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Customer satisfaction with Vodafone services in Udham Singh Nagar

Mukesh Pandey* & Geetesh Pant**

Introduction:
Indian Telecom industry is one of the fastest growing telecom markets in the world. Growth rate
of telecom industry in India is 45 percent1. Tele-density in India has increased from 12.7 per cent
in 2006 to 33 per cent in 20082. The booming Indian telecom industry is adding around nine
million mobile connections every month, but the quality of service provided to the subscribers
has been debatable over the last few years. The perceptions and expectations of consumers are
continually evolving, making it difficult for service providers to measure and manage services
effectively. As such, a study was conducted with the following objectives:
1. To analyze the problems faced and the satisfaction level of Vodafone cellular users in
Udham Singh Nagar district of Uttarakhand.
2. To recommend strategies for improving customer satisfaction in accordance with
SERVQUAL3 model.

Review of Literature
Amanjyot Singh et al. (2005)4 conducted a study titled ‘Customer Satisfaction And Quality
Audit Report Of Escotel Mobile Communications Limited’ and suggested that for maximizing the
service quality in service industries the relationship between the dealers and customers should be
strong and pricing should be constantly reviewed. Shikha Ojha(2009)5 conducted a study on
Consumer Awareness of VAS of Telecom Sector of India. She analyzed the contribution of the
mobile phone services not only at the national or state level, but also its involvement in an
individual's life. She found out that the less number of users are aware of all the VAS provided
by the service providers and thus the companies should focus on the awareness campaign.
G.V.Chalam (2005)6 conducted a study on Quality of Services in Indian Telecom Sector: Users’
Perception- An Assessment. This study deals with growth, working and types of services
provided by the Telecom circle in macro environment. The findings of the study reveal that the
expectations of the telecom users are high among the subscribers of recent times because of their
sense of time vs. money value and awareness of their rights. The basic motto of the telecom
department is to provide excellent services to its customers against the present competition from
the private sector. In this direction, it is doing its best to acquire and retain its new and old
customers.

Research Methodology
Study was done at Rudrapur, Pantnagar, Kashipur, Bazpur, Kichcha and Khatima zones during
March to May, 2009 in Udham Singh Nagar District of Uttarakhand. Descriptive study was done.
Internet and Newspapers were used to extract secondary data. Primary data was collected
through non probabilistic convenience sampling from survey of 150 Vodafone users which
included both genders from different occupation, income and age groups. A structured
questionnaire consisting of both open and closed ended questions was used. Data analysis was
done with the help of SERVQUAL model given by Parasuraman, Berry and Zeithaml. Duration
of study was two months.

*Dr. Mukesh Pandey, Btech PGDBM (IIM-Calutta), PhD is an Associate Professor at College of Agribusiness
Management, G.B.P.U.A&T, Pantnagar.
SERVQUAL or GAPS Model
** Geetesh Pant is a 2009 batch MBA (Marketing) student of College of Agribusiness Management, G.B.P.U.A&T,
Parasuraman, Zeithmal and Berry defined five dimensions of service quality determinants viz.
Pantnagar. He is presently working as an Assistant Manager with IDBI Bank Ltd.
1. Reliability: Ability to perform the promised service dependably and accurately.
2. Responsiveness: Willingness to help customers and provide prompt services.
3. Assurance: Knowledge and courtesy of the employees and their ability to inspire trust and
confidence.
4. Empathy: The provision of caring, individualized attention to its customers.
5. Tangibles: Physical facilities, equipment, personnel and communication materials.

According to them,
1) Gap= Expectations- Perceptions
2) Service quality= f (Gap)
The model demands study of following gaps before recommending strategies for improving
customer satisfaction.

GAP 1: Gap between consumer expectations and management perception

GAP 2: Gap between management perception and service quality specification
GAP 3: Gap between service quality specification and service delivery
GAP 4: Gap between service delivery and external communication
GAP 5: Gap between perceived service and expected service
Results and Analysis:

1) Attribute Testing:
A list of 37 attributes which consumers use to evaluate the quality of a cellular service was put
forth the respondents. They were then asked to rate each attribute on a scale ranging from
indispensible, very important, important, less important to not important. This analysis of
consumer behavior resulted in identification of following top 15 attributes in terms of degree of
importance:
 1) Ease of connectivity
2) Good network coverage
3) Easy availability of recharge vouchers
4) Good knowledge of latest schemes among dealers
5) No server break down
6) Timely delivery of message
7) Good network coverage while travelling
8) Information on new or modified services/schemes
9) Quick response to consumer requests/queries/problems
10)Knowledgeable company employees: Correct response to consumers queries
11) No hidden charges
12) Recharge coupons of different denominations
13)Conveniently located dealers/stores
14)Updated, informative website
15)Facilities for hassle-free usage
Customer satisfaction level Attribute
Delighted 1. Timely delivery of message
2. Good knowledge of latest schemes among dealers
3. Availability of recharge vouchers
4. Recharge coupons of different denominations
Satisfied 1. Ease of connectivity
2. No server break down
3. Good network coverage
4. Conveniently located dealers/stores
5. Updated, informative website
6. Information of new or modified services/schemes
Not satisfied 1. Good network coverage while travelling
2. Quick response to request/query/problem
3. Knowledgeable company employees: Correct response
to consumers queries
4. No hidden charges
5. Facilities for hassle-free usage
For each of the above top 15 attributes, customer satisfaction index was calculated. Total
customer satisfaction score was calculated by multiplying the weights (ratings given by the
respondents to a particular attribute) and the frequency (number of consumers) and then
summing up the scores for each weight.

On the basis of the scores obtained, the customer satisfaction level with these attributes was
classified as delighted, satisfied and not satisfied.
These attributes had the highest weighted average score which meant that the consumer decides
about buying and retaining cellular phone services based on their satisfaction with the above 15
attributes.

2) Importance- performance analysis matrix:

The following Importance-Performance analysis matrix is used to rate the various elements of
the service and identify what actions are required. The matrix highlights the different attributes in
accordance to customers’ importance and Vodafone’s performance.
Importance-performance analysis7 consists of a matrix which includes four quadrants:

QUADRANT INTERPRETATION
A Minor service elements that are being delivered in a mediocre way.
B Shows important service elements that are being performed well.
C Minor service elements that are being performed in an excellent manner.
D Shows important service elements that are not being performed at the desired level.

Hi A. OVERKILL
gh
B. KEEP UP THE GOOD WORK
(High performance, High Importance)
(High Performance, Low Importance)

1. Timely delivery of message.

V 1. Vodafone ads instill confidence in the 2. Good knowledge of latest schemes among
O customer. dealers
D
A
2. Vodafone network is available during 3. Availability of recharge vouchers.
F bad weather. 4. Ease of connectivity.
O 5. No servers break down.
N
6. Good network coverage.
E’
S 7. Conveniently located dealers/stores.
8. Updated, informative website.
P 9. Information of new or modified
E services/schemes
R
F 10. Recharge coupons of different
O denominations.
R C. LOW PRIORITY D) CONCENTRATE HERE
M
A (Low Performance, High Importance)
(Low Performance, Low Importance)
N
C
E
1. Good network coverage while travelling.
1. Appearance of employees. 2. Quick response to request/query/problem.
2. Visually appealing promotional 3. Knowledgeable company employees:
material. Correct response to consumers queries.
3. Extended business hours. 4. No hidden charges.
4. Follow up with customers. 5. Facilities for hassle-free bill payment.
Recommendations:

1) Infrastructure sharing is the new game plan for telecom operators be it Airtel, Vodafone,
Reliance or Tata Indicom. Vodafone is currently sharing 33 percent of its infrastructure and
plans to increase it to 66 percent by 20108. For eg. In Pantnagar University, Vodafone has
only one tower installed while Airtel has two towers within the University. Infrastructure
sharing
Lowwith Airtel can surely improve theIMPORTANCE
CONSUMER’S network availability of Vodafone in High
Pantnagar.
Similarly infrastructure sharing with other service providers in other towns of Udham Singh
Nagar will also help in improving reliability of Vodafone services.
2) High frequency transmitters and signal boosters can be installed in important highways
(NH-87 which connects Udham Singh Nagar to Delhi) and in areas of high network
congestion. This will help in improving the network availability while travelling and also
reduce network congestion.
3) According to the Telecom Regulatory Authority of India (TRAI) the 3G license will only be
provided to 5 telecom operators in a particular circle out of which 3 will be private players.
3G license is not yet out for private players. BSNL has already started its operations in India.
Vodafone’s 3G is in testing phase right now. Vodafone can be the first private telecom
operator in India to grab this license. This will certainly give them an edge over the
competitors. Vodafone should also come up with economical 3G supported handsets for the
customers. This will also help in keeping the customers tied up with Vodafone.
4) Researches
Low
indicate that acquiring new customers can cost five times more
CONSUMER’S IMPORTANCE High
than the costs
involved in satisfying and retaining current customers9. Vodafone should start a customer
loyalty program for its customers like it has done in UK. Under this program Vodafone can
tie up with domestic airlines, hotel groups or some retail chains. The customers can earn
bonus points depending upon their monthly usage and tenure of using Vodafone services and
avail the benefits at these points. Loyalty bonus can also be offered in the form of free SMS,
extra talk time, discounted call rates, etc. to the customers.
5) Most of the towns in Udham Singh Nagar don’t have a Vodafone store/mini store. As a result
most of the customers are totally dependent upon dealers. Opening up of Vodafone stores in
these towns will not only allow the postpaid users to pay their bills conveniently but will also
lead to a direct interaction between the customers and Vodafone executives. It will allow the
customers to get answers to all their queries directly and be updated with the latest offers and
best deals available.
6) Other than providing information about the latest schemes, Vodafone’s website should be
used as a medium where the users can register their complaints and get a response within 24
hours of their registration. A provision to keep a track of the status of complaint should also
be provided. The website also needs to be updated very frequently to keep the user informed
of the latest offerings.
7) Hidden charges are mainly involved in using VAS and Vodafone live service (GPRS). These
charges should be properly stated through a confirmation message before activation of any
service. There should be a toll-free number through which the user can get all the details
including charges, validity, etc for using different services provided by Vodafone.
8) Facilities of free calls/SMS after using special add-on tariffs are sometimes not valid on
festive days. In such a case prior information should be provided to the users through SMS.
9) Installation of Kiosks in centralized locations in major cities of Udham Singh Nagar will
allow the post paid customers to pay their bills with ease, change their billing plan, print their
bills, etc. The customers can avail the services through these Kiosks 24x7.
10) A simple procedure for activating/deactivating of VAS through SMS or through the website
should be there. This procedure should also be advertised from time to time.
11)Unwanted calls were identified as one of the biggest problem that was faced by the
respondents. These calls are made to inform the customer about new services or schemes
introduced by Vodafone, but an excess of these calls leads to the irritation of the customer.
The number of these calls should be reduced. An option for deactivating these calls should
also be provided. A toll free number should be provided at which the users can SMS a
particular code asking for the deactivation of such calls/SMS. The entire process should also
be advertised from time to time, so that the customer can be aware of such a process.
12)Training of employees is an integral part for smooth functioning of any business. Vodafone’s
training should mainly focus on behavioral, technical and psychological aspects.
Behavioral Training- The fact that professionals in telecom industry have to interact with a
number of people makes it imperative for them to have effective communication and other
behavioral skills. This should include training on enhancement of communication skills, team
spirit, personal grooming, negotiating skills, consulting skills, attitudinal change, cross-
cultural management and self-management. Quarterly training calendars should be drawn up
to address the behavioral development needs, ranging from preparatory skills for entry level
engineers, to leadership themes for first-time managers to generic skills like conflict
management, influencing skills, cross-cultural skills, etc.
Technical training: The primary target audience groups for this module should be: Technical
sales personnel, Call center staff supporting customers technical queries, Technical staff new
to telecommunications, Corporate IT managers evaluating mobile data , equipment and
software vendors, cellular technology retailers, dealer and systems integrators. It includes
training related to use of different software and analytical tools, understanding the systems
and the processes, understanding the various wireless data applications and services
available. Training individuals and corporates in latest wireless and telecom technologies
including GSM, GPRS, 3G, etc can also be very useful.
Psychological training- The psychological training is one of the forms leading to better self-
knowing and self-esteem of a personality. Social - psychological trainings based on different
role plays, exercises, activities, case studies and problem situations should be provided. Four
key psychological processes i.e. motivation, perception, learning and memory fundamentally
influence consumer responses to various marketing stimuli. It includes exploring oneself,
empathy, assertive behavior development, moral development, training in constructive ways
of solving problem and strategies of coping with burden situations, inculcating friendly
behavior and willingness to cooperate as well as protective behavior characterized by
responsibility and self confidence.
13)Before launching any new schemes/service the executives should be properly trained.
Manuals covering the entire aspect should be prepared and circulated to the executives.
Every minute detail regarding the scheme/service should be mentioned in these manuals.
14) Vodafone can conduct regular customer service audits to monitor quality standards and
customer satisfaction levels.

REFERENCES

1. www.outsource2india.com
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of Service Quality and its Implications for Future Research”, Journal of Marketing, 41-50
4. Singh, Amanjyot, Anisha Khanna, Apar Bansal, Ashish Kumar Varun, Surabhi
Shah, Shweta Juneja and Vivek Sharma, 2005, Customer Satisfaction And Quality
Audit Report Of Escotel Mobile Communications Limited, MBA Project Report
submitted at IIT Roorkee
5. Ojha,Shikha, (2009), “Consumer Awareness of VAS of Telecom Sector of India”, The
Icfai University Journal of Infrastructure,1-14
6. Chalam G.V.,2005, “Quality of Services in Telecom Sector: Users’ Perception- An
Assessment”, Icfai University Journal of Managerial Economics, Volume 3, Issue
2,Pages77-93
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8. The Global Information Technology Report 2008-2009