SUMMER INTERNSHIP

On

CONSUMER BUYING BEHAVIOUR AND PURCHASE PREFERENCES FOR SMARTPHONES:

A STUDY ON GRADUATES IN DELHI/NCR

By

Piyush Negi
A0101919279

MBA Class of 2021

Under the Supervision of

Dr. Smrita Sinha

Associate Professor, HOD, Business Communication

In Partial Fulfilment of the Requirements for the Degree of

Master of Business Administration – General
At

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA
 DECLARATION

Title of Summer internship Consumer Buying Behaviour and Purchase Preferences for Smartphones: A

Study on Graduates in Delhi/NCR

I declare

(a) That the work presented for assessment in this summer internship Report is my own, that it has not

previously been presented for another assessment and that my debts (for words, data, arguments, and ideas)

have been appropriately acknowledged.

(b) That the work conforms to the guidelines for presentation and style set out in the relevant documentation.

(c) The Plagiarism in the report is 9 % (permissible limit is 15 %)

Date: 28-05-2020

Piyush Negi
A0101919279
MBA (Class of 2021)

ii
 CERTIFICATE

This is to certify that Piyush Negi student of Masters of Business Administration – General at Amity
Business School, Amity University Uttar Pradesh has completed the summer internship Report on
“Consumer Behaviour: A study of purchase patterns and buying behavior for smartphones among graduates
in Delhi/NCR”, under my guidance.

The report has been checked for Plagiarism and is within limits of acceptance.

Dr. Smrita Sinha

Assistant Professor, HOD

Department of Business Communication

iii
 ACKNOWLEDGMENT

I Piyush Negi, student of Amity Business School, Noida would like to use this opportunity to express my
gratitude towards everyone who has supported me throughout this project.

I have conducted this research on the topic “Consumer Buying Behaviour and Purchase Preferences for
Smartphones: A Study on Graduates in Delhi/NCR” and I would like to express my warm thanks to my
faculty guide Dr. Smrita Sinha for her aspiring guidance and invaluably constructive criticism throughout
the length of this project.

I am also sincerely grateful to my family, friends, and faculty at Amity Business School, Noida for sharing
their truthful and illuminating views on several issues related to the project.

iv
 ABSTRACT

Consumer behavior towards smartphones has progressively been a focal point of various marketing studies.
Specifically, studying the purchase process ranging from buying motivation to post use behavior. These
studies affirm that various factors have an impact on consumer behavior towards smartphone purchase
decisions by influencing their motivation, lifestyle, and perception. Indian economy is one of the quickest
developing economies around the globe. The smartphone industry in India is extensively expanding and is
currently the second-largest market in terms of smartphone shipments. Smartphones have now become
fundamental parts of personal as well as professional life. This study breaks down the external and internal
factors influencing consumers’ purchase decisions. The study likewise centers around customer mentalities
for smartphone brands and the impact the brand names have on purchase decisions. The rapid growth in
smartphone use is a known actuality crossing all age and sexual orientation limits. Therefore, this study
investigates the key variables that influence consumer behavior towards smartphones.

v
 TABLE OF CONTENTS

PAGE
CHAPTER PARTICULARS
NO.
1. INTRODUCTION
 Introduction 1–5
 Market Insights

2. LITERATURE REVIEW 6 – 11

3. RESEARCH METHODOLOGY
 Objectives
 Methodology
 Sampling 12 – 14
 Research design
 Sample Size
 Data Collection Tools

4. DATA ANALYSIS 15 – 26

5. LIMITATIONS AND CONCLUSION

27 – 29

6. REFERENCES 30 – 31

7. ANNEXURE
 Survey Questionnaire 32 – 42

vi
 1

CHAPTER 1
INTRODUCTION
 2

Introduction
Today, smartphones have become an indispensable part of daily life and an integral part of personal
communication across the globe. The smartphone market is categorized by cut-throat competition where
manufacturers are constantly fighting to find a competitive edge and differentiate themselves from the crowd
and persuading consumers to choose their brand over the competitors. Various studies conducted to
determine the factors that influence smartphone customers’ purchase decisions. These factors may be related
to the characteristics of the consumer and the features associated with smartphones. Price, features, quality,
brand name, durability, social factors are some of the major factors that are highlighted across various
studies. This pushes the smartphone manufacturers to consistently surpass consumer expectations.

Market Insights
India is currently the 2nd largest smartphone market globally after China. Indian smartphone market
surpassed the USA reaching 158 million shipments in the year 2019 with 7% YoY growth. Also, India is
ranked 2nd in the average time spent on the mobile web over smartphones across the Asia Pacific. The mix of
favoring consumer behavior and very high sales volumes has transformed India into an attractive market for
global vendors.
The smartphone industry is continually evolving and has become profoundly competitive with significant
worldwide players confronting solid rivalry from the local players, therefore making it increasingly difficult
for them to hold their pieces of the pie. China-based manufacturers are further reinforcing their hold in the
Indian smartphone market with their aggregate market share reaching increasing from ~34% in the year
2016 to ~72% in 2019.
According to market research firm techARC, there are currently ~500 million smartphone users in India as
of December 2019, a 15% increase YoY from 2018, and this number is expected to reach ~900 million by
the year 2022. As smartphones continue to become an integral part of everyday life, flagship products from
domestic as well as foreign manufacturers in the mid-tier range, packed with powerful features at a
reasonable price are expected to make a huge impact in the coming years.
It isn't stunning to see India outperform the USA given its larger population size and being a developing
economy where increasingly more individuals are moving towards adopting smartphones. Be that as it may,
this will eventually significantly affect how smartphone manufacturers sell their products in the near future.
They might be bound to configure smartphones in light of the Indian customers whether or not there are
benefits in other parts of the globe.

2019 Smartphone Market Share

 3

Others
14.2% Xiaomi
28.6%

Realme
10.6%

Oppo
10.7%

Samsung
Vivo 20.3%
15.6%

Smartphone Shipments 2018 2019

Volume Share Volume Share YoY Unit
(in Mn) % (in Mn) % Change
Xiaomi 39.9 28.3% 43.6 28.6% 9.3%
Samsung 31.9 22.6% 31.0 20.3% -2.8%
Vivo 14.2 10.1% 23.8 15.6% 67.6%
Oppo 10.2 7.2% 16.3 10.7% 59.8%
Realme 4.4 3.1% 16.2 10.6% 268.2%
Others 40.5 28.7% 21.6 14.2% -46.7%
Total 141.1 100.0% 152.5 100.0% 8.1%
Source: IDC Quarterly Mobile Phone Tracker, Feb 2020

Chinese smartphone brands Oneplus, Xiaomi, Realme, Vivo, Oppo accounts for over 72% of the mobiles
sold in India, while rest is majorly taken by Apple, Samsung, Google, and Asus.

Currently, Xiaomi leads the Indian smartphone market with shipments rising 9.3% YoY to 43.6 million units
in 2019. Samsung held second place but declined 2.8% YoY to 31 million units in 2019. Another Chinese
player Vivo had a strong run in 2019, rapidly closing in on Samsung and is expected to overtake it in the
year 2020. Its 2019 shipments grew 67.6% YoY shipping 23.8 million units in 2019. Fourth positioned
Realme was the top-performing merchant in 2019, registering a shipment growth of 268.2% YoY, the
highest for any vendor. Oppo claimed a spot in the top five with 16.3 million unit shipments in 2019,
growing by 59.8% YoY. Apple registered its best-ever performance in India with shipments growing 1.6
million in 2018 to 2 million in 2019.

Factors like availability of good quality affordable smartphones, expansion of online as well as offline
channels, expansion of 4G/LTE networks by the operators are among the key reasons driving the
Smartphone user growth.
 4

India's smartphone installed base increased by 15% in 2019 to reach 502.2 million, primarily owing to
brands like Xiaomi and Realme that helped bring new users to the smartphone ecosystem, market research
firm techARC said in a report Thursday. As per the finding, Samsung led the smartphone install base in
2019 with a 34% share followed by Xiaomi (20%), Vivo (11%), Oppo (9%), and Lenovo (3%) respectively.

India's smartphone installed base expanded by over 15% in 2019 to arrive at 502.2 million, principally
attributable to brands like Xiaomi and Realme that carried new customers to the smartphone ecosystem.
Samsung was the leading smartphone brand in terms of the installed base in 2019 with ~34% share followed
by Xiaomi ~20%, Vivo ~11%, Oppo ~9%, and Lenovo MBG ~3% respectively.

Realme, Vivo, and OnePlus were the leading brands in terms of % net additions to the user base in 2019.
Realme increased its client base by ~49%, Vivo ~44%, and OnePlus by ~41%. Other significant brands
including Samsung, Xiaomi, and OPPO added ~9%, ~25%, and ~36% respectively.

The increasing interest in smartphones among individuals is the fundamental reason that has enhanced the
enthusiasm to explore this topic. Consumer’s fixation on smartphones has been expanding rapidly. The point
of this exploration is, therefore, to discover the consumer behavior for smartphones in context with the
Indian Market, explicitly relating to graduates in the Delhi/NCR region. The study aims to discover the
purposes for individuals buying a smartphone, the elements affecting their choice, and the inspirations
driving the purchase decisions.

Each consumer has distinct characteristics that influence their buying behavior. Social factors such as
family, roles, groups, status, and personal factors such as age, occupation, lifestyle, personality, and self-
concept are those attributes that could influence their ultimate choices. Even when cheaper smartphones are
accessible in the market, for what reason do individuals purchase costly ones? Price, quality, country of
origin, marketing, brand, word of mouth, sales, etc. could be a few factors that the consumers might think of
 5

before making a choice. How much does the brand affect the purchase decision? As there are various types
of smartphones available in the market with varying prices; what is the difference between them?
Furthermore, how do they impact the customer buying decision?
 6

CHAPTER 2
Literature Review
 7

This section provides a review and synthesis of the literature, it clarifies the consumer decision-making
process with the different models which have been utilized as the research structure. All the external and
internal elements which impact the consumer in the decision-making process have been clarified under this
part. It explains the importance of brand influence on the consumer in the smartphone industry. There have
been various researches that have been conducted in the past in and around this subject hence, I have studied
a few research papers to gain meaningful insights and to get a better hold of the topic.

1. Bishal Nagarkoti, “Factors Influencing Consumer Behavior of Smartphone Users”, 2009 – This study
found that customers are ready to pay high prices for smartphones so as to get the latest technology and
influential brands.
2. Osman, M.D., Talib, A.Z., Sanusi, Z.A., Tan S.Y., and Alwi A.S. “A Study of the Trend of Smartphone
and Its Usage Behavior In Malaysia”, 2012 – The study suggests that the price isn't the most critical
factor that impacts the smartphone purchasing decision. Customers also view various other factors, such
as design, connectivity, durability, and overall performance. A combination of these factors leads the
consumers to a purchase decision.
3. Yu-Jui Liao, “Consumer Behavior On Smartphone”, 2012 – This study concluded that when buying a
smartphone, a consumer prefers the brand image over factors such as price, design, display, design,
hardware, software, and camera quality.
4. Sudha Rani and Neeta Sharma, “Consumer Behavior towards Usage of Smartphone (In Rohtak City)”,
2014 - The study recommends that the maximum customers bought the Smartphone for business-related
purposes. The price, design, quality, and performance variables assume a significant role in smartphone
purchase decisions.
5. Surendra Malviya, Dr. Manminder Singh Saluja, and Avijeet Singh Thakur, “A Study on the Factors
Influencing Consumer's Purchase Decision Towards Smartphones in Indore”, 2014 – The study
concluded that consumers in Indore city are purchasing Smartphones irrespective of the price. The study
also adds that features like brand, technology, social image, and durability also play a major role in
consumer purchase decisions.
6. Deepa Guleria, “A Study of Consumer Preference for Smartphone: A Case of Solan Town of Himachal
Pradesh” 2015 - The study helps realize key components that create customers' inclination towards a
specific product. Likewise, it recognizes factors that are liable for building a preference for Smartphones.
It also identifies factors that are responsible for building consumer preference for Smartphones and
various usability features. Additionally, the study shows intriguing deductions to help the organizations
during “Segmentation, Targeting, and Positioning” of their products.
 8

7. Dr. S.K. Kaushal and Rakesh Kumar, “Factors Affecting the Purchase Intension of Smartphone: A Study
of Young Consumers in the City of Lucknow”, June 2016 - The study construed that the consumers are
using or desire to buy a Smartphone in light of the fact that their group of friends or family is using it.
Subsequently, they are impacted by various other external factors that influence their purchase decisions.
The needs of individuals for materialism are on a rising scale. Every individual wants to feel good by
increasing their social status.
8. Deepika Ganlari, Pradeep Kr. and Chandan Dutta. “A study of consumer buying behavior of mobile
phones”, 03, May 2016 - Examined consumer behavior towards smartphones in their study. The focal
point of this study is on the phases from selection to the post-utilization behavior of the consumer. So,
the consumers can be satisfied with the products by appropriately altering the product offerings as per
the needs and prerequisites of the customers. Here, the variables which impact the consumer demand for
smartphones are analyzed like income, status, tastes & preference, etc.
9. Nushrat Shabrin, Sarod Khandaker, Saad Bin Abul Kashem, Chn Kit Hie, Teresa Susila, "Factors
Affecting Smartphone Purchase Decisions of Generation-Y" 2017 – This study concludes that social
impact, item highlights, and brand picture have huge positive effects on the cell phone buying choices.
Different components, for example, comfort, reliance, cost, and social needs were measurably irrelevant.
10. M. Mohan Raj, J Suresh Kumar, “A Study on Customer Buying Behaviour Towards Mobile Phones in
Online Shopping”, September 2019 - This study suggested that for a modern consumer a smartphone is
not simply a want anymore but it is more of his need now. The study also suggests that consumers value
the brand image while making a smartphone purchase decision and customers’ brand loyalty is very
scarce in the Indian smartphone market.

Consumer Decision Making

The principal issue in the idea of consumer behavior is the manner in which consumers develop, adapt, and
use decision-making strategies (Moon, 2004). It is defined as “the behavior pattern of consumers, that
precede, determine and follow the decision process for the acquisition of need-satisfying products, ideas or
services” (Du Pelesis, 1991).

Consumers' decision-making process has always time been a focal point of fascination for many researchers.
Earlier studies used to be focused on purchase decisions (Loudon and Bitta, 1993). However, it was during
the 1950s that the advanced concept of marketing was consolidated into the investigations of consumer-
decision making process (Engel, Blackwell, and Miniard, 1995). Contemporary studies demonstrate that
there are various activities other than the purchase which impacts the decision-making process. Immense
quantities of studies have analyzed this issue and various models have been developed likewise with a plan
to delineate the consumer decision-making process and its influential variables.
 9

Consumer behavior incorporates a wide scope of studies about the dynamic procedures that a customer
follows at the hour of making a purchase. As demonstrated by Kotler, 2009, "Purchaser conduct is the
investigation of how people or gatherings purchase, use, and discard products, administrations, thoughts, or
experience to fulfill their necessities or needs". Earlier, consumer behavior was taken as the conduct that
mirrors the buyers' and sellers' association at the hour of sale. However, presently marketers believe that
consumer behavior is a continuous procedure and not simply something that occurs at the hour of purchase
or sale (Solomon, 2006).

Marketers consider a consumer to be a "man with a problem" and his purchase is a response to that problem.
The consumer decision-making process is very intriguing to various organizations who are making a decent
attempt to comprehend the process so as to discover the needs and preferences of the consumers. The
marketers seek to gain answers to "what, where, how, when, and why" the consumers purchase, and so on.
Although it is simpler for them to discover the answers to most of these, it is still hard to track down "why"
they purchase. The explanation is "the answers are often locked within the consumer’s head" - Kotler and
Keller, 2009.

By and large, a consumer goes through 5 phases of decision-making to arrive at his choice. To begin with,
the consumer sees the contrast between his present state and the perfect state and perceives his needs and
wants. This can likewise be stimulated by external factors. The consumer begins scanning the data for the
ideal product through various mediums like family, friends, companions, ads, and/or mass media.
Subsequently, after gaining adequate information, the consumer processes the data and assesses the
alternatives. Lastly, the consumer chooses the product that intently matches his desires. In the wake of
buying the item, the consumer will give a reaction to the marketer based on his satisfaction with the product
(Kotler, 2009).

Fig: Buyers Decision Making Process

 10

Organizations utilize different marketing endeavors to impact consumers’ choices. However, it is hard to
understand how customers will react to them. Marketing stimuli involve “product, price, place and
promotion” which the smartphone manufacturers use to impact the consumers’ purchase decisions. Aside
from these, there are other stimuli that significantly impact consumers. Economic factors like a nation's
economic conditions. Technological factors like R&D, analyzing usages and needs, and developing based on
it. Cultural factors like beliefs and practices, etc. These stimuli enter the consumers’ black box and
dependent on the impact these stimuli have, the consumer comes up with “observable buyer response:
product choice, purchase timing, dealer's choice, brand choice and, purchase amount”. (Kotler, 2009)

The Hawkins, Best and Coney Model of Consumer Behavior

This model is developed from the Engel, Kollat, and Blackwell model and further expands it to also
incorporate the external and internal influences. Hawkins, Best, and Coney (2004) concluded that the
consumer need is affected by both “external factors, like culture, subculture, social status, demographics,
family, reference groups, and marketing activities” as well as “internal factors, like learning, motives,
perception, memory, attitudes, personality, and emotions”.
 11

Fig: The Hawkins, Best, and Coney Model

Together, these factors structure a consumers’ lifestyle and his self-concept, prompting needs and desires
that drive the 5-phase decision procedure, i.e. “problem recognition, search for information, search for
alternatives and evaluation, selection and purchase, and post-purchase assessment”. Although the 5-phase
decision process, similar to the Engel, Kollat, and Blackwell model, sees factors, such as feelings and
emotions as an influential factor, it also takes the presumption that consumers always make a rational
purchase decision, evaluating choices before making a decision. However, past experience along with
perception, memory, learning, personality, motives, emotion, and attitudes may also influence the purchase
decision. Experience and acquisition may influence the internal and external elements, which would fortify
or alter consumer self-concept and lifestyle.
 12

CHAPTER 3
Research Methodology
 13

Objectives of the Research

 Recognize the underlying factors which assume a lead role in the selecting and purchasing smartphones
 To analyze the factors which influence and eventually propel the customers to buy a smartphone in the
Indian market particularly in the Delhi/NCR region
 To recognize and evaluate the attitudes and beliefs that influence consumer's buying behavior towards
smartphones in Delhi/NCR
 To develop a framework on the impact of external and internal influence affecting consumer self-concept
and lifestyle which results in decision-making
 Study consumer perception towards different smartphone brands
 To examine and study the effect of smartphone brands on purchase decision
 Study the consumer decision-making process

Research Methodology
Research Design

Research design provides an arrangement of strategies and techniques utilized in gathering and breaking
down information for conducting the research study. This is an exploratory research wherein the primary
data was collected through a structured questionnaire sent to students, businessmen, and service
professionals who have either completed or are pursuing graduation. Whereas, the secondary information for
the research was gathered from various research publications, journals, articles, trade magazines, blogs, and
websites.

The research was led with a sample size of 333 Smartphone users either working or pursuing higher
education in the Delhi/NCR region. Convenient sampling technique was used to identify the respondents.

A structured questionnaire was framed covering the demographic details of the respondents, smartphone
usage pattern and purpose, smartphone features, and factors influencing a smartphone purchase decision.

The survey responses were loaded in Microsoft Excel and Microsoft PowerBI software for preparing the
visual analysis. For analyzing the ranking based survey responses, the weighted average ranking method was
used, wherein the highest weights were assigned to the top rank, second-highest weight to the second rank,
and so on.
 14

Research Methodology Highlights:

• Data Source: Primary and Secondary Research

• Design: Survey-based Research
• Sampling Frame: Smartphone users of various age groups and various professions who have either
completed or are pursuing graduation in the Delhi/NCR region.
• Sampling Method: Convenience Sampling
• Sample Size: 333
• Questionnaire Type: Structured questionnaire with a reasonable scaling
• Question Types: Demographics, Likert Scale, Ranks, Multiple-Choice, and other closed-ended
questions
• Period of Study: April 2020 to May 2020
• Geographic Area of Study: Delhi/NCR
• Statistical Tools Used: Weighted Average Ranking Analysis
• Software Used: Microsoft Excel, Microsoft PowerBI, Google Forms, Google Spreadsheets
 15

CHAPTER 4
Data Analysis and Interpretation
 16

Demographics

Variables Category Frequency Percentage

<21 Years Old 54 16.2%

Age 21-24 Years Old 189 56.8%
25-28 Years Old 90 27.0%
Male 189 56.8%
Gender
Female 144 43.2%
Bachelor's Degree 149 44.7%
Education
Master’s Degree 184 55.3%
Student 261 78.4%
Current Occupation Service Professional 54 16.2%
Self Employed 18 5.4%
Total Responses 333

The study was conducted with the assistance of a structured questionnaire. There was a total of 333
responses which included people who have attained a minimum of bachelor’s degree or are currently
pursuing one. The above table shows a summary of the demographic details of the respondents.

 Total responses received was 333 from people either studying or working in the Delhi/NCR region
 There was an equivalent gender mix with 56.8% male and 43.2% female respondents. An equivalent
ratio of gender responses suggests that the data collected is free from any gender bias
 A maximum number of respondents fall in the age range between 21-24 Years and accounted for
56.8% of the total respondents. 27% all under the 25-38 year range while 16.2% of respondents were
from the age range of less than 21 years old
 184 or 55.3% of the respondents have a master’s degree or are currently pursuing one while 44.7% or
149 of the total respondents have either completed or pursuing a bachelor’s degree
 Maximum number of respondents were students (78.4%) while 16.2% were service professionals and
5.4% were self-employed

Which brand of smartphone do you currently use?

 17

3% 3% Frequency Percent
5%
Apple 90 27.0%
27% Apple
8% Samsung 90 27.0%
Samsung
OnePlus 45 13.5%
OnePlus
Xiaomi
Xiaomi 45 13.5%
14%
Realme Realme 27 8.1%
Vivo Vivo 18 5.4%
Motorola Motorola 9 2.7%
13%
Asus Asus 9 2.7%
27%
Total 333 100.0

 54% of respondents owned either an Apple (27%) or a Samsung (27%) smartphone with 90
respondents each
 OnePlus and Xiaomi shared the second spot after Apple and Samsung, with 45 (13.5%) owning a
OnePlus and 45 (13.5%) owning a Xiaomi smartphone
 Realme came in third with 27 (8.1%) of the total respondents owning a Realme device
 While the remaining share was taken up by Vivo (18, 5.4%), Asus (9, 2.7%) and Motorola (9, 2.7%)

Consumer Preferences
 18

Are you willing to switch your smartphone brand?

22%

No
Maybe
57% Yes
21%

57% of the respondents prefer their current smartphone brand and would not like to switch their smartphone
brand in the future, while 21% would consider changing their brand. 21% of the respondents were not sure
and would if they would switch or not.

Based on your own experience, how satisfied are you with your current Smartphone brand?

11%

Satisfied

32% Extremely Satisfied

57%
Neutral

57% of the respondents are satisfied while 32% are extremely satisfied with their current smartphone brands.
This is further emphasized by the fact that a similar number of respondents did not want to change their
smartphone brands in the future. The 57% satisfied and the 11% neutral customers would be willing to
change their smartphone brand if they were to receive greater value from some other brand of smartphone.

Which smartphone brand would you prefer to buy next?

 19

11%

3%

8%
40% OnePlus
Apple
Samsung
Xiaomi
Others

38%

~ 40% of the respondents say that they would prefer to buy a OnePlus smartphone when they would want to
upgrade to a new smartphone. This stems from the fact that consumers prefer products that provide a greater
value for the amount of money the consumers spend on it. OnePlus currently offers flagship-level features at
affordable prices along with great quality in comparison with many other flagship smartphones sold by its
competitors. Also, we see ~38% of the respondents aspiring to go for an Apple iPhone in their next
purchase, even though it costs much more than the competition based on the fact that it carries a premium
tag along with it and has high social prestige and value. Other brands that the respondents would consider
are Samsung, Xiaomi, Vivo, Google, and Realme.

How often do you upgrade to a new smartphone?

5%

22%
2-3 Years
1-2 Years
51%
More than 3 Years
< 1 Year

22%

This data gives us an insight into the life cycle and upgrade pattern for smartphones by consumers. We can
see here that ~51% of the respondents utilize their smartphones for at least 2-3 years before going for an
upgrade. ~ 22% go for an upgrade in 1-2 years while 22% upgrade their phones after using for more than 3
 20

years. There is a tiny share of people ~5% who upgrade their phones in less than a year. This is based on the
fact that there are generally not very significant advancements that come along every year in the smartphone
industry. There are basic upgrades launched every year which people generally don't feel worth upgrading to
and we see that every 2-3 years there is some new technology that is available that the consumers would
want to upgrade to.

Where do you get the Smartphone information before making a purchase decision?

3% 2%
6%
Internet Websites
6% 31%
Family/Friends
Social Media
13% Promotions
Dealers
Blogs
TV/Radio

19% 20% Magazines/Newspapers

The aim of this was to know as to which source do people generally go to gain information before making a
smartphone purchase decision. The respondents were asked the most relevant 3 choices that usually go to
before they decide to purchase. As expected, the maximum number of respondents agreed to use internet
websites and/or consulting their family/friends before making their purchase decisions.

 Internet websites were the most common source of information for the maximum of the respondents.
~31% of the respondents chose Internet Websites as their source of information
 ~20% of the respondents agreed to have consulted their Family members or close friend in making a
smartphone purchase decision
 ~19% went to social media platforms to gain information before making a purchase
 While 13% gained relevant information through company promotions
 Other sources that the respondents often looked at were Dealers (6%), Tech Blogs (6%), TV/radio
Advertisements (3%), and Magazines/Newspapers (2%)

When do you prefer to buy a smartphone?

 21

3%
16%
After Analyzing Reviews and
Market Response

Wait for Price Cuts

During Festive Sales

22% 59%

As soon as it is Launched and

Made Available for Purchase

We see here that there is very little (<3%) of the consumers who purchase a smartphone as soon as it is
launched and made available for purchase or pre-booking. While the majority of the respondents (~59%) buy
a smartphone only after analyzing the market reviews and the market response. The consumers wait for the
smartphones to hit the market and then analyze the reviews and responses in the market for It and then
decide whether they should go for the smartphone or not. There is also a set of consumers who would go for
purchase as soon as a sale is announced or the company announces price cuts on their products.

From where do you prefer to make your purchase?

5%

16% E-commerce Websites or

Apps (Amazon, Flipkart, etc)
41% Company Physical Store

Dealers/Resellers

Company Website

38%

The majority of the respondents (~41%) say that they prefer to make a purchase online through e-commerce
websites or applications. These channels generally provide a hassle-free shopping experience at the ease of
the consumers' home. Various offers and promotions run on online portals. Many of the brands such as
OnePlus and Realme have opted for an online-only channel as they have seen more and more consumers
opting for online mediums rather than physical stores. ~38% of the respondents prefer a company physical
 22

store to make the purchase where they can have a hand on experience and be guided by trained and qualified
company staff.

Factors Affecting Purchase Decisions

Brand Concern

Strongly Agree Agree Neutral Disagree Strongly Disagree

180
160
140
120
100
80
60
40
20
0
The brand is important while I prefer a well known and I care about how other I consider myself to be loyal
purchasing a smartphone prestigious smartphone brand people judge me based on to my smartphone brand
the smartphone I use

The brand concern deals with if the purchase decisions of a consumer are influenced by the brand name. The
respondents were asked to rate the following statements on a Likert scale
1. “The brand is important while purchasing a smartphone”
Maximum of the respondents either Strongly Agreed (40.5%) or Agreed (43.24%) with the statement
showcasing that the smartphone brand is of utmost importance for consumers while making a
purchase decision.

2. “I prefer a well-known and prestigious smartphone brand”

~78% of the respondents Agreed or Strongly Agreed that they would always prefer a well-known
smartphone brand which has a strong positive brand image.

3. “I care about how other people judge me based on the smartphone I use”
There was generally a disagreement with this statement, ~67% of the respondents either disagreeing
or strongly disagreeing with the statement. Some of the respondents (17%) did agree that they were
concerned about other people’s opinions and that it does affect their purchase decision.

4. “I consider myself to be loyal to my smartphone brand”

There were mixed responses to being loyal to a brand. ~37% either Strongly Agreed or Agreed to be
loyal. ~25% Disagreed or Strongly Disagreed to being loyal, while the maximum ~38% of the
respondents were not sure whether they would remain loyal to their brands

Price
 23

Strongly Agree Agree Neutral Disagree Strongly Disagree

160

140

120

100

80

60

40

20

0
I don't mind purchasing a I prefer buying a smartphone I think smartphones are I think the price is a vital
smartphone for a high price for a reduced price unnecessarily expensive element in judging the
quality of a smartphone

Price is a significant factor that impacts buyers while making a purchase decision. This section deals with
how much influence does the price have on the purchase decision of the consumers. Most of the respondents
remained neutral to purchasing a high priced smartphone suggesting that it is a cause of concern for them
and they will consider other factors also if a smartphone demanded a high price. ~86% of the respondents
were positive that they would prefer to buy a smartphone if it was available for a reduced price than the
initial price, suggesting that any discount and offers would attract the consumers to buy a particular
smartphone. ~84% of the respondents maintain that quality-price relationship exists meaning that the price
of a smartphone is an indicator of its quality. With a higher price, a consumer would expect a higher quality
of the smartphone.

Product Features
Hardware and software are important product features of a smartphone. Certain features are considered
necessary like calling, internet, etc while certain extra features like great cameras, health & safety features,
and the weight of the phone also impact consumer decision-making. Color and size are treated as additional
motivating factors.
300
Extremely Important Very Important Slightly Important Neutral Not Important
250

200

150

100

50

0
Design Screen Size Processor Internal Camera Audio User Battery life Durability Health and
and and RAM Storage Quality Quality Interface Fitness
Resolution (Heart Rate
Monitors,
ECG etc.)
 24

Here we can see that most of the respondents consider hardware features such as the Processor and RAM,
Storage Space availability, Camera Quality, and Battery life as extremely important features in a
smartphone. Software features like the user interface also is an important factor while considering a
smartphone. The design and Screen Size were also a bit important but were secondary, while there was a
mixed reaction in terms of availability of health and fitness features which means it would be appreciated if
they were included but would not necessarily be a deal-breaker for the consumers.
Dependency
Dependency on something means to use it intensely and habitually, and having a reluctance to stay away
from it. The smartphone now is not only a convenient tool for calling or messaging. People now use them for
a host of other reasons, including banking, gaming, emailing, photography, documenting, and, social
networking.

200 Strongly Agree Agree Neutral Disagree Strongly Disagree

180
160
140
120
100
80
60
40
20
0
In my day-to-day life, I feel anxious when I always use my I prefer online I feel easy to be on I am completely
usage of a my smartphone is not smartphone to deal shopping and banking social media sites dependent on my
smartphone is high with me with my job and through my using my smartphone smartphone
studies smartphone than my personal
computer

 ~73% of the respondents agreed that their day to day usage of smartphones is high and they are more or
less dependent on their smartphones to carry out their daily activities
 Some of the respondents agreed that they feel anxious while their smartphone was not with them. There
were mixed responses here but skewing more towards an agreement with the statement
 More than 80% of the respondents agreed to using their smartphones for several tasks related to their job
and studies
 ~65% of the respondents suggested that they prefer using their smartphones for shopping and banking
purposes making use of smartphone apps and mobile websites, while ~87% agreed that they feel more
comfortable accessing social media sites through their smartphone rather than a traditional PC or laptop
 ~73% of the respondents agreed that in general, they are highly dependent on their smartphones in
carrying out their day to day activities
Social Influence
Consumer behavior and the decision-making process are profoundly impacted by different social factors,
such as, "family, friends, companions, social roles, and status". Buying choices are affected by direct as well
as indirect role models. Indirect role models (e.g., celebrities) have a greater impact than direct role models
(e.g., parents or guardians). Social needs are the social necessities of an individual. With regards to
smartphones, they may represent the necessity for keeping in touch with friends, family, and associates.
Today, having a smartphone is a social necessity and is considered an important facilitator of social ties.
 25

180 Strongly Agree Agree Neutral Disagree Strongly Disagree

160
140
120
100
80
60
40
20
0
I feel like buying a new I usually consult my I want to have a high My friend always I usually look for reviews
phone when my family family and friend before specification phone as my persuades me to buy the and rating information on
and friends show their buying a new phone friend does same phone as theirs websites and social media
new phones to me

Looking at the general pattern in the data above it can very well be viewed that social factors such as
"family, friends, and, status" have a significant role in the consumer decision-making process. The
respondents agreed to being influenced by their parents and friends reviews and decisions. The respondents
additionally concurred that they typically counsel their family or companions while settling in a purchase
decision. Their choices are additionally significantly impacted by the reviews and ratings that the previous
user provides online on various media.
Please rank the following in the order of importance while making a purchase decision. (Brand Name,
Price, Durability, Features, Social Influence, After Sales Service)

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6

180
160
140
120
100
80
60
40
20
0
Brand Name Price Durability Features Social Influence After Sales Service

The respondents considered the price of the smartphone as the most important criterion and it was ranked in
the first place followed by the brand name. The durability of a smartphone came in at the third position
followed by features, social influence, and after-sales service.
 26

The ranks were calculated based on a weighted average score. Where, Rank 1 was given the highest weight
i.e 6, followed by Rank 2 which was given weight 5 and so on. This gave us the following results:
Rank 1-Price
Rank 2-Brand
Rank 3-Durability
Rank 4-Features
Rank 5-Social Influence
Rank 6-After Sales Service
Which statement do you agree with the most?

8% I prefer the latest available

technology, but till a certain
11% price limit

I prefer tried and tested

technology at attractive prices

13%
I prefer the latest available
technology, the price is
irrelevant
68%
I prefer to set a price limit and
choose from options in that
range

~68% of the respondents said that they would prefer to have the latest available technology in a smartphone
but with a capped price limit, anything above and beyond that price limit they would consider when the
prices go down while ~13% agreed that they only prefer tried and tested technologies that are already readily
available in the market and have sufficient positive market response.. to ~11% of the respondents it was
necessary to have the latest available technology whatever price it may be available at, they prefer to have
the latest tech without considering the price.
 27

CHAPTER 5
Limitations and Conclusion
 28

While exploring this research a few limitations were experienced. The research was led on a small sample
size of 333 respondents, a larger sample size could lead to progressively stronger outcomes. The sample
taken is of a limited geographic region i.e Delhi/NCR and hence can't be illustrative of the entire country.
Likewise, the sample was generally centered around individuals in the age group of 21-28 years, hence, it
doesn't represent all age categories equitably. The present research has taken in to account only limited
factors to comprehend the smartphone purchase decisions. However, there could be various other factors that
impact consumer behavior and smartphone purchase decisions.

The significant motivation behind this research study is to dissect consumer behavior towards smartphones
in the Indian market, particularly the Delhi/NCR region, by finding the elements which impact purchase
decisions and consumer behavior. This study suggests that price, brand, product design, features, and
performance have a significant impact on individuals' buying decisions. The ability of a product to fulfill a
need impacts customers’ behavior. Product performance, including “product hardware and software, user
interface, display, camera quality, and overall performance”, etc. additionally play an integral role in
consumer decision-making. The brand name and the price of a product have a significant effect on
perceiving the product quality, therefore, affecting the purchase decision and consumer buying behavior.

The finding shows that consumers in India have a very positive attitude towards smartphones as maximum
respondents used smartphones in their daily lives. The respondents were generally satisfied with their
smartphones as it met their desires and fulfilled their needs. After asking respondents if they would want to
change their smartphone brands majority of them responded negatively and said that they would want to
stick to their current brands.

The research also validates the impact of external and internal factors on buying behavior and buying
decision process. Our study shows that consumers are susceptible to external factors like “culture, social
status, family and friends, word of mouth and marketing activities”, and internal factors like “perception,
motivation, memory, learning, and attitude”. Consumers are affected by a blend of these elements as per
their necessities, wants, and desires. Brand helps consumers in identifying the quality of the smartphone.

The literature reviews pointed out this fact that that smartphone manufacturers build their brand image by
creating higher quality products, giving unparalleled after-sales service, and offering competitive pricing.
Our study has also bolstered these claims. The consumers considered user interface and processing as main
considerations that incline them towards a particular brand. Consequently, Smartphone organizations must
concentrate on making their interface user friendly, faster, and efficient processing, creating relevant &
useful applications, and incorporating innovative technologies to maintain a competitive edge over their
competitors.
 29

To summarise, customer preference for purchasing a Smartphone includes confounded services of stimulus
(motives) and response. These intentions or motives might be expressed or unexpressed and depend upon
deep-rooted needs or openly felt desires. When one makes a purchase, he/she psychologically fulfills both a
want and a desire. Today the modern consumer not only wants to know about the product and its features but
also wants to know how and why the product would be beneficial to him/her. They not only look for what
the product can do but also what it means. Significant discoveries and insights are available out of the
research study which can be useful not only for the consumer or customer but also for the smartphone
manufacturers.
 30

CHAPTER 6
References

References
 31

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revenue-streams-report/73760769
 32

CHAPTER 7
Appendix

Survey Questionnaire
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