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Case study mahanagar telephone nigam limited marketing essay

Broadband usage in india Internet usage is rapidly growing in urban areas like Cosmopolitan cities, semi-urban areas in India. I-enabled services by governmental agencies, educational institutions and commercial sector force users of these services to seek superior internet access like broadband, WiMax in the place of traditional dial-up access.

With the reforms in telecom sector in India, many private players started internet services affecting monopolistic public sector telecom giant BSNL Bharat Sanchar Nigam Limited. With the advent of private ISPs, the perception and brand choice of broadband consumers are witnessing dynamic shift in favor of private players.

This paper attempts to identify the factors affecting brand perceptions of broadband service. Further, it studies the cause and effect, mediating effects of consumer brand perceptions and conceptualizes a mediating-mediating model to capture these effects.

The results suggest that consumer adoption of broadband service is affecting the brand perceptions measured in terms of satisfaction.

Case Study Mahanagar Telephone Nigam Limited Marketing Essay

Broadband, Adoption, Normative constructs, mediating. According to Internet World Stats, an online internet usage portal, it is only 0. There are four categories of broadband users: The broadband penetration is expected to go up with impending WiMax broadband in India.

The markets for broadband that remain untapped are rural, high cost, low-income and high risk. Serving these markets has required large investments that have not been forthcoming from the private sector Francis Porenza 2007. The deployment focus now is shifting towards broadband access services and in this regard, the Government of India has taken a number of proactive steps to boost the penetration and deployment of advanced telecommunications infrastructure in all parts of the country Abhay Karandikar, Zainul Chabriwala 2006.

Government of India has taken numerous efforts to increase the tele-density 25 in the coming years. The Telecom Regulatory Authority of India TRAIthrough its working papers, is promoting broadband internet access and asked the service providers to diversify their operations to rural India. Till 2004, the broadband market in India is dominated by 2 telecom public sector companies viz.

Their market shares are witnessing sharp decline due to entry of many private players like Reliance, Tata Teleservices, and Vodafone etc. The users are shifting from one player to another due to various reasons like cost, speed, quality of service etc. Major beneficiaries of broadband internet services are health, education, transport and banking sectors. BSNL is a state owned telecom operator and is offering almost all the telecommunications services from basic telephony to video conferencing.

Besides, it has sizeable market share in rural India. From a conservative telecom operator controlled by Government of India, it has transformed into more corporatized entity resulting improved delivery, quality of service. By 2006, BSNL had over 450,000 kilometers of fibre, compared to about 65,000 kilometers of its nearest rival, Reliance Malik Payal 2008 chap 9.

Broadband user adoption is affected by attitudinal constructs relative advantage, utilitarian outcomes, hedonic outcomes, social outcomes and service qualitywhich represent consumers' favorable or unfavorable evaluations of the behavior in question i. In this paper, author attempts to develop a normative model which is tested using structural equation modeling technique. From prior studies, author developed a mediating-mediating model capturing various factors influencing broadband BB consumer satisfaction.

It is found that expectation constructs has a significant mediatory role again mediated by adoption constructs leading to consumer satisfaction. When it comes to brand choice, it is affected by social, utility and other case study mahanagar telephone nigam limited marketing essay.

Final Project Report

Economic theory has contributed to brand choice research. This contribution is reflected in rational choice theory that postulates consumers seek to maximize utility of their decision. According to Jacoby, rational choice theory argues buyers do not choose randomly and that rationality is the only reasonable explanation for their reactions to changes in relative prices Jacoby, 2001. Accepting this theory would lead to rejection of psychological factors including past purchase experiences, current expectations, motives, mood, personality, attitudes, values, beliefs, memory etc.

Brown and Venkatesh, 2005; Dwivedi and others, 2007; Rogers, 1995; Venkatesh and Brown, 2001 have listed various constructs affecting broadband adoption of Indian consumers. In their paper, they argue that case study mahanagar telephone nigam limited marketing essay different types of cognitive processing, changes of preferences, the focus of the need for identity and social networks are determinants leading to product choice and explaining variations in market dynamics Janssen Marco, Jager Wander, 2001.

They found that advertising works through attracting switchers but did little in modifying the repeat purchase probabilities of those who have just purchased the brand Deighton et al. Faulhaber and Christiaan Hogendorn 2000 found that competition in the provision of interactive broadband infrastructure to metropolitan area households is likely if the market is left unfettered. While this infrastructure market is clearly not perfectly competitive, it would appear that two or even three firms can offer fiber infrastructure at higher demand levels and survive.

Strategic dynamic behavior takes the form of dissipating rents by increasing network size relative to the static model, which is an unambiguous gain for consumers. Fang-Mei Tseng 2006 listed upload speed, connection stability, usage fees, download speed, service quality of provider, static ip address, brand of service case study mahanagar telephone nigam limited marketing essay, and awareness of the provider as the influencing factors of consumer choice of broadband services in Taiwan.

He concluded that if the usage fees of broadband services falls, the dialup users in Taiwan will switch over to ASDL or Cable internet. But the fixed ASDL users will less likely to switch over to other options. The "India's Broadband Economy: It further says that it is expected to launch new business lines and increased efficiency in existing businesses, leading to direct employment of 1.

The own-price elasticity of broadband demand is statistically significant and has a substantial coefficient value. The cross-price sensitivity of broadband demand with respect to dialup price is also statistically significant, and supports the notion of the two services being substitutes Kenneth Flamm, Anindya Chaudhuri 2005.

Broadband has developed as a type of high-speed Internet access that supports the transmission of data at speeds far greater than traditional dial-up access in US. While common-carrier case study mahanagar telephone nigam limited marketing essay have now been cast aside for cable and DSL broadband providers, numerous regulations and statutes still remain in place that will prevent monopoly control of broadband service Justin P.

More information on prices could increase consumer price sensitivity for undifferentiated products. In terms of Web behavior, the ease with which potential goal-directed shoppers can find the information they want, and the reliability they can place on that information, will be key determinants in their repeated use of the Web Kathy Hammond, Gil McWilliam, Andrea Narholz Diaz, 1997.

Previous studies suggested that the significant role of attitudinal factors such as relative advantage, utilitarian outcomes, hedonic outcomes and service quality on influencing consumers' behavioral intentions to adopt personal computers Brown and Venkatesh, 2005 and broadband Dwivedi, 2005. A total of 16 constructs were expected to be correlated to the BI of consumers when adopting broadband Internet in India. Of these 16 constructs three, including relative advantage, hedonic outcomes and cost, significantly correlated to the BI of consumers.

In terms of the size of the effect of these three constructs that contributed significantly to behavioral intentions, the relative advantage construct had the largest impact in the explanation of variations of BI Yogesh K.

A satisfaction dimension corresponds to a number of product attributes or features that together generate particular aspects of performance, such as price, perceived quality, ease of service, convenience in availability, variety of features, attractiveness of the product, and advertising of the product.

The most important factors that will cause them to change are the perceived quality of the product and attractiveness of the product, while convenience in availability is not found to be of a great influence in brand switching.

Since users fall into four categories: Product familiarity had a significant impact on Indian consumers' attitudes, subjective norms, intention to buy, and, ultimately, purchase behavior of the low innovator and high innovator groups HoJung Choo, Jae-Eun Chung, and Dawn Thorndike Pysarchik 2004. There has been relatively little research focus on mediatory role played by any of the subjective factors.

However, it is felt that a model would be of immense use for the academics and the industry, if it captures the important factors that influence the satisfaction of broadband users available for practitioners.

The author has focused the research in that direction and carried on the research to come up a complete and comprehensive model. In figure 2, a formative model for structural equation modeling technique is presented for the academics, telecom industry managers. This model has been proved empirically in findings section.

Assorted hazards to MTNL

It is suggested that the academics can use this model with a fair amount of care as this designed for a particular geographical setting i. This particular area is chosen for study keeping in view of the economic diversity, cultural diversity and social divergence. Chennai is a metropolitan city cosmopolitan in social setting and has wide divergence in socio-economic life.

It has vast majority of growing middle class and urban poor. The adjoining areas are semi urban in socio-economic setting and comprise even villages turning as towns.

Case study mahanagar telephone nigam limited marketing essay

In order to capture the interdependence of adoption, perception constructs to achieve consumer satisfaction; the author has conceived the following model in fig 1. Normative constructs are connection, charges, rental, usage plans, fault repair procedure, customer care, value added services availability and payment facilities.

Attitudinal constructs are provider service quality, cost, provisioning speed, connection speed, post provisioning, provider's plans, superior payment facilities and perceptions on other operators' service. Adoption constructs are usage, duration, usage of other service providers, switchover, purpose, user, payment mode, availability, service quality, speed, advertisement, influencers, and point of purchase and payment facilities.

Expectation constructs are provisioning speed, price, service quality, utility, customer care, and fault attendance, post provisioning care, payment facilities and value added services.

Consumer satisfaction is determined by provisioning speed, price, service quality, utility, customer care, and fault attendance, post provisioning care, payment facilities and value added services. This approach is adopted in most econometric data collection.

The survey design is regarded as the most appropriate research design to measure the perceptions of the respondents in this study. A survey is the most appropriate research design as it can enable the researcher to collect information from a large population. Based on the feedback, the questionnaire was revised by either deleting some constructs or adding some constructs.

Questionnaire consists of VI Parts. Of these, 1574 individuals have responded to the questionnaires. Only 1520 responses were found valid with all questions' responses and remaining 54 responses were rejected either due to incompleteness or respondent own responses. Chennai Metropolitan and adjoining areas covered by Chennai BSNL have a good mix of variety of commercial and economic units' viz.

Besides, the education sector is making strident progress with new generation educational institutions in various faculties. Growing medical tourism and health care requires a great deal of investment in information technology including internet enabled services. As population of these areas represents a mix of all races of India, it is felt that the study could be representative of consumer perceptions of broadband services.

Therefore, the findings of this study can be generalized to India as a whole and of course, with a fair amount of care. The findings can be applied at ease to all urban areas in India. As broadband penetration is quite high in urban areas compared to rural India, the study will be of immediate use to telecom companies either prospective or existing.

Respondents' characteristics based on demographics are listed out in table 1. In other words, a series of split but independent multiple regressions were simultaneously estimated by SEM.

Therefore, the direct and indirect effects were identified Tate 1998. However, a series of separate multiple regressions had to be established based on "theory, a priori experience, and the research objectives to distinguish which independent variables predict each dependent variable" Hair et al, 1998, p. In addition, because SEM considers a measurement error, the reliability of the predictor variable was improved.

Linear structural equation models SEMs are widely used in sociology, econometrics, management, biology, and other sciences. A SEM without free parameters has two parts: It is often case study mahanagar telephone nigam limited marketing essay that the path diagram is nothing more than a heuristic device for illustrating the assumptions of the model.

However, in this research, the researcher will show how path diagrams can be used to solve a number of complex problems in structural equation modeling.

  • Janssen, Wander Jager 2003;
  • Hazard decrease through concrete stairss is far more common, and the particulars will be related to the type of concern and hazard involved;
  • MTNL is confirmed merely in two metropoliss i;
  • In August this year, the private operator unceremoniously unseated BSNL from its leadership position as the largest integrated telecom operator in the country in subscriber terms , pushing ahead with 78;
  • To evaluate the strength and weakness of competitors of BSNL and to furnish recommendations for meeting the competition.

Structural equation models with latent variables SEM are more and more often used to analyze relationships among variables in marketing and consumer research. Some reasons for the widespread use of these models are their parsimony they belong to the family of linear modelstheir ability to model complex systems where simultaneous and reciprocal relationships may be present, such as relationship between satisfaction and various normative constructs.