Professional Documents
Culture Documents
A Project Submitted to
University of Mumbai for partial completion of the degree of
Bachelor of Management Studies
Under the Faculty of Commerce
By
Certificate
This is to certify that Mr. Rishab Anil Jain has worked and duly completed her/his
Project Work for the degree of Bachelor of Management Studies under the
Faculty of Commerce in the subject of
Project Work and his project is entitled,
“ A Study of Consumer Behavior on Purchasing Mobile Phones ”
under my supervision.
I further certify that the entire work has been done by the learner under my guidance and
that no part of it has been submitted previously for any Degree or Diploma of any University.
It is her/ his own work and facts reported by her/his personal findings and
investigations.
Date of submission:
Declaration by learner
I the undersigned Mr. Rishab Anil Jain here by, declare that the work embodied
in this project work titled “ A study of consumer behavior on purchasing
mobiles phones”, forms my own contribution to the research work carried out under
the guidance of Prof. Pradnya Kudav is a result of my own research work and has not
been previously submitted to any other University for any other Degree/ Diploma to
this or any other University.
Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.
I, hereby further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.
Rishab Jain
Certified by
To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me the chance
to do this project.
I would like to thank my Director, Dr. H. J. Bhasin for providing the necessary
facilities required for completion of this project.
I take this opportunity to thank our Coordinator Asst. Prof. Pradeep Singh, for her
moral support and guidance.
I would like to thank my College Library, for having provided various reference
books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported
me throughout my project.
Index
1.INTRODUCTION
The development of mobile phones and technologies has been an innovation and
advancements cropped up due to dynamic changes in consumers’ needs and
preferences. Among these developments, mobile phone devices have had one of the
fastest household adoption rates of any technology in the modern world. Nowadays,
mobile phone handsets have become an integral part of human daily life and personal
communication across the globe. Mobile phones were developed in 1979.
In India it was introduced in 1994. But it became familiar only in the beginning of
2000. Now Mobile phone users are spread all over the world. One fifth of Indians are
using cell phones. It is a very fast point to point communication. It helps one to send
and receive information anytime and anywhere. The effective and efficient usage of
mobile phones largely depends upon the attitude of mobile phone users and growth of
this communication sector depends on the mobile phone service providers. Mobile
phone users meet many problems.
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“ A study of Consumers Behaviour on Purchasing Mobile Phones ”
Consumers are purchasing mobile phones at a remarkable pace and see them as
personal expressions of their lifestyle. The government is also doing their job to fuel
the demand for mobile phones.
Also, the increasing GDP per capita has increased the real disposable income.
Growing young population and changing lifestyles are also the key determinants for
growth of mobile phone industry. So it can Manuscript received August 06, 2019 Dr.
Reena Modi, MBA, PhD (Marketing Management) Associate Professor, Malla Reddy
College of Engineering and Technology, Hyderabad clearly predicted that the mobile
phone market holds an immense opportunity for companies. Social factors such as
(family, groups, roles and status) and personal factors (such as age, occupation,
lifestyle, personality and self-concept) are those characteristics that could influence
the buyer's behavior in making the final decision.
Nowadays cheaper mobile phones are also available in the market. But why do people
buy expensive mobile phones? Price, quality, brand, country of origin, marketing,
sales, word of mouth etc. could be several factors that a consumer may think about
before buying a mobile phone. How much does the brand of mobile phones affect the
buying decision of a customer? As there are various types of mobile phones available
in the market with varying price; what is the difference between them? And how do
they impact the customer buying decision? This research also aims on the marketing
strategy of the mobile phones companies to influence the buying behavior of
customers. These strategies include Promotional campaigns, Tie-Ups with network
carriers etc.This research also aims on the marketing strategy of the mobile phones
companies to influence the buying behavior of customers. These strategies include
Promotional campaigns, Tie-Ups with network carriers etc.
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Price remains the main criteria when buying any consumer electronic device in India,
including a mobile device. The Indian mobile phones phone market mainly depends
upon the price, features, stability and style. Most of the Indians buying mobile phones
are middle income groups and above. As a developing economy, India is a most
suitable place for investment. Strong marketing strategies, established retail outlets,
and customer satisfaction are the tools to succeed in any market. The Indian mobile
phones market is expected to grow as the 3G network coverage is increasing and there
is an increase in demand for mobile phones in 2014.
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.
Figure (1) Indian mobile phones Market Share Q1 2022
Nokia was the undisputed leader of the Indian mobile phone sector, with 54% of total
volume sales in 2009. Nokia benefits from a strong brand image and a reputation for
high quality products. According to industry sources, Nokia has the distinct advantage
of having the strongest retail network, with a presence in almost 90% of retail outlets
selling mobile phones.
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Mobile phones have created new dimensions for business in the Indian market. It is
not only the mobile phones sellers enjoying the business but it also created a new area
for mobile application development companies in India, Internet services providers
and other sectors of life to utilize the mobile phones to gain competitive advantages.
There has been an extreme growth in broadband and Internet service providers
business in the past few years and one of the main reasons for this drastic increase in
their business is the ever increasing use of mobile phones and growth of mobile
phones and mobile applications. In a very short duration a huge number of mobile
phones have been sold that provided an opportunity to businesses to invest in mobile
application development and allowed to introduce new business dimensions in market
space. As it is easy to change settings and make customizations on mobile phones,
therefore there are several programs for mobile phones from different sellers
including Blackberry, Android, iPhone and Microsoft etc. Mobile Application
There are some negative impacts of mobile phones. The major impact of mobile
phones is on the PC market. According to a survey by Compete, a web analytics firm,
a large number of people, almost up to 65%, are using their mobile phones to read
news feeds, post status updates, read & reply to messages and post photos. This shows
that now people are leaving PCs and moving towards mobile phones.
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The Indian smartphone market is an emerging market; there are many smartphone
companies that are targeting India as their market. Some of the major international
companies are Samsung, Apple, Sony, Nokia, Motorola, LG etc. the market share of
international brands are decreasing as local brands like Micromax and Karbonn are
launching smartphones with android operating systems and large screens at very low
price compared to the international brands. For example, Canvas 4 by Micromax is a
smartphone with android 4.3, quad-core processor and has 13MP camera with a 5
inch screen; it was launched at in India below INR 19000 as the smartphones with
same features in international brand like Samsung, Apple or Sony is around INR
40000. The sales of local brands are increasing as Micromax market share was 5.6%
in 2012 and in 2013 it was 22.7%.
One of the fundamental issues in consumer behavior is the way consumers develop,
adapt and use decision-making strategies. Consumer decision making could be
defined as the “behavior patterns of consumers that precede, determine and follow on
the decision process for the acquisition of need satisfying products, ideas or services”.
Consumer decision making has long been of great interest to researchers. Early
decision making studies concentrated on the purchase action. It was only after the
1950’s that modern concepts of marketing were incorporated into studies of consumer
decision making, including a wider range of activities.
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Contemporary research indicates that more activities are involved than the purchase
itself. Many other factors influence the consumer decision making than the final
outcome. Vast numbers of studies have investigated this issue and many models have
been developed accordingly. Models aim to depict the purchase decision-making
process and its influential factors.
Consumer behavior is a wide range of study about the decision making processes that
a consumer makes at the time of making a purchase. “Consumer behavior is the study
of how individuals or groups buy, use and dispose of goods, services, ideas or
experience to satisfy their needs or wants”. In the early stages, consumer behavior
was taken as buyer behavior that reflects the interaction between consumers and
producers at the time of purchase but now marketers recognize consumer behavior as
an ongoing process not only what happens at the time when consumer gives money
and gains some goods or services.
Usually a buyer passes through five stages to reach his buying decision. First the
buyer notices the difference between his current state and ideal state and recognizes
his want and need for something. A need can also be aroused by external stimuli.
He/she starts searching the information for his/her desired product through different
channels like family, friends, advertisement or mass media. After sufficient
information is gathered, the buyer processes the information to evaluate the
alternatives brands in the choice set. Finally he purchases the product which he
assumes to be the best for him. After purchasing the product, the buyer will take
further action to the marketer based on his satisfaction or dissatisfaction. For
purchasing a smartphone a buyer goes to these five stages.
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Culture
Culture is the accumulation of shared meaning, rituals, norms and traditions among
the members of an organization or society. A consumer’s culture determines the
overall priorities he/she attaches to different activities and products. It also determines
the success or failure of specific products and services in the market. A product that
provides benefits consistent with those desired by members of a culture at any point in
time has a much better chance of attaining acceptance in the marketplace. Culture can
be considered as a lifestyle which is then passed on from one generation to the other
generation. Culture is not static.
It is continually evolving, synthesizing old ideas with new ones. As a result of the
historic factor that Iranian plateau, Central Asia, Arabia, Afghanistan and the West
have invaded India thousands of years ago as a result Indian people and culture have
been influenced extremely and produced a remarkable ethnic and
cultural fusion. 4 main languages are spoken in the country. English is the most vital
language for national, political and commercial communication. Although 81% of the
people are of Hindu religion, India is the home of Muslims (1% of people) , one of the
world’s largest Muslim populations. The population also includes Christians, Sikhs,
Buddhists, Sikhs and Parsis.
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Demographic
An age cohort consists of people of similar ages who have undergone similar
experience. They share many common memories about culture, heroes, importance of
historic events and so on.
Marketers often target products or services to one or more specific age cohorts. They
recognize that the same offering will probably not appeal to people of different ages,
nor will the language and image they use to reach them. Important age cohort includes
teenagers, 18-29 year olds, baby boomers and the elderly. Teenagers are making
transition from childhood to adulthood, and their self-concept tends to be unstable.
They are receptive that help them
to be accepted and enable them to assert their independence. Baby boomers are the
most powerful age segment because of their size and economic clout. As this group
has aged their interests have changed and marketing priorities have changed as well.
Total population of India is 1.2 billion and the age structure from age 15 to 54 consists
of 69% of total population in which approx. 376 million are male and approx. 357
million are female. As for the smartphone market, it is a very huge demographic.
Social Status
Different products and stores are perceived by consumers to be appropriate for certain
social classes (Munson and Spivey, 1981). Working class consumers tend to evaluate
products in more utilitarian terms such as sturdiness or comfort rather than style or
fashion. They are less likely to experiment with new products or styles.
Each individual’s social status or personality also influences the consumption
behavior. Personality can be defined as a set of unique human psychological traits
such as confidence, autonomy, adaptability and defensiveness that leads to regular and
continuous responses to external stimuli. A brand also has personality, a Brand
personality can be considered as the individual set of traits that we can attribute to a
certain brand. Buyers are more likely to choose brands that reflect their own. Usually,
such possessions would be more obvious for public products than for private products
available in the market.
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Reference Groups
A reference group is an actual or imaginary individual or group conceived of having
significant relevance upon an individual's evaluations, aspiration or behavior.
Reference group influences consumers in three ways. These influences are
informational, utilitarian, and value expressive.
Although two or more people are normally required to form a group, the term
reference group is often used a bit more loosely to describe any
external influence that provides social cues. Reference groups that affect the
consumption can include parents, fellow enthusiasts, team members, classmates etc. A
reference group can take the form of a large, formal organization that has a recognised
structure, regular meeting times and officers, or it can be small and informal, such as a
group of friends or students living in hostels. In the smartphone market, companies
tend to have more control over their influence on formal groups because they are
more easily identifiable and accessible.
Family
Family is considered as the most important consumer consumption organization in
society, and members of a family constitute the most influential primary reference
group. Family members play certain roles in the decision-making process, namely the
information gatherer who has the influence on how and where information is
gathered, the influencer who has the influence on different brands are evaluated, the
decision maker who has the influence on which product will be bought, the
purchasing agent who makes the purchase, and the user of the product..
The family of orientation consists of parents and children (single-parent families and
childless families are included).
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Perception
Perception refers to the many different ways that an individual can sense external
information, select particular sources of information and how they incorporate this
information. This means that the people who have the same motivation and are in the
same situation may not act the same because they perceive the situation differently.
People perceive the same situation differently because they interpret and organize
information uniquely.
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Learning
Learning induces changes in consumers’ behavior arising from experience. Actually
most human behavior is learned. Learning is formed through the interplay of drives,
stimuli, cues, responses, and reinforcement. A drive is a strong internal stimulus that
propels actual action. Cues such as advertising are minor stimuli, which determine
when, where, and how a person responds. Response is an effort that people make to
satisfy the drive by obtaining a product. Reinforcement happens once a consumer has
bought the product and is satisfied after using it.
Personality
Personality describes a person’s disposition, helps show why people are different, and
encompasses a person’s unique traits. The “Big Five” personality traits that
psychologists discuss frequently include openness or how open you are to new
experiences, conscientiousness or how diligent you are, extraversion or how outgoing
or shy you are, agreeableness or how easy you are to get along with, and neuroticism
or how prone you are to negative mental states. Marketers have had better luck
linking people’s self-concepts to their buying behavior. Marketing researchers believe
people buy products to enhance how they feel about themselves to get themselves
closer to their ideal selves.
Attitude
“Attitudes are learned predispositions to respond to an object, or class object, in a
consistently favorable or unfavorable way”. Attitudes are “mental positions” or
emotional feelings, favorable or unfavorable evaluations, and action tendencies
people have about products, services, companies, ideas, issues, or institutions.
Attitudes tend to be enduring, and because they are based on people’s values and
beliefs, they are hard to change. Smartphone companies want people to have positive
feelings about their offerings.
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According to the model, all the external influence and internal influence on
consumers result in their social concept and lifestyle choice. Lifestyle of a consumer
refers to a pattern of consumption reflecting their choices as how they spend their
time and money; it also refers to the attitudes and values attached to these behavioral
patterns (Solomon, 2006). According to Kotler et al, “Lifestyle is a person’s pattern of
living as expressed in his or her activities, interests and opinions”. Lifestyle captures a
person’s whole pattern of acting or networking in the world more than profiling a
person’s social class or personality. (Kotler et al, 2009). Lifestyle and social concepts
of consumers influenced by their external and internal influence result in the decision
making process for the product based on need and desire.
Problem Recognition
A need isn’t necessarily something that a person wants but can be something that a
person must have in order to facilitate their way of life. This stage of the model is
centered on what drives consumers to start shopping for products. Problem
recognition occurs whenever the consumer sees a significant difference between his
or her current state of affair and some desired or ideal state. The consumer perceives
there is a problem to be solved, which may be large or small, simple or complex. A
person may be tempted to acquire that product by advertisement or by other social or
physical medium, which triggers the thought about purchasing. Need recognition can
occur in several ways. The quality of a person's actual state can be diminished simply
by running out of Product, by buying a product that turns out not to satisfy needs
adequately, or by creating new needs. In the case of smartphones, consumers may
want to upgrade their smartphone to enjoy new features or to buy a smartphone for
their daily work needs or to connect to social networks or for his/her social status.
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Information Research
Information search usually starts with an “internal search” and customers will identify
products that they are already aware of known as the evoked set. The “external
search” aspect of information search relates to information obtained from external
sources, which can include packaging and marketing communications. Once the
problem has been recognised, consumers will need adequate information to resolve it.
Information search is the process by which the consumer surveys his or her
environment for appropriate data to make a reasonable decision. A consumer may
recognise a need and then search the marketplace for specific information related to
the product. Information sources can be roughly broken down into two kinds:
internal and external. Internal search is the use of a memory band to assemble the
information about the different product alternatives whereas External search is the
information obtained from advertisements, friends etc. There are many Information
sources by which a person can get the information like friends, family, neighbors,
websites, trader, and display in shops, promotions and mass media. In the case of
smartphones Information about the product is collected via many sources like, Friend
and family, online review of the product etc.
Evaluation of alternatives
The part of the decision making process refers to when a customer refers back to the
evoked set‟ to evaluate whether or not another product can help solve their problem”.
In evaluation of stage, the product alternatives that are considered comprise the
individual’s evoked set. Consumers will improve their own evaluation standard based
on the information they acquired from information search. Members of the evoked set
usually share some characteristics; they are categorized similarly. The way products
are mentally grouped influences which alternatives will be considered, and some
brands are more strongly associated with these categories than are others. In the case
of smartphones; Individual analyze many alternatives before buying a smartphone.
There are various brands of smartphones as well as various price categories which
have different features and specifications; the basis of categorisation for an individual
is by price range or by features and brand.
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Purchase decision
The point in the process is when a customer makes up his/her mind on what product
his/her wishes to purchase, ultimately this is the „end goal‟. In the stage of purchase
decision, after evaluating the alternatives and selecting the product according to the
desire the consumer solves his/her problems and satisfies his/her needs and buys the
product. This purchase decision is influenced by many factors like reference groups,
acquaintances, friends and family. It’s also possible that if the consumer has a positive
toward any certain brand then the consumer might intend to buy the product of that
brand only. In the case of smartphones; consumer make their purchase decision by
analysing the newly introduced smartphone in the market. Consumer rarely buys old
models in the market. Consumer prefers new models because of new technology and
new features. For the consumer who loyal to the brand always goes back to the brand
as it satisfy his/her demand. For example: Apple, Sony and Samsung.
Post-purchase Behavior
Purchase evaluation as the point in the process where the customer looks to evaluate if
the purchase met expectations, exceeded expectations or left them disappointed. After
the purchase of the product, the consumer evaluates and analyzes the product from the
using experience and its performance.
If performance does not meet the expectations of the consumer then the consumer
gets disappointed and try to search for way to minimize the dissatisfaction or replace
the product; if the product meets expectations of the, then the consumers is satisfied
and continue using the product happily; if the product go beyond expectations of the
consumer then the consumer is delighted and the chance of repurchase of that product
or the product of that brand will be higher. The consumer will also talk and share
about the product to others positively. In the case of smartphone; the consumer after
buying the smartphone uses it and analyzes its functions and with a proper use they
analyze if the product is satisfying their demand or not. Consumers also rate the
smartphone on the websites and also post comments about their experience in using
the product. If they like it the result is positive if not the reviews are negative and this
helps the other customers in buying the products.
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In its simplest form, a smartphone is a mobile phone with built-in, add-on applications
and Internet (3G network) access. However, because of its capability to handle a great
amount of applications and functions at the same time - the concept of a smartphone
slowly transitioned into definitions of a handheld computer. The great differences
between the available brands and models on the market today are the operating
systems platform. The smartphone becomes more than a device for sending and
receiving text messages and calls as it consists of various ways to interact with other
users in a more personalized manner, compared to the traditional mobile phones.
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While an old-style feature phone includes some basic software such as an address
book and games, a smartphone has the ability of further performance. One of the
significant differences between a feature phone and a smartphone is that a smartphone
can install third-party applications from an applications store. Users are able to
download and install applications on their operating systems, such as time schedules,
navigators, personal finance managers and games. Generally, a smartphone is based
on a certain operating system that allows phone users to install applications on it.
Systems include Apple’s iOS, Google’s Android, Microsoft’s
Windows Phone etc. The core applications of smartphones consist of cellular voice,
data, and PIM (personal information management) applications such as calendars,
contact managers, tasks, notes, e-mail. These applications must work together
seamlessly and with the features of the phone. For example, pictures taken with the
camera can be linked to the address book so that users can see who is calling.
Navigation software uses addresses stored in the address book in combination with
GPS data to facilitate data entry. Email clients are integrated with address books.
In recent years there has been rapid growth in the adoption of smartphones that has
attracted increasing attention to consumer buying behavior. Smartphones provide
marketers with the opportunity to develop smartphones that will create a unique
content of interactive experience between consumers and a brand, thus engaging
consumers more effectively. Currently smartphone devices have a central role in the
mobile communications landscape, and growth in market share is predicted to be
strong throughout the next five years.
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Customer decision making varies with the nature of the product or the type of buying
decision. Assael distinguished four types of buying behavior based on the degree of
customer’s involvement and the degree differences between the brands.
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Hence, among different types of buying behavior complex buying behavior is seen in
context to mobile phones.
1.9.Market Players
There are several smartphone companies present in the market and some of them are
Samsung, Apple,Oneplus,Vivo,OPPO,Xiaomi(Redmi),Motorola,etc.
Samsung
It is the leading cell phone company in India and has the biggest market share
of 24 percent there. This had been slightly declined by the introduction of
Xiaomi,OPPO and OnePlus but then also it held up with its leading position in
the Indian market. The operating system that Samsung smart phones support is
Android. It is the most appreciated and trusted brand in the country of our
concern, India.
Apple
Apple, which is one of the leading and popular brands of computers worldwide and is
also named as a computer giant, also introduced some of its smart phones. It is known
for its smoothest experience as it uses the IOS operating system. Apple was the first
brand to introduce the touch screen IPhone which combines the characteristics of an
IPod with that of a phone. This IPhone did not run successfully in India because of its
complicated use of the touch screen feature.
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OnePlus
This is mainly preferred for its durability , effective camera quality and octa core
processors.the only drawback of this in its recent years was poor marketing .
Vivo
This smartphone is based on the Android operating system which proved to be the
most user friendly system. This brand is very popular for its low priced smartphones.
These smartphones do not have a good life span .With price ranges being in 10k to
15k rupees, the life span they offer is approximately 12 to 15 months only.
OPPO
These became popular only when they started sponsoring the Indian Premier League
.These work on Android OS. It provides every sector in the society with a phone they
can afford with minimal features required in that price range.
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The first level is called the core benefit, which is the service or benefit that a
consumer is really buying; the second level is the basic product. At this level, the
marketer turns the core benefit into basic products; at the third level, the marketer
introduces an expected product to the market, which is a set attributes and conditions
that consumers normally expect when they buy the product; at the fourth level, the
marketer provides an augmented product that exceeds buyers’ expectation. This is
also the level where brand positioning and competition often take place; the fifth level
stands the potential product, which includes all the possible augmentations and
transformations of products or potential offering in the future. A potential product
might be an accessory of a current product. This is the level where companies look for
new ways to satisfy customers and differentiate offering.
In the case of smartphone market, the core value for most smartphone buyers could be
the convenience and the timeliness of communication, including multimedia
communication; at the second level, the basic product might be a concrete,
communicable, and multi-function smartphone product; at the third level, smartphone
users expect that the smartphone is useful and quality, for example, performance,
camera, and screen pixels; at the fourth level, the augmented product can be the
pleasing design and diversity. At the fifth level, the potential product is possibly the
voice control system. level where companies look for new way to satisfy customers
and differentiate offering.
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According to the study of the Market Intelligence & Consulting Institute, the major
determinants of cell phone purchasing include branding, price, and appearance.
Therefore, in this study branding, price, and appearance are subsumed into the
independent variables.
1.11.1. Branding
Keller (1993) suggested that branding could be divided into two parts- brand
awareness and brand image. Brand awareness refers to the ability of customers to
consider a brand under different conditions. On the other hand, brand image refers to
perceptions about a brand as reflected by the brand associations held in consumers’
memory. Furthermore, consumers often try to lower their risk in the purchase process
by choosing the product brand that they are familiar with because a well known brand
gives people the perception of being safe. Alba and Hutchinson (1987) implied that
branding is the experience and the frequency of advertising that consumers perceive
through advertisement, mass media, or other kinds of sources including commercial
sources, public sources, and individual sources.
1.11.2. Appearance
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1.11.3. Price
Scitovsky (1945) indicated that the price of a product is related to product costs,
which is the reason that people consider price as a signal that can represent the quality
of a product. When the price of the product is higher, at a certain point, the quality of
the product is also better, which attracts people and influences people’s buying
decisions. On the other hand, price and need are a negative correlation. When the
utility of products is similar, consumers will choose the solution with the lower price
to maximize the utility. Price is considered as an essential role of consumer behavior.
Mobile phone strategies refers to the marketing and business plans companies use to
sell and promote mobile phones to consumers.
Here are some key strategies that companies adopt:
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Companies use a variety of strategies to sell and promote mobile phones. The success
of a mobile phone strategy depends on a variety of factors, including market demand,
competition, and the company's overall business goals.
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Here are mobile companies and their marketing mix that they use in the market:
1. Samsung
2. Apple
3. Oppo
4. Oneplus
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Product strategy
Being a leading electronic brand, Samsung has to keep up with the dynamic industrial
changes in order to meet customer satisfaction. Ever-changing innovations, newer
features, and improved performance can help give tough competition to its
competitors. Samsung generates revenue by selling smartphones, home appliances,
sound devices, etc, excelling in all areas of product diversification.
Price strategy
samsung is a leader in smartphones and also dominating the home appliances area
uses 2 types of pricing strategies as follows:
Place strategy
Samsung sells to retailers and service providers directly. As a result of this strategy,
only service dealers are responsible for corporate sales. The strength of this company
lies in its distribution system.Samsung’s products are likewise distributed by a single
distribution company in one location, which then distributes them to other locations.
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Promotion strategy
Promotion is an important part of the company’s marketing mix. Advertising,
according to Samsung, is the most effective kind of marketing for attracting new
customers and positioning the brand.Samsung uses print media, social media
platforms, and digital media to market new goods. To take advantage of celebrities’
large followings, the brand has invited several celebrities to serve as brand
ambassadors and market the product that proves to be very efficient.
Product strategy
Apple products are innovative because they are designed after thorough customer
research. Apple likes to think I know what customers want and for the most part they
do. Products of Apple come from the luxury category, which are for high standard
people.
Price strategy
Apple uses premium pricing for their products. Because of the innovation and
technology in their products customers are fine with paying a higher price compared
to some other brands. Apple typically doesn’t have sales on their products and the
price is usually standard and doesn’t drop until a new model is released. The premium
pricing strategy attracts middle to upper-class consumers and helps maintain Apple’s
high-end image.
Place strategy
Apple has strict guidelines as to who is allowed to sell their products. To ensure
control over distribution, Apple authorizes certain stores to sell their products. This
creates exclusivity which might limit reach, however it also reinforces the high-end
image of their products. Because of this exclusivity, Apple has lower distribution
costs and is able to invest in other areas such as product research.
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Promotion strategy
Apple promotes their products through commercials and print ads, forcing on how
their products are different from competitors. Commercial ads run when backgrounds
contrast the style black of their products and logo, or an inverse with black
background and white text with a white logo.
Product strategy
Oppo's primary target audience has been the young consumers for whom Oppo has
built super slim handsets with some very attractive features to suit their needs and
requirements such as rotating cameras, dual selfie etc. to improve the ‘selfie’ taking
experience for them. They have tried to differentiate their smartphone from the rest of
the available products from other competitors by communicating through various
channels that they are the ‘selfie expert’ in the market. Further they believe in
consumer research and have made improvements in the battery as well to tackle a
major issue faced by the consumers of fast battery drains from heavy usage by
introducing flash charging technologies.
Price strategy
Oppo products are present to cater to various customer requirements from high end to
low end segments.Even though it is charging medium to high price for its products it
is still keeping the prices of its smartphone products lower as compared to its
competitors such as Samsung, LG, Apple etc to attract the consumers towards its
products by offering good quality products differentiated in terms of camera quality at
an affordable price. Thus, in reality, it is using a penetration pricing strategy in its
marketing mix for its products to get a larger market share.
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Place strategy
Oppo smartphones are present in more than 20 markets and are mainly marketed in
south Asian countries such as China, Myanmar, Philippines, Malaysia, Vietnam,
Thailand, India, Sri Lanka, Pakistan, Bangladesh, Indonesia etc. with products
designed specifically for each region’s needs. Oppo does not rely on traditional retail
stores to reach its consumers. Rather, it has experience stores in various locations in a
country where potential customers can touch and feel the product and its features with
several other in-house services provided at the experience stores such as phone
charging, Wi-Fi, software upgrade, applications downloads. Majority of its sales are
through e-commerce websites.
Promotion strategy
Oppo focuses extensively on promoting itself as a global brand and takes its public
relations very seriously and has adopted a geo-localized strategy for its brand
promotion and uses local talents for celebrity endorsements of its products. Oppo had
acquired rights to sponsor the Indian national cricket team as their main sponsor.
Oppo is also an official partner of the Spanish football club- FC Barcelona. Further,
since it uses a multi-domestic strategy it uses different marketing communication
methods according to various regions. It has hired actors and celebrities as their brand
ambassadors for promoting their products across geographies.
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The modern day telephone technology started when three engineers from BELL Labs,
W. Rae Philip and Douglas H. Ring introduced the idea of base stations or cell towers
and developed hexagonal cells for mobile phones in 1947. These cell towers could
transmit and receive signals in three directions instead of two as against in the case of
two way radios. Porter, an engineer at Bell Labs, further suggested the positioning of
cell towers at corners of hexagons instead of center. Later this idea of base stations
became a turning point in the history of cell phones. Even with continuous
refinements in the mobile technology, the then user had to stay within one cell area as
the base stations of the respective cell area were unable to transfer the cellular phone
calls from one base station to another. Therefore, when users made a phone call, they
were unable to continue their call after they crossed a set range. But the call handoff
system developed by Amos Edward Joel (an engineer at BELL Labs) in 1970
prevented the dropping of phone calls while moving from one area to another. With
the advent of the Global System for mobile communications the effective use of radio
spectrum became possible. Resultantly, there were improvements in voice quality,
international roaming facilities along with compatibility with ISDN systems. It also
provided coverage to the remote areas that was not effective with ISDN, GSM and
cellular phones. Satellite phones were introduced whose base stations were built in the
geostationary satellites. Thus no place on the earth was now untouched by the cell
phones. The development of mobile phones and mobile technology can be defined as
generations of cell phones that can be described as follows:
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“ A study of Consumers Behaviour on Purchasing Mobile Phones ”
The First Generation (1G) of cell phones started in 1983 by showcasing the first
portable cellular phone to the world named the Motorola DynaTAC 8000X. It was
approved by the Federal Communications Commission (FCC) in the United States.
Over the decades Motorola had developed the technology for cellular phones as a
result of whichDynaTAC800X took 15 years to be launched into the market at a
heavy cost of over 100 million dollars. It was a lightweight cell phone as compared to
contemporary phones and weighed only about 28 ounces. Its dimensions were 13
inches x 1.75 inches x 3.5 inches and it was often called the ‘Brick’ for its shape.
Major credit of its development goes to Dr. Martin Cooper of Motorola.
The first commercial automated cellular network was launched in Japan by NTT in
1979 Two years later in 1981 the Nordic Mobile Telephone (NMT) system was
simultaneously introduced in Denmark, Finland, Norway and Sweden, followed by
other countries in the early to mid-1980s. These first generation (1G) systems
supported far more than simultaneous calls, but they were still based on analog
technology.
The Second Generation (2G) cell phone was developed in Finland in 1993. It was in
this year that the first SMS text message was sent and cell phones began to support
data services. The Second Generation (2G) cell phones were supported by digital
circuit switched transmissions. Quick network signals, lowered number of dropped
calls and increased call quality were some of its distinguishing characteristics. 2G
cellular phones were truly portable and had a small battery. Advances in battery and
computer chip technology made 2G cell phones much smaller and lighter than their
predecessors.
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The two main requirements that most 3G networks and cell phone providers follow
are: 2 Megabytes of maximum data rate for indoor and 384 kilobytes for outdoor use.
3G mobile phones usually include innovations to receive much more than phone calls.
For instance, along with sending SMS text 3G phones also offer email and Internet
access streaming radio, TV, video calling as well as Wi-fi.
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4G LTE
LTE is nowadays a buzzword. It is a version of 4G that is fast becoming the latest
advertised technology. LTE, which stands for ‘Long Term Evolution’, is the fastest,
most consistent variety of 4G that provides a very technical process for high-speed
data for cell phones and other cellular devices. It is most close to the technical
standards set by U.N. In the U.S, It has primarily been deployed by Verizon, which
offers it in over 200 markets.
4G VoLTE
VoLTE stands for ‘Voice Over LTE’. It is a HD voice calling Service over 4G LTE
rather than 2G/3G network VoLTE networks support both voice and data at the same
time, without hampering the other. Volte allows to send voice and data over the
network simultaneously without affecting the quality of voice. Whereas, the
traditional LTE networks may or may not support data and voice together, or may
affect the quality of the voice call.
The next major phase of mobile telecommunication standards beyond the Current
4G/IMT-Advanced standards is 5G. 5G network requirements as defined by Next
Generation Mobile Networks Alliance (NGMN Alliance) are as follows:
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With the enormous increase in the usage of cell phones, the effect of radiation emitted
from them on human health is a subject of recent diagnosis and research. Mobile
phones use electromagnetic radiation in the microwave range 800 – 1800 MHz which
is transmitted in all directions in the form of waves. These waves can be absorbed and
reflected by surrounding objects before they reach the nearest cell tower. For example,
while in use when the phone is placed next to the head, a significant portion (over half
in many cases) of the emitted energy can be absorbed into the head and body.
Although a significant number of individual, epidemiological and experimental
research studies suggest no definite causative relationship between exposure to cell
phones and harmful biological effects in humans are inconclusive. Some recent
studies have found an association between cell phone use and certain kinds of brain
and salivary gland tumors. Lennart Hardell and other authors of a 2009 meta-analysis
of 11 studies from peer-reviewed journals concluded that cell phone usage for at least
ten years "approximately doubles the risk of being diagnosed with a brain tumor on
the same ('ipsilateral') side of the head as that preferred for cell phone use."
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Medical Journal questioned these estimates, because the increase in brain cancers has
not paralleled the increase in cell phone use.
In woke of above studies the most stringent international norms that limits the SAR
value (specific absorption rate - a measure of the rate that body tissue absorbs
radiation energy during cell phone use) of cell phone handsets have been adopted in
India in order to comply with the guidelines issued by DoT (Department of
Telecommunications). Regulations notified by the Government of India requires for
every mobile phone to display the SAR value of the model so the consumers can
make an informed decision before each purchase.From 1st Sept.2013,only the mobile
handsets or cell phones with revised SAR value of 1.6W/kg averaged over 1 gram of
human tissue are permitted to be manufactured or imported in India. The limits for
SAR are determined by the strength of the electromagnetic field necessary to reach
the body in average 30 minutes when the cell phone is held at the ear. This limit
ensures that the equipment like the cell phone is operating within the prescribed
parameters. Even if there are differences in SAR levels among cell phone models, all
of them must meet RF exposure guidelines. Compliance with these norms has made
Indian telecom regulations 10 times more rigid than they are in over the 90% of the
countries across the globe.
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Many studies have been conducted that show around 40-50% of the environmental
impact of a cell phone occurs when the printed wiring boards and integrated circuits
are manufactured. A user replaces their cell phone on an average every 11 to 18
months, these discarded cell phones then add to environmental issues and electronic
waste following manner: .
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● Low power chargers – Most cell phones are nowhere close to being
green — their chargers are energy inefficient, they contain
hazardous chemicals, and they are not designed for upgrading or
easy recycling. On the other hand, low power chargers consume
less power in charging a mobile phone thereby saving energy. This
signifies that they do not require to be charged as considerably, so
chargers are not left on for prolonged overfilled charging thus
wasting energy.
● Solar powered cell phone – This Cell Phone is fitted with a solar
rechargeable battery. Power is generated through solar batteries.
Standardized solar chargers are energy efficient and eco-friendly.
Price: Prices for such cell phone may be a little higher than conventional
alternatives due extensive research and discovering and implementing
costlier green processes. But target groups like for example LOHAS
(Lifestyles of Health Sustainability - customers with a sense of
environment and social responsibility) are willing to pay extra for green
products. Companies gradually attempt to offer cell phones at an
affordable price to increase adoption rate in all target groups. Cellular
companies may offer certified refurbished phone at low prices.
Companies like TechForward, NextWorth, Gazelle, Recellular of US pay
cash in return for used cell phones. They refurbish the cell phones and
resell in the refurbished market. The cell phones which cannot be
refurbished are recycled.
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2. RESEARCH METHODOLOGY
Cell phone market is characterized by rapid technological change. The industry is also
witnessing strong competition due to a large number of Chinese players entering the
Indian market and posing threat to both national and other international brands. All
these interventions impede consumers' understanding and consequently affect their
customer behavior and decision making process. Understanding the actual changing
pattern of customer behavior with respect to the different market segments is of great
importance to cell phone marketers, especially in designing marketing strategies and
tactics. Hence, there is a genuine need to identify the factors that influence the buying
behavior of customers in different market segments.
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With the help of primary and secondary data, Information was collected.
Primary data : It is collected through a questionnaire method and I used Google
Forms for collecting this data sample, sample size is 80 participants of the age group
of 18 to 50.
Secondary data : It is collected through research papers, various reference books and
websites.
2.5. Limitations
Every work has its own limitations. This study was also constrained with
limitations.
● Respondents were reluctant to give responses openly and they were skeptical
about giving personal information fearing that such information may be used
against them.
● Since the results and conclusions were based on the response or information
provided by the respondents hence ‘response error’ might have crept in.
Similarly, sampling errors like ‘drop in’ and 'drop out’ errors might have
persisted.
● Owing to the limited size of the sample, study could not be taken for inductive
generalization.
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3. LITERATURE REVIEW
Consumers are individuals and households that buy the firm's product for personal
consumption (Kotler, 2004). It often used to describe two different kinds of
consuming entities: the personal consumers and the organizational consumers
(Krishna, 2010). The activities these consumers undertake when obtaining,
consuming, and disposing of products and a service is known as consumer behavior.
Consumer behavior involves studying how people buy, what they buy, when they buy
and why they buy. When a consumer wants to make the purchase decision, they will
pass through the process through recognition, search information, evaluation,
purchase, feedback (Blackwell, Miniard, and Engel, 2006). At last, the consumer will
choose a product or brand to consume from various choices in the market. However,
these factors affecting the buying behavior of consumers vary due to diverse
environmental and individual determinants.
Consumer buying behavior is influenced by two major factors. These factors are
individual and environmental. The major categories of individual factors affecting
consumer behavior are demographics, consumer Knowledge, perception, learning,
motivation, personality, beliefs, attitudes and lifestyles. The second category of
factors is environmental factors. Environmental factors represent those items outside
of the individual that affect the individual consumer’s decision making process. These
factors include culture, social class, reference group, family and household. The
above-mentioned factors are the major determinants behind the decision of consumers
to opt for a given good or service (Blackwell, Miniard, and Engel, 2006).
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According to Karjaluoto et al. (2005), price, brand, interface, and properties tend to
have the most influential factors affecting the actual choice amongst mobile phone
brands. Ling, Hwang and Salvendy (2007) surveyed college students to identify their
preference of their current mobile phone. The results of their survey indicated that the
physical appearance, size and menu organization of the mobile phones are the most
determinant factors affecting the choice of mobile phones.
Mack and Sharples (2009) showed that usability is the most important determinant of
mobile choice; other attributes particularly features, aesthetics and cost are other
factors that have implication on the choice of mobile phone brand. In another study
conducted by Kumar (2012), price, quality and style functions as the most influential
factors affecting the choice of mobile phones. Moreover, Saif et al, 2012 selected four
important factors i.e. price, size/shape, new technology features and brand name and
analyzed their impact on consumers’ buying behavior. According to his result,
consumer’s value new technology features as the most important variable that
influences consumers’ to go for a new mobile phone purchase decision.
Eric and Bright (2008) conducted a study on factors that determine the choice of
brands of mobile phone in Ghana specifically Kumasi Metropolis. Accordingly, the
results of the study showed that the first most important factor is reliable quality of
the mobile phone brand and the other factor is user-friendliness of the brand of the
mobile phone. Likewise, Das (2012) conducted an empirical research based on a
survey method on factors influencing buying behavior of youth consumers towards
mobile handsets in coastal districts of Odisha located in India. According to the study,
a handset of reputed brand, smart appearance, and with advanced value added
features, pleasurability and usability; is the choice of young consumers; females in
gender-group, post-graduates in level of education-group, students in occupational
group, urban residents in geographical area group plays most prominent role in
buying decision of a mobile handset.
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“ A study of Consumers Behaviour on Purchasing Mobile Phones ”
In the above pie diagram we can see that the people using different brands of mobile
are almost the same to each other, except Samsung and Mi here we can see little high
percentages. Samsung users are 21.3% and Mi users are 18.8%.
This pie shows how much people are satisfied with their current mobile phone brand.
It shows that 5% of people are unsatisfied with their current mobile brand and 77.5%
of people are fully satisfied with their current mobile brand. Now the remaining
17.5% people are not sure about their satisfaction from their mobile brand.
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48.3% of people use their mobile for 2-3 years and then change it, 32.5% of people
use it for less than 1 year, we can say that here switching habit is high, 6.3% peoples
use their mobile for 5 years and above it, here we can say that there switching habit is
low.
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As the online gaming, ott movies all this is growing we can see that most of the
peoples use there mobile phone for Entertainment, we can see in the pie that 37.5%
peoples go for Entertainment, second we can see it is used for study it is 23.8% and it
is due to covid 19 the use mobile phone is increased for studies purpose. 21.8%
peoples use mobile for the chats and call that is basic use of it and ramining 17.5% are
use for work they are peoples who go to office and job.
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“ A study of Consumers Behaviour on Purchasing Mobile Phones ”
As we can see that 37.5% are sure about switching from their current mobile brand
to another brand with more features, 21.3% are staying with the same brand and
37.5% are not sure about it, they didn’t think about switching but they can.
This pie diagram shows the switching level of the mobile brand among
customers. We can divide it into three types that is low level that is 31.3% it
show as that this percent of customers are low level switcher they use there
mobile brand for long run, next 55% of customers are moderate level switcher
they switch the brand in like 3-4 years, and the ramining 13.7% are high level
of switcher, this type of customers switch to another very quickly.
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In this we asked, "Will the customers go for purchasing the same brand in
future also or they will change so, we got that 53.8% customers are not sure
about the future plan maybe they will change or maybe they will change.
32.5% customers are going to buy the same brand next time also and 13.8%
customers are going to change to another.
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We take the survey that shows what amount the customers are willing to pay
for purchasing the mobile. Here we can see that 28.7% peoples are willing to
pay 15000 - 25000 rupees, 22.5% are people who are willing to pay 25000 -
35000 rupees, 21.2% customers are willing to pay 10,000 - 15000 rupees, 20%
customers are willing to pay more than 30,00, and the 7.5% are in the line of
5000 - 10000 rupees on
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Here we are finding what influences the customer the most, friends or family.
In this diagram we can see that 10% of people think that friends and family are
strongly influenced and 13.7% think that they are strongly influenced. For 80%
peoples friends and family are influential and for 16.3% they are non
influential at all
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This diagram shows how much a brand is important in customers life. It shows
that for 77.5% of people the brand is really important and they always go for a
brand whenever they make a purchase. The remaining 22.5% of people say that
for them brand is fairly important or not important at all.
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Because of the growth of the internet most of the people are shopping online,
our diagram also shows that 42.5% peoples use online stores for making
purchases and the remaining 57.5% peoples go to local stores near by them or
stores like Croma and Vijay sales.
We are finding that customers are satisfied with their mobile brand they are
using right now and we found that 13.7% of people are not satisfied, 36.3% of
people are satisfied but not fully. 50% of people are satisfied with their mobile
brand, maybe they are getting right after sales service or other benefits.
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We asked people some questions about post purchase satisfaction and agreed or
disagreed with these questions. For the First question we asked, does your mobile
fulfill your needs ,so can see that 72 people agree and 8 people disagree. The second
question asks that it matches your status, so here 60 respondents agree and 20
disagree. Fourth question is does your mobile fits in your habit of use in that 62
peoples agree with this question and 18 peoples disagree. In the last question we
asked, "Does your mobile give you value for money, so 66 people agree and 14
people disagree. The peoples who are disagree with all the questions are one who are
not satisfy with their current mobile brand, maybe they want switch and go to the
better brand.
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Figure (21)
In this survey we asked people some questions about the environment and health
issues of mobile phones and whether they are aware of these issues or not. From the
above graph we say that most of the people are aware of all the issues of mobile
phones related to health and environment. and some of them are unaware of these
issues. Maybe the people who are unaware are not connected with mobile brands
much or not following the news related to it.
Figure (22)
I asked people that do they get any special offers and discounts from there mobile
brand, 43.8% peoples are getting this special offers, 26.2% peoples are not getting and
the 30% peoples says they get the offers but not all times, only sometimes.
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From the study, we can conclude that consumers are rational beings who make
informed decisions while purchasing mobile phones. They consider various factors,
such as the product's price, brand, features, design, and after-sales services, to make
an informed decision. Moreover, consumers are influenced by friends, family, quality
and social media while making a purchase decision.
Based on our study, we can suggest various strategies that can be adopted by mobile
phone manufacturers to influence consumer behavior and improve their sales. One of
the essential strategies is to focus on the product's design and features. Mobile phone
manufacturers should continually innovate and develop new and improved features
that appeal to consumers' needs and preferences. This can help manufacturers
differentiate their products from their competitors and create a unique value
proposition.
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Lastly, manufacturers should also consider the situational factors that influence
consumer behavior. For instance, they should offer special discounts and promotions
during festive seasons to capitalize on the festive mood and increase sales. Moreover,
manufacturers should also offer different payment options, such as EMIs and credit
card payments, to make their products more accessible to consumers.
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6. Bibliography
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cbb615c9c258.pdf
https://pdfs.semanticscholar.org/8ceb/e9c268f51fa9dbdf4dab1bd8
cbb615c9c258.pdf
https://prezi.com/p/vizhyl9e9fc9/the-effect-of-mobile-phone-in-stud
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https://www.coursehero.com/file/137863457/final-summer-projectd
ocxdocx/
https://www.studypool.com/documents/80023/mobile-phones-have
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https://www.ipl.org/essay/Smartphone-Marketing-Strategy-FKQ32
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https://www.semanticscholar.org/paper/Empirical-Study-on-Buying-
Behaviour-of-Mobile-Phone-Basha-Lakshmanna/f7810a9a2ec1f75
2baa9c3b9528195e6e6e11c21
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atterns-in-smartphone-market-in-india/
https://www.coursehero.com/file/23718466/project/
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7. Appendix
1)Genders
● Male
● Female
2)Age?
3)Occupation?
● Business
● Corporate
● Services
● Housewifes
● Students
4) Annual Income?
● Below 50,000
● 50,000 - 1,00,000
● 1,00,000 - 2,00,000
● More than 3,00,00
● No income
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10) Would you like to switch to another brand with extra features?
● Yes
● No
● Maybe
12) How much are you willing to pay for a mobile phone?
● 5000 - 10000
● 10000 - 15000
● 15000 - 25000
● 25000 - 35000
● 35000 and above
16) Would you buy the same brand while purchasing in future?
● Yes
● No
● Maybe
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● No
19) Are you satisfied with the customer service of your brand ?
● Yes
● No
● Fair
Agree Disagree
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21) Are you aware about the environment/health related issues of mobile
phones?
Aware Unaware
22) Do you get any special discounts and offers from your mobile phone brand ?
● Yes
● No
● Sometimes
Thank You
68