PRO: To Determine The Factors Influencing The Consumer's: Choice of Television Service Providers
PRO: To Determine The Factors Influencing The Consumer's: Choice of Television Service Providers
PRO: To Determine The Factors Influencing The Consumer's: Choice of Television Service Providers
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ACKNOWLEDGEMENTS
Contents
EXECUTIVE SUMMARY ....................................................................................................... 4 BACKGROUND OF RESEARCH ........................................................................................... 5 RESEARCH OBJECTIVES ...................................................................................................... 6 EXPLORATORY RESEARCH ................................................................................................ 7 SECONDARY DATA COLLECTION ..................................................................................... 8 EXPLORATORY RESEARCH PROCEDURE...................................................................... 10 EXPLORATORY RESEARCH QUESTIONNAIRE ............................................................. 11 EXPLORATORY RESEARCH FINDINGS ........................................................................... 12 QUESTIONNAIRE DESIGN PROCEDURE ......................................................................... 14 PRELIMINARY DECISIONS ................................................................................................ 16 MAIN QUESTIONNAIRE ...................................................................................................... 19 PROJECT FINDINGS ............................................................................................................. 23 FINDINGS IN DETAIL AND SPSS SHEETS ....................................................................... 29 CHI- SQUARE ANALYSIS ................................................................................................... 30 FINDINGS AND RECOMMENDATIONS............................................................................ 42
EXECUTIVE SUMMARY
India has the third-largest pay-TV market in the world at $8 billion, with TV revenues estimated to reach $11 billion by 2011 and $16 billion by 2015. With a penetration level of approximately 135 million television homes in India , pay-TV penetration is expect to grow to nearly 90% in another eight years, with 185 million television-owning homes in 2015. India will join Japan as Asias top pay-TV market by 2015, with the direct-to-home (DTH) satellite television market expected to grow to 38 million by 2015, up from 2.6 million subscribers in 2006. All this is a confirmation to the fact that India has strongly emerged as the third largest television market in the world. From having one public service broadcaster during the earlier days to over 350 channels available today and moving on towards having over 700 channels by 2011, the Indian television industry has come a long way and is expected to grow at a very fast pace during the next couple of years with a number of new TV channels slated to launch their operations. This project aims to find out the preference of Television service providers amongst the people. We segregated our main objective into five secondary objectives; analysis of each of these would lead to the fulfillment of the primary objective. With a large number of players operating in the Television Service Industry, we want to find out in which direction the subscription behavior of the people is heading towards. The main aim of the research is to find out the factors that affect the buying behavior of the people towards DTH and Cable TV Services. Besides this, we also aim to find out the impact of the various value-added services on the selection. Due to the increase in the competition there is an increased spending on advertisements and value addition of the product. So, we need to determine the effects of these on the consumers preference for subscription. We also need to study the factors that are now driving the consumers purchasing decision. The research will use the questionnaire method of survey. The survey will be conducted among the students of the SIC campus and the people of the Hinjewadi area, Pune. The survey will have a total of around 75 respondents. The survey will be done using the Questionnaire Survey Method where questionnaires will be filled by direct interview method. The field survey will be preceded by secondary research and exploratory research. The exploratory research will help in providing a broad framework.
BACKGROUND OF RESEARCH
Television is a huge industry with thousands of programs. It is remarkable to know that almost half of all Indian households own a television which is astonishing given that 77 % of the population earns less than Rs.20/-per day. . The first telecast was made by the state owned Doordarshan on 15th September 1959 in New Delhi. India has come a long way from the good old days of transmission for limited number or hours to a houseful of Indian homes. After 1991 the television industry too went through major transition, thanks to the economic and social reforms undertaken by the Narasimha Rao government. This gave rise to foreign channels like CNN, Star TV and domestic channels such as Zee TV and Sun TV which started broadcasting in India. Presently TV covers more than 135 million homes and there is more than 350 channels to view and is the number source of entertainment in our country. Initially in early 1990s it used be the small business setups that would provide cable to houses that would enable viewership of all channels. That also has seen a change in the recent years. Now if you look around Indian cities, towns and villages you will find mini dishes just about everywhere. These are the DTH or Direct to Home TV receivers. These DTH receivers have been eating into the market share of the cable operators. One of the main reasons for this surge in dishes across India is the cost benefit and very good client servicing. These low costs are mainly due to the increasing competition in the DTH market. Originally when DTH was introduced there wasnt any big competition in the market. Two major players that ruled the DTH market in India were Dish TV and Tata Sky. But today there are more and more players in the sector. Sun Direct, Big TV from the Reliance group, Airtel DTH are a few to mention. Hence, the providers have to come up with innovative pricing schemes and packages for their customers. This is mainly done by keeping TRPs and other television ratings as the main premise of Market Research In addition to this DTH operators are coming up with add on services like for instance the latest one from Tata Sky that offers a viewer the power to plan and control his TV viewing experience with features such as Record Live TV and Pause & Rewind Live TV. Keeping all this in mind, we proceeded to find out the major factors which a consumer might consider during the choice of a television service provider.
RESEARCH OBJECTIVES
Primary Research Objective:
To determine the factors influencing the consumers choice of television service providers.
EXPLORATORY RESEARCH
PRO- To determine the factors influencing the consumers choice of television service
providers. We carried out exhaustive Focus Group Discussions, Depth Interviews and also some openended questionnaires to uncover all the parameters that may have an influence on fulfillment of our Research Objectives. The various variables uncovered for each SRO are listed below: SRO 1: To determine the spending capacity of the customers. Variables: Average income level of the consumer. Willingness level of the consumer. Need for value-added services. Quality of service.
SRO 2: To determine the consumer inclination towards the brand image of the service provider. Variables: Brand awareness. Past experience. Impact of Advertisements.
SRO 3: To determine the most preferred value-added services provided by the service provider. Variables: Social status. Cost of value-addition. Entertainment at will.
SRO 4: To determine the impact of the user interface on the choice of selection. Variables: User profile. Simplicity of the interface. Related to time
SRO 5: To determine the impact of the flexibility in the selection of content on the choice of service provider. Variables: 7
Average Growth over the last few yrs - 18% Expected Average growth over the next few yrs - 35 %
Top DTH Service providers: Tata-sky Airtel Digital TV Sun Direct Dish TV Reliance Big TV DD Direct Videocon D2H
RESEARCH METHODOLOGY
1. DATA COLLECTION METHOD:
The method of data collection that will be used for the purpose of this research is the questionnaire method of survey. The survey will be conducted among the students of SIC and the people of the Hinjewadi, Pune. A total of 75 respondents will be interviewed. The field survey will be preceded by a secondary and exploratory research. The exploratory research is expected to provide a broad framework and also help in setting up hypothesis for testing in the field survey.
2. MEASUREMENT TECHNIQUES:
3. SAMPLE SELECTION
A sample frame will be formed by including consumers belonging to the various segments. Non-probabilistic sampling methods based on convenience and chance would be used to select the sample consumers. The sample size will be approximately 75. A sampling plan would be prepared for selecting and contacting sample members.
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The most preferred value-added services by the respondents are 1. Recording 2. High Definition 3. Video on Demand 4. Live-Pause 75% of the respondents felt the need for flexible channel selection packages. 75% of the respondents go for brand image while selecting their service provider. A large majority of the respondents preferred services like programme search, 7- day programme schedule and programme reminders. The average amount that a respondent was willing to pay per month is captured below.
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The respondents were asked to rate the various service providers on a scale of 1 to 10. Based on the cumulative score of the respondents, we ranked the service providers and the rankings are as follows. Rank 1 2 3 4 5 Service Providers Tata Sky Airtel BIG TV Dish TV Sun TV
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Other than above factors, questions were formed to gather data directly related to PRO. Decisions regarding Question Content were taken, i.e., whether the data generated by the answer to the question is really needed. Decisions regarding Question Phrasing were taken. Response-format was finalized. Question sequencing was done Questionnaire layout was done. Pre-testing involved debriefing and protocol analysis. A Revision was made for the entire content.
SAMPLE PLANNING:
The aim of the research was to get an overview of the various factors influencing the choice of the television service providers. There has been a deliberate attempt to ensure that the respondent base encapsulates a mix of students and working population. Further, an attempt has been to maintain the gender ratio so that the survey results will be accurate and will convey the actual picture.
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ANALYSIS TECHNIQUES:
For the purpose of analysis the following techniques have been used: Microsoft Excel Spreadsheet: All the data collected have been put in a summarized form in a MS Excel spreadsheet. SPSS: In order to check the relation among different variables SPSS is used. Cross tabs are formed to determine the authenticity of null hypothesis.
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PRELIMINARY DECISIONS
SRO-1 To determine the spending capacity of the customers. Information Needed Respondent Group Technique Used: Students Structured/Direct/Personal Average income level of the Working Structured/Direct/Mail consumer. Professionals Students Working Professionals Students Working Professionals Students Working Professionals Structured/Direct/Personal Structured/Direct/Mail Structured/Direct/Personal Structured/Direct/Mail Structured/Direct/Personal Structured/Direct/Mail
Quality of service.
SRO-2 To determine the consumer inclination towards the brand image of the service provider. Information Needed Respondent Group Technique Used: Students Structured/Direct/Personal Brand Awareness Working Professionals Structured/Direct/Mail Students Working Professionals Students Working Professionals Structured/Direct/Personal Structured/Direct/Mail Structured/Direct/Personal Structured/Direct/Mail
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SRO-3 To determine the most preferred value-added services provided by the service provider. Information Needed Respondent Group Technique Used: Students Structured/Direct/Personal Working Structured/Direct/Mail Social status. Professionals Students Working Professionals Students Working Professionals Structured/Direct/Personal Structured/Direct/Mail Structured/Direct/Personal Structured/Direct/Mail
Cost of value-addition.
Entertainment at will.
SRO-4 To determine the impact of the user interface on the choice of selection. Information Needed Respondent Group Technique Used: Students Structured/Direct/Personal Working Structured/Direct/Mail User Profile Professionals Simplicity of the interface Students Working Professionals Structured/Direct/Personal Structured/Direct/Mail
SRO-5 To determine the impact of the flexibility in the selection of content on the choice of service provider. Information Needed Respondent Group Technique Used: Students Structured/Direct/Personal Working Structured/Direct/Mail Channel Packages Professionals Students Working Professionals Structured/Direct/Personal Structured/Direct/Mail
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SCREENING QUESTIONNAIRE
Kindly fill up the following questionnaire to help us proceed with further research regarding the factors affecting the consumers selection of television service providers
1. Do you watch television? a. Yes b. No 2. Which type of television service provider do you have? a. Cable TV Services b. Satellite TV Services c. None
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MAIN QUESTIONNAIRE
1. Who is your service provider? o Tata-sky o Bharthi Airtel o Reliance Big TV o Dish TV o Others (specify) _________________________ 2. Overall, how satisfied are you with your service provider? o Very unsatisfied o Unsatisfied o Somewhat satisfied o Very satisfied o Extremely satisfied 3. While opting for a new television service provider, which of the following will you prefer? o Tata-sky o Bharthi Airtel o Reliance Big TV o Dish TV o Sun TV o Others (specify) __________________________ 4. The following are the value added services which you look for from a television service provider. Rate them on a scale of 1 to 5 according to your preference. (1-most desirable; 5- least desirable) a. Recording 1 2 b. Live Pause and Rewind 1 2 c. Video on Demand 1 2 d. High Definition 1 2 e. Radio channels on TV 1 2 f. Internet on TV 1 2 g. Interactive services. 1 2
3 3 3 3 3 3 3
4 4 4 4 4 4 4
5 5 5 5 5 5 5
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5. The following are attributes which I look for from my service provider. Rate them on a scale of 1 to 5 according to your preference. (1-most desirable; 5- least desirable) a. Programme Search 1 2 b. 7-day Programme schedule 1 2 c. Programme Reminder Service 1 2 d. Favorite channel option 1 2 e. Programme Banner 1 2
3 3 3 3 3
4 4 4 4 4
5 5 5 5 5
6. How likely are you to recommend your service provider to others? o Definitely will recommend o Probably will recommend o Not Sure o Probably will not recommend o Definitely will not recommend o Refuse to answer
7. How important is television service to you in your daily life? Less important 1 2 3 4 5 Very Important
8. On an average how long do you watch the television on a daily basis? o < 1 hr o 1-2 hrs o 2-3 hrs o 3-4 hrs o >4 hrs
9. Approximately how much would you spend for your new television service connection? o Less than 500 o 501-1000 o 1001-2000 o 2001-5000 o 5001 and above
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10. Approximately how much would you spend on a monthly basis on television services? o Less than 150 o 150-250 o 251-350 o 351-500 o 501 and above 11. o o o o o Why do you prefer a particular brand of Service over another? Lower Price Easy to use Better service Availability in market Product Features
12. It is very important for me to have an option to customize the look of my TV home screen theme o Yes o No 13. Which of the following do you prefer to watch the most? o Sports o News o Entertainment o Movies o Edutainment 14. How do you choose your channel subscription? o Event based o Seasonal o Throughout the year 15. Does your service provider provide pay per view option? o Yes o No 16. Have you ever changed your service provider before? o Yes o No 17. If yes, why? o Poor service o Expensive o Lack of channel flexibility o Others (specify) _______________________ 18. Brand ambassador impacts on your buying behavior. Strongly Agree 1 2 3 4 5 Strongly Disagree
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19. Promotional offers have an impact on your selection of service providers. Strongly Agree 1 2 3 4 5 Strongly Disagree
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PROJECT FINDINGS
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GENDER DISTRIBUTION
No. of Males = 45 No. of Females = 30
AGE DISTRIBUTION
AGE
19 21 21 23 23 25 25 27 Above 27
FREQUENCY
7 11 35 18 4
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NUMBER OF PEOPLE
13 12 18 4 8 20
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Programme Banner
Series1
Programme Search
Programme Reminder 0 5 10 15 20 25
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Channel Subscription * Service Providers Crosstabulation Count Service Providers Bharthi Airtel Channel Subscription Event Based Seasonal Throughout the year Total 3 3 11 17 Dish TV 4 1 1 6 Cable TV 2 4 1 7 BIG TV 2 4 4 10 Tata Sky 9 6 20 35 Total 20 18 37 75
Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 14.148
a
df 8 8 1
13.258 .026 75
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Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 14.148
a
df 8 8 1
13.258 .026 75
P critical= 0.10
P observed = 0.078
At 90 % confidence level, since Pobserved < Pcritical, therefore we reject the null hypothesis implying that there is significant influence of channel subscription on the choice of service providers at 90% confidence level.
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VAS * Service Provider Crosstabulation Count Service Provider Bharthi Airtel VAS High definition Interactive Services Internet on TV Live Pause Recording Video on Demand Total 4 1 1 5 5 1 17 Tata Sky 9 1 3 9 5 8 35 Dish TV 3 0 0 2 0 1 6 BIG TV 3 2 0 1 2 2 10 Cable TV 1 4 0 1 0 1 7 Total 20 8 4 18 12 13 75
Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 29.364
a
df 20 20 1
26.754 1.362 75
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P critical= 0.10
P observed = 0.081
At 90 % confidence level, since Pobserved < Pcritical, therefore we reject the null hypothesis implying that there is significant influence of value added services on the choice of service providers at 90% confidence level.
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Case Processing Summary Cases Valid N Expenses * Service Provider 75 Percent 100.0% N 0 Missing Percent .0% N 75 Total Percent 100.0%
Expenses * Service Provider Crosstabulation Count Service Provider Bharthi Airtel Expenses < 150 151 250 251 350 351 500 Total 2 14 1 0 17 Tata Sky 8 15 8 4 35 Dish TV 3 3 0 0 6 BIG TV 0 7 1 2 10 Cable TV 3 4 0 0 7 Total 16 43 10 6 75
19.824
12 12 1
24.306 .152 75
P critical= 0.10
P observed = 0.070
At 90 % confidence level, since Pobserved < Pcritical, therefore we reject the null hypothesis implying that there is significant influence of monthly expenses on the choice of service providers at 90% confidence level.
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Case Processing Summary Cases Valid N Viewing time * Service provider 75 Percent 100.0% N 0 Missing Percent .0% N 75 Total Percent 100.0%
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Viewing time * Service provider Crosstabulation Count Service Provider Bharthi Airtel Viewing Time < 1 hr 1 - 2 hrs 2 - 3 hrs 3 - 4 hrs > 4 hrs Total 7 7 2 0 1 17 Tata Sky 8 19 6 1 1 35 Dish TV 1 1 1 2 1 6 BIG TV 3 3 3 1 0 10 Cable TV 3 2 1 1 0 7 Total 22 32 13 5 3 75
Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 18.541
a
Df 16 16 1
16.267 .652 75
P critical= 0.10
P observed = 0.293
At 90 % confidence level, since Pobserved > Pcritical, therefore we do not reject the null hypothesis implying that there is no significant influence of television viewing time on the choice of service providers at 90% confidence level.
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Case Processing Summary Cases Valid N UI* Service provider 75 Percent 100.0% N 0 Missing Percent .0% N 75 Total Percent 100.0%
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UI * Service provider Crosstabulation Count Service provider Bharthi Airtel UI Programme Search 7 day Programme Schedule Programme Reminder Fav Channel Option Programme Banner Total 3 7 2 3 2 17 Tata Sky 11 6 2 13 3 35 Dish TV 4 1 0 0 1 6 BIG TV 1 3 4 1 1 10 Cable TV 1 2 0 2 2 7 Total 20 19 8 19 9 75
Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 25.930
a
Df 16 16 1
24.565 .423 75
P critical= 0.10
P observed = 0.055
At 90 % confidence level, since Pobserved < Pcritical, therefore we reject the null hypothesis implying that there is significant influence of user interface features on the choice of service providers at 90% confidence level.
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BA * Service provider Crosstabulation Count Service provider Bharthi Airtel BA Yes No Total 1 16 17 Tata Sky 15 20 35 Dish TV 0 6 6 BIG TV 2 8 10 Cable TV 5 2 7 Total 23 52 75
Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association No of Valid Cases 16.017
a
df 4 4 1
18.667 3.152 75
P critical= 0.10
P observed = 0.003
At 90 % confidence level, since Pobserved < Pcritical, therefore we reject the null hypothesis implying that there is significant influence of brand ambassadors on the choice of service providers at 90% confidence level.
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