CRM in The Context Of Telecom Sector And For BSNL

Categories: Digital EraInternet

"STATEMENT OF PROBLEM AND NEED FOR STUDY

Telecommunications engage core phase in a rapid developing country. That would alone create it an attractive area to study. Bharat Sanchar Nigam Limited (BSNL) is a public sector organization with 100 percent ownership of government, formed in October, 2000. BSNL is providing broad range of telecom services in India: wire line, CDMA wireless, GSM wireless, internet, broadband, carrier service, MPLS-VPN, VSAT, VOIP services etc. The Company was a leading market player in telecommunication market in India.

After experience of market to wireless and rapid expansion of private sector, BSNL is facing serious problem. Indian market, which was facing severe supply shortage problem in telecom services, has been rapidly growing in wireless services and the market for wire line services had turn down at upsetting rate. BSNL which almost enjoyed monopoly in wire line segment faced reduction in its strong hold and could not keep speed with expanding wireless segment. As a result, its market share has declined quickly.

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The complex circumstances faced by state owned BSNL with its fall from near monopolistic number one position to a loss making fifth position makes the need for study more noteworthy. BSNL is right now losing market share and incurring financial losses. Company is planning to come out of bureaucratic mould and re-orient the organization structurally and operationally to expand customer relations and to develop its largest subscriber base, technical strengths and infrastructural assets. In this context, the philosophy and practices of CRM merit due consideration in the renewal plan.

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The present study proposed to study the CRM issues in case of BSNL.

The present study seeks to study CRM in mobile telephone services with reference to BSNL Tirupati telecom circle and suggests measures to BSNL on how to develop its customer loyalty in the light of severe competition and shifting customer preferences. The study is exclusively designed to analyze the influencing factors of customer relationship quality regarding mobile telecom services of BSNL in Tirupati Telecom circle. The study further diagnose the executions followed by BSNL to build customer relationshipsin Tirupati Telecom circle,to comprehend the employee perceptions about customer relationship management practices in BSNL and concludes with recommending strategies to BSNL to brace its Customer Relationship Management.

RESEARCH METHODOLOGY

Research Questions

The present study seek to scrutinize CRM in the context of telecom sector and for BSNL. The focal point of inquiry is to set on the following questions.

  1. What are the major influencing factors of relationship quality in Indian telecom services with reference to mobile telephone services and from perspective of BSNL?
  2. How BSNL is implementing CRM in practice?
  3. What BSNL requires to do further?

Objectives of the Study

The present study seeks to study CRM in mobile telephone services in Indian context with reference to BSNL Tirupati Telecom circle and recommend measures to BSNL on how to develop its customer relationship quality and thus customer patronage in the light of intensive competition and changing customer preferences.

Research Framework

Parasuraman, Zeithaml and Berry (1994) suggested that disconfirmation measures provide more affluent information than the performance-based measures and have a better diagnostic value for managers. Therefore, the strategy for this study utilize a survey design to assess perceptions in cellular mobile telecommunication services setting from the subscribers’ perspective and build a model for telecom context in India, with reference to BSNL, Tirupati Telecom circle.

Survey of Customer’s Perception

The research design is descriptive as it provides the inventory of feelings regarding perceived value of service, customer satisfaction and behavioral intentions of customers.

The independent variables examined consisted of :

  1. Demographic and affiliation characteristics of customers.
  2. Mobile telecom industry-specific dimensions of service quality and perceived value.

The dependent variables are

  1. Customer Satisfaction,
  2. Trust, Commitment
  3. Loyalty and behavioral intentions.
  4. Relationship quality

Scope of the Study

The background of customer relationship quality are customer satisfaction and perceived value. Another way of recording customer relationship quality is through loyalty factor, which is influenced by trust and commitment, which in turn is the outcome of customer satisfaction. The other variables are complaint behavior and complaint handling. Customer satisfaction decreases complaints and complaint handling increases trust and commitment. Perceived value is provided by factors like tariff, brand image, network coverage, customer service and value added services.

The variables in the model comes under three categories:

The variables pertaining to Customer RelationshipQuality, namely customer satisfaction, trust, commitment andloyalty - which are broadly discussed in the literature on CRM and are related to general industry. These variables are in a way generic in nature.

Industry specific variables applicable for mobile telecommunication

The industry-specific dimensions of cellular mobile telecommunication services influence the ‘perceived service quality’ and ‘customer satisfaction’. Service failures frequently been ‘triggers’ that speed up a customer’s decision to discontinue the relationship with service provider. Variables pertaining to mobile telecommunications industry are taken from the studies of scholars of various countries including the study of the research scholar and his research guide which was attached to thesis. The variables namely tariff, brand image, network coverage, customerservice and value added services are included under model variable ‘Perceived Value’. Apart from this, variables of ‘complaints’ and ‘complaint handling’ which are very important to service industry are also included.

Demographic and affiliation variables namely ‘Gender,Age, Occupation, Type of service (Pre-paid / post- paid) used , Period of usage’ are considered to account for the impact of characteristics of BSNL customers of Tirupati Telecom circle Thus efforts are made to make the model comprehensive by including all the important variables relevant to the subject of study and improvise the past models of CRM in mobile telecom services.

RESEARCH HYPOTHESIS

Hypothesis- 1 to 5 (H1a – H5e)

There is no difference in the perception of the customers of BSNL Tirupati Telecom circle about perceived value due to gender, age, occupation,type of service and period of usage

Hypothesis- 6 (H6a – H6e)

There is no difference in the perception of the customers of BSNL Tirupati Telecom circle on customer satisfaction due to gender, age,occupation, type of service and period of usage.

Hypothesis- 7 (H7a – H7e)

There is no difference in the perception of the customers of BSNL Tirupati Telecom circle on complaint handling of BSNL due to gender, age,occupation, type of service and period of usage.

Hypothesis- 8 (H8a – H8e)

There is no difference in the perception of the customers of BSNL Tirupati Telecom circle on trust due to gender, age, occupation, type of service and period of usage.

Hypothesis- 9 (H9a – H9e)

There is no difference in the perception of the customers of BSNL Tirupati Telecom circle on commitment due to gender, age, occupation, type of service and period of usage.

Hypothesis- 10 (H10a – H10e)

There is no difference in the perception of the customers of BSNL Tirupati Telecom circle on Loyalty due to gender, age, occupation, type of service and period of usage.

Hypothesis- 11 (H11a – H11e)

There is no difference in the perception of the customers of BSNL Tirupati Telecom circle on Customer Relationship Quality due to gender, age, occupation, type of service and period of usage.

DATA ANALYSIS

All the hypotheses except H-15, which signifies the relationship between customer satisfaction and complaint behaviour of a customer, are accepted. The relationship between customer complaint behavior and customer satisfaction is expected to be negative, as customer satisfaction will reduce the intensity of the complaint behavior. Negative value of the regression coefficient indicates the expected relationship of these two variables. In this

case a positive relationship is obtained. The findings on items pertaining to variables of customer complaint behavior and complaint handling reveal the following information which could be used in conjunction with this aspect.

Complaint Behavior - There is less aggressive complaint behavior. Respondents’ agreement that they have problems with the service offered by BSNL is less than neutral and their agreement on voicing complaints to BSNL is still less . Their complaining to other customers and consumer forum is neutral to less . Switching to competitors is . This indicates some indifference.

Complaint Handling - Service organizations do well, when they are responsive and efficient in dealing with consumer complaints. Respondents slightly disagreed with the view that complaint processing is fast at BSNL and BSNL is efficient in dealing with complaints

Customers up to 35 year’s age, employees and customers with less than one year usage period are not satisfied and exhibited complaint behavior. They view complaint handling is slow and inefficient. They have less commitment and loyalty and perceive low

relationship quality. This indicates that important customer segments of BSNL are indifferent to complaints because of low expectations about the complaint resolution by BSNL. It is not a good symptom. . The organization should create opportunity as well as convenience to report the complaints directly to the company as and when the complaints occur. This will facilitate the customer to report the complaints to the company to get the problems resolved. Inability to do so will constrain the customer to talk to others about the complaint and develop indifference to the company, which is not desirable for good relationships. Complaint behavior should be treated as a window of opportunity to invite the customer to establish relationship and rapport. This should be supported by good complaint handling system to register, acknowledge and resolve the complaint in a committed time frame and ensure that customer is impressed. Keeping a service level target and monitoring and attaining the service levels are important requirements. Standard operating procedure (SOP) for complaint handling is critical success factor.

Impact of customer satisfaction and customer loyalty on relationship quality. (Hypotheses H-24 & H-23).

While trust and commitment contribute to Loyalty, loyalty contributes to and reinforces the relationship quality. Customer satisfaction also contributes positively to relationship quality but more through trust and loyalty. Positive actions for maintaining customer relationships are required in addition to satisfying customers through tangibles in case of standard products like telecom.

Impact of customer satisfaction, trust and commitment on loyalty.

Hypotheses H-17, H-20, H21 and H-22:

As evidenced from the previous literature, customer satisfaction contributes to loyalty. Commitment is a high weightage factor for loyalty followed by trust and customer satisfaction. This means that satisfaction will lead to trust and trust generates the commitment and contributes to loyalty.

Impact of Complaint handling on trust and commitment(Hypotheses (H-18 & H-19):

The regression analysis confirms the weightage of complaint handling in building the trust and commitment which are essential for achieving loyalty and relationship quality.

Impact of Perceived Value on Customer Satisfaction (Hypotheses H-12a to H-12e): The regress analysis reveals that brand image is the high weight factor followed by network coverage, customer service, value added services and tariff.

Impact of Perceived Value on Trust (Hypotheses H-13a to H-13e):

The regression analysis signifies that brand image is the high weight factor for developing trust followed by tariff, network coverage, customer services and value added services.

Impact of Perceived Value on Commitment (Hypotheses H-14a to H-14e) indicates that tariff is the high weight factor followed by brand image; value added services, network coverage and services.

Customer satisfaction has positive influence on trust, loyalty and relationship quality (Hypothesis H-16 & H-17 & H-24) and is the most important factor. It is important to periodically conduct customer satisfaction survey and take constant feedback and take

corrective measures to maintain and improve customer satisfaction at target levels. TRAI has emphasized on the quality of service norms for telecom service providers and publishes its findings quarterly for information of public."

Updated: Feb 13, 2024
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CRM in The Context Of Telecom Sector And For BSNL. (2024, Feb 13). Retrieved from https://studymoose.com/crm-in-the-context-of-telecom-sector-and-for-bsnl-essay

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