Factors affecting the purchase decision of High-end mobile phones and those affecting the purchase of Apple

i-phones

RESEARCH METHODOLOGY PROJECT SUBMITTED TO Dr. Sumi Jha
Narsee Monjee Institute of Management Studies, Mumbai Prepared by: 112 - Deon Fernandes 158 - Ankur Mohindra (I Year - FT MBA –Div.B- 2007-08)

Acknowledgements
We are very grateful to Prof. Dr. Sumi Jha who gave us the opportunity to work on this
Research Methodology project. It was through the project that we got An opportunity to implement the theory learnt in the class and gain a deeper insight in the subject. The project was of a great help not only in clarifying our concepts but also giving us insights

of the industry as a whole.
We would also like to thank the 75 respondents for co-operating with us to make the

study meaningful and sharing their views & opinions.

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Table of Contents
1. Introduction 1.1 Problem Statement 1.2 Research Objectives 1.3 Research Scope 2.1 Variables 2.2 Operational definitions 2.3 Theoretical Framework 3. Literature Survey 4. Hypothesis 5. Research Methodology 6. Sampling 7. Results 8. Hypothesis results and Interpretation 9. Conclusions 10. Recommendations 11. References 12. Questionnaire. 3 3 3 3 3 4 5 7 10 12 12 13 29 33 34 35

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Cool Looks 2. 6. music player. Sophistication 4. 9. 2. To study the factors such as quality of camera. Brand Name 7. The primary research will be done mainly taking Mumbai as the base and the results will be extrapolated over the country (major metros). Touch Screen 5. Introduction 1. To study the factors which cause a significant impact in the mind of the consumers buying Apple -phones. Camera Music Player Memory Size Robustness Looks Service offered User Friendly Interface Internet/ Email Other Utilities Price of Mobile Phone The main variables involved in the study of Apple iPhone are: 1. 2. 3. Music Quality 6. 10. Good Interface 3. Different Offerings compared to other products 4 . 1. 3. Quality of Service 8. To study the brand awareness of Apple products in India. 4. that affect the Purchase decision of high-end mobile phones in India. 2.3 Research Scope The research would be based on the study of the Indian Mobile phone market through secondary analysis. 8. memory size etc. 7.1 Variables The main variables involved in the study of High End Mobile Phones are: 1.2 Research Objectives: 1. 5.1 Problem Statement What are the factors affecting the purchasing decision of high-end mobile phones in India? 1.1.

• ophistication here refers to the fragility of the product as measured by the material used and weight of the phone. 7000 to Rs. Internet etc.9. Music Player. Data transfer features. • 5 U S . Willingness to purchase iPhone The variables are categorized into the following different types of variables • High end Mobile Phones Independent variable • Camera • Music Player • Memory Size • Robustness • Looks • Service offered • User Friendly Interface • Internet/ Email Dependent variables: Price of Mobile Phone • Apple iPhone Independent variable • Cool Looks • Good Interface • Sophistication • Touch Screen • Music Quality • Brand Name • Quality of Service • Different Offerings compared to other products Dependent variables: • Willingness to purchase iPhone 2.2 Operational definitions • H igh End Mobile Phone here means Multimedia phones in the price range of Rs. 20000 which have features ranging from Camera.

3 Theoretical Framework The relationship of independent variables on the price of the phone paid by high-end mobile users. • Looks here refer to the perception of the product by the consumer as associated with a high society product.niqueness here refers to the product attributes considered exclusive by the customer. Camera Music Player Memory Size Robustness Looks Price Service offered User Friendly Interface Internet/ Email Other Utilities 6 . 2.

The relationship of independent variables on the purchase decision made by high-end mobile users. Cool Looks Good Interface Sophistication Touch Screen Music Quality Brand Name Quality of Service Different Offerings as compared to other products Willingness to Purchase iPhone 7 .

Literature Survey Players and offerings in High end Mobile phone market In the High end Mobile phone market the need of different customers is based on their profile. In the Indian scenario currently the high end mobile phone market is dominated mainly by users who purchase phones for its multimedia features rather than its PDA and Internet/email capabilities (as per pilot survey). Sony Ericsson and Motorola (as per the pilot survey conducted on the salesperson).3. a user who purchases phone for day to day use would go for multimedia features in a phone.e. A business user who has to check his/her mails regularly while traveling would go for phones like Blackberry. In contrast. Comparison of Apple iPhone with current high end mobile phone offerings These high end mobile phones being offered by these players already have many features comparable to Apple iPhone and also many more models are expected to be launched over the next 1 year which can give direct competition to Apple iPhone. For a budget range of Rs. Nokia. 1522 K a salesman would suggest a Sony Erickson walkman series phone and for a higher range they would suggest Nokia N Series as according to them the features offered by Nokia N series along with the music quality are the best in this segment. The major phones which are currently being sold in these segments are Nokia N series (especially N70) and Sony Erickson Walkman Series. Following is a comparison of various cell phones existing in current handset market (offered by various players) with respect to Apple iPhone (Source: Secondary data 8 . Hence given the current scenario the major competitor for Apple iPhone are Nokia N Series and Sony Ericsson Walkman Series phones. Hence by the time Apple iPhone is launched in India it will already have substantial competition in the mobile phone handset market. O2 etc. Hence given this scenario the market for this segment is dominated by 2-3 players i. Depending on the budget of the consumer the salesmen suggest them either Nokia or Sony Erickson.

9 .research done using information from websites of various players).

imaging features). camera – still and video. ease of use (scrolling. the primary research was carried out.Competitive edge of Apple iPhone The factors which will set Apple apart from other competitors will be its significant brand value which will create curiosity among the consumers. the good interface. cell phone. combination of iPod. In order to test the above reasoning. Also the novelty factor (with respect to some new features being introduced like touch screen keypad). the service of Apple would affect the purchasing decision of i-phones. Also as the Indian customer had not had an i-phone experience we carried out the study to see which factors would affect the purchasing decision of i-phones in India. internet navigator and large memory storage will help Apple iPhone with enhanced sales of iPhone. 10 . to test whether the factors such as the brand name.

4. 8. 7. 9. H0: There is no significant relation between the looks of the handset and the price of the mobile handset. H0: There is no significant relation between the service offering of the handset and the price of the mobile handset. 3. H0: There is no significant relation between the robustness of the handset and the price of the mobile handset. H1: There is significant relationship between the service offering and the price of the mobile handset. 11 . 2. Hypothesis In this section we develop hypotheses derived from the research questions. H1: There is significant relationship between the need of user internet and email service and the price of the mobile handset. H0: There is no significant relation between the need of user internet and email service and the price of the mobile handset. 6. H0: There is no significant relation between the importance of user friendly interface and the price of the mobile handset. H1: There is significant relationship between the looks and the price of the mobile handset. H1: There is significant relationship between the need of a camera and the price of the mobile handset. H0: There is no significant relation between the need of a camera and the price of the mobile handset. H0: There is no significant relation between the need for utilities and the price of the mobile handset. H1: There is significant relationship between the need of a camera and the price of the mobile handset. H1: There is significant relationship between the need of huge memory size and the price of the mobile handset. H1: There is significant relationship between the robustness of the handset and the price of the mobile handset. H0: There is no significant relation between the need of huge memory size and the price of the mobile handset. 5. H0: There is no significant relation between the need of a music player and the price of the mobile handset. 1.4. H1: There is significant relationship between the importance of user friendly interface and the price of the mobile handset.

13. 12. H1: There is significant relationship between importance of music quality of iphones and the purchase decision of i-phones. H0: There is no significant relationship between the importance of touch-screen of iphones and the purchase decision of i-phones. H0: There is no significant relationship between the good interface of apple products and the purchase decision of i-phones. H0: There is no significant relationship between the sophistication of apple products and the purchase decision of i-phones. H1: There is significant relationship between the importance of touch-screen of iphones and the purchase decision of i-phones. 11. H1: There is significant relationship between the sophistication of apple products and the purchase decision of i-phones. 14. H0: There is no significant relationship between the brand name of apple products and the purchase decision of i-phones.H1: There is significant relationship between the need for utilities and the price of the mobile handset. 17. 16. H0: There is no significant relationship between the uniqueness of apple products and the purchase decision of i-phones. H1: There is significant relationship between the uniqueness of apple products and the purchase decision of i-phones. 15. H1: There is significant relationship between the good interface of apple products and the purchase decision of i-phones. H1: There is significant relationship between the brand name of apple products and the purchase decision of i-phones. H1: There is significant relationship between the quality of service of apple and the purchase decision of i-phones. H1: There is significant relationship between the looks of apple products and the purchase decision of i-phones. H0: There is no significant relationship between the quality of service of apple and the purchase decision of i-phones. H0: There is no significant relationship between the looks of apple products and the purchase decision of i-phones. 10. 12 . H0: There is no significant relationship between the importance of music quality of i-phones and the purchase decision of i-phones.

Research Methodology Questionnaire: The questionnaire consisted of 20 questions in all.Out of the 15 online surveys asked.Convenience sampling was used with proper spread across target population ensuring proper representation of the target population. They come from the upper middle class segment and have good source of income.5. Sample Size: .492. Reliability: We tested the reliability for the questionnaire by taking into account the independent variables. Results 13 . 6. It was divided into 5 segments: • • • • • Demographic information Consumer behaviour for mobile phones Variables rating for factors responsible for Purchase of High End mobile phone Brand Awareness of Apple and its products Factors responsible for Purchase of Apple iPhone The ranking and rating scale was used to determine the independent and dependent variables. 7.Written Questionnaires as well as few online questionnaires were circulated to the target audience in Mumbai City. Sampling Target Population: .60 questionnaires were filled by the respondents personally and 15 questionnaires were uploaded on the internet. Sampling Frame: .Young individuals in the age group of 25 to 40 years who forms the major buying population of high end mobile phones. On using the Cronbach’s Alpha test the reliability was found to be 0. Sampling Technique: . Response Rate: All the 60 questionnaires which were asked to be filled personally were filled with only 4 being bogus as the data filled was not proper.75 Execution: . only 9 were filled in the proper format and rest were invalid.

3 100.7 50.0 14 .7 50.3 56.0 Percent 16.7 100.0 6.Demographic Data: Age of the respondent Cumulative Frequency Valid Less than 18 18-25 25-30 30-35 Total 2 36 18 4 60 Percent 3.0 Gender Cumulative Frequency Valid Female Male Total 26 34 60 Percent 43.7 66.3 56.7 100.0 Occupation of the respondent Cumulative Frequency Valid Business Service Self Employed Student Total 10 30 4 16 60 Percent 16.7 100.7 73.0 30.7 100.3 100.0 Valid Percent 43.0 Percent 43.0 Valid Percent 16.3 63.7 26.0 Percent 3.3 100.7 100.0 Valid Percent 3.3 93.3 60.7 26.0 6.0 30.0 6.0 6.3 60.7 100.

0 100.7 20.0 Valid Percent 26.0 100.Annual Income Cumulative Frequency Valid Less than 2 Lakhs 2 .5 Lakhs 5 .7 16. 15 .0 Correlation between price of mobile phone and independent variables of High-end mobile phones.7 43.3 80.7 36.0 100.7 16.7 20.7 36.0 Percent 26.10 Lakhs 10 Lakhs and above Total 16 10 22 12 60 Percent 26.

113 .094 .615** .560** .122 -.428** .421** 1.004 60 .015 60 .176 .793 60 .001 60.070 -.022 60 .026 . (2tailed) N Importa Pearso nce of music player n Correlat ion Sig.094 .476 60 .476 60 .071 .504** .208 .000 60 .589 60 .381** nce of camera Importa Importa Importa nce of Size nce of ess Importa Importa nce of Looks offering phone Importa nce of player Importa nce of Importa User nce of and email nce of Utilities friendly Internet Importa e music Memory Robustn nce of Service interfac paid for n purchas Sig.181 -.732** .295* .354 60 .000 60 .179 60 .002 60 .072 60 60.149 60 .234 .234 1.000 .070 .000 60 Memory Correlat .312* .000 60 60 60.000 .209 .462** .003 60 1.024 .844 60 .001 camera Correlat .000 .110 60 1.188 .209 .000 .000 .292 60 1.016 60 .000 60 .000 60 .167 60 .504** .Correlations Price paid for last purcha sed Price last phone Pearso Correlat ion .396** .072 60 .000 -.137 60 . (2tailed) N Importa Pearso nce of n Robustn Correlat -.175 .138 .732** -.295* .036 -.238 -.421** .310* -. (2tailed) N Importa Pearso nce of Size n ion Sig.462** 1. (2ed tailed) N Importa Pearso nce of n ion Sig.000 60 .000 .035 .000 60 .194 .000 .389 60 .035 .132 .000 -.593 60 .001 60 .077 16 .854 60 .363** .000 60 .000 60 60.110 60 .

132 .234 .000 .003 60 1.421** 1.000 60 .035 .389 60 .022 60 .310* -.000 60 .854 60 .094 .181 -.462** 1.137 60 .560** .000 60 .110 60 .004 60 . (2tailed) N Importa Pearso nce of music player n Correlat ion Sig.000 . (2ed tailed) N Importa Pearso nce of n ion Sig.000 .396** .000 60 60.312* .209 .138 .234 1.149 60 . (2tailed) N Importa Pearso nce of Size n ion Sig.000 60 .175 .035 .000 60 .000 .001 60.070 -.421** .793 60 .176 .122 -.026 .001 camera Correlat .015 60 .504** .016 60 .000 -.167 60 . (2tailed) N Importa Pearso nce of n Robustn Correlat -.072 60 .462** .000 .476 60 .113 .094 .428** .110 60 1.000 60 60 60.071 .002 60 .208 .354 60 .295* .615** .194 .844 60 .072 60 60.732** -.077 17 .000 .589 60 .070 .363** .295* .000 .024 .732** .001 60 .504** .179 60 .036 -.292 60 1.000 -.209 .476 60 .000 60 Memory Correlat .000 60 .381** nce of camera Importa Importa Importa nce of Size nce of ess Importa Importa nce of Looks offering phone Importa nce of player Importa nce of Importa User nce of and email nce of Utilities friendly Internet Importa e music Memory Robustn nce of Service interfac paid for n purchas Sig.188 .593 60 .238 -.Correlations Price paid for last purcha sed Price last phone Pearso Correlat ion .000 60 .

18 .Correlation between purchase decision of Apple i-phones and independent variables that affect the purchase of i-phones.

000 .019 .485** -.709** .001 .319* .000 60 .403 60 .000 . (2tailed) N Looks of Apple Products Pearson Correlatio n Sig.000 60 .464** -.001 .760** .000 60 .Correlations Quality Differen Would to of Good e of Apple s Sophisticati Products Touch of Apple s Music of Apple s Brand name of Apple s of of apple s t s from other s you like Looks Interfac purchas Apple iPhone Would you like to purchase Apple iPhone Pearson Correlatio n Sig.674** .247 .013 .678** -. (2tailed) .709** 1.009 60 .000 60 .001 60 .604** -.609** .678** .190 1.145 60 .000 -.145 60 60.000 60 60.000 .492** .751** 1.000 .385** 60.694** .000 .335** -. (2tailed) N Sophisticatio Pearson n of Apple Products Correlatio n Sig.505** -.743** -.642** -.013 60 .302* 1.407** -.000 .000 .000 60 .000 60 .017 60 1.407** -.000 60 .000 60 .000 60 .707 -.429** .016 60 .032 60 .319* -.002 60 -.000 60 .057 60 .000 60 .000 60 .302* -.485** .000 .000 -.190 -.492** .000 60 .050 .000 -. (2tailed) N Touch Screen of Apple Products Pearson Correlatio n Sig.889** .000 60 .000 60 .000 60 .110 -.000 60 60.548** -. (2tailed) N Good Interface of Apple Products Pearson Correlatio n Sig.307* s Screen Quality service offering e Apple Product Product on of Apple Product Product Product product product 19 .310* -.000 .464** -.385** .000 60 .751** -.277* .019 60 .002 60 .

335** -.000 -. (2tailed) N Good Interface of Apple Products Pearson Correlatio n Sig.385** 60.000 .743** -.000 60 .000 60 .057 60 .000 60 .009 60 .000 60 .385** .302* 1.694** .000 60 60.000 60 .013 60 .000 .002 60 .319* .001 60 .017 60 1.403 60 .110 -.609** .707 -.429** .485** -.492** .000 60 .464** -.000 60 .310* -.019 .319* -.678** .000 .407** -.032 60 .889** .013 .000 60 .190 1.016 60 .000 60 .000 .000 -.000 60 60.548** -.000 60 .751** -. (2tailed) .302* -.678** -.760** .001 .000 -. (2tailed) N Looks of Apple Products Pearson Correlatio n Sig.307* s Screen Quality service offering e Apple Product Product on of Apple Product Product Product product product 20 .000 .000 60 .505** -.709** .000 60 .145 60 60.145 60 .485** .000 .277* .000 60 .000 .001 .709** 1.000 60 .247 .751** 1.050 .002 60 -.019 60 .464** -.190 -.000 60 .674** . (2tailed) N Sophisticatio Pearson n of Apple Products Correlatio n Sig.407** -.492** .000 .000 60 .642** -. (2tailed) N Touch Screen of Apple Products Pearson Correlatio n Sig.604** -.000 60 .Correlations Quality Differen Would to of Good e of Apple s Sophisticati Products Touch of Apple s Music of Apple s Brand name of Apple s of of apple s t s from other s you like Looks Interfac purchas Apple iPhone Would you like to purchase Apple iPhone Pearson Correlatio n Sig.000 .

054 -.846 -2.702 .042 . Dependent Variable: Price paid for last phone purchased 21 .080 .177 .054 .152 .052 .446 .058 . Error of the Model 1 R .034 .207 .119 Std.263 .088 . Importance of User friendly interface. Model Summary Std.046 -.139 Coefficients Beta t -3.790 .077 .009 4. Importance of Utilities.521 .000 a.541 -.494 2.050 .003 .385 3.971 2. Importance of Internet and email.152 . Error .112 .049 Sig.155 .874 1.490 .254 .280 .805 Adjusted R Square .449 -.071 . Predictors: (Constant). Importance of Looks. Importance of Service offering. Importance of music player.105 3.001 .055 .Regression of independent variables affecting the purchase decision of high-end mobile phones on the price of the handset. .151 .000 . Importance of Memory Size Coefficientsa Standardized Unstandardized Coefficients Model 1 (Constant) Importance of camera Importance of music player Importance of Memory Size Importance of Robustness Importance of Looks Importance of Service offering Importance of User friendly interface Importance of Internet and email Importance of Utilities B -1.897a R Square .057 -.770 Estimate .028 .006 .769 .197 .462 a. Importance of Robustness. Importance of camera.

Good Interface of Apple Products Coefficientsa Standardized Unstandardized Coefficients Model 1 (Constant) Looks of Apple Products Good Interface of Apple Products Sophistication of Apple Products Touch Screen of Apple Products Music Quality of Apple Products Brand name of Apple Products Quality of service of apple products Different offerings from other products B 1.079 . Error 1.851 Adjusted R Square .512 .158 .181 .762 -.077 -.828 Estimate .570 .647 Sig.072 . Model Summary Std.010 . Brand name of Apple Products.450 .058 -.528 . Error of the Model 1 R .Regression of independent variables affecting the purchase decision of Apple iphones on the purchase decision of i-phones. Quality of service of apple products. Looks of Apple Products.343 -.013 .102 Std. Different offerings from other products.203 2.774 -6.057 a.062 . Music Quality of Apple Products.256 2.169 1.037 .091 1.260 Coefficients Beta t . Dependent Variable: Would you like to purchase Apple iPhone 22 .632 .062 .928 .115 .949 . Predictors: (Constant).164 -.009 .062 -.110 .899 .182 .098 .011 .022 -.923a R Square .315 a.957 .856 . . Sophistication of Apple Products.000 -. Touch Screen of Apple Products.006 .106 .

17 3.0 23.3 13.174 1.262 .127 60 1 5 3.70 3.905 .314 60 60 60 1 1 5 5 3.40 1.Descriptives of independent variables Descriptive Statistics N Importance of camera Importance of music player Importance of Memory Size Importance of Robustness Importance of Looks Importance of Service offering Importance of User friendly interface Importance of Internet and email Importance of Utilities Valid N (listwise) 60 60 60 60 60 60 Minimum 2 1 2 1 1 1 Maximum 5 5 5 5 5 5 Mean 4.97 3.182 Importance of Camera Rank Frequency Valid 1 2 3 8 Total 36 14 8 2 60 Percent 60.0 Valid Percent 60.63 1.0 Cumulative Percent 60.0 23.0 23 .979 1.0 83.7 100.47 Std.798 1. Deviation .3 3.33 3.3 96.3 3.827 .3 100.17 3.80 2.3 13.3 100.

0 Cumulative Percent 26.3 100.Importance of Music Player Rank Frequency Valid 1 2 3 4 5 6 Total 16 28 6 4 4 2 60 Percent 26.0 6.0 6.3 23.3 100.7 23.0 6.7 26.0 10.0 6.0 Cumulative Percent 6.7 53.7 100.7 36.3 100.0 10.7 3.0 10.7 46.7 23.3 100.7 73.0 10.3 23.0 24 .3 90.7 46.7 10.7 100.0 Valid Percent 6.7 10.0 Valid Percent 26.7 16.7 6.0 Importance of Touch Screen Rank Frequency Valid 2 3 4 5 6 7 8 9 Total 4 6 6 6 6 4 14 14 60 Percent 6.7 6.3 83.7 3.7 10.3 76.0 10.0 96.0 10.7 10.7 46.

3 3.0 Importance of Video Player Rank Frequency Valid 2 3 4 5 6 7 8 9 Total 4 6 8 14 8 10 8 2 60 Percent 6.3 6.3 13.7 83.7 10.3 6.7 50.3 20.7 13.0 53.0 Cumulative Percent 3.3 16.3 23.3 20.3 20.3 16.0 25 .3 100.0 13.3 100.7 10.0 Valid Percent 3.0 13.3 100.Importance of Internet Browsing Rank Frequency Valid 1 2 3 4 5 6 7 8 9 Total 2 2 4 2 12 8 12 8 10 60 Percent 3.0 83.0 13.0 13.7 100.0 Cumulative Percent 6.3 66.3 16.0 70.3 16.7 100.3 16.3 23.0 13.7 13.3 20.7 30.7 100.7 3.7 3.7 36.3 3.3 13.7 13.0 Valid Percent 6.0 13.7 16.3 6.3 96.3 3.3 3.

0 83.0 Valid Percent 6.7 100.3 16.3 23.7 3.3 13.7 3.0 3.0 Cumulative Percent 13.3 13.7 100.3 13.3 3.7 60.7 33.3 23.0 80.7 3.0 3.3 16.Importance of Email Client Rank Frequency Valid 2 3 4 5 6 7 8 9 Total 8 2 10 2 8 10 8 12 60 Percent 13.0 100.0 Importance of Doc Viewer Rank Frequency Valid 2 3 4 5 6 7 8 9 Total 4 2 8 8 14 12 2 10 60 Percent 6.3 13.3 36.7 13.3 36.0 100.3 20.3 100.0 26 .7 50.7 80.3 16.0 100.0 66.3 20.0 Cumulative Percent 6.3 20.7 10.3 16.3 20.7 13.3 13.7 3.3 16.3 3.0 23.0 Valid Percent 13.3 13.3 16.3 16.

3 76.3 100.7 13.Importance of Data Transfer Rank Frequency Valid 1 3 4 5 6 7 8 9 Total 2 20 12 2 6 4 8 6 60 Percent 3.3 16.0 70.7 6.3 20.7 90.7 56.7 63.0 76.3 6.0 Importance of Looks Rank Frequency Valid 1 2 3 4 5 6 7 8 9 Total 8 2 4 8 8 4 4 8 14 60 Percent 13.3 13.0 Valid Percent 13.3 23.7 13.3 36.0 100.3 3.3 33.3 10.7 50.7 13.0 Cumulative Percent 3.3 36.7 13.0 27 .3 33.0 3.3 10.3 3.0 6.3 10.3 100.0 100.0 100.3 23.0 Cumulative Percent 13.7 6.0 6.3 13.0 Valid Percent 3.3 6.3 10.0 56.7 23.0 3.7 60.3 20.3 6.7 13.3 6.7 100.7 13.

0 100.3 20.3 100.0 28 .0 100.3 76.0 53.0 Percent 3.0 Valid Percent 3.0 Would you purchase iPhone even if its priced above Rs.0 70.3 20.Would you like to buy a phone which has no keypad and only touch screen Cumulative Frequency Valid No Yes Total 42 18 60 70. 20000 Cumulative Frequency Valid Never Not Likely Likely Very Likely Total 2 14 32 12 60 Percent 3.3 23.0 100.0 100.7 80.3 20.3 23.0 70.0 100.0 100.3 20.3 23.0 53.0 Percent 3.3 23.3 100.7 100.0 30.3 53.0 Percent Valid Percent Percent Would you like to purchase Apple iPhone Cumulative Frequency Valid Not at all Not Likely May Be Definitely Total 2 12 32 14 60 Percent 3.0 30.3 23.3 53.3 26.0 Valid Percent 3.

Brand Awareness of Apple Age of the respondent * Brand Awareness of iPod * Gender Crosstabulation Count Brand Awareness of iPod Gender Female Age of the respondent Less than 18 18-25 25-30 30-35 Total Male Age of the respondent 18-25 25-30 30-35 Total 2 0 0 2 No Yes 2 18 4 2 26 16 14 2 32 Total 2 18 4 2 26 18 14 2 34 Age of the respondent * Brand Awareness of iMac * Gender Crosstabulation Count Brand Awareness of iMac Gender Female Age of the respondent Less than 18 18-25 25-30 30-35 Total Male Age of the respondent 18-25 25-30 30-35 Total No 2 10 4 2 18 6 2 2 10 Yes 0 8 0 0 8 12 12 0 24 Total 2 18 4 2 26 18 14 2 34 29 .

Age of the respondent * Brand Awareness of iPhone * Gender Crosstabulation Count Brand Awareness of iPhone Gender Female Age of the respondent Less than 18 18-25 25-30 30-35 Total Male Age of the respondent 18-25 25-30 30-35 Total No 2 2 2 0 6 Yes 0 16 2 2 20 18 14 2 34 Total 2 18 4 2 26 18 14 2 34 8. Hypothesis results and Interpretation 30 .

4. Also nearly 87% of the respondents wanted a camera resolution between 2 Mega pixels to greater than 3 Mega pixels. This is bolstered by the fact that the mean for the importance of a camera is the highest at 4. Result: Reject 31 . Result: Reject The correlation between the two is .97. Result: Reject The correlation between the two is high at . H0: There is no significant relation between the need of a camera and the price of the mobile handset.504 and is significant at 99% level of confidence. This is further emphasized by the fact that the importance of robustness is the lowest at 2.732 and is significant at 99% level of confidence. Also the mean rating for memory size is high at 3. Result: Reject The correlation between the two is negative at -. robustness has a negative impact on the purchasing decision. Result: Reject The correlation between the two is . H0: There is no significant relation between the need of a music player and the price of the mobile handset. showing that hi-end users lay emphasis on huge memory size in the handset.8 implying its importance while making a purchase decision.17 out of 5. This importance comes from the fact that. the handset becomes more of a utility than just for communication. H0: There is no significant relation between the need of huge memory size and the price of the mobile handset. showing that for hi-end users. H0: There is no significant relation between the looks of the handset and the price of the mobile handset. showing that hi-end users lay emphasis on the need of a music player in the handset. 5.421 and is significant at 99% level of confidence.295 and is significant at 95% level of confidence. H0: There is no significant relation between the robustness of the handset and the price of the mobile handset.1. showing that hi-end users lay emphasis on the need of a camera in the handset. Also 60% of the respondents ranked camera as no. 2. High-end users use their handset as storage devices and thus the need of huge memory size. This is further stressed upon as the nearly 73% of the respondents ranked the importance of music player as rank 1 or 2. at higher prices.1 in importance. 3.

Result: Reject The correlation between the two is negative at -.381 and is significant at 95% level of confidence. walkman 32 . 9.119 within the 0. 8.The correlation between the two is . On regression. Result: Reject The correlation between the two is . The negative relationship is further highlighted on regression. Thus. H0: There is no significant relation between the need of user internet and email service and the price of the mobile handset.709 but is significant at 99% level of confidence.113 and is not significant at 95% level of confidence. H0: There is no significant relationship between the looks of apple products and the purchase decision of i-phones.054. Result: Reject The correlation between the two is . touch screen etc. the mean of the respondents is relatively low at 3. indicating that hi-end users need internet and email facilities in their handset.428 and is significant at 99% level of confidence. we accept the null hypothesis that there is no significant relationship. H0: There is no significant relation between the need for utilities and the price of the mobile handset. showing that hi-end users lay emphasis on looks. 6. Also on carrying out regression. it was also found that had a coefficient of . H0: There is no significant relation between the importance of user friendly interface and the price of the mobile handset.33 and also while ranking the importance of the need for internet facilities.56 and is significant at 99% level of confidence. its spread out from rank 2 to 9. 10.05 level of significance. but it’s not significant.310 and is significant at 95% level of confidence. Result: Reject The correlation between the two is . However. This makes it evident that high end phones like the N-series. showing that hi-end users are not convinced about the looks of apple i-phones. the coefficient for the services offered was .152 at a significance level of . Result: Accept The correlation between the two is negative and at . indicating that hi-end users lay emphasis on services provided by the handset company. 7. indicating that hi-end users stress on the utilities offered by hi-end handsets such as document-viewer. H0: There is no significant relation between the service offering of the handset and the price of the mobile handset.

we accept the null hypothesis. Hence. Also. indicating that hi-end users believe that Apple i-phones are fragile and does need care of handling. Result: Reject The correlation between the two is . 13. indicating that hi-end users believe that Apple i-phones are user friendly. 14. This is largely on the experience of other apple products such as i-pod and also based on the user friendliness of viewing documents.464 and is significant at 99% level of confidence. H0: There is no significant relationship between the sophistication of apple products and the purchase decision of i-phones. H0: There is no significant relationship between the brand name of apple products and the purchase decision of i-phones.678 and is significant at 99% level of confidence. 12. 15. This could largely be due to the huge screen size of iphone making it more prone to breakage. Result: Reject The correlation between the two is .series are perceived to have better looks than i-phones. showing that hi-end users don’t perceive the brand name of apple as 33 . which is a startling fact. H0: There is no significant relationship between the importance of touch-screen of iphones and the purchase decision of i-phones. H0: There is no significant relationship between the importance of music quality of i-phones and the purchase decision of i-phones. This is bolstered by the fact that nearly 48% of the respondents ranked the need of touch screen low at 8 or 9 and about 70% did not prefer a phone which has a touch screen but no key-pad.319 but is significant at 95% level of confidence. Result: Reject The correlation between the two is negative at -. showing that hi-end users don’t perceive touch screen as that important. a unique selling point for i-phones. the correlation is negative. because apple has been famous for it’s i-pods. 11. Result: Accept The significance level is greater than 0. Another reason why iphones is perceived not to have great looks is because of its limited variety of models.889 and is significant at 99% level of confidence. Result: Reject The correlation between the two is negative at -.05. H0: There is no significant relationship between the good interface of apple products and the purchase decision of i-phones. A reason could be the belief by customers that Apple wont be able to blend music with its new venture into music communication.

20. 17. This is because of the wide-presence of other laptops such as Dell.. Result: Reject There is a significant correlation between the services provided by apple and the purchase decision a high-end user makes. indicating that the services provided by apple are not that different than others. then 73 % of the respondents were likely to purchase it. Also 77 % of the respondents were likely to purchase apple i-phones. Compaq’s high penetration in the market and the relative low presence of Apple notebooks.000/. Also. Also 100% of the male were aware of it against 77% of the female respondents. emphasizing the popularity of i-pods due to the revolution it has brought about in listening to music. H0: There is no significant relationship between the uniqueness of apple products and the purchase decision of i-phones. i-Pod: Nearly 100% of the respondents were aware of i-pod across gender as well as age.much when it moves into the phone category. i-Mac: The awareness of i-Mac was at relatively low at around 53% (32 out of the 60 respondents were aware). 9. H0: There is no significant relationship between the quality of service of apple and the purchase decision of i-phones. i-Mac and i-phone. Result: Reject There is a negative correlation between the two. thereby. Acer. Conclusions 34 . Brand Awareness of Apple The brand awareness of Apple was studied considering its various products: i-pod. if i-phone was priced around Rs. One of the reasons primarily is Apple's recent entry into the handset market. i-Phone: The awareness of i-phones was high among all respondents at 90%. Sony. One of the reasons why the service quality is perceived as good enough is because of the quality of after sales service apple has provided in its previous offerings of i-pod and i-Mac. Within the 25-30 age-groups the awareness was very high. 16.

touch screen is a unique feature of i-phones.• The quality of features such as camera. For high end users there is a negative correlation between the price they pay for a handset and the robustness of the mobile while they emphasize on looks. However. looks of the handset. Although. high-end users perceive that it provides a friendly interface probably because of its document viewing facility. The brand awareness of Apple is significant among all age-groups and gender. • • • • 35 . the purchase decision has a negative correlation with the need of a touch screen. in case of i-phones. there is a negative correlation between looks and on the decision of purchasing an i-phone. i-pods and i-phones are very popular. email and internet have a direct correlation on the price of the handset brought by high-end users. the size of the memory. the services offered by the handset company. This was confirmed by the fact that 70 % of the respondents don’t prefer a phone with just a touch screen and no key-pad. i-phones to an extent does offer something different to buyers. However. in the case of i-phones. Thus. There is a negative correlation between the need of a friendly interface and the price that high-end users pay for a cell phone. music player. Among Apple products.

they can look for venturing into making the low-end segment of the market to experiment with this product. Recommendations We would like to recommend Apple to go ahead with the launch of the new i-phones in the Indian market. Its memory size is about 4GB and can be expanded to 8 GB. 11.com Proquest database 12. All this gives tremendous opportunity to companies like Apple to enter into India with their new and innovative products.10. If launched with huge hype. a must for high-end users. As they get some hold of the high-end market. John Wiley & Sons Inc. there is vast scope of entry of new brands and new technologies. The purchasing power of the people is on the rise and they are ready to invest and experiment in new and sophisticated brands. light weight and easy to handle. The basis of this recommendation is that respondents believe that Apple products are user friendly. www. The company can also keep the prices of the products at a premium as the market is ready to experiment without looking at cost considerations too much. With the fast growing cell-phone market in India. The only thing that Apple needs to take care is that their marketing strategy is so targeted such that the high-end segment market considers purchase of Apple products as status symbols.coai. Gartner Dataquest report Cellular operators association of India website.in www.A. 4th Edition .india-cellular.S. Questionnaire 36 . the product can be an instant hit in the market and can gain major share of the Indian cell-phone market. and have great have good after service quality. References • • • • • Marketing Research. Another reason is that i-phones have a huge memory size. They should look for an aggressive strategy upfront targeting the high-end segment of the market.D. Aaker & G.Day .

7000 • 7001 . Rank the following features of the cell phone according to their importance. How frequently do you like to change your handset? • Every 3-6 months • Every 6-12 months • More than 1 year • Never 37 . Gender? Male Female 3. (Rank 1 – Most Important and 9 – Least Important) Camera(1.3 Mbps and above) Music Player Touch Screen Internet Browsing Video Player Email Client Document viewer Data Transfer Trendy Looks 6. Age? • • • • • Less than 18 18-25 25-30 30-35 Above 35 2. Occupation? • Student • Service • Business • Self employed 4.12000 • 12000 – 18000 • >18000 7.1. What is the price you paid for your current cell phone? • Upto 4000 • 4001 . How many times till date have you changed your phone? • Never • 1-2 times • 3-4 times • More than 4 times 8. Annual income? Less than 2 lacs 2 to 5 lacs 5 to 10 lacs 10 Lacs and above 5.

9.8 MegaPixels – 1. 5-most important) Features Camera Music Player Memory Size Robustness Looks Service offered User friendly interface Internet/ Email Other Utilities like Document viewer etc.4 MegaPixels – 2.2 MegaPixels • Any camera will do 13. Would you like to buy a phone which has no key pad but only touch-screen keypad? • Yes • No 14. What kind of Camera Resolution you would want to in a cell phone? • 0. How important will be the following attributes for you while buying a new cellphone? Rate each on a scale of 1 to 5 (1-least important. Please rate the following features of touch screen on the scale of 5 (5 –highest) ? Features Ease of usage Big Screen Size Sophistication Novelty Factor driving purchase 1 2 3 4 5 15. How many of these Apple products are you aware of? • iPod • iMAc • iPhone • None 38 .3 MegaPixels • 1. 1 2 3 4 5 12.0 MegaPixels – 3.0 MegaPixels • 2.2 MegaPixels • > 3.

Do you think an Apple iPhone will give significantly different offerings than other high end phones? • Yes • No • Can't say 19.000 in next one year. Are you aware of Apple’s latest mobile phone called iPhone? • Yes • No 18. would you like to purchase it within the next year? • Not at all • Not likely • May Be • Definitely 20. You will buy Apple Products because (Rank them with 1 as most important and 8 as least important. would you still purchase it? • Never • Not Likely • Likely • Very Likely 39 .16. When Apple launches iPhone in India.) Cool Looks Good Interface Sophistication Touch Screen Music Quality Brand Name Quality of Service Very different offering compared to other products 17. Considering iPhone is priced at around Rs 20.