Global Journal of Management and Business Research: E

Marketing
Volume 16 Issue 3 Version 1.0 Year 2016
Type: Double Blind Peer Reviewed International Research Journal
Publisher: Global Journals Inc. (USA)
Online ISSN: 2249-4588 & Print ISSN: 0975-5853

Consumer Behaviour towards Mobile Tele Services: A Case

Study at Hosur Town
By Hitler. S & Dr. R. Haridas
Periyar University
Abstract- Consumer behavior is the investigation of people, gatherings, or associations and the
procedures they use to choose, secure, and discard items, administrations, encounters, or
thoughts to fulfill needs and the effects that these procedures have on the shopper and society.
An endeavor is made here to evoke the perspectives of the respondents on the purchaser
conduct towards versatile Tele administrations in Hosur town under the study. On the premise of
results, it is recommended that item quality from the advertiser's viewpoint is connected with
correspondence, value, highlight, capacity, or execution of an item.
Keywords: consumer behavior, mobile tele services, opinions of respondents, hosur town.
GJMBR - E Classification : JEL Code : M00

ConsumerBehaviourtowardsMobileTeleServicesACaseStudyatHosurTown

Strictly as per the compliance and regulations of:

© 2016. Hitler. S & Dr. R. Haridas. This is a research/review paper, distributed under the terms of the Creative Commons
Attribution-Noncommercial 3.0 Unported License http://creativecommons.org/ licenses/by-nc/3.0/), permitting all non-commercial
use, distribution, and reproduction in any medium, provided the original work is properly cited.
 Consumer Behaviour towards Mobile Tele
Services: A Case Study at Hosur Town
Hitler. S α & Dr. R. Haridas σ

Abstract- Consumer behavior is the investigation of people, consumers to purchase products and services as per
gatherings, or associations and the procedures they use to their taste, need and of course pocket.
choose, secure, and discard items, administrations,
encounters, or thoughts to fulfill needs and the effects that II. Indian Telecom Industry
these procedures have on the shopper and society. An

2016
endeavor is made here to evoke the perspectives of the In India, Telecommunication begun in 1882 in

Year
respondents on the purchaser conduct towards versatile Tele Kolkata, this was less than 5 years after the invention of
administrations in Hosur town under the study. On the premise the telephone by Alexander Graham Bell. India’s
of results, it is recommended that item quality from the telecom network was notoriously unreliable and only
advertiser's viewpoint is connected with correspondence, 23
available to a small section approximately 3.05 million
value, highlight, capacity, or execution of an item.

Global Journal of Management and Business Research ( E ) Volume XVI Issue III Version I
connections in 1984. Cellular service was launched in
Keywords: consumer behavior, mobile tele services,
November 1995 in Kolkata first after liberalization
opinions of respondents, hosur town.
gradually took place. The Indian telecom industry has
I. Introduction grown rapidly during the last few years. India has the
third largest telecom network in the world and the

C
onsumer behavior is the study of individuals, second largest mobile network with a subscriber base
groups, or organizations and the processes they expanded at a CAGR of 19.5 percent to 1022.61 million
use to select, secure, use, and dispose of over FY2007-15. By end of September, 2015, Urban tele
products, services, experiences, or ideas to satisfy density stood at 152.76 per cent and rural tele density at
needs and the impacts that these processes have on 48.66 per cent.
the consumer and society. It attempts to understand the
decision-making processes of buyers, both individually
and in groups. It endeavors to comprehend the basic
leadership procedures of purchasers, both separately
and in gatherings. It contemplates qualities of individual
buyers, for example, demographics and behavioral
variables trying to comprehend individuals' needs. It
likewise tries to survey impacts on the buyer from
gatherings, for example, family, companions, reference
gatherings, and society when all is said in done.
Consumer behavior alludes to the
demonstration of expending merchandise or
administrations. In the expressions of Glenn Wilters,
“Human behavior refers to the total process by which
individuals interact with their environment”. Consumer
behavior is the procedure by which people choose
whether, what, when, where, how and from whom to buy Figure 1
products and administrations. Knowledge of consumer Source: TRAI, TecgSci Research, Notes: CAGR – Compound
behavior would render monstrous help for arranging and Annual Growth Rate
executing marketing strategy. The shopper figures out The Wireless segment 97.46 per cent of total
what a business is ….Peter F. Drucker. Consumer telephone subscriptions) dominates the market, while
behavior is the act of consuming a goods or service. In the wireline segment account for the rest. In this wireless
simpler, every customer shows inclination towards tele density, GSM services continue to dominate the
particular products and services that available in the wireless market with an 94.91 per cent share(June
market. Customer interest is nothing but willingness of 2015), CDMA accounts for the remaining 5.09 per cent.
As the quickest developing telecommunication industry
Author α: Ph.D. Research Scholar, Periyar University, Salem. in the world, anticipated that Indian telecom services
e-mail: hitlermiba@yahoo.com
Author σ: Assistant Professor, Dept. of Business Administration, market estimated to touch USD 103.90 billion by 2020,
Government Arts College (Autonomous), Salem. growing 10.3 per cent annually from 2015 to 2020.

© 20 16 Global Journals Inc. (US)

 Consumer Behaviour towards Mobile Tele Services: A Case Study at Hosur Town

Besides, projections by a few driving worldwide of subscribers in India will surpass the aggregate
consultancies demonstrate that the aggregate number subscriber count in the China by 2020.
a) Mobile Network Statistics
Table 1 : India’s largest wireless Telecom Operators as on March 31, 2015
Operator Name Wireless Subscriber base (in Millions)
Bharti Airtel 226
Vodafone Essar 184
Reliance Communications 109
Idea Cellular Limited 158
Bharat Sanchar Nigam Limited (BSNL) 77
2016

Tata Teleservices Limited 66

Year

Aircel / Dishnet 81
Telewings 46
24
Source: Indian Telecommunications
Global Journal of Management and Business Research ( E ) Volume XVI Issue III Version I

The underlying business trend of incumbents terms of highest market share and the total market
gaining market-share from fringe players continued with share with these three big giants arrives to 73.4 per
top three players, ie. Bharti Airtel, Vodafone and Idea cent. The three big boys of Indian telecom Bharti Airtel,
scored market-share of 31.4 percent, 23 per cent and Vodafone and Idea – continued to dominate the telecom
19.1 per cent respectively. According to the recent study industry and all three large incumbents increased their
by the Cellular Operators Association of India, Bharti revenue market-share (RMS), mainly because of new
Airtel continues to dominate the mobile segment in subscribers.

Figure-2 : Market Share of Major Mobile Operators as of May, 2016 (in %)

Source: Cellular Operators Association of India; Association of Unified Telecom Service Providers of India
The small players are losing out to the big  (Fixed line subscribers – 25 million and GSM,
players, who have stepped up investments to improve CDMA, WLL-Fixed subscribers – 1027 million)
data penetration and coverage. These small players are  Number of broadband (including wireless)
struggling to keep pace with the changing consumer subscribers – above 145 million as on 29.02.2016.
preferences.  Overall tele density – 829/1000 inhabitants as on
b) Some Facts and Figures on Indian Telecom 29.02.2016.
 Number of telecom (Mobile and Landline)  Total revenues of telecom service providers –
subscribers – 1052 million as on 29.02.2016 Rs.954 million between 2005-06.

© 2016
1 Global Journals Inc. (US)
 Consumer Behaviour towards Mobile Tele Services: A Case Study at Hosur Town

 Telecom equipment production – Rs.954 billion e) Objectives of the Study

between 2007-08. The following are the specific objectives of the
 Smartphone market – 97 million in 2015. present study:
 The Indian wireless services market is led by Bharti • To study the choice of brands by the consumers
Airtel (22.35 per cent), followed by No.2 Vodafone and the reasons for the same and
(18.80 per cent), third ranked Idea Cellular (13.53 • To know the problems faced by the customers with
per cent), then fourth is Reliance Communications their mobile services in the selected town.
(12.05 per cent). • To evaluate respondents’ perception on the cellular
 4G Technology service is estimated to reach a services.
compounded annual growth rate (CAGR) of 26.6%
during the period from 2015-2020. III. Methodology and Sampling
c) Celluar Industry in Hosur The study is based on both primary and

2016
In Hosur, there are 8 cell administration secondary data sources. A questionnaire has been
suppliers. They are IDEA, Bharti Airtel, Vodafone, BSNL, prepared with different questions to examine the socio-

Year
Aircel, Uninor, Tata Indicom and Reliance. Bharti Airtel is economic status and consumer perception on cellular
the market leader in the wireless segment among the services. A sample of 200 respondents has been
players in Hosur Town. selected based on convenience sampling method. The 25
d) Need for the Study sampling includes male and female users from different

Global Journal of Management and Business Research ( E ) Volume XVI Issue III Version I
The accomplishment of telecom industry relies occupations, age, and religion and income background.
on upon reasonable endeavors and attainable The secondary data has been collected from the books,
investments. In a focused business sector, journals, periodicals and magazines. For analyzing the
administration suppliers are relied upon to contend on data, statistical tables, percentages and chi-square test
both cost and nature of administrations furthermore it is were used.
essential for the administration suppliers to meet the
consumers' requirements and desires in cost and IV. Analysis of the Study
administration quality. After globalization of Indian The distribution of the sample respondents on
economy in 1991 the telecom segment stayed a the basis of their sex, age, literacy level, occupational
standout amongst the most event sectors in India. status and monthly family income is presented in the
Recent years have seen and sensational changes in the following tables.
field of telecom. In the last few years of years more
companies both foreign and domestic, entered the cell
service market and offer substantial number of products
and services to the clients.
a) Gender of the Respondents
Table 2 : Gender
Gender No. of Respondent Percentage
Male 130 65%
Female 70 35%
Total 200 100%
Source: Primary data
Inference Though both male and female are aware of the cell
Among the 200 respondents, 130 respondents phone usage, female have some problems in using the
are male and the rest of 70 respondents are female. cell phone due to income and family background.
b) Age Composition
Table 3 : Age Composition
Age Group (years) No.of Respondents Percentage
Below 30 116 58%
31- 45 62 31%
Above 46 22 11%
Total 200 100%
Source: Primary data
© 20 16 Global Journals Inc. (US)
 Consumer Behaviour towards Mobile Tele Services: A Case Study at Hosur Town

Inference c) Education
The highest number of users (58 per cent) The level of education is an important factor in
belongs to up to 30 years age group and 31 per cent building up strong and stable labor force needed by any
were found in between 31 – 45 years age group. The industry. The literacy level of the sample respondents is
remaining 11 percent of the respondents belong to given in Table 3.
above 46 years category.
Table 4 : Educational Qualification
Literacy Level No.of. Respondents Percentage
School Level 26 13%
Under Graduation 66 33%
Graduation 60 30%
Professional Degrees 24 12%
2016

Others 24 12%
Year

Total 200 100%

Source: Primary data
26 Inference d) Occupational Status
The study revealed that 33 per cent of the The occupation of the sample respondents is
Global Journal of Management and Business Research ( E ) Volume XVI Issue III Version I

respondents were under graduates and 30 per cent given in Table 4 below.
were graduation degree holders. 13 per cent of the
respondents have been educated up to school level, 12
per cent were professionals and 12 per cent of the
respondents belong to other category groups.
Table 5 : Occupation

Occupation No. of. Respondents Percentage

Employed 44 22%
Business 48 24%
Profession 46 23%
Student 22 11%
Others 40 20%
Total 200 100%
Source: Primary Data
Inference e) Monthly Income
Out of 200 respondents, 24 per cent are The status and standard of living of a person is
engaged in business, 23 per cent of the respondents determined by the income he/she gets on monthly
belong to professional category, 22 per cent of the basis. Generally, the main source of income of
respondents belong to employed category. 20 per cent respondents is salary. The distribution of the
of the respondents fall under other category and 11 per respondents based on their monthly income is given in
cent of the respondents are students. Table 5.
Table 6 : Monthly Income

Income(Rs) No. of. Respondents Percentage

Up to 10,000 76 38%
10,001-15,000 94 47%
Above 15,001 30 15%
Total 200 100%
Source: Primary Data
Inference have monthly income up to Rs. 10,000. Balance 15 per
It reveals out of 200 respondents, 47 per cent of cent of the respondents are falling under above
the respondents have monthly income rated between Rs.15,001 and above level of monthly income group.
Rs. 10,001 to 15,000 and 38 per cent of the respondents

© 2016
1 Global Journals Inc. (US)
 Consumer Behaviour towards Mobile Tele Services: A Case Study at Hosur Town

f) Consumer Behaviour towards Cell Phone Users g) Motivation

Consumer behavior towards cell phone users Motivation is the driving force within individuals
based on their satisfaction, billing pattern, motivation, that impels them to action. Motivation is the activation or
mobile service, advertisement and attitude of the energization of goal-oriented behavior. Motivation may
respondents, which is presented in the following tables. be intrinsic or extrinsic.
Table 7 : Induced to Buy Cell Phone
Induced By No.of. Respondents Percentage
Friends 120 60%
Relatives 48 24%
Colleagues 15 7.5%
Self Desire 17 8.5%

2016
Total 200 100%

Year
Source: Primary Data
Inference h) Attitude
27
Majority of the respondents are motivated by Consumer attitudes consist of a combination of
their close friends to buy cell phones and 24 per cent of cognitive information and beliefs, emotions and

Global Journal of Management and Business Research ( E ) Volume XVI Issue III Version I
the respondents are motivated by their relatives to buy behavioral intention regarding a consumer product or
cell phones. 8.5 per cent of the respondents having self- service. Attitude is the most important factor for deciding
desire to buy cell phones by attraction and followed by the communication.
7.50 per cent indent from their colleagues.
Table 8 : Opinion of the Respondents on Cell Phone is a Cheaper Mode of Communication
Opinion No. of. Respondents Percentage
Strongly Agree 73 36.5%
Agree 96 48%
Neutral 12 6%
Disagree 14 7%
Strongly Disagree 05 2.5%
Total 200 100%
Source: Primary Data
Inference i) Satisfacation
48 per cent of the respondents agree with the Satisfaction or dissatisfaction is the result of
statement that cell phone is cheaper mode of various attitudes the person holds towards his job,
communication. 36.5 per cent of the respondents related factors and towards life in general. It is an
strongly agree with the statement that cell phone is a important element to create demand for the product. If
cheaper mode of communication. 7 per cent only the consumers are satisfied with their purchase of cell
disagree with the above statement and 6 per cent of the phone, then they themselves act as advertisers and
respondents’ opinion is neutral. Balance 2.5 per cent of publicity to others.
the respondent’s opinion is strongly disagreeing with the
above statement.
Table 9 : Level of Satisfaction with the Mobile Services
Number of Respondents
Level of Satisfaction Total
Male Female
Satisfied 105 60 165
Dissatisfied 25 10 35
Total 130 70 200
Source: Primary Data
Inference female respondents are satisfied with their mobile
Majority of the respondents are satisfied with the services and only 17.5 per cent of the respondents are
mobile services. 82.5 per cent of both the male and dissatisfied with mobile services.
© 20 16 Global Journals Inc. (US)
 Consumer Behaviour towards Mobile Tele Services: A Case Study at Hosur Town

Null Hypothesis mobile services opted by the respondents and their level
The association between the mobile services of satisfaction towards the services of mobile network is
opted by the respondents and their level of satisfaction not significant.
towards the services of mobile network is not significant.
j) Billing Pattern
The calculated χ2 value (0.769) is less than the table
Billing pattern is another dimension of
value (3.84) at 5 percent level of significance for 1 consumer behavior.
degree of freedom, the null hypothesis is accepted and
it could be concluded that the association between the
Table 10 : Opinion of Respondents about Billing Pattern
Number of Respondents
Opinion Total
Male Female
2016

Excellent 24 16 40
Year

Good 38 17 55
Fair 42 18 60
28 Poor 20 16 36
Very Poor 06 03 09
Global Journal of Management and Business Research ( E ) Volume XVI Issue III Version I

Total 130 70 200

Source: Primary Data

Inference (9.49) at 5 percent level of significance for 4 degree of
Majority of the respondents, 30 per cent opinion freedom, the null hypothesis is accepted and it should
that billing pattern of the mobile services is fair. 27.5 per be concluded that the association between the opinion
cent of the respondents opine that billing pattern offered of the respondents on billing pattern and their level of
by mobile service is good. Rest 4.5 per cent of the satisfaction derived by them is not significant. For easier
respondents felt that billing pattern offered by their billing pattern the dealers can arrange for any novel
mobile service is very poor. system, which may attract consumers.
Most of the respondents’ opinion about billing k) Mobile Service Advertisement
pattern is fair, because it is complicated and not Advertising is any paid form of non-personal
understandable to the respondents. Rates and tariffs are presentation and promotion of a product, service, idea,
being changed by different mobile services often. company, person or anything that is offer to the
Null Hypothesis consumers by an identified sponsor. ‘Survival of the
The association between the opinion of the fittest’ is the proverb, which is, practiced everywhere.
respondents on billing pattern and their level of Dealers and the company should choose different
satisfaction derived by them is not significant. The media for advertisement.
calculated χ2 value (2.88) is less than the table value
Table 11 : Opinion of Respondents about Mobile Service Advertisement
Number of Respondents
Description Total
Male Female
Satisfactory 80 40 120
Unsatisfactory 28 16 44
Should be Improved 22 14 36
Total 130 70 200

Source: Primary Data

Inference Null Hypothesis
The above table reveals that majority of the The association between the opinion of the
respondents (60 per cent) are satisfied with the respondents about mobile service advertisement and
advertisement, 40 per cent of the respondents are not their level of satisfaction derived by them is not
satisfied with the advertisement of mobile services and significant. The calculated χ2 value (0.40) is less than
fell that the advertisements should be improved with the table value (5.99) at 5 per cent level of significance
good quality. for 2 degrees of freedom, the null hypothesis is

© 2016
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 Consumer Behaviour towards Mobile Tele Services: A Case Study at Hosur Town

accepted and it should be concluded that the  The Cellular companies can introduce various kinds
association between the opinion of the respondents of sales promotional activities.
about mobile service advertisement and their level of  A company that offers lower charges would be able
satisfaction derived by them is not significant. to attract more customers committing themselves to
the telephone networks and significant number of
V. Findings “call minutes” may achieve.
The following are the findings of the study:
VII. Conclusion
 65 per cent of the respondents who use cell phone
are male. The telecommunication sector, especially the
 The highest number of employees (58 per cent) mobile phone sector, in India is one of the fastest
belongs to up to 30 years age groups. growing business segments of the country, which
 33 per cent of the respondents were under provide a lot of value addition to the society with its

2016
graduates and 30 percent were post graduation service, and creation of employment opportunities. The
degree holders. success of telecommunication industry depends on

Year
 24 percent are engaged in business, 23 per cent of prudent efforts and feasible investments. In a
the respondents belong to professional category, 22 competitive market, service providers expected to
percent of the respondents belong to employed compete on both price and quality of services and it is 29
category. necessary for the service providers to meet the

Global Journal of Management and Business Research ( E ) Volume XVI Issue III Version I
 47 per cent of the respondents have monthly consumers’ requirements and expectations in price and
income rated between Rs. 10,000 to 15,000. service quality. Hosur offers a big market and any
 Three fifth of the respondents (60 per cent) are service provider who offers good service at a
motivated by their close friends to avail the mobile reasonable cost will be able to capture the market in this
services. town. Though by offering concessions and by extensive
 48 per cent of the respondents agree with the advertisement, a provider may capture the market in the
statement that cell phone is cheaper mode of short run, the quality of service provided will only enable
communication. In overall 84 percent agrees that a player to service in the highly competitive market in the
cell phone is offered at cheaper rate. long run.
 82.5 per cent of both the male and female Telecommunication in India is one of the prime
respondents are satisfied with their mobile services support services needed for rapid growth and
offered by the service providers. modernization of various sectors of the economy. The
 Majority of the respondents (30 per cent) opinion policies and regulatory frame works implemented by the
that billing pattern offered by the mobile services is regulator (TRAI), created a potential environment for
at fair level. service providers and has attractive opportunities. The
 Most of the respondents (60 per cent) are satisfied Government has been proactive in its efforts to
with the advertisement given by mobile services. transform India into a global telecommunication hub;
prudent regulatory support has also helped by
VI. Suggestions introducing Digital India program under which all the
 Price plays a significant role in lower income group sectors will be connected through internet.
in terms of purchase decision of the References Références Referencias
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