Consumer preference

analysis for mobile

phones purchase

Bhavya K (65)
Kapil A (71)
Manu V (76)
Mathew J (77)
Mridul G (78)
Sahil P (89)
Prateek K (sec A-25)
 Background
To the consumer, a product is often seen as a bundle of utility that
meets a specific need. In case of a mobile phone, these utilities
can be calling facility, sms facility, internet connectivity, camera,
input function, etc.

In such a case, marketers need to understand which utilities or

attributes are important to various segments of consumers.

Conjoint analysis is a statistical technique used in market research

to determine how people value different attributes that make up
an individual product or service.
 Research Objectives
• To determine the most important criterion for
consumer while purchasing a mobile phone in India

• To determine the most preferred and least preferred

specification for each factor

• To arrive at the most preferred and least preferred

profiles for a mobile phone in India
 Methodology
• Primary data was collected using an online survey.
• The survey included questions related to the individual’s profile
followed by 10 tasks of selecting the preferred profile out of the 3
displayed profiles.
• Each profile was a combination of 4 “attributes” and each “attribute”
contained 3 “levels” or specifications
Attribute Level Attribute Level
Price (Rs.) 4-8 K Input interface Normal
9-12 K Qwerty
13-16 K Touchscreen
Camera 2 MP Connectivity GPRS
3.2 MP GPRS+WiFi
5 or + MP GPRS+WiFi+3G

• The collected data was analyzed to arrive at average utility of each

“level” and relative importance of each “attribute”
 Sample Description
Completion rate

15 respondents
dropped out at
Completed
Drop out
introduction and the
n=203
173 30 rest dropped out at Q.4
85%
15%

Gender
Female; 49;
28%
Average Time to
Male; 124; 72%
Complete the Survey:
n=173 5 minutes

Source: SurveyAnalytics
 Sample Description
Age Distribution of sample
92

61

5 7 3
2 2 1
15-17 18-20 21-23 24-26 27-29 30-32 33-35 36-39
Age in years

88% of the sample lies in the age group 21-26 years

Source: SurveyAnalytics
 Sample Description
Price (Rs.) Profiles simulator
4-8 K 1749 In a sample size of 173 respondents,
9-12 K 1704 1730 tasks were completed which
13-16 K 1737 displayed a total of 5190 profiles.
Using profiles simulator, we get the
Input Interface
number of times each attribute level
Normal 1754
was displayed for a sample size of 173.
Qwerty 1756

Touchscreen 1681

Camera Connectivity

2 MP 1941 GPRS 2122

3.2 MP 2119 GPRS + WiFi 1944

5+ MP 1130 GPRS+WiFi+3G 1124

Source: SurveyAnalytics
 Result & Analysis
Key Calculation variables
For Discrete Choice conjoint, the engine keeps track of the number of
times a particular Attribute Level was displayed. It also tracks how many
times a particular Level was "selected", i.e. it was part of the concept that
was chosen by the respondent.
Utility of a particular level is then defined as : -
(Number of times Attribute Level is Selected) / (Number of times
Attribute Level is Displayed)

Average Utilities
The individual utilities are added up and then divided by the count. This gives us the average
utility for each of the Levels.
Relative Importance
For each Attribute, the difference between the highest and the lowest average utility is
calculated. This value divided by the total across all the attributes is the relative importance.
 Result & Analysis
Average utility of Price

4-8 K 0.26

9-12 K 0.41

13-16 K 0.32

Rs. 9000-12,000 was the most preferred price

band among the respondents
 Result & Analysis
Average utility of Input Interface

Normal 0.27

Qwerty 0.34

Touchscreen 0.39

Touchscreen was the was the most preferred Input

Interface among the respondents
 Result & Analysis
Average utility of Camera

2 MP 0.24

3.2 MP 0.35

5 or + MP 0.48

Respondents preferred mobile phones with higher

resolution cameras
 Result & Analysis
Average utility of Connectivity

0.178

GPRS+W... 0.370

GPRS+WiF... 0.565

Respondents preferred mobile phones with more

options of connectivity
 Result & Analysis
Relative Importance of Attributes
42.80 %

27.10 %

17.00 %
13.10%

Price Input Interface Camera Connectivity

Connectivity was the most important attribute followed

by Camera and Price
Conclusion
Best Profile Worst Profile
Attribute Level Attribute Level
Price (Rs.) 9-12 K Price (Rs.) 4-8 K
Input Interface Touchscreen Input Interface Normal
Camera 5 or + MP Camera 2 MP
Connectivity GPRS + Wifi + 3G Connectivity GPRS only

Levels with highest and lowest average utility can be combined to

create Best & Worst profiles respectively
Thank you!