Study of Consumer Behavior regarding the brands of Mobile Handsets in Ludhiana city

Research Project Report

Submitted to Punjab Technical University, Jalandhar

in partial fulfillment of the requirement of the degree of

Masters in Business Administration

By

Sanjeev Kumar Singh

Student (MBA)

Roll No: 81501317095

Department of Business Management

Punjab College of Technical Education, Ludhiana

2008-2010

1

Certificate

This is to certify that the research project report entitled, “Study of Consumer Behavior

regarding the brands of Mobile Handsets in Ludhiana city ” submitted in partial

fulfillment of the requirement for the degree of Master in Business Administration at

PCTE Ludhiana, (MBA I, Examination to be held in May 2009) of the Punjab Technical

University, Jalandhar is a bonafide research work carried out by Sanjeev Kumar Singh

(MBA-1C, Roll no. 81501317095) under my supervision and that no part of this research

project has been submitted for any other degree.

The assistance and help received during the course of this investigation has been

fully acknowledged.

Dated: 30 Aprail, 2009 Ms. Deepa Kapoor Senior Lecturer

Department of Business Management Punjab College of Technical Education Ludhiana

2

Acknowledgement

In the successful completion of this project inspiration and guidance of many

people was involved. A mere form of acknowledgement would be demeaning the status

of this whole effort which has had the blessings and supervision of the eminent person

around me.

First of all I would like to thank whole heartedly Ms. Deepa Kapoor who was

there to guide me at every step during the course of this project. She gave me tips for the

improvement in project whenever required.Special thanks to Mr. K.N.S. Kang,

Director,PCTE for providing eminent direction. Apart from this I feel indebted to all

faculty members of PCTE, especially who have helped, developed the right kind of

attitude and scholastic excellence in me. Last but not the least; I am very thankful to my

parents, friends and all those persons who made this research project possible, for their

consistent guidance and constructive criticism.

Sanjeev Kumar Singh MBA I-C Roll No: 81501317095 Punjab College of Technical Education

Ludhiana

3

Table of Contents

Chapter No. Particulars Page no.

1 Introduction 1-10

2 Review of Literature 11-13

3 Research Methodology 14-16

4 Data Analysis and Interpretation 17-30

5 Results and Findings 31-32

6 Conclusion and Summary 33

Appendix 34-35

Bibliography

4

List of tables

S.No. Particulars Page No.

Table 1.1 Showing market share of major global players of mobile

phones in 2008

1o

Table 4.1 Showing number of respondents owing a mobile phone 24

Table 4.2 Showing different brands of mobiles phones used by the

respondents

25

Table 4.3 Showing respondents using same brand as they had earlier 26

Table 4.4 Showing reasons for using mobile phone by the respondents 27

Table 4.5 Showing the factors considered by respondent while

purchasing a mobile hand set

28

Table 4.6 Showing the sources which influenced the buying decision of

the respondents

29

Table 4.7 Showing different purposes for which mobile is used by the

respondents

30

Table 4.8 Showing ranking of various features of mobile handsets by

the respondents according to their preferences

31

Table 4.9 Showing range of price that respondents like to spend on

mobile hand set

32

Table 4.10 Showing features preferred in a particular brand of mobile phone

33

Table 4.11 Showing agreement level of the respondents on various

factors influencing purchase decision

34

Table 4.12 Showing satisfaction level of the respondents 35

Table 4.13 Showing additional features required by the respondents in

their mobile handsets

36

5

List of Figures

S.No. Particulars Page No.

Figure 1.1

Figure 1.2

India’s mobile subscriber base

market share in percentage of the mobile phone players in

India

13

14Figure 4.1 number of respondents owing a mobile phone 24

Figure 4.2 different brands of mobiles phones used by the respondents 25

Figure 4.3 respondents using same brand as they had earlier 26

Figure 4.4 reasons for using mobile phone by the respondents 27

Figure 4.5 factors considered by respondent while purchasing a mobile

hand set

28

Figure 4.6 sources which influenced the buying decision of the

respondents

29

Figure 4.7 different purposes for which mobile is used by the

respondents

30

Figure 4.8 ranking of various features of mobile handsets by the

respondents according to their preferences

31

Figure 4.9 range of price that respondents like to spend on mobile hand

set

32

Figure4 .10 features preferred in a particular brand of mobile phone 33

Figure4 .11 agreement level of the respondents on various factors

influencing purchase decision

34

Figure4 .12 Satisfaction level of respondents 35

6

Figure 4.13 additional features required by the respondents in their

mobile handsets

36

Chapter 1

1.1 INTRODUCTION

Information technology is "the study, design, development, implementation, support or

management of computer-based information systems, particularly software applications

and computer hardware." Encompassing the computer and information systems

industries, information technology is the capability to electronically input, process, store,

output, transmit, and receive data and information, including text, graphics, sound, and

video, as well as the ability to control machines of all kinds electronically.

Information technology is comprised of computers, networks, satellite communications,

robotics, videotext, cable television, electronic mail ("e-mail"), electronic games, and

automated office equipment. The information industry consists of all computer,

communications, and electronics-related organizations, including hardware, software, and

services. Completion of tasks using information technology results in rapid processing

and information mobility, as well as improved reliability and integrity of processed

information. It is a convenient term for including both telephony and computer

technology in the same word. It is the technology that is driving what has often been

called "the information revolution". Nowadays it has become popular to broaden the term

to explictly include the field of electronic communication so that people tend to use the

abbreviation ICT (Information and Communication Technology).

"Electronic and information technology" is a term used in the 1998 amendments to

Section 508 of the Rehabilitation Act. The term is used to define the scope of products

covered under Section 508. Section 508 requires that electronic and information

technology that is developed, procured, maintained, or used by the federal government

be accessible.

7

Electronic and information technology includes computer hardware and software,

operating systems, web-based information and applications, telephones and other

telecommunications products, video equipment and multimedia products, information

kiosks, and office products such as photocopiers and fax machines

1.2 History

Information technology dates back to 5000BC, when people started using alphabets as a

medium of communication. However, its actual emergence started with the first ever use

of the computer. The real modern mechanical computer was conceived in 1822 by

Charles Babbage. Then came the electromechanical age in 1840s with the discovery of

different ways to harness electricity and the information was converted into electric

impulses. This led to the beginning of telecommunication and telegraphy in late 1800s.

As the loading coil and vacuum tube made possible the early telephone network, the

wireless revolution began only after low cost microprocessors and digital switching

became available.

Since then, four generations of computers have evolved. Each generation represented a

step that was characterized by hardware of decreased size and increased capabilities. The

first generation used vacuum tubes, the second transistors, and the third integrated

circuits. The fourth (and current) generation uses more complex systems such as Very-

large-scale integration or System-on-a-chip.

Mobile rigs were the beginning of mobile phones for use in vehicles such as taxicab

radios, two way radios in police cruisers, and the like. A large community of mobile radio

users, known as the mobileers, popularized the technology that would eventually give

way to the mobile phone. The concept of using hexagonal cells for mobile phone base

stations was invented in 1947 by Bell Labs engineers at AT&T and was further

developed by Bell Labs during the 1960s.

One of the first truly successful public commercial mobile phone networks was the ARP

network in Finland, launched in 1971.The first hand held mobile phone to become

commercially available was the Motorola DynaTAC 8000X, which received approval in

1983. Until the late 1980s, most mobile phones were too large to be carried in a jacket

8

pocket, so they were usually permanently installed in vehicles as car phones. With the

advance of miniaturization and smaller digital components, mobile phones got smaller

and lighter.

1.3 Current scenario

Mobile phones have gained a lot of popularity and are the considered to be great

multimedia tools. Mobile phones are being used for entertainment purposes due the

introduction of new features everyday. They have become more than just call making and

receiving devices. Mobile phone handsets now have more business-friendly applications

that can enhance anybody’s business. With emerging technology, mobile phones have

become more than communication devices; they are the tools to stay ahead of

competitors and peers in the present times. Soon mobile phones will evolve from

communication tools to integrated communication devices, media terminals, credit cards,

and remote controls.

1.4 Global mobile handset market

The phenomenal rise of the mobile phone has seen its image change from a yuppie status

symbol to a daily essential. Along the way, it has created thousands of jobs, changed the

way we do business, and made an awful lot of money for investors. Today Key Handset

technologies include GSM, CDMA, and 1xEV-DO, WiFi VoIP, TDMA, 3G, 4G and

Blue Tooth. Worldwide mobile phone sales cruise to 990.8 million units in 2006, up a

hefty 21.3% from 2005’s 816.6 million units. The estimated growth figures are—6.4% in

2007, 4.8% in 2008 and 2.6% in 2009. Notwithstanding the gradual decline in the growth

figures, the annual handset sales are predicted to reach more than US $ 3 Billion by

2009.The total number of mobile phone subscribers in the world was estimated at 2.14

billion in 2005.

9

Around 80% of world's population have mobile phone coverage as of 2006. This figure is

expected to increase to 90% by the year 2010. With the periodic introduction of new

features and multimedia tools in the mobile handsets due to technological advances, more

and more people in the Asian continent fancy buying them. There are many diversities

and complexities in the Asian mobile handset market due to types of customers,

government regulations, regional/geographical wireless infrastructure, and the purchasing

power. Basically, the Asian market looks at the mobile handsets as status symbols. The

market is seen best for the low-end phones, but there is a huge rise in the demand for

flashier and costlier phones. India, China, Korea, and Malaysia are fast evolving as the

biggest markets for mobile handsets and in coming years they will mainly carry on the

global handset sales.

1.5 Major Global Players

Table 1.1: showing market share of major global players of mobile phones in 2008

Company 2008 Market Share (%)

Nokia 39

Samsung 15.6

Motorola 12.7

Sony Ericcson 9.1

LG 7.7

BenQ Mobile 2.4

Others 13.5

Total 100.0

Nokia Corporation is currently the world's largest manufacturer of mobile telephones. It

produces mobile phones for every major market and protocol, including GSM, CDMA,

10

and W-CDMA (UMTS).The corporation also produces telecommunications network

equipment for applications such as mobile and fixed-line voice telephony, ISDN,

broadband access, voice over IP, and wireless LAN.

Nokia's Mobile Phones division provides the general public with mobile voice and data

products across a wide range of mobile devices. The division aims to target primarily

high-volume category sales of mobile phones and devices, with consumers being the

most important customer segment. Nokia believes that design, brand, ease of use and

price are mainstream mobile phones' most important considerations to customers. Nokia's

product portfolio includes camera phones with features such as megapixel cameras which

appeal to the mass market.

Motorola is an American multinational communications company based in Schaumburg,

Illinois, a Chicago suburb.Most of Motorola's products have been radio-related, starting

with a battery eliminator for radios, through the first walkie-talkie in the world, defense

electronics, cellular infrastructure equipment, and mobile phone manufacturing. Motorola

has recently been regaining market share in the cellular-phone business from Nokia,

Samsung, and others due to stylish new cellular phone designs.

Samsung Electronics is one of the world's largest IT companies by revenue. The

company also claims to be have the highest brand value among consumer electronics

companies. Headquartered in Seoul, South Korea, it is part of the Korean Samsung

Group, operating in approximately over 100 countries.It is the number 1 mobile phone

manufacturer in Asia.

Sony Ericsson is a joint venture established in 2001 by the Japanese consumer

electronics company Sony Corporation and the Swedish telecommunications company

Ericsson to make mobile phones. Both companies have stopped making their own mobile

phones. The reason for this merger is to combine Sony's consumer electronics expertise

with Ericsson's technological leadership in the communications sector.The company's

11

global management is based in Hammersmith, London. It also has research &

development teams in Sweden, Japan, China, Canada, the Netherlands, the United

States,India and the United Kingdom.

LG Electronics is one of the world's leading electronics companies. It is part of the

Korean LG Group, operating in approximately 80 countries. Its mobil phones division

provides CDMA, GSM, 3G Handsets.

BenQ-Siemens is the mobile communications subsidiary of Taiwanese BenQ Corp.. The

division was formed out of BenQ's acquisition of the struggling Siemens mobile group in

2005. The stated goal of the company is to pull together BenQ's lifestyle experience, their

renowned design team and Siemens' engineering capabilities to create a new leader in the

mobile communications arena. The newly-formed company won the most iF design

awards in 2006, and also won many design awards in Germany's reddot competition.

1.6 Mobile Handset Market in India

The cell phones industry has shown a remarkable growth in the last decade. In 1989 the

number of its subscribers was zero in India. India’s love affair with cell phones started in

the mid-1990s, as the mobile revolution took hold and India had just 10 million mobile

and landline connections. Delhi was the first state to launch cell phones in India. Growth

then soared in the last four years due to regulatory change and falling costs of calls and

handsets. India’s wireless market is a test bed for alternative infrastructure, handsets,

billing systems, business models and marketing strategies that will likely prove

applicable to other developing countries.

On a numerical basis, India is the biggest growth market adding about 6 million cell

phones every month. CAGR for mobile phones is 86% in India. It is one of the fastest

growing mobile markets in the world; in April 2006 mobile subscriber base crossed 100

million mark. This has been accomplished by rethinking handsets, network infrastructure,

enhanced services and content. More than two-third of mobile subscriptions are with

12

GSM operators and rest with CDMA. India has one of the lowest mobile phone tariffs in

the world resulting in low Average Revenue per User (ARPU) of 9.04 USD per year

(CDMA 5.74 USD and GSM 8.89 USD).

Indian land area covered by mobile networks is approx 30%. CAGR of Mobile Market

Value for 2004- 2009 is 36.9%.With 156.31 million cell phones; teledensity in the

country is still low at 17.45%. Fewer than eight in every 100 Indians use mobiles,

compared with China's 30 per cent. In India, about 13 percent of people have cell phones

which has increased from 8% in 2005 and is expected to reach 40 percent within a few

years. A lack of investment in the infrastructure needed to support landline services

means there are only 50 million fixed-line users in the country, leaving the stage set for

mobile operators. India is expected to have the third largest mobile user base, behind

China and the US, by the year end and will become the second largest market of mobile

handsets by 2010. Indian cellular market would account for 11% of the overall Asia

Pacific and Japan market by 2009 and is expected to reach 500 million subscribers by end

of 2010 with CAGR of 33.7% for 2004- 2010.

Fig. 1.1 India’s mobile subscriber base

13

1.7 Major players in India

The major players in the handsets segment in India include Nokia, Motorola, Sony

Ericsson, Samsung, LG, Philips, Panasonic, Bird, Sagem and BenQ. Nokia has retained

the top slot in Indian market with 70 % share, while US giant Motorola has 15 % share

and Sony Ericsson has gained around 8% share this year. Samsung has 5% share and LG

has 1.8% share.

Fig. 1.2 market share in percentage of the mobile phone players in India

market share %

70

15

8 5 1.8 0.02

nokia motorola sony ericsson samsung LG others

1.8 Consumer Buying Behavior

Every body in the world is the consumer. Each of us buys and sells or consumes goods

and services in the life. Consumer behavior is very complex and is determined to a large

extent by social and psychological factors. Consumer behaviour can be defined as those

acts of individuals directly involved in obtaining, using and disposing of economic goods

and services.

The relevance and importance of understanding consumer behaviour is rooted in the

modern marketing. The needs of not even two consumers are the same. Therefore, they

buy only those products and services, which satisfy their wants and desires. To survive in

the market, a firm has to be constantly innovating and understand the latest consumer

needs and tastes it will be extremely useful in exploiting marketing opportunities and in

14

meeting the challenges that the Indian market offers. A study of consumer behaviour is

significant for regulating consumption of goods and thereby maintaining economic

stability. Within the broad framework of marketing, the area that entices the most

researchers is the study why a consumer behaves in a particular way. The complexity of

the behavior, however, varies with the nature of the product and the need, which it is

required to satisfy. The study of consumer behavior is the study of how individuals make

decisions to spend their available resources on consumption of related items.

Consumer behavior is an applied discipline. Its application exists at two different levels

of analysis. One is at the micro level perspective and other at the macro level perspective.

Micro level seeks application of the knowledge faced by the individual, firm or an

organization. The macro perspective applied knowledge of consumer includes the

aggregate level of problem faced by large groups or by society as a whole.

Consumer behavior provides a sound basis for identifying and understanding consumer

needs. It is the act of the individuals directly involved in obtaining and using economic

goods and services.

The study of consumer behavior is an essential component of marketing. The adoption of

marketing concept by the marketers provides the impetus for the study of consumer

behavior.

Incase of New Product Introduction in the market, there is a risk of product failure. To

increase the chances of success of new products, better information of the consumer

behavior is required. Their desires, tastes and preferences are to be taken care of. So from

all these aspects the study of consumer behavior is important.

1.9 About the Project

The importance of cell phones goes way beyond the ability to make or receive phone

calls. Today's technically advanced cell phones can perform as many or even more tasks

15

than a home computer. They are capable of internet access, sending and receiving photos

and files, storing data, to name just a few of the available options. So a question arises as

to why different people choose different brands and what are the features they look for

while purchasing a mobile handset.

Hence a study was undertaken in Ludhiana city among the mobile phones owners.

Known as the "Manchester of India", Ludhiana is a major industrial and educational

center of northern India, and is the crossroads of many different cultures.It provides a

scope to understand the consumers buying behavior towards the mobile hand sets. The

increasing importance of cell phones has made them almost a necessity for most people.

Mobile penetration is on rise. It has even exceeded landline connections. Since various

brands of mobile phones are in the market for quite a long time, their performance

provides sufficient data for study. The results of the study would give the mobile

manufacturing companies an insight about the preferences of the consumers and also

their expectations from the mobile phones. This would help the companies to understand

the potential of the market and target the right consumers.

1.10 Objectives of the study are:

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

mobile hand set.

2. To know which features in a particular brand are preferred by the mobile phone

users.

3. To find out what additional features are demanded by consumers.

4. To study the satisfaction level of mobile phone users.

16

2 Review of Literature

Business Today (May 3, 09) In India the number of mobile subscribers

will crooss 400 million ,making it the world’s second largest markrt.next

revolution, the mobile phones has moved from being a simple

communication tool to an all round entertainment & informmation

devices. Services are being enabled increasingly by more & more

powerful processors onboard mobile devices. 10% of the 1.2 billion

handsets sold in 2008 as smartphones.

The Economics Times (Apr 2008) B K Modi controlled Spice Mobiles today

launched the first Indian branded 3G and CDMA200 handsets in

technological collaboration with Qualcomm and said it is targeting half a

million of these handset sales in the current fiscal. We aim to sell four

million standard handsets in the current fiscal and target half a million 3G

handsets sales separately", Spice Mobiles Vice President Dilip Modi said.

C-810 (the CDMA enabled handset) is priced at Rs 6500 while the GSM

3G handset is priced at Rs 8500.

Informa Telecoms and Media (Mar. 09) predicts the global mobile

market is expected to add more than 1 billion subscribers and reach

almost 3 billion overall or 43 percent penetration by the year 2010. While

Asia, the Middle East and Africa will experience the highest growth rates,

Informa reports "several countries are already reporting penetration rates

of over 100% and Western Europe's regional penetration is set to breach

17

100% in a couple of years."

Indian Cellular Association (March 09). says that a record addition of 15

million new telecom subscribers in January 2009 has cheered the mobile

handset market. After a lacklustre 2008 when the Indian cellphone market

saw near flat sales growth, the handset turf has grown 10% in January,

claims the apex national body of handset vendors.

Strategy Analytics offered their thoughts on the potential global mobile

market, predicting the "worldwide cellular user base will increase from 1.7

billion at the end of 2005 to 2.5 billion by the end of 2010, a 38 percent

penetration rate."

Union Budget 2008-09 , Mobile phone users would now have to shell out

more money for buying new handsets, with the government proposing to

levy one per cent excise duty on them.

Phil Kendall at Strategy Analytics, commented, "Voice usage will

increase from 5.6 trillion minutes in 2005 to 12.6 trillion in 2010. GSM-

based systems will continue to dominate the cellular landscape,

accounting for 81 percent of subscribers and 76 percent of service

revenues in 2010, though CDMA's more rapid evolution to 3G will see it

dominate 3G subscriber volumes in the medium term. "

Sony-Ericsson has emerged as the top company for the second

consecutive year in overall satisfaction by mobile handset users, edging

18

out market leader Nokia and Motorola, according to a survey. Motorola is

No 2 on overall satisfaction score, displacing Nokia to the third place.

Source : http://economictimes.indiatimes.com/articleshow/2827028.cms

DoT to Telcos (Oct 08) Concerned over security lapses in the use of cell phones

without proper security codes, government has asked mobile operators to strictly

ensure that calls are not processed on such handsets that cannot be tracked by

sleuths. The security code known as International Mobile Equipment Identity

(IMEI) is a 15-digit number unique to a mobile handset and this can help in

tracking or blocking of the mobile phones.

Juniper Research estimates the "total mobile subscriber market will

reach 2.7 billion by 2010 and that shipments of handsets will break the 1

billion mark by 2009 on the back of emerging Asia Pacific markets and

increasing replacement rates in mature markets. 3G subscribers are

predicted to grow from 30 million in 2004 to over 300 million by 2010."

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Chapter 3

RESEARCH METHODOLOGY

This chapter describes the research methodology adopted to achieve the objectives of the

study. It includes the scope of the study, research design, collection of data, analysis of

data and limitations of the study.

3.1 Scope of the study

The scope of the study is to get the first hand knowledge about the buying

behavior of consumers towards different brands of mobile handsets in Ludhiana city. The

scope is restricted to study the factors affecting the preference of consumers while

choosing a mobile handset in Ludhiana city only. This is done to avoid perceptual bias

and for providing objectivity to the study.

3.2 Research Design

The research design constitutes the blueprint for the collection, measurement and

analysis of data. It is the strategy for a study and the plan by which the strategy is to be

carried out.

The research design of the project is descriptive as it describes data and characteristics

associated with the population using mobile phones. Descriptive research is used to

20

obtain information concerning the current status of the phenomena to describe "what

exists" with respect to variables in a given situation.

3.3 Data Collection

3.3.1Primary Data

Primary data is that data which is collected for the first time. It is original in

nature in the shape of raw material. For the purpose of collection of primary data, a well

structured questionnaire was framed which was filled by the respondents. The

questionnaire comprises of close ended as well as open ended questions. In close ended

questions dichotomous, ranking, likert’s scale, checklist questions and multiple choice

questions are used.

3.3.2Secondary Data

Secondary data is the data which is already collected by someone. They are

secondary in nature and are in shape of finished product. Secondary data was collected so

as to have accurate results. Required data was collected from various books, magazines,

journals and internet.

3.4 Sampling Design

Sampling refers to selecting some of the elements in a population by which one can draw

conclusions about the entire population.

3.4.1 Universe

21

Universe is the infinite number of elements which the researcher is targeting in his study.

Since the study is restricted to Ludhiana city the universe for the study consists of all the

mobile phone owners in Ludhaina.

3.4.2 Population

Population is finite number of elements which the researcher is going to target in

particular area. All the mobile phone owners in Ludhiana city form the population for the

study.

3.4.3 Sampling Unit

Sampling Unit is the single unit of the population. A single individual who owns a mobile

phone form the sampling unit of the study.

3.4.4 Extent

Extent refers to the geographical area where there is a scope of population. The extent of

the study is Ludhiana City.

3.4.5 Sampling Technique

The selection of the respondents was done on the basis of convenience technique based

on the non probability method of sampling.

3.4.6 Sample size

Sample size is the size of sample drawn from the population which is the true

representative of the research.

The number of respondents included in the study was 100 for convenience in evaluating

and analyzing the data and because of time constraint.

22

3.5 Data Analysis and Interpretation

For the purpose of analyzing, raw data was summarized in a master table and

from this table the results have been carried out. The questions having multiple/

alternative choices were analyzed by taking percentages. In the case of questions on likert

scale, the mean scores were calculated.

In case of ranking questions the total score has been added and final ranking is

given by calculating mean. In case of checklist questions the average of total no. of

responses was calculated. In case of explanatory questions, the general suggestions were

summarized.

Limitations of the study

Sincere efforts have been made to collect authentic and reliable information from

respondents, however the report is subject to following limitations:

i. Some respondents were reluctant to give the information, so their responses may

be biased.

ii. Time could be a major limitation as it may have affected the inferences drawn in

the study. Only 100 respondents have been contacted due to time constraint.

iii. Sample may not be the true representative of the universe.

iv. Study was conducted in Ludhiana only. So the results of the study may not be

applicable in other areas.

23

CHAPTER 4

ANALYSIS AND INTERPRETATION

This chapter analyse the behavior and preferences of the consumers for various brands of

mobile hand set based on various factors which influence their buying decision.

This chapter therefore deals with analysis and discussions of the project.

Results of the study

Table4.1: Showing number of respondents owing a mobile phone

No. Of Respondents %

Yes 100 100

No 0 0

Total 100 100

Fig.4.1

24

0

10

20

30

40

50

60

70

80

90

100

yes no

Table4.2: Showing different brands of mobiles phones used by the respondents

Brands No. of respondents %

Nokia 69 69

Sony Ericsson 10 10

Motorola 13 13

Samsung 2 2

others 6 6

Total 100 100

Fig.4.2

25

Interpretation:

From the above table and figure, we can conclude that out of 100 respondents 69% have

Nokia hand set,10% have Sony Ericsson , 13% use Motorola ,2% have Samsung. Apart

from these brands 6% of respondents have other brands like LG, Panasonic etc. It’s

evident from the figures that Nokia is most preferred brand of the people in Ludhiana.

Table4.3: Showing respondents using same brand as they had earlier

RESPONSES NO. OF RESPONDENTS PERCENTAGE

Yes 64 64

No 36 36

Total 100 100

Table4.3

26

0

10

20

30

40

50

60

70

yes noresponses

Interpretation:

From the above, it is interpreted that 64% of the respondents had same brand of mobile

hand set earlier while 36% had different brands. Some switched over due to new features

available in other brands and others due to inefficiency in earlier brand. But above figures

conclude that most of the respondents are brand loyal.

Table4.4: Showing reasons for using mobile phone by the respondents

Reasons No. of Respondents %

Business transactions 38 38

Status 37 37

Don’t have landline 5 5

Others 20 20

Total 100 100

27

Fig.4.4

Interpretation:

Above table and figure depict that 38% of respondents use mobile for business

transactions, 37% use it as a status symbol, 5% use mobile because they don’t have

landline connections and 20% of respondents have other reasons like necessity, reducing

communication gap etc.

Table 4.5: Showing the factors considered by respondent while purchasing a mobile

hand set

Factors No. of responses Average

Price 47 0.19

Appearance 48 0.20

Brand 48 0.20

Features 64 0.26

28

Easy to carry/Weight 36 0.15

Total 243 1

Fig.4.5

0.19

0.2

0.2

0.26

0.15 Price

Appearance

Brand

Features

Easy to carry/Weight

Interpretation:

From above it can be concluded that features in a mobile hand set is the most important

factor which is considered by the respondents while purchasing the mobile phone. Brand

and Appearance are the other very important factor influencing the purchase decision.

Price is also an important factor. Easy to carry is the least important factor that is

considered in the purchase decision. It’s clear that people in Ludhiana give maximum

importance to features, appearance and brand of a mobile phone.

Table4.6: Showing the sources which influenced the buying decision of

the respondents

Sources No. of respondents %

Friend 27 27

Family member 37 37

Advertisement 30 30

29

Dealer 6 6

Total 100 100

Fig.4.6

0

5

10

15

20

25

30

35

40

friends family member advertisement dealer

per

cen

tag

e

Interpretation:

From the above table it is concluded that out of 100 respondents, 27% and 37%

respondents purchased the mobile hand set under the influence of their friends and family

member, 25% respondents under the influence of various advertisements, 18%

respondents bought the car on the suggestion of dealer.

Table4.7: Showing different purposes for which mobile is used by the respondents

Diff. Purposes No. of Respondents Average

Receiving/making calls 100 0.34

SMS/MMS 70 0.23

Games 25 0.08

E-mail/Internet 12 0.04

30

Music 50 0.17

Camera 41 0.14

Total 298 1

Fig.4.7

0.34

0.23

0.08

0.04

0.170.14

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

avera

ge

Interpretation:

From the above figures it can be concluded that in spite of using mobile phone for calls

and SMS which are its basic purposes, people of Ludhiana are using them increasingly

for Music and Camera. Using Internet on mobile phones is still not common.

Table 4.8: Showing ranking of various features of mobile handsets by the

respondents according to their preferences

Features Mean scores RankBluetooth 3.29 5th

MP3 Player 3.32 4th

Camera 3.233rd

Data Storage Capacity 3.13 1st

GPRS 4.87 6th

Personal Info. Management 3.16 2nd 31

Fig.4.8

3.293.32 3.23 3.13

4.87

3.16

00.5

11.5

22.5

33.5

44.5

5

mea

n sc

ores

bluetooth mp3player

camera datastoragecapacity

GPRS prsnl infomang.

features

Interpretation:

Since 1 is given to the most preferred feature and 6 to the least preferred feature in a

mobile hand set, therefore from the table, we can conclude that data storage capacity is

the most preferred feature in a mobile hand set. 2nd and 3rd ranks are given to personal

information management and camera in the mobile phone respectively. After them the

features of MP3 player and Bluetooth are given preference. GPRS is the least preferred

feature in the mobile phones. Therefore it’s clear from above that people in Ludhiana

give more preference to the feature of data storage and personal info.management.

Table 4.9: Showing range of price that respondents like to spend on mobile hand set

Range No. of respondents %

Below 5000 11 11

5000-15000 59 59

15000-25000 21 21

Above 25000 9 9

Total 100 100

32

Fig. 4.9

11%

59%

21%

9%

Below 5000

5000-15000

15000-25000

Above 25000

Interpretation:

From above it is interpreted that 59% of respondents prefer to spend between the ranges

of Rs. 5000-15000, 21% between Rs. 15000-25000, 11% above Rs. 25000and 9% below

Rs. 5000. It concludes that mobile phone users here are not price sensitive. Mobile

phones are no longer a status symbol instead they have become a necessity.

Camera Bluetooth Music Player Memory

No. of respondentsNokia 69 62 29 75

Motorola 17 26 17 10

Sony Ericsson 14 12 54 15

Samsung 0 0 0 0

Total 100 100 100 100

Table 4.10: showing features preferred in a particular brand of mobile phone

33

Fig. 4.10

0

10

20

30

40

50

60

70

80

camera bluetooth music player memory

features

no

.of

res

po

nd

en

ts

nokia

motorola

sony ericssson

samsung

Interpretation:

From above table and figure it is concluded that people of Ludhiana prefer Camera,

Bluetooth and Memory features of Nokia and music player of Sony Ericsson. Features of

Motorola are also liked by many respondents but features of Samsung are not at all

preferred by them.

Table 4.11: Showing agreement level of the respondents on various factors

influencing purchase decision

Factors

Strongly

Disagree

-2

Disagree

-1

Neutral

0

Agree

1

Strongly

Agree

2

Mean Score

Repairable -2(3) -1(3) 0(13) 1(41) 2(40) 112/100=1.12

Availability of spare

parts

-2(3) -1(6) 0(20) 1(39) 2(31) 89/100=0.89

34

Proximity to service

provider

-2(2) -1(3) 0(41) 1(40) 2(14) 61/100=0.61

Promotional activities -2(1) -1(15) 0(33) 1(36) 2(15) 49/100=0.49

Fig. 4.11

1.12

0.89

0.61

0.49

0

0.2

0.4

0.6

0.8

1

1.2

Repairable Availability ofspare parts

Proximity toservice provider

Promotionalactivities

mean

sco

res

Interpretation:

From the above table we can conclude that respondents strongly agree with the repairable

factor of a mobile phone, the mean score being 1.12. Respondents are also to a large

extent agreeing with the factor of availability of spare parts and proximity of service

provider but as far as promotional activities are concerned they are neutral towards this

factor.

Table 4.12: Showing satisfaction level of the respondents

No. of Respondents %

Yes 93 93

No 7 7

Total 100 100

35

Fig. 4.12

93%

7%

yes

no

Interpretation:

From the above table, we can conclude that out of 100 respondents, 93% respondents are

satisfied with the performance of their mobile hand set whereas 7% are not completely

satisfied. The main problem faced by them is the battery life of their hand sets. In

general, people in Ludhiana are satisfied with their brand of mobile phone.

Table 4.13: Showing additional features required by the respondents in their mobile

handsets

Features No. of responses Average

WiFi 38 0.26

TV 34 0.23

Video Conferencing 37 0.25

Windows 39 0.26

36

Total 148 1

Fig. 4.13

0.26

0.230.25

0.26 WiFi

TV

Video Conferencing

Windows

Interpretation:

From above table and figure it is concluded that features of WiFi and Windows are more

in demand. TV and Video Conferencing too are considered almost equally important.

Chapter 5

FINDINGS OF THE STUDY

1. Nokia is the most popular and widely used brand by the people of Ludhiana city.

2. Brands like Motorola and Sony Ericsson are also gaining ground with regard to

popularity but they are mostly liked by the young generation.

3. 64% of the respondents used same brand earlier. It shows that most of the population

of Ludhiana is brand loyal.

37

4. But on the other side 36% of response depicts the fact that people constantly switch

from one brand to another on the dearth of new features and advance technology.

5. Mobile phone is no more a status symbol now for the people of Ludhiana city. It has

increasingly become a necessity to reduce communication gap and to maintain

mobility. It has also become an important tool for people specially the working

population to carry business transactions easily and quickly.

6. It is clear from the above that people of Ludhiana give due importance to factors like

features, appearance and brand of mobile phones while making purchase decision.

7. Price comes after the satisfaction of above factors and easy to carry facility is least

considered during purchase decision.

8. It’s clear that people in Ludhiana buy a particular brand of mobile hand sets on the

basis of the positive report about their performance received from their friends and

family members who already own that brand.

9. Advertisements also play an important role in influencing the buying decision of the

people in Ludhiana.

10. Besides receiving and makings calls and SMS people in Ludhiana are also using

mobile for listening music and camera.

11. Use of mobile for games has significantly reduced. And still people are not

accustomed with the use of internet on their mobile phones.

12. As far features of mobile phones are concerned it’s clear from above that people in

Ludhiana give more preference to the features of data storage and personal

information management. GPRS is the least preferred feature in the mobile phones.

13. People in Ludhiana city prefer to spend between Rs. 5000 and Rs. 15000 on a mobile

phone. It again depicts that mobile phones are no longer a status symbol now and has

become necessity.

14. People of Ludhiana city agree that factors like repairability and availability of spare

parts are important to consider while making buying decision for a brand of mobile

phone. But as far as promotional activities are concerned they are neutral towards

this factor.

38

15. Most of the population is satisfied with their existing brands. The main problem

faced otherwise is related to the battery life of a mobile hand set.

16. People in Ludhiana city require additional features of Wi-Fi, Windows, TV and

Video Conferencing in their mobile phones. It depicts that people here are techno

savvy and want to use innovative features.

Chapter 6

CONCLUSION AND SUMMARY

The Mobile phone represents the convergence instrument of the future.It have become a

necessity for many people throughout the world. The ability to keep in touch with family,

business associates, and storing data are only a few of the reasons for the increasing

39

importance of mobile phones. Cell phone manufacturers have produced a wide range of

cell phones, which sell for prices that range from very inexpensive to thousands of

rupees.

The above findings and results reflected the preferences, expectations and satisfaction

level of mobile phones users in Ludhiana. The study would help the companies in

understanding the factors that influence the purchase decision of the consumers and their

expectations from the mobile handsets. The results of the study indicate that mobile

phones are no longer the status symbol for the people of Ludhiana. Brand and features in

a handset are preferred over their prices. People here are techno savvy and require new

innovative features in mobile phones every new day.

Since the study was restricted to the Ludhiana city so the there is need to study more in

other cities to get the clear view of the findings.

APPENDIX

QUESTIONNAIRE

Q1) Do you have a mobile phone?

YES NO

Q2) a) Which brand of mobile hand set do you have? (Please Tick)

40

i. Nokia _______ii. Sony Ericsson _______

iii. Motorola _______iv. Samsung _______v. Any other (please specify) _______

b) Which model ____________

If it is your first mobile phone then skip Q3

Q3a) Did you have the same brand earlier?

YES NO

b) If NO then which brand you had earlier (please specify) ______________

c) Why have you switched from earlier brand to latest one?

i. Advanced technology _______ii. New features _______

iii. Inefficiency in earlier mobile _______iv. Any other( please specify) _______

Q4) Why have you bought the mobile? (Tick one option)

i. Business transactions ________ii. Status ________

iii. Don’t have landline phone ________iv. Any other (please specify) ________

Q5) Which of the following factors you considered while choosing the mobile hand set?(can tick more than one option)

i. Price ________ii. Appearance ________

iii. Brand ________iv. Features ________v. Easy to carry/Weight ________

41

Q6) Who influenced you to buy this brand? (Tick one option)

i. Friend _______ ii. Family member _______

iii. Advertisement _______ iv. Dealer _______v. Any other (please specify) _______

Q7) For which different purposes do you use your mobile? (can tick more than one option)

i. Receiving / making calls ________ii. SMS/ MMS ________

iii. Games ________iv. E-Mail/ Internet ________v. Music ________

vi. Camera ________

Q8) Rank the following features of your hand set according to your preference (rank 1 to most preferred and rank 6 to least preferred)

i. Bluetooth _________ii. MP3 Player/ Video Player _________

iii. Camera _________iv. Data Storage Capacity _________v. GPRS _________

vi. Personal information management _________ ( notes,to-do list,contacts,etc.)

Q9) Tick the range of price you would like to spend on a mobile handset?

i. Below 5000 ________ii. 5000- 15000 ________

iii. 15000- 25000 ________iv. Above 25000 ________

Q10) Out of following tick the picture/ punch line you recognize:

42

___________ ___________ __________

_________ ___________

Nokia Motorola

Sony Ericsson

Samsung

Camera

Bluetooth

Music Player

Memory

Q11) Tick the following features you like in particular brand:

Q 12) Do you agree that following factors must be considered while choosing a brand of mobile hand set?

Strongly Disagree

Disagree Neutral Agree Strongly Agree

Repairable

Availability of spare parts

Proximity to service provider

Promotional activities

43

Q 13) a) Are you satisfied with your existing mobile hand set?

YES NO Ans.

b) If no, then what are the problems faced by you? _______________________________________________________________ _______________________________________________________________

Q 14) What additional features do you want in your mobile handset? (can tick more than one option)

i. WiFi ________ ii. TV ________

iii. Video Conferencing ________iv. Windows ________

Personal Details:Name: _________________Age: _________________Gender: _________________Address: __________________________________

__________________________________Contact No. ____________________

BIBLIOGRAPHY

Next Mobile Revolution, Business Today, May 3,2009 page 42-57

Rural To The Rescue, Business Today ,Aprail 5, 2009, page 46-53

Research Methology by C. R. Kothari

Selveraj et al, “Study on consumer behaviour towards cell phone users in Thupookudi

City”, Indian journal of marketing, Vol. xxxv, No. 5, May2005, Pg. 23-28

44

“T3-tomororw technology today”, Vol.1, Issue 2, Jan. 2007

http://www.wirelessdesignasia.com/article-

8488globalmobilehandsetshipmentgrew17yoy-Asia.html

http://www.forbes.com/feeds/businesswire/2009/04/24/

businesswire123735951.html

“T3-tomororw technology today”, Vol.1, Issue 2, Jan. 2007

http://digital-lifestyles.info/2007/03/05/worldwide-mobile-phone-sales-grow-21-in-2006/

http://www.gartner.com/it/page.jsp?id=501734

http://en.wikipedia.org/wiki/Mobile_phones

http://www.rncos.com/Report/COM02.htm

http://economictimes.indiatimes.com/News/News-By-Industry/Telecom/Mobile-handset-

sales-pick-up-after-drought/rssarticleshow/4180130.cms- 40k- -Cached- Similar

Pages

http://www.dailyindia.com/show/121503.php/India-to-be-second-largest-mobile-market-

by-2010:-Nokia

http://www.zinnov.com/presentation/Mobile_VAS.pdf

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