A STUDY ON CONSUMER SATISFACTION TOWARDS

REDMI

MOBILE PRODUCTS

CHAPTER – 1

1.1 INTRODUCTION

Customer satisfaction is defined as "the number of customers, or percentage of total

customers, whose reported experience with a firm, its products, or its services (ratings)
exceeds specified satisfaction goals. Customer satisfaction survey is a process of discovering
whether or not a company's customers are happy or satisfied with the products or services
received from the company. It may be conducted face to face, over the phone, via email or
internet, or on handwritten forms. Customer answers to questions are then used to analyse
whether or not changes need to be made in business operations to increase overall satisfaction
of customers.

It is defined as "the number of customers, or percentage of total customers, whose

reported experience with a firm, its products, or its services exceeds specified satisfaction
goals.

The main purpose of the study is to get feedback from the customers and to implement the
new ideas in the product. This research paper examines marketing strategy of Xiaomi mobile
phone in Yangon that impacts on making decision towards customer satisfaction. This
Chapter includes research background, statement of problem, objective of the study, research
questions, hypothesis of the study, and conceptual framework, variables of the study and
definition of terms.

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1.2 STATEMENT OF THE PROBLEM

The market power lies with the brand names in the emerging knowledges based economy
study of brand awareness as become an essential part in market planning. With time, the
needs and preference of the consumers are changing rapidly. The realistic side of the problem
is to know the acceptance level of the customers towards the brand.

This study will to some context help us to know the customers acceptability towards the
brand, with which a different strategy can be taken to create more satisfaction of the brand
Redmi and rectify the previous communication gap and mistakes among the customers. The
study is to understand the actual acceptance of the brand Redmi among 2 customers of
different age ranges.

This also explains what they understand by brand and how make the purchase decisions.
This will help to make improvement in brand awareness and will create more loyal
customers.

1.3 OBJECTIVES OF THE STUDY:

 To know the awareness level of Redmi Mobile products.

 To know the factors influencing to buy the Redmi Mobile products.
 To know the pre and post purchase behaviour of Redmi Mobile product among the
customer.
 To know the customer satisfaction of Redmi Mobile products.

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1.4 SCOPE OF THE STUDY

In this study, the experience and expectation and satisfaction of the customer has been
analysed. To find out factors that influence the customers to buy the Redmi products. To
identify the necessary changes in product features and customers feeling about the Redmi
Mobil products.

The study will be useful for the company to make necessary changes in price, designs,
apps and etc. The customers are various minded with different needs. Though a sample size
of 120 seems ok, but some other target group t annoyed while filling up the form with
accurate information. Hence, to some extent actual data might not have been provide

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1.5 RESEARCH METHOLOGY

My research is based on the primary and secondary data has been used to understand the
scope of smart phone business in India and then to make suggestion for the company under
study Redmi Mobile products.

The primary data was collected through questionnaire. Around 100 people of different
age ranges were requested to complete the survey questionnaire to understand the satisfaction
of Redmi mobile products.

PRIMARY DATA

Primary data has been used for the purpose of study of customer satisfaction of Redmi
phone for in smart phone market. The questionnaire was mostly related to the customer
satisfaction of Redmi on different features such as familiarity with the brand, how they got
introduced to the brand, quality, price, comparison with other products and etc.

SECONDARY DATA

The secondary data was collected from different sources related to the company both
internally and externally.

1. Report

2. Newspaper ads

3. Digital ads

4. Internet

SAMPLING:

The sampling has been convenience from different parts of Coimbatore city coming from
different age ranges.

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SAMPLE SIZE:

The sample size has been selected 100 randomly. This will allow in depth study on the
survey for the customer satisfaction of Redmi. Increase in sample size would have given a
better result in understanding the customer satisfaction, but this sample size will do good in
bringing actual result. Data analysis tools are simple percentage.

TOOLS

Tools used are Simple percentage Analysis.

SIMPLE PERCENTAGE:

Precent means out of one hundred. It is often shown with the symbol (%). It is used even
there are not a hundred items. The hundred is then scaled so it can be compared to one
hundred.

Simple percentage = No of respondents

--------------------------------------------- x 100

Total no of respondents

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1.6 LIMITATIONS:

 The survey was limited to Coimbatore region only, so it cannot be generalized to all the
cities.
 The samples size is limited to 100 customers only.
 Time is one of the major constraints.
 At most care taken by the researches to choose the correct information from the
respondents.
 The study is based upon primary data, so any wrong information given by the respondents
may mislead the findings.

1.7 CHAPTRE SCHEME

Chapter I -It deals with Introductions and design of the study.

Chapter II -It deals with Review of the Literature.

Chapter III -It deals Company profile.

Chapter IV -It deals with Data Analysis and Interpretations.

Chapter V -It deals with finding suggestion and conciusion.

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 CHAPTER-2

REVIEW OF LITERATURE

Andreoulakis; G. Kandus (2020)

Correlated the brand of mi products to uses security parctices Users show different
behaviour in an array of characteristics, according to the brand of mi product they are
using. As such, there subcategorization areas, different for each brand, where users are
clearly lacking security mind, possibly due to lack of awareness.

Taj Zadeh Namin A. A; Rahmani Vahid; Taj Zadeh Namin Aidin (2019)

Analysed that the process of deciding over (choosing) a brand may be influenced by
situation and content. The findings suggest a signification relationship between the
variable “brand attitude’’ decision -making processes (independent or mediated) and
product choice.

Serkan Aydin, Gokhan Ozer, Omer Arasil, (2019)

Had focused on to measure the effects of customers satisfaction and trust on customer
loyalty, and the direct and indirect effect of “switching cost’’ on customer loyalty. the
finding of the study show that the switching cost factor directly affects loyalty and has a
moderator effect on both customer satisfaction and trust.

Adeniyi, Omotayo Joseph - Abiodun, Balaji Joachim (2018)

Emphasis on customer loyalty and customer switching cost. Switching cost is one of the
most discussed contemporary issues in marketing in attempt to explain consumer
behaviour. The present research studied switching cost and its relationships with customer
retention, loyalty and satisfaction in the Nigerian telecommunication market. The study
finds that customer satisfaction positively affects customer retention and that switching
cost affects significantly the level of customer retention.

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Rodolfo Martínez Gras; Eva Espinar Ruiz (2018)

Highlight a new dimension in information and technology with respect to teenagers in

Spain. The main objective of this article is to analyse the relationship between
Information and Communication Technologies and Spanish adolescents. Specifically,
researchers have studied, through qualitative methodology, the characteristics of teenager
‘access and uses of technological.

Wafa N. Muhanna; Awatif M. Abu-Al-Sha'r (2017)

Aims at investigating Jordanian university undergraduate and graduate students'

attitudes towards the learning environment where cell phones are used as learning tools in
classroom. The study comprised two independent variables, level and gender, as
covariates. The findings indicate that undergraduates are more favourable to cell phone
environment than graduate students. The study also reveals that cell phone has more
influence on male students than on female students.

Nasr Azad; Ozhan Karimi; Maryam Safari (2017)

Had presented an empirical study to investigate the effects of different marketing

efforts on brand equity in mobile industry. The results show that there is a positive and
meaningful relationship between marketing mix efforts and brand equity. In other words,
more advertisements could help better market exposure, which means customers will
have more awareness on market characteristics. Among all mixed efforts, guarantee
influences more on brand equity which means consumers care more on product services
than other features. Finally, among different characteristics of brand equity, product
exclusiveness plays an important role. In other words, people are interested in having
exclusive product, which is different from others.

Nasr Azad; Maryam Safaei (2016)

States that there are many evidences to believe that customers select their products based
on brand name. Products also maintain their own characteristics, which make them
differentiable from others. In this paper, researchers have presentan empirical study to
determine important factors influencing customers' purchasing intend for cellular phones
in capital city of Iran, Tehran. The results of the study show that there are some positive

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relationships between exclusive name and quality perception, between exclusive name
and word of mouth advertisement, between quality perception and fidelity, between word
of mouth advertisement and brand name and between brand name image and brand name.

Mehran Rezvani; Sayed Hamid Khodadadi Husseini; Mohammad

Mehdi Samadzadeh (2016)

Investigates the impact of Word of Mouth (WOM) on Consumer Based Brand Equity
(CBBE) creation. WOM characteristics such as, volume, valence, and source quality are
studied to find how intensely they each affect brand awareness, perceived quality, and
brand association. The results suggested that volume and valence, two elements of WOM,
affect CBBE and no significant relationship between source type and brand equity was
seen.

Sany Sanuri Mohd. Mokhtar; Ahmed Audu Maiyaki; Noraini but

Mohd Noor (2016)

Explores the relationship between service quality and customer satisfaction on

customer loyalty with regards to mobile phone usage among the postgraduate students of
a university in Northern Malaysia. The results show that both service quality and
customer satisfaction significantly affect the level of customer loyalty of mobile phone
users in Malaysia. It was therefore, recommended that mobile service providers should
pay special attention to their service quality and the factors that drive customer
satisfaction.

Shakir Hafeez; SAF Hasnu (2015)

States that Customer satisfaction is a crucial element for the success of all businesses.
One of the biggest challenges for a market is how to satisfy and retain the customer new
players are entering in this market and customers are more fascinated to try the new
service providers. However, it is expected that when the industry will be well established,
the results will be more comparable to other studies.

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Shiba shish, Chakraborty and Kalyan Sengupta (2015)

Endeavors to make a detailed study on important demographic variables of customers

affecting brand switching of customers. This study will highlight pertinent aspects of
prediction of switching proclivity of customers from one service provider to another.

Harsha de Silva, (2014)

Generally shows that adoption of (primarily) mobile telephones has significant benefits
not just to the adopter, but to the community at large. In this context, the objective of the
current article is to examine, from a user perspective, the influences (as well as the
interplay of these influences) on mobile phone adoption by the poor in a selected set of
countries in the emerging Asian region.

Brenda, Mak, Robert Nickerson and Henri Isaac (2013)

Investigates the factors affecting the attitudes towards the social acceptance of mobile
phones in public places and how this attitude affects its usage. Results of the analysis
indicate that the attitudes about mobile phone use in public places depend on country, and
age factors. This attitude in turn significantly affects the usage frequency of mobile
phones. In addition, usage frequency also is affected by gender and work status.

Arvind Sahay and Nivedita Sharma (2012)

Focused on brand relationships are indeed important for different categories of young
consumers; second, to investigate the effect of peer influence, family influence, and brand
relationships on switching intentions amongst young consumers; and third, to look at the
impact of price changes on switching intentions in the context of brand relationships.

Ramakrishnan Venkatesakumar, D. Ramkumar and P. Thillai Rajan,

(2011)

Confirms that Brand loyalty and brand switching behaviour of the consumers are
evergreen issues of research and strategic importance to the marketers and academic
researchers. The current research aims to address the significance of product attributes in
brand switching behaviour through multidimensional scaling and results suggest that a set
of product attributes trigger the intention to switch the current brand.

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 Pratompong Srinuan, Mohammad Tsani Annamaria, Erik Bohlin,
(2010)

States that subscriber characteristics, including age, government officer, self-

employed, internet use, central region, and southern region, are significant in explaining
the switching behaviour of Thai mobile subscribers. This study also shows that the largest
mobile operators will gain more switching subscribers than smaller operators. The study
shows that the expected impact of implementing MNP without national mobile roaming
regulations would be worse for smaller mobile operators. The smaller operators need to
compete on both price and quality improvement. In the short run, it would not be possible
for the smaller operators to compete with the larger operators due to the inequality in the
quality of network coverage.

Ajax Persaud, Irfan Azhar, (2009)

Concludes that consumers' shopping style, brand trust, and value are key motivations
for engaging in mobile marketing through their smartphones. Further research should
focus on specific tactics marketers use to engage customers beyond marketing messages,
that is, how they engage customers in dialogue to build relationships, encourage
purchases and build loyalty. This could reveal how customers really want to engage in
mobile marketing.

Ahmed Alamro, Jennifer Rowley, (2009)

Explored that there are 11 antecedents of brand preference; these can be theoretically
clustered into three groups awareness antecedents (controlled communication
(advertising), and uncontrolled communication (publicity, word of mouth)); image
antecedents (service value attributes (price, quality), provider attributes (brand
personality, country of origin, service (employee + location)), and corporate status
(corporate image, corporate reputation)); and, customer attribute antecedents (satisfaction,
perceived risk, and reference group). Multiple regression showed the contribution of each
of these antecedents to brand preference.

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REFERENCE

1. Andreoulakis; G. Kandus (2020) made a study entitled “Users show different,

behaviour in an array of characteristics, according to the brand of MI product they are
using”
2. Taj Zadeh Namin A.A;Rahmani Vahid; Taj Zadeh Namin Aidin(2019) in their study
entitled “the findings suggest a signification relationship between the variable brand
attitude”
3. Serkan Aydin, Gokhan Ozer, Omer Arasil,(2019) “Customers satisfaction and trust on
customer loyalty, and the direct and indirect effect of switching cost on customer
loyalty”.
4. Adeniyi, Omotayo Joseph-Abiodun, Balaji Joachim(2018) “The present research
study switching cost and its relationship with customer retention, loyalty and
satisfaction in the nigerian telecommunication market”.
5. Rodolfo Martinez Gras;Eva Espinar Ruiz(2018) is analysis the relationship between
information and communication technologies and Spanish adolescents.
6. Wafa N. Muhanna; Awatif M. Abu-Al-Sha’r(2017) made a study on “comprised two
independent variables, level and gender, as covariates”.
7. Nasr Azad; Ozhan Karimi ; Maryam Safari(2017) in their study entitled , “investigate
the sffects of different marketing efforts on brand equity in mobile industry”.
8. Nasr Azad ; Maryam safari(2016) –“Researchers have present an empirical study to
determine important factors influencing customer’s purchasing intend for cellular
phones in capital city of iran ”.
9. Mehran Rezvani; sayed Hamid Khodadadi Husseini ;Mohammad Mehdi Samadzadeh
(2016) “find how intensely they each affect brand awareness, perceived quality, and
brand association”.
10. Sany Sanuri Mohd. Mokhtar; Ahmed Audu Maiyaki; Noraini but Mohd Noor
(2016)-“that both service quality and customer satisfaction significantly affect the
level of customer loyalty of mobile phone users in Malaysia”.
11. Shakir Hafeez; SAF Hasnu (2015) mad a study “how to satisfy and retain the
customer new players are entering in this market and customers are more
fascinated to try the new service providers”.
12. Shiba shish, Chakraborty and Kalyan Sengupta (2015) mad study “important
demographic variables of customers affecting brand switching of customers”.

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13. Harsha de Silva, (2014) may study “shows that adoption of mobile telephones has
significant benefits not just to the adopter, but to the community at large”.
14. Brenda, Mak, Robert Nickerson and Henri Isaac (2013) may study “attitudes towards
the social acceptance of mobile phones in public places and how this attitude affects
its usage”.
15. Arvind Sahay and Nivedita Sharma (2012)may study “important for different
categories of young consumers”.
16. Ramakrishnan Venkatesakumar, D. Ramkumar and P. Thillai Rajan, (2011) Confirms
that Brand loyalty and brand switching behaviour of the consumers are evergreen
issues of research and strategic importance to the marketers and academic researchers.
17. Pratompong Srinuan, Mohammad Tsani Annamaria, Erik Bohlin, (2010) may study
“shows that the largest mobile operators will gain more switching subscribers than
smaller operators”.
18. Ajax Persaud, Irfan Azhar, (2009) may study this “how they engage customers in
dialogue to build relationships, encourage purchases and build loyalty”.
19. Ahmed Alamro, Jennifer Rowley, (2009) may study “Multiple regression showed the
contribution of each of these antecedents to brand preference”.

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 CHAPTER 3

PROFILE OF THE COMPANY

Company profile:

Company Profile is an initiative by StartupTalky to publish verified information on

different startups and organizations. The content in this post has been approved by
Xiaomi.

‘Quality products at honest pricing’ is almost everyone’s need. Xiaomi has a separate fan
base for its high-grade products built with cutting-edge technology at reasonable prices.
Xiaomi is a Chinese company that has its major ground in electronics. The company has
its presence in over 100 countries and regions and has been hailed as the world's most
valued tech startup already in 2014. Xiaomi currently ranks in the 70th position on the
Top 100 Most Valuable Global Brands in 2021 by Kantar BrandZ.

Xiaomi Mobiles have also gained much popularity in India, which has only seen growth
year on year. The company tops the list of the best-selling phones in India. Xiaomi India
even made it to the ‘GUINNESS WORLD RECORDS’ by building the largest light
mosaic (logo) in the world. It was set by placing 9,690 bulbs and this momentous work is
found on the terrace of Xiaomi’s head office in Bengaluru. Here are some more
interesting facts and figures about Xiaomi.

Xiaomi is an electronics company based in Beijing, China. It was founded by Lei Jun in
April 2010, and in 2014, Xiaomi was the largest smartphone company in China. Today,
Xiaomi is one of the top five smartphone vendors in the world. The smartphone
commodities of Xiaomi include different series such as Mi Series, Mi Note Series, Mi
Max Series, Mi Mix Series, Mi NoteBook Series, Redmi Series, Blackshark, and
Pocophone. Xiaomi has around 291.6 million active users for its MIUI updates. Besides,
the company also offers laptops, mobile apps, mobile accessories, wearables, home
appliances, and smart-home devices.

From 2019 Xiaomi even started selling accessories such as caps, bags, glasses,
backpacks, and also lunchboxes, pillows, cups, filters, umbrellas, and screwdrivers.

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 In 2018, Xiaomi launched Mi Credi in India for easy accessibility of personal loans.
The company also offers various value-added-internet services like 'Mi Music', 'Mi Video'
and 'Mi game.

Xiaomi - Founders/Owners:

Lei Jun is the founder, CEO, and President of Xiaomi. The other co-founders are, Lin
Bin, Dr. Zhou Guangping, Liu De, Li Wanqiang, Wong Kong-Kat, Hong Feng and Chuan
Wang.

Lei Jun is a graduate in computer science from Wuhan University. In 1992, Lei Jun
joined Kingsoft, a Chinese software company as an engineer. In 1998, Lei Jun became the
CEO of Kingsoft. In December 2007, he resigned from Kingsoft for health-related issues.
While he was still working with Kingsoft, Lei Jun founded an online bookstore named
Joyo.com. Joyo.com was acquired by Amazon.com in 2004.

After resigning from Kingsoft, Lei Jun became an angel investor and invested in over
20 companies. He still invests in various companies through Shunwei Capital. In 2008, he
joined UC Web as Chairman, and in 2010 Lei Jun founded Xiaomi.

Xiaomi co-founder & President Lin Bin is a graduate in radio electronics and holds a
rich experience of working with companies like ADP, Microsoft, and Google. Lin Bin is
also a member of the board of advisors of Tufts University School of Engineering located
in Boston (USA).

Dr.Zhou Guangping, who is a Ph.D. in Electrical Engineering, worked with Motorola

and held various pivotal positions in the company before joining Xiaomi. Currently, Dr.
Zhou leads the hardware and BSP teams at Xiaomi.

Liu De is an M.S. and an expert in Industrial design. He established the Industrial

Design Department at the University of Science and Technology Beijing. In 2003, Liu De
founded 'New Edge', an Industrial Design Company. Mr. Liu currently looks after the
industrial design and Ecosystem Development teams at Xiaomi.

Li Wanqiang is known as one of the earliest UI and HCI experts in China. After
completing his graduation in Industrial Engineering in 2000, Mr. Wanqiang joined
Kingsoft, where he was leading many important and well-known software projects. In
2010 Wanqiang joined Xiaomi as a co-founder.

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 Wong Kong-Kat graduated in computer science in 1997 and joined Microsoft, where he
worked till 2010. Mr. Wong is now in charge of the Mi wifi and Mi Cloud teams.

Hong Feng holds a post-graduate degree in computer science. He started his career with
Siebel System as a Lead Software Engineer. In 2006, Mr. Hong joined Google as a Senior
Software Engineer. Later he also looked after the development of the various localized
products of Google (in China) like Google Music and Google Pinyin Input as a Senior
Product Manager at Google China. Mr. Hong now looks after the MIUI division at
Xiaomi.

Li Wanqiang is known as one of the earliest UI and HCI experts in China. After
completing his graduation in Industrial Engineering in 2000, Mr. Wanqiang joined
Kingsoft, where he was leading many important and well-known software projects. In
2010 Wanqiang joined Xiaomi as a co-founder.

Wong Kong-Kat graduated in computer science in 1997 and joined Microsoft, where he
worked till 2010. Mr. Wong is now in charge of the Mi wifi and Mi Cloud teams.

Hong Feng holds a post-graduate degree in computer science. He started his career
with Siebel System as a Lead Software Engineer. In 2006, Mr. Hong joined Google as a
Senior Software Engineer. Later he also looked after the development of the various
localized products of Google (in China) like Google Music and Google Pinyin Input as a
Senior Product Manager at Google China. Mr. Hong now looks after the MIUI division at
Xiaomi.

Xiaomi - History

Lei Jun founded Xiaomi in 2010, as a software company and created MIUI ROM based
on Google's Android. The idea behind developing MIUI was to offer more functionalities
and a better UI than Android. MIUI indeed got the popularity it deserved. As per reports
in March 2020, the MAU (Monthly Active Users) of MIUI increased to 330.7 million
worldwide.

In 2011 Xiaomi entered the hardware segment by launching the Mi One phone. The
Xiaomi team's focus has been on creating quality hardware devices and sell them at
comparatively lower costs than those available in the market while they intended to make
revenue through their services and content. The company today not only sells mobile

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phones but much more like mobile apps, wearables, home appliances, and smart home
devices.

Xiaomi - Growth & Revenue

Xiaomi has grown in sales and product ranges. The company reportedly has around
22,074 employees worldwide.

However, due to the Coronavirus pandemic, the smartphone company saw a decline in
the Q1 of 2020. However, Xiaomi has also been declared as the only brand among the top
five smartphone sellers, to achieve comparatively sound sales in the first quarter of 2020.
It saw a 1.4% YoY from 2019, during the first quarter of 2020.

In 2019, Xiaomi’s total revenue was approximately RMB 205.84 Billion, and gross
profit was nearly RMB 28.55 Billion. In the Q4 of 2019, the company’s total revenue
grew by 27.1% to RMB 56.5 Billion with an attuned net profit of RMB 2.3 Billion and a
26.5% YoY increase.

Xiaomi - Future Plans

Xiaomi’s vision is to make quality technology accessible to everyone, i.e., “Innovation

for everyone”. The company makes this possible with its high-quality products and
remarkable services.

In 2020, Xiaomi intends to keep its focus on the development of 5G smartphones, and
thus improve its position in the premium smartphone segment. The company also has
plans to invest big in A Lot.

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