Consumer behaviour

in selecting Mobile
phones
Objectives
 Usage pattern for various categories of
consumers
 Reasons for satisfaction and dissatisfaction of
users
 Liking for various attributes of the mobile
phone instrument
 Usage Pattern of functionalities and added
services provided
 Mobile phone Market- an Overview
Number of Basic and Mobile Phones in India
(1999 to 2006)

Year No. of Telephone

(End of March) (in Million)

Fixed (Landline+WLL) Mobile

1999 21.61 1.20

2000 26.65 1.80

2001 32.70 3.58

2002 38.53 6.43

2003 41.93 12.69

2004 42.84 33.70

2005 46.85 51.53

2006 49.57 92.52

Mobile phone Market- an Overview
Nokia- the Market Leader
 largest manufacturer of mobile phones in the world
 world wide market share of approx. 36%
 India- 2nd largest share by sales
 Nokia - the Market Leader

 Dip in market share in last one year

 Sony and Motorola catching up
 New players coming up
 More features required
 Growth in the market
Secondary data analysis- TRAI research

 Expected mobile phone consumer base by

2008- 120 million
 Assessment of satisfaction level of
consumers-
 Quality of technical service
 Various attributes of phones
 Functionalities & operational aspects of handsets
Usage pattern of Mobile phones
 Methodology

 Review of literature
 In-Depth interviews
 Focused group discussion
 Questionnaire
 Sample research
Information Needed
 Relative positioning of different brands
 Attributes of ideal mobile phone
 Satisfaction level of users
 Important drivers of buying
 Reasons for replacing existing phone
Measurement and Scaling
 Ordinal scale
 Likert scale
 Sampling plan
 Sampling data
 Target population
 Sampling frame
 Sampling technique
 Sample size
 Binary logit analysis
Analysis
 Cross Tabulation of Age, Gender, Income
 Binary Logit on :
 Attributes Liked
 Multimedia features
 Psychographic & Demographic Effect on
Purchase
Result of Survey
 Opinion about the current phone

3.57 12.5 25 23.21 35.71

Time required to charge

1.82
5.45 18.18 25.45 49.09
Ease of use

05.45 25.45 40 29.09

Appearance
Not at all good
Not good
1.79 10.71 33.93 25 28.97
Size Average
Good

1.798.93 35.71 26.79 26.79 Extremely good

Weight

3.57
0 19.64 32.14 44.64
Voice quality

10.79 19.64 53.57 25

Battey life

0 20 40 60 80 100 120
Reasons for changing the existing phone

Joyous Occasion
(Promotion/Achievement)
Bigger budget

Received as gift

6% 4% 11% 6% Old phone not working

16% well
5%
Different features
required
12%
16% Bored with the old phone
24%
Using the old phone for a
long time
New model in the market

New offers with the new

phone
Price range of the mobile phone people are looking for

13.56%
<3000
40.68% 3000 to 6000
22.03%
6000 to 9000
9000 to 15000
More than 15000
18.64% 5.08%
 Importance of different features of mobiles for the
users

Integrated camera0.00%
5.77%9.62% 13.46% 71.15%

M usic player 7.69%5.77% 15.38% 23.08% 48.08%

Hands free 3.85%9.62% 17.31% 17.31% 51.92%

Least importa
Not importan
9.43%3.77% 18.87% 20.75% 47.17%
GPRS/Net access Neutral
Important
Very importa
Internal memory 3.78%
1.89%13.21% 20.75% 60.38%

Video player 7.69% 11.54% 25% 17.31% 38.46%

FM radio 3.70%
1.85%
5.56% 16.67% 72.22%

Bluetooth 1.85%
5.56% 11.11% 24.07% 57.41%
 Conclusion
 Most people prefer Nokia phones
 High probability of switching mobile brands
 Battery life- major determining feature
 Camera & radio- highest priority
 Price not important criteria
 ?

..the end!!