Vodafone Data Card Consumer Behavior

WEST BENGAL UNIVERSITY OF TECHNOLOGY

A SUMMER TRAINING REPORT
ON

CONSUMER BUYING BEHAVIOUR WITH A
FOCUS ON
PERCEPTION TOWARDS INTERNET DATA
CARD WITH SPECIAL REFERENCE TO
VODAFONE

FROM,

(20th June,2009-5thAugust, 2009)

SUBMITTED BY

WBUT Regn no.
WBUT Roll no.
Major: Marketing Management
Minor: Human Resource Management

MANAGEMENT INSTITUTE OF DURGAPUR
RAJBANDH
1

ACKNOWLEDGEMENTS

First of all I would like to thank the Management at Vodafone for giving me the
opportunity to do my two month project training in their esteemed organization. I
am highly obliged to the marketing manager at vodafone. I would like to express
my gratitude to area Sales Manager, who has provided me with guidance,
inspiration, perspective and stimulating discussion, throughout the writing of this
report. His constant review and excellent suggestions throughout the project are
highly commendable. A study like this cannot be completed without help of other
persons. And therefore I would like to express my gratitude to provide me crucial
guidance in the analytical part of this Project. My heartfelt thanks goes to Mr.
…………. (sales manager) and to all the executives who helped me gain
knowledge about the actual working and the processes involved in various
departments. I would like to express my heartfelt thanks to the director of MID,
Dr. ……………. & also to our principal, …………….. I would like to express my
gratitude towards our H.O.D. …………. who had helped me lot in preparing this
project report. I would like to forward my gratitude to my internal guide Mr. ……..
………… & to all the marketing faculties of MID, …………. . Finally, I would
like to convey my gratitude to my friends & family members & other faculty
members who always endured me and stood with me and without whom I could
not have envisaged the completion of my project.

2

Students’ Declaration

I, …………………. hereby declare that the Project Work titled Consumer Buying

Behavior with a focus on perception towards internet data card is the original work

done by me and submitted to the MID, …………., Durgapur in partial fulfillment

of requirements for the award of Masters in Business Administration with major

Subject as Marketing Management and Minor subject as Human Resource

Management is a record of original work done by me under the supervision of

………………………… (MID faculty).

Date:

Signature of the student

3

EXECUTIVE SUMMARY

Growth on the Data Cards. Especially happen when business travelers,

academicians as well as other professionals need to access emails and corporate

applications as well as personal requirements during urgent trips and travels. Now,

what kind of a company enters an industry with competitors already entrenched?

Which ones actually succeed? The answer to both the questions is VODAFONE

ESSAR, which is now known as VODAFONE. It is a confident and smart

company that was able to enter a saturated and highly competitive industry, and

emerge at the top. The project aims to identify the problems faced by Vodafone in

the internet data card market. Customers often feel that service providers do not

deliver what they promise. They feel players should present the terms and

conditions and tariff plans/schemes in clear terms. The research we conducted also

supports this fact. We have suggested a marketing plan for Vodafone data card

along with other suggestions for VODAFONE to face the competition in the near

future and the long run.

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Contents
Pg. no.
1. About Vodafone……………………………………………………..

2. Introduction of project………………………………………………

3. Litrature Survey………………………………………………………..

Chapter 1: Experts views on Indian Telecom Sector………………….

Chapter 2: An overview of internet and wireless connectivity………..

Chapter 3: Telecom Sector-An Outlook……………………………….

3.1 Industry Analysis……………………………………………

3.2 About Internet Data Cards………………………………….

3.2.1 Vodafone……………………………................

3.2.2 Bharat Sanchar Nigam Limited (BSNL)……….

3.2.3 Tata Indicom……………………………………

3.2.4 Reliance Communication………………………..

3.2.5 Airtel…………………………………………….

Chapter 4: Consumer behavior towards Internet data Card…………….
4. Research Methodology……………………………………………….....

5. Data Analysis……………………………………………………………

Chapter 1: Brand Recall…………………………………………………

Chapter 2: Development of Hypothesis and Testing…………………….

Chapter 3: Graphs and Charts……………………………………………

6. Recommendation and Conclusion……………………………………….

7. Annexure…………………………………………………………………

8. Bibliography………………………………………………………………

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About Vodafone

Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced
operations in 1994 when its predecessor Hutchison Telecom acquired the cellular
license for Mumbai. Vodafone Essar now has operations in 22 circles with over
65.92 million customers. The company is a joint venture of Essar Communication
Holdings Ltd and the UK-based Vodafone Group. Vodafone has partnered with the
Essar Group as their principal joint venture partner for the Indian market. They are
in the business of cellular telephony. Over the years, Vodafone Essar, under the
Hutch brand, has been named the ‘Most Respected Telecom Company’, the ‘Best
Mobile Service in the country’ and the ‘Most Creative and Most Effective
Advertiser of the Year’. Vodafone is the world’s leading international mobile
communications company. It currently has equity interests in 27 countries across 5
continents and 40 partner networks with over 303 million proportionate customers
worldwide. Vodafone has partnered with the Essar Group as its principal joint
venture partner for the Indian market. Essar Global Limited (EGL) is a diversified
business group spanning the manufacturing and services sectors of Steel, Energy,
Power, Communications, Shipping & Logistics, and Projects. The group has
operations and investments in India, Canada, USA, Africa, the Middle East, the
Caribbean and South East Asia and employs 30,000 people worldwide. Vodafone
Essar Ltd provides services like 3G, which are based on 1800 MHz and 900Mhz
GSM digital technology. They offers voice and data services. In addition, they
offers postpaid connections activation, prepaid SIM cards and recharge coupons
sale, service activation/deactivation, postpaid tariff plan change, customer query
resolution, prepaid/postpaid SIM card replacement and up gradation, mobile
number change, and information on and subscription of value added services
through stores. The Essar Group is Vodafone’s principle partner in India. The
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Essar Group is a diversified business corporation with a balaned portfolio of assets
in manufacturing and service sectors of Steel, Energy, Power, Communications,
Shipping prots & Logistics and Projects.

About Hutchison-Essar Vodafone Negotiations

The name Vodafone comes from “Voice data fone” HQ in Berkshire, England, is
the world’s leading international mobile communications group with 29Million
revenues 27 countries, 303 million customers, 40 partner networks. Advanced
mobile telecommunications services provided by vodafone are 3G, data related
services. The Joint venture - 67% stake by HTIL and 33% owned by Essar.HTIL –
Li Ka-Shing , Essar – Ruia Family.HTIL is HK Based Telecom Company and
Essar is India based diversified corporation 4th largest cellular operator in India
74.08 million customer.

Vodafone’s Objective

• To venture into the world’s most lucrative cellular market

• Strengthen its operation worldwide

• To obtain the majority stake of Hutchison

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Introduction of Project

The objective of the study is to understand the consumer’s pre, post behavior,

during perception of data card and consumer buying behavior and attitude for

Vodafone data card. To understand the former part, the researcher created a

questionnaire and conducted a survey. The researcher analyzed the questionnaire

and the survey to create an extensive questionnaire understanding the buying

behavior of consumers of Vodafone data card and other brands. The researcher had

an analysis done on the 600 respondents from Durgapur, Asansol & Burdwan to

identify how much of buying intension is due to attributes and how much due to

influence by referrals.

The research analysis had revealed that the consumers are satisfied with the brand

Vodafone data card and its attributes. However, Vodafone has not performed well

with the customers who are considerably concerned about internet connection with

its cost and tariff plans. This following detailed analysis is presented in the project

report.

10

LITERATURE
SURVEY

11

Chapter 1: Experts views on Indian Telecom Sector

Girija (1998), in its article “Socioeconomic Implications of Telecommunications
Liberalization: India in the International Context” says that Telecommunications
restructuring have evolved differently in Asia and Latin America. While Asian
governments have moved, cautiously in bringing changes to the sector, Latin
American Nations have implemented radical ownership and market
transformations. The Indian telecommunications reform falls in between these two
general regional trends. The choice of a high component of competition, increased
private participation, and no privatization of the national carrier set conditions that
will trigger unique socioeconomic effects. This article identifies and highlights the
likely implications of the Indian reform on key economic and social issues, such as
the cost of services, cross-subsidies, network interconnection, private investments,
universal services, employment, and the possible rise of an information-intensive
economy. It does so by comparing and contrasting the Indian experience with
dominant reform strategies elsewhere in the developing world.

Chowdary (1999) discusses how Telecom reform, or demonopolization, in India
has been bungled. Shaped by legislation dating back to the colonial era and post
Second World War socialist policies, by the mid-1980s India realized that its poor
telecommunications infrastructure and service needed reform. At the heart of the
problem lay the monopoly by the government’s Department of
Telecommunications (DOT) in equipment, networks and services. The National
Telecom Policy 1994 spelt out decent objectives for reform but tragically its
implementation was entrusted to the DOT. This created an untenable situation in
which the DOT became policymaker, licenser, regulator, operator and also

12

arbitrator in disputes between itself and licensed competitors. He discusses the
question: ‘Why did India get it so wrong? and What India should do now?

Anand (1999), in his article named “India's economic policy reforms” says that
India was embarked on economic reforms in July 1991, in the wake of a balance of
payments crisis. In this article, an attempt is made to review two books and a set of
World Bank reports concerning the progress of these reforms. Issues concerning
economic policy, impact of the reforms on poverty, sectoral issues relating to
agriculture, industry and infrastructure are briefly discussed. As reforms enter a
more difficult phase, several challenges remain. Some of this fall under the
“economic agenda'' of measures needed to maintain economic growth; others can
be termed the “development agenda'' - of improving human development. Progress
with regard to the former is not sufficient to produce results concerning the latter.

Bhattacharya (2000) constructs a vision of the Indian telecommunication sector
for the year 2020. The paper aims at isolating agents of change based on
international experiences and situates India in the development continuum. The
agents of change have been broadly categorized into economic structure,
competition policy and technology.

Das (2000), in her paper described the Liberalization of the Indian
telecommunications services which started in mid nineties with no change in the
existing public monopoly structure, entirely controlled by Department of
Telecommunications (DoT). In order to evaluate any proposed industry structure, it
is essential to analyze the production technology of DoT so as to determine the
rationale of liberalization and sustainability of competition. Accordingly, the
researcher estimates a frontier multi-product cost function for DoT, where the cost
13

function has been duly modified to account for the production technology of a
public monopoly. The study finds that although DoT displays high allocation
inefficiency, it is still a natural monopoly with very high degree of sub additively
of cost of production. This study implies that the choice of any reform policy
should consider the trade-off between the loss of scale and scope economies and
cost saving from the reduction in inefficiency of the incumbent monopoly in the
event of competition.

Rao (2000), in her article named “Internet service providers in India”, provides a
broad view of the role of an Internet service provider (ISP) and the factors to be
considered before entering the ISP market. Describes the Internet/ISP scene within
India and discusses the configuration of local, regional and national level ISPs, and
the supporting infrastructure. She also identifies the various success factors. The
global Internet scenario is discussed regarding the phases of the Internet in India,
i.e. pre and post commercialization. The main players are described: ERNET,
NICNET, STPI, VSNL,MTNL, Satyam Infoway and Bharti-BT. The financial and
legal implications are highlighted in the Indian context. Many companies entered
the nascent ISP business in India due to deregulation. Building local content,
foreknowledge of new Internet technologies, connecting issues, competitiveness,
etc. would help in their sustainability. She concludes that though many companies
entered the nascent ISP businesses in India due to deregulation, many of them are
unlikely to survive in the longer term.

Vrmani (2000) estimates the contribution of telecommunication (or telecom)
services to aggregate economic growth in India. Estimated contribution is
distinguished between public and private sectors to highlight the impact of telecom
privatization on economic growth. Knowledge of policy determinants of demand
14

of telecom services is shown to be essential to enhance growth contribution of
telecom services. Using a recent sample survey data from Karnataka State in South
India, price and income determinants of demand for telecom services are estimated
by capacity of telephone exchanges Estimation results offer evidence for
significant negative own price elasticity and positive income elasticity of demand
for telecom services.

Narinder (2004), in his article “Enhancing Developmental Opportunities by
Promoting ICT Use: Vision for Rural India” talks about the foremost benefits of
Information and Communication Technologies (ICTs) in developing countries that
can be helpful in improving governance including public safety and eradication of
illiteracy. The benefits of ICTs have not reached the masses in India due to lack of
ICT infrastructure, particularly in rural areas, where two-third of the population of
the country lives. Even in cities and suburban areas, use of ICTs is not popular due
to lack of awareness to its use,computer illiteracy, and absence of practical
applications. India is the largest country in South Asia, with a population of over
one billion people and its telecom sector is presently experiencing fast growth
phases. However telephony penetration in villages is less than two percent of the
rural population and about 15 percent of the villages are still without any telephony
service. Universal access to ICTs in rural areas has been planned and is being
implemented through Public Tele Info Centers having voice data and video,as
majority of villagers in India cannot afford a separate home connection. Illiteracy
in rural areas is as high as 40 percent and in some tribal belts hardly about 20
percent people are literate. There are 35 million children in age group of 6–11
years, who are out of school and one out of four drops out during primary classes.
Education and training, therefore, must be given the top priority if advantages of
ICTs are to be harnessed. Indian economy is agriculture based and employs
15

maximum workforce. Improvement in agriculture productivity can help in
reducing rural poverty. Adoption of ICT in agriculture will play an increasingly
important role in crop production and natural resource management. The other
critical factor is technological challenges for universal access to ICTs to bring
down the network access cost.

Nikam, Ganesh, Tamizhchelvan (2004), analyses that changing face of India in
bridging the digital device. He reiterated - “India lives in villages” said the Father
of the Nation, Mahatma Gandhi. With 1,000 million people and 180 million
households, India is one of the biggest growing economies in the world. With the
advent of the Information, Communication and Technology (ICT) revolution, India
and its villages are slowly but steadily getting connected to the cities of the nation
and the world beyond. Owing to the late Rajiv Gandhi, India is now a powerful
knowledge economy, and though India may have been slow to start, it certainly has
caught up with the West and is ahead in important respects. The Government, the
corporate sector, NGOs and educational institutions have supported rural
development by encouraging digital libraries, e-business, e-learning and e-
governance. The aim of this paper is to touch upon and highlight some of the areas
where, by using ICT, the masses have been reached in this way. A follow-up paper
will outline collections of significant cultural material which, once national IT
strategies are fully achieved, could form part of a digitally preserved national
heritage collection.

Dey (2004), in her article talks about the discussions between the Federal
Communications Commission (FCC) and communications policy makers and
regulators in other countries and how they have gleaned several clusters of issues
where further research would directly benefit them. Recently, there have been two
16

notable shifts. First, as the acceptance of the competition model over the monopoly
model for telecommunications markets takes deep effect in regulators all over the
world, questions regarding process and procedure for regulation are becoming ever
more urgent. This paper discusses current questions regarding decision making,
enforcement, and understanding consumer issues that arise often in the FCC's
discussions with other regulators. Second, technological change is potentially
shifting market definitions. In the FCC's discussion with other regulators over the
last two years, the overlap of wireline telecom, wireless telecom and cable
television has become more pronounced.

Singh (2005), in his article “The role of technology in the emergence of the
information society in India” describes the role that information and
communication technologies are playing for Indian society to educate them
formally or informally which is ultimately helping India to emerge as an
information society. Though India has a huge population, the illiteracy rate is also
huge in this country. The paper has taken an approach to find the historical
situation and present the prevailing scenario as well as the change that are taking
place with the application of ICT to the advantage of the society in different areas
including daily life. India is making all out efforts to be counted among the
developed nations of the world. The article also describes the considerable
attention India is taking for application of technology, development of
infrastructure and human resource for meeting national needs. Basically India is
building an information society. Technology has helped society to cut across the
traditional boundaries for getting converted into an emerging information society.
The study concludes that The Indian software and services industry has
significantly helped to boost the Indian economy. In IT-enabled services too, India
has been clearly perceived to be the dominant hub. The Indian software sector is
17

being recognized as the single largest contributor to incremental market
capitalization in India but the sector is still small in terms of contribution to GDP,
especially when compared to other large sectors in the economy like agriculture
and manufacturing. Similarly, the telecommunication sector has contributed a lot
but still has a considerable way to go. The paper also enforces that comparisons of
India’s telecommunication statistics with those of developed and other emerging
economies show that the country is still far behind its contemporaries.

Banka (2006) gives an overview of the mergers and acquisitions in the
telecommunication industry. According to him Governments decision to raise the
foreign investment limit to 74% is expected to spur fresh rounds of mergers and
takeovers in India. He foresees a sector that represents humongous opportunity
waiting to be tapped by Indian and foreign conglomerates.

Thomas (2007), in his article describes the contribution made by
telecommunications in India by the state and civil society to public service, this
article aims to identify the state’s initial reluctance to recognize
telecommunications provision as a basic need as against the robust tradition of
public service aligned to the postal services and finds hope in the renewal of public
service telecommunications via the Right to Information movement. The article
follows the methodology of studying the history of telecommunications approach
that is conversant with the political economy tradition. It uses archival sources,
personal correspondence, and published information as its research material. The
findings of the paper suggests that public service in telecommunication is a
relatively ‘‘new’’ concept in the annals of Indian telecommunications and that a
deregulated environment along with the Right to Information movement holds
significant hope for making public service telecommunications a real alternative.
18

The article provides a reflexive, critical account of public service
telecommunications in India and suggests that it can be strengthened by learning
gained from the continual renewal of public service ideals and action by the postal
services and a people-based demand model linked to the Right to Information
Movement. All studies done by the researcher suggests that the right to information
movement has contributed to the re-vitalisation of participatory democracy in India
and to a strengthening of public service telecommunications.

Cygnus Business Consulting & Research Pvt. Ltd. (2008), in its “Quarterly
Performance Analysis of Companies (April-June 2008)” has analysed the Indian
telecom industry in the awake of recent global recession and its overall impact on
the Indian economy. The analysis is done in the background of wake of global
recession and rising inflation. Cygnus estimates, the Indian telecom industry is
expected to maintain the growth trajectory in the next quarter as well. With almost
5-6m subscribers are being added every month, and the country is witnessing wild
momentum in the telecom industry.

Maheshwari (July-September 2008), in her report analysed the Indian telecom
industry and ascertain that Indian telecommunications has been zooming up the
growth curve at an mounting pace, and India is has surpassed US to become the
second largest wireless network in the world. This growing subscriber base is
basically created by tapping into rural India, which is an emerging market for the
industry. The estimate for the next five to ten years is that the rural market will
form 40 % of the subscriber base. The study has analysed the human resource
management process of the industry, and specially the latest trends of recruitment
of this massively growing industry.

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Anderson (2008), in his single executive interview titled “Developing a route to
market strategy for mobile communications in rural India An interview with
Gurdeep Singh, Operations Director, Uttar Pradesh, Hutch India”suggests that
managers need to go beyond traditional approaches to serving the poor, and
innovate by taking into account the unique institutional context of developing
markets. His practical implication says that
the experience of Hutchison Essar in India provides some important lessons for
mobile network operators (MNOs) and other firms in other developing markets
who are hoping to serve the rural poor: Hutchison has recognized the value of
corporate and noncorporate partners. The company has proactively established
relationships with individual entrepreneurs, and has provided has provided
development support to other partners such as distributors. The company has
recognized the value of leveraging existing local institutions, and has seen gaps in
local infrastructure or missing services as potential opportunities rather than
barriers to growth. The company has seen the rural market as an opportunity – not
just an obligation to be served because of universal service obligations. Also this
article demonstrates that MNOs can deliver availability and affordability to
achieve increased individual or household penetration through business model
innovation.

Mani (2008) addresses a number of issues arising from the growth of telecom
services in India since the mid-1990s. It also discusses a number of spillover
effects for the rest of the economy and one of the more important effects is the
potential to develop a major manufacturing hub in the country for telecom
equipment and for downstream industries such as semiconductor devices. The
telecom industry in India could slowly become an example of the service sector
acting as a fillip to the growth of the manufacturing sector. A beginning towards
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this has been made. The formation of a Telecom Equipment Export Forum and the
announcement of the Indian Semiconductor Policy 2007 are steps in this direction.
Success crucially depends on the response of the private sector to these incentives.
Given the importance that a regulatory agency can play in this crafting, no effort
should be lost in strengthening the powers of the TRAI. The benefits to the Indian
economy from having both a strong services and manufacturing segments in the
telecom sector cannot be undermined.

Narayana (2008) estimates the contribution of telecommunication (or telecom)
services to aggregate economic growth in India. Estimated contribution is
distinguished between public and private sectors to highlight the impact of telecom
privatization on economic growth. Knowledge of policy determinants of demand
of telecom services is shown to be essential to enhance growth contribution of
telecom services. Using a recent sample survey data from Karnataka State in South
India, price and income determinants of demand for telecom services are estimated
by capacity of telephone exchanges. Estimation results offer evidence for
significant negative own price elasticity and positive income elasticity of demand
for telecom services.

Sharma (2009) deals with the major challenges faced by India’s telecom
equipment manufacturing sector, which lags behind telecom services. Only 35% of
the total demand for telecom equipment in the country is met by domestic
production. This is not favourable to long-term sustained growth of the telecom
sector. The country is also far behind in R&D spending when compared to other
leading countries. India needs to see an increase in R&D investment, industry-
academia-government partnership, better quality doctoral education and incentives
to entrepreneurs for start-ups in telecom equipment manufacturing. In 2006-07,
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65% of the total consumption of equipment was met through imports. This trend
has far-reaching implications for the economy and should not be allowed to
continue for long. In a country like India which has a problem of massive
unemployment, the manufacturing sector should be promoted to create more
employment opportunities.

Shah (February, 2009), has analysed Indian telecom industry and studied the
sector keeping in mind three companies; namely Bharti, R.Comm and idea in the
background of recent global meltdown. The study suggests that though there is no
sign of slowdown in this sector, but surely a strong turmoil is going on in the
industry. The study states that the sector is fairly immune from the current
economic downturn & does provide a good defensive bet in medium term. With
the help of newer technologies, wireless penetration is expected to increase in the
near future, which is basically fuelling the growth of the sector. While the 3G /
Broadband adoption would ensure long term growth momentum,the article has
thoroughly investigated about the intense competitive scenario, pricing pressure,
high capital intensity & substantial regulatory uncertainties currently faced by the
industry. The article has also described the cause of being relatively safe of this
industry. The causes described by Shah are increasing rural coverage, rising
affordability, declining handset/subscription costs, substantially low tariffs &
established brand/distribution. However, the study also cautions the telecom
industry that a steeper economic slowdown could start impacting the subscriber
usage patterns as well as operator capital investments & thereby could substantially
restrict revenue growth rate.

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Chapter 2: An overview of internet and wireless connectivity

Definition of internet
The Internet is a worldwide, publicly accessible series of interconnected computer
networks that transmit data by packet switching using the standard Internet
Protocol (IP). It is a "network of networks" that consists of millions of smaller
domestic, academic, business, and government networks, which together carry
various information and services, such as electronic mail, online chat, file transfer,
and the interlinked web pages and other resources of the World Wide Web
(WWW).
Common uses of the Internet
E-mail
World Wide Web
Remote Access
Collaboration
Streaming Media
File Sharing
Voice Telephony

DRIVING GROWTH OF INTERNET DATA CARD

Growing business in all segments, necessity to access emails and corporate
applications during urgent business trips and the urge for some entertainment
While on the move are some drivers increasing the demand for data card usage.
Apart from these factors, as the name of Tata Indicom’s data card,’Plug 2 surf’,
Suggests, ease of use with plug and play factor is also a driver for growth, S P
Shukla, president, Personal Buisness, Reliance Communations, says that faster
surfing and higher download speeds, convenience of surfing the Internet while on

23

the move, simple to use, and affordable tariff are among the key reasons for the
data card growth, in both the laptop and desktop segments. While broadband
connections are yet to penetrate the vast semi-urban and rural parts of the country
where entrepreneurs , officials, students, etc. have the need to surf the internet for
various purposes. Though the laptop penetration in these areas has not made a
significant mark, desktop penetration is comparatively more. with data cards
offering convenient access to the Internet, a number of companies have started to
tie up with service providers to avail bulk network connections for their employees
on the go and allow them to utilize their time during business travels. Since data
cards can be used with desktop also, it cuts down the office infrastructure costs as
well. With the data card segment witnessing steady growth, affordability will go
up, which, in turn, will drive growth.” As the data card growth increases, speed
evolves and prices come down, affordability will go up and more users can begin
to think of data card as an affordable solution,” says an Airtel spokesperson. And
growth of mobile telephony in India has created users with specific needs like m-
commerce that require wireless Internet, driving the wireless data card growth.
Once the concept of mobile wallet and its applications hit the market in India in the
near future, the wireless data card segment is also expected to witness an
exponential growth. Apart from this, Internet charges in costly hotels are very high.
With the availability of data cards and USB modems, frequent business travelers
who stay in costly star hotels can access the internet and corporate applications on
their laptops and avoid using the Internet facility at hotels, savings on high Internet
charges.

The Deterrents

All players are competing with each other to give affordable tariff rates for their
data cards. But still the rates are very high when compared to countries like the
24

UK. In the UK, wireless broadband connection through 3G technology costs about
£10 per month and that too with a data download speed faster than 256Kbps.
International travelers who have used data cards with faster speed are not satisfied
with data cards and USB modems services offered in India. So, in India, data cards
mean accessing a bare minimum net connectivity only for a sizable population.
That is why it is said that data cards have not exactly taken off in India.

25

Chapter 3: Telecom Sector-An Outlook

3.1 Industry Analysis

Indian Telecom industry is one of the fastest growing telecom markets in the

world. In telecom industry, service providers are the main drivers; whereas

equipment manufacturers are witnessing growth and decline in successive quarters

as sales is dependent on order undertaken by the companies. Airtel, Reliance, Tata

and Vodafone are some of the companies that are expected to spur the growth in

AMJ08, as compared to AMJ07. According to Cygnus estimates, telecom industry

is expected to grow by 25% in AMJ 09 as compared to AMJ 08, in terms of sales.

EBDITA and PAT are expected to grow by 32% and 34% respectively in AMJ09

as cost expenses are being control by major companies like Airtel and Reliance.

The major booster is the wireless mobile subscriber base; crossing over 261m in

March 2009. Other services like Internet subscriber base has also provided

significant impetus with its subscriber base reaching over 11m in March 2009.

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3.2 About Internet Data Cards

An Internet Data card is a modem which can be connected to the PCs or Laptops

any where any time to get connected with the internet. A data card comes with

different verities and models, some of the models of data cards of different service

providers are mentioned below.

3.2.1 VodAfonE

Vodafone has few models in the data card category, these are:

i. Vodafone Mobile Connect EDGE data card

Connect to Internet, the wireless way with Vodafone Mobile Connect EDGE Data

Card in India. Get quick, simple and secure access to the Internet. And your

company server.

Features of this Vodafone Data Card:

27

 Gives us high-speed connectivity through the Vodafone EDGE network in

India and abroad.

 Easy VPN connectivity, to give us secure access to our company server and

intranet

 Keeps us connected even while travelling – in India or abroad

 Saves our from high internet charges on your hotel bills

 Is easy to install & simple to use – no wires, phones lines or cable

connections required

 Comes with a choice of tariff plans, so one can pick the one that suits you

best

 Supports SMS

Charges & Price

For Mumbai and Maharashtra except Goa Rs 7799

For rest circles including Goa Rs 6499
Tariff Plans

Monthly 499 699

rental (Rs)
Free data 500MB 1GB

28

Usage 5p / 5p / 10KB

charges 10KB

ii. Vodafone Mobile Connect USB Modem

Gives wireless Internet – anywhere, anytime. With the Vodafone Mobile

Connect USB Modem you get real-time access to information. Plus, the

Vodafone Internet USB stick comes without any installation hassles. Just plug

the Vodafone USB modem into our laptop and get connected to the internet and

even your company server, at a speed that’s three times faster than our wired

dial-up connection. That’s not all – this Vodafone USB Modem gives us 3G

Broadband speeds while roaming abroad.

Features:

 High-speed connectivity through the Vodafone EDGE network

 Works with your preferred VPN software, to give us secure access to

our company server and intranet

29

 Keeps us connected even while travelling – in India or abroad

 Saves us from high internet charges on your hotel bills

 Easy to install & simple to use – no wires, phones lines or cable

connections required

 Comes with a choice of tariff plans, so we can pick the one that suits

best

 Supports SMS

Charges

Vodafone Mobile Connect USB Stick costs: Rs 2599

Tariff Plans

Monthly 499 699

rental (Rs)
Free data 500MB 1GB
Usage 5p / 5p / 10KB

charges 10KB

iii. Vodafone Mobile Connect 3G USB Stick

30

Now you can make the most of a mobile internet connection for our laptop or

desktop. With the Vodafone Mobile Connect 3G USB Stick one can work from

anywhere with real-time access to information. Without any installation hassles.

Just plug it into your laptop and get connected to the internet and even your

company server, at a speed that's faster than our traditional dial up connection.

That’s not all – the Vodafone Mobile Connect 3G USB Stick also gives us 3G

Broadband speeds while roaming abroad.

 Gets us high-speed connectivity to the internet through the Vodafone EDGE

network.

 Is easy to install – just plug in and is ready, no CDs required.

 Gives 3G Broadband speeds when we travel abroad.

 Works with your preferred VPN software, to give us secure access to your

company server and intranet.

 Has many different tariff plans, so we can choose the one that meets our

requirements.

31

 Saves from high internet charges on our hotel bills.

 Supports SMS

 Supports Micro SD card upto 2 GB.

Price

For Mumbai and Maharashtra except Goa Rs 6599

For rest circles including Goa Rs 5499

3.2.2 BhARAT SAnchAR nIgAm LImITEd (BSnL)

3.2.2.1 Why BSNL?

i. First thing is the tariff?

While other service providers charge Rs.1500 + tax for the same service, BSNL

charge only Rs.400+tax that also including voice rental!! And it is truly

unlimited. No caps at all. No hidden charges, no strings attached nothing. Now

isn't it a cool reason?

ii. The subscriber need not buy the card !

No other service provider allows you to take the data card on rental basis.

Bharat Sanchar Nigam, Limited - BSNL - has option to take the card on rental,

that also just Rs.150 a month.

iii. Unmatched Coverage

32

The user is never away from a BSNL CDMA tower. If the subsriber have WLL

coverage or FWT coverage in your area, the data card will work perfectly.

iv. Internet in rural areas

As only Bharat Sanchar Nigam, Limited - BSNL - has coverage in lot of places

which are very remote and rural areas, this service is best suited for people

there. A very affordable internet facility for the people there.

v. Discontinue when there is no need of it

All other service providers ask us to purchase the data card and we do not have

any alternatives if you wish to discontinue. There is no way one can return the

data card to get your money. But for BSNL one can give the data card back

after the minimum rental period and will get the security deposit back.

vi. Truely Unlimited Internet

No caps, no limits. we can go online 24x7. Need not worry on the bills and we

know how much to pay every month as it is NOT based on the monthly traffic

or hourly usage. No confusing tariff tables and nothing complicated. Simple and

affordable.

vii. Cutting Edge Technology

The BSNL data card is Huawei - EC 321 which is the latest one and support

ROMSIM/R-UIM card. It is CDMA2000 1X RTT, compatible with IS-95 A/B.

33

It support Voice and SMS, Incoming Calling Display, ring prompt, call

receiving while data service online (for this function Call Waiting service must

be activated) and it has a large-capacity phone book.

Tariff / Other

Security deposit - Rs. 1000
Activation charges - Rs. 250
Security deposit (voice- Rs.500

no STD) -
Advance rental for 3 Rs. 450

months -
Service tax - Rs. 87.00

Total initial charge - Rs. 2287.00

Monthly charges of BSNL data card Rs.400 - if you buy the card and Rs.550 if

you take the card on rental basis. Rate of BSNL data card for purchase Rs.2800

if you purchase it form BSNL.

Minimum hire period: Three months

The actual speed

The speed is mainly depend on the distance from the BSNL CDMA tower. If

we are near the tower we may get speed of 120 kbps, if we are away from the

tower it will go down to 80 or 60 kbps.

BSNL EVDO is a Wireless Based Broadband Service on CDMA network.

34

It offers Internet at 2.4 Mbps data rate. EVDO (Evolution Data Optimize, 3G

service in CDMA) is a technology for providing high Speed Internet on CDMA

network (Latest version of EVDO provides up to 7.2 Mbps Internet, but its not

available with BSNL now). As 3G is officially launched, BSNL is providing

this service on testing and unofficial basis like Reliance’s and Tata’s WIMAX.

BSNL EVDO comes as both USB Modem (Pen Drive like) and PCMCIA Card

form factor. BSNL started this service from small towns and some rural places

in South India and gradually expanding to all major cities in India. As BSNL is

currently in upgrading phase of its CDMA towers to EVDO enabled. The

availability of 2.4 EVDO connections depends on the city and the area in the

city where EVDO tower is present. Depending on the availability of the tower

in your area or your wish, you could choose between two speeds. Either EVDO

(2.4 Mbps) or CDMA 1x (144Kbps). Please note whatever you choose, the card

or modem will require to be pre configured at BSNL exchange for that. The

service totally depends on the area of availability and the signal you are getting.

The maximum practical speed is 1.5 Mbps (which I consider is very good).

35

However if the tower (in your area or the area you move) is not EVDO

enabled, the connection automatically switches to the CDMA 1x and provides

speed of 144 Kbps. BSNL EVDO provides roaming also however it’s available

in the state only, nationwide will be soon launched.

Rate and Tariff Plans:

EV-DO Device cost Rs 7,500 , Either USB Modem or PCMCIA card cost Rs.

3500 on out right purchase. For rental basis, you will have to give Rs. 1500

deposit (Rs. 1000 refundable) and the monthly modem rent will be Rs. 200.

Minimum commitment is 3 months. 250 Rs / Month (only if u buy the device

for 7,500 Rs at the Begining) 600 Rs / Month (On rental for device) Tariff for

EVDO (2.4 Mbps) is Rs. 550 + Tax/month unlimited download Tariff for

CDMA 1x (144 Kbps) is Rs. 250(reduced from 350) + Tax/month unlimited

download. Only above two tariff plans are available and Yes it’s too cheap than

Internet offered by other companies. So at starting, for Outright Purchase we

will have to pay 3500 + 550 or 250 plus tax. For Rental Basis we will have to

pay 1500 + 550 or 250 plus tax.

3.2.3 TATA IndIcom

“STAY CONNECTED WHEREVER YOU ARE”

Now, stay connected to the internet from the comfort of your homes, offices, or

wherever you are with Tata Indicom. Presenting Vdata Card & Plug 2 Surf

36

(USB Modem), 2 innovative solutions that function as a wireless network

connection, a mobile phone and a modem. All in one and that too, with

attractive tariff plans.

ITS FAST. ITS EASY. ITS CONVENIENT.

 Easy Installation & maintenance.

 Now Surf the internet, intranet or the extranet with consistent & high speeds.

 Send/Receive SMS or use voice capabilities. (Plug2Surf Whiz does not

support Voice calls)

 Stay connected across the Tata indicom network 20 circles & 3500 cities

Actual internet speed will be dependent on multiple factors like time of the day,

number of simultaneous users, web page accessed etc.

THE 3-IN-1 ADVANTAGE

The Internet Advantage

 The Plug 2 Surf / Vdata card offers data transfer and access at high speeds.

Just switch on your PC / laptop and get connected, so don't miss out on any

critical information even while we are on the move.

37

 Connects directly to the Tata Indicom network with the minimal user steps

and fastest network registration.

The Voice Advantage

 Now you can make and receive voice calls without any hassles. All you need

to do is connect the earphone jack provided with the Plug 2 Surf / Vdata

card. (Plug2Surf Whiz does not support Voice calls)

 Provision of caller Id.

 Voice calls at attractive call rates.

The SMS Advantage

 Two way messaging facility available on both devices.

 Send messages while we are connected on our voice call or internet mode.

 Useful for being online, and being able to send and receive message.

 Plug 2 Surf - Unparalleled Features

Features Data-for Photon for Photon Whiz

Laptops PCs & for PCs &

Laptops Laptops
Speeds Upto 153.6kbps Upto 153.6kbps Upto 153.6kbps

38

Antenna External Internal Internal

retractable
SMS Capacity 1000 msgs in 1000 msgs in 10 msgs in

inbox and inbox and inbox and

outbox outbox outbox
Phonebook 1000 entries 1000 entries 250 entrie

Capacity
Type T-SIM Based T-SIM Based T-SIM Based
Interface PCMCIA USB USB
Supported OS Windows 2000/ Windows 2000/ Windows 2000/

Windows XP/ Windows XP/ Windows XP/

Windows Vista Windows Vista Redhat

Enterprise

Linux 3 & 4/

Fedora Core 5

& 6/

SUSE Desktop

Linux 9 & 10/

Debian Linux 5

& 6/

Ubuntu Linux 5

&6
Price Rs 2499/- Rs 2499/- Rs 2249/-

39

Photon & Photon Whiz – Tariffs

Plan Fixed Free Usage Additional

Name Charges usage charg
Budget Rs.150/mt 300 Mins (5 50p/min

Time 150 h Hrs) 50p/25p

Based Value Rs.325/mt 1800Mins 50p/25p

325 h (30 Hrs)

Value Rs.525/mt 3600Mins

525 h (60 Hrs)
Data ME Rs.500/mt 1 GB

Based Economy h Rs.2/MB

ME Rs.650/mt 1.5GB

Jumbo h Rs.2/MB
Unlimite Unlimite Rs Unlimited

d Plan d Data 799/mth data usage

Plan 799

Tata Photon+ USB Modem

Tata Photon Plus is a new Mobile Broadband Service. Tata Photon+ - the next

generation technology offers a great mobile internet connectivity solution. With

Tata Photon Plus we now have access to the internet at never before speeds .

Never before speeds:

40

With Tata Photon+ - Mobile Broadband Service you now have access to

internet at super fast speeds using the new USB modem.

Internet on the go:

With the new USB Modem we also now have the convenience of being able to

access Tata Photon+ service ( Mobile Broadband Service) from wherever we

are.

Plug and Play:

All we now need to do is just plug the USB Modem into your Laptop/Desktop

PC and we are ready to access a whole new world of High speed internet

connectivity.

Style statement:

With Tata Photon+'s new sleek and stylish USB Modem , you are now

completely free from wires.

USB interface:

With the USB port interface one can now simply plug the USB Modem device

into either a Laptop or your Desktop PC & get ready to access high speed

internet connectivity.

41

Feature Specifications

Speed Upto 3.1 Mbps Downlink speed .

Actual internet speed will depend on

multiple factors like time of the day,

number of simultaneous users, web

page accessed, etc.

NON-RUIM Non-RUIM based programmed

device is provided to customers.

OS Win 2000, Win XP, Win Vista

Antenna External

Price: Rs 3500/- for the device.

3.2.4 RELIAncE commUnIcATIon

“The magic of mobile surfing”

Reliance Net connect Data and Voice Card

Now we don’t need to frantically search for a cyber café while on tour. Reliance

Netconnect gives us the freedom of mobile surfing anywhere in the country. Slip

the Reliance Netconnect Data & Voice Card into your laptop and you're ready to

42

go. This pocket-size wonder packs quite a punch — it works both as a modem and

a mobile phone, so you can surf at high speeds as well as make and receive calls

and SMSes from our laptop.

Reliance's cutting edge CDMA2000 1X technology offers pan-India coverage,

giving you wireless Internet access even from the remotest part of the country.

Experience it all at a cost that's incredibly affordable.

Reliance Netconnect Key Benefits:

Working while travel has never been this simple. Reliance Netconnect offers you

benefits that make it easy to connect to work or catch up with friends, no matter

where we go.

Coverage

Surf seamlessly across India in over 20,000 towns and 4.5 lakh villages and

counting.

Speed

Access files and download information at speeds up to 144kbps

Emails

Stay in touch by accessing mail while we're on the move.

Calls

Make and receive calls to any number in the world from our laptop.

43

SMS

Send and receive SMS messages from our laptop. Even multiple SMS is possible.

Address Book

Synchronise your address book with Outlook Express.

Convenience

Say goodbye to bothersome copper wires and the problem of dial-up connections

like timeouts, blackouts and frequent disconnections.

Easy to Install

Follow simple instructions after installing the software from the CD provided .

Unlimited Internet Surfing

Stay online always at just Rs 650 per month (up to 1 GB data transfer) without

bothering about running up huge phone bills.

i. Reliance Netconnect MG880 USB Modem

44

A revolutionary product from Reliance Netconnect that lets one access the Internet

anytime anywhere. This product is an unique sleek modem which can be attached

to the USB port directly and helps one to do the Internet, talk and send SMS.

Features: Connectivity

 Wireless Internet access across 20000 towns and 4.5 lakh villages and

counting

 Enhanced download & surfing speed with cutting-edge CDMA 1X

technology

 Internet browsing and download speed upto 153.6 kbps

 Compatible with Windows 2000, Windows XP & Vista

 High-speed wireless data access for laptop or tablet PC.

Voice and SMS Compatible:

 Make and receive voice calls

 Send and receive SMS.

Price : Rs 2490/- for the device

ii. Huawei EC-121 USB Modem

First time in India a revolutionary product from Reliance Netconnect that lets one

to access the internet anytime anywhere. This product is a unique modem which

45

can be attached to the USB port directly and helps to do the internet, talk and send

SMS.

Features: Connectivity

 CDMA 1x RTT 800Mhz.

 Inner Antenna.

 Auto Installation.

Voice Supported.

 Packet Data Service supported.

 Supports Incoming and Outgoing SMS.

 Laptop/PC Speaker & Mic / Head Jack can be used for voice calls.

 Windows 2000 (SP4), Windows XP (SP2), Windows Vista32/64bits, MAC

OS

Price: Rs 2500/- for the device

46

iii. PCMCIA card (Personal Computer Memory Card International

Association)

A revolutionary product from Reliance Netconnect that lets us access the Internet

anytime anywhere.

Price: Rs. 2500/- for the card.

Tariff Plans

Postpaid Plans

Tariff Plan Monthly Rental Free Usage Usage Charges

Rs. Beyond Free

Usage
Pay as you go 174 Nil 60 p/min day

30 p/min night
Swift 30 300 40 hrs day 50 p/ min

40 hrs nigh
Swift 40 Plus 400 Night unlimited 50 p/ min
Freedom 650 1 GB/ month Rs. 2.00/ MB
Freedom plus 900 1.5 GB/ month Rs. 2.00/ MB
Platinum 1500 Unlimited

47

Netconnect Prepaid Data Vouchers

5 Hour Pack 10 Hour Pack 25 Hour Pack Unlimited
Pack
Prepaid Data Rs. 111/- Rs. 202/- Rs. 404/- Rs. 1099/-
RCV (in Rs.)
Validity (in 0 0 30 30
Days)
Free SMS 50 100 300 300
Minutes of 300 600 1500 unlimited
usage (If
entire usage is
in Peak
Hours)
Minutes of 600 1200 3000 unlimited
usage (If
entire usage is
in Off Peak
Hours)

iv. Netconnect Broadband Plus

48

Features
 Wireless Broadband for laptops & desktops

 20 times faster with speed upto 3.1 Mbps

 Simply plug & play

 Fastest uploads at a speeds of upto 1.8 Mbps

 Seamless network across 20,000 towns and 4.5 lac villages

Reliance Communications has launched the Netconnect Broadband+ (Plus) service

which they call the “Fastest” internet broadband service and that also

wireless.According to Reliance Communications, the Netconnect Broadband+

(Plus) service will offer up to 3.1 Mbps download and up to 1.8 Mbps upload

speed.Netconnect Broadband Plus service will be available in 35 cities with

seamless handover to high speed 1x (CDMA Datacard) service covering 20,000

towns and 4.5 lakh villages.

Charges : Rs 3500/-

Tariff Plans

Plan Name Monthly Bundled Usage Roaming

Rental Usag Charges

beyond Free

Usage
Pay As you Go Rs. 299/- Nil Rs. 2/- per Nationwide*
49

MB
Broadband+ Rs. 499/- 10GB@ 50 paise per Nationwide*

10GB @Night Night minute

during day
Broadband+ 1 GB Rs. 650/- 1 GB Rs. 2/- per Nationwide*

Plan MB
Broadband+ 2.5 Rs. 850/- 2.5 GB Rs. 2/- per Nationwide*

GB Plan MB
Broadband+ 5 GB Rs. 1099/- 5 GB Rs. 2/- per Nationwide*

Plan MB
Broadband+ Rs. 1099/- 10GB Rs. 2/- per Citywide

Citywide 10GB MB

Plan
Broadband+ Rs. 1750/- 10GB Rs. 2/- per

10GB Plan MB Nationwide
Broadband+10GB Rs. 199/- 10GB Rs. 2/- per As per Plan

Night Add-on MB chosen

Pack**
Day Usage : 6 AM to 10 PM ; Night Usage : 10 PM to 6 AM

3.2.5 AIRTEL

Airtel USB Modem

50

Airtel USB Modem can be inserted along with a SIM card in your laptop/desktop

(in USB Slot). It works on GPRS/EDGE and gives you Anytime Anywhere

Connectivity through internet WIRELESSLY.

Airtel USB Modem advantages are:

 Large International Roaming GPRS coverage

 Technical Call Centre Support

 Customized for Airtel GPRS/EDGE usage (APN is customized to Airtel)

 Pan India Presence of Airtel Network

 Attractive plans to choose from

 1 years warranty

Features

 Quad band

 EDGE

 Plug & Play

51

 Data, SMS

 FOR USB PORT

 EDGE/ GPRS/GSM(SMS)

 SMS facilities

 For Notebooks and PCs

 Fully Customized

 International Roaming

Price: Rs 2,999/-

Tariff Plans

Standard Plan I Plan II Surf

Plan Unlimited
Airtel Data Card Rental Rs.49 Rs. 350 Rs. 599 Rs. 999

Free Bundled Usage NIL 500 MB 1 GB Unlimited

Additional Data Usage (per MB) Re.0.10p/1 Rs. 5/- Rs. 3/- NA

0 KB
Free SMS per Month NA Nil 100 100

Voice Plan Additional Voice Voice Voice

Any Plan Rental Rental Rental

52

Inclusive* Inclusive* Inclusive*

Chapter 4: Consumer behavior towards Internet data Card

When consumer purchase internet data card they still perform a similar sequence

of tasks: searching for information about different products, evaluating these

alternatives, and transacting the chosen alternative. However, the family and

friends has great impact on these activities.

Problem recognition:

The starting point is feeling the need or recognition of a problem. The need for

accessing internet at anywhere can trigger the recognition of a need or problem and

53

can have significant impact by encouraging customers to begin the information

search process (Breitenbach and van Doren, 1998).

Information Search:

Once customers identify the need they may seek information about retailers or

products to help them satisfy. Customer search regarding internet data card could

be limited because it’s a specialty product. Our analysis has shown that in terms of

internet data card customer mostly refer to family and friend as reference group.

These reference groups affect buying decision offering information like price, tariff

plan availability and so forth. Providing rewards for specific purchasing behaviors

for instance friends could appreciate that you could access internet at anywhere if

you are carrying a laptop. By identifying and affiliating with reference groups,

consumers create, enhance, and maintain their self-image. Customers who want to

create an image of mobile, technologically updated person as well as want to be

seen as members of a higher social class might buy internet data card from

Reliance or other competitor’s products.

Product Evaluation:

During this stage, consumers process different product information and make a

final value judgment. The multi attribute model provides a useful way for

summarizing how customers use the information they have about alternative

brands of internet data card. From our consumer behaviour analysis we have found

54

out that on this stage customer evaluate data card on its several attributes like price,

net speed, tariff plan which come along with, looks etc and they also decide which

attributes are most important for them. The multiattribute model shows that how a

consumer gives weights of importance to the various attributes of a data card. A

sample multiattribute model which is actually has been taken from one of our

questionnaire shown that how a consumer gives importance to different product

attributes of data card.

No. Attributes/Benefits Rating

1. Price

2. User friendly

3. Net Speed

4. Installation

5. Durability

6. Tariff plan

7. After sales service

Total evaluation score for each attributes is 5.From the above sample table we can

see that consumer is giving more importance to net speed and signal strength. So

marketer should put more focus of highlighting these two attributes

Purchase Activity:

55

Its not necessary that customer will always purchase a brand or data card with

evaluation. The data card offering benefits (having the highest evaluation) may not

be available in the store, or the customer may feel that the risks outweigh the

potential. During purchasing customer also may feel that their data card might not

be able to meet their expectations. Therefore retailer should ensure that their sales

persons are knowledgeable enough and they are also skilled presenter of their

product, otherwise it could raise confusion in customers’ mind during purchasing

of data card. Reducing the actual and perceived time of purchasing.

Post Purchase Activities:

As we know buying process doesn’t end when a customer purchase a product.

From focus group interviews we have come to know that after making a purchase

of data card, customer evaluate their experience on the basis of net speed, signal

strength amount of money they have spent. Customers often feel that service

providers do not deliver what they promise. They feel players should present the

terms and conditions and tariff plans/schemes in clear terms. Mentioning every

small detail regarding the tariff plans must be included in the bill. For example, if a

company intends to collect an advanced monthly rental from customers, then it has

to mention that in its tariff plan, so that customers are not shocked when they see a

56

bill that includes monthly advance rentals as well. This kind of practice might keep

customers away from going for a particular brand.

Perceived benefits of Internet data card

Among the process there are various factors that might influence consumers

purchase during their purchasing process. Many of these factors also reflect the

advantages and disadvantages of Internet as a shopping medium. The advantages

or benefits currently conceived by people are described as the followings.

Convenience:

From our questionnaire survey and focus group discussion we have come to know

that when a customer thinks to purchase a data card for accessing internet they

mostly its convenient to access internet at any where at any time. Especially those

who have to extensively traveling its quite convenient for them to get connected

with World Wide Web!

Time saving:

Some time data card also proves time saving from the customers especially for

business executives who have to travel extensively due to their job purpose. If they

are using a data card for accessing internet they don’t have to find out a cyber café

at an unknown place.

Economical:

57

From our secondary research we have found that for younger group of consumers

(age group of 18-28) who generally spend a lot of time for downloading different

kind of materials like music, picture, data, due to availability of some attractive

tariff plans offered by the different players along with their respective data cards,

its seems a must have utility device for all young laptop users.

DRAWBACKS.

Perceived risk of Internet data card

Perceived risk can be defined as the uncertainty that consumers face when they

cannot foresee the consequences of their purchase decision. Customer perception

of risk varies depending on individuals, situation and product. The degree of risk

that consumers perceive and their own tolerance for risk taking,are factors that

influence their purchase strategy (Schiffman and Kanuk, 2000).Individuals tend to

reduce perceived risk to some acceptable level in any given purchase situation.

Risks of internet connection speed:

Internet connection speed refers to the data transfer rate from the Internet to our

computer. Basically that means the amount of time it takes our computer to

download a given amount of data. Internet connection speeds are usually measured

in Kbps (kilobits per second, or thousands of bits per second) or KBps(kilobytes

per second).According to our study, consumers already have a predisposition that

58

data card do not provide good internet connection speed, so during products

evaluations and purchasing activities they mostly think about product attributes

e.g. internet connection speed, signal strength. Therefore here implication for

management is during product evaluation; purchase activities, retailers must take

some necessary measures to reduce the uncertainty in the customer mind by

aggressive promotional strategies, especially focusing on innovating below the line

(BTL) marketing activities, giving excellent product demonstrations during

purchase and most importantly reducing the cognitive dissonance during post

purchase behaviour by giving enough assurance about product qualities, warranty

as well as excellent after sale service.

Research Methodology

Chapter 1: Data Collection
There are two types of data; primary and secondary data.
Primary data
In this project work primary data has been collected by:
• Interviews with employees working at Vodafone people for collecting of
background information such as products explanation; market situation in
asansol, durgapur and burdwan and contact information for distributors.

59

• Discussions have been done with Vodafone representatives in the
investigated markets to apply information and further discussions after the
questionnaires.

• Questionnaires have been done on several respondents in the local area and
perception about the data card were collected. Several tele-callings were
done to gather information an about the data card after they had used it .
The questionnaires are used to get exactly and comparable answers in
questions.

Primary data has given answer in following questions in each of the studied
markets:
• Competitors name and position

• Customers

• Marketing methods used by different data card providers

• Number of people having laptop or PC

• Number of people using internet.

• Average monthly usage of internet

• Monthly expenditure of internet of the people.

• Number of different occupation & age category using internet

• Number of people aware about the data card

• Number of data card users

• Number of people favouring different categories of data card.

• Number of people aware about the vodafone data card.

• Purpose of using internet.

Secondary data

60

• Review of literatures are used to get relevant theories . Printed literatures are
articles and books in telecom sectors providing data card .

• Homepages are used for information about competitors. The information
about the different product launched by different players along with their
tarrif plans, cost ,etc. were collected from different websites.

Secondary data has given answer in following questions in each of the studied
markets:
• Information about competitors

• Information about marketing methods

Different statistical models used.
Z TEST
CHI-SQUARE.

Data Analysis

Chapter 1: Brand Recall
A sample of customers, which is representative of the Durgapur, Asansol and

Burdwan population, was surveyed and unaided recall of the brands by these

customers was recorded. It was observed that Reliance data cards had the highest

61

brand recall amongst all the brand of Internet data card. This can be attributed to

various reasons like brand perception, usage pattern, advertisement expenditure

etc. The survey administered had questions which measured the importance of

various attributes like price, net speed, signal strength, offers & discounts of

various data cards and specifically for Vodafone data card.

Chapter 2: Development of Hypothesis and Testing

Development of Hypothesis

1. Hypothesis

Price is an important factor that governs the buying behaviour of the
customers while making purchase of data card.

62

Null Hypothesis H0: Price plays an insignificant role in purchase of data
card.
Alternative Hypothesis H1 : Price plays a significant role in the purchase of
data card.
This hypothetical statement is drawn from question no. 12(in likert scale of
1-5) from the questionnaire of annexure 1. To test this hypothesis the
researcher has done z-test (two-tailed test) and the inference drawn from the
hypothesis is stated below.
INFERENCE: The observed value of the test statistic Z is 10.55 but at the
critical region the value of Z at 5% level of significance is I Z I ≥ 1.96.
Therefore, the observed value of Z does not lie in the critical region so
therefore we reject the null hypothesis and conclude that price plays a
significant role in the purchase of data card.
Mathematically:

z = x̄ ̄
- µ/S.E of x, where S.E of x̄ = σ/√n
The Null Hypothesis is H0 : µ = 3 (where the respondents are giving no
response)
Then the Alternative Hypothesis H1 : µ ≠ 3
= 3.76 – 3/0.07 = 10.55
Since I Z I = 10.55 > 1.96, hence H0 = Rejected.
Price of the data card: In this research, it is discovered that price of the
Data card is playing an important role in the purchase decision of the
customer; Data cards with high prices are less preferred. BSNL is the only
company in the market, which is providing Data cards on rental basis, and it
is one of the main reasons behind BSNL’s success. Reliance
Communication and Tata Indicom is also providing data cards at cheaper

63

rates. Normal Data cards ranges from Rs 2000 to Rs 3000 and 3G,
Broadband Data cards range starts from Rs 3500 onwards.
2. Hypothesis:

Installation of the data card plays an important role in the purchase decision
of the data card.

Null Hypothesis H0 = Installation of the data card plays an insignificant role
in the purchase decision of data card.

Alternative Hypothesis H1 = Installation of the data card plays a significant
role in the purchase decision of data card.

critical region the value of Z at 5% level of significance is I Z I ≥ 1.96. So,
the observed value of Z does not lie in the critical region so therefore we
reject the null hypothesis and conclude that price plays a significant role in
the purchase of data card.

Mathematically:

z = x̄ ̄
response)

64

= 3.8 – 3/0.074 = 10.81
Installation process: The installation process of data card should be simple
and can be easily understood by the user, because the user is the one who is
going to operate it with the machine, and if it is a complicated process then
user might think for other options. A user wants simplest process to get
connected with the internet, just plug in the data card and connect, if he/she
needs to install some special software’s in the PC or Laptop for using the
data card, it is not possible for everyone to handle this installation process,
so installation process plays an pivotal role in the purchase decision.

3. Hypothesis:
Durability of the Data card plays influential role in the purchase decision of
data card.
Null Hypothesis H0 = Durability of the data card plays an insignificant role
in the purchase of Data card.
Alternative Hypothesis H1 = Durability of the Data card plays a significance
role in the purchase of Data card.

65

reject the null hypothesis and conclude that durability of the data card plays
a significant role in the purchase of data card.
Mathematically:

z = x̄ ̄
response)
= 3.9 – 3/0.073 = 12.32
Durability: Purchasing a Data card is mostly a long-term investment, so a
Data must have to be durable enough to meet the requirements of the user. A
Data card should not get over heated while in use, should be made up of un-
breakable plastic are some features of durable Data card.

4. Hypothesis

User friendliness of the data card plays an important role in the purchasing
decision of data cards.
Null Hypothesis H0 = User friendliness of the data card plays an
insignificant role in the purchase of Data card.
Alternative Hypothesis H1 = User friendliness of the data card plays a
significance role in the purchase of Data card.

66

INFERENCE: The observed value of the test statistic Z is 18 but at the
reject the null hypothesis and conclude that user friendliness of the data
card plays a significant role in the purchase of data card.
Mathematically:

z = x̄ ̄
response)
= 4.8 – 3/0.6 = 18
Since I Z I = 18 > 1.96, hence H0 = Rejected.
User Friendly: A Data should be user friendly in operations. Apart from
connecting internet, Data cards comes with multiple features such as
receiving and sending SMS, making and receiving voice calls, etc, so all
these functions should be easy to operate, if it is little complicated it
becomes a hassle for the user and ultimately affects the purchasing decision.

5. Hypothesis

Tarrif plans offered by the service providers of the data card play an
influential role in the consumer buying behavior.
Null Hypothesis H0 = Tariff plans of the data card plays an insignificant role
Alternative Hypothesis H1 = Tarrif plans of the data card plays a significance
role in the purchase of Data card.

67

reject the null hypothesis and conclude that user friendliness of the data
Mathematically:

z = x̄ ̄
response)
= 3.81 – 3/0.068 = 11.91
Tariff Plans: Apart from the price of the Data, card how much the internet
service is costing to the pocket of the user is very important factor in the
purchase of any Data card. A internet user wants tariff plans which fits into
his/her budget and fulfills all the other requirements. Again BSNL is the
market leader in this segment with cheapest tariff plans and after that
Reliance and Tata Indicom comes.

6. Hypothesis

Speed of the data card plays a pivotal role in the purchase decision of data
card.

68

Null Hypothesis H0 = speed of the data card plays an insignificant role in
the purchase of Data card.
Alternative Hypothesis H1 = speed of the data card plays a significance role
reject the null hypothesis and conclude that speed of the data card plays a
significant role in the purchase of data card.
Mathematically:

z = x̄ ̄
response)
= 4.12 – 3/0.06 = 18.66
Net Speed: The internet speed is very important for the users and slow
internet is not at all preferred in our fast moving lives. With the introduction
of Broadband and 3G in the market of Data cards, the competition has got
even tougher. Customers prefers internet with good downloading speed.

7. Hypothesis

69

After sales service provided by the service providers plays a significant role
in the purchase decision of data cards.
Null Hypothesis H0 = After sales service of the data card plays an
Alternative Hypothesis H1 = After sales service of the data card plays a
reject the null hypothesis and conclude that after sales service of the data
Mathematically:

z = x̄ ̄
response)
= 3.50 – 3/0.08 = 6.25
After Sale Service: After sales service like sending bills on time, keep the
customers updated with the new developments in different areas etc
improves the chances of increasing the sale of data card, and plays an
important role in the purchase decision of the customer also.

70

8. Hypothesis

Image of the company in the minds of the customers plays a vital role in the
purchase decision of data card.

Null Hypothesis H0 = mage of the company of the data card plays an
Alternative Hypothesis H1 = Image of the company of the data card plays a
INFERENCE: The observed value of the test statistic Z is but 3.87 at the
reject the null hypothesis and conclude that image of the company of the
data card plays a significant role in the purchase of data card.
Mathematically:

z = x̄ ̄
response)
= 3.31 – 3/0.08 = 3.87

71

Image of the company: The goodwill created in the market through years
of providing superior service quality helps the company to sale its products,
because it’s the image of the company in the minds of the customer who is
going to purchase the data card. If the brand is trusted in the market, it
makes a positive impact on the purchase decision.

Analysis of the factors affecting the buying behaviour of DATA CARD
SIGNIFICANT TEST [ASYMMETRY TWO TAILED]
Statement of Sample Standard Test statistic. Zcritical Hypothesis
Hypothesis mean deviation Applied Z α=0.05 Status
Of the TEST( two
Sample tailed)
(x̄) (Zobserved)

(σ x̄)

H1 = Price plays a 3.76 0.07 10.55 1.96 H0
pivotal role in the REJECTE
purchase of data card D

H2= Installation of the 3.8 0.074 10.81 1.96
data card is an important H0
factor in the purchasing REJECTED
of datacard
H3= Durability of the 3.9 0.073 12.32 1.96
data card plays an H0
influencial role in the REJECTED
buying of data card
H4 = User friendliness 4.08 0.06 18 1.96 H0
of the data card plays an REJECTED
important role in the
purchasing of data card
H5 = Tarrif plans of the 3.81 0.068 11.91 1.96 H0
data card plays an REJECTED
infuencial role in the
consumer buying
behaviour
H6 =Speed of the data 4.12 0.06 18.66 1.96 H0
card plays an important REJECTED
72

role in the purchase of
data card
H7 =After sales service 3.50 0.08 6.25 1.96 H0
plays an significant role REJECTED
in the purchase of data
card
H8 =Image of the 3.31 0.08 3.87 1.96 H0
company plays a vital REJECTED
role in the purchase of
data card.

9. Hypothesis:

High phone book memory in data cards is an essential feature of the Data
card for the consumers purchasing descision.
Null Hypothesis H0 = High phone book memory makes a heavy influence in
the buying behaviour of the data card.
Alternative Hypothesis H1 = High phone book memory does makes any
influence in the buying behaviour of Data card.
INFERENCE: The observed value of the test statistic Z is 0.09. At the
the observed value of Z lie in the critical region so therefore we accept the
null hypothesis and conclude that high phone book memory is an essential
feature in the buying behaviour of Data card.
Mathematically:

z = x̄ ̄
response)
73

= 3.02 – 3/0.22 = 0.09
Since I Z I = 0.09 < 1.96, hence H0 = Accepted.
10. Hypothesis

Micro SD card slot in the data card is an essential feature of data card, which
makes an influence in purchase of Data card.
Null Hypothesis H0 = Miro SD card slot plays a significance role in the
purchase of the data card.
Alternative Hypothesis H1 = Micro SD card slot plays an insignificant role in
the purchase of Data card.
INFERENCE: The observed value of the test statistic Z is 1.06 .At the
the observed value of Z lies in the critical region so therefore we accept the
null hypothesis and conclude that Micro SD card slot plays a significance
role in the purchase of the data card.
Mathematically:

z = x̄ ̄
response)
= 3.18 – 3/0.169 = 1.06

74

11. Hypothesis

High storage capacity & supporting SMS facility in a data card plays an
important role in the purchase of Data card.
Null Hypothesis H0 = High storage capacity & supporting SMS plays a
significance role in the purchase of the data card.
Alternative Hypothesis H1 = High storage capacity & supporting SMS plays
a insignificant role in the purchase of Data card.
null hypothesis and conclude that High storage capacity & supporting SMS
facility is an essential feature which plays an essential role in the purchase of
Data card.
Mathematically:

z = x̄ ̄
response)
= 3.24 – 3/0.17 = 1.41
12.Hypothesis

75

Making calls & receiving calls is an essential feature of the Data card and
plays an important role in the purchase of the Data card.
Null Hypothesis H0 = Making calls & receiving calls feature of the Data card
plays a significance role in the purchase of the data card.
Alternative Hypothesis H1 = Making calls & receiving calls feature of the
Data card plays an insignificant role in the purchase of Data card.
null hypothesis and conclude that Making calls & receiving calls feature of
the Data card plays a significance role in the purchase of the data card.
Mathematically:

z = x̄ ̄
response)
= 3.35 – 3/0.22 = 1.59
Since I Z I = 1.59 < 1.96, hence H0 = Accepted
Analysis of the factors affecting the buying behaviour of DATA CARD
SIGNIFICANT TEST [ASYMMETRY TWO TAILED]

76

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