3g war: who will be the winner?
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TRANSCRIPT
Marketing Research on – 3G Preference A Conjoint Analysis ALOK PRATAP SINGH
Ph. 9266351033E-mail:[email protected]
Plan of the Presentation
1. Defining the marketing objective.
2. Identify marketing problem and research problem
3. The business model4. Marketing research
methodology5. Tabulation and Analysis
Defining the marketing objective?
Current Situation 3G services are being launched across the country by major service
operators. The question which is baffling the service operators, how consumers
are going to choose them? Whether 3G would follow a similar fate like 2G, and the battle would
be decided on tariff front? Or the road to market penetration would be different this time?
Marketing problem
“How the customers are going to choose 3G services? Is pricing going to be deciding factor? How can service operator increase their market share?”
Our marketing problem
Marketing research problem
“To Determine criterion which weigh heavily in choosing among different service providers?”
“To determine the price elasticity of demand and its impact on sales”
“What combination of variable would gives us maximum sale and the optimum output?”
Our marketing research problem
Business Model
Road Map of our marketing researcho A review of trade articles related to 3G and secondary data from IMRB,
Neilson were used in further understanding the market.
o An exploratory research was conducted among the students of MDI to
find out the variables that plays important role in deciding the price.
o After zeroing down on variables, another pilot study was conducted
among the student community to determine the relative importance
consumer attach to these variables.
Stimuli : Combination of attribute levels
Respondents : Evaluation of attributes in
terms of desirability
The Research Methodology
Objective/Theoretical Framework
oMathematical Model
Y = ∑ axWhere
Y = degree of preference
a = model parameter to be estimated statistically
x = attribute of service operator that constitute the choice
criteria
The Research Methodology
SurveyoPersonal In Home Interviews
o Structured Questionnaire Ordinal Scale
Sampling Design ProcessoTarget Population
• Elements – Male or Female above 16 years to 60 years of age.
• Sampling Units – Mobile phone users with data usage(SMS)
• Extent – Gurgaon
• Time – 2011
o Sampling Frame• All the students of MDI, Gurgaon
The Research Methodology
oSampling Technique• Sample with replacement and non probability
sampling i.e. Convenience Sampling.
oSample Size• A sample size of 32 has been chosen.
oData Preparation & Analysis• Conjoint Analysis
Tariff for unlimited Data Uses : 1. <9992. 1000-
14993. 1500-
17994. >1800
Connectivity :1. Uninterrupte
d2. Breaking
Company : 1. Reliance, 2. Vodafone 3. Airtel
Speed : 1. 0.5-1
Mbps2. 1-3 Mbps3. 3-5 Mbps4. >5 Mbps
Customer Service:1. Excellent,2. Poor
Conjoint Analysis -Attribute Detail
Conjoint Analysis - Constructing the Stimuli
o Full Approach: The respondents rank the cards
according to their preferences. Each profile describes a
complete services and consists of a different combination
of factor levels for all factor of interest.
o An orthogonal Array: A resulting set of 16 orthogonal
array is designed with the help of SPSS to capture the
main effect for each factor level.
o Experimental Stimuli: Each set of orthogonal design
represents a different version of the product under study.
COMPANY : Airtel
Customer Service : Poor
Connectivity : Breaking
Tariff for Unlimited Uses : 1500-1799/-
Speed : 0.5 – 1 Mbps
Conjoint Analysis - Card Design
1500-1799/-1500-1799/-
0.5 -1 Mbps0.5 -1 Mbps
Conjoint Analysis - Running the Analysis
For analyzing the data command syntax – specifically
CONJOINT Command.
Conjoint PLAN='C:\Documents and Settings\Alok\Desktop\
Telecom\Conjoint\ORTHO.sav'/DATA='C:\Documents and
Settings\Alok\Desktop\Telecom\Conjoint\
RankingSPSS.sav'/RANK=RankCard1 TO
RankCard16/SUBJECT=Respondent
/ PRINT=SUMMARYONLY/PLOT=ALL/UTILITY=RUGUTILL.
29% 22%
Conjoint Analysis - Interpreting the ResultsRelative Importance
19%
15%
15%
Connectivity
Speed
Tariff
Brand
Customer Service
Conjoint Analysis - Interpreting the Results
1. The result shows that connectivity has the most influence
in overall preference.
2. Tariff is coming at third position and therefore it is not as
important as Connectivity and Speed.
3. Surprisingly Customer Service has the least importance
role in determining customer preference.
Relative Importance
Conjoint Analysis - Interpreting the Results
Conjoint Analysis - Interpreting the Results
1= .8952=-1.156
3= 2
.102
4=-3.03
5=3.
22Utility Score :
Since the utilities are all expressed in common unit, they can be
added together to give the total utility of any combination.
Airtel 2.033
Utility (Airtel) + Utility (Customer Service) + Utility (Connectivity) + Utility (Tariff) + Utility (Speed)= (0.895)+(-1.156)+(2.102)+(-3.033)+(3.225)=2.033
Airtel even with Poor customer Service and High Tariffs i.e. 1500 -1799/- scoring total utility of 2.033
Conjoint Analysis -Interpreting the Results
1= .3282=-1.156
3= 2
.102
4=-3.03
5=3.
22Utility Score :
Vodafone 0.81
Utility (Vodafone) + Utility (Customer Service) + Utility (Connectivity) + Utility (Tariff) + Utility (Speed)= (-.328)+(-1.156)+(2.102)+(-3.033)+(3.225)=0.81
With similar utilty like Airtel, Vodafone would loose market share. To gain an edge over Airtel, it needs to 1. Improve Customer service OR 2. Lowering the tariff from 1500-
1799/- to 1000-1499/- and improving the speed beyond 5 Mbps
Conjoint Analysis - Interpreting the Results
1= .3282=-1.156
3= 2
.102
4=-3.03
5=3.
22Utility Score :
Reliance
0.572
Utility (Vodafone) + Utility (Customer Service) + Utility (Connectivity) + Utility (Tariff) + Utility (Speed)= (-.566)+(-1.156)+(2.102)+(-3.033)+(3.225)=0.572
Reliance is at a very precarious situation, it can compete only if,1. Improve Brand Image &
Customer service OR 2. Lowering the tariff from 1500-
1799/- to 1000-1499/- and improving the speed beyond 5 Mbps
Conjoint Analysis - Interpreting the Results
It’s obvious increasing Speed is technically not feasible for
the Companies. Therefore they will either resort to
Connectivity, Customer Service or Lowering the tariff. In
case of Reliance, which has a low Brand Image, it should
concentrate on uninterrupted connectivity and following
it up with Brand Building exercise. Third option for them
is improving the Customer Service.
Utility Score:
THANK YOU