Escolar Documentos
Profissional Documentos
Cultura Documentos
(Term Project)
Prepared For Professor Dr. Humayun Kabir Chowdhury Course Instructor Marketing Management (MKT 501) Department of Business Administration East West University, Dhaka
Prepared By Section-1, Fall 2011 Name of the Group Members Md. Mesbah Uddin Md. Iftekharul Islam Lalon Karim ID 2010-3-95-078 2010-2-95-047 2008-3-95-053
Letter of Transmittal
December 19, 2011 Dr. Humayun Kabir Chowdhury Professor & Chairman Department of Business Administration Course Instructor- Marketing Management (MKT 501) East West University, Dhaka Subject: Submission of project report on Study of Consumer Attitude toward Mobile Phones.
Dear Sir, Here is the project report on Study of Consumer Attitude toward Mobile Phones as you asked us to prepare for the partial fulfillment of the Marketing Management course. With great pleasure we are submitting this report as an integral part of the course. Working for this report has definitely enriched our knowledge about the Marketing Research, Consumer Buying Process, Development of Competitive Marketing Strategies and writing project reports, which ultimately strengthened our overall understanding of Marketing Management. We are really thankful to you for giving us such a splendid opportunity to present you the report, which is authentically based on team efforts. We appreciate this kind of project work by our heart. We tried to gather a collection of information to make our report specific and coherent, and make the report as reflective as possible. We appreciate to provide any information or clarification if necessary. Thank you for your consideration.
Sincerely Yours, __________________ Md. Mesbah Uddin 2010-3-95-078 __________________ Md. Iftekharul Islam 2010-2-95-047 __________________ Lalon Karim 2008-3-95-053
Acknowledgement
At this opportune moment, at first with the name of Almighty Allah, we are delighted to offer our heartiest thanks and deep gratitude to our course coordinator Prof. Dr. Humayun Kabir Chowdhury, Department of Business Administration, East West University, for his invaluable guidance and continuous encouragement in carrying out the present project in different stages of work. His constructive advice, appropriate opinion and suggestion helped us to avoid confusions and inconsistency. We are also thankful to all the respondents for their spontaneous participation in the survey and giving their thoughtful observation in answering all the twenty four questions presented in the questionnaire. Last but not the least, we are very much grateful to our group members for mutual understanding and open ended support to complete this project work.
Executive Summary
Mobile phone has become an indispensable part of Bangladeshi's everyday-life. Today mobile phone markets are one of the most turbulent markets due to the increased competition and rapid change of technology. Bangladesh has a big market for mobile handset and the industry is expanding quickly. Currently, 57.93% of total population of Bangladesh uses mobile phones. It is also becoming increasingly important in the growth of GDP of the country, with its benefits such as increased employment and wages. Considering all the potential of mobile handset industry in Bangladesh, the objective of this study was to evaluate the consumer attitude formation toward particular mobile phone brand using the Expectancy-Value model. The Expectancy-Value model was used to study consumer attitudes (judgments, preferences) toward various brands through an attribute evaluation procedure. In this study, four brands of mobile handset were considered and consumer preference for mobile brand was determined. The study involves 30 respondents filling a questionnaire incorporating 24 questions to evaluate overall attitude toward the given four mobile phone brands. From the survey findings, attitude toward Nokia is highest and Motorola is lowest. According to the consumer attitude toward mobile brands, Nokia is the market leader, Sony Ericsson is the market challenger, Samsung is the market follower and Motorola is the market nicher. This study can substantially contribute to the theoretical and managerial understanding of consumer attitudes towards mobile handset in Bangladesh. Despite some limitations of this study, mobile handset vendors could consider this analysis as an informative document about their target group, if it is student. Mobile handset vendors should make sure that their future strategies are not made simply on the basis of cost optimization or speed to market. Mobile handset manufacturers should act quickly to build brand equity, manufacturing efficiency, supply chain efficiency, service and other dimensions of value, which will provide points for future competitive advantage. All brands should maintain their brand quality and also offer some incentive to survive in competitive market. Further study on data collected from different strata of people, considering large sample size, could be the recommendation from this work, to overcome the limitations of this study and for greater external validity of the work.
Table of Contents
Title Letter of Transmittal Acknowledgement Executive Summary Table of Contents Chapter One: Introduction Chapter Two: Methodology Chapter Three: Results Chapter Four: Discussion & Concluding Remarks Chapter Research Chapter Six: References Appendix A Appendix B Five: Limitations & Future
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19 20-21 22-25
1.1 Background
Mobile phone has become an indispensable part of Bangladeshi's everyday-life and we never want to leave this device at home while we head for our work. Thanks to the telecom-revolution and its relentless evolution that together have made it possible even in developing country like Bangladesh. This is the dominant device that we now express ourselves through, get our work done and share our pains and pleasures with[1]. A mobile phone (also known as a cellular phone, cell phone and a hand phone) is a device which can make and receive telephone calls over a radio link whilst moving around a wide geographic area[2]. It does so by connecting to a cellular network provided by a mobile network operator. The calls are to and from the public telephone network which includes other mobiles and fixed-line phones across the world. By contrast, a cordless telephone is used only within the short range of a single, private base station. In addition to telephony, modern mobile phones also support a wide variety of other services such as text messaging, MMS, email, Internet access, short range wireless communications (infrared, Bluetooth), business applications, gaming and photography. Mobile phones that offer these and more general computing capabilities are referred to as Smartphone. Mobile phone markets are one of the most turbulent market environments today due to the increased competition and rapid change of technology[3]. The mobile market is also becoming increasingly important in developing countries, with benefits such as increased employment and wages[4]. Bangladesh has a big market for mobile handset industry and the industry is expanding quickly. The population of Bangladesh is 142,319,000 [5] and the total number of active mobile phone subscribers are 82,442,000 [6], i.e. 57.93% of total population use mobile phones. There are many mobile handset brands available in Bangladesh e.g. Nokia, Samsung, Sony Ericsson, Motorola, LG, BenQ Siemens, Alcatel, Panasonic etc and consumers choose their preferred brand from this pool. Research suggests that customers go through a five-stage decision-making process in any purchase [7]. This model (Fig 1.1) is important for anyone making marketing decisions. It forces the marketer to consider the whole buying process rather than just the purchase decision. The model implies that customers pass through all stages in every purchase. However, in more routine purchases, customers often skip or reverse some of the stages.
The buying process starts with need recognition. At this stage, the buyer recognizes a problem or need or responds to a marketing stimulus. An aroused customer then needs to decide how much information (if any) is required. If the need is strong and there is a product or service that meets the need close to hand, then a purchase decision is likely to be made there and then. If not, then the process of information search begins.
Total Set
Nokia Samsung Sony Ericsson Motorola LG BenQ Siemens Alcatel Panasonic . .
Awareness
Nokia Samsung Sony Ericsson Motorola LG BenQ Siemens Panasonic
Set
Consideratio n Set
Nokia Samsung Sony Ericsson Motorola BenQ Siemens
Choice Set
Nokia Samsung Sony Ericsson Motorola
Decision
Fig 1.2: Successive sets (of mobile phones) involved in Consumer Decision Making Through gathering information, the consumer learns about competing brands and their features[8]. The first box in Figure 1.2 shows the total set of brands available to the consumer. The individual consumer will come to know only a subset of these brands (awareness set). Some brands will meet initial buying criteria (consideration set). As the consumer gathers more information, only a few will remain as strong contenders (choice set). The consumer makes a final choice from this set. Figure 1.2 makes it clear that a company must strategize to get its brand into the prospect's awareness set, consideration set, and choice set.
1.2 Objective
The objective of this study is to evaluate the consumer attitude formation towards particular mobile phone brand using the Fishbeins Expectancy-Value model.
Where Ao = the attitude toward some object O, bi = the belief i about O, i.e., the subjective probability that O is related to attribute i, ei = the evaluation of attribute i, and n = the number of beliefs The consumer arrives at attitudes (judgments, preferences) toward various brands through an attribute evaluation procedure. He or she develops a set of beliefs about where each brand stands on each attribute. The expectancy-value model of attitude formation posits that consumers evaluate products and services by combining their brand beliefsthe positives and negativesaccording to importance[8].
ratio) and the distribution of questionnaires within the sample were based on convenience and judgment of their understanding about the subject matter of the survey.
This study considered four mobile phone brands e.g. Nokia, Samsung, Motorola and Sony Ericsson and six attributes, e.g. Brand value/ Quality, Price, Model/Style, Multimedia options & Memory Capacity, Camera & Video Recorder and Web Browser, of each brand. The value of belief strength of all the attributes was in a constant sum scale of one (1.00), which was set by literature review[11, 12] and group discussion (Table 3.1). For collecting data on consumer evaluation of each brands attribute, a survey was conducted. The study involves 30 respondents filling a questionnaire incorporating 24 questions as shown in the Appendix A. From these data, necessary calculations were done following the Fishbeins theory.
Belief strength (bi) of all the attributes were considered in a constant sum scale of one (1.00) and distributed among the six attributes in the following way (Table 3.1). Table 3.1: Belief Strength (bi) of the Attributes Attribute Brand value/ Quality Price Multimedia Options and Memory Capacity Camera and Video Recorder Web Browser Model/Style Belief Strength (bi) 0.30 0.225 0.20 0.15 0.075 0.05
1. 2. 3. 4. 5. 6.
Consumers evaluations (ei) on attributes of each brand were collected by questionnaires (Appendix A & Appendix B) and the average value (Table 3.2) for each attribute was considered for the calculation of attitude towards the brand.
Table 3.2: Consumers evaluation (ei) on attributes (Average value)* Mobile Handset Brand Attribute Multimedia Camera options & & Video Memory Recorder Capacity 4.17 3.83 3.77 3.83 3.93 4.17 3.23 3.23
Price
Web Browser
Model / Style
* Average value calculation can be found in the Appendix B Note: Each attribute is rated from 1 to 5; where 5 represent very good and 1 represent very bad. For price, 5 represent lowest price because consumers prefer a low price to a high price.
Calculation of Attitude:
Fishbeins equation (2.1) for calculating attitude towards the mobile phone brand:
= 4.19
= 3.82
= 3.94
= 3.28
From the results it is evident that attitude toward Nokia is highest and Motorola is lowest. According to the consumer attitude toward mobile brands, Nokia is the market leader, Sony Ericsson is the market challenger, Samsung is the market follower and Motorola is the market nicher.
From the Expectancy-Value model it is known that consumer arrives at attitudes (judgments, preferences) toward various brands through an attribute evaluation procedure. In this study, four brands of mobile handset were considered and consumer preference for mobile brand was determined. From the survey findings, attitude toward Nokia is highest and Motorola is lowest. According to the consumer attitude toward mobile brands, Nokia is the market leader, Sony Ericsson is the market challenger, Samsung is the market follower and Motorola is the market nicher. The average perceived values for each attributes also support the overall attitude formation toward the brand. The highest weight (30%) was given to Brand value/quality and lowest weight (5%) was given to Model/style (Table 3.1). Hence the highest contribution was by brand value/quality, then by price, multimedia options & memory capacity, camera & video recorder subsequently. The result indicates that the leader in the brand value/quality was also the leader in the overall attitude toward brand. Now we can suggest strategies for each of brand based on their market position to maintain or improve competitive market position.
4.1.1 Expanding the Total Market The dominant firm normally gains the most when the total market expands. In general, the market leader should look for new customers or more usage from existing customers. Nokia can consider any of the two strategies to expand its total market. New Customers: Every product class has the potential of attracting buyers who are unaware of the product or who are resisting it because of price or lack
of certain features. Nokia can search for new users among three groups: those who might use it but do not (market-penetration strategy), those who have never used it (new-market segment strategy), or those who live elsewhere (geographical-expansion strategy). More Usage: Usage can be increased by increasing the level or quantity of consumption or increasing the frequency of consumption of Nokia mobile phones. To generate additional usage opportunities, a marketing program can communicate the appropriateness and advantages of using the brand more frequently in new or existing situations and/or remind consumers to actually use the brand as close as possible to those situations.
4.1.2 Defending Market Share While trying to expand total market size, Nokia must continuously defend its current business. The most constructive response to defend market is continuous innovation. Nokia should lead the mobile industry in developing new product and customer services, distribution effectiveness, and cost cutting. Position Defense: Nokia should protect its current market position by position defense; it involves occupying the most desirable market space in the minds of the consumers, making the brand almost impregnable. Flank Defense: Although position defense is important, Nokia should also erect outposts to protect its weakness in attributes e.g. Model/style and camera & video recorder. Model/Style is so important to attract the consumer. According to Freuds, when a person ready to buy any product they react not only to their state of their capabilities but also to shape, size, weight, material and color also. So, Nokia provider should uplift their model/style to remain leader in consistence. Now-a-days camera and video recorder of mobile handset get much popularity in young generation, so Nokia should consider this attribute also. Preemptive Defense: A more aggressive maneuver is to attack before the enemy starts its offense. A company can launch a preemptive defense in several ways. It can wage guerrilla action across the markethitting one competitor here, another there and keep everyone off balance; or it can try to achieve grand market envelopment. Nokia can consider adding completely new attributes and features in its upcoming models. Counteroffensive Defense: Nokia should be ready for any kind of attack by the competitors. When attacked, Nokia can meet the attacker frontally or hit its flank or launch a pincer movement.
4.1.3 Expanding Market Share Nokia can improve their profitability by increasing their market share.
pricing, or location. Nokia does not mind the imitator Samsung as long as the imitator does not attack the leader aggressively.
Adapter:
Samsung can follow the strategy of adapt. The adapter takes the leader's products and adapts or improves them. The adapter may choose to sell to different markets, but often the adapter grows into the future challenger.
Despite some limitations of this study, mobile handset vendors could consider this analysis as an informative document about their target group if it is student. Mobile handset vendors should make sure that their future strategies are not made simply on the basis of cost optimization or speed to market. Mobile handset manufacturers should act quickly to build brand equity, manufacturing efficiency, supply chain efficiency, service and other dimensions of value, which will provide points for future competitive advantage. All brands should maintain their brand quality and also offer some incentive to survive in competitive market.
1.
2. 3. 4.
5.
6.
7.
8. 9.
10. 11.
12.
Moon, R.M., S. Fahmi, and S. Mortuza. Mobile telecom industry in Bangladesh. 2010 [cited 2011 December 3]; Available from: http://www.weeklyblitz.net/988/mobile-telecom-industry-in-bangladesh. Wikipedia. Mobile phone. 2011 [cited 2011 December 3]; Available from: http://en.wikipedia.org/wiki/Mobile_phone. Karjaluoto, H., et al., Factors Affecting Consumer Choice of Mobile Phones: Two Studies from Finland. Journal of Euromarketing, 2005. 14(3): p. 59-82. Chowdhury, H.K., et al., Consumer attitude toward mobile advertising in an emerging market: An empirical study. International Journal of Mobile Marketing, 2006. 1(2): p. 33-42. Bangladesh Bureau of Statistics, Population & Housing Census: Preliminary Results. 2011: Statistics Division, Ministry of Planning, Government of the Peoples Republic of Bangladesh. BTRC. Mobile Phone Subscribers in Bangladesh. [cited 2011 December 3 ]; Available from: http://www.btrc.gov.bd/newsandevents/mobile_phone_subscribers/mobile_ph one_subscribers_october_2011.php. tutor2u. Buyer behaviour - The decision-making process [cited 2011 December 3]; Available from: http://tutor2u.net/business/marketing/buying_decision_process.asp. Kotler, P. and K.L. Keller, Marketing Management. 12 ed. 2006, New Jersey: Pearson Prentice Hall. University of Twente. Expectancy Value Model. 2010 [cited 2011 December 3]; Available from: http://www.utwente.nl/cw/theorieenoverzicht/Theory%20clusters/Interpersona l%20Communication%20and%20Relations/Expectancy_Value_Theory.doc/. Fishbein, M. and I. Ajzen, Belief, Attitude, Intention, and Behavior: An Introduction to Theory and Research. 1975, Reading, MA: Addison-Wesley. Liaogang, H., G. Chongyan, and L. Zian, Customer-based Brand Equity and Improvement Strategy for Mobile Phone Brands: Foreign versus Local in the Chinese Market. International Management Review, 2007. 3(3): p. 76-83. Siddiqui, F.A. and M.S. Awan, Analysis of Consumer Preference of Mobile Phones through the use of Conjoint Analysis. Market Forces, 2008. 3(4).
Appendix A
Consumer Survey Questionnaire
This questionnaire is prepared for collecting data, on consumers value assignment to each attribute of a particular mobile handset brand, for calculating the attitude formation towards particular brand. This project is assigned for the partial fulfillment of Marketing Management course. Instruction: Please give your ratings*, for all the given attributes of four Mobile Phone brands, by circling ONLY ONE number for each attribute. Name of Respondent:. Address:
*Rating Scale Very Good 5 Somewhat Good 4 Neither Good nor Bad 3 Somewhat Bad 2 Very Bad 1
A.
Very Good 5 5 5 5
Somewhat Good 4 4 4 4
1. 2. 3. 4.
5.
6.
How you will rate the Brand value/ Quality of Nokia Mobile Phone? How you will rate the Price of Nokia Mobile Phone? How you will rate the Model/Style of Nokia Mobile Phone? How you will rate the Multimedia Options and Memory Capacity of Nokia Mobile Phone How you will rate the Camera and Video Recorder of Nokia Mobile Phone How you will rate the Web Browser of Nokia Mobile Phone Questions Phone for Samsung Mobile
Somewhat Bad 2 2 2 2
Very Bad 1 1 1 1
B.
Very Good 5 5 5 5
Somewhat Good 4 4 4 4
How you will rate the Brand value/ Quality of Samsung Mobile Phone? 8. How you will rate the Price of Samsung Mobile Phone? 9. How you will rate the Model/Style of Samsung Mobile Phone? 10. How you will rate the Multimedia Options and Memory Capacity of Samsung Mobile Phone 11. How you will rate the Camera and Video Recorder of Samsung Mobile Phone 12. How you will rate the Web Browser of Samsung Mobile Phone 7.
Somewhat Bad 2 2 2 2
Very Bad 1 1 1 1
C.
Very Good 5
Somewhat Good 4
13. How you will rate the Brand value/ Quality of Sony Ericsson Mobile Phone? 14. How you will rate the Price of Sony Ericsson Mobile Phone? 15. How you will rate the Model/Style of Sony Ericsson Mobile Phone? 16. How you will rate the Multimedia Options and Memory Capacity of Sony Ericsson Mobile Phone 17. How you will rate the Camera and Video Recorder of Sony Ericsson Mobile Phone 18. How you will rate the Web Browser of Sony Ericsson Mobile Phone
Somewhat Bad 2
Very Bad 1
5 5 5
4 4 4
3 3 3
2 2 2
1 1 1
D.
Questions Phone
for
Motorola
Mobile
Very Good 5 5 5 5
Somewhat Good 4 4 4 4
19. How you will rate the Brand value/ Quality of Motorola Mobile Phone? 20. How you will rate the Price of Motorola Mobile Phone? 21. How you will rate the Model/Style of Motorola Mobile Phone? 22. How you will rate the Multimedia Options and Memory Capacity of Motorola Mobile Phone 23. How you will rate the Camera and Video Recorder of Motorola Mobile Phone 24. How you will rate the Web Browser of Motorola Mobile Phone
Somewhat Bad 2 2 2 2
Very Bad 1 1 1 1
Appendix B
Appendix B (i): Consumers perceived value (ei) on attributes of Nokia
Respondent No. Brand Value/Quality Price Multimedia options & Memory capacity 4 5 4 4 5 4 4 5 5 4 4 4 3 4 4 3 5 4 3 2 4 4 5 5 4 5 5 4 4 5 4.17 Camera & Video Recorder 2 5 3 3 5 4 3 4 5 4 4 4 3 3 4 3 4 4 4 3 4 4 5 4 4 4 3 5 5 3 3.83 Web Browser Model/Style
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Average
5 5 5 3 5 5 5 5 5 5 5 4 4 5 4 3 5 4 4 4 4 5 5 5 5 5 4 3 5 5 4.53
4 4 5 2 4 4 4 4 5 3 5 3 3 4 4 4 5 3 5 3 4 4 5 4 5 4 5 5 4 4 4.07
5 5 3 2 5 4 5 5 5 4 5 5 4 5 3 3 4 5 3 4 4 4 5 3 5 4 5 4 5 3 4.2
3 5 4 4 5 3 4 4 4 4 4 4 3 4 3 3 4 3 4 4 3 5 5 4 4 4 4 4 4 4 3.90
Price 5 4 5 4 5 4 5 5 4 3 3 4 3 5 4 3 5 3 3 4 4 3 5 4 3 4 5 3 4 4 4
Model/Style 3 3 4 4 5 3 5 5 3 4 3 4 2 3 4 4 5 4 2 4 4 3 4 4 3 4 4 5 4 5 3.8
Price 2 4 4 3 5 4 4 3 2 4 4 4 4 4 3 4 5 3 4 3 3 3 4 4 3 4 4 4 4 4 3.67
Model/Style 3 4 3 4 4 4 5 2 5 4 4 4 4 5 5 4 4 3 4 4 4 3 4 5 5 3 5 5 4 5 4.07
Price 3 3 4 5 4 4 4 4 3 5 3 4 2 3 4 4 5 3 4 4 3 3 4 4 3 4 3 2 3 2 3.53
Model/Style 3 3 5 4 4 2 3 3 3 4 2 3 2 4 3 3 4 4 3 3 4 3 3 3 3 4 5 3 4 3 3.33