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A STUDY ON CUSTOMER BUYING BEHAVIOR TOWARDS MOBILE PHONES IN


BHUBANESWAR

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Science, Technology and Development ISSN : 0950-0707

A STUDY ON CUSTOMER BUYING BEHAVIOR TOWARDS MOBILE PHONES IN


BHUBANESWAR

Prof. Debasish Rout


Assistant Professor, Amity Global Business School, Bhubaneswar,
devasishrout@gmail.com

Dr. Somabhusana Janakiballav Mishra


Assistant Professor, Amity Global Business School, Bhubaneswar,
sombapuni@gmail.com

Dr. Ranjan Kumar Kantha


Dean, Amity Global Business School, Bhubaneswar, rkantha@bbsr.amity.edu

Sameeran Thakur
Student (Operation Management), MBA, Amity Global Business School,
sameeran.thakur@gmail.com

ABSTRACT

In this cyber-era, connectivity with all in every aspect is the need of the hour. Information is very
crucial in today’s world, and if we do not update ourselves then this ruthless world will grind us.
How can we update ourselves? How everyone and every information will be at the tip of the
finger? The answer is the portable devices and smartphone is one such electronic gadget or rather
IOT (Internet of Things) which makes our work easier. A smartphone not only fulfills the calling
and receiving function but also meets various consumer needs such as internet and social
networking, multimedia, selfie, assessment of health traits, video calling etc. A great number of
variables influence Smartphone buyers’ purchasing decisions. This research describes underlying
factors that play a leading role. Smartphones range and purchase in highly competitive market.
Investigators also analyze respondent's demographic characteristics. The analysis was conducted
in Bhubaneswar district of Khurda.In this technological and competitive age, the purpose of this
study is to explore the key factors that inspire consumers to purchase and use smartphones.
Therefore, the purpose behind the use of smartphones is to recognize the attitude of the customer
towards smartphones and finally to know the satisfaction level of the customer towards
smartphones. This research is more critical for Smartphone companies as they sell.

KEYWORDS: - Smartphone, marketing strategy, purchasing behavior, customer perception

INTRODUCTION
Smart phone has many functionalities other than contacting different people. Until today, there is
a wide range of brands launching new apps and updates on smart phones. Youngsters today
frequently change their mobile phones according to the new models. Buying smart phones from

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famous brands recently is becoming trendy. Not only do youngsters of all ages enjoy buying and
using smart phones.
Consequently, the object of this research is to find out consumer purchasing behavior on
smartphones. The work is about finding why people prefer smartphones. Who influences
smartphone buying? Different people have different life factors influencing buying behavior.
The technology has become an integral part of our lives in this global age. Nowadays the
expression ' planet is close to your fingertips ' has become prevalent. Technology has further
reduced smartphones, from the desktop to the laptops.
Recent years have seen a surge in smartphone use. Some areas of the world enjoyed fast
deployment and high mobile telephony penetration. At least one Smartphone owns 75 percent of
the world's population. In today's society, people are increasingly relying on technology
especially when interacting with others.
After 1983 the smartphone industry has boomed. Many large mobile phone companies have
since stepped their foot into the industry. Western smartphone manufacturers, like Apple and
Google, are increasingly looking for growth in the east, giving countries like India considerable
influence over the kinds of features they put into their phones.
A variety of important factors affect and determine Smartphone buyers’ purchasing behavior.
Manufacturers also need to consider what type of product, design and model, size, memory
capacity, price range, after-sales services. In this analysis, different types of variables that
represent different parts of the smartphone are included.

Invention of Mobile Phones

The very first cell phones were not exactly cell phones. They were radios that facilitated the cab
drivers and the crisis administrations to have two-way communication.
The historical backdrop of cell phones returns to 1908 when a US Patent was given in Kentucky
for a remote phone.Cell phones were created in 1940s when specialists working at AT&T.
Workers created cells for cell phone base stations.
Motorola, on 3 April 1973 were first organization to mass-produce the cell phone.These early
cell phones are called as 0G cell phones, or Zero Generation cell phones. Most smartphones
today depend on 3G or 4G or 5G portable innovation.

Milestones in Smartphone History-


1983-1990
The First Ever Portable Mobile Phone

In 1983 the world got the first ever convenient cell phone looking like the Motorola Dyna TAC
8000X. It cost an eye-watering USD $3999.
Then Vodafone Chairman Sir Ernest Harrison, the fortunate beneficiary.
In 1989 Motorola lined up the Dyna TAC 9800X and set the standard for the flip telephone
structure factor seen all through the 90's.
Features

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Mobile Calling

1991-1994
Born of Consumer Handsets
GSM(Global System for Mobile Communications), Europe in 1991 with the Orbitel TPU 900
first to showcase, yet it wasn't until 1992 that mobiles were never again confined to business use
but Nokia was one of the first to exploit this change, with the Nokia 1011 showing up that year.
Features
SMS, Games

1995-1998
Introduced to multi-color display
In spite of the fact that the Siemens S10 just offered four Colours that is (Red, Blue, Green and
Black) breathed life into cell phone.
Customization additionally commenced in a major manner with Ericson offering Changeable
multi colored front panel boards.
The next year Nokia 'Xpress-on' comes with exciting exchangeable covers on NOKIA 5100
segment.
Features
E-mail, vibrate Alerts, Color Screen

1999-2002
Features Phones are Introduced To Market
In the year 1999 Nokia launched the 7110 which was the first ever-mobile gadget to exploit,
WAP (Wireless Application Protocol, is a technique to access information over a wireless mobile
network).
After one year in 2000, SHARP introduced the world's first camera smartphone.
In 2002 the arrival of the Sony Ericsson T68i and its crystal clear back camera, that worlds
markets began to check out the camera smartphones.
Features
WAP, Tri Band Network, video Calling, GPS Navigations, Predictive texts, Camera, Polyphonic
Ringtones, MP3 Player, Bluetooth, Memory Card, MMS

2003-2006
3G Mobile Data Revolution
Introduce of 3G Mobile Network took download speed accelerates to 2MBPS in March 2003.
The appearance of front facing cameras in 2003 on smart gadgets and smartphones.
For example, the Sony Ericsson Z1010 implied video calling but in later on it is not so in
demand.

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Features
Real tone Ringtones, Augmented Reality, Wi-Fi, Quad-Band, Phone internet Protocol, water
Proof, Full Web Browsing (operamini Browser)

2007-2010
Capacitive Touch Screen
Capacitive touch screen supplanted the conventional push buttons technique for input like -
swiping and looking over.
The LG Prada being the first ever touchscreen to display in front of the Apple iPhone in May
2007. However, Apple demonstrated to have both the more stronger and superior brand and
predominant information on capacitive touchscreen's latent capacity.
Features

NFC (Near-Field Communication), Capacitive Touchscreen, Mobile Apps, Apple Store,


Wireless Charging

2011-2014
Become the Soul Companion of human
Cell phones turned out to be very progressively vital to current day-to-day life, offering
significantly more than just correspondence highlights, for not only communication but also it is
multitasking.
Introduction to 4G Mobile Networks propelled download speed accelerates up to 12mbps. Voice
Recognition / voice command became popular with Google Voice Assistant & Apples Siri.
Samsung included an implicit pulse rate tracking and measurement section to their new Galaxy
S5 flagship phone. Now the mobile industry going towards a new revolution in the field of
healthcare and fitness.
Features

Voice Control, Google voice Control , Siri, Dual Lens camera, Facial Recognition ,Fingerprint
Scanning, Full HD screen, Heart Rate monitor and other health based apps.

2015-2018
Trends for big screen, internal memory, processors and features (applications, camera mega
pixels, music player, internet, screen size.
The worldwide adoption of 4G tremendously improves video streaming (Netflix, YouTube,
hotstar) and video calling (skype, WhatsApp, Facetime) capacities.
Screen size and type of screen keep on developing to boost the experience of these highlights.
IPhone 7 Plus comes with 58% bigger than the first iPhone from 2007.
Portable payments app and E-wallet likewise Apple Pay and Android Pay offering clients the
chance of purchasing things with their smartphones.

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Features

Iris Scanner, Apple pay, android Pay, Bezel Less screen, Notch, In display finger print scanner

2018-2020
Information transform speeds multiple times quicker than 4G.
The 5G or 5th generation mobile network guarantees immensely data transmission and superior
quality. Boosting ultra-high 4k, video streaming and portable high definition mobile gaming.
Now a days smartphones are configured with latest new trends keep pace with an all-screen user
interface experience.
With OnePlus and many other leading smartphone brands presenting the motorized rise up selfie
camera and quad cameras in backside.
Features

Quad lens cameras, pop-up selfie camera, 5G connectivity

LITRATURE REVIEW
Jaakko Sinsalo, JariSalo, HeikkiKarjaluto, MattiLeppäniemi, (2007) found from their
research thatM CRM is a portable client relationship conceptualization where the interaction
between the client and the customer is fourfold. They are acceptance of advertising messages,
bypassing the sales messages, filtering the messages and the trust between the client and the
customer based on which the products are accepted.
Fred Robins (2003)inferred that there is a blending of technology and imagination to build a
product, whose innovation is based on the personalization, advancement of different generations
of mobile handsets to be aligned with the internet speed and technology.

Lynda Andrews, Judy Drennan, Rebekah Russell-Bennett, (2012)


Examined that customers' impression of the worth value they get from the ordinary day to day
utilization of smart phones and how portable advertising (m-promoting) can possibly improve
these worth recognitions. The discoveries feature approaches to tailor m-showcasing procedures
to supplement purchasers' view of the worth value offered through their smart phones.
Kotler and Armstrong (2001)in their book have written that the main factors, which
discriminate from one customer to the other, are age, salary, perception and adaptation. This
demographical diversification leads the marketers to assess the impact of their products in the
mind of the customers and the customers are segmented accordingly.
Kushagra et al (2017)stated that the modern y generation customers who are young and
dynamic are very tech-savvy and adventurous as far as adaptability to a new product is
concerned. They give very much emphasis on the attributes of a mobile like camera quality,
processor speed for gaming, battery power etc.

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Pigato (2001) explored that the proliferation of mobile phones in an unexpected rate in
developing countries since the 1990s. Even poor and remotest countries from sub- Saharan
Africa and South Asia are also catching up rapidly in mobile access.

Mokhlis, Yakkop (2012) when experimented buyers behavior towards smart phones in
Malaysian University reached the resolution that seven components depict smart phone buying
behavior – inventive and innovative highlighted features , picture quality, value for money,
durable , solidness and compatibility , media impact and post sales services. The most significant
among them was imaginative highlights followed by proposal and cost.
Osman et al (2012) in their investigation found that customers made buying decision based on
design availability and brand image.

Chu-Mei Liu (2002). A good brand imaging is imperative to producers and all the
intermediaries of marketing process. High brand valued items have higher acceptability which
leads to high sales. The rapid growth of portable smart phone subscriptions is extensively
quicker in the Philippines. Now a day’s mobile phone manufactures and service providers are
collaborating with different advertising and promotions.

Ibrahim, Kassim, &Mohamood (2013) have deduced that while purchasing mobile phones the
young customers in the society are more influenced by celebrity endorsement, frequency of
advertisement, discount offers, word of mouth publicity spread through friends, family and
relatives.

OBJECTIVES OF THE STUDY

1. To distinguish the purchasing decision making factors that influences the customer with
regard to mobile phones.
2. To identify the many differences between different features which attract the costumer to
purchase it.
3. To examine the factors that influences satisfaction of customer.

SCOPE OF THE STUDY

This research will assist with understanding the purchasing behavior of individual groups of
customers and help to oversee item portfolio better. This study is an endeavor to break down the
buyer purchasing preferences and inclinations towards the utilization of the product and the
buyer’s level of satisfaction.

1. This research assists with knowing the components which affecting the buyer to buy
Mobile Phones.

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2. This research is for the the brand inclination for cell phones like realme,mi,vivo,oppo,
Samsung,one-plus and so on and the attitude of buyers, which belongs with low, middle
and high income groups are taken in Bhubaneswar city.

RESEARCH METHODOLOGY

The Size of the Sample:-100 Respondents


The sampling method: -non-random convenience sampling
Types of questionnaire:-close ended

DATA ANALYSIS AND FINDINGS


Figure 1

Figure-1 represents 45% of respondent in the survey were male and 54% of respondent in the
survey were female. 1% of respondent prefer not to say anything.

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Figure 2

Figure-2 shows 83% of respondent in the survey were of age group of 20-30 years. 9% of
respondent in the survey were of age group of below 20 years.

Figure 3

It can be seen in figure-3 that 32% of respondent in the survey are using MI/Redmi phone. 13%
of respondent in the survey are using Vivo phone. 10% of respondent in the survey are using
Oppo, Samsung, Apple iphone, Oneplus phones.

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Figure 4

Figure-4 represents 55% of respondent give very importance to price factor when purchase a
mobile. 29% of respondent give importance to price factor when purchase a mobile. 58% of
respondent give very importance to Brand factor when purchase a mobile. 41% of respondent
give very importance to Color factor when purchase a mobile. 41% of respondent give very
importance to Shape when purchase a mobile. 50% of respondent give very importance to design
factor when purchase a mobile. 79% of respondent give very importance to quality factor when
purchase a mobile. 81% of respondent give very importance to features when purchase a mobile.

Figure 5

Figure-5 shows 48% of respondent are Very Satisfied to price factor in their preferred mobile.
47% of respondent are Very Satisfied to color factor in their preferred mobile. 47% of
respondent are Very Satisfied to shape factor in their preferred mobile. 44% of respondent are

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Very Satisfied to design factor in their preferred mobile. 54% of respondent are Very Satisfied to
quality factor in their preferred mobile. 49% of respondent are Very Satisfied to quality in their
preferred mobile.

Figure 6

From figure-6 it is evident that 38% of respondent are attracted towards price offers, when
purchase a mobile. 35% of respondent are attracted towards discount, when purchase a mobile.

Figure 7

Figure-7 represents 33% of respondent are attracted towards suggestion from friends & family,
when purchase a mobile. 24% of respondent are attracted towards any other factors, when
purchase a mobile.

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Figure 8

Figure-8 shows 74% of respondent are influenced by internet advertisement, when purchase a
mobile. 14% of respondent are influenced by television advertisement, when purchase a mobile.

A variety of important factors affect and determine Smartphone buyers’ purchasing behavior.
Manufacturers also need to consider what type of product, design and model, size, memory
capacity, price range, after-sales services etc. attract customers. We have here made an attempt ot
see whether there is an association between importance of different factors such as price, brand,
quality and features with satisfaction towards the product. Chi-square analysis is used to analyze
the association.

H0: There is no association between importance of price and satisfaction

H1: There is an association between importance of price and satisfaction

Table-1

Satisfaction
Dissatisfied Satisfied Very satisfied Total
Least Important 7 6 8 21
Importance of Price
Important 6 11 26 43
Very Important 6 19 11 36
Total 19 36 45 100

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Table -1 shows observed values of responses collected from the respondents regarding the
importance of price while buying a mobile phone and satisfaction of the mobile phone.

Table-2

Satisfaction
Dissatisfied Satisfied Very satisfied
Least Important 3.99 7.56 9.45
Importance of Price
Important 8.17 15.48 19.35
Very Important 6.84 12.96 16.2
p value 0.020935886

Table -2 represents the expected values with the p value of the chi-square, which is 0.02. It
signifies that there is a significant relationship between importance of price and satisfaction of
the product.

H0: There is no association between importance of brand and satisfaction

H1: There is an association between importance of brand and satisfaction

Table-3

Satisfaction
Dissatisfied Satisfied Very satisfied Total
Least Important 4 5 9 18
Importance of Brand
Important 7 15 10 32
Very Important 7 13 30 50
Total 18 33 49 100

Table -3 shows observed values of responses collected from the respondents regarding the
importance of brand while buying a mobile phone and satisfaction of the mobile phone.

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Table-4

Satisfaction
Dissatisfied Satisfied Very satisfied
Least Important 3.78 6.93 10.29
Importance of Brand
Important 7.74 14.19 21.07
Very Important 6.48 11.88 17.64
p value 0.003848554

Table -4 represents the expected values with the p value of the chi-square, which is 0.003. It
signifies that there is a significant relationship between importance of brand and satisfaction of
the product.

H0: There is no association between importance of quality and satisfaction

H1: There is an association between importance of quality and satisfaction

Table-5

Satisfaction
Dissatisfied Satisfied Very satisfied Total
Least Important 7 9 3 19
Importance of Quality
Important 6 21 27 54
Very Important 5 10 12 27
Total 18 40 42 100

Table -5 shows observed values of responses collected from the respondents regarding the
importance of quality while buying a mobile phone and satisfaction of the mobile phone.

Table-6

Satisfaction
Dissatisfied Satisfied Very satisfied
Least Important 3.78 8.4 8.82
Importance of Quality
Important 7.74 17.2 18.06

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Very Important 6.48 14.4 15.12


p value 0.005585676

Table -6 represents the expected values with the p value of the chi-square, which is 0.005. It
signifies that there is a significant relationship between importance of quality and satisfaction of
the product.

H0: There is no association between importance of feature and satisfaction

H1: There is an association between importance of feature and satisfaction

Table-7

Satisfaction
Very
Dissatisfied Satisfied satisfied Total
Least Important 11 2 7 20
Importance of Feature
Important 6 19 16 41
Very Important 8 14 17 39
Total 25 35 40 100

Table -7 shows observed values of responses collected from the respondents regarding the
importance of feature while buying a mobile phone and satisfaction of the mobile phone.

Table-8

Satisfaction
Dissatisfied Satisfied Very satisfied
Least Important 5.25 7.35 8.4
Importance of Feature
Important 10.75 15.05 17.2
Very Important 9 12.6 14.4
p value 0.006174498

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Table -8 represents the expected values with the p value of the chi-square, which is 0.006. It
signifies that there is a significant relationship between importance of feature and satisfaction of
the product.

CONCLUSION

Smart phone has many functionalities other than contacting different people. Until today, there is
a wide range of brands launching new apps and updates on smart phones. Youngsters today
frequently change their mobile phones according to the new models. Buying smart phones from
famous brands recently is becoming trendy. Not only do youngsters of all ages enjoy buying and
using smart phones. It has been concluded that 55% of respondent give very importance to price
factor when purchase a mobile. 58% of respondent give very importance to Brand factor when
purchase a mobile. 79% of respondent give very importance to quality factor when purchase a
mobile. 81% of respondent give very importance to features when purchase a mobile. We have
here made an attempt ot see whether there is an association between importance of different
factors such as price, brand, quality and features with satisfaction towards the product. Chi-
square analysis is used to analyze the association. It has been found that there is an association
between importance of different factors such as price, brand, quality and features and satisfaction
towards the mobile phone.

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