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

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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

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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

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Table of Contents

Chapter No.

Particulars

Page no.

1 2 3 4 5 6

Introduction Review of Literature Research Methodology Data Analysis and Interpretation Results and Findings Conclusion and Summary Appendix Bibliography

1-10 11-13 14-16 17-30 31-32 33 34-35

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List of tables

S.No.
Table 1.1 Table 4.1 Table 4.2 Table 4.3 Table 4.4 Table 4.5 Table 4.6 Table 4.7 Table 4.8 Table 4.9 Table 4.10 Table 4.11 Table 4.12 Table 4.13

Particulars
Showing market share of major global players of mobile phones in 2008 Showing number of respondents owing a mobile phone Showing different brands of mobiles phones used by the respondents Showing respondents using same brand as they had earlier Showing reasons for using mobile phone by the respondents Showing the factors considered by respondent while purchasing a mobile hand set Showing the sources which influenced the buying decision of the respondents Showing different purposes for which mobile is used by the respondents Showing ranking of various features of mobile handsets by the respondents according to their preferences Showing range of price that respondents like to spend on mobile hand set Showing features preferred in a particular brand of mobile phone Showing agreement level of the respondents on various factors influencing purchase decision Showing satisfaction level of the respondents Showing additional features required by the respondents in their mobile handsets

Page No.
1o 24 25 26 27 28 29 30 31 32 33 34 35 36

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List of Figures
S.No.
Figure 1.1 Figure 1.2 Figure 4.1 Figure 4.2 Figure 4.3 Figure 4.4 Figure 4.5 Figure 4.6 Figure 4.7 Figure 4.8 Figure 4.9 Figure4 .10 Figure4 .11 Figure4 .12 Figure 4.13

Particulars
India’s mobile subscriber base market share in percentage of the mobile phone players in number of respondents owing a mobile phone India different brands of mobiles phones used by the respondents respondents using same brand as they had earlier reasons for using mobile phone by the respondents factors considered by respondent while purchasing a mobile hand set sources which influenced the buying decision of the respondents different purposes for which mobile is used by the respondents ranking of various features of mobile handsets by the respondents according to their preferences range of price that respondents like to spend on mobile hand set features preferred in a particular brand of mobile phone agreement level of the respondents on various factors influencing purchase decision Satisfaction level of respondents additional features required by the respondents in their mobile handsets

Page No.
13 14 24 25 26 27 28 29 30 31 32 33 34 35 36

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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 Verylarge-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.

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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

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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 Nokia Samsung Motorola Sony Ericcson LG BenQ Mobile Others Total 2008 Market Share (%) 39 15.6 12.7 9.1 7.7 2.4 13.5 100.0

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

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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.

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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).

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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

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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 %
0.02

8 15

5

1.8

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

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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.

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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.

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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."

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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. GSMbased 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."

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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.

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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.

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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

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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. ii. Some respondents were reluctant to give the information, so their responses may be biased. 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. iv. Sample may not be the true representative of the universe. Study was conducted in Ludhiana only. So the results of the study may not be applicable in other areas.

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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 No Total 100 0 100 % 100 0 100

Fig.4.1

100 90 80 70
perc entage

60 50 40 30 20 10 0 yes no

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Table4.2: Showing different brands of mobiles phones used by the respondents Brands Nokia Sony Ericsson Motorola Samsung others Total No. of respondents 69 10 13 2 6 100 % 69 10 13 2 6 100

Fig.4.2

2% 13%

6%

nokia sony ericsson 10% motorola samsung 69% others

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

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RESPONSES Yes No Total

NO. OF RESPONDENTS 64 36 100

PERCENTAGE 64 36 100

Table4.3

70 60 50

percentage

40 30 20 10 0 yes responses no

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

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Reasons Business transactions Status Don’t have landline Others Total Fig.4.4

No. of Respondents 38 37 5 20 100

% 38 37 5 20 100

20% 5% 38% business tran 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

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Factors Price Appearance Brand Features Easy to carry/Weight Total Fig.4.5

No. of responses 47 48 48 64 36 243

Average 0.19 0.20 0.20 0.26 0.15 1

0.15

0.19

Price Appearance Brand 0.2 Features Easy to carry/Weight

0.26 0.2

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 Friend No. of respondents 27 % 27

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Family member Advertisement Dealer Total Fig.4.6

37 30 6 100

37 30 6 100

40 35 30 percentage 25 20 15 10 5 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 Receiving/making calls SMS/MMS Games E-mail/Internet No. of Respondents 100 70 25 12 Average 0.34 0.23 0.08 0.04

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Music Camera Total Fig.4.7

50 41 298

0.17 0.14 1

0.4 0.35 0.3 average 0.25 0.2 0.15 0.1 0.05
ca l ls

0.34

0.23 0.17 0.14 0.08 0.04

am es E -m ai l/I nt er ne

S /M M S

t

0
ki n

M us ic

G

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 Bluetooth MP3 Player Camera Data Storage Capacity GPRS Personal Info. Management Mean scores 3.29 3.32 3.23 3.13 4.87 3.16 30 Rank 5th 4th 3rd 1st 6th 2nd

R

ec iv in g/

m a

S M

C

am er

g

a

Fig.4.8
4.87 3.29 3.32 3.23 3.13 3.16

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

mean scores

bluetooth

mp3 player

camera

data GPRS prsnl info 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 Below 5000 5000-15000 15000-25000 Above 25000 Total Fig. 4.9 No. of respondents 11 59 21 9 100 % 11 59 21 9 100

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9% 21%

11% 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.

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Table 4.10: showing features preferred in a particular brand of mobile phone Camera Nokia Motorola Sony Ericsson Samsung Total 69 17 14 0 100 Bluetooth Music Player Memory 75 10 15 0 100

No. of respondents 62 29 26 12 0 100 17 54 0 100

Fig. 4.10

80 no.of respondents 70 60 50 40 30 20 10 0 camera bluetooth music player memory features nokia motorola sony ericssson samsung

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.

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Table 4.11: Showing agreement level of the respondents on various factors influencing purchase decision Strongly Disagree Factors Repairable Availability of spare parts Proximity to service provider Promotional activities Fig. 4.11
1.2 1 mean scores 0.8 0.61 0.6 0.4 0.2 0 Repairable Availability of spare parts Proximity to service provider Promotional activities 0.49 1.12 0.89

Disagree -1 -1(3) -1(6) -1(3) -1(15)

Neutral 0 0(13) 0(20) 0(41) 0(33)

Agree 1 1(41) 1(39) 1(40) 1(36)

Strongly Agree 2 2(40) 2(31) 2(14) 2(15)

Mean Score

-2 -2(3) -2(3) -2(2) -2(1)

112/100=1.12 89/100=0.89 61/100=0.61 49/100=0.49

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.

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Table 4.12: Showing satisfaction level of the respondents No. of Respondents Yes No Total 93 7 100 % 93 7 100

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.

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Table 4.13: Showing additional features required by the respondents in their mobile handsets Features WiFi TV Video Conferencing Windows Total Fig. 4.13 No. of responses 38 34 37 39 148 Average 0.26 0.23 0.25 0.26 1

0.26

0.26

WiFi TV Video Conferencing Windows

0.25

0.23

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

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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.

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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
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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

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QUESTIONNAIRE

Q1) Do you have a mobile phone? YES NO

Q2) a) Which brand of mobile hand set do you have? (Please Tick) i. ii. iii. iv. v. Nokia Sony Ericsson Motorola Samsung 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. ii. iii. iv. Advanced technology New features Inefficiency in earlier mobile Any other( please specify) _______ _______ _______ _______

Q4) Why have you bought the mobile? (Tick one option) i. ii. iii. iv. Business transactions Status Don’t have landline phone Any other (please specify) ________ ________ ________ ________

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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. ii. iii. iv. v. Friend Family member Advertisement Dealer Any other (please specify) _______ _______ _______ _______ _______

Q7) For which different purposes do you use your mobile? (can tick more than one option) i. ii. iii. iv. v. vi. Receiving / making calls SMS/ MMS Games E-Mail/ Internet Music 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. ii. iii. iv. v. vi. Bluetooth MP3 Player/ Video Player Camera Data Storage Capacity GPRS Personal information management ( notes,to-do list,contacts,etc.) _________ _________ _________ _________ _________ _________

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Q9) Tick the range of price you would like to spend on a mobile handset? i. ii. iii. iv. Below 5000 5000- 15000 15000- 25000 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?

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

Disagree

Neutral

Agree

Strongly Agree

Q 13) a) Are you satisfied with your existing mobile hand set? YES 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. ii. iii. iv. WiFi TV Video Conferencing Windows ________ ________ ________ ________ NO

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

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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/article8488globalmobilehandsetshipmentgrew17yoy-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-handsetsales-pick-up-after-drought/rssarticleshow/4180130.cms- 40k- -Cached- Similar Pages http://www.dailyindia.com/show/121503.php/India-to-be-second-largest-mobile-marketby-2010:-Nokia http://www.zinnov.com/presentation/Mobile_VAS.pdf

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