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STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES.

RESEARCH REPORT

ON

³STUDY OF STUDENTS BEHAVIOUR WHILE PURCHASING MOBILE PHONES´

BY

SAMIKSHA PETHE

2010- 2011

IN PARTIAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION DEGREE

DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY, RAIPUR

DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY, RAIPUR (C.G.)

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STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES.

DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY
Satya Vihar, Vidhansabha-Chandrakhuri Marg, Gram Pacheda, Tehsil Arang,

District - Raipur (C.G) 492101. Ph: 0771-42 00200-09. Fax: 4200110 Website: www.dimatindia.com, Email: info@dimatindia.com

CERTIFICATE

This is to certify that Mr. /Miss ________________________________________Of DIMAT/DSME MBA Semester ±II has successfully completed the research report in partial fulfillment of requirement for the award of MBA Degree prescribed by the Chattisgarh Swami Vivekanand Technical University, Bhilai.

This report is the record of authentic work carried out by the student during the academic year 2010-11.

Prof. Shailaja Triwedi Internal Guide

Prof. (Dr.) R. Satish Benadict Academic Head (Faculty of Management)

DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY, RAIPUR (C.G.)

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STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES.

DECLARATION

I, Mr. /Ms _____________________________________________ hereby declare that this research report is the record of authentic work carried out by me during the academic year 2010-2011.

(

) Signature of the student

( Name of the student

)

DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY, RAIPUR (C.G.)

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Faculty of Management who stood behind me as a constant source of inspiration and helped me in bringing the project the day of success.) Page 4 . ACKNOWLEDGEMENT I hearty thanks to Prof. Last but not least I am highly thankful to all my friends and family members for constant support and helped in overcoming all the critical situation with attitude of always keeping moral high. Date: 14/04/2010 DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. Suresh Pattanayak.G. research supervisor.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES. for giving me opportunity to do this assignment and for her support and guidance. without which this would not have been possible. RAIPUR (C. I would also like to thanks to Prof. Shailaja triwedi.

STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES. RAIPUR (C.) Page 5 . Table of content SL NO: 1) 2) 3) CHAPTER 1 Certificate Declaration Acknowledgement Introduction y y y CHAPTER 2 Literature review Expected features Indian mobile industry 14-15 PARTICULARS PG NO: 2 3 4 6-13 Research methodology y y y y Research design Research instrument Data analysis method Data collection CHAPTER 3 Analysis and interpretation of data y y y Data analysis Limitation of study Finding 16-27 4) 5) 6) Recommendation Conclusion Questionnaire 29 30 31-32 DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY.G.

STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES. CHAPTER 1 INTRODUCTION DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. RAIPUR (C.G.) Page 6 .

On the contrary.purchase services¶. µbrand¶. There were significant differences between different students as regards to the importance given to all the factors except µpost . Gender differences have also existed for these factors DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. the consumers of post graduate have given greater importance to µprice¶ than under graduate students.) Page 7 . rather they consider µphysical appearance¶. The difference was highest for the µbrand¶ closely followed by µcore technical features¶ of the handset. Introduction: The prime objective of the study was to understand the variation in the importance given by different under graduate and post graduate students to the selected factors while buying mobile handsets.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES. and µcore technical features¶ more important than post gradute students. µvalue added features¶.G. The study concludes that under graduate mobile handset users are less price sensitive than consumers of other groups. RAIPUR (C.

The cut throat competition between manufacturers has forced manufacturers to reduce their costs and therefore. Besides this. The consumers of both rural and urban areas. The market for the mobile handset is also growing with the growing demand for mobile telecom services. The growth in this sector has been improved due to liberalization of telecommunication laws and policies. they have to satisfy themselves with what their parents buy for them. value-based services. the service providers and manufacturers are offering value added services to make up losses in revenues. where parents comply more with the requests of their children as compared to the past. The manufacturers are introducing newer and newer models in quick succession of time. and advanced models. these people have become more able to influence their parents in buying the products of their choice. 2005). of almost all income groups have started using mobile telecom services. But now-a-days. The growth is fastest in mobile services as compared to fixed lines where it is modest (The World Factbook.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES.going students to mature elders. India at present is the second largest market for mobile handsets (Indian Brand Equity Foundation. Thus mobile value added services has become an important element in the growth of mobile telephony in India. This is so because large majority of such people are not economically independent till the age of 22-24 years. 2008). 2005).from college . Some of the consumers particularly college .G. Mobile telecommunication industry has shown a tremendous growth over the last few years and at present there are about twenty crore (1 crore = 10 million) subscribers of the mobile telecom services in the country. they are thinking of manufacturing handsets in India. This demand will continue to grow in future also.going students have to rely on their parents for the buying of products like mobile handset and automobile. The low wage rates will help manufacturers to reduce their costs (Indian Brand Equity Foundation. RAIPUR (C. which have resulted due to decrease in tariff rates. This is probably due to small family size of one or two children these days. They are motivated to do so because Indian mobile subscribers are prepared to pay for upgrades. DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY.) Page 8 . Therefore.

sending camera-phone taken photos. who were once competing fiercely with fixed-line operators. There is a discernible preference for mobile phones with color screens over those with black and white displays. Mobile service providers.G. Short Message Service (SMS) is very much popular and its importance is increasing further as the subscribers can now participate in large number of contests/polls etc. The debate that was started on cost benefits has turned into a commercially viable option for service providers. are now facing stiff competition from alternative technologies DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. Mobile phones today have moved beyond their fundamental role of communications and have graduated to become an extension of the personality of the user. online mobile gaming and mobile email have yet to reach the noteworthy levels of usage in India. and playing offline games with their mobile phones. And yet the consumers are expecting much more from their mobile phones. RAIPUR (C. playing games.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES. the adoption of advanced services such as mobile phone payment.) Page 9 . downloading icons/screensavers/logo/ring tones. Consumers are also making wide use of handsets for clicking photographs. In spite of breeding of offers for content-rich mobile data services other than text messaging.

Indians give very high value to brands. He has greater self-control. late majority and laggards. However he found Indian consumers more price and less brand conscious Technological innovations such as cellular phones and digital televisions have attracted the attention of marketing researchers as regards to their adoption process. Younger consumers are greater fond of fashionable/stylish products than older ones. Young consumers are normally more willing to try new products and they are interested in asking more information than older DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. In the transient phase (198090s). Traditional students of pre-liberalization phase (1960-70s) were. According to study conducted in 2001 on testing of homogeneity versus heterogeneity of global consumption in a cross-cultural price/brand effect model. They avoided risk. They had experiencedmulti-choices and had a tendency to be better off than their parents. inward looking and had limited choices.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES. Exposures to variety of products and enhancement of economic status have changed the attitudes of the upper middle ± class consumers towards brands. a brand is a cue to quality because the quality of the unbranded products varies widely. the students were more risk taking than their predecessors.G. The new millennium students tends to enjoy life. In India. Literature review: There are three different consumer types of three generations in India. The study further identifies the gender moderation on the relationship between different color dimensions and the product choice. and looks for personal style and pleasure. Economically. early adopters.) Page 10 . early majority. Researchers has provided a classification of adopters in terms of innovators. status conscious. they had no fears or concerns. They kept their family needs on the top and their own personal needs were subordinate to their family needs. RAIPUR (C. Indian society being hierarchical in nature is therefore. But now consumers are also looking into the compatibility of the new products to their self-image and life style observed a considerable association between color and the choice of an automobile. stable. Indian consumers in comparison to Americans are tougher for the marketers to sell their products.

STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES. It is normally perceived that young buyers try new products. the youth. But one should not ignore the older consumers also. but only if the product and the message are relevant. ones. and are as willing to spend their money as any other generation.G. However they give more preference to comfort or convenience than any other feature of the product. innovative and they also have a tendency to be the part of a typical consumption system They can be a prime market for the luxury products. seek greater information and are more self-confident in decision-making. demanding and restless. Therefore. It also needs to be recognized that most older people accept and enjoy their life stage. which is more informed. DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. On the other hand. will always seek excitement in products and services. It makes them self-confident and that is why they are more likely to be opinion leaders and less hesitant in brand switching. opportunistic.) Page 11 . Elderly consumers are selectively innovative and they accept only those innovations that provide exclusive benefits. pragmatic. age and life cycle can be the delicate variables in the consumer behavior process. RAIPUR (C. The studies have revealed that the older consumers are wealthy.

Expected Features: Text message Voice calls including call registers GPS Navigation Music (MP3) & Video (MP4) playback RDS Radio Receiver.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES. USB. alarms Memo and document recording Personal organizer and personal digital assistant functions Ability to watch streaming video or download video Video cutting Build-in camera and camcorders with autofocus & flash Ringtones. games PTT memory card reader(SD).G.) Page 12 . DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. Bluetooth. RAIPUR (C. instant messages Internet e-mail and browsing Serving as wireless modem for a PC. Infrared. WiFi connectivity.

Sony Ericsson. Major players are Nokia. LG and Motorola. Indian Mobile Industry India has around 1 billion GSM users as per Cellular Operators Association of India¶s (COAI) latest statistics and 39 million CDMA users as per Association of Unified Telecom Service Providers of India¶s (AUSPI) statistics. Cellular network provider In India mobile handset market is flooded with local and branded handsets from different companies.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES. Samsung. RAIPUR (C.) Page 13 . DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY.G.

STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES.G.) Page 14 . CHAPTER 2 RESEARCH METHODOLOGY DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. RAIPUR (C.

to be more specific questionnaire method. List of contacts were also prepared during this phase.G. b . RAIPUR (C. Application packages like Office XP (Microsoft Word. Secondary Data: Taken data from various magazines. Questionnaires for in-depth discussions with various respondents to be interviewed during primary survey were designed during this phase. Microsoft Excel) were used.In this research project the survey method of data collection is used. DATA COLLECTION /SAMPLE SIZE Data Collection: a. Primary Data. The size is 250 Respondents in the sample size were asked to fill the questionnaires to gather the data Research Instrument: Contacting the customer personally and studying the response from the questionnaire filled. Newspaper and other prominent source of information collected from different websites and search engines DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. RESEARCH METHODOLOGY RESEARCH DESIGN AND METHODOLOGY: Research design is the basic framework which provides guidelines for the rest of research process. This involved in-depth face-toface discussions using semi-structured questionnaires with various respondents.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES.) Page 15 . Data Analysis Method: The data analysis of this research was represented on qualitative as well as quantitative manner. It specifies the methods for data collection and data analysis .

) Page 16 .STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES. RAIPUR (C. CHAPTER 3 DATA ANALYSIS AND INTERPRETATION DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY.G.

53% UG PG DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY.) Page 17 . 47% UG.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES. of UG & PG Student¶s responses PG. DATA ANALYSIS: No. RAIPUR (C.G.

) Page 18 . Yes B. own. Q1. I don¶t UG & PG 5% use frequently 91% A B C DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY.G. RAIPUR (C. but 4% No C. Do you own a cell phone? A.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES.

RAIPUR (C.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES.G. Q2.) Page 19 . A 7% UG B 7% C 86% A B C PG 100% Interpretation: It is found that undergraduate students own mobile phones in rarely as compared to postgraduate students. Which brand of mobile you use? DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY.

STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES.G. 30% reliance Q3. What features attracts you while buying a cell phone? DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY.) Page 20 . tata docomo. 5% virgin. RAIPUR (C. 45% nokia samsung virgin tata docomo samsung. 5% reliance. 15% nokia.

For which purpose do you use the cell phone? DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. RAIPUR (C. It¶s features B.Brand D. A.) Page 21 .G.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES. Model & Appearance C. Cost or Economy UG & PG A 16% 10% 37% B C D 37% 4% UG B C 9% 48% 39% A D INTERPRETATION: Undergraduate students give more preference to its features whereas postgraduate students are more brand concious and give equal preference to its appearance and price PG A B 29% C D 17% 33% 21% Q4.

G. Q5. e-browsing & Downloads D. Which mode of connection do you prefer? DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. RAIPUR (C. Calling C. A. Getting updates of latest happenings UG & PG A B C 4%3% 31% D 62% PG UG A B C 7% 2% 39% A B C D D 4% 17% 52% 79% INTERPRETATION: It is found that undergraduate students use their cell phones mostly for sending sms¶s and to chat with their friends but postgraduate students use their mobile phones mostly for making important calls.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES.) Page 22 . SMS/MMS B.

A. Q6. CDMA postpaid UG & PG A B 10% C 22% D 3% 65% UG A B C 14% 4% PG C D 17% 4% D 25% 2% A B 75% 59% Interpretation: students mostly use GSM prepaid connection. GSM Postpaid B.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES. CDMA Prepaid C.G.) Page 23 . What do you prefer most when going for a particular connection? DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. GSM Prepaid D. RAIPUR (C.

Q7. whereas postgraduate students go for connectivity as well as for the offers that are being provided. What is the cost of cell phone you are using now? DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. Connectivity or signal C. Tariffs D.Offers (group calling/ night time free) 0% UG & PG A B 13% C D 27% 60% UG A 1% 23% 64% PG D A B 12% B 12% C C D 0% 34% 54% Interpretation: Undergraduate students mostly look for signal or connectivity while going for a particular connection. RAIPUR (C. A. Brand B.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES.G.) Page 24 .

G. Q8. 2000-10000 in range & postgraduate own mobile phones in range of rs. 2000-5000 C.) Page 25 . RAIPUR (C. Rs.5000-10000 D.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES. above Rs. 10000-15000 B. When did you buy your first mobile? DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. A. 5000-15000. 15000 5% UG & PG A B C 22% 39% 34% D PG A B C D A B 8% 14% 39% 39% 38% 16% UG C D 0% 46% INTERPRETATION: Undergraduate students own mobile rs.Rs. Rs.

undergraduate students are having their own mobile from last 1-2yrs wheras postgraduate students are having mobile from more than 4yrs. 2-3 year ago D.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES. Q9.more than 4 years ago UG & PG A B C D 34% 20% 12% 34% UG A B 18% 5% 45% PG D A B 25% C C D 13% 32% 25% 37% Interpretation: Out of Number of students surveyd. 3-4 year ago B. 1-2 year ago B. How often do you change your mobile sets? DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. A. Rs.) Page 26 .G. RAIPUR (C.

Once in two years UG & PG A B C D 34% 20% 12% 34% UG A B 18% PG D 45% 25% 37% C 5% A B 25% C D 13% 32% Interpretation: Undergraduates students go for a change in mobile sets frequently. Q 10.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES.) Page 27 . .G. Is the model feasible for you? DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. whereas postgraduate students change their mobile sets oftenly. A. RAIPUR (C. Once in a year C. Not changed yet D. Depends B.

A)YES B) NO C) DON¶T KNOW UG & PG yes no 5% don t know 20% 75% UG & PG yes no don t know UG & PG yes no 5% don t know 5% 20% 20% 75% 75% Interpretation: For most students the mobile sets they own are feasible for them.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES.G. DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. RAIPUR (C.) Page 28 .

DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. economic factors and psychographic factors influence the buying of the consumer.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES. LIMITATIONS OF THE STUDY The study has been carried out with two variables .age and gender.) Page 29 . However consumer buying is a complex process in which number of factors like social status.G. RAIPUR (C.

‡ A majority of students are not much interested in downloading ringtones / wall papers/ upgrading the software for their mobile phone. FINDINGS ‡ ‡ ‡ ‡ Most of the students own their mobile phone. Majority of students prefer GSM prepaid connection Students have opted for a mobile phone as It connects them to their friends & family round the clock ‡ Features and model of cell phones are given top priority while buying a cell phone. 500010000. RAIPUR (C. MP3 player. ‡ ‡ Students see good connectivity or signal when going for a particular connection. good memory and also with good battery backup for atleast 2 days.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES.G. 200-500. value added service etc per month on their mobile phone would range between Rs.5 years. RECOMMENDATIONS DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. ‡ Student¶s expenditure on recharges. camera.) Page 30 . ‡ Students would prefer to a cell phone with basic features of calling. ‡ On an average every student in the campus is using a cell phone from the past 2. The cost range of their (UG & PG students) cell phone lies between Rs. Students use mobile phone for calling and sending SMS¶s the most. SMS.

‡ ‡ There is a scope for a mobile with an eco friendly technology.M as there found to be a huge traffic in that time period. ‡ Tariffs can even be lowered between 5 -9 P. DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY.G. ‡ There is a scope for CDMA prepaid service providers to enhance their market share in this particular segment but proper advertisement is needed. 7500 ± 10000 need to be built up with some extra features as many of the students are opting a mobile in that range.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES. RAIPUR (C. The cell phones in the cost range of Rs. Mobile phone industry is one of the fastest growing industries in the world.) Page 31 .

The companies that wish to target Indian youth must strengthen their brand equity besides improving µappearance¶. This implies that these people may not only act as independent buyers. µvalue added features¶ and µcore technical features¶. children are taken into confidence when a parent buys an item like handset as a gift to be given to the other parent on special occasions like anniversaries. The marketers of handsets can earn a lot of admiration from Indian female consumers by offering a wide range (colors and designs) of models that are not only attractive in appearance but also compatible to their physical looks and style. but influence the buying of people of other age/gender groups. The gray-market products from countries like China due to the lack of adequate µpost-purchase services¶.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES.G. RAIPUR (C. The companies with poor brand equity may find a niche in 50 years and above age group.) Page 32 . CONCLUSIONS In many number of cases. It will help them in increasing their revenues manifold in India due to the reason that Indian market is youth rich with median age of 24 years (The World Factbook. DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. value added features and low price. provided they reasonably improve µappearance¶ and µpost-purchase services¶ and keeping the prices as low as possible. 2008). did not get much success despite all other technical.

CDMA postpaid C. 2000-5000 C. above Rs.) Page 33 . QUESTIONAIRE Q1. 10000-15000 B.G. Do you own a cell phone? A. GSM Postpaid Q6.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES. It¶s features C. Brand Q7.Brand B. Tariffs D. What do you prefer most when going for a particular connection? A.Rs. No C. Getting updates of latest happenings Q5. Yes B. I don¶t own. Rs.5000-10000 D. SMS/MMS B. e-browsing & Downloads D. Cost or Economy Q4. Connectivity or signal B. GSM Prepaid D. RAIPUR (C. Model & Appearance D.Offers (group calling/ night time free) C. Which brand of mobile you use? Q3. What features attracts you while buying a cell phone? A. 15000 DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. What is the cost of cell phone you are using now? A. but use frequently Q2. Calling C. For which purpose do you use the cell phone? A. CDMA Prepaid B. Which mode of connection do you prefer? A. Rs.

. 1-2 year ago C.G. Is the model feasible for you? A) YES B) NO C) DON¶T KNOW DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY. Rs. Once in two years Q 10. 2-3 year ago D. 3-4 year ago B.) Page 34 . Not changed yet D. Once in a year C. How often do you change your mobile sets? A. When did you buy your first mobile? B. RAIPUR (C. Depends B.STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES.more than 4 years ago Q9. Q8.