CHAPTER -1

 INTRODUCTION

 CUSTOMER SATISFACTION MEASUREMENT

 METHODLOGIES

 IMPROVING CUSTOMER SATISFACTION

 CUSTOMER SATISFACTION SURVEYS

 BENEFITS AND CHALLENGES

CHAPTER -2

 RESEARCH METHODLOGY

 METHODS OF RESEARCH

 NEEDS OF THE STUDY

 OBJECTIVES OF THE STUDY

 LIMITATIONS OF THE STUDY

CHAPTER -3

 INDUSTRY PROFILE

 COMPANY PROFILE

 PRODUCT PROFILE

CHAPTER -4

 DATA ANALYSIS

INTERPRETATION

CHAPTER -5

 FINDINGS & SUGEESTIONS

 BIBLOGRAPHY

 QUESTIONNAIRE
INTRODUCTION
Why Organizations Focus on Customer Satisfaction

Businesses monitor customer satisfaction in order to determine how to increase their customer
base,

customer loyalty, revenue, profits, market share and survival. Although greater profit is the primary
driver,

exemplary businesses focus on the customer and his/her experience with the organization. They work to

make their customers happy and see customer satisfaction as the key to survival and profit. Customer

satisfaction in turn hinges on the quality and effects of their experiences and the goods or services they

receive.

Customer Satisfaction

The definition of customer satisfaction has been widely debated as organizations increasingly
attempt to

measure it. Customer satisfaction can be experienced in a variety of situations and connected to both
goods

and services. It is a highly personal assessment that is greatly affected by customer expectations.
Satisfaction

also is based on the customer‘s experience of both contact with the organization (the ―moment of
truth‖ as it

is called in business literature) and personal outcomes. Some researchers define a satisfied customer
within

the private sector as ―one who receives significant added value‖ to his/her bottom line—a definition
that may

apply just as well to public services. Customer satisfaction differs depending on the situation and the
product

or service. A customer may be satisfied with a product or service, an experience, a purchase decision, a

salesperson, store, service provider, or an attribute or any of these. Some researchers completely avoid

―satisfaction‖ as a measurement objective because it is ―too fuzzy an idea to serve as a meaningful

benchmark.‖4 Instead, they focus on the customer‘s entire experience with an organization or service
contact

and the detailed assessment of that experience.

For example, reporting methods developed for health care patient surveys often ask customers to
rate

their providers and experiences in response to detailed questions such as, ―How well did your
physicians

keep you informed?‖ These surveys provide ―actionable‖ data that reveal obvious steps for
improvement.

Customer satisfaction is a highly personal assessment that is greatly influenced by individual

expectationsSome definitions are based on the observation that customer satisfaction or dissatisfaction
results from

either the confirmation or disconfirmation of individual expectations regarding a service or product. To

avoid

difficulties stemming from the kaleidoscope of customer expectations and differences, some experts
urge

companies to ―concentrate on a goal that‘s more closely linked to customer equity.‖ Instead of asking

whether customers are satisfied, they encourage companies to determine how customers hold them

accountable Customer satisfaction, a business term, is a measure of how products and services supplied
by a

company meet or surpass customer expectation. It is seen as a key performance indicator within
business

Customer satisfaction depends on the product‘s performance relative to a buyer‘s expectation, the

customer is dissatisfied. If preference matches expectations, the customer is satisfied. If preference is

exceeds expectation, the customer is highly satisfied or delighted outstanding marketing insurance
companies

go out of their way to keep their customer satisfied. Satisfied customers make repeat purchases
insurance

products and tell other about their good experiences with the product. The key is to match customer

expectations with company performance. Smart insurance company‘s aim to delight customers by
promising
only what they can deliver, then delivering more than the promise. Consumers usually face a broad
array of

products and services that might satisfy a given need. How do they choose among these many
marketing

makers offers? Consumers make choices based on their perception of the value and satisfaction that
various

products and services deliver.

Customer value is the difference between the values the customer gains from owning and using a
product

and the costs of obtaining the products customers from expectations about the value of various
marketing

offers and buy accordingly. How do buyers from their expectations? Customer expectations are based
on

past buying experiences, the opinion of friends and marketer and competitor information and promises.

Customer satisfaction with a purchase depends on how well the product‘s performance lives up to
the

customers‘ expectations. Customer satisfaction is a key influence on future buying behaviour. Satisfied

customers buy again and tell others about their good experiences dies-satisfied customer‘s of ten
switches to

competitors and disparage the products to others. An insurance provider open only to active duty,
retired

and separated military members and their immediate families and therefore not included in the
rankings,

achieved a satisfaction ranking equal to that any insurance company.

In general, customer satisfaction with auto insurance providers decreased significantly, with 20 of the

21 companies surveyed decreasing in satisfaction from the previous year. Insurance is the only carrier
that

did not experience a decline in satisfaction. Though consumers report their insurance carriers are
resolving
their claims and problems faster. Businesses survive because they have customers who are willing to
buy

their products or services. However, many businesses fails to ―check in‖ with their customers to
determine

whether they are happy or not and what it will make to make or keep them happy.

According to U.S consumers‘ affairs department, it costs five times more to gain a new customer than

to retain an existing one. Other studies have repeated that with just a five percent increase in Customer

retention‘s a firm can raise its profitability customers spend salary at first, but with succeeding years of
good

experience, they will spend increasingly more.

Depending on the industry and the nature of the bad experience, dissatisfied customers will complain

to 10 to 20 friends and acquaintances, which is three times more than those with good experiences are.

Hence, the negative information is influential, and consumers generally place significant weight on it
when

making a decision. If that is not the reason enough, fierce competitor is needed more and more to

differentiate firms from one another. With technology available to virtually every one today, the
traditional

features and cost advantages are no longer relevant. Still product and service quality provides an
enormous

opportunity to distinguish a firm from the rest. The Japanese have recognized this and have though us to

expect quality. Today‘s consumers do, and they know more about products and services than they ever
did.

Customers are the best source of information. Whether to improve an existing product or service
or

whether firms are planning to launch something new. There is no substitution for ―getting it from
horse‘s

mouth‖ When you talk to your customer directly, to increase your odds for achieving success you
―mistake-
proof‖ your decisions and work on what really matters. When you routinely ask the customers for
feedback

and involve them in business they, in turn, become committed to the success of your business.

Customer Satisfaction Measurement: -

A basic and effective base line customer satisfaction survey program should focus on measuring

customer perceptions of how will the company delivers on the critical success factors and dimensions of
the

business as defined by the customers:

For example:

 Service Promptness

 Courtesy of Staff

 Responsiveness

 Understanding the customer problem, etc.

The findings of the company performance should be analyzed both with all customers and by key
segments

of the customer population. The essential starting point for Customer Satisfaction Measurement (CMS)
is

exploratory research. Since satisfaction is about an organization‘s ability. To meet customer requirement
one

has to start by clarifying with customers exactly what those requirements are. This is done through

exploratory research using focus groups or one to one depth interviews.

Two main factors determine the accuracy of CMS. The first is the asking the right question and the

second is the asking them to the right people sample of customers which accurately reflects the
customer

base.

Three things decide the accuracy of a sample. They are:

 It must be representative.

 It must be randomly selected.

 It must be adequate enough.

Measuring customer satisfaction

Organizations need to retain existing customers while targeting non-customers. Measuring customer

satisfaction provides an indication of how successful the organization is at providing products and/or
services

to the marketplace.

Customer satisfaction is an abstract concept and the actual manifestation of the state of satisfaction
will

vary from person to person and product/service to product/service. The state of satisfaction depends on
a

number of both psychological and physical variables which correlate with satisfaction behaviors such as

return and recommend rate. The level of satisfaction can also vary depending on other factors the
customer,

such as other products against which the customer can compare the organization's products.

Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 delivered

SERVQUAL which provides the basis for the measurement of customer satisfaction with a service by
using

the gap between the customer's expectation of performance and their perceived experience of
performance.

This provides the researcher with a satisfaction "gap" which is semi-quantitative in nature. Cronin and
Taylor

extended the disconfirmation theory by combining the "gap" described by Parasuraman, Zenithal and
Berry

as two different measures (perception and expectation) into a single measurement of performance
relative to

expectation.

The usual measures of customer satisfaction involve a survey with a set of statements using a Linker

Technique or scale. The customer is asked to evaluate each statement in terms of their perception and
expectation of performance of the service being measured.

Methodologies

American Customer Satisfaction Index (ACSI) is a scientific standard of customer satisfaction.

Academic research has shown that the national ACSI score is a strong predictor of Gross Domestic
Product

(GDP) growth, and an even stronger predictor of Personal Consumption Expenditure (PCE) growth. On
the

microeconomic level, research has shown that ACSI data predicts stock market performance, both for
market

indices and for individually traded companies. Increasing ACSI scores has been shown to predict loyalty,

word-of-mouth recommendations, and purchase behaviour. The ACSI measures customer satisfaction

annually for more than 200 companies in 43 industries and 10 economic sectors.

In addition to quarterly reports, the ACSI methodology can be applied to private sector companies

and government agencies in order to improve loyalty and purchase intent. Two companies have been
licensed

to apply the methodology of the ACSI for both the private and public sector: CFI Group, Inc. applies the

methodology of the ACSI offline, and Foresee Results applies the ACSI to websites and other online

initiatives. ASCI scores have also been calculated by independent researchers, for example, for the
mobile

phones sector, higher education, and electronic mail.

The Kano model is a theory of product development and customer satisfaction developed in the 1980s
by

Professor Noriaki Kano that classifies customer preferences into five categories: Attractive, One-
Dimensional, Must-

Be, Indifferent, Reverse. The Kano model offers some insight into the product attributes which are
perceived to be

important to customers. Kano also produced a methodology for mapping consumer responses to
questionnaires onto
his model. SERVQUAL or RATER is a service-quality framework that has been incorporated into
customer-satisfaction

surveys (e.g., the revised Norwegian Customer Satisfaction Barometer) to indicate the gap between
customer

expectations and experience.

J.D. Power and Associates provides another measure of customer satisfaction, known for its top-box

approach and automotive industry rankings. J.D. Power and Associates' marketing research consists

primarily of consumer surveys and is publicly known for the value of its product awards.

Other research and consulting firms have customer satisfaction solutions as well. These include A.T.

Kearney's Customer Satisfaction Audit process, which incorporates the Stages of Excellence framework
and

which helps define a company‘s status against eight critically identified dimensions. For Business to

Business (B2B) surveys there is the Info Quest box. This has been used internationally since 1989 on
more

than 110,000 surveys (Nov '09) with an average response rate of 72.74%. The box is targeted at "the
most

important" customers and avoids the need for a blanket survey.

Improving Customer Satisfaction

Published standards exist to help organizations develop their current levels of customer
satisfaction.

The International Customer Service Institute (TICSI) has released The International Customer Service

Standard (TICSS). TICSS enables organizations to focus their attention on delivering excellence in the

management of customer service, whilst at the same time providing recognition of success through a
3rd

Party registration scheme. TICSS focuses an organization‘s attention on delivering increased customer

satisfaction by helping the organization through a Service Quality Model. TICSS Service Quality Model
uses
the 5 P's - Policy, Processes People, Premises, Product/Services, as well as performance measurement.
The

implementation of a customer service standard should lead to higher levels of customer satisfaction,
which in

turn influences customer retention and customer loyalty.

Customer Satisfaction Surveys:

Surveys and questionnaires are the most common marketing research methods. Typically, they are used
to:

 Assess the level of customer satisfaction with a particular product, service or experience

 Identify factors that contribute to customer satisfaction and dissatisfaction;

 Determine the current status or situation of a product or service;

 Compare and rank providers;

 Estimate the distribution of characteristics in a potential customer population; or

 Help establish customer service standards.

Benefits and Challenges:

Surveys allow an organization to quickly capture vital information with relatively little expense and

effort. A primary advantage of this method is its directness: ―the purpose is clear and the responses

straightforward.‖ Additionally, the information gathered by surveys can easily be analyzed and used to

identify trends over time. The public views consumer product polls and pollsters in a generally positive

manner compared to political and other polls. One study found that at least sixty percent of the public
feels

that market research about products and services has a positive impact on society. Seventy percent
consider

the people who conduct such surveys to have positive impacts on society.

A major disadvantage of customer surveys is that the responses may be influenced by the

measurement itself through various forms of bias. For example, most surveys are voluntary, and some

researchers have found differences between survey respondents and non-respondents. People who
respond to
surveys answer questions differently than those who do not respond, and late responders answer
differently

than early responders.

Chapter 2
METHOD OF RESEARCH

Survey method:

A Survey is a complete operation, which requires some technical knowledge Survey methods
are

mostly personal in character. Surveys are best suited for getting primary data. the research obtains

information from the respondents by interviewing them.

Sampling: It is not always necessary to collect data from whole universe4. A small representative sample

may serve the purpose. A sample means a small group taken in a large lot. This small group taken in a
large

lot .This small group should be emanative cross section and really ―representative‖ in character. This

selection process in calls sampling.

Sample size: Samples are devices for learning about large masses by observing a few individuals. The

selected sample is 100.

Methods of Sampling

Random sample method:

 The method adop0ted here is random sampling method. A Random sample is one where each
item

in th3e universe has as an equal chance of known opportunity of being selected.

Research Instrument

Questionnaire:

A questionnaire is a carefully complied logical sequence of questr5ions directed to a define

objective. It is the outline of what information is required and the framework on which the data is built

upon. Questionnaire is commonly used in securing marker information that its preparation deserves
utmost

skill and care.

Collection of data:

One of the important tools for conduction market research is that availability of necessary and
useful

data. Date collection is more of an art than a science. The methods of marketing research are in a way
the

methods of data collection. The sources of information fall under two categories.

Internal sources:

Every company has to keep certain records such as accounts, reports etc. these records provide

sample information which an organization usually keeps collection in its working.

External sources:

When internal records are insufficient and required information is not available, the organization
will

have to depend on external sources. Of data are.

a) Primary data:

The data collected for a purpose in original and for the first time is known as primary data. The

researches collect this data to study a particular problem.

Here the primary data is data collected through questionnaire by directly meeting the customers
b) Secondary Data:

The data, which is collected from the published sources i.e., not originally collected of the first

rime is called secondary data.

Here the secondary data is data collected from the company‘s brochures, pamphlets, catalogues
and

the website.

NEED FOR THESTUDY

Customer satisfaction survey is a systematic process for collecting consumer data, analyzing this

data to make it into actionable information, driving the results throughout an organization and
implementing

satisfaction survey is a management information system that continuously captures the voice of the
customer

through the assessment of performance from the customers‘ point of view.

OBJECTIVES OF STUDY

The setting of objective is the corer stone of a systematic study. The study will be fruitful one
when

the basis laid down is a concrete one they represent the desired solution to the problem and help in
proper

utilization of opportunities.

Objectives:

The objectives of the research are:

1) To find out which sales promotion tools will increase the sales

2) To find out how brand ambassador can influence sales promotion.

 3) To find out the market share of ―idea Cellular‖

4) To know the features that attracts the customer to subscribe to Idea cellular.

5) To know the level of satisfaction of customers towards ―Idea Cellular Services‖.

Limitations of the study

1) Time factor was the main limitation for the study as the project was restricted to small period.

2) The research was limited only to the Hyderabad city so the result can‘t be generalized to the whole

market.

3) The sample taken for research was concerned only for 100 customers rather than millions of

customers scattered around the world.

4) Since the project has to be completed within a short period of time the information collected could

be biased.

5) Some of the premium segments could not be met due to time lack and by not obtaining prior

appointment due to tight schedule of the respondents.

Chapter 3
COMPANY PROFILE

Idea Cellular, called Birla Tata AT&T before being renamed in May 2002, is India‘s leading cellular

services provider. It was set up in January 2001 following the merger of Tata Cellular and Birla AT&T

Communication. In February 2001, Idea Cellular acquired RPG Cellcom, which is now called BTA Cellcom

and has operations in Madhya Pradesh and Chhattisgarh.

The Idea Cellular footprint currently covers five circles: Maharashtra, Gujarat, Andhra Pradesh,
Madhya

Pradesh (including Chhattisgarh) and New Delhi. Its services span the entire cellular value chain from
voice

to text. During 2001-2002, Idea Cellular was India‘s fastest growing cellular operator, registering an
annual

growth rate of 135 per cent. Thanks to the frontline technology – from Nokia and Ericsson – at its
customer‘s

extensive coverage, quality service and minimal congestion levels. Currently it has an approximate

subscriber base of 1.25 million, which amounts to 26.2 per cent in its five circles of operation (and 10.7

percent of the all –India total). Idea also enjoys market leadership in two of its circles of operation,

Maharashtra and Goa, and Andhra Pradesh.

IDEA COVERAGE:

Idea gives you coverage like no other mobile service can. Covering 23 Districts and 152 towns in

Andhra Pradesh and with a unique concept called ‗the corridor connectivity‘, Idea promises you the
widest

reach with the deepest penetration. Corridor connectivity provides highway coverage by way of the
Costa

corridor between Sangareddy (via Hyderabad) and Vijayawada, the Krishna Corridor between
Vijayawada

and Tirupati, the Rayalaseema corridor between Hyderabad and Hindupur and the kakatiya corridor
between
Hyderabad and Mancherial (via Warangal). Besides, we assure first time connection, no call drops enho-
free

speech, better voice clarity and no congestion of cellular traffic. Lastly, with a base of over 100
franchisees in

the state dedicated to customer care and interaction, it‘s no wonder that service offered by Idea in like
no

other.

COMPANY PROFILE

Idea Cellular, called Birla Tata AT&T before being renamed in May 2002, is India‘s leading cellular

services provider. It was set up in January 2001 following the merger of Tata Cellular and Birla AT&T

Communication. In February 2001, Idea Cellular acquired RPG Cellcom, which is now called BTA Cellcom

and has operations in Madhya Pradesh and Chhattisgarh.

The Idea Cellular footprint currently covers five circles: Maharashtra, Gujarat, Andhra Pradesh,
Madhya

Pradesh (including Chhattisgarh) and New Delhi. Its services span the entire cellular value chain from
voice

to text. During 2001-2002, Idea Cellular was India‘s fastest growing cellular operator, registering an
annual

growth rate of 135 per cent. Thanks to the frontline technology – from Nokia and Ericsson – at its
customer‘s

extensive coverage, quality service and minimal congestion levels. Currently it has an approximate

subscriber base of 1.25 million, which amounts to 26.2 per cent in its five circles of operation (and 10.7

percent of the all –India total). Idea also enjoys market leadership in two of its circles of operation,

Maharashtra and Goa, and Andhra Pradesh.

IDEA COVERAGE:

Idea gives you coverage like no other mobile service can. Covering 23 Districts and 152 towns in
Andhra Pradesh and with a unique concept called ‗the corridor connectivity‘, Idea promises you the
widest

reach with the deepest penetration. Corridor connectivity provides highway coverage by way of the
Costa

corridor between Sangareddy (via Hyderabad) and Vijayawada, the Krishna Corridor between
Vijayawada

and Tirupati, the Rayalaseema corridor between Hyderabad and Hindupur and the kakatiya corridor
between

Hyderabad and Mancherial (via Warangal). Besides, we assure first time connection, no call drops enho-
free

speech, better voice clarity and no congestion of cellular traffic. Lastly, with a base of over 100
franchisees in

the state dedicated to customer care and interaction, it‘s no wonder that service offered by Idea in like
no

other.

Chapter 4 data
analysis
QUESTIONNAIRE FOR CUSTOMER’S SATISFACTION TOWARDS IDEA CELLULAR

1. Do you own/use a cell phone? [ ]

(a) Yes (b) No

2. If you own/use a cell, which service you‘re using at present? [ ]

(a) IDEA (b) AIRTEL (c) VODAFONE

(d) RELIANCE (e) CELLONE

3. Which type of service do you use? [ ]

(a) Prepaid (b) Post-paid

4. If prepaid, which recharge coupon you often use? [ ]

(a) Rs. 111 (b) Rs. 324 (c) 540

(d) Rs. 1080 (e) Blow 100

5. Do you know about Idea? [ ]

Yes ( ) No ( )

If yes, how you came to know?

(a) Television (b) Print media (Newspapers / Magazines)

(c) Friends / Relatives (d) Hoardings / Bill boards

(e) Any other (specify) __________________________

6. What features attract an Idea card purchase? [ ]

(a) Most friendly and affordable plans (b) Best quality Network

(c) Widest coverage in A.P d) Brand Loyalty

7. Suggest features you think needs improvement [ (a) Service (b) Transparency
in Billing

(c) Call Clarity (d) Any other (specify)

8. Which sales promotion activity do you think would be more effective in grabbing more market share?

(a) Extra talk time (b) Customized recharge facility [ ]

(c) Free incoming for more than one month

(d) Any other (specify)

9. Suggest which Brand Ambassador will effect sales promotion? [ ]

(a) Film star (b) Sports person

(c) Musician (d) Company CEO

10. What makes Idea most preferred? [ ]

(a) Widest coverage un A.P (b) Brand Loyalty

(c) Most economical and friendly packages

(d) Best quality & extensive network

11. Which brand do you recommend if given a choice? [ ]

(a) IDEA (b) AIRTEL

(c) VODAFONE (d) RELIANCE

(e) CELLONE

12. How do you rate the services at ―Idea Cellular‖ [ ]

(a) Excellent (b) Good

(c) Satisfactory (d) Poor13. What is your opinion about Idea‘s recently launched recharge coupon
of Rs.50 and Rs.100?

(a) Excellent (b) Good

(c) Satisfactory (d) Not exciting [ ]

14. Would you prefer to subscribe for Idea‘s lifelong incoming plan?

(a) Yes (b) No [ ]

15. Any suggestions to improve the sales of Idea