RESEARCH PROJECT

ON
STUDY OF COSUMER BUYING BEHAVIOUR
REGARDING THE DIFFERENT BRANDS OF
SMARTPHONE : A STUDY OF SIRSA

Submitted In partial fulfillment of the requirement for the Degree of

MASTER OF BUSINESS ADMINISTRATION

(2015-2016)
Supervisor:
Submitted By:
Mr.Parveen Vashisth
Sharma

Shruti

Assistant Professor
13146220001

Roll no.

Deptt. of Business Admn.

6th Sem.

Chaudhary Devi Lal University,

Sirsa-125055

MBA (5 years)

DECLARATION

Im Shruti Sharma student of MBA 5 year (6th sem), Regd no.

13146220001 studied in Chaudhary Devi Lal University, Sirsa here by
declare that the research entitled STUDY OF COSUMER BUYING

BEHAVIOUR REGARDING THE DIFFERENT BRANDS OF

SMARTPHONE A is an original work and the same has not been
Submitted to any other institute for the award of any other degree.
I have not copied from any other students work or from any
other sources except where due references or acknowledgement is made
explicitly in the text, nor has any part been written for me by another
person. The information submitted in this report is true & original to the
best of my knowledge.

(SHRUTI SHARMA)

GUIDE CERTIFICATE

It is certified that the research project entitled STUDY OF COSUMER

BUYING
BEHAVIOUR
REGARDING
THE
DIFFERENT
BRANDS OF SMARTPHONE A STUDY OF SIRSA submitted by
Shruti sharma in partial fulfillment of the requirement of MBA degree programme has been
carried out under my supervision.
It is further certified that it is a record of bonafide and original work done under my
supervision by the candidate for the award of the said degree.

MR.PARVEEN VASHISTH
(ASSISTANT PROFESSOR)
(DEPARTMENT OF BUSINESS. ADMIN)
(C.D.L.U.SIRSA)

AKNOWLEDGEMENT

I have great pleaure in presenting my research projet entitled STUDY OF COSUMER

BUYING BEHAVIOUR REGARDING THE DIFFERENT BRANDS OF
SMARTPHONE A STUDY OF SIRSA
I take this opportunity to express my deepest gratitue & ineptness to all those who
contribute directly and indirectly their valuable time & assisted me in my research.
I would like to thank all the faculty member for this approval and also special thanks to
my project guide for her valuable guidance & supporting for completing my research work.
Last but not the least I would like to express my sincere thanks to my parents who give me
this opportunity.

(SHRUTI SHARMA)

Table of Contents

Chapter

Particulars

No.
1

Introduction

Review of Literature

Research Methodology

Data Analysis and Interpretation

Results and Findings

Conclusion and Summary

Appendix
Bibliography

Chapter 1
INTRODUCTION

Chapter 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.
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.
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.
Smart rigs were the beginning of smart phones for use in vehicles such as taxicab radios, two
way radios in police cruisers, and the like. A large community of smart radio users, known as
the smarters, popularized the technology that would eventually give way to the smart phone.
The concept of using hexagonal cells for smart 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 smart phone networks was the ARP
network in Finland, launched in 1971.The first hand held smart phone to become
commercially available was the Motorola DynaTAC 8000X, which received approval in
1983. Until the late 1980s, most smart phones were too large to be carried in a jacket pocket,
so they were usually permanently installed in vehicles as car phones. With the advance of
miniaturization and smaller digital components, smart phones got smaller and lighter.

Current scenario
Smart phones have gained a lot of popularity and are the considered to be great multimedia
tools. Smart 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.
Smart phone handsets now have more business-friendly applications that can enhance

anybodys business. With emerging technology, smart phones have become more than
communication devices; they are the tools to stay ahead of competitors and peers in the
present times. Soon smart phones will evolve from communication tools to integrated
communication devices, media terminals, credit cards, and remote controls.
Global smart handset market
Around 90% of world's population have smart phone coverage as of 2015. This figure is
expected to increase to 90% by the year 2013. With the periodic introduction of new features
and multimedia tools in the smart 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 smart handset market due to types of customers, government regulations,
regional/geographical wireless infrastructure, and the purchasing power. Basically, the Asian
market looks at the smart 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 smart handsets and in
coming years they will mainly carry on the global handset sales.

Micromax Corporation is currently the manufacturer of smart telephones. It produces smart

phones for every major market and protocol, including GSM, CDMA, and W-CDMA
(UMTS).The corporation also produces telecommunications network equipment for
applications such as smart and fixed-line voice telephony, ISDN, broadband access, voice
over IP, and wireless LAN.
micromax's Smart Phones division provides the general public with smart voice and data
products across a wide range of smart devices. The division aims to target primarily highvolume category sales of smart phones and devices, with consumers being the most important
customer segment. Micromax believes that design, brand, ease of use and price are
mainstream smart phones' most important considerations to customers. Micromax's product
portfolio includes camera phones with features such as megapixel cameras which appeal to
the mass market.
.

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 smart phone manufacturer in Asia.
Sony is a joint venture established in 2001 by the Japanese consumer electronics company
Sony Corporation and the Swedish telecommunications company Ericsson to make smart
phones. Both companies have stopped making their own smart 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 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.
HTC Corporation, Full name: (High Tech Computer Corporation), is a Taiwanese
multinational

manufacturer

of smartphones andtablets headquartered

in New

Taipei

City, Taiwan. Founded in 1997, HTC began as an original design manufacturer and original
equipment

manufacturer,

designing

and

manufacturing

devices

such

as

mobile

phones, touchscreen phones, and PDAs based on Windows Mobile OS. It was the first Brew
MP market tomobile network operators who were willing to pay a contract manufacturer for
customized products.[4][5] After initially making smartphones based mostly on Windows
Mobile, HTC expanded its focus in 2009 to devices based on Android, and in 2010
to Windows Phone. HTC is also the pioneer in manufacturing the smartphones with Google
Android operating system. As of 2011, HTC primarily releases and markets
its smartphones under the HTC brand, ranking as the 98th top brand on Interbrand's Best
Global Brands 2011 report.[6] A September 2013 media report stated that HTC's share of the
global smartphone market is less than 3 percent. However a report published in April 2015
states that the market share has risen to 7.2 percent due to its strong sales of the HTC One M8
and Desire series. The stock price has fallen by 90 percent since 2011.
BlackBerry is a line of wireless handheld devices (commonly called smartphones) and
services designed and marketed by BlackBerry Limited, formerly known as Research In

Motion Limited (RIM).[1] The very first RIM device was the Inter@ctive Pager 900,
a clamshell-type device that allowed two-way paging, announced on September 18, 1996.
[2]

After the success of the 900, the Inter@ctive Pager 800 was created for IBM, which bought

US$10 million worth of them on February 4, 1998.[3] The next device to be released was the
Inter@ctive Pager 950, on August 26, 1998. The very first device to carry the BlackBerry
name was the BlackBerry 850, an email pager, released January 19, 1999. Although identical
in appearance to the 950, the 850 was the first device to integrate email and the name
Inter@ctive Pager was no longer used to brand the device.
The most recent BlackBerry devices are the BlackBerry Priv, BlackBerry
Passport (original, AT&T version, and Silver edition), BlackBerry Classic, and BlackBerry
Leap, although the BlackBerry Z30 is also still considered one of the 'second generation'
BlackBerry 10 devices. The user interface varies by model; most had featured a
physical QWERTY keyboard, while newer generations have relied on a multi-touch screen
and virtual keyboard.BlackBerry Priv which runs Android, was officially announced in
September and released in November.

Smart 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. Indias love affair with cell phones started in the
mid-1990s, as the smart revolution took hold and India had just 10 million smart 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. Indias
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 smart phones is 86% in India. It is one of the fastest growing smart
markets in the world; in April 2015 smart subscriber base crossed 500 million mark. This has
been accomplished by rethinking handsets, network infrastructure, enhanced services and
content. More than two-third of smart subscriptions are with GSM operators and rest with
CDMA. India has one of the lowest smart 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 smart networks is approx 60%. CAGR of Smart Market Value for
2009- 2013 is 36.9%.With 156.31 million cell phones; teledensity in the country is still low at
17.45%. Now (2016) india covered area by smartphone approx 80%. Fewer than eight in
every 100 Indians use smarts, compared with China's 30 per cent. In India, about 43 percent
of people have cell phones in 2012 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 smart operators. India
is expected to have the third largest smart user base, behind China and the US, by the year
end and will become the second largest market of smart handsets by 2010.

Consumer Buying Behavior

Introduction:
Everybody 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 behavior 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 behavior 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 meeting the challenges
that the Indian market offers. A study of consumer behavior 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.
In case 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.
What influences consumers to purchase products or services? The consumer buying process
is a complex matter as many internal and external factors have an impact on the buying
decisions of consumers. Consumers do not spend much time thinking about the purchase of
low value products which are bought on impulse. Manufacturers of such products will need
to implement strategies that encourage consumers to buy on impulse from them instead of
their competitors. When consumers purchase high value products or non impulse products,
they often go through a set process. This process is discussed below. On the next page there is
a discussion of what influences consumer buying behaviour and the different types of buying
behaviour.

Problem or Need Recognition:

How do you decide which particular product or service to purchase? It could be that your
Blu-Ray DVD player stops working and you now have to look for a new one; otherwise you

will not be able to play your Blu-Ray films so you have a problem or a new need. This is the
first step in the consumer buying process.
Information search:
So we have a problem, our Blu-Ray player no longer works and we need to buy a new one.
What is the solution? Yes go out and purchase a new one, but which brand? Shall we buy the
same brand as the one that blew up? Or stay clear of that just in case the new player
experiences the same problems as the old one? Consumer often go on an information search
to help them choose their product. Sources of information include family, friends, retail staff
and in this digital age the internet. The internet contains information about products
(specifications), product reviews and online product forums. Information search may involve
a visit to a retail store to view products that the consumer is interested in puchasing. In our
example the consumer is on an information search to solve an immediate problem; they
intend to make a purchase at the end of the process. Consumers also acquire and store
information for future purchases. Firms will take such consumers into account when
designing their marketing strategies, in the hope that when such a consumer is ready to buy
they will use the "stored" information about their product into account and buy their products.

sEvaluation of different purchase options:

So what Blu-Ray DVD player do we purchase? Will it be a Sony, Toshiba or Samsung

player? Consumers often create a point system in their minds where products are scored
based on how many of their features appeal to them. So for one customer, brand may be more
important than price and for another customer product appearance may be important. In the
case of a DVD player consumers may be reviewing sound and picture quality. An evaluation

system is particularly useful when there are a large number of options. Marketing strategies
will try and influence this stage of the process by highlighting product features that they think
will appeal to consumers. Appealing product features will be emphasised on product
packaging, promotional materials and the manufacturer's websites.

Purchase decision:

After the evaluation process consumers will select the product they would like to purchase.
Once product may be a clear winner or the consumer may have to reprioritise their criteria to
help them select a product. The job of the seller is to ensure that the purchase process is
simple and effective. Even at this stage the purchaser could change their mind and select a
competitor product or cancel the purchase altogether. A long queue, impolite sales staff or
complicated sales process can all dissuade consumers from buying. Even if a consumer buys
on this occasion a negative buying experience could stop them buying in the future. Therefore
sellers need to make the buying process as simple and enjoyable as possible to safeguard this
and future purchases.

Post Purchase Behaviour:

Ever have doubts about the product after you purchased it? Research shows that this feeling
is common post purchase behaviour. Manufacturers of products clearly want purchasers to
feel proud of their purchase, so that they will purchase from them again and recommend them
to family and friends. It is therefore just as important for manufacturer's promotions to
reassure purchasers, as it is for them to attract new customers. Promotions should make
purchasers feel that they have bought their product from a strong and reputable organisation
with "good" products.

Types of Consumer Buying Behaviour

Types of consumer buying behaviour are determined by:

Level of Involvement in purchase decision. Importance and intensity of interest in a

product in a particular situation.

Buyers level of involvement determines why he/she is motivated to seek information

about a certain products and brands but virtually ignores others.

High involvement purchases--Honda Motorbike, high priced goods, products visible to

others, and the higher the risk the higher the involvement. Types of risk:

Personal risk

Social risk

Economic risk

The four type of consumer buying behaviour are:

Routine Response/Programmed Behaviour--buying low involvement frequently

purchased low cost items; need very little search and decision effort; purchased
almost automatically. Examples include soft drinks, snack foods, milk etc.

Limited Decision Making--buying product occasionally. When you need to obtain

information about unfamiliar brand in a familiar product category, perhaps. Requires a
moderate amount of time for information gathering. Examples include Clothes--know
product class but not the brand.

Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or

infrequently bought products. High degree of economic/performance/psychological
risk. Examples include cars, homes, computers, education. Spend alot of time seeking
information and deciding.Information from the companies MM; friends and relatives,
store personnel etc. Go through all six stages of the buying process.

Impulse buying, no conscious planning.

The purchase of the same product does not always elicit the same Buying Behavior. Product
can shift from one category to the next. For example: Going out for dinner for one person
may be extensive decision making (for someone that does not go out often at all), but limited
decision making for someone else. The reason for the dinner, whether it is an anniversary
celebration, or a meal with a couple of friends will also determine the extent of the decision
making.

Factors influencing the behaviour of buyers:

Consumer behaviour is affected by many uncontrollable factors. Just think, what influences
you before you buy a product or service? Your friends, your upbringing, your culture, the
media, a role model or influences from certain groups?
Culture is one factor that influences behaviour. Simply culture is defined as our attitudes and
beliefs. But how are these attitudes and beliefs developed? As an individual growing up, a
child is influenced by their parents, brothers, sister and other family member who may teach
them what is wrong or right. They learn about their religion and culture, which helps them
develop these opinions, attitudes and beliefs (AIO). These factors will influence their
purchase behaviour however other factors like groups of friends, or people they look up to
may influence their choices of purchasing a particular product or service. Reference groups
are particular groups of people some people may look up towards too that have an impact on
consumer behaviour. So they can be a singer like the Lady Gaga or your immediate family
members. Opinion leaders are those people that you look up to because your respect their
views and judgements and these views may influence consumer decisions. So it maybe a
friend who works with the IT trade who may influence your decision on what computer to
buy. The economical environment also has an impact on consumer behaviour; do consumers
have a secure job and a regular income to spend on goods? Marketing and advertising
obviously influence consumers in trying to evoke them to purchase a particular product or
service.
People's social status will also impact their behaviour. What is their role within society? Are
they Actors? Doctors? Office worker? And mothers and fathers also? Clearly being parents
affects your buying habits depending on the age of the children, the type of job may mean
you need to purchase formal clothes; the income which is earned has an impact. The lifestyle
of someone who earns 250000 would clearly be different from someone who earns 25000.
Also characters have an influence on buying decision. Whether the person is extrovert (out
going and spends on entertainment) or introvert (keeps to themselves and purchases via
online or mail order) again has an impact on the types of purchases made.
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 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 smart handset.
Hence a study was undertaken in IBMR College among the smart phone user students. It
provides a scope to understand the consumers buying behavior (especially students) towards
the smart handsets. The increasing importance of cell phones has made them almost a
necessity for most people. Smart penetration is on rise. It has even exceeded landline
connections. Since various brands of smart 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
smart manufacturing companies an insight about the preferences of the consumers and also
their expectations from the smart phones. This would help the companies to understand the
potential of the market and target the right consumers

Objectives of the study are:

1. To examine the factors those influence the customer choice while purchasing a smart
hand set.
2. To know which features in a particular brand are preferred by the smart phone users.
3. To find out what additional features are demanded by consumers.
4. To study the satisfaction level of window or smart phone users.
5. To study the customer preference toward operating system (window ,android, or ios)

CHAPTER-2
Review of literature

Review of literature
Consumer Behaviour by Bitta and Della: The authors proposed that consumer behaviour
studies play an important role in deciding marketing segments and marketing strategies. The
authors recommended that consumer is often studied because certain discussions are
significantly affected by their behaviour or expected. For this reason such consumer
behaviour is said to be an applied discipline. Such applications can exist at two levels of
analysis. Market segmentation, consumer decision making and buying behaviour is
considered as core marketing activities in designing effective marketing strategies.
Consumer Behavior by C. Lovelock and J. Writz: The book emphasised on services
marketing as a broad area and places marketing issues within a broader general management
context while offering a balanced focused on close ties that link marketing, operations and
human resource marketing. It also relates the understanding of consumer behaviour function
to develop appropriate marketing strategy. Service triangle, feature of services and service
marketing strategies are discussed in this book with detailed explanation of service quality
model.

Consumer Behaviour by Hawkins, Best, Coney and Mokherjee: The authors of the book
discussed various factors affecting consumer behaviour for buying such as demographic and
social influences (family and household), group influence, impact of advertising and internal
influences (learning, perception, attitude etc.). The book elucidated the topics such as types of
consumer decisions, purchase involvement and product involvement. The book also
emphasized on information search process and various ways for providing relevant
information to the consumers are recommended in this study. The book also emphasized on
individual judgment and proposed that the ability of an individual to distinguish between
similar stimuli is called sensory discrimination which could involve many variables related to
individual preferences.1
Consumer Behavior by Karunik and Schiffman: The book highlights dynamic business
environment is turbulent as never before and the service industry as promising as never
before. In this era of intense competition companies understand the customer is the king in
the market and success depends a lot on the efficiency of the managers in delivering the
promised product or services. The responsibility lies on the organisations to develop a
culture, ethics, responsibility, value and quality services should be offered to achieve higher
level of customer satisfaction. Dynamic consumer behaviour is required to analyse various
factors affecting consumer purchase decision directly or indirectly.

Consumer Behaviour by Leslie Lazar and Schiffman: The authors suggested consumer
behaviour as individual differs as from group. The family decision for a purchase decision is
entirely different from individual decision making. The authors discussed various variables
that affect consumer purchase decision. The book focused on family life cycle and various
needs of consumer during different life stages. The family decision making process as a
group decision making is elaborated and it is recommended to segment the market according
to family need hierarchy.2
The micro perspective involves understanding consumers for the purpose of helping a firm or
organisation to accomplish its objectives. On the other hand macro or societal perspective
consumers collectively influence economic and social conditions within an entire society. The
authors discussed factors affecting consumer behaviour at micro and macro level for making
a purchase decision.3

Consumer Behavior by Lovelock: The book is emphasised on advancements and challenges

in services marketing. The book discussed role of consumer in designing services, delivering
and performing quality service to the consumers for deriving customer satisfaction. The book
focused on complexity of designing service marketing strategies and establishing service
standards. Various threats and challenges in designing service marketing strategies have been
discussed with required solutions in turbulent marketing situations. 8
Consumer Behavior by Zeithaml and Bitner: The book emphasised on various ingredients
of services marketing such as consumer behaviour in services, services designs and standards,
delivering and performing service and managing service promises. The book focused on
various challenges and issues of service marketing, the GAPS model of service quality and
customer defined service standards. The book discussed service quality models and service
preference models in detail. The book also recommended uniformity in quality standards
should be implemented.

Chapter 3
RESEARCH METHODOLOGY

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.

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 smart handsets.
The scope is restricted to study the factors affecting the preference of
consumers while choosing a smart handset .This is done to avoid
perceptual bias and for providing objectivity to the study.

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 smart phones.
Descriptive research is used to obtain information concerning the current
status of the phenomena to describe "what exists" with respect to
variables in a given situation.

Data Collection
Primary 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, checklist questions and multiple choice questions
are used.
Secondary 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.
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 50 for convenience

in evaluating and analyzing the data and because of time constraint.

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 50 respondents have been
contacted due to time constraint.

iii.

Sample may not be the true representative of the universe.

iv.

Study was conducted in SIRSA only. So the results of the study may
not be applicable in other areas.

Chapter 4
ANALYSIS AND INTERPRETATION

ANALYSIS AND INTERPRETATION

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

Table3.1: Showing number of respondents owing a smart phone

No. Of Respondents

Yes

50

100

No

Total

50

100

Fig.3.1

100
90
80
70
60
percentage
50
40
30
20
10
0

Yes

No

Table3.2: Showing different brands of smarts phones used by the

respondents

Brands
Micromax
Sony Ericsson
Motorola
Samsung
LG
Others
Total

Fig.3.2

No. of respondents
31
3
6
4
2
4
50

%
62
6
12
8
4
8
100

Others; 8%
LG; 4%
Samsung; 8%

Motorola; 12%
Nokia; 62%
Sony Ericsson; 6%

Interpretation:
From the above table and figure, we can conclude that out of 50
respondents 62% have Micromax hand set,6% have Sony, 12% use
Motorola ,8% have Samsung, 4% have LG. Apart from these brands 8% of
respondents have other brands like Spice, Micromax, Panasonic etc. Its
evident from the figures that Micromax is most preferred brand of the
students in IBMR College.

Table3.3: Showing respondents using same brand as they had earlier

RESPONSES

NO. OF RESPONDENTS

PERCENTAGE

Yes

32

64

No

18

36

Total

50

100

Table3.3

Interpretation:
From the above, it is interpreted that 64% of the respondents had same
brand of smart 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.

Table3.4: Showing reasons for using smart phone by the respondents

Reasons
Communication
Status
Dont have landline
Others
Total

Fig.3.4

No. of Respondents
19
18
3
10
50

%
38
36
6
20
100

Others; 20%
Communication; 38%

Dont have landline; 6%

Status; 36%

Interpretation:
Above table and figure depict that 38% of respondents use smart for
communication, 36% use it as a status symbol, 6% use smart because
they dont have landline connections and 20% of respondents have other
reasons like necessity, games, music etc.

Table 3.5: Showing the factors considered by respondent while

purchasing a smart handset

Factors

No. of responses

Average

Price

23

0.19

Appearance

24

0.20

Brand

24

0.20

Features

32

0.26

Easy to carry/Weight

18

0.15

Total

121

Fig.3.5

Interpretation:
From above it can be concluded that features in a smart hand set is the
most important factor which is considered by the respondents while
purchasing the smart 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. Its clear that students at IBMR give
maximum importance to features, appearance and brand of a smart
phone.

Table3.6: Showing the sources which influenced the buying decision of

the respondents

Sources

No. of respondents

Friend

18

36

Family member

18

Advertisement

15

30

Dealer

16

Total

50

100

Fig.3.6

Friend

Family member

Advertisement

Dealer

16%
37%
30%
17%

Interpretation:
From the above table it is concluded that out of 50 respondents, 36% and
18% respondents purchased the smart hand set under the influence of
their friends and family member, 30% respondents under the influence of
various advertisements, 16% respondents bought the car on the
suggestion of dealer.

Table3.7: Showing different purposes for which smart is used by the

respondents

Diff. Purposes
Receiving/making calls
SMS/MMS
Games
E-mail/Internet
Music
Camera
Total

No. of Respondents
50
35
13
12
25
20
155

Average
0.34
0.23
0.08
0.04
0.17
0.14
1

Fig.3.7

Interpretation:
From the above figures it can be concluded that in spite of using smart
phone for calls and SMS which are its basic purposes, Students of IBMR
are using them increasingly for Music and Camera. Using Internet on
smart phones is still not common.
Table 3.8: Showing ranking of various features of smart handsets by the
respondents according to their preferences
Features
Bluetooth

Mean scores
3.29

Rank
5th

MP3 Player

3.16

2th

Camera

3.23

Data Storage Capacity

GPRS
Personal Info.
Management

3.13
4.87
3.32

3rd
1st
6th
4nd

Fig.3.8
6
5
4
3
2
1
0
mean score

Interpretation:
Since 1 is given to the most preferred feature and 6 to the least preferred
feature in a smart hand set, therefore from the table, we can conclude
that data storage capacity is the most preferred feature in a smart hand
set. 2nd and 3rd ranks are given to MP3 player and camera in the smart
phone respectively. After them the features of personal information
management and Bluetooth are given preference. GPRS is the least
preferred feature in the smart phones. Therefore its clear from above that
students of IBMR give more preference to the feature of data storage and
MP3 player.

Table 3.9: Showing range of price that respondents like to spend on

smart hand set

Camera
Bluetooth
Music Player
Range
No. of respondents
No.
Below 5000
16 of respondents
Micromax
34
31
15
5000-10000
20
10000-15000
11
Motorola
9
13
8
Above 15000
3
SonyTotal
7
5
27
50
Ericsson
Samsung
0
0
0
Total

50

50

Memory
%
32
37
40
22
5
6
8
100

50

0
50

Fig. 3.9

7%
32%

22%

below 5000
5000-10000
10000-15000

39%

above 15000

Interpretation:
From above it is interpreted that 39% of respondents prefer to spend
between the ranges of Rs. 5000-10000, 22% between Rs. 10000-15000,
7% above Rs. 15000and 32% below Rs. 5000. It concludes that smart
phone users here are price sensitive. Smart phones are no longer a status
symbol instead they have become a necessity.
Table 3.10: showing features preferred in a particular brand of smart
phone

Fig. 3.10

35
30
25
20
15
No. of respondents

Nokia

10

Motorola

Sony Ericsson

Samsung

features

Interpretation:
From above table and figure it is concluded that students of IBMR prefer
Camera, Bluetooth and Memory features of Micromax and music player of
Sony Ericsson. Features of Motorola and Samsung are also liked by some
respondents but features of LG are not at all preferred by them.

Table 3.11: Showing agreement level of the respondents on various

factors influencing purchase decision
Strongl

Disagr

Neutr

ee

al

Factors

Disagre

Repairable

e -2
-2(2)

-1
-1(1)

Availability of

-2(2)

Agree

Strong

Mean

ly

Score

Agree

0
0(6)

1(21)

2
2(20)

56/50=1.12

-1(3)

0(10)

1(20)

2(15)

44/50=0.88

-2(1)

-1(2)

0(21)

1(19)

2(7)

31/50=0.62

-2(1)

-1(7)

0(16)

1(18)

2(8)

24/50=0.48

spare parts
Proximity to
service provider
Promotional

activities

Fig. 3.11
1.2
1
0.8
0.6
0.4
0.2
0
mean score

Interpretation:
From the above table we can conclude that respondents strongly agree
with the repairable factor of a smart 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 3.12: Showing satisfaction level of the respondents

No. of Respondents

Yes

46

92

No

Total

50

100

Fig. 3.12

9%

Yes
No
91%

Interpretation:
From the above table, we can conclude that out of 50 respondents, 92%
respondents are satisfied with the performance of their smart hand set
whereas 8% are not completely satisfied. The main problem faced by
them is the battery life of their hand sets. In general, students of IBMR
are satisfied with their brand of smart phone.

Table 3.13: Showing additional features required by the respondents in

their smart handsets

Features
Wi-Fi
TV
Video Conferencing
Windows
Total

Fig. 3.13

No. of responses
19
17
18
19
73

Average
0.26
0.23
0.25
0.26
1

26%

26%

25%

23%

WiFi
TV
Video Conferencing
Windows

Interpretation:
From above table and figure it is concluded that features of Wi-Fi and
Windows are more in demand. TV and Video Conferencing too are
considered almost equally important.

Chapter 5
FINDINGS

FINDINGS OF THE STUDY

1. Micromax is the most popular and widely used brand by students of

IBMR.
2. Brands like Motorola and Sonyare also gaining ground with regard to
popularity but not like Micromax.

3. 64% of the respondents used same brand earlier. It shows that most of
the smart users of IBMR are brand loyal.
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. Smart phone is no more a status symbol now for the students of IBMR.
It has increasingly become a necessity to reduce communication gap
and to maintain mobility.
6. It is clear from the above that students of IBMR give due importance
to factors like features, appearance and brand of smart 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. Its clear that people in students of IBMR purchase a particular brand
of smart handsets 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.
10.

Besides receiving and makings calls and SMS students of IBMR are

also using smart for listening music and camera.

11.

Use of smart for games has significantly reduced. And still people

are not accustomed with the use of internet on their smart phones.
12.

As far features of smart phones are concerned its clear from above

that students of IBMR give more preference to the features of data

storage, MP3 and Camera. GPRS is the least preferred feature in the
smart phones.
13.

Students of IBMR prefer to spend between Rs. 5000 and Rs. 10000

on a smart phone. It again depicts that smart phones are no longer a

status symbol now and has become necessity.
14.

Students of IBMR agree that factors like reparability and availability

of spare parts are important to consider while making buying decision

for a brand of smart phone. But as far as promotional activities are

concerned they are neutral towards this factor.
15.

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

main problem faced otherwise is related to the battery life of a smart

hand set.
16.

Students of IBMR require additional features of Wi-Fi, Windows, TV

and Video Conferencing in their smart phones. It depicts that people

here are techno savvy and want to use innovative features.

Chapter 6
CONCLUSION

CONCLUSION AND SUMMARY

The Smart 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 importance of smart
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 smart phones users in IBMR Collage, Pune. The
study would help the companies in understanding the factors that
influence the purchase decision of the consumers and their expectations
from the smart handsets. The results of the study indicate that smart
phones are no longer the status symbol for the students of IBMR. Brand
and features in a handset are preferred over their prices. People here are
techno savvy and require new innovative features in smart phones every
new day.
Since the study was restricted to the IBMR Collage only so the there is
need to study more in other places of city to get the clear view of the
findings.

QUESTIONNAIRE

QUESTIONNAIRE

Personal Details:

Name:

_________________

Age:

_________________Gender:

_________________

Occupation ____________________

Income

:
a) 15,000-below

b) 15,000 25,000

c) 25,000 35,000

d) 35,000 above

Q1) Do you have a smartphone?

YES

NO

Q2) a) Which brand of smartphone do you have? (Please Tick)

i. Micromax
ii.
Sony
iii.
Apple
iv.
Samsung
v. Htc
vi.
Any other

Blackberry
(please specify)

___________________

b) Which model ___________________________________

If it is your first smart 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.
ii.
iii.
iv.

Advanced
New
Any

technology
features
Inefficiency in earlier smart
other( please specify)___________

Q4) Why have you bought the smart? (Tick one option)
i.
ii.
iii.
iv.

Communication purpose
Status
Dont
Any

have landline phone

other (please specify)________

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

i.
ii.
iii.
iv.
v.

Price
Appearance
Brand
Features
Easy to

carry/Weight

Q6) Who influenced you to buy this brand? (Tick one option)
i.
ii.
iii.
iv.

Friend
Family
Dealer

member
Advertisement

v.

Any other (please specify) __________

Q7) For which different purposes do you use your smartphone?

(can tick more than one option)
i.
ii.
iii.
iv.
v.
vi.

Social
Games
E-Mail/
Music
Camera

Receiving / making calls

networking
Internet

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.
ii.
iii.
iv.
v.
vi.
vii.

Multi
HD Video
Camera
Data
WiFi
RAM
Others

tasking
Player
Storage Capacity
(please specify)_____________

Q9) Tick the range of price you would like to spend on a smart handset?
i.
ii.
iii.
iv.

Below 10000
10000- 15000
15000- 25000
Above 25000

Q10) Tick the following features you like in particular brand:

Htc

Microma
x

Apple

Sony Blackberr
y

Samsun
g

Camera

Performanc
e
Operating
System
Display

Q 11) Do you agree that following factors must be considered while

choosing a brand of smartphone?

Strongl
y
Disagre
e

Disagre
e

Neutral

Agree

Strongl
y Agree

Repairable
Availability of spare
parts
Proximity to service
provider
Promotional activities

Q 13) a) Are you satisfied with your existing smartphone?

YES

NO

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

_______________________________________________________________

BIBLIOGRAPHY

BIBLIOGRAPHY

http://en.wikipedia.org/wiki/Smart_phones
http://communities-dominate.blogs.com/brands/2010/02/phone-marketshares-for-year-of-2009-and-last-quarter-2009.html
http://www.wirelessdesignasia.com/article8488globalsmarthandsetshipmentgrew17yoy-Asia.html
http://www.forbes.com/feeds/businesswire/2009/04/24/businesswire12373
5951.html
T3-tomororw technology today, Vol.1, Issue 2, Jan. 2007
http://digital-lifestyles.info/2007/03/05/worldwide-smart-phone-sales-grow21-in-2006/
http://www.gartner.com/it/page.jsp?id=501734
http://www.rncos.com/Report/COM02.htm
http://economictimes.indiatimes.com/News/News-ByIndustry/Telecom/Smart-handset-sales-pick-up-afterdrought/rssarticleshow/4180130.cmshttp://www.dailyindia.com/show/121503.php/India-to-be-second-largestsmart-market-by-2010:-Micromax
http://www.zinnov.com/presentation/Smart_VAS.pdf

THANK YOU