CONSUMER PRFRENCES TOWARDS CELL PHONE

BRANDS IN BIRATNAGAR, TINPAINI

By
Sneha Sharma
Exam Roll No.:19021/17
TU Reg. No.:7-2-3-55-2017

A summer Project Report submitted to

Faculty of Management, Tribhuvan University
In Partial Fulfillment of the requirement for the degree of
Bachelor of Business Administration (BBA)

Mahendra Morang Adarsha Multiple Campus

Tribhuvan University

Biratnagar
Jan ,2022
 STUDENT’S DECLARATION

This is to certify that I have completed the Summer Project entitled “Consumer
Preferences Towards Cell Phone Brands in Biratnagar, Tinpaini” under the
guideline of “Mr. UDGAM MISHRA” in the partial fulfillment of the
requirements for the degree of Bachelor of Business Administration at Faculty of
Management, Tribhuvan University. This is my original work and I have not
submitted it earlier elsewhere.

Date: Jan, 2022 Signature

Name: Sneha Sharma
Reg. No:7-2-3-55-2017

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 CERTIFICATE FROM THE SUPERVISOR

This is to certify that the summer project entitled “Consumer Preferences

Towards Cell Phone Brands in Biratnagar, Tinpaini”is an academic work done by
“Sneha Sharma” submitted in the partial fulfillment of the requirements for the
degree of Bachelor of Business Administration at Faculty of Management,
Tribhuvan University under my guidance and supervision. To the best of my
knowledge, the information presented by her in the summer project report has not
been submitted earlier.

……………………………

Signature of the Supervisor

Name: Mr. UDGAM MISHRA
Designation: Supervisor
Date: Jan,2022

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 ACKNOWLEDGEMENT
I would like to express my gratitude and thanks to all who guided, coordinated,
helped, and inspired her in completing her project work successfully. It would not
have been possible without the kind support and help of many individuals and
organizations. I would like to extend my sincere thanks to all of them.

I express my sincere thanks to Mr. Ram Narayan Das (BBA Program

Coordinator, Mahendra Morang Adarsha Multiple Campus) for providing
necessary facilities and resources to carry out this project.

I am indebted to my respected teacher Mr. Udgam Mishra for his guidance and
constant supervision as well as for providing necessary information regarding the
project and for his support in completing this project.

I would also like to thanks the participants and respondents of my survey, who
have willingly shared information and gave precious time during the process of
data collection.

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 Table of Contents
CHAPTER 1: INTRODUCTION......................................................................1
1.1. Context Information....................................Error! Bookmark not defined.
1.2 Problem Statement.......................................Error! Bookmark not defined.
1.3 Purpose of the study......................................................................................3
1.4 Significance of the study...............................................................................3
1.5 Limitation of the Study..................................................................................3
1.6 Literature Survey...........................................................................................4
1.7 Research Methodology..................................................................................6
1.7.1. Research Design....................................................................................6
1.7.2. Population and Sample..........................................................................6
1.7.3. Sources of Data......................................................................................7
1.7.4. Data Collection Method.........................................................................7
Chapter II: Data Presentation and Analysis.....................................................8
2.1 Organizational profile....................................................................................8
2.1.1. Brand Profile..........................................................................................8
2.1.2. Respondent Profile................................................................................9
2.2 DATA ANALYSIS......................................Error! Bookmark not defined.
2.2.1 Distribution by Gender.........................................................................10
2.2.2 Distribution by Price Range.................................................................11
2.2.3 Distribution by Income Level...............................................................10
2.2.4 Distribution by Age Group...................................................................13
2.2.5 Frequency of buying mobile.................................................................14
2.2.6 Distribution by Literacy Level.............................................................15
2.2.7 Expectation from the product...............................................................16
2.2.8 Degree of satisfaction...........................................................................17
2.2.9Factor influencing for selection of particular brand..............................18
2.2.10 Preference of Cell Phone Brand.........................................................19
2.2.11Level of brand loyalty..........................................................................20
2.2.12. Price sensitivity..................................................................................21
CHAPTER 3: Summary, Conclusion and Action Implications....................26
3.1 Summary......................................................................................................26

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 3.2 Conclusion...................................................................................................26
3.3 Action implications......................................................................................28
Bibliography........................................................................................................29

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 List of Tables
Table 2. 1 Distribution by Gender.........................................................................10
Table 2. 2 Distribution by Price Range.................................................................11
Table 2. 3 Distribution by Income Level...............................................................12
Table 2. 4 Distribution by Age Group...................................................................13
Table 2. 5 Frequency of buying mobile.................................................................14
Table 2. 6 Distribution by Literacy Level.............................................................15
Table 2. 7 Expectation from the product...............................................................16
Table 2. 8 Degree of satisfaction...........................................................................17
Table 2. 9 Factor influencing for selection of particular brand.............................18
Table 2. 10 Preference of Cell Phone Brand.........................................................19
Table 2. 11 Level of brand loyalty.......................................................................20
Table 2. 12 Level of price sensitivity....................................................................21

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 List of figure
Figure 2. 1 Distribution by Gender........................................................................10
Figure 2. 2 Distribution by Price Range................Error! Bookmark not defined.
Figure 2. 3 Distribution by Income Level.............................................................12
Figure 2. 4 Distribution by Age Group..................................................................13
Figure 2. 5 Frequency of buying mobile...............................................................14
Figure 2. 6 Distribution by Literacy Level............................................................15
Figure 2. 7 Expectation from the product..............................................................16
Figure 2. 8 Degree of satisfaction..........................................................................17
Figure 2. 9 Factor influencing for selection of particular brand............................18
Figure 2. 10 Preference of Cell Phone Brand........................................................19
Figure 2. 11 Level of brand loyalty......................................................................20
Figure 2. 12 Level of price sensitivity...................................................................21

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 EXECUTIVE SUMMARY
The aim of this research is to find out about the brand preference of mobile
phones of people residing in Biratnagar. The increasing number of
telecommunication networks and huge number of their subscribers has made Cell
phones an important medium for communication. Switching Cell phone brands
and updating oneself with latest technology in mobile brands has been in the
increasing trend as well. Cell Phone brand preference could be related with
various other factors like age group, gender, price of phone, family monthly
income, mobile usage purpose, brand attributes and many more. Through this
research, the researcher can learn about the Cell Phone preference of youth in
Biratnagar and help increase sales of various mobile brands.

As the researcher went through the survey, he could find out that most of the
youth in Biratnagar own a mobile phone and most of them own a brand which
costs around NRS 20,000. Since Cell phones are effective and convenient
medium for communication, they have a positive influence in the economy of our
country. This research could lead to several other findings such as the users of age
group 16-50 mostly prefer Wifi attribute in their phone, users of age group
above50 prefer touch pad with feature of FM/Radio in mobile phone. It can be
said that the highest priced mobile brands are purchased by users whose monthly
family income is above NRS 50,000 so a different promotional campaigns are
required for these users. The users, whose monthly family income is relatively
low, purchase medium priced mobile phones and use them for longer time. So to
attract these customers, various offers and discounts should be used as a
promotional strategy by mobile brands.

So the findings of this research would also provide insight to mobile brands
selling in Biratnagar about how they should target different customer groups and
use different promotional campaigns for each user group. Likewise, the findings
of brand attribute preference can help marketers to make decision regarding
which model of their mobile brands would be suitable in Nepalese market.

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 CHAPTER 1: INTRODUCTION

1.1. Context Information

Customer satisfaction is expectations, likes, dislike, motivations and inclinations that
drive customer purchasing decisions. These factors complement customer needs in
explaining customer behavior. Customer satisfaction is the subjective (individual
tastes) and is measured by the utility of the various bundles of goods consumed.
Customer ranks these bundles of goods according to the level of utility they obtained
from each goods. One can prefer an Apple I-phone over Samsung mobile phone but
only have the financial means to afford Samsung phone. The preferences are
independent of income and prices. Ability to purchase goods does not determine the
customer’s likes and dislikes. They are no doubt dependent upon culture, tastes,
preferences, education and many other related factors. Preferences are measured in
terms of level of satisfaction the customer obtains from consuming various
combinations or various bundles of goods. Consumer makes decision by allocating
their scarce resources over all the possible goods in order to obtain the highest level of
satisfaction. Consumer maximizes their utility subject to their budget. Utility is
defined as the satisfaction that consumer obtains from the consumption of the goods.
Utilities determinants are determined by the host of non-economic factors. Consumer
value is measured in terms of the relative utilities between the goods. These reflect the
consumer preference.
According to Emanuel(2013)This study is concerned with cell phones which aren't
just a rich person's fashion today. It is transforming the way thousands of people do
business in a country where even landline phones were a luxury a decade ago. As an
essential element of daily life, the purchase of a mobile phone is an important
decision with a variety of mobile phone brands available to choose from. Each Cell
phone manufacturer consistently updates their offerings with the latest technological
updates and many customers have a preferred brand that suits them or a brand they
have become familiar with. Across the globe, even people with low incomes are now
adopting cellular phones as tools for enhancing their business.

According to Oxford(2013) one of the earliest uses of word "mobile" was in

association with the Latin phrase "mobile vulgus", i.e. excitable crowd. Today's
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mobile phones live up to these origins. Cell phone technology introduces new senses
of speed and connectivity to social life. If the fixed line telephone has brought
communication links into the workplace and homes, the "mobile" puts them straight
into the hands of numbers and varieties of individuals.

Varieties of cell phone are sold at present. So, consumers have to choose rationally
among the several alternatives available in the Market. Consumers are making choices
of the cell phone on the basis of perception and preferences. Perception means “a
process by which individuals organize and interpret their sensory impression in order
to give meaning to their environment. Some brands are considered acceptable and
suitable over the other brands by the perceived value of the customers. Preference
leads to some level of commitment as evidence by purchase or intention to purchase.
Marketer must study their target customers’ want, preference, perception,
characteristics and attitudes of their buyer. There are various factors that forces
customers towards the cell phone product. What make the consumer to purchase the
branded cell phone product; form the part of the study. The income level, age,
profession, price, expectation and gender are the most important factors in selection of
the types of cell phone from the market. Thus, it is not that easy to successfully
operate the cell phone shop under such a competitive business environment. As
barrier to entry are relatively low in the existing market; also there is the trend of
increasing number of sellers in the market.

Dhital (2016)This study is basically concerned with the customer preference of the
Cell phone brands that are available and are traded in Biratnagar. It is the center from
where various local areas of eastern Nepal like Ithari,Dharan,Urlabari,Rajbiraj,
Dhankuta etc. are linked. The shops usually starts at 8 A.M. and runs generally up to 6
P.M. Along with the sale of cell phone items, the shops has also been selling mobile
parts like charger, earphone, touch, display, mobile cover, etc. Here, the study of cell
phone market simply means the process of selling and distribution of different brands
of cell phone items. Of the several items offered in the market, the present study has
selected the cell phone market. Due to the increase in market demand various brands
of cell phone has been available in the market at present.

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The exposure of Biratnagar city towards different cities nationally as well as
internationally; people here are eager to adopt the more attractive types of cell phone.
Due to the cross cultural influence, people do not seem to be as rigid as they were few
decades back. This has shown the green signal for the speedy market growth in the
near future.

1.2 Purpose of the study

The main objectives of the study are as follows:

 To examine the brand preferences of mobile phones in Tinpaini chowk,

Biratnagar..
 To identify the various factors affecting the choice of brand.

1.3 Significance of the study

Successful marketing of products demand thorough understanding of customer's
taste, choice, preference etc. This study is focused on assessing the buyers in terms of
"brand preference". This study will be significant in the following prospects:

 Findings of the study will help researcher understand brand preference

practices in Cell phone market.
 It will be useful in creating most favorable brand by knowing the buyer
perception and response. Marketers can trace out important reasons for brand
preference and can focus according to choice, perception and preference of
buyers.
 Deeper understanding of brand preference of customers can help managers to
design marketing strategy that will concentrate on customers.
 It will be a valuable reference for scholars and researchers to conduct further
similar research.

1.4 Limitation of the Study

The research will have the following limitations:

 The research has been prepared within a span of one month and thus there was
limited time for conducting the research and literature review.

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  The age group has been selected above 15 years so as to reduce the response
error.

 Opinions of respondents have been taken as a sense of truth which may not be
correct.

 Research is limited to within Tinpaini chowk, Biratnagar.

1.5 Literature Survey

According to Dr.D (2015), As the world is turning into a global village, new products
from abroad are finding their way into the country. The trend of consumption by
native people is changing; becoming more prone to buying foreign and international
brands than the local ones since the advance in communications and information
systems technology have shrunk distance and homogenized the values, fashion
preferences and attitudes of the world's population. It has now been observed that
consumers buy foreign brands more frequently than the local ones and feel proud in
purchasing imported goods.

For the research, various literatures were reviewed that were relevant in gathering
information. The basic purpose of the literature review is to investigate the relevant
literature and other available resources to understand it in a wider contest. The
overview of literature at the national and international level is to be researched with
the help of research reports, article, books, and other materials. Literature review
helps researcher to avoid duplication of efforts on the research topic. It also helps
researcher in adopting methodologies used successfully by other researchers. It
suggests new approaches in Planning and organizing the investigation of research
topic.

Acording to Kotler(2013), consumer satisfaction is defined on, “personal feeling of

pleasure resulting from comparing a product’s pursued performance in relation to his
or her expectations”. Consumer attitude measurements are taken on either potential
buries or existing client’s buries in order to identify their characteristics. Consumer’s
survey can provide researcher with a wealth of information, valuable of the marketing
function. Customer satisfaction is one of the main objectives of any organization.
Every organization tries to know how satisfied their customers from their products. In
general, satisfaction is a person’s feelings of pleasure or disappointment resulting
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from comparing a products perceived performance in relation to his or her
expectations. If the performance is below expectations, the customer is dissatisfied. If
the performance matches the expectations, the customer is satisfied. If the
performance exceeds expectations, the customer is highly satisfied.
Many companies aim for high satisfaction because customers who are just satisfied
still find it easy to switch when a better offer comes along. Those who are highly
satisfied are much less ready to switch. High satisfaction or delight creates an
emotional bond with the brand, not just a rational preference. The result is high
customer loyalty.
According to Dadzie(2011), The study of the researcher were most of the respondent
consumers were aware of mobile phone operator brands despite having come across
few operator service advertisements. Young males, mainly students in the tertiary
institutions, single and of Christian affiliations, dominated the market. Four factors
were identified as key determinants of mobile phone operator service choice, namely
promotion, price and availability of product, attractive packaging and product quality.
There is need for mobile phone operators to incorporate these findings in the
formulation of responsive marketing strategies.
According to Lenhart,Ling,Campbell and Purcell(2010), This study is based on the
2009 Parent-Teen Cell Phone usage Survey which obtained telephone interviews with
a nationally representative sample of 800 teens age 12-to-17 years-old and their
parents living in the continental United States and conducted in 4 U.S. cities in June
and October 2009 with teens between the ages of 12 and 18. The survey was
conducted by Princeton Survey Research Associates International. The interviews
were done in English by Princeton Data Source, LLC from June 26 to September 24,
2009. Statistical results are weighted to correct known demographic discrepancies.
The research concludes that mobile phone usage and daily text messaging among
American teens has shot up in the past 18 months, from 38% of teens texting friends
daily in February of 2008 to 54% of teens texting daily in September 2009. And it's
not just frequency – teens are sending enormous quantities of text messages a day.
Half of teens send 50 or more text messages a day, or 1,500 texts a month, and one in
three send more than 100 texts a day, or more than 3,000 texts a month. Older teen
girls ages 14-17 lead the charge on text messaging, averaging 100 messages a day for
the entire cohort. The youngest teen boys are the most resistant to texting – averaging

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20 messages per day. Text messaging has become the primary way that teens reach
their friends, surpassing face-to-face contact, email, instant messaging and voice
calling as the go-to daily communication tool for this age group. However, voice
calling is still the preferred mode for reaching parents for most teens. This research
thus highlights the importance of mobile phone attributes such as text messaging and
what marketers need to consider while developing a brand of mobile phone for the
target customers.

1.6 Research Methodology

For the fulfillment of the above stated purpose of the study, we used the following
research methodology:-

1.6.1. Research Design

The present study has been conducted by using descriptive research design.
Descriptive study design describes data and characteristics of the population in more
accurate way. Descriptive research answer the questions who, what, where, when and
how. For this study observational and survey may be the appropriate method to be
used. The main purpose of study is to find out the mobile brand preferences of
respondents inside Biratnagar from various genders, age, and income level. The
research is quantitative in nature. The data collected is analyzed statistically to
interpret findings and results. Primary as well as secondary sources are used. For
primary sources of data, questionnaire was used. For secondary data, various sources
like internet, books, and journals are used.

1.6.2. Population and Sample

The population of the research includes both male and female. Respondents are
selected by random sampling methods. A part from the direct interviewing naturalistic
observation method has also been used. Altogether 100 customers has been selected
as the respondents. And from the elaborative study, the consumers in the market have
been observed by the naturalistic observation which helps to find out the real scenario
of the preference.

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1.6.3. Sources of Data
The focus of researcher is on the primary as well as secondary data. About 100
respondents are selected which includes customers that have been present in the cell
phone shops. Similarly, the supportive data has also been obtained from different
articles and newspaper as well as from previously conducted research reports.

1.6.4. Data Collection Method

Data has been collected by using questionnaire method as well as by observing the
trends, likes and dislikes of different brands of cell phone within customers.

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 CHAPTER II: DATA PRESENTATION AND ANALYSIS
The collected data has been classified and analyzed by constructing tables and pie-
charts. Simple statistical tools like percentage, ratios, and average will be used to
analyze the data. Based on the analysis of the data, major findings have been
presented. The data was collected by the direct personal interview with the
respondents. A set of questionnaire has been presented for the data collection.
Respondents are selected by random sampling method. Here the respondents are the
visitors in different cell phone shops and show rooms located in Biratnagar. The
specific place Biratnagar has taken for data collection. Here, different customers from
the nearby places with different professions are interviewed and presented below.

2.1 Organizational profile

2.1.1. Brand Profile
Different Brands of mobile Phones available in Nepal
There are many brands of cell phones available in Nepalese market. So far, as
contemporary brands of cell phones or mobile phones is concerned in Nepalese
market, Nokia, Samsung, Blackberry, Motorola, LG, Sony Ericson, iPhone, Vodafone
and so on are seen to exist in the competitive market. Nokia, Samsung, Blackberry,
LG, Sony Ericson and iPhone have secured prominent position in the Nepalese
market. With the strong presence of these brands, many other brands which also exist
in the market are facing hard times and the brand war among these leading mobile
brands has provided the Nepalese market with better mobile sets and variety of
features.

Nokia
This is popular brand name for the Nepalese cell phone users. This German cell phone
brand have produced and launched more than 50 brands of cell phones in the world.
For example, some of them are Nokia 1100, Nokia 6680, Nokia 6600, Nokia 7260,
and so on. Its price starts from Rs1500 in Nepal. Main competitors of this brand in
Nepal are Samsung, Lava, and iPhone.

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Samsung
Samsung offers a wide selection of powerful and stylish internet-ready Smartphone,
which include Android and Windows mobile devices. It has increased its market share
in Nepalese market due to its affordable range of prices and and android applications.
It is mostly popular among the youngsters of Nepal.

Lava
Style meets function with a Lava phone. Lava Android and Windows mobile
phones come with touch screens and high quality cameras as well as all the latest
features consumers would expect in Smart phones making it one of the major
competitor in mobile phone industry across the world as well as in Nepal.

iPhone
The iPhone is a line of smart phones which is designed and marketed by Apple Inc. It
runs Apple's iOS mobile operating system, known as the "iPhone OS". In the recent
years it has gained huge popularity worldwide. In Nepal also iPhone has captured a
huge market especially of the higher income group. It has thus threatened established
brands sales such as that of Nokia and Samsung in Nepali market as well as
worldwide.

Others:
Other brands of mobile preferred by consumer of Biratnagar are Micromax, REDMI,
Colors, LG, Huawai, Intex, etc.

2.1.2. Respondent Profile

Among 100 respondents, the numbers of male and female were 56 and 44
respectively. Respondent age groups from 16-25, 25-30, 30-40 and above 40 are 37,
28, 26 and 9 respectively. Similarly, 40 respondents are single and 60 respondents are
married. The respondents are also classified as brand preferred frequency of purchase,
degree of consumer satisfaction, literacy level, and expectation from the product and
so on.

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2.2 DATA ANALYSIS
In this chapter, the information collected from the questionnaire is analyzed as
follows:
2.2.1 Distribution by Gender

Table 2.1 Distribution by Gender

Gender Respondents Percentage
Male 56 56%
Female 44 44%
Total 100 100%

Figure 2.1 Distribution by Gender

Distribution by gender

44%
56% Male
Female

Interpretation: -
In the figure: 2.1, out of 100 respondents the percentage of male consumer is 56% and
female consumer are 44%. This indicates that there are more preferences of mobile
phones among male than that of female.

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2.2.2 Distribution by Price Range

Table 2.2 Distribution by Price Range

Price Range Respondent Percentage
Below 10000 06 6%
10000-20000 49 49%
20000-50000 30 30%
Above 50000 15 15%
Total 100 100%

Figure 2.2. Distribution by Price Range

Distribution by price range

15
6

Below 10000
10000-20000
20000-50000
Above 50000

30 49

Interpretation: -
According to the figure: 2.2, out of 100 respondents 6% likes to purchase in the range
of Rs.0 –Rs.10000, 49% in Rs.10000 – Rs.20000, 30% in Rs.20000 – Rs.50000, 15%
of respondents purchase cell phone of Rs.50000 and above. The data shows that, there
is less number of people who preferred the mobile below Rs.10000, also there is
comparatively less number of people who like to spend more than Rs.50000 for the
mobile. Among the respondents most of them like to spend in the price range of
Rs.10000 to Rs.20000.

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2.2.3 Distribution by Income Level
Table 2.3 Distribution by Income Level
Monthly Family Income Respondent Percentage
Less than 25000 25 25%
25000-50000 53 53%
More than 50000 22 22%
Total 100 100%

Figure 2.2 Distribution by Income Level

Distribution by inocme

22% 25%

Less than 25,000

25000-50000
More than 50000

53%

Interpretation: -
According to the figure: 2.3, out of 100 respondents 22% of them monthly income is
less than Rs.25000, 53% of them earn between Rs.25000 to Rs.50000. Remaining
22% monthly income is more than 50000. Majority of respondent have monthly
income between Rs.25000 to Rs.50000 who purchased various brands of cell phone
according to needs, fashion and requirement.

2.2.4 Distribution by Age Group

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Table 2.4 Distribution by Age Group
Age Respondent Percentage
16-25 37 37%
25-30 28 28%
30-40 26 26%
40 above 9 9%
Total 100 100%

Figure 2.3 Distribution by Age Group

Distribution by Age group

9%
37%
16-25
26% 25-30
30-40
40 above

28%

Interpretation: -
According to the figure 2.4, the groups of the 100 respondents are classified according
to the age group. The different age groups as below 16-25, 25-30, 30-40, 40 & above
which consists of 37%, 28%, 26%, 9% of respondents respectively. During the
research, it has been found that there is the presence of different age groups of people
in the mob market. Among them, the age group of 16-25 is found comparatively more
than other age groups.

2.2.5 Frequency of buying mobile

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Table 2.5 Frequency of buying mobile

Particulars Respondents Percentage

Once a year 4 4%
Twice a year 15 15%
According to change in fashiom 37 37%
According to requirement 44 44%
Total 100 100%

Figure 2.4 Frequency of buying mobile

Distribution by frequency

4% Once a year
15%
Twice a year
44% According to change
in fashion
According to re-
quirement
37%

Interpretation: -
According to the above figure: 2.5, out of 100 respondents 4% respondents purchase
mobiles once in a year, 15% twice a year, 37% respondents responds according to the
change in fashion. And majority of the respondents i.e. 44% purchases mobiles
according to the requirement. Here, almost ½ consumer purchases according to the
requirement. This shows the presence of rationality among the consumers of mobiles
market. Inversely, very few respondents are seem to be purchasing every year. Most
of the consumers following the fashion are found to be youth.

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2.2.6 Distribution by Literacy Level

Table 2.6 Distribution by Literacy Level

Educational Qualification Respondent Percentage
Up to Intermediate 40 40%
Bachelors 49 49%
Masters and Above 11 11%
Total 100 100%

Figure 2.5 Distribution by Literacy Level

Distribution by literacy level

11%

40% Up to Intermediate
Bachelors
Masters and Above

49%

Interpretation: -
In the figure: 2.6, 40% of respondent has educational qualification up to intermediate,
49% of respondent are studying or have completed bachelor and 11% of customer
have completed masters. It means that mobile phone is mostly used by bachelors’
level respondents.

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2.2.7 Expectation from the product
Table 2.7 Expectation from the product
Particulars Respondent Percentage
Durability 21 21%
Comfort 15 15%
Style 19 19%
All of these 45 45%
Total 100 100%

Figure 2.6 Expectation from the product

Distribution by expectation
21%

45% Durability
Comfort
Style
15%
All of these

19%

Interpretation:-
According to the figure 2.7, the expectation from the product by the customer can be
listed as Durability, comfort, style and all the three options where 21%, 15%, 19%
and 45% respondents chooses first, second, third and fourth options respectively. The
figure mobiles that customers are very much cleaver and wants every benefit in the
product brought. Also there is the presence of customers whose focus is on single
feature of the product i.e. only durability, only comfort and only style.

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2.2.8 Degree of satisfaction
Table 2.8 Degree of satisfaction
Particulars Respondent Percentage
Satisfied 38 38%
Highly Satisfied 29 29%
Moderate 20 20%
Dissatisfied 11 11%
Highly dissatisfied 2 2%
Total 100 100%

Figure 2.7 Degree of satisfaction

Distribution by degree of satisfaction

11%
2% 38% Satisfied
20% Highly satisfied
Moderate
Dissatisfied
29% Highly dissatisfied

Interpretation:-
According to the figure 2.8, out of 100 respondents 38% seems satisfied from the cell
phone they used. 29% are highly satisfied 20% are neither satisfied nor dissatisfied;
they are in moderate form. Similarly, 11% are dissatisfied and 2% seems to be highly
dissatisfied from the cell phone they used. Most of the consumers are found satisfied
from the cell phone they have purchased. So, following the satisfied consumers there
is also the presence of consumers who are neither satisfied nor dissatisfied from the
product they purchase. There is the presence of few highly dissatisfied consumers of
the mobile in the market.

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2.2.9Factor influencing for selection of particular brand
Table 2.9 Factor influencing for selection of particular brand
Particulars Respondent Percentage
Advertisement 30 30%
Reference group 24 24%
Sellers 9 9%
Fashion 37 37%
Total 100 100%

Figure 2.8 Factor influencing for selection of particular brand

Distribution by influencing factors

30%
37%
Advertisement
Reference group
Sellers
Fashion

9% 24%

Interpretation:-
According figure: 2.9 presented above, out of 100 respondents, 30% are influenced by
the advertisement used by the different brands of mobile phones. 24% have been
influenced by the reference group, 9% by sellers and the remaining 37% are fashion
conscious, who tend to move according to the trend and fashion. The brand selection
also seems to be influenced by the reference group. But the influencing factors
fashion, sellers, reference group and advertisement all of these does not seem to be
much deviated from the average.

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2.2.10 Preference of Cell Phone Brand
Table 2.10 Preference of Cell Phone Brand
Brand of mobile phone Respondent Percentage
Nokia 12 12%
Samsung 54 54%
iphone 09 9%
Lava 07 7%
Other 18 18%
Total 100 100%

Figure 2.9 Preference of Cell Phone Brand

Distribution by Brand

18% 12%
Nokia
7% Samsung
iPhone
Lava
9% other

54%

Interpretation:-
According to the above mentioned figure: 2.10, out of 100 respondents 54% prefers
Samsung mobile, 12% prefers Nokia mobile, 7% prefers Lava mobile, 9% prefers
iphone. Similarly, Micromax, REDMI, Colors, LG, Huawai, Intex, etc. are preferred
by 18%. This data collection suggests that people prefers Samsung mobile more than
any other mobile available in the market. Similarly, Nokia and iphone is following
Samsung mobile in the preference list of consumers in the market.

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2.2.11Level of brand loyalty
Table 2.11 Level of brand loyalty
Particulars Respondent Percentage
Brand loyal 23 23%
Not loyal 56 56%
Some times 21 21%
Total 100 100%

Figure 2.10 Level of brand loyalty

Distribution by Brand Loyalty

21% 23%

Brand loyal
Not loyal
Some times

56%

Interpretation:-
According to the figure: 2.11, most of the respondents i.e. 56% are not brand loyal,
23% seems to be brand loyal and the rest 21% are only loyal sometimes according to
the time and situation. More than ½ respondents are not brand loyal; this means they
usually do not purchase the same brand frequently and are brand switchers. Only a
small group of people seems to be loyal for the brand.

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2.2.12. Price sensitivity
Table 2.12 Level of price sensitivity
Particulars No. of respondents Percentage
Highly sensitive 63 63%
Moderately sensitive 21 21%
Non- sensitive 16 16%
Total 100 100%

Figure 2.11 Level of price sensitivity

Distribution by Price Sensitivity

16%
Highly sensitive
Moderately sensitive
21% Non – sensitive

63%

Interpretation:-
According to the figure 2.12, most of the people i.e. 63% are highly sensitive towards
the price of the cell phone. 21% are moderately sensitive while the rest 16% are not
sensitive towards the price of the brand. More number of consumers seems to be
highly sensitive towards the price. So, in this situation producers should be very much
conscious while determining the price of product. As far as possible reasonable price
with low margin should be set so that it can grab the market. Similarly, the high
increase in price may shift the consumers to the other brands. So, possible market
research and analysis should be performed while changing the price of mobiles.

21
2.3. SWOT analysis

Strength
People usually like the product which is readily available whenever required.
Similarly, the mobile should be comfortable enough and is light weight. The basic
focus of the designer and marketer is on the above aspects while designing and
manufacturing. Similarly, uniformity is also required in the cell phone. One of the
well-known brands among Nepalese people is Samsung which is widely available and
is available at various price level from low to high. Low price attracted lots of price
sensitive consumers and has its unique position. Similarly, different new model
introduced by Samsung also shows the favorable signal in the market. The next Brand
Nokia mobile producing large number of varieties has done the effort to cover the
every segment of the market. This brand seems to produce something for everyone.
iPhone has made an effort to offer best possible mobile to the customer of standard
quality at comparatively higher price than Samsung and Nokia. Some of the well-
established brand like colors ,REDMI, Micromax, Huawai, Intex, etc. are also
comfortable, durable, stylish and attractive. They seem to supply larger varieties with
different design and colors.

Weakness
The major drawback of the brands like colors, Micromax, Huawai, Intex, etc. are low
quality and poor performance in comparison with the Samsung brand available in the
market. The resistance capacity also seems to be lower in the Samsung brand than
other brands. One of the brands, iPhone which is one of the least brand of Nepal but is
available in the current market of study, Biratnagar in a very minimal number.
Actually that particular brand has been used especially by those customers whose
income is very high.

Opportunities
No doubt Samsung brands are cheaper and easy to use in comparison with other
available brands of mobile. But in spite of this fact emotional attachment has been
seen with the Samsung brands of mobile available in the market in the mindset of
respondents. The feeling to uplift the Samsung brands has been seen among the
youths as well as the other customers. The customer seems to be accepting the

22
cheaper and qualitative Samsung brands in place of other brands. iPhone are of high
quality so everyone would like to use it. High level of Brand Image shows a sort of
Great feeling in the user of the product. Everyone wants to be stylish and highlighted.
So, there seems lots of space for the stylish brands like iPhone, Huawai, REDMI, etc.

Threats
Since, brands of cell phone like colors, Lenovo , Intex, Micromax, etc. are produced
at the cheaper price as there is always the chance that they can face tough competition
with the other brands like Nokia, Samsung, iPhone, etc. Due to the selection of the
certain market segment by the cell phone like Samsung; they seem to face less
command in the overall market of the mobiles.

Similarly, iPhone, Nokia and Samsung is of high quality which ultimately cost higher
price. So there is always the chance of brand imitation and product duplication. The
researcher has found different facts about the mobile market. The Apple iPhone was
copied by Chinese company and produced duplicate iPhone in the market. Similarly,
Samsung mobile model of duos which is of low quality but stylish and the price starts
from Rs.6000-8000 is found in Rs.4000. Here, the later one is of very low quality and
less stylish. Similarly, the same style of other Samsung mobile has been identified of
different qualities and prices in the market. This seems that there are lots of local
industries producing cell phone in the name of foreign brands. If the low quality and
less stylish cell phone are sold at relatively cheaper price than it is quite okay but if
the poor quality product are sold at high price, then it could show the major impact to
the customer. The brand may have to face the serious consequences.

23
2.4. Findings and discussion
Findings
The study was based on questionnaire method. The main objective of the research is
to analyze the tastes and preferences of the different bands of cell phone by the
consumers of Biratnagar. Following are the major findings drawn from the study:-
2.2.1. Out of 100 respondents,56% are male consumers and 44% are female
consumers.There is relatively less number for the female cell phone user in
comparison with the male.
2.2.2. 49% of people like to spend more than Rs.10000 and less than Rs.20000
to purchase cell phone at Biratnagar.
2.2.3. Most number of cell phone user that is 53%of people monthly incomes is
between Rs.25000 and Rs. 50000.
2.2.4. The most active age group which is 37%of people is found in 16 – 25
years group
2.2.5. The consumers are found very rational and 44% of them only purchase cell
phone when required
2.2.6. Most of consumers’ academic qualification is up to intermediate or
bachelors consisting 40% and 49% of total number of people respectively.
2.2.7. 45% of consumer expects the product to be durable, stylish and
comfortable.
2.2.8. Most of consumers which is 38% out of 100 respondents are found to be
satisfied with the product they purchase.
2.2.9. Fashion is found to be very influencing factor in brand selection consisting
37% of total respondents.
2.2.10. 54% of the customers are found preferring Samsung brand which is liked
by most group of people.
2.2.11. 56% of the consumers are not brand loyal.
2.2.12. Customers are found highly sensitive regarding the price i.e.63% of total
number of respondents.

Discussions
Following discussions can be done from the research conducted:

24
 Brand attributes influence the buying decision of people from all age and
educational background.
 Monthly family income of cosumers affects the duration they use their mobile
brand.
 Users of age group 16-50 mostly prefer wifi and memory card attribute while
age group of 50 above prefer FM/ Radio and wireless Bluetooth hand set
attribute in mobile phone.
 Most of the respondents prefer Samsung while LG mobile brands was found to
be least preferred by youth.
 Most of the youth in Biratnagar possess mobile phone of price range around
NRS 25,000 while very few possess mobile brand of price range below NRS
5,000.
 Brand features such as touch pad, wifi, blue tooth hand set and memory card
affect the preference of mobile phone brand.
 Mobile phone usage purpose such as call, camera, memory, etc determines the
choice of brand for the users.
 Both male and female users have similar mobile brand usage duration of 2
years on average.

25
CHAPTER 3: SUMMARY, CONCLUSION AND ACTION
IMPLICATIONS

3.1 Summary
Mobile phones are an essential element of daily life today. We accept mobile phones
as a part of our everyday lives and an important means of getting in touch with the
world around us despite our busy schedules. The purchase of a mobile phone is an
important decision with a variety of mobile phone brands available to choose from.
With the strong presence of different brands, many of the brand war among leading
mobile brands has provided the Nepalese market with better mobile sets and variety
of features.

As the time has moved on, the number of users of mobile phones has increased
tremendously. The use of mobile phone for making phone calls has changed with the
introduction of smart phones and wireless technology. User preference has shifted
from using mobile phone merely as a means of communication to using it as a storage
device, getting connect to social media and conducting business through mobile
phones and making lot of money. Male and female brand attribute preference are
different, even age group differences shapes the way they prefer one brand over others
in the market.

There are several brands of mobile phones in the market that offers variety of
attributes at different price ranges for the people. There is high competition among the
brands i.e. the potential and the real competitors. It’s very visible that youths are more
inclined towards the brand with new technologies and new attributes irrespective of
their prices.

3.2 Conclusion
Customer satisfaction is expectations, likes, dislike, motivations and inclinations that
drive customer purchasing decisions. These factors complement customer needs in
explaining customer behavior. Customer satisfaction is the subjective (individual
tastes) and is measured by the utility of the various bundles of goods consumed.
Customer ranks these bundles of goods according to the level of utility they obtained
from each goods. One can prefer an Apple I-phone over Samsung mobile phone but

26
only have the financial means to afford Samsung phone. The preferences are
independent of income and prices. Ability to purchase goods does not determine the
customer’s likes and dislikes. They are no doubt dependent upon culture, tastes,
preferences, education and many other related factors. Preferences are measured in
terms of level of satisfaction the customer obtains from consuming various
combinations or various bundles of goods. Consumer makes decision by allocating
their scarce resources over all the possible goods in order to obtain the highest level of
satisfaction. Consumer maximizes their utility subject to their budget. Utility is
defined as the satisfaction that consumer obtains from the consumption of the goods.
Utilities determinants are determined by the host of non-economic factors. Consumer
value is measured in terms of the relative utilities between the goods. These reflect the
consumer preference.
The brand name is referred as the product identifying tool which is used since long
back. Every people want to have cell phone which suits them most. So, people would
like cell phone according to the needs, fashion and requirements in different time and
situation. The most popular brands Samsung are thought as luxurious and every
people can afford those mobile phones of different models of different price range.
Similarly, the youths are highly brand conscious and they seem to prefer iPhone along
with Samsung which are durable and more stylish. People always search for new,
elegant and innovative product. So, one cannot say that particular brand available in
the market is best. The other brand may be faster in serving customer and may
provide more qualitative and comfortable cell phone at a more reasonable price.
Therefore, consumers are the one who have sole authority for uplifting or depleting
the market share of the brand of mobiles. The place where most of the people are of
middle class having moderate level of income; these peoples usually do not much
focus on the this and that brands. They usually prefer more or less stylish, durable,
comfortable, low cost and qualitative products so that it could last long and is not
more expensive. Such people usually have the feeling of optimum utilization of their
limited income. So, they seem to be less conscious about brand images.

27
3.3 Action implications
The following aspects should be considered for the better customer satisfaction:
1. Cell Phone manufacturers have to incorporate emotional value and quality on their
mobile because these factors highly influence the purchase of cell phone.
Particularly they have to provide brands that have a novelty features, stylish,
fashionable, and reliable and that fulfill its functional benefits.
2. Because factors that affect brand preference vary based on customers’ personality
and demographic characteristics, cell phone manufacturers have to adopt their
products by consideration of age group and gender since, their feelings are varies
on selection of style, fashion, novelty, reliable, durable and functional benefit and
potentially affect purchase intension and decision.
3. Retailers’ and manufacturers’ promotions have to concentrate on the emotion,
feelings, symbolic characteristics, and perceived status.

28
 Bibliography
D.D., M. (2015). Brand preference of mobile phones users. International Journal of
Advanced ScientificResearch and Development , 222-226.
Dadzie, A. (2011). Study on Brand preference of mobile phones in kathmandu.
Dhital, M. (2016). Study on brand preference of mobile phones in Kathmandu.
Kathmandu,Academia , 65-71.
Kotler, P. (2013). Customer satisfaction Evaluation. Theseus .
R.C., E. (2013). The American college student cellphone survey. College Student jounal,47
, 75-81.
LENHART, A., LING, R., CAMPBELL, S., & PURCHELL, K. (2010). Teens and Mobile
Phones. Pew Research Center.
 ANNEX 1
CUSTOMER PREFERENCE TOWARDS CELL PHONES
BRANDS AT BIRATNAGAR

This is Sneha Sharma from Mahendra Morang Adarsha Multiple Campus, Biratnagar and I
am conducting a small research on the above topic. The information provided will be kept
confidential and will be used solely for academic research. Your response is highly
appreciated.

Section A: Personal Information
1. Gender 2. Age 3. Permanant Address

1. Male 1. 16-24

2. Female 2. 25-30 1. Biratnagar

3. 31-40 2. Outside Biratnagar

1

4Literacy Level 5. Monthly Family

Income (in NPR)

1. Upto Intermediate 1. Less than 25,000

/+2 2. 25,000-50,000

2. Upto bachelors 3. More than 50,000

3. Masters and Above

Section B: About mobile phones
Q6. Which mobile phone you are using? (Tick major one)

1. Nokia
2. Samsung
3. iPhone
4. Lava
5. Others
 
Q7. In what Price range does your mobile phone fall?

1. Below 10000
2. 10000-20000
3. 20000-50000
4. Above 50000

Q8. Why did you choose this brand over others?(you can select more than one)

1.Better features
2.Reasonable price
3.Better outlook
4.Catchy advertisement
5.Satisfied friends/peers with the brand
6. Others
Q9. What brand of phone did you previously own? (you can select more than one)

1. Nokia
2. Samsung
3. Lava
4. iPhone
5. Others

Q10. For what purpose do you use your mobile mostly?

1. Call
2. Internet
3. Songs and multimedia
4. Camera
5. Memory

Q11. For mobile phone please tick as per the following attributes:

In your view, it Is Important To Strongly Disagree Neutral Agre Strongly

Have The Following Attributes: Disagree e agree
Screen Touch 1 2 3 4 5
Bluetooth Head Set 1 2 3 4 5
Camera 1 2 3 4 5
FM/Radio 1 2 3 4 5
Touch Pad 1 2 3 4 5
Wi-Fi 1 2 3 4 5
Q12. Which is your favourite mobile phone brand?
( Please choose your 3 favourite brand in order of preference from 1- Most favourite
to 3-Least favourite)

1 2 3
1. Nokia
2. Samsung
3. Lava
4. iPhone
5. Others

Q13. What is your expectation from the product?

1. Comfort
2. Durability
3. Style
All of These