PROJECT REPORT

On
“Analysing the effectiveness of different promotions and the
different modes of communication”

For

“Dish TV India Limited ”

SUBMITTED BY: -
ANCHAL BHASIN

SUBMITTED TO:-
THE DEPARTMENT OF OPERATIONAL RESEARCH
FACULTY OF MATHEMATICAL SCIENCES
UNIVERSITY OF DELHI, DELHI

AS
PARTIAL FULFILLMENT OF THE REQUIREMENT
OF THE DEGREE OF MATHEMATICAL SCIENCES

IN

OPERATIONAL RESEARCH
UNIVERSITY OF DELHI, DELHI

SESSION 2010-2012

Department of Operational Research

Faculty of Mathematical Sciences
University of Delhi
Delhi-110007
Name of the Student ANCHAL BHASIN

Date of Commencement of 15th March 2012

Project

Date of Submission of 30th APRIL 2012

Project

Title of the Project “Analysing the

effectiveness of different
promotions and the
different modes of
communication “

Project Mentor Miss Praneeta

: Dish Tv India Private Limited

Name of the Supervisors Dr. (Mrs.) Preeti wanti

from the teaching faculty Srivastava
Dr. Chandra. K. Jaggi
Dr. P.C. Jha
Dr. Pankaj Gupta
Dr. K.K. Aggarwal
Dr. Ompal Singh
Dr. (Mrs.) Anu Gupta
Aggarwal
 CERTIFICATE

This is to certify that the Project Report titled “Analysing the

effectiveness of different promotions and the different
modes of communication” is my original work carried out at
“Dish Tv India Private Limited” in the year 2010-2012; and this has
not been submitted to any other University or Institution for the award
of any Degree or Diploma.

ANCHAL BHASIN
M.Sc. (Final) Operational Research
Department Of Operational Research
Faculty of Mathematical Sciences
University of Delhi
Delhi-110007

Dr. (Mrs). Preeti Wanti Srivastava

Head,
Department Of Operational Research
Faculty of Mathematical Sciences
University of Delhi
Delhi-110007
 ACKNOWLEDGEMENT

One of the most pleasant aspects of writing a project is the opportunity

to thank those who have made it possible. Unfortunately, the list of
expression of gratitude- no matter how expensive- is always
incomplete and inadequate. These acknowledgements are no
exception.

I am extremely thankful to faculty members Dr (Mrs.) Preetiwanti

Srivastava, Dr. P.C. Jha, Dr C.K.Jaggi, Dr. K. K. Aggarwal, Dr. Pankaj
Gupta ,Dr. Ompal Singh and Dr. (Mrs.) Anu Gupta Aggarwal for their
valuable guidance, precious time and support in completion of this
project.

Then my intellectual debt is to those academicians and practitioners

who have contributed significantly. During the course of the project
work, I was in constant interaction with many company people, who
were highly cooperative in laying down the strategy for the project.

Last but not the least, I would like to thanks all the respondents for
giving me their precious time and relevant information and experiences
I required, without which this project would have been a different story.

Anchal Bhasin
M. Sc. (Final) Operational Research
Department of Operational Research
University of Delhi
Delhi – 110007
CONTENTS

 Introduction to Operational Research

 Company Profile

 Marketing Research

 Consumer Behaviour

 Questionnaire Design

 Factor Analysis

 Research – Objective, Problem definition

 Analysis and Interpretations

 Conclusion

 Bibliography
INTRODUCTION TO
OPERATIONAL RESEARCH

THE OPERATIONAL RESEARCH TOOLBOX

OR is primarily a problem-solving process. However, over the

years OR has accumulated a wide set of tools, models, and
methods widely applicable to operations problems. They include

Business models Decision analysis Optimization

Probabilistic system Statistics Process Maps
Decision Trees Linear Programming Stochastic
Processes Data Analysis Supply Chain
Analysis Multi Criteria Methods Integer
Programming Queueing Theory Regression &
Forecasting Transportation Networks Risk
Analysis Network Optimization Simulation
Analysis Survey Methods

DEFINITION OF Operational Research

“The high tech field of OR offers numerous excellent opportunities to boost

performance immediately. Yet OR Practitioner time remains to skim the cream
before everyone wakes up to the projects. When most do wake up,
USA companies that are not taking full advantage of OR will leave serious money
on the table and be outflanked competitors.”
--RandRobinson

“Operations Research is the systematic application of quantitative methods,

techniques and tools to the analysis of problems involving the operations of
systems.”
--Daellanbach and George 1978

“OR is a scientific knowledge through interdisciplinary team effort for the purpose
of determining the best utilizations of limited resources.”

--H A Taha

““OR is the application of scientific methods, techniques and tools to problems

involving the operations of a system so as to provide those in control of the system
with optimum solutions to the problem.”

--C W Churchman, R L Ackoff & E L Arnoff

Operations Research may be described as a scientific approach to decision-

making that involves the operations of organizational system.”
--F S Hiller and G J Lieberman, 1980

“OR is the art of giving bad answers to the problems which otherwise have worse
answers.”
--T L Satty
“OR is the scientific approach to problem solving for executive management.”
- -H M Wagner

OPERATIONAL RESEARCH – AN OVERVIEW

Operational Research (OR) is an interdisciplinary branch of applied mathematics
and formal science that uses methods like mathematical modeling, statistics,
queuing theory, game theory, decision analysis, and simulation to arrive at
optimal or near optimal solutions to complex problems. Because of the
computational nature of these fields, OR also has ties to computer science, and
operations researchers regularly use custom-written or off-the-shelf software.
Operational research is distinguished by its frequent use to examine an entire
system, rather than concentrating only on specific elements (though this is often
done as well). An operational researcher faced with a new problem is expected to
determine which techniques are most appropriate given the nature of the system,
the goals for improvement, and constraints on time and computing power.
The use of OR is hidden from our daily lives to such an extent that most people
would be surprised at how much OR impacts them. This includes the schedule for
the bus they ride, the crews on the airplane they fly, the route their garbage truck
takes, the prices of their car rentals and air tickets, the inventory in their favorite
store, whether they can get an answer from a call centre, how trees are sawn into
products, and where and how many spares are provisioned.
Professor P.M.S. Blackett was one of the first scientists to define the essential
elements of Operational Research, also known as the FATHER OF
OPERATIONAL RESEARCH. In October 1941 he wrote a Report on Operational
Research which is considered by many to be the original 'definition of Operational
Research'. Of the use of scientists at the operational level he said;
'The object of having scientists in close touch with operations is to enable
operational staffs to obtain scientific advice on those matters which are not
handled by the service technical establishments... Operational staff provides the
scientists with the operational outlook and data. The scientists apply scientific
methods of analysis to this data, and are thus able to give useful advice. The main
field of their activity is clearly the analysis of actual operations, using as data the
material to be found in an operations room, e.g. all signals, track charts, combat
reports, meteorological information, etc. . . .'
In 1947 Dr. Kittel described OR thus: 'Operations Research is a scientific method
for providing executive departments with a quantitative basis for decisions.' A year
later Sir Charles Good eve summed it up as 'quantitative common-sense’.
The first definitions of OR date from the 1950's. The father of OR, Professor
P.M.S. Blackett gave the first definition
'OR is a scientific activity conducted for executives'.

In 1947, Dr. Kittel’s expands a little bit into his well-known definition of operational
research as “A scientific method for providing executives with a quantitative basis
for decisions.”

In 1976 the UK Operational Research Society defined Operational Research as:

“...Is the application of the methods of science to complex problems arising in the
direction and management of large systems of men, machines, materials and
money in industry, business, government and defence. The distinctive approach is
to develop a scientific model of the system, incorporating measurements of factors,
such as chance and risk, with which to compare the outcome of alternative
decisions, strategies or controls. The purpose is to help management determine its
policies and actions scientifically....”

Operations Research (OR) and the Management Sciences (MS) are the
professional disciplines that deal with the application of information technology for
informed decision-making.

Operations research is the science of decision making. OR methods involve

identifying business problems and possible scenarios for solving them. These
variables are modeled using various forms of applied mathematics implemented as
software algorithms. On a more granular level, the OR professional collects the
relevant data to instantiate the model, optimizes it, and then evaluates the results,
which provide business professionals with a suggested course of action.
OR can help the following kinds of business questions:

 How should the fleet of delivery trucks be allocated to meet customer

needs while making the best use of drivers?
 What's the best breakdown of the marketing budget to maximize
customer-response rates?
 Where warehouses should be located to minimize transportation costs?

 What's the impact of faster machinery on the factory-production

process?
 HISTORY OF OPERATIONAL RESEARCH

The term, Operations research, was first coined in 1940 by McClosky and Trefthen
in a small town Bowdsey, of the United Kingdom. This new science came to
existence in military context. During World War II, military management called on
scientists from various disciplines and organized them into teams to assist in
solving strategic and tactical problems associated with allied military effort,
because they were simply too complicated to expect adequate solutions from any
one individual, or even a single discipline and to discuss, evolve and suggest ways
and means to improve the execution of various military projects .By their joint
efforts, experience and deliberations, they suggested certain approaches that
showed remarkable progress. This new approach to systematic and scientific study
of the operations of the system was called the Operations Research or Operational
Research. (Abbreviated as O.R.).

After the war, many of the scientists who had been active in the military O.R.
groups turned their attention to the possibilities of applying a similar

approach to civilian problems. Some returned to universities and

provide a sound foundation for many of the techniques that had been
developed earlier and also develop new techniques. And in 1950,
Operational Research achieved recognition as subject worthy of
academic study.

In India, operations research came into existence in 1949 with the opening of an O.R.
unit at the regional research laboratory at Hyderabad. At the same time another group
was set up in defense science laboratory which devoted itself to the problems of store,
purchase and planning in 1953, an O.R. unit was established in the Indian statistical
institute, Calcutta, for the application of O.R. methods in national planning and
survey .O.R. society of India was formed in 1957. It became a member of international
federation of O.R. societies in 1959. The first conference of O.R. society of India was
held in Delhi in 1959.it was also decided to start journals of operations research, which
took a practical shape in 1963 in form of ‘OPSEARCH’. In the same year, India along
with Japan became a member of International Federation of Operational Research
societies (IFORS) with headquarters in London.
 In India Planning Commission made the use of O.R. techniques for planning the
optimum size of the carevelle fleet of Indian Airlines. In the industrial sector, in spite of
the fact that opportunities of O.R. work at present are very much limited, organized
industries in India are gradually becoming conscious about the role of Operational
research.
SIGNIFICANT FEATURES OF Operational
Research APPROACH

1. INTER DISCIPLINARY APPROACH: O.R. is interdisciplinary in nature and

requires a team approach to a solution of the problem, because managerial
problems have economic, psychological, biological, sociological and
engineering aspects. Hence it requires a blend of people with expertise in
the area of mathematics, statistics, engineering, economics, management,
computer science and so on.
2. Methodological (Scientific) Approach: OR employs scientific methods
consists of observing & defining the problem formulation and testing the
hypothesis; and analyzing the results of the test the data so obtained are
then used to decide whether the hypothesis should be accepted or not.
3. Wholistic Approach : While arriving at a decision, an O.R. team examines
the relative importance of all conflicting and multiple objectives and the
validity of claims of various departments of the organization from the
perspective of whole organization
4. Objective Approach: An O.R. approach seeks to obtain an optimal solution
to the problem under analysis. For this, a measure of desirability is defined,
based on the objectives of the organization.
MODELS IN OPERATIONAL RESEARCH

A model in O.R. is a simplified representation of an operation or a process in

which only the basic aspects or the most important features of a typical problem
under investigation are considered. Constructing a model aids inserting the
complexities and possible uncertainties attending a decision making problem into a
logical framework amenable to comprehensive analysis. Such a model clarifies the
decision alternatives their anticipated effects, indicate the relevant data for analysis
the alternatives, and leads to informative conclusions.

CLASSIFICATION OF MODEL

Although the classification of models is a subjective problem, they may be

distinguished as follows:

MODELS BY DEGREE OF ABSTRACTION

These models are based on the past data/information of the problems under
consideration and can be categorized into (a) language models (b) case studies.

MODELS BY FUNCTION

These models consist of

(a) Descriptive Models
(b) Predictive Models
(c) Normative Models.

DESCRIPTIVE MODELS

These models describe, explain, and predict facts and relationships among the
various activities of the problem. These are used to describe mathematically some
particular aspects of the system being modeled. These models do not have an
objective the system being modeled. These models do not have an objective
function as apart of the model to evaluate decision alternatives. Thus, in a
descriptive model it is possible to get information as to how one or more factors
charge as a result of changes in other factors.

PREDICTIVE MODELS

These model indicates that “if this occurs then that will follow” .they relate
independent and dependent variables and permit trying out, ’what if’ questions. In
other words, these models are used to predict the outcomes due to a given set of
the alternatives for the problem. These models do not have an objective function
as a part of the model to evaluate decision alternatives.
NORMATIVE (OR OPTIMIZATION) MODELS

These models provide the “best” or “optimal” solution to the problems subject to
limitation on the use of resources. These models provide recommended courses of
action. For example, in mathematical programming, models are formulated for
optimizing the given objective function, subject to certain restrictions and non
negativity of the decision variables.

MODELS BY STRUCTURE

These models are represented as:

(a) Iconic Models
(b) Analogue Models
(c) Symbolic Models.

ICONIC MODELS

Iconic model retains some of the physical properties and characteristics of the
system they represent. An iconic model is either in an idealized form of or a scaled
scale version of the system. In the other words, such models represent the system
as it is by scaling it up or down.

Examples of iconic models are blue prints of a home, globes, photographs,

drawing, atom etc.

Iconic models are easy to observe, build and describe but difficult to manipulate
and not very useful for the predictions. Commonly these models represent a static
event.

ANALOGUE MODELS

Analogue models are more abstract then iconic ones for there is no ‘look- alike’
correspondence between these models and real life items. They are built by
utilizing one set of properties to represent another set of properties. For instance a
network of pipes through which water is running could be used as a parallel for
understanding a distribution of electric current. Graphs and maps parallel in various
colors are analogue models, in which different color correspond to different
characteristics. A floe process chart is analogue model which represents the order
of occurrence of various events to make a product.

MATHEMATICAL OR SYMBOLIC MODELS

These models are more abstract in nature. They employ asset of mathematical
symbols to represent the components of the real system. These models are more
general and precise.

MODELS BASED ON DEGREE OF CERTAINITY

DETERMINISTIC MODELS

If all the parameters, constants and functional relationships are assumed to be

known with certainty when decision is made, then the model is said to be
deterministic. Thus in such a case, the outcome associated with particular course
of action is known. That is for a specific set of input values there is uniquely
determined output which represents the solution of the model under conditions of
certainty. Linear programming models are example of deterministic models.

PROBABILISTIC (STOCHASTIC) MODELS

Models in which at least one parameters or decision variables is a random variable

are called probabilistic models. These models reflect to some extent the complexity
of the real world and the uncertainty surrounding it.

MODELS BY EXTENT OF GENERALITY

These models can be categorized into

(a) Specific models
(b) General models

SPECIFIC MODELS

When a model presents a system at some specific time, it is known as a specific

model. In these models if time factor is not considered, then they are termed as
static model and dynamic model otherwise.

GENERAL MODELS

Simulation and heuristic models fall under general models. These models are
mainly used to explore alternative strategies which have been overlooked
previously. These models do not yield any optimum solution to the problem, but
give a solution to the problem depending on the assumptions based on the past
experience.

METHODOLOGY OF OPERATIONAL
RESEARCH
The systematic methodology developed for operations research study deals with
problems involving conflicting multiple objectives, policies and alternatives. O.R. in
the final analysis is a scientific methodology which is applied to the study of
operations of large complex organization and activities with a view to assessing the
overall implications of various alternative courses of action, thus providing an
improved basis for managerial decision.

Then O.R. approach to problem solving consists of the following six steps:

1. Formulation of the problem: It involves analysis of the physical system,

setting up of objectives, determination of restriction constraints against which
decision should be adopted, alternative courses of action and measurement of
effectiveness.

2. Construction of a mathematical model: after formulation of the problem, the

next step is to express all the relevant variables of the problem into a
mathematical model. A generalized mathematical model might take the form:
E = f (xi, yj)

3. Deriving the solution from the model: once the mathematical model is
formulated, the next step is to determine the values of the decision variables
that optimize the given objective function. This deals with the mathematical
calculations for obtaining the solution to the model.

4. Validity of the model: the model should be validated to measure its accuracy.
That is in the order for a model to be useful, the degree to which it actually
represents the system or problem being modeled must be established. A model
is valid or accurate if (a) it contains all the objectives, constraints, and the
decision variables relevant to the problem, (b) the objectives, constraints, and
the decision variables are all relevant to, or the actually part of the problem, and
(c) the functional relationships are valid.

5. Establishing control over the solution: After testing the model and its
solution, the next step of the study is to establish control over the solution. By
proper feedback of the information on the variables which deviated significantly.
As soon as one or more of the control variables change significantly, the
solution goes out of the control in such as situation the model may accordingly
be modified.

6. Implementation of the final results: Finally, the tested result of the model is
implemented to work. This would basically involve a careful explanation of the
solution to be adopted and its relationship with the operating realities. This stage
of O.R. investigation is executed primarily through the cooperation of both the
O.R. experts and those who are responsible for managing and operating the
system.

SCIENTIFIC METHOD IN O.R.

The scientific method in operations research consists of the following three phases:

Judgment phase: This phase includes:

(I) Identification of the real life problem.
(II) Selection of an appropriate goal and the values of the various variables
related to the goals.
(III) Appropriate scale of measurement
(IV) Formulation of an appropriate model of the problem, abstracting the
essential formulation so that the solution at the decision maker’s can be
sought.

Research phase: This phase is the largest and longest among the other two.
However other two also equally important as they provide basis for a scientific
method. This phase utilizes:

(i) Observations and data collection for better understanding of what the problem
is.
(ii) Formulation of hypothesis and models
(iii) Observation and experiment to test the hypothesis on the basis of
additional data
(iv) Analysis of the available information and verification of the hypothesis using
pre established measures of effectiveness
(v) Predictions of the various results from the hypothesis
(vi) Generalization of the results and consideration of alternative methods.

Action Phase: This phase consist of making recommendations for decision

process by those who first posed the problem for consideration, or by anyone in a
position to make a decision influencing the operation in which the problem
occurred.

APPLICATIONS OF OPERATIONAL
RESEARCH
Some of the industrial /government / business problems which can be analyzed by
O.R. approach have been functional area wise as follows:

Finance, budgeting and investment

(a) Cash flow analysis, long range capital requirement, dividend policies,
investment portfolios.
(b) Credit policies, credit risks and delinquent account procedures .
(c) Claim and complaint procedures.

Marketing
(a) Product selection, timing, competitive actions.
(b) Advertising media with respect to time and cost.
(c) Number of salesman, frequency of calling of accounts etc.
(d) Effectiveness of marketing research.

Physical distribution
(a) Location and size of warehouses, distribution centers, retail outlets etc.
(b) Distribution policy.

Purchasing procurement and exploration

(a) Rules for buying.
(b) Determining the quantity and time to purchase.
(c) Bidding policies and vendor analysis.
(d) Equipment replacement policies.

Personnel
(a) Forecasting the manpower requirement, recruitment policies and assignment
jobs.
(b) Selection of suitable personnel with due consideration of age and skills, etc.
(c) Determination of optimum number of persons for each centre.

Production
(a) Scheduling and sequencing the production run by proper allocation of
machines.
(b) Calculating the optimum product mix.
(c) Selection location and design of the sites for the production plant.

Research and development

(a) Reliability and evaluation of alternative designs.
(b) Control and developed projects.
(c) Co-ordination of multiple research projects.
(d) Determination of time and cost requirements.

USES OF OPERATIONAL REASEARCH

Formulation of industrial problems may be generalized into different groups of

classical problems, the package programme for which is available for
mechanization and manual solutions.

Various problem of optimization can be brought to the model of linear programme

for which solution is available. While formulating the problem, the class of the
problem is to be decided and the parameters are to be defined accordingly.
Inventory control, production planning, product mix, transportation problem, etc.
are very common to the industries. The cost reduction with the help of these tools
is very much powerful in comparison to any other conventional method. We can
enumerate the advantages of these techniques as :

(i) Optimum use of production factors: linear programming techniques

indicate how a manager can most effectively employ his production factors
by more efficiently selecting and distributing these elements.
(ii) Improved quality of decision: the computation table gives a clear picture of
happenings within the basic restriction and the possibilities of compound
behavior of the elements involved in the problems. The effect on the
profitability due to changes in the production pattern will be clearly
indicated in the table .e.g. simplex table.
(iii) Preparations of future managers: these methods substitute a means for
improving knowledge and skills of your manager.
(iv) Modification of mathematical solution: O.R. presents a possible practical
solution when one exists, but it is always a responsibility of the manager to
accept or modify the solution before its use. The effects of these
modifications may be evaluated from the computational steps and tables.
(v) Alternative solution: O.R. techniques will suggest all the alternative
solution available for the same profit so that the management may decide
on the basis of its strategies.
 LIMITATIONSOF OPERATIONAL
RESEARCH

O.R. has certain limitations. These limitations are as follows:

(a) Magnitude of computation: O.R. tries to find out the optimal solution taking all
the factors into account. In the modern society , these factors are numerous
and expressing them in quantity and establishing relationship among these ,
requires huge calculations. All these calculations cannot be handled manually
and require electronic computers which bear a very heavy cost. Thus the use of
O.R. is limited to only very large organizations.

(b)Absence of qualification: O.R. provides solution only when all the elements
related to a problem can be quantified. The tangible factors such as product,
price, etc., can be expressed in terms of quantity , but intangible factors such as
human relations etc. cannot be quantified. Thus these intangible elements of
the problem are excluded from the study, though these might be equal or more
important than quantifiable intangible factors as far as possible.

(c) Distance between managers and operations research: O.R. being specialist
job requires a mathematician or a statistician, who might not be aware of
business problems. Similarly a manager may fail to understand the complex
working of O.R. Thus, there is a gap between one who provides the solution
and one who uses a solution. Thus, the manager who becomes suspicious
about the optimal solution. This problem is mainly of training. Both the persons
should have a working knowledge of each others job to have better
understanding of insights of the problem and its optimal solution.
 CHARACTERISTICS OF OPERATIONAL
RESEARCH

(i) Such a team, when confronted with a problem, determines the solution of
the problem by following inter-disciplinary approach. Every expert of the
team tries to abstract the essence of the problem and determines if the
same type of problem has been previously undertaken or not. If a similar
problem has been dealt previously then it becomes quite easy to apply the
same technique to determine the solution of current problem as well. In this
way, each member of the team, by utilizing his experience and expertise
may be in a position to suggest an approach that otherwise may not be
thought of. Thus, Operational Research makes use of experience
Interdisciplinary Team Approach. It is an important characteristic of
operational research. According to this characteristic, no single individual
can be an expert on all aspects of a problem under consideration. Thus,
Operational Research utilizes the inter-disciplinary approach i.e., an
Operational Research team comprises of experts from different disciplines
and expertise of people from different disciplines for developing new
methods and procedures.

(ii) Operational Research is a continuing process. It cannot stop on the

application of the model to one problem, for this may create new problems
in other sectors and in the implementation of the decision taken. Operational
Research must also specify the organizational changes required to
implement decisions and control the result thereof. Without this, the work of
Operational Research practitioner is incomplete.

(iii) Objective. Operational Research attempts to find the best or optimal solution
to the problem under consideration. To do this, it is necessary to define a
measure of effectiveness that takes into account the goals (objective) of the
organization. In other words “Operational Research is the scientific study of
large systems with a view to identify problem areas and provide the
managers with a quantitative basis for decisions which will enhance their
effectiveness in achieving the specified objectives.”

(iv) Operational Research increases the creative ability of a decision-maker.

(v) Operational Research is a decision-making science.

(vi) Uncovers new problems for study methods.

(vii) Examine functional relationship from a systems overview.

(viii) Operational Research gives only bad answers to the problem where only
worse could be given i.e.; it cannot give perfect answers to the problems.
Thus, Operational Research improves only the quality of the solution.
(ix) Methodological Approach. Operational Research utilizes the scientific
method. Specifically, the process begins with the careful observation and
formulation of the problem. The next step is to construct a scientific (typically
mathematical or simulation) model that attempts to abstract the essence of
the real problem. From this model, conclusions or solutions are obtained
which are also valid for the real problem. In an iterative fashion, the model is
then verified through appropriate experimentation.

(x) Operational Research replaces management by personality.

(xi) Operational Research is for operations economy. Operational Research is a

problem solving and a decision-making science. Whenever we have
conflicts, uncertainty and complexity in a situation, Operational Research
can help in the end to reduce costs and improve profits and effect
substantial “Operations Economy.”
TECHNIQUES OF OPERATIONAL RESEARCH
The techniques discussed below can be freely used by a progressive manager in
the decision making process.

1. Probability. It is rarely possible to predict the future of the business world with
complete certainty. There is always an element of uncertainty as far as the
future courses of events are concerned. The probability concepts try to analyze
the uncertainties and bring out necessary data with reasonable accuracy for the
purpose of decision making. Probabilities are of two types:

(i) Objective probability, and (ii) Subjective probability. The objective probability
is a probability for which there is a definite historical evidence and common
experience.

On the other hand, the subjective probability is a probability where historical

evidence is not available and the businessman has to rely on own estimation of
a situation and the likelihood of various outcomes.

The probability of any given action must be between 0 and 1 and the sum of all
these probabilities must be 1. If the probability is ‘0’ to an occurrence, it will not
take place and in the case the probability is 1 to an occurrence, it is certain that
the occurrence will take place.

2. Decision theory. The basic elements in a decision theory are:

 Alternative course of action(strategies)
 Various states of nature.
 Knowledge about the likelihood of occurrence of each state of nature.
 Net value (pay-off) to decision-maker for each outcome.
 Decision maker’s objectives.

The basic premise of decision theory is that the behavior of the future is
probabilistic and not deterministic. Various probabilities are assigned to the
state of nature on the basis of available information or subjective judgment and
the likely outcomes of the alternative courses of action are evaluated
accordingly before a particular alternative is selected.

This technique of decision making is based on expected monetary value and

utility. By analyzing the monetary value of utility from a given set of
circumstances, a model is constructed and accordingly decisions are taken. It is
a well-known fact that the environment within which decisions are taken can be
logically divided into three parts: certainty, risk and uncertainty. Certainty exists
when one can specify exactly what will happen when during the period for
which the decision is being made. Risk refers to a situation where one can
specify a probability distribution for the possible outcomes. Uncertainty refers to
 the condition when one cannot specify the relative likelihood of the outcomes.
Although some business decision can be made under condition nearing
certainty, elements of risk and uncertainty underline most of the decisions
which mangers make.

3. Linear Programming. It is a method for selecting an optimum combination of

Factors from a series of inter-related alternatives, each subjective to limitation.
It involves the development of linear equations to obtain the best solution for
the allocation problem. An allocation problem “...arise whenever there are a
number of activities to perform but limitations on either the amount of resources
or the way they can be spent prevent us from performing each activity in the
most effective way conceivable. In such situations we wish to allot the available
resources to the activities in a way that will optimize the effectiveness”.

Linear programming consists of:

(a) The Simplex Method. This aims at maximizing or minimizing a given

function, subject to constraints in respect of each variable.

(b) The Transportation Problem. This deals with problems of matching the
origins (stores, warehouse, and factories) with the outlets (process centre,
market etc.) at a minimum cost of distribution and transportation.

(c) The Assignment Problem. It can handle the problems of assigning a given
number of agents each one to the same number of tasks so as to result in
maximum efficiency or minimum cost.

4. Dynamic Programming. This technique deals with the problems that arise in
connection with multi period analysis and decisions. In contrast to Linear
Programming there does not exists a standard mathematical formulation of
Dynamic Programming, rather it is a general type of approach to problem
solving and particular equation must be developed to fit each individual
situation. However, the basic approach used in Dynamic programming is to
break down a problem into series of problems in such a way that answer to the
first sub problem can be used in deriving the solution to the next sub-problem
and so forth finally giving solution to the whole problem.

5. Sequencing. This method solves problem where effectiveness measure( in

terms of cost, time, mileage, etc.), depends upon the sequence of performing
given jobs. This helps to determine a sequence in which given jobs should be
performed if the objective is to minimize the total efforts.

6. Game Theory. Developed by Jon Von Neumann and Morgenson, this is a

mathematical theory applicable to competitive business problems. This
technique deals with situations where two or more (finite) individuals are
making decisions involving conflicting interests. However the final decision
depends upon the decisions of the parties concerned.
7. Inventory Control and Management. Inventory problems(models) are mainly
concerned with inventory decisions, the basic inventory decisions are:

 How much to order at one time, and

 When to order this quantity.

The first decision namely – how much to order at one time, is to be balanced
between two pressures – the first pressure is to order huge lots so as to
minimize ordering costs and the other pressure is order small lots so as to
minimize carrying costs. The optimum course of action is a compromise
between the two extremes. Arriving at a model for deriving the economic order
quantity (E.O.Q) can do this.

The second decision namely – when to order this quantity, is decided by

ascertaining the re-ordering level. The re-ordering level is the point lying
between the maximum and the minimum levels at which time it is essential to
intimate the purchase department for fresh supplies of the material. This point
will usually be slightly higher than the minimum stock, to cover such
emergencies as abnormal usage of material or unexpected delay in delivery of
fresh supplies. Re-ordering level depends upon lead-time, rate of consumption
and economic ordering quantity.

8. Queueing Theory. Waiting lines at any service centre are common

phenomena and Queuing theory is devoted to mathematical study of waiting
lines. Various alternative models have been used to describe such situations,
but they basically share the following common features: (i) Units requiring
services are generated from an input source from different kinds of queues for
service, (ii) a service discipline by which the queue members are selected for
receiving service, (iii) a service mechanism which defines the type of service,
after the completion of which unit leaves the system or rejoins it for further
processing. Many alternative assumptions can be made about these common
elements, and these give rise to the different queuing problems.

9. Network Analysis (PERT/CPM). PERT or Program Evaluation and Review

technique and CPM or Critical Path Method are powerful management tools for
planning and control of complex jobs involving a large number of activities. A
project consists of well-defined collection of jobs or activities, some of which
can be started independently of others and all the jobs, have to be carried out in
technological sequence. The objective of PERT/CPM technique is to establish
time duration for each activity and to shorten the total duration acquired for the
completion of the project incurring the optimum cost. CPM introduces the
concept of critical path, i.e., the longest time required to complete a project and
emphasizes the reduction of the duration of the activities by the application of
more resources by obtaining a trade-off between cost and time completion.

10. Simulation. It is highly versatile technique of operational research. It has a

wide-ranging application in business situations. Simulation is particularly
 appropriate where it is difficult to build a model for the real life situation
mathematically or if at all it is modeled, it is difficult to solve the model
analytically. It may be noted hat simulation is a manipulation of a model
constructed from the formal statements of mathematical representation in
respect of logical relations between the elements in a structure or a system
expressed in measurable terms. Thus, simulation is a process of designing an
experiment, which will duplicate or present as nearly as possible the real
situation and then watching what does happen. In every walk of life, the test of
adequacy of our decisions is the test of our reality. However, in practical life,
modern business cannot afford the luxury of testing the consequences of the
major decisions in the real-life world. Instead of finding out the characteristics of
an aircraft or a skyscraper, by actually building or constructing it, we can
simulate its performance on the basis of its characteristics. In this way we can
experiment without incurring the cost of failure. The simulation techniques allow
the modern managers to examine the probable consequences of his decisions
without the risk of real life experimentation.

11. Replacement Theory. This theory suggested the determination of the time
when items of plant should be replaced. The replacement of items is necessary
because the efficiency of an item deteriorates with time, or sometimes the item
may fail completely. Replacement, on the one hand, requires investment, on
the other, saves operating cost which otherwise is more while using old parts.
Thus, a problem arises when the part should be replaced so that cost is
minimum. The replacement problems arises in three conditions:

(i) Replacements of item that fail completely and are expensive to be

replaced.
(ii) Replacement of items whose efficiency deteriorates with time: and
(iii) Replacement of items because of obsolescence.

12. Reliability. Reliability theory is concerned with quantifying the frequency of

failures and developing an indicator of quality and dependability of a product. It
is closely associated with probability theory and therefore facilitates statistical
analysis and measurement.
The assessment of reliability of equipment is most useful to the designer in
improving the quality of critical parts as well as in deciding how much to provide
by way of standby.

13. Some Advance O.R. Techniques.

(i) Non-linear programming is that form of programming in which some or

all of the variables are curvilinear. In other words, this means that either
the objective functions or the constraints or both are not in liner form. In
most of the practical situations, we encounter with non-linear
programming problems.
(ii) Integer programming. Integer programming applies when the values of
decision variables are restricted to integers. Applications include
Financial Management and Plant Location.
 (iii) Goal programming. Goal programming deals with the problems having
multiple objectives. It is a technique quite similar to linear programming.
Applications include production scheduling, transportation problems,
portfolio analysis and crop selection in agriculture.

(iv) Heuristic programming also known as discovery method refers to step by

step search towards an optimal when a problem cannot be expressed in
mathematical programming form. The search procedure examines
successively a series of combinations that lead to stepwise improvement
in the solution and the search stops when near optimal has been found.

(v) Algorithmic programming is just the opposite of Heuristic programming. It

may also be termed as mathematical programming. This programming
refers to a thorough and exhaustive mathematical approach to
investigate all aspects of given variables in order to obtain optimal
solution.

(vi) Quadratic programming refers to a modification of linear programming, in

which the objective function and constraint equations appear in quadratic
form, i.e., they contain squared terms.

(vii) Probabilistic programming also known as stochastic programming refers

to linear programming that includes an evaluation of relative risks and
uncertainties in various alternatives of choice for management decision.

Markov Analysis. The Markov analysis is a method of analyzing the current

movement of some variables in an effort to predict the future movement of the
same variable. Russian mathematician, A. Markov developed this analysis, early in
the 20th century. As a management tool, the Markov analysis has been used in the
last few years mainly as a marketing aid for examining and predicting the behavior
of the consumer in terms of their brand loyalty and their switching from one brand
to another. A full treatment of the application of Markov analysis to managerial
decision making would require an extensive background in mathematics. This
technique, however, can be most favorably applied
COMPANY
PROFILE
 About Dish Tv

Dishtv is a division of Zee Network Enterprise (Essel Group Venture). EGV has
national and global presence with business interests in media programming,
broadcasting & distribution, speciality packaging and entertainment. Zee Network
incorporated dishtv to modernize TV viewing. dishtv is India’s first direct to home
(DTH) entertainment service. By digitalizing Indian entertainment, this enterprise
brought best television viewing technology to the living room. It not only transmits
high quality programmes through satellite; but also gives a complete control of
selecting channels and paying for them.

Dishtv imparts DVD quality picture and stereophonic sound effects to the
customers. It promises to change the experience of TV viewing with its
uninterrupted transmission service. The endeavour enters next level of
entertainment with futuristic features, such as EPG (Electronic Programme
Guide), parental lock, games, 400 channels, interactive TV and movie on
demand. dishtv also brings exclusive national and international channels for the
first time in India.
 History Of Dish Tv

Dish TV is a part of Essel Group, is India’s first direct to home entertainment

service. The company provides around 225 channels, highest in numbers in this
segment. It also provides games, interactive TV, Movies on Demand, etc. Dish TV
is market leader in Direct to home (DTH) service having a pan-India presence.      

By digitalizing Indian entertainment, this enterprise brought best television viewing

technology. It not only transmits high quality programmes through satellite; but also
gives a complete control of selecting channels and paying for them. Dish TV
imparts DVD quality picture and stereophonic sound effects to the customers. It
promises to change the experience of TV viewing with its uninterrupted
transmission service. The endeavor enters next level of entertainment with
futuristic features, such as EPG (Electronic Programme Guide), parental lock,
games, 400 channels, interactive TV and movie on demand. Dish TV also brings
exclusive national and international channels for the first time in India.

Dish TV India has three subsidiaries namely Integrated Subscriber Management

Services (ISMSL), Agrani Satellite Services (ASSL) and Agrani Convergence
(ACL).

In May 2010, the company launched High Definition (HD) Service - Dish Tru HD on
its platform.

In December 2010, Dish TV India expanded its channel capacity by 50% to 648
MHz from earlier 432 MHz by entering into a long-term contract for additional
transponders on Asiasat with ‘Antriksh’.

In Feb 2011 Dish TV, the pioneers and market leaders in the Indian DTH market,
became Asia’s first DTH company to acquire 10 million subscribers.

In March 2011, announced an alliance with J&K Bank enabling it to offer recharge
preference to its subscribers in the state.

In June 2011, Dish TV announced an addition of three more Telugu channels in its
bouquet for its Telugu speaking viewers in the state of Andhra Pradesh and
addition of two more Kannada channels in its bouquet for its viewers in the state of
Karnataka. It has also added three more Oriya channels in its bouquet for its
viewers in the state of Orissa.

In July 2011, Dish TV offers digital entertainment for the complete family at cable
TV prices. Dish TV offers new packs specifically for South Indian.
 Products and Services
Dish TV provides wide range of packages that caters to all segment of  keeping in
mind needs various customers such as Dish Maxi Plus, Dish Maxi, Dish Welcome,
Dish Freedom Plus, Dish Freedom, Silver Pack, Child Pack, Dish Mini, Dish A La
Carte. It has also introduced new packages to attract more consumers such as
“Mini Pack”.

It also provides other services such as movies on demand, gaming, bhakti active,
astro active, sports active and multilingual services. It also provides ICICI active,
an Interactive banking services giving information about products and services of
ICICI Bank.

MDU
The Multi Dwelling Unit is a customized solution for connecting multiple houses
within the same multi storied building with a single or two Dish Antennas to receive
Direct-to-Home service. Common dish is installed on the terrace of the multi storied
building which gives power to TV sets in multiple homes in the building that are
connected through a cable. Once the dish is installed, the members have the
choice to subscribe for the DTH connection.
Direct-to-Home entertainment is based on the concept of receiving the channels
directly on your television through a satellite. A small dish is installed in your home
to receive the signals from the satellite. However, one connection needs one dish
to receive the satellite signals. This leads to many dishes in any multi storied
building having many subscribers.

MDU is the solution that reduces the number of dishes to one or two in a multi
storied building for all the subscribers in the building.
MDU is a centralized network consisting of multi switches and amplifiers for
distributing the signal received by one or two Dish antennas.

The Dish Antenna captures the signals and transmits them through multi switches
on to the individual STBs in the subscriber's flat. The setup is customized
depending on the number of connections and the connectivity structure of the
building.

Advantage of MDU

• Each and every customer in the building does not have to have a separate Dish
Antenna to receive DTH services.
• Additional dish is not required to be installed for any additional subscriber in the
building.
• It is easy to maintain one or two dish antenna in a building
NSS-6
dishtv uses NSS-6 to broadcast its programmes. NSS-6 was launched on 17th
December, 2002 by European-based satellite provider, NewSkies (one of the only
four fixed satellite communications companies with truly global satellite coverage)

dishtv - India's first KU-band DTH entertainment service, hopped on to NSS-6 from
an INSAT satellite in July 2004. The change in the satellite was to increase the
channel offering as NSS 6 offered more transponder capacity.

 Salient Features of NSS-6

Versatile Ku-band and Ka-beams can be easily cross-strapped or interconnected,

offering enhanced connectivity throughout Asia with complete access to Europe
and the United States through New Skies’ global network.
Higher transmission power enables customers to use smaller antennas (75-90cm)
or obtain higher throughput with existing antennas.

NSS 6 is also equipped with extra on-board redundancy for critical units,
minimizing risk of single-point failure throughout the projected 14-year operational
life of the satellite.

Ideally suited for DTH and emerging broadband applications.

Transponder & Capacity

Satellite TV and radio channels are transmitted back to earth via a transponder on
a satellite. NSS-6 dishtv’s service satellite has more than 60 high-power 36 MHz
-equivalent Ku-band transponders that are tailored towards direct-to-home (DTH)
and multimedia services.Additionally, up to 15 highly linearized transponders can
be assigned to each of the six beams to respond to changing market demand.
Each Ku-band beam is formed by an independent high-gain antenna system,
offering 51-53 dBW in key markets.
MARKETING RESEARCH
Marketing research is the systematic and objective identification, collection,
analysis, dissemination and use of information for the purpose of assisting
management in decision making related to the identification and solution of
problems in marketing.

Marketing Research is the collection and analysis of data from a sample of

individuals or organizations related to their characteristics, behavior, attitudes,
opinions or possessions. It includes all forms of research such as consumer
and industrial survey, psychological investigations, observations and panel
studies.

It can be defined as the means of acquiring information to assist in the making

of marketing decisions under uncertainty.

It is the systematic and objective search for, and analysis of, information
relevant to the identification and solution of any problem in the field of
marketing.

Marketing Research is the systematic design, collection, analysis and reporting

of data and findings relevant to a specific marketing situation facing the
company.
 PURPOSE OF MARKETING RESEARCH
The main purpose of marketing research is to provide information, which will
facilitate the identification of a problem situation, and to assist in arriving at the
best possible decisions when such situations are encountered. The market
research analysts provide this information to the company.

Research analysts are concerned with the potential sales of a product or

service. They analyze statistical data on past sales to predict future sales. They
gather data on competitors and analyze prices, sales, and methods of
marketing and distribution. Like economists, market research analysts devise
methods and procedures for obtaining the data they need. They often design
telephone, personal, or mail interview surveys to assess consumer preferences.
After compiling the data, market research analysts evaluate it and make
recommendations to their client or employer based upon their findings. They
provide a company’s management with information needed to make decisions
on the promotion, distribution, and design and pricing of products or services.
 A CLASSIFICATION OF MARKETING RESEARCH

MARKETING RESEARCH

Marketing Research is classified as:-

1. Problem identification research

 marketing potential research
 market share research
 image research
 market characteristic research
 sales analysis research
 forecasting research
 business trends research

2. Problem solving research

 Segmentation research
 Product research
 Pricing research
 Promotion research
 Distribution research
 MARKETING RESEARCH PROCESS
Marketing research process consists of several steps that define the task to be
accomplished in conducting a market research study.

Step-1
Problem Definition
The first step in marketing research project is to define the problem. In defining the
problem, the researcher should take into account the purpose of the study, the
relevant background information, the information needed and how it will be used in
decision making. Problem definition involves discussion with the decision makers,
interviews with industry experts, analysis of secondary data, and perhaps some
qualitative research, such as focus group.

Step-2
Development of an approach to the problem
Development of an approach to the problem to the problem includes formulating an
objective or theoretical framework, analytical models, research questions and
hypothesis and identifying the information needed.

Step-3
Research design formulation
A research design is a framework for conducting the marketing research project.
Formulating the research design involves the following steps:-

1. Definition of the information needed

2. Secondary data analysis
3. qualitative research
4. methods of collecting quantitative data
5. measurement and scaling procedures
6. questionnaire design
7. sampling process and sample size
8. plan of data analysis

Step-4
Fieldwork or data collection
Data collection involves a field force or staff that operates either in the field as in the
case of personal interviewing. (In home, mall intercept or computer assisted personal
interviewing) from an office by telephone, through mail.
Step-5
Data preparation and analysis
Data preparation includes the editing, coding, transcription and verification of data.
Each questionnaire is transcribed. The data are analyzed to derive the information
related to the components of marketing research problem. And this provides input in
to the management decision problem.

Step-6
Report preparation and presentation
The entire project should be documented in a written report that addresses the
specific research question identified, describes the approach, the research design,
data collection and data analysis procedures adopted and present the results and the
major findings.
CONSUMER BEHAVIOUR
DEFINITION

“The study of the buying units and the exchange processes involved in a acquiring,
consuming, and disposing of goods, services, experiences, and ideas”

This simple definition contains a number of important concepts. First, note the
inclusion in the definition of the word “exchange”. Consumer is inevitably at the one
end of an exchange process in which resources are transferred between two
parties. For example, an exchange takes place between a doctor and a patient: the
physician trades medical services for money. Other resources- such as feelings,
information, and status- may also be exchanged between the parties. Exchange
process as a fundamental element of Consumer Behavior. Exchanges occur
between Consumers and Firms. Again looking at the definition the term “buying
units” rather than consumers. This is because purchases may be made by groups
as well as individuals. In fact, an important study area for Consumer researchers is
organizational buying behavior.

THE EXCHANGE PROCESS INVOLVES A SERIES OF STEPS

i) Acquisition phase
ii) Consumption phase
iii) Disposition phase of the product or service

ACQUISITION PHASE
Researchers analyze the factors that influence consumer’s product and service
choices. Indeed, most of the researchers has focused on the Acquisition phase. One
factor associated with the search for and selection of goods and services is product
symbolism- i.e., people often acquire a product to express to others certain ideas and
meanings they have about themselves

CONSUMPTION PHASE
Consumption phase researchers analyze how Consumers actually use a product or
service and the experience they obtain from such use. The consumption experience is
extremely important for service industry. In some industries, such as restaurants,
amusement parks, and rock concert promotions, the consumption experience is the
reason for purchase.

DISPOSITION PHASE
Disposition phase refers to what Consumers do with a product once they have finished
using it. In addition, it addresses Consumer satisfaction levels after purchasing a good
or service. When Consumers have unrealistic expectations of a product, they are
unlikely to realize anticipated outcomes, and they will probably be highly dissatisfied.
Consumer Behavior is a young discipline. It incorporates theories and concepts from all
behavioral sciences, so that when studying the Acquisition, Consumption, & Disposition
of products, services, and ideas, one has to explore the discipline of Marketing,
Psychology, Sociology, Anthropology, Demography, and Economics.
 WHY STUDY CONSUMER BEHAVIOR?

Understanding Consumers and consumption process brings a number of benefits,

among them the ability to assist managers in their decision making, provide
marketing researchers with a knowledge base from which to analyze Consumers,
help legislators and regulators create laws and regulations concerning the
purchase and sale of goods and services, and assist the average Consumer in
making better purchase decisions.

REASONS FOR STUDYING CONSUMER BEHAVIOR

o Consumer analysis should be the foundation of marketing

management. It assist managers to:
o Design the Marketing mix.
o Segment the market place.
o Position and differentiate products.
o Perform an environmental analysis.
o Develop market research studies
o Consumer Behavior should play an important role in the development
of public policy.
o Consumer analysis provides knowledge of overall human Behavior.
o The study of Consumer Behavior provides three types of information:
o A Consumer orientation.
o Facts about human Behavior.
o Theories to guide the thinking process.
 THREE RESEARCH PERSPECTIVES ON CONSUMER
BEHAVIOR

A key feature of the field is its research base. As a social science, Consumer
Behavior employs research methods and procedures from psychology, sociology,
economics, and anthropology. To generalize, research in Consumer Behavior is
organized according to three research perspectives that act as guides in thinking
about and identifying the factors that influence consumer acquisition behavior.

These three perspectives are:-

o The Decision-Making Perspective

o The Experimental Perspective
o The Behavioral Influence Perspective

TYPES OF BUYERS

Buyer Behavior is a complex topic precisely because it deals with people. People are
complex, unpredictable, and at times even irrational. They are also unique. No two
buying situations are exactly alike because the buyers are not exactly alike. Yet all
buyer behavior is goal oriented; people are trying to satisfy particular needs when they
purchase and consume products and services. It is marketers task to recognize the
needs of the particular buyer and attempt to satisfy them. In every buying situation, the
actual decision to buy is made by a decision-making-unit(DMU). There are three basic
DMUs, this classification is based on the process of buyer behavior, not on the
products consumed:
Individual consumers:- The decision to buy is made by the individual, and the purchase
is used to satisfy a personal need. Many buying decisions are made, and many
products are consumed by an individual consumer.
Households:- Many times, a product is used by, and perhaps purchased by, a group of
consumers who form a Household. Example is a family meal.
Organizations:- Businesses, Governments, and Nonprofit Organizations are all formal
Organizations. DMUs in organizations are composed of a number of members with
different roles to play.

ROLES OF BUYERS

While individual consumers make buying decisions for themselves, the purchase of
households and organizations are the results of group decision-making-processes
by DMU. The role of buyers is that of :-
o Initiator
o Purchaser
o Decision maker
o Influencer
o Gatekeeper

The buyer decision

The understanding buyer behavior is the keystone to developing successful
Marketing strategies; marketing managers must have a clear understanding of the
process by which buying decisions are made, whether by individual consumers, by
households, or by organizations.

The steps in the buyer decision process:-

Problem recognition, information search, evaluation of alternatives, purchase

decision, and post purchase evaluation.
Steps in the buyer decision process

Recognisation
problem

Information Search

Evaluation of Alternatives

Purchase
Decision

Post purchase

Evaluation
 FACTORS THAT INFLUENCE CONSUMER BEHAVIOR

The factors that influence Consumer Behavior are divided into two categories-
o Internal Factors
o External Factors

INTERNAL FACTORS

At the care of any individual’s Consumer Behavior is his or her own psychological
makeup. There are number of concepts from fields of psychology and social
psychology that are critical to an understanding of Consumer Behavior. The
Internal Factors include the psychological factors as
o Needs and Motives
o Personality
o Perception
o Learning
o Attitudes
o Involvement

EXTERNAL FACTORS

The overall society in which a Consumer lives has considerable effect on

Consumer Behavior. The beliefs and values and indeed, the world view that an
individual holds are learned and transmitted within the societal framework. The
effect of those values is often difficult to assess because they are deeply, almost
unconsciously, held. They are also enduring, changing slowly, even in the face of
major technological and social change. The various sociocultural factors, then have
a tremendous effect on people’s behavior as consumers. The external factors can
be categorized as
o Sociocultural factors
 Societal values
 Economic factors
 The media
 Reference groups
o Demographic characteristics
 Age
 Gender
 Income
 Educational level
 Occupation

QUESTIONNAIRE DESIGN
Questionnaires are an inexpensive way to gather data from a potentially large
number of respondents. Often they are the only feasible way to reach a number of
reviewers large enough to allow statistically analysis of the results. A well-designed
questionnaire that is used effectively can gather information on both the overall
performance of the test system as well as information on specific components of
the system. If the questionnaire includes demographic questions on the
participants, they can be used to correlate performance and satisfaction with the
test system among different groups of users.
The steps required to design and administer a questionnaire include:
1. Defining the Objectives of the survey
2. Determining the Sampling Group
3. Writing the Questionnaire
4. Administering the Questionnaire
5. Interpretation of the Results

Before these steps are examined in detail, it is good to consider what

questionnaires are good at measuring and when it is appropriate to use
questionnaires.

What can questionnaires measure?

Questionnaires are quite flexible in what they can measure, however they are not
equally suited to measuring all types of data. We can classify data in two ways,
Subjective vs. Objective and Quantitative vs. Qualitative.
When a questionnaire is administered, the researchers control over the
environment will be somewhat limited. This is why questionnaires are inexpensive
to administer. This loss of control means the validity of the results are more reliant
on the honesty of the respondent. Consequently, it is more difficult to claim
complete objectivity with questionnaire data then with results of a tightly controlled
lab test. In general, questionnaires are better suited to gathering reliable subjective
measures, such as user satisfaction, of the system or interface in question.
Questions may be designed to gather either qualitative or quantitative data. By
their very nature, quantitative questions are more exact then qualitative. Any
question must be carefully crafted, but in particular questions that assess a
qualitative measure must be phrased to avoid ambiguity. Qualitative questions may
also require more thought on the part of the participant and may cause them to
become bored with the questionnaire sooner. In general, we can say that
questionnaires can measure both qualitative and quantitative data well, but that
qualitative questions require more care in design, administration, and
interpretation.

When to use a questionnaire?

There is no all encompassing rule for when to use a questionnaire. The choice
will be made based on a variety of factors including the type of information to be
gathered and the available resources for the experiment.

I. Defining the Objectives of the Survey

The importance of well-defined objectives can not be over emphasized. A
questionnaire that is written without a clear goal and purpose is inevitably going to
overlook important issues and waste participants' time by asking useless
questions. The questionnaire may lack a logical flow and thereby cause the
participant to lose interest. Consequential, what useful data you may have
collected could be further compromised. The problems of a poorly defined
questionnaire do not end here, but continue on to the analysis stage. It is difficult to
imagine identifying a problem and its cause. In other words, how would it be
possible to reach insightful conclusions if one didn't actually know what they had
been looking for or planning to observe.
A good rule of thumb is that if you are finding it difficult to write the questions, then
you haven't spent enough time defining the objectives of the questionnaire. Go
back and do this step again. The questions should follow quite naturally from the
objectives.

II. Writing the Questionnaire

If the preceding steps have been faithfully executed, most of the questions will be
on obvious topics. Most questionnaires, however, also gather demographic data on
the participants. This is used to correlate response sets between different groups
of people. It is important to see whether responses are consistent across groups.
For example, if one group of participants is noticeably less satisfied with the test
interface, it is likely that the interface was designed without fair consideration of this
group's specific needs. This may signify the need for fundamental redesign of the
interface. In addition, certain questions simply may only be applicable to certain
kinds of users.
Typically, demographic data is collected at the beginning of the questionnaire, but
such questions could be located anywhere or even scattered throughout the
questionnaire. One obvious argument in favor of the beginning of the questionnaire
is that normally background questions are easier to answer and can ease the
respondent into the questionnaire.
It is important to ask only those background questions that are necessary. Do not
ask income of the respondent unless there is at least some rational for suspecting
a variance across income levels. There is often only a fine line between
background and personal information. You do not want to cross over in to the
personal realm unless absolutely necessary.
Questionnaire Research Flow Chart

Questionnaire research design proceeds in an orderly and specific manner. Each

item in the flow chart depends upon the successful completion of all the previous
items. Therefore, it is important not to skip a single step. Notice that there are two
feedback loops in the flow chart to allow revisions to the methodology and
instruments.
Advantages of Written Questionnaires

 Questionnaires are very cost effective when compared to face-to-face

interviews. This is especially true for studies involving large sample sizes
and large geographic areas. Written questionnaires become even more cost
effective as the number of research questions increases.

 Questionnaires are easy to analyze. Data entry and tabulation for nearly
all surveys can be easily done with many computer software packages.

 Questionnaires are familiar to most people. Nearly everyone has had

some experience completing questionnaires and they generally do not make
people apprehensive.

 Questionnaires reduce bias. There is uniform question presentation and

no middle-man bias. The researcher's own opinions will not influence the
respondent to answer questions in a certain manner. There are no verbal or
visual clues to influence the respondent.

 Questionnaires are less intrusive than telephone or face-to-face

surveys. When a respondent receives a questionnaire in the mail, he is free
to complete the questionnaire on his own time-table. Unlike other research
methods, the respondent is not interrupted by the research instrument.
Disadvantages Of Written Questionnaires

One major disadvantage of written questionnaires is the possibility of low

response rates. Low response is the curse of statistical analysis. It can
dramatically lower our confidence in the results. Response rates vary widely from
one questionnaire to another (10% - 90%), however, well-designed studies
consistently produce high response rates.

Another disadvantage of questionnaires is the inability to probe responses.

Questionnaires are structured instruments. They allow little flexibility to the
respondent with respect to response format. In essence, they often lose the "flavor
of the response" (i.e., respondents often want to qualify their answers). By allowing
frequent space for comments, the researcher can partially overcome this
disadvantage. Nearly ninety percent of all communication is visual. Gestures and
other visual cues are not available with written questionnaires. The lack of personal
contact will have different effects depending on the type of information being
requested. A questionnaire requesting factual information will probably not be
affected by the lack of personal contact. A questionnaire probing sensitive issues
or attitudes may be severely affected.

When returned questionnaires arrive in the mail, it's natural to assume that the
respondent is the same person you sent the questionnaire to. This may not actually
be the case. Many times business questionnaires get handed to other employees
for completion. Housewives sometimes respond for their husbands. Kids respond
as a prank. For a variety of reasons, the respondent may not be who you think it is.
It is a confounding error inherent in questionnaires.

Finally, questionnaires are simply not suited for some people. For example, a
written survey to a group of poorly educated people might not work because of
reading skill problems.
Questionnaire Design - General Considerations

 Be sure to commit the study goals to writing.

 Formulate a plan for doing the statistical analysis during the design

stage of the project.

 Make the envelope unique.

 Provide a well-written cover letter.

 Give your questionnaire a title that is short and meaningful to the

respondent.

 Include clear and concise instructions on how to complete the

questionnaire.

 Use simple and direct language.

 Leave adequate space for respondents to make comments.

 Place the most important items in the first half of the questionnaire.

 Hold the respondent's interest.

 Provide incentives as a motivation for a properly completed

questionnaire.

 Use professional production methods for the questionnaire.

 FACTOR ANALYSIS
Factor analysis is an interdependence technique in that an entire set of
interdependent relationships is examined.

Mathematically, factor analysis is somewhat similar to multiple regression

analysis, in that each variable is expressed as a linear combination of underlining
factors. The amount variance a variable shares with all other variables included in
the analysis is referred to as communality. The co variation among the variables is
described in terms of small number of common factor plus a unique factor for each
variable. If the variables are standardized, the factor model may be represented as:

Xi = Ai1F1 + Ai2F2 + Ai3F3 + … + AimFm + ViUi

Where

Xi = ith standardized variable

Aij = standardized multiple regression coefficient of variable I on common

factor j

F= common factor

Vi = standardized regression coefficient of variable I on unique factor I

Ui = the unique factor for variable i

m = number of common factors

The unique factors are uncorrelated with each other and with the common factors. 3
The common factors themselves can be expressed as linear combinations of the
observed variables.

Fi = Wi1x1 + Wi2X2 + Wi3X3 + … + WikXk

Where

Fi = estimate of i th factor

Wi = weight or factor score coefficient

k = number of variables
Key Concepts and Terms

Exploratory factor analysis (EFA) seeks to uncover the underlying structure of a

relatively large set of variables. The researcher's à priori assumption is that any
indicator may be associated with any factor. This is the most common form of
factor analysis. There is no prior theory and one uses factor loadings to intuit the
factor structure of the data.

Confirmatory factor analysis (CFA) seeks to determine if the number of factors

and the loadings of measured (indicator) variables on them conform to what is
expected on the basis of pre-established theory. Indicator variables are selected on
the basis of prior theory and factor analysis is used to see if they load as predicted
on the expected number of factors. The researcher's à priori assumption is that
each factor (the number and labels of which may be specified à priori ) is
associated with a specified subset of indicator variables. A
minimum requirement of confirmatory factor analysis is that one hypothesize
beforehand the number of factors in the model, but usually also expectations about
which variables will load on which factors (Kim and Mueller, 1978b: 55).

Factors and components: Both are the dimensions (or latent variables) identified
with clusters of variables, as computed using factor analysis. Technically speaking,
factors (as from PFA -- principal factor analysis, a.k.a. principal axis factoring,
a.k.a. common factor analysis) represent the common variance of variables,
excluding unique variance, and is thus a correlation-focused approach seeking to
reproduce the intercorrelation among the variables. By comparison, components
(from PCA - principal components analysis) reflect both common and unique
variance of the variables and may be seen as a variance-focused approach
seeking to reproduce both the total variable variance with all components and to
reproduce the correlations. PCA is far more common than PFA, however, and it is
common to use "factors" interchangeably with "components."

* Factor loadings: The factor loadings, also called component loadings in PCA,
are the correlation coefficients between the variables (rows) and factors (columns).
Analogous to Pearson's r, the squared factor loading is the percent of variance in
that variable explained by the factor. To get the percent of variance in all the
variables accounted for by each factor, add the sum of the squared factor loadings
for that factor (column) and divide by the number of variables. (Note the number of
variables equals the sum of their variances as the variance of a standardized
variable is 1.) This is the same as dividing the factor's eigenvalue by the number of
variables.

In SPSS, the factor loadings are found in a matrix labeled Factor Matrix if PFA is
requested, or in one labeled Component Matrix if PCA is requested, or one labeled
Pattern Matrix if an oblique rotation is requested.

The sum of the squared factor loadings for all factors for a given variable (row) is
the variance in that variable accounted for by all the factors, and this is called the
communality. In a complete PCA, with no factors dropped, this will be 1.0, or 100%
of the variance. The ratio of the squared factor loadings for a given variable (row in
the factor matrix) shows the relative importance of the different factors in explaining
the variance of the given variable. Factor loadings are the basis for imputing a label
to the different factors.

* Communality, h2, is the squared multiple correlation for the variable using the
factors as predictors. The communality measures the percent of variance in a
given variable explained by all the factors jointly and may be interpreted as the
reliability of the indicator.

When an indicator variable has a low communality, the factor model is not working
well for that indicator and possibly it should be removed from the model. However,
communalities must be interpreted in relation to the interpretability of the factors. A
communality of .75 seems high but is meaningless unless the factor on which the
variable is loaded is interpretable, though it usually will be. A communality of .25
seems low but may be meaningful if the item is contributing to a well-defined factor.
That is, what is critical is not the communality coefficient per se, but rather the
extent to which the item plays a role in the interpretation of the factor, though often
this role is greater when communality is high.

Communality for a variable is computed as the sum of squared factor loadings for
that variable (row). Recall r-squared is the percent of variance explained, and since
factors are uncorrelated, the squared loadings may be added to get the total
percent explained, which is what communality is. For full orthogonal PCA, the
communality will be 1.0 for all variables and all of the variance in the variables will
be explained by all of the factors, which will be as many as there are variables. In
the communalities chart, SPSS labels this column the "initial" communalities. The
"extracted" communality is the percent of variance in a given variable explained by
the factors which are extracted, which will usually be fewer than all the possible
factors, resulting in coefficients less than 1.0. For PFA, however, the
communalities for the various factors will be less than 1 even initially. Communality
does not change when rotation is carried out, hence in SPSS there is only one
communalities table.

* Eigenvalues: Also called characteristic roots . The eigenvalue for a given factor
measures the variance in all the variables which is accounted for by that factor.
The ratio of eigenvalues is the ratio of explanatory importance of the factors with
respect to the variables. If a factor has a low eigenvalue, then it is contributing little
to the explanation of variances in the variables and may be ignored as redundant
with more important factors.

Thus, eigenvalues measure the amount of variation in the total sample accounted
for by each factor. Note that the eigenvalue is not the percent of variance explained
but rather a measure of "amount," used for comparison with other eigenvalues. A
factor's eigenvalue may be computed as the sum of its squared factor loadings for
all the variables. Note that the eigenvalues associated with the unrotated and
rotated solution will differ, though their total will be the same.

* Trace is the sum of variances for all factors, which is equal to the number of
variables since the variance of a standardized variable is 1.0. A factor's eigenvalue
divided by the trace is the percent of variance it explains in all the variables, usually
labeled percent of trace in computer output. Computer output usually lists the
factors in descending order of eigenvalue, along with a cumulative percent of trace
for as many factors as are extracted.

* Factor scores: Also called component scores in PCA, factor scores are the
scores of each case (row) on each factor (column). To compute the factor score for
a given case for a given factor, one takes the case's standardized score on each
variable, multiplies by the corresponding factor loading of the variable for the given
factor, and sums these products. The SPSS FACTOR procedure saves
standardized factor scores as variables in your working data file. By default it will
name them FAC1_1,FAC2_1, FAC3_1, etc., for the corresponding factors (factor 1,
2 and 3) of analysis 1; and FAC1_2, FAC2_2, FAC3_2 for a second set of factor
scores, if any, within the same procedure, and so on. Although SPSS adds these
variables to the right of your working data set automatically, they will be lost when
you close the dataset unless you re-save your data.

* Kaiser criterion: A common rule of thumb for dropping the least important
factors from the analysis. The Kaiser rule is to drop all components with
eigenvalues under 1.0. Kaiser criterion is the default in most computer programs.

* Scree plot: The Cattell scree test plots the components as the X axis and the
corresponding eigenvalues as the Y axis. As one moves to the right, toward later
components, the eigenvalues drop. When the drop ceases and the curve makes an
elbow toward less steep decline, Cattell's scree test says to drop all further
components after the one starting the elbow. Scree plot example.

* Variance explained criteria: Some researchers simply use the rule of keeping
enough factors to account for 90% (sometimes 80%) of the variation.

* Rotation Methods. Rotation serves to make the output more understandable

and is usually necessary to facilitate the interpretation of factors. The sum of
eigenvalues is not affected by rotation, but rotation will alter the eigenvalues of
particular factors.

* No rotation is the default in SPSS, but it is a good idea to select a rotation

method, usually varimax. The original, unrotated principal components solution
maximizes the sum of squared factor loadings, efficiently creating a set of factors
which explain as much of the variance in the original variables as possible. The
amount explained is reflected in the sum of the eigenvalues of all factors. However,
unrotated solutions are hard to interpret because variables tend to load on multiple
factors.

* Varimax rotation is an orthogonal rotation of the factor axes to maximize the

variance of the squared loadings of a factor (column) on all the variables (rows) in
a factor matrix, which has the effect of differentiating the original variables by
extracted factor. That is, it minimizes the number of variables which have high
loadings on any one given factor. Each factor will tend to have either large or small
loadings of particular variables on it. A varimax solution yields results which make it
as easy as possible to identify each variable with a single factor. This is the most
common rotation option.

* Quartimax rotation is an orthogonal alternative which minimizes the number of

factors needed to explain each variable.

* Equimax rotation is a compromise between Varimax and Quartimax criteria.

* Direct oblimin rotation is the standard method when one wishes a non-
orthogonal solution -- that is, one in which the factors are allowed to be correlated.
This will result in higher eigenvalues but diminished interpretability of the factors.
See below.

* Promax rotation is an alternative non-orthogonal rotation method which is

computationally faster than the direct oblimin method and
therefore is sometimes used for very large datasets.
 Steps in
Conducting Factor Analysis

Formulate the problem.

↓
Construct the correlation matrix.
↓
Determine the method of factor analysis.
↓
Determine the number of factors.
↓
Rotate the factors.
↓
Interpret the factors Variables
↓

Calculate the Select the

Factor scores Surrogate

.
↓
Determine the model fit
 RESEARCH OBJECTIVE &
METHODOOGY

I. OBJECTIVE OF THE STUDY

The main objective of this study are as follow:

“Analysing the effectiveness of different promotions and the different modes of

communication.”

II. METHODOLOGY

The methodology adopted for collecting data and sample design is given below:

A. COLLECTION OF DATA

For collecting Primary Data from the users, a questionnaire was

designed.
This questionnaire was administered to the consumers who use DTH
services. Then a pilot survey was conducted to check the validity of
the survey. Sample questionnaire is attached in annexure.

B. SIMPLE RANDOM SAMPLING DESIGN

SAMPLE SIZE : 172

SURVEY AREA : Delhi/NCR

MODE OF SURVEY : INTERVIEW

C. STATISTICAL INTERPRETATION AND ANALYSIS

The data obtained from primary survey was analyzed using tools like SPSS and
Excel etc.
DATA
ANALYSIS
Demographic Information

Female 101

Male 71

Out of the 172 respondents surveyed, 41% are males and 59% are
females .
Age Group:-
Below 20 years 12

20-30 years 102

30-40 years 28

40-50 years 14

above 50 years 16

Out of the 172 respondents being surveyed, 7% of the population belongs to below
20 years age group. The number of respondents belonging to 20- 30 years age
group is 60 % , 30-40 years age group is 16 % , 40-50 years age group is 8% and
above 50 years age group is 9 % .
Occupation:
Business 24

Service 60

Student 68

Unemployed 16

Others 5

Out of the 172 respondents surveyed, mostly i.e. 39%, are students
followed by servicemen who are working constituting 35% of the sample
and Businessmen of 14%. A meager percentage also exists of the
categories of ”unemployed” and “Others”(which consists of housewives,
teachers etc.).
1) NUMBER OF MEMBERS IN THE FAMILY
1-2 26

3-4 81

5-6 37

More than 6 28

Out of the 172 respondents surveyed, mostly i.e. 47% have 3-4
members in dere family followed by the category of 5-6 people in a
family constituting of 22% . Moreover, an even distribution of population
is seen in the categories of people having 1-2 and people having more
than 6 members in their family .
2) NUMBER OF PEOPLE USING DTH

Yes 154

No 18

Out of the 172 respondents surveyed, almost i.e. 90% of the people are
using DTH services .
3) DTH SERVICE WHICH PEOPLE ARE USING
Dish TV 102

Airtel 11

Tata Sky 24

Videocon 10

Others 4

Out of the 172 respondents surveyed, mostly i.e. 59.30% of the people
are using Dish Tv , followed by Tata Sky constituting of 13.95% . Also
there is an even distribution of people using DTH services of Airtel and
Videocon , with a very small percentage of people using Other DTH
services .
4) RATING OF ALL THE DTH PROVIDERS ON A SCALE
OF 1-5

1 2 3 4 5

DISH TV 4 14 38 56 52

AIRTEL 2 20 40 62 62

VIDEOCON 14 48 58 28 28

TATA SKY 6 16 24 50 50

OTHERS 70 32 28 10 10
7) SOURCES THROUGH WHICH PEOPLE GOT TO
KNOW ABOUT DISH TV

During the survey when the people were asked whether they have heard
about Dish tv , all the respondents said that they have heard about Dish
Tv .
So to analyse which was the most effective way of advertisement for
future purpose , it was important to ask the source through which
he/she got to know about Dish Tv .

Word Of Mouth 68

Tv Commercials 121

Newspapers 47

Magazines 49

Others 10

The above figures we can interpret that majority of the customers i.e.
121 , heard of Dish Tv through Tv Commercials which constitutes of
more than 70% of the respondents , followed by “word of mouth” .
Newspapers n magazines also contributed to the same to quite a some
extent .
8) NUMBER OF PEOPLE USING DISH TV

Yes 110

No 60

Out of the 172 respondents surveyed, mostly i.e. 65% of the people are
using DTH services of Dish Tv .
9) FOR HOW LONG HAVE PEOPLE BEEN USING DISH
TV

Less than 6 months 26

6-12 months 36

1-2 years 26

more than 2 years 24

Out of the 172 respondents surveyed, mostly i.e. 32% of the people
belong to the category who have been customers of Dish Tv from the
past 6-12 months . Also there is an even distribution of people who
belong to the category who have been using Dish Tv from the past 1-2
years , more than 2 years and also dose who have been using Dish Tv
from a period less than 6 months .
10) AMOUNT PEOPLE PAYING FOR THE CURRENT
PLANS

Less than 200 12

200-350 44

350-500 42

More than 500 14

Out of the 172 respondents surveyed, mostly i.e. 39% of the people are
using plans ranging from rupees 200-350 , followed by those who are
using plans ranging from rupees 350-500 constituting of 37% of the
people . Also , there are almost an equal number of people using plans
which are below rupees 200 and plans which are above rupees 500 .
11) WERE PEOPLE OFFERED DISCOUNT ON THEIR
PLAN

Yes 64

No 48

Out of the 172 respondents surveyed, mostly i.e. 57% of the people
were offered discounts on their plans .
12) SOURCES THROUGH WHICH PEOPLE GOT TO
KNOW ABOUT OFFERS OF DISH TV

Since the communication of offers to the consumers remains the major

way of increasing the usage , so it is of importance to know that how
would a customer prefer to know about the offers of Dish Tv .

Voice Mail 28

Mail 86

SMS 51

Website 32

Deffault Channel 35

Call Centre 31

Dealer 51

Tv Banner 61

The above figures show that majority of the customers i.e. 86 , prefer
mails to know about the latest offers of Dish Tv , followed by Tv Banners
, SMS and the dealers . We also get to know that most of the people do
not prefer to get voice mails and calls from the call centre .
13) RATINGS OF SOURCES THROUGH WHICH PEOPLE
GOT TO KNOW ABOUT OFFERS OF DISH TV

1 2 3 4 5

VOICE MAILS 32 21 24 14 19

MAILS 16 17 37 28 18

SMS 14 17 19 22 44

WEBSITE 12 16 33 29 36

DEFFAULT
14 18 17 45 22
CHANNEL

CALL CENTRE 22 18 36 24 16

DEALER 10 14 14 36 40

TV BANNERS 6 3 26 29 52
14) OFFERS PEOPLE WOULD PREFER TO HAVE ON A
SCALE OF 1-3
Since , better combination of offers provided by the service provider
would result in tan increase in the usage of the customers , so the
customers were asked to rate the following .

1 2 3

CASH BACK 20 38 58

A-LA CARDS 31 49 34

EXTRA NUMBER OF DAYS OF

16 31 69
SUBSCRIPTION

From the above graph we can say that the customers find “extra
number of days of subscription” the best offers among the three listed
above followed by “cash back” . Also it can be interpreted that A-La
cards are not preferred as much as the other two options .
Q15) Factor Analysis

Correlation Matrixa

Customer_Servic
Price Connectivity Clarity e

Sig. (1-tailed) Price .000 .000 .323

Connectivity .000 .000 .253

Clarity .000 .000 .193

Customer_Service .323 .253 .193

Brand_Image .020 .106 .010 .184

Goodwill .051 .005 .000 .141

Availability .127 .011 .199 .058

Channels .000 .000 .000 .335

Brand_Ambassador .001 .372 .160 .274

Offers_Discounts .056 .240 .026 .000

Durability .047 .001 .075 .298

Schemes .153 .067 .141 .021

Technology .000 .000 .044 .163

Quality .382 .367 .063 .004

Communication .001 .314 .007 .268

Overall_Performance .304 .141 .371 .004

a. Determinant = .003
 Correlation Matrixa

Brand_Image Goodwill Availability Channels

Sig. (1-tailed) Price .020 .051 .127 .000

Connectivity .106 .005 .011 .000

Clarity .010 .000 .199 .000

Customer_Service .184 .141 .058 .335

Brand_Image .044 .000 .032

Goodwill .044 .362 .007

Availability .000 .362 .380

Channels .032 .007 .380

Brand_Ambassador .003 .249 .003 .221

Offers_Discounts .021 .138 .070 .016

Durability .030 .121 .137 .136

Schemes .062 .009 .027 .104

Technology .000 .292 .001 .332

Quality .023 .000 .024 .098

Communication .183 .073 .191 .000

Overall_Performance .500 .065 .089 .107

a. Determinant = .003
 Correlation Matrixa

Brand_Ambassa
dor Offers_Discounts Durability Schemes

Sig. (1-tailed) Price .001 .056 .047 .153

Connectivity .372 .240 .001 .067

Clarity .160 .026 .075 .141

Customer_Service .274 .000 .298 .021

Brand_Image .003 .021 .030 .062

Goodwill .249 .138 .121 .009

Availability .003 .070 .137 .027

Channels .221 .016 .136 .104

Brand_Ambassador .102 .003 .069

Offers_Discounts .102 .350 .000

Durability .003 .350 .160

Schemes .069 .000 .160

Technology .000 .344 .168 .109

Quality .022 .002 .431 .118

Communication .102 .000 .143 .000

Overall_Performance .361 .000 .438 .084

a. Determinant = .003
 Correlation Matrixa

Overall_Performa
Technology Quality Communication nce

Sig. (1-tailed) Price .000 .382 .001 .304

Connectivity .000 .367 .314 .141

Clarity .044 .063 .007 .371

Customer_Service .163 .004 .268 .004

Brand_Image .000 .023 .183 .500

Goodwill .292 .000 .073 .065

Availability .001 .024 .191 .089

Channels .332 .098 .000 .107

Brand_Ambassador .000 .022 .102 .361

Offers_Discounts .344 .002 .000 .000

Durability .168 .431 .143 .438

Schemes .109 .118 .000 .084

Technology .307 .251 .370

Quality .307 .053 .002

Communication .251 .053 .000

Overall_Performance .370 .002 .000

a. Determinant = .003
 Inverse of Correlation Matrix

Customer_Servic
Price Connectivity Clarity e Brand_Image

Price 2.773 -.916 -1.260 -.022 .032

Connectivity -.916 3.354 -.868 -.262 .392

Clarity -1.260 -.868 3.047 -.061 -.333

Customer_Service -.022 -.262 -.061 1.282 .060

Brand_Image .032 .392 -.333 .060 1.852

Goodwill .379 -.171 -.790 .092 -.113

Availability .369 -.602 -.164 -.049 -.383

Channels .141 -.777 -.612 .087 -.478

Brand_Ambassador -1.155 .487 .862 -.170 -.497

Offers_Discounts -.493 .972 -.354 -.388 -.649

Durability .383 .587 -.375 -.124 -.144

Schemes -.086 -.428 .572 -.185 -.233

Technology -.088 -1.178 .171 .326 -.485

Quality -.328 .398 .331 -.295 -.205

Communication -.304 .450 -.272 .303 .928

Overall_Performance .554 -.780 .389 -.124 .191

 Inverse of Correlation Matrix

Brand_Ambassa
Goodwill Availability Channels dor Offers_Discounts

Price .379 .369 .141 -1.155 -.493

Connectivity -.171 -.602 -.777 .487 .972

Clarity -.790 -.164 -.612 .862 -.354

Customer_Service .092 -.049 .087 -.170 -.388

Brand_Image -.113 -.383 -.478 -.497 -.649

Goodwill 1.829 .316 .101 -.481 .302

Availability .316 1.480 .345 -.500 -.111

Channels .101 .345 1.879 .014 .030

Brand_Ambassador -.481 -.500 .014 2.375 .626

Offers_Discounts .302 -.111 .030 .626 2.711

Durability .256 .004 -.036 -.427 .224

Schemes -.524 -.206 .089 .626 -.494

Technology .224 .099 .427 -.582 -.013

Quality -.977 -.405 -.094 .809 -.027

Communication -.012 -.112 -.603 -.605 -.982

Overall_Performance -.113 .051 -.061 -.387 -.985

 Inverse of Correlation Matrix

Durability Schemes Technology Quality

Price .383 -.086 -.088 -.328

Connectivity .587 -.428 -1.178 .398

Clarity -.375 .572 .171 .331

Customer_Service -.124 -.185 .326 -.295

Brand_Image -.144 -.233 -.485 -.205

Goodwill .256 -.524 .224 -.977

Availability .004 -.206 .099 -.405

Channels -.036 .089 .427 -.094

Brand_Ambassador -.427 .626 -.582 .809

Offers_Discounts .224 -.494 -.013 -.027

Durability 1.412 -.279 -.214 -.144

Schemes -.279 1.700 -.161 .410

Technology -.214 -.161 1.975 -.335

Quality -.144 .410 -.335 1.884

Communication -.156 -.579 -.133 -.201

Overall_Performance .007 .250 .062 -.289

 Inverse of Correlation Matrix

Overall_Performa
Communication nce

Price -.304 .554

Connectivity .450 -.780

Clarity -.272 .389

Customer_Service .303 -.124

Brand_Image .928 .191

Goodwill -.012 -.113

Availability -.112 .051

Channels -.603 -.061

Brand_Ambassador -.605 -.387

Offers_Discounts -.982 -.985

Durability -.156 .007

Schemes -.579 .250

Technology -.133 .062

Quality -.201 -.289

Communication 2.333 -.168

Overall_Performance -.168 1.741

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .553

Bartlett's Test of Sphericity Approx. Chi-Square 611.882

df 120

Sig. .000
 Communalities

Initial Extraction

Price 1.000 .713

Connectivity 1.000 .801

Clarity 1.000 .769

Customer_Service 1.000 .372

Brand_Image 1.000 .624

Goodwill 1.000 .588

Availability 1.000 .542

Channels 1.000 .596

Brand_Ambassador 1.000 .662

Offers_Discounts 1.000 .736

Durability 1.000 .680

Schemes 1.000 .382

Technology 1.000 .626

Quality 1.000 .667

Communication 1.000 .766

Overall_Performance 1.000 .652

Extraction Method: Principal Component Analysis.

 Total Variance Explained

Extraction Sums of Squared

Initial Eigenvalues Loadings
Compo
nent Total % of Variance Cumulative % Total % of Variance

1 3.542 22.141 22.141 3.542 22.141

2 2.241 14.009 36.149 2.241 14.009

3 1.947 12.168 48.318 1.947 12.168

4 1.383 8.643 56.960 1.383 8.643

5 1.061 6.633 63.593 1.061 6.633

6 .976 6.100 69.694

7 .911 5.693 75.387

8 .763 4.771 80.158

9 .678 4.237 84.395

10 .648 4.050 88.445

11 .566 3.537 91.982

12 .432 2.699 94.681

13 .311 1.941 96.621

14 .213 1.333 97.955

15 .175 1.091 99.046

16 .153 .954 100.000

Extraction Method: Principal Component Analysis

 Total Variance Explained

Extraction Sums
of Squared
Loadings Rotation Sums of Squared Loadings
Compo
nent Cumulative % Total % of Variance Cumulative %

1 22.141 2.728 17.052 17.052

2 36.149 2.310 14.440 31.492

3 48.318 2.119 13.243 44.734

4 56.960 1.778 11.115 55.850

5 63.593 1.239 7.744 63.593

10

11

12

13

14

15

16

Extraction Method: Principal Component Analysis.

 Component Matrixa

Component

1 2 3 4 5

Price .666 -.449 -.081 -.247 -.018

Connectivity .640 -.478 -.239 .068 -.318

Clarity .718 -.268 -.368 -.008 .213

Customer_Service .277 .413 .087 .215 -.267

Brand_Image .413 -.162 .465 .359 .288

Goodwill .500 .141 -.221 .468 .226

Availability .355 -.047 .539 .250 -.246

Channels .612 -.089 -.361 -.181 .225

Brand_Ambassador .106 -.408 .656 -.217 -.081

Offers_Discounts .505 .628 .118 -.270 -.022

Durability -.085 .143 .608 -.100 .522

Schemes .436 .365 .129 -.130 .156

Technology .411 -.484 .448 .042 -.145

Quality .410 .421 -.007 .561 .077

Communication .512 .362 .070 -.599 .095

Overall_Performance .336 .506 .134 -.077 -.508

Extraction Method: Principal Component Analysis.

a. 5 components extracted.
 Rotated Component Matrixa

Component

1 2 3 4 5

Price .755 .099 .333 -.118 -.090

Connectivity .672 -.059 .345 .087 -.468

Clarity .845 .047 .024 .226 -.030

Customer_Service -.136 .377 .097 .387 -.228

Brand_Image .159 -.039 .545 .411 .362

Goodwill .346 .042 -.047 .681 .017

Availability -.079 .169 .667 .242 -.058

Channels .729 .201 -.113 .106 .025

Brand_Ambassador -.005 .004 .707 -.349 .200

Offers_Discounts .087 .833 -.031 .170 .066

Durability -.231 .139 .216 -.020 .748

Schemes .164 .524 .036 .199 .200

Technology .264 -.053 -.043 -.042 .746

Quality .008 .222 .022 .785 -.017

Communication .331 .770 -.033 -.174 .180

Overall_Performance -.153 .664 .139 .143 -.383

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a.Rotation converged in 14 iterations.

Component Transformation Matrix

Component 1 2 3 4 5

1 .712 .474 .355 .369 -.073

2 -.437 .707 -.425 .355 .058

3 -.434 .197 .770 -.073 .418

4 -.218 -.456 .148 .839 -.137

5 .256 -.169 -.281 .170 .893

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.
 FACTOR ANALYSIS INTERPRETATION

Respondents were asked to rate the various attributes of their level of

satisfaction with their current primary service provider on the scale of
(1-5)

This scale was-

1-Extremely Dissatisfied

2-Somewhat Dissatisfied

3-Neither satisfied nor dissatisfied

4-Somewhat Satisfied

5-Extremely Satisfied

Out of the 17 variables we are able to reduce them to 5 factors which

are free from redundancy.

After the statistical computations factoring have been completed. The

next step is of interpreting these factors. This is achieved by inspecting
the pattern of high and low loading of each of the factors on the
variables.
Factor-1
Service

Attribute Mean Factor Loading

Price 3.375 0.755

Connectivity 3.927 0.672
Clarity 3.946 0.845
Channels 3.6 0.729

Interpretation:

We find that the first factor comprises of four attributes. Out of these
four variables, the third variable Clarity influences the most within the
factor. This attribute, has the highest factor loading of 0.8495 with
the highest mean of 3.46.So the service providers are doing well as far
as the Clarity is concerned. All the four attributes within this factor have
positive loading therefore we can say that these attributes affects the
consumers decision significantly.

Factor-2
Offers

Attribute Mean Factor Loading

Schemes 3.16 0.524

Offers and Discounts 3.571 0.833

Overall Performance 4.035 0.664

Communication 3.21 0.770

Interpretation:

We find that the second factor comprises of four attributes. Out of these
four variables, the second variable Offers and Discounts influences
the most within the factor. This attribute, has the highest factor
loading of 0.833 with the 2nd highest mean of 3.571. Since, all the
attributes within this factor have positive loading therefore we can say
that these attributes affects the consumers decision significantly.
Factor-3
Brand

Attribute Mean Factor Loading

Brand Ambassador 3 0.707

Brand Image 3.5 0.545

Availability 3.69 0.667

Interpretation:

We find that the third factor comprises of three attributes. Out of these
three variables, the third variable Brand Ambassador influences the
most within the factor. This attribute, has the highest factor loading
of 0.707 with the least mean of 3. Since, all the attributes within this
factor have positive loading therefore we can say that these attributes
affects the consumers decision significantly
Factor-4
Quality

Attribute Mean Factor Loading

Goodwill 3.54 0.681

Customer Service 3.90 0.387

Quality 4.1 0.785

Interpretation:

We find that the fourth factor comprises of three attributes. Out of these
three variables, the first variable Quality influences the most within the
factor. This attribute, has the highest factor loading of 0.785 with
the highest mean of 4.1. Since, all the attributes within this factor have
positive loading therefore we can say that these attributes affects the
consumers decision significantly.

Factor-5
Durability

Attribute Mean Factor Loading

Durability 3.41 0.748

Technology 3.16 0.746

Interpretation:

We find that the fifth factor comprises of two attributes. Out of these
three variables, the second variable Durability influences the most
within the factor. This attribute, has the highest factor loading of
0.748 with the highest mean of 3.41. Since, all the attributes within this
factor have positive loading therefore we can say that these attributes
affects the consumers decision significantly.

SWOT ANALYSIS
SWOT analysis is a strategic planning tool used to evaluate
the Strengths, Weaknesses, Opportunities, and Threats
involved in a project or in a business venture or in any other
situation of an organization or an individual requiring a
decision in pursuit of an objective. It involves monitoring the
marketing environment, internal or external to the
organization or individual. The technique is credited to Albert
Humphrey, who led a research project at Stanford University
in the 1960s and 1970s using data from Fortune 500
companies.
SWOT can be used as a basis for the analysis of business and
environment factors. It is a technique widely used by a group,
department, unit, organization, or even an individual. SWOT
analysis can be contained within and fed into an individual’s
continued professional development.
The strategic and creative use of SWOT analysis
Strategic use: Orienting SWOTs to an objective- If SWOT
analysis does not start with defining a desired end state or
objective, it runs the risk of being useless. A SWOT analysis
may be incorporated into the strategic planning model.
If a clear objective has been identified, SWOT analysis can be
used to help in the pursuit of that objective. In this case,
SWOTs are:
Strengths: Attributes of the organization those are helpful to
achieve the objective
Weaknesses: Attributes of the organization those are
harmful in achieving the objective
Opportunities: External conditions those are helpful in
achieving the objective
Threats: External conditions those are harmful in achieving
the objective

Correct identification of SWOTs is essential because

subsequent steps in the process of planning for achievement
of the selected objective are to be derived from the SWOTs.
First, the decision makers have to determine whether the
objective is attainable, given the SWOTs. If the objective is not
attainable a different objective must be selected and the
process repeated.
Creative use of SWOTs- If the objective seems attainable. The
SWOTs are used as inputs to the creative generation of
possible strategies, by asking and answering each of the
following questions, many times

1. How can we use each strength?

2. How can we stop each weakness?
3. How can we exploit each opportunity?
4. How can we defend against each threat?

Internal and External Factors

The aim of any SWOT analysis is to identify the key external
and internal factors that are important in achieving the
objective. SWOT analysis groups key pieces of information
into two main categories:
 External factors: Opportunities and threats presented by
the external environment.
 Internal factors: The strengths and weaknesses internal
to the organization.
The internal factors may be viewed as strengths or
weaknesses depending upon their impact on the
organization’s objectives. What may represent strength with
respect to one objective may be weaknesses for another
objective. The factors may include all of the 4Ps as well as
personnel, finance, manufacturing capabilities and so on. The
external factors may include macroeconomic matters,
technological change, legislation, and socio-cultural changes,
as well as changes in the market place or competitive
position. The results are often presented in the form of a
matrix.

SWOT analysis is just one method of categorization and has its

own weakness. For example, it may tend to persuade
companies to compile lists rather than think about what is
really important in achieving objectives. It also presents the
resulting lists uncritically and without clear prioritization so
that, for example, weak opportunities may appear to balance
strong threats.

It is prudent not to eliminate too quickly any candidate SWOT

entry. The importance of individual SWOTs will be revealed by
the value of the strategies it generates. A SWOT item that
produces valuable strategies is important. A SWOT item that
generates no strategies is not important.
Dish TV – An Overview
The DTH Industry in India continued to grow from strength to
strength
with widespread awareness and product penetration aided by
the
entry of three new players. The annualized marketing spends
of
about Rs.550 crores collectively by all players of the category,
led to
swift expansion of numbers with the subscribers near
doubling, over
the previous year. The aggregate subscriber base in the
category,
touched around 11 million out of the total universe of cable
and
satellite households of 78 million. Despite an overall slowdown
in the
economy that impacted most industries, the DTH category
remained
almost unfazed with consistent growth rate being
experienced,
throughout the year.

The industry is expected to add up another ten million new

subscribers
during the current financial year due to aggressive marketing
efforts
of all players, which will be further boosted by forthcoming
sporting
events like a busy cricket calendar and the commonwealth
games.

Key challenges for the industry, in the near future will be to

seek a
moderation in the multiple taxation regime including
reduction of
License Fee & abolition of Entertainment Tax, faster roll out of
CAS
to the next layer of towns, coping with a high subscriber
acquisition
cost, building content capacity under a dearth of availability of
fresh
transponder space, dealing with emerging category
competition from
Digital Cable and IPTV etc.

Dishtv added in the last year, two million new subscribers into
its
fold, as against one million in the previous year, representing
a 100%
growth despite heightened competition from three new
players.
The key focus areas included revenue enhancement,
augmentation
of content, roll out of new services and cost containment. The
same trend of run rate of subscriber aggregation is expected
to
continue in the current financial year too, thus building the
user base
exponentially, over the year gone by.

Going forward, the emphasis for dishtv will be on building

diversified
content, preparation for the convergence of digital services,
continually
leading the curve with product innovations and services,
improvised
collection mechanisms aiding faster and higher recharges and
producing customer delight for its subscribers at all touch
points.
SWOT ANALYSIS

STRENGTH

Dishtv was the first entrant in the DTH category and has thus
become synonymous with the satellite TV broadcasting
business in
India. Leveraging its lineage with the Zee group, dishtv has
built a
commendable brand and relevant product that answers the
consumer
needs’ for quality entertainment. Some of the inherent
strengths
stem from a strong presence all across the geography of
India,
consumer friendly and pocket friendly multi-tiered and
customizable
regional packages, abundant transponder capacity to support
its
widest content basket, a very strong and diversified content
offering
addressing consumers with diverse needs of genres and
languages,

an extremely cost conscious structure and a superior

technology for
the entire gamut of services. The technological edge and
differentiation
with respect to other brands stands exemplified through its
unique
offerings of mobile dish with presence in aircrafts(Kingfisher),
navy
war ships, mobile vans and selected railway saloons.

WEAKNESS

The subscriber acquisition cost is still very high. However,

compared
to the current industry benchmarks, it stands at the lowest by
far.
The cost towards acquiring consumers is under constant
scrutiny in
an endeavor to bring it down. In a market trend of consumers
down-
sliding on the packaging tiers, due to more value being
packaged at
the lowest packs, dishtv has exhibited a growth in ARPU.
However,
ARPU continues to be an area of concern with the constant
endeavor
to monitor, upgrade and enhance the revenues.

OPPORTUNITIES

India’s 127 million television owning households, which define

the
potential depth for the DTH category will act as a low hanging
fruit
for adoption. The further roll out of CAS by the new
Government, into
more towns will impact the growth rate of the DTH category
and trigger
consumers to make a decision between digital cable and DTH,
thereby
aiding faster expansion of the digital entertainment world.
Enrichment
of Value Added Services(VAS) basket with gaming and a host
of active
services, some going pay, will continue to be opportunity
areas for
revenue enhancement. An eventful sporting calendar with the
ensuing
Commonwealth games and a series of Cricketing tournaments
will
act as a catalyst for this category too. The recent stabilization
and
a revived hope for bouncing back of the economy as early as
the
second half of this year will facilitate faster adoption of the
category.
Emergence and growth of traffic at the organized retail chains
like Big
bazaar, Next, The mobile store, Reliance digital etc. will also
add more
visibility leading to better acceptance of the product.

THREATS
DTH is currently a five player market. Price cuts and reduced
margins, spurred by severe competition, can pose a threat to
revenue
enhancement. Improved quality of services by digital cable
and IPTV
players are potential threats. Churn management and
retention costs
can negatively impact bottom-lines unless constant attention
and
strategy is deployed to manage and control the subscribers’
base.

BUSINESS STRATEGIES

Though there has been a paradigm shift in the perception and

awareness of the DTH industry in the last two years, the
challenge
is to maintain, grow and create a dynamic atmosphere for
greater
customer satisfaction and adoption of this category. The
theme for
the current year will be more value for money to the
customers,
enhanced value for the stakeholders of the Company,
achieving
EBITA breakeven and consolidating the number one status in
the
category - in terms of revenue, number of subscribers and
quality
of service.
 QUESTIONNAIRE
I Anchal Bhasin, student of MSc. Operational Research, DU is undertaking a
market survey as part of my course curriculum: " To Study Consumer
awareness & satisfaction of DishTv"
Any information shared through this survey will be kept confidential. Please
fill up the survey to help.
Thank you for your time.

Name

Gender

• Male
• Female

Age

 Below 20 years
 20-30 years
 30-40 years
 40-50 years
 Above 50 years

Occupation

Business
Service
Student
Unemployed
Other:

1) Number of members in the family ?

(V) 1-2
(VI) 3-4
(VII) 5-6
(VIII) More than 6
2) Do you have a DTH ?

Yes
No

3) If yes , which DTH are you using ?

Dish Tv
Airtel
Tata Sky
Videocon
Other:

4) Please rate the following brands of DTH on a scale of 1-5 .

( 1 being the lowest rating and 5 being the highest rating )
1 2 3 4 5
Dish Tv
Airtel
Videoco
n
Tata
Sky
Others

6) Have you ever heard of Dish Tv ?

Yes
No

7) If yes , then what is the source of information ?

Word of mouth
Television Commercials
Newspapers
Magazines
Other:

8) Are you using Dish Tv ?

( IF YOUR ANSWER IS NO , THEN SKIP TO QUESTION NUMBER 16
AFTER ANSWERING THIS QUESTION )
 Yes
No

9) If yes , then how long have you been using Dish Tv ?

Less than 6 months

6-12 months
1-2 years
More than 2 years

10) How much are you paying for the current plan ?

Less than 200

200-350
350-500
More than 500

11) Were you offered any discount on this plan ?

Yes
No

12) How do you get to know about the offers of Dish Tv ?

Voice Mail
Mails
SMS
Website
Default Channel
Call Centre
Dealer
TV Banners
13) Rate the follwoing from 1-5 , according to your preferences for
receiving information for the offers .
( 1 being least preferable and 5 being most preferable )
1 2 3 4 5
Voice Mail
Mails
SMS
Website
Default
Channel
Call Centre
Dealer
TV Banners

14) Given an option on the types of offers , give ratings on the basis of
your preference to the following .
( 1 being least preferable and 3 being most preferable )
1 2 3
Cash Back
Free A-La Cards
Extra number of days of
subscription

15) How satisfied are you by the following services of Dish Tv , rate on
a scale of 1-5 .
(1-Not imp , 2-Less imp , 3-Imp , 4-More imp , 5-Most imp )
1 2 3 4 5
Price
Connectivity
Clarity
Customer Service
Brand Image
Goodwill
Availability
Number of channels
Brand Ambassador
Offers and Discounts
Durability of the
 product
Schemes
Technology
Quality
Communication of
offers
Overall Performance

16) Please give some reason for not choosing Dish Tv ?

XXXXX----THANKYOU FOR YOUR TIME AND COOPERATION---XXXXX

 BIBLIOGRAPHY

The following books and websites were referred to in the execution of

this project

1. FUNDAMENTALS OF APPLIED STATISTICS

S.C.GUPTA & V.K.KAPOOR
Sultan Chand & Sons
2. MARKETING RESEARCH
N.K.MALHOTRA
Pearson Education,Inc.
3. STATISTICAL METHODS
S.P.GUPTA
Sultan Chand & Sons
4. INTRODUCTION TO OPERATIONAL RESEARCH
HILLER &LIEBERMAN
Tata McGraw-Hill Edition
5. MARKETING RESEARCH
David A. Aaker, V.kumar, George.S.Day
John Wiley & Sons,Inc

SITES :
www.google.com
www.vodafone.in
www.wikipedia.org
www.coai.com
www.scribd.com