INTRODUCTION

India is the worlds 12th largest consumer market. It is projected that by 2025, it will be ahead of Germany and will become the fifth largest economy of the world. There is an explosive growth in almost all the areas of consumer goods and services. Communication that accounts for 2 percent of consumers spending today will be one of the fastest expanding categories with growth of about 13 percent (McKinsey, 2007). Mobile telecommunication industry has shown a tremendous growth over the last few years and at present there are about twenty crore (1 crore = 10 million) subscribers of the mobile telecom services in the country. The market for the mobile handset is also growing with the growing demand for mobile telecom services. This demand will continue to grow in future also. India at present is the second largest market for mobile handsets (Indian Brand Equity Foundation, 2005). The growth in this sector has been improved due to liberalization of telecommunication laws and policies. The consumers of both rural and urban areas, from college - going students to mature elders, of almost all income groups have started using mobile telecom services. The growth is fastest in mobile services as compared to fixed lines where it is modest (The World Factbook, 2008). Some of the consumers particularly college - going students have to rely on their parents for the buying of products like mobile handset and automobile. This is so because large majority of such people are not economically independent till the age of 22-24 years. Therefore, they have to satisfy themselves with what their parents buy for them. But now-a-days, these people have become more able to influence their parents in buying the products of their choice. This is probably due to small family size of one or two children these days, where parents comply more with the requests of their children as compared to the past. The increasing competition between the telecom service providers has increased demand for both mobile telecom services as well as the handsets. According to Indian Brand Equity Foundation (2005), the mobile handset market, which was worth about $ 2 Billion two years ago, had shown a growth of 60% per annum. The GSM (Global System for Mobile Communications) handsets had 84% share

and CDMA (Code Division Multiple Access) handsets has 16% market share. There are various players in the GSM market. Nokia was leading the market with 59% market share Among the other players, the prominent are Sony Ericsson, Samsung, Motorola and LG. They are offering wide range of models for the users of different preferences. The manufacturers are introducing newer and newer models in quick succession of time. They are motivated to do so because Indian mobile subscribers are prepared to pay for upgrades, value-based services, and advanced models. The cut throat competition between manufacturers has forced manufacturers to reduce their costs and therefore, they are thinking of manufacturing handsets in India. The low wage rates will help manufacturers to reduce their costs (Indian Brand Equity Foundation, 2005). Besides this, the service providers and manufacturers are offering value added services to make up losses in revenues, which have resulted due to decrease in tariff rates. Thus mobile value added services has become an important element in the growth of mobile telephony in India. Mobile phones today have moved beyond their fundamental role of communications and have graduated to become an extension of the personality of the user. In spite of breeding of offers for content-rich mobile data services other than text messaging, the adoption of advanced services such as mobile phone payment, online mobile gaming and mobile email have yet to reach the noteworthy levels of usage in India. There is a discernible preference for mobile phones with color screens over those with black and white displays. Short Message Service (SMS) is very much popular and its importance is increasing further as the subscribers can now participate in large number of contests/polls etc. Consumers are also making wide use of handsets for clicking photographs, playing games, downloading icons/screensavers/logo/ring tones, sending cameraphone taken photos, and playing offline games with their mobile phones. And yet the consumers are expecting much more from their mobile phones. For many years now, service providers and telecom equipment manufacturers have been debating the convergence of fixed and mobile telecommunications. The debate that was started on cost benefits has turned into a commercially viable option for

service providers. Mobile service providers, who were once competing fiercely with fixed-line operators, are now facing stiff competition from alternative technologies. Their revenue stream fuelled by voice minutes is rapidly declining not because consumers are making less calls, but because alternative technologies are providing voice services at very competitive rates. As market is driven by consumers demands for high-quality voice services at lower prices, the service and equipment providers have to work closely to develop new innovations. India is the second-fastest growing major economy after China. There is an increasing emphasis on consumption and infrastructure development. The growing economy has created large number of employment opportunities and consequently, the spending power of an average Indian has increased than ever before. This has resulted in higher disposable incomes and faster acceptance of new technologies with a willingness to pay for these.

RESEARCH METHODOLOGY
1.Research Objective
To find out considerations that a post graduate student makes when buying a
mobile phone handset.

2.Research Design
Research design adopted for this project is Exploratory.

3.Data collection Method

(a) Primary Data:-

Survey method was used for primary data collection. Face-to-face interviews using structured questionnaire as research instrument Type of questionnaire: Open ended and closed ended. (b) Secondary Data:-

Internet.

4.Sampling detail : Target population: The population for this research study consists of the post
graduate MBA students of Lucknow city.

Sampling unit: In this study the sampling unit is distributor outlet. Sample size: 30 students.

5.Scaling detail : Questions were on likert scale and nominal scales.

KEY PARAMETERS ANALYSED

1. MOBILE HANDSETS USED

2. SOURCES OF INFORMATION 3. PURCHASE DECISIONS 4. IMPORTANCE OF HANDSET CHARACTERISTICS

Sex

13%

male

87%

The sample consists of 87%males and 13% females.

Educational Qualification

Undergraduate

27%

Graduate Post Graduate

73%

Other

The sample has 73% graduate and 27% postgraduate students.

Family Income

17%

20%
Up to Rs 25000

Rs25000 to Rs.50000
Rs. 50000 and above

63%

The majority of the population falls in the Rs. 25000 to Rs. 50000 income bracket. This is the income level of a middle class Indian family. However 20% of the population has income below Rs. 25000 and the remaining 17% above Rs. 50000.

Do you have a mobile phone

yes no

100% The entire population owns a mobile phone.

Which mobile phone do you use

7% 3% 10% 7% 10% 30%
Nokia Samsung Sony LG Motorola HTC Blackberry Micro max

33%

We can see that more than 60% of the total population has either a Nokia (33%) or a Samsung (30%) phone. The remaining population has handsets such as Sony, HTC, LG, Micromax and Blackberry.

Sources You Used To Purchase Your Mobile Phones

3% 7% 27%
Newspaper TV

Internet
Retailer Magazines Friends

17%

46%

Almost half of the total population used internet as a source of information for purchasing mobiles. Opinion of friends was also identified as a major source of information. Almost one-fifth of the total population also used the retailer as a sorce of information.

Surprisingly television was not regarded as a good source of information by the students and only a small percentage(7%) of the total population used it .

Who helped you to make a decision to purchase a mobile phone 3%

10%

Self Decision Friends

Family
Retailer

30%

57%

Other

For most of the respondents the decision to buy a particular mobile phone was a self decision. However friends also appear to play an important role in influencing the decision of the

purchaser. Family and retailers also influence the decision but rarely.

IMPORTANCE OF EACH OF THE CHARACTERISTICS

Price
3% 10% 43% 44%

Ext Unimp unimp neutral

Imp
Ext Imp

Price is a very important factor for students in purchasing a mobile phone. Almost 90% of the total population considers it to be important. Out of the remaining 10% are neutral to the price and 3% consider it unimportant.

Quality
4% 3%
Ext Unimp

23%

unimp neutral Imp

70%

Ext Imp

Quality of the phone is also a very important consideration for 93% of the population. The rest consider it to be neutral or unimportant.

Style
3% 7% 40% 13%
Ext Unimp
unimp neutral Imp Ext Imp

37%

Style is also an important factor but less than price and quality of the phone. Here only 70 % of the total population considers it to be important as compared to almost 90 % of the population considering price and quality to be important.

13% of the population is neutral about the price and 10 % consider it to be unimportant.

Functions
3% 3% 17% 50% 27%
Ext Unimp unimp neutral Imp Ext Imp

Functions available in a mobile handset are also important for 77% percent of the population but again it is lower in importance as compared to price and quality. It should be noted that more than one-fifth of the total population considers functions to be not so important when purchasing a

mobile phone.

Brand
6% 43%

7%
Ext Unimp

17%

unimp neutral Imp Ext Imp

27%

The brand of the mobile phone is also important for 70 % of the population with 17% neutral towards it and 13 % considering it to be unimportant. Here again price and quality dominate the brand in terms of importance.

Would you recommend this mobile phone to a friend?

17%
yes

no

83%

It can be seen that a good 80% of the total population are happy with their mobile phones and would recommend it to their friends.