Study of Consumer Behavior regarding the brands of

Mobile Handsets in Ludhiana city

Research Project Report

Submitted to Punjab Technical University, Jalandhar

in partial fulfillment of the requirement of the degree of

Masters in Business Administration

By
Sanjeev Kumar Singh
Student (MBA)
Roll No: 81501317095

Department of Business Management

Punjab College of Technical Education, Ludhiana
2008-2010

1
 Certificate

This is to certify that the research project report entitled, “Study of Consumer Behavior
regarding the brands of Mobile Handsets in Ludhiana city ” submitted in partial
fulfillment of the requirement for the degree of Master in Business Administration at
PCTE Ludhiana, (MBA I, Examination to be held in May 2009) of the Punjab Technical
University, Jalandhar is a bonafide research work carried out by Sanjeev Kumar Singh
(MBA-1C, Roll no. 81501317095) under my supervision and that no part of this research
project has been submitted for any other degree.
The assistance and help received during the course of this investigation has been
fully acknowledged.

Dated: 30 Aprail, 2009 Ms. Deepa Kapoor

Senior Lecturer
Department of Business Management
Punjab College of Technical Education
Ludhiana

2
 Acknowledgement

In the successful completion of this project inspiration and guidance of many

people was involved. A mere form of acknowledgement would be demeaning the status
of this whole effort which has had the blessings and supervision of the eminent person
around me.
First of all I would like to thank whole heartedly Ms. Deepa Kapoor who was
there to guide me at every step during the course of this project. She gave me tips for the
improvement in project whenever required.Special thanks to Mr. K.N.S. Kang,
Director,PCTE for providing eminent direction. Apart from this I feel indebted to all
faculty members of PCTE, especially who have helped, developed the right kind of
attitude and scholastic excellence in me. Last but not the least; I am very thankful to my
parents, friends and all those persons who made this research project possible, for their
consistent guidance and constructive criticism.

Sanjeev Kumar Singh

MBA I-C
Roll No: 81501317095
Punjab College of Technical Education
Ludhiana

3
 Table of Contents

Chapter No. Particulars Page no.

1 Introduction 1-10

2 Review of Literature 11-13

3 Research Methodology 14-16

4 Data Analysis and Interpretation 17-30

5 Results and Findings 31-32

6 Conclusion and Summary 33

Appendix 34-35

Bibliography

4
 List of tables

S.No. Particulars Page No.

Table 1.1 Showing market share of major global players of mobile 1o

phones in 2008
Table 4.1 Showing number of respondents owing a mobile phone 24

Table 4.2 Showing different brands of mobiles phones used by the 25

respondents
Table 4.3 Showing respondents using same brand as they had earlier 26

Table 4.4 Showing reasons for using mobile phone by the respondents 27

Table 4.5 Showing the factors considered by respondent while 28

purchasing a mobile hand set
Table 4.6 Showing the sources which influenced the buying decision of 29
the respondents
Table 4.7 Showing different purposes for which mobile is used by the 30
respondents
Table 4.8 Showing ranking of various features of mobile handsets by 31
the respondents according to their preferences
Table 4.9 Showing range of price that respondents like to spend on 32
mobile hand set
Table 4.10 Showing features preferred in a particular brand of mobile 33
phone
Table 4.11 Showing agreement level of the respondents on various 34
factors influencing purchase decision
Table 4.12 Showing satisfaction level of the respondents 35

Table 4.13 Showing additional features required by the respondents in 36

their mobile handsets

5
 List of Figures

S.No. Particulars Page No.

Figure 1.1 India’s mobile subscriber base 13

Figure 1.2 market share in percentage of the mobile phone players in 14
Figure 4.1 number of respondents owing a mobile phone
India 24

Figure 4.2 different brands of mobiles phones used by the respondents 25

Figure 4.3 respondents using same brand as they had earlier 26

Figure 4.4 reasons for using mobile phone by the respondents 27

Figure 4.5 factors considered by respondent while purchasing a mobile 28

hand set
Figure 4.6 sources which influenced the buying decision of the 29
respondents
Figure 4.7 different purposes for which mobile is used by the 30
respondents
Figure 4.8 ranking of various features of mobile handsets by the 31
respondents according to their preferences
Figure 4.9 range of price that respondents like to spend on mobile hand 32
set
Figure4 .10 features preferred in a particular brand of mobile phone 33

Figure4 .11 agreement level of the respondents on various factors 34

influencing purchase decision
Figure4 .12 Satisfaction level of respondents 35

Figure 4.13 additional features required by the respondents in their 36

mobile handsets

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Chapter 1

1.1 INTRODUCTION

Information 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 and information, 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 of electronic 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.

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 as photocopiers and fax machines

7
1.2 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.

8
1.3 Current scenario

Mobile phones have gained a lot of popularity and are the considered to be great
multimedia tools. Mobile phones are being used for entertainment purposes due the
introduction of new features everyday. They have become more than just call making and
receiving devices. Mobile phone handsets now have more business-friendly applications
that can 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.

1.4 Global mobile handset market

The phenomenal rise of the mobile phone has seen its image change from a yuppie status
symbol to a daily essential. Along the way, it has created thousands of jobs, changed the
way we do business, and made an awful lot of money for investors. Today Key Handset
technologies include GSM, CDMA, and 1xEV-DO, WiFi VoIP, TDMA, 3G, 4G and Blue
Tooth. Worldwide mobile phone sales cruise to 990.8 million units in 2006, up a hefty
21.3% from 2005’s 816.6 million units. The estimated growth figures are—6.4% in 2007,
4.8% in 2008 and 2.6% in 2009. Notwithstanding the gradual decline in the growth
figures, the annual handset sales are predicted to reach more than US $ 3 Billion by
2009.The total number of mobile phone subscribers in the world was estimated at 2.14
billion in 2005.
Around 80% 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 fancy buying 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

9
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 years they will mainly carry on the
global handset sales.

1.5 Major Global Players

Table 1.1: showing market share of major global players of mobile phones in 2008

Company 2008 Market Share (%)

Nokia 39

Samsung 15.6

Motorola 12.7
Sony Ericcson 9.1
LG 7.7
BenQ Mobile 2.4
Others 13.5
Total 100.0

Nokia Corporation is currently the world's largest manufacturer of mobile telephones. It

produces 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

10
high-volume category sales of mobile phones and devices, with consumers being the
most important customer segment. Nokia believes that design, brand, ease of use and
price are mainstream mobile phones' most important considerations to customers. Nokia's
product portfolio includes camera phones with features such as megapixel cameras which
appeal to the mass market.

Motorola is an American multinational communications company based in Schaumburg,

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 one of the world's largest IT companies by revenue. 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.

Sony Ericsson is a joint venture established in 2001 by the Japanese consumer

electronics 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's consumer 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.

11
LG Electronics is one of the world's leading electronics companies. It is part of the
Korean LG Group, operating in approximately 80 countries. Its mobil phones division
provides CDMA, GSM, 3G Handsets.

BenQ-Siemens is the mobile communications subsidiary of Taiwanese BenQ Corp.. The

division was formed out of BenQ's acquisition of the struggling Siemens mobile group in
2005. The stated goal of the company is to pull together BenQ's lifestyle experience, their
renowned design team and Siemens' engineering capabilities to create a new leader in the
mobile communications arena. The newly-formed company won the most iF design
awards in 2006, and also won many design awards in Germany's reddot competition.

1.6 Mobile Handset Market in India

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. 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).

12
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 has increased 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 India’s mobile subscriber base

1.7 Major players in India

The major players in the handsets segment in India include Nokia, Motorola, Sony
Ericsson, Samsung, LG, Philips, Panasonic, Bird, Sagem and BenQ. Nokia has retained

13
the top slot in Indian market with 70 % share, while US giant Motorola has 15 % share
and Sony Ericsson has gained around 8% share this year. Samsung has 5% share and LG
has 1.8% share.

Fig. 1.2 market share in percentage of the mobile phone players in India

market share %

5 1.8 0.02
8

15

70

nokia motorola sony ericsson samsung LG others

1.8 Consumer Buying Behavior

Every body 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 behaviour 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 behaviour 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 exploiting marketing opportunities and in
meeting the challenges that the Indian market offers. A study of consumer behaviour is
significant for regulating consumption of goods and thereby maintaining economic
stability. Within the broad framework of marketing, the area that entices the most
researchers is the study why a consumer behaves in a particular way. The complexity of

14
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.

Incase of New Product Introduction in the market, there is a risk of product failure. 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

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 the available options. So a question arises as
to why different people choose different brands and what are the features they look for
while purchasing a mobile handset.

15
Hence a study was undertaken in Ludhiana city among the mobile phones owners.
Known as the "Manchester of India", Ludhiana is a major industrial and educational
center of northern India, and is the crossroads of many different cultures.It provides a
scope to understand the consumers buying behavior towards the mobile hand sets. 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 mobile phone
users.
3. To find out what additional features are demanded by consumers.
4. To study the satisfaction level of mobile phone users.

16
2 Review of Literature

• Business Today (May 3, 09) In India the number of mobile subscribers

will crooss 400 million ,making it the world’s second largest markrt.next
revolution, the mobile phones has moved from being a simple
communication tool to an all round entertainment & informmation
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 smartphones.

• 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."

17
• 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 cellphone 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."

• 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.

Source : http://economictimes.indiatimes.com/articleshow/2827028.cms

18
• 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."

19
Chapter 3
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.

3.1 Scope of the study

The scope of the study is to get the first hand knowledge about the buying
behavior of consumers towards different brands of mobile handsets in Ludhiana city. The
scope is restricted to study the factors affecting the preference of consumers while
choosing a mobile handset in Ludhiana city only. This is done to avoid perceptual bias
and for providing objectivity to the study.

3.2 Research Design

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

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.

20
3.3 Data Collection

3.3.1Primary 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. In close ended
questions dichotomous, ranking, likert’s scale, checklist questions and multiple choice
questions are used.

3.3.2Secondary 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.

3.4 Sampling Design

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

3.4.1 Universe

Universe is the infinite number of elements which the researcher is targeting in his study.
Since the study is restricted to Ludhiana city the universe for the study consists of all the
mobile phone owners in Ludhaina.

3.4.2 Population

Population is finite number of elements which the researcher is going to target in

particular area. All the mobile phone owners in Ludhiana city form the population for the
study.

21
3.4.3 Sampling Unit

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

3.4.4 Extent

Extent refers to the geographical area where there is a scope of population. The extent of
the study is Ludhiana City.

3.4.5 Sampling Technique

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

3.4.6 Sample size

Sample size is the size of sample drawn from the population which is the true
representative of the research.

The number of respondents included in the study was 100 for convenience in evaluating
and analyzing the data and because of time constraint.

3.5 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. In the case of questions on likert
scale, the mean scores were calculated.

In case of ranking questions the total score has been added and final ranking is
given by calculating mean. In case of checklist questions the average of total no. of

22
responses was calculated. In case of explanatory questions, the general suggestions were
summarized.

Limitations of the study

Sincere efforts have been made to collect authentic and reliable information from
respondents, however the report is subject to following limitations:

i. Some respondents were reluctant to give the information, so their responses may
be biased.
ii. Time could be a major limitation as it may have affected the inferences drawn in
the study. Only 100 respondents have been contacted due to time constraint.

iii. Sample may not be the true representative of the universe.

iv. Study was conducted in Ludhiana only. So the results of the study may not be
applicable in other areas.

23
CHAPTER 4

ANALYSIS AND INTERPRETATION

This chapter analyse the behavior and preferences of the consumers for various brands of
mobile hand set based on various factors which influence their buying decision.

This chapter therefore deals with analysis and discussions of the project.

Results of the study

Table4.1: Showing number of respondents owing a mobile phone

No. Of Respondents %
Yes 100 100
No 0 0
Total 100 100

Fig.4.1

100
90
80
70
60
perc entage

50
40
30
20
10
0
yes no

24
Table4.2: Showing different brands of mobiles phones used by the respondents

Brands No. of respondents %

Nokia 69 69
Sony Ericsson 10 10
Motorola 13 13
Samsung 2 2
others 6 6
Total 100 100

Fig.4.2

6%
2%
13%

nokia
sony ericsson
motorola
10%
samsung
others
69%

Interpretation:

From the above table and figure, we can conclude that out of 100 respondents 69% have
Nokia hand set,10% have Sony Ericsson , 13% use Motorola ,2% have Samsung. Apart
from these brands 6% of respondents have other brands like LG, Panasonic etc. It’s
evident from the figures that Nokia is most preferred brand of the people in Ludhiana.

Table4.3: Showing respondents using same brand as they had earlier

25
 RESPONSES NO. OF RESPONDENTS PERCENTAGE
Yes 64 64
No 36 36
Total 100 100

Table4.3

70

60

50
percentage

40

30

20

10

0
yes no
responses

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.

Table4.4: Showing reasons for using mobile phone by the respondents

26
 Reasons No. of Respondents %
Business transactions 38 38
Status 37 37
Don’t have landline 5 5
Others 20 20
Total 100 100

Fig.4.4

20%
38% business tran
5%
status
don,t have landline
others
37%

Interpretation:
Above table and figure depict that 38% of respondents use mobile for business
transactions, 37% use it as a status symbol, 5% use mobile because they don’t have
landline connections and 20% of respondents have other reasons like necessity, reducing
communication gap etc.

Table 4.5: Showing the factors considered by respondent while purchasing a mobile
hand set

27
 Factors No. of responses Average
Price 47 0.19
Appearance 48 0.20
Brand 48 0.20
Features 64 0.26
Easy to carry/Weight 36 0.15
Total 243 1

Fig.4.5

0.15 0.19 Price

Appearance
Brand
0.26 0.2 Features
0.2 Easy to carry/Weight

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 carry is the least important factor that is
considered in the purchase decision. It’s clear that people in Ludhiana give maximum
importance to features, appearance and brand of a mobile phone.

Table4.6: Showing the sources which influenced the buying decision of the
respondents

Sources No. of respondents %

Friend 27 27

28
 Family member 37 37
Advertisement 30 30
Dealer 6 6
Total 100 100

Fig.4.6

40

35
30

25
percentage

20

15
10

0
friends family member advertisement dealer

Interpretation:
From the above table it is concluded that out of 100 respondents, 27% and 37%
respondents purchased the mobile hand set under the influence of their friends and family
member, 25% respondents under the influence of various advertisements, 18%
respondents bought the car on the suggestion of dealer.

Table4.7: Showing different purposes for which mobile is used by the respondents

Diff. Purposes No. of Respondents Average

Receiving/making calls 100 0.34
SMS/MMS 70 0.23
Games 25 0.08
E-mail/Internet 12 0.04

29
 Music 50 0.17
Camera 41 0.14
Total 298 1

Fig.4.7

0.4
0.34
0.35

0.3

0.25 0.23
average

0.2 0.17
0.14
0.15

0.1 0.08
0.04
0.05

0
l ls

t
ne
S
ca

a
es

ic
M

er
er

us
am
/M
g

am
nt
n

M
S
ki

l/I
G

C
M
a

ai
m

-m
g/

E
in
iv
ec
R

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 Ludhiana are using them increasingly
for Music and Camera. Using Internet on mobile phones is still not common.
Table 4.8: Showing ranking of various features of mobile handsets by the
respondents according to their preferences

Features Mean scores Rank

Bluetooth 3.29 5th
MP3 Player 3.32 4th
3rd
Camera 3.23
Data Storage Capacity 3.13 1st
GPRS 4.87 6th
Personal Info. Management 3.16 2nd

30
Fig.4.8

4.87
5
4.5
4 3.32 3.23 3.13
3.29 3.16
3.5

mean scores
3
2.5
2
1.5
1
0.5
0
bluetooth mp3 camera data GPRS prsnl info
player storage mang.
capacity
features

Interpretation:

Since 1 is given to the most preferred feature and 6 to the least preferred feature in a
mobile hand set, therefore from the table, we can conclude that data storage capacity is
the most preferred feature in a mobile hand set. 2nd and 3rd ranks are given to personal
information management and camera in the mobile phone respectively. After them the
features of MP3 player and Bluetooth are given preference. GPRS is the least preferred
feature in the mobile phones. Therefore it’s clear from above that people in Ludhiana give
more preference to the feature of data storage and personal info.management.

Table 4.9: Showing range of price that respondents like to spend on mobile hand set

Range No. of respondents %

Below 5000 11 11
5000-15000 59 59
15000-25000 21 21
Above 25000 9 9
Total 100 100

Fig. 4.9

31
 9% 11%

21% Below 5000

5000-15000
15000-25000
Above 25000
59%

Interpretation:
From above it is interpreted that 59% of respondents prefer to spend between the ranges
of Rs. 5000-15000, 21% between Rs. 15000-25000, 11% above Rs. 25000and 9% below
Rs. 5000. It concludes that mobile phone users here are not price sensitive. Mobile
phones are no longer a status symbol instead they have become a necessity.

32
Table 4.10: showing features preferred in a particular brand of mobile phone

Camera Bluetooth Music Player Memory

No. of respondents
Nokia 69 62 29 75
Motorola 17 26 17 10
Sony Ericsson 14 12 54 15
Samsung 0 0 0 0
Total 100 100 100 100

Fig. 4.10

80
70
no.of respondents

60
nokia
50
motorola
40
sony ericssson
30
samsung
20
10
0
camera bluetooth music player memory
features

Interpretation:
From above table and figure it is concluded that people of Ludhiana prefer Camera,
Bluetooth and Memory features of Nokia and music player of Sony Ericsson. Features of
Motorola are also liked by many respondents but features of Samsung are not at all
preferred by them.

33
Table 4.11: Showing agreement level of the respondents on various factors
influencing purchase decision
Strongly Disagree Neutral Agree Strongly Mean Score
Disagree Agree
Factors -2 -1 0 1 2
Repairable -2(3) -1(3) 0(13) 1(41) 2(40) 112/100=1.12
Availability of spare -2(3) -1(6) 0(20) 1(39) 2(31) 89/100=0.89
parts
Proximity to service -2(2) -1(3) 0(41) 1(40) 2(14) 61/100=0.61
provider
Promotional activities -2(1) -1(15) 0(33) 1(36) 2(15) 49/100=0.49

Fig. 4.11

1.2 1.12

1 0.89
mean scores

0.8
0.61
0.6 0.49

0.4

0.2

0
Repairable Availability of Proximity to Promotional
spare parts service provider activities

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.

34
 Table 4.12: Showing satisfaction level of the respondents

No. of Respondents %
Yes 93 93
No 7 7
Total 100 100

Fig. 4.12

7%

yes
no

93%

Interpretation:

From the above table, we can conclude that out of 100 respondents, 93% respondents are
satisfied with the performance of their mobile hand set whereas 7% are not completely
satisfied. The main problem faced by them is the battery life of their hand sets. In
general, people in Ludhiana are satisfied with their brand of mobile phone.

35
Table 4.13: Showing additional features required by the respondents in their mobile
handsets

Features No. of responses Average

WiFi 38 0.26
TV 34 0.23
Video Conferencing 37 0.25
Windows 39 0.26
Total 148 1

Fig. 4.13

0.26 0.26 WiFi

TV
Video Conferencing

0.23 Windows
0.25

Interpretation:

From above table and figure it is concluded that features of WiFi and Windows are more
in demand. TV and Video Conferencing too are considered almost equally important.

Chapter 5
FINDINGS OF THE STUDY

36
1. Nokia is the most popular and widely used brand by the people of Ludhiana 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. 64% of the respondents used same brand earlier. It shows that most of the population
of Ludhiana is brand loyal.
4. But on the other side 36% of response depicts the fact that people constantly switch
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 Ludhiana 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 Ludhiana 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 is least
considered during purchase decision.
8. It’s clear that people in Ludhiana 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 Ludhiana.
10. Besides receiving and makings calls and SMS people in Ludhiana 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
Ludhiana give more preference to the features of data storage and personal
information management. GPRS is the least preferred feature in the mobile phones.

37
13. People in Ludhiana 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 now and has
become necessity.
14. People of Ludhiana city agree that factors like repairability 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. The main problem
faced otherwise is related to the battery life of a mobile hand set.
16. People in Ludhiana city require additional features of Wi-Fi, Windows, TV and
Video Conferencing in their mobile phones. It depicts that people here are techno
savvy and want to use innovative features.

Chapter 6

38
 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 Ludhiana. 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 the people of Ludhiana. Brand and features in
a handset are preferred over their prices. People here are techno savvy and require new
innovative features in mobile phones every new day.

Since the study was restricted to the Ludhiana city so the there is need to study more in
other cities to get the clear view of the findings.

APPENDIX

39
 QUESTIONNAIRE

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

Q3a) Did you have the same brand earlier?

YES NO

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

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

i. 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) ________

40
Q5) 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) 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 ________

Q8) Rank the following features of your hand set according to your preference (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.)

41
Q9) 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:

Q 12) Do you agree that following factors must be considered while choosing a brand of
Sony
Nokia Motorola Ericsson Samsung

Camera

Bluetooth

Music Player

Memory

mobile hand set?

42
 Strongly Disagree Neutral Agree Strongly
Disagree Agree
Repairable
Availability of spare parts
Proximity to service provider
Promotional activities

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

YES NO
Ans.

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

______________________________________________________________
_

______________________________________________________________
_

Q 14) What additional features do you want in your mobile handset?

(can tick more than one option)

i. WiFi ________
ii. TV ________
iii. Video Conferencing ________
iv. Windows ________

Personal Details:
Name: _________________
Age: _________________
Gender: _________________
Address: __________________________________
__________________________________
Contact No. ____________________

43
 BIBLIOGRAPHY

Next Mobile Revolution, Business Today, May 3,2009 page 42-57

Rural To The Rescue, Business Today ,Aprail 5, 2009, page 46-53
Research Methology by C. R. Kothari
Selveraj et al, “Study on consumer behaviour towards cell phone users in Thupookudi
City”, Indian journal of marketing, Vol. xxxv, No. 5, May2005, Pg. 23-28
“T3-tomororw technology today”, Vol.1, Issue 2, Jan. 2007
http://www.wirelessdesignasia.com/article-
8488globalmobilehandsetshipmentgrew17yoy-Asia.html
http://www.forbes.com/feeds/businesswire/2009/04/24/businesswire123735951.h
tml
“T3-tomororw technology today”, Vol.1, Issue 2, Jan. 2007
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
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- 40k- -Cached- Similar
Pages
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

44
45