Study of Consumer Buying Behavior regarding the different Brands of Mobile Handsets

Study of Consumer Buying Behavior regarding the different Brands of Mobile Handsets

(Research Project Report)

Submitted to:University of Pune

In Partial fulfillment of the requirement for the award aw ard of the Degree of Master in Marketing Management (2009-11)

Under the supervision of:Submitted by:-

Mr. Ajit Borde Singh Mr. Ullhas Pramanik Sem,

Prashant MMM 2nd Roll

No. 93302

Institute Of Business Management and Research, Pune

1

Institute of Business Management & Research, Chinchwad, PUNE

Acknowledgement In the successful completion of this project inspiration and guidance of many many peop people le was was invo involv lved ed.. A mere mere form form of ackn acknow owle ledg dgem emen entt woul would d be demea demeanin ning g the status status of this this whole whole effor effortt which which has has had the blessi blessings ngs and and supervision of the eminent person around me. First of all I would like to thank Mr. Ajit Borde & Mr. Ullhas

Pramanik who was there to guide me at every step during the course of

this project. They gave me tips for the improvement in project whenever required. Apart from this I feel indebted to all faculty members of IBMR, especi especiall ally y who have have helped helped,, develo developed ped the right right kind kind of attitu attitude de and scho schola last stic ic exce excelle llenc nce e in me. me. Last Last but but not not the the leas least; t; I am very very much much thankf thankful ul to my parent parents, s, friend friends s and all those those person persons s who made this this research project possible, for their consistent guidance and constructive criticism.

Prashant Singh


2

MMM MM M (II sem.) Roll No: 93302

Table of Contents

Chapter

Particulars

Page no.

No.

1

Introduction

2

Research Methodology

14-17

3

Data Analysis and Interpretation

15-30

4

Results and Findings

31-32

5

Conclusion and Summary Appendix Bibliography


4-13

33 34-38 39

3

List of tables S.No.

Particulars

Page

Table Table 1.1 1.1

Showin Showing g market market shar share e of majo majorr globa globall player players s of

7

mobile phones in 2009 Table Table 3.1 Showin Showing g numb number er of respo responde ndents nts owing owing a mobi mobile le

18

phone Table Table 3.2 3.2 Showin Showing g differe different nt brand brands s of mobil mobiles es phone phones s used used

19

Table Table 3.3

by the respondents Showin Showing g resp respon onden dents ts using using same same bran brand d as as they they

20

Tab Table le 3.4 3.4

had earlier Show Showin ing g reas reason ons s for for usin using g mobi mobile le pho phone ne by by the the

21


respondents Show Showin ing g the the fact factor ors s con consi side dere red d by by res respo pond nden entt

22

while purchasing a mobile hand set Table Table 3.6 3.6 Showin Showing g the sourc sources es which which influ influenc enced ed the buyi buying ng

23


decision of the respondents Show Showin ing g diff differ eren entt purp purpos oses es for for whic which h mob mobil ile e is

24


used by the respondents Show Showin ing g ran ranki king ng of vari variou ous s fea featu ture res s of mobi mobile le

25


handsets by the respondents according to their Show Showin ing g rang range e of pri price ce tha thatt resp respon onde dent nts s like like to to

26

Table 3.10

spend on mobile hand set Showing features preferred in a particular brand of mobile phone


27

4

Table

Showing agreement level of the respondents on

27

3.11 Table

various factors influencing purchase decision Showing satisfaction level of the respondents

29

3.12 Table

Showing additional features required by the

30

3.13

respondents in their mobile handsets

List of Figures S.No.

Particulars

Page No.

Figure

India’s mobile subscriber base

10

market share in percentage of the mobile phone

11

Figure

number of re respondents owing a mobile phone

18

3.1 Figure

different brands of mobiles phones used by the

19

3.2

respondents

Figure

respondents using same brand as they had

20

3.3 Figure

earlier reasons for using mobile phone by the

21

3.4 Figure

respondents factors considered by respondent while

22

3.5 Figure

purchasing a mobile hand set sources which influenced the buying decision of

23

3.6 Figure

the respondents different purposes for which mobile is used by

24

3.7 Figure

the respondents ranking of various features of mobile handsets

25

3.8 Figure

by the respondents according to their range of price that respondents like to spend on

26

3.9

mobile hand set

1.1


5

Figure3.1 0 Figure3.1

features preferred in a particular brand of mobile phone

27

agreement level of the respondents on various

27

1 Figure3.1 2 Figure3.1

factors influencing purchase decision Satisfaction level of respondents

29

additional features required by the respondents

30

3

in their mobile handsets

Chapter 1 1.1 INTRODUCTION Info nformati mation on

tech techno nolo logy gy

is

"the the

stud tudy,

desi design gn,,

devel evelo opmen pment, t,

implementation, support or management of computer-based information system systems, s, partic particula ularly rly softwa software re applic applicati ations ons and comput computer er hardwa hardware. re."" Enco Encomp mpas assi sing ng

the the

comp comput uter er

and and

info inform rmat atio ion n

syst system ems s

indu indust stri ries es,,

information technology is the capability to electronically input, process, store, store, output, output, transmit, transmit, and receive receive data and informatio information, n, including including text, graphics, sound, and video, as well as the ability to control machines of all kinds electronically. Infor Informat mation ion techno technolog logy y is compri comprised sed of comput computers ers,, netwo networks rks,, satell satellite ite communications, robotics, videotext, videotext, cable television, television, electronic electronic mail ("email mail""),

elec electr tro onic nic

game games, s,

and and

auto automa mate ted d

off office ice

equi equip pment ment..

The

info inform rmat atio ion n indu indust stry ry cons consis ists ts of all all comp comput uter er,, comm commun unic icat atio ions ns,, and and electr electroni onicscs-rel relate ated d

organ organiza izatio tions, ns, includ including ing hardwa hardware, re, softwa software, re, and

services. Completion of tasks using information technology results in rapid processing and information mobility, as well as improved reliability and integrity of processed information. It is a convenient term for including both both tele teleph phon ony y and and comp comput uter er tech techno nolo logy gy in the the same same word word.. It is the the technology that is driving what has often been called "the information revolu revolutio tion". n". Nowada Nowadays ys it has become become popul popular ar to broade broaden n the term term to


6

explictly include the field of electronic of electronic communication so that people tend to use the abbreviation ICT (Information and Communication Technology). "Elect "Electro ronic nic and infor informat mation ion techno technolog logy" y" is a term term used used in the 1998 1998 amendments to Section 508 of the Rehabilitation Act. The term is used to define the scope of products covered under Section 508. Section 508 requires that electronic and information technology that is developed, procured, maintained, or used by the federal government be accessible. Electronic and information technology includes computer hardware and software, operating systems, web-based information and applications, telephones telephones and other other telecommun telecommunicatio ications ns products, products, video equipment equipment and multimedia products, information kiosks, and office products such as photocopiers and fax machines.

1.2 History Information technology dates back to 5000BC, when people started using alphabets as a medium of communication. However, its actual emergence star starte ted d with with the the firs firstt ever ever use of the the comp comput uter er.. The The real real mode modern rn mechanical computer was conceived in 1822 by Charles Babbage. Then came the electromechanical age in 1840s with the discovery of different ways to harness electricity and the information was converted into electric impulses. This led to the beginning of telecommunication and telegraphy in late 1800s. As the loading coil and vacuum tube made possible the early telephone network, the wireless revolution began only after low cost microprocessors and digital switching became available. Since then, four generations of computers have evolved. Each generation represented a step that was characterized by hardware of decreased size and increased capabilities. The first generation used vacuum tubes, tubes, the second transistors, transistors, and and the the thir third d integrated integrated circuits circuits.. The The four fourth th (and (and current) generation uses more complex systems such as Very-large-scale integration or System-on-a-chip. System-on-a-chip.


7

Mobile rigs were the beginning of mobile phones for use in vehicles such as taxicab radios, two way radios in police cruisers, and the like. A large community of mobile radio users, known as the mobileers, mobileers, popularized the techno technolog logy y that that would would eventu eventuall ally y give give way to the mobile mobile phone. phone. The concep conceptt of using using hexago hexagonal nal cells cells for mobile mobile phone phone base base statio stations ns was inve invent nted ed in 1947 1947 by Bell Bell Labs Labs engine engineers ers at AT&T and and was was furt furthe herr developed by Bell Labs during the 1960s. One of the first truly successful public commercial mobile phone networks was the ARP network in Finland, Finland, launched in 1971.The first hand held mobi mobile le phon phone e to beco become me comm commer erci cial ally ly avai availa labl ble e was was the the Motorola DynaTAC 8000X, 8000X, which received approval in 1983. 1983. Until the late 1980s, most mobile phones were too large to be carried in a jacket pocket, so they were usually usually permanent permanently ly installed installed in vehicles vehicles as car phones. phones. With the advance of miniaturization and smaller smaller digital digital components components,, mobile mobile phones got smaller and lighter.

1.3 Current scenario Mobile phones have gained a lot of popularity and are the considered to be

great

multimedia

tools.

Mobile

phones

are

being

used

for

entertainment purposes due the introduction of new features everyday. They have become more than just call making and receiving devices. Mobile phone handsets now have more business-friendly applications that can enhanc enhance e anybod anybody’s y’s busine business. ss. With With emerg emerging ing techno technolog logy, y, mobile mobile phones have become more than communication devices; they are the tools to stay ahead of competitors and peers in the present times. Soon mobi mobile le phon phones es will will evol evolve ve from from comm commun unic icat atio ion n tool tools s to inte integr grat ated ed comm commun unic icat atio ion n devi device ces, s, medi media a term termin inal als, s, cred credit it cards cards,, and and remo remote te controls.

1.4 Global mobile handset market The phenomenal rise of the mobile phone has seen its image change from a yuppie status symbol to a daily essential. Along the way, it has created Institute Of Business Management and Research, Pune

8

thousands of jobs, changed the way we do business, and made an awful lot of money for investors. Today Key Handset technologies include GSM, CDMA, and 1xEV-DO, WiFi VoIP, TDMA, 3G, 4G and Blue Tooth. Worldwide mobile phone sales cruise to 990.8 million units in 2006, up a hefty 21.3% from 2005’s 816.6 million units. The estimated growth figures are—6.4% in 2007, 4.8% in 2008 and 2.6% in 2009. Notwithstanding the gradual decline in the growth figures, the annual handset sales are predicted to reach more than US $ 3 Billion by 2009.The total number of mobile phone subscribers in the world was estimated at 2.14 billion in 2005. Around Around 80% of world' world's s popula populatio tion n have have mobile mobile phone phone covera coverage ge as of 2006. 2006. This figure is expected to increase to 90% by the year 2010. 2010. With the period periodic ic introd introduct uction ion of new featur features es and multim multimedi edia a tools tools in the mobile handsets due to technological advances, more and more people in the Asian continent fancy buying them. There are many diversities and comp comple lexi xiti ties es in the the Asia Asian n mobi mobile le hand handse sett mar marke kett due due to type types s of cust custom omer ers, s,

gove govern rnme ment nt

regu regula lati tion ons, s,

regi region onal al/g /geo eogr grap aphi hica call

wire wirele less ss

infras infrastru tructu cture, re, and the purcha purchasin sing g power power.. Basica Basically lly,, the Asian Asian market market looks at the mobile handsets as status symbols. The market is seen best for the low-end phones, but there is a huge rise in the demand for flashier and costlier phones. India, China, Korea, and Malaysia are fast evolving as the biggest markets for mobile handsets and in coming years they will mainly carry on the global handset sales.

1.5 Major Global Players Table Table 1.1: 1.1: showi showing ng marke markett share share of major major global global player players s of mo mobil bile e phones in 2009 Company

2009 Market Share (%)

Nokia

38

Samsung

20

LG

10


9

Sony Ericcson

5

Motorola

5

ZTE

4.5

Kyocera

4

Others

13.5

Total

100.0

Nokia Corporat Corporation ion is curren currently tly the world' world's s larges largestt manufa manufactu cturer rer of

mobile telephones. telephones. It produces mobile phones for every major market and protocol, including GSM, GSM, CDMA, CDMA, and W-CDMA (UMTS).The corporation also produces telecommunications network equipment for applications such as mobile and fixed-line voice telephony, telephony, ISDN, broadband access, voice over IP, IP, and wireless LAN. LAN. Nokia's Mobile Phones division provides the general public with mobile voic voice e and and data data prod produc ucts ts acro across ss a wide wide rang range e of mobi mobile le devi device ces. s. The The division aims to target primarily high-volume category sales of mobile phones and devices, with consumers being the most important customer segment. Nokia believes that design, brand, ease of use and price are mainstream mobile phones' most important considerations to customers. Nokia's product portfolio includes camera phones with features such as megapixel cameras which appeal to the mass market. Motorola is an Americ American an multinational communications company based

in Schaumbur Schaumburg, g, Illinois Illinois,, a Chicago suburb.Mos suburb .Mostt of Motorola' Motorola's s products products have have been been radio-re radio-relat lated, ed, starti starting ng with with a battery battery eliminator eliminator for radios, radios, through the first walkie-talkie in the world, world, defense electronics, cellular infrastructure equipment, and mobile phone manufacturing. Motorola has recently been regaining market share in the cellular-phone business from Nokia, Nokia, Samsung, Samsung, and others due to stylish new cellular phone designs. Samsung Samsung Electronic Electronics s is one one of the the worl world' d's s larg larges estt IT comp compan anie ies s by

revenue. revenue. The company also claims to be have the highest brand value among consumer electronics companies. Headquartered in Seoul, Seoul, South


10

Korea, Korea, it is part of the Korean Samsung Group, Group , operating in approximately over 100 countries.It is the number 1 mobile phone manufacturer in Asia. Asia . Sony Ericsson is a joint venture established in 2001 by the Japanese

consumer consumer electronics electronics company Sony Sony Corpo Corporat ration ion and and the the Swedish telecommuni telecommunicatio cations ns company company Ericsson to make make mobile mobile phones phones.. Both oth companies have stopped making their own mobile phones. The reason for this this merger merger is to combin combine e Sony's Sony's consum consumer er electr electroni onics cs expert expertise ise with with Ericss Ericsson' on's s techno technolog logica icall leader leadershi ship p in the commun communica icatio tions ns sector sector.. The The company's global management is based in Hammersmith, Hammersmith, London. London . It also has research & development teams in Sweden, Sweden, Japan, Japan, China, China, Canada, Canada, the Netherlands, Netherlands, the United States, States,India and the United Kingdom. Kingdom. LG Electronics is one of the world's leading electronics companies. It is

part of the Korean LG Group, Group , operating in approximately 80 countries. Its mobil phones division provides CDMA, GSM, 3G Handsets. ZTE

Zhong g (Zhon

Xing Xing

Tele Teleco commu mmuni nica cati tion on

Equi Equipm pmen entt

Comp Compan any y

Limited) i s a publicly-owned, publicly-owned, Chinese corpor corporati ation on that that design designs s and

manufactures telecommunications equi equipm pmen entt and and syst system ems. s. Base Based d in Shenzhen, Shenzhen, and and established in 1985 ZTE offers a wide variety ety of telecommunication products that provide services, including value-added services such as video on demand and streaming media to its customers, which are primarily telecommunications service providers, providers , mobile network operators, operators, etc Kyocer Kyocera a Commun Communica icatio tions ns Inc.( Inc.(KCI) is a manuf anufac actturer urer of mobile

telephones for CDMA netw networ orks ks and and is a whol wholly ly owne owned d subs subsid idia iary ry of Kyocera Corporation that was formed in February 2000 when Kyocera acquired QUALCOMM's QUALCOMM's San San Diego, Diego, Califo Californi rnia a-based -based terrestri terrestrial al handset handset division. It produces mobile phones, cellular routers, routers, and Mobile PC Cards for markets in North America, South America, Australia, Australia, and New Zealand. Zealand.

1.6 Mobile Handset Market in India The The cell cell phon phones es indu indust stry ry has has show shown n a rema remark rkab able le grow growth th in the the last last decade. In 1989 the number of its subscribers was zero in India. India’s Institute Of Business Management and Research, Pune

11

love love affa affair ir with with cell cell phon phones es star starte ted d in the the midmid-19 1990 90s, s, as the the mobi mobile le revolution took hold and India had just 10 million mobile and landline conn connect ectio ions ns.. Delh Delhii was was the the firs firstt stat state e to laun launch ch cell cell phon phones es in Indi India. a. Growth then soared in the last four years due to regulatory change and falling costs of calls and handsets. India’s wireless market is a test bed for alternative infrastructure, handsets, billing systems, business models and marketing strategies that will likely prove applicable to other developing countries. On a numerical basis, India is the biggest growth market adding about 6 million cell phones every month. CAGR for mobile phones is 86% in India. It is one of the fastest growing mobile markets in the world; in April 2006 mobile subscriber base base cross crossed ed 100 100 millio million n mark. mark. This This has been been accom accomplis plished hed by rethin rethinkin king g handsets, network infrastructure, infrastructure, enhanced services and content. More than twothird of mobile subscriptions are with GSM operators and rest with CDMA. India has one of the lowest mobile phone tariffs in the world resulting in low Average Revenue per User (ARPU) of 9.04 USD per year (CDMA 5.74 USD and GSM 8.89 USD). Indian Indian land area covered covered by mobile mobile network networks s is approx approx 30%. CAGR of Mobile Mark Ma rket et Valu Value e for for 2004 2004-- 2009 2009 is 36.9 36.9%. %.Wi With th 156. 156.31 31 mill millio ion n cell cell phon phones es;; teledensity in the country is still low at 17.45%. Fewer than eight in every 100 Indian Indians s use mobiles mobiles,, compa compared red with with China China's 's 30 per cent. In India, India, about about 13 percent of people have cell phones which has increased from 8% in 2005 and is expected expected to reach reach 40 percent within within a few years. years. A lack of investment investment in the infra infrastr struct ucture ure neede needed d to suppo support rt landlin landline e servic services es means means there there are are only only 50 million fixed-line users in the country, leaving the stage set for mobile operators. India is expected to have the third largest mobile user base, behind China and the US, by the year end and will become the second largest market of mobile handsets by 2010. Indian cellular market would account for 11% of the overall Asia Pacific and Japan market by 2009 and is expected to reach 500 million subscribers subscrib ers by end of 2010 with CAGR of 33.7% 33.7% for 2004- 2010.

Fig. 1.1 India’s mobile subscriber base


12

1.7 Major players in India The The majo majorr play player ers s in the the hand handse sets ts segm segmen entt in Indi India a incl includ ude e No Noki kia, a, Motorola, Motorola, Sony Ericsson, Ericsson, Samsung, LG, Philips, Philips, Panasonic Panasonic,, Bird, Bird, Sagem and BenQ. Nokia has retained the top slot in Indian market with 70 % share, while US giant Motorola has 15 % share and Sony Ericsson has gained around 8% share this year. Samsung has 5% share and LG has 1.8% share. Fig. 1.2 market share in percentage of the mobile phone players in India market share %

8

5

1.8

0.02

15

70

nokia kia

motor torola

son sony erics ricsso son

sam samsung

LG

othe thers


13

1.8 Consumer Buying Behavior Everybody in the world is the consumer. Each of us buys and sells or cons consum umes es good goods s and and serv servic ices es in the the life life.. Co Cons nsum umer er beha behavi vior or is very very complex and is determined to a large extent by social and psychological factors. Consumer behavior can be defined as those acts of individuals directly involved in obtaining, using and disposing of economic goods and services. The The releva relevance nce and impor importan tance ce of unders understan tandin ding g consum consumer er behavi behavior or is rooted in the modern marketing. The needs of not even two consumers are the same. Therefore, they buy only those products and services, which satisfy their wants and desires. To survive in the market, a firm has to be consta constantl ntly y innova innovatin ting g and unders understan tand d the latest latest consum consumer er needs needs and tastes it will be extremely useful in exploiting marketing opportunities and in meet meetin ing g the the chal challe leng nges es that that the the Indi Indian an mark market et offe offers rs.. A stud study y of consumer behavior is significant for regulating consumption of goods and thereby maintaining economic stability. Within the broad framework of marketing, the area that entices the most researchers is the study why a consumer behaves in a particular way. The complexity of the behavior, however, varies with the nature of the product and the need, which it is required to satisfy. The study of consumer behavior is the study of how indi indivi vidu dual als s make make deci decisi sion ons s to spen spend d thei theirr avai availa labl ble e reso resour urce ces s on consumption of related items. Consumer behavior is an applied discipline. Its application exists at two different levels of analysis. One is at the micro level perspective and other at the the macr macro o leve levell pers perspe pect ctiv ive. e. Micr Micro o level level seek seeks s appl applic icat atio ion n of the the knowledge faced by the individual, firm or an organization. The macro perspective applied knowledge of consumer includes the aggregate level of problem faced by large groups or by society as a whole. Consumer

behavi avior

provides

a

sound

basis

for

ident entifying

and

understanding consumer needs. It is the act of the individuals directly involved in obtaining and using economic goods and services.


14

The study of consumer behavior is an essential component of marketing. The adoption of marketing concept by the marketers provides the impetus for the study of consumer behavior. In case case of Ne New w Prod Produc uctt Intr Introd oduc uctio tion n in the the mark market et,, ther there e is a risk risk of produc productt failur failure. e. To increa increase se the chance chances s of succes success s of new produ products cts,, better information of the consumer behavior is required. Their desires, tastes and preferences are to be taken care of. So from all these aspects the study of consumer behavior is important.

1.9 About the Project The importance of cell phones goes way beyond the ability to make or receive phone calls. Today's technically advanced cell phones can perform as many or even more tasks than a home computer. They are capable of internet internet access, sending and receiving receiving photos and files, storing storing data, to name just a few of the available options. So a question arises as to why different people choose different brands and what are the features they look for while purchasing a mobile handset. Hence a study was undertaken in IBMR College among the mobile phone user students. It provides a scope to understand the consumers buying beha behavi vior or (esp (espec ecia iall lly y

stud studen ents ts))

towa toward rds s

the the

mobi mobile le

hand handse sets ts..

The The

increasing importance of cell phones has made them almost a necessity for for most most peop people le.. Mobi Mobile le pene penetr trat atio ion n is on rise rise.. It has has even even excee exceede ded d landline connections. Since various brands of mobile phones are in the market for quite a long time, their performance provides sufficient data for study. The results of the study would give the mobile manufacturing companies an insight about the preferences of the consumers and also their expectations from the mobile phones. This would help the companies to understand the potential of the market and target the right consumers.

1.10 Objectives of the study are: 1. To examine examine the factor factors s those those influenc influence e the custome customerr choice choice while while purchasing a mobile hand set.


15

2. To know which which featur features es in a particul particular ar brand brand are preferr preferred ed by the mobile phone users. 3. To find out what what additional additional features features are demanded demanded by consumer consumers. s. 4. To study study the satisf satisfactio action n level of mobil mobile e phone users. users.

Chapter 2 RESEARCH METHODOLOGY

This chapter describes the research methodology adopted to achieve the obje object ctiv ives es of the the stud study. y. It incl includ udes es the the scop scope e of the the stud study, y, rese resear arch ch design, collection of data, analysis of data and limitations of the study.

2.1 Scope of the study The scope of the study is to get the first hand knowledge about the buyi buying ng beha behavi vior or of cons consum umer ers s towa toward rds s diff differ eren entt bran brands ds of mobi mobile le handsets in IBMR students. The scope is restricted to study the factors affecting the preference of consumers while choosing a mobile handset in IBMR IBMR coll colleg ege e stud studen ents ts.. This This is done done to avoi avoid d perc percep eptu tual al bias bias and and for for providing objectivity to the study.

2.2 Research Design The research design constitutes the blueprint for the collection, measurement and analysis of data. It is the strategy for a study and the plan by which the strategy is to be carried out.


16

The research design of the project is descriptive as it describes data and charac character terist istics ics associ associate ated d with with the popul populati ation on using using mobile mobile phones phones.. Descriptive research is used to obtain information concerning the current stat status us of the the phen phenom omen ena a to desc descri ribe be "wha "whatt exis exists ts"" with with resp respec ectt to variables in a given situation.

2.3 Data Collection 2.3.1 Primary Data

Primary data is that data which is collected for the first time. It is orig origin inal al in natu nature re in the the shap shape e of raw mater materia ial. l.

Forr the Fo the purp purpos ose e of

collection of primary data, a well structured questionnaire was framed which was filled by the respondents. The questionnaire comprises of close ende ended d as well well as open open ende ended d ques questi tion ons. s. In clos close e ende ended d ques questi tion ons s dichotomous, ranking, checklist questions and multiple choice questions are used. 2.3.2 Secondary Data

Secondary data is the data which is already collected by someone. They are secondary in nature and are in shape of finished product. Secondary data was collected so as to have accurate results. Required data was collected from various books, magazines, journals and internet.

2.4 Sampling Design Sampling refers to selecting some of the elements in a population by which one can draw conclusions about the entire population. 2.4.1 Universe

Univ Univer erse se is the the infi infini nite te numb number er of elem elemen ents ts whic which h the the rese resear arch cher er is targeting in his study. Since the study is restricted to IBMR students only the universe for the study consists of all the mobile phone owners in IBMR. Institute Of Business Management and Research, Pune

17

2.4.2 Population

Population is finite number of elements which the researcher is going to target target in partic particula ularr area. area. All the mobile mobile phone phone user user studen students ts in IBMR IBMR college form the population for the study.

2.4.3 Sampling Unit

Sampling Unit is the single unit of the population. A single individual who owns a mobile phone form the sampling unit of the study. 2.4.4 Extent

Extent refers to the geographical area where there is a scope of population. The extent of the study is IBMR, Pune. 2.4.5 Sampling Technique

The selection of the respondents was done on the basis of convenience technique based on the non probability method of sampling. 2.4.6 Sample size

Sample size is the size of sample drawn from the population which is the true

representative of the research.

The number of respondents included in the study was 50 for convenience in evaluating and analyzing the data and because of time constraint.

2.5 Data D ata Analysi A nalysis s and an d Interpretati Int erpretation on For the purpose of analyzing, raw data was summarized in a master table and from this table the results have been carried out. The questions having multiple/ alternative choices were analyzed by taking percentages. In the case of questions on likert scale, the mean scores were calculated. In case of ranking questions the total score has been added and final ranking is given by calculating mean. In case of checklist questions the the aver averag age e of tota totall no. no. of respo espons nses es was calcu alcula late ted. d. In case case of explanatory questions, the general suggestions were summarized.


18

Limitations of the study Sincere efforts have been made to collect authentic and reliable information from respondents, however the report is subject to following limitations: i. Some responde respondents nts were were reluct reluctant ant to give the the informat information, ion, so so their their responses may be biased. ii. Time could could be a major major limitati limitation on as it may may have affecte affected d the inferences drawn in the study. Only 50 respondents have been contacted due to time constraint. iii. Sample may not be the the true representative representative of of the universe. universe. iv. Study was conducted conducted in IBMR, Pune Pune only. So the results of the the study may not be applicable in other areas.


19

Chapter 3 ANALYSIS AND INTERPRETATION INTERPRETATION This chapter analyse the behavior and preferences of the consumers for various brands of mobile hand set based on various factors which influence their buying decision. This chapter therefore deals with analysis and discussions of the project.

Results of the study Table3.1: Showing number of respondents owing a mobile phone

No. Of Respondents

%

Yes

50

100

No

0

0

Total

50

100

Fig.3.1

Table3 Table3.2: .2: Show Showing ing differ different ent brands brands of mo mobil biles es phone phones s used used by the respondents

Brands

No. of respondents

%

Nokia

31

62

Sony Ericsson

3

6

Motorola

6

12

Samsung

4

8

LG

2

4


20

Others

4

8

Total

50

100

Fig.3.2

Interpretation:

From From the the abov above e tabl table e and and figu figure re,, we can can conc conclu lude de that that out out of 50 respondents 62% have Nokia hand set,6% have Sony Ericsson , 12% use Motorola ,8% have Samsung, 4% have LG. Apart from these brands 8% of respondents have other brands like Spice, Micromax, Panasonic etc. It’s evid eviden entt from from the the figu figure res s that that No Noki kia a is most most pref prefer erre red d bran brand d of the the students in IBMR College.

Table3.3: Showing respondents using same brand as they had earlier

RESPONSES

NO. OF RESPONDENTS

PERCENTAGE

Yes

32

64

No

18

36

Total

50

100

Table3.3


21

70 60 50 e g a t n e c r e p

40 30 20 10 0 yes

responses

no

Interpretation:

From the above, it is interpreted that 64% of the respondents had same brand of mobile hand set earlier while 36% had different brands. Some switched over due to new features available in other brands and others due to inefficiency in earlier brand. But above figures conclude that most of the respondents are brand loyal.

Table3.4: Showing reasons for using mobile phone by the respondents

Reasons

No. of Respondents

%

Communication

19

38

Status

18

36

Don’t have landline

3

6

Others

10

20

Total

50

100

Fig.3.4


22

Interpretation:

Above table and figure depict that 38% of respondents use mobile for communication, 36% use it as a status symbol, 6% use mobile because they don’t have landline connections and 20% of respondents have other reasons like necessity, games, music etc.

Table 3.5: Showing the factors considered by respondent while purchasing a mobile handset Factors

No. of responses

Average

Price

23

0.19

Appearance

24

0.20

Brand

24

0.20

Features

32

0.26

Easy to carry/Weight

18

0.15

Total

121

1

Fig.3.5

0.15

Price

0.19

Appearance Brand 0.26

0.2 0.2

Features Easy to carry/Weigh


23

Interpretation:

From above it can be concluded that features in a mobile hand set is the most most import important ant factor factor which which is consid considere ered d by the respon responden dents ts while while purchasing the mobile phone. Brand and Appearance are the other very impo import rtan antt fact factor or infl influe uenc ncin ing g the the purc purcha hase se deci decisi sion on.. Pric Price e is also also an impo import rtan antt fact factor or.. Easy Easy to carr carry y is the the leas leastt impo import rtan antt fact factor or that that is considered in the purchase decision. It’s clear that students at IBMR give maximu maximum m import importanc ance e to featur features, es, appear appearanc ance e and brand brand of a mobile mobile phone.

Table3.6: Showing the sources which influenced the buying decision of the respondents Sources

No. of respondents

%

Friend

18

36

Family member

9

18

Advertisement

15

30

Dealer

8

16

Total

50

100

Fig.3.6

Interpretation:

From the above table it is concluded that out of 50 respondents, 36% and 18% respondents purchased the mobile hand set under the influence of their friends and family member, 30% respondents under the influence of


24

vari variou ous s adve advert rtis isem emen ents ts,, 16% 16% resp respon onde dent nts s boug bought ht the the car car on the the suggestion of dealer.

Table3.7: Showing different purposes for which mobile is used by the respondents

Diff. Purposes

No. of Respondents

Average

Receiving/making calls

50

0.34

SMS/MMS

35

0.23

Games

13

0.08

12

0.04

Music

25

0.17

Camera

20

0.14

Total

155

1

E-mail/Internet

Fig.3.7


25

0.4 0.4 0.35

0.34

0.3 0.3 0.25 g a r e v a

0.23

0.2 0.2

0.17 0.14

0.15 0.1 0.1

0.08 0.04

0.05 0

c a M g / M n i S a k S M m / g i n i v c e R

e r n e s e t a m l / I n G i a m E -

i c u s M

a e r m C a

Interpretation:

From the above figures it can be concluded that in spite of using mobile phone for calls and SMS which are its basic purposes, Students of IBMR are using them increasingly for Music and Camera. Using Internet on mobile phones is still not common. Table 3.8: Showing ranking of various features of mobile handsets by Features

Mean scores

Bluetooth

3.29

5th

MP3 Player

3.16

2th

Camera

3.23

3rd

Data Storage Capacity

3.13

1st

GPRS

4.87

6th

Personal Info. Management

Rank

4nd

3.32

the respondents according to their preferences


26

Fig.3.8

Interpretation:

Since 1 is given to the most preferred feature and 6 to the least preferred feature in a mobile hand set, therefore from the table, we can conclude that data storage capacity is the most preferred feature in a mobile hand set. 2nd and 3rd ranks are given to MP3 player and camera in the mobile phon phone e resp respect ectiv ivel ely. y. Afte Afterr them them the the feat featur ures es of pers person onal al info inform rmat atio ion n mana manage geme ment nt and and Blue Blueto toot oth h are are give given n pref prefer eren ence ce.. GPRS GPRS is the the leas leastt preferred feature in the mobile phones. Therefore it’s clear from above that students of IBMR give more preference to the feature of data storage and MP3 player.

Table 3.9: Showing range of price that respondents like to spend on mobile hand set

Range

No. of respondents

%

Below 5000

16

32

5000-10000

20

40

10000-15000

11

22

Above 15000

3

6

Total

50

100

Fig. 3.9


27

Interpretation: Camera

Bluetooth

Music Player

Memory

No. of respondents Nokia

34

31

15

37

Motorola

9

13

8

5

Sony Ericsson

7

5

27

8

Samsung

0

0

0

0

Total

50

50

50

50

From above it is interpreted that 39% of respondents prefer to spend between the ranges of Rs. 5000-10000, 22% between Rs. 10000-15000, 7% above Rs. 15000and 32% below Rs. 5000. It concludes that mobile phone users here are price sensitive. Mobile phones are no longer a status symbol instead they have become a necessity. Table 3.10: showing features preferred in a particular brand of mobile phone

Fig. 3.10

Interpretation:

From above table and figure it is concluded that students of IBMR prefer Camera, Bluetooth and Memory features of Nokia and music player of Institute Of Business Management and Research, Pune

28

Sony Ericsson. Features of Motorola and Samsung are also liked by some respondents but features of LG are not at all preferred by them.

Table 3.11: Showing agreement level of the respondents on various factors influencing purchase decision Strongl

Disagr

Neutr

y

ee

al

Agree

Disagre Factors

e

Strong

Mean

ly

Score

Agree

-2

1 -1

0

2

Repairable

-2(2)

-1(1)

0(6)

1(21)

2(20)

56/50=1.12

Availability of

-2(2)

-1(3)

0(10)

1(20)

2(15)

44/50=0.88

-2(1)

-1(2)

0(21)

1(19)

2(7)

31/50=0.62

-2(1)

-1(7)

0(16)

1(18)

2(8)

24/50=0.48

spare parts Proximity to service provider Promotional activities

Fig. 3.11

Interpretation:

From the above table we can conclude that respondents strongly agree with the repairable repairable factor factor of a mobile mobile phone, phone, the mean score being 1.12. Resp Re spon onde dent nts s are are also also to a larg large e exte extent nt agre agreei eing ng with with the the fact factor or of availability of spare parts and proximity of service provider but as far as promotional activities are concerned they are neutral towards this factor. Table 3.12: Showing satisfaction level of the respondents No. of Respondents


%

29

Yes

46

92

No

4

8

Total

50

100

Fig. 3.12

Interpretation:

From the above table, we can conclude that out of 50 respondents, 92% respondents are satisfied with the performance of their mobile hand set whereas 8% are not completely satisfied. The main problem faced by them is the battery battery life of their their hand sets. sets. In general, general, students students of IBMR IBMR are satisfied with their brand of mobile phone.

Table 3.13: Showing additional features required by the respondents in their mobile handsets

Features

No. of responses

Average

Wi-Fi

19

0.26

TV

17

0.23

Video Conferencing

18

0.25

Windows

19

0.26

Total

73

1

Fig. 3.13


30

Interpretation:

From above table and figure it is concluded that features of Wi-Fi and Wind Window ows s are are more more in dema demand nd.. TV and and Vide Video o Co Conf nfer eren enci cing ng too too are are considered almost equally important .

Chapter 4 FINDINGS OF THE STUDY

1. Nokia is the the most popular popular and and widely used used brand brand by students students of IBMR. IBMR. 2. Brands Brands like Motorola Motorola and Sony Sony Ericsson Ericsson are also gaining gaining ground ground with regard to popularity but not like Nokia. 3. 64% of the responde respondents nts used same same brand earlier. earlier. It shows shows that most most of the mobile users of IBMR are brand loyal. 4. But on the other other side side 36% of response response depicts depicts the the fact that people people constantly switch from one brand to another on the dearth of new features and advance technology. 5. Mobile Mobile phone is no more more a status status symbol symbol now for the the students students of IBMR. IBMR. It has increasingly become a necessity to reduce communication gap and to maintain mobility. 6. It is clear from from the above above that that students students of IBMR give give due importa importance nce to factors like features, appearance and brand of mobile phones while making purchase decision. 7. Price comes comes after the the satisfaction satisfaction of above above factors factors and easy to carry carry facility is least considered during purchase decision. 8. It’s clear clear that people people in students students of IBMR purchase purchase a particular particular brand brand of mobile handsets on the basis of the positive report about their Institute Of Business Management and Research, Pune

31

performance received from their friends and family members who already own that brand. 9. Advertisem Advertisements ents also also play an important important role role in influencing influencing the buying buying decision. 10.Besides receiving and makings calls and SMS students of IBMR are also using mobile for listening music and camera. 11.Use of mobile for games has significantly reduced. And still people are not accustomed with the use of internet on their mobile phones. 12.As far features of mobile phones are concerned it’s clear from above that students of IBMR give more preference to the features of data storage, MP3 and Camera. GPRS is the least preferred feature in the mobile phones. 13.Students of IBMR prefer to spend between Rs. 5000 and Rs. 10000 on a mobile phone. It again depicts that mobile phones are no longer a status symbol now and has become necessity. 14.Students of IBMR agree that factors like reparability and availability of

spare parts are important to consider while making buying decision for a bran brand d of mobi mobile le phon phone. e. But But as far far as prom promot otio iona nall acti activi viti ties es are are concerned they are neutral towards this factor. 15.Most of the population is satisfied with their existing brands. The main problem faced otherwise is related to the battery life of a mobile hand set. 16.Students of IBMR require additional features of Wi-Fi, Windows, TV and Video Conferencing in their mobile phones. It depicts that people here are techno savvy and want to use innovative features.


32

Chapter 5 CONCLUSION AND SUMMARY The Mobile phone represents the convergence instrument of the future. It have have become become a necess necessity ity for many many people people throug throughou houtt the world. world. The ability to keep in touch with family, business associates, and storing data are only a few of the reasons for the increasing importance of mobile phones. Cell phone manufacturers have produced a wide range of cell phon phones es,, whic which h sell sell for for pric prices es that that rang range e from from very very inex inexpe pens nsiv ive e to thousands of rupees. The above findings and results reflected the preferences, expectations and satisfaction level of mobile phones users in IBMR Collage, Pune. The stud study y woul would d help help the the comp compan anie ies s in unde unders rsta tand ndin ing g the the fact factor ors s that that influence influence the purchase decision of the consumers and their expectations expectations from the mobile handsets. The results of the study indicate that mobile phones are no longer the status symbol for the students of IBMR. Brand and features in a handset are preferred over their prices. People here are techno savvy and require new innovative features in mobile phones every new day. Since the study was restricted to the IBMR Collage only so the there is need to study more in other places of city to get the clear view of the findings.


33

APPENDIX

QUESTIONNAIRE

Personal Details: Name:

_________________

Age:

_________________Gender: _________________Gender:

Addr Addres ess: s:

_________________

____ ______ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ __ __________________________________

Contact Contact No. __________ ______________ _________ ______ _ ‘’’’’’’’’’’’’’’’’’’’’’’’ ‘’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’ ’’’’’’’’’’’’’’’’’’’’’’’’’ ’’’’’’’’’’’’’’’’’’’’’’’’’ ’’’’’’’’’’’’’’’’’’’’’’’’ ’’’’’’’’’’’’’’’’’’’’’’’’’ ’’’’’’’’’’’’’’’’’’’’’’’’’ ’’’’’’’’’’’’’’’’’’’’’’’’ ’’’’’’’’’’’’’’’’’’’’’’’’’ ’’’’’’’’’’’’’’’’’’ ’’’’’ ’’’’’’’’’’’’’’’’’’’’’’’’ ’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’ ’’’’’’’’’’’’’’’’’’’’’’’’’ ’’’’’’’’’’’’’’’’’’’’’’’’’ ’’’’’’’’’’’’’’’ ’’’

Q1) Do you have a mobile phone?

YES

NO


34

Q2) a) Which brand of mobile hand set do you have? (Please Tick)

i. Nokia ii. Sony Sony Ericss Ericsson on iii. Motorola Motorola iv. Samsung Samsung v. Any other (please (please specify) specify)

_______ ______ _______ _ _______ _______ _______ _______ _______ _______

b) Which model ____________ ____________

If it is your first mobile phone then skip Q3

Q3a) Did you have the same brand earlier?

YES

NO

b) If NO then which brand you had earlier (please specify) ______________

c) Why have you switched from earlier brand to latest one?

i. Adva Advanc nced ed tech techno nolo logy gy ii. ii. Ne New w feat featur ures es iii. Inefficiency in earlier mobile iv. Any other( other( please specify) specify)

____ ______ ___ _ ____ ______ ___ _ _______ _______ _______

Q4) Why have you bought the mobile? (Tick one option)

i. Co Comm mmun unic icat atio ion n purp purpos ose e ii. ii. Stat Status us iii. Don’t Don’t have landline landline phone phone iv. Any other (please (please specify) specify)

____ ______ ____ __ ____ ______ ____ __ ________ ________ ________ ________


35

Q5) Which Which of the follow following ing factor factors s you consid considere ered d while while choosi choosing ng the mobile hand set? (can tick more than one option) i. Price ii. ii. Appe Appear aran ance ce iii. iii. Brand Brand iv. Features Features v. Easy Easy to carry/ carry/Wei Weight ght

__ _ _______ _____ _______ ___ _ ________ _____ ___ ________ ________ ______ ________ __

Q6) Who influenced you to buy this brand? (Tick one option)

i. Friend ii. ii. Fa Fami mily ly memb member er iii. Advertisem Advertisement ent iv. Dealer Dealer v. Any other (please (please specify) specify)

__ _ ______ ____ ______ ___ _ _______ _______ _______ ____ ___ _______ _______

Q7) For which different purposes do you use your mobile? (can tick more than one option)

i. Re Rece ceiv ivin ing g / maki making ng call calls s ii. ii. SMS/ SMS/ MM MMS S iii. iii. Games Games iv. E-Mail/ E-Mail/ Internet Internet v. Musi Music c vi. Camera Camera

____ ______ ____ __ ____ ______ ____ __ ________ ______ __ ________ ________ _______ _____ ___ _ ________ ________

Q8) Rank the following features of your hand set according to your preference (rank 1 to most preferred and rank 6 to least preferred)


36

Bluetooth _________ MP3 Player/ Video Player _______ Camera _________ Data Storage Capacity _________ GPRS _________ vi. Personal information management _________ (Notes, to-do list,contacts,etc.)

i. ii. iii. iv. v.

Q9) Tick the range of price you would like to spend on a mobile handset? Nokia

Motorola

Sony Ericsson

Samsung

Camera

Bluetooth Music Player Memory

i. Belo Below w 5000 5000 ii. ii. 5000 5000-- 1500 15000 0 iii. 1500015000- 25000 iv. Above 25000

____ ______ ____ __ ____ ______ ____ __ ________ ________ ________ ________

Q10) Tick the following features you like in particular brand:


37

Q 11) Do you agree a gree that following factors must be considered while choosing a brand of mobile hand set?

Strongl y Disagre e

Disagre e

Neutral

Agree

Strongl y Agree

Repairable Availability of spare Proximity to service Promotional activities

Q 13) a) Are you satisfied with your existing mobile hand set?

YES

NO

b) If no, then what are the problems faced by you? _______________________________________________________________


38

_______________________________________________________________

Q 14) what additional features do you want in your mobile handset? (Can tick more than one option)

i. Wi-Fi -Fi ii. ii. TV iii. Video Conferenc Conferencing ing iv. Windows Windows

__ _ _______ _______ ___ _____ _ ________ ________ ________ ________

BIBLIOGRAPHY

http://en.wikipedia.org/wiki/Mobile_phones http://communities-dominate.blogs.com/brands http://communities-do minate.blogs.com/brands/2010/02/phone-market/2010/02/phone-marketshares-for-year-of-2009-and-last-quarter-2009.html http://www.wirelessdesignasia.com/article8488globalmobilehandsetshipmentgrew17yoy-Asia.html http://www.forbes.com/feeds/businessw http://www.forbes.com/feeds/businesswire/2009/04/24/businessw ire/2009/04/24/businesswire12373 ire12373 5951.html


39

“T3-tomororw technology today”, Vol.1, Issue 2, Jan. 2007 http://digital-lifestyles.info/2007/03/05/worldwide-mobile-phone-salesgrow-21-in-2006/ http://www.gartner.com/it/page.jsp?id=501734 http://www.rncos.com/Report/COM02.htm http://economictimes.indiatimes.com/News/News-ByIndustry/Telecom/Mobile-handset-sales-pick-up-afterdrought/rssarticleshow/4180130.cmshttp://www.dailyindia.com/show/121503.php/In http://www.dailyindia.com/show/121503.php/India-to-be-second-largestdia-to-be-second-largestmobile-market-by-2010:-Nokia http://www.zinnov.com/presentation/Mobile_VAS.pdf


40

Study of Consumer Buying Behavior regarding the different Brands of Mobile Handsets

Recommend Documents