ON
Mobile Phones
SUBMITTED BY:-
SUMEDHA .K. NARVEKAR
351
BACHELOR OF BUSINESS ADMINISTRATION
UNDER THE GUIDANCE OF:-
FACULTY GUIDE:- MS. VANESSA FURTADO FACULTY, RESEARCH PROJECT REPORT IN PARTIAL FULFILLMENT OF THE AWARD OF FULL TIME BACHELOR IN BUSINESS ADMINISTRATION (2009-2012)
ST. XAVIER’S COLLEGE, MAPUSA-GOA
STUDENTS DECLARATION
Certified that this report is based on the Research Project undertaken by Sumedha .K. Narvekar for the year 2011-12, under the able guidance of Ms.Vanessa Zita Furtado in partial fulfilment of the requirement for award of degree of Bachelor of Business Administration from St. Xavier’s College, Mapusa-Goa.
Date:
Signature
Sumedha .K. Narvekar
Student
CERTIFICATE BY FACULTY GUIDE
Forwarded here with a Research based Project on “Consumer Behaviour and its Buying Processes on Mobile Phones” submitted by Sumedha .K. Narvekar, Enrollment No. 351, student of BBA 12th semester (2009-2012).
This project work is a partial fulfilment of the requirements for the degree of Bachelor in Business Administration from St. Xavier’s College, Mapusa-Goa.
Ms. Vanessa Zita Furtado,
St. Xavier’s College,
Goa.
ACKNOWLEDGEMENT
I have taken a lot of efforts in completing this project report. However, it would not have been possible without the kind of support of many individuals and organisations.
I am highly indebted to Ms. Vanessa Zita Furtado for her guidance and constant supervision as well as providing necessary information regarding the project and also for her support in completing the project.
I would like to express my gratitude towards my parents for constantly encouraging and helping me in completing the project.
My thanks and appreciation also to my colleagues in developing the project and people who willingly helped me out with their abilities.
TABLE OF CONTENTS
S.No
Heads
No. of Pages
1.
Executive summary
Pg 8
2.
Chapter 1:
History and Background of cell phones
History
Evolution
Pg 9
3.
Chapter 2:
Introduction to the Mobile Market in India
A brief insight
SWOT analysis
Pg.11
4.
Chapter 3:
Competitor analysis
Competitors
Market share
Tagline and Brand Ambassadors
Pg.14
5.
Chapter 4:
Objective
Primary objective
Secondary objective
Methodology
Primary and Secondary data
Research design
Sampling design
Data Analysis
Pg.17
6.
Chapter 5:
Conceptual Framework
Literature review
Problem Statement
Pg.20
7.
Chapter 6:
Presentation of Data
Data collection
Data Analysis
Pg.24
8.
Chapter 7:
Data Findings
Pg.36
9.
Chapter 8:
Conclusion and Suggestions
Pg.37
10.
Annexure
Questionnaire
Pg.38
11.
Bibliography
Pg.41
EXECUTIVE SUMMARY
Consumer behaviour is the act of individuals directly involved in obtaining and using economic goods and services, including the decision processes that precede and determine this act.
Cell phone was developed in the year 1973 and was introduced in the Indian market in the year 1994 and started becoming familiar in 2000.
Indian telecom network with about 414 million connections in February 2009 is the 3rd largest in the world. While it is credited with the 2nd largest wireless network in the world. The government of India has reiterated its commitment to reach out to remote and uncovered areas and augment broadband facilities in rural areas.
The objective of this study is:
Identify the most popular brand of mobile phones among the Youth (age group 15-25).
Provide a clear insight on the attitude of the cell phone users.
To comprehensively analyze consumer buying processes for Mobile handset companies.
This project is based on information collected from primary and secondary sources. After the detailed study, an attempt has been made to present comprehensive analysis of Consumer behaviour and its buying processes on mobile phones. For the study we have taken a sample size of 200 respondents pose non probability sampling technique.
This work is carried out through self-administered questionnaires. The questions included were opening ended, and offered multiple choices. The findings of the activity have been drawn out in form of graphs and suggestions have been offered there from.
Below recommendations are provided for all the mobile companies as well as product line enhancements, as the mobile market in India faces stiff competition and changing consumer tastes.
HISTORY & BACKGROUND
THE INNOVATION OF CELL PHONES
Martin Cooper, a Motorola researcher and executive is considered to be the innovator of the first practical mobile phone for hand held use in a non-vehicle setting, after a long race against Bell Labs for the first portable mobile phones. Using a modern, if somewhat heavy portable handset, Cooper made the first call on a mobile phone on April 3rd 1973 to his rival, Dr. Joel .S. Enjel of Bell Labs. In New York, Cooper rivalled with Labs to create the first mobile phone. So when Cooper beat them to it, he made sure that his first call was to the Chief competitor of Bell Labs. He stated “As I walked down the street while talking on the phone, sophisticated New Yorkers gaped at the sight of someone actually moving around while making a phone call. Remember that, in 1973, there weren’t cordless telephones or cellular phones. I made numerous calls, including one where I crossed the street while talking to a New York radio reporter- probably one of the more dangerous things I have ever done in my life.” The new innovation sold for an expensive price of $3,995 and weighed 2 pounds, receiving the nickname “the brick”. The Dyna Tac mobile phone cost $100m in developing cost and took over a decade to hit the market. When it did hit the market on March 6 1983, the talk time was only half an hour and took 10 hours to charge. Despite, the horrible battery life, weight and low talk time, that didn’t keep down consumer demands. The waiting lists were in thousands.
The world’s first automated commercial cellular network was launched in Japan By NTT in 1979, initially in the metropolitan area of Tokyo. In 1981, this was followed by the simultaneous launch of the Nordic Mobile Telephone system in Denmark, Finland, Norway and Sweden. The 1st 1G was launched in the USA was a Chicago based Ameritech in 1983 using Motorola Dyna Tac mobile phone. Several countries then followed in the early to mid1980’s including UK, Mexico and Canada.
THE EVOLUTION
MOBILE MARKET IN INDIA
A BRIEF INSIGHT: TELECOM INDUSTRY
Indian telecom industry continued to register significant growth in 2008-09. Indian telecom network with about 414 million connections in February 2009 is the 3rd largest in the world. While it is credited with the 2nd largest wireless network in the world. The government of India has reiterated its commitment to reach out to remote and uncovered areas and augment broadband facilities in rural areas.
The total number of telephone increased from 76.53 million by end of March 2004 to 413.58million by end of February 2009. About 113.36 million telephones at the rate of more than 14million subscribers every month were added during 11 months of 2008-09. The total tele-density increased from 12.7% in March 2008 to 35.65%percent in February 2009. While rural tele-density reached by6y 13.81% in January 2009, the urban tele-density shot up to 83.66%
India is among the fastest growing mobile markets in the world; India the second largest mobile market in the world, and is also the fastest growing mobile markets globally. The total number of mobile subscribers in India has increased from 6.4 million in March 2002 to around 350 million in December 2008, at a compound annual rate (CAGR) at 81% aided by significant rise in network coverage and continual decline in tariffs and handset prices.
SWOT ANALYSIS
COMPETITOR ANALYSIS
COMPETITORS
Revenues of the Indian mobile handset market grew by 15% to touch Rs. 33,171 crore in 2010-11 from Rs. 28,897 crore a year back, according to an annual survey by the Telecom industry journal voice and data.
According to the survey report, NOKIA remained No1 player in the handset business in FY2010-11 with revenue of Rs.12, 929 crore showing a growth of 0.2% over Rs.12, 900 crore it did in FY2009-10. It lost market share in low end segments to home grown handset makers like Micromax, Karbonn and Spice whereas its high end phones faced a tough competition from brands like Samsung, Blackberry and HTC.
The Top 5 competitors are:
1. Nokia: Nokia Corporation is a Finnish multinational communications corporation that is headquartered in Espoo, a city in neighbouring Finland’s capital Helsinki. Nokia manufactures mobile electronic devices, mostly mobile telephones and other devices related to communications. It was the 1st largest manufacturer of mobile phones in 2011, with a global device market share of 23% in the second quarter.
2. Samsung: Samsung group is a South Korean multinational conglomerate company headquartered in Samsung tower, Seoul. Samsung produces a fifth of South Korea’s total exports and their revenues are larger than many countries.
3. Micromax: Micromax is a telecommunications company based in Gurgaon, Haryana, India. It is a manufacturer of wireless telephone. Micromax has made the handsets available through all leading outlets across the country, reaching out to the market with 150% mobile penetration.
4. Blackberry: Blackberry is a line of mobile email and Smartphone devices developed and designed in Canadian company Research in Motion since 1999. Blackberry accounts of 3% of mobile devices sales worldwide in 2011 making it a manufacturer RIM the 6th popular device maker. As of October 2011, there were 70million subscribers worldwide to blackberry.
5. LG: LG Corp is the second largest South Korean Conglomerate Company following Samsung, headquartered in the LG twin towers in Seoul. LG produces electronics, chemicals and telecommunication products in over 80 countries.
MARKET SHARE
TAGLINE AND BRAND AMBASSADORS
NOKIA- Shah Rukh Khan “Connecting People”
SAMSUNG- Aamir Khan “Next is what?”
LG- Abhay Deol, John Abraham and Genelia D’souza “Life is good”
MICROMAX- AkshayKumar “Nothing like Anything”
OBJECTIVES & METHODOLOGY
OBJECTIVES
The main objectives of this study are as follows:
Identify the most popular brand of mobile phones among the Youth (age group 15-25).
Provide a clear insight on the attitude of the cell phone users.
To comprehensively analyze consumer buying processes for Mobile handset companies.
METHODOLOGY
The method that was followed in order to complete this project was as follows:
Secondary data: The secondary data consists of information that already exists somewhere, having been collected for another purpose. Any researcher begins the research work by first going through the secondary data. In this case was the “Literature review of Consumer behaviour on Cell phones”. This article gave an insight as to what is Consumer behaviour and what are the other means as to which a consumer gets to know about the brand and also why a particular brand is preferred.
Primary data: After the use of Secondary data, Primary data was used. Primary data consists of information collected for the specific purpose at hand for the purpose of collecting primary data, using survey research I would know what drives a consumer to buy a brand and what would be their alternatives. Survey research is the approach best suited gathering description. A questionnaire was made to do a survey.
Research design: Research design is the next step. A research design gives the methods and procedures for conducting a particular study. The function of research design is to provide for the collection of relevant information (evidence), with minimum efforts, time and money. The research design can be grouped into three categories:
Exploratory Research Design: Exploratory research focuses on discovery of ideas and is generally based on secondary data. It is preliminary investigation with a flexible approach. This is because a researcher may have to change his focus as a result of new ideas and relationship among the variables.
Descriptive Research Design: Descriptive research is undertaken when the researcher has to get accurate description of a situation or relation between variables. This design tends to minimize bias and maximize the reliability of the data collected and analyzed. These are well structured.
Causal Research Design: It is undertaken when a researcher wants to find out the cause-effect relationship between two or more variables. It is based on logical grounds.
Descriptive research design technique was used to get the desired objective.
Sampling Design: To conduct a survey sampling design needs to be done and is very crucial step in completing this project.
Universe of the study: Mapusa, Panjim and Vasco city, Goa.
Sample size: A sample size of 200 consumers was decided.
Research instrument: Self-administered questionnaires.
Tools used: The tools that were used in the report are:
Percentage Analysis.
Sampling plan:
Sampling unit: Youth (age group of 15-25).
Sampling procedure: Random sampling.
Sampling method: consumer survey.
Data Analysis: The last and the final step was the data analysis.The data is analyzed on the basis of suitable tables by using statistical techniques. Representation of statistical data by diagram, graphs, charts, or pictures is more effective then tabular representation being easily intelligible to layman. Indeed diagrams are most essential whenever it is required to convey any statistical information to the generic public. The more important types of diagram which are used in this projects are:-
Bar Diagram: Mode of diagrammatic representation of data is the bar diagram. In this method the bar of equal width are taken for the different items of the series. The lengths of the bar represent value of the variables concerned.
Pie Chart: It is a circle whose area is divided proportionately among the components by straight lines drawn from the centre to the circumference of the circle. Pie charts can be an effective way of displaying information in some cases, in particular if the intent is to compare the size of a slice with the whole pie, rather than comparing the slices among them.
These are the method procedures that were done and will be seen in the report.
CONCEPTUAL FRAMEWORK
LITERATURE REVIEW
1.1 Brand preference and advertisement
Consumers learn about cellular phones from many sources, mainly from friends and families, through advertisement and their own experience. Whether a promotion or adverting hurt or help brands by making a brand is under-researched (Mela, Gupta and Lehman in 1997). In the long run, an advertisement helps a brand by making consumer less price sensitive and more loyal. Exposure of an ad is crucial to be effective in changing consumer knowledge, attitude and behaviour (Evans, Moutinho and Van Raaj in 1996). And for that ad to be seen, it must grab the attention of the target audience. ‘Ads originality’ as defined from Pietes ,Warlop and Wedel, (2002) were easier for customer to remember than ordinary ads by increasing attention to it.
This thus increases attention to the brand being advertised. However, regardless, of the content, ads for brand leaders are more successful due to the influence of the brand (Simon 1970). Ads for less popular brands maybe less successful even though the content may be good.
Liking towards the brand can itself be influence liking for the brand (Hawking, Best and Coney 1992). However, according to the study by Biehal, Stephens and Curlo (1992) whether consumer likes or dislikes ad does not necessary lead to brand acceptance or rejection. Even though, consumers may like the ad that they see, it does not necessarily mean that they will go out and buy the brand advertised. Usually, the consumer uses their attitude towards the ad in brand choice equalled that of attitude towards the brand.
Advertisers must remember that advertising messages are interpreted differently between different genders (Maldonando, Tansuhaj and Muehling 2003; Hogg and Garrow, 2003; Putrevu 2001). Previous study has proven that females were more likely to engage in elaboration than men (Maldonando and Muehling 2003) Hogg and Garrow (2003) found that women paid more attention to details of the characters of an ad when asked to analyze the advertising messages. They said that this may be explained by the fact that females have greater tendency than men to consider external information and information related to others. Women are ‘comprehensive processors’ who try to gather all available information about the product.
In building brand preferences, Alreck and Settle (1999) proposed 6 strategies:
Need association: The product/ brand linked to need through repeated messages.
Mood associations: Brands should be associated with good feelings through slogans, songs.
Subconscious motivation: Use of symbol to excite the consumers.
Behaviour modification: Are conditioned to buy the brand by controlling cues and rewards.
Cognitive processes: penetrating perception and cognitive barriers to create favourable attitudes towards brand/product.
Model emulation: portraying idealized lifestyles for consumers to imitate.
However, this study focussed only on the symbolic or tangible elements in influencing brand preferences. It did not discuss tangible aspects (such as product characteristics) of influencing brand preference. Advertisements can change consumer’s perception of a product in terms of attributes content and proportion and also influence consumers taste for attributes (Gwin & Gwin 2003).
1.2 Brand preference and Product attribute
Attributes are the characteristics or features that an object may or may not have and include both intrinsic and extrinsic (Mowen and Minor, 1998). Benefits are the positive outcomes that come from the attributes. People seek products that have attributes that will solve their problems and fulfils their needs (Mowen and Minor 1998). Understanding why a consumer chooses a product based upon its attributes help marketers to understand why some consumers have preferences for certain brands (Gwin & Gwin 2003). In the study by Gwin & Gwin (2003), the Lancaster model of consumer demand (1966, 1979), also referred to as the products attribute model, was used to evaluate the brand positioning. This model assumes that consumer’s choices are based on the characteristics of the product/brand. Each product is a bundle of attributed and that choice is based on the maximizing utility/ satisfaction from the attributes subject to budget constraints. However there were 2 limitations of the model:
The model is static and deterministic.
The model does not explain how the preferences for the attributes were formed. This article did not mention if experience with the product played a part in influencing attribute preferences.
Both tangible and intangible attributes of a product are equally important in choosing a product or a brand (Myres, 2003). There is no evidence that certain attributes are more related to customer loyalty than others (Romaruik and Sharp 2003). It was found, that though, that the more attributes (non-negative) associated with the brand, the more loyal the customer (Romaruik and Sharp 2003). Romaruik and Sharp suggested that marketers should focus more on how many attributes the brand should be associated with and not what attributes. However, this study did not specify what sort of attributes marketers should associate the brand with i.e. whether they should be relevant or irrelevant attributes, tangible or intangible etc. This is because it is important that consumers accurately learn about the products attribute performances since it would be influence their interpretations of product performance by causing memory encode and retrieval bias. Unfounded product attributes relationships beliefs can mislead them into expecting something that is not there (Mason & Bequette 1998).hence, if products fall short of customer expectations than dissatisfaction would result. Nevertheless, it was found that through irrelevant, some attributes may still be important in influencing consumer choice. Persistent preferences for product attributes occurs when there is low ambiguity in the initial potential choice for salient attributes coupled with experience, although, those attributes maybe irrelevant i.e. an attribute usually not associated with favourable brand outcomes (Muthukrishnan & Kardes 2001). Consequently, Mason & Bequette (1998) also said that the perceptions on product performance based on salient attributes are important in influencing the consumer purchase behaviour than actual product attribute performances. Similarly, Myres (2009) concluded that the brand equity may be more influenced by attribute knowledge more than consumer preference.
For low involvement products, consumers may have more objective view of the nature of the attributes (i.e. foods, cosmetics) because they are constantly being advertised and promoted. Similarly, Rioo, Vasquez and Iglesias (2001) suggested that the consumer evaluation of a product can be broken down into evaluation related to product and brand name. In his study on the relationship between human values and consumer purchases, Allen (2001) found that there were a significant association between human values (e.g. Self direction, achievement etc), product preference and tangible attribute importance with how consumer perceive the product (i.e. tangible attributes) and how they evaluate the product (i.e. symbolic meaning, tangible, intangible attributes importance). Human values influence the importance of products tangible attribute importance’s that are already important to consumers.
However, perception of product performance on the salient attributes are more important than actual performance (Mason & Bequette 1998). Mowen & Minor (1998) suggested that marketing managers should know the attributes that consumers expect in a product and how positively or negatively they rate these attributes to help and develop and promote a successful product. Retailers need to be knowledgeable of the product attributes perceived as the most important by each individual customer group in order to build and maintain market share (Warrington & Shim 2000). It is the consumer who determines which attributes matter to them. Different consumer groups place different importance on different attributes (Warrington & Shim, 2000). It is found that consumer categories as LP &SB (low product involvement and strong brand commitment) placed greater importance on product attributes and product orientations then LP/B (weak brand commitment)consumers which placed more importance on price.
Marketers should consider using advertisements, which may play a role in making attribute important to customers that might not have been considered before (Gwin &Gwin 2003), Romaruik and Sharp (2003) suggested 2 objectives of short term and long term brand building. In the short term, managers need to identify a specific attribute to be committed to the market, based on which message gave the best execution. The key aim is to develop likeable advertisements. In the long run, managers need to build up a ‘bank’ of consumer perception about the brand to make it one of the most often thought of and make it difficult for competitors to have the access to the minds of consumers (Romaruik and Sharp, 2003).
The brand name of the product itself is an important attribute. Brands have both functional (product related) and symbolic dimensions (Del Rio, Vasquez and Iglesias, 2001), on the product related benefit side, consumers evaluate product performance based on its capabilities, usage effectiveness value for money and reliability. The purchase and consumption of the products is increasing regarded by consumers as an indirect way of communication to improve their self image and deliver certain impressions to the other people in their environment (Del Rio, Vasquez and Iglesias, 2001), therefore the brand name benefits perceived by consumers is highly interrelated to the product based benefits, big brand means a better image and a better product (Del Rio, Vasquez and Iglesias, 2001). However, as mentioned earlier, Mason & Bequette (1998) suggested that perceived brand performance is more important than actual attribute performance. Similarly, Myres (2003) concluded that brand equity might be influenced by attribute knowledge more than consumer preference. This may be due to consumer biasness and prejudice, Consumers product evaluations are influenced by memory the biasness can be reduced by having current information, experience and knowledge (Mason & Bequette, 1998). Therefore, it’s not surprising that consumers believe offer superior values are most preferred brands chosen often (Myres 2003). Brands with higher equity resulted in greater preferences and high market shares.
Price is another form of attribute used by consumers to evaluate a product. Price can sometimes be an indicator of quality; with a higher price indicating higher quality. (Mowen & Minor 1998; Siu & Wong 2002). Consumers perceive that a higher price can attributed to the higher cost of quality control (Siu & Wong 2002). Some consumers are highly price sensitive, where by a high prices may shift consumers to competitive brands (Mowen & Minor, 1998). Therefore price can have a positive or negative influence on consumers.
PROBLEM STATEMENT RESEARCH QUESTION/ HYPOTHESIS
Since, the Telecom industry is growing at a very large scale in India, and technology is available India has come up with many devices such as mobile phones, 3G and 2G W-LAN so on and so forth.
The project undertaken would show consumers buying process and preferences for mobile phones in India.
PRESENTATION OF DATA
BRAND NAME
RESPONSE
Nokia
45
Sony Ericcson
10
Motorola
9
Samsung
51
Blackberry
68
Others
17
INTERPRETATION
Majority of consumers i.e. 34% use Blackberry, 25.5% consumers use Samsung and 22.5% consumers use Nokia, while 5%, 4.5% and 8.5% use Sony Ericcson, Motorola and other brands.
PRICE RANGE
RESPONSE
Below 5000
45
50001-10,000
49
10,001-20,000
69
Above 20,000
37
INTERPRETATION
As shown in Fig.7, most consumers purchase mobile phones that are ranging from 10,001-20,000, a few from the price range of 5,001-10,000 and below 5,000. And the least price range that consumers go for is above 20,000.
PURCHASES
RESPONSE
Branded retail store
67
Official exclusive brand outlets
42
Branded electronic stores
40
Others
51
INTERPRETATION
In the above diagram, majority of consumers prefer buying their mobiles from Branded retail share having 33.5%, they also prefer them buying from Nokia showroom having a percentage of 21%, then followed by Branded electronic retail shops, while others prefer to purchase their mobile phone from other stores.
AWARENESS OF THE PRODUCT
RESPONSE
Family and friends
64
Retail stores
29
Internet sites like Flipkart
57
Newspapers
15
Television Advertisements
35
INTERPRETATION
Consumers gain knowledge (awareness) of their mobile phones is ranked below:
1) Family friends.
2) Internet sites like Flipkart.
3) Television Advertisements.
4) Retail stores.
5) Newspapers.
PREFERENCE
RESPONSE
Better features
44
Priced competitively
38
Using the brand for a long time
32
Peers/ family satisfied
46
Online/Print/Visual media reviews
13
Catchy and attractive advertisements.
20
Others
7
INTERPRETATION
According to Fig.10, the highest preferred by the consumers are because their peers and families are satisfied with the product (23%), followed by the features that the phone carries i.e. 22%. Priced competitively takes the 3rd position i.e. 19%. And the least important ones are TV advertisements (10%), online/ print/ visual reviews (13%).
PREVIOUSLY OWNED BRANDS
RESPONSE
My first cell phone
19
Nokia
80
Sony Ericcson
27
Motorola
10
LG
12
Blackberry
10
Samsung
31
Others
11
INTERPRETATION
The brands of mobile phones that were previously owned are ranked below:
1) Nokia
2) Samsung
3) Sony Ericcson
4) Motorola
5) Blackberry
There were also consumers that owned the first mobile phone.
MONTHS/YEAR
RESPONSE
0-6 months
3
6 months-1year
11
1year-2year
111
2year+
75
INTERPRETATION
Most consumers would change or get a new mobile between the first year and second year, the percentage being 55.50% and also consumers don’t mind changing their phones beyond 2years +(37.50%). There are some consumers that like changing their phones regularly the percentage being 1.50% and 5.50%.
PREFERENCE OF BRAND STICKING/ CHANGING
RESPONSES
Prefer sticking to current brand
72
Willing to change
117
Don’t know
11
INTERPRETATION
According to diagram given above, most of customers are willing to change their mobile phones with a percentage of58.5%, and others are loyal to the brand that they are using so the percentage her is 36%.
PREFERENCE OF SERVICE
RESPONSE
Prefer bundle service
21
Choose the service yourself
100
Depends on bundled offer
62
Don’t care while purchasing the mobile phone
17
INTERPRETATION
In the given diagram above, most consumers have said that they would prefer to choose the service themselves (50%), 10.5% consumers said that they would prefer bundled service, 31% consumers said that they it would depend on the bundled offer and the rest 8.5% do not care when they purchase a mobile phone.
Here is the list of what consumers want in their mobile phone. Some are repetitive and that’s why have not been added to the list below:
1. Good calculator
9. night vision camera
2. Music system
10.More clipart and frames or create
3. Water proof
11. 3G options
4. BBM like services
12. Online Banking
5. Download of apps like Whatsapp
13. In built Microsoft package
6. Camera clarity
14.Storage capacity
7. High camera megapixel
15. Cheaper 3G
8. Magnetic
16. None
INTERPRETATION
The above table shows us what the customers want to see in their mobile phones that presently not there.
A NEW BRAND IN THE MARKET
RESPONSE
Yes
74
No
72
Not sure
54
INTERPRETATION
When spoken about a new brand in the market, it was a close call, 37% of consumers said that they would try the new brand and 36% of them said that they would be using the new brand, while remaining 27% were not sure.
CHARACTERISTICS OF NEW PHONE
RESPONSE
Price advantage
47
Established brand in the market
30
Heavy promotion
10
Bundled service
7
A new feature in the phone
102
Others
4
INTERPRETATION
In the above diagram, a new feature in the phone ranks highest with 51%, followed by price advantage having23.5%. Bundled service gets about 3.5%, promotion 5%, while others 2%.
DATA FINDINGS
The following are the major finds of the study:
Though Blackberry doesn’t enough market shares to be No.1, it is a favourite brand amongst the youth of India. Samsung is giving competition to Nokia (the market leader).
Youth spending a lot of money on mobile phones ranging from 10,0001 Rs- 20,000 Rs. And most of them are comfortable spending more than Rs. 20,000.
To buy a new mobile phone, most consumers go to a branded retail outlet, but surprisingly the youth prefers to get the mobiles as gifts or enter a local store.
When being aware of a brand, the youths of Goa has ranked Family and Friends at 1st place, then the internet sites like Flipkart and then one of the most influential modes, the TV ads.
Most of the consumers get attached to the brand they use is because they have better features, Peer/ family satisfied with the brand and using the brand for long time. This has been gathered by doing this survey.
Surprisingly, most consumers have said the they have used Nokia previously and also Samsung, but what’s more surprising is that some of Nokia’s customers may have shifted to Samsung mobile phones.
Few customers are willing to change their mobile phones regularly like within a year’s span. Also, there are customers who are willing to change their phones after 2 years.
Its surprising to say that 117 consumers are willing to change their phones. They believe that technology changes so should they.
Majority of the consumers are willing to accept a new phone on 3 basis: a new feature, price advantage and an established brand.
And a more important fact most of the youths don’t earn money and alone cannot afford an expensive mobile phone.
SUGGESTION AND CONCLUSION
SUGGESTIONS
Mobile companies should not only use good TV advertisements but also use technology to improve the product so that the youth can get attracted. The youth have proved that they not only get attracted to advertisements but also to the features and price the phone has.
Everyday a new mobile phone enters a market making it tough for the competitors. The other companies should use this as an opportunity to better their product.
Brand availability: The companies should try to make their products available to the retailers so that the customers can walk in and get a whole view of the favourite brand, and not when they are out of stock.
CONCLUSION
Mobile phones become an integral part of an individual life. Product modification is taking place constantly. To create delighted customers, the manufacturers and dealers of different companies’ must attach much importance to coverage and service. This alone can ensure an ever growing demand for mobile phones in study area. xxx ANNEXURES
QUESTIONAIRE
NAME _______________________________________
ADDRESS ____________________________________
TEL.NO _______________________________________
Q1: What brand of mobile do you own presently?
a) Nokia.
b) Sony Ericcson.
c) Motorola.
d) Samsung.
e) Blackberry.
f) ______________ (others).
Q2: In what price band does your phone fall (at the time of buying)?
a) Below 5,000.
b) 5,001-10,000.
c) 10,001-20,000.
d) Above 20,000.
Q3: Where do you buy your phone from?
a) Branded retail store (e.g. Mobile shop, Subhiksha mobile etc.)
b) Official exclusive brand outlets (e.g. Nokia showroom).
c) Branded electronic retail stores (e.g. Next).
d) __________________ (if any).
Q4: Where do you get information about mobile phones?
a) Family and friends.
b) Retail stores.
c) Internet sites like Flipkart.
d) Newspapers.
e) TV Advertisements.
Q5: Why did you choose this brand over others?
a) Better features.
b) Priced competitively.
c) Have been using this brand for a long time.
d) Peers/Family members satisfied with the brand.
e) Online/Print/Visual media reviews.
f) Catchy and attractive advertisements.
g) ______________________ (others).
Q6: What brand of phone did you own previously?
a) This is my first cell phone.
b) Nokia.
c) Sony Ericcson.
d) Motorola.
e) LG.
f) Blackberry.
g) Samsung.
h) ________________ (others).
Q7: how often do you change (or plan to change) your phone?
a) 0-6 months.
b) 6 months- 1 year.
c) 1 year- 2 years.
d) 2+ years.
Q8: Would you prefer to stick to your current brand in the future or would you be willing to purchase a different brand?
a) Prefer sticking to current brand.
b) Would be open to try a different brand.
c) Don’t know.
Q9: Would you prefer a service bundled with your phone when you buy it? (Airtel/ Vodafone) Or would you prefer in choose the service separately for yourself?
a) Would prefer bundled service.
b) Would prefer to choose the service yourself.
c) Depends on the bundled offer.
d) Don’t care about this when purchasing a mobile phone.
Q10: Any other features/ that you would like to see in your mobile phone?
_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Q11: Would you be open to buying a new brand that is totally new in the market?
a) Yes.
b) No.
c) Not sure.
Q12: What would attract you to buy a product in spite it being new in the market?
a) Price advantage.
b) An established brand name in the industry.
c) Heavy promotion/ advertisements.
d) Bundled with a service.
e) A new feature not present in other mobile phones.
f) ____________________ (if any).
Thank you very much for your cooperation!!!!
BIBILOGRAPHY
INTERNET SITES http://www.exacttarget.com/resources/SFF9_web.pdf http://www.gazhoo.com/doc/200912241611513472/Study+of+Consumer+Behaviour+in+selecting+mobile+phones https://docs.google.com/viewer?a=v&q=cache:1PJbB85oS7gJ:www.mairec.org/IJRFM/Mar2012/6.pdf+consumer+behaviour+on+mobile+phones+india+pdf&hl=en&gl=in&pid=bl&srcid=ADGEESgXwoGv1gnPd92HfHafDeZxGFUp_e7_VOzVyquH-Es0ttBu_m-imX8iVCArk25uDfvgSqMib0HgMAHiD7QIjRajaOxmudUpCbQ96yqwasSL5rCRVgrDgthwWXg_11syLdz4YJnk&sig=AHIEtbSRv81vcFfQUvBaKA8NubsVq-u67w http://www.webdesignerdepot.com/2009/05/the-evolution-of-cell-phone-design-between-1983-2009/ http://www.slideshare.net/rahulkalra0001/swot-analysis-indian-telecom-industry-ppt https://docs.google.com/viewer?a=v&q=cache:bnTp7PwvC9oJ:www.pppinindia.com/pdf/ppp_position_paper_telecom_122k9.pdf+telecommunication+industry+india+2012+pdf&hl=en&gl=in&pid=bl&srcid=ADGEEShTWcEHpB4tCQIXFaVmxGJ2SAFqokr71oG43_VQsUs10bUuff4xVxlhQ-xyE1p6SsaDHqf7iU50xKL0bQzikhttp://www.scribd.com/Palmodi/d/33974330-SWOT-The-Indian-Telecom-Industry0LksUkpxot2LtXH0NNsIlbZGdlEbVfQdQP9A5nskhMjGtfA9J-P&sig=AHIEtbSjybsrSejYwUAqebkQ_kvKRz4Q2g http://www.scribd.com/Palmodi/d/33974330-SWOT-The-Indian-Telecom-Industry
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