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INTRODUCTION

Information technology is "the study, design, development, implementation, support or management of computer-based information systems, particularly software applications and computer hardware." Encompassing the computer and information systems industries, information technology is the capability to electronically input, process, store, output, transmit, and receive data and information, including text, graphics, sound, and video, as well as the ability to control machines of all kinds electronically. Information technology is comprised of computers, networks, satellite communications, robotics, videotext, cable television, electronic mail ("email"), electronic games, and automated including office equipment. The information industry consists of all computer, communications, and electronics-related organizations, hardware, software, and services. Completion of tasks using information technology results in rapid processing and information mobility, as well as improved reliability and integrity of processed information. It is a convenient term for including both telephony and computer technology in the same word. It is the technology that is driving what has often been called "the information revolution". Nowadays it has become popular to broaden the term to explicitly include the field of electronic communication so that people tend to use the abbreviation ICT (Information and Communication Technology).

Global mobile handset market


The phenomenal rise of the mobile phone has seen its image change from a yuppie status symbol to a daily essential. Along the way, it has created thousands of jobs, changed the way we do business, and made an awful lot of money for investors. Today Key Handset technologies include GSM, CDMA, and Wi-Fi, TDMA, 3G, and Blue Tooth. Worldwide mobile phone sales cruise to 990.8 million units in 2006, up a hefty 21.3% from 2005s 816.6 million units. The estimated growth figures are6.4% in 2007, 4.8%

in 2008 and 2.6% in 2009.The total number of mobile phone subscribers in the world was estimated at 2.14 billion in 2005. With the periodic introduction of new features and multimedia tools in the mobile handsets due to technological advances, more and more people in the Asian continent fancy is buying them. There are many diversities and complexities in the Asian mobile handset market due to types of customers, government regulations, regional/geographical wireless infrastructure, and the purchasing power. Basically, the Asian market looks at the mobile handsets as status symbols. The market is seen best for the low-end phones, but there is a huge rise in the demand for flashier and costlier phones. India, China, Korea, and Malaysia are fast evolving as the biggest markets for mobile handsets and in coming years they will mainly carry on the global handset sales.

Major Global Players


Table 1.1: showing market share of major global players of mobile phones in 2009 Company 2009 Market Share (%) Nokia Samsung LG Sony Ericson Motorola ZTE Kyocera Others Total 38 20 10 5 5 4.5 4 13.5 100.0

Nokia Corporation: is currently the world's largest manufacturer of mobile telephones. It produces mobile phones for every major market and protocol, including GSM, CDMA, and W-CDMA (UMTS).The corporation also produces telecommunications network equipment for applications such as mobile and fixed-line voice telephony, ISDN, broadband access, voice over IP, and wireless LAN. Nokia's Mobile Phones division provides the general public with mobile voice and data products across a wide range of mobile devices. The division aims to target primarily high-volume category sales of mobile phones and devices, with consumers being the most important customer segment. Nokia believes that design, brand, ease of use and price are mainstream mobile phones' most important considerations to customers. Nokia's product portfolio includes camera phones with features such as megapixel cameras which appeal to the mass market. Motorola: is an American multinational communications company based in Schaumburg, Illinois, a Chicago suburb. Most of Motorola's products have been radio-related, starting with a battery eliminator for radios, through the first walkie-talkie in the world, defense electronics, cellular infrastructure equipment, and mobile phone manufacturing. Motorola has recently been regaining market share in the cellular-phone business from Nokia, Samsung, and others due to stylish new cellular phone designs. Samsung Electronics is one of the world's largest IT companies by revenue. The company also claims to be have the highest brand value among consumer electronics companies. Headquartered in Seoul, South Korea, it is part of the Korean Samsung Group, operating in approximately over 100 countries. It is the number 1 mobile phone manufacturer in Asia. Sony Ericsson is a joint venture established in 2001 by the Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericsson to make mobile phones. Both companies have stopped making their own mobile phones. The reason for this merger is to combine Sony's consumer electronics expertise with Ericsson's technological leadership in the communications sector. The

company's global management is based in Hammersmith, London. It also has research & development teams in Sweden, Japan, China, Canada, the Netherlands, the United States,India and the United Kingdom. LG Electronics is one of the world's leading electronics companies. It is part of the Korean LG Group, operating in approximately 80 countries. Its mobil phones division provides CDMA, GSM, 3G Handsets. ZTE (Zhong Xing Telecommunication Equipment Company Limited) is a publicly-owned, Chinese corporation that designs and manufactures telecommunications equipment and systems. Based in Shenzhen, and established in 1985 ZTE offers a wide variety of telecommunication products that provide services, including value-added services such as video on demand and streaming media to its customers, which are primarily telecommunications service providers, mobile network operators, etc Kyocera Communications Inc.(KCI) is a manufacturer of mobile telephones for CDMA networks and is a wholly owned subsidiary of Kyocera Corporation that was formed in February 2000 when Kyocera acquired QUALCOMM's San Diego, California-based terrestrial handset division. It produces mobile phones, cellular routers, and Mobile PC Cards for markets in North America, South America, Australia, and New Zealand.

Mobile Handset Market in India


The cell phones industry has shown a remarkable growth in the last decade. In 1989 the number of its subscribers was zero in India. Indias love affair with cell phones started in the mid-1990s, as the mobile revolution took hold and India had just 10 million mobile and landline connections. Delhi was the first state to launch cell phones in India. Growth then soared in the last four years due to regulatory change and falling costs of calls and handsets. Indias wireless market is a test bed for alternative infrastructure, handsets, billing systems, business models and marketing strategies that will likely prove applicable to other developing countries.

On a numerical basis, India is the biggest growth market adding about 6 million cell phones every month. CAGR for mobile phones is 86% in India. It is one of the fastest growing mobile markets in the world; in April 2006 mobile subscriber base crossed 100 million mark. This has been accomplished by rethinking handsets, network infrastructure, enhanced services and content. More than twothird of mobile subscriptions are with GSM operators and rest with CDMA. India has one of the lowest mobile phone tariffs in the world resulting in low Average Revenue per User (ARPU) of 9.04 USD per year (CDMA 5.74 USD and GSM 8.89 USD).

Major players in India


The major players in the handsets segment in India include Nokia, Motorola, Sony Ericsson, Samsung, LG, Philips, Panasonic, Bird, Sagem and BenQ. Nokia has retained the top slot in Indian market with 70 % share, while US giant Motorola has 15 % share and Sony Ericsson has gained around 8% share this year. Samsung has 5% share and LG has 1.8% share. Market share in percentage of the mobile phone players in India

Consumer Buying Behavior


Everybody in the world is the consumer. Each of us buys and sells or consumes goods and services in the life. Consumer behaviour is very complex and is determined to a large extent by social and psychological factors. Consumer behaviour can be defined as those acts of individuals directly involved in obtaining, using and disposing of economic goods and services. The relevance and importance of understanding consumer behaviour is rooted in the modern marketing. The needs of not even two consumers are the same. Therefore, they buy only those products and services, which satisfy their wants and desires. To survive in the market, a firm has to be constantly innovating and understand the latest consumer needs and tastes it will be extremely useful in exploiting marketing opportunities and

in meeting the challenges that the Indian market offers. A study of consumer behaviour is significant for regulating consumption of goods and thereby maintaining economic stability. Within the broad framework of marketing, the area that entices the most researchers is the study why a consumer behaves in a particular way. The complexity of the behaviour, however, varies with the nature of the product and the need, which it is required to satisfy. The study of consumer behaviour is the study of how individuals make decisions to spend their available resources on consumption of related items. Consumer behaviour is an applied discipline. Its application exists at two different levels of analysis. One is at the micro level perspective and other at the macro level perspective. Micro level seeks application of the knowledge faced by the individual, firm or an organization. The macro perspective applied knowledge of consumer includes the aggregate level of problem faced by large groups or by society as a whole. Consumer behaviour provides a sound basis for identifying and

understanding consumer needs. It is the act of the individuals directly involved in obtaining and using economic goods and services. The study of consumer behaviour is an essential component of marketing. The adoption of marketing concept by the marketers provides the impetus for the study of consumer behaviour. In case of New Product Introduction in the market, there is a risk of product failure. To increase the chances of success of new products, better information of the consumer behavior is required. Their desires, tastes and preferences are to be taken care of. So from all these aspects the study of consumer behavior is important.

Objectives of the study are:


1. To examine the factors those influence the customer choice while purchasing a mobile hand set.

2. To know which features in a particular brand are preferred by the mobile phone users? 3. To find out what additional features are demanded by consumers. 4. To study the satisfaction level of mobile phone users.

RESEARCH METHODOLOGY
It includes the scope of the study, research design, collection of data, analysis of data and limitations of the study.

Scope of the study


The scope of the study is to get the first hand knowledge about the buying behaviour of consumers towards different brands of mobile handsets. The scope is restricted to study the factors affecting the preference of consumers while choosing a mobile handset.

Research Design
The research design constitutes the blueprint for the collection, measurement and analysis of data. It is the strategy for a study and the plan by which the strategy is to be carried out. The research design of the project is descriptive as it describes data and characteristics associated with the population using mobile phones. Descriptive research is used to obtain information concerning the current status of the phenomena to describe "what exists" with respect to variables in a given situation.

Data Collection
Primary Data Primary data is that data which is collected for the first time. It is original in nature in the shape of raw material. For the purpose of collection of primary data, a well structured questionnaire was framed

which was filled by the respondents. The questionnaire comprises of close ended as well as open ended questions. In close ended questions dichotomous, ranking, checklist questions and multiple choice questions are used. Secondary Data Secondary data is the data which is already collected by someone. They are secondary in nature and are in shape of finished product. Secondary data was collected so as to have accurate results. Required data was collected from various books, magazines, journals and internet.

Limitations of the study


Sincere efforts have been made to collect authentic and reliable information from respondents, however the report is subject to following limitations: i. Some respondents were reluctant to give the information, so their responses may be biased. ii. Time could be a major limitation as it may have affected the inferences drawn in the study. Only 50 respondents have been contacted due to time constraint. iii. Sample may not be the true representative of the universe.

ANALYSIS AND INTERPRETATION

This analyses the behaviour and preferences of the consumers for various brands of mobile hand set based on various factors which influence their buying decision.

Results of the study


Showing number of respondents owing a mobile phone No. Of Respondents Yes No Total 50 0 50 % 100 0 100

Showing different brands of mobiles phones used by the respondents

Brands Nokia Sony Ericsson Motorola Samsung LG Others Total

No. of respondents 31 3 6 4 2 4 50

% 62 6 12 8 4 8 100

Interpretation: From the above table and figure, we can conclude that out of 50 respondents 62% have Nokia hand set,6% have Sony Ericsson , 12% use Motorola ,8% have Samsung, 4% have LG. Apart from these brands 8% of respondents have other brands like Spice, Micromax, Panasonic etc.

Showing respondents using same brand as they had earlier

RESPONSES Yes No Total

NO. OF RESPONDENTS 32 18 50

PERCENTAGE 64 36 100

70 60 50

percentage

40 30 20 10 0 yes re s pons e s no

Interpretation: From the above, it is interpreted that 64% of the respondents had same brand of mobile hand set earlier while 36% had different brands. Some switched over due to new features available in other brands and others due to inefficiency in earlier brand. But above figures conclude that most of the respondents are brand loyal.

Showing reasons for using mobile phone by the respondents

Reasons Communication Status Dont have landline Others Total

No. of Respondents 19 18 3 10 50

% 38 36 6 20 100

Interpretation: Above table and figure depict that 38% of respondents use mobile for communication, 36% use it as a status symbol, 6% use mobile because they dont have landline connections and 20% of respondents have other reasons like necessity, games, music etc.

Showing the factors considered by respondent while purchasing a mobile handset Factors Price Appearance Brand Features No. of responses 23 24 24 32 Average 0.19 0.20 0.20 0.26

Easy to carry/Weight Total

18 121

0.15 1

Fig.3.5

0 . 15

0 . 19

Price Appearance Brand 0.2 Features Easy to carry/W eight

0 . 26 0.2

Interpretation: From above it can be concluded that features in a mobile hand set is the most important factor which is considered by the respondents while purchasing the mobile phone. Brand and Appearance are the other very important factor influencing the purchase decision. Price is also an important factor. Easy to carry is the least important factor that is considered in the purchase decision.

Showing

different

purposes

for

which

mobile

is

used

by

the

respondents

Diff. Purposes Receiving/making calls

No. of Respondents 50

Average 0.34

SMS/MMS Games E-mail/Internet Music Camera Total

35 13 12 25 20 155

0.23 0.08 0.04 0.17 0.14 1

Fig.3.7

0 .4 0 .35 0 .3 average 0 .25 0 .2 0 .15 0 .1 0 .05


ca l ls

0 .34

0 .23 0 .17 0 .14 0 .08 0 .04

am es E -m ai l/I nt er ne

S /M M S

M us ic

ki ng

Interpretation: From the above figures it can be concluded that in spite of using mobile phone for calls and SMS which are its basic purposes.

Showing ranking of various features of mobile handsets by the respondents according to their preferences

ec iv in g/ m a

S M

am er

Features Bluetooth MP3 Player Camera Data Storage Capacity GPRS Personal Info. Management

Mean scores 3.29 3.16 3.23 3.13 4.87 3.32

Rank 5th 2th 3rd 1st 6th 4nd

Interpretation: Since 1 is given to the most preferred feature and 6 to the least preferred feature in a mobile hand set, therefore from the table, we can conclude that data storage capacity is the most preferred feature in a mobile hand set. 2nd and 3rd ranks are given to MP3 player and camera in the mobile phone respectively. After them the features of personal information management and Bluetooth are given preference. GPRS is the least preferred feature in the mobile phones.

: Showing range of price that respondents like to spend on mobile hand set

Range

No. of respondents

Below 5000 5000-10000 10000-15000 Above 15000 Total Camera

16 20 11 3 50 Bluetooth Music Player

32 40 22 6 100 Memory

No. of respondents Nokia Motorola Sony Ericsson Samsung Total 34 9 7 0 50 31 13 5 0 50 15 8 27 0 50 37 5 8 0 50

Interpretation: From above it is interpreted that 39% of respondents prefer to spend between the ranges of Rs. 5000-10000, 22% between Rs. 10000-15000, 7% above Rs. 15000and 32% below Rs. 5000. It concludes that mobile phone users here are price sensitive. Mobile phones are no longer a status symbol instead they have become a necessity.

: showing features preferred in a particular brand of mobile phone

Interpretation: From above table and figure it is concluded that consumers usually prefer Camera, Bluetooth and Memory features of Nokia and music player of Sony Ericsson. Features of Motorola and Samsung are also liked by some respondents but features of LG are not at all preferred by them.

Showing additional features required by the respondents in their mobile handsets

Features Wi-Fi TV Video Conferencing Windows Total

No. of responses 19 17 18 19 73

Average 0.26 0.23 0.25 0.26 1

Interpretation: From above table and figure it is concluded that features of Wi-Fi and Windows are more in demand. TV and Video Conferencing too are considered almost equally important.

FINDINGS OF THE STUDY

1. Nokia is the most popular and widely used brand by consumers. 2. 64% of the respondents used same brand earlier. It shows that most of

the mobile users are brand loyal. 3. Price comes after the satisfaction of above factors and easy to carry facility is least considered during purchase decision.
4. Its clear that consumers purchase a particular brand of mobile

handsets on the basis of the positive report about their performance received from their friends and family members who already own that brand.
5. Besides receiving and makings calls and SMS consumers are also

using mobile for listening music and camera.


6. As far features of mobile phones are concerned its clear from above

that consumers give more preference to the features of data storage, MP3 and Camera. GPRS is the least preferred feature in the mobile phones.
7. Consumers prefer to spend between Rs. 5000 and Rs. 10000 on a

mobile phone. It again depicts that mobile phones are no longer a status symbol now and has become necessity. 8. Most of the population is satisfied with their existing brands. The main problem faced otherwise is related to the battery life of a mobile hand set.

Consumers require additional features of Wi-Fi, Windows, TV and Video Conferencing in their mobile phones. It depicts that people here are techno savvy and want to use innovative features.