Mobile Handset Report

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BUSINESS RESEARCH METHODSBUSINESS RESEARCH METHODS

PROJECTPROJECT

ONON

CONSUMER BEHAVIOR INCONSUMER BEHAVIOR IN

SELECTING MOBILE PHONESSELECTING MOBILE PHONES

SUBMITTED TOSUBMITTED TO

MRS. SARIKA TANDONMRS. SARIKA TANDON

SUBMITTED BYSUBMITTED BY

SHREYA MEHTASHREYA MEHTA

MMDD. FARAZ. FARAZ

NAMITA AHUJANAMITA AHUJA

NEHA CHAUDHARINEHA CHAUDHARINIDHI SHARMANIDHI SHARMA

NITIN TRIPATHNITIN TRIPATHII


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TABLE OF CONTENTSTABLE OF CONTENTS

1. Problem Definition....41.1. Background41.2. Problem Statement............5

2. Literature Review.....................6

3. Approach to the problem..........8

4. Hypothesis Question.9

5. Research design...........................................................................................................95.1. Preliminary investigation..95.2. Collection of Quantitative Data......10

5.2.1.Measurement and Scaling Procedures5.2.2.Questionnaire Design5.2.3.Survey

5.3. Sampling Process....................105.3.1.Target population

5.3.2.Sample Size5.3.3.Sampling technique

6. Fieldwork.11

7. Data Interpretation and analysis..12

7.1. Data Analysis Plan.127.2. Methodology..147.3. Analysis and Interpretation....... 16

8. Results.17

9. Limitations and caveats ...18

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10. Questionnaire...20

11. Bibliography23

ACKNOWLEDGEMENT

We take this opportunity to convey our sincere thanks and gratitude to all thosewho have directly or indirectly helped and contributed towards the completion of

this project.

First and foremost, we would like to thankMrs. Sarika Tandon for her constantguidance and support throughout this project. During the project, we realized thatthe degree of relevance of the learning being imparted in the class is very high.The learning enabled us to get a better understanding of the nitty-gritty of thesubject which we studied.

Next we would like to thank all those who were kind enough to spare their timeto fill our questionnaires and give us an opportunity to conduct a research on thistopic.

We would also like to thank our batch mates for the discussions that we had withthem. All these have resulted in the enrichment of our knowledge and their inputshave helped us to incorporate relevant issues into our project.

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11. PROBLEM DEFINITION. PROBLEM DEFINITION

1.1 Background1.1 Background

Mobile users today want their handsets to be converged devices handling multiple

functions, entertainment being the most important among them. They want their mobile

to be fully loaded with top-end features, but they want all that at affordable costs.

Integrated digital camera, music player and stereo FM radio are the three main features

which would drive users towards upgrading their handsets. These features are available

in mid range and high-end handsets so far, and the common user now demands these

features in ordinary handsets which can be affordable. On the other hand, MMS has

failed to catch the fancy of the masses due to its high costs of transmission over the

networks and relatively cheaper alternate modes of downloading videos available

through Internet.

Other features like Games, Calculator, Reminders/Scheduler/Organizer, Polyphonic

ringtones etc have become hygiene features and are a must for any handset. None of

these features is a differentiator anymore.

Apart from Integrated Camera, Music player and Stereo FM radio, a Speaker phone is

another feature that emerges as the driver for replacing the current handset. This feature

can be a most cost effective differentiating feature for the low end phones.

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Most handset vendors have been bringing out new models at fairly regular intervals. The

maximum activity takes place at the high end, where the launch of a newer model makes

the older model cheaper, shifting it to the mid segment. However, the low-end handset

users, who make up a huge number, dont get access to such features as the prices of

such phones do not fall below a certain level. The dissatisfaction among the existing

users stems from this, as they are unhappy at not being able to avail these high-end

features.

1.2 Problem Statement1.2 Problem Statement

The aim of study is to objectively understand the behavior of mobile phone users in age

group of 18 to 28 years and further capture their satisfaction level that is influenced by

various technical and non technical factors. Specific aspects to be studied were:

Usage pattern in terms of purpose of mobile phones for various categories of

consumers

Level of the satisfaction of users

Reasons for dissatisfaction

Level of satisfaction with gadgets and added services provided Liking for various attributes of the mobile phone instrument

Usage Pattern of functionalities and added services provided

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22.. LITERATURE REVIEWLITERATURE REVIEW

The whole world is going mobile. Phones, computers and media devices now fit in our

pockets and can connect us to a variety of information sources and enable

communication nearly everywhere we go. There is considerable interest in exploiting the

almost universal appeal and abundance of these technologies for their educational use.

Most previous reviews ofmobile technologies and learning have been concerned with

the use of these technologies to address specific curriculum areas. In this review, we takean activity-centered perspective, considering new practices against existing theories. Ourreview of the literature reveals six broad theory-based categories of activity, andidentifies a number of examples of the use ofmobiletechnology in each of them:

1. Behaviorist activities that promote learning as a change in learners observableactionsIn the behaviourist paradigm, learning is thought to be best facilitated through thereinforcement of an association between a particular stimulus and a response. Applyingthis to educational technology, computer-aided learning is the presentation of a problem(stimulus) followed by the contribution on the part of the learner of the solution(response). Feedback from the system then provides the reinforcement. Ina mobile learning context, classroom response systems like Classtalk and Qwizdomfall in this category.

2. Constructivist activities in which learners actively construct new ideas or conceptsbased on both their previous and current knowledge

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In the constructivist approach, learning is an active process in which learners constructnew ideas or concepts based on both their current and past knowledge. Learners areencouraged to be active constructors of knowledge, with mobile devices now embeddingthem in a realistic context at the same time as offering access to supporting tools. The

most compelling examples of the implementation of constructivist principleswith mobile technologies come from a brand of learning experience termedparticipatory simulations, where the learners themselves act out key parts in animmersive recreation of a dynamic system.

3. Situated Activities that promote learning within an authentic context and cultureSituated learning posits that learning can be enhanced by ensuring that it takes place inan authentic context. Mobile devices are especially well suited to context-awareapplications simply because they are available in different contexts, and so can draw onthose contexts to enhance the learning activity. The museum and gallery sector has beenon the forefront of context-aware mobilecomputing by providing additional informationabout exhibits and displays based on the visitors location within them.

4.Collaborative Activities that promote learning through social interactionCollaborative learning has sprung out from research on computer-supportedcollaborative work and learning (CSCW/L) and is based on the role of social interactionsin the process of learning. Many new approaches to thinking about learning developed inthe 1990s,. Mobile devices can support mobile computer supported collaborativelearning (MCSCL) by providing another means of coordination without attempting toreplace any human-human interactions, as compared to say, online discussion boardswhich substitute for face-to-face discussions

5. Informal and lifelong Activities that support learning outside a dedicated learningenvironment and formal curriculum

Research on informal andlifelong learning recognises that learning happens all of thetime and is influenced both by our environment and the particular situations we are facedwith. Informal learning may be intentional, for example, through intensive, significantand deliberate learning projects (Tough 1971), or it may be accidental, by acquiringinformation through conversations, TV and newspapers, observing the world or evenexperiencing an accident or embarrassing situation. Such a broad view of learning takesit outside the classroom and, by default, embeds learning in everyday life, thusemphasising the value ofmobiletechnologies in supporting it.

6.Learning and teaching support activities that assist in the coordination of learnersand resources for learning activitiesEducation as a process relies on a great deal of coordination of learners and resources.Mobile devices can be used by teachers for attendance reporting, reviewing studentmarks, general access of central school data, and managing their schedules more

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effectively. In higher education,mobile devices can provide course material to students,including due dates for assignments and information about timetable and room changes.

33.. APPROACH TO THE PROBLEMAPPROACH TO THE PROBLEM

Objective or theoretical frameworkObjective or theoretical framework

The objective of this research is to identify the factors that influence a person into

making a decision to buy a certain brand of mobile Handset.

As mentioned in the Literature Review, according to industry analysts, this category has

grown only on promotions and for now, except for promotions, nothing seems to be

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working. Therefore, ideally, this research should be able to bring to the fore, certain other

factors that could lead to a growth of this segment.

At the very least, the research should corroborate the existing assumptions regarding the

influencing factors. It should be in a position to verify that the steps various players are

taking to stimulate volumes are in the right direction, and would eventually lead to an

increase in market share.

Research QuestionsResearch Questions

I. What are the different Customer Segments depending upon the preferences?

II.What is the perception of people towards the leading brands of Mobile Handsets?

III.What are different factors that influence the customer when He/She buys a Mobile

Handsets?

IV.Who are the major Influencers in the purchase decision of Mobile Handsets?

44.. HYPOTHESIS TESTINGHYPOTHESIS TESTING

1. H0: Peers do not have an influence on the purchase decisions of mobile handsets

H: Peers have an influence on the purchase decisions of mobile handsets

2. H0: Price does not influence consumer buying behavior

H: Price influences consumer buying behavior

3. H0: Features are not related to the changing preference of the mobile users

H: Features are related to the changing preference of the mobile users

5.5.RESEARCHRESEARCH DESIGNDESIGN

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The methodology followed for analyzing the consumer behavior of mobile phone

customers is as shown in the figure.

55.1 Preliminary Investigation.1 Preliminary Investigation

This phase involved preliminary investigation of the various factors which could

possibly affect the consumers perception about the various brands and in turn

influence the purchase decisions of the consumer. We primarily used three

methods to identify the various factors. The Secondary data gathered was

analyzed to understand the current scenario of the cell phone segment. The

analysis of the secondary data also helped us find different attributes which affect

the mobile phone segment.

55.2.2 CollectionCollection of Quantitative dataof Quantitative data

Measurement and Scaling Procedures:Measurement and Scaling Procedures:Non-Comparative Rating scale is used

in which respondents evaluate only one object at a time, and for this reason non

comparative scales are often referred to as monadic scales. Non comparativetechniques consist of continuous and itemized rating scales.

We have used continuous rating scale in order to rate the choices for purchase

considerations and the sources of purchase decisions.

Questionnaire Design:Questionnaire Design: This phase involved the design of the questionnaire on

the basis of the potential factors identified as influencing the customer behavior.

Research problems were listed and then the information needed was identified.

The questions were then prepared in order to fulfill the information requirements

as identified earlier.

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Survey:Survey: Different Survey methods were used for collection of data. The principle

method used was Personal Interviewing of the respondents. In-Home

interviews were conducted by us at various locations in Mumbai. We also did

Mall Intercept at popular markets like lower Parel and andheri. Due to the

shortage of time, we conducted a few telephonic interviews to maintain diversity

in data.

5.35.3 Sampling ProcessSampling Process

Target Population:Target Population: The target population is the collection of elements or objects

that process the information sought by the researcher and about which inferences

are to be made. Our target population involves the users, deciders and buyers of

mobiles. The users include the old and the young population.

Sample Size:Sample Size: It denotes the number of elements to be included in the study. Due

to time constraints the sample size chosen is 100.

Sampling Technique:Sampling Technique: A mixture of quota and stratified method was used forsampling, with care being taken to get responses from customers of different age

groups and different family sizes.

5. FIELDWORK5. FIELDWORK

The survey was conducted keeping in mind the users and deciders of the mobile

Handsets. The survey was conducted in the Bandra and andheri Areas of Mumbai. We

made several trips to the local market and also in college premises of IBS mumbai to

gather information from relevant people.

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66. DATA INTERPRETATION AND ANALYSIS. DATA INTERPRETATION AND ANALYSIS

66.1 Data Analysis Plan.1 Data Analysis Plan

This chapter shows how the information needed to answer the three key research

questions have been extracted via the questionnaire.

Q1explicitly asked the respondents if a mobile handset is used in the family or by them.

The questionnaire was not administered to the respondents that answered NO to this

question. Such respondents have not been included in the sample size of 60 that has been

mentioned.

Q2 to Q6 of the questionnaire are used to get the general details about the respondent

(age, educational qualification, annual income, family size and number of children in the

family. Q4 explicitly asked the respondents about the size of the family and Q6 asked

about the number of children in the respondents family.

Q7 explicitly asks the brand preference of the respondent about the mobile handset.

Q8 asks the respondents to rate the importance of the following purchase

considerations on a scale of 1(Very unimportant) to 5 (Very Important):

a. Battery Life

b. Voice quality

c. Weight

d. Size

e. Appearance

f. Ease of use/User Interface

g. Time required to charge the phone

h. Price

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These attributes were decided after a thorough secondary data analysis. However some

of these attributes might have similar effect on the consumer preference. Therefore we

conduct a factor analysis to find out the factors to which one or more of the above

variables belong.

Q9 asks the respondents to rate the Sources of Information influencing the Purchase

Decision. The following sources were considered:

a) Advertisement

b) Internet

c) Corporate Person

d) Family

e) Past experience

f) Retailer

g) Word of mouth

The respondents were asked to rank the factors in order of importance.

Q10 ask the respondents to score each of the brands on the various product attributes ona scale of 1 5.

Five major selling brands were tested on the various product attributes

mentioned. The brands included in the test were:

a) Nokia

b) Sony Erickson

c) Samsung

d) LG

e) Motorola

Q11 and Q12 are used to determine the brand loyalty of the respondent towards the

mobile Handsets, thus asking the switching pattern of the users.

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Q13 in the Questionnaire attempts to find the Brand Personality by asking customers

the perceived traits of each of the leading brands of mobile handsets available in the

market today. It is very important to realize that these are not the attributes that the

mobile handsets to possess, via its advertisements and other promotional activities. For

e.g. Nokia in its campaign claims that Connecting People, but rather the attributes the

customer feels that the mobile possesses.

6.6.2 Methodology2 Methodology

The methodology to conduct the study was composed of different tasks as follows:

1. Review of literature: A review of literature on consumer satisfaction in telecom

industry was undertaken in order to define the comprehensive scope of the study and

ensuring its objectivity.

2. In- Depth interviews: IDIs were conducted across 10 people. 6 of these were students

from the IBS campus and 4 were staff. The purpose of these interviews was to

understand the user of mobile phone, to know their buying process for these phones, to

understand the attributes important for the phones and to know what the users

considered as a important.3. Focused group discussion: 1 FGD of 5 people was conducted. It consisted of

youngsters between the ages of 20-26 with 3 males and 2 females. The FGD consisted

of existing users of mobile phones of Nokia brand. The objective of the discussion was

to understand the attributes that the user of a this mobile phone values and to know

their perceptions about various brands.

4. Questionnaire: The inputs from the above two helped us in the questionnaire

formation. Important attributes were identified and incorporated. Also, the research

objectives helped us identify the nature of questions we needed to ask.

Empirical Research - Sampling

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A survey of 100 sampled respondents was conducted online as well as offline. There

were 60 online responses while the remaining respondents were contacted offline. These

online and offline surveys were conducted between 10th December 2007 and 13th

December 2009.

Information Needed

Market share and relative positioning of different brands

Opinions about attributes of ideal mobile phone

Satisfaction level of mobile users

Most important drivers of buying

Barriers to switching from a one range to other

Perceptions of Nokia phone vis--vis competitors

Triggers that lead to a need for replacing existing phone

Measurement and Scaling

Ordinal Scale: The product categories are being ranked in terms of the consumer

preferences

Likert Scale: The companies are being rated according to different categories and thecategories are rated according to different attributes on a scale of 1-5.

Sampling Plan: We intend to carry out our survey on a population which would

comprise of youngsters in the 18-28 years age group.

Sampling Data

1. Target Population: Men and women in the age group of 18 to 26.

2. Sampling frame: IBS campus, Hiranandani

3. Sampling Technique: Quota sampling based on age and sex.

4. Sample Size: 100

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66.3 Analysis and Interpretation.3 Analysis and Interpretation

Sources of Information influencing the Purchase DecisionSources of Information influencing the Purchase Decision

a. Battery Life

b. Voice quality

c. Weight

d. Size

e. Appearance



h. Price

The data was collected from within the campus and outside the campus in a ratio of 3:2.

We collected around 100 responses in all 60within the campus and 40 in places like

Multiplexes. Some of the responses were not complete and in all 94 responses 34 from

outside the campus and 60 from the campus. We ran the following analysis on the data

collected. The results of the analysis are shown in the appendix.

1. Cross Tabulations of the number of males and females on income, age, education

is made.

2. Binary Logit Analysis on the attributes of mobile phones liked users.

a. Derived a function that determines whether the current mobile phone is

Nokia or other.

i. The Coefficients of the function are given in the results in the

appendix.

b. Battery life emerges as a major determining feature.

c. Appearance has a negative score implying Nokia users prefer simple

looking phones. This makes sense when viewed in the light of success of

MotoRazr.

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d. Also the probability of a non-user switching to Nokia was obtained as

66%. And the probability of a Nokia user switching was obtained as 30%.

3. Binary Logit Analysis on the Psychographics and Demographics of the sample

population by Nokia users and non-Nokia users.

a. No psychographic factor emerged as a distinguishing characteristic.

Gender and age emerged as the best discriminating variables but at a very

low significance.

b. By using cross tab it was verified that people in the middle-age segment

and females preferred Nokia to others. This could be the ease of use with

which Nokia is associated.

4. Binary Logit analysis on the multimedia features of the mobile phones of Nokia

and non-Nokia users.

a. No particular feature emerged as significant.

b. But Camera and Radio emerged as discriminating factors but at very low

significance values.

77. RESULTS. RESULTS

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A major portion of the population seemed to prefer Nokia phones due to

user-friendly and reliable nature. And many people seem to like Motorola

probably because of more fashionable look. There is a high probability of

switching the mobile phone brands from both Nokia to the other brands and

other brands to Nokia. Amongst features, Camera and Radio has the highest

priority with the respondents. Battery life emerges as a major determining

feature for the selection of the mobile phones. Price does not emerge as

significant selection criteria. But for the value-seeking consumer, Nokia has

an opportunity to occupy mind space by communicating its ease of use,

battery life and simple looks.

Factor Analysis

Factor Analysis yields 3 factors

Purchase FeasibilityPurchase Feasibility (Promotion, Shelf-Presence, Packaging & Economy)

LikeabilityLikeability (battery Life, Brand)

UtilityUtility (Stability,FM and Camera, Colour)

Two most important factors came out to be:

Battery LifeBattery Life

FM and Camera

Purchase Influence FactorsPurchase Influence Factors

Two most important factors for families:

AdvertisementAdvertisement

Family IFamily Incomencome

Brand LoyaltyBrand Loyalty

Customers more often stick to one brand No significant difference in scores for the brands analyzed

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88. CONSTRAINTS/LIMITATIONS. CONSTRAINTS/LIMITATIONS

Since this Project was intended to initiate us to the methodologies and techniques of

Business Research Methods, therefore there are a number of constraints in terms of

Manpower and Resources to conduct a large-scale survey. The scope of the project was

limited to learning.

There have been a number of limitations because of which the survey may not be

indicative of the views of the target population. A few of these have been mentioned

below.

The Sample size used for the research is less.

The Sample consisted of primarily students.

The Target Area was limited to College and the nearby markets.

Consultation with Experts would have largely improved quality of the Research.

The Questionnaire was not extensive and more issues could have been addressed.

The responses obtained might be inaccurate or biased, inadvertently or

deliberately.

The sample of the respondents chosen for the study might not be representative.

Analysis of the proposed aspects might differ depending on the tools and

techniques used.

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9.QUESTIONNAIRE

1. Do you currently own a mobile phone? YesNo

2. Which brand and model?3. When did you purchase the current phone?

a. < 3 months

b. 3 to 6 months

c. 6 months to 1 year

d. 1 to 2 years

e. More than 2 years

4. Rate your current phone on a scale of 1 to 5 on the following

attributes? ( 1= Not at all good 5 = Extremely Good)

1 2 3 4 5

a Battery Life

b Voice quality

c Weight

d Size

e Appearance

f

Ease of use/User

Interface

g

Time required to

charge the phone5. Are you planning to buy a mobile phone in the next 6 months? Yes No

6. Have you decided on the brand and model? Yes No

7. If yes, which one is it?

8. What is the price range of mobile phone you are looking for?

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9. What are the reasons for changing your phone/buying new

phone? (Tick all applicable)

a. Joyous Occasion (Promotion/Achievement)

b. Bigger budget

c. Received as gift

d. Old phone is not working well

e. Needed different features

f. I am bored with the old phone

g. I have been using the old phone for a long time

h. A new model has come into the market

i. There is an offer with the new phone

10. Rate the following features from 1 to 5 based on their importance to you. (1=

least important and 5 = most important)

1 2 3 4 5

a Bluetooth

b Music Player

c Video Player

d Integrated Camera

e

GPRS/Net access

on phonef Hands free

g FM Radio

h Internal memory

i 3G

11.Rank the following attributes of a mobile phone based on their

importance.

a. Battery Life

b. Voice quality

c. Weight

d. Size

e. Appearance


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h. Price

i. Multimedia features

12. Please rate the following attributes that describe you on a scale of 1 (least

applicable) to 5 (best applicable)

1 2 3 4 5

a I like to take pictures on the move

b I like to spend time with my friends

c I like to download software from the internet

d I like to go to multiplexes to watch movies

eI am more likely to take a well researched and considered decision when I

decide to purchase something.

f I like to save money for futureg I enjoy being active

h I believe we are on the earth to enjoy ourselves

i I like to listen to music while traveling

j I am a heavy user of the internet

k I like to buy a new product and try it out

l I prefer style over sturdiness of the product

m I like to reward myself after completing a difficult assignment

n I like to read technology related magazines

o I like to go to parties

p I like to know about the life styles of celebrities

q When I see an interesting product I generally buy it

r I prefer simplicity over sophistication

Personal details:

1. Name:

2. Age:

3. Gender:

4. Family Income:

5. Number of family members: 6.Education

Bibliography

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http://www.idcindia.com/default.asp

http://www.trai.gov.in/Default.asp

http://www.india-cellular.com/FAQ.html

www.myfreesurvey.com

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http://www.idcindia.com/default.asphttp://www.trai.gov.in/Default.asphttp://www.india-cellular.com/FAQ.htmlhttp://www.india-cellular.com/FAQ.htmlhttp://www.myfreesurvey.com/http://www.idcindia.com/default.asphttp://www.trai.gov.in/Default.asphttp://www.india-cellular.com/FAQ.htmlhttp://www.myfreesurvey.com/

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