Switching behaviour in Indian consumers (Telecommunication)

Contents:- Introduction. Problem Identification. Objectives of the study. Scope of the study. Concept of Consumer Switching Behaviour. Current Scenario. Telecom Companies in India. Brand Switching in Telecom Industry. Factors affecting switching behaviour in Telecom Industry. Contribution. Conclusion.

INTRODUCTION:- The Indian Telecommunications Industry is one of the fastest growing in the world. Today,the Indian telecom network is the second largest in the world after China. The growth and development in information technology and mobile devices have made the Indian mobile phone service market highly competitive. Hyper competition ,availability of number of subscriber option for consumers,diverse tariff rates offered by each player, led consumers to switch the service providers.

Problem Identification:- Consumers have every chance of switching the mobile service provider due to industry expansion. Mobile industry is growing technically and becoming economical due to competitor's innovative and attractive services. Number of players in this sector is increasing ,so each one of them wants to over play others to attract the consumers. Mobile industry has become economic with the end result that consumers have less switching cost.

Objectives of the study:- To identify the factors that affects the consumers into switching the service provider. To find the most preferred service provider in india To find the major influences that goes into the decision of purchasing a SIM Card. To find the likeliness of switching the service provider.

Scope of the study:- The present study can be extended to other geographical areas. It can be extended to study the usage of mobile services of different age groups and accordingly new plans can be formulated. This study can be extended to understand the switching behaviour of a particular cellular service provider.

Concept of consumer switching behaviour :- Consumer-switching behaviour refers to customers abandoning a product or service in favour of a competitor's. For example, a customer might move funds from one bank to another if she is dissatisfied with the customer service at the first. Consumer-switching behaviour is an ever-present danger for a business -- if you don’t keep your customers happy, your competitors might directly benefit.

Current Scenario:- Telephone subscribers in india increased from 957.61 million at the end of September,2014 to 962.63 million at the end of October, 2014 ° Where Urban subscription increased from 569.56 million to 570.58 million. ° Rural subscription increased from 388.05 million to 392.05 million. ° Monthly growth rate:- ° Urban = 0.18% and Rural = 1.03%. ° Share of Urban subscribers = 59.27% & Share of Rural subscribers = 40.73% .

Leading Telecom Companies in India. 1.Bharti Airtel. Ownership:- Privately- held by Sunil Bharti Mittal. Date of establishment:- 7th july 1995 Market Share:- 22.74% 2.Vodafone. Ownership:- Privately-held by Vodafone group. Date of establishment:- 1994 Market Share:- 18.69%

3.Idea. Ownership:- Privately-held by Aditya Birla Group and Others. Date of establishment:- 1995 Market Share:- 15.43% 4.Reliance. Ownership:- Privately- held by Reliance Group. Date of establishment:- 2004 Market Share:- 11.84%

5.BSNL. Ownership:- Publically- held by Government of India. Date of establishment:- Incorporated on 15th September 2000. Market Share:- 9.32% 6.Aircel. Ownership:- Privately-held by Maxis Communications and Sandya Securities and Investments. Date of establishment:- 1999 Market Share:- 8.15%

Access Service Provider - wise Market Shares in the Wireless Subscribers. as on 30th September,2014

BRAND SWITCHING IN TELECOM INDUSTRY When consumers become committed to a brand and make repeat purchases over time,it exhibits a brand loyalty towards the brand. Loyal customers will consistently purchase products for theirpreferred brands, regardless of convenience or price. Consumer in general can be classified as:- ° Hard core loyal :-Loyal to single brand. ° Split loyal :-Loyal to 2 or 3 brands. ° Shifting loyal :-Keep shifting their loyality. ° Switchers :- Exhibit no loyality. In simple words, Brand switching is behaviour of the consumers who shift from buying his regular brand to a different brand.

Factors affecting switching behaviour:- Switching cost:- ° Cost incurred when a customer changes from one supplier to another. Price/Calling Charges:- ° Influential factor for inducing switching especially young consumers. Quality of service:- ° Criticalquality -voice quality, network available, VAS etc. ° Support quality -customer care,online and offline recharge facility.

Innovation and Technology Upgrades:- ° Recent technology upgrades like 3G and 4G Network. ° Innovative ideas like hellotune earlier and now streaming videos for low price. Brand Image:- ° The consumers are conscious of using particular brand. Trust and Reliability:- ° Essential for operators to retain and attract consumers.

Recommendation/Word of Mouth:- One off Incidences:- ° Bill shock, change of plan or long interrupted service from operator. Recommendation/Word of Mouth:- ° Higher weight in selecting a service operator. ° Encourages consumer to choose service from operator serving their family and friends.

CONTRIBUTION:- This study contributes to the literature of marketing as well as consumer behaviour. Their relevant variables - help to understand the approach of people towards buying the services of mobile service providers.

CONCLUSION :- In this study the main antecedents of switching behaviour that came into light are:- ° Customer satisfaction ° Relationship of service provider and customer(in terms of duration and service feedback). Various studies conducted in India emphasize the role of :- ° Customer service in terms of network quality. ° Easy plans along with VAS(Value Added Services). The perception of quality influences the extent of loyality.

THANKS A Presentetion by:- Harish Sambyal.