A FINAL RESEARCH PROJECT On

“Study of Consumer buying behaviour Towards Smart Phone “

A report submitted in partial fulfilment of the requirements of PGDM (2010-12)

Under the guidance of PROF. PUNEET RAI
(PROFESSOR)

Submitted By
VIKRANT AWASTHI ROLL NO. 1421 PGDM 2010-12

TO WHOM SO EVER IT MAY CONCERN

This is to certify that “Mr. Vikrant Awasthi” student of full time PGDM course (2010-12) at Dr. Gaur Hari Singhania Institute of Management & Research with Marketing as major and Information Technology as minor has completed satisfactorily final research project of “Study of Consumer buying Behaviour Towards Smart Phone” under the guidance of the undersigned in partial fulfilment of PGDM-FULL TIME course.

Prof. Puneet Rai Associate Professor GHS-IMR

DECLARATION

I hereby declare that this Project Report entitled “Study of Consumer buying Behaviour Towards Smart Phone” in the partial fulfilment of the requirement of Post Graduate Diploma of Business Management (PGDM) of Dr. Gaur Hari Singhania Institute of Management & Research is based on primary & secondary data collected by me from various departments, books, magazines and websites under guidance of my faculty guide Prof. Puneet Rai. It is my own work to the best of my knowledge & contains no material written by any other person.

DATE: 18/01/2012

VIKRANT - AWASTHI 1421 GHS-IMR

His insights and remarks were of great value.ACKNOWLEDGEMENT I would like to express my gratitude to all those who gave me the possibility to complete this thesis. Especially. their love and blessing enabled me to complete this work. VIKRANT-AWASTHI . I would like to thank my college authorities and I am particularly appreciative to Prof. as well as for his guidance and valuable assistance from the offset of this project. support and valuable hints. I want to thank all other trainees for all their help. I would like to give my special thanks to my parents. Puneet Rai who gave his time to assist with my requests for information.

Table of Content Topic 1. Bibliography 8. Research Objectives 4. Conclusion & Recommendation 7. Appendix . Analysis & Interpretation 6. Executive summary 2. Research Methodology 5. Introduction o Industry overview 3.

. Management trainees are trained to manage the matters of the organization in a planed and systematic manner. It also helps to acclimatize the student with the organization and the industry in which this organization exists.PREFACE Final Research Project is a part of management studies which is very important for each and every management student. This training has helped us a lot in sharpening our knowledge and has also made us aware about the happenings of the business world. The purpose of the Project is to enhance the knowledge and skills of the student and generate scope for the implementation of his/her acquired skills and knowledge during his/her PGDM. The main objective of this study was the “Study of Consumer buying Behaviour towards smart phone”. The objective of the summer training is to see how an organization works and gain knowledge of the happenings in the business world. This learning experience has increased our competence which would help us in the management of corporate sector.

The Second part consists of research and their analysis. The study was carried out in Kanpur in at various outlets and major markets of the city. The data collected have been well organized and presented. At the same time it gave me enough scope to implement my analytical ability.EXECUTIVE SUMMARY This project has been a great learning experience for me. Hope the research findings and conclusions will be of use. collected through a survey done on 75 people. . Here we talk about the various types of factors affecting smart phones purchase and also give an overview of consumer buying behaviour. The basic thing that i analyzed from data collected is that there is great variation in the perception of consumers towards smart phones. The language has been kept simple so that even a layman could understand. The Third part consists of conclusion and recommendation which is actually drawn apart from the result of survey done on 75 peoples. The first part of the project gives the overview of smart phone brands. All the topics have been covered in a very systematic way.

Globally. the iPhone . Nokia. Toronto Star. RIM holds 15% of the smart phone market share. determine which customers to focus marketing efforts on. Although this is a rather substantial portion of the available market. as to what to choose. Apple. In 2010. Additionally. research shows that Apple smart phones seized 13.8 billion. Though it is a matter of personal choice and preference. 2009). and both has a huge number of fan following and users.Introduction Apple EY COMPETITORS ▪ Strong competitor in the prosumer customer segment – 15% of current smart phone market share ▪ Advantages: Brand awareness and variety of application downloads ▪ Disadvantages: Price point and limited to AT&T GSM network Blackberry Low cost OS with open development ▪ Advantages: Scalable and flexible – functions on a variety of smart phones ▪ Disadvantages: Low adoption and low number of available apps (both are rapidly increasing). Smart phone competitors consist of: High Tech Computer (HTC).3% of the global market share as their 3GB iphone is growing in popularity selling for $199 with a service contract (Data monitor. Samsung and Palm. Blackberry and Apple are the two major smart phone manufacturers of the world. Google’s Android. In this study we are going to analyse customer preferences and characteristics in order to better define customer segments. Apple’s smart phone net sales for the fiscal year end September 2009 was $11. RIM faces threats from close smart phone competitors and is constantly rivalling to stay on top. 2009. and what features are most important to those customers.

(TAIEX: 2498) produces powerful handsets that continually push the boundaries of innovation to provide true mobile freedom. Business Week ranked HTC as the second best performing technology company in Asia in 2007 as well as giving the company the number 3 spot in its Global listing in 2006. HTC is one of the fastest-growing companies in the mobile sector and has achieved remarkable recognition over the past couple of years. HT Cho. This was followed in early 2007 with the introduction of the HTC Shift. since June 2006. wireless anytime and Internet on the go. HTC made its name as the company behind many of the most popular operatorbranded devices on the market. Founded in 1997 by Cher Wang. HTC launched a powerful new device with a groundbreaking form factor: the HTC Advantage.000 applications providing higher utility for customers. President and CEO. . It has established unique partnerships with key mobile brands. under its own HTC brand. as the device is able to run upwards of 85.provides a competitive advantage. The HTC Advantage is the world’s most powerful office.0 Smartphone (2006) First Tri-band UMTS PDA First intuitive touch screen to allow finger tip navigation (June 2007) In early 2006. It has also brought products to market with industry leading OEM partners and. Products & Innovation HTC is known for its innovation. including the leading five operators in Europe. Chairwoman. and many fast-growing Asian operators. HTC: HTC Corp. and Peter Chou.   First Microsoft Windows 5. Director of the Board & Chairman of HTC Foundation. the top four in the US. Since launching its own brand 18 months ago the company has introduced dozens of HTC-branded products around the world. boasting a 5" screen and full detachable QWERTY keyboard. It is constantly broadening the range of devices it offers – introducing devices to support specific applications and new form factors that meet the increasingly diverse needs of its customers and partners. HTC's product portfolio offers easy-to-use solutions that embrace the full range of mobile multimedia resources.

including flash memory and non-memory. contacts and features in a simple finger flick. HTC launched the HTC Touch™ in June 2007 as the result of extensive R&D and the conviction that fingertip control would enable more intuitive navigation. DRAM and SRAM. mobile phones. custom semiconductors. and has followed its mission of making life better for consumers around the world. TFT-LCDs. Today Samsung's innovative and top quality products and processes are world recognized. and constant innovation. semiconductors. we see every challenge as an opportunity and believe we are perfectly positioned as one of the world's recognized leaders in the digital technology industry. The digital age has brought revolutionary change – and opportunity – to global business. Looking forward. Korea. grew its revenue and market share. This timeline captures the major milestones in Samsung's history. SAMSUNG: From its inception as a small export business in Taegu. competitive products. providing more freedom in the way they live their lives. Our commitment to being the world's best has won us the No. and more. we're making historic advances in research and development of our overall semiconductor line. . and system integration. monitors and CDMA mobile phones. as well as producing best-in-class LCDs. The groundbreaking HTC Touch™ is equipped with TouchFLO™ so that consumers just sweep their finger across the screen to get access to the most commonly used content. HTC aims to continually develop smart new devices that empower users on the go. At Samsung. Samsung has grown to become one of the world's leading electronics companies. digital appliances.Equipped with Windows Vista this device includes a brilliant 7-inch widescreen touch display and a 40 gigabyte hard drive. specializing in digital appliances and media. memory.1 global market share for 13 of our products. including semiconductors. and Samsung has responded with advanced techno-logies. showing how the company expanded its product lines and reach.

OBJECTIVE  To study consumer motivation for buying a smart phone. Hypothesis Hypothesis-1: Ho: There is no difference between preferences for features of smart phones on the basis of gender. H1: There is an association between consumer method of buying and future purchase options for buying smart phone.  To analyze the consumer preference for brands of smart phone. H1: There is a difference between preferences for features of smart phones on the basis of gender. H1: There is association between gender and consumer method of buying a Smart phone. Hypothesis-2: Ho: There is no association between gender and consumer method of buying a Smart phone.  To determine whether there is a significant difference between preferences for features of smart phones on the basis of gender.  To identify the most effective medium for advertisement of smart phone. Hypothesis 3: Ho: There is no association between consumer method of buying and future purchase options for buying smart phone. .

a descriptive study may be necessary. In this I did descriptive research also because I want to know the consumer buying behaviour and preferences towards smart phone. When the researcher is interested in knowing the characteristics of certain groups such as. Descriptive research: They are well structured. structure of investigation conceived so as to obtain answer to research question. The two types of research are as follows:   Exploratory research: It is to generate new ideas. a high degree of scientific skill on the part of the demanding a high degree of scientific skill on the part of the researcher. It can be complex. The research design. . which was adopted for the study was descriptive in nature. It can be taken in certain circumstances. It is the specification of methods and procedures for acquiring the information needed. profession. gender.Research Methodology Research Design: It is the plan. It is concerned with:    Overall operational pattern Framework of the project Stipulates what information is needed The first step that undertakes in the report was the selection of research.

▪ Survey Length .Primary Data The descriptive nature of research necessitated collection of primary data from smart phone users through survey. direct questions and open-ended question. Secondary Data ▪ RIM Marketing Presentation.Questions. . could have been larger.Sampling was not a perfect representation. SURVEY LIMITATIONS ▪ Time Constraint . Personal Interview method will be used and interview would be conducted through structure questionnaire. would’ve liked more to capture more critical data but there were concerns about the impact on participation. ▪ websites RESEARCH INSTRUMENTS I prepared a structured questionnaire to collect the data and it consisted of Multiple-choice questions.

.   Sample Size: The sample size considered was 75 for consumers.Research Instruments I prepared a structured questionnaire to collect the data and it consisted of Multiple-choice questions. Method of Sampling: Convenience sampling. The main function of the questionnaire was to know the consumer behavior towards smart phone. Sample Plan: A part of a population or a subset from a set of units which is provided by some process or other.

DATA INTERPRETATION AND ANALYSIS .

0 Valid Percent 36.0 100.0 100.0 48.0 8.0 8.0 48.0 8.0 92.0 Reasonforpurchase 40 30 Frequency 20 10 0 Required for Work Features Status Symbol Multitasking Reasonforpurchase Interpretation: 48% of consumer said that the reason for purchase of a smart phone is its features followed by its utility for work (36%).0 100.0 Reasonforpurchase Cumulative Percent 36.8800 Valid Required for Work Features Status Symbol Reasonforpurchase Multitasking Total Frequency 27 36 6 6 75 Percent 36. . Motivation Factor For Buying a Smart phone: Statistics N Mean Valid Missing 75 0 1.0 84.1).0 8.

3 100.3 52.0 75 0 2.7%).3%) and HTC (22.7 100.7 22.0 74.0 Valid Percent 41.3 100.Most Preferred Brand: Statistics Mostpreferredbrand N Valid Missing Mean Mostpreferredbrand Cumulative Percent 41.0 Mostprefferedbrand 40 30 Frequency 20 10 0 Apple Blackberry HTC Samsung Mostprefferedbrand Interpretation: Apple (41.3200 Valid Apple Blackberry HTC Samsung Total Frequency 31 8 17 19 75 Percent 41. .7 25.7 25.3%) is the most preferred brand by consumers followed by Samsung (25.3 10.7 22.2).3 10.

3 16. Features Preferred while purchase of a smart phone: 1).3 20.3 16.3 21.3 20.7 80.4533 Frequency Valid Least Preferred Somewhat Preferred Neutral Preferred Most Preferred Total 4 16 12 28 15 75 Percent 5.0 100.0 100.0 37.0 100.3).3 21.0 37.3% of consumer prefers it somewhat.3 26.0 75 0 3. .0 Valid Percent 5.Touch Screen Statistics Touch Screen N Valid Missing Mean Touch Screen Cumulative Percent 5.3 % of consumer said that touch screen is preferred as a feature while 21.7 42.0 TouchScreen 30 20 Frequency 10 0 Least Preferred Somewhat Preferred Neutral Preferred Most Preferred TouchScreen Interpretation: 37.

7 21.7 25.0 Valid Percent 22.3 100.7% of consumer preferred Wifi and 25.0 Wifi 25 20 Frequency 15 10 5 0 Somewhat Preferred Neutral Preferred Most Preferred Wifi Interpretation: 30.3 30.2).7 44.Wi Fi Statistics Wifi N Mean Valid Missing 75 0 3.7 100.7 21.7 25. .0 Valid Somewhat Preferred Neutral Preferred Most Preferred Total Frequency 17 16 23 19 75 Percent 22.3 100.3 30.3% of consumer said it is most preferred for them.5867 Wifi Cumulative Percent 22.0 74.

3 18.0 100. .7 45.3 26.3).3 1.7 48.3 18.0 100.0 Apps 40 30 Frequency 20 10 0 Least Preferred Somewhat Preferred Neutral Preferred Most Preferred Apps Interpretation: 48% of consumers said that Apps is the most preferred feature for them.0 Valid Least Preferred Somewhat Preferred Neutral Preferred Most Preferred Total Frequency 19 1 14 5 36 75 Percent 25.7 6.0 100.5067 Apps Cumulative Percent 25.0 Valid Percent 25.3 52.7 48.7 6.3 1.Apps: Statistics Apps N Mean Valid Missing 75 0 3.

3 8.0 GPS 50 40 Frequency 30 20 10 0 Least Preferred Somewhat Preferred neutral Preferred GPS Interpretation: 57. .3% of consumer said that they prefer the GPS technology the least in smart phone and 29.S: Statistics GPS N Mean Valid Missing 75 0 1.0 Valid Percent 57.3 100.3 8.4).3 29.3 100.0 5.3% of consumer prefer it somewhat.7 94.G.3 86.3 29.6133 GPS Frequency Valid Least Preferred Somewhat Preferred neutral Preferred Total 43 22 6 4 75 Percent 57.0 Cumulative Percent 57.0 5.P.7 100.

7 36. Information Source: (a).7 73.0 InfoSource 30 20 Frequency 10 0 In store Promo Display Internet retailer/ review/ technology websites Television/ Newspaper Word of mouth InfoSource Interpretation: Mostly consumer collects the information from internet websites (36%) and then they trust word of mouth (27%).6133 Info Source Cumulative Percent 14. .7 26.0 22.0 22.7 26.4).7 100.7 36.3 100.Where did you look for the information before purchasing a smart phone? Statistics Info Source N Valid Missing Mean 75 0 2.0 Valid Percent 14.0 Valid In store Promo Display Internet retailer/ review/ technology websites Television/ Newspaper Word of mouth Total Frequency 11 27 17 20 75 Percent 14.7 100.7 50.

3 % of consumer consulted with someone tech savvy.3 100.3 22.3 66.0 Valid Percent 29.7 10. Did you take advice from someone else? Statistics Advice N Mean Valid Missing 75 0 2.0 Advice 30 20 Frequency 10 0 Someone Tech Savvy Someone Recently Bought the same Someone already used Can't Say Advice Interpretation: 37.7 100.1467 Advice Cumulative Percent 29.3 37.3 22.3 37.7 89.3 % of consumer said they had consulted with someone recently bought the same while 29. .(b).0 Valid Someone Tech Savvy Someone Recently Bought the same Someone already used Can't Say Total Frequency 22 28 17 8 75 Percent 29.7 10.7 100.

0 68. .0 Cumulative Percent 32.0 100. Future Purchase and Mode of Purchase of Smart phone (a).Statistics MethodOfBuying N Valid Missing Mean 75 0 1.0 100.0 100.0 MethodOfBuying 60 50 40 Frequency 30 20 10 0 Search options with in a particular brand Go for different brand MethodOfBuying Interpretation: For future purchase 68% of consumers said they will go for different brands and 32% search options within a particular brand.0 Valid Percent 32.0 68.(5).6800 MethodOfBuying Frequency Valid Search options with in a particular brand Go for different brand Total 24 51 75 Percent 32.

7 100. . Future Purchase Statistics Future Purchase N Valid Missing Mean Future Purchase Cumulative Percent 38.3 21.0 FuturePurchase 30 20 Frequency 10 0 Apple Blackberry HTC Samsung FuturePurchase Interpretation: For purchase of smart phone in future consumer are more interested in brands like Apple followed by HTC and Samsung.3 100.7 52.3 21.7 13.0 Valid Percent 38.7 13.7 100.3600 Valid Apple Blackberry HTC Samsung Total Frequency 29 10 16 20 75 Percent 38.b).0 73.3 26.0 75 0 2.3 26.

Most Effective Advertising Media Statistics Effective advertising N Valid Missing Mean Effective advertising Cumulative Percent 21.0 Effectiveadvertising 50 40 Frequency 30 20 10 0 Television Newspaper Magazine Internet Websites Effectiveadvertising Interpretation: The most effective medium for advertisement as per consumers view is internet websites (60%) followed by T.0 Valid Percent 21. .3 9.6).V (21%).0 100.3 30.0 100.0800 Frequency Valid Television Newspaper Magazine Internet Websites Total 16 7 7 45 75 Percent 21.7 40.0 75 0 3.0 100.3 60.3 60.3 9.3 9.3 9.

Interpretation: Here sig.05 so null hypothesis is accepted.902 . .902 1.Hypothesis1 Ho: There is no association between gender and consumer method of buying a Smart phone. gender * MethodOfBuying Cross tabulation Count gender Total Male Female MethodOfBuying Search options Go for with in a different particular brand brand 19 41 5 24 10 51 Total Search options with in a particular brand 60 15 75 Chi-Square Tests Value . so there is no dependency between gender and brand loyalty for Smart phone.000 .80.901 1. The minimum expected count is 4.000 . H1: There is association between gender and consumer method of buying a Smart phone.015(b) .015 Df 1 1 1 Asymp. (2-sided) Exact Sig.Value is more than . (1-sided) Pearson Chi-Square Continuity Correction(a) Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association N of Valid Cases a Computed only for a 2x2 table b 1 cells (25. (2-sided) .015 75 1 .000 .0%) have expected count less than 5. Sig. P.564 Exact Sig.

MethodOfBuying * Future Purchase Cross tabulation Count Future Purchase Apple MethodOfBuying Search options with in a particular brand Go for different brand Total Chi-Square Tests Asymp.288 9 20 29 Blackberry 2 8 10 HTC 3 13 16 Samsung 10 10 20 Total Apple 24 51 75 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 4. The minimum expected count is 3.Value is more than . so there is no association between consumer method of buying and future purchase options for buying smart phone.05 so null hypothesis is accepted.20.176 . Sig.943(a) 4. P.130 75 df a 1 cells (12.5%) have expected count less than 5. H1: There is an association between consumer method of buying and future purchase options for buying smart phone.Hypothesis 2 Ho: There is no association between consumer method of buying and future purchase options for buying smart phone. Interpretation: Here sig.177 .930 1. (2-sided) 3 3 1 . .

5333 1.951 -.49634 .5833 1.48580 -1.217 .09297 .463 21.5000 3.92230 .283 .069 73 .168 73 .53864 -1.21386 1.05086 .32038 -.626 1.28229 1.15000 .468 73 .246 .40000 . Error Mean .09884 .116 -.48852 . Group Statistics gender Male Female Wifi Apps GPS Male Female Male Female Male Female N 60 15 60 15 60 15 60 15 Mean 3.15964 1.29059 .78852 .000 .34234 -.82280 2.76561 1.03333 .15000 .20925 . Error Difference Upper Lower .274 .14280 .30026 Touch Screen Independent Samples Test Levene's Test for Equality of Variances t-test for Equality of Means 95% Confidence Interval of the Difference Lower F Lower TouchScree n Equal variances assumed Equal variances not assumed Wifi Equal variances assumed Equal variances not assumed Apps Equal variances assumed Equal variances not Sig.Hypothesis 3 Ho: There is no difference between preferences for features of smart phones on the basis of gender.12546 1.945 -.16292 Std.52280 .10610 1.93486 -. Deviation 1.4667 3.25086 1.068 .32378 -.15671 . Upper t Lower df Upper Sig.03333 .648 .994 . H1: There is a difference between preferences for features of smart phones on the basis of gender.31540 -.6167 3.1333 3.40000 .06010 1.08229 1.7333 Std.268 24.5333 3.239 .641 .062 19. (2tailed) Lower Mean Difference Upper Std.00152 .27372 .62084 1.526 .

641 -.475 17.546 -.05 so null hypothesis is accepted so there is no difference between preferences for features of smart phones on the basis of gender.81650 .assumed GPS Equal variances assumed Equal variances not assumed 6.607 73 .64261 .011 -. P.151 .15000 .15000 .24717 -. .31611 -.51650 Interpretation: We have checked preference for all features and one by one sig.Value of all variable is more than .838 .34261 -.

 Mostly consumer wants to opt for different smart phone brands instead of looking for same brand.  Internet retailers / review / technology websites is an important source of information to consumer.  There is no difference between preferences for features of smart phones on the basis of gender. So consumer is not brand loyal in case of smart phone.CONCLUSION:  Most preferred brand in smart phone market is Apple followed by Samsung and HTC.  There is no association between gender and brand loyalty for Smart phone.  The main reason for smart phone purchase is its features. .  The most effective medium of advertisement of smart phone is internet websites.

Smart phone companies should focus more on advertisements on internet websites. so smart phone brands must maintain their good will and increase services. As the consumer prefers word of mouth or consulting someone tech savvy. . 2. 3. As consumer wants more and more features so smart phone manufacturers should increase the number of features.RECOMMENDATION: 1.

wikipedia.apple. 3. 5. 7. www.htc. 2. 4.samsung.com www.blackberry.scribd. 6.com www.com .com www.Bibliography Books Referred    Marketing Management Marketing Research Business Statistic - by Phillip Kotler by Naresh Malhotra by Ken Black Website Referred: 1.com www.com www.com www.google.

Apple. What one reason makes you purchase a smart phone? 1).Appendix Name-______________________ Mobile-_____________________ Q1.Most Preferred) Feature Least Preferred Somewhat Preferred Neutral Preferred Most Preferred . Samsung Q4.Multi Tasking. 4).Please tick as per your preference for feature you were looking while buying a smart phone? (1. 2). 3).Status symbol.Required for Work 2). Blackberry 3).Which brand of smart phone you prefer the most? 1). HTC 4).Least Preferred & 5. Q3.Features. Demographics:  Gender-_______  Age-____  Educational Level-_________  Profession-________________ Q2.

Which method of buying will you use for future purchase? 1). Search options with in a particular brand. 4). 2).Samsung 5).Internet retailers/ reviews / technology websites. Apple. 4).Go for different brand.Internet websites. someone having latest technological update. 2). Someone already used. 2). If in case you will buy a smart phone in future you will go for which brand? 1). (b). Q6. .Where did you look for the information before purchasing a smart phone? 1). (a). 3). Word of mouth (b). Which type of advertising do you feel is most effective for smart phones? 1). HTC 4).Magazine.Touch Screen Wi-Fi Apps GPS Q5.Cant say now. Q7). 3).Television / Newspaper. 2). someone recently bought the same. 3). Tick the appropriate option: (a).Newspaper. Blackberry 3).Television.In Store promo Display. 2). Did u take advice from someone else? 1).

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