 10.149a 4 .038 Likelihood Ratio 8.567 4 .073 Linear-by-Linear Association 2.548 1 .110 N of Valid Cases 160

a. 2 cells (22.2%) have expected count less than 5. The minimum expected count is 3.26.

305

4.22.2 Difference in the perception due to education on

setting goals and standards- H3a

Analysis of Table 4C.13 indicates that 83% of less than

graduates, 72% of technical graduates and 92% of commercial

graduates have rated their agreement on setting goals and

standards as agree and strongly agree.

Table 4C.13: Chi Square test for difference in the perception due to employee education on Setting goals and standards-

Crosstab

Goals and Standards Total


agree

Educati

on

Less than Graduate

Count 5 16 8 29

% within Education

17.2% 55.2% 27.6% 100.0%

Technical Graduate

Count 11 16 13 40

% within Education

27.5% 40.0% 32.5% 100.0%

Commercial Graduate

Count 7 52 32 91

% within Education

7.7% 57.1% 35.2% 100.0%

Total Count 23 84 53 160

% within Education

14.4% 52.5% 33.1% 100.0%

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 9.777a 4 .044 Likelihood Ratio 9.437 4 .051 Linear-by-Linear Association

2.534 1 .111

N of Valid Cases 160 a. 1 cell (11.1%) have expected count less than 5. The minimum expected count is 4.17.

306

4.22.3 Difference in the perception due to cadre on setting

goals and standards – H3b.

Table 4C.14 indicates that 78% of managers, 84.6 % of

executives, 90% supervisors rated their agreement on setting goals

and standards as agree and strongly agree.

Table 4C.14: Chi Square test for difference in the perception due to employee cadre on Setting goals and standards

Goals and Standards Total


agree

Cadre

Manager Count 9 14 18 41 % within Cadre

22.0% 34.1%

43.9% 100.0%

Executive Count 6 25 8 39 % within Cadre

15.4% 64.1%

20.5% 100.0%

Supervisor Count 8 45 27 80 % within Cadre

10.0% 56.2%

33.8% 100.0%

Total Count 23 84 53 160 % within Cadre

14.4% 52.5%

33.1% 100.0%

Chi-Square Tests Value df Asymp. Sig.

(2-sided)

Pearson Chi-Square 9.895a 4 .042 Likelihood Ratio 10.259 4 .036 Linear-by-Linear Association

.146 1 .702

N of Valid Cases 160 a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 5.61.

chapter – 4: data analysis and results section – a...

Documents