Proposal for Project

on
“A Study on Measurement of Customers’
Satisfaction of Smart Phone Users
in the City of Vadodara”

Submitted by: Research Guide:

M.com (Final) Dr. Madhusudan N. Pandya
Department of Commerce including Department of Commerce including
Business Administration (In Marketing) Business Administration
Name.: Patel Het Dushyant Kumar Faculty of Commerce
The M. S. University of Baroda The M. S. University of Baroda

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 Proposal for Project
On
“A Study on Measurement of Customers’
Satisfaction of Smart Phone Users
in the City of Vadodara”

PROJECT PROPOSAL

CONTENTS AT A GLANCE

Para Number Particulars Page Number

1.0 An Introduction 3

2.0 Major Players in Mobile Industry 3

3.0 Growth of the Mobile Industry 4

4.0 Key Success Factors of Mobile Industry 5

5.0 Challenges Faced By the Mobile Industry 5

6.0 Review of Literature 6

7.0 Research Methodology of the Research Study 7

8.0 Significance of the Research Study 8

9.0 Limitation of the Research Study 8

10.0 Structure and Chaptalization Scheme of Project 8

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 Selected References 9

1.0 INTRODUCTION:

Mobile communication today is the fastest and the most effective way of communication in the world. It has
changed the working pattern of human being in each and every corner of the world. No wonder to say that it is
inevitable part in life of everyone to fulfill needs. The technology today has given a sharp edge for making it
more demanding. Smart mobile phones are in huge demand because of its functions through which many works
of people are done with less efforts and time. Smart mobile phones are the voice of people now. Presently in
India, the total numbers of mobile subscribers are now more than one billion. In the last couple of years, the
total numbers of smart phone subscriber have succeeded over the total numbers of feature phone subscriber in
mobile communication in India.

It has become security instruments for all, especially for women. Due to effective communication, the
boundaries amongst places of different regions in the world are eliminated; boundaries among people of any
places, religions are eliminated. With the help of mobile phones any one can be in touch with others 24 by 7. It
is becoming ideal for many like old one, teenagers, disabled, female, busy people as it saves time, provides
safety& security

A decade back in India, people were less aware about mobile phones but presently the scenario is entirely
different, with the growth of Indian economy in the last decade, people are more prosperous, educated, &
aware, and on the other hand the telecom sector opened to private and foreign players also.

At present sales volume of feature phone is greater than the smart phone but demand of smart phone is
increasing very fast due to providing various features like Face book, Whatsapp, twitter, video call, voice chat,
etc. and it is predicted that selling of smart phone will be around 16 crore/year from 2017 while sales of feature
phone will fall short of 15 crore.

There are many companies which are providing variety of products and there are around 431 Mobile Hand set
brands available in the market in this year but consumers will have more than that option from next year
because of launching number of companies in India and make in India concept. Working people and Younger’s
from urban area are purchasing smart phones mostly and high sales volume is getting because of them but it is
increasing very fast in rural area too.

The study focuses on the perception of consumers towards Mobile Handset. As there are different Mobile
Handsets available in the market by many different companies providing different features. This situation gives
a great potentials to telecom sector, as the market is competitive where number of mobile handset are offered
with effective features and there are growing number of consumers with a greater capacity.

2.0 MAJOR PLAYERS IN MOBILE INDUSTRY IN INDIA

Xiaomi
Xiaomi is a Chinese electronics company and a leading smartphone manufacturer in the Indian market. India is
the world’s second-largest smartphone market and the company also set up manufacturing unit in India.

Samsung

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The South Korean Samsung Electronics Company is rated as India’s most attractive and trusted brand of
mobiles. Samsung has one of the largest lower priced handsets market in India with record earnings and profit.

OnePlus
OnePlus is another Shenzhen-based Chinese smartphone company, released numerous phones in India. Latest
One plus 6T and 7T are one of the best smartphones in the world.

Apple
The American multinational technology company expanded its products into the Indian market. Apple taking
over the smartphone market in India and planning to invest and set up new development center facility.

Vivo
Vivo Communication is one of the top 10 smartphone makers in the world and entered the Indian mobile
market, also became the title sponsor of the Indian Premier League.

Oppo
Oppo is a leading manufacturer of smartphones in India and was the sponsor the Indian national cricket team.

Realme
Realme is an emerging mobile phone brand which is committed to offering mobile phones with powerful
performance, stylish design and sincere services. Realme products won wide recognition for their "Power" and
"Style" immediately after the launch. In India, Realme created a sales miracle by selling 1 million mobile phones
within 3 days during Diwali. Realme also broke the sales record on Lazada in Southeast Asia, and became the
No. 1 brand in the mobile phone category of this platform.

Lenovo (Motorola)
Lenovo is the Chinese company, acquired the mobile phone handset maker Motorola and into the designs,
develops, manufactures of smartphones, computers and tablet.

Nokia
Nokia is a Finnish multinational electronics company, was the largest worldwide vendor of mobile phones and
smartphones, also one of the most popular brand of earlier mobiles phones in India.

3.0 GROWTH OF THE MOBILE INDUSTRY IN INDIA

While India was left lagging in following developed markets for 2G to 4G, the key stakeholders are already
working towards proactively working for the 5G evolution. It is probably for the first time that representatives
from Indian OEMs are involved in framing of the global standards related to 5G. This serves as a strong
testimony to reflect the growing influence of Indian mobile services value chain players on a global scale. It also
reflects a change in mindset from being mere followers to actually being early adopters of advancements in
technology.

Given the critical role played by telecom in the country’s economic growth, one would expect favorable
measures and reforms would be in place to safeguard the industry’s well-being. However, the sector needs
further support from the government agencies from a policy & regulation perspective since presently the
landscape looks headed for a slowdown with alarming repercussions. The sector has been overburdened by
increasing costs and galloping debt, even as profits keep declining each year.

The incumbent government indeed has intent to lend a supporting hand to the ecosystem players. If a
programme such as Make in India gets a stronger boost and policies like MSIPS promote the electronic
ecosystem of India, the Indian landscape for Mobile manufacturing shall become more cost efficient and

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witness drastic changes. Since the Chinese manufacturers have an advantage in terms of sourcing components
locally, such policies are expected to set a level playing field in the future.

On its part, the mobile telecom industry has been fully aware of its role and responsibility in driving economic
growth. Consequently, telecom players have been making huge investments almost every year in establishing
telecom infrastructure throughout the country. As a result, millions of jobs and entrepreneurial opportunities
are created annually, directly and indirectly. Another four million direct and indirect jobs are expected to be
generated in the next five years. But the lack of adequate regulatory support has meant mobile telecom
companies are struggling to keep operations viable.

The telecom industry’s billion-plus base of subscribers makes it the world’s second-largest market. And with
220 million users, India is the world’s second-largest smartphone market too. The time is ripe to scale up these
numbers and drive higher economic growth. The role of mobile connectivity assumes more importance when
one considers the GDP numbers for the January-March 2017 quarter. The Q4 GDP is 6.1 percent – a fall from
eight percent GDP in the same quarter of last year. It’s clear that the impact of demonetization is now being fully
felt. Analysts warn the April-June quarter could also mirror the same trend, indicating an economic slowdown is
underway. But this short-term blowback can be offset by the long-term advantage, since demonetization has
driven higher connectivity and a faster shift towards digitalization. Indeed, if managed adroitly, demonetization
can drive a shift towards transparent digital transactions backed by the backbone of mobile telecom
connectivity.

To counter the impact of the ongoing slowdown and boost economic growth, it’s time the regulatory authorities
and telecom players join hands in propelling the sector into a higher growth trajectory. For this, proper policy
reforms and fiscal incentives need to be in place, particularly in the case of mobile manufacturing. Such support
will also boost the Government’s ‘Make in India’ initiative, encouraging more mobile manufacturers to open
units in India. All this will benefit the industry, the Government and the masses.

4.0 KEY SUCCESS FACTORS OF MOBILE INDUSTRY IN INDIA

4.1. Hardware design

If the iPhone has taught the mobile market anything, it's that hardware design means everything. If a device
lacks a compelling design, consumers won't pay any attention to it. Hardware design changed rapidly after
Apple started selling the iPhone. Almost immediately, more large-screen, slim devices hit store shelves. Along
the way, those companies that failed to offer compelling designs were left behind.

4.2. The operating system

Consumers and enterprise customers want to know that the operating system they will be using is reliable.
That's precisely why iOS and Android continue to be some of the top picks for customers around the world. And
it's also why RIM's BlackBerry operating system is tops in the enterprise. Vendors need to keep in mind that the
operating system is what users will interact with most. If a smartphone is running an outdated OS or the
software just doesn't work as well as it could, customers will go elsewhere.

4.3. Application availability

When Apple launched the App Store in 2008, the company forever changed the mobile market. Now, consumers
and even some enterprise customers expect to see a growing applications marketplace available on all the
devices they own. That's precisely why Google continues to woo developers and why Microsoft is so concerned
about getting more programs into its applications marketplace on Windows Phone 7 devices. Apple's App Store,
which has over 350,000 apps right now, demonstrates that you can never have too many applications if you
want to build a successful smartphone platform.

4.4. The vendor

When it's all said and done, customers need to know that they can trust a respective company. That's why
unknown firms have trouble gaining traction in the mobile space, while well-known companies easily attract
customers. Of course, building a reputable brand that consumers can trust is difficult. But as firms like RIM,

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Apple, Samsung and Motorola Mobility have shown that the company that's well-known and trusted will win
out.

5.0 CHALLENGES FACED BY THE MOBILE INDUSTRY IN INDIA

Despite being referred to as an emerging industry, there are some challenges and bottlenecks in the mobile
manufacturing domain. Some of these are listed below.

Low value addition: The value addition by domestic manufacturers is comparatively low at present. This could
be because they have to import a major part of the components used in manufacturing. There has been a rise in
the number of mobile companies entering the Indian market. This, combined with the manufacturers’
dependence on imports, means that the government should also support and encourage the manufacturing of
components and equipment under the Make in India initiative.

Lack of investment in R&D: The patent holders of indigenous mobile technology do not believe in investing
more money in R&D as they feel that they do not get good returns. The royalty yield declined between 2013 and
2016, even though the sales of smartphones increased in volume and value over this period. However, research
and development is necessary for any industry to grow. On the other hand, manufacturers have also voiced
their concerns over the high royalty fees to be paid for using licensed technologies.

Lack of a component ecosystem: With so much being done to boost the manufacturing industry in the country,
India still has to go a long way in terms of producing world class components. One of the main reasons for this,
as cited by the industry players, is the 10 per cent duty levied on PCBs, which is making it difficult to establish a
manufacturing unit in the country.

Many non-electronic as well as electronic components are required to make a smartphone. Out of these, the
primary and most vital components are the main board and the sensor flex cable. These two components make
up 58 per cent of the cost of the materials used in making a mobile phone. The display, camera and battery
account for another 30 per cent of the billing. A major part of these important components is imported today, as
they are not being manufactured locally yet.

Due to the lack of a balanced ecosystem with respect to electronic components manufacturing in the country,
India imports these from China.

Inverted duty structure: This is a major drawback for mobile phone manufacturers in India. As per this
structure, the import duty levied on the final product is low in comparison to that imposed on the spare parts
and components required to make mobile phones. Hence, locally manufactured devices are more expensive and
cannot compete with the cheaper imported devices. So local companies struggle to make their mark in the
market or beat the competition.

6.0 REVIEW OF LITERATURE

Bhatt has mentioned (2011) in his study which was on the Post Graduate Students about usage of mobile, usage
duration, need of mobile, the expenses on mobile phones, factors which can influence for buying the mobile
phone, side effects of the mobile phone on health on the basis of primary data; It was also indicated that the
usage and satisfaction level of mobile phone users differed from company to company.

Mishra and Mahajan, Cheatna while using kano model, studied (2012) that customer satisfaction and
dissatisfaction in model handsets can be determined. Kano method is a concept engineering tool that was
developed to help design engineers better understand what customers want and don’t want. The model was
examined on the dynamic consumer behavior and changing preferences of consumers by segregating changing
trends in different market sectors.

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A report prepared by Market Analysis and Consumer Research Organization indicated on the attitude of
teenager towards cellular phones and enumerates the pattern and arrive peculiarities gender wise. The report
further examined the way young people relate to the functionality of mobile phones. The study also indicated
that majority of users perceive cell phone as the technology that offers convenience and makes their life easier.

A study (2016) was conducted on full mobile telephone history by Farley covered long duration from 1940s to
2016, which explains that how mobile telephones for decades were not an active technology, became the
demanding, effective and probably the most important communication tool of people. The study examined that
mobile telephony’s early and bulky beginnings, commercial mobile telephony began in 1946. The cellular radio
concept was published in 1974. But since 1995 mobiles have become low cost, rich in features and used
worldwide.

Another study conducted by Sharma and Singla (2016) put focus on the challenges of manufacturing sector of
India for telecom equipment, which lags behind telecom services. The study indicated that only 35% of the total
requirement for telecom equipment in the country was met by domestic production which was not favorable to
long- term sustained growth of the telecom sector. The study also revealed that country is also far behind in R &
D spending when compared to other leading countries. On the basis of analysis in the study that India needs to
see an increase investment in R&D sector, combined efforts of industry academia government, better quality
doctoral education and incentives to entrepreneurs for start-ups in telecom equipment manufacturing.

The study of Sinhas and Wagh (2018) shows the Growth of Cellular Telecom Sector and awareness of
Consumer’s preferences and choices on the use of cell phone. The study measured 58 choices of consumers and
their preferences regarding mobile services and mobile usage. The study further found that majority of the
consumers was satisfied with service provided by mobile service provider. The study also shows that the
coordination among mobile service providers, manufactures of mobile handsets and users is the important
factor as it is relating to the satisfaction of users and the study mentioned that it was lacking among them. The
study explains that ultimately, the crucial factor in satisfying requirements of users of mobile phone is the
coordination between service providers and mobile phone manufactures. The study also provides varied scope
and channelizes the mobile service providers to set background and provide technological breakthrough in
such a way so that this should be able to reach to the common man of the country.

7.0. RESEARCH METHODOLOGY OF THE RESEARCH STUDY

The study will be conducted on the consumers of smart phones in Vadodara City. Total 440 sample size was
chosen with a different income group of male and female, out of this, 400 replied on the asking. A well designed
questionnaire will be prepared with relevant questions according to the objectives and hypothesis of the study
for collecting primary data from respondents. Various aspects will be covered in the questionnaire like mobile
handset features, different brands offering sale of mobile handset, genders and income level of consumers. A
convenient random sampling will be adopted for covering the entire market and using income as the basis of
selection. The categories that will be used in classifying income level are: Middle Lower, Middle, Upper Middle
and Upper. It will be also taken into consideration that the respondents should be aware about English language
to certain extent and should have some knowledge of functioning of mobile and Internet. Secondary data will
also been collected from various magazines, journals, newspapers and internet to support the objectives to set
the analysis done.

7.1. RATIONALE OF THE RESEARCH STUDY:

The Proposed research study would report on selected customers’ experiences with use Mobile phone form the
people located in Vadodara City in the state of Gujarat. An attempt in this study would also be made to measure
and evaluate customer’s satisfactions or dissatisfactions from conveniently drawn sampling units, who are
purchased Mobile phone holders.

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7.2. SCOPE AND COVERAGE OF THE RESEARCH STUDY:
The study shall be undertaken in Vadodara City in the state of Gujarat, to measure and evaluate current state of
customers’ actual experiences with regard to Selected Mobile phone from people located Vadodara City in the
State of Gujarat.

7.3. OBJECTIVES OF THE RESEARCH STUDY:

Objectives
 To measure the consumers’ satisfaction with use Mobile phone form the people located in Vadodara City in
the state of Gujarat..
 To identify and analyzing top most preference among product features of mobile handset by the consumers.
 To identify the brand preference offered by different companies for mobile handset among different income
level consumers.

7.4 SOURCE OF INFORMATION:

Sources of information have been divided as follows.

7.4.1 Secondary data:

The researcher would collect secondary data by referring various Business Magazines; Newspaper; Research
Journals and published articles, and by browsing and downloading information from different websites.

7.4.2 Primary data:

The researcher would collect necessary information and data on the selected topic of the proposed study with
the help of personal Interviews of selected Mobile phone holders, located in the Vadodara City in the State of
Gujarat.

7.5. RESEARCH INSTRUMENT:

The researcher would develop Structured Non-Disguised Questionnaire for the collection of the primary data
from the selected consumers’ of Mobile phone.

7.5.1. Sampling decisions:

Sampling decisions would mainly consist of following.

7.5.2. A representative sample:

The primary data from current Mobile phone holders, located in the Vadodara city in the State of Gujarat, shall
be regarded as a representative sample unit in this research study.

7.5.3. Sampling design & methods:

The researcher proposes to make use of Non-Probability Sampling Design or Approach based on Convenience
Sampling Methods that would be put to use for the collection of the primary data from amongst the customers’
of Mobile phone, located in the Vadodara city in the State of Gujarat.

7.5.4. Sample size:

Adequate number of sampling units would be considered and drawn for the purpose of the collection of the
primary data from amongst the customers’ of Mobile phone, located in the Vadodara city in the State of Gujarat.

7.5.5. Sampling media:

The representative samples would be drawn in person using personal Interview by administering Structured
Non-Disguised Questionnaire by the researcher for the collection of the primary data from amongst the
customers’ of Mobile phone, located in the Vadodara city in the State of Gujarat.

8.0 SIGNIFICANCE OF RESEARCH STUDY:

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As on date the various Mobile manufacturer provides us as adopted the marketing culture to provide
satisfaction to their customer. The study will help & throw light on the level of satisfaction customers with
Mobile providers. It will be helpful to the Mobile providers to know how the customer will respond to their
marketing strategy. It will help to air Mobile providers in order to determine their marketing strategy, plans,
policies programs & strategy in near future. Mobile providers will be able to find out innovative way to
providing services on the basis of the service offered by the customers because of the proposed research study.

9.0 LIMITATION OF THE RESEARCH STUDY:

 Field study would mainly be undertaken based on collection of primary data and information mainly from
urban population, it would be inappropriate to generalize it as fit and good for the whole population.
 The study shall be mainly carried out in the Vadodara city in the State of Gujarat; hence this research work
does not aimed to cover the total picture of rural customers.
 Findings can be applied to only selected sample size and care must be taken while applying to the other
group of Airline service users.

10.0 STRUCTURE & CHAPTERIZATION SCHEME:

1) Introduction
2) A Brief Review Mobile companies in Indian market
3) A Brief Review of Marketing Practices of Mobile companies.
4) Research Methodology
5) Data Analysis & Interpretation
6) Conclusion and Suggestion of the Research Study
Bibliography

SELECTED REFERENCES:
IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319–7668, Consumer Brand
Preference towards Mobile Phone: Effect of Mobile Phone Attributes on Purchase Decision Parveen Kumari1 ,
Satinder Kumar2 1 (Research Scholar, Department of Management Studies/ Punjabi University, Patiala, India) 2
(Assistant Professor, Department of Management Studies/Punjabi University, Patiala, India)

https://www.researchgate.net/publication/261028288_An_Empirical_Study_of_Brand_Preference_for_Mobile_Phon
es
https://www.grin.com/document/304231
http://www.walkthroughindia.com/hot-trends/top-10-most-popular-smartphone-companies-in-india/
https://www.counterpointresearch.com/india-smartphone-share/
https://www.ibef.org/blogs/mobile-phone-manufacturing-in-india-towards-a-brighter-future
https://industry.siliconindia.com/viewpoint/in-my-opinion/evolution-of-the-mobile-industry-in-india-nwid-8929.html
https://www.business-standard.com/article/companies/india-s-handset-industry-may-go-past-the-300-mn-unit-
mark-in-2019-119010401162_1.html
https://economictimes.indiatimes.com/tech/hardware/overall-india-handset-market-growth-to-fall-in-
2020/articleshow/72950192.cms?from=mdr
https://economictimes.indiatimes.com/tech/hardware/how-mobile-manufacturing-made-the-most-of-make-in-
india/articleshow/70628237.cms
https://www.eweek.com/mobile/smartphone-market-success-or-failure-10-critical-factors
https://www.businesstoday.in/technology/news/bif-highlights-challenges-faced-mobile-handset-manufacturing-
sector-india/story/267844.html
https://www.electronicsb2b.com/eb-specials/industry-report/mobile-phone-manufacturing-in-india-a-success-story/
https://www.slideshare.net/hemanthcrpatna/a-project-report-on-brand-preference-of-mobile-phones-8190407

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https://www.scribd.com/doc/17210522/a-project-report-on-Brand-Preference-of-mobile-phones-among-ghaziabad-
students-Bulbul

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