31550174 study of consumer buying behavior regarding the different brands of mobile handsets

7/29/2019 31550174 Study of Consumer Buying Behavior Regarding the Different Brands of Mobile Handsets

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Institute Of Business Management and Research, Pune 2

Table of Contents

Chapter No. Particulars Page no.

1 Introduction 4-13

2 Research Methodology 14-17

3 Data Analysis and Interpretation 15-30

4 Results and Findings 31-32

5 Conclusion and Summary 33

Appendix 34-38

Bibliography 39


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Chapter 11.1 INTRODUCTIONInformation technology is "the study, design, development, implementation,

support or management of computer-based information systems, particularly

software applications and computer hardware." Encompassing the computer and

information systems industries, information technology is the capability to

electronically input, process, store, output, transmit, and receive data andinformation, including text, graphics, sound, and video, as well as the ability to

control machines of all kinds electronically.

Information technology is comprised of computers, networks, satellite

communications, robotics, videotext, cable television, electronic mail ("e-mail"),

electronic games, and automated office equipment. The information industry

consists of all computer, communications, and electronics-related organizations,

including hardware, software, 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 telephony and computer technology in the

same word. It is the technology that is driving what has often been called "the

information revolution". Nowadays it has become popular to broaden the term to

explictly include the field ofelectronic communication so that people tend to use

the abbreviation ICT (Information and Communication Technology).

"Electronic and information technology" is a term used in the 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.
http://www.answers.com/topic/videotexhttp://en.wikipedia.org/wiki/Electronic_communicationhttp://en.wikipedia.org/wiki/Electronic_communicationhttp://www.answers.com/topic/videotex


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Electronic and information technology includes computer hardware and

software, operating systems, web-based information and applications,

telephones and other telecommunications products, video equipment and

multimedia products, information kiosks, and office products such asphotocopiers and fax machines.

1.2 HistoryInformation technology dates back to 5000BC, when people started using

alphabets as a medium of communication. However, its actual emergence started

with the first ever use of the computer. The real modern mechanical computer

was conceived in 1822 by Charles Babbage. Then came the electromechanical agein 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 beganonly 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, the second

transistors, and the third integrated circuits. The fourth (and current)

generation uses more complex systems such as Very-large-scale integration or

System-on-a-chip.

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, popularized the technology that

would eventually give way to the mobile phone. The concept of using hexagonal

cells for mobile phone base stations was invented in 1947 by Bell Labs engineers

at AT&T and was further developed by Bell Labs during the 1960s.

One of the first truly successful public commercial mobile phone networks was

the ARP network in Finland, launched in 1971.The first hand held mobile phoneto become commercially available was the Motorola DynaTAC 8000X, which
http://en.wikipedia.org/wiki/Vacuum_tubeshttp://en.wikipedia.org/wiki/Transistorshttp://en.wikipedia.org/wiki/Integrated_circuitshttp://en.wikipedia.org/wiki/Very-large-scale_integrationhttp://en.wikipedia.org/wiki/System-on-a-chiphttp://en.wikipedia.org/wiki/Mobile_righttp://en.wikipedia.org/wiki/Mobileerhttp://en.wikipedia.org/wiki/Bell_Labshttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/Autoradiopuhelinhttp://en.wikipedia.org/wiki/Finlandhttp://en.wikipedia.org/wiki/Motorola_DynaTAChttp://en.wikipedia.org/wiki/Motorola_DynaTAChttp://en.wikipedia.org/wiki/Finlandhttp://en.wikipedia.org/wiki/Autoradiopuhelinhttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/Bell_Labshttp://en.wikipedia.org/wiki/Mobileerhttp://en.wikipedia.org/wiki/Mobile_righttp://en.wikipedia.org/wiki/System-on-a-chiphttp://en.wikipedia.org/wiki/Very-large-scale_integrationhttp://en.wikipedia.org/wiki/Integrated_circuitshttp://en.wikipedia.org/wiki/Transistorshttp://en.wikipedia.org/wiki/Vacuum_tubes


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received approval in 1983. Until the late 1980s, most mobile phones were too

large to be carried in a jacket pocket, so they were usually permanently installed

in vehicles as car phones. With the advance of miniaturization and smaller

digital components, mobile phones got smaller and lighter.

1.3 Current scenarioMobile 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 callmaking and receiving devices. Mobile phone handsets now have more business-

friendly applications that can enhance anybodys business. With emerging

technology, mobile phones have become more than communication devices; they

are the tools to stay ahead of competitors and peers in the present times. Soon

mobile phones will evolve from communication tools to integrated

communication devices, media terminals, credit cards, and remote controls.

1.4 Global mobile handset marketThe 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

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 2005s 816.6

million units. The estimated growth figures are6.4% 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.
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Around 90% of world's population have mobile phone coverage as of 2006. This

figure is expected to increase to 90% by the year 2010. With the periodic

introduction of new features and multimedia tools in the mobile handsets due to

technological advances, more and more people in the Asian continent fancybuying them. There are many diversities and complexities in the Asian mobile

handset market due to types of customers, government regulations,

regional/geographical wireless infrastructure, and the purchasing power.

Basically, the Asian 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 yearsthey will mainly carry on the global handset sales.1.5Major Global PlayersTable 1.1: showing market share of major global players of mobile phones in 2009

Company 2009 Market Share (%)Samsung 20.7

Nokia 19.8

Apple 7.9

ZTC 4.2

LG 3.5

Huawei device 3.6

Research in Motion 2.4

Motorola 2.0

Sony Mobile Communications 1.9

HTC 1.8
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Others 33.2Total 100.00

Nokia Corporation is the world's largest manufacturer of mobile telephones. Itproduces mobile phones for every major market and protocol, including GSM,

CDMA, and W-CDMA (UMTS).The corporation also produces

telecommunications network equipment for applications such as mobile and

fixed-line voice telephony, ISDN, broadband access, voice over IP, and wireless

LAN.

Nokia's Mobile Phones division provides the general public with mobile voice and

data products across a wide range of mobile devices. 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 massmarket.

Motorola is an American multinational communications company based inSchaumburg, Illinois, a Chicago suburb.Most of Motorola's products have been

radio-related, starting with a battery eliminator for radios, through the first

walkie-talkie in the world, defense electronics, cellular infrastructure equipment,

and mobile phone manufacturing. Motorola has recently been regaining market

share in the cellular-phone business from Nokia, Samsung, and others due to

stylish new cellular phone designs.

Samsung Electronics is currently one of the world's largest IT companies byrevenue. The company also claims to be have the highest brand value among

consumer electronics companies. Headquartered in Seoul, South Korea, it is part

of the Korean Samsung Group, operating in approximately over 100 countries.It

is the number 1 mobile phone manufacturer in Asia.
http://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Global_System_for_Mobile_Communicationshttp://en.wikipedia.org/wiki/Code_division_multiple_accesshttp://en.wikipedia.org/wiki/W-CDMAhttp://en.wikipedia.org/wiki/Telephonyhttp://en.wikipedia.org/wiki/Broadbandhttp://en.wikipedia.org/wiki/Voice_over_IPhttp://en.wikipedia.org/wiki/Wireless_LANhttp://en.wikipedia.org/wiki/Wireless_LANhttp://en.wikipedia.org/wiki/Camera_phonehttp://en.wikipedia.org/wiki/Camera_phonehttp://en.wikipedia.org/wiki/Camera_phonehttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Communicationhttp://en.wikipedia.org/wiki/Companyhttp://en.wikipedia.org/wiki/Schaumburg%2C_Illinoishttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/Suburbhttp://en.wikipedia.org/wiki/Radiohttp://en.wikipedia.org/wiki/Battery_eliminatorhttp://en.wikipedia.org/wiki/Walkie-talkiehttp://en.wikipedia.org/wiki/Worldhttp://en.wikipedia.org/wiki/Defense_%28military%29http://en.wikipedia.org/wiki/Cellularhttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Nokiahttp://en.wikipedia.org/wiki/Samsunghttp://money.cnn.com/magazines/fortune/global500/2006/snapshots/1171.htmlhttp://www.samsung.com/uk/aboutsamsung/index.htmhttp://en.wikipedia.org/wiki/Seoulhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Samsung_Grouphttp://www.transnationale.org/companies/samsung_electronics.phphttp://www.transnationale.org/companies/samsung_electronics.phphttp://en.wikipedia.org/wiki/Samsung_Grouphttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Seoulhttp://www.samsung.com/uk/aboutsamsung/index.htmhttp://money.cnn.com/magazines/fortune/global500/2006/snapshots/1171.htmlhttp://en.wikipedia.org/wiki/Samsunghttp://en.wikipedia.org/wiki/Nokiahttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Cellularhttp://en.wikipedia.org/wiki/Defense_%28military%29http://en.wikipedia.org/wiki/Worldhttp://en.wikipedia.org/wiki/Walkie-talkiehttp://en.wikipedia.org/wiki/Battery_eliminatorhttp://en.wikipedia.org/wiki/Radiohttp://en.wikipedia.org/wiki/Suburbhttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/Schaumburg%2C_Illinoishttp://en.wikipedia.org/wiki/Companyhttp://en.wikipedia.org/wiki/Communicationhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Camera_phonehttp://en.wikipedia.org/wiki/Camera_phonehttp://en.wikipedia.org/wiki/Camera_phonehttp://en.wikipedia.org/wiki/Wireless_LANhttp://en.wikipedia.org/wiki/Wireless_LANhttp://en.wikipedia.org/wiki/Voice_over_IPhttp://en.wikipedia.org/wiki/Broadbandhttp://en.wikipedia.org/wiki/Telephonyhttp://en.wikipedia.org/wiki/W-CDMAhttp://en.wikipedia.org/wiki/Code_division_multiple_accesshttp://en.wikipedia.org/wiki/Global_System_for_Mobile_Communicationshttp://en.wikipedia.org/wiki/Mobile_phone


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Sony Ericsson is a joint venture established in 2001 by the Japanese consumerelectronics company Sony Corporation and the Swedish telecommunications

company Ericsson to make mobile phones. Both companies have stopped making

their own mobile phones. The reason for this merger is to combine Sony'sconsumer electronics expertise with Ericsson's technological leadership in the

communications sector. The company's global management is based in

Hammersmith, London. It also has research & development teams in Sweden,

Japan, China, Canada, the Netherlands, the United States,India and the United

Kingdom.

LG Electronics is one of the world's leading electronics companies. It is part ofthe Korean LG Group, operating in approximately 80 countries. Its mobile

phones division provides CDMA, GSM, 3G Handsets.

ZTE (Zhong Xing Telecommunication Equipment Company Limited) is apublicly-owned, Chinese corporation that designs and manufactures

telecommunications equipment and systems. Based in Shenzhen, and

established in 1985 ZTE offers a wide variety 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, mobile network operators, etc

Kyocera Communications Inc.(KCI) is a manufacturer of mobile telephones forCDMAnetworks and is a wholly owned subsidiary ofKyocera Corporation that

was formed in February 2000 when Kyocera acquired QUALCOMM's San Diego,

California-based terrestrial handset division. It produces mobile phones, cellular

routers, and Mobile PC Cards for markets in North America, South America,

Australia, and New Zealand.

1.6 Mobile Handset Market in IndiaThe cell phones industry has shown a remarkable growth in the last decade. In

1989 the number of its subscribers was zero in India. Indias love affair with cellphones started in the mid-1990s, as the mobile revolution took hold and India
http://en.wikipedia.org/wiki/Joint_venturehttp://en.wikipedia.org/wiki/2001http://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Consumer_electronicshttp://en.wikipedia.org/wiki/Consumer_electronicshttp://en.wikipedia.org/wiki/Companyhttp://en.wikipedia.org/wiki/Sony_Corporationhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Ericssonhttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Hammersmithhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/LG_Grouphttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Telecommunicationshttp://en.wikipedia.org/wiki/Shenzhenhttp://en.wikipedia.org/wiki/Value-added_servicehttp://en.wikipedia.org/wiki/Video_on_demandhttp://en.wikipedia.org/wiki/Streaming_mediahttp://en.wikipedia.org/wiki/Telecommunications_service_providerhttp://en.wikipedia.org/wiki/Telecommunications_service_providerhttp://en.wikipedia.org/wiki/Mobile_network_operatorhttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Code_division_multiple_accesshttp://en.wikipedia.org/wiki/Kyocerahttp://en.wikipedia.org/wiki/Qualcommhttp://en.wikipedia.org/wiki/San_Diego,_Californiahttp://en.wikipedia.org/wiki/San_Diego,_Californiahttp://en.wikipedia.org/wiki/Cellular_routerhttp://en.wikipedia.org/wiki/Cellular_routerhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Cellular_routerhttp://en.wikipedia.org/wiki/Cellular_routerhttp://en.wikipedia.org/wiki/San_Diego,_Californiahttp://en.wikipedia.org/wiki/San_Diego,_Californiahttp://en.wikipedia.org/wiki/Qualcommhttp://en.wikipedia.org/wiki/Kyocerahttp://en.wikipedia.org/wiki/Code_division_multiple_accesshttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Mobile_network_operatorhttp://en.wikipedia.org/wiki/Telecommunications_service_providerhttp://en.wikipedia.org/wiki/Telecommunications_service_providerhttp://en.wikipedia.org/wiki/Streaming_mediahttp://en.wikipedia.org/wiki/Video_on_demandhttp://en.wikipedia.org/wiki/Value-added_servicehttp://en.wikipedia.org/wiki/Shenzhenhttp://en.wikipedia.org/wiki/Telecommunicationshttp://en.wikipedia.org/wiki/People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/LG_Grouphttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Hammersmithhttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Ericssonhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Sony_Corporationhttp://en.wikipedia.org/wiki/Companyhttp://en.wikipedia.org/wiki/Consumer_electronicshttp://en.wikipedia.org/wiki/Consumer_electronicshttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/2001http://en.wikipedia.org/wiki/Joint_venture


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had just 10 million mobile and landline connections. Delhi was the first state to

launch cell phones in India. Growth then soared in the last four years due to

regulatory change and falling costs of calls and handsets. Indias wireless market

is a test bed for alternative infrastructure, handsets, billing systems, businessmodels 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 crossed 100

million mark. This has been accomplished by rethinking handsets, network

infrastructure, enhanced services and content. More than two-third 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 land area covered by mobile networks is approx 30%. CAGR of Mobile Market

Value for 2004- 2009 is 36.9%.With 156.31 million cell phones; teledensity in the country

is still low at 17.45%. Fewer than eight in every 100 Indians use mobiles, compared with

China's 30 per cent. In India, about 13 percent of people have cell phones which hasincreased from 8% in 2005 and is expected to reach 40 percent within a few years. A

lack of investment in the infrastructure needed to support landline services means there

are 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 by

end of 2010 with CAGR of 33.7% for 2004- 2010.

Fig. 1.1 Indias mobile subscriber base


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1.7 Major players in IndiaThe major players in the handsets segment in India include Nokia, Motorola,

Sony Ericsson, Samsung, LG, Philips, Panasonic, Bird, Sagem and BenQ. Nokia

has retained the top slot in Indian market with 60 % share, while US giant

Motorola has 15 % share and Sony Ericsson has gained around 8% share thisyear. Samsung has 15% share and LG has 1.8% share.

1.8 Consumer Buying BehaviorEverybody in the world is the consumer. Each of us buys and sells or consumes

goods and services in the life. Consumer behavior is 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 relevance and importance of understanding consumer behavior 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 constantly innovating and

understand the latest consumer needs and tastes it will be extremely useful in


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exploiting marketing opportunities and in meeting the challenges that the

Indian market offers. A study 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 thestudy 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

individuals make decisions to spend their available resources 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 macro

level perspective. Micro level seeks application of 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 behavior provides a sound basis for identifying and understanding

consumer needs. It is the act of the individuals directly involved in obtaining and

using economic goods and services.

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 of New Product Introduction in the market, there is a risk of productfailure. To increase the chances of success of new products, 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


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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 access,

sending and receiving photos and files, storing data, to name just a few of theavailable 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 malout city among the mobile phone user

people. It provides a scope to understand the consumers buying behavior towards

the mobile handsets. The increasing importance of cell phones has made them

almost a necessity for most people. Mobile penetration is on rise. It has even

exceeded 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 the factors those influence the customer choice while

purchasing a mobile hand set.

2.

To know which features in a particular brand are preferred by the mobilephone users.

3. To find out what additional features are demanded by consumers.4. To study the satisfaction level of mobile phone users.


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Chapter 2RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem, which is a

science of study how research is done scientifically. Thus research methodology

encompasses the research methods or techniques; the research is capable of being

evaluated either by the researcher himself or by others.

Research DesignThe 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 isto be carried out. The research design of the project is descriptive as it describes dataand characteristics associated with the population using mobile phones.

Data Collection2.3.1 Primary Data

Primary data is that data which is collected for the first time. It is original in

nature in the shape of raw material. For the purpose of collection of primary data, a

well structured questionnaire was framed which was filled by the respondents.

2.3.2 Secondary DataSecondary 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.


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SAMPLINGSampling may be defined as the selection of some parts of an agreement or

totality for the purpose of study. All the items in any field of inquiry constitute a

universe or population, a complete enumeration of all the items in the populationis known as Census inquiry. But when the field of inquiry is large this method

becomes difficult to adopt because of the limited no. of resources involved in the

case sample survey method is chosen under which units are selected in such a

way that they represent the entire universe.

SAMPLING DESIGN SAMPLING METHOD:- When field studies are undertaken in practical life,

consideration of time and cost almost invariably lead to a selection of

respondents i.e. selection of only few items. The respondent selected should be as

representative of total population. These respondents constitute what is

technically called a Sample and the selection process is called Sampling

Technique. The survey so conducted is known as Sample Survey.

Implementation of Sample Design: - A sample design is a definite plan for obtaining asample from a given population. It refers to the technique or the procedure the

researcher would adopt in selecting items for the sample. Sampling design may as welllay down the number of items to be included in the sample i.e. the size of sample.

Sample design is determined before the data are colleted.

Steps In Sampling Design :- While developing a research design followingitems are taken into consideration:-

I. Type of universe: - First and the foremost step is to clearly define the

universe to be studied. As I will take the area of Malout City (Punjab),

so for me here the universe is Malout City area. No doubt it is a finite

universe but the area is very big and cant be covered easily due to

shortage of time.


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II. Sampling unit: - A decision has to be taken concerning a sampling unitbefore selecting sample. Here my sample unit will includes people of

malout city.

III. Size of sample: - This refers to the number of items to be selected fromthe universe to constitute a sample. Here I will take the sample of 50

people of malout city. .

IV. Parameters of interest: - In determining the sample design, one mustconsider the question of the specific population parameters which are

of interest. Here I had taken people of malout city..V. Sampling procedure: - Here I will use the convenience technique based

on the non probability method of sampling for data collection, in

malout City area.

Type of DataThe researcher will collect the primary data in the malout city,

because the data does not exist in the records of Company. The researcher will go

directly to the respondents and fill the questionnaires.

2.5 Data Analysis and InterpretationFor 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 ofquestions on liker 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 average

of total no. of responses was calculated. In case of explanatory questions, the

general suggestions were summarized.


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Limitations of the studySincere efforts have been made to collect authentic and reliable

information from respondents, however the report is subject to following

limitations:

i. Some respondents were reluctant to give the information, so their responses maybe biased.

ii. Time could be a major limitation as it may have affected the inferences drawn inthe study. Only 50 respondents have been contacted due to time constraint.

iii. Sample may not be the true representative of the universe.iv. Study was conducted in malout only. So the results of the study may not be

applicable in other areas.

Chapter 3ANALYSIS AND INTERPRETATION


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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 studyTable3.1: Showing number of respondents owing a mobile phone

No. Of Respondents %Yes 50 100

No 0 0

Total 50 100

Fig.3.1

Table3.2: Showing different brands of mobiles phones used by the respondents

0

20

40

60

80

100

Yes No

% 100 0

percentage


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Brands No. of respondents %Nokia 15 31

Sony Ericsson 3 6

Motorola 6 12

Samsung 19 39

LG 2 4

Others 4 8

Total 50 100

Fig.3.2

Interpretation:From the above table and figure, we can conclude that out of 50 respondents 31

% have Nokia hand set,6% have Sony Ericsson , 12% use Motorola ,39% have

Samsung, 4% have LG. Apart from these brands 8% of respondents have other

brands like Spice, Micromax, Panasonic etc. Its evident from the figures that

Nokia is most preferred brand of the people of malout.

0%

Nokia

18%Motorola

5%

Sony Ericsson

7%

Samsung

20%

Total

50%

Camera


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

RESPONSES NO. OF RESPONDENTS PERCENTAGEYes 32 64

No 18 36

Total 50 100

Table3.3

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

0

10

20

30

40

50

60

70

yes noresponses

perce

nt

age


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Reasons No. of Respondents %Communication 19 38

Status 18 36

Dont have landline 3 6

Others 10 20

Total 50 100

Fig.3.4

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 dont

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 mobilehandset

Communication

38%

Status

36%

Dont have

landline

6%

Others

20%


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Factors No. of responses AveragePrice 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

Interpretation:From above it can be concluded that features in a mobile hand set is the most

important factor which is considered by the respondents while purchasing the

mobile phone. Brand and Appearance are the other very important factor

influencing the purchase decision. Price is also an important factor. Easy to carryis the least important factor that is considered in the purchase decision. Its clear

that people of malout give maximum importance to features, appearance and

brand of a mobile phone.

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

0.19

0.2

0.2

0.26

0.15 Price

Appearance

Brand

Features

Easy to carry/Weight


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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 various

advertisements, 16% respondents bought the car on the suggestion of dealer.

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

36%

18%

30%

16%

Friend Family member Advertisement Dealer


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Diff. Purposes No. of Respondents AverageReceiving/making calls 50 0.34

SMS/MMS 35 0.23

Games 13 0.08

E-mail/Internet 12 0.04

Music 25 0.17

Camera 20 0.14

Total 155 1

Fig.3.7

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, people of malout 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 the respondentsaccording to their preferences

0.34

0.23

0.08

0.04

0.17

0.14

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

Reciving

/makin

gcalls

SMS/MM

S

Gam

es

E-mail/In

ternet

Music

Camera

average


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Fig.3.8

Interpretation:Since1 is given to the most preferred feature and 6 to the least preferred featurein 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. 2 nd and 3rd ranks are

given to MP3 player and camera in the mobile phone respectively. After them the

features of personal information management and Bluetooth are given

preference. GPRS is the least preferred feature in the mobile phones. Therefore

its clear from above that people of malout 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

Bluetoo

th

MP3

PlayerCamera

Data

Storage

Capacity

GPRS

Persona

l Info.

Manage

ment

mean score 3.29 3.16 3.23 3.13 4.87 3.32

0

1

2

3

4

56

meanscore

Features Mean scores RankBluetooth 3.29 5th

MP3 Player 3.16 2thCamera 3.23 3rd

Data Storage Capacity 3.13 1stGPRS 4.87 6th

Personal Info.Management 3.32

4nd


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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

Interpretation: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

32%

40%

22%

6%

below 5000

5000-10000

10000-15000

above 15000


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Fig. 3.10

Interpretation:From above table and figure it is concluded that peole of malout prefer Camera,

Bluetooth and Memory features of Nokia and music player of 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 influencingpurchase decision

0

10

20

30

40

50

60

Nokia Motorola Sony

Ericsson

Samsung Total

Camera No. of

respondents

Bluetooth

Music Player

Memory

Camera Bluetooth Music Player MemoryNo. of respondents

Nokia 18 20 10 25Motorola 5 3 8 5

Sony Ericsson 7 5 18 8Samsung 20 22 14 12

Total 50 50 50 50


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Factors

StronglyDisagree

-2

Disagree

-1

Neutral

0

Agree

1

StronglyAgree

2

Mean Score

Repairable -2(2) -1(1) 0(6) 1(21) 2(20) 56/50=1.12

Availability of spare

parts

-2(2) -1(3) 0(10) 1(20) 2(15) 44/50=0.88

Proximity to service

provider

-2(1) -1(2) 0(21) 1(19) 2(7) 31/50=0.62

Promotional

activities

-2(1) -1(7) 0(16) 1(18) 2(8) 24/50=0.48

Fig. 3.11

Interpretation:From the above table we can conclude that respondents strongly agree with the

repairable factor of a mobile phone, the mean score being 1.12. Respondents are

also to a large extent agreeing with the factor 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

RepairableAvailability of

spare parts

Proximity to

service

provider

Promotional

activities

mean 1.12 0.88 0.62 0.48

0

0.2

0.4

0.6

0.8

1

1.2

meanscore


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No. of Respondents %Yes 46 92No 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

life of their hand sets. In general, people of malout are satisfied with their brand

of mobile phone.

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

92%

8%

Yes

No


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Features No. of responses AverageWi-Fi 19 0.26

TV 17 0.23

Video Conferencing 18 0.25

Windows 19 0.26

Total 73 1

Fig. 3.13

Interpretation:From above table and figure it is concluded that features of Wi-Fi and Windows

are more in demand. TV and Video Conferencing too are considered almost

equally important.

Chapter 4FINDINGS OF THE STUDY

26%

23%

25%

26%

WiFi

TV

Video Conferencing

Windows


30/39


1. Samsung is the most popular and widely used brand by people of malout city.2. Brands like Nokia and Sony Ericsson are also gaining ground with regard to

popularity.

3.

64% of the respondents used same brand earlier. It shows that most of themobile users are brand loyal.

4. But on the other side 36% of response depicts the fact that people constantlyswitch from one brand to another on the dearth of new features and advance

technology.

5. Mobile phone is no more a status symbol now for the people of malout city. Ithas increasingly become a necessity to reduce communication gap and to

maintain mobility.6. It is clear from the above that people of malout city give due importance to

factors like features, appearance and brand of mobile phones while making

purchase decision.

7. Price comes after the satisfaction of above factors and easy to carry facility isleast considered during purchase decision.

8. Its clear that people of malout city purchase a particular brand of mobilehandsets on the basis of the positive report about their performance received

from their friends and family members who already own that brand.

9. Advertisements also play an important role in influencing the buyingdecision.

10.Besides receiving and makings calls and SMS people of malout city are alsousing mobile for listening music and camera.

11.Use of mobile for games has significantly reduced. And still people are notaccustomed with the use of internet on their mobile phones.

12.As far features of mobile phones are concerned its clear from above thatpeople of malout city give more preference to the features of data storage,

MP3 and Camera. GPRS is the least preferred feature in the mobile phones.

13.People of malout city agree that factors like reparability and availability ofspare parts are important to consider while making buying decision for a

brand of mobile phone. But as far as promotional activities are concerned

they are neutral towards this factor.


31/39


14.Most of the population is satisfied with their existing brands. The mainproblem faced otherwise is related to the battery life of a mobile hand set.

15.People of malout city require additional features of Wi-Fi, Windows, TV andVideo Conferencing in their mobile phones. It depicts that people here aretechno savvy and want to use innovative features.

Chapter 5CONCLUSION AND SUMMARY

The Mobile phone represents the convergence instrument of the future. It have

become a necessity for many people throughout the 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 phones, which sell for pricesthat range from very inexpensive to thousands of rupees.


32/39


The above findings and results reflected the preferences, expectations and

satisfaction level of mobile phones users in malout city. The study would help the

companies in understanding the factors that influence the purchase decision of

the consumers and their expectations from the mobile handsets. The results ofthe study indicate that mobile phones are no longer the status symbol for the

people of malout city. 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.

QUESTIONNAIRE

Personal Details:Name: _________________

Age: _________________Gender: _________________

Address: __________________________________

__________________________________

Contact No. ____________________

Q1) Do you have a mobile phone?


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YES NO

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

i. Nokia _______ii. Sony Ericsson _______

iii. Motorola _______iv. Samsung _______v. Any other (please specify) _______

b) Which model ____________

Q3) How long ago did you purchase it?

A) Less than three month agoB) 3-6 month agoC) 7-12 month agoD)Within past 2 yearsE) More than 2 years ago

Q4) 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. Advanced technology _______ii. New features _______

iii. Inefficiency in earlier mobile _______iv. Any other( please specify) _______


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Q5) Why have you bought the mobile? (Tick one option)

i. Communication purpose ________ii. Status ________

iii. Dont have landline phone ________iv. Any other (please specify) ________

Q6) Which is the following best describe the highest level of education you have

completed?

A) Elementary school graduateB) Middle school graduateC) High school graduateD)University degreeE) Post graduate

Q7) What is your monthly income?

A) 10,000-11,999B) 12,000-10,999C) 20,000-24,999D)25,000-29,999E) 30,000-34,999F) 35,000 and above

Q8) Which of the following factors you considered while choosing the mobile hand set?

(can tick more than one option)

i. Price ________ii. Appearance ________

iii. Brand ________iv. Features ________v. Easy to carry/Weight ________

Q9) Who influenced you to buy this brand? (Tick one option)


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i. Friend _______ii. Family member _______

iii. Advertisement _______iv. Dealer _______v. Any other (please specify) _______

Q10) For what reason you choose the mobile brand?

A) Convenience HandsetB) Cost controlC)Value added ServiceD)Discounts

Q11) Select following option is in store marketing materials that may impact shoppers

purchase decision for mobile phone?

A) In store TVB) BroachersC) DanglerD)Floor standeeE) PosterF) Leaflet

Q12) You consider owing a mobile handset as a

A) NecessityB) StatusC) Luxury

Q13) For which different purposes do you use your mobile?

(can tick more than one option)

i. Receiving / making calls ________ii. SMS/ MMS ________

iii. Games ________iv. E-Mail/ Internet ________v. Music ________

vi. Camera ________


36/39


Q14)

Ran

k the

follo

wing

featu

res

of

your

hand

set

accor

ding

to

yourpreference (rank 1 to most preferred and rank 6 to least preferred)

i. Bluetooth _________ii. MP3 Player/ Video Player _______

iii. Camera _________iv. Data Storage Capacity _________v. GPRS _________

vi. Personal information management _________(Notes, to-do list,contacts,etc.)

Q15) Tick the range of price you would like to spend on a mobile handset?

i. Below 5000 ________ii. 5000- 15000 ________

iii.

15000- 25000 ________iv. Above 25000 ________

Q16) Tick the following features you like in particular brand:

Nokia Motorola Sony

Ericsson

Samsung


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Q

17)

Do

youagre

e

that

follo

wing

facto

rs must be considered while choosing a brand of mobile hand set?

Strongly

Disagree

Disagree Neutral Agree Strongly

Agree

Repairable

Availability of spare parts

Proximity to service

Promotional activities

Q 18) a) Are you satisfied with your existing mobile hand set?

YES NO

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

_______________________________________________________________

_______________________________________________________________

Camera

Bluetooth

Music Player

Memory


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Q 19) what additional features do you want in your mobile handset?

(Can tick more than one option)

i. Wi-Fi ________ii. TV ________

iii. Video Conferencing ________iv. Windows ________

BIBLIOGRAPHY

http://en.wikipedia.org/wiki/Mobile_phones

http://communities-dominate.blogs.com/brands/2010/02/phone-market-shares-for-year-of-2009-and-last-quarter-2009.html

http://www.wirelessdesignasia.com/article-

8488globalmobilehandsetshipmentgrew17yoy-Asia.html

http://www.forbes.com/feeds/businesswire/2009/04/24/businesswire123735951.ht

ml

T3-tomororw technology today, Vol.1, Issue 2, Jan. 2007


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http://digital-lifestyles.info/2007/03/05/worldwide-mobile-phone-sales-grow-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-By-Industry/Telecom/Mobile-

handset-sales-pick-up-after-drought/rssarticleshow/4180130.cms-

http://www.dailyindia.com/show/121503.php/India-to-be-second-largest-mobile-

market-by-2010:-Nokia

http://www.zinnov.com/presentation/Mobile_VAS.pdf
http://www.rncos.com/Report/COM02.htmhttp://www.zinnov.com/presentation/Mobile_VAS.pdfhttp://www.zinnov.com/presentation/Mobile_VAS.pdfhttp://www.rncos.com/Report/COM02.htm

31550174 study of consumer buying behavior regarding the different brands of mobile handsets

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