History And Reforms In Indian Telecom Sector

Published Date: 02 Nov 2017

India's tele density has improved from under 4% in March 2001 to around 76% by the end of March 2012. Cellular telephony continues to be the fastest growing segment in the Indian telecom industry. The mobile subscriber base (GSM and CDMA combined) has grown from under 2 m at the end of FY00 to touch 919 m at the end of March 2012 (average annual growth of nearly 64% during this 12 year period). Tariff reduction and decline in handset costs has helped the segment to gain in scale. The cellular segment is playing an important role in the industry by making itself available in the rural and semi urban areas where tele density is the lowest.The fixed line segment continues to decline in terms of the subscriber base. It has declined to 32.17 m subscribers in March 2012 from 34.73 m in March 2011. The decline was mainly due to substitution of landlines with mobile phones. As far as broadband connections (>=256 kbps) are concerned, India currently has a subscriber base of 13.8 m. Broadband penetration received a boost from the auction of broadband spectrum. The network providers have stated that they would be looking at boosting the contribution of data to their revenues. This bodes well for the future of broadband services.

The Indian mobile telephony market has grown at a rapid pace in the past six to seven years. Declining call tariffs in conjunction with favorable regulatory policies have lead to a tremendous increase in the subscriber base, crossing the 584.32 million mark in March 2011 for wireless user. While the growing subscriber base has positively impacted industry revenues (which have risen consistently over the past few years), operator margins also have shrunk, pulling down "Average Revenue per User" (ARPU). As ARPU declines and voice gets commoditized, the challenge is to retain customers, develop alternative revenue streams, and create a basis for differentiation in high-churn markets.

In the wake of changing industry markets, telecom operators are looking at "Mobile Value Added Services" (MVAS) as the next wave of growth, and a large chunk of revenue is expected to flow from VAS in the near future. Market growth drivers on the supply side include declining ARPU, brand differentiation needs, and growing focus on entertainment-related content; demand-side drivers include the booming Indian economy, increasing user comfort with basic mobility services, personalization of content and devices and cheaper handsets. From the early days of "Person-to-Person Short Message Service" (P2P SMS), the industry has witnessed an emergence of growing portfolio of services including graphics/wallpapers downloads, ringtones and caller ring back tones (CRBT), SMS contests, and games.

1.2 History and Reforms in Indian Telecom sector:

India’s telecom sector has been doing exceptionally well in past decade. It’s structural and institutional reforms have provided tremendous growth opportunity to this sector. India has nearly 200 million telephone lines making it the third largest network in the world after China and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world.

The first reforms in Indian telecommunications sector began in 1980s when the private sector was allowed in telecommunications equipment manufacturing. In 1985, Department of Telecommunication (DOT) was established.

Year

History of Indian Telecommunication

1851

First operational land lines were laid by the government near Calcutta (seat of British power)

1881

Telephone service introduction in India.

1883

Merger with the postal system.

1923

Formation of Indian Radio Telegraph Company(IRT)

1932

Merger of ETC and IRT into the Indian Radio and cable communication company(IRCC)

1947

Nationalize of all foreign telecommunication companies to form the posts, Telephone & Telegraph (PTT), a monopoly run by the government’s ministry of communication.

1985

Department of telecommunication(DoT) established, an exclusive provider of domestic and long-distance service that would be its own regulator(separate from postal system)

1986

Conversation of DoT into two wholly government-owned companies :VSNL and MTNL

1997

Telecom Regulatory Authority of India created.

1999

Cellular Service are launched in India. New National Telecom policy is adopted.

2000

DoT becomes a corporation,BSNL.

Table 1.1 History chart of Indian Telecom Industry

1.3 Objective of the Project:

To understand the key dimension of service quality for mobile services in the telecom sector.

To understand which factor of service quality have significant impact on customer satisfaction.

1.4 Purpose of the study:

The rational of this proposed investigation is to explore the factors that affect customer’s satisfaction as 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. The telecom services have been recognized the world-over as an important tool for socioeconomic development for a nation and hence telecom infrastructure is treated as a crucial factor to realize the socio-economic objectives in India

1.5 Theoretical Framework (Service Quality)

Service quality is an achievement in customer service. It reflects at each service encounter. Customers form service expectations from past experiences, word of mouth and advertisement. In general, Customers compare perceived service with expected service in which if the former falls short of the latter the customers are disappointed.

The accurate measurement of an objective aspect of customer service requires the use of carefully predefined criteria.

The measurement of subjective aspects of customer service depends on the conformity of the expected benefit with the perceived result. This in turns depends upon the customer's expectation in terms of service, they might receive and the service provider's ability and talent to present this expected service. Successful Companies add benefits to their offering that not only satisfy the customers but also surprise and delight them. Delighting customers is a matter of exceeding their expectations.

Pre-defined objective criteria may be unattainable in practice, in which case, the best possible achievable result becomes the ideal. The objective ideal may still be poor, in subjective terms.

Service quality can be related to service potential (for example, worker's qualifications); service process (for example, the quickness of service) and service result (customer satisfaction).

1.5.1 Dimensions of Service Quality

A customer’s expectation of a particular service is determined by factors such as recommendations, personal needs and past experiences. The expected service and the perceived service sometimes may not be equal, thus leaving a gap.

Ten determinants that may influence the appearance of a gap were described by Parasuraman, Zeithaml and Berry.

Competence is the possession of the required skills and knowledge to perform the service. For example, there may be competence in the knowledge and skill of contact personnel, knowledge and skill of operational support personnel and research capabilities of the organization.

Courtesy is the consideration for the customer’s property and a clean and neat appearance of contact personnel, manifesting as politeness, respect, and friendliness.

Credibility is the factors such as trustworthiness, belief and honesty. It involves having the customer’s best interests at prime position. It may be influenced by company name, company reputation and the personal characteristics of the contact personnel.

Security is the customer feeling free from danger, risk or doubt including physical safety, financial security and confidentiality.

Access is approachability and ease of contact. For example, convenient office operation hours and locations.

Communication means both informing customers in a language they are able to understand and also listening to customers. A company may need to adjust its language for the varying needs of its customers. Information might include for example, explanation of the service and its cost, the relationship between services and costs and assurances as to the way any problems are effectively managed.

Knowing the customer means making an effort to understand the customer’s individual needs, providing individualized attention, recognizing the customer when they arrive and so on. This in turn helps in delighting the customers i.e. rising above the expectations of the customer.

Tangibles are the physical evidence of the service, for instance, the appearance of the physical facilities, tools and equipment used to provide the service; the appearance of personnel and communication materials and the presence of other customers in the service facility.

Reliability is the ability to perform the promised service in a dependable and accurate manner. The service is performed correctly on the first occasion, the accounting is correct, records are up to date and schedules are kept.

Responsiveness is to the readiness and willingness of employees to help customers in providing prompt timely services, for example, mailing a transaction slip immediately or setting up appointments quickly.

Later, the determinants were reduced to five i.e. Tangibles; Reliability; Responsiveness; Service Assurance and Empathy.

Dimensions in Indian Telecom Industry

1. Tangibility in telecom industry are the physical evidence, for instance, the appearance of the service outlets, uniformed & well groomed employees, Advance technology like computers, laptops , WiFi connectivity etc .

2. Reliability in telecom industry is related to promised service in dependable and accurate manner should be conducted. The authenticity of the data, records should be well maintained. A trust with the customer is build. No hidden charges and other unasked service billed.

3. Responsiveness in telecom talks about the readiness and willingness of the employees to help their customer 24*7. A separate number should be given to entertain the problems of their customers like Vodafone in India have 111 or Airtel have 121.

4. Assurance in telecom talks about the confidence and ability of the employee that she/he is capable to solve their customer problem and the employee can able to build a level of trust on them.

5. Empathy in telecom refers to the caring , individual attention which the telecom operators give to its customers. For eg. Vodafone have my personal plans etc.

1.5.2 Service Quality Model (or) GAP model

The service quality model or the ‘GAP model’ developed by a group of authors - Parasuraman, Zeithaml and Berry at Texas and North Carolina in 1985, highlights the main requirements for delivering high service quality. It identifies five ‘gaps’ that cause unsuccessful delivery. Customers generally have a tendency to compare the service they 'experience' with the service they ‘expect’. If the experience does not match the expectation, there arises a gap.

GAP 1: Gap between consumer expectation and management perception: This gap arises when the management does not correctly perceive what the customers want. For instance – hospital administrators may think patients want better food, but customer may be more concerned with the responsiveness of the employee.

GAP 2: Gap between management perception and service quality specification: Here the management might correctly perceive what the customer wants, but may not set a performance standard. An example here would be that hospital administrators may tell the nurse to respond to a request ‘fast’ , but may not specify ‘how fast’.

GAP 3: Gap between service quality specification and service delivery: This gap may arise owing to the service personnel due to poor training, incapability or unwillingness to meet the set service standard.

GAP 4: Gap between service delivery and external communication: Consumer expectations are highly influenced by statements made by company representatives and advertisements. The gap arises when these assumed expectations are not fulfilled at the time of delivery of the service. For example – The hospital printed on the brochure may have clean and furnished rooms, but in reality it may be poorly maintained – in this case the patient’s expectations are not met.

GAP 5: Gap between expected service and experienced service: This gap arises when the consumer misinterprets the service quality. The physician may keep visiting the patient to show and ensure care, but the patient may interpret this as an indication that something is really wrong.

C:\Users\user\Desktop\45.png

Fig. 1.1 Service Quality Model or The ‘GAP model’

1.5.3 Measuring Service Quality

Measuring service quality may involve both subjective and objective processes. In both cases, it is often some aspect of customer satisfaction which is being assessed. However, customer satisfaction is an indirect measure of service quality.

Measuring subjective elements of service quality –

Subjective processes can be assessed in characteristics (assessed be the SERQUAL method); in incidents (assessed in Critical Incident Theory) and in problems (assessed by Frequenz Relevanz Analyse a German term. The most important and most used method with which to measure subjective elements of service quality is the Servqual method.

Measuring objective elements of service quality –

Objective processes may be subdivided into primary processes and secondary processes. During primary processes, silent customers create test episodes of service or the service episodes of normal customers are observed. In secondary processes, quantifiable factors such as numbers of customer complaints or numbers of returned goods are analysed in order to make inferences about service quality.

Definitions –

Zeithaml & Bitner (2003) states that: "Service quality is a focused evaluation that reflects the customer's perception of specific dimensions of service: Reliability, Responsiveness, Assurance, Empathy, Tangibles. Satisfaction, on other hand, is more inclusive: it is influenced by perceptions of Service Quality, Product Quality, and Price as well as situational factors and personal factors.

Service quality affects customer satisfaction by providing performance (Real Benefits). For example, if consumers believe they have entered the McDonald's restaurant, they will get food, service, high quality everywhere the same, no matter the location of the restaurant, put forward by Millend M Lele (1995).

"The creation of customer satisfaction can provide several benefits, including the relationship between companies and consumers are harmonious, providing a good basis for the purchase and re-creation of customer loyalty, and form a recommendation by word of mouth that can benefit the company" (Fandi Tjiptono, 1997).

CHAPTER 2:- LITERATURE REVIEW

2.1 Service Quality

Sattari Setayesh, Sangari Esmail Salehi(2002) This paper evaluates service quality in Iran’s mobile telecom market based on the well-known SERVQUAL model, with modifications made by Wang Po-Lo (2002) to reflect the industry attributes of mobile telecom. Based on 250 respondents, results indicate that there is a support for the application of this model in Iran.

Zekiri Jusuf(2011) The paper Service quality and customer satisfaction are very important concepts that companies must understand if they want to remain competitive and grow. In today’s competitive environment delivering high quality service is the key for a sustainable competitive advantage. Customer satisfaction does have a positive effect on an organization’s profitability. Satisfied customers form the foundation of any successful business as customer satisfaction leads to repeat purchase, brand loyalty, and positive word of mouth.

2.2 Customer preference and Satisfaction

Rajpurohit R.C.S and Vasita M.L.(2011) identify consumer preferences and their satisfaction level towards the mobile phone service providers available in Jodhpur city, Rajasthan. They conducted a survey on 250 mobile phone users of various mobile phone service providers such as Vodafone, Airtel, BSNL, Reliance, Idea, Tata Indicom and few other players .

Dr. Sabbir Rahman Muhammad(2009)The purpose of the paper is to find out the determinants that are significantly influencing telecom customer’s perception in Bangladesh. The study surveyed 450 telecom customers in Bangladesh from Dhaka city to determine the key influential factors that significantly influence on their perception. The data analyses were conducted by exploratory factor analysis, confirmatory factor analysis and structural equation modeling to test the hypothesis. The results of the statistical analysis reflected that most of the telecom customers are highly concerned about service quality followed by corporate image. Few studies have explored over the years under this market regarding this research issue.

Rahman Sabbir, Haque Ahasanul & Ahmad Mohd(2011) The purpose of this paper was to investigate the choice criteria for a mobile phone operator in the Malaysian Mobile Telecom market by the customers. Structural equation models were applied to test the propositions by means of a survey of a random sample of 400 mobile telecom customers from major cities in Malaysia. It was found that the price and service quality hypothesis are more important than the brand image hypothesis. From this research, mobile telecom managers can learn and plan tooffer attractive offer in the market that meet Malaysian customers’ needs.

2.2.1 Customer Loyalty

Chen Ching-Fu & Myagmarsuren Odonchimeg The paper aims to examine customer loyalty and explore the interrelationships between customer equity variables, namely brand image, company image, relationship quality and relationship value, and customer loyalty. The study conceptualizes an integrated customer loyalty model and applies it to Taiwan’s telecommunications services industry in the business-to-customer environment

John Jessy(2010) The paper investigates the reasons behind the hard core customer loyalty even in an environment with high quality alternatives. The results indicated that network quality, customer service along with value added services provided by BSNL enhanced the loyalty of the customers. It is recommended that the BSNL mobile services enterprises should work on its problems related to servers.

Vanka Gajo(2007) The paper discusses corporate branding from consumer’s point of view that how much they value it and what type of role it has. It is quantitative study, A questionnaire is used in order to investigate corporate branding and other influencing factors involved in purchase decision of the customers. Population selected for this study are Belgrade University students which is the most of Serbian youth segment and is a valuable source that gives precise information with high probability about market preferences according to the Research of Serbian republic statistical office.

Noll A. Michael(2003) The paper summarizes the deliberations of a workshop to discuss the current state of basic research related to telecommunication The overall consensus was that there is a problem facing the future of basic research in telecommunication because of inadequate levels of support and increasing emphases on short term applications. These factors are largely a result of restructuring, the resulting competition, and the poor financial health of the telecommunication industry

2.3 SERVQUAL

Parasuraman et al. (1991) agreed with this general conception of service quality in defining service quality as, a measure of how well the service level which is delivered matches customer expectations". Based on this disconfirmation model (or so-called gap model) of service quality was developed, Parasuraman et al. developed the well-known ‚SERVQUAL model to measure how consumers assess service quality in terms of ten original dimensions, which were later reduced to five (tangibles, reliability, responsiveness‚ assurance and ‚empathy‘)

Naik C.N. Krishna, Gantasala Swapna Bhargavi & V. Prabhakar Gantasala(2010) This research uses SERVQUAL to analyze the gap between perceptions and expectations of the customer, concerning with the service at retail units in the South Indian state of Andhra Pradesh. Customer Satisfaction level is assessed for the services offered at select retail units in the city of Hyderabad. Five dimensions in service quality (servqual), tangibility, reliability, responsiveness, empathy, and assurance have been considered for this empirical research.

2.4 Customer Relationship Management

Joshi Sandhya , Khurana Parveen(2010) The study builds up a framework for the transformation of telecom industry that has enabled organizations in other industries to adopt new management infrastructures with more IT based applications like Enterprise Resource Planning (ERP),Supply Chain Management (SCM) and Customer Relationship Management (CRM), which are fundamentally driven by new telecom technologies. Internet technology along with telecom technologies is playing a big role in facilitating the transformation, in other words Digitization, of several industries.

Krishnan Ramesh and Kothari Monika (2008) This research paper analyzes the antecedents of customer relationships in the telecommunication sector. Mobile services were chosen as a context to study as the industry is witnessing exceptional growth rates and amidst growing competition it would be tough for mobile operators to survive, unless they provide value added services and understand what will lead customers to enter into a long-term relationship with them.

CHAPTER 3 -RESEARCH METHODOLOGY

3.1 PURPOSE OF THE STUDY

The Purpose if the study is "To Analyze the Gaps in customer experience in Indian Telecom Industry using SERVQUAL model’.

The main objectives of conducting this research are

To understand the key dimension of service quality for mobile services in the telecom sector.

To understand which factors of service quality have significant impact on customer satisfaction.

3.2 RESEARCH DESIGN

The work was performed in the service segment of the Indian telecom industry. SERVQUAL was adopted as the instrument to assess the service quality according to the literature review Parasuraman et. al. (1988). Although there is no consensus in the literature of which instrument is most effective, SERVQUAL was chosen because it was tested in similar work conducted by Zeithaml et. al. (1990) and is useful to provide evidence of service quality for further service operation improvement.

Data was collected through an instrument developed using five service quality dimensions (tangibility, reliability, responsiveness, assurance and empathy) with 22 questions. The answers were offered using a 5 point semantic differential scale anchored by "1 – Strongly Disagree" to "5 – Strongly Agree" based on Parusuraman et al.(1994). A two column format questionnaire that generates separate ratings of "expected" (E), and "perceived" (P) with identical questions, side by side 5 point scales was used. The weighted average Gap scores were calculated for all the dimensions. Dimensions where the expectation score exceeded the perception score were considered and the difference between the average gaps of all factors for the respective dimension was analyzed using paired t test.

3.3 HYPOTHESIS

1.

H1

There is a significant difference between customer perception and expectation in terms of tangible dimension in service quality of Indian telecom industry.

H0

There is no significant difference between customer perception and expectation in terms of tangible dimension in service quality of Indian telecom industry.

2.

H1

There is a significant difference between customer perception and expectation in terms of reliability dimension in service quality of Indian telecom industry.

H0

There is no significant difference between customer perception and expectation in terms of reliability dimension in service quality of Indian telecom industry.

3.

H1

There is a significant difference between customer perception and expectation in terms of responsiveness dimension in service quality of Indian telecom industry.

H0

There is no significant difference between customer perception and expectation in terms of responsiveness dimension in service quality of Indian telecom industry.

4.

H1

There is a significant difference between customer perception and expectation in terms of assurance dimension in service quality of Indian telecom industry.

H0

There is no significant difference between customer perception and expectation in terms of assurance dimension in service quality of Indian telecom industry.

5.

H1

There is a significant difference between customer perception and expectation in terms of empathy dimension in service quality of Indian telecom industry.

H0

There is no significant difference between customer perception and expectation in terms of empathy dimension in service quality of Indian telecom industry.

3.4 Participants

This research has targeted a sample of 200 respondents (male and female) out of which 100 repondents filled physical copy of questionnaire which were selected from various locations in Delhi (NCR) and rest through online questionnaire. Under this research report, the sample has been selected on the basis of Non-Probability convenience sampling technique.

3.5 Instruments Used

For data collection: Primary data in this study collected through a Standardized SERVIQUAL Questionnaire.

For data analysis: Appropriate statistical tool such Paired T Test was also applied to test the significance of difference between the responses for the perception score and the expectation score, to find out the Gaps.

3.6 Procedures

The research targeted 200 respondents using mobile services. The data collected using ‘SERVQUAL Questionnaires’ were put in an electronic ‘spreadsheet’ to organize data, and for further statistical analysis of results using ‘SPSS’ software. ‘‘Paired t Test’ analyzing the mean gap score were used respectively.

3.7 Data Analysis Technique

The SERVQUAL customer perception tool consists of 22 statements that are grouped and related to one of the five service quality dimensions listed above. Each of the statements is presented in two different forms. The first time that the question appears it is designed to measure customers’ general expectations (E) about the service area being measured. The second time that the question appears it is designed to measure customers’ perceptions (P) about the organization whose service quality is being assessed.

In both cases, customer responses are being measured on a five point semantic differential scale that ranges from "strongly disagree", which elicits a score of 5, to "strongly agree", which elicits a score of 1. The SERVQUAL instrument captures customer expectations of service quality as well as their perception of the services actually provided to them. "The perceived service quality, or gap, score is calculated for each statement by subtracting the E score from the P score, implying a Gap score for each statement ranging between -4 and +4". A negative Gap score indicates a level of service quality which is below that which is expected by the customer. Conversely, a zero to positive Gap score indicates a level of service which is equal to or exceeds customer expectations.

The SERVQUAL developers’ research indicated that the customers don’t hold each of the service quality dimensions in the same regard and are not uniformly important. Therefore, the SERVQUAL customer perception tool also collects respondent input as to the importance of each construct by having them allocate a total of 100 points across the various service quality dimensions. This information allows for a measure of salience that can be used to determine which of the service quality dimensions are the most important to the customers. The salience scores may also be used to weight the results of the SERVQUAL Gap scores for each service quality construct by multiplying the gap score by the salience score obtained from the survey population. The weighted scores provide greater insight as to the overall importance of the service quality construct to the survey population, thus allowing service leaders to implement more targeted service improvement initiatives later on.

The weighted average Gap Scores are used to scan out for undesirable gaps across the 5 dimensions of service quality. The factors involved in such dimensions are subjected to a Paired T test between the unweighted perception and expectation scores in order to find out if there is a significant difference of Gap present among those factors and further suggest remedial measures for the same.

CHAPTER 4 -DATA ANALYSIS

Dimension

Statement

Expectation Score

Perception Score

Gap Score

Average for Dimension

Tangibles

1

2.79

2.26

-0.53

-0.4475

 

2

2.86

2.36

-0.5

 

3

3.04

2.585

-0.455

 

4

2.875

2.57

-0.305

Reliability

5

3.695

2.395

-1.3

-1.746

 

6

4.26

2.5

-1.76

 

7

4.32

2.52

-1.8

 

8

4.3

2.345

-1.955

 

9

4.215

2.3

-1.915

Responsiveness

10

2.345

4.18

1.835

0.45875

 

11

2.43

4.135

1.705

 

12

2.485

4.15

1.665

 

13

2.45

4.27

1.82

Assurance

14

2.435

4.295

1.86

0.465

 

15

2.5

4.295

1.795

 

16

2.45

4.195

1.745

 

17

2.405

4.175

1.77

Empathy

18

2.535

4.26

1.725

0.345

 

19

2.655

4.265

1.61

 

20

2.58

4.25

1.67

 

21

2.47

4.27

1.8

 

22

2.155

3.56

1.405

 

 

 

 

 

Unweighted Average SERVQUAL score:

0.87625

Table 4.1: Individual Gap Score under Individual head

Features

Points

Weighted Points

1.    The appearance of the banks physical facilities, equipment, personnel and communication materials.

22.92

0.2292

2.    The bank's ability to perform the promised service dependably and accurately

25.3

0.253

3.    The banks willingness to help customers and provide prompt service.

15.94

0.1594

4.    The knowledge and courtesy of the bank's employees and their ability to convey trust and confidence.

25.06

0.2506

5.    The caring individual attention the bank provides its customers.

10.78

0.1078

Total:

100

Table 4.2: Weighted Assigned to each Dimension

SERVQUAL Dimension

Score from Table 1

Weighting from Table 2

Weighted Score

Tangibility

-0.4475

0.2292

-0.102567

Reliability

-1.746

0.253

-0.441738

Responsiveness

0.45875

0.1594

0.07312475

Assurance

0.465

0.2506

0.116529

Empathy

0.345

0.1078

0.037191

Average Weighted score:

-0.31746025

Table 4.3: Average weighted score

Paired Samples Test

Paired Differences

t

df

Sig. (2-tailed)

Mean

Std. Deviation

Std. Error Mean

95% Confidence Interval of the Difference

Lower

Upper

Pair 1

tangibilitye - tangibiltiyp

.44750

.09987

.04994

.28858

.60642

8.961

3

.003

Table 4.4 Paired sample T test for Tangibles Dimension.

Paired Samples Test

Paired Differences

t

df

Sig. (2-tailed)

Mean

Std. Deviation

Std. Error Mean

95% Confidence Interval of the Difference

Lower

Upper

Pair 1

reliabiltiye - reliabilityp

1.74600

.26185

.11710

1.42087

2.07113

14.910

4

.000

Table 4.5 Paired sample T test for Reliability Dimension

CHAPTER 5 –CONCLUSION AND RECOMMANDATION

5.1 SUMMARY OF FINDINGS

The weighted average gap scores for all dimensions (tangibility, reliability, responsiveness, assurance and empathy) were calculated and it as shown in table 4.3. It was found that the expectation score of respondents were more than their perception score in the Tangibility and the Reliability Dimension, which was (-0.4475) and (-1.746) respectively, hence considered for further analysis. As the weighted average gap scores in the responsiveness, assurance and empathy dimension were found to be positive i.e. the perception score of the customers was already more than the expectation score and hence no further indulgence of the management was needed yet in these dimensions.

The perception and expectation scores of tangibility and the reliability dimensions were analyzed using Paired T Test to find out if the difference of scores was significant or not.

From Table 4.4 is seen that the t-test value (.003) for the tangibility dimension is less than 0.05 at 95% level of significance. Hence the null hypothesis will be rejected and accepting the alternate hypothesis it can be said that there is a significant difference between customer perception and expectation in terms of tangible dimension in service quality of Indian telecom industry.

Since the expectation scores of statement 1 and 2 were more than the respective perception scores (Table 4.3), it is evident that telecom industry needs to improve in these particular factors.

Also from Table 4.5 is seen that the t-test value (.000) for the reliability dimension is less than 0.05 at 95% level of significance. Hence the null hypothesis will be rejected and accepting the alternate hypothesis it can be said that there is a significant difference between customer perception and expectation in terms of reliability dimension in service quality of Indian telecom industry.

Since the expectation scores of statement 1 and 2 were more than the respective perception scores (Table 4.3), it is necessary that telecom industry improves in these particular factors.

5.2 DISCUSSION OF RESEARCH QUESTION

The telecom environment in India is highly competitive. The business environment is bullish with Operators optimistic about the growth prospects as India with a population of about 1100 million people has more than 70% of its population that is still unconnected. The Government of India has set a target of 700 million subscribers by 2013.

In today‘s highly competitive environment, virtually all companies are forced to be more customer-oriented. It is generally agreed that the level of customer satisfaction determines repeat sales, word-of-mouth recommendations, and customer loyalty. Superior service quality has become a major differentiator in producing customer satisfaction, and successful quality management is recognized as the most powerful competitive weapon that many leading service organizations possess.

This study was aimed to analyze the Gaps in customer experience in Indian telecom industry using Servqual model. For the same the research targeted 200 respondents’ users of Indian telecommunication. The data collected using ‘SERVQUAL Questionnaires’ was put in an electronic ‘spreadsheet’ to organize it. The weighted average gap scores were found for all the dimensions. It was found that the expectation score of respondents were more than their perception score in the Tangibility and the Reliability Dimension, which was (-0.4475) and (-1.746) respectively, hence considered for further analysis. The perception and expectation scores of tangibility and the reliability dimensions were analyzed using Paired T Test to find out if the difference of scores was significant or not. Eventually it was seen that the t-test value (.045) and (.019) for the tangibility and reliability dimension respectively was less than 0.05 at 95% level of significance. Hence the null hypothesis will be rejected and accepting the alternate hypothesis it can be said that there is a significant difference between customer perception and expectation in terms of Tangibles and Reliability dimension in service quality of Indian telecom industry, and there is a need for further improvement in these dimensions.

5.3 RECOMMENDATIONS

Tangibles

1. Indian Telecom service outlets should implement the use of modern equipments and maintain them.

2. The Physical Facilities, layout etc should be in a manner such that they look visually appealing

3. Employees in the excellent telecom company should be neat in their appearance.

Reliability

4. The company should make policies for exceptional customer service and abide by them.

5. The staff should be well trained and equipped to handle any problem the customers might have.

6. The staff should have some amount of authority to take decisions and actions when required to help the customers

5.4 LIMITIATIONS

1. The sample may not be a true representation of the whole population because of small sample size

2. The survey was limited to only 3 locations in Delhi NCR.

3. The sample of population is not focused on any specific target group and therefore it is not possible to make any kind of generalizations about different groups.

4. The questionnaire is long which sometimes was a reason for negative reaction from the respondents, that way we lost a few respondents and some questionnaires where answered quickly without deep thinking.

5. There is no consensus in the literature of which instrument is most effective; SERVQUAL was chosen because it was tested in similar work conducted by many other researchers.

5.5 IMPLICATION FOR FUTURE RESEARCH

SERVQUAL although a good instrument for measuring the service quality has been debated over the decade for its use in respect to the retail environment. Servqual fails to take into account the factors like Convenience (proximity to the customer, billing problems, service at door etc), Problem Solving and Policy etc. which might be applicable to a certain extent.

Also due to the huge cultural and income variation in India the perception of service quality may differ from one area to another. The telecommunication sector growing to meet the global standards will have to evaluate on the lines of how customers perceive service quality and how they evaluate it. With the growing organized retail market and the increasing number of the competitors the customer’s perception on a particular retailer is critical in determining the satisfaction and the loyalty of the customer. Measures will have to taken in the near future to provide quality as perceived by the customer rather than what they can afford and therefore calling for extensive research.