Management Thesis – I (Class of 2010)

A Report
On
“ANALYSIS OF THE VARIOUS FEATURES
CONSIDERED
BY THE CONSUMERS WHILE PURCHASING MOBILE
HANDSET”

PREPARED BY: KEYUR J. GANDHI (8NBSU048)

UNIVERSITY ID: 0801212280
SUBMITTED TO: MR. VIKASH SINGH
CAMPUS HEAD: MRS. MEGHNA DANGI
CAMPUS : SURAT
Acknowledgement
Survey is an excellent tool for learning and exploration. No classroom routine can substitute
which is possible while working in real situations. Application of theoretical knowledge to
practical situations is the bonanzas of this survey. Without a proper combination of
inspection and perspiration, it’s not easy to achieve anything. There is always a sense of
gratitude, which
I express to others for the help and the needy services they render during the different phases
of my lives. I too would like to do it as I really wish to express my gratitude toward all those
who have been helpful to me directly or indirectly during the development of this Project.
I am grateful for finishing this project to many people.
First of all, I want to thank Mrs. Meghna Dangi, Campus Head, ICFAI National College,
Surat. Secondly I wish to express my profound gratitude and sincere thanks to my esteemed
Professor Mr.Vikash Singh who was always there to help and guide me when I needed help.
His perceptive criticism kept me working to make this project more full proof. I am thankful
to him for his encouragement and valuable support. Working under him was an extremely
knowledgeable and enriching experience for me. I am very thankful to him for all of the
productive discussions on emerging mobile services and changing business dynamics in the
world of manufacture’s & operator’s business. I am grateful to many anonymous experts
working in the turbulent environment of mobile communications business, who provided me
with better understanding of interrelationships in mobile business ecosystems. These insights
helped me in explaining some of the empirical research findings. In addition to industry
experts I also thank my research colleagues at ICFAI National College, Surat for
constructive comments and lively discussions on mobile services and emerging market
trends. Without my friends it would have been difficult to balance between work and free
time.

Keyur
Gandhi
(8NBSU048)
Chapter No. Particulars Page No.

1 Preface (1)

2 Introduction (2)

3 Objectives (4)

4 Limitation of the Study (4)

5 Literature Review (5)

6 Research Methodology (7)

7 Industry Profile (9)

8 Company Profile (12)

9 Analysis and Interpretation (17)

10 (29)
Testing the Hypothesis
CONTENT

PREFACE
The project gives an insight of the telecom sector. It basically helps understanding the brand
preference of students with regard to mobile phones. It helps us to know what is the basis on
which consumers chooses a particular brand when he/she purchases a new handset.
The project will help to learn about the growing telecom sector in India. The research will
also bring to light what all factors a student considers at the time of purchase of a new
mobile phone.

Introduction
The Cellular telephone (commonly "mobile phone" or "cell phone" or "handphone") is a
long-range, portable electronic device used for mobile communication. In addition to the
standard voice function of a telephone, current mobile phones can support many additional
services such as SMS for text messaging, email, packet switching for access to the Internet,
and MMS for sending and receiving photos and video. Most current mobile phones connect
to a cellular network of base stations (cell sites), which is in turn interconnected to the public
switched telephone network (PSTN) (the exception is satellite phones. Cellular telephone is
also defined as a type of short-wave analog or digital telecommunication in which a
subscriber has a wireless connection from a mobile telephone to a relatively nearby
transmitter. The transmitter's span of coverage is called a cell. Generally, cellular telephone
service is available in urban areas and along major highways. As the cellular telephone user
moves from one cell or area of coverage to another, the telephone is effectively passed on to
the local cell transmitter. A cellular telephone is not to be confused with a cordless telephone
(which is simply a phone with a very short wireless connection to a local phone outlet). A
newer service similar to cellular is personal communications services (PCS).

History
Information 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 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, 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 phone to become commercially available was the Motorola DynaTAC 8000X,
which 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.

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 enhance
anybody’s 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.

Objectives

Primary objective
 ➢ Analysis of the various features considered by the consumers before purchasing
mobile handset.

Secondary objectives

➢ To know which Brand is preferred by the customers most and why?

➢ To know what range of price customer is ready to pay for handset now days.

➢ To know who influences the customers to buy specific brand’s mobile.

➢ To know different factors considered by the customers before buying mobile phones.

➢ To know the reasons why customers are shifting from one brand to another brand.

Limitation of the Study

Though full efforts have been made for the completion of the project, there are some
limitations, They are as under.

➢ Some people use handsets just for the purpose of communication so they don’t
consider the other features before buying.

➢ In rural area there are lack of awareness about the use of the various features so
study results will be limited.

➢ Though primary data collection is done with the help of questionnaire. It is not 100%
reliable.

➢ The whole research need a lot of time for accurate result so time Constraint for
preparing Management Thesis.

Literature Review

According to Business Today (May 3, 09) In India the number of mobile subscribers will
cross 400 million, making it the world’s second largest market. Next revolution, the mobile
phones has moved from being a simple communication tool to an all round entertainment &
information devices. Services are being enabled increasingly by more & more powerful
processors onboard mobile devices. 10% of the 1.2 billion handsets sold in 2008 as smart
phones.
According to The Economics Times (Apr 2008) B K Modi controlled Spice Mobiles today
launched the first Indian branded 3G and CDMA200 handsets in technological collaboration
with Qualcomm and said it is targeting half a million of these handset sales in the current
fiscal. We aim to sell four million standard handsets in the current fiscal and target half a
million 3G handsets sales separately", Spice Mobiles Vice President Dilip Modi said C-810
(the CDMA enabled handset) is priced at Rs 6500 while the GSM 3G handset is priced at Rs
8500.
Informa Telecoms and Media (Mar. 09) predicts the global mobile market is expected to
add more than 1 billion subscribers and reach almost 3 billion overall or 43 percent
penetration by the year 2010. While Asia, the Middle East and Africa will experience the
highest growth rates, Informa reports "several countries are already reporting penetration
rates of over 100% and Western Europe's regional penetration is set to breach 100% in a
couple of years."
Indian Cellular Association (March 09). says that a record addition of 15 million new
telecom subscribers in January 2009 has cheered the mobile handset market. After a
lacklustre 2008 when the Indian cell phone market saw near flat sales growth, the handset
turf has grown 10% in January, claims the apex national body of handset vendors.
Strategy Analytics offered their thoughts on the potential global mobile market, predicting
the "worldwide cellular user base will increase from 1.7 billion at the end of 2005 to 2.5
billion by the end of 2010, a 38 percent penetration rate."
According to Union Budget 2008-09, Mobile phone users would now have to shell out
more money for buying new handsets, with the government proposing to levy one per cent
excise duty on them.

Phil Kendall at Strategy Analytics, commented, "Voice usage will increase from 5.6
trillion minutes in 2005 to 12.6 trillion in 2010. GSM based systems will continue to
dominate the cellular landscape, accounting for 81 percent of subscribers and 76 percent of
service revenues in 2010, though CDMA's more rapid evolution to 3G will see it dominate
3G subscriber volumes in the medium term. "
Sony-Ericsson has emerged as the top company for the second consecutive year in overall
satisfaction by mobile handset users, edging out market leader Nokia and Motorola,
according to a survey. Motorola is No 2 on overall satisfaction score, displacing Nokia to the
third place.
DoT to Telcos (Oct 08) Concerned over security lapses in the use of cell phones without
proper security codes, government has asked mobile operators to strictly ensure that calls are
not processed on such handsets that cannot be tracked by sleuths. The security code known
as International Mobile Equipment Identity (IMEI) is a 15-digit number unique to a mobile
handset and this can help in tracking or blocking of the mobile phones.
Juniper Research estimates the "total mobile subscriber market will reach 2.7 billion by
2010 and that shipments of handsets will break the 1 billion mark by 2009 on the back of
emerging Asia Pacific markets and increasing replacement rates in mature markets. 3G
subscribers are predicted to grow from 30 million in 2004 to over 300 million by 2010."

Research Methodology

This chapter describes the research methodology adopted to achieve the objectives of the
study. It includes the scope of the study, research design, collection of data, analysis of data
and limitations of the study.
Scope of the study
The scope of the study is to get the first hand knowledge about the various factors affecting
buying behavior of consumers towards different brands of mobile handsets in surat city. The
scope is restricted to study the factors affecting the preference of consumers while choosing
a mobile handset in surat city only. This is done to avoid perceptual bias and for providing
objectivity to the study.
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. The
research design of the project is descriptive as it describes data and characteristics associated
with the population using mobile phones. Descriptive research is used to obtain information
concerning the current status of the phenomena to describe "what exists" with respect to
variables in a given situation.
Data Collection
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. The questionnaire comprises
of close ended as well as open ended questions.
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.
Sampling Design
Sampling refers to selecting some of the elements in a population by which one can draw
conclusions about the entire population.

Universe
Universe is the infinite number of elements which the researcher is targeting in his study.
Since the study is restricted to Surat city the universe for the study consists of all the mobile
phone owners in Surat.
Population
Population is finite number of elements which the researcher is going to target in particular
area. All the mobile phone owners in Surat city form the population for the study.
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.
Extent
Extent refers to the geographical area where there is a scope of population. The extent of the
study is Surat City.
Sampling Technique
The selection of the respondents was done on the basis of simple random sampling
technique.
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 100 for convenience in
evaluating and analyzing the data and because of time constraint.

Data Analysis and Interpretation

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 and through various graphs.

Industry Profile

The Global Cellular Mobile Industry:

The global mobile phone industry is based on many different manufacturers and operators.
The industry is based on advanced technology and many of the manufacturers are operating
in different industries, where they use their technological skills, distribution network, market
knowledge and brand name. Four large manufacturers of mobile phones are today
dominating the global mobile phone industry; Nokia, Sony Ericson, Samsung and Motorola.
In addition to these companies there are many manufacturers that operate globally and
locally.
Units Sold Market share
Brand (in 2nd quarter,
millions) 2009
Nokia 103.2 41.08 %
Samsung 52.3 15.39 %
LG 29.8 9.33 %
Motorola 14.9 9.46 %
Sony
13.8 8.22 %
Ericsson
Others 41 16.53 %

Telecom Industry in India

➢ The telecom industry is one of the fastest growing industries in India. India has nearly
200 million telephone lines making it the third largest network in the world after
China and USA.
➢ With a growth rate of 45%, Indian telecom industry has the highest growth rate in the
world.
➢ Much of the growth in Asia Pacific Wireless Telecommunication Market is spurred
by the growth in demand in countries like India and China.
➢ India‘s mobile phone subscriber base is growing at a rate of 82.2%.
 ➢ China is the biggest market in Asia Pacific with a subscriber base of 48% of the total
subscribers in Asia Pacific.
➢ Compared to that India’s share in Asia Pacific Mobile phone market is 6.4%.
Considering the fact that India and China have almost comparable populations,
India’s low mobile penetration offers huge scope for growth.

The cell phones industry has shown a remarkable growth in the last decade. In 1989 the
number of its subscribers was zero in India. India’s love affair with cell phones started in the
mid-1990s, as the mobile revolution took hold and India 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.
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.
Company Profile

NOKIA

Nokia Corporation is a Finnish multinational communications corporation, headquartered

in Keilaniemi, Espoo, a city neighboring Finland's capital Helsinki established in 1865.
Nokia is focused on wireless and wired telecommunications, with 112,262 employees in 120
countries sales in more than 150 countries and global annual revenue of 51.1 billion Euros
and operating profit of 8.0 billion as of 2007. It is the world's largest manufacturer of mobile
telephones: its global device market share was about 38% in Q3 of 2008, down from 39%
in Q3 2007 and down from 40% sequentially. Nokia produces mobile phones for
every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS).
Nokia's subsidiary Nokia Siemens Networks produces telecommunications network
equipments, solutions and services. Nokia has sites for research and development,
manufacturing and sales in many continents throughout the world. As of March 2008, Nokia
had R&D centers in 10 countries and employed 30,415 people in research and development,
representing approximately 27% of Nokia’s total workforce. The Nokia Research Center,
founded in 1986, is Nokia's industrial research unit of about 800 researchers, engineers and
scientists. It has sites in seven countries: Finland, Denmark, Germany, China, Japan, United
Kingdom and United States. Besides its NRCs, in 2001 Nokia founded (and owns)
INDT – Nokia Institute of Technology, a R&D institute located in Brazil. Nokia's
production facilities are located at Espoo, Oulu and Salo, Finland; Manaus, Brazil; Beijing,
Dongguan and Suzhou, China; Fleet, England; Komárom, Hungary; Chennai, India;
Reynosa, Mexico; Jucu, Romania and Masan, South Korea. Nokia's Design Department
remains in Salo, Finland.Nokia plays a very large role in the economy of Finland: it is by far
largest Finnish companies, accounting for about a third of the market capitalization of the
Helsinki Stock Exchange (OMX Helsinki) as of 2007; a unique situation for an industrialized
country. It is an important employer in Finland and several small companies have grown
into large ones as Nokia' co subcontractors. Nokia increased Finland's GDP by more
than 1.5% in 1999 alone. In 2004 Nokia's share of the Finland's GDP was 3.5% and
accounted for almost a quarter of Finland's exports in 2003. In 2006, Nokia generated
revenue that for the first time exceeded state budget of Finland. Finns the have ranked
Nokia many times as the best Finnish brand and employer. Nokia brand valued at
$35.9 billion, is listed as the 5th US company, and is the world's 88 AMR most valuable
global brand in Inter brand/Business Week’s Best Global Brands list of 2008 (1st
non-US company). It is then number one brand in Asia (as of 2007) and Europe
(as of 2008), 23rd most admirable Fortune's World's Most Admired Companies list of 2008
(tied with Exxom mobile) 2nd in Network Communications, 5th non US company, and
is the world's 88th largest fortune global 500 list of 2008, up from 119 of the
previous year. As of AMR research Nokia’s global supply chain ranks number
two in the world.

MOTOROLA

MOTOROLA Electronics a wholly owned subsidiary of

MOTOROLA Electronics was established in January, 2003 after clearance from the Foreign
Investment Promotion Board(FIPB). The trend of beating industry norms started with the
fastest ever nationwide launch by MOTOROLA in a period of 4 and 5 months with the
commencement of operations in May 2003.
MOTOROLA set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in
2004, with an investment of Rs 500 Crores. During the year 2001, MOTOROLA also
commenced the home production for its eco-friendly Refrigerators and established its
assembly line for its PC Monitors at its Greater Noida manufacturing unit.
The Greater Noida manufacturing unit line has been designed with the latest technologies at
par with international standards at Korea and is one of the most Eco-friendly units amongst
all MOTOROLA manufacturing plants in the world. The year 2001 witnessed MOTOROLA
becoming the fastest growing company in the consumer electronics, home appliances and
computer peripherals industry. The company had till the month of October 2001 achieved a
cumulative turnover of Rs 5000 Crores in India since its inception in 2003 , making it the
fastest ever Rs 5000 Crores clocked by any company in the Indian consumer electronics and
home appliances industry. Having achieved this milestone, MOTOROLA achieved another
benchmark with the first ever sales of One Lakh ACs (Windows and Splits) in a calendar
year. MOTOROLA is poised to surpass its turnover target of Rs. 2700 Crores this year and
clock a turnover of Rs. 3000 Crores. This year, MOTOROLA has emerged as the leader in
Colour Televisions, Semi Automatic Washing Machines, Air Conditioners, Frost-Free
Refrigerators and Microwaves Ovens. In Colour Televisions having set the sales target of
one million units of Color Televisions for 2002, MOTOROLA has already achieved the one
million mark in the month ahead of its target. MOTOROLA Electronics India is the fastest
growing company in the consumer electronics, home appliances and computer peripherals
industry today. MOTOROLA Electronics is continually providing superior technology
products & value for money to over 50 lacs households in India.

SONY ERICSSON

Corporate structure
Sony Ericsson Mobile Communications is a global provider of mobile multimedia devices,
including feature-rich phones, accessories and PC cards. The products combine powerful
technology with innovative applications for mobile imaging, music, communications and
entertainment. The net result is that Sony Ericsson is an enticing brand that creates
compelling business opportunities for mobile operators and desirable, fun products for end
users.
Sony Ericsson Mobile Communications was established in 2001 by telecommunications
leader Ericsson and consumer electronics powerhouse Sony Corporation. The company is
owned equally by Ericsson and Sony and announced its first joint products in March 2002.
Sony Ericsson products have universal appeal and are different in the key areas of imaging,
music, design and applications. The company has launched products that make best use of
the major mobile communications technologies, such as the 2G and 3G platforms, while
enhancing its offerings to entry level markets.
Sony Ericsson undertakes product research, design and development, manufacturing,
marketing, sales, distribution and customer services. Global management is based in London,
and R&D is in Sweden, UK, France, Netherlands, India, Japan, China and the US. The
management team is led by President Hideki Komiyama, a former senior executive of Sony
Europe and one of the key players in the growth of Sony in Europe; and Executive Vice-
President and Head of Sales Anders Runevad, the former President Ericsson Brazil.
Industry accolades
As new products are introduced to end user acclaim, existing products continue to receive
accolades and Sony Ericsson is today accepted as a world leader in design and innovation.
The globally acclaimed T610 and later generations of the company’s product portfolio
frequently win awards. The GSM Association voted the V800 as Best 3G Handset for 2004,
a fully-featured phone made for Vodafone with the full range of mobile entertainment
features and multi-directional camera, and the K750i received the TIPA Award 2005/2006
for ‘Best Mobile Imaging Device’, chosen by 31 leading European photography/imagining
magazines and judged on quality, performance and value for money. In February 2007 the
GSM Association presented Sony Ericsson with the ‘Best 3GSM Mobile Handset’ award for
the K800 Cyber-shot phone.
Innovation in partnership
Sony Ericsson strives to be a cutting edge provider of applications, forging partnerships with
developers and content providers. Strategic agreement with partners such as Sony BMG is
one way in which the company is bringing the best and latest in entertainment content to its
users. Sony Ericsson has also activated a global sponsorship deal with the Women’s Tennis
Association Tour, which was renamed the Sony Ericsson WTA Tour in January 2005. The
six-year title sponsorship is an unprecedented opportunity for Sony Ericsson to offer tennis
fans new ways to experience the game through mobile technology, connectivity and content.
In the mobile gaming market Sony Ericsson took the lead in 2004, being the first to launch
Java 3D-enabled handsets, and is forging ahead to bring 3D gaming to a wider audience

SAMSUNG

The Samsung Group is the world's largest conglomerate. It is South Korea's largest chaebol
and composed of numerous international businesses, all united under the Samsung brand,
including Samsung Electronics, the world's largest electronics company, Samsung Heavy
Industries, one of the world's largest shipbuilders and Samsung Engineering & Construction,
a major global construction company. These three multinationals form the core of Samsung
Group and reflect its name - the meaning of the Korean word Samsung is "tristar" or "three
stars".
The Samsung brand is the best known South Korean brand in the world and in 2005,
Samsung overtook Japanese rival Sony as the world's leading consumer electronics brand
and became part of the top twenty global brands overall. It is also the leader in many
domestic industries, such as the financial, chemical, retail and entertainment industries.
Samsung's strong influence in South Korea is visible throughout the nation, and is sometimes
called the 'Republic of Samsung'.
The 1990s saw Samsung rise as an international corporation. Not only did it acquire a
number of businesses abroad, but also began leading the way in certain electronic
components. Samsung's construction branch was awarded a contract to build one of the two
Petronas Towers in Malaysia, Taipei 101 in Taiwan and the Burj Dubai in United Arab
Emirates (founded by Callum Cuirtis), which is the tallest structure ever constructed. In
1996, the Samsung Group reacquired the Sungkyunkwan University foundation. In 1993 and
in order to change the strategy from the imitating cost-leader to the role of a differentiator,
Lee Kun-hee, Lee Byung-chull’s successor, sold off ten of Samsung Group's subsidiaries,
downsized the company, and merged other operations to concentrate on three industries:
electronics, engineering, and chemicals (Samsung Electronics).
➢ Samsung is the world's largest manufacturer of Televisions and various other
consumer electronics.
➢ Samsung is the world's second largest mobile phone maker.
➢ Compared to other major Korean companies, Samsung survived the Asian financial
crisis of 1997-98 relatively unharmed. However, Samsung Motor Co, a $5 billion
 venture was sold to Renault at a significant loss. Most importantly, Samsung
Electronics (SEC) was officially spun-off from the Samsung Group and has since
come to dominate the group and the worldwide semiconductor business, even
surpassing worldwide leader Intel in investments for the 2005 fiscal year. Samsung's
brand strength has greatly improved in the last few years.
➢ Samsung became the largest producer of memory chips in the world in 1992.
Samsung, the world's second-largest chipmaker after Intel, see Worldwide Top 20
Semiconductor Market Share Ranking Year by Year. In 1995, it built its first liquid-
crystal display screen. Ten years later, Samsung grew to be the world's largest
manufacturer of liquid-crystal display panels. Sony, which had not invested in LCDs,
contacted Samsung to cooperate. In 2006, S-LCD was established as a joint venture
between Samsung and Sony in order to provide a stable supply of LCD panels for
both manufacturers. S-LCD is owned by Samsung and Sony 51% to 49%
respectively and operates its factories and facilities in Tangjung, South Korea.
➢ In 2008, Samsung became the largest mobile phone maker in the United States
and 2nd largest mobile phone maker in the World.

ANALYSIS AND INTERPRETATION

In this part analysis of the various features considered by the consumers

while purchasing mobile handset has been done.

Therefore this part deals with analysis and discussions of the project.

Results of the study

Table 1: Showing number of respondents owing a mobile phone

Answer No. of Respondents %

Yes 50 100%
No 0 0%

Respondents owing a mobile phone

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

Brands No. of respondents %

Nokia 28 56%
Sony Ericsson 4 8%
Motorola 11 22%
Samsung 4 8%
Others 3 6%
Total 50 100%

Different brands of mobiles phones used by the respondents

Interpretation:

From the above table and figure, we can conclude that out of 50
respondents 56% have Nokia hand set, 22% use Motorola , 8% have Sony
Ericsson and Samsung each. Apart from these brands 6% of respondents
have other brands like LG, China mobile etc. It’s evident from the figures
that Nokia is most preferred brand of the people in Surat city but Motorola
is also capturing market very fast as Motorola is on 2nd place.

Table 3: Showing respondents using same brand as they had earlier

Responses Respondents %

Yes 24 55%

No 20 45%

Total 44 100%
 Respondents using same brand as they had earlier

Interpretation:
From the above, it is interpreted that 55% of the respondents had same brand of mobile hand
set earlier while 45% had different brands while few people have there first mobile handset.
45% of people had switched over to new brands because they want new features and advance
technology in their handset which is provided by other brand and also due to inefficiency in
earlier brand. But above figures conclude that 55% of the respondents are brand loyal and
they are totally satisfied with the quality and services in their handset.

Table 4: Showing reasons for using mobile phone by the respondents

Reasons No of Respondents %
Business transactions 17 34%
Status 7 14%
Don’t have landline 11 22%
Others 15 30%
Total 50 100%

Reasons for using mobile phone

Interpretation:

Above table and figure depict that 34% of respondents use mobile for business transactions
as they have business and now a days for a business man or a working person mobile phone
is must so majority are using it for business transactions, 14% use it as a status symbol as
they are using high priced mobile with various features which shows there status and which
is not affordable for everyone, 22% use mobile because they don’t have landline connections
at home or at the office and the rest 30% of respondents have other reasons like necessity,
reducing communication gap, to stay in touch with friends and relatives or the student who
are living in hostel in other city so to keep in touch with there family etc. But the interesting
fact which is come to know is that now a day people prefer mobile phone in place of land
line connection so the demand of mobile phone has shown tremendous growth in past few
years.
Table 5: Showing the factors considered by respondent while purchasing a
mobile hand set

Factors No. of Respondents Average

Price 32 0.26
Appearance 15 0.12
Brand 27 0.22
Features 38 0.32
Easy to carry/Weight 9 0.08
Total 121 1

The factors considered by respondent while purchasing a

Mobile hand set

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. Price is
also an important factor as today many companies in this competitive world providing
various features at lower prices and Indian public is also price sensitive so it can also be
considered as an important factor. Brand name is also the other very important factor
influencing the purchase decision as the brand name reflects the status of the person
Blackberry, I-phone, Nokia N-series mobile etc. Easy to carry and appearance are the least
important factor that is considered in the purchase decision. It’s clear that people in Surat
people give maximum importance to features, price and brand name of a mobile phone. As
there are mobile phones from China is also available in the market with the same features
people don’t buy due to brand name.
Table 6: Showing the sources which influenced the buying decision of the
respondents

Name of the source No. of Respondents %

Friend 20 40
Family member 13 26
Advertisement 14 28
Dealer 1 2
Other 2 4
Total 50 100

The sources which influenced the buying decision of the respondents

Interpretation:

From the above table it can be concluded that out of 50 respondents, 40% respondents
purchased the mobile hand set under the influence of their friends as friends who gave the
advice about latest phones as well as there previous experiences so major influencer are the
friends and 26% of the respondents are influenced by the family member so the company
should design the promotional strategy which can attract the head of the family and many
times the head of the family is giving money to purchase the mobile so family members are
also the major influencer, 28% respondents under the influence of various advertisements as
now days advertisement give all the USP of the mobile hand set and it is the best way of
communication so it is also a major influencer, 2% respondents bought the mobile handset
on the suggestion of dealer and 4% respondents are influenced by the other like brand name
and their previous experience with the brand.

Table 7: Showing different purposes for which mobile is used by the

respondents

Diff. Purposes No. of Respondents Average

Receiving/making calls 43 0.33
SMS/MMS 27 0.21
Games 11 0.08
E-mail/Internet 7 0.06
Music 29 0.22
Camera 13 0.1
Total 130 1

Purposes for which mobile is used by the respondents

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 Surat are using them increasingly for Music.
People are also frequently using there handsets for taking pictures and playing games. Using
Internet on mobile phones is still not common in Surat very few people are using that. They
mostly use Internet on their phone to check share prices.

Table 8: Showing ranking of various features of mobile handsets by the

Respondents according to their preferences

Features Mean scores Rank

Bluetooth 3.52 2nd
MP3 Player 2.6 1st
Camera 3.66 3rd
Data Storage Capacity 3.96 4th
GPRS 5.06 5th
Touch Screen 6.46 7th
Motion Game 6.96 9th
Internet & Computer Facility 6.3 6th
Personal information management 6.48 8th

Ranking of various features of mobile handsets by the respondents

according to their preferences

Interpretation:

Since 1 is given to the most preferred feature and 9 to the least preferred feature in a mobile
hand set, therefore from the table, we can conclude that MP3 player is the most preferred
feature in a mobile hand set. 2nd and 3rd ranks are given to Bluetooth and camera in the
mobile phone respectively. After them the features like Data storage capacity, GPRS,
Internet and computer facility, Touch Screen, Personal Information Management. Motion
games are the least preferred feature in the mobile phones. Therefore it’s clear from above
that people in Surat give more preference to the feature of MP3 player, Bluetooth and
Camera.
Table 9: Showing range of price that respondents like to spend on mobile
hand set
 Range No. of respondents %
Below 5000 11 22
5000-15000 29 58
15000-25000 7 14
Above 25000 3 6
Total 50 100

Range of price that respondents like to spend on mobile hand set

Interpretation:

From above it is interpreted that 58% of respondents prefer to spend between the ranges of
Rs. 5000-15000, 22% people below Rs. 5000, 14% between Rs. 15000-25000 and 6% above
Rs. 25000. It concludes that mobile phone user who need mobile phone just for
communication are not willing to spend much money behind it. But today there are many
mobile handset companies which are providing all the features in the mobile handset at
cheaper price like china but people are considering brand name also so many of that are
ready to spend between 5000Rs to 15000 Rs. Another segment of people which also consider
mobile handset as there status symbol they are ready to spend no matter what amount of the
mobile handset but it should suit with there status.

Table 10 Shows the awareness about the company’s punch line and picture
in the respondent

Company logo/ punch line No of respondents %

Sony Ericssion 23 26

LG 20 22

Motorola 14 16

Nokia 32 36
89 100
 Total

The awareness about the company’s punch line and picture in the
respondents

Interpretation:

From the above chart we can conclude that the logos and punch lines of the different
companies are very famous and people generally know the different company logos but in
that also people recognize Nokia company tagline very fast as Nokia is very famous brand in
Surart. On the 2nd rank its Sony Ericssion and after that there are LG and Motorola. But there
are people who don’t remember Sony Ericssion’s, LG’s and Motoraola’s punch line they just
remember its logo and they found that these companies logo are very attractive.

Table 11: showing features preferred in a particular brand of mobile

phone

Extendable
Company Camera Bluetooth Music Player Memory
Name No. of Respondents
Nokia 26 25 8 24
Motorola 6 12 4 11
Sony Ericsson 10 6 34 4
Samsung 8 7 4 11
Total 50 50 50 50

Features preferred in a particular brand of mobile phone

Interpretation:

From above table and figure it is concluded that people of Surat prefer
Camera, Bluetooth and Memory features of Nokia and music player of
Sony Ericsson. Other Companies likes Motorola and Samsung, in that
companies mobile handset not many people like their features. It’s the
people who are using their first mobile phone of that company and don’t
have knowledge about other company’s features are satisfied with the
company.

Table 12: Showing agreement level of the respondents on various factors

Influencing purchase decision

Strongly Strongly
Disagree Disagree Neutral Agree Agree
Factors (-2) (-1) (0) (1) (2) Mean

Repairable 7 (-2) 6 (-1) 1 (0) 12 (1) 24 (2) 40/50 = 0.8

Availability of spare
parts 3 (-2) 4 (-1) 5 (0) 17 (1) 21 (2) 49/50 = 0.98
Proximity to service
provider 3 (-2) 7 (-1) 6 (0) 23 (1) 11 (2) 32/50 = 0.64

Promotional activities 5 (-2) 5 (-1) 16 (0) 17 (1) 7 (2) 16/50 = 0.32

Agreement level of the respondents on various factors influencing

purchase decision

Interpretation:
From the above table we can conclude that respondents strongly agree with the availability
of spare parts factor of a mobile phone, the mean score being 0.98. Respondents are also to a
large extent agreeing with the factor on it should be repairable and proximity of service
provider but as far as promotional activities are concerned they are neutral towards this
factor.

Testing the Hypothesis

Ho: Various features do not matter while purchasing a mobile handset

H1: Various features matter while purchasing a mobile handset

Out of 50 respondents 38 respondents replied that they considered features of

mobile handset while purchasing a mobile handset.

p = 38/50 = 0.76 n = 50

q = 1- p = 1- 0.76 = 0.24

Now sample size is more then 30 so we will apply z test here

Z= p_____ = 0.76 = 0.76

√ p*q / n √ 0.76 *0.24/50 0.06

Z = 12.67

12.6
7

= Zcal > Ztab

= 12.67 > 1.645

So, Ho is rejected.

So, we can conclude that people are considering various features while
purchasing a mobile handset,

FINDINGS OF THE STUDY

1) Nokia is the most popular and widely used brand by the people of Surat city.
2) Brands like Motorola and Sony Ericsson are also gaining ground with regard to
popularity but they are mostly liked by the young generation.
3) 55% of the respondents used same brand earlier. It shows that most of the population
of Surat is brand loyal.
4) But on the other side 45% of response depicts the fact that people constantly switch
from one brand to another on the dearth of new features and inefficiency in the earlier
mobile.
5) Mobile phone is no more a status symbol now for the people of Surat city. It has
increasingly become a necessity to reduce communication gap and to maintain mobility.
It has also become an important tool for people specially the working population to carry
business transactions easily and quickly.
6) It is clear from the above that people of Surat give due importance to factors like
features, price and brand of mobile phones while making purchase decision.
7) Appearance comes after the satisfaction of above factors and easy to carry facility is
least considered during purchase decision.
8) It’s clear that people in Surat buy a particular brand of mobile hand sets 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 buying decision of the
people in Surat.
10) Besides receiving and makings calls and SMS people in Surat 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 people in
Surat give more preference to the features like MP3 player, Bluetooth and Camera.
Motion game is the least preferred feature in the mobile phones.
13) People in Surat city prefer to spend between Rs. 5000 and Rs. 15000 on a mobile
phone. It again depicts that mobile phones are no longer a status symbol for every one
now as it was in past years and it has become necessity.
14) People of Surat city agree that factors like reparability and availability of spare 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.
15) Most of the population is satisfied with their existing brands.

CONCLUSION 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 prices that range from very inexpensive to thousands of rupees.
The above findings and results reflected the preferences, expectations and satisfaction level
of mobile phones users in Surat 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 of the study indicate that mobile phones are no longer the
status symbol for every people of Surat city. 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 Surat city so the there is need to study more in other
cities to get the clear view of the findings.
ANNEXURE

QUESTIONNAIRE

Personal Details:
Name: _________________ Age: _________________
Gender: _________________ Occupation: _________________
Contact No. ____________________

Q1) Do you have a mobile phone?

YES NO

Q2) a) 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 _________

If it is your first mobile phone then skip Q3

Q3)a) 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) _______

Q4) Why have you bought the mobile? (Tick one option)
i. Business transactions ________
ii. Status ________
iii. Don’t have landline phone ________
iv. Any other (please specify) ________

5) 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 ________

Q6) Who influenced you to buy this brand? (Tick one option)
i. Friend _______ ii. Family member _______
iii. Advertisement _______ iv. Dealer _______
v. Any other (please specify) _______

Q7) Which of the following feature of mobile is used by you most frequently?
(can tick more than one option)
i. Receiving / making calls ______ ii. SMS/ MMS ________
iii. Games ________ iv. E-Mail/ Internet ________
v. Music ________ vi. Camera ________

Q8) Rank the following features of your hand set according to your preference
(rank 1 to most preferred and accordingly)
i. Bluetooth _________
ii. MP3 Player/ Video Player _________
iii. Camera _________
iv. Data Storage Capacity _________
v. GPRS _________
vi. Personal information management _________
(Reminders, Meetings etc)
vii. Touch screen______________
viii Internet & computer facility____________
ix motion game______________

Q9) If you want to change or buy new handset 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 ________

Q10) Out of following tick the picture/ punch line you recognize:
 __________ ____________

___________ ____________

Q11) Tick the following features you like in particular brand:

Nokia Motorola Sony Samsung
Ericsson

Camera

Bluetooth

Music Player

Extendable
Memory

Q 12) Do you agree that following factors must be considered while choosing a
brand of mobile hand set?
Strongly Disagree Neutral Agree Strongly
Disagree Agree

Repairable

Availability
of spare
parts

closeness to
service
provider

Promotional
activities

BIBLIOGRAPHY
Next Mobile Revolution, Business Today
Rural To The Rescue, Business Today
“T3-tomororw technology today”, Vol.1, Issue 2
http://www.wirelessdesignasia.com/article-8488globalmobilehandsetshipmentgrew17yoy-
Asia.html
http://www.forbes.com/feeds/businesswire/2009/04/24/businesswire123735951.html
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://en.wikipedia.org/wiki/Mobile_phones
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http://economictimes.indiatimes.com/News/News-By-Industry/Telecom/Mobile-
handsetsales-
http://www.dailyindia.com/show/121503.php/India-to-be-second-largest-mobile-marketby-
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