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CHAPTER- 1
INTRODUCTION
The world is shifting towards smart devices. The epicentre of communication and
business is gradually shifting from the PCs & Notebooks to wireless devices like
Smartphones, Tablets and Cell phones. Consumer behaviour towards wireless devices is
changing as technology changes like in the case of mobile phones which are being replaced
by smart phones. Most of the mobile phones nowadays are addressed as smartphone, as
they offer more advanced computing power and connectivity than an ordinary contemporary
mobile phone. Smartphone is a handheld computer, as it is powerful enough to deliver
various functionalities comparable to a computer. Along with the smartphone fundamental
capabilities to make voice call, video call, SMS, and MMS, smartphones have been
repositioned as a new information medium. In general, a smartphone is based on an
operating system that allows it to run applications. Apple's iPhone runs the iOS, and
BlackBerry smartphones run the BlackBerry OS. Other devices run Google's Android OS and
Microsoft's Windows . While almost all cell phones include some sort of software (even the
most basic models these days include an address book or some sort of contact manager, for
example), a smartphone will have the ability to do more due to presence of applications.
Smartphone may allow creation and editing of Microsoft Office documents--or at least view
the files. It may allow to download applications such as personal and business finance
managers, handy personal assistants, edit photos, get driving directions via GPS, and create a
playlist of digital tunes. Smartphones can access the Web at higher speeds, because the
growth of 4G and 3G data networks, as well as the addition of Wi-Fi support to many
handsets. Still, while not all smartphones offer high-speed Web access, they all offer some
sort of access. Smartphone mostly include a Qwerty keyboard, this means that the keys are
laid out in the same manner that would be on computer keyboard--not in alphabetical order
on top of a numeric keypad, where to tap the number 1 to enter an A, B, or C. The keyboard
can be hardware (physical keys) or software (on a touch screen, like on the iPhone). All cell
phones can send and receive text messages, but what sets a smartphone apart is its handling
of e-mail. A smartphone can synchronize with personal and, most likely, professional e-mail
account. Some smartphones can support multiple e-mail accounts. Others include access to
the popular instant messaging services, like AOL's AIM and Yahoo! Messenger.
http://cellphones.about.com/od/softwarereviews/a/iphone-os-4-update.htmhttp://smartphones.about.com/b/2008/09/02/blackberry-os-45-coming-soon.htmhttp://cellphones.about.com/od/softwarereviews/fr/google-android-os-review.htmhttp://smartphones.about.com/od/tipstricks/ss/izoho_how_to.htmhttp://smartphones.about.com/od/tipstricks/ss/izoho_how_to.htmhttp://smartphones.about.com/od/softwarereviews/fr/vz_nav_review.htmhttp://cellphones.about.com/od/coveringthebasics/a/4g-Wireless-Everything-You-Need-To-Know.htmhttp://smartphones.about.com/od/surfingtheweb/p/3G_explainer.htmhttp://smartphones.about.com/od/surfingtheweb/p/3G_explainer.htmhttp://cellphones.about.com/od/coveringthebasics/a/4g-Wireless-Everything-You-Need-To-Know.htmhttp://smartphones.about.com/od/softwarereviews/fr/vz_nav_review.htmhttp://smartphones.about.com/od/tipstricks/ss/izoho_how_to.htmhttp://smartphones.about.com/od/tipstricks/ss/izoho_how_to.htmhttp://cellphones.about.com/od/softwarereviews/fr/google-android-os-review.htmhttp://smartphones.about.com/b/2008/09/02/blackberry-os-45-coming-soon.htmhttp://cellphones.about.com/od/softwarereviews/a/iphone-os-4-update.htm -
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Established smartphone brands are quickly expanding outside of their traditional
enterprise markets to attract a wider consumer demographic and maintain share in a fiercely
competitive market. Factors including the open-sourcing of Operating Systems and a
reduction in component prices have helped to lower the price point of smartphones. In
addition, a strong ecosystem of third-party applications developers has helped to drive
consumer interest in a wider portfolio of data applications and allowed carriers to further
leverage their investments in high-speed data networks through the development of new
offers such as application stores. Moreover, it is a global size fair market which not only can
be accessed by major players, but also small and agile developers. The winning factor in this
market is to be flexible enough to meet or surpass the requirements of consumers with
attractive pricing strategy. Thus, it is important to understand the behaviour or attitude of
consumers toward smartphones.15
This trend of increasing use of smart phones becomes an interesting theme from the
perspective of consumer behaviour. Since most phones are relatively new and are becoming
main stream there is a need to study how consumer behave with respect to smart phones.
1.1 Need of the study
Today in fast moving life smartphones have started to play an important role in day
to day life. Smartphone is now one device with many functions and usability like for internet,
finding location, application usage in education, learning, communication and for advertising,
online shopping and also for entertainment as pervious study and research shows.
Smartphone usage depend on age group, gender, education level, occupation and also with
area according to pervious study result. Price of the smartphone, quality, brand name, after
sale service, operating system and size, are the factors that come into play while consumer
purchase this product. On the other hand there seems to be lack of awareness aboutsmartphone in India regarding operating system, application available and also quality.
In India brand name and price factor play an important role in consumer purchase
decision with respect to smart phones. According to research conducted in India shows that
area factor comes into play like urban and rural, alongwith age group education level of
people in India. But, there is still lack of understanding in India about smartphone, their
application , usability, price factor, quality and also brand name. Customer behaviour study is
based on consumer buying behaviour, with the customer playing the three distinct roles of
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user, payer and buyer. As in present market there are lots of smart phone manufacturing
companies like Nokia, Apple, Samsung, Motorola, Micromax, Lava, LG etc fighting to gain
and retain consumer with their distinct features, after sale service, price, brand value, quality
different model and designs, so to gain more consumer and to retain them it is important to
study consumer behaviour as their preferences, choice which are different from person to
person. So main aim behind to this project is to investigate or find out behaviour and
preferences of smartphone customers in the study area. Also the purpose of this study is to
investigate the factors affecting the customers decision with regard to purchase of a
smartphone.
1.2 Objectives of the study
1) To know the consumer awareness about smartphones and smartphones ownership.2) To study the factors which were considered by the consumers in selecting smartphone
brands.
3) To study the pattern of smartphone usage.
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CHAPTER- 2
REVIEW OF LITERATURE
Sello, Mokoena (2005)14, studied the smartphone and regular cellular phones: assessing their
impact on students education at the University of Zululand. The aim of the research was to
assess the impact of mobile phones on students learning at the University of Zululand. The
University of Zululand is dominated by black-African students, making the study focus to be
based on this group. The research information was collected from this group as they are the
majority population on the Campus. Study revealed that the use of mobile phones enhances
students learning and engagement in educational activities. Also research results revealed
that there are more users of smartphones than the regular cellular phone users while price of
smartphones surpasses the price of the regular cellular phones. Students smartphones
ownership is greater than that of regular cellular phones.
Karjaluoto, Heikki. et al . (2005)6, studied the factors affecting consumer choice of mobile
phones in Finland. This article deals with consumers choice criteria in mobile phone markets
by studying factors that influence intention to acquire new mobile phones on one hand and
factors that influence on mobile phone change on the other. The two studies showed thatwhile technical problems are the basic reason to change mobile phone among students; price,
brand, interface, and properties are the most influential factors affecting the actual choice
between brands.
Monthathi, Srikes. et al. (2009)9, studied the impact of culture on mobile phone purchasing
by comparing Thai and British consumer. The aim of this research is to determine and
evaluate whether differences in national culture impact on the buyer behaviour of Thai and
British consumers when purchasing a mobile phone. Furthermore, the research was
conducted in order to identify and compare key cultural attributes that influence mobile
phone purchasing between Thai and British consumers. The findings indicated that there is a
significant difference between Thai and British consumers in terms of mobile phone
purchasing behaviour as far as Hofstedes cultural dimensions and Schwartzs cultural values
are concerned. The findings also recommend that managers in mobile phone organizations
should be concerned with the cultural dynamics of consumers as part of their going re-
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segmentation, communication and promotion strategies within their overall marketing
strategies.
Martens (2010)8, studied the smartphone software markets in Amsterdam. This master thesis
fills this knowledge gap by researching a Smartphone Software Marketplace (SSM) by
placing it in context of electronic market research and analyzing multiple cases using related
topics and theoretical models on E-Marketplaces and Business Models. The aim of this
research was a discussion and insight about how different business models, value networks
and processes together shape a market design that improve or hinder marketplace adoption
for suppliers and buyers. Results shows that Apple currently is the largest SSM in numbers
and payout level, being a closed business model. Googles SSM is growing rapidly, adopting
an open business model. Although the open business model design is showing high adoption
for developers and hardware producers, there is a possibility that the market efficiency is
threatened by the workings of the SSM. By not controlling SSM content by focusing on
quality of content and codification of product, price dispersion and information equivocality
can lead to the exit of high quality suppliers. The current open model design shows a lack of
leadership, threatening the models success.
Natha,Garje Raviraj (2010)10, studied the consumer behaviour for purchasing mobile
handsets in Pune. This study was conducted under the Research International of IMRB
International on behalf of different mobile brand handsets. The study was carried out, in and
around Pune City and the duration was of two month. Study showed that brand name is
important while purchasing of mobile phones and most of the people used their mobile phone
for calling and they purchased it because of their necessity .
Osman, Mohd Azam (2011)12, studied the consumer behaviour with regard to usage of
smartphone in Malaysia. The purpose of this paper was to present the result of a survey on
the attitude and behaviour of consumers toward the various types of smartphone usages such
as application software, e-mail, Internet browsing, ringtones, and other mobile contents. The
findings indicated that male and young consumers generally are larger target market.
Moreover, the smartness of smartphone yet to be fully exploited, most of the usages was
limited to core functionalities of mobile phone such as making phone call and SMS. In terms
of practical contribution, this study provided the overview of mobile contents market
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opportunities in Malaysia that enables practitioners such as service providers, application
developers, and mobile contents marketers to derive effective marketing strategies, and to
serve consumers better.
Bodker, Mads (2011)1, studied the user experience of smart phones. Purpose of this paper
was to complement previous research on the adoption and use of smart phones by introducing
theories from consumer research. The focus was on both the intrinsic and extrinsic values that
users experience when possessing, interacting, and using smart phones. The study also
reveals that use as such is an end by itself and not only a mean to reach some other
objectives, e.g. calling, texting or surfing.
WD Global industry (2011)15, studied about smartphones building profitability and loyalty in
the mass-market. This study looks to highlight some of the challenges that face wireless
carriers as they look to increase the population of smartphones within their portfolio and
attached to their network. 2000 consumers interviewed in this study, half cited price as the
principle motivator when selecting a mobile device. This suggests that factors including
brand and functionality are flexed by the consumer according to the price point of the product
and also half cited camera resolution as the most important feature for consideration. Only
10% listed access to application stores and less than 15% cited access to social media
services as a key consideration. Results varied principally by age group, with the younger
audience notably engaged with more smartphone-orientated services
Boulos et al (2011)2, studied the smartphone consumer behaviour adopting the
collaborative information management behaviour model to understand the Use of
Smartphone Applications. Studying and understanding smartphone consumer behaviour
might require a different conceptual approach; one that considers the collective element a
smartphone provides. The model of collaborative information management behaviour has
been found to address this aspect and at the same time takes aspects of perception, cognition
and action into account. The model of Collaborative Information Management Behaviour
(CIMB) has been derived from qualitative and quantitative findings of a study interested in
understanding remote tabletop collaboration. The data analysed in this study was collected
from four video recordings of two-person distributed teams carrying out a collaborative
information management task over a shared digital workspace and video. Based on
qualitative and quantitative findings theoretical propositions have been deduced and concepts
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defined to develop a model for CIMB. The model, CoIMB, has been found useful to
conceptually understand the pre-buying process of consumers while communicating via
smartphones and apps. Based on the application of this model initial theoretical insights have
been deduced relevant for the design of smartphone apps. It has been suggested that
marketers should incorporate the collective element smartphone technologies offer in order to
build relationships with existing and new customers, increase brand awareness and loyalty
and contribute to the overall costumer experience.
The mobile consumer report US (2011)5, according to exclusive research from Experian
Simmons, fully 29% of cell phone owners today believe that their cell phone will be the
primary device for their entertainment needs, in the future. 90% of all mobile phone owners
in the U.S. are adults, a rate unchanged since 2008. Mobile apps enable consumers to make
the most of their phones, and mobile consumers are downloading apps more than ever.
Today, 16% of cell phone owners have downloaded a mobile app within the last 30 days, up
from 11% who did in 2008. Music apps are the most common, with fully 97% of app
downloaders having at some point downloaded such an app versus 43% who have
downloaded a game app. Cell phone owners who are interested in making purchases with
their phone are also more open to mobile advertising, especially if in exchange for somethingof value. Use of a cell phone to snap photos is routine, with 73% of all cell phone owners
having snapped a pic in the last 30 days. More telling is that web surfing is also becoming
commonplace among smartphone owners, 56% of whom now access the Internet with their
phone in a given month.
The Nielsen company (2011)11, studied that in Australian smartphone population is becoming
increasingly sophisticated. More Australian are using the internet on their phone, females use
more than males.
Das, Debadutta (2012)3, conducted an empirical study of factors influencing buying
behaviour of youth consumer towards mobile handsets. A case study in coastal districts of
Odisha. This study mainly focused on identifying the factors which influence the consumer
behaviour while they intend to make their purchase decision of mobile handsets. Study
showed that a handset of reputed brand, smart appearance, and with advanced value added
features, pleasurebility and usability; is the choice of consumers in between 20-30 years in
age-group, females in gender-group, graduates/post-graduates in level of education-group,
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students/service holders in occupational-group, urban residents in geographical-area group
and with annual family income between Rs.1-3 lakhs. Moreover advertisement plays most
prominent role in buying decision of a mobile handset in the coastal districts of Odisha.
Osman, Mohd Azam (2012)13, studied the trend of smartphone and its usage behaviour in
Malaysia. The purpose of this exploratory study was to better understand the current
dynamics of the Malaysian market for smartphone and the usage behaviours of consumers.
This paper presents the result of a survey on the trend of smartphone from the perspective of
end consumers. the result of this study suggests that the most attractive market for
smartphones is consumers from younger age groups with purchasing power. Additionally,
younger consumers, especially male would pay more attention on the technical aspects of the
smartphone such as computing powers, operating platform, and software applications. This is
reasonable as younger smartphone users are often the consumers of media and entertainment
applications.Furthermore, consumers usage behaviours such as using smartphone for email,
web browsing, gaming, and document reading were examined. This study revealed that
selling price is not the most important factor that affects smartphone purchasing decision,
whereas the consumers perceive other factors such as design, connectivity, and performance
to be more important than the price. Also the report shows that smartphone is not merely acommodity to fulfill the communication requirements, but smartphone would be an indicator
of status, prestige, and lifestyle.
Lee, Hee and Youn, Ji (2012)7, studied the factors affecting smart phone application
acceptance. In this study, to analyze the factors affecting the use of smartphone applications,
research model based on UTAUT (Unified Theory of Acceptance) model was hypothesized
and empirically tested. Credibility and personalization were set as factors affecting
performance expectancy, and flow was added as an antecedent of usage intention. The result
showed that personalization has positive effect on performance expectancy, and performance
expectancy and effort expectancy have positive effect on usage intention, use behaviour, and
recommendation intention. Also, the factors affecting usage intention and use behaviour of
smartphone app were found to be different between two types of applications.
Das, Debadutta (2012)4, conducted an investigation of functional analysis of consumers
buying behaviour towards mobile handsets with a special reference to the usability of mobile
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handsets in Coastal Belt of Orissa. This exploratory study attempts to investigate consumer
purchasing motives in cellular phone markets. This paper surveyed 1200 consumers and
looked at their motive to purchase new mobile phones on the basis of usability of mobile
handsets on several attribute. Under this backdrop, the usability of a mobile handset was
studied on the basis of its different functions, namely; Ease of use, Easy to read text,
Navigating Menu, Problem Fixing, Recovery from Mistake, Easy to read labels on buttons,
Easy to understand User Manuals and Easy to replace Battery. The main results of the study
speaks that mainly 20-30 age group, 1-3 lakhs income groups, Female,Urban Consumers are
significantly influenced by the usability of mobile handsets.
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CHAPTER- 3
RESEARCH METHODOLOGY
Research methodology comprises steps, procedures and strategies used in collecting and
analysing data in a research investigation.
The study involved collection of primary data from mobile phone users. This data was
collected by a structured questionnaire and analysed statistically.
3.1 Sampling
Sample of 100 respondents was selected from Shimla town. Shimla town was chosen for the
study because of the good income of people, high education, availability of wide range of
brand and models of smartphones. All this makes Shimla a good market for smartphone.
Respondents are divided into four different age group, this was done as part of quota
sampling. Quota sampling has been used as it was assumed that age has relationship on use of
smart phones.Sampling unit was an individual above age of 15 because smartphone usage
differs from person to person. 25 respondents each were selected from the age groups of
below 19 year, 19 to 29 year, 29 to 39 year, 39 and above.
3.2 Questionnaire
The primary data was collected by structured questionnaire. Questionnaire was designed in
order to collect information about consumer demographic information, awareness about
smart phones and smart phone ownership among consumer, factors which influenced the
consumers to select the smartphone and pattern of smartphone usage.
Questionnaire involved, closed ended, questions, where respondents are restricted to choose
among any of the given multiple choice answers.
Other type of closed-ended questions used in study were importance questions,in importance
questions, the respondents are usually asked to rate the importance of a particular issue, on a
rating scale of 1 to 5. These questions can help to understand things that hold significance to
respondents.
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3.3 Data Analysis
Analysis of data is a process of inspecting, cleaning, transforming, and modelling data with
the goal of highlighting useful information, suggesting conclusions, and supporting decision
making. The collected data is analysed using various statistical and mathematical tools such
as mean, standard deviation and one way ANOVA. Data collected was quantitative in
nature, summarized in tables.
Different methods used for data analysis in this project are :
Percentage method.- Percent distributions, or percentages, tell what proportion ofrespondents selected a particular answer. Since percentages reflect the number of
times each answer would be selected out of 100 responses, they are used to help put
data in perspective.
To calculate percentage the process was to calculate the frequencies, calculate the total
number of responses, then divide the frequency for each question by the total number of
responses.
The formula used in percentage method is:
P =
* 100
Where x= Number of respondents falling in a specific category to be measured.
Y= Total number of respondents
Mean scores - Mean is the average response given. A mean can be used to describethe group as a whole. To calculate a mean, added up all the responses for question,
divide the total by the number of responses.
Where = symbol for summation
xi = value of the ith item
n = total number of items
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One- way ANOVA.One-way analysis of variance (ANOVA) tests allow to determine if one given factor, such
as age, has a significant effect on purchasing behaviour across any of the parameters under
study. A significant value resulting from a 1-way ANOVA test would indicate the
relationship between independent variable on dependent variable under study.
In this test F- statistics value is calculated by the formula after that this F value is
compared with F- tabulated value from F-table for given degree of freedom. If the calculated
value of F- statistics is less than F-tabulated value for given degree of freedom at 0.05 level
of significance, it means that there is no effect of independent variable on dependent variable
under study. In other case, if the calculated value of F- statistics is greater than F-tabulated
value for given degree of freedom at 0.05 level of significance, then it means that there is
relationship between independent and dependent variables.
To determine relationship between independent and dependent factors, the following
hypotheses are tested: The null hypothesis (H0) is that the means are all equal.
H0 = u1 = u2 =........= uk
The alternative hypothesis (H1) is that at least one of the means is different.
H0 : no significant association between variables.
H1 : significant association between variables.
The F statistic = Between Mean Squares / Within Mean Squares
Between Mean Squares = BSS/ df
Where BSS is referred to as "between sum of squares" or BSS. BSS is calculated by adding
up, for all groups, the difference between the group's mean and the overall population mean,multiplied by the number of cases in the group.
df = Degrees of freedom
Within Mean Squares = WSS/ df
Where WSS Variation within Groups.WSS is calculated by sum of the squared deviation and
the group average, calculating separate measures for each group, then summing the group
values. This is a sum referred to as the "within sum of squares" or WSS.
df = Degrees of freedom
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CHAPTER- 4
DATA ANALYSIS AND INTERPRETATION
4.1 Gender
Gender
Frequency
Male 66
Female 34
Total 100
Table 4.1
Table 4.1 shows gender distribution of the sample. It is observed that from the sample of 100
respondents 66 (66%) were male and 34 (34%) were female. This implies that most of the
respondents in the sample were males.
4.2 Age
.
Age Distribution of Respondents
Frequency
Below 19 yrs 25
19 yrs-29 yrs 25
29yrs-39 yrs 25
39 yrs and above 25
Total 100
Table 4.2
This table 4.2 present the age distribution of respondents. It is seen that 25% of respondents
were in each age group. This was done as part of quota sampling. Quota sampling has been
used as it was considered that age has relationship with use of smartphone.
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4.3 Qualification
Qualification
FrequencyUndergraduate 35
Graduate 30
Post Graduate and above 35
Total 100
Table 4.3
Table 4.3 displays the qualifications of respondents. It is observed that 35% were
undergraduates, 30% of the sample were graduates and 35% of the sample were postgraduateand above. From this it is inferred that study sample comprises of highly educated people.
4.4 Occupation
Occupation
Frequency
Student 48
Employee 35
Businessman 7
Independent Professional 10
Table 4.4
Table 4.4 depicts occupation of the respondents. It is seen that of the respondents, 48% were
students, 35% were employees and 10% were independent professionals.
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4.5 Family Income
Family Income per annum
FrequencyBelow 60,000 2
60,000-1,000,00 6
1,000,00-4,000,00 49
4,000,00 and above 43
Total 100
Table 4.5
Table 4.5 shows annual family incomes of respondents. It is seen that 49% respondents fall inthe range of 1,000,00-4,000,00 , 43% fall in the range of 4,000,00 and above. This
implies that most of the respondents fall in medium income range and above.
4.6 Mobile Phone Brand Name
Mobile Phone Brand Name
Frequency
Nokia 38
Apple 2
Samsung 20
LG 4
Sony 12
Other 19
HTC 5
Total 100
Table 4.6
Table 4.6 present current mobile phone brand used by the respondents. It is observed that
38% of the respondent use Nokia, 20% use Samsung, 19% use other brands. This inferred
that most of respondents of the study sample preferred Nokia brand then Samsung which is
second highest preferred brand.
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4.7 Phone Model
.
Phone Model Known to Respondents.
FrequencyUnknown 11
Known 89
Total 100
Table 4.7
Table 5.7 shows knowledge of the current mobile phone model used by respondents. It is
seen that 89% respondents know about the of phone model, only 11% respondents not know
their phones model. This indicates that respondents have knowledge about their mobilephone model.
4.8 Time of Purchase
Time of Purchase
Frequency
Between 1-5 months ago 19
Between 5-12 months ago 31
Between 1- 2 years ago 29
More than 2 years ago 21
Total 100
Table 4.8
Table 4.8 present time of purchase of mobile phone. It is noted that 31% respondents
purchased their mobile phones in between 5-12 months ago, 29% respondents purchased
their mobile phones in between 1- 2 years ago, 21% purchased their mobile phones more than
2 years ago and only 19% respondents purchased their mobile phones in between 1-5 months
ago. This implies that most of the respondents purchased their mobile phone recently which
is less than 2 years ago.
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4.9 Current Phone Type
Current Phone Type of Respondents.
Frequency
Mobile phone 11
Feature phone 9
Smart phone 47
Do not know 33
Total 100
Table 4.9
Table 4.9 present current phone type of that the respondents have. It is noticed that 47%
respondents believe that their current phone is a smartphone, 33% respondents do not knowabout the type of their current phone this show lack of knowledge and awareness about
different types of phones. 11% indicated that they have a mobile phone and only 9% believe
that they have feature phone. This implies that most of the respondents have a smartphone
and other people do not know about the type of their phone.
4.10 Reason for Purchase
.Reason for Purchase Given by Respondents.
Frequency
Necessity 46
Status 2
Trend in society 18
Technical curiosity 30
Cyclical upgrade 3Other reason 1
Total 100
Table 4.10
Table 4.10 presents reason for purchase as given by the respondents. It is seen that 46%
respondents stated necessity a reason for purchase, 30% respondents selected technical
curiosity a reason for purchase,18 % select trend in society as their reason for purchase. This
indicates that mobile phone is now necessity and also respondents technical curiosity also
plays important role in instigating purchase of mobilephones.
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4.11 Operating System of Smart Phone
Operating system selected by respondents on which their
phone is running.Frequency
Android 29
iOS 2
Windows 5
Other 15
Do not know 49
Total 100Table 4.11
Table 4.11 shows the operating system of the respondents phone. It is seen that 49% of
respondent do not know operating system of their phone, 29% have Android OS. This implies
that respondents are less aware of existence of operating system and perhaps what it does and
those who are aware are mostly using Android OS.
4.12 Physical QWERTY Keypad
Physical Qwerty Keypad
Frequency
Yes 28
No 56
Do not know 16
Total 100
Tables 4.12
Table 4.12 shows availability of physical QWERTY keypad feature on phones used by the
respondents. It is seen that 28% respondents have Physical Qwerty keypad on their handset,
56% do not have this feature and 16% do not know about this feature. This indicates that
most of the respondents do not have this feature on their mobile phones. This may be due to
the popularity of the touch screen phones.
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4.13: Touch Screen
Touch Screen
FrequencyYes 49
No 46
Do not know 5
Total 100
Tables 4.13
Table 4.13 shows availability of touch screen feature on the phones used. It is observe that
49% respondents have touch-screen in their handset, 46% do not have this feature and 5% donot know about this feature. This shows that most of the respondents preferred having a
touch-screen in their mobile phones. This may due to the fact that such phones have a bigger
screen and are convenient.
4.14 Camera Primary
Camera PrimaryFrequency
Yes 78
No 13
Do not know 9
Total 100
Tables 4.14
Table 4.14 shows availability of Camera Primary on the phones used. It is noticed that 78%respondents have primary camera in their handset, 13% do not have this feature in their
handset and 9% do not know about this feature. This shows that majority of the respondent
have primary camera on their handset. This popularity of the primary camera may be due to
the reason that it saves customers expenditure on digital cameras.
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4.15 Camera Secondary
Secondary Camera
FrequencyYes 39
No 38
Do not know 23
Total 100
Tables 4.15
Table 4.15 shows availability of secondary camera on the mobile phones. It is evident that
39% respondents have secondary camera in their handset, 38% do not have this feature intheir handset and only 23% do not know about this feature. Thus, it is seen that secondary
camera is now readily available in smart phones, and is becoming popular. This may have
something to do with the rollout of the 3G services.
4.16 Dual SIM
Dual SIM
Frequency
Yes 26
No 68
Do not know 6
Total 100
Tables 4.16
Table 4.16 shows availability of Dual SIM feature. The data shows that 26% respondents
have dual SIM handset, 68% do not have this feature with their handset and only 6% do not
know about this feature. This implies that most of the respondents do not have this feature on
their mobile phone and perhaps smartphone owners do not prefer dual SIM phones.
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4.17 Wi-Fi
Wi-Fi
FrequencyYes 56
No 34
Do not know 10
Total 100
Tables 4.17
Table 4.17 shows availability of Wi-Fi on the mobile phones. It is noticed that 56%
respondents have Wi-Fi in their handset, 34% do not have this feature in their handset andonly 10% do not know about this feature. This indicates that a very large number of the
respondents have this feature on their mobile phone and it is readily available on the mobile
phones these days. The customers may also be preferring this feature as they appear to be
aware of its existence, and the younger respondents who are technologically adopt may be
taking advantage of it.
4.18 Radio
Radio
Frequency
Yes 93
No 5
Do not know 2
Total 100
Tables 4.18
Table 4.18 shows availability of radio on their handset. The table indicates that 93%
respondents have radio in their handset, 5% do not have this feature in their handset and only
2% do not know about this feature. This shows that most of the respondents have this feature
on their mobile phone and that radio is a very common feature of the mobile phones.
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4.19 Bluetooth
Bluetooth
FrequencyYes 93
No 3
Do not know 4
Total 100
Tables 4.19
Table 4.19 shows availability of Bluetooth feature on the phones of the respondents. The data
shows that 93% respondents have Bluetooth feature in their handset, 3% do not have thisfeature in their handset and only, 4% do not know about this feature. It is thus inferred that
most of the respondents have Bluetooth on mobile phones is a very popular feature due to the
convenience that it offers to transfer data between devices.
4.20 Social Networking
Social NetworkingFrequency
Yes 78
No 7
Do not know 15
Total 100
Tables 4.20
Table 4.20 shows availability of social networking feature on the phones of the respondents.It is noticed that 78% respondents having social networking facility in their handset, 7% do
not have it in their handset and 15% do not know about this feature. This implies that social
networking is a popular feature, and this may have something to do with the younger
respondents being a larger part of the sample. It is this age group which is most active on the
social media.
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4.21 Internet Browsing
Internet Browsing
Frequency
Yes 88
No 3
Do not know 9
Total 100
Tables 4.21
Table 4.21 shows availability of internet browsing on the mobile phone. 88% respondents
have internet browsing facility in their handset,3% do not have this feature on their handset
and 9% do not know about this feature. This indicates that most of the respondents haveInternet browsing on their mobile phone and that it is a popular feature among mobile phone
owners. This may have a relationship with the availability of 3G networks.
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4.22 Factor considered while selecting the phone
Factor which respondents considered while selecting the phone.
Mean Std. DeviationPrice 4.12 1.258
Brand name 3.83 .911
Camera resolution 3.51 1.105
Touch sensitivity 3.39 1.377
Design 3.71 1.018
Multimedia 3.55 1.095
Applications 3.59 1.207Battery life 4.43 .891
Processor speed 3.66 1.165
Memory 3.94 .993
Display resolution 3.58 1.130
Speed of internet browsing 3.85 1.140
After sale service 4.25 .783
Phone Operating system 3.40 1.198
Table 4.22
Table 4.22 shows importance assigned to factor which are considered while selecting the
phone by respondents. It is observe that battery life (4.43), price (4.12), after sale service
(4.25), and memory (3.94) have higher mean scores on importance. It is thus inferred that
battery life is most important factor while selecting the phone, the next important factor is
price which is followed by after sale service and least important factors are touch
sensitivity(3.39), operating system(3.40).
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4.23 Smart phone usage
At least once a month
or more
Less than once a month Never
Calling 100 0 0Messaging 95 3 2
Camera 80 13 7
Games 56 28 16
Multimedia 69 16 15
Internet browsing 70 16 14
Social networking 64 11 25
Navigation/maps 23 34 43Shopping/bills payment 11 19 70
E-mail 26 11 63
Downloading data 37 27 36
Dictionary 28 25 47
Document editing, viewing 23 25 52
Photo editing 21 26 53
Newspaper reading 25 22 53Travel/road guide 17 16 67
Healthcare services
application
11 9 80
Table 4.23
Table 4.23 shows usage of different features, services and applications available on
respondents handset. It is seen that that 100% respondents use calling feature at least once a
month or more. It is also seen that 95% use messaging, 80% use camera feature 70% useinternet browsing 69% use multimedia, 64% use social networking feature at least once a
month or more. 34% respondents use navigation/maps feature less than once a month, 28%
respondents play games less than once a month. 70% respondents never use shopping/bills
payment application on their smartphone. It is also seen that 67% never use travel guide
facility and 63% never use e-mail service on their smart phone. This implies that calling,
messaging, camera, internet browsing and multimedia feature are used by respondents more
frequently while operating a smart phone. Most of the respondents never use shopping/bills
payment, travel guide, e-mail service and healthcare services applications on their handset.
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4.24 Gender and decision criteria
Table 4.24
Table 4.24 depicts the relationship of gender with the factors which respondents consider
while selecting a mobile phone. It is seen that in case of all factor that are considered, the
calculated value of F- statistics is less than F-tabulated value (2.94) for 1 and 98 degree of
freedom at 0.05 level of significance. Therefore, it is inferred that there is no effect of gender
on any of these factor which are considered while selecting the phone.
Factor which respondents considered while selecting the phone in
relation with Gender
Mean
(Male)
Mean
(Female)
F - value Sig.
Price 4.29 3.79 2.84 .063
Brand name 3.91 3.68 1.471 .228
Camera resolution 3.42 3.68 1.170 .282
Touch sensitivity 3.29 3.59 1.068 .304
Design 3.65 3.82 .638 .426
Multimedia 3.48 3.68 .685 .410
Applications 3.56 3.65 .114 .736
Battery life 4.50 4.29 1.202 .276
Processor speed 3.56 3.85 1.418 .237
Memory 3.83 4.15 2.268 .135
Display resolution 3.53 3.68 .373 .543
Speed of internet
browsing
3.83
3.88 .041 .840
After sale service 4.27 4.21 .162 .688
Phone Operating system 3.32 3.56 .905 .344
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4.25 Age and decision criteria
*statistically significant differences exist.
Table 4.25
Table 4.25 depicts age effect on factor which respondents considered while selecting the
phone. It is seen in case of factors like price, camera resolution, touch sensitivity, design,
multimedia, application, processor speed, memory, display resolution, speed of internet
browsing, phone operating system, the calculated value of F- statistics is greater than
tabulated value of F (2.07) for 3 and 96 degree of freedom at 0.05 level of significance which
means that importance given to these factors changes with the age of the customer. It is seen
that factor like price is very important factor for age group 29years and above, while camera
resolution, touch sensitivity, design, multimedia, application, processor speed, memory, is
important factor and display resolution, speed of internet browsing is very important factor
Factor which respondents considered while selecting the phone in relation with Age
Mean
(Below 19
yrs)
Mean
(19 yrs-29
yrs)
Mean
(29yrs-39
yrs)
Mean
(39 yrs and
above)
F-
value
SIG.
Price 3.28 3.64 4.84 4.72 13.053 .000*
Brand name 3.76 4.24 3.56 3.76 2.046 .056
Camera resolution 3.64 4.08 3.56 2.76 7.378 .000*
Touch sensitivity 3.64 4.20 3.4 2.32 10.559 .000*
Design 4.16 4.28 3.52 2.88 14.056 .000*Multimedia 4.16 4.20 3.52 2.32 30.254 .000*
Applications 4.00 4.40 3.72 2.24 27.460 .000*
Battery life 4.64 4.52 4.24 4.32 1.057 .371
Processor speed 3.92 4.44 3.84 2.44 22.101 .000*
Memory 4.28 4.36 3.64 3.48 5.735 .001*
Display resolution 3.76 4.52 3.64 2.40 26.978 .000*
Speed of internet
browsing
4.20 4.64
3.96
2.60 26.258 .000*
After sale service 4.12 4.16 4.52 4.20 1.379 .245
Phone Operating
system
3.40 4.36 3.76 2.08 30.971 .000*
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for age group 29 years and above. The importance of phone operating system appears to be
more in case of respondents between age groups of 19-39 years, which may be due to their
higher technological awareness.
While for other factor like brand name, battery life, after sale service the calculated value
of F- statistics is less than F-tabulated value (2.07) for 3 and 96 degree of freedom at 0.05
level of significance, so factor like brand name, battery life, after sale service do not have any
relationship with any age group.
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4.26 Qualification and decision criteria
*statistically significant differences exist.
Table 4.26
Table 4.26 depicts the relationship of qualification with factor which respondents considered
while selecting the phone. It is seen in case of factors like price, brand name, camera
resolution, touch sensitivity, multimedia, applications, processor speed, memory, display
resolution, speed of internet browsing, phone operating system, the calculated value of F-
statistics is greater than F-tabulated value (3.09) for 2 and 97 degree of freedom at 0.05 level
of significance.
Factor which respondents considered while selecting the phone in relation with
Qualification
Mean
(Undergraduate)
Mean
(Graduate)
Mean
(Post
Graduate
and above )
F-
value
Sig.
Price 3.71 4.47 4.23 3.231 .044*
Brand name 3.6 3.7 4.17 4.127 .019*
Camera resolution 3.43 3.13 3.91 4.470 .014*
Touch sensitivity 3.37 2.9 3.83 3.891 .024*
Design 3.86 3.33 3.89 3.063 .051
Multimedia 3.83 2.9 3.83 8.726 .000*
Applications 3.77 3 3.91 5.747 .004*
Battery life 4.49 4.37 4.43 .142 .868
Processor speed 3.77 3.07 4.06 6.793 .002*
Memory 4.14 3.57 4.06 3.233 .044*
Display resolution 3.49 3.1 4.09 7.119 .001*
Speed of internet
browsing 3.83 3.27 4.378.783 .000*
After sale service 4.23 4.33 4.2 .250 .779
Phone Operating
system 3.23 2.83 4.0610.756 .000*
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This means that importance given to these factors changes with the qualifications of the
customer. It is seen that for other factor like design, battery life, after sale service, the
calculated value of F- statistics is less than F-tabulated value (3.09) for 2 and 97 degree of
freedom at 0.05 level of significance, therefore it is inferred that for factor like design, battery
life, after sale service there is no relationship with qualification of the respondents. It is seen
that people who are graduates or post graduates assign more importance to price and brand
name as compared to under graduates. Undergraduates assign more importance to camera
resolution, touch sensitivity, design, multimedia, display resolution as compared to graduates.
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CHAPTER- 5
CONCLUSIONS & SUGGESTIONS
Smartphones are currently witnessing a period of rapid growth. As consumers are
becoming aware of smartphone and also due to decreases in smartphone price. It is more
affordable so now more consumer prefers smartphone as compared to feature phone and
mobilephone. Another reason for consumers shifting towards smartphone is the various
facilities and applications that are provided with smartphone. Consumer prefers or select
phone depending on their behaviour like awareness level, need, usability and various factors
like smart phone price, brand name etc.
The the study was undertaken to get know consumer behaviour with respect to
smartphone. Therefore, keeping in view the various factor which effect consumer decision
while selecting or purchase of a smartphone, the present study were carried out with the
following objectives;
To know the consumer awareness about smartphones and smartphones ownership. To examine the factors which influenced the consumers to select the smartphone
brands.
To examine the pattern of smartphone usage.
5.1 Conclusions
5.1.1 Consumer awareness and smart phones ownership
Majority of the respondents have a smartphone and they know that their phone is
smartphone. Respondents have knowledge about their mobile phone model. Technical curiosity
plays an important role in instigating purchase of smartphones. Most of respondents of the
preferred Nokia brand, Samsung is the second most preferred brand. Respondents are less
aware of existence of operating system and perhaps what it does. Among those who are aware
are Android operating system is the preferred. Majority of the respondents purchased their
mobile phone recently, which is less than 2 years ago.
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Most of the respondents did not have physical QWERTY keypad feature, but had a touch-
screen in their mobile phones. Majority of the respondent had primary camera on their handset.
Most of the respondents did not have dual SIM feature on their mobile phone. Majority of the
respondents have Internet browsing on their mobile phone and that it is a popular features
among mobile phone owners. Social networking is a popular feature in smartphone and most of
the respondents had this feature. Majority of the respondents have Bluetooth, radio, Wi-Fi
feature on their mobile phone.
5.1.2 Factors influencing Smartphone Brands decision
Technical curiosity play important role in instigating purchase of smartphones. Battery life
is most important factor that is considered while selecting the phone; the next important factor
is price which is followed by after sale service. Price is very important factor for age group of
29years and above while, Camera resolution, Touch sensitivity, Design, Multimedia,
Application, Processor speed, Memory, Phone Operating system is important factor and
Display resolution, Speed of internet browsing is very important factor for age group 19years
and below. Factors like Price, Brand name, Camera resolution, Touch sensitivity, Multimedia,
Application, Processor speed, Memory, Display resolution, Speed of internet browsing, Phone
Operating system these factors changes with the qualifications of the customer. Study showed
that people who are graduates or post graduates assign more importance to price and brand
name as compared to under graduates. Undergraduates assign more importance to camera
resolution, touch sensitivity, design, multimedia, display resolution as compared to graduates.
5.1.3Pattern of Smartphone usage
Calling, messaging, camera, internet browsing and multimedia feature are used by
respondents most frequently while operating a smart phone. Most of the respondents never use
shopping/bills payment, travel guide, e-mail service and healthcare services applications on
their handset.
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5.2 Suggestions
As technical curiosity plays an important role in instigating purchase of smartphones there is
need of smartphone companies to make the customer aware of the technical specification and
other related issues.
Most attractive market for smartphones is consumers from younger age groups with
purchasing power. Additionally, younger consumers, would pay more attention to the technical
aspects of the smartphone such as computing powers, operating platform, and software
applications. This is expected as younger smartphone users are often the consumers of media
and entertainment applications. Since these usages require high demand on computing power,
the younger consumers will pay attention to the performance of the smartphone, in order to
ensure smooth and delightful experience. This market segment is also lucrative as it does notconsidered price as important.
As per findings cost is important consideration for older consumer, so mobile phone
targeted at older consumers can focus on the core functionality and provide less on the
unnecessary features and frills. This would enable the product to be cost effective and
affordable to most of the consumers.
In terms of the usage, the findings indicate that the smartness of smartphone is yet to be
fully exploited by the consumers. Most of the usages are entertainments, instant messaging,
Internet browsing. Other functions of the smartphone such as travel/road guide , health care
services, document editing, and business related functions are not commonly utilized. It is
suggested that proper redesign of the applications, user training, and user support should be
more prevalent in order to improve the usability and acceptance of these functions.
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