A

PROJECT REPORT
ON

“FACTORS AFFECTING BRAND CHOICE OF

MOBILE PHONE HANDSETS”

Submitted In the Partial fulfillment of the Requirements

For the Award of the Degree Master of Business
Administration (MBA)

(2018-2019)

Submitted To Submitted By
Dr. Sapna Shakshi Vashist
Assistant Professor Roll No. 894
Reg. No. 1418220089
MBA 10th Semester

INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

MAHARSHI DAYANAND UNIVERSITY
ROHTAK - (124001)
 DECLARATION

I, Shakshi Vashist, student of Institute of Management Studies and Research, Maharshi

Dayanand University, Rohtak hereby declare that this Research work entitled "FACTORS
AFFECTING BRAND CHOICE OF MOBILE PHONE HANDSETS" has been completed
by me under the supervision of Dr. Sapna, IMSAR, Maharshi Dayanand University, Rohtak and
embodies the original piece of research work done by me and the same has not been copied,
reproduced and submitted ever by me to any other university or the institution. Reference to
other research works has been duly acknowledged.

Countersigned by:

(Supervisor Signature) (Student Signature)

 ACKNOWLEDGEMENT

Completion of this research project was possible with the support of several people. I would like

to convey my heartfelt thanks to all of them. Firstly, I would like to express my sincere gratitude

to my Research Guide Dr. Sapna, IMSAR, Maharshi Dayanand University, Rohtak, for the

continuous support for research, for her patience, motivation, and immense knowledge. She is

always made herself available to clarify my doubts even with her busy schedules. She has taught

me the methodology to carry out the research and providing invaluable guidance through this

research. Her guidance helped me in all the time of research and writing of this research project

and I consider it as a great opportunity to do my research project under her guidance and to learn

from his research expertise. I could not have imagined having a better advisor and mentor for my

study. Thank you Mam, for all your help and support.

I am also thankful to whole of the teaching and the non-teaching staff at IMSAR, Maharshi

Dayanand University, Rohtak, for facilitating the study.

My sincere gratitude is to all whom I might have missed inadversely for facilitating me directly

or indirectly. I also thankful to my parents and their love, prayers, caring and sacrifices for

educating me for my future and their support have been a great source of inspiration. Also, I

express my thanks to my friends for the keen interest shown to complete this research

successfully. Without their cooperation the work could not have been completed.

At last I am thankful to all the people who have supported me to complete the research work
directly or indirectly.

SHAKSHI VASHIST
 PREFACE

Modern marketing is something beyond a good product pricing it suitably and making it

available to the customers. Effective marketing is critical to the success of every organization

whether big or small. There is no denying the facts all that all industrial organization has profit

making objectives. We are exposed to marketing in almost everything we do. It involves large

number of activities such as marketing research, product planning and development, branding,

packaging, advertisement. Where management have healthy management skills, full of potential

and is also willing to take risk in order to serve its customer in a better way than its competitor

that company touches the Zenith of success. This healthy management comes only through the

practical exposure and experience.

Therefore, to cope with various industrial and organizational problems, market research is

necessary for finding out the customers and prospective customer and also to know the

preference of customer and market share.

For this purpose I have done my final year Project Report on the topic of “Factors affecting

Brand choice of Mobile Phone Handsets”. It gave me pleasure to work on such topic and also

to learn practical things.

For this particular purpose various Universities and Management institute are running

Management courses of which this project is part of study of curriculum and necessary to

prepare. It has proved very helpful in removing many serious doubts and has made able to accept

the challenges and opportunities.

 Table of Contents

I. Declaration

II. Certificate

III. Acknowledgement

IV. Preface

Table of content

Chapter 1: Company profile

 Information about product

 Abstract

 Introduction of the study

 Scope of the study

 Significance of the study

 Objective of the study

 Conceptualization of the study

 Focus of the problem

Chapter 2: Research Methodology

Chapter3: Data analysis and interpretation

Chapter 4: Findings , conclusion and suggestions

Chapter 5 : Limitation

Chapter 6: Annexure

Chapter 7: Bibliography
CHAPTER 1
 a
INTRODUCTION OF THE STUDY

Marketing to any layman would mean the selling of goods at different places. But
actually it is something more than “selling” which in turns is only a part of the former. It covers
all the activities that involve what to produce. How much to produce. What channels to adopt to
distribute the good to the final consumers and what advertising media to select. The modern
marketing concept makes customer at the centre-stage of organization efforts. The focus, within
the marketing concept to reach the target customer, sets the ball rolling for analyzing each of the
conditions of the target market. The first being to find out interest of such persons as would
become prospective customers. But since customer needs come first and then the organization
offers the product, as imperative of the marketing concept, customer’s willingness to buy cannot
be studied in the isolation of the interest of such prospects to satisfy a basic need from different
satisfiers. Customers’ needs recognition, their involvement level, the decision to buy and post –
purchase behavior. Every consumer is unique and this uniqueness is manifest in search,
purchasing, consuming, reacting, etc. Thus, consumer behavior must be properly understood by
marketers.
Ostrow and Smith have defined consumer behaviors as actions of consumers in the
marketplace and the underlying motives for those actions. Marketers expect that by
understanding what causes consumers to buy particular goods and services they will be able to
determine which products are needed in the market place, which are obsolete, and how best to
present those goods to the consumer. It is the behavior that consumers display in searching for,
purchasing, using, evaluating and disposing of products, services and ideas that they expect will
satisfy their needs.

 Today’s customer is exposed to international quality, thanks to the entry of more

players from within India and abroad.
 Customer dictates specification, quality standards, and chargeable.
 Customer wants everything here and now.
 Both budget shoppers and high spenders are demanding better returns for the money they
spend.
 ABSTRACT

As various mobile contents can be delivered over mobile platform, mobile contents have been
considered as new profit opportunities, Choices of mobile contents and mobile terminals are not
independent but closely related. Accordingly, this paper analyses consumer preferences and
correlations between the adoption of mobile phones and mobile contents. Based on survey data,
multinomial log it and multivariate probit models with a Bayesian approach are used for
understanding structures of consumer preferences. The results show not only consumer
preferences for specific features of Mobile phones and complementary relations between various
types of mobile contents but also significant correlations between the adoption of phones and of
contents. The results identify necessities of releasing phones with full web browsers in specific
forms as well as providing product and services with an integrated view for both mobile phones
and mobile contents. Also, the study presents information and new business Opportunities for
the telecommunication market.
 Introduction

Mobile phones have become an essential and important device for communication in the modern
days.
Mobile phone communication is a part of telecommunications, which comes in the form of oral
communication. Mobile devices are growing in popularity with reduction in prices and improved
functionality. Consumers prefer the flexibility and versatility of mobile phone devices. Mobile
phone facilitates easy and faster means of communication and one can communicate with family
and friends and transact the business anywhere, anytime at a reasonable cost.

MOBILE PHONE USAGE IN INDIA:-

After becoming the second most populated country in the world, India is set to achieve
another record of having half a billion wireless connections, thus becoming the second largest
group of mobile phone users after China.

The number of mobile phone users in India has shown a steady increasing trend in the
recent past. The total number of G.S.M subscribers and C.D.M.A subscribers in India remain
4.49 crores and 14.32 lakhs respectively. The number of G.S.M subscribers has increased from
4.30 crores in May 2005 to 4.49 crores in June 2005 and recorded an increase of 3.50 % between
these two periods. The market share of Bharti Telecom in G.S.M service market is 27.28 % and
it has the total of 1.22 crores subscribers. The number of subscribers of B.S.N.L is 1.02 crores
and it has the market share of 22.77%. It is followed by Hutch, which has the total of 84.40 lakhs
with the market share of 18.79 %. The idea Cellular

With 488.40 million wireless connections at the end of October 2009, India will breach
half-billion wireless connections by the end of the year. The country will now have teledensity
(phone connections per 100 populations) of roughly 45%, an urban teledensity closer to 97% and
a rural teledensity of about 18%.
 Actual number of subscribers might be less than half a billion, since a few hold multiple
SIM cards and not all of them are in use at the same time. Mobile phone being a preferred
technology for voice and data communications has resulted in the decline of wire line
connectivity to 37.25 million phones.

In India, however the GSM phones rule over the CDMA handsets. Leading the categories
are Nokia, Samsung, Sony Erickson while Reliance takes a large size share in the corporate
segment.

In India, people from all walks of life nowadays use mobile phones. The decrease in the
price of mobile phone sets and the tariff has paved the way for the increased usage of mobile
phones among Indians. The service providers are depending not only on the urban areas but are
extending their services even to the semi urban and rural areas and this has resulted in the
considerable increase in the utilization of mobile phones in these parts of the country. As the
market is almost in the saturation stage in the metro cities, the service providers are aiming at
other cities and rural areas to extend their services.

The growth graph seems to be at an all time high means to understand the buyers psyche.
As the economic stability of the country is growing so is that of an individual. Income patterns
are rising and employees are moving up the corporate ladder. They want to be seen with better
handsets as there is a quaint feeling that the mobile should match the designation or just make a
status statement with a smart and expensive phone. Hence with such attitudes ruling the market
everyone wants to stand out with the handset they own.
 Major factors Influencing Decision

Buyer
characteristics
Cultural
 Culture
 Subculture Buyer Decision Process
 Social class Need
Social Recognition
 Reference
Groups Information High Low
 Family Search Involvement Involvement
 Roles & status
Personal Evaluation of Alternatives Significant Consumer buying variety seeking
 Age and life Differences behavior behavior
cycle stage Between
 Occupation Brands
 Economic Total set
 Circumstances Awareness Set
Marketing and Consideration For Difference Dissonance Habitual
 Life style
other stimuli Set Between reducing Buying
 Personality &
Locate  Desired Choice set Brands Behavior Behavior
Target Self Concept
product Decision
Psychological
Markets  Appropriate
 Motivation
price
 Perception
Segment  Right place
 Learning
As per  Relevant Purchase intention
Customer  Beliefs
promotion
Needs  Attitudes
External
Environment Attitude of Unanticipated
Economic Others situations
Technological
Political Purchase Decision
Cultural
Post purchase behavior

A consumer’s decision to buy a product or service is the result of interplay of many forces or
stimuli. The starting point is the marketers’ stimuli in the form of product through some
promotional method, available at some outlets at a price. The marketing stimuli for the product
include locating target markets and segmentation of market as per customer needs. The
marketing and environmental stimuli enter the buyers mind through cultural, social, personal and
psychological factors. The marketing and other stimuli when come in contact with buyer the
buyer’s decision process initiates. Every person has his\her distinct set of standard of judgments
which is reflected in every individual. However there is some commonality between all of us
which make a marketer to classify and analyze the consumer behavior.
 Factors influencing Consumer Decision :

A large number of cultural, social, personal and psychological factors operate to influence the
buyers’ decision. Most of these factors are interdependent and interrelated and often there is
some overlapping between them. These are as follows:-

A. Cultural factors:-

Culture refers to the social heritage of the society. It encompasses the social values, attitudes
towards work, social intercourse, language, belief, art, morals, law, customs, traditions and any
other capability and habits acquired by man as a member of the society.
 Culture: - Indian society follows conformity, spiritualism, and respect for elderly,
traditionalism and education as its cultural values. There is a shift in the cultural values
that set the pace for new generation like women joining workforce results the excessive
use of ready to cook food, washing machine, oven etc.
 Sub culture: - A sub-culture is an identifiable and distinct group that has unique
characteristics. The sub-culture exists within larger society. A person living in Calcutta
would feel that he is different from the one living in Bihar.
B. Social factors:-
Consumer is a social being. Consumer behavior is influenced by many social factors like
reference group, family roles and status.
 Reference Group: - A group is interaction of two or more persons to realize common
goals. A reference group consists of groups that have immediate/remote, direct/indirect
influence on the forming of individual and group values, attitudes, and behavior. Thus,
the reference group provides a frame of reference for an individual on group for their
purchase, consumption, use or influence.
 Family: - A person’s world starts with the family in which he/she is born. The family has
major influence on the behavior of its members. Today, the concept of family has
changed in urban population from joint family to nuclear family. The emergence of
working women affects the consumption pattern. In a survey it was found that the
Generation I Man chooses brands of his choice for soaps and toiletries, irrespective of the
 family’s choice. He depends on the user- testimonials, world of mouth, and personal
judgement for expensive products.
 Roles and status: - an individual has many roles to play. A man is father of his daughter,
husband of his wife, son of his parents, brother of his sister, manager of workplace. The
type of status one can have in the society depends upon the relative position at home,
work and society. Products must be prepared not only as per customer’s requirements, the
roles and statuses. Thus the role and status of a Supreme Court judge would take him to a
place where he can get products of his choice.
C. Personal factor:-
A consumer is influenced by age and life-cycle stage, occupation, economic circumstances, life-
style, personality and self concept.
 Age and life cycle stage: - A person’s age is important decider of the needs. Small
children require milk powder, baby foods toys, games soft drinks and educational
facilities. Young adults require trendy clothes, recreational facilities; transportation etc.
consumption behavior is also influenced by the specific stage of family life- cycle like
bachelor stage (young, single people not living at home) have financial burden. They buy
basic kitchen equipment, basic furniture, cars, equipment for mating game, vacations.
 Occupation: - the occupation of a person decides the consumption pattern. For example,
a teacher would buy simple clothes, means of communications, books, pencils,
transparencies papers, etc. while a company executive would buy expensive clothes, visit
by air, get membership of resorts and club, etc.
 Economic Condition: - Income, saving, asset, borrowing power, etc. decide the economic
capacity of the customer to buy a product.
 Life – style: - it has been observed that customer coming from different cultures, sub
cultures, etc bear different life-styles. Life style are identified by taking various Activities
(work, hobbies, shopping sports), Interest (fashion, food, media, achievement), Opinion
(business, politics, products, future), and Demographic (age, education, life cycle stage)
into account.
 Personality and Self-concept: - Personality is the inner psychological characteristic of a
person that is manifest in outer behavior in terms of individual differences. A person’s
self concept, the part of personality would decide the type of products that will be bought.
 For example, a person with self confidence and adaptability would buy not the same
toothpaste, brush, toiletries; etc, etc. next time he goes for shopping he would try to buy
innovative products that correspond to his personality.

D. Psychological factors:-
The psychological make up of a person is reflected by his personality. It is personality which
determines individual’s reaction to the outside world. Personality or psychological factors such
as perception, learning, belief, attitudes and of course motivation influence the buyers’ behavior
to a large extent in many cases. Therefore, from marketing point of view, it is essentials to
understand the motives, perception, beliefs and attitude of prospective buyers.
 Telecom Industry

The digital divide of India is one of the most pervasive in the world. Though the nation hosts a
burgeoning IT sector growing in excess of 25 percent a year, its teledensity is lowest in the
world, with less than 5 phones for every citizen. Despite a recently deregulated
telecommunications market and government initiatives aimed at quickly increasing the number
of phones available to its citizen, efforts to narrow the disparity of telecommunication services
available between urban and rural areas have made slow progress. This report examines the
reasons behind the nation’s digital divide, identifies what steps the government is taking to close
it, and analyses trends and players currently driving the market forward.
It is an industry that has shown it to be heavy on global consolidation. It is very likely that
India’s largest companies be taken over by Europe’s largest or America’s largest player.
Number constitute the earliest part of this exercise by 2010, the number of fixed line connection
in India will swell to 170 million and the no of cellular connection to five crores. Futurists may
like to spell of a future where subscriber will have to like with just one number. Call that number
and if they are at home, within easy reach of landline, that will ring, if they are on road, their
mobile will deep; if they are at work, the call will automatically be re-routed to their office
extension; and if they are in meeting the call will end up at voice mail ,service. A will line
telephone will become like a wall clock. Every house will have one but a cellular phone will be
like a wristwatch everyone will have one.

India Telecom – Connecting India

“We are christening the year 2007 as the ‘Year of Broadband’,” announced Dayanidhi Maran,
union minister of communication and information technology, at the inaugural address of India
telecom 2006. Organized by the department of telecommunication, FICCI and TEMA the
exhibition emerged as a platform for the telecom industry to come together and showcase their
existing and upcoming technologies and services. Maran stated, “We are targeting broadband
connectivity for nine million people 2007.” The sentiment at the inauguration of the exhibition
was clear: to see India as an emerging hub of telecom manufacturing and broadband, thereby
connecting every nook and corner of the country.

A Promising Future
High speed connectivity dominated the theme of the exhibition. Ericsson showcased the
technologies like High Speed Pocket Access and video calling. Also on display was Ericsson’s
mobile phone health solution. This 3G feature would allow doctors to monitor the health of their
patients virtually.
 NOKIA

Nokia is a world leader in mobile communications, driving the growth and sustainability of the
broader mobility industry. Nokia connects people to each other and the information that matters
to them with easy to use and innovative products like mobile phones, devices and solutions for
imaging, games, media and businesses. Nokia provides equipment, solutions and services for
network operators and co-operations. Nokia comprises four business groups and three horizontal
groups.
Nokia mobile phones & telecommunication infrastructure products reached international market
by 1990. In May 1992, Jorma Ollia was appointed to head the entire Nokia group. It made the
major strategies divert its non core operation and to focus on telecommunication.
Several standard features of today’s mobile phones were developed by Nokia such as graphic
displays, signal and battery indication, colored covers and singing tones. Today Nokia brand is
symbol of simplicity and style.
Effective January1, 2004, Nokia reorganized its structure in a move to further align the
company’s overall structure with its strategy. The company includes four business groups:
Mobile Phones; Multimedia, Enterprise solution and Networks. Nokia also includes two
horizontal groups that support the mobile device business groups: Customers and Market
Operations and Technology Platforms.
 SAMSUNG

Although its line of sparkling smartphones seems fresh and new, Samsung Mobile has been
around since 1983. Samsung Mobile's parent company, Samsung Electronics, was founded in
1969. Once known for its televisions and other home appliances,
Digital technology leader, Samsung India Electronics Ltd., a subsidiary of the US $56 Billion
Samsung Electronics Co. Ltd., has been operating in India since 1995. It is a leading provider of
high tech Consumer Electronics, Home Appliance, IT and Telecom products in country. in its
tenure of over 10 years in country, Samsung India has set up manufacturing facilities for Color
Televisions, Microwave Ovens, Washing machines, Air conditioners, color monitors and more
recently Refrigerators in the country. All the facilities are located at its manufacturing complex
at Noida, Uttar Pradesh. The company had set a Software Technology Park for digital visual
Display Products at Noida in the year 2002.in the year 2004; Samsung India has been made the
Regional Headquarters for Samsung Operations in South West Asia.

In early 2009, Samsung Mobile's global market share stood at more than 17 percent, second only
to Nokia. In the 3rd quarter of 2008, for the first time in its history, Samsung Mobile shipped
more than 50 million handsets in a quarter--despite a global recession. In early 2009, Samsung
Mobile and T-Mobile introduced the Memoir, a cell phone with a "Best in Class" 8-Megapixel
camera.
 SONY ERICSSON

Sony Ericsson, a 50:50 joint venture of Japanese Sony Corporation and Swedish Ericsson, was
established in October 2001. Sony Ericsson Mission is to establish itself as the most attractive
and innovative Global brand in the Mobile Handset Industry. Officials from Sony Ericsson stated
that the company will produce low-cost cost color screen and playing handsets for people of
India with lower income. The phones will include a color screen and music playing handsets.
Sony Ericsson will make phones in India through its manufacturing agreements it has with
Flextronics and Foxconn. The company's representatives said that by 2009 they hope Indian
mobile phone market to increase to 10 million pieces.

Today, Sony Ericsson is famed for the Walkman range of music mobiles and Cyber-shot camera
phones, launching in 2005 and 2006 respectively, based on Sony’s popular sole-purpose devices.
It’s now branching out into other areas too, notably with the touch screen Xperia X1, the
company’s first venture into Windows Mobile and a potential brand to partner the former two,
and even promising to enter the Google Android market in 2009.

Sony Ericsson cares about people and the environment:

Fair treatment of the workforce, proactive Environmental conservation and hands on Community
involvement are fundamental to Sony Ericsson’s vision for a sustainable future. By integrating
sound ethics into all aspects of the company including Human resource management, product
design, supplier requirements, and community outreach programs, Sony Ericsson is helping to
build a cleaner, safer and more enlightened world.

Entertaining a sustainable future:

Sony Ericsson considers the sustainable development one of the most important challenge for the
future. Sony Ericsson is proud to be the first manufacturer to phase out nickel cadmium batteries
in all Mobile phones. Among continuing phase out efforts it is working to eliminate lead,
halogenated flame retardants.
 MOTOROLA

Motorola’s role as pioneer, innovator and visionary in mobile communications is well known.
Originally founded as the Galvin Manufacturing Corporation in 1928, Motorola has come a long
way since introducing its first product, the battery eliminator. For more than 75 years, Motorola
has proven it a Global leader in wireless, broadband and automotive communications
technologies and embedded Electronic products, and has become a recognized for its dedication
to ethical business practices and pioneering role in important innovations.
In 1986, Motorola invented the Six Sigma quality improvement process.

Motorola has kept moving at the pace people are living. Its products have grown and changed
over the years, its drive for excellence has strengthened and intensified. From five-pound Handie
Talkie radio to lightweight models of today, Motorola has been the leading provider of two way
radio services to public safety, government transportation, utility and manufacturing enterprises.

Its digital cable set-top terminals and cable modems deliver the promise of a connected home
just as the original home radios and televisions did in the 1930 and 40’s. The leader in the
embedded process production Motorola has developed a broad array of microprocessors for a
wide range of products, from some of the first video games to today’s advanced digital camera.

In personal communications from the introduction of the DynaTAC cell phone in 1983 to
today’s sleek handsets and innovative technology for mobile telephone service. It is also a key
supplier of integrated systems for automobiles, portable electronic devices and industrial
equipment. In September 1983, the firm made history when the U.S. Federal Communications
Commission (FCC) approved the Dyna TAC 8000X telephone, the world's first-only commercial
cellular device. By 1998, cellphones accounted for two-third's of Motorola's gross revenue.
 CHINESE MOBILE

In 214 B.C., Qin Shi Huang, the First Emperor of China, started wireless communication to alert
the invasion of the Xiongnus using the smoke signals, over the Great Wall just completed. In
1995, wireless telephone communication in the modern sense started by the Ministry of Posts
and Telecommunications of China, using GSM technology. A nation-wide network was
completed in the following year.

In 2000, the fixed telephone company (China Telecom) and two cell phone telephone companies
(China Mobile and China Unicom) were spun off from the Ministry of Posts and
Telecommunications .Until 2008, China's cell phone service was provided by the three
companies:

 GSM service from China Mobile

 GSM and CDMA service (begun in 2002) from China Unicom
 PHS service from the two fixed phone companies: China Netcom and China Telecom .

In 2008, another reorganization of the telecommunications industry was made a year before the
Third generation (3G) service was granted.

After the 2008 reorganization of China's telecommunication industry, there are now three cell
phone service providers.

For year of 2007, sales volume had reached about 23 billion USD, increased by 17% as
compared with 2006. The drop of cell phones' average price made the increment of sales volume
lower than the increment of sales because mobile communication company vigorously promoted
the sales of cell phones binding to their service which have lower price.

The export volume of China's cell phones added up to a record high of 385 million in 2006,
increased by 69.3% as compared with 2005. In 2007, this figure reached 483 million, increased
by 125.45% as compared with 2006. As far as 2006, the export volume had reached 31.214
billion USD, increased by 52.47% as compared with 2005. The export volume of 2007 was 35.6
billion dollars, increased by 114.01% as compared with 2006.
 A to z Of Cell phones

 Three - way calling:

This feature enables you to conduct a conference call between three parties.

 Bluetooth:
A low-power, short range wireless technology designed for local area voice and data
communications. It enables the exchange of information between many devices including
certain wireless phones, notebook PCs, hand held PCs. This technology allows using a
wide range of computing and telecommunications devices, almost wherever and
whenever you want.

 Call barring:
Allows you to set your phone to prohibit certain incoming or outgoing phone calls.

 Call forwarding:
Allows you to set your phone to forward all calls.

 Call waiting:
While making a call, the phone will alert you that another person is trying to call you.
You can choose to answer the call or it will be forwarded to your voice mail.

 Code Division Multiple Access (CDMA):

CDMA separates communication by code. Voice is broken into digitized bits, and groups
of bits and groups of bits are tagged with a code. Each code is associated with a single
call in network. Group of bits from one call are randomly transmitted along with those of
other calls. Then they are reassembled in the correct order to complete the conversation.

 General Packet Radio Service (GPRS):

GPRS is a wireless data transmission service based on packet transmission. For example,
if e-mail is sent by GPRS it will be reduced into packets of information. Each individual
packet travels to its destination by the quickest possible route. This means that different
packets from the same mail can travel separately through foreign networks around the
globe in order to avoid obstructions. At the preset destination they are rebuilt and
presented to the recipient as a whole.

 GSM:
GSM is the pan-European standard for digital standard for digital cellular telephone
service. GSM was designed for markets to provide the advantage of automatic,
international roaming in multiple countries. The SIM card is a vital component in GSM
operation. The user can store all relevant data for the phone on a removable plastic card.
The card can be plugged into any GSM compatible phone and the phone is instantly
personalized to the user.
 Talk time:
The total time a battery can power a phone for cellular calls. As the phone drains the
battery during the call, the talk time left in the battery diminishes until the phone is turned
off or the battery is recharged.

 Standby Time:
The time a battery can power a phone in standby mode, ready to make, or receive a call
without being used for an actual call. The longer a phone is in the standby mode, the less
standby time remains in the battery.

 Personal Digital assistant (PDA):

Small, handheld wireless device for transmitting pages, data messages, fax and e-mails. It
also acts as an electronic organizer, giving you access to schedule and contact lists. The term
is often used interchangeably with Personal Information Manager.

 Roaming:
A service offered by most cellular service providers that allows subscriber to use cellular
service while traveling outside their home service area.

 Scroll Keys:
Allows user to scroll forward and backward through menu options and list.

 PIN code:
The service provider may require a personal identification number for use with outbound
calling to help guard against cellular frauds.

 Wireless Application Protocol (WAP):

WAP provides a complete set of specification to support Internet protocols. Simply put,
it’s a special way of formatting content so that it can appear on small screens, like those
on wireless phones or PDAs.
 Objective of the study

 The main objective of the study is to know about the factors which are the most
influential one in the brand choice of mobile handsets.

 Other objective is to know that which of the brand available in the market is the most
popular among the people.

 To know whether there is any difference in the brand choice of the youth and the aged
people.

 To know the customer perception about different brands of mobile handsets.

 To know which feature of mobile is most influential while purchasing the mobile.
 Review of Existing Literature

Since the mid-1990s, the global penetration of mobile phones has been explosive and
the adoption of mobile services has gained considerable importance as a field of
research. Research on consumer acceptance has provided important insights on
explaining the success or failure of new products or services (Bauer et al., 2005). Much
of the prior literature analyzes consumer preferences for mobile phones and mobile
contents separately and qualitatively. In this section, the extant research is organized
into three categories by research topic: the adoption of mobile phones; the adoption of
mobile contents; and the joint adoption of mobile phones and contents.

 The adoption of mobile phones:-

The prior literature has investigated criteria (Roberts and Pick, 2004; Biljon and Kotze,
2007; Işıklara and Büyüközkan, 2007) and the effects of consumers’ socio-
demographic characteristics (Wareham and Levy, 2002; Rice and Katz, 2003) on the
adoption of mobile phones.
Through a case study, Roberts and Pick (2004) reported factors that affect the adoption
of mobile phones. They found that security cost, reliability, and mobile web
connectivity are important factors in the acceptance of mobile phones. Biljon and
Kotze (2007) revealed significant effects of the infrastructure and demographic factors
on mobile-phone acceptance. Işıklara and Büyüközkan (2007) analyzed the preferences
of young Turkish mobile-phone users and reported that technological features,
including the size of the display screen, perceived ease of use, games, and business-
life-facilitating functions are important criteria for the acceptance of a mobile phone.
Wareham and Levy (2002) investigated consumers’ adoptive behaviours with regard to
third-generation mobile phones. They analyzed the effects of socio-demographic
characteristics and found that the income and level of education had positive effects on
mobile-phone adoption. Rice and Katz (2003) also confirmed the significant effects of
age, occupational status, and marital status upon the adoption of mobile phones and the
impact of the income level and education for Internet usage on the continuous use of
the Internet.
These previous studies reported various factors with regard to the adoption of mobile
phones. To sum up their findings, consumers decide whether or not to accept a mobile
phone by comparing functions, the design, input device, screen, and their socio-
demographic backgrounds. Recently, various types of feature-rich mobile phones have
been released. Thus, it is necessary to investigate consumer preferences for newly
released mobile phones for suggesting strategies and prototypes. For this reason,
consumers’ preferences are analyzed in this paper in the light of the impact of
consumers’ socio-demographic characteristics on the adoption of mobile phones with
various forms, input devices, and full-browsing functionalities.

 The adoption of mobile contents:-

Studies of the acceptance of mobile contents have focused on factors that affect
consumers’ usage patterns for contents (Ishii, 2004; Carlsson et al., 2005; Lu, Yao and
Yu, 2005; Okazaki, 2006; Hsu, Lu and Hsu, 2007).
Ishii (2004) examined the key social factors underlying mobile-contents usage of
consumers in Japan. He found that the growth of mobile internet has overtaken PC
(Personal Computer; henceforth, PC) internet owing to the supply of advanced mobile
phones that provide internet browsers, mailers, and GPS (Global Positioning Systems;
henceforth, GPS). Carlsson et al. (2005) conducted research for identifying the factors
of mobile-contents usage in Finland. They found that socio-demographic
characteristics, such as the age and social status of consumers, have an influence on the
usage patterns of mobile contents. Also, they observed that the small screen size,
complexity of use, security, and functionality of mobile phones act as barriers to the
acceptance of mobile contents. Lu, Yao and Yu (2005) indicated that social influences
and personal traits are potentially important determinants of the adoption of mobile
contents. They clarified the effects of social influences, personal innovativeness, and
perceptual beliefs with regard to usefulness and ease of use. Okazaki (2006) revealed
the effects of demographic characteristics, including the age, gender, marital status, and
occupation, on the adoption of mobile contents. Hsu, Lu and Hsu (2007) studied the
adoption of the MMS (Multimedia Message Service; henceforth, MMS). They
regarded MMS as a new killer content in the third-generation mobile communications
industry and noted that perceptions of MMS usage have a significant impact on the
adoption of MMS. Further, they clarified differences in adoptive behaviours between
potential adopters and current users.
The adoptive patterns for mobile contents can be shown in various ways depending on
the social and technological conditions to which consumers belong. Research on
consumer behaviour with regard to mobile contents has revealed the effects of social
and demographical factors. Such research has considered mobile-contents services as
upcoming killer services in the mobile communications industry but few studies have
been conducted. Of late, consumers can use various mobile contents as much as they
can use PC internet contents. For setting up proper market strategies and policies, it is
critical to understand consumer preferences and the effects of demographic factors on
the adoption of mobile contents. Therefore, the structure of consumer preferences with
regard to the acceptance of mobile contents is analyzed in this study in the light of
consumers’ socio-demographic characteristics and correlations between various
mobile-contents.

 The joint adoption of mobile phones and mobile contents:-

Prior studies that analyze the adoption of both mobile phones and mobile contents are
few and far between. They have analyzed the effects of mobile-phone features as
factors that influence the usage of mobile contents (Pederson and Ling, 2002; Sarker
and Wells, 2003; Pagani, 2004). Some studies have investigated the usage patterns of
both mobile phones and mobile contents (Kim and Kim, 2003; Wei, 2008).
Pederson and Ling (2002) emphasized that for achieving the widespread adoption of
mobile services, the requirements of consumers should be met. They reported that there
was very little use of mobile services beyond standard voice communication and
pointed out the need for developing various types of interactivity and devices. Sarker
and Wells (2003) mentioned the potential importance of mobile services and insisted
that manufacturers produce advanced handheld devices from consumers’ points of
view. They reported the effects of personal factors, including the age and technological
characteristics, mobility, and the ease of use on the adoption of mobile commerce.
Additionally, they observed that the widespread acceptance of mobile devices is
essential for the use of mobile contents. Pagani (2004) found that the perceived
usefulness, ease of use of mobile phones, which encompasses input and output devices,
price, and speed of use are important factors in the adoption of multimedia mobile
services.
Paying attention to the discontinuous use of mobile services, Kim and Kim (2003)
investigated factors for the continuous use of such services. They showed that the
technology of handheld devices and the ease of use influence continuing use. Wei
(2008) reported that users with advanced mobile phones tend to use mobile contents
more actively in comparison with users who do not possess such phones.
Previous studies regard mobile-phone adoption and mobile-contents usage as
reciprocal factors that influence the adoption of each other. The adoptions of mobile
phones and mobile contents occur either sequentially or simultaneously. Thus, it is
necessary to analyze consumers’ adoptive behaviors for both of them through a model
that can reflect this context of choice. Therefore, this study will propose a model that
reflects the choice situation, including the effects of socio-demographic factors.
 Significance of Study

 This project is particularly about the Factors affecting brand choice of mobile handsets.
There are various factors which affect the brand choice of mobile phone handsets of a
consumer so that with the help of this study one should take important decisions in
related to the same so that manufacturer ,dealers and other related persons would make
their strategies accordingly and also being able to create brand equity among consumers.

 This study will include various analysis of different brands of mobile handsets that are
available in the market so that will help the same in many grounds while deciding
particular strategies regarding the same which can be proved effective for such
competitive environment.

 To create a brand loyalty brand preferences are not an easy task so this study will help the
same to create brand equity after considering consumer preferences and choices.

 This study will include various factors like price quality, income level, durability etc.
which affect the particular brand choice among consumer.
 Conceptualization

Marketing is a process, which carries goods from producer to ultimate consumer. Marketing
bridges the gap between consumer and producer. It is in this sense that marketing has been
defined as “all the activities involved in the creation of place, time and possession utilities”.

“Marketing includes all those activities having to do with effecting changes in the
ownership and possession of goods and services. It is that part of economics which deals with the
creation of time, place and possession utilities and that place of business activity through which
human wants are satisfied by the exchange of goods and services for some valuable
consideration”.

Brand is a name, term, sign, symbol, and design or a combination of them intended to identify
the goods and services of one seller or group of sellers and to differentiate them from those of the
competition. Brand is that which includes various attributes and benefits serve some value and
culture provides a particular personality and serves to user. The consumer derives several
advantages:

 Indication of source
 Easy to shop
 Consistent Quality
 Uniform price
 Status
 Packaging

In market various brands of mobile handsets are available but which brand will be preferred by
consumer it mainly depends upon many factors. These factors can be :

 Price of product
 Availability of product
 Income level of consumer
 Age level of consumer
 Various features of product.
 Occupation of the consumer
 Focus of the problem

Any type of research study suffers from certain limitations relating to either the research itself or
to the topic thought. The degree and nature of the limitation varies with the topic.

The present study has been undertaken to analyse the factors which affect the decision
of consumer relating to Brand choice of Mobile Phone Handsets in Rohtak city. Its aim is to
study the consumer opinion and preferences relating to features of Mobile phone handset in the
market.
 SCOPE OF STUDY

The present study is Exploratory one and is aimed at finding out considerations involved while
buying a mobile phone handsets. An attempt has been made to the prevalent attitudes, usage
pattern and benefits sought by using mobile phone handsets. How different segments differ in
their behaviour with respect to the product under study.
CHAPTER-2
 Research Methodology

Research methodology is a way to systematically solve the research problem. It is the science of
studying how research is done scientifically. Methodology is the blueprint on which any study is
done. Basically it provides a framework on which the whole study is carried out. This is
important because it keeps the study on the right track and optimizes the time and cost factor
involved. Further more for effective and efficient study a properly planned methodology is must.
Research methodology is carefully planned as the accuracy, reliability and adequacy of results
depends upon research methodology followed. Moreover it also helps in the evaluation of the
research by other also. So the research to be purposeful the researcher should plan research
methodology before proceeding to research study.

Research Problem

The first step while conducting a research is to carefully define the research problem. The
present study has been undertaken to analyse the factors affecting Brand choice of Mobile
handsets.

Research Design

Research design is the blueprint to study any problem. It is a plan for collection, analysis and
interpretation of data in a manner that is relevant to the research purpose with economy in
procedure. Research design can be categorized as :

 Exploratory research
 Descriptive
 Experimental
The present study is exploratory research because as it tries to gather first hand data pertaining to
various factors affecting brand choice.

Universe or survey population:

The universe of the study is entire Rohtak City.

Sample Design:

The amount of research work is limited by shortage of time and resources. Due to this limitation
it is not possible to gather complete information. So the technique of sampling is applied. The
sample are so selected that they are representative of entire Population.
Sampling Unit : Rohtak City

Sample size : 100

Sampling Media : Questionnaire

Sampling Technique : Convenient Sampling

CHAPTER-3
 DATA ANALYSIS AND INTERPRETATION

Data analysis and interpretation was done by the method of comparison of the data collected of
different consumers and dealers. As my area of study was Rohtak city the data was collected by
the direct interfere with consumers and dealers. The following facts, which I concluded by the
data analysis, are explained as below:

We take the various income segments as what is the division of total preferences in various
income segments.

HYPOTHESIS TESTING PROCEDURE (STEPS):

 We set up a null hypothesis denoted by Ho. This means there is significant

difference between sample value and population value. In case if Ho is rejected,
we must have an alternate hypothesis HA. So we set up an alternate hypothesis.
 Select the level of significance.
 Select an appropriate distribution for the test, which is known as test statistics.
The distributions generally used are normal distribution, student ‘ t ‘ distribution,
Fishers ‘ F ‘ distribution or Chi – square 2 distributions:-

 Calculate the necessary values from the given data for the test.
 Make conclusions for testing. If calculated value is less than the
tabulated value, Ho is accepted, else HA is accepted rejecting Ho.

Test for Specified Proportion (infinite population):-

In case of attributes we can only find out the presence or absence of particular
characteristics. The sampling of attributes may, therefore, be regarded as the drawing of
samples from a population whose members possess the attribute A or not A.
Large population (n  30)
Ho: p = P
HA: p  P

pP
Z cal =
PQ
n

p = Sample Proportion
P = Population Proportion
n = sample size
Q=1-P

Collected data:

Number of customers owning the mobile handset = 99

Number of customers not owning the mobile handset = 01
Sample size = 100
Total Population = Infinite

Assumptions:
1. The test is conducted at 5% level of significance.
2. It is assumed that 01% of sample size is not using the mobile handset.
Null Hypothesis = Ho = Product awareness is not good.
Alternative Hypothesis = HA = Product awareness is good.
It is a one tailed test.
Therefore at 5% level of significance,  tab = 1.645

pP
Test statistics, Z cal =
PQ
n
Where, p = Sample proportion
P = Population proportion
n = Sample size
Q = 1-P

P = 1/2= 0.50
p = 99/100 = 0.99
Q = 1- P = 1-0.50 = 0.50

PQ
Therefore, = 0.05
n
pP
Test statistics, = 0.99-0.50/0.05=9.8
PQ
n

Therefore, Z cal = 9.8

Since Z cal > Z tab, Ho is rejected and HA is accepted.

Ques1:- The following is the age wise and occupation wise distribution of the 100

respondents:

Age wise Distribution

Age Total

15-24 50

25-34 37

35-44 13

Occupation wise distribution

Occupation Total

Business 10

Service 7

Student 50

Others 33

Data collection:-

The study is based on both primary and secondary data. The primary data is collected using a

printed questionnaire.

The secondary data is collected from company’s website, dealers’ information, catalogues and

manuals journals, newspapers, pertaining to marketing and consumer behavior.

Analysis Pattern

The data have been analyzed mathematically and Interpreted in the forms of tables, charts by

means of summation and percentage.

. 1. Do you own a Mobile Phone?

NO.OF YES NO

RESPONDENTS 99 1

NO. OF RESPONDENTS

YES
NO
2. What type of Mobile Phone do you use?

TYPE OF PHONE NO. OF RESPONDENTS

GSM 60

CDMA 23

DUAL SIM 34

NO. OF RESPONDENTS

GSM
CDMA
DUALSIM
 3. Which brand of Mobile phone are you using currently?

Name of Brand Total No of Users

Nokia 50

Samsung 20

Sony Ericsson 15

Motorola 10

Chinese 4

NO.OF RESPONDENTS

50

40 NOKIA
SAMSUNG
30
SONYERICSON
20 MOTOROLA
CHINESE
10

0
4. Since how long you have been using the Mobile phones?

No of Days Total No. of Users

Less than 6 months 10

Less than 1 year 25

More than 1 year 22

Less than 3 year 43

NO. OF RESPONDENTS

LESS THAN 6 MNTS

LESS THAN 1 YEAR
MORE THAN 1YEAR
LESS THAN 3 YEAR
5. Who influenced you while purchasing Mobile Phones?

INFLUENCER No. of Users

Newspaper 32

Magazine 19

T.V 17

Friends 20

NO.OF RESPONDENTS

NEWSPAPER
MAGZINE
T.V
FRIENDS
 6. What are the factors that influence your purchasing decision of this brand? (Rank

the following)

Rank wise distribution of the factors

Factors 1 2 3 4 5 Total

/Rank

Price 33 07 29 21 20 100

Image 27 14 08 31 20 100

Quality 24 33 18 10 15 100

Features 09 09 22 24 36 100

Income 07 37 23 14 19 100

Total 100 100 100 100 100 100

NO.OF RESPONDENTS

40
35
30 PRICE
25 IMAGE
20
QUALITY
15
10 FEATURE
5 S
INCOME
0
RANK1 RANK2 RANK3 RANK4 RANK5
7. If features, then which of the following affect your decision most? (Rank the following

Factors 1 2 3 4 5 Total

/Rank

Phone memory 31 05 24 23 17 100

Color display 29 16 12 29 14 100

Camera 21 29 18 8 24 100

Bluetooth 12 13 21 26 28 100

Shape and size 12 13 21 26 28 100

Total 100 100 100 100 100 100

NO. OF RESPONDENTS

40
35 PHONE MEMORY
30
COLOUR DIISPLAY
25
CAMERA
20
BLUETOOTH
15
SHAPE &SIZE
10
5
0
RANK1 RANK2 RANK3 RANK4 RANK5
 8. What you think which one phone is best regarding its features?

DIFERENT PHONES NO. OF RESPONDENTS

Nokia 50

Samsung 12

Sonyericson 23

Motorola 11

Chinese 4

NO. OF RESPONDENTS

NOKIA
SAMSUNG
SONYERICSON
MOTOROLA
CHINESE
9. You mainly use phone for

PURPOSE FOR USAGE NO. OF RESPONDENTS

Communication 59

SMS/MMS 23

Messaging 10

Others 8

NO. OF RESPONDENTS

COMMUNICATION
SMS/MMS
MESSAGING
OTHERS
 10) From where do you prefer to Purchase?

LOCATION NO. OF RESPONDENTS

LocalShops 23

ShowRoom 45

Hotspot 22

ShoppingMalls 10

NO.OF RESPONDENTS

LOCALSHOPS
SHOWROOMS
HOTSPOT
SHOPPINGMALLS
11. How do consider Mobile in present scenario?

Factors No. of users

Status 31

Utility 57

Fashion trend 12

Total 100

NO. OF RESPONDENTS

STATUS
UTILITY
FASHIONTREND
12. Any extra facility provided by Brand you are using.

NO.OF YES NO

RESPONDENTS 88 12

NO.OF RESPONDENTS

YES
NO
13. Are you satisfied with the current Brand?

NO. OF SATISFIED NON-SATISFIED

RESPONDENTS 82 18

NO. OF RESPONDENTS

SATISFIED
NON-SATISFIED
CHAPTER-4
 Findings

Nokia is the most popular brand among the users, as it constitutes 50 % of the total of
100. After Nokia the other brands that are popular are Samsung, Sony Ericsson.
 Generally users change their handsets within a year, as change percentage within a year is
68.3%.
 Nokia brand users are highly satisfied with their current brand, as the table shows that
82% are satisfied.
 Mobile is consider as a utility product more than status and fashion trend, as the table
shows that 57% use it as a utility product which is more than status and fashion trend
figures.
 We can analyze that mobile is mainly used for communication as 59% use the mobile for
this purpose.
 Most of the respondents are influenced through the newspaper that is 32%.
 60% of respondents are using GSM and 34% are using the Dual sim mobile phone.
 32% of customers are affected by the price and only 7% of customers are affected by
their income.
 45% of customers prefer to purchase their mobile handset from the showroom and only
12% from the shopping malls.
 Conclusion

 Nokia is the most popular brand among the mobile users, but apart from Nokia, other
popular brands are Samsung, Sony Ericsson, and Motorola.
 Most of the mobile users are satisfied and among those percentages of Nokia users are
quite high.
 Student category is that category which goes with the variety of brands as brands like
Motorola, Sony Ericsson etc.
 Most of the users change their handsets with in a period of one year, but this trend is
more in the age group of 18-28 and among this age group most of the respondents belong
to the student category
 As far as factors of purchasing are concerned, then price is the most influential factor
after that income and features come into the picture.
 If we talk about the features then battery is the most influential one, which is equally
important for all the people but for student category shape and size and color display are
also equally important
 When people goes for purchasing the handsets, then suggestions from the friends and
relatives play a major role in their decision making process.
 When people goes for purchase for handsets then they are mainly influenced through the
Newspapers.
 Suggestions

Due to stiff competition by Nokia the rest of the company should concentrate more on
their marketing policies and try to prompt their product in market in new and better way.
The mobile market has a good potential therefore companies should concentrate more in
this market, the reasons are:

 Rise in education level.

 Increasing standard of living.
 A good brand name affects the sale in the market so the company should try
to make a good position in the market.
 Companies should launch the finance (installment) scheme in the market to
increase the sale.
 As now the customer is having much more knowledge about the product
which helps him to choose the best one.
CHAPTER-5
 Limitation of the Study

 The result of the study may not be universally applicable due to regional constraint.

 Money was also considered as a constraint during the research work.

 Personal biasness of the researcher may be included in the research work.

 Limited time was also a constraint of this study.

 Sample size is short so it cannot represent the mass.

CHAPTER-6
 QUESTIONNAIRE

PERSONAL INFORMATION:-

1. Name :_______________________________

2. Age Group:

a) 15-24 ( ) b) 25-34 ( )

c) 35-44 ( ) d) 45-55 ( )

3. Occupation:

a) Business ( ) b) Service ( )

c) Student ( ) d) Others ( )

1. Do you own a Mobile Phone?

a) Yes ( ) b) No ( )

2. What type of Mobile Phone do you use?

a) GSM ( ) b) CDMA ( )

c) Dual Sim ( )

3. Which Brand of Mobile are you using?

a) Nokia ( ) b) Motorola ( )

c) Chinese ( ) d) Samsung ( )

e) LG ( ) f) Sony Ericsson ( )

4. Since how long you have been using the Mobile phones?

a) Less than 6 months ( ) b) less than1yr ( )

c) More than 1 year ( ) d) Less than 3year ( )

 5. Who influenced you while purchasing Mobile Phones?

a) Newspaper ( ) b) Magazines ( )

c) T.V ( ) d) Friends ( )

6. What are the factors that influence your purchasing decision of this brand? (Rank

the following)

Rank wise distribution of the factors

Factors 1 2 3 4 5

/Rank

Price

Image

Quality

Features

Income

7. If features, then which of the following affect your decision most? (Rank the following)

Rank wise distribution of the features

Factors 1 2 3 4 5

/Rank

Phone memory

Color display

Camera

Bluetooth
Shape and size

8. What you think which one phone is best regarding its features?

a) Nokia ( ) b) Motorola ( )

c) Sony Ericsson ( ) d) Samsung ( )

e) Chinese ( )

9. You mainly use phone for

a) Communication ( ) b) Entertainment ( )

c) SMS / MMS ( ) d) Others ( )

10) From where do you prefer to Purchase?

a) Local Shops ( ) b) Showroom ( )

c) Hotspot ( ) d) Shopping Mall ( )

11. How do consider Mobile in present scenario?

a) Status ( ) b) Utility ( )

c) Trend ( )

12. Any extra facility provided by Brand you are using.

a) Yes ( ) b) No ( )

If Yes, then please mention

_________________________________________________

13. Are you satisfied with the current Brand?

a) Yes ( ) b) No ( )

14. Any Suggestions?

_________________________________________________
CHAPTER-7
 Bibliography

References have been taken from books:

 Kothari C.R, Research Methodology, Wishwa Prakashan, New Delhi, 2003.

 Kotler Philip, Marketing Management, Pearson Education Publication, Eleventh Edition

 Leon G. Schiff man, Consumer Behavior.

References have been taken from the Magazines

 My Mobile, India’s best Mobile Magazine, January 2007

Related websites

 www.nokia.co.in

 www.sonyericsson.com

 www.motorola.com

 www.samsungindia.com

 www.google.com

 www.chinesemobile.com