Consumer Behavior

A study of consumer purchase behavior of mobile phones in India

2019-21

Submitted To: Submitted By:

Dr. Rekha Attri Ravi Jaiswani

(JI/2019-21/0091)
 Table of Content

i. Introduction………………………………………………………………………3

ii. Questionnaire…………………………………………………………………3 - 4

iii. Frequency Analysis……………………………………………………...……5 - 7

iv. Independent Sample T-Test…………………………………………………….8

v. One Way ANOVA (F-Test).………………………………………………...…...9

vi. Consumer Behavior Model…………………………………………………….14

vii. Conclusion & Findings………………………………………………………….16

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Introduction

Wireless communication has emerged as one of the fastest diffusing mediums on the planet,
fueling an emergent “mobile youth culture”. Mobile phone use and, in particular, the rise of
texting has become a central part of teens’ lives. They are using their phones to stay in touch
with friends and parents, they are using them to share stories and photos, they are using them
to entertain themselves when they are bored. They are also using them to micro-coordinate
their schedules and face-to-face gatherings. And some are using their phones to go online to
browse, to participate in social networks, and check their emails.

Customer purchase behavior is the process by which individuals search for, select, purchase,
use and dispose of consumer durables, in satisfaction of their needs and wants. The main aim
of studying consumer purchase behavior is to meet and satisfy the needs and wants of the
target customers and also to increase the sales and the profit of the company by satisfying the
customers. By doing this, the goodwill of the company is also maintained.

This study gives a brief about the perception & buying behaviour of customers towards
various mobile phone brands, customer preference level associated with different mobile
phones, major features which a customer looks for in a mobile before making a purchase,
amount of money he is willing to spend, frequency of replacing mobile phones and factors
that influence decision- making in purchasing a mobile phone.

It also evaluates the product and their satisfaction level, how consumer react and respond
towards advertisement of the product. The scope of this study is to cover the full view of the
customers and their preference pattern. The Research is based on sampling method and
sample size is 113 respondents.

Questionnaire

Ques. 1 Name: _______________________________

Ques. 2 Gender: Male / Female / Other / Prefer not to say

Ques. 3 Age (In years): Below 15 years / 15-20 / 21-25 / 26-30 / 31-35 / Above 35

Ques. 4 Occupation: Business / Service / Profession / Homemaker / Student

Ques. 5 Annual Income Level: Below 2,50,000 / 2,50,000-5,00,000 / 5,00,000-7,50,000 /

7,50,000-10,00,000 / Above 10,00,000

Ques. 6 Which brand of mobile phone are you using right now: Samsung / Apple / OPPO /
VIVO / Panasonic / Micromax / Redmi / Realme / Honor / Lenovo / Motorola / Huawei /
Poco / Nokia / Oneplus

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Ques. 7 How long are you using right now: Less than 6 months / 6 months – 1 year / 1 year –
1.5 year / 1.5 year – 2 year/ 2 year – 2.5 year / 2.5 year – 3 year/ Above 3 years

Ques. 8 Which is your favorite brand in mobile phone: Samsung / Apple / OPPO / VIVO /
Panasonic / Micromax / Redmi / Realme / Honor / Lenovo / Oneplus

Ques. 9 Why do you like the brand you choose above: Appearance / Price / Functions or
Features / Brand Image / Service Quality / Camera Quality / Battery Backup / Display
Quality / Processor (You can choose more than 1 option)

Ques. 10 What amount would you be willing to spend on a mobile phone: Less than 5,000 /
5,000 – 10,000 / 10,000 – 15,000 / 15,000 – 20,000 / 20,000 – 25,000 / 25,000 – 30,000 /
30,000 – 35,000 / 35,000 – 40,000 / 40,000 – 45,000, 45,000 – 50,000 / More than 50,000

Ques. 11 Where do you often see the mobile phone advertisement: Television / Newspaper /
Magazines / Internet / Hoarding (You can choose more than 1 option)

Ques. 12 How often do you change your mobile phone: Every 6 months / Every 1 year /
Every 1.5 Year / Every 2 Year / Every 2.5 Year / Every 3 Year

Ques. 13 Do you consider exchange option before buying a new mobile phone: Yes / No /
Maybe

Ques. 14 What do you do with your old phone after buying the new mobile phone: Sell /
Exchange / Keep it as a backup option / Pass it on to any other family member

Ques. 15 Which medium you prefer for buying a mobile phone: Brick & Mortar (Mobile
Retailers) / Company Outlet / Online

Ques. 16 Do you consider EMI option before buying a mobile phone: Yes / No / Maybe

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Frequency Analysis

(Demographic Analysis)

Gender of Respondent Percent

Male 58
Female 42

Age of Respondent Percent

15 - 20 0.9
21 - 25 89.3
26 - 30 8
31 - 35 0.9
Above 35 0.9

Occupation of Respondent Percent

Business 7.1
Service 8.9
Profession 2.7
Homemaker 0.9
Student 80.4

Income of Respondent Percent

Below 2,50,000 48.2
2,50,000 - 5,00,000 22.3
5,00,000 - 7,50,000 16.1
7,50,000 - 10,00,000 3.6
Above 10,00,000 9.8
Table:1.1

Analysis: The majority of the respondent are Male which is 58% and 89.3% of the
population belongs to the age category between 21-25. If we further classify the audience on
the demographic basis, it can be seen that majority of the chunk is of students. Whereas, only
9.8% of the population earn above Rs. 10,00,000 per annum, most of the population’s income
is below Rs. 2,50,000.

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 Brand of Mobile Phone Favourite Brand
1%
1%
13% 18%
1% 23%
1% 36%
2%
5%
2%
14%
29%
29% 6% 1%
1% 10%
2%
3%
2% 2%
Samsung Apple OPPO VIVO
Redmi Realme Honor Lenovo Samsung Apple OPPO
Motorola Huawei Poco Nokia VIVO Redmi Realme
Oneplus Lenovo Honor Oneplus

Fig. 1.1 Fig. 1.2

Analysis: By looking at the data it can be observed that, there are 4 brands that rule the
market, Samsung, Apple, Redmi and OnePlus. But if we look at the favorite brands, it can be
seen that there is a very stiff competition between apple and oneplus, but oneplus remains to
be people’s favorite.

EMI Option Exchange Option

17% 22% Yes Yes

No 30% No
40%
Maybe Maybe

61% 29%

Fig. 1.3 Fig. 1.4

Analysis: According to the data, 61% of the people are indifferent about the availability of
the EMI option while buying mobile phones whereas it can be seen that 40% of the people
look for availability for exchange options.

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 Frequency Old Phone

Sell
Every 1 year Exchange
10% Every 1.5 year 13%
28% 27% Keep it as a
13% Every 2 year backup option
Every 2.5 year Pass it to any
Every 3 year 24% other family
member
15%
34% 36%

Fig. 1.5 Fig. 1.6

Analysis: As per the data, people majorly change their mobile phones either in every 2 years
or every 3 years. And after changing their mobile phones, 36% of the people keep their old
phone as a backup option, 24% exchange it in lieu of new mobile phone and 27% of the
people pass it to any other family member. Only 13% of the people sell their old phones.

Medium Amount
Above 50,000 9
45,000 - 50,000 6
40,000 - 45,000 6
Brick and Mortar
Stores (Mobile 35,000 - 40,000 14
25% Retailer) 30,000 - 35,000 4
Company Outlet 25,000 - 30,000 17
49% Online
20,000 - 25,000 16
26% 15,000 - 20,000 21
10,000 - 15,000 14
5,000 - 10,000 4
Less than 5000 1
0 5 10 15 20 25

Fig. 1.7 Fig. 1.8

Analysis: It can be clearly seen that the online medium has gained the significant market
share and is the leader in this market while there is a stiff competition between purchasing
mobile phones from company outlets and other mobile retailers. It can be also concluded that
nearly 60% of the people prefer spending between Rs. 10,000 – Rs. 30,000. Only 1 out of 112
and 9 out of 112 prefer spending less than Rs. 5,000 and more than Rs. 50,000 on purchase of
mobile phones respectively.
Independent Sample T-Test

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 Independent Samples Test

Sig. (2-
Questions tailed)
 
Age of Respondent 0.529
 
Occupation of Respondent 0.04
 
Income of Respondent 0.386
 
Which brand of phone are you using right now? 0.572
 
How long are you using this mobile phone? 0.738
 
Which is your favourite brand in mobile phone? 0.113
 
Why do you like the brand you choose above? (Appearance) 0.312
 
Why do you like the brand you choose above? (Price) 0.249
 
Why do you like the brand you choose above? (Functions/ Features) 0.861
 
Why do you like the brand you choose above? (Brand Image) 0.666
 
Why do you like the brand you choose above? (Service Quality) 0.662
 
Why do you like the brand you choose above? (Camera Quality) 0.789
 
Why do you like the brand you choose above? (Battery Backup) 0.504
 
Why do you like the brand you choose above? (Display Quality) 0.927
 
Why do you like the brand you choose above? (Processor) 0.03
 
What amount would you be willing to spend on a mobile phone? 0.054
 
Where do you often see mobile phone advertisement? 0.879
 
Where do you often see mobile phone advertisement? 0.58
 
Where do you often see mobile phone advertisement? 0.303

8
  
Where do you often see mobile phone advertisement? 0.405
 
Where do you often see mobile phone advertisement? 0.912
 
How often do you change your mobile phone? 0.618
 
Do you consider exchange option before buying a mobile phone? 0.552
 
What do you do with your old phone after buying the new one? 0.8
 
Which medium do you prefer for buying a mobile phone? 0.702
 
Do you consider EMI option before buying a new phone? 0.875
   
Table 1.2

Analysis: Appended above are the results of T-Test applied on gender. Majority of the results
are insignificant as the P value (significant value) are more than 0.05 (Alpha) at significant
level 95%. But if we look at the data, there are two places where alternative hypothesis is
accepted, and null hypothesis is rejected.
It can be concluded that there is a significant difference between the occupation of Male and
Female. And there is also a significant difference between Males and Females on the choice
of processor as their likings in choosing their favorite brand.

One Way ANOVA

1. On Age

ANOVA
  Sig.
Gender of Respondent 0.449
   
Occupation of Respondent 0.09
   
Income of Respondent 0.193
   
Which brand of phone are you using right now? 0.684
   
How long are you using this mobile phone? 0.041
   
Which is your favourite brand in mobile phone? 0.03
   
Why do you like the brand you choose above? (Appearance) 0.229
   

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 Why do you like the brand you choose above? (Price) 0.593
   
Why do you like the brand you choose above? (Function / Features) 0.303
   
Why do you like the brand you choose above? (Brand Image) 0.073
   
Why do you like the brand you choose above? (Service Quality) 0.216
   
Why do you like the brand you choose above? (Camera Quality) 0.054
   
Why do you like the brand you choose above? (Battery Backup) 0.46
   
Why do you like the brand you choose above? (Display Quality) 0.085
   
Why do you like the brand you choose above? (Processor) 0.429
   
What amount would you be willing to spend on a mobile phone? 0.027
   
Where do you often see mobile phone advertisement? (Television) 0.285
   
Where do you often see mobile phone advertisement? (Newspaper) 0.333
   
Where do you often see mobile phone advertisement? (Magazine) 0.033
   
Where do you often see mobile phone advertisement? (Internet) 0.003
   
Where do you often see mobile phone advertisement? (Hoarding) 0.522
   
How often do you change your mobile phone? 0.068
   
Do you consider exchange option before buying a mobile phone? 0.785
   
What do you do with your old phone after buying the new one? 0.284
   
Which medium do you prefer for buying a mobile phone? 0.387
   
Do you consider EMI option before buying a new phone? 0.132
Table 1.3
Analysis: Appended above are the results of One-Way ANOVA (F-Test), applied on age of
the respondents. Majority of the results are insignificant as the P value (significant value) are
more than 0.05 (Alpha) at significant level 95%. But if we look at the data, there are a few
places where alternative hypothesis is accepted, and null hypothesis is rejected.
There is a significant difference between the age groups, in the duration of using the mobile
phone and their favorite brands as well. Also, there is a significant difference between the age

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groups in the amount willing to spend on mobile phones and advertisement seen on
magazines and internet.

2. On Occupation

ANOVA
  Sig.
Gender of Respondent 0.115
   
Income of Respondent 0.801
   
Which brand of phone are you using right now? 0.498
   
How long are you using this mobile phone? 0.753
   
Which is your favourite brand in mobile phone? 0.121
   
Why do you like the brand you choose above? (Appearance) 0.168
   
Why do you like the brand you choose above? (Price) 0.085
   
Why do you like the brand you choose above? (Function / Features) 0.43
   
Why do you like the brand you choose above? (Brand Image) 0.271
   
Why do you like the brand you choose above? (Service Quality) 0.445
   
Why do you like the brand you choose above? (Camera Quality) 0.695
   
Why do you like the brand you choose above? (Battery Backup) 0.239
   
Why do you like the brand you choose above? (Display Quality) 0.885
   
Why do you like the brand you choose above? (Processor) 0.61
   
What amount would you be willing to spend on a mobile phone? 0.725
   
Where do you often see mobile phone advertisement? (Television) 0.404
   
Where do you often see mobile phone advertisement? (Newspaper) 0.4
   
Where do you often see mobile phone advertisement? (Magazine) 0.838
   
Where do you often see mobile phone advertisement? (Internet) 0.002

11
    
Where do you often see mobile phone advertisement? (Hoarding) 0.518
   
How often do you change your mobile phone? 0.505
   
Do you consider exchange option before buying a mobile phone? 0.602
   
What do you do with your old phone after buying the new one? 0.089
   
Which medium do you prefer for buying a mobile phone? 0.867
   
Do you consider EMI option before buying a new phone? 0.135
   
Age of Respondent 0
Table 1.4

Analysis: Appended above are the results of One-Way ANOVA (F-Test), applied on
occupation of the respondents. Majority of the results are insignificant as the P value
(significant value) are more than 0.05 (Alpha) at significant level 95%. But if we look at the
data, there is a place where alternative hypothesis is accepted, and null hypothesis is rejected.
It can be concluded that there is a significant difference between the occupation of people and
seeing advertisement on internet.

3. On Income

ANOVA
  Sig.
Gender of Respondent 0.719
   
Which brand of phone are you using right now? 0.953
   
How long are you using this mobile phone? 0.629
   
Which is your favourite brand in mobile phone? 0.153
   
Why do you like the brand you choose above? (Appearance) 0.661
   
Why do you like the brand you choose above? (Price) 0.625
   
Why do you like the brand you choose above? (Function / Features) 0.719
   
Why do you like the brand you choose above? (Brand Image) 0.438
   
Why do you like the brand you choose above? (Service Quality) 0.874
   

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 Why do you like the brand you choose above? (Camera Quality) 0.155
   
Why do you like the brand you choose above? (Battery Backup) 0.24
   
Why do you like the brand you choose above? (Display Quality) 0.766
   
Why do you like the brand you choose above? (Processor) 0.518
   
What amount would you be willing to spend on a mobile phone? 0.024
   
Where do you often see mobile phone advertisement? (Television) 0.146
   
Where do you often see mobile phone advertisement? (Newspaper) 0.23
   
Where do you often see mobile phone advertisement? (Magazine) 0.762
   
Where do you often see mobile phone advertisement? (Internet) 0.23
   
Where do you often see mobile phone advertisement? (Hoarding) 0.808
   
How often do you change your mobile phone? 0.754
   
Do you consider exchange option before buying a mobile phone? 0.418
   
What do you do with your old phone after buying the new one? 0.804
   
Which medium do you prefer for buying a mobile phone? 0.207
   
Do you consider EMI option before buying a new phone? 0.926
   
Age of Respondent 0.169
   
Occupation of Respondent 0.003
Table 1.5
Analysis: Appended above are the results of One-Way ANOVA (F-Test), applied on income
level of the respondents. Majority of the results are insignificant as the P value (significant
value) are more than 0.05 (Alpha) at significant level 95%. But if we look at the data, it can
be concluded that there is a significant difference between the income of people and the
amount which they are willing to spend on purchase of mobile phones. Also, there is a
significant difference between the income of people and their occupation.

Consumer Behavior Model

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 As mobile phones come under FMCD therefore, these will come under the category of
Limited Problem Solving as the criteria for evaluation is already established but need
additional features to differentiate between the brands. This type of decision is taken when
consumers purchase updated versions of a particular product like mobile phones. As per the
analysis above it is known that consumers prefer features like Functions/Features, Brand
Image, Service Quality, Camera Quality and Processor.

 Problem Recognition – Firstly, there’s a problem with the existing phone or some feature is
not there that is, it is very generic in nature. So, the problem is felt by the customer or
recognized that they want this particular model or feature in their phone. There is a need
recognition done by the customer for example someone needs a good camera phone instead
of carrying a huge digital camera (it would be more convenient).

 Information Search- After the problem is recognized the information search is done to gain
the relevant information like price, features, etc. In this the customer may recall his past
purchases and then keep that in mind and take decisions. For example, a person has used i-
phone so he will prefer apple only instead of android. But if the consumer does not have any
experience then he will indulge in extensive searching. In limited problem solving internal
search is more and limited external search is there. In external search the consumer may go to
the near-by shops or just surf the internet to get the information.

 Alternative Evaluation- In limited problem solving the alternative evaluation is done few
attributes like camera, memory space, version, price, brand, warranty, etc. And the decision
rules are very simple for example if a consumer wants to buy a mobile phone, in that process
the budget of the consumer is 25000 only. So, in this budget he cannot purchase the latest
version of apple or one-plus so he will have to stick to the available options and take a
decision.
And therefore, there will be few alternatives from which the consumer will have decide and
make the purchase.

 Post purchase- After the purchase of the mobile phone the dissonance (i.e. dissatisfaction)
will be very less as they come with warranties, after sales services, etc. Moreover, the
evaluation will also be limited as the evaluation is done on the performance like the battery
life, picture quality, smooth functioning, etc.

From the Howard Sheth Model the second level of decision making is applicable for the
purchase behavior in case of mobile phones. In this level that is the limited problem solving
the consumer has little knowledge about the market or partial knowledge about what they
want to purchase. And in order to arrive at a brand preference the consumer will compare
different brands. Moreover, from my analysis it is evident that people buy mobile phones in 2
or 3 years, which is not a frequent purchase.

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 Fig. 1.9

The above flow chart explains the Howard Sheth Model. This model will be explained in
synch with the analysis performed earlier and in reference to the buying behavior of
consumers in case of mobile phones.

Stimulus ambiguity- In this stage the consumer is not very sure and there is not much of
stimulus to catch attention of the consumer. Therefore, companies start giving inputs in the
form of the following: -

o Quality: Companies gives this type of input via its marketing communication
strategies. Like for example, Apple advertises its quality via its advertisements.

o Price: Many companies along with quality also gives information about the price of
the product. Like for example, if we look at various Chinese companies like OPPO &
VIVO they solely focus on communicating their inexpensive prices.

o Distinctive: It shows that how a particular brand is different or advanced in any form
from its close competitor.

o Service: In this aspect, companies generally talk about the post-purchase service
related to the product.

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 o Availability: It basically talks about the availability of the product to its end user.
There are various mediums available to sell. Online medium has an edge over the
other two mediums as per the analysis.

But if the consumer is not getting these inputs from the company then they do overt search
i.e. they search about the product themselves.

o Quality
o Price
o Distinctive
o Service
o Availability

Also, the consumers take input from their family as well. Before buying something one
mostly takes reference or suggestion from their family, friends or relatives. And after these
people give their inputs one can do analysis.

By using the marketing communications companies gain the attention of the consumers and
then through the five sensory organs the consumer assimilates, organizes and interpret the
stimulus and finally forms a perception. Now, after perceiving the motivation of the
consumer comes into play that whether his motivation to buy the product is high or low. If he
his highly motivated to buy a product he will not take much time to make the purchases but if
the motivation is low then he will take time. For example, the motherboard of a person’s
phone is not working properly. So, he is thinking to purchase a new phone. Now in this case
the person can wait for some time and purchase in next month because his motivation is low.

When he makes a decision to buy the consumer will look for various other choices and
evaluate the other alternatives. And when the company is doing marketing communication
the consumer understands the various brands like apple, one-plus, Samsung use marketing
communications therefore, we as consumers comprehend these brands. And based on these
brand comprehension and the consumer's perception attitude is formed. That is the attitude
towards the brand is established like consumers in my research Samsung, Apple, Realme and
Oneplus has positive attitude towards these companies. Moreover, Apple is expensive, and
the consumer may like the product, has positive attitude towards it but may not buy Apple
because of the budget constraint.

Now this attitude and brand comprehension together gives confidence to the consumer and all
these together forms an intention of the consumer, that whether he should buy or not. After
this purchase intention the consumer takes an action i.e. purchases mobile phone.

Conclusion & Findings

 It can be concluded that oneplus is giving a tough competition to apple in

preference of people.
 It can also be concluded that online medium of selling mobiles phones is most
preferable these days so companies should give lucrative offers online to
enhance sales.
 As the most of the customers uses Samsung, Apple, Realme and Oneplus mobile

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 phones the other brands of mobiles should enhance their sales.
 As the customers buy mobile phones because of their functions, quality and
price so the mobile companies should maintain it and also try to improve other
factors in mind.
 As most of the customers are ready to buys mobile phones in the range of 10000 to
30000 so the mobile phone companies should increase the production of the
mobiles in the range of 10000 to 30000
 As It has been found that people are indifference of EMI availability and they want
exchange options so companies should focus in this aspect as well.

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